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Koch 101: Some basics on the billionaire brothers

By WTOP Staff

NANCY BENAC
Associated Press

WASHINGTON (AP) — A primer on the Koch brothers and their role in politics.

Q: Who are the Koch brothers?

A: Charles and David Koch, ages 78 and 74, are billionaire brothers who helped create a broad network of nonprofit groups that control hundreds of millions of dollars flowing into politics. Through their deep pockets, they are reshaping politics with an uncompromising agenda of reducing regulation, advancing libertarian ideas, promoting free-market Republican candidates and ousting Democrats. They have two other brothers, William and Frederick, who aren’t involved in the effort.

Q: Where did they get their money?

A: The Kochs inherited their father’s company in Kansas, and turned Wichita-based Koch Industries into the second-largest privately held company in the nation. The conglomerate makes a wide range of products including Dixie cups, chemicals, jet fuel, fertilizer, electronics, toilet paper and much more. William and Frederick cashed out in 1983 and no longer have a stake in the company.

Q: How rich are Charles and David?

A: With a fortune estimated at $41 billion each, Charles and David tie for fourth on Forbes’ list of the richest Americans, and tie for sixth on Forbes’ worldwide billionaires list.

Q: What’s their secret?

A: Charles, chairman and CEO of Koch Industries, attributes the company’s success to his business philosophy, “Market-Based Management,” which he’s trademarked. Among its components: hiring and retaining people with the right values, and giving employees a bigger voice in decision-making. The company’s growth strategy also includes reinvesting 90 percent of earnings.

Q: How much money do Charles and David put into politics?

A: That’s the big question. It’s unanswered because the Kochs channel lots of money into nonprofit groups that don’t have to identify their donors. The Washington Post and the Center for Responsive Politics have calculated that the donor network organized by the Kochs took in at least $407 million in the 2012 election cycle. However, not all of that money came from the Kochs themselves. David Koch’s charitable giving has included $58 million donated to nonprofits that could include groups such as Americans for Prosperity, the CATO Institute and the Heritage Foundation, according to company spokeswoman Missy Cohlmia. In addition, the two brothers’ direct political contributions to federal candidates and party committees totaled at least than $2 million over the past two decades.

Q: What motivates them?

A: Family patriarch Fred Koch, who built refineries in the Soviet Union in the 1930s, became convinced of the evils of communism and instilled in his sons an aversion to government intrusion. As David said of their father in a 2012 interview with The Wichita Eagle newspaper in Kansas, he “was extraordinarily fearful of our government becoming much more socialistic and domineering. … So from the time we were teenagers to the present, we’ve been very concerned and worried about our government evolving into a very controlling, socialist type of government.”

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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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