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Little sunlight as Obama raises super PAC dollars

WASHINGTON (AP) — For years, President Barack Obama railed against the surge of unlimited spending flowing into American political campaigns, arguing that average voters were being shut out of a secretive system that lets special interests bankroll elections.

Now, as Obama enthusiastically raises money for Democratic super PACs, he’s embracing some of the same secretive elements of that system, drawing charges of hypocrisy from good-governance advocates who say the public deserves to know what Obama’s saying and to whom he’s saying it when donors pay for a few minutes with the president.

After initially shunning super PACs, Obama in 2012 allowed his top officials to help raise money for the super PAC working to re-elect him, but his campaign promised to still “lead the way” on campaign transparency and reform. Obama took another major step toward embracing super PACs this year by agreeing to appear personally at fundraisers for Democratic super PACs. He argued that Democrats can’t afford to play by different rules than Republican groups whose donors were flooding the super PAC zone.

Campaign finance reform advocates hoped that even if Obama was helping super PACs, he’d seek to make the process as transparent as possible. After all, Obama has backed legislation known as the DISCLOSE Act that would clamp down on secretive contributions and has said he’s open to amending the Constitution to stem campaign spending.

“I can’t think of anything more devastating to the public interest,” Obama said in 2010 after the Supreme Court cleared the way for unlimited political contributions. “The last thing we need to do is hand more influence to the lobbyists in Washington, or more power to the special interests to tip the outcome of elections.”

When Obama attended a fundraiser Wednesday in California for the Democratic Congressional Campaign Committee, a party committee that must adhere to strict contribution limits, officials released the number of guests attending and how much they paid. Reporters were allowed in as Obama spoke to donors gathered in an opulent neighborhood in Los Altos Hills.

Just hours earlier, Obama was at a nearby hotel for a fundraiser benefiting the House Majority PAC, a super PAC that works to elect Democrats. The news media were kept out and White House declined to release any details about who showed up and how much they had contributed, making it impossible for the public to know what agenda they might be pushing during their few minutes of face time with Obama.

“I would only ask that you judge us by our record and that of our predecessors,” White House spokesman Eric Schultz said. “Without a doubt, I think we’ve done more to achieve the president’s commitment to transparency than any other previous administration.”

But Kathy Kiely, managing editor of the good-government group the Sunlight Foundation, said shrouding Obama’s super PAC fundraisers in secrecy only raises questions about what he or the super PAC is trying to hide.

“This is just a barometer of the bad conscience that’s involved in doing this sort of fundraising,” Kiely said. “If I speak to people who are richer and can write bigger checks, suddenly that changes the rights of the American public to know what I’m saying?”

She added, “It feels un-American.”

House Majority PAC, not the White House, made the decision to deem the event “private” and prevent reporters from hearing Obama’s remarks, said Matt Thornton, the super PAC’s spokesman. The super PAC also maintains that while it invited donors who have given major sums in the past, the event wasn’t actually a fundraiser because there was no set ticket price and Obama didn’t directly solicit donations.

As a super PAC, House Majority PAC must eventually disclose its donors to the Federal Elections Commission on a periodic basis, although voters will never know which of those donors attended fundraisers with the president.

But the group’s sister super PAC in the Senate, Majority PAC, also has a nonprofit arm that can take unlimited donations without disclosing any information about its donors. Obama headlined a $25,000-a-person fundraiser for the group Tuesday in Seattle. A Majority PAC spokesman did not respond to questions about whether any of those funds benefited its nonprofit wing, Patriot Majority.

“I don’t have a problem with super PACs. What people have an issue with is hypocrisy,” Republican National Committee Chairman Reince Priebus said in an interview. Now that Obama has discovered he needs unlimited funding from super PACs, “he rejects transparency, he locks the press out and he goes and raises the money anyway.”

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

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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