New financial aid entices students to return to NMI after graduation

The proposed financial aid program for local college students will not only save government resources several millions of dollars, it is also focused at eventually reducing the commonwealth’s heavy dependence on foreign labor.

Called the Guaranteed Student Loan Act of 1999, the proposed legislation encourages grantees to return to the Northern Marianas after completion of their course to pump up local labor participation in the private sector.

At present, there are more than 20,000 Filipino workers, close to 17,000 Chinese and some 1,300 Koreans in the CNMI.

According to a survey conducted by the commerce department’s Central Statistics Division, Chamorros are more inclined in the public administration services with 34.9 percent employment rate, while 22 percent are in the professional sector, 11.6 percent are in the retail industry and 6.6 are engaged in the transportation business.

Carolinians seemed more interested in the professional services, registering 28.1 percent from its total labor force. The group also registered 24.6 percent employment in the public administration sector.

The proposal, drafted by the Tenorio Administration, offers grantees who will return to and work in the CNMI a $3,000 reduction in annual payment of their educational loans, translated into at least 75 percent loan forgiveness.

Scholarship Office Administrator Hilaria Santos explained more students are bound to benefit from the Guaranteed Loan Program since it assures the availability of funds for both full-time and part-time students.

Existing scholarship programs are extended only to college students who have completed 12 credits and maintained excellent academic performance in the preceding semester.

Under the proposed program, aimed to address constraints on the depleting public coffers, both full-time and part-time students who are able to maintain an average grade of 2.0 during the previous semester will qualify for the loan.

Educational loans of students who are receiving government assistance under the Paul Manglona and Teachers’ Scholarship programs during the time the legislation becomes a law will be written off.

The proposed legislation also offers up to $60,000 in total educational loans for undergraduate studies and another $80,000 for post-graduate courses.

Repayment of the loan will not exceed 15 years from the expected date of completion of the actual completion of the course of studies, if shorter than the expected date, for which the loan was approved. The interest charged for the loan will not exceed 7.5 percent per annum.