1862 - The Morril Act

Provided federal support for state public universities

The Morrill Act for Land Grant Colleges encouraged states to establish public universities by providing federal land and financial support.

The original mission of these land grant colleges was to teach agriculture, military tactics, and the mechanical arts, as well as classical studies, so that members of the working classes could obtain a liberal, practical education.

In 1867, the first U.S. Office of Education was created. Its role was limited to gathering and disseminating information about the status of education.

1944 - G.I. Bill

The first major federal offering of student aid to individual students

The Serviceman's Readjustment Act, popularly known as the G.I. Bill, provided veterans with funds for tuition, fees, books and supplies, and living expenses. The G.I. Bill created the first major program to provide federal student aid to individuals instead of to institutions. The technological and educational advances of the post-World War II era resulted from this national investment in postsecondary education.

1958 - National Defense Education Act

Created the National Defense Student Loan (NDSL) Program, the first student aid program for non-veterans

On October 4, 1957, the U.S.S.R. launched the first space satellite, Sputnik. U.S. attention focused on building the technological skills required to compete with the Soviets. In response, Congress passed the National Defense Education Act, which funded student loans for higher education in critical fields of study such as mathematics, science, and foreign languages.

1964 - Economic Opportunity Act

Created the College Work-Study (CWS) Program

Education was a cornerstone of President Lyndon B. Johnson's Great Society. The Economic Opportunity Act recognized the economic and social impact of education and created the College Work-Study Program, which offered students part-time employment opportunities while they pursued their college degrees.

1965 - Higher Education Act

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·        Created the Educational Opportunity Grant Program

·        Created the Guaranteed Student Loan (GSL) Program

Title IV of the Higher Education Act authorized, and continues to authorize, most federal student financial aid programs. In 1965, it reauthorized the National Defense Student Loan (NDSL) Program and the College Work-Study (CWS) Program and added the:

·        Educational Opportunity Grant Program, which was intended to increase college opportunities for low-income students at certain participating colleges.

·        Guaranteed Student Loan (GSL) Program, which allowed students with no credit history to borrow from private lenders for college expenses. (The federal government guaranteed the loans, so lenders wouldn't lose money if a borrower failed to repay.)

1972 - HEA Amendments

·        Created the Basic Education Opportunity Grant (BEOG) Program

·        Changed the names of the Educational Opportunity Grant Program and the National Defense Student Loan Program

·        Established the State Student Incentive Grant (SSIG) Program

·        Allowed proprietary schools to participate in the Title IV programs

The 1972 Amendments reauthorized the College Work-Study Program, extended the Guaranteed Student Loan Program, and brought about several other major changes. A new "portable" grant, the BEOG, was created for use at any eligible postsecondary school by students meeting specific financial need criteria. The Educational Opportunity Grant Program became the Supplemental Educational Opportunity Grant (SEOG) Program because it now supplemented BEOG.

The National Defense Student Loan Program changed to the National Direct Student Loan Program. The State Student Incentive Grant (SSIG) Program was established to encourage states to share costs of student aid. Proprietary (profit-making) schools became eligible to use Title IV funds.

1976 - HEA Amendments

·        Added the Satisfactory Academic Progress requirement

·        Required participating institutions to provide consumer information to students

All existing federal student financial aid programs were reauthorized and student eligibility rules were tightened by introducing requirements for satisfactory academic progress. Student consumer information provisions were introduced, requiring participating institutions to provide information on topics such as academic progress requirements, job placement for graduates, and financial aid policies and procedures.

In 1978, the Middle Income Student Assistance Act (MISAA) provided assistance to middle-income parents by expanding Basic Grant eligibility and by lifting the income ceiling on the GSL Program.

1980 - HEA Amendments

·        Established Parent Loans for Undergraduate Students (PLUS)

·        Renamed the BEOG

The PLUS Program provided more assistance to middle-income families by allowing parents to borrow $3,000 a year for each dependent child in school, regardless of parent income. The Basic Educational Opportunity Grant (BEOG) Program was renamed the Pell Grant Program in honor of the prime sponsor of the program, Senator Claiborne Pell.

1986 - HEA Amendments

·        Put the need analysis formulas (one for Pell, one for all other Title IV programs) into law

·        Tightened academic and eligibility standards

·        Created a new loan program

·        Renamed the National Direct Student Loan (NDSL) Program

The Amendments of 1986 included a wide range of changes. They incorporated the Title IV need-analysis formulas into the law, tightened standards for academic progress and admissions, limited the number of years a student could get a Pell Grant, established a new loan program for independent students, and renamed the National Direct Student Loan Program as the Federal Perkins Loan Program, in honor of the late Congressman Carl D. Perkins.

In 1987, technical amendments made some further changes, including introducing a master calendar for certain Title IV functions.

In 1988, the Guaranteed Student Loan (GSL) Program was renamed the Stafford Loan Program in honor of Senator Robert T. Stafford, a major sponsor of student assistance legislation.

1990 - Omnibus Budget Reconciliation Act (OBRA)

·        Introduced the "ability to benefit" test

·        Held schools accountable for high loan default rates

A student without a high school diploma or equivalent who wished to be admitted on the basis of ability to benefit was required to pass an independently administered test. Schools were ineligible for the GSL Program if their default rate was 35% or higher. (Currently, the cut-off for most schools is 25%.)

