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TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN

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Chapter 20.1. TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) SUBCHAPTER 165-20.1 SAIPAN HIGHER EDUCATION FINANCIAL ASSISTANCE PROGRAM RULES AND REGULATIONS Part 001 General Provisions § 165-20.1-125 Application Policy § 165-20.1-001 Statutory & Procedure; Required Authority Documents/Deadlines § 165-20.1-005 Mission of § 165-20.1-130 Truth-in-lending SHEFA Policy and Confidentiality § 165-20.1-010 Priority for § 165-20.1-135 Appeal Policy & Financial Assistance Procedure § 165-20.1-015 Funding Source & Budget Authority Part 200 Miscellaneous § 165-20.1-020 Office of the Provisions Mayor of Saipan § 165-20.1-201 Availability of § 165-20.1-025 Saipan Higher Supplementary Financial Assistance; Education Financial Assistance Board Effective Date (SHEFA) § 165-20.1-205 Promissory Note/Memorandum of Agreement Form; Part 100 SHEFA Program Repayment Term Requirements § 165-20.1-210 Career Counseling § 165-20.1-101 Classification of and Guidance & College Life Orientation Recipients § 165-20.1-215 Notification to § 165-20.1-105 Types of Financial SHEFA Board Assistance § 165-20.1-220 SHEFA § 165-20.1-110 Qualification Application Form; Terms Requirements § 165-20.1-225 Welcome Home; § 165-20.1-115 Eligibility for Your Expected Return to Saipan SHEFA Fund Financial Assistance § 165-20.1-230 Trade/Vocational § 165-20.1-120 Conditions for School Finance Assistance Continuing Assistance Subchapter Authority: 10 CMC §§ 3921-3928. Subchapter History: Amdts Adopted 43 Com. Reg. 47931 (Dec. 28, 2021); Amdts Proposed 43 Com. Reg. 47594 (Sept. 28, 2021); Amdts Adopted 39 Com. Reg. 40220 (Oct. 28, 2017); Amdts Proposed 39 Com. Reg. 39872 (Aug. 28, 2017); Amdts Adopted 35 Com. Reg. 34583 (Nov. 28, 2013); Amdts Proposed 35 Com. Reg. 33795 (July 28, 2013); Amdts Adopted 33 Com. Reg. 31916 (Sept. 26, 2011); Amdts Proposed 33 Com. Reg. 31761 (July 22, 2011); Amdts Adopted 30 Com. Reg. 29099 (Dec. 22, 2008); Amdts Proposed 30 Com. Reg. 28737 (Sept. 25, 2008); Amdts Adopted 29 Com. Reg. 26516 (May 16, 2007); Amdts Proposed 28 Com. Reg. 26376 (Dec. 29, 2006); Amdts Adopted 28 Com. Reg. 25758 (May 19, 2006); Amdts Proposed 27 Com. Reg. 25248 (Nov. 25, 2005); Amdts Adopted 28 Com. Reg. 25622 (Apr. 17, 2006); Amdts Proposed 27 Com. Reg. 24512 (May 18, 2005); Amdts Emergency and Proposed 27 Com. Reg. 24135 (May 18, 2005) (effective for 120 days from May 3, 2005);** Amdts Emergency and Proposed 26 Com. Reg. 23081* (Nov. 30, 2004) (effective for 120 days from Nov. 24, 2004); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). *Due to a pagination error, page numbers 22819 through 23098 repeat in the 2004 Commonwealth Registers. © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 1 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) **As of December 2005, notices of permanent adoption for the November 2004, May 2005 and November 2005 amendments had not been published. Commission Comment: 1 CMC § 5101 creates offices of the mayors within the Commonwealth government, composed of the duly-elected mayors of Saipan, Rota, Tinian and Aguiguan and the Northern Islands. The mayors are authorized to promulgate regulations on local matters as provided by law. See 1 CMC § 5106(e). Saipan Local Law 13-21 (effective Feb. 2, 2004), the “Saipan Higher Education Financial Assistance Act of 2003,” is codified at 10 CMC §§ 3921-3928. Saipan Local Law 14-13 (effective Oct. 29, 2004) amends certain provisions of SLL 13-21. 10 CMC § 3922, as amended by SLL 14-13 § 2(a), creates the Saipan Higher Education Financial Assistance Board within the Office of the Mayor of Saipan. The Board is authorized to administer the higher education financial assistance program for eligible Saipan residents and to prescribe reasonably necessary rules and regulations to carry out the intent of the act. 10 CMC § 3924(n). Part 001 - General Provisions § 165-20.1-001 Statutory Authority The Saipan Higher Education Financial Assistance Act of 2003 was signed into law on February 3, 2004, as Saipan Local Law (SLL) 13-21 [10 CMC §§ 3921-3928], which established the Saipan Higher Education Financial Assistance for the Municipality of Saipan in the Office of the Mayor of Saipan for administrative purposes, and to be administered by the Board of Saipan Higher Education Financial Assistance, hereinafter referred to SHEFA. History: Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). § 165-20.1-005 Mission of SHEFA The mission of the Saipan Higher Education Financial Assistance (SHEFA) under the Municipality of Saipan, Office of the Mayor is to expand educational opportunities and provide financial assistance to qualified residents of Saipan (inclusive of the Northern Islands) for the betterment of our workforce. Modified, 1 CMC § 3806(g). History: Amdts Adopted 39 Com Reg 40220 (Oct. 28, 2017); Amdts Proposed 39 Com. Reg. 39872 (Aug. 28, 2017); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). § 165-20.1-010 Priority for Financial Assistance Qualified residents of the Municipality of Saipan who have been accepted or enrolled in any US accredited institution of higher education and meet all requirements as new or returning student are ranked in the order of priority to receive supplementary financial assistance as follows. (a) Undergraduate level in the identified priority fields of study. (b) Graduate level in the identified priority of fields of study. © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 2 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) (c) Advanced degree level in the identified priority of fields of study. (d) All other residents of Saipan students who qualify as new or returning students. Modified, 1 CMC § 3806(f), (g). History: Amdts Adopted 39 Com Reg 40220 (Oct. 28, 2017); Amdts Proposed 39 Com. Reg. 39872 (Aug. 28, 2017); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). § 165-20.1-015 Funding Source & Budget Authority Pursuant to Saipan Local Law 13-21, section 5 on page four of the Act [10 CMC § 3925], the funding for this program is sourced from fees collected from the local license fees for poker and pachinko machines under Saipan Local Law 13-8, as continuously appropriated by SLL 13-21. Other funding sources authorized by this Act in section 5(d) on page three [10 CMC § 3924(d)] is to receive and accept from any individual, association or corporation, gifts, grants and donations of money for the purpose of providing higher education financial assistance to be established in a separate special account by the Secretary of Finance to implement the purposes of the Act. Modified, 1 CMC § 3806(e), (f). History: Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). § 165-20.1-020 Office of the Mayor of Saipan The Saipan Higher Education Financial Assistance is established by SLL 13-21 [10 CMC §§ 3921-3928] in the Office of the Mayor of Saipan, and vested the Mayor of Saipan with the authority to appoint members of the board therein, subject to confirmation by the Saipan and Northern Islands Legislative Delegation (SNILD). In addition, the Office of the Mayor of Saipan is required by law to provide the board with administrative, personnel and logistical support subject to the limits of resource availability. History: Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). § 165-20.1-025 Saipan Higher Education Financial Assistance Board (SHEFA) The SHEFA board is established pursuant to SLL 13-21 [10 CMC §§ 3921-3928] whose members are appointed by the Mayor of Saipan subject to confirmation by the Saipan and Northern Islands Legislative Delegation. The Mayor may remove any member of the board on account of gross neglect of duty, conviction of a felony, or mental