Bridging Islands

Over the past years, I have always had an issue with my scholarship disbursement being late and having to face consequences with the institution I'm enrolled in. During this semester, for example, my enrollment was cancelled and this led to my termination as a student assistant at the university. So I was no longer considered an official student of the university for the semester and without a job. OH! And since you have your bus pass issued or renewed once your tuition or part of your tuition is paid, I was also without a bus pass. Since my termination came later than my dis-enrollment, I had to bus to work everyday, and I ended up paying $2.50 both ways--to work and back home--and this was expensive. Sheeze! Talk about a domino effect!

Anyway, after reading a few chapters from The Finance of Higher Education: Theory, Research, Policy & Policy, edited by Michael Paulsen and John Smart (2001), on policies and the evolution of financing higher education, I realize that the problem lies among the policies and bureaucratic processes involved in the aid program within the Ministry of Education (MOE) in my home island. First, the application is reviewed by the department then with the board of MOE. There are probably many policies involved in order to determine the award amount, who is awarded, and when the aid is awarded. Only if I knew the exact process in which scholarships and grants are awarded to students, so I can understand why I'm always penalized or at least understand enough to provide a clear explanation to the Cashier's Office so that they can give me a grace period or something and wait for the scholarship to be awarded. Fortunately, being persistent and really wanting a graduate education, I was able to work it out this semester. First, I had to prove my late disbursement of scholarship by providing documentation from scholarship board of the MOE to the university, then repeat the same process with the Student Employment office. I think I need to figure out a way in which the university can acknowledge the scholarship offices with the MOE as third-party sponsors with UH. Hm! Let's see if that's possible! What are the policies to this process, I wonder? Maybe I can bridge the Palau National Scholarship Board and other MOE offices with the UH Manoa system! I wish! Let's just try!

Private Institutions Fail Financial-Responsibility Test

In The Chronicle of Higher Education yesterday, 150 non-profit colleges were reported to have failed the financial-responsibility test. The what? That's what I thought. The Financial-Responsibility Test examines the financial health of an institution, I guess...well, according to the article. The test measures cash flow, deficits, debts, net worth, and budget surplus. The colleges will then have to submit a letter of credit to continue their eligibility in participating in financial aid programs. So my understanding is that the institutions will have to submit a letter that will represent their accountability in the financial aid programs.

This was news to me, however, as I did more research, this issue has been occurring during the previous years and colleges, in the hundreds, have been failing such a test. Basically, institutions--private and public--have been ailing in their financial health status. The financial-responsibility test is stated to protect the students from a failing institutions, meaning that students are to receive quality education in any institution but should be made aware of how their institution is doing financially to meet this need of quality education. But towards the end of the article, students are also notified not to discredit or rule out institutions who have been reported to fail the test because these institutions are not in danger of closing out. I wonder what students will do if they do find out that their institution is going through a financial crisis. Do most of these students even considering such issues as their colleges failing the test? Are they even aware that there is such a test? I didn't even know until I read this article. I think that those who are aware of such an issue will remain attending, but maybe will understand that it may be more challenging to receive federal aid from the institutions. Will an institutions failure in financing operating of the institution affect how the students will receive aid? Maybe. Policies regarding who receives aid and how will probably be re-evaluated and changed. It seems the issue just rolls down from the top and the students end up with most of the consequences to suffer from.

Free Education for Palau...for now

A few weeks ago, in Education Finance class one evening, our whole class got into small groups to present their arguments either in support or against cost-sharing. The class was given a scenario in which we looked closely into the economic and demographic aspects in Ethiopia and its institutions of higher education. By the time it came for my group to present our argument against cost-sharing, I was even more confused in trying to understand how arguing against cost-sharing would be beneficial to the institution in Ethiopia. We ended our argument presented in front of the class and returned to our chairs. I sat down, and only after hearing my group-mates speak on our behalf--I had not said a word--I exclaimed in understanding, "FREE EDUCATION!" Well...I didn't say it quite as loud in exclamation, but I then completely understood what was going on in Ethiopia. Other fellow students and classmates mentioned how free education, instead of cost-sharing, would be a better strategy for the institutions in Ethiopia because economically, people, families, students, and communities are not ready to share the cost of education.


As arguments against cost-sharing in Ethiopian institutions present a similar idea for Palau, Palau is not ready to share the cost in education among the people and organizations of the small island nation. Palau proclaimed its independence from the United States in 1994 and signed the Compact of Free Association (CFA). The CFA allows continual ties with the United States and provision of resources--i.e., financial and [intelligence]--to aid in the development of Palau. Although Palau claims independence, apparently, Palau remains underdeveloped and dependent on foreign aid. Minimum wage is significantly low while cost of living is moving upward due to the people adopting to a more westernized way of living.This strongly suggest that Palau is definitely not ready to share the cost of education in higher education.


There are more public schools that make up the education system of Palau. There is only one institution of higher education. Palau Community College (PCC) offers associate degrees in majors such as liberal arts, tourism, office administration, environmental studies, and even vocational degrees. It is a post-secondary vocational/academic school accredited by the Western Association of Schools and Colleges. In a press release dated in June (2011), Frankie Reed, Deputy Assistant Secretary of the Senate Committee on Energy and Natural Resources of the United States, highlights the underlining meaning behind the relationship established between the United States and the Republic of Palau under the Compact of Free Association (CFA). Reed is basically presenting an argument as to why this relationship should continue during this review of the CFA. Once again, Palau  receives a trust fund from the United States to improve development as well as continue in eligibility in federal programs and agencies, such as the US Postal services and Federal Financial Aid for students of Palau attending institutions in higher education.


Johnstone and Marcucci (2010) lists characteristics of low income countries that define Palau: inequality of wealth and income, poor schools and low industrialization, and "dependence on donor nations and organizations" (p. 260-261). These all, in turn, define higher education in developing nations, such as Palau, with lower higher educational standard and inadequate learning resources. The authors mention that there is great resistance in cost-sharing in these nations. Well...because the nations cannot afford school. Palauan people, most of them, cannot send their children to school and pay the full amount of tuition. Right now, I believe Palau needs free education. It has no choice. The question is whether the people and the island can continue to win the heart of the people of the United States in order for the Palauan people to attend schools in the US and receive a higher education.