To provide an education loan repayment program for chaplains in the Selected Reserve.

1. Adds SEC. 653. EDUCATION LOAN REPAYMENT PROGRAM FOR CHAPLAINS IN THE SELECTED RESERVE at the end of subtitle E of title VI

   Adds a section

   In S. 1042 · Placed on Calendar Senate

   (ii) would assist such members in establishing habits of financial responsibility during their initial enlistments in the Armed Forces.

   Inserted: SEC. 653. EDUCATION LOAN REPAYMENT PROGRAM FOR CHAPLAINS IN THE SELECTED RESERVE.

   Inserted: (a) In General.--Chapter 1609 of title 10, United States Code, is amended by adding at the end the following new section:

   Inserted: "Sec. 16303. Education loan repayment program: chaplains serving in the Selected Reserve

   Inserted: "(a) Authority To Repay Education Loans.--Under regulations prescribed by the Secretary of Defense and subject to the provisions of this section, the Secretary concerned may, for purposes of maintaining adequate numbers of chaplains in the Selected Reserve, repay a loan that--

   Inserted: "(1) was used by a person described in subsection (b) to finance education resulting in a Masters of Divinity degree; and

   Inserted: "(2) was obtained from an accredited theological seminary as listed in the Association of Theological Schools (ATS) handbook.

   Inserted: "(b) Eligible Persons.--(1) Except as provided in paragraph (2), a person described in this subsection is a person who--

   Inserted: "(A) satisfies the requirements specified in subsection (c);

   Inserted: "(B) holds, or is fully qualified for, an appointment as a chaplain in a reserve component of an armed force; and

   Inserted: "(C) signs a written agreement to serve not less than three years in the Selected Reserve.

   Inserted: "(2) A person accessioned into the Chaplain Candidate Program is not eligible for the repayment of loans under subsection (a).

   Inserted: "(c) Academic and Professional Requirements.--The requirements specified in this subsection are such requirements for accessioning and commissioning of chaplains as are prescribed by the Secretary concerned in regulations.

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   Inserted: "(d) Loan Repayment.--(1) Subject to paragraph (2), the repayment of a loan under this section may consist of payment of the principal, interest, and related expenses of such loan.

   Inserted: "(2) The amount of any repayment of a loan made under this section on behalf of a person may not exceed $20,000 for each three year period of obligated service that the person agrees to serve in an agreement described in subsection (b)(3). Of such amount, not more than an amount equal to 50 percent of such amount may be paid before the completion by the person of the first year of obligated service pursuant to such agreement. The balance of such amount shall be payable at such time or times as are prescribed by the Secretary concerned in regulations.

   Inserted: "(e) Effect of Failure To Complete Obligation.--A person on behalf of whom repayment of a loan is made under this section who fails, during the period of obligated service the person agrees to serve in an agreement described in subsection (b)(3), to serve satisfactorily in the Selected Reserve may, at the election of the Secretary concerned, be required to pay the United States an amount equal to any amount of repayments made on behalf of the person in connection with the agreement.".

   Inserted: (b) Clerical Amendment.--The table of sections at the beginning of chapter 1609 of such title is amended by adding at the end the following new item:

   Inserted: "16303. Education loan repayment program: chaplains serving in the Selected Reserve.".

   Original wording

   At the end of subtitle E of title VI, add the following:

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As printed