Fairbanks was born in a log cabin near Unionville Center, Ohio, the son of Mary Adelaide (Smith) and Loriston Monroe Fairbanks, a wagon-maker. Fairbanks's ancestry traced back to Puritan followers of Oliver Cromwell, with Jonathan Fairbanks being the first family member to reach America, in 1632. Fairbanks in his youth saw his family's home used as a hiding place for runaway slaves. After attending country schools and working on a farm, Fairbanks attended Ohio Wesleyan University, where he graduated in 1872. While there, Fairbanks was co-editor of the school newspaper with Cornelia Cole, whom he married after both graduated from the school.