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Vatican bank shakeup expected as pope mulls reform

By WTOP Staff

NICOLE WINFIELD
Associated Press

VATICAN CITY (AP) — The embattled Vatican bank is heading into a new round of turmoil, with the resignations of its president and board expected soon as Pope Francis mulls how to reform the institution blamed for some of the Vatican’s biggest financial scandals, news reports and people familiar with the decisions said Tuesday.

It was this time last year that the top two managers at the Institute for Religious Works were forced out after a Vatican monsignor with millions deposited in the bank was arrested in an alleged money-smuggling plot.

They were soon replaced, but another round of resignations is expected in the coming days as Francis and his eight cardinal advisers meet to decide the bank’s future, according to Italian news reports and two people familiar with the decisions.

The bank’s current president, Ernst Von Freyberg, was appointed in February 2013 in one of Pope Benedict XVI’s final acts in office. He has never been received in audience by Francis, who was elected on a mandate of financial and bureaucratic reform.

Italian newsweekly L’Espresso reported last week that Von Freyberg would soon resign, citing a clash with Francis’ personal liaison to the bank over access to information.

A bank spokesman, Max Hohenberg, declined to comment Tuesday, saying only that the bank was working on its annual report.

An official familiar with the bank’s operations also said Von Freyberg was expected to resign. A separate Vatican official said that beyond Von Freyberg, a broader shake-up was expected next week. Both requested anonymity because they are not authorized to speak publicly about internal discussions.

The five-year terms of the majority of the bank’s five-member board expire in the fall, signaling they too will be leaving.

Next week, the Vatican’s new economy minister, Cardinal George Pell, convenes his new economy council, formed to oversee and rationalize the Vatican’s finances.

One of the ideas under consideration for the future of the bank is to restrict its activities to a purely depository institution for clergy, religious congregations and Vatican employees and shift its asset management services to a different entity. That would require different expertise at the top, and perhaps entail a full-time president rather than the part-time job that Von Freyberg, who helps oversee a family shipbuilding business in Germany, signed up for.

It remains unclear if Pell will take advantage of the power vacuum created by such high-ranking departures to bring the Vatican bank, which has traditionally operated as an independent financial institution within the Holy See, into his new financial orbit.

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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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