or physical incapacity. The duties and power of the board are specifically delineated in section 5 and section 8 of this Act. Modified, 1 CMC § 3806(f). History: Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 3 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) Part 100 - SHEFA Program Requirements § 165-20.1-101 Classification of Recipients SHEFA recognizes three major types of academic degree programs, namely: (i) undergraduate degree (associate degree and bachelor’s degree); (ii) graduate degree (Master’s degree); and (iii) advanced degree (degrees higher than a Master’s degree, e.g., J.D., M.D., PH.D., ED.D., etc.). In addition SHEFA also recognized skilled trade or vocational certificate programs. Level of Education: (a) Undergraduate degree (1) Associate’s degree – an undergraduate degree program but less than a baccalaureate degree. (2) Bachelor’s degree – a four or more year undergraduate degree program. (b) Graduate degree – a degree program beyond a baccalaureate level degree (Master’s degree). (c) Advanced degree – a degree program higher than a Master’s degree program (J.D., M.D., PH.D., ED.D., etc.). (d) Trade/Vocational certificates: a skilled trade or occupational certificate program, requiring less than two years for completion. Modified, 1 CMC § 3806(f), (g). History: Amdts Adopted 39 Com Reg 40220 (Oct. 28, 2017); Amdts Proposed 39 Com. Reg. 39872 (Aug. 28, 2017); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). § 165-20.1-105 Types of Financial Assistance (a) Grant-in-aid is a type of financial assistance available to a student from Saipan pursuing postsecondary education in U.S. accredited colleges or universities, trade certification at the Northern Marianas Trades Institute or recognized trade institution approved by the SHEFA Board. If a grant recipient does not return to Saipan after completion of his or her studies, the grant automatically becomes a loan and the grant recipient must repay the SHEFA fund plus interest in accordance with the terms and conditions of attached promissory note/memorandum of agreement. (b) Scholarship is a type of financial assistance that is available to a student from Saipan pursuing post-secondary education based on financial need, academic achievement and other established criteria. A second type of assistance under the scholarship program is one in which a student pursues a field of study that has been identified by SHEFA as a priority field of study† for the island of Saipan, and having © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 4 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) met other established criteria. The priority field of study award is granted only to Junior college level students and higher. The third type of scholarship is based on academic performance at the end of every semester or quarter, called the merit incentive award. Applicants in their first term of college are not eligible to receive the merit incentive award. Students taking remedial courses or developmental courses in fulfillment of a full-time status are not eligible for the merit incentive award. The fourth type of scholarship is a career prep scholar credit voucher valued at $200 per voucher for a maximum of two vouchers per recipient. This voucher is for use by the recipient in obtaining career guidance and counseling or in participating in career or job fairs or any other type of training in career planning and preparation. The voucher is non-cash, and will be used toward the cancellation of any loan(s) granted to the recipient by SHEFA. Scholarship recipients must work on Saipan either in the private or public sector for as long a period as the duration of the scholarship. If a scholarship recipient does not return to Saipan after completion of his or her studies, the scholarship automatically becomes a loan and the recipient must repay the SHEFA fund plus interest in accordance with the terms and conditions of the attached promissory note/memorandum of agreement. (c)(1) Student loan is a type of financial assistance divided into three components. One is based on financial need on criteria established by the SHEFA board. Loan on demand or demand loan is the second type of loan based upon the time of submission, receipt and acceptance of application to SHEFA. The third and final type of assistance under this loan program is referred to as merit loan. A merit loan is strictly to enable a resident from Saipan enrolled in any accredited U.S. institutions of higher education to “challenge” up to two courses on campus in order to: (i) Accelerate degree/program completion, or (ii) Fulfill a graduation requirement. (2) These challenges must be taken on campus only, unless otherwise authorized and approved first in writing by SHEFA. If a loan recipient does not return to Saipan after completion of his/her studies, he/she must repay the SHEFA fund plus interest in accordance with the terms and conditions of the attached promissory note/memorandum of agreement. (d) All recipients of any SHEFA loan pursuant to subsection (c) made available to a student from Saipan in pursuit of post-secondary education at any U.S. accredited institution of higher education shall have a legal obligation of paying back twenty-five percent of the total loan amount received and providing a minimum of three years of service in either the private or public sector on Saipan on all loan amounts received while in school. However, for purposes of entering into a promissory note/memorandum of agreement with SHEFA and the recipient, the recipient will be deemed and classified as a debtor of SHEFA funds unless all conditions, requirements and stipulations of the note and SHEFA rules and regulations in this subchapter are abided to at all times during the term or life of the agreement, and after completion of his/her studies, or non- enrollment from school or termination from the institution of record. Priority Field of Study: © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 5 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) Business Accounting, Administration, Economics, Finance, Human Resources, Management, Marketing Computer and Information Systems & Technology (MIS/IT), Technology Programming, Science Counseling Family Science, Substance Abuse Education Bilingual Education, Early Childhood Education, English/Mathematics. Special Education, Secondary (Math, Science and Social Studies) Engineering Architect, Civil, Electrical, Environmental, Mechanical Environmental Studies Management, Natural Resource, Science Healthcare Cardiology, Diabetes Specialist/Endocrinologist, Forensic Science, Health Administration, Hospital Administration, Laboratory Technology, Medical Doctor (all fields), Nursing, Nutritionist, Oncology Specialist, Orthopedics, Pharmacy, Physician Assistant, Psychiatry (adult and adolescent), Psychology (general and clinical), Public Health Administration, Radiology Technology, Speech Pathology, Therapy: Occupational, Physical, Respiratory, Veterinary Medicine Law Criminal Justice, Criminology Science Atmospheric, Biology, Biomed, Chemistry, Physical, Meteorology, Volcanology Library and Information Science Public Health Administration/Policy and Social Change Tourism & Hospitality Management, Technology Trade Certification: All Construction Traits, Culinary, Information Technology, Mechanic (aviation and automobile) Others: Agriculture, Aquaculture, Archeology/Anthropology, Communications/Journalism, Energy Resource Management, Government Finance/Auditing, Historic Preservation & Conservation, Internal Relations, Social Work, Sociology, Veterinarian (e) Note: Applicant enrolled in a U.S. accredited online program are allowed to apply for SHEFA financial assistance. However, students enrolled online, regardless of their physical location, will