Student incentive payment agreements

Section 51509 of title 46, United States Code, is amended— (1) in subsection (b)— (A) by striking paragraphs (1) and (2) and inserting the following: (1) In general Payments under an agreement under this section shall be— (A) paid in amounts as determined by the Secretary, but shall not exceed 50 percent of the average total of the in-state cost of attendance charged by all State maritime academies for a four-year merchant marine officer preparation program; (B) paid in such installments as the Secretary shall determine while the individual is attending the academy; and (C) allocated among the State maritime academies as prescribed by the Secretary.; (B) by redesignating paragraph (3) as paragraph (2); and (C) in paragraph (2), as so redesignated, by striking uniforms, tuition, books, and subsistence and inserting the cost of attendance at the Academy; (2) in subsection (e)(1)— (A) in subparagraph (A)(ii) by striking $8,000 and inserting 10 percent of the agreed upon amount; and (B) in subparagraph (B)(ii) by striking $16,000 and inserting 25 percent of the agreed upon amount; and (3) by inserting after subsection (i) the following: (j) Eligibility for additional payments A student who receives a payment pursuant to this section shall not be eligible for payments under section 51708 of this title until the student has fulfilled the obligated 3 years of service under subsection (d)(5). (k) Funding availability Not to exceed 10 percent of the amounts appropriated for any fiscal year for payments authorized under this section may be transferred or reprogrammed and made available for the purpose of making payments authorized under sections 51512, 51513, and 51708, as determined by the Secretary. (l) Cost of attendance defined In this section, the term cost of attendance means tuition, room and board costs, fees, books, and uniforms..