; and (II) determine the average percentage over the 3 succeeding academic years (as determined under clause (ii)) following the hold harmless academic years described in clause (i) of first-time, full-time bachelor's degree-seeking students who enrolled at the institution who graduate within 6 years. (ii) Under-resourced years In determining the 3 succeeding academic years under clause (i)(II), the Secretary shall skip any academic year that succeeds an academic year for which less than $25,000,000 is collected under subsection (b)(3)(E). (D) Failure to improve (i) In general Except as provided in clause (ii) or paragraph (1)(B), if an institution of higher education has an average percentage determined under subparagraph (C)(i)(II) that is less than the applicable threshold mark described in paragraph (2)(B)(ii), the Secretary shall impose on such institution a penalty described in subparagraph (E). (ii) Delay of penalty (I) In general The Secretary may delay imposing a penalty described in subparagraph (E) with respect to an institution that has an average percentage determined under subparagraph (C)(i)(II) that is less than the applicable threshold mark described in paragraph (2)(B)(ii), but whose percentage determined for the most recent academic year is at or above such threshold mark. (II) Period of delay The Secretary may delay imposing a penalty under subclause (I) for a period of not more than 2 years. (III) New average With respect to an institution for which the Secretary delays imposing a penalty under this clause for a period of not more than 2 years, the Secretary, at the end of such delay period, shall determine the average percentage over the 3 preceding years of first-time, full-time bachelor's degree-seeking students who enrolled at the institution who graduate within 6 years. If the institution has an average percentage that is less than the threshold mark described in paragraph (2)(B)(ii), the Secretary shall impose on such institution a penalty described in subparagraph (E). (E) Penalties