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Senate panel approves 6-year highway bill

By WTOP Staff

JOAN LOWY
Associated Press

WASHINGTON (AP) — A Senate panel on Thursday approved a bill to keep federal highway programs going for the next six years, but it remained unclear whether Congress would act in time to prevent a disruption in transportation aid to states this summer.

The Environment and Public Works Committee approved a bill that would keep transportation spending at current levels, plus inflation, in a rare burst of bipartisan bonhomie, with Democrats and Republicans lavishing praise on each other. No one spoke against the measure, which passed on a voice vote.

“I never remember a transportation bill that went through this way without any controversial amendments even offered and withdrawn,” said Sen. Barbara Boxer, D-Calif., the panel’s chairman.

But the bill doesn’t address the biggest transportation question facing Congress: how to find an extra $100 billion to close the gap between what lawmakers want to spend on highway and transit programs and how much revenue federal gas and diesel taxes and other user fees bring into the federal Highway Trust Fund.

Finding the money is the responsibility of the Senate Finance Committee, but its chairman, Sen. Ron Wyden, D-Ore., hasn’t signaled how he plans to do that. The White House and Congress have been unwilling thus far to raise the 18.4-cents-a-gallon gasoline tax and the 24.4-cents-a-gallon diesel tax, which haven’t been increased since 1993.

The Department of Transportation estimates the federal Highway Trust Fund will go broke on Aug. 29, but disruptions in payments to states could happen as early as July, when the balance in that account is expected to drop below $4 billion. Without that cushion, it becomes difficult to ensure incoming revenues can keep up with outgoing aid to states.

The bill largely maintains the status quo and avoids controversial new proposals. Democrats made concessions aimed at ensuring that rural states share in federal aid for major projects in order to win GOP support.

One significant new program in the bill is aimed at eliminating bottlenecks that hinder the transportation of freight. The bill authorizes $400 million for that next year, gradually increasing to $1 billion in the last year of the bill.

Transportation officials in several states are already making plans to delay commitments to new construction projects because of the uncertainty over the flow of federal dollars. Should the federal government be forced to slow down or cancel payments to states, it could result in the shutdown of projects across the country and widespread layoffs of construction workers.

That would have “a domino effect that will be felt throughout our economy,” Boxer said.

Most transportation experts say that’s unlikely to happen. They expect Congress will wind up doing what it has done repeatedly since 2008, which is dipping into the general treasury for enough money to keep transportation aid flowing for a few weeks or a few months, and then repeat the exercise all over again.

Keeping transportation programs continually on the edge of insolvency makes it difficult for states to plan, especially for more costly, major projects that take several years to complete. The White House and lobbying groups representing interests ranging from the asphalt industry and construction workers to local transit agencies and bus drivers are spending this week — which they dubbed “infrastructure week” — trying to raise public support for a long-term transportation bill that would provide funding certainty to states and increase overall transportation spending.

Obama carried his plea for more money to replace aging infrastructure on Wednesday to New York, where the federal government has provided a $1.6 billion loan to rebuild the busy Tappan Zee Bridge. Vice President Joe Biden traveled to Cleveland to highlight federal investment in a $17.5 million new light rail station that will open in 2015.

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Follow Joan Lowy on Twitter at http://www.twitter.com/AP_Joan_Lowy

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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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