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Icahn: Senate leader ‘selling out’ Atlantic City

By WTOP Staff

WAYNE PARRY
Associated Press

ATLANTIC CITY, N.J. (AP) — Carl Icahn accused New Jersey’s Senate president of “selling out” Atlantic City by considering casinos near New York City, while the legislative leader said the state wouldn’t give the billionaire investor the tax breaks he is seeking.

Icahn responded Friday to stinging criticism by state Senate President Steven Sweeney and others about Icahn’s role in a proposed bailout of the struggling Trump Taj Mahal Casino Resort. Icahn said he would give the casino $100 million, but only in return for union givebacks and tax credits.

Sweeney on Friday ruled out any state contribution to Trump Entertainment Resorts’ proposed transfer to Icahn. That made it even more likely the Taj Mahal will close on Nov. 13, as Trump Entertainment has threatened to do.

Icahn said Sweeney, who is also a union leader, “is selling out Atlantic City” by publicly considering expanding casino gambling to the Meadowlands — something he and many other southern New Jersey politicians were once solidly against. Icahn noted that he bought the Tropicana Casino and Resort out of bankruptcy four years ago when it was in danger of closing, invested in it and added jobs.

“Sweeney is selling out Atlantic City to northern New Jersey on the one hand, and now he’s telling all these employees in Atlantic City that Carl Icahn is to blame, when I’m the only one that took a risk with $80 million when no one else would,” Icahn told The Associated Press.

Icahn said investors are shying away from Atlantic City because they are afraid casinos will be approved for north Jersey, killing the seaside resort’s monopoly on gambling in New Jersey.

“On the one hand, we are to believe Sen. Sweeney is Atlantic City’s staunchest defender, yet on the other hand, the same Sen. Sweeney is off in north Jersey making plans to allow gaming outside of New York City, a concession that may mean the end of gaming in Atlantic City,” Icahn said. “Sen. Sweeney, what you are doing here is selling out the people you represent in a remarkable act of contortionism. Harry Houdini would be very proud.”

In July, Sweeney spoke at a news conference with Atlantic City Mayor Don Guardian and state senator James Whelan about the possibility of expanding casino gambling beyond Atlantic City, which would require amending the state constitution. At the news conference, Sweeney was vague about what expanding casinos outside Atlantic City would entail, promising only that he would not put forth any bill that does not sufficiently help Atlantic City.

Trump Entertainment has crafted a proposal to keep the Taj Mahal open and turn it over to Icahn, who owns about $285 million worth of the company’s debt. Under the plan, Icahn would invest $100 million into the casino, but only if Atlantic City drastically reduced the company’s property tax assessment, union workers gave up their pension and health insurance, and a state redevelopment agency contributed $25 million in tax credits.

Atlantic City and the state have rejected those terms. Trump Entertainment is seeking to have a Delaware bankruptcy court judge let it terminate its union contract. A decision could come next week.

In a court filing Friday, Trump Entertainment accused the union of preparing to sacrifice the jobs of 3,000 Taj Mahal workers to protect workers at other casinos. Concessions the union agrees to at Taj Mahal would then be allowed at all other Atlantic City casinos under a long-standing clause in the union contract.

The filing also says that the Taj Mahal has not gained new customers since Revel and the Showboat closed five weeks ago. Rather, its revenue has decreased by 20 percent.

At the Boardwalk news conference, politicians from both parties criticized Icahn.

“You get nothing from us until you treat workers with respect and dignity,” said Sweeney, who is president of an ironworkers’ union.

The Taj Mahal would be the fifth of Atlantic City’s 12 casinos to go out of business this year.

___

Wayne Parry can be reached at http://twitter.com/WayneParryAC

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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