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Special master appointed for Argentina debt talks

By WTOP Staff

LARRY NEUMEISTER
Associated Press

NEW YORK (AP) — A special master was appointed Monday to preside over negotiations between Argentina representatives and U.S. bondholders aimed at ending a long dispute over $1.5 billion in debts.

U.S. District Judge Thomas Griesa in Manhattan appointed Daniel A. Pollack to conduct and preside over the talks. Pollack is a Harvard Law School-trained litigator with decades of experience in financial cases.

The appointment came after a lawyer for Argentina, Carmine Boccuzzi Jr., said in a letter to the judge that Argentina “wants to emerge from the litigation that has burdened both it and the courts.”

“The republic is committed to a dialogue that will be followed by what the republic intends to be a resolution of this litigation and the entirety of its outstanding debt burden, which is a matter of public interest to all Argentine citizens,” he said.

Boccuzzi said Argentina is willing to negotiate in good faith, but he asked the judge to suspend financial penalties during negotiations. The judge did not immediately rule on the request.

The plaintiffs in the New York litigation represent about 1 percent of Argentina’s $100 billion of debt that went into default in 2001. About 92 percent of creditors joined 2005 and 2010 debt swaps, agreeing to accept less money. Another 7 percent of those who did not join the swaps did not sue Argentina and are not part of the U.S. court case.

Holdout bondholders from U.S. hedge funds that sued in Manhattan federal court were led by New York billionaire Paul Singer’s NML Capital Ltd. A lawyer for NML did not immediately return a message seeking comment Monday.

Argentina was forced to the negotiating table after the U.S. Supreme Court rejected its appeals of the judge’s rulings that ordered the country to make payments on the debt.

Argentina’s economy minister, Axel Kicillof, said the judge needs to suspend that ruling if Argentina makes payments to other bondholders as required on June 30.

“A suspension measure is essential so Argentina can continue to pay all of its restructured bondholders normally,” Kicillof said. “And we can continue the dialogue that we need under equal conditions so that 100 percent of the creditors can be paid, especially those that we have restructured and that we need to pay in the coming date.”

An attorney of the Washington Legal Foundation, which has lobbied for the hedge funds involved, said it’s not surprising Argentina would like to “delay its day of reckoning as long as possible.”

“But the issues raised by Argentina have now been decided against it by the American courts, and the judicial process is exhausted,” attorney Richard Samp said. “All that remains to be negotiated is the terms of payment.”

He said there’s no possibility the holdouts would “agree to the lengthy sort of delay that Argentina appears to be contemplating.”

___

Calatrava reported from Buenos Aires. Associated Press writer Luis Andres Henao in Santiago, Chile, contributed to the report.

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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