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California cities crack down on ride-sharing firms

By WTOP Staff

PAUL ELIAS
Associated Press

SAN FRANCISCO (AP) — Ride-sharing companies Uber, Lyft and Sidecar are being threatened with legal action in San Francisco and Los Angeles over how they screen drivers and charge passengers, along with other business practices.

The cities’ district attorneys sent letters to the three companies, warning they could face legal action if they fail to change the practices.

The company Sidecar publicly released a copy of the letter it received Thursday from San Francisco District Attorney George Gascon.

Gascon said he and Los Angeles County District Attorney Jackie Lacey have concluded Sidecar is making “misleading representations” on its website that it screens out drivers “who have ever committed driving violations, DUI, sexual assault and other criminal offenses.”

The prosecutors also claim the way Sidecar calculates shared fares — allowing people going the same way to hop in a car and pay separately — is illegal.

Sidecar’s rivals Lyft and Uber received similar letters that also included complaints about airport trips and the transparency and accuracy of the companies’ fares. The companies and Gascon’s office declined to release those letters.

In the letter to Sidecar, Gascon and Lacy threatened to seek fines and other penalties in court if the company didn’t comply with his demands to change its business practices. The district attorneys want a response by Monday and a face-to-face meeting by Oct. 8.

Sidecar chief executive Sunil Paul said the company conducts criminal background checks reaching back seven years for each driver. He said he believes the message on the company’s website is accurate, but that he’s open to discussions with Gascon.

Meanwhile, Paul defended the company’s new “shared rides” carpooling feature that Gascon and Lacy say violate California law barring drivers from charging separate fees for passengers in the same car going to the same destination. Paul said the law is “archaic and arcane.”

Officials with Uber and Lyft didn’t return phone calls Friday. However, each company issued a statement saying company officials would meet with the district attorneys.

“The DAs have made numerous inaccurate assertions that we will correct and discuss with them,” Uber spokeswoman Eva Behrend said.

“We are confident that we can work with the District Attorneys’ offices to address the items outlined in their letter and look forward to discussing with them soon to do so,” Lyft spokeswoman Paige Thelen said.

The legal threats are the latest challenges to the companies that have popular smartphone apps allowing passengers to order rides in privately driven cars instead of taxis.

Cab and limo operators in places such as New Mexico and Washington state have sued the ride-sharing businesses. Officials in some states have enacted rules regulating the companies, while other cities and states have struggled to pass laws.

“We value innovation and new modes of providing service to the public,” San Francisco District Attorney George Gascon said in a statement. “However, we need to make sure the safety and wellbeing of consumers are adequately protected in the process.”

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Information from: San Francisco Chronicle, http://www.sfgate.com

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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