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Lincoln College was established in 1865 to fill the need for an institution of higher learning in central Illinois. Commissioners investigated several sites, and in December, 1864, selected Lincoln, Illinois. On February 6, 1865, a charter for the new university was secured from the Illinois General Assembly. Ground was broken for University Hall, the first college building, just six days later on Abraham Lincoln's birthday.

By September, 1866, the foundation had been completed and the cornerstone was laid. In November, 1866, instruction for men and women began. The first commencement in 1868 honored three graduates. Thus Lincoln College took its place among the pioneer educational institutions of Midwest America.