; (B) completes a Free Application for Federal Student Aid; and (C) demonstrates satisfactory academic progress, as defined under the Federal Pell Grant program under subpart 1 of part A, once enrolled in a public institution of higher education in the State in which the individual resides. (5) Full-time equivalent students The term full-time equivalent students means the sum of the number of students enrolled full time at an institution, plus the full-time equivalent of the number of students enrolled part time, which shall be defined and calculated in the manner determined most appropriate by the Secretary. (6) Net State operating support The term net State operating support means an amount that is equal to the amount of State funds and local government appropriations used to support public higher education annual operating expenses in the State, calculated in accordance with subparagraphs (A) and (B). (A) Calculation A State’s net State operating support shall, for a fiscal year, be an amount that is equal to the difference resulting from the gross amount of State funds appropriated and disbursed by the State and expended by the recipient institutions in the fiscal year for public higher education operating expenses in the State, minus— (i) such appropriations that are returned to the State; (ii) State-appropriated funds derived from Federal sources, including funds provided under this part; (iii) local government funds not appropriated for operating support for public higher education; (iv) amounts that are portions of multi-year appropriations to be distributed over multiple years that are not to be spent for the year for which the calculation is being made; (v) tuition charges remitted to the State to offset State appropriations; (vi) State funding for students in non-credit continuing or adult education courses and non-credit extension courses