Non-responsive scholars to be referred to AGO

Many defaulted scholars who owe the government significant amount of monies may soon be prosecuted for their unpaid obligations to the CNMI Scholarship Office after its administrator bared plans to refer non-responsive accounts to the Office of Attorney General.

Scholarship administrator Rose Pangelinan disclosed this to Saipan Tribune, hinting that legal action will be charged against defaulted scholars who continue to violate the agreement they earlier signed with the government.

Based on the records of the scholarship office, only $55,367 has been collected in fiscal year 2013 from defaulted scholars.

Pangelinan revealed that one of her goals as administrator is to increase the collection amount this fiscal year.

“All agreements made through the memorandum of agreements between CNMI Scholarship Office and recipients are legally binding. If a recipient is in default of the conditions of their MOA, he/she is required to repay back the defaulted total amount received,” she told Saipan Tribune.

She encourages all previous recipients to comply and submit an official transcript, copy of their diploma (if they graduated), employment verification. and fill out a previous recipient or graduate form with the office.

According to the administrator, her office is currently updating all accounts especially the Honor Scholarship accounts for those who have defaulted and are in arrears. She admitted that many are non-responsive to date.

“They have not responded to requests to submit necessary documents for compliance purposes and/or demands for payment on some accounts. These accounts will eventually be forwarded to the Attorney General’s Office for legal proceedings,” she warned.

Of the over 100 beneficiaries of the CNMI Scholarship Office who potentially graduated last school year, only a few have actually notified the government about the completion of their studies, violating the agreement they signed with the CNMI Scholarship Office.

Pangelinan earlier disclosed that only less than 20 scholars who graduated in May and June have complied with the memorandum of agreement that gives these beneficiaries 90 days to notify the government about their graduation.

CNMI scholars, upon receiving their checks, sign a memorandum of agreement that mandates the scholar’s responsibility to notify the CNMI Scholarship Office within 90 days once they graduate or fail to enroll.

Saipan Tribune learned that if they fail to do this, these scholars will be in default and all the monies they received from the scholarship program will become a loan that they must pay back to the government.

Under the scholarship policy, beneficiaries are also required to return to the CNMI and work here after college graduation. This has not been the case for many students who received large amounts of financial aid from the government.

It was also learned that if a defaulted scholar has no job or can’t find one to repay the “loan,” a deferment can be worked out with the Scholarship Office if they wish to.

The Scholarship Office has two program offerings: the Educational Assistance Program and Honors Scholarship Program.

Each year, a potential number of EAP graduates are expected to return and work in the CNMI as a form of “repayment” for the financial aid they received for their college studies.

The scholarship program has been criticized in the past as a “very generous” initiative that is being abused by many scholars. At present, the CNMI government is struggling to maintain this financial assistance program as a result of declining revenues and collection.

In 2011, it was learned that these default scholars owe the government some $4 million, an amount that continues to increase.