Steve's barking at the eye of the Newt

Surfing the boob tube yesterday and I heard something that if it's true is truly amazing.
Newt Gingrich stated the other day having government give direct loans to students is a form of socialism. Well if memories serves me correctly when I got out of high school in the early sixties the government was the place one went for student loans. If it's a form of socialism now then it must have been a form of socialism then. Now if memory serves me correct  the sixties was the zenith of American economic power. So carrying that a bit further a little socialism is good for the country.

I'm still trying to figure out why the government should subsidize banks with loan guarantees, and not subsidies students. It's a no loss situation for the banks, and a loser for the government.
Don't know much about history, why did the government stop giving out loans to students and started subsidising bank loans.

Newt, has a PhD in history, and even was asst professor teaching. He has written several books with an historical theme, but every times he open his mouth it seems that the historical truth comes up short.