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Things to know about NCAA antitrust ruling

By WTOP Staff

TIM DAHLBERG
AP Sports Writer

A federal judge has ruled that some college athletes can receive payments when they leave school for the rights to their names, images and likenesses, opening the door for them to get a fraction of the billions of dollars generated by collegiate athletics. The decision comes after a lawsuit launched by former UCLA basketball star Ed O’Bannon, who was upset because his image was used in a video game, but he wasn’t paid.

Here’s a few key questions to understand Friday’s ruling:

Q: What does this ruling mean?

A: It opens the door for football and men’s basketball players to get money once they leave school. But they likely won’t be in for huge windfalls, at least the way U.S. District Judge Claudia Wilken envisions it. She said the NCAA can cap payments made to players for their names, images and likenesses, as long as that cap isn’t less than $5,000 a year. That would mean players on a roster for four years could potentially expect some $20,000 when they leave school.

Q: Where does the money come from?

A: The money would be taken from the billions of dollars flowing into major college athletics and schools would put it in trust funds that would be given to players only when they leave school. Individual schools could pay less than $5,000 if they want, but Wilken said they can’t unlawfully conspire among themselves to fix a certain amount to pay.

Q: How will the money be paid?

A: That’s anyone’s guess. Lawyers for the plaintiffs have set up a company to negotiate rights and dole out payments, or the schools themselves could do it. It’s really uncharted territory and no one knows exactly how it will play out.

Q: Do swimmers or tennis players get the same money?

A: No, this lawsuit was limited to football players in FBS schools and Division I basketball players.

Q: What else can these players get? Can they endorse sports drinks or shoes now?

A: No. Wilken ruled that all other NCAA regulations concerning extra pay, endorsements and other benefits will remain in effect. She also said the NCAA could also enact new legislation designed to prohibit players from using the promise of funds received when they leave school to get other money while in school.

Q: Is this just the beginning of wholesale changes in college athletics?

A: Not necessarily, though in shutting down the NCAA’s amateurism defense, Wilken may have opened the door for other challenges to the organization’s authority. She said in her ruling that any other changes in NCAA regulations should not be addressed in antitrust court cases but by schools, conferences and even Congress. Most observers believe the O’Bannon lawsuit and related union organizing efforts at Northwestern were the driving force behind the biggest five conferences this week moving to expand benefits they give their players.

Q: When will recruits be offered this extra money?

A: Not for a while. Wilken said it will not affect any prospective student-athlete who enrolls in college before July 1, 2016.

Q: Will the NCAA appeal?

A: Almost certainly. NCAA lawyers said earlier the issues are so important they will go all the way to the Supreme Court if necessary.

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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