; and (B) the number of eligible students enrolled in the eligible institution for the preceding year. (2) Subsequent increases For each succeeding year after the first year of the grant program under this section, each participating eligible institution shall receive a grant in the amount determined under paragraph (1) for such year, except that in no case shall the amount of the per-student rebate increase by more than 3 percent as compared to the amount of such rebate for the preceding year. (3) Limitations (A) Maximum per-student rebate No eligible institution participating in the grant program under this section shall receive a per-student rebate amount for a grant year greater than the national average of public four-year institutional tuition and fees, as determined by the Secretary. (B) First-year tuition and fees During the first year of participation in the grant program under this section, no eligible institution may increase tuition and fees at a rate greater than any annual increase made by the institution in the previous 5 years. (d) Application An eligible institution shall submit an application to the Secretary at such time, in such a manner, and containing such information as determined by the Secretary. (e) Use of funds Funds awarded under this section to a participating eligible institution shall be used to waive or significantly reduce tuition and fees for eligible students in an amount of not more than up to the annual per-student rebate amount for each student, for not more than the first 60 credits an eligible student enrolls in the participating eligible institution. 499J. Definitions In this subpart: (1) Eligible student (A) Definition The term eligible student means a student, regardless of age, who— (i) (I) enrolls in a historically black college or university, or minority-serving institution; or (II) transfers from a community college into a historically black college or university, or minority-serving institution