GUIDELINE FOR THE ADMINISTRATION OF
THE NATIONAL SCHOLARSHIP & FINANCIAL ASSISTANCE PROGRAM

This Guideline for the administration of the National Scholarship and Financial Assistance Program, hereinafter refers to as the “Guideline”, is established to guide the administration, disbursement and reporting of the National Scholarship & Financial Assistance Program (NSFA) funds that are annually appropriated by the National Congress of the Federated States of Micronesia (CFSM) and the on-going “Sin Tax” Scholarship, as established pursuant to PL 13 – 60, as amended. The Guideline shall be used to guide the processes in selecting and awarding of eligible and highly qualified applicants for “certificate”, “undergraduate”, “graduate” and “post-graduate” levels scholarships and general students’ financial assistance and to maintain and report on the progresses of the NSFA Program.

This Guideline shall be further executed in accordance with applicable laws of the Federated States of Micronesia.

This Guideline is hereby approved and adopted pursuant to the authority vested in the scholarship fund allottee, pursuant to Title 55 of the FSM Code, Section §217.

Guidelines for the Administration of National Scholarship & Financial Assistance Program

I. General

The CFSM annually appropriates out of the national revenue a sum thereof to provide funds for scholarship and financial assistance for qualified students in the Federated States of Micronesia. The National Government further receives foreign assistances for scholarships and students’ financial assistances and/or related short-term and long-term trainings in foreign countries. Upon adoption, this Guideline shall provide the guiding principles and frameworks in the disbursements and reporting of these scholarships and financial assistances as shall be required by the funding sources and/or grantors and applicable laws of the Federated States of Micronesia.

II. Purpose

The purpose of the Guideline is to establish administrative and management requirements on the procedures, disbursements and reporting of the scholarship and financial assistance funds as shall be appropriated by the CFSM and further provided by foreign countries, private, corporate and philanthropic organizations. These financial assistance sources will be used to provide scholarships and financial aids for qualified students who shall be attending and/or currently attending accredited Institutions of Higher Education (IHE) at the certificate, undergraduate, graduate and post-graduate levels, including approved special training or summer programs.

III. Definitions
1) “Board” means the National Scholarship Board.

2) “Full-time student” means a student who is carrying a full-time academic work load in terms of course work or other required activities as determined by the institution.

3) “Good standing” means the eligibility of a student to continue in attendance at the institution where he or she is enrolled as a student in accordance with the institution’s standards and practices.

4) “Institution of higher education” means an educational institution which:

(b) is legally authorized to provide a program of education beyond secondary education;

(c) provides an educational program for which it awards a bachelor’s degree or provides not less than a two-year program which is acceptable for full credit toward such a degree;

(d) is a public or other nonprofit institution; and

(e) is accredited by a recognized accrediting agency or is an institution whose credits are accepted on transfer by not less than three institutions which are so accredited for credit on the same basis as if transferred from an institution so accredited.

IV. Administration

The Administrator of the Post-Secondary Education under the Office of the Secretary, FSM Department of Education, shall by virtues of his/her basic roles and responsibilities, be the officer of the National Scholarship and Financial Assistance Program, as herein established by this Guideline and shall further be responsible for the administration of the said program pursuant to all statutory requirements as herein provided. The Officer shall execute this National Scholarship and Financial Assistance Program, hereinafter refers to as “NSFAP”, in accordance with the decisions and deliberations of the National Scholarship Board, and hereinafter refers to as “Board”, as established by Public Law 19-90.

V. Types of Assistance by Definition

1) Scholarship Awards – Any applicant within a 3.0 to 4.0 Grade Point Average (GPA) for undergraduate and 3.5 to 4.0 GPA for graduate shall be considered and labeled as scholarship applicant.

2) Financial Assistance Awards – Any applicant within a 2.00 to 2.99 GPA for certificate and undergraduate and 3.00 to 3.49 GPA for graduates shall be considered and labeled as financial assistance applicant.

VI. The National Scholarship Board

The Scholarship Board shall be composed of five voting members nominated by the President and confirmed by the CFSM to operate the Scholarship Board. One member shall represent the National Government, and one member each for each of the four states. Three (3) members of the Board shall constitute as a quorum to conduct its official activities.
1. Officers – The Board shall duly elect its officers: Chairperson, Vice-Chairperson and Secretary. (Refer to Appendix A as herein attached for the roles and responsibilities of the Board’s officers.)

2. Terms – The terms for the Board members shall be three (3) years or until replacement has been confirmed.

3. Function – The function of the Board shall include, but not limited to, the following activities:

a) To operate as the sole authority to make post-secondary scholarships, financial aid and grant awards from national appropriations designated for that purpose;

b) To develop detailed guidelines and regulations regarding the applications, evaluations, awards and monitoring process for post-secondary scholarships, financial aid and grant awards from the National Government, these guidelines and regulations shall include, but not be limited to: eligibility requirements, basis of award guidelines, priority and award class guidelines, priority areas of study, timing for applications and financial disbursements;

c) To operate and manage the evaluations, awards and monitoring of scholarships, financial aid and grant awards based on regulations it has developed, to provide for an unbiased, merit based awards system;

d) To plan for the expansion and improvement of the services and awards provided through the Scholarship Board;

e) To coordinate with the State and Municipal Governments regarding awards of post-secondary scholarships, financial aid and grants;

f) To promote the education and training of students in post-secondary programs; and

g) To ensure that proper and complete books of accounts reflecting all expenses, liabilities and post-secondary awards for scholarships, financial aid and grants are prepared.

VII. Custodian of Scholarship Funds

The Secretary of the Department of Finance and Administration shall be the custodian of all scholarship and financial assistance funds.

VIII. Eligibility Criteria

To be eligible for a national scholarship and financial assistance award as shall be appropriated by the CFSM under the national revenue and further provided by the “Sin-Tax” provisions, an applicant must:

(a) Be a citizen of the Federated States of Micronesia;

(b) Be a high school graduate or possess a General Education Diploma (GED);

(c) Have been accepted or currently enrolled as a certificate, undergraduate, graduate, or post-graduate level studies in an accredited institute of higher education;

(d) Be in good standing at such institution of attendance if currently enrolled and has a cumulative GPA of a minimum of 2.0 for certificate and undergraduates and a cumulative GPA of a minimum of 3.0 for graduates and postgraduates or a GPA acceptable by the institution in attendance;

(e) Show proof of admission or attendance at such institution and as full-time student or based on the credits below:

IX. Fields of Study

The National Scholarship Board establishes the fields of study for the National Scholarship and Financial Assistance Program and the following fields shall constitute the priority areas as herein provided in Table A: Priority Areas:

Table A
Tier 1:

Tier 2:

Tier 3:

Table B:  Specialized & Career Related Areas

Certificate level of study for the following specialized and career fields may be considered for awards if all priority applications have been considered and awarded and funds are still available within the awarding fiscal year.

XI. Amount of Awards

The total amount of scholarship and financial assistance funds awarded per fiscal year shall not exceed the amount available in the national scholarship and financial assistance funds account as shall be appropriated for the fiscal year period, provided, each fiscal year awards shall include the continuation of scholarships and financial assistance for already selected award recipients. The National Board of Scholarship shall award eligible applicants based on the tiers and amounts available. Tier 1 applicants shall receive fifty percent (50%) of the amounts available; tier 2 applicants shall receive thirty percent (30%) of the amounts available; tier 3 applicants shall receive twenty percent (15%) of the amounts available and Table B applicants shall receive five percent of the amounts available.

Tire 1: