; and (B) ratably reduce the amount of the sum of such loan authority of all participating institutions not described in subparagraph (A). (c) Adjusted self-Help need amount For the purposes of subsection (b)(1)(A), the Secretary shall calculate the adjusted self-help need amount of each eligible institution for an award year as follows: (1) Use of base self-help need amounts (A) In general Except as provided in paragraphs (2), (3), and (4), the adjusted self-help need amount of each eligible institution shall be the institution’s base self-help need amount, which is the sum of— (i) the self-help need of the institution’s eligible undergraduate students for such award year; and (ii) the self-help need of the institution’s eligible graduate and professional students for such award year. (B) Undergraduate student self-help need To determine the self-help need of an institution’s eligible undergraduate students, the Secretary shall determine the sum of each eligible undergraduate student’s average cost of attendance for the second preceding award year less each such student’s expected family contribution (computed in accordance with part F) for the second preceding award year, except that, for each such eligible undergraduate student, the amount computed by such subtraction shall not be less than zero or more than the lesser of— (i) 25 percent of the average cost of attendance with respect to such eligible student; or (ii) $5,500. (C) Graduate and professional student self-help need To determine the self-help need of an institution’s eligible graduate and professional students, the Secretary shall determine the sum of each eligible graduate and professional student’s average cost of attendance for the second preceding award year less each such student’s expected family contribution (computed in accordance with part F) for such second preceding award year, except that, for each such eligible graduate and professional student, the amount computed by such subtraction shall not be— (i) less than zero