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Jobless ex-govt scholars could get relief
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Posted on Jul 26 2008
Jobless former scholars of the CNMI government will get relief from paying their student loans if Gov. Benigno R. Fitial signs into law a bill passed by the Legislature.
The Senate on Friday agreed to amendments made by the House of Representatives on a bill holding off college loan payments for government scholars who are unable to find jobs because there are no government jobs available or because positions are being filled by foreign workers.
The bill, sponsored by Senate President Pete P. Reyes, is now headed to the governor for his signature.
If the bill passes into law, recipients of postsecondary education financial aid from the CNMI would be granted forbearance in the collection of their debts if they are unable to find jobs in the public or private sector due to unavailability of government jobs, hiring freezes, reductions in force, or because positions are being filled by foreign national workers, for as long as the recipient is unemployed and actively seeking employment.
The bill also would grant forbearance to any off-island recipient during the first two years after graduation if he cannot find a job in his field of study. No interest would accrue during the period of forbearance.
Further, the bill, as amended by the House and now approved by the Senate, would consider government scholars who have served in the military as having satisfied the requirement to return and work in the CNMI.
The CNMI Scholarship Office has opposed the measure, saying it unnecessary and unfair to other scholars who repaid their students loans. Scholarship administrator Merissa Rasa has noted that there is already a process in place for granting forbearance to scholarship or loan recipients who are unable to meet their obligations to the CNMI due to some hardship.
Rasa has also said the Scholarship Office is already struggling to hold scholarship and loan recipients accountable for their obligations to return to the CNMI to work and or pay back what they owed. The bill, she added, would weaken the scholarship program even more if signed into law.
Former government scholars now owe the Scholarship Office about $4 million.
