; and (II) the expenditures per full-time equivalent eligible student, including the Federal allotment and non-Federal share, under section 901 for the preceding award year for the State (or, in the case of a State that did not receive a grant under such section for the preceding award year, the amount needed to eliminate tuition and required fees for full-time equivalent eligible students in the State, calculated in the same manner as such amount is calculated under section 901(c) for the preceding award year for the State), at— (aa) if the eligible institution is a 2-year institution, community colleges in the State in which the institution operates; or (bb) if the eligible institution is a 4-year institution, public 4-year institutions of higher education in the State in which the institution operates; and (ii) with respect to an eligible institution that operates in a State that has not eliminated tuition and required fees as described in paragraphs (2) and (3) of section 901(d) for the preceding award year, more than the amount equal to the product of— (I) the number of projected full-time equivalent eligible students for the award year; and (II) the average tuition and required fees for the preceding award year at— (aa) if the eligible institution is a 2-year institution, public 2-year institutions of higher education in the State in which the institution operates