Skip to main content

Virginia’s hi-tech corridor nervous over sequestration

By WTOP Staff

Kathy Stewart, wtop.com

RESTON, Va. – They might need a miracle, but Virginia’s two U.S. senators are fighting against the sequester cuts.

“Sequester is going to be worse than people expect,” says Sen. Mark Warner.

He and fellow Democrat Sen. Tim Kaine spoke to about 160 members of the Northern Virginia Technology Council, one of the largest IT associations in the country, in Reston on Friday.

Reston is part of Virginia’s hi-tech corridor and folks here are nervous about the looming $1.2 trillion worth of spending cuts spread over the next 10 years. Known as sequestration, the severe cuts are intended to force Congress and the White House to reduce the nation’s growing debt.

The cuts are expected to hit Northern Virginia hard because of the numerous defense and other federal contractors based in the region. And the hi-tech industry, which serves and benefits from the federal government, is bracing for tough times ahead.

Bobbi Kilberg, NVTC president and CEO, says the council invited the senators to talk because they are worried.

“We have a community in the technology arena that’s very, very concerned about an arbitrary across the board sequester. We need a better understanding of how to grapple and deal with it. It’s going to affect the Northern Virginia economy in a major way,” Kilberg says.

The sequester was designed to be so painful that lawmakers would never allow the cuts to kick in. But on March 1, the first round of $85 billion cuts take effect and Warner believes there is little chance Congress will act in time to avert the pain.

However he hopes to minimize the damage and is making a last ditch effort with Republican colleagues to find a solution. Warner says the best option is to eliminate sequestration and put a comprehensive plan in place.

“Replace it with a balance of some additional cuts, some additional revenues. And start down the path of a more comprehensive approach,” he says.

Warner stresses that such a plan would also require a willingness from Republicans to raise revenue and for Democrats to embrace entitlement reform as part of the mix.

Warner says he’s working with some Republican colleagues but he’s doubtful a plan will be ready by the March 1 deadline. Warner and Sen. Saxby Chambliss, R-Ga., have been working for several years to develop a bipartisan consensus on how to address government spending, rein in spending and reform the tax code.

Both Warner and Kaine, who just started his first term in January, agree that there’s plenty of blame to go around but it’s time to try and fix the problem.

“There are members on both sides that say let sequestration happen. They don’t understand the ramifications. They don’t understand the real affect of how it will cost taxpayers more than it saves,” Warner says.

Kaine advocates for accepting the first year of sequestration reductions and incorporating them into a budget, which would give lawmakers more control over where to make the cuts.

“Tough decisions are best made as part of an ordinary budget process rather than a one-off sequester that no one ever thought was a good idea,” Kaine said in statement released earlier this week after he spoke to a group of defense contractors in Arlington.

Related Stories:

Follow @WTOP on Twitter.

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
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote