---
kind: "section"
citation: "46 U.S.C. § 51509"
title: "46"
title_heading: "Shipping"
number: "51509"
heading: "Student incentive payment agreements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/51509"
units:
  - "Subtitle V — Merchant Marine"
  - "Part B — Merchant Marine Service"
  - "Chapter 515 — State Maritime Academy Support Program"
---

# §51509. Student incentive payment agreements

- (a) **General Authority.—** If a [State maritime academy](/usc/46/51102.md?p=4) has an [agreement](/usc/46/53201.md?p=8) with the [Secretary](/usc/46/53101.md?p=8) of Transportation under [section 51505 of this title](/usc/46/51505.md), the [Secretary](/usc/46/53101.md?p=8) may make an [agreement](/usc/46/53201.md?p=8) with a student at the [academy](/usc/46/51102.md?p=1) who is a citizen of the [United States](/usc/46/53101.md?p=10) to make student incentive payments to the individual. An [agreement](/usc/46/53201.md?p=8) with a student may not be effective for more than 4 academic years. The [Secretary](/usc/46/53101.md?p=8) shall allocate payments under this section among the various [State maritime academies](/usc/46/51102.md?p=4) in an equitable manner.
- (b) **Payments.—**
  - (1) **In general.—** Except as provided in [paragraph (2)](#b-2), payments under an [agreement](/usc/46/53201.md?p=8) under this section shall be equal to $16,000 each academic year and be paid in such installments as the [Secretary](/usc/46/53101.md?p=8) shall determine while the individual is attending the [academy](/usc/46/51102.md?p=1), as prescribed by the [Secretary](/usc/46/53101.md?p=8).
  - (2) **Exception.—** The [Secretary](/usc/46/53101.md?p=8) may modify the payments made to an individual under [paragraph (1)](#b-1), but the total amount of payments to that individual may not exceed $64,000.
  - (3) **Authorized uses.—** The payments shall be used for uniforms, tuition, books, and subsistence.
- (c) **Enlisted Reserve Status.—** An [agreement](/usc/46/53201.md?p=8) under this section shall require the student to accept enlisted reserve status in the Navy Reserve (including the Strategic Sealift Officer Program, Navy Reserve) or the [Coast Guard](/usc/46/2101.md?p=2) Reserve before receiving any payments under the [agreement](/usc/46/53201.md?p=8).
- (d) **Agreement Requirements.—** An [agreement](/usc/46/53201.md?p=8) under this section shall require the student to—
  - (1) complete the course of instruction at the [academy](/usc/46/51102.md?p=1) the individual is attending;
  - (2) obtain a merchant mariner license, without limitation as to tonnage or horsepower, from the [Coast Guard](/usc/46/2101.md?p=2) as an officer in the merchant marine of the [United States](/usc/46/53101.md?p=10), accompanied by the appropriate national and international endorsements and certification required by the [Coast Guard](/usc/46/2101.md?p=2) for service aboard [vessels](/usc/46/53501.md?p=9) on domestic and international voyages, without limitation, within three months of completion of the course of instruction at the [academy](/usc/46/51102.md?p=1) the individual is attending;
  - (3) for at least 6 years after graduation from the [academy](/usc/46/51102.md?p=1), maintain—
    - (A) a valid merchant mariner license, unlimited as to horsepower or tonnage, issued by the [Coast Guard](/usc/46/2101.md?p=2) as an officer in the merchant marine of the [United States](/usc/46/53101.md?p=10), accompanied by the appropriate national and international endorsements and certifications required by the [Coast Guard](/usc/46/2101.md?p=2) for service aboard [vessels](/usc/46/53501.md?p=9) on domestic and international voyages, without limitation;
    - (B) a valid transportation worker identification credential; and
    - (C) a [Coast Guard](/usc/46/2101.md?p=2) medical certificate;
  - (4) apply for, and accept, if tendered, an appointment as a commissioned officer in the Navy Reserve (including the Strategic Sealift Officer Program, Navy Reserve), the [Coast Guard](/usc/46/2101.md?p=2) Reserve, or any other reserve component of an armed force of the [United States](/usc/46/53101.md?p=10), and, if tendered the appointment, to serve and meet the participation requirements and to maintain active status in good standing, as determined by the program manager of the appropriate military service, for at least 8 years after the date of commissioning;
  - (5) serve the foreign and domestic commerce and the national defense of the [United States](/usc/46/53101.md?p=10) for at least 3 years after graduation from the [academy](/usc/46/51102.md?p=1)—
    - (A) as a [merchant marine officer](/usc/46/51102.md?p=3) on a documented [vessel](/usc/46/53501.md?p=9) or a [vessel](/usc/46/53501.md?p=9) owned and operated by the [United States](/usc/46/53101.md?p=10) Government or by a State;
    - (B) as an employee in a [United States](/usc/46/53101.md?p=10) maritime-related industry, profession, or marine science (as determined by the [Secretary](/usc/46/53101.md?p=8)), if the [Secretary](/usc/46/53101.md?p=8) determines that service under [subparagraph (A)](#d-5-A) is not available to the individual;
    - (C) as a commissioned officer on active duty in an armed force of the [United States](/usc/46/53101.md?p=10), as a commissioned officer in the National Oceanic and Atmospheric Administration, or in other maritime-related Federal employment which serves the national security interests of the [United States](/usc/46/53101.md?p=10), as determined by the [Secretary](/usc/46/53101.md?p=8); or
    - (D) by a combination of the service alternatives referred to in [subparagraphs (A)](#d-5-A)–(C); and
  - (6) report to the [Secretary](/usc/46/53101.md?p=8) on compliance with this subsection.
- (e) **Failure To Complete Course of Instruction.—**
