Feds asking right question about return on high education investment

Soaring insurance costs

Fleet insurance more than doubled in one year for local firm

There was the predictable angst with the federal Dept. of Education announcement that it would no longer fund college loans for majors that did not yield jobs that paid for the education. In other words, what’s the return on investment?

For some majors, if grads are not going to teach, it’s a big negative investment and that’s what Secretary Linda McMahon has targeted. President Trump made his goal for her clear—dismantle as much of the department as possible—a worthy objective given that it only exists as campaign payoff by President Jimmy Carter to the national teachers’ unions.

Student loan debt is simply scandalous. The education dept. holds $1.7 trillion in loans and estimates only 40% are repaying and about 25% of borrowers are in default.

The horrible irony is not only is the department unnecessary so is the loan program. Student debt since the feds got involved has soared. Since 1980, cost of going to college is up 1200%, far out-stripping general inflation.

Health care spending has increased 15 times since 1980 to $5.3 trillion.

Both are ugly and both are tied to federal government involvement. The medical side is a promise made and paid for through payroll tax collected during the working years—not so for student debt.

A group of billionaires and millionaires funding Californians to Protect Retirement and Life Savings have been mailing petitions directly to voters with return envelopes, encouraging them to sign the petition and get it on the ballot in November. The group is trying to set up potential dueling initiatives with the union-backed one-time wealth tax. The unions have no shortage of money, but the other group sets new standard for unlimited resources.

It’s almost like watching billionaire Tom Steyer’s flooding television channels with his messages. Assuming he has professionals running his campaign and selecting his messages, it’s stunning to see how radically left they expect Democrat party voters to be in the June primary. Basically, eliminate borders and border enforcement for starters.

The departure of the disgraced Eric Swalwell helped a couple of candidates and put Steyer into the top position among Democrats. California has a history of rejecting wealthy people trying to buy elective office—stay tuned on this one.

Here’s a snapshot of how costs are hitting one 40-year-old local business, Black Tie Transportation. Founder Bill Wheeler has grown the company into one with world-wide connections to ensure efficient travel for his clients. When Ford Motor Co. quit building the Lincoln Town Car, the standard limousine for the industry, he shifted to BMW’s 7-series that has proven popular with his clients.

His most recent client newsletter carried a telling stat that he and his team are living with daily. The cost of diesel fuel for his big buses has soared to nearly $7 a gallon, while insurance for his fleet was $350,000 in 2025. This year, it’s more than doubled to $750,000—think insurance crisis and we do have a commissioner responsible for approving rates.