receive the same amount as an on-island student. Block 1/Term 1 for fall term classes must start by August or September and end by December. Block 2/Term 2 for spring classes must start by January and end by June. Modified, 1 CMC § 3806(c), (d), (e), (f), (g). History: Amdts Adopted 39 Com Reg 40220 (Oct. 28, 2017); Amdts Proposed 39 Com. Reg. 39872 (Aug. 28, 2017); Amdts Adopted 35 Com. Reg. 34583 (Nov. 28, 2013); Amdts Proposed 35 Com. Reg. 33795 (July 28, 2013); Amdts Adopted 30 Com. Reg. 29099 (Dec. 22, 2008); Amdts Proposed 30 Com. Reg. 28737 (Sept. 25, 2008); Amdts Adopted 28 Com. Reg. 25758 (May 19, 2006); Amdts Proposed 27 Com. Reg. 25248 © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 6 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) (Nov. 25, 2005); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). Commission Comment: The original paragraphs of subsection (c) were not designated. The Commission designated subsections (c)(1) and (c)(2). In May 2006 and December 2008, the note after subsection (d) was amended. In the note, the Commission changed “procedures” to “Procedure” to correct a manifest error. The 2013 amendments amended subsection (b) and added subsection (e). § 165-20.1-110 Qualification Requirements Section 7 of SLL 13-21 [10 CMC § 3927] reads: “No person other than residents of the Municipality of Saipan as defined under section 2 of this Act shall be eligible for or receive assistance from the Saipan Higher Education Financial Assistance Fund.” A resident in section 2 is a person who is a United States citizen or a United States permanent resident, who has resided in the Municipality of Saipan for at least a year before applying for financial assistance administered by the Board and who is attending or has been accepted for enrollment at an institution of higher education in the CNMI or outside the CNMI. Proof of residence by a parent residing in the Municipality of Saipan for the requisite period, or other acceptable evidence of residency of the applicant or recipient of SHEFA financial assistance such as the Saipan municipal identification card, CNMI driver’s license, etc. must be submitted to the SHEFA office. Note: Eligible SHEFA applicants new and ongoing are required to register to vote in the 3rd Senatorial District (Saipan/Northern Islands). Modified, 1 CMC § 3806(f). History: Amdts Adopted 39 Com Reg 40220 (Oct. 28, 2017); Amdts Proposed 39 Com. Reg. 39872 (Aug. 28, 2017); Amdts Adopted 35 Com. Reg. 34583 (Nov. 28, 2013); Amdts Proposed 35 Com. Reg. 33795 (July 28, 2013); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). Commission Comment: The 2013 amendments added the Note. § 165-20.1-115 Eligibility for SHEFA Fund Financial Assistance (a) All applicants must meet the requirements in § 165-20.1-110 and the following additional requirements: (1) Graduate from high school with a high school diploma or high school equivalent diploma, except for applicants under the Early Admission Program or 2+2 program†; (2) Be accepted to or enrolled on full-time status as required by SHEFA, which does not include a developmental or remedial course(s) or a course taken as non-credit course(s) in a U.S. accredited college or university. Exception to full-time enrollment status of certified disabled applicants may be granted on a case-by-case basis. (3) If awarded financial assistance, a recipient must sign a promissory note/memorandum of agreement providing that all financial assistance received from the © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 7 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) SHEFA fund be subject to debt conversion and debt convertible and that future assistance be contingent on funds availability pursuant to law; (4) Meet all conditions for continuing assistance from SHEFA as provided in this subchapter; (5) Provide all required documents and documentation of eligibility as required by this subchapter, including but not limited to those specifically identified in § 165-20.1-125; and (6) Maintain at least the minimum grade point average as a condition and prerequisite for continuing assistance, which for undergraduate students is 2.5 cumulative GPA; for performance-based scholarship students is 3.5 term††: for graduate and advanced students eligibility is based on a Pass letter grading system or a 3.0 cumulative GPA on a grade point system; Institution’s grading system will be accepted as long as the student is still enrolled in the program with compliance to full-time requirement; Priority field of study for Juniors, Seniors, Graduate and Advanced students in college is a 2.5 cumulative GPA; and for loan is 2.5 cumulative GPA. †Early Admission Program and 2+2 program applies to students still in high school that are simultaneously enrolled at the Northern Marianas College as full-time college students taking college level courses. ††Term refers to fall term and spring term per academic year for applicant or recipient on semester system; fall term, winter term and spring term for applicant or recipient on quarter system; winter and spring term GPA may be combined in computing the higher of the term GPA for purposes of GPA scholarship. GPA scholarship for semester term is awarded on the fall and spring semester and fall and winter/spring for the quarter term. (b) Eligibility for SHEFA fund financial assistance shall be limited to the following maximum time periods: (1) For an associate degree (AA/AS), a maximum of two academic years not including summer; (2) For a bachelor’s degree (BA/BS), a maximum of four academic years, with a provision for one additional academic year for specialized majors or content-area certification by the institution not including summer; (3) For a graduate degree (MA/MS), a maximum of two academic years not including summer for a graduate degree (MA/MS); (4) For an advanced degree, a maximum of three academic years not including summer, with a provision for up to three additional academic years for dissertation writing, dissertation defense and internship or medical degree training requirements, and up to two years for jurisprudence work or related residency, internship or related training requirements. (5) For Trades/Vocational Certificate or Diploma, a maximum of less than two years. Note: Financial Scholarship Request (FSR) to Department of Finance must be made on or before November 15th, for fall term and on or before April 15th for spring term. Other request will be accommodated on a case-by-case basis. Modified, 1 CMC § 3806(c), (d), (f), (g). © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 8 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) History: Amdts Adopted 39 Com Reg 40220 (Oct. 28, 2017); Amdts Proposed 39 Com. Reg. 39872 (Aug. 28, 2017); Amdts Adopted 35 Com. Reg. 34583 (Nov. 28, 2013); Amdts Proposed 35 Com. Reg. 33795 (July 28, 2013); Amdts Adopted 29 Com. Reg. 26516 (May 16, 2007); Amdts Proposed 28 Com. Reg. 26376 (Dec. 29, 2006); Amdts Emergency and Proposed 26 Com. Reg. 23081* (Nov. 30, 2004) (effective for 120 days from Nov. 24, 2004); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). *Due to a pagination error, page numbers 22819 through 23098 repeat in the 2004 Commonwealth Registers. Commission Comment: The Commission changed “fulltime” to “full-time” and removed the brackets in the second sentence of subsection (a)(3). The Commission removed “be eligible for financial assistance for the limited times as follows” from subsection (b) to correct a manifest error. In the note to this section, the Commission added “year” after “per academic” to correct a manifest error. The Commission corrected a semicolon to a comma and a period to a semicolon in subsection (a)(1) pursuant to 1 CMC § 3806(g). The Commission corrected the capitalization of the words “except” in subsection (a)(1) and “grading” in subsection (a)(7) pursuant to 1 CMC § 3806(f). The 2007 amendments reorganized this section and made numerous amendments. The 2013 amendments added the first daggered section and the final note and amended subsections (a)(1) and (a)(7). § 165-20.1-120 Conditions for Continuing Assistance (a) Any new applicant and recipient of SHEFA financial assistance must qualify and be eligible for the assistance as provided for in § 165-20.1-105 at all times and must adhere to all other rules and regulations in this subchapter, including the provisions of the promissory note/memorandum of agreement incorporated herein as a necessary and sufficient condition to receiving and continuing to receive financial assistance from the SHEFA Board pursuant to law subject to availability of funds. (b) The Board may consider an exception to the applicable regulations and provisions in the existing promissory note/memorandum of agreement, and grant a one-time continuing financial assistance to a currently enrolled full- time undergraduate, graduate or advanced student upon signing a supplemental agreement to the existing promissory note/memorandum of agreement, thereby allowing the Board to grant a one-time deferment on the automatic default provisions based on the most current cumulative GPA. (c) A written request by the recipient to the Board for an exception to § 165-20.1-115 and the existing promissory note/memorandum of agreement must be received by SHEFA not more than ten working days following the end of the most recent semester or quarter of the academic year in which the recipient failed to meet SHEFA’s minimum cumulative GPA. (d) A show cause hearing may be held or in the alternative a written request may be submitted to the Board along with evidence based on substantiated compelling reasons or extenuating circumstances on account of medical, health, or psychological reasons, and other credible and verifiable information provided by a first-time recipient enrolled on full- time status. © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 9 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) (e) Provided, however, that no course repeat or below-level course shall be considered in meeting SHEFA’s full-time and cumulative GPA requirements for an undergraduate, graduate or advanced student. (f) Furthermore, if the Board decides to approve a one- time deferral, then it shall be deemed a conditional eligibility for a period not to exceed a semester or quarter immediately thereafter, and such eligibility shall not include eligibility for the academic performance scholarship which requires a 3.5 cumulative GPA for an undergraduate, graduate or advanced student enrolled on full-time status. Modified, 1 CMC § 3806(c), (d), (e), (f), (g). History: Amdts Adopted 28 Com. Reg. 25622 (Apr. 17, 2006); Amdts Proposed 27 Com. Reg. 24512 (May 18, 2005); Amdts Emergency and Proposed 27 Com. Reg. 24135 (May 18, 2005) (effective for 120 days from May 3, 2005); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). Commission Comment: The Commission designated subsections (a)-(f), which were not designated in the original. The Commission made “provision” plural in subsection (b) and changed “provide” to “provided” in subsection (d). The Commission changed “fulltime” to “full-time” throughout this section. The April 2006 amendments added subsections (b)-(f). § 165-20.1-125 Application Policy & Procedure; Required Documents/Deadlines (a) All new and continuing applicants for SHEFA financial assistance are required to submit the following documents as a condition for consideration for assistance. These are: (1) Original and completed application form indicating whether for new or renewal. (2) Latest sealed official transcript from high school or institution of higher education mailed directly to the SHEFA office or an unofficial copy faxed directly to the office by the school or college/university. Scholarship award(s) will be based on a student’s timely submission of transcripts and class schedules and meeting the full-time credit requirements and other pertinent datelines and/or requirements. (3) Letter of acceptance or proof of admission or enrollment. (4) Proof of citizenship (e.g., Saipan municipal identification card, United States passport, birth certificate, or CNMI drivers license). (5) Proof of residency on Saipan as indicated by an annual tax return or other acceptable evidence such as a Saipan municipal identification card or a CNMI driver’s license. (b) In addition, all application forms for new or continuing SHEFA assistance must be filed together with the required documents indicated herein on July 1st unless the date falls on a weekend in which case the deadline is the first Monday of the following week for the fall semester/quarter and December 1st for the spring semester/quarter annually unless the date falls on a weekend in which case the deadline is the first Monday of the following week. Failure to submit a completed application form and the requisite supporting © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 10 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) documents to the SHEFA office on the deadline will be cause for not considering the application until the next financial assistance cycle. Modified, 1 CMC § 3806(f). History: Amdts Adopted 35 Com. Reg. 34583 (Nov. 28, 2013); Amdts Proposed 35 Com. Reg. 33795 (July 28, 2013); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b). The Commission added a period at the end of subsection (a)(2) pursuant to 1 CMC § 3806(g). The 2013 amendments amended subsection (a)(2). § 165-20.1-130 Truth-in-lending Policy and Confidentiality The information provided to SHEFA for purposes of determining qualification and eligibility is considered confidential, and will only be released upon written authorization from the applicant/recipient. All information contained in the completed application or renewal form, qualification and eligibility documents, person(s) used as reference(s), letter of acceptance, enrollment documents from institution of record, grade reports and transcripts, and other forms of supporting documents are considered true and complete to the best of the applicant/ recipient’s knowledge, and the applicant further agrees to provide proof of information stated in the application or renewal form or supporting documents submitted to SHEFA. Falsification of information and any document(s) submitted by the applicant or recipient of SHEFA assistance may result in the immediate discontinuation of financial assistance and automatic suspension and/or disqualification for any future financial assistance. Therefore, every applicant for SHEFA financial assistance and every recipient of SHEFA financial assistance is required to authorize SHEFA to request and obtain any and all information necessary and sufficient from relevant agencies or institutions of higher education related to the application or renewal of application for financial assistance from SHEFA. Financial assistance from the SHEFA fund is contingent on availability of funds as provided in Saipan Local Law 13-21 [10 CMC §§ 3921-3928]. History: Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). § 165-20.1-135 Appeal Policy & Procedure Any qualified and eligible applicant and recipient of SHEFA financial assistance may address and present any grievance in writing first to the SHEFA administrator with a copy directly to the SHEFA board. If the applicant or recipient of SHEFA financial assistance is not satisfied with the written official response from the SHEFA administration, then the applicant and recipient may appeal the decision of the SHEFA administration directly to the Chairperson of the SHEFA board within ten working days of issuance of a decision