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Is D.C. the new New York? (Guest Blog)

As funding is drying up in D.C., startup founders are getting restless and angry. Unfunded or underfunded founders are whining about the state of funding in Greater Washington.

People keep complaining that D.C. is the most difficult town in the world to raise money. It’s like we’re the new New York, because if you can make it here, you can make it anywhere.

Here’s what I don’t get. It would be much easier for startups to be successful if a day was 40 hours or 90 hours long. Think about the amount of stuff they could get done in a day. Yet you don’t hear anyone complaining about the fact that a day is only 24 hour longs. They don’t complain because it’s a fact of life.

Well guess what? Here’s a fact of life. D.C. is not Silicon Valley. We are not Massachusetts and we are not New York. It is a fact that we are D.C. It is a fact that we have fewer VCs, fewer angel investors and less money available. So complaining about that fact is no different than complaining about the lack of extra hours in a 24 hour day.

This lack of funding is an endemic problem of our startup ecosystem. Okay I get it, it is an immutable fact that D.C. is woefully lacking in startup risk capital. Why not complain that working is work and that gasoline should be free, and that traffic sucks. Okay maybe complaining about traffic is justified.

So when these unhappy founders are confronted with facts, the argument gets shifted. When confronted with the facts an these unhappy founders than shift the conversation to misdirected capital. I hear things like, “there are good ideas that don’t get funded while there are bad ideas that do. Investors here are stupid.”

Wow! Yes I’m a stupid investor but if you want my money, it is your job to educate me and make me smarter. It may be true that I invest in stupid ideas while taking passes on good ideas. It may be true or it may be that:

1. You view your ugly baby startup like a proud parent who doesn’t see the resemblance between their baby and a Shar Pei.

2. The worse idea that I funded outsold you. You were beat. Maybe I invested in a better team and I believe that in most cases a strong team beats a good product.

Now here’s the problem with that. Founders have all their eggs in one startup basket. It is devastating to you when investors take a pass on your baby. To investors your devastation is just s a blip on our radar. Investors take a portfolio approach. I like 99 percent of the other startup investors in America didn’t invest in Google, or Microsoft or GE. But our portfolios moves on.

To investors, good startups are like busses. If we miss one, it’s okay because another one will be by in 15 minutes.

These are the facts of life. What D.C. is, is what D.C. is. You can complain and whine about it like a petulant child or you can acknowledge the facts and do something about it.

You have a few simple choices.

1. Continue to whine and get nowhere.

2. Move to Silicon Valley and make it or fail there.

3. Give up

4. Or deal with it.

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

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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