; and (ii) the amount paid on such annual repayment amount as of such day. (B) Increase of annual repayment amount A borrower’s annual repayment amount calculated under subsection (b) for such year shall be increased by the amount of such penalty, but such penalty shall not be treated as a principal or interest amount for a loan made under this part. (C) Exception for meeting the obligation for the previous year A borrower who has paid 100 percent of the borrower’s annual repayment amount for the taxable year preceding the taxable year described in subparagraph (A) shall not be subject to the penalty under this paragraph for the taxable year described in subparagraph (A). (D) De minimis exception A borrower whose annual repayment amount is less than $300 shall not be subject to the penalty under this paragraph for the taxable year described in subparagraph (A). (2) Reconciling underpayments (A) In general If, as of the last day of a taxable year, the sum of the payments made on a borrower’s annual repayment amount for such year is less than the total amount of the borrower’s annual repayment amount for such year, the borrower— (i) in the case of the first year that the borrower has a difference between such amounts— (I) may request, in such manner as the Secretary shall require, that the Secretary reduce the borrower’s annual repayment amount for such year to the sum of— (aa) the payments made, as of such day, on the borrower’s annual repayment amount for such year; and (bb) any penalties calculated under paragraph (1) resulting from such underpayment; and (II) if the borrower qualifies for the reduction requested under subclause (I), shall pay the sum calculated under such subclause at such time and in such manner as required by the Secretary