by the SHEFA administration. The appeal to the SHEFA board shall be in accordance with the Administrative Procedure Act, 1 CMC §§ 9101, et seq. To this end, all decisions made by and entered into record by the board shall be final agency decision and order on the administrative level of appeal or review process and procedure. © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 11 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) Modified, 1 CMC § 3806(e), (f). History: Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). Part 200 - Miscellaneous Provisions § 165-20.1-201 Availability of Supplementary Financial Assistance; Effective Date The rules and regulations in this subchapter governing the administration of the SHEFA financial assistance shall take effect upon its publication and adoption in accordance with the administrative procedure act. Modified, 1 CMC § 3806(d), (f). History: Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). § 165-20.1-205 Promissory Note/Memorandum of Agreement Form; Repayment Term As a condition of receiving Saipan Higher Education Financial Assistance, the recipient of any type of financial assistance shall agree in writing to the terms and conditions of such financial assistance and to repay such financial assistance in accordance with Saipan Local Law No. 13-21 and any amendments thereto and the applicable rules and regulations. Said agreement shall be in writing and be in the form approved by the Board and incorporated herein as part of this regulation by reference. Promissory notes entered into after the adoption of Board Resolution No. 2021-001 (adopted on January 28, 2021) shall be amended to conform to the following, which terms shall supersede those of promissory notes entered into by SHEFA (as “Lendor”) and recipients of SHEFA financial assistance (as “Debtors”) after January 28, 2021. THIS PROMISSORY NOTE/MEMORANDUM OF AGREEMENT made and entered into this__________ day of ______, 20, by and between the Board of SHEFA for the Municipality of Saipan within the Office of the Mayor of Saipan and _____________________, and/or with his/her parent, _____________________, if below 18 years, hereinafter referred to as the “Debtor” at address: _______________________ (permanent & current postal address) residing in _______________ (village) of Saipan. WITNESSETH WHEREAS, Saipan Local Law (SLL) 13-21 established the Saipan Higher Education Financial Assistance within the Office of the Mayor of Saipan to be governed by the Saipan Higher Education Financial Assistance Board (SHEFA); WHEREAS, the SHEFA Board, in administering the SHEFA fund, will enter into a legally binding and enforceable promissory note/memorandum of agreement with a qualified and © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 12 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) eligible resident of Saipan together with a parent, if recipient of SHEFA financial assistance is below 18 years, prior to the disbursement of any SHEFA fund. In entering into a mutually binding promissory note/ memorandum of understanding, the SHEFA Board becomes the “Lender” of record for SHEFA fund and the recipient of SHEFA financial assistance together with the parent, if recipient is below 18 years, become individually and collectively the “Debtor” of any and all type and amount of SHEFA financial assistance received and acknowledged herein pursuant to § 165-20.1-105 including:

  1. Grant-in-Aid,
  2. Scholarship, and
  3. Loan. WHEREAS, the Saipan Higher Education Financial Assistance (SHEFA) is established as a supplementary financial assistance to eligible residents of the Municipality of Saipan, inclusive of the Northern Islands who desire to pursue post-secondary education at a U.S. accredited institution of higher learning on Saipan or abroad, or SHEFA approved skilled, trade or vocational institution, with the intention of returning to Saipan pursuant to SHEFA rules and regulations for purposes of employment, and to provide services to the private or public sector or both, in recognition of the need for educated citizenry and workforce on Saipan and other contributions to the local and national interest. NOW, THEREFORE, in consideration of SHEFA financial assistance including grant-in- aid, scholarship and loan which recipient/debtor received and acknowledged by signing this promissory note/memorandum of understanding between the Debtor and the Lender, the Debtor agrees, covenants and represents as follows:
  4. The Debtor is admitted to or enrolled in ___________________(name of institution, a U.S. accredited post-secondary institution of higher learning, or SHEFA Board approved trade/vocational institution) in pursuit of a degree or certificate in _____________________(specify type of certificate or degree e.g., A.A., B.A., M.A., PH.D., J.D., MD. etc. and field of study).
  5. The Debtor shall utilize all financial assistance for educational expenses directly related or incidental to attendance and continued attendance at an institution of record and shall enroll in at least a minimum of 12 credits for undergraduate; full-time status as defined by the institution for graduate; and full-time status as defined by the institution for advanced standing and maintain the minimum or higher grade point average (GPA) in accordance with the SHEFA Rules and Regulations.
  6. The Debtor shall complete the required credits for each term that financial assistance was received (mark one): i. Certificate and Undergraduate Full-Time: Twelve or more credits ii. Graduate Full-Time: As defined by the institution iii. Advanced Full-Time: As defined by the institution © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 13 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) 4. The Debtor shall maintain at the end of each term the required cumulative grade point average and term grade point average as it applies below by marking the appropriate category: i. Undergraduate: 2.5 Cumulative GPA Twelve or more credits ii. Performance-Based Scholarship: 3.5 Term† GPA; Twelve or more credits for undergraduates iii. Graduate: Pass (P) on a letter grade system or 3.0 CGPA on a grade point system as defined by the institution iv. Advanced: Pass (P) on a letter grade system or 3.0 CGPA on a grade point system as defined by the institution v. Priority Field of Study: 2.5 Cumulative GPA vi. Loan Applicant/Recipient: 2.5 Cumulative GPA vii. Trade/Vocational Recipient: Pass (P) on a letter grade system or 2.0 cumulative GPA on a grade point system or 70% on a numerical grade point system. Must be enrolled full time per term as defined by the institution. †Term refers to fall term and spring term per academic year for applicant or recipient on semester system; fall term, winter term and spring term for applicant or recipient on quarter system; winter and spring term GPA may be combined in computing the higher of the term GPA for purposes of GPA scholarship. GPA scholarship for semester term is awarded on the fall and spring semester and fall and winter/spring for quarter term. 5. The Debtor shall submit a copy of his/her official grade report/transcript promptly after the conclusion of each academic term directly from the institution of record to the SHEFA Office. The grade report submittal will determine the eligibility for continued assistance on every subsequent term. Within ninety days upon matriculation from the institution of record, the Debtor shall submit a copy of his/her college degree and proof of employment on Saipan or the Northern Islands. The Debtor also fully understands and agrees to his/her legal obligations pursuant to the explicit and implicit terms and conditions set forth in this promissory note/memorandum of agreement. 