1992 - HEA Amendments

·        Combined the two federal need analysis formulas into one

·        Required that the student aid application process be free to students

·        Renamed the private-lender student loan programs and created the Federal Direct Loan Program

The 1992 HEA Amendments reauthorized the programs for five years and made many changes. They replaced the two need-analysis formulas with a single formula for all students, and they made it illegal to charge a student for applying for federal student aid. They also revised and renamed the private-lender guaranteed student loans programs, all under the name of the Federal Family Education Loan (FFEL) Program, and they created the Federal Direct Loan Program, to provide government-funded loans to students through participating schools.

1997 - Taxpayer Relief Act

·        Established tax credits and other relief measures to offset the cost of postsecondary education

·        Authorized various initiatives and incentives for saving for college

The 1997 Tax Relief Act established the HOPE Scholarship, the Lifetime Learning tax credit, a tax deduction for interest paid on student loans, Education IRAs for tax-free college savings, and an income exclusion for employer education benefits. The law also provided for penalty-free IRA withdrawals for higher education expenses, greater flexibility for qualified state pre-paid tuition plans, and tax-free loan forgiveness for certain community service.

1998 - HEA Amendments

·        Established "return to Title IV" rules

·        Renamed the SSIG program and created GEAR UP

·        Increased services and options for federal student loan borrowers

·        Tied Title IV eligibility to compliance with federal and state drug laws

The 1998 HEA Amendments reauthorized the Title IV programs, and contained a number of changes. They established a new policy for handling Title IV funds for withdrawing students, created an early awareness program called Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP), and suspended Title IV eligibility for any student convicted of violating federal or state laws related to drug possession or sales. They also changed the name of the SSIG program to the Leveraging Education Assistance Partnership (LEAP) Program and established the Student Financial Aid Ombudsman's Office, to help student loan borrowers resolve problems with their loans. Other changes to assist borrowers included an extended repayment plan for Federal Family Education Loan (FFEL) borrowers, reduced interest rates for Federal Direct Loan borrowers who make timely payments, and rehabilitation for defaulted Federal Perkins Loans.

The Higher Education Reconciliation Act of 2005 (HERA)

The Higher Education Reconciliation Act of 2005 (HERA) is Title VIII of the Deficit Reduction Act.

·        created two new grant programs, ACG and National SMART Grant

·        made active duty military personnel independent

·        made graduate and professional students eligible to borrow PLUS loans

·        changed the financial treatment of prepaid tuition plans

·        changed the qualifications needed for the Zero EFC and Simplified Needs Test

The College Cost Reduction And Access Act of 2007 (CCRAA)

ECASLA 2008

·        Increased Annual and Aggregate Stafford Loan limits for undergraduate unsubsidized loans

·        Amended National SMART Grant eligibility by adding a fifth year of eligibility for five-year programs, including eligible non-citizens and those attending at least half-time

·        Allowed parents to defer payments on PLUS loans until six months after the date their student ceases to be enrolled at least half-time

·        Expanded Lender of Last Resort provisions and temporarily authorized the Department of Education to act as a secondary market to provide loan liquidity for lenders

HEA of 2008

·        Mandated ED to publish college cost lists, including net price; provide net price and multi-year tuition calculators; and improve information on ED’s student aid web site, including information from other federal agencies

·        Mandated ED to post numerous categories of school consumer information on a web site; data to come from school reports, some new

·        Mandated schools to disclose institutional and student aid information

·        Mandated procedures for informing students of textbook costs

·        Mandated a simplified FAFSA

·        Authorized use of second preceding tax year information on FAFSA

·        Authorized Pell grants on a year-round basis for students who are accelerating degree completion but capped awards at 18 semesters

·        Increased Federal Perkins Loan annual and aggregate limits

·        Provided that student and parent PLUS loan payments may be deferred until six months after the student ceases enrollment at least half-time

·        Eased disbursement requirements on loans for schools with default rates less than 15%

·        Enhanced aid information and benefits for veterans, including in-state costs

·        Provided concessions for students with intellectual disabilities to promote their access to Title IV funding

·        Mandated numerous campus safety and student rights actions by schools

·        Addressed student loan “sunshine” issues with numerous disclosure requirements by schools, lenders and ED.

Health Care and Education Reconciliation Act of 2010

·        Pell Grant maximums in future years would be changed to reflect an appropriated base with a mandatory add-on

·        Elimination of the Federal Family Education Loan Program (FFELP) effective July 1, 2010

·        In-school consolidation for borrowers who have DL, FFEL or loans purchased by the Department may consolidate those loans into a Direct Consolidation loan between July 1, 2010 and July 1, 2011. The borrower must have at least one loan in each of two of the three categories named, and have not yet entered repayment on at least one of those loans.

·        Authorization of Direct Loans for Foreign Schools

·        Increase in funding for College Access Challenge Grant Program

·        Assistance to Institutions Participating in the DL Program

·        Direct Loan Servicing Contracts

·        Income-Based Repayment terms amended