Bill revives financial aid to students

A new financial assistance scheme for local students pursuing higher education is under review in the House of Representatives again barely two years after the government cut funding for the existing program.

Rep. Brigida Ichihara, chair of the Education Committee, has introduced a comprehensive measure that will set out the policy on various government-funded educational grants, including loans and aid.

Under House Bill 12-140, an assured funding of at least $3 million every year and a new scholarship office administered by the Northern Marianas College will be implemented to provide financial assistance to local students attending college here and elsewhere.

The legislation is currently being reviewed by the Education Committee. Another proposal overhauling the scholarship program is also being studied by the Senate.

The House measure, however, is seeking major policy changes in the existing program, such as empowering NMC’s Board of Regents to formulate rules and regulations for the proposed scheme.

At least $3 million will also be earmarked by the government each year to a revolving account called the Post-secondary Educational Financial Assistance Fund which will strictly be used for the needs of the students.

This account will then be deposited into a designated bank or nationally recognized education lending institution for disbursement to the students receiving scholarship, grant-in-aid or loans from the CNMI government.

According to initial findings by the Legislature, students have not been provided with adequate academic guidance — a situation that has led to alarming attrition rate during freshmen and sophomore years.

Many of those who eventually obtain a degree also have chosen not to return to the islands despite the government’s full financial support.

Likewise, the present system has shown to be problematic for students who don’t receive the money on time since the fiscal year and the academic year do not coincide.

Ms. Ichihara’s proposal will specifically provide that funds be released by July 31 before the fall semester begin to ensure that money for tuition and other requirements will reach the students by enrollment period.

Two-way system

Because the present program has been criticized as ineffective in the absence of stringent conditions, the bill will spell out requirements that a student beneficiary must follow.

For recipients of the loan, repayment will begin 12 months after leaving school and for each year of working in the CNMI will mean 15 percent of debt forgiveness, up to a maximum of 75 percent.

Students with scholarship grants will be required to work in either private or public sector in the Commonwealth for a period not less than five years, except for those pursuing post-graduate degrees.

Amount of loans may not exceed $60,000 for undergraduate studies, or a total of $120,000 for both college and graduate degrees.

For direct student loan program, a maximum of $10,000 per year will be given to undergraduate, while $20,000 for graduate students.

For those who fail to return to the CNMI and fulfill their obligations, the full amount of the loan will be paid back within the last school attendance date on a prorated monthly basis, according to the measure.

At present, about 1,100 students are receiving the three financial aid given by the CNMI, such as the Educational Assistance Program, Teacher’s Scholarships and the academic scholars under Public Law 7-32.

But due to the serious financial difficulties confronting the Commonwealth, lawmakers and administration officials have clashed in recent months over implementation of the policy as both sides argued on how much money should be appropriated for scholars.

The Scholarship’s Office in August 1999 cut the amount of the grants and eliminated EAP for part-time NMC students in efforts to avoid huge deficit and spread the meager budget to all the recipients.