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Social Security closes offices as baby boomers age

By WTOP Staff

STEPHEN OHLEMACHER
Associated Press

WASHINGTON (AP) — Budget cuts have forced the Social Security Administration to close dozens of field offices even as millions of baby boomers approach retirement, swamping the agency with applications for benefits, a senior agency official told Congress Wednesday.

Better Internet access and more online services are easing the transition, said Nancy Berryhill, the agency’s deputy commissioner for operations.

“We are fully committed — now and in the future — to sustaining a field office structure that provides face-to-face service for those customers who need or prefer such service,” Berryhill told the Senate Special Committee on Aging. “We also understand, however, that customer expectations are evolving due to changes in technology, demographics and other factors.”

Senators appeared unconvinced.

“The fact of the matter is, millions of seniors and disabled Americans are not accustomed to doing business online,” said Sen. Susan Collins of Maine, the top Republican on the Aging Committee. “Even as computer and broadband technologies become more widespread, the idea that the Social Security Administration can serve beneficiaries primarily online ignores the very real needs of the senior and disabled populations.”

The committee held a hearing Wednesday after issuing a bipartisan report showing that Social Security has closed 64 field offices since 2010, the largest number of closures in a five-year period in the agency’s history.

In addition, the agency has closed 533 temporary mobile offices that often serve remote areas. Hours have been reduced in the 1,245 field offices that are still open, the report said.

As a result, seniors seeking information and help from the agency are facing increasingly long waits, in person and on the phone, the report said.

“They don’t do any kind of analysis on what would happen to a community when their field office closes, including figuring out how the most vulnerable populations would make their way to the next-closest office,” said Sen. Bill Nelson, D-Fla., chairman of the Aging Committee.

The closings come as applications for retirement and disability benefits are soaring, a trend that will continue as aging baby boomers approach retirement.

More than 47 million people receive Social Security retirement benefits, nearly a 20 percent increase from a decade ago. About 11 million people receive Social Security disability benefits, a 38 percent increase from a decade ago.

The Social Security Administration has been encouraging people to access services online. The agency has upgraded its website in recent years, including secure connections to access confidential information. People can apply for benefits without ever visiting Social Security offices.

In 2013, nearly half of all retirement applications were filed online, the report said.

But the committee report notes that many older Americans lack access to the Internet or might not be comfortable using it to apply for benefits.

Last year, more than 43 million people visited Social Security field offices. About 43 percent of those seeking an appointment had to wait more than three weeks, up from just 10 percent the year before, the report said.

About 10 percent of visitors to Social Security offices are applying for benefits, Berryhill said. The largest group, about 30 percent, are seeking new or replacement Social Security cards.

Berryhill said Social Security officials do annual reviews to determine whether offices should be expanded, reduced or closed.

“Once we make the decision to consolidate an office, we discuss the changes with stakeholders,” Berryhill said. “We hold town hall meetings or other forums that allow the public to voice their concerns. We contact key community leaders.”

Like many federal agencies, Social Security has faced budget cuts in recent years. After two years of shrinking budgets, the agency got a 6 percent increase this year, to $11.8 billion.

Social Security has cut its workforce by 11,000 employees over the past three years, Berryhill said.

She said the agency saves an average of $4 million over the course of a decade for every field office it closes.

“I can hire a lot of employees with $4 million,” Berryhill said.

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Online: Senate committee report: http://tinyurl.com/o4pdbpc

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Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap

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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