House divided on new student aid bill

Barely 10 months after capping government educational assistance at $15,000, lawmakers are proposing a new scholarship program that will grant up to $20,000 in financial aid to exceptional high school students for college here or in the U.S. mainland.

But the House of Representatives was divided whether to grant such an amount in light of the financial difficulties confronting the Commonwealth which have reduced the budget set aside for scholarship.

Because of the disagreement, Senate Bill 11-67, sponsored by Senate President Paul A. Manglona and passed in July 1998 by the upper house, was referred to the House Committee on Health, Education and Welfare for further review.

House Speaker Diego T. Benavente cautioned members against rushing the passage of the measure, saying the Legislature cannot just change policies without weighing impact on government financial state.

“We know that we don’t have the money, we have to act responsibly,” he said at a session yesterday. “We have to control [our spending].”

Inconsistent

Rep. Malua T. Peter questioned the change in the policy as it showed inconsistency in a span of just a few months when lawmakers approved the cut in scholarship amount.

Majority Floor Leader Ana S. Teregeyo, on the other hand, expressed concern that while the amount is going to be raised, other government scholars hit by the scholarship cap implemented earlier this year have yet to receive additional assistance to offset the shortfall.

Lawmakers last February approved the $15,000 ceiling in scholarship grants per year for each student following request from the Tenorio administration to slash the amount due to the declining government revenues.

Local scholars, especially those studying in expensive universities in the mainland, used to receive up to $40,000 in CNMI assistance, covering tuition, books, stipend, room and board, other school fees and costs as well as transportation, up to five consecutive years.

That law was intended to distribute meager resources equitably as it came in the wake of controversy over the scholarship program as Northern Marianas College students protested against what they claimed as special preference for off-island students.

Complaints

At least 30 students are recipients of the grants under the Post-secondary Education Scholarship of 1990. According to legislators, parents had complained after the amount was cut as they were not given enough time to seek other means to finance their children’s college education.

Rep. David M. Apatang stressed that the bill must include provisions to reimburse their extra expenses resulting from the reduction, while Vice Speaker Jesus T. Attao sought a grandfather clause so that those receiving the former grants will be spared from the cut.

But Rep. Heinz S. Hofschneider said SB 11-67 will not be applied retroactively as he noted that the $15,000 cap is not fair to those who have been awarded the original amount.

He also disclosed that Mike Sablan, the governor’s chief financial advisor, has assured that there are sufficient funds to carry out the proposed program and that the $20,000 will meet the minimum financial requirements of the students.

Abuse

Earlier this year, finance officials urged the legislature to set a ceiling on the scholarship grants to prevent abuse by students who charged to the government expenditures not directly related to their schooling. This practice had only strained the local coffers.

The government set aside about $2.3 million for its scholarship program for FY 2000, down by about half from previous allocation of over $4 million.

Under Mr. Manglona’s proposal, 12 students will be awarded the $20,000 grant who must have the highest Scholastic Achievement Test or SAT scores as well as cumulative Grade Point Average, among other requirements.

A GPA of 3.0 must also be met to maintain the award which will be made available for up to five years subject to the academic performance of the recipient.