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Report: Chinese hackers hit US personnel networks

WASHINGTON (AP) — Chinese hackers broke into the computer networks of the Office of Personnel Management earlier this year with the intention of accessing the files of tens of thousands of federal employees who had applied for top-secret security clearances, according to The New York Times.

Senior U.S. officials say the hackers gained access to some of the agency’s databases in March before the threat was detected and blocked, the Times reported in an article posted on its website Wednesday night. How far the hackers penetrated the agency’s systems was not yet clear, the newspaper said.

Accusations of hacking by China and counterclaims of such activity by the U.S. government have strained U.S.-Chinese relations. Chinese hacking has been a major theme of U.S.-China discussions this week in Beijing, though both sides have publicly steered clear of the controversy.

White House spokesman Josh Earnest said Thursday that both the federal personnel office and the Department of Homeland Security took steps to mitigate any risk as soon as they learned about the possible intrusion.

“We have no reason to believe that personal identifiable information was compromised,” Earnest said from Austin, Texas, where President Barack Obama had events.

Secretary of State John Kerry was asked about the Times report after wrapping up meetings in Beijing Thursday. “At this point in time, it does not appear to have compromised any sensitive material,” he said. “I’m not going to get into any specifics of the ongoing investigation.”

Kerry said he did not discuss the specific case with the Chinese, but added, “We’ve been clear on larger terms that this is an issue of concern.”

A Chinese government spokesman on Thursday reiterated Beijing’s oft-stated position that it is “resolutely opposed” to Internet hacking and said there were parties who wanted to make China look like a cybersecurity threat.

“Some of the American media and cybersecurity firms are making constant efforts to smear China and create the so-called China cyberthreat,” Foreign Ministry spokesman Hong Lei said at a regular briefing. “They have never been able to present sufficient evidence. We are deeply convinced that such reports and commentaries are irresponsible and are not worth refuting.”

In May, the Justice Department filed a 31-count indictment against five Chinese military officials operating under hacker aliases and accused them of penetrating computer networks of a half-dozen steel companies and makers of solar and nuclear technology to gain a competitive advantage. The Chinese government denied the allegations and suspended a working group on cyber rules that was to be part of the annual Strategic and Economic Dialogue this week.

The Office of Personnel Management houses personal information for all federal employees. Those applying for security clearances would be expected to provide such information as foreign contacts, previous jobs, past drug use and other personal details, the newspaper reported.

The Times quoted an unidentified senior U.S. official as saying that the attack had been traced to China but that it wasn’t clear whether the hackers were part of the government.

The Office of Personnel Management oversees a system by which federal employees applying for security clearances enter financial data and other personal information, the Times said, and those who maintain such clearances are required to update their information through that system. Agencies and contractors use the information to investigate employees.

The attack in March was not announced, even though the Obama administration has urged U.S. companies to share information about breaches in security with the government and with consumers, the newspaper reported.

“The administration has never advocated that all intrusions be made public,” Caitlin Hayden, a spokeswoman for the Obama administration, said in a statement to the Times. “We have advocated that businesses that have suffered an intrusion notify customers if the intruder had access to consumers’ personal information. We have also advocated that companies and agencies voluntarily share information about intrusions.”

Hayden said the administration had no reason to believe that personally identifiable information for employees had been compromised.

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

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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