  - (1) **Active duty.—**
    - (A) **In general.—** The [Secretary](/usc/46/53101.md?p=8) of Defense may order an individual to serve on active duty in the armed forces of the [United States](/usc/46/53101.md?p=10) for a period of not more than 2 years if—
      - (i) the individual has attended an [academy](/usc/46/51102.md?p=1) under this section for more than 2 academic years, but less than 3 academic years;
      - (ii) the individual has accepted the payments described in [subsection (b)](#b) in an amount totaling at least $8,000; and
      - (iii) the [Secretary](/usc/46/53101.md?p=8) of Transportation has determined that the individual has failed to fulfill the part of the [agreement](/usc/46/53201.md?p=8) described in [subsection (d)(1)](#d-1).
    - (B) **3 or more years.—** The [Secretary](/usc/46/53101.md?p=8) of Defense may order an individual to serve on active duty in the armed forces of the [United States](/usc/46/53101.md?p=10) for a period of not more than 3 years if—
      - (i) the individual has attended an [academy](/usc/46/51102.md?p=1) under this section for 3 or more academic years;
      - (ii) the individual has accepted the payments described in [subsection (b)](#b) in an amount totaling at least $16,000; and
      - (iii) the [Secretary](/usc/46/53101.md?p=8) of Transportation has determined that the individual has failed to fulfill the part of the [agreement](/usc/46/53201.md?p=8) described in [subsection (d)(1)](#d-1).
    - (C) **Hardship waiver.—** In cases of hardship as determined by the [Secretary](/usc/46/53101.md?p=8) of Transportation, the [Secretary](/usc/46/53101.md?p=8) of Transportation may waive this paragraph in whole or in part.
  - (2) **Recovery of cost.—** If the [Secretary](/usc/46/53101.md?p=8) of Defense is unable or unwilling to order an individual to serve on active duty under [paragraph (1)](#e-1), or if the [Secretary](/usc/46/53101.md?p=8) of Transportation determines that reimbursement of the [cost of education provided](/usc/46/51102.md?p=2) would better serve the interests of the [United States](/usc/46/53101.md?p=10), the [Secretary](/usc/46/53101.md?p=8) of Transportation may recover from the individual the amount of student incentive payments, plus interest and attorney fees. The [Secretary](/usc/46/53101.md?p=8) may reduce the amount to be recovered to reflect partial performance of service [obligations](/usc/46/53701.md?p=9) and other factors the [Secretary](/usc/46/53101.md?p=8) determines merit a reduction.
- (f) **Failure To Carry Out Other Requirements.—**
  - (1) **Active duty.—** If the [Secretary](/usc/46/53101.md?p=8) of Transportation determines that an individual has failed to fulfill any part of the [agreement](/usc/46/53201.md?p=8) described in [subsection (d)(2)](#d-2)–(6), the individual may be ordered to serve on active duty for a period of at least 2 years but not more than the unexpired period (as determined by the [Secretary](/usc/46/53101.md?p=8)) of the service required by [subsection (d)(5)](#d-5). The [Secretary](/usc/46/53101.md?p=8) of Transportation, in consultation with the [Secretary](/usc/46/53101.md?p=8) of Defense, shall determine in which service the individual shall serve. In cases of hardship as determined by the [Secretary](/usc/46/53101.md?p=8) of Transportation, the [Secretary](/usc/46/53101.md?p=8) of Transportation may waive this paragraph in whole or in part.
  - (2) **Recovery of cost.—** If the [Secretary](/usc/46/53101.md?p=8) of Defense is unable or unwilling to order an individual to serve on active duty under [paragraph (1)](#f-1), or if the [Secretary](/usc/46/53101.md?p=8) of Transportation determines that reimbursement of the [cost of education provided](/usc/46/51102.md?p=2) would better serve the interests of the [United States](/usc/46/53101.md?p=10), the [Secretary](/usc/46/53101.md?p=8) of Transportation may recover from the individual the amount of student incentive payments, plus interest and attorney fees. The [Secretary](/usc/46/53101.md?p=8) may reduce the amount to be recovered to reflect partial performance of service [obligations](/usc/46/53701.md?p=9) and other factors the [Secretary](/usc/46/53101.md?p=8) determines merit a reduction.
- (g) **Actions To Recover Cost.—** To aid in the recovery of the [cost of education provided](/usc/46/51102.md?p=2) by the Government under a commitment [agreement](/usc/46/53201.md?p=8) under this section, the [Secretary](/usc/46/53101.md?p=8) of Transportation may—
  - (1) request the Attorney General to bring a civil action against the individual; and
  - (2) make use of the Federal debt collection procedures in [chapter 176](/usc/28/chptVI/ch176.md) of title 28 or other applicable administrative remedies.
- (h) **Alternative Service.—**
  - (1) **Service as commissioned officer.—** An individual who, for the 5-year period following graduation from an [academy](/usc/46/51102.md?p=1), serves as a commissioned officer on active duty in an armed force of the [United States](/usc/46/53101.md?p=10) or as a commissioned officer of the National Oceanic and Atmospheric Administration or the Public Health Service shall be excused from the requirements of paragraphs [(3)](#d-3) through [(5)](#d-5) of subsection (d).
  - (2) **Modification or waiver.—** The [Secretary](/usc/46/53101.md?p=8) may modify or waive any of the terms and conditions set forth in [subsection (d)](#d) through the imposition of alternative service requirements.
- (i) **Age Requirement.—** The [Secretary](/usc/46/53101.md?p=8) may make an [agreement](/usc/46/53201.md?p=8) under this section only with a qualified student who will meet the age requirement for enlistment or commission in the Navy Reserve at the time of graduation from the [academy](/usc/46/51102.md?p=1).

