the amounts appropriated to carry out this section 
for a fiscal year for loans to undergraduate students 
attending State maritime academies receiving assist-
ance under chapter 515 of this title. 
‘‘(2) ACADEMIC STANDARDS FOR STUDENTS.— 
Students at State maritime academies receiving 
loans under the program shall maintain satisfactory 
progress toward the completion of their course of 
study as evidenced by the maintenance of a cumu-
lative C average, or its equivalent, or academic 
standing consistent with the requirements for grad-
uation, as determined by the institution. 
‘‘(g) LOAN AMOUNTS AND USE.— 
‘‘(1) MAXIMUM AMOUNTS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
not make loans to a student under the program 
in an amount that exceeds $30,000 in a cal-
endar year or $120,000 in the aggregate. 
‘‘(B) ADJUSTMENT FOR INFLATION.—The 
Secretary shall, every 5 years for the life of a 
loan under the program, adjust the maximum 
amounts described in subparagraph (A) in ac-
cordance with any change in the Consumer 
Price Index for All Urban Consumers published 
by the Bureau of Labor Statistics of the De-
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partment of Labor that occurs since the pre-
vious adjustment. 
‘‘(2) USE OF LOAN PROCEEDS.—A student who 
receives a loan under the program may use the pro-
ceeds of the loan only for postsecondary expenses in-
curred at an institution designated by the Secretary 
under subsection (d)(4) for books, tuition, required 
fees, travel to and from training facilities, and room 
and board. 
‘‘(h) STUDENT ELIGIBILITY.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
to be eligible to receive a loan under the program, 
a student shall— 
‘‘(A) be eligible to hold a license or mer-
chant mariner document issued by the Coast 
Guard; 
‘‘(B) provide to the Secretary such infor-
mation as the Secretary may require, including 
all current Coast Guard documents, certifi-
cations, proof of United States citizenship or 
permanent legal status, and a statement of in-
tent to enter a maritime career; 
‘‘(C) meet the enrollment requirements of 
a maritime training institution designated by 
the Secretary under subsection (d)(4); and 
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‘‘(D) sign an agreement to— 
‘‘(i) complete a course of instruction 
at such a maritime training institution; 
and 
‘‘(ii) maintain a license or document 
and work under the authority of the license 
or document and any associated endorse-
ments for at least 18 months following the 
date of graduation from the maritime pro-
gram for which the loan proceeds will be 
used. 
‘‘(2) LIMITATION.—An undergraduate student 
at the United States Merchant Marine Academy 
shall not be eligible for a loan under the program. 
‘‘(i) ADMINISTRATION OF LOANS.— 
‘‘(1) CONTENTS OF LOAN AGREEMENTS.—Any 
agreement between the Secretary and a student bor-
rower for a loan under the program shall— 
‘‘(A) be evidenced by a note or other writ-
ten instrument that provides for the repayment 
of the principal amount of the loan and any 
origination fee, together with interest thereon, 
in equal installments (or, if the student bor-
rower so requests, in graduated periodic install-
ments determined in accordance with such 
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schedules as may be approved by the Secretary) 
payable quarterly, bimonthly, or monthly, at the 
option of the student borrower, over a period 
beginning 9 months from the date on which the 
student borrower completes study or discon-
tinues attendance at the maritime program for 
which the loans are used at the institution ap-
proved by the Secretary and not exceeding 10 
years; 
‘‘(B) include provision for acceleration of 
repayment of the whole, or any part, of such 
loan, at the option of the student borrower; 
‘‘(C) provide the loan without security and 
without endorsement; 
‘‘(D) provide that the liability to repay the 
loan shall be canceled upon the death of the 
student borrower, or if the student borrower be-
comes permanently and totally disabled, as de-
termined in accordance with regulations to be 
issued by the Secretary; 
‘‘(E) contain a notice of the system of dis-
closure of information concerning default on 
such loan to credit bureau organizations; and 
‘‘(F) include provisions for deferral of re-
payment, as determined by the Secretary. 
