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Detroit tells judge: We can’t give away free water

By WTOP Staff

ED WHITE
Associated Press

DETROIT (AP) — Detroit’s water department defended its shutoff policy Monday and warned that free service to people with unpaid bills could be “very devastating” to the bottom line.

Judge Steven Rhodes set aside Detroit’s bankruptcy trial to hear evidence in a controversy that has been boiling all summer. A coalition representing low-income residents is asking him to suspend water shutoffs and restore service to people who have lost it.

The water department would be violating Michigan law and breaking agreements with bondholders if forced to supply water and ignore overdue bills, attorney Sonal Mithani said.

The “humanitarian concerns are very compelling” but fairness is critical, too, Mithani said, noting that 60 percent of Detroit residents are paying for water on time.

Opponents essentially are arguing that “every resident has the inherent right to free water,” she said.

The water department stepped up shutoffs in March, and about 15,000 customers had service cut from April to June. Criticism and protests followed, even appeals to the United Nations.

Detroit stopped shutoffs for about a month this summer but they resumed in August after Mayor Mike Duggan encouraged people to put down 10 percent and sign up for a payment plan.

“It could potentially be very devastating” to the water department’s budget if the city is ordered to stop shutoffs, director Sue McCormick told the judge.

Carol Ann Bogden said the new policy hasn’t helped her. She said she bathes in the sink with water purchased at a store since being cut off in July. She owes $1,120 but lost her identification and has been unable to get into a payment plan.

“I cried for a while,” Bogden said of her woes.

As of July 31, at least $86 million was owed on accounts overdue for at least 60 days.

An economist, Roger Colton of Belmont, Massachusetts, testified for critics of Detroit’s shutoff policy, saying a consumer’s income should be a factor in how the city regularly collects water bills.

He predicted that Detroit’s payment options will be “unsuccessful and ineffective” in the long run as poor people miss more payments down the road.

John C. Smith said he and his mother could lose water as soon as Tuesday after being cut off for a few months last winter. He owes about $1,100.

His spending habits were questioned by attorney Thomas O’Brien, who asked about his cellphone bill. Smith said his sister pays it.

The hearing will end Tuesday after testimony from water department officials and closing arguments.

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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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