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Most Alaskans to get nearly $1,900 in oil money

By WTOP Staff

RACHEL D’ORO
Associated Press

ANCHORAGE, Alaska (AP) — It’s a highly anticipated day of the year in Alaska, when residents learn how much money they’ll receive from the state’s oil-wealth savings account — a payout people receive just for living in The Last Frontier.

This year’s share of nearly $1,900 is the sweetest since the Great Recession and the third-richest ever.

Gov. Sean Parnell announced the amount of the Alaska Permanent Fund Dividend with great fanfare Wednesday. “This is all good news for Alaskans,” he said at an Anchorage press conference.

The $1,884 payout to be distributed Oct. 2 is more than double the amount of last year’s $900 checks but short of the record payout of $2,069 in 2008.

— WHO QUALIFIES? The dividends are distributed annually to men, women and children who sign up for it after living in the state for at least one calendar year, or were born in Alaska by the Dec. 31 deadline of the previous year. This year, nearly 599,000 Alaskans will receive checks, either through direct deposit or in the mail. Of those, the oldest recipient is 109 years old and the youngest includes 26 children who were born Dec. 31. Altogether, the checks total $1.1 billion.

— THE PAYOUT FORMULA: The amount of each person’s check is based on a five-year average of the fund’s investment earnings, which have included the recession years. Alaska wasn’t hit as hard by the recession as the Lower 48, but the Permanent Fund Corp. has a diversified portfolio that was clobbered when markets plunged worldwide. The fund has since recovered, according to officials. The fund had a balance of $29.9 billion in 2009, compared with $51.2 billion five years later.

— HOW DO FOLKS SPEND IT? Some dividend payouts go toward fun stuff like vacations and big-screen TVs. But in the remote village of Deering, city administrator Mike Jones says his family’s share, $5,652 for the family of three, will go toward bills and heating fuel, which is $6.50 a gallon and rising. “There was a time when I was younger I would go for snow machines and fun stuff,” Jones said. These days, necessities take precedence for the family in the Inupiat Eskimo community 520 miles northwest of Anchorage.

— RETAIL SALES: Businesses often rush to take advantage of the cash infusion, offering Permanent Fund Dividend deals. For example, the Girl Scouts of Alaska announced a 10 percent discount on all non-uniform apparel in a “PFD Super-Saver” sale being held through Friday at an Anchorage Girl Scouts store. Alaska Airlines announced more than 90 destinations available through a Permanent Fund Dividend sale running between Sept. 24 and Oct. 29. “How does travel to faraway warm sapphire seas sound? How about exciting cities you’ve always wanted to see?” the airline says on its website. “This is the flight sale that’s made just for Alaskans.”

— GIVING TO CHARITY: Some Alaskans choose to give part of their dividend to charitable causes through the “Pick. Click. Give.” program. This year, 26,850 recipients pledged $2.8 million to 511 nonprofit organizations.

— HOW DID IT ALL BEGIN? The Permanent Fund was established in 1976 after the discovery of oil on Alaska’s North Slope. The state began distributing fund money to residents in 1982. If an Alaskan has qualified for all of the checks distributed since the beginning, he or she would have collected $37,027.41. With the upcoming distribution, the state will have distributed more than $21.9 billion over the years.

— DON’T FORGET THE IRS: Alas, it’s not all free money. Alaska has no state income tax, but residents must pay federal taxes on the bounty.

___

Follow Rachel D’Oro at https://twitter.com/rdoro

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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