I 
111TH CONGRESS 
1ST SESSION H. R. 2651 
To amend title 46, United States Code, to direct the Secretary of Transpor-
tation to establish a maritime career training loan program, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 2, 2009 
Mr. CUMMINGS (for himself, Mr. OBERSTAR, Mr. MICA, and Mr. LOBIONDO) 
introduced the following bill; which was referred to the Committee on 
Transportation and Infrastructure 
A BILL 
To amend title 46, United States Code, to direct the Sec-
retary of Transportation to establish a maritime career 
training loan program, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Maritime Workforce 
Development Act’’. 
SEC. 2. MARITIME EDUCATION LOAN PROGRAM. 
(a) IN GENERAL.—Chapter 517 of title 46, United 
States Code, is amended by adding at the end the fol-
lowing: 
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‘‘§ 51705. Maritime career training loan program 
‘‘(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish a maritime career training loan pro-
gram (in this section referred to as the ‘program’) in ac-
cordance with the requirements of this section. 
‘‘(b) PURPOSE.—The purpose of the program shall 
be to make maritime career training loans available to eli-
gible students to provide for the training of United States 
mariners. 
‘‘(c) ADMINISTRATION.—The program shall be car-
ried out by the Secretary, acting through the Adminis-
trator of the Maritime Administration. 
‘‘(d) DUTIES.—The Secretary shall— 
‘‘(1) allocate, on an annual basis, the award of 
loans under the program based on the needs of stu-
dents; 
‘‘(2) develop an application process and eligi-
bility criteria for the award of loans under the pro-
gram; 
‘‘(3) approve applications for loans under the 
program based on the eligibility criteria and alloca-
tions made under paragraph (1); and 
‘‘(4) designate maritime training institutions at 
which loans made under the program may be used. 
‘‘(e) DESIGNATION OF MARITIME TRAINING INSTITU-
TIONS.— 
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‘‘(1) IN
GENERAL.—In designating maritime 
training institutions under subsection (d)(4), the 
Secretary— 
‘‘(A) may include Federal, State, and com-
mercial training institutions and nonprofit 
training organizations, except that under-
graduate students at the United States Mer-
chant Marine Academy shall not be eligible for 
loans under the program; 
‘‘(B) shall designate institutions based on 
geographic diversity and scope of classes of-
fered; 
‘‘(C) shall ensure that designated institu-
tions have the ability to administer the pro-
gram; and 
‘‘(D) shall ensure that designated institu-
tions meet requirements to provide training in-
struction for appropriate Coast Guard-approved 
training instruction. 
‘‘(2) EXCLUSIONS.—The Secretary— 
‘‘(A) may exclude from participation in the 
program a maritime training institution that 
has had severe performance deficiencies, includ-
ing deficiencies demonstrated by audits or pro-
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gram reviews conducted during the 5 calendar 
years immediately preceding the present year; 
‘‘(B) shall exclude from participation in 
the program a maritime training institution 
that has delinquent or outstanding debts to the 
United States, unless such debts are being re-
paid under or in accordance with a repayment 
arrangement satisfactory to the United States, 
or the Secretary in the Secretary’s discretion 
determines that the existence or amount of any 
such debts has not been finally determined by 
the appropriate Federal agency; 
‘‘(C) may exclude from participation in the 
program a maritime training institution that 
has failed to comply with quality standards es-
tablished by the Department of Labor, the 
Coast Guard, or a State; and 
‘‘(D) may establish such other criteria as 
the Secretary determines will protect the finan-
cial interest of the United States and promote 
the purposes of this section. 
‘‘(f) STATE MARITIME ACADEMIES.— 
‘‘(1) USE OF FUNDS FOR LOANS TO STUDENTS 
ATTENDING
STATE
MARITIME
ACADEMIES.—The 
Secretary may obligate not more than 50 percent of 
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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.—The Secretary may 
not make loans to a student under the program in 
an amount that exceeds $15,000 in a calendar year 
or $60,000 in the aggregate. 
‘‘(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. 
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‘‘(h) STUDENT ELIGIBILITY.—To be eligible to re-
ceive a loan under the program, a student shall— 
‘‘(1) be eligible to hold a license or merchant 
mariner document issued by the Coast Guard; 
‘‘(2) provide to the Secretary such information 
as the Secretary may require, including all current 
Coast Guard documents, certifications, proof of 
United States citizenship or permanent legal status, 
and a statement of intent to enter a maritime ca-
reer; 
‘‘(3) meet the enrollment requirements of a 
maritime training institution designated by the Sec-
retary under subsection (d)(4); and 
‘‘(4) sign an agreement to— 
‘‘(A) complete a course of instruction at 
such a maritime training institution; and 
‘‘(B)(i) maintain a license and serve as an 
officer in the merchant marine on a docu-
mented vessel or a vessel owned and operated 
by the United States for at least 18 months of 
service at sea following the date of graduation 
from the maritime program for which the loan 
proceeds will be used; or 
‘‘(ii) serve as an unlicensed merchant mar-
iner on a documented vessel or a vessel owned 
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and operated by the United States for at least 
18 months of service at sea following the date 
of graduation from the maritime program for 
which the loan proceeds will be used. 
‘‘(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 
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; 
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‘‘(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. 
‘‘(2) RATE OF INTEREST.—A student borrower 
who receives a loan under the program on or after 
January 1, 2010, and before October 1, 2015, shall 
be obligated to repay the loan amount to the Sec-
retary, together with interest beginning in the period 
referred to in paragraph (1)(A), at a rate to be de-
termined as follows: 
‘‘(A) For a loan for which the first dis-
bursement is made on or after January 1, 
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2010, and before October 1, 2011, 5.6 percent 
on the unpaid principal balance of the loan. 
‘‘(B) For a loan for which the first dis-
bursement is made on or after October 1, 2011, 
and before October 1, 2012, 4.5 percent on the 
unpaid principal balance of the loan. 
‘‘(C) For a loan for which the first dis-
bursement is made on or after October 1, 2012, 
3.4 percent on the unpaid principal balance of 
the loan. 
‘‘(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 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 
the maritime program for which the loan proceeds 
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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 
2010 through 2015— 
‘‘(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. 
‘‘§ 51706. Maritime recruitment, training, and reten-
tion grant 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 that describes the dem-
onstration, research, and multistate project priorities 
of the Department of Transportation concerning 
merchant mariner recruitment, training, and reten-
tion for the 3-year period following the date of publi-
cation of the plan. 
‘‘(2) CONTENTS.—A plan published under para-
graph (1) shall contain strategies and identify poten-
tial projects to address merchant mariner recruit-
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ment, training, and retention issues in the United 
States. 
‘‘(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); 
‘‘(B) the need to ensure results that have 
broad applicability; 
‘‘(C) the benefits of economies of scale and 
the efficiency of potential projects; and 
‘‘(D) the likelihood that the results of po-
tential projects will be useful to policymakers 
and stakeholders in addressing merchant mar-
iner recruitment, training, and retention issues. 
‘‘(4) CONSULTATION.—In developing a plan 
under paragraph (1), the Secretary shall consult 
with representatives of the maritime industry, labor 
organizations, and other governmental entities and 
parties 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-
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