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‘‘(2) RATE OF INTEREST.—A student borrower 
who receives a loan under the program shall be obli-
gated to repay the loan amount to the Secretary, to-
gether with interest beginning in the period referred 
to in paragraph (1)(A), at a rate of interest deter-
mined by the Secretary, in consultation with the 
Secretary of Education, in accordance with section 
455 of the Higher Education Act of 1965 (20 
U.S.C. 1087e). 
‘‘(3) DISCLOSURE
REQUIRED
PRIOR
TO
DIS-
BURSEMENT.— 
‘‘(A) IN GENERAL.—The Secretary shall at 
or prior to the time the Secretary makes a loan 
to a student borrower under the program, pro-
vide thorough and adequate loan information on 
such loan to the student borrower. The disclo-
sures required by this paragraph may be made 
as part of the written application material pro-
vided to the student borrower, as part of the 
promissory note evidencing the loan, or on a 
separate written form provided to the student 
borrower. 
‘‘(B) CONTENTS.—The disclosures shall 
include— 
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‘‘(i) the address to which communica-
tions and payments should be sent; 
‘‘(ii) the principal amount of the loan; 
‘‘(iii) the amount of any charges col-
lected at or prior to the disbursal of the 
loan and whether such charges are to be 
deducted from the proceeds of the loan or 
paid separately by the student borrower; 
‘‘(iv) the stated interest rate on the 
loan; 
‘‘(v) the yearly and cumulative max-
imum amounts that may be borrowed; 
‘‘(vi) an explanation of when repay-
ment of the loan will be required and when 
the student borrower will be obligated to 
pay interest that accrues on the loan; 
‘‘(vii) a statement as to the minimum 
and maximum repayment term that the 
Secretary may impose, and the minimum 
monthly payment required by law and a 
description of any penalty imposed as a 
consequence of default, such as liability for 
expenses reasonably incurred in attempts 
by the Secretary to collect on a loan; 
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‘‘(viii) a statement of the total cumu-
lative balance, including the loan applied 
for, owed by the student borrower to the 
Secretary, and an estimate of the projected 
monthly payment, given such cumulative 
balance; 
‘‘(ix) an explanation of any special op-
tions the student borrower may have for 
loan consolidation or other refinancing of 
the loan; 
‘‘(x) a statement that the student bor-
rower has the right to prepay all or part 
of the loan, at any time, without penalty; 
‘‘(xi) a statement summarizing cir-
cumstances in which repayment of the loan 
or interest that accrues on the loan may be 
deferred, and a brief notice of the program 
for repayment of loans, on the basis of 
military service, pursuant to the Depart-
ment of Defense educational loan repay-
ment program (10 U.S.C. 16302); 
‘‘(xii) a definition of default and the 
consequences to the student borrower if 
the student borrower defaults, together 
with a statement that the disbursement of, 
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and the default on, a loan under this part 
shall be reported to a credit bureau or 
credit reporting agency; 
‘‘(xiii) to the extent practicable, the 
effect of accepting the loan on the eligi-
bility of the student borrower for other 
forms of student assistance; and 
‘‘(xiv) an explanation of any cost the 
student borrower may incur in the making 
or collection of the loan. 
‘‘(C) INFORMATION
TO
BE
PROVIDED 
WITHOUT
COST.—The information provided 
under this paragraph shall be available to the 
Secretary without cost to the student borrower. 
‘‘(4) REPAYMENT AFTER DEFAULT.—The Sec-
retary may require any student borrower who has 
defaulted on a loan made under the program to— 
‘‘(A) pay all reasonable collection costs as-
sociated with such loan; and 
‘‘(B) repay the loan pursuant to an income 
contingent repayment plan. 
‘‘(5) AUTHORIZATION TO REDUCE RATES AND 
FEES.—Notwithstanding any other provision of this 
section, the Secretary may prescribe by regulation 
any reductions in the interest rate or origination fee 
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paid by a student borrower of a loan made under the 
program as the Secretary determines appropriate to 
encourage ontime repayment of the loan. Such re-
ductions may be offered only if the Secretary deter-
mines the reductions are cost neutral and in the best 
financial interest of the United States. 
