; and (II) in the case of students enrolled at the institution of higher education or at the institutions of higher education within the system of higher education, as the case may be, on the date of the identification, at another institution of higher education. (ii) Each individual has not had any postsecondary degree or certificate, of any kind, issued to the student by an institution of higher education. (B) Perform a degree audit on each student described in subparagraph (A), and identify each such student as one of the following: (i) Eligible to obtain an associate's degree. (ii) Eligible to obtain an associate's degree upon the completion of 12 or fewer postsecondary credit hours (or the equivalent). (iii) Not eligible under either clause (i) or (ii). (C) Provide outreach to each student identified in subparagraph (B)(i), and award the earned associate's degree to such student, unless such student declines through a written or oral declaration. (D) Provide outreach to each student identified in subparagraph (B)(ii) that includes information regarding next steps toward degree attainment, including financial aid options. (2) Application process An institution of higher education or system of higher education desiring a subgrant under this subsection shall submit an application to the State at such time, in such manner, and containing such information as the State may require. Such application shall include a written commitment from the institution or system that, if the institution or system receives a grant, the institution or system will carry out all of the activities described in paragraph (1). (3) Priority Each State awarding subgrants under this part shall give priority to applications from institutions of higher education or systems of higher education that— (A) have up-to-date degree audit software or systems to increase automation of degree audits and transcript exchange, or a plan to invest and develop such software or systems