Scholarship Office seeks solution to collection woes

The CNMI Scholarship Office is seeking government assistance to establish within the agency an organized collection system that would recover an estimated $2 million worth of approved student loans dating back to school years 1995 through 1998.

Administrator Hilaria K. Santos disclosed that in the years the student loan program was made available to CNMI students, not a single cent has been collected so far.

As hard as it is to locate students with pending financial liabilities to the Scholarship Office, Ms. Santos cited it is equally a challenge to initiate collection efforts due to absence of additional staff that would focus on the task.

The three-member agency as it is already takes on various roles ranging from scholarship awarding, student tracking, and distribution of grants to accommodate another job description.

“It’s not that we don’t want to collect. But we need another individual who will specifically concentrate on the job. But I understand that the government has been tight with the budget due to austerity,” she said.

The administrator also cited that it would take an immense amount of time to study and create and effective collection tool.

She explained that in order for the agency to determine how much the students owe, they would have to back track on past records and draw up a systematized mode of payment.

“We have so many things to iron out. We have to establish the type of payment and where they are supposed to pay either at the finance or the treasury,” she added.

Ms. Santos admitted the task of setting up a comprehensive collection system is not going to be easy.

Back in 1986 when the Scholarship Office was still under the Northern Marianas College, an attempt was made to start a loan collection project.

“I remember this person who was assigned to do it and I saw him work all day even up to night time. He even came in during Saturdays. And after a couple of months, he was so worn out because not only did he try to sort out the paperwork, he also went out to collect from the students,” said Ms. Santos.

“The search is really going to be difficult. We have to be very careful about our approach,” she added.

Under the student loan agreement, recipients are supposed to pay in equal monthly installation one year after the date of actual termination of formal studies, and every month thereafter until the total principal and interest is fully paid.