It was founded by members of the Methodist Episcopal Church in 1865, making it the first and oldest institution of higher education in Nebraska.

The town of Mount Vernon was supplanted by a community located at the base of the hill, whose original settlers came from Peru, Illinois.

[6] The Nebraska Territorial Legislature chartered the school on February 12, 1866, under the name Peru Seminary and College.

[5] During World War II, the Peru campus of the Nebraska State Teachers College hosted a unit of the US Navy V-12 officer training program, which served as an alternative military route for college students who were drafted during the war.

A competing bill, LB650, was introduced about the same time but with the intent of funding Peru State College $7 million for renovations.

[11] In 2003 rumors spread again about the possibility of closing Peru State College as part of a set of proposals to help save money in the Nebraska education system.

[12] Peru State College celebrated a record 472 graduates in 2007 with student enrollment ballooning even higher.

Credit was given largely to its online education programs, which funded about 30 percent of campus initiatives.

Peru's continued strong commitment to teacher education is also reflected in its accreditations and memberships.

The School of Professional Studies houses Peru's Business Administration, Criminal Justice, and Psychology programs.

[16] The Bobcats previously competed in the defunct Midlands Collegiate Athletic Conference (MCAC) from 2000–01 to 2010–11.

[18] The Peru State football team won the 1990 NAIA Division II National Championship, defeating Westminster (Pa.) 17–7.

The Residence Hall Association also plans and arranges campus activities in conjunction with CAB.

Each building of the Centennial Complex is actually two residence halls: Nicholas and Pate, Mathews and Clayburn, Davidson and Palmer.