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Frederick County tax credit plan aimed at seniors advances

By WTOP Staff

A plan to cut property taxes for some senior citizens living in Frederick County will head to a public hearing, officials decided Thursday.

Commissioners voted unanimously to move forward with a proposal to slash county property taxes by as much as 20 percent for some residents older than 65.

The credit would come at a time when many seniors are feeling the pinch of financial hardship, said Louise Lynch, chairwoman of the Frederick County Commission on Aging.

“We’re real eager to see this tax credit go through,” Lynch said. “So many of our older adults here in Frederick have lost a good bit of money in their retirement.”

At the same time, the cost of gasoline, utilities and groceries has climbed, she said.

Commissioners President Blaine Young said he supports the plan as a way to help struggling seniors and prevent some of the county’s most long-standing residents from having to relocate because of a high cost of living.

“I’ve got sympathy for anyone who’s worked hard and built up what they have and want to stay here,” he said.

However, Commissioner Paul Smith and a county resident who commented during the meeting said the plan might not target the area’s most needy seniors.

With the current proposal, area residents older than 65 who qualify for a state homeowner tax credit could apply for the county break.

The state credits are offered to people whose annual income is lower than $60,000 and have a net worth of less than $200,000, excluding the value of their primary home. But commissioners will consider a variation of the plan that would allow seniors with yearly incomes of up to $80,000 to apply for the tax cut.

Smith said that the income and net worth limits are high and that he would support giving bigger credits to the seniors who have less.

“I think we should do more for those that are really hurting,” he said.

A Frederick resident also said the credits were a bad way of helping older county residents who need a break.

“If you really want to target money to low-income people, this is a poor way to do it,” said David Twenhafel.

In an interview on Thursday, Lynch said there are always more ways to help seniors, but the tax credit is a good first step.

Leading up to Thursday’s meeting, a work group that included members from the Finance Division and Department of Aging talked through a number of ideas for the senior tax credit. One option would offer older county residents a 20 percent reduction on their county property taxes after other state and local credits are subtracted. Another scenario would provide a 10 percent cut.

If officials decide to set a $60,000 annual income limit for the credits, county staff estimates this tax break could go to 1,626 recipients; if they opt for the $80,000 limit, the credits could benefit between 3,181 and 3,976 recipients.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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