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Correction: Postal Service-Losses story

By WTOP Staff

WASHINGTON (AP) — In a story Aug. 11 about U.S. Postal Service Revenues, The Associated Press reported erroneously that the agency blamed its $2 billion loss for the quarter ending June 30 on increases in compensation and benefit costs. Although those costs did increase slightly, the overall loss reflected the agency spending $18.4 billion in operating costs against revenues of $16.5 billion.

A corrected version of the story is below:

US Postal Service loses $2B this spring

US Postal Service loses $2B this spring despite uptick in revenue

By The Associated Press

WASHINGTON (AP) — The U.S. Postal Service lost $2 billion this spring despite increasing its volume and charging consumers more money to send mail, officials said Monday.

The loss for the spring quarter, which ended June 30, was significantly higher than the $740 million loss for the same three-month period last year. The loss came despite a 2 percent increase in operating revenue compared with last spring.

The agency said it would be unable to make a congressionally mandated payment of $5.7 billion this September for health benefits for future retirees.

“Due to continued losses and low levels of liquidity, we’ve been extremely conservative with our capital, spending only what is deemed essential to maintain existing infrastructure,” said Joseph Corbett, the Postal Service’s chief financial officer.

The Postal Service is an independent agency that receives no tax dollars for its day-to-day operations but is subject to congressional control. It has asked to end most Saturday deliveries, a request that is languishing in Congress amid opposition by postal unions. The agency also is seeking to eliminate the congressionally mandated $5.7 billion annual payment for future retiree health benefits.

Fredric Rolando, president of the National Association of Letter Carriers, agrees that Congress should get rid of the 2006 mandated payment but says it would be “irresponsible to degrade services to Americans and their businesses” just as postal delivery is rebounding with the economy. Because more people are shopping online, “the Internet is now a net positive for USPS, auguring well for the future as e-commerce grows,” Rolando said in a statement.

The Postal Service has defaulted before on federally mandated annual payments to cover expected health care costs for future retirees. Corbett said the agency also needs $10 billion to replace old vehicles, buy new package sorting equipment and make other infrastructure upgrades.

Other findings from the latest quarterly report compared to the same time period last year:

–Shipping and package revenue was up 6.6 percent, while standard mail revenue increased 5.1 percent. The increase was attributed both to higher volume and prices charged to consumers.

–First-class mail volume declined by 1.4 percent, but revenue climbed 3.2 percent because of price increases.

–Operating revenue increased by $327 million to $16.5 billion.

–Operating expenses increased by $1.5 billion to $18.4 billion.

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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