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Obama lauds former CEO as right choice to fix VA

By WTOP Staff

JOSH LEDERMAN
Associated Press

WASHINGTON (AP) — President Barack Obama sought to turn the page Monday on a humiliating chapter in the history of the Veterans Affairs Department, tapping former Procter & Gamble CEO Robert McDonald to take over the sprawling agency.

A former Army captain, McDonald would bring a blend of corporate and military experience to a bureaucracy reeling from revelations of chronic, system-wide failure and veterans dying while on long waiting lists for treatment. His selection reflects Obama’s desire to put a tested manager in charge as the White House calls for a top-to-bottom overhaul of the VA.

“What especially makes Bob the right choice to lead the VA right now is his three decades of experience building and managing one of the world’s most recognizable companies,” Obama said at VA headquarters. “In short, he’s about delivering better results.”

McDonald, a graduate of the U.S. Military Academy at West Point, was not likely chosen because of any past support for the president. He donated to Republican Mitt Romney’s 2012 campaign to unseat Obama and has funded numerous other Republicans, including House Speaker John Boehner.

Joined by his wife and adult children, the 61-year-old said he planned to put veterans at the center of everything the VA does — a bureaucratic twist on the old adage that the customer is always right.

“At the VA, the veteran is our customer and we must all focus all day, every day on getting them the benefits and the care that they have so earned,” McDonald said. “That’s the only reason we are here.”

Urging the Senate to confirm McDonald quickly, Obama reiterated his call for Congress to grant the VA secretary more authority to fire senior leaders if necessary. He said some of those responsible for falsifying patient records have been fired and more may be punished, adding that the scandal has “outraged us all.”

“This is not going to be an easy assignment. Bob knows that,” Obama said.

The VA operates the nation’s largest integrated health care system, with more than 300,000 fulltime employees and nearly 9 million veterans enrolled. But the agency faces intense scrutiny amid reports of nationwide treatment delays that were whitewashed by VA employees.

Last week, the White House released a scathing report Obama commissioned that charged the VA with “significant and chronic system failures.” The report also said the VA is battling a corrosive culture of distrust, lacking in resources and ill-prepared to deal with an influx of new and older veterans with a range of medical and mental health needs.

As outrage over the revelations snowballed, Obama dispatched top adviser Rob Nabors to investigate and report back on what must be fixed. Obama said he planned to keep Nabors at the VA temporarily during the leadership shift, and he praised Sloan Gibson for doing an “outstanding” job as acting VA secretary after Eric Shinseki resigned.

McDonald’s selection surprised veterans groups, who said his name hadn’t been on anyone’s list of likely candidates. Unlike Shinseki, a retired four-star general, McDonald has spent most of his career in the private sector.

“We think he does have the skillset,” said Tom Tarantino of the Iraq and Afghanistan Veterans of America. “He has excellent branding background, which is helpful because there really isn’t an organization that has a worse brand or reputation right now than the VA.”

McDonald appears headed for easy Senate confirmation. Both parties have urged Obama to fill the vacancy quickly so that the agency overhaul can begin in earnest. His nomination drew rare bipartisan praise.

“I think his management skills are just what the VA needs right now, given the fact it’s been plagued by chronic mismanagement for a number of years,” said House Veterans’ Affairs Committee Chairman Jeff Miller, a Florida Republican, in an interview. “I’ve seen nothing in the background that I have seen that would preclude his confirmation.”

Still, the circumstances of McDonald’s departure from P&G are likely to draw scrutiny. He resigned amid pressure from investors who fretted publicly that McDonald hadn’t boosted the company’s performance. On one particularly brutal conference call to announce quarterly earnings in 2012, a Citigroup analyst rapped McDonald for failing to deliver and blaming everything but himself.

“Let me be clear: It is my fault. I am the CEO of the company. I do take responsibility,” McDonald said in response.

His resignation notwithstanding, McDonald’s former colleagues praised him as a strong manager with a dedication to public service. “He is a master at complex operations,” said American Express CEO Ken Chenault, who served on P&G’s board. At P&G, whose brands include Tide and Crest, McDonald oversaw a workforce exceeding 120,000 employees and annual sales of more than $84 billion.

Sen. Bernie Sanders, I-Vt., who chairs the Senate panel that will consider the nomination, said he’s reserving judgment until he hears McDonald’s plans to fix the VA first-hand next week. In particular, Sanders said he wants to know whether McDonald supports temporarily contracting out services to private medical providers to reduce waiting times.

In tapping a businessman rather than a decorated general or health care leader, Obama is pulling from a playbook he’s used before when faced with a major crisis requiring a near-total agency reboot. When healthcare.gov crashed and burned last year, Obama tasked management consultant Jeffrey Zients with leading the rescue effort, then nominated his budget director, Sylvia Mathews Burwell, to take over after then-Health and Human Services Secretary Kathleen Sebelius resigned.

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Associated Press writers Matthew Daly and Julie Pace contributed to this report.

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Reach Josh Lederman on Twitter at http://twitter.com/joshledermanAP

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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