6. The Debtor understands, acknowledges, and accepts the maximum duration of eligibility for financial assistance from the SHEFA fund: 2 Academic Years - Associate Degree 4 Academic Years - Bachelors’ Degree†† 2 Academic Years - Graduate Degree 2 Academic Years - Advanced Degree††† Less than 2 Years – Certificate/Diploma ††maximum of five academic years for specialized majors and/or specialized certification by the institution of record. © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 14 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) †††maximum of three academic years not including summer, with a provision for up to three additional academic years for dissertation writing, dissertation defense, and internship requirements or medical degree training requirement, and up to two years for jurisprudence work or related residence internship or related training requirements. 7. The Debtor hereby declares that he/she is not pursuing an academic program that leads to a religious studies degree, and shall not take religion courses not specifically prescribed in the Individualized Degree Plan (IDP). 8. The Debtor shall agree, except as provided by and subject to the provisions of paragraph 11, to return to Saipan within nine (9) months after the completion of his/her degree plan or six (6) months within termination of or non-enrollment from the institution of record, and provide services by working on Saipan for any employer- whether in the private or public sector or both. The Debtor further agrees to perform services in the private or public sector or both on Saipan for a period equal to the period for which the Debtor received financial assistance under § 165-20.1-105(a)(b) from the Lender, subject to paragraph 11. The Debtor agrees to pay back twenty-five percent of the total amount of loan received under § 165-20.1-105(c) and a minimum of three years of service to either in the private or public sector or both on Saipan. If the recipient of SHEFA financial assistance does not return back to Saipan after completion of his/her studies, or non-enrollment from school or termination from the institution of record, he/she must, except as provided by paragraph 11,repay the entire debt back on all SHEFA funds received under § 165-20.1-105(a)(b)(c) with interest in accordance with this promissory note/memorandum of agreement. 9. The Debtor understands and hereby agrees that failure to comply with any part of sections 1-8 of this promissory note/memorandum of agreement and the SHEFA rules and regulations will constitute a material breach of the promissory note/memorandum of agreement and a default, and will require the Debtor to pay the entire award received. If such a default occurs, the Debtor must repay their entire debt to the Lender with equal monthly payments within 6 years of the default. The Debtor may repay according to any of the following repayment options as shown below. Total Debt for Per Month Per Month Per Month Per Month Per Month Per Month repayment 12 months 24 months 36 months 48 months 60 months 72 months 1,000 - 84 - 42 - 28 - 17 - 14 - 104 9,999 834 417 278 209 167 139 834 - 625 417 313 250 209 1,250 1,250 - 834 556 417 334 278 1,667 © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 15 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) 1,667 - 556 - 417 - 334 - 278 - 24,999 1,042 2,084 - 694 - 521 - 417 - 348 - 29,999 1,250 2,500 - 834 - 625 - 500 - 417 - 34,999 1,459 2,917 - 973 - 834 667 556 3,334 1,111 The Debtor must inform the Lender of which repayment schedule he or she has accepted within thirty days of the default. If the Debtor does not select a repayment schedule within thirty days, the Debtor will be deemed to have selected the “Per Month 72 Months” repayment schedule listed above. The Debtor’s first monthly payment shall be due on the first of the month following the default, but at least thirty days after the default. All subsequent payments will be due on the first of each following month until the Debtor repays the entire debt to the Lender. Note: the Debtor may pay the balance in full at any time within the schedule plan. 10. If the Debtor fails to pay any monthly payment, or any part of any monthly payment (“payment default”), then the whole principal sum shall become immediately due and payable at the option of the Lender, without notice, and interest shall accrue at the rate of five percent per annum on the total amount outstanding. Interest shall accrue until Debtor fully cures the payment default by paying all past due monthly payments and all accrued interest. Payments received shall be applied first to the accrued interest and then the balance thereof to the principal. 11. Military Deferral; Return and Work Waiver. The time for the Debtor to comply with the requirements of section 8, above, shall be extended indefinitely upon request if the Debtor enlists in the armed forces of the United States of America. Specifically, the Debtor’s obligation to comply with the requirements of section 8 shall be deferred, upon request, until the Debtor’s service in the armed forces ends. Once the Debtor’s service in the armed forces ends, the Debtor shall have to comply with the requirements of section 8. All deferrals granted under this section are not valid unless approved in writing by SHEFA. The Debtor must renew his or her deferral annually. Every full month of military service so deferred shall be credited against the return-to-Saipan-and- work requirement of section 8 up to 100% of the return-to-Saipan-and-work requirement, and said return-to-Saipan-and-work requirement shall be waived and deemed satisfied to such extent. 12. In the event of commencement of suit to enforce payment of this promissory note/memorandum of agreement, the undersigned agree(s) to pay the Lender for attorney’s fees as the Court in the Commonwealth of the Northern Mariana Islands may deem reasonable. © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 16 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) 13. The recipient of SHEFA financial assistance together with the parent, if applicant is below 18 years, fully understands and agrees that compliance with the provisions in this promissory note/memorandum of agreement and all provisions of the SHEFA rules and regulations shall constitute a condition for any and all financial assistance herein by SHEFA as hereby acknowledged and attested to by both the recipient and parent, if recipient is below 18 years. Moreover, this agreement shall authorize SHEFA to request and obtain any and all necessary information from other agencies related to the application for financial assistance, and shall further authorize the SHEFA Office to provide essential information and data such as resume, diploma, or degree name and contact mailing, or e-mail addresses to potential employer(s) on Saipan including posting such information and data on SHEFA’s website or its affiliate on Saipan. 14. The parties agree that the courts of the Commonwealth of the Northern Mariana Islands (Superior Court and Supreme Court) shall have exclusive jurisdiction over any action involving this promissory note/memorandum of agreement. This agreement shall be interpreted using the laws of the Commonwealth of the Northern Mariana Islands. IN WITNESS WHEREOF, the recipient (Debtor) and/or parent, if recipient is below 18 years, have hereunto set his/her or their hand(s) on the date first above written.

Print Recipient Name / Signature Date

Print Parent Name / Signature, Date if Recipient is below 18 yrs. NOTARY PUBLIC: On this __day of 20, before me appeared ________________ and (recipient parent, if recipient is below 18 years), who executed the agreement contained herein, and duly acknowledged to me that he/she and parent, if recipient is below 18 years, executed the same freely and voluntarily for the uses and purposes therein mentioned.

