FAFSA Delays Prompt California to Extend Deadline for Financial Aid Applications

Sacramento, California — The California Legislature on Thursday voted to give prospective college students more time to apply for two of the state’s largest financial aid programs after a glitch in the federal government’s application system threatened to block up to 100,000 people from getting help.

California had already extended the deadline for its financial aid programs from March 2 to April 2. On Thursday, the state Senate gave final approval to a bill that would extend it again until May 2. The bill now heads to Governor Gavin Newsom.

“Clearly, our students need our help,” Assemblymember Sabrina Cervantes, a Democrat from Riverside who authored the bill, told lawmakers during a public hearing earlier this week.

California has multiple programs to help people pay for college. The biggest is the Cal Grant program, which gives money to people who meet certain income requirements. The state also has a Middle Class Scholarship for people with slightly higher incomes.

Students can apply for these state aid programs only if they first complete the Free Application for Federal Student Aid, commonly known as FAFSA.

This year, a computer glitch prevented parents from filling out the form if they did not have a Social Security number. That meant many students who are U.S. citizens or permanent residents but whose parents are not were blocked from completing the form and thus could not apply for California’s aid programs.

California has a large population of adults who are living in the country without legal permission. The California Student Aid Commission, the state agency in charge of California’s financial aid programs, estimates as many as 100,000 students could be affected by this glitch.

The U.S. Department of Education says it fixed the problem last week, but those families are now a step behind. Democrats in Congress raised alarms last month, noting that the delay could particularly hurt students in states where financial aid is awarded on a first-come, first-served basis, including Illinois, Kentucky, Missouri, Oregon and Texas.

Advocates fear that the chaos of this year’s process could deter students from going to college at all, especially those for whom finances are a key part of the decision.

The computer glitch is just one part of larger problems affecting FAFSA.

The notoriously time-consuming form was overhauled in 2020 through a bipartisan bill in Congress. It promised to simplify the form, going from 100 questions to fewer than 40, and it also changed the underlying formula for student aid, promising to expand it to more low-income students.

But the update has been marred by delays, leaving families across the country in limbo as they figure out how much college will cost.

The form is typically available to fill out in October, but the Education Department didn’t have it ready until late December. Even then, the agency wasn’t ready to begin processing the forms and sending them to states and colleges, which only started to happen this month.

The problems appear to have already reduced California’s application numbers. Through March 8, the number of California students who had completed FAFSA was 43% lower than it was at the same time last year.

“The data most concerning me seems to suggest that these drops are more acute at the schools that serve low-income students or large populations of students of color,” Jake Brymner, deputy chief of policy and public affairs for the California Student Aid Commission, told lawmakers in a public hearing earlier this week.

The issue has caused problems for colleges and universities, too. The University of California and California State University systems both delayed their admissions deadlines because so many prospective students were having trouble with FAFSA.

Reddit, the Self-Anointed ‘Front Page of the Internet,’ Jumps 55% in Wall Street Debut

NEW YORK — Reddit soared in its Wall Street debut as investors pushed the valued of the company close to $9 billion seconds after it began trading on the New York Stock Exchange.

Reddit, which priced its IPO at $34 a share, debuted Thursday afternoon at $47 a share. The going price has climbed even higher since, with shares for the self-anointed “front page of the internet” soaring more than 55% as of around 1:20 p.m. ET.

The IPO will test the quirky company’s ability to overcome a nearly 20-year history colored by uninterrupted losses, management turmoil and occasional user backlashes to build a sustainable business.

“The supply is pretty limited and there’s strong demand, so my sense is that this is going to be a hot IPO,” Reena Aggarwal, director of Georgetown University’s Psaros Center for Financial Markets and Policy, said ahead of Reddit’s trading Thursday. “The good news for Reddit is it’s a hot market.”

Still, she also anticipates Reddit’s IPO to be volatile. Even with a sizeable “pop,” it’s possible that some might sell their shares to reap their gains soon after, potentially causing prices to drift.

The interest surrounding Reddit stems largely from a large audience that religiously visits the service to discuss a potpourri of subjects that range from silly memes to existential worries, as well as get recommendations from like-minded people.

About 76 million users checked into one of Reddit’s roughly 100,000 communities in December, according to the regulatory disclosures required before the San Francisco company goes public. Reddit set aside up to 1.76 million of 15.3 million shares being offered in the IPO for users of its service.

Per the usual IPO custom, the remaining shares are expected to be bought primarily by mutual funds and other institutional investors betting Reddit is ready for prime time in finance.

Reddit’s moneymaking potential also has attracted some prominent supporters, including OpenAI CEO Sam Altman, who accumulated a stake as an early investor that has made him one of the company’s biggest shareholders. Altman owns 12.2 million shares of Reddit stock, according to the company’s IPO disclosures.

Other early investors in Reddit have included PayPal co-founder Peter Thiel, Academy Award-winning actor Jared Leto and rapper Snoop Dogg. None of them are listed among Reddit’s largest shareholders heading into the IPO.

By the tech industry’s standards, Reddit remains extraordinarily small for a company that has been around as long as it has.

Reddit has never profited from its broad reach while piling up cumulative losses of $717 million. That number has swollen from cumulative losses of $467 million in December 2021 when the company first filed papers to go public before aborting that attempt.

In the recent documents filed for its revived IPO, Reddit attributed the losses to a fairly recent focus on finding new ways to boost revenue.

Not long after it was born, Reddit was sold to magazine publisher Conde Nast for $10 million in deal that meant the company didn’t need to run as a standalone business. Even after Conde Nast parent Advance Magazine Publishers spun off Reddit in 2011, the company said in its IPO filing that it didn’t begin to focus on generating revenue until 2018.

Those efforts, mostly centered around selling ads, have helped the social platform increase its annual revenue from $229 million in 2020 to $804 million last year. But the San Francisco-based company also posted combined losses of $436 million from 2020 through 2023.

Reddit outlined a strategy in its filing calling for even more ad sales on a service that it believes companies will be a powerful marketing magnet because so many people search for product recommendations there.

The company also is hoping to bring in more money by licensing access to its content in deals similar to the $60 million that Google recently struck to help train its artificial intelligence models. That ambition, though, faced an almost immediate challenge when the U.S. Federal Trade Commission opened an inquiry into the arrangement.

Since Thursday just marks Reddit’s first day on the public market, Aggarwal stresses that the first key measure of success will boil down to the company’s next earnings call.

“As a public company now they have to report a lot more … in the next earnings release,” she said. “I’m sure the market will watch that carefully.”

Reddit also experienced tumultuous bouts of instability in leadership that may scare off prospective investors. Company co-founders Steve Huffman and Alexis Ohanian — also the husband of tennis superstar Serena Williams — both left Reddit in 2009 while Conde Nast was still in control, only to return years later.

Huffman, 40, is now CEO, but how he got the job serves as a reminder of how messy things can get at Reddit. The change in command occurred in 2015 after Ellen Pao resigned as CEO amid a nasty user backlash to the banning of several communities and the firing of Reddit’s talent director. Even though Ohanian said he was primarily responsible for the firing and the bans, Pao was hit with most of the vitriol.

Although his founder’s letter leading up to this IPO didn’t mention it, Huffman touched upon the company’s past turmoil in another missive included in a December 2021 filing attempt that was subsequently canceled.

“We lived these challenges publicly and have the scars, learnings, and policy updates to prove it,” Huffman wrote in 2021. “Our history influences our future. There will undoubtedly be more challenges to come.”

Верховна Рада ухвалила закон про соціальний захист військових і поліцейських

Документ передбачає забезпечення прав поліцейських на одноразову грошову допомогу в разі втрати працездатності або їхнім рідним – у разі загибелі (смерті)

US Congress Releases $1.1 Trillion Spending Package to Avert Shutdown 

Washington — After days of delay, U.S. congressional leaders unveiled a $1.1 trillion bipartisan spending measure for defense, homeland security and other programs early on Thursday, giving lawmakers less than two days to avert a partial government shutdown.

The Republican-controlled House of Representatives will vote on the sprawling package on Friday, leaving the Democratic-majority Senate only hours to pass the package of six bills that covers about two-thirds of the $1.66 trillion in discretionary government spending for the fiscal year that began on Oct. 1.

“These final six bills represent a bipartisan and bicameral compromise,” the two top Senate negotiators – Patty Murray, a Democrat, and Susan Collins, a Republican – said in a statement.

“They will invest in the American people, build a stronger economy, help keep our communities safe, and strengthen our national security and global leadership.”

The Congressional Budget Office warned that U.S. deficits and debt will grow considerably over the next 30 years, forecasting that the nation’s $34.5 trillion national debt, which currently represents about 99% of GDP, could grow and rise to 166% of GDP by 2054.

Democratic Senate Majority Leader Chuck Schumer said he is “hopeful” Congress can avert a shutdown if Democrats and Republicans in his chamber work together.

The compressed schedule raised the risk of at least a brief partial shutdown after a Friday midnight deadline, unless Schumer can reach agreement with Senate Republicans to expedite the bill.

House Speaker Mike Johnson touted what he called a series of wins for Republicans, from higher spending for U.S. defense and border security to a cutoff of U.S. funding for the main United Nations relief agency that provides humanitarian assistance to Palestinians in Gaza.

“This FY24 appropriations legislation is a serious commitment to strengthening our national defense by moving the Pentagon toward a focus on its core mission,” Johnson said in a statement released along with the text of the legislation.

Democrats said they blocked some Republican cuts and policy measures and touted funds aimed at lowering childcare costs, supporting small businesses and fighting the flow of the opioid fentanyl.

“We defeated outlandish cuts that would have been a gut punch for American families and our economy – and we fought off scores of extreme policies that would have restricted Americans’ fundamental freedoms, hurt consumers while giving giant corporations an unfair advantage, and turned back the clock on historic climate action,” said Murray, the Democratic chair of the Senate Appropriations Committee.

Two weeks ago, Congress narrowly avoided a shutdown that would have affected agricultural, transportation and environmental programs.

The text unveiled on Thursday fills in the details of an agreement in principle between Johnson and Schumer, which Democratic President Joe Biden has pledged to sign into law.

With a slim 219-213 House Republican majority, Johnson will have to rely on Democratic votes to get the spending bill to the Senate.

Many House Republicans are still expected to oppose the legislation, including hardliners who want steeper spending cuts.

Besides the departments of Homeland Security and Defense, the bill would fund agencies including the State Department and the Internal Revenue Service as it girds for its April 15 taxpayer filing deadline.

Even Before Latest Violence, Thousands of Haitians Fled for US

Thousands of Haitians fled their country’s economic and political instability even before the latest outbreak of violence. The first stop for many is South America, where some try to work before heading for the United States. VOA’s Austin Landis met with one man on the Columbia-Panama border preparing to cross the treacherous Darien Gap. Camera: Jorge Calle