This subchapter shall be known as the “National Student Loan Revolving Fund Act of 1982”.
Source: PL 2-50 § 1.
Editor’s note: PL 2-50, codified herein as subchapter III, did not expressly repeal subchapter I of this chapter. PL 6-44 § 1, explicitly repealed subchapter I of this chapter.
Cross-reference: The statutory provisions of other revolving funds are found in chapter 6 of title 55 (Government Finance and Contracts) of this code.
It is important to the growth of our new Nation that we identify and educate more of the talented young men and women of the Federated States of Micronesia in order to provide the fullest development of their mental resources and technical skills. The purpose of this subchapter is to establish an ongoing fund to provide long-term, low-interest loans from a revolving fund to qualified students who are in need of such financial assistance in order to pursue a full-time course of study at an institution of higher education.
Source: PL 2-50 § 2.
Cross-reference: FSM Const., art. IX, § 2(r), as amended, states as follows:
Section 2. The following powers are expressly delegated to Congress:
. . .
(r) to promote education and health by setting minimum standards, coordinating state activities relating to foreign assistance, providing training and assistance to the states and providing support for post-secondary educational programs and projects.
. . .
FSM Const., art. XIII, § 1 states as follows:
Section 1. The national government of the Federated States of Micronesia recognizes the right of the people to education, health care, and legal services and shall take every step reasonable and necessary to provide these services.
The provisions of the Constitution are found in Part I of this code.
(1) “Academic year” or its equivalent means the number of credit hours which a student must acquire during any one school year in order to secure the degree or certificate toward which he or she is working in the number of semesters or terms normally taken therefor at the institution where he is pursuing a course of study.
(2) “Chief” means the chief of the Division of Education of the Federated States of Micronesia.
(3) “Full-time attendance” means compliance by a full-time student with policies and regulations regarding attendance in effect at the institution in which he or she is enrolled.
(4) “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.
(5) “Fund” means the National Student Loan Revolving Fund.
(6) “Institution of higher education” means an educational institution which:
(a) admits as regular students only persons having a certificate of graduation from a school providing secondary education;
(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 approved by the chief 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.
(7) “Professional” or “graduate student” means, in general, a student who is enrolled in an academic program of instruction above the college level which is provided at an institution of higher education. The term includes:
(a) that portion of any program involving a period of study beyond four academic years of study at the college level; or
(b) any portion of a program leading to:
(i) a degree beyond the bachelor’s or first professional degree, or
(ii) a first professional degree when at least three years of study at the college level are required for entrance into a program leading to such degree.
(8) “Satisfactory standing” and “good standing” mean 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.
(1) is a citizen of the Federated States of Micronesia;
(2) is in need of the amount of the loan to pursue a course of study on a full-time basis as an undergraduate, graduate, or professional student at an institution of higher education; and
(3) has been accepted for enrollment as a full-time student at an institution of higher education or in the case of a student already attending such an institution, is in good standing at such institution and is carrying a full-time academic work load.
The loans advanced from the fund to a student for any academic year or its equivalent may not exceed a total of $4,000, and further, the total of all such loans to an undergraduate student may not exceed $16,000. The total of all such loans to an individual student continuing as a professional or graduate student may not exceed a combined total of $32,000.
Loans from the fund shall be made reasonably available, subject to section 328 of this subchapter, to all eligible applicants. In the event applications exceed available funds, the order of selection shall be made on the basis of objective criteria established by the chief pursuant to Public Law No. 1-150. Special consideration shall be given to students with superior academic backgrounds.
