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Cuba: Just 50 cars sold in 6 months under new law

By WTOP Staff

ANDREA RODRIGUEZ
Associated Press

HAVANA (AP) — Just 50 automobiles and four motorcycles have been sold in Cuba in the nearly six months since a new law took effect that let islanders buy vehicles from state-run dealerships without a special permit for the first time in decades, authorities said Monday.

Sales totaled about $1.3 million, government news website Cubadebate reported, for an average of some $23,800 per vehicle.

Cubadebate quoted Iset Vazquez Brizuela, first vice president of state-owned vehicle distributor Cimex, as saying there are 11 licensed auto dealerships nationwide.

About 11 million people live in Cuba.

Many Cubans were delighted when the new rules were announced in December — and then left aghast by the sticker prices once they took effect the following month.

A new Peugeot family car that listed for $262,000 in Havana would cost $53,000 in the United Kingdom, for example, while a compact Kia Rio hatchback that starts at $13,600 in the United States was on offer for $42,000 in Cuba.

The licensed dealerships also sell used cars for significantly less, often former rentals with high odometer readings. These would appear to account for most or nearly all the sales reported by Cubadebate.

But even cheaply made Chinese sedans decommissioned from government fleets list as used cars for well above what they command elsewhere brand-new.

The prices were the subject of bitter and open complaint by many Cubans, most of whom earn about $20 a month working for the government.

The state still employs the great majority of the labor force despite President Raul Castro’s economic reforms allowing some limited private-sector enterprise. Person-to-person sale of used cars is also now legal.

Before January, islanders who wanted to purchase a vehicle had to acquire a “letter” of permission. The privilege was granted to the likes of diplomats, technicians, doctors and others who served on foreign missions and returned with hard currency saved up overseas.

Cubadebate said authorities intend for 75 percent of income from automobile sales to be invested in public transportation.

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Andrea Rodriguez on Twitter: www.twitter.com/ARodriguezAP

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 This material may not be published, broadcast, rewritten or redistributed.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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