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Colorado’s pot market getting new competition

By WTOP Staff

KRISTEN WYATT
Associated Press

DENVER (AP) — Colorado’s new marijuana industry is in for a brand new element Wednesday — competition.

The state gave medical marijuana dispensaries and growers a nine-month exclusive on the new recreational pot business, fearing an unmanageable explosion of new businesses.

The grandfathering period expires Wednesday, meaning pot shops and growers who weren’t in business before voters approved recreational pot in 2012 are just now able to enter the market.

“There’s going to a price war coming. It’s inevitable,” predicted Toni Fox, a marijuana grower and owner of a Denver pot shop. Fox has received a license for a second shop opening Wednesday in Salida.

Colorado is issuing licenses for 46 more pot shops, in addition to about 200 already in place. Colorado is also licensing 37 more growing facilities and 13 new product manufacturers who make marijuana-infused products.

The expansion means pot prices for consumers could soon drop. Recreational marijuana in Colorado currently wholesales for about $1,800 to $2,500 a pound, depending on quality. The addition of new growers starting Wednesday could push the price below $1,000 a pound once those plants mature.

Until now, Colorado’s pot prices have been steep — with customers paying up to $400 an ounce before taxes — because of production caps tied to the pre-existing medical marijuana market. Colorado regulators feared an unmanageable proliferation of new pot shops and growers. Now, the market is for the first time getting bigger.

“Allowing for new entrants into the market will better facilitate a free-market determination of price,” Andrew Freedman, director of marijuana coordination for Gov. John Hickenlooper, said in a statement.

But some warn Colorado needs to watch for overproduction, which could give growers an incentive to sell pot illegally, either out of state or to people under 21.

“We need to produce in Colorado what’s being legally consumed, and no more,” said Mike Elliott, head of the Marijuana Industry Group.

Also Wednesday, Colorado’s pot industry sees the end of the state’s so-called “70/30 Rule,” which stipulated that pot shops had to grow 70 percent of what they sold. The rule was instituted in 2010, to address concerns that medical marijuana shops were acquiring marijuana from the black market. The rule was extended into the recreational market for the first few months, also to reduce volatility.

The end of the “70/30 Rule” means pot retailers don’t necessarily have to grow anything they’re selling. For now, though, retailers say they’ll wait and see how the market changes before considering letting others grow their inventory.

“There’s still an efficiency that exists when you do it all,” said Chris Woods, owner of two dispensaries in Boulder and the recipient of a new retail license.

Woods plans to be one of 21 shops planning to open in Aurora, a Denver suburb which is allowing marijuana sales of any kind for the first time Wednesday. Colorado’s third-largest city did not allow medical marijuana sales, and the grandfathering period meant no stores could open there until Oct. 1.

The industry expansion happens the same day a raft of new marijuana regulations take effect. Many of the changes have already been adopted by producers, so it’s doubtful consumers will notice many of them. But the new regulations include:

–Requiring edible marijuana products to be easier for consumers to divide into “servings” of 10 milligrams of THC, pot’s active ingredient.

–New packaging requirements for products that can’t easily be divided or perforated, such as liquids or granolas.

–Requiring edible marijuana products to undergo testing for common food contaminants such as E. coli and salmonella.

–A requirement that marijuana producers show they’re legally selling 85 percent of their product before getting permission to add plants.

–Lower licensing fees for growers and retailers, as the pot-regulating agency adjusts how much it needs to oversee the industry

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Kristen Wyatt can be reached at http://www.twitter.com/APkristenwyatt

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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