‘‘(6) COLLECTION OF REPAYMENTS.—The Sec-
retary shall collect repayments made under the pro-
gram and exercise due diligence in such collection, 
including maintenance of all necessary records to en-
sure that maximum repayments are made. Collection 
and servicing of repayments under the program shall 
be pursued to the full extent of the law, including 
wage garnishment if necessary. The Secretary of the 
Department in which the Coast Guard is operating 
shall provide the Secretary of Transportation with 
any information regarding a merchant mariner that 
may aid in the collection of repayments under this 
section. 
‘‘(7) REPAYMENT SCHEDULE.—A student bor-
rower who receives a loan under the program shall 
repay the loan quarterly, bimonthly, or monthly, at 
the option of the student borrower, over a period be-
ginning 9 months from the date the student bor-
rower completes study or discontinues attendance at 
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the maritime program for which the loan proceeds 
are used and ending not more than 10 years after 
the date repayment begins. Provisions for deferral of 
repayment shall be determined by the Secretary. 
‘‘(8) CONTRACTS FOR SERVICING AND COLLEC-
TION OF LOANS.—The Secretary may— 
‘‘(A) enter into a contract or other ar-
rangement with State or nonprofit agencies 
and, on a competitive basis, with collection 
agencies for servicing and collection of loans 
under this section; and 
‘‘(B) conduct litigation necessary to carry 
out this section. 
‘‘(j) REVOLVING LOAN FUND.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a revolving loan fund consisting of amounts 
deposited in the fund under paragraph (2). 
‘‘(2) DEPOSITS.—The Secretary shall deposit in 
the fund— 
‘‘(A) receipts from the payment of prin-
cipal and interest on loans made under the pro-
gram; and 
‘‘(B) any other monies paid to the Sec-
retary by or on behalf of individuals under the 
program. 
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‘‘(3) AVAILABILITY OF AMOUNTS.—Amounts in 
the fund shall be available to the Secretary, without 
further appropriation— 
‘‘(A) to cover the administrative costs of 
the program, including the maintenance of 
records and making collections under this sec-
tion; and 
‘‘(B) to the extent that amounts remain 
available after paying such administrative costs, 
to make loans under the program. 
‘‘(4) MAINTENANCE
OF
RECORDS.—The Sec-
retary shall maintain accurate records of the admin-
istrative costs referred to in paragraph (3)(A). 
‘‘(k) ANNUAL REPORT.—The Secretary, on an an-
nual basis, shall submit to the Committee on Transpor-
tation and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and Transpor-
tation of the Senate a report on the program, including— 
‘‘(1) the total amount of loans made under the 
program in the preceding year; 
‘‘(2) the number of students receiving loans 
under the program in the preceding year; and 
‘‘(3) the total amount of loans made under pro-
gram that are in default as of the date of the report. 
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‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated for each of fiscal years 
2021 through 2026— 
‘‘(1) $10,000,000 for making loans under the 
program; and 
‘‘(2) $1,000,000 for administrative expenses of 
the Secretary in carrying out the program. 
‘‘§ 51708. Merchant mariner recruitment, training, 
and retention program 
‘‘(a) STRATEGIC PLAN.— 
‘‘(1) IN GENERAL.—Not later than one year 
after the date of enactment of this section, and at 
least once every 3 years thereafter, the Secretary of 
Transportation, acting through the Administrator of 
the Maritime Administration, shall publish in the 
Federal Register a plan to recruit, train, and retain 
merchant mariners for the 5-year period following 
the date of publication of the most recently pub-
lished plan under this paragraph. 
‘‘(2) CONTENTS.—A plan published under para-
graph (1) shall contain— 
‘‘(A) a strategy to address merchant mar-
iner recruitment, training, and retention issues 
in the United States; and 
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‘‘(B) demonstration and research priorities 
concerning 
merchant 
mariner 
recruitment, 
training, and retention. 
