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IMF head: Improved policies needed to boost growth

By WTOP Staff

MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) — The head of the International Monetary Fund says that six years after the financial crisis, the world is still mired in a disappointing economic recovery and will only be able to regain momentum through improved government policies.

IMF Managing Director Christine Lagarde said Thursday that the world has experienced a sub-par recovery that is “brittle, uneven and beset by risks.” Those risks include potential escalation of the strife in the Middle East and Ukraine, as well as the Ebola outbreak in Africa.

Policymakers must pursue reforms to break out of a prolonged period of mediocre growth, Lagarde said in a speech at Georgetown University to preview next week’s meetings of the 188-nation IMF and its sister lending agency, the World Bank. She called for reforms of labor markets and increased spending on infrastructure.

“There is a recovery, but as we all know … the level of growth and jobs is simply not good enough,” Lagarde said. “The world needs to aim higher and try harder.”

She said a mix of bolder policies were needed to make sure that the “new mediocre” doesn’t become permanent.

In addition to the IMF and the World Bank, finance ministers and central bank presidents of the Group of 20 nations will hold discussions on Oct. 10. Treasury Secretary Jacob Lew and Federal Reserve Chair Janet Yellen will represent the United States.

Among advanced economies, Lagarde described current growth as strongest in the United States and Britain, modest in Japan and weakest in the group of European countries that use the euro currency.

More than 200 million people are still unemployed around the world, about 75 million of which are young people, she said. And with the exception of the top 1 percent, most people have seen their incomes stagnate or shrink in recent years.

She called for increased job training to attack unemployment and weak wage growth and suggested that some nations consider expanding labor market participation, especially among women.

Lagarde said that public investment in infrastructure was also critically important, citing one estimate that $6 trillion would be needed globally for electricity grids, roads and other infrastructure over the next 15 years.

“There is an obvious imperative in many countries where bottlenecks and obstacles to transportation and energy supply abound and hamper development,” she said.

Lagarde praised a commitment made by the G-20 finance officials meeting last month in Australia to pursue strategies to lift economic growth by a collective 2 percent or $2 trillion over the next five years.

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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