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$15 minimum wage permits few luxuries in US cities

By WTOP Staff

DONNA GORDON BLANKINSHIP
Associated Press

SEATTLE (AP) — A $15 minimum wage like the one adopted in Seattle doesn’t buy many luxuries in most American cities.

Lattes, theater tickets and cable television will still be out of reach for most minimum-wage workers. But about $31,000 a year should be enough to pay the average rent for a shared one-bedroom apartment, plus utilities, health insurance, groceries and an inexpensive cellphone plan.

Monday’s vote by the Seattle City Council created the nation’s highest minimum wage. The state minimum wage in Washington was already $9.32 an hour, the highest state wage in the U.S.

Expatistan, a website that tracks the cost of living in cities around the world, says New York, San Francisco, Washington, D.C., Honolulu, Boston and Seattle are the most expensive U.S. cities overall, in that order.

An Associated Press comparison of the cost of living in several other major U.S. cities shows a higher wage would make a difference in those places too, but it won’t allow for many extras.

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SEATTLE (Minimum wage is currently $9.32):

RENT: A typical one-bedroom apartment goes for $1,400 a month.

GAS: A gallon of gas is $3.94.

TRANSPORTATION: A ride on the bus is $2.50.

MILK/COFFEE/OTHER: A gallon of milk averages about $3.60. A 16-ounce latte at Starbucks is $3.35, a pint of local beer $4.50.

Seattle’s wage is set to begin climbing in April 2015, with many workers reaching $11 an hour next year. That will surpass San Francisco’s minimum wage, which at $10.55 an hour is currently the highest of any American city.

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NEW YORK CITY (Minimum wage is $8):

RENT: The median Manhattan rent is $3,420, according to a recent report.

GAS: A gallon of gas is $3.93.

TRANSPORTATION: A ride on the subway is $2.50. The average taxi fare is a bit over $15.

MILK/COFFEE/OTHER: A large coffee at Starbucks is about $2.45. A gallon of milk is just over $4. A foot-long sandwich at Subway is $6.90.

New York’s minimum wage, which is set by the state, is slated to rise to $8.75 on Dec. 31 and then $9 at the end of next year. Gov. Andrew Cuomo has recently opened the door to let cities set their own minimum wage at 30 percent higher than the $10.10 proposed by President Barack Obama, which could mean a $13 wage in New York’s future.

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MIAMI (Minimum wage is $7.93):

RENT: The median rent in Miami is $2,329, according to Zillow.

COFFEE: A large coffee is about $3.

TRANSPORTATION: Regular gas in Miami costs about $3.50 a gallon, a basic bus ride $2.25. Cab fares are $2.50 for the first sixth of a mile and then 40 cents per sixth of a mile.

MILK/OTHER: About $4 a gallon for milk, and a quality sub is about $8.

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CHICAGO (Minimum wage is $8.25):

RENT: The median rent price in Chicago is $1,550, according to Zillow.

GAS: A gallon of regular gasoline surpasses $4, behind only Los Angeles and San Francisco on a list of major cities.

TRANSPORTATION: A bus fare is $2. Rides on the El trains are $2.25.

Mayor Rahm Emanuel has formed a task force to study the minimum-wage issue, and a group of City Council members have already proposed an ordinance to phase in a $15 wage. Chicago community activists and labor groups are pushing for the city to follow Seattle’s lead. At the ballot box in March, Chicago voters backed a $15 minimum wage in an advisory referendum.

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LOS ANGELES (Minimum wage is $8)

RENT: A one-bedroom apartment in City Center is $1,591, while a one-bedroom outside of downtown is $1,140, according to the Economic Roundtable.

MILK/OTHER: Milk is $3.96 a gallon. A one-pound loaf of white bread is $2.21.

TRANSPORTATION: A one-way public transit tickets costs $1.50.

GAS: $3.99 a gallon.

The minimum wage in Los Angeles and Los Angeles County is $8, the same as the state’s. Like the state’s, it will increase to $9 on July 1.

The city minimum wage has exceptions in Long Beach and in Los Angeles by the airport, where hotel workers get more, according to Dan Flaming, president of the Economic Roundtable.

The LA City Council is reviewing a proposal to raise the minimum wage for all hotel workers.

Meanwhile, the AFL-CIO effort has started an effort, still in its infancy, to increase the minimum wage for everyone to $15, Flaming said.

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HOUSTON: (Minimum wage is $7.25).

RENT: Average rent for a 1-bedroom apartment is $1,144.

GAS: A gallon of gas is $3.67.

TRANSPORTATION: A ride on public transit is $1.25.

MILK/COFFEE/OTHER: A 20-ounce cup of drip coffee at Starbucks sells for $2.45. A gallon of Walmart-brand milk is $3.28.

Texas uses the federal minimum wage. An increase in Houston’s minimum wage was considered in 1997, but the idea was opposed by business leaders and defeated in a referendum.

The cost of living in the city has remained fairly stable in recent years, but housing prices have felt the pressure of migration into Texas. The Greater Houston Partnership, the local chamber of commerce, quotes a study that says the city is the third-least expensive of the 20 most populous areas in the United States.

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Associated Press writers Jonathan Lemire in New York, Terry Spencer in Miami, Jason Keyser in Chicago, Juan Carlos Llorca in Houston and Sue Manning in Los Angeles contributed to this report.

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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