‘‘(3) FACTORS.—In developing a plan under 
paragraph (1), the Secretary shall take into account, 
at a minimum— 
‘‘(A) the availability of existing research 
(as of the date of publication of the plan); and 
‘‘(B) the need to ensure results that have 
broad applicability. 
‘‘(4) CONSULTATION.—In developing a plan 
under paragraph (1), the Secretary shall consult 
with representatives of the maritime industry, labor 
organizations, including the Commander of the 
Transportation Command and the Commander of 
the Military Sealift Command, and other govern-
mental entities and persons with an interest in the 
maritime industry. 
‘‘(5) TRANSMITTAL TO CONGRESS.—The Sec-
retary shall transmit copies of a plan published 
under paragraph (1) to the Committee on Transpor-
tation and Infrastructure of the House of Represent-
atives and the Committee on Commerce, Science, 
and Transportation of the Senate. 
‘‘(b) DEMONSTRATION AND RESEARCH PROJECTS.— 
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‘‘(1) IN GENERAL.—The Secretary may award 
grants to, or enter into contracts or cooperative 
agreements with, a maritime training institutions 
designated under section 51607(e) or a consortium 
such institutions, to carry out demonstration and re-
search projects that implement the priorities identi-
fied in the plan prepared under subsection (a)(1), 
for the purpose of recruiting, training, or retaining 
United States merchant mariners. 
‘‘(2) COMPETITIVE AWARDS.—Grants shall be 
awarded. and contracts and cooperative agreements 
shall be entered into, under this subsection on a 
competitive basis under guidelines and requirements 
to be established by the Secretary. 
‘‘(3) APPLICATIONS.—To be eligible to receive a 
grant or enter into a contract or cooperative agree-
ment under this section for a project under this sub-
section, a maritime training institution shall submit 
to the Secretary a proposal that includes, at a min-
imum— 
‘‘(A) a description of the project; and 
‘‘(B) a method for evaluating the effective-
ness of the project. 
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‘‘(4) ELIGIBLE PROJECTS.—Projects eligible for 
grants, contracts, and cooperative agreements under 
this subsection— 
‘‘(A) shall carry out the demonstration and 
research priorities included in the plan pub-
lished under subsection (a)(1); and 
‘‘(B) may— 
‘‘(i) provide training to upgrade the 
skills of United States merchant mariners, 
including training to acquire a Standards 
of 
Training, 
Certification 
and 
Watchkeeping endorsement under sub-
chapter B of chapter I of title 46, Code of 
Federal Regulations; 
‘‘(ii) promote the use of distance 
learning that enables students to take 
courses through the use of teleconfer-
encing, the Internet, and other media tech-
nology; 
‘‘(iii) assist in providing services to 
address merchant mariner recruitment and 
training of youth residing in targeted high 
poverty areas within empowerment zones 
and enterprise communities; 
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‘‘(iv) implement partnerships with na-
tional and regional organizations with spe-
cial expertise in developing, organizing, 
and administering merchant mariner re-
cruitment and training services; 
‘‘(v) design, develop, and test an array 
of approaches to providing recruitment, 
training, or retention services, including to 
one or more targeted populations; 
‘‘(vi) in conjunction with employers, 
organized labor, other groups (such as 
community coalitions), and Federal, State, 
or local agencies, design, develop, and test 
various training approaches in order to de-
termine effective practices; or 
‘‘(vii) assist in the development and 
replication of effective service delivery 
strategies for the national maritime indus-
try as a whole. 
‘‘§ 51709. Authorization of appropriations 
‘‘There are authorized to be appropriated for each of 
fiscal years 2021 through 2026— 
‘‘(1) $10,000,000 for making grants and enter-
ing into cooperative agreements under sections 
51707 and 51708; and 
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‘‘(2) $1,000,000 for administrative expenses of 
the Secretary in carrying out such sections.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
such chapter is amended by adding at the end the fol-
lowing: 
‘‘51707. Merchant mariner career training loan program. 
‘‘51708. Merchant mariner recruitment, training, and retention program. 
‘‘51709. Authorization of appropriations.’’. 
Æ 
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