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Chrysler: Recall can be done faster than expected

By WTOP Staff

TOM KRISHER
AP Auto Writer

DETROIT (AP) — Chrysler can fix recalled Jeep SUVs far faster than U.S. safety regulators have predicted, the automaker told the government Wednesday.

The development could end a spat between the automaker and the National Highway Traffic Safety Administration, which has accused Chrysler of moving too slowly to repair about 2.7 million SUVs in a recall announced more than a year ago.

The older Jeep Grand Cherokees and Libertys have gas tanks behind the rear axles that can rupture in rear collisions, leak fuel and cause fires. The remedy is to install a trailer hitch to protect the tanks in low-speed collisions.

Although NHTSA has pushed for the recall, Chrysler has maintained the vehicles aren’t defective and says it agreed to the trailer hitches because the matter “has raised public concern.”

In a tersely worded letter to Chrysler earlier this month, the safety agency demanded that Chrysler answer questions about why the recall is taking so long. The agency said production of the trailer hitches didn’t start until May of this year, and the pace is so slow that it will take Chrysler 4.7 years to get enough hitches if all owners respond to the recall. If only half respond, it will take Chrysler two years to get the parts, the letter said.

“The agency has no intention of allowing Chrysler, or any other manufacturer, to delay recall completion to the detriment of safety,” the letter said.

NHTSA ordered Chrysler to answer the questions by Wednesday, and the automaker released its response Wednesday night.

It says that the trailer hitch supplier now has additional production capacity and can make enough hitches for the recall by March 21 of next year. The response also says NHTSA over-estimated the number of hitches needed to fix the problem, failing to account for vehicles that already have hitches and for SUVs that are no longer in use.

Chrysler estimates that just under 267,000 hitches will be needed for Grand Cherokees and 579,000 for Libertys.

The recall and a related customer service campaign cover 1993-2004 Grand Cherokees and 2002-2007 Libertys. Chrysler estimates the fixes globally will cost $151 million.

The spat over the recall pace is the latest in a long fight between the automaker and agency over the safety of the SUVs, all built before the 2008 model year. Initially, NHTSA wanted the company to recall 2.7 million of them, but Chrysler refused, saying they were as safe as similar vehicles. They eventually worked a deal to recall 1.56 million, with 1.2 million others placed in a campaign to be inspected for hitches. Last year, NHTSA said a three-year investigation showed 51 people had died in fiery crashes in the Jeeps.

Messages were left Wednesday night seeking comment from NHTSA spokeswomen.

Clarence Ditlow, head of the nonprofit Center for Automotive Research, said in a letter to NHTSA earlier this month that the agency should immediately force Chrysler to speed up the recalls. While NHTSA and Chrysler argue, four more people have been killed and two more seriously burned in Jeep fire crashes, according to Ditlow.

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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