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US official: Auto safety agency under review

JOAN LOWY
Associated Press

WASHINGTON (AP) — Transportation officials are reviewing the “safety culture” of the federal agency that oversees auto recalls, a senior Obama administration official said Friday. The National Highway Traffic Safety Administration has been criticized by lawmakers and safety advocates for not acting aggressively enough regarding millions of vehicles with defective air bags or faulty ignition switches.

A special Transportation Department team is examining whether “we have the dial set correctly on risk management and our safety posture in general” throughout the department, especially at the safety administration, said the official, who asked that he not be named as a condition of briefing reporters. The safety agency is part of the Transportation Department.

Announcements related to the review are expected in the coming weeks, the official said. The White House is also expected to nominate an administrator to run the troubled agency within the next two weeks, he said. The previous administrator, David Strickland, left the agency in December just before the recall controversies erupted.

Further action also is possible involving air bag inflators made by Takata Corp., the official said. The inflators can rupture, ejecting shrapnel in a crash. Safety advocates say the problem has caused four deaths and multiple injuries. So far automakers have recalled about 12 million vehicles worldwide due to the problem, but recalls in the U.S. have been limited to vehicles registered in regions with high humidity. Millions more vehicles could be affected if the air bag recalls are extended nationwide, according to safety advocates.

No firm cause of the problem has been identified. Takata and the safety administration are investigating the impact of prolonged absolute humidity, which is a measure of the moisture content in the air, on chemicals that propel the air bags in a crash. They’re looking into whether moisture in the air can cause the chemicals to explode with too much force, causing metal parts to fracture.

On Wednesday, the safety administration warned the owners of an additional 3.1 million vehicles to get their air bags checks repaired because of the potential danger to drivers and passengers. The agency has previously issued a warning covering 4.7 million cars and SUVs.

“The investigation is not over,” the official said. “What has happened this week is an initial round of actions, but I wouldn’t assume there wouldn’t be future actions related to it.”

At least 29 people have died and 27 people have been seriously injured in crashes involving General Motors cars with defective ignition switches, according to attorney Kenneth Feinberg, who was hired by GM to compensate victims. He is examining 184 death claims and 1,333 injury claims that have been filed since August.

The defective switches can unexpectedly move to the “accessory” or “off” positions, shutting down the engine and knocking out power steering and brakes. With engines shut off, people can lose control of their cars and crash. If that happens, the air bags won’t inflate.

GM has admitted knowing about the problem for more than a decade in small cars such as the Chevrolet Cobalt. Yet it didn’t begin recalling the 2.6 million small cars until February.

The safety administration received a police report and numerous consumer complaints about the switches over the years, but didn’t recognize the seriousness of the problem. Agency officials blamed GM for withholding key information from the government.

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Don’t Settle for Student Loans to Pay for Online Education

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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