DOE retains NMC’s reimbursement status

The U.S. Department of Education has retained the Northern Marianas College under Pell Grant reimbursement status, although it simplified the process for submitting student applications for scholarship.

“[E]ffective immediately, [NMC’s] Title IV funding status would be revised from Cash Monitoring III, which is the most restrictive method of reimbursement, to Cash Monitoring II. This revision was based on indication that the institution is making progress in its compliance efforts,” Linda Henderson of the USDE California office said in a March 8 letter to NMC.

With the status revision, NMC no longer has to submit to the federal office individual files for each student for whom it claims reimbursement, Henderson said.

However, the college will still need to continue submitting complete student files to its consultant, R. Gonzales Management Inc. The firm will provide NMC the “financial aid expert’s certification statement,” one of the requirements for submitting reimbursement requests.

In view of this, the NMC Board of Regents authorized management yesterday to request the NMC Foundation for a $35,000 supplemental budget. The funds will be used to extend the NMC’s contract with the RGM consulting firm.

Henderson further stated that NMC will remain under the revised status “until such time that it is fully successful in administrating the student files in accordance with federal regulations.”

Specifically, the college must be able to properly complete student packets without the aid of a consultant or the USDE itself. NMC must also be able to timely disburse and reconcile all federal funding. Lastly, the college must be able to demonstrate continuous compliance in all areas affecting its administration of Pell Grant programs by submitting non-deficient annual compliance audits and accreditation reports, among other things.

“In tandem with this, financial aid office staff members of the institution are strongly urged to avail themselves of scheduled [USDE] training, as well as online services provided,” Henderson said.

The federal government placed NMC on Pell reimbursement status, as opposed to advance status, due to the college’s failure to submit audits on time in the last four years.

In an earlier interview, NMC finance director Raaj Kurapati said about half of NMC’s total enrollment and 75 percent of the college’s resident student population are receiving help through the Pell Grant.

Most of the Pell recipients are getting the maximum federal scholarship of $4,050 every year. In total, the college receives an average $1.5 million in Pell Grant awards annually, Kurapati said.