## Source credit

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1579; Pub. L. 109–163, div. A, title V, § 515(g)(2)(A), Jan. 6, 2006, 119 Stat. 3236; Pub. L. 109–364, div. C, title XXXV, § 3508, Oct. 17, 2006, 120 Stat. 2517; Pub. L. 110–181, div. C, title XXXV, §§ 3523(a)(1), (b), 3526(d), (g), Jan. 28, 2008, 122 Stat. 598, 600, 602; Pub. L. 110–417, div. C, title XXXV, § 3503, Oct. 14, 2008, 122 Stat. 4762; Pub. L. 111–8, div. I, title I, § 177, Mar. 11, 2009, 123 Stat. 944; Pub. L. 111–84, div. C, title XXXV, § 3507, Oct. 28, 2009, 123 Stat. 2721; Pub. L. 114–92, div. C, title XXXV, § 3507, Nov. 25, 2015, 129 Stat. 1221; Pub. L. 118–7, § 2, June 30, 2023, 137 Stat. 52; Pub. L. 118–31, div. C, title XXXV, § 3501(b), Dec. 22, 2023, 137 Stat. 808.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 51509(a) | 46 App.:1295c(g)(1) (words before 5th comma, cl. (A)), (8). | June 29, 1936, ch. 858, title XIII, § 1304(g)(1)–(5), (8), as added Pub. L. 96–453, § 2, Oct. 15, 1980, 94 Stat. 2004, 2006; Pub. L. 97–31, § 12(145)(A), Aug. 6, 1981, 95 Stat. 166; Pub. L. 101–115, § 2(a)–(d), Oct. 13, 1989, 103 Stat. 691; Pub. L. 102–587, title VI, § 6201(a)(1), (b), (c), Nov. 4, 1992, 106 Stat. 5093; Pub. L. 108–136, title XXXV, § 3515(d), Nov. 24, 2003, 117 Stat. 1794. |
| 51509(b) | 46 App.:1295c(g)(1) (words between 5th comma and dash, cls. (B), (C)). |  |
| 51509(c) | 46 App.:1295c(g)(2) |  |
| 51509(d) | 46 App.:1295c(g)(3) |  |
| 51509(e) | 46 App.:1295c(g)(4) |  |
| 51509(f) | 46 App.:1295c(g)(5) |  |
| 51509(g) | 46 App.:1295c(g)(6) |  |

In subsection (a), the text of 46 App. U.S.C. 1295c(g)(8) is omitted as obsolete.

In subsection (g), the words “bring a civil action” are substituted for “begin court proceedings” for consistency in the revised title and with rule 2 of the Federal Rules of Civil Procedure (28 App. U.S.C.).

