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Officials ask federal board to help on rail delays

By WTOP Staff

DAVE KOLPACK
Associated Press

FARGO, N.D. (AP) — North Dakota Gov. Jack Dalrymple opened a federal hearing in Fargo about rail service delays in the upper Plains by reading a letter from a grain elevator that said Canadian Pacific Railway Ltd. was 525 cars behind in its service.

The Wilton Farmers Union Elevator also told the governor that as of last month it was still waiting for a train that had been scheduled to arrive on April 8.

That backlog has caused what Dalrymple told the National Surface Transportation Board on Thursday was an “emergency situation” — acres of corn, soybeans and wheat are at record levels in the Dakotas and Minnesota, but there’s no place to move it. In North Dakota alone, more than 15 percent of the 2013 grain is still in storage, although that number is more like 90 percent at the Wilton elevator.

“I would seriously ask you to consider this an emergency situation,” Dalrymple told the three-member panel that oversees railroad service issues. He was among dozens of officials from the Dakotas and Minnesota who testified.

Farmers and some politicians believe that increased crude oil and freight shipments from North Dakota’s western oil fields are largely the cause of shipping delays. Railroads, however, have denied that they favor one sector over another.

Farmers Union Elevator manager Brian Guderjahn told The Associated Press after the meeting that the April 8 cars mentioned in the letter had arrived. But now they’re waiting on the April 22 train.

“We order these cars in January for April placement. They come in September. How is a company or a general manager supposed to market grain?” Guderjahn asked. “We can’t even start to guess or estimate when we can deliver grain to these people.”

Representatives from three rail companies testified Thursday, but the focus was on Canadian Pacific and what North Dakota lawmakers say is the company’s failure to provide details on improving the problem. North Dakota Sens. John Hoeven and Heidi Heitkamp said after their testimony that BNSF Railway has outlined steps in the right direction, but Canadian Pacific has not.

“Unlike Burlington Northern, I think CP thinks this is cyclical. That this is temporary,” Heitkamp said. “We can’t seem to nail down what their investment plans are in North Dakota.”

Canadian Pacific spokesman John Brooks said that the company began plans on a new car-ordering system 10 months ago and has been working with customers in the last couple of months on “an orderly transition.” He acknowledged there’s “still a lot of work to do” to fill smaller orders, such as the Wilton elevator.

Brooks, who faced more questions from the panel than any of the speakers, also said in his presentation that Canadian Pacific invested more than $700 million in the last five years to expand capacity in the upper Plains states and plans to spend more than $500 million in the next two years. He told the board the railway plans to add 400 additional employees and offer housing and other incentives to get employees to job-rich North Dakota.

Guderjahn, the elevator manager, said he has yet to hear from Canadian Pacific.

“It’s depressing,” he said. “We go into harvest in a position where the elevators are pretty much full of old crop grain.”

Dalrymple cited a North Dakota State University study that shows railway shipping delays have resulted in at least $67 million in lost farm income on crops sold between January and April. The study, completed before the current harvest, found the potential for an additional $95.4 million in lost income from the sale of on-farm grain stocks.

Dalrymple said the board can provide an oversight role to ensure a balance between the agriculture and energy sectors and the larger and smaller shipments. The board also has the ability to arrange additional equipment and service, he said.

“This hearing is not about commodity groups and public officials coming in and telling you something,” Dalrymple told the board. “It is about individual elevators and farmers out there who have no place to go. They have no recourse. They have no power. They have no influence over the situation, except for you.”

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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