Fall semester is approaching and many scholarship recipients are still waiting for their checks.
The senators, Finance Secretary Larrisa Larson, CNMI Scholarship Office Chairwoman Carol Hosono and Administrator Merissa Rasa explored the idea of a loan program for students.
Of the 823 approved scholarship applications, 472 have yet to get their checks, Rasa said.
She said the scholarship office needs $650,000 “to close out this term” but they only receive $170,000 each month for awards.
Senate President Paul A. Manglona, Ind.-Rota, said the students should be allowed to borrow from the banks and as soon as their scholarship checks are released they can pay the loan.
Manglona said the banks should charge students a very minimal interest rate.
“We hope this will alleviate the parents and the students’ financial needs instead of making them wait for six months,” he added.
Larson said Finance is looking for any solution that can help improve the government’s cash flow situation.
“We don’t have funds that are readily available,” she added.
Hosono said the student loan program is a good idea which she will discuss with other members of the scholarship board.
Senate Floor Leader Pete P. Reyes, R-Saipan, said loan program, if it becomes available, will not be mandatory. Students will still have the option to wait for their scholarship checks, he added.
“The only catch here is that it is going to be treated as a loan and the student may see a reduction in their scholarship money so they can pay for interest. But that’s a choice the student will have to make,” he said.
Senate Vice President Jude U. Hofschneider, R-Tinian, said the loan program aims to address the possible delay in the release of checks.
Hosono said the scholarship board continues to be “proactive” in addressing its financial challenges.
She said they are looking into the possibility of reducing the number of people receiving scholarship money.
The available funds can also be spread out to as many students as possible, she added.
But all this can only be done through legislation, Hosono said.
They want to increase the awards, she added, but “we cannot because we don’t have enough funds.”
Manglona said it is “frustrating” to learn that almost 400 students got their checks while hundreds have not.
“So it’s a fairness issue also. For me, if the students meet the deadline, they should all get the check on time,” he said. He did not say where the cash-strapped government could get the funding needed for scholarships.
