Changes in CNMI scholarship awards in the offing

The newly appointed administrator of the CNMI Scholarship Office said that changes in the office’s existing policies are in the offing due to the government’s dwindling financial state.

Like the Saipan Higher Education Financial Assistance program, the Scholarship Office will be implementing cuts in its grant awards to ensure the program’s continuity, said Jackie Che.

“It is now obvious that as our government continues to grapple with crippling budget shortfalls and the cost of education continues to rise, there will be fewer funds to subsidize tuition costs for more students who expect our financial aid. At this point, CNMI Scholarship is being re-evaluated to cope with the changing economic realities in such a way that our students’ prospects…are preserved,” Che told Saipan Tribune.

The NMI Scholarship Office functions under the Office of the Governor. Its primary mission is to provide financial assistance to eligible students pursuing college.

Unlike SHEFA, which is under the Saipan Mayor’s Office and is funded by revenue collected from poker machines and licenses, the Scholarship Office gets direct government appropriation. From a $4 million budget in fiscal year 2006, its allocation has declined to just $2 million in fiscal year 2011.

Saipan Tribune learned that almost half of that $2 million goes to the Honors Scholarship Program, whose scholars receive up to $15,000 a year. The rest goes to recipients of the Educational Assistance Program, whose beneficiaries receive $1,200 each.

“There is a critical need to weigh the program in terms of the capability of our government if it will continue to be a value asset to our students. Our board is currently developing a new comprehensive plan to address these changes and to ensure that scholarships are used efficiently and effectively,” Che said.

She pointed out, though, that these changes may take effect in the next semester.

“No final changes to our program have been made, however, until approved—and that won’t occur until the end of this year [just in time for the next spring term],” she added.

It was earlier reported that since the program’s inception, it has recorded over $4 million in collectibles from default scholars, of which only about 20 percent has been repaid. Default scholars are those students who failed to fulfill their agreement with the scholarship office such as who did not complete their studies and those who did not come back to work on island.