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GM employee warned of stalling in Impalas in ’05

By WTOP Staff

PAUL WISEMAN
AP Business Writer

WASHINGTON (AP) — General Motors employee Laura Andres was driving a 2006 Chevrolet Impala home when she hit a bump in the road. The engine stalled, and the Impala came to a dead stop. The car behind her had to swerve to avoid a collision. Andres took the car into the shop, and a technician identified the most likely culprit as a faulty ignition switch.

In an e-mail to 11 GM colleagues, she wrote: “I think this is a serious safety problem … I’m thinking big recall.”

Andres wrote the e-mail Aug. 30, 2005. The Impala was finally recalled Monday — eight and a half years after she sounded the alarm. GM said a key with too much weight on it can cause the switch to move from “run” to “accessory” and stall the engine.

Still, Andres warning came back to haunt GM Wednesday in a congressional hearing into faulty ignition switches that have been linked to 13 deaths and have forced GM to recall 2.6 million small cars, such as the Chevrolet Cobalt and Saturn Ion.

Rep. Fred Upton, R-Mich., confronted GM Chief Executive Mary Barra with Andres’ e-mail.

“I was driving 45 mph when I hit the pothole and the car shut off,” Andres wrote. “I don’t like to imagine a customer driving with their kids in the back seat, on I-75 and hitting a pothole, in rush hour traffic.”

Upton asked Barra what GM would do with such an e-mail if it were sent today. Barra said the company would “take immediate action” if a faulty part caused the car to stall. She said GM’s worldwide recall Monday of 3.4 million large cars, including 2006-2014 Impalas, showed how the company now reacts.

It was less responsive in 2005. Andres’ warning was brushed off by GM engineer Ray DeGiorgio, who replied that he had recently driven an ’06 Impala and “did not experience this condition.” He also noted that the Impala had “a completely different column/ignition switch” than the ones that were causing the Pontiac Solstice and other small GM cars to stall.

An internal GM investigation, conducted by former prosecutor Anton Valukas and released to the public June 5, concluded that DeGiorgio alone approved the use of switches in the small cars that didn’t meet company specifications. It also found that years later he ordered a change to a new switch without alerting anyone else at GM. DeGiorgio was one of 15 GM employees dismissed in connection with the recall.

GM declined to disclose any information about Andres’ position with the company when she wrote the email.

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AP Business Writers Marcy Gordon in Washington and Tom Krisher in Detroit contributed to this story

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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