Senate wants comprehensive scholarship bill

The Senate will draw up comprehensive legislation that sets out the government policy on financial aid and grants to students seeking higher education in an effort to maximize dwindling local resources.

Five bills on scholarship, grants and educational assistance programs of the government, including four from Senate President Paul A. Manglona, are pending before the Committee on Health, Education and Welfare. They were tackled yesterday at a public hearing.

Committee chair Sen. Richardo S. Atalig said the panel is likely to come up with one comprehensive measure to incorporate all the proposals as well as recommendations from other government agencies.

“People have come up to me and asked me to put the bills together. The committee will look into that to come up with one comprehensive bill,” he told panelists after the two-part hearing.

Several government officials expressed support for the plan to revamp the current scholarship program which has suffered in recent years due to the financial difficulties confronting the CNMI.

Although lawmakers have insisted on placing priority to education of the youth on the islands, scholarship and grants given to students have not been spared from austerity measures implemented by the Tenorio administration.

One of bills, in fact, will seek waiver from the $15,000 cap per year imposed on government scholar in 1999 for students who are already receiving these grants from the CNMI under an existing scholarship program that did not limit the amount.

But Finance Sec. Lucy DLG. Nielsen warned such action would mean deficit spending since the added cost was not appropriated under the FY 2000 continuing budget level.

“Our government no longer has the resources to cover all types of expenses. We must point out that not setting an amount limit… is not conducive to sound planning,” she told the committee.

Mr. Atalig, however, vowed to include provision in the forthcoming legislation that will assure annual funding for the educational assistance of at least $3 million without threats of being cut in case of budget shortfall.

“The funds should stay there without being cut even when we have the austerity measures,” the HEW chair said.

To address the funding dilemma, the administration has been favoring a student loan guarantee program that will reduce government subsidy while providing as much financial help to students.

Dan Nielsen, governor’s special assistant on education issues, underscored the significance of such proposal contained in two of the bills during the hearing.

Under the scheme, banks will extend the loans of as much as $60,000 for a four-year bachelor’s degree to students with the government as guarantor.

If a recipient returns to work in the CNMI, he or she can be given up to 100 percent forgiveness from paying the loan, said Mr. Nielsen.

“By putting our money in the bank, we will have actually doubled our investments without doubling our expenditures,” he told the committee.

HEW member Senate Floor Leader Pete P. Reyes, on the other hand, said he will seek a system in which returning students after graduating from college will be given better chances at finding employment on the islands.

“We need to establish an agency or allow the Scholarship’s Office to accommodate the needs of our graduates,” he said.