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5 things to know about Milwaukee church bankruptcy

By WTOP Staff

The Associated Press

Attorneys for victims of clergy sexual abuse and others owed money by the bankrupt Archdiocese of Milwaukee asked the 7th U.S. Circuit Court of Appeals on Monday to overturn a lower court judge’s decision making $55 million in a trust fund off-limits to their clients. A trust fund attorney argued the money was given to maintain Catholic cemeteries and must be used for that purpose.

Here are a few things to know about that case:

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1. ARCHBISHOPS

New York Cardinal Timothy Dolan created the cemetery trust fund while he was archbishop of Milwaukee. Dolan wrote a letter to the Vatican in 2007, recommending a trust as a way to provide “an improved protection of these funds from any legal claim and liability.” The Milwaukee archdiocese had agreed the year before to pay more than $16 million to settle with 10 California residents abused by two of its priests while they lived there. Current Milwaukee Archbishop Jerome Listecki oversees the fund as trustee.

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2. CATHOLIC CEMETERIES

According to trust fund attorneys, the Catholic faith requires the archdiocese to provide and maintain cemeteries in anticipation of resurrection when Jesus Christ comes again. “According to this belief, the soul separates at death to meet God, awaiting reunion with its body on the last day, transformed and resurrected through the power of Jesus’ resurrection,” they wrote in a brief submitted to the appeals court.

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3. THE JUDGE

The appeal heard Monday was filed last year after U.S. District Judge Rudolph Randa dismissed a lawsuit filed on behalf of clergy sexual abuse victims and the archdiocese’s other creditors. After Randa issued his decision, victims’ attorneys searched public records and learned that Randa’s parents, two sisters, a brother-in-law, an uncle, an aunt and his parents-in-law were interred in cemeteries owned by the archdiocese. Randa paid $3,800 in 1975 for his parents’ crypts, with some of that money to go toward cemetery maintenance. Victims’ attorneys have argued this makes him biased.

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4. CEMETERY COSTS

The appeals court judges did not receive information on how much the archdiocese spends annually to maintain its cemeteries, and the cost is not clear. Operating reports filed in bankruptcy court show hundreds of thousands of dollars in receipts and transactions related to the cemeteries last year, but do not detail maintenance costs.

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5. THE STAKES

The archdiocese has proposed a bankruptcy reorganization plan that would provide about $4 million to compensate about 125 clergy sexual abuse victims, but give nothing to many more. Without the trust fund, the archdiocese has relatively few assets and many victims could end up with little or nothing. The stakes are high for the Catholic church as well, as many dioceses hold money in trust and a victory for victims in Milwaukee could make it easier for those elsewhere to pursue the money.

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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