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Vendor in dispute with Ala. univ. over catering

By WTOP Staff

PHILLIP RAWLS
Associated Press

MONTGOMERY, Ala. (AP) — The head of a food services company said officials at Alabama State University threatened to cancel the company’s contract after it wouldn’t commit to providing thousands of dollars in free catering for the new president’s inaugural.

Chairman Nathanial Goldston of Atlanta-based Gourmet Services sent a letter Sunday to the university’s trustees, including Alabama Gov. Robert Bentley, asking them to investigate what he called “an unethical request” by the administration of new university president Gwendolyn Boyd.

Boyd responded with a statement Wednesday that the termination notice was based on performance issues, independent of any donation. “The contract has not been terminated. Gourmet Services has been issued a notice based on performance-related concerns. The termination notice was independent of any information related to a donation, which was offered by Gourmet Services,” it said.

Goldston’s letter, first reported by the Montgomery Advertiser, said the company’s executive vice president, Alfred Baker, met Aug. 20 with Boyd and other Alabama State officials to discuss inaugural festivities, now underway. Goldston wrote that Baker said the company would contribute $13,000 to $15,000 in food, beverages and catering for the events. But the letter added that a university vice president requested $20,000 at that meeting.

“Mr. Baker was very uncomfortable with the $20,000 request as this is not customary, and the approach was quite questionable,” Goldston wrote. He said the company, which provides food services at schools and colleges, is accustomed to requests for sponsorships but was surprised by the size of the request and couldn’t commit to that amount.

Goldston said Baker was asked to stay a few minutes after the meeting and was then given a letter, signed by Boyd, saying the university was considering canceling its contract because of problems with its food service in the university cafeteria.

“Gourmet has never experienced a situation in which public officials have demanded an exorbitant level of in-kind food and catering contributions for private galas or presidential functions, and when the demand was not met, handed a notice of termination of its food services contract on the spot,” he wrote.

Before writing to the trustees, Goldston sent a letter to the new president on Aug. 27 saying his company had worked to address every complaint brought to its attention. He said the company, which has provided food services at Alabama State for more than 20 years, was not making any contribution to the inaugural activities.

Goldston did not return phone messages left Wednesday at his Atlanta office.

The president of the Alabama State Faculty Senate, Charlie Hardy, said he was present at the Aug. 20 meeting. He said Baker made it clear the company wanted to help with inaugural festivities and added that the official’s mention of $20,000 was almost in jest. Hardy said he never considered it a threat.

“I don’t think anyone left the room feeling there was anything hard, stiff or demanding about that,” he said in a phone interview.

Gov. Bentley, president of the Alabama State board of trustees by virtue of his office, has been a strong supporter of Boyd and recently replaced two trustees who had clashed with her. Bentley said Wednesday he hadn’t seen Goldston’s letter and couldn’t comment on it.

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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