SHEFA collects nearly $38K from scholarship loans

The Saipan Higher Education Financial Assistance has been able to collect a significant amount from loans made by scholars in the last 10 years.

Merissa S. Rasa, administrator for SHEFA, disclosed in her 2014 Annual Report that collections from loan repayment is currently at $37,969.52, which covers the period from 2004 through 2014.

However, the report indicates that SHEFA began collecting loan repayments only in 2006 and initially collected only $553.84. A year after, the collection grew to $3,525.71. From 2008 through 2010, SHEFA showed an average annual flat rate collection ranging from $2,000 to $2,500 per year.

It was in 2011 when the program recorded the highest loan repayment of $5,745.36 from defaulted scholars. In 2012, the office was able to collect a meager $666 until 2013, when repayment jumped to $5,745.36, a .01-cent difference from 2011.

SHEFA rules and policy require that, within three months after successfully completing one’s studies or 30 days after termination or non-enrollment from the institution of record, whichever occurs first, the recipient of SHEFA financial assistance must return to Saipan for employment and/or to provide services in the private or public sector on Saipan.

If a former recipient decides to remain and work abroad three months after completion or termination of his or her college studies, the grant assistance becomes a loan that must be repaid. The debtor has to pay the entire debt with equal monthly payments within six years of default.

Despite the collections being meager amounts, its awards per academic year range in the millions.

Rasa disclosed in her report that from 2004 through 2014, the government invested a total of $24.63 million to help local students pursue degrees here and abroad.

Total awards provided for the nine-year period is broken down as follows: 2004, $170,600; 2005, $1.925 million; 2006, $2.782 million; 2007, $2.302 million; 2008, $3.026 million; 2009, $3.078 million; 2010, $3.654 million; 2011, $2.810 million; 2012, $1.540 million; 2013, $1.651 million; and 2014 $1.691 million.

Only students from Saipan and the Northern Islands are eligible for SHEFA assistance. Funding for this program is sourced from poker and pachinko machines’ local license fees.