John Wilbert Gustad was born in 1922 in St. Paul, Minnesota. He graduated cum laude from Macalester College in 1943 and completed his Master's and PhD in Psychology from the University of Minnesota in 1948 and 1949 respectively. From 1943 to 1946, he served as a Lieutenant Commander in the U.S. Navy.

Between 1947 and 1963 Gustad taught psychology at the University of Minnesota, Vanderbilt University, and Alfred University. From 1960 to 1963, he served as Dean of the College of Liberal Arts at Alfred University from 1960 to 1963. From 1963 to 1966, he served as Provost of New College in Florida. From 1966 to 1968, he served as Associate Dean of the College of Arts and Sciences at Ohio State University. He served as Coordinator of State Colleges for the Nebraska State College Board in 1968-1969. In 1969, he became the 6th President of Fort Hays Kansas State College. Gustad served as president until his retirement in 1975. Through his career, Gustad published widely on educational psychology and higher education.

John W. Gustad was married to Dorris Adams Gustad and had two children with her. Their daughter graduated from Hays High School in 1970. John W. Gustad died in 1978 at age 56.