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EU expects recovery to lower unemployment faster

By WTOP Staff

JUERGEN BAETZ
Associated Press

BRUSSELS (AP) — The ongoing economic recovery across Europe should help unemployment fall faster than previously expected, according to a new EU forecast released Monday.

In its spring forecast, the EU’s executive Commission said the economic recovery is spreading across the 28-country bloc and that should help reduce the ranks of the 25.7 million unemployed.

Among the 18 EU countries sharing the euro currency, the Commission expects unemployment to drop to 11.8 percent this year and 11.4 percent in 2015. Those predictions are lower than those it made in February, when it foresaw unemployment at 12 percent this year and 11.7 percent next.

“The recovery is gaining traction,” said Siim Kallas, the EU Commissioner in charge of economic affairs. “Importantly, the employment situation has started improving.”

However, the recovery isn’t expected to prompt upward price pressures in the eurozone. The Commission lowered its inflation forecast for the eurozone for this year from 1 percent to 0.8 percent, which is well below the European Central Bank’s target of close to but below 2 percent.

Inflation dropped dramatically over the past year or so because of high unemployment, government spending cuts and tight credit conditions, leading economists to warn about the risk of outright falling prices, or deflation, which could dent growth.

The ECB will hold its next rate-setting meeting Thursday, but many analysts say the bank remains unlikely to further lower its benchmark interest rate or announce other counter-measures like large-scale asset purchases to boost inflation.

Low inflation was one of the threats to the economy noted by the Commission. It also cautioned over tensions stemming from the escalating crisis in Ukraine, just east of its border.

The eurozone emerged from recession last year following a protracted financial crisis that saw several countries requiring a bailout to avoid bankruptcy. Unemployment across the eurozone reached an all-time high of 12 percent last year.

The Commission continues to expect the economy of the eurozone, which has a population of about 330 million, to grow by 1.2 percent this year. In 2015, however, the Commission slightly revised downward its forecast by 0.1 percentage point to 1.7 percent.

The U.S. economy, in turn, is expected to grow by 2.9 percent this year and 3.2 percent next year. The unemployment rate sank to 6.3 percent last month.

For the wider EU, which includes members like Britain and Poland that don’t use the euro, the Commission expects unemployment to fall more rapidly, with the jobless rate 10.5 percent this year and 10.1 percent in 2015. Those are down on the February projections of 10.7 percent and 10.4 percent respectively.

Overall growth in the EU, which is the world’s biggest economy, is expected to be 1.6 percent this year and 2 percent in 2015.

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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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