; and (2) by adding at the end the following: (k) Default rate fine (1) In general Each institution described in paragraph (2) shall pay to the Secretary a default rate fine in accordance with this subsection. (2) Applicable institutions An institution shall pay a default rate fine under this subsection for a fiscal year based on the cohort default rate on loans made, insured, or guaranteed under this title for such fiscal year. (3) Fine (A) In general Each institution described in paragraph (2) shall pay a default rate fine for a fiscal year that is equal to 10 percent of the applicable amount determined under subparagraph (B)(i) for such fiscal year. (B) Applicable amount (i) In general The applicable amount for a fiscal year with respect to an institution shall be an amount equal to the product of the amount of loans made, insured, or guaranteed under this title for such fiscal year, and the applicable rate determined in clause (ii). If the applicable rate is equal to or less than zero percent then the applicable amount shall be equal to zero. (ii) Applicable rate The applicable rate for a fiscal year with respect to an institution shall be the rate that is equal to the difference between the default rate on loans made, insured, or guaranteed under this title for such fiscal year and the average rate of total unemployment in the United States for such fiscal year, as determined by the Secretary of Labor. (4) Credit for certain institutions Each institution that is described in paragraph (2) shall receive a $400 credit for the fiscal year for each graduate of the institution during such fiscal year who received a Federal Pell Grant while enrolled at the institution. (5) Flexibility in counsel and advice Notwithstanding any other provision of the Act, the Secretary shall grant institutions of higher education flexibility under this Act to counsel and advise students on Federal financial aid, including granting flexibility for institutions to award less than the maximum amount of Federal student aid for which an