### Editorial Notes

### Amendments

2023—Subsec. (b)(1). Pub. L. 118–31, § 3501(b)(1), substituted “$16,000” for “$8,000”.

Subsec. (b)(2). Pub. L. 118–31, § 3501(b)(2), substituted “$64,000” for “$32,000”.

Subsec. (i). Pub. L. 118–7 added subsec. (i).

2015—Subsec. (b). Pub. L. 114–92, § 3507(1), designated first sentence as par. (1) and last sentence as par. (3), inserted headings, realigned margins, in par. (1), substituted “Except as provided in paragraph (2), payments” for “Payments”, and added par. (2).

Subsec. (c). Pub. L. 114–92, § 3507(2), substituted “Strategic Sealift Officer Program” for “Merchant Marine Reserve”.

Subsec. (d)(2). Pub. L. 114–92, § 3507(3)(A), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “take the examination for a license as an officer in the merchant marine of the United States before graduation from the academy and fulfill the requirements for such a license within 3 months after graduation from the academy;”.

Subsec. (d)(3). Pub. L. 114–92, § 3507(3)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “maintain a valid license as an officer in the merchant marine of the United States for at least 6 years after graduation from the academy, accompanied by the appropriate national and international endorsements and certification required by the Coast Guard for service aboard vessels on domestic and international voyages;”.

Subsec. (d)(4). Pub. L. 114–92, § 3507(3)(C), amended par. (4) generally. Prior to amendment, par. (4) read as follows: “accept, if tendered, an appointment as a commissioned officer in the Navy Reserve (including the Merchant Marine Reserve, Navy Reserve), the Coast Guard Reserve, or any other reserve unit of an armed force of the United States, and, if tendered the appointment, to serve for at least 6 years after graduation from the academy;”.

Subsec. (e)(1). Pub. L. 114–92, § 3507(4), amended par. (1) generally. Prior to amendment, text read as follows: “If the Secretary of Transportation determines that an individual who has accepted the payments described in subsection (b) for a minimum of 2 academic years has failed to fulfill the part of the agreement described in subsection (d)(1), the individual may be ordered by the Secretary of Defense to serve on active duty in the armed forces of the United States for a period of not more than 2 years. In cases of hardship as determined by the Secretary of Transportation, the Secretary of Transportation may waive this paragraph in whole or in part.”

Subsec. (h). Pub. L. 114–92, § 3507(5), added subsec. (h).

2009—Pub. L. 111–84, § 3507(a), substituted “and be paid in such installments as the Secretary shall determine” for “and be paid before the start of each academic year, as prescribed by the Secretary,” and “academy, as prescribed by the Secretary.” for “academy.”.

Pub. L. 111–8, § 177, which directed amendment identical to that made by Pub. L. 110–417, § 3503(1), (2), was repealed by Pub. L. 111–84, § 3507(b), with Pub. L. 111–8, § 177, to have no force or effect. See 2008 Amendment note below.

2008—Pub. L. 110–181, § 3526(g), repealed Pub. L. 109–364, § 3508. See 2006 Amendment note below.

Pub. L. 110–181, § 3523(b), repealed Pub. L. 109–163, § 515(g)(2)(A). See 2006 Amendment note below.

Subsec. (b). Pub. L. 110–417, § 3503(3), inserted “before the start of each academic year” after “and be paid”.

Pub. L. 110–417, § 3503(1), (2), substituted “$8,000” for “$4,000” and inserted “tuition,” after “uniforms,”.

Subsec. (c). Pub. L. 110–181, § 3526(d), incorporated the substance of the amendments by Pub. L. 109–364, § 3508, into this section by striking out “Midshipman and” before “Enlisted” in heading and “midshipman and” before “enlisted” in text and inserting “or the Coast Guard Reserve” after “Reserve)”. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.

Pub. L. 110–181, § 3523(a)(1), incorporated the substance of the amendments by Pub. L. 109–163, § 515(g)(2)(A), into this section by substituting “Navy Reserve” for “Naval Reserve” in two places. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.

Subsec. (d)(4). Pub. L. 110–181, § 3523(a)(1), incorporated the substance of the amendments by Pub. L. 109–163, § 515(g)(2)(A), into this section by substituting “Navy Reserve” for “Naval Reserve” in two places. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.

2006—Pub. L. 109–364, § 3508, which directed the amendment of section 1295c(g)(2) of the former Appendix to this title from which subsec. (c) of this section was derived, was repealed by Pub. L. 110–181, § 3526(g). See 2008 Amendment note for subsec. (c) and Historical and Revision notes above.

Pub. L. 109–163, § 515(g)(2)(A), which directed the amendment of section 1295c of the former Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3523(b). See 2008 Amendment notes for subsecs. (c) and (d)(4) and Historical and Revision notes above.