There is established a Student Loan Revolving Fund (hereinafter the “fund”), separate from the General Fund or other funds. All appropriations for student loans shall be deposited in this account. In addition all repayments of principal and interest from loans made from this fund shall be deposited back into the fund for the purposes stated in section 325 of this subchapter. Further, all loan repayments of interest and principal for funds received from appropriations made pursuant to:
(1) Public Law No. 1-22, as amended by Public Law No. 1-57;
(2) Public Law No. 1-106;
(3) Public Law No. 1-125; and
(4) Public Law No. 2-21, as amended by Public Laws Nos. 2-26, 2-38, and 2-39; shall be deposited in the fund. Any unexpended money in this account shall not revert to the General Fund or lapse at the end of the fiscal year.
Source: PL 2-50 § 7; PL 4-114 § 16.
Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code. The statutory provisions on the Congress of the Federated States of Micronesia are found in title 3 of this code.
The website of the FSM National Government contains announcements, press releases, news, forms, and other information on the National Government at http://fsmgov.org.
The official website of the Congress of the Federated States of Micronesia contains the public laws enacted by the Congress, sessions, committee hearings, rules, and other Congressional information at http://www.fsmcongress.fm/.
(1) Loans from the fund shall be evidenced by a note or other written agreement between the Division of Education and the borrower which provides for repayment of the principal amount, together with interest thereon, in equal installments payable monthly over a period beginning nine months after the date on which the borrower ceases to carry the normal full-time academic work load at an institution of higher education, and ending ten years and nine months after such date. Installments need not be paid during any period, aggregating not in excess of three years, during which the borrower is in less than full-time attendance at an institution of higher education taking courses which are creditable towards a degree, but interest shall continue to accrue during any such period.
(2) Such loan shall bear interest on the unpaid principal of the loan at the rate of four percent per annum except that no interest shall accrue before the date on which repayment of the loan is to begin.
(3) Such loan shall be made without security or endorsement except that if the borrower is a minor, endorsement shall be required.
(4) Any student borrower may, at his or her option, and without penalty, repay all or any part of the principal and accrued interest at any time.
(5) In the event that a student who has borrowed from the fund is unable, due to extraordinary circumstances, to comply with his or her obligations to repay the funds loaned to him or her, he or she may apply to the chief for revision of the repayment schedule.
(6) The chief shall assess a late payment charge with respect to a loan on which a student borrower has failed to pay all or part of an installment when it is due. Such late charges shall not exceed one dollar for the first month or part thereof by which an installment is late and two dollars for any month or part of a month thereafter.
The chief shall prepare and submit an annual report on the status of the fund prior to the opening of the regular May session of the Congress of the Federated States of Micronesia. This report shall include the total amount of outstanding current loans, total amounts of repayments collected in the prior fiscal year, the total amount of payments in default in the prior fiscal year, the number of loans made during the prior fiscal year, and such other information as may be appropriate.
Source: PL 2-50 § 9.
Cross-reference: The statutory provisions on the FSM Congress are found in title 3 of this code.
The Congress of the Federated States of Micronesia hereby authorizes appropriations from the General Fund of the Federated States of Micronesia for the purposes set forth in section 325 of this subchapter. The aggregate total appropriations for the revolving fund shall not be less than $600,000.
Source: PL 2-50 § 10.
Cross-reference: The statutory provisions on the FSM Congress are found in title 3 of this code.
FSM Const., art. IX, § 2(r), as amended, states as follows:
Section 2. The following powers are expressly delegated to Congress:
. . .
(r) to promote education and health by setting minimum standards, coordinating state activities relating to foreign assistance, providing training and assistance to the states and providing support for post-secondary educational programs and projects.
. . .
FSM Const., art. XIII, § 1 states as follows:
Section 1. The national government of the Federated States of Micronesia recognizes the right of the people to education, health care, and legal services and shall take every step reasonable and necessary to provide these services.
The provisions of the Constitution are found in Part I of this code.
The Chief of the Division of Education shall promulgate regulations, pursuant to Public Law No. 1-150, consistent with the contents and intent of this subchapter.
Source: PL 2-50 § 11.
Cross-reference: PL 1-150 is codified at chapter 1 of title 17 of this code and is on FSM Administrative Procedures.