; or (B) undue administrative burdens on the Governor. (3) Further adjustments Notwithstanding paragraphs (1) and (2), the Governor may prioritize the making or amount of tuition and fee payments under this subsection based on the income and need of eligible students. (d) Definitions In this subpart: (1) Eligible institution The term eligible institution means an institution that— (A) is a public four-year institution of higher education located in one of the several States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or Guam; (B) is eligible to participate in the student financial assistance programs under title IV; and (C) enters into an agreement with the Governors of the Northern Mariana Islands and American Samoa containing such conditions as each Governor may specify, including a requirement that the institution use the funds made available under this section to supplement and not supplant assistance that otherwise would be provided to eligible students from the Northern Mariana Islands and American Samoa. (2) Eligible student The term eligible student means an individual who— (A) graduated from a public institution of higher education located in the Northern Mariana Islands or American Samoa; (B) begins the individual’s course of study within the 3 calendar years (excluding any period of service on active duty in the Armed Forces or service under the Peace Corps Act ( 22 U.S.C. 2501 et seq.) or subtitle D of title I of the National and Community Service Act of 1990 ( 42 U.S.C. 12571 et seq.)) of graduation from a public institution of higher education located in the Northern Mariana Islands or American Samoa; (C) is enrolled or accepted for enrollment, on at least a half-time basis, in a baccalaureate degree or other program (including a program of study abroad approved for credit by the institution at which such student is enrolled) leading to a recognized educational credential at an eligible institution