Congress passes the National Defense Education Act, creating first federal student loans

President Dwight D. Eisenhower signs the National Defense Education Act (NDEA), landmark federal legislation passed in response to Soviet launch of Sputnik satellite in October 1957. The NDEA authorizes funding for Title II loans to students in higher education, with preference for those studying mathematics, science, engineering, and modern foreign languages. Initial funding authorizes $183 million in 1959, increasing to $222 million by 1960. The legislation represents the first large-scale federal involvement in K-12 education and creates the first federal student loan program independent of the GI Bill.