Notary Public (Print & Sign) My Commission expires:__________________________ Modified, 1 CMC § 3806 (g). History: Amdts Adopted 43 Com. Reg. 47931 (Dec. 28, 2021); Amdts Proposed 43 Com. Reg. 47594 (Sept. 28, 2021); Amdts Adopted 39 Com. Reg. 40220 (Oct. 28, 2017); Amdts Proposed 39 Com. Reg. 39872 (Aug. 28, 2017); Amdts Adopted 35 Com. Reg. 34583 (Nov. 28, 2013); Amdts Proposed 35 Com. Reg. 33795 (July 28, 2013); Amdts Adopted 33 Com. Reg. 31916 (Sept. 26, 2011); Amdts Proposed 33 Com. Reg. 31761 (July 22, 2011); Amdts Adopted 29 Com. Reg. 26516 (May 16, 2007); Amdts Proposed 28 Com. Reg. 26376 (Dec. 29, 2006); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 17 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) § 165-20.1-210 Career Counseling and Guidance & College Life Orientation All new applicants to the SHEFA fund must undergo a career orientation, assessment, and counseling and guidance as a condition to receiving any financial assistance at the outset. SHEFA will coordinate the career sessions with participating government agencies, including the schools on Saipan. An orientation to college life is also a prerequisite to receiving SHEFA assistance. Both the career counseling and college life orientation must be undertaken on island prior to check disbursement, unless authorized in advanced to do so in writing by SHEFA at a location or institution acceptable to SHEFA. History: Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). § 165-20.1-215 Notification to SHEFA Board Any recipient of SHEFA financial assistance who withdraws or drops out of any class or on less-than-full-time status must immediately notify the SHEFA board in writing, as a change in status may affect future financial assistance. Failure to inform the SHEFA board may be deemed as a material breach of the SHEFA rules and regulations, and more specifically section § 165-20.1-130. A change in a field of study must be immediately reported in writing to the SHEFA board with reasons for the change, especially for SHEFA recipients having a declared major in the SHEFA priority field of study and/or admitted by the institution of record into the program field of study. Under no circumstances will any applicant or recipient of SHEFA funds be authorized to satisfy any fulltime status and GPA requirements of SHEFA with any remedial course, except on account of a requirement by the institution of record based on a placement test. This exception on non-acceptance of remedial courses is limited to two academic years for freshmen and sophomores only for English and math. Any recipient of performance-based scholarship assistance is not authorized to take any remedial or repeated courses at all. Use of SHEFA financial assistance is strictly for on-campus study requiring student residency. Modified, 1 CMC § 3806(c), (e)–(g). History: Amdts Adopted 35 Com. Reg. 34583 (Nov. 28, 2013); Amdts Proposed 35 Com. Reg. 33795 (July 28, 2013); Amdts Adopted 30 Com. Reg. 29099 (Dec. 22, 2008); Amdts Proposed 30 Com. Reg. 28737 (Sept. 25, 2008); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). § 165-20.1-220 SHEFA Application Form; Terms (a) Incorporated as part of this subchapter governing the SHEFA financial assistance is the SHEFA Application Form for both new applicants and on-going applicants. No application, either new or on-going, for SHEFA financial assistance, will be received, considered or reviewed by SHEFA unless the application is completed, signed and accompanied by all required documents in support of the application. The required documents include, but are not limited to information indicated on the application form and/or by other written directive or public announcement. Effective spring 2013, applicants and previous recipients may submit a one-time application and promissory © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 18 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) note/memorandum of agreement. Students are responsible to provide accurate substantial/significant information regarding their current data. Falsification of information of document will be submitted to the Office of the Attorney General for legal action. (b) The words and terms used in this subchapter shall have the meanings indicated and shall include the plural unless the context clearly indicates otherwise. The definitions herein provided shall supplement the definitions provided in Saipan Local Law 13-21. (c) “U.S. accredited institution of higher education/learning” means an institution of higher learning which has the approval of the United States Department of Education. Such institution may be located in the United States of America, its commonwealths, possessions or territories or in foreign countries. (d) “Institution of record” means the U.S. accredited institution of higher education/learning from which the SHEFA applicant or recipient is seeking a degree and which the SHEFA applicant or recipient has identified in the application for financial assistance and/or the promissory note and memorandum of agreement between SHEFA and the recipient of financial assistance. (e) “Full-time status” means the registration and enrollment at the student’s institution of record from the beginning and throughout the entire academic period (i.e., semester or quarter term) for which SHEFA financial aid is provided and shall require the following: (1) Undergraduate degree students: twelve semester or quarter credits taken concurrently throughout an entire academic term i.e., fall semester, fall quarter, spring semester or spring or winter quarter; (2) Graduate degree and advanced degree students: Given amount of credits as defined by the institution as full-time taken concurrently throughout an entire academic term i.e., fall semester fall quarter, spring semester, or spring or winter quarter, unless the student is working on a dissertation, engaged in a mandatory internship required by the program, or engaged in other related required fieldwork or studies outside of a formal didactic setting; and (3) Sequential class program: students enrolled in degree program in a U.S. accredited institution of higher learning that provides classes on a sequential instead of on a concurrent basis may be considered in full-time status and be eligible for financial assistance on a pro rata basis depending on the number of credit hours in which the student is enrolled at a given term (i.e., fall semester/quarter or winter/spring semester/quarter). (4) Provided, however, that no credit shall be counted toward full-time status for a class from which the student withdraws, for a religion course (unless it is a mandatory prerequisite for a program major field of study or general education requirement) for repetition of a class (regardless whether credit has previously been counted); for audit of a class; for a class for which the student receives a grade of incomplete; for a class for which the student receives a failing grade; or for a class unrelated to a declared field of study and not included in the student’s individualized degree plan (IDP). (5) Provided further that, in the event a student does not meet the requirement of full- time status because of withdrawal from a class or because of receiving a grade of incomplete or failing grade, the student shall immediately cure the credit deficiency the © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 19 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) following semester by taking and completing sufficient credits to constitute full-time status plus credits sufficient to make up the credit deficiency during the previous fall or spring semester/quarter. A repeat course is in addition to a full-time status and not counted toward full-time status. (f) “Cumulative grade point average” (“GPA”) means the cumulative grade point average at the student’s institution of record as determined by the student’s institution of record; and, if the student has not yet attended the student’s institution of record then the cumulative grade point average at the US accredited institution of higher education/learning last and most recently attended by the student as determined by that institution; and, if the student has not yet attended a US accredited institution of higher education/learning then the cumulative grade point average at the high school from which the student graduated. In other words, cumulative grade point average means the student’s cumulative grade point average at the student’s most recent and latest institution of learning, regardless of any grade point average previously attained in any other institute of higher learning. (g) “Minimum grade point average” means the cumulative or term grade point average required to be attained prior to receiving Saipan higher education financial assistance and required to be attained at the end of each academic period for which Saipan higher education financial assistance has been provided. The minimum grade point average required is to meet the following: (1) Undergraduate students: 2.5 cumulative GPA; (2) Performance-based scholarship students 3.5 Term† GPA; (3) Graduate and advanced students: Pass on a letter grade system or 3.0 CGPA on a grade point system. (4) Priority field of study students: 2.5 cumulative GPA; (5) Loan students: 2.5 cumulative GPA; and (6) Trade/Vocational Recipient: Pass (P) on a letter grade system, 2.0 CGPA on a grade point system, or 70% on a numerical grade point system. †Term refers to fall term and spring term per academic year for applicant or recipient on semester system; fall term, winter term and spring term for applicant or recipient on quarter system; winter and spring term GPA may be combined in computing the higher of the term GPA for