<Li> Federal student loans made to parents (PLUS loans): Much higher limit, but payments start immediately . Credit history is considered; approval is not automatic . </Li> <Li> Private student loans, made to students or parents: Higher limits and no payments until after graduation, although interest starts to accrue immediately and the deferred interest is added to the principal, so there is interest on the (deferred) interest (which Is not the case with subsidized student loans). Interest rates are higher than those of federal loans, which are set by the United States Congress . Private loans are, or should be, a last resort, when federal and other loan programs are exhausted . Any college financial aid officer will recommend you borrow the maximum under federal programs before turning to private loans . </Li> <P> United States Government - backed student loans were first offered in 1958 under the National Defense Education Act (NDEA), and were only available to select categories of students, such as those studying toward engineering, science, or education degrees . The student loan program, along with other parts of the Act, which subsidized college professor training, was established in response to the Soviet Union's launch of the Sputnik satellite, and a widespread perception that the United States was falling behind in science and technology, in the middle of the Cold War . Student loans were extended more broadly in the 1960s under the Higher Education Act of 1965, with the goal of encouraging greater social mobility and equality of opportunity . </P> <P> Prior to 2010, Federal loans included both direct loans--originated and funded directly by the United States Department of Education--and guaranteed loans--originated and funded by private investors, but guaranteed by the federal government . Guaranteed loans were eliminated in 2010 through the Student Aid and Fiscal Responsibility Act and replaced with direct loans because of a belief that guaranteed loans benefited private student loan companies at taxpayers expense, but did not reduce costs for students . </P>

When did the federal student loan program start