purposes of GPA scholarship. GPA scholarship for semester term is awarded on the fall and spring semester and fall and spring for quarter term. (h) “Residence” means that place where that person has lived on account of birth, parental residence or established (i.e., not casual) physical dwelling on Saipan or the Northern Islands, which that person makes Saipan or the Northern Islands home by credible and verifiable information or data. (1) As a legitimate, established and bona fide resident the individual and/or parent for and on whom the individual is economically dependent for financial support and is in fact claimed by either or both parent(s) as a dependent regularly files taxes at his/her place of residence; maintains an established street and/or postal address home telephone number and a Saipan driver’s license, including but not limited to maintaining affiliation with © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 20 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) recognized and identifiable professional, religious or fraternal life or association at his/her place of residence and registered to vote and has in fact exercised the right to vote on Saipan or the Northern Islands. (2) Moreover residency as operationally applied by SHEFA is a place where a person’s presence or residence is well established beyond mere physical presence on Saipan or the Northern Islands. It is not transitory residence in nature, in fact or in deed. A person’s presence or residence is not on account of a temporary absence from his/her other established or legitimate residence elsewhere in the Commonwealth or outside of the Commonwealth either on a short term or long-term basis, or whose presence on Saipan or the Northern Islands is for other temporary purposes such as private or public employment, school, medical, or other temporary needs temporary permit or guest or any other acts or intent, where a person’s presence or residence on Saipan or the Northern Islands is deemed unequivocal or raises a specter of reasonable doubt and more than a casual presence, and thus makes Saipan or the Northern Islands home. (3) Also, the person’s presence or residence on Saipan or the Northern Islands is not on account of a person for and on whom he/she is economically dependent on for financial support (i.e. more than half of his/her support from parent(s)) and/or claimed as a dependent on tax filing. (i) “Individualized Degree Plan (I.D.P.)” means a prescribed course of study by major field of study of an institution delineating the core course requirements, electives, field work and thesis or dissertation requirements which leads to a degree within a prescribed timeframe for matriculation. (j) “Deferment” allows students to temporarily seek postponement of their student loan payment. The deferment clause help SHEFA recipients avoid default on the four types of request. (1) Return Deferment: The Debtor shall agree to return to Saipan within nine months after the completion of his/her degree plan from the institution of record, and provide services by working on Saipan in the public or private sector. (2) GPA Deferment: This is a one-time deferment. If the Board decides to approve a one-time deferral, then it shall be deemed a conditional eligibility for a period not to exceed a term, semester or quarter immediately thereafter. Such eligibility shall not include eligibility for the academic performance scholarship which requires a 3.5 cumulative GPA for an undergraduate, graduate or advanced student enrolled on full-time status. (3) Military Deferment: Approval for military deferment will only be considered for recipients on active duty whose primary duty and career is soldiering. After four years, whether the recipient re-enlists or not, payment requirement must begin. A reservist is a member of the US military reserve force. The deferment qualification for reservist applies upon notice for deployment and indeed is deployed. The reservist’s waiver becomes automatic and is granted when so requested. The waiver is for a maximum of four years just as with active duty military recipients. (4) Repayment Deferment: Six-months maximum. This deferment is for those students who withdraw, suspend, terminate, or cease furthering the educational agreement stipulated in the SHEFA Memorandum of Agreement. This is six months from the date of withdrawal or cessation from education, trade institution or approved program. © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 21 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) Modified, 1 CMC § 3806(c), (d), (e), (f), (g). History: Amdts Adopted 39 Com. Reg. 40220 (Oct. 28, 2017); Amdts Proposed 39 Com. Reg. 39872 (Aug. 28, 2017); Amdts Adopted 35 Com. Reg. 34583 (Nov. 28, 2013); Amdts Proposed 35 Com. Reg. 33795 (July 28, 2013); Amdts Adopted 33 Com. Reg. 31916 (Sept. 26, 2011); Amdts Proposed 33 Com. Reg. 31761 (July 22, 2011); Amdts Adopted 29 Com. Reg. 26516 (May 16, 2007); Amdts Proposed 28 Com. Reg. 26376 (Dec. 29, 2006); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). Commission Comment: The Commission inserted “are” in “but not limited to” in the final sentence of subsection (a) to correct a manifest error. The Commission inserted the commas after “fall semester” and “fall quarter” in subsection (e)(1). The Commission changed “institute” to “institution” in subsections (e)(3) and (f) and changed “a credible” to “credible” in subsection (h). In the note after subsection (g), the Commission inserted a comma between “fall term” and “winter term.” The Commission inserted a comma between “birth” and “parental residence” in subsection (h). The Commission inserted a comma between “postal address” and “home telephone” in subsection (h)(1). The Commission inserted a semi-colon between “place of residence” and “and registered” in subsection (h)(1). The Commission inserted a comma between “temporary needs” and “temporary permit” in subsection (h)(2). The Commission designated paragraphs (e)(4) and (e)(5) and (h)(1)-(3). The May 2007 amendments changed the title and subsection (a) and added subsections (b)-(i). The 2011 amendments amended subsections (e)(2) and (e)(4). The 2013 amendments amended subsections (a), (e)(2), and (g)(3). § 165-20.1-225 Welcome Home; Your Expected Return to Saipan Within nine months of a successful completion or six months of termination or non- enrollment from the institution of record, whichever event occurs first, the recipient of financial assistance from the SHEFA fund is required to return to Saipan for employment and/or to provide services in the private or public sector, in recognition of the need for educated citizenry and workforce on Saipan. Modified, 1 CMC § 3806(e), (g). History: Amdts Adopted 39 Com. Reg. 40220 (Oct. 28, 2017); Amdts Proposed 39 Com. Reg. 39872 (Aug. 28, 2017); Adopted 26 Com. Reg. 23121 (Aug. 26, 2004); Proposed 26 Com. Reg. 22797 (June 24, 2004). § 165-20.1-230 Trade/Vocational School Financial Assistance Purpose: Pursuant to 10 CMC § 3921(c) the SHEFA financial assistance shall also be available for students who have not obtained a high school diploma or its equivalency, yet are simultaneously enrolled in a high school or a high school equivalency program and are enrolled in a trade type institution such as the Northern Marianas Trades Institute. (a) Classification of Recipients: Certificate/Diploma: an undergraduate program less than two years. (b) Qualification Requirements: Qualification requirements shall meet SHEFA policy § 165-20.1-110 © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 22 of 23

TITLE 165: LOCAL RULES AND REGULATIONS; SAIPAN AND NORTHERN ISLANDS (THIRD SENATORIAL DISTRICT) (c) Eligibility Requirements: (1) Must submit a completed and signed application on or before July 1st for fall term and December 1st for winter or spring term. (2) Must submit a copy of your acceptance letter from a U.S. accredited trade institution. Non-U.S. accredited trade institutions must be approved by the SHEFA Board. (3) Must be a high school graduate, simultaneously enrolled in high school in the 3rd Senatorial District, or simultaneously enrolled in a high school equivalency program. (4) Must be enrolled full-time per term as defined by the institution. (5) Must maintain after every award term a 2.0 CGPA on a grade point system, or Pass (P) on a letter grade system, or 70% on a numerical grade system. (d) Student Responsibilities: In order to receive any form of assistance from the SHEFA program, all applicants must: (1) Complete all necessary application forms and pertinent documents on or before the established deadlines as indicated in § 165-20.1-125 (Application Policy & Procedure; Required Documents/Deadlines). (2) NMTI application deadline for fall term is July 1st and February 28th, for winter/spring term. Deadline for supporting documents for fall term is, September 30th and for winter/spring term is February 28th. (3) Must be enrolled in a program of study leading towards a certificate program in trade institute and satisfactorily meet institutions passing grade policy. (4) Inform the SHEFA office of any changes that may affect their financial assistance. (5) Comply with all other policies established by SHEFA guidelines. (6) The student is making satisfactory progress in high school or high school equivalency program if non-high school graduate or non-completion of high school equivalency program. Modified, 1 CMC § 3806(a), (f), (g). History: Adopted 39 Com. Reg. 40220 (Oct. 28, 2017); Proposed 39 Com. Reg. 39872 (Aug. 28, 2017). © 2021 by The Commonwealth Law Revision Commission (Dec. 28, 2021) Page 23 of 23

Source: CNMI Law Revision Commission

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