degree-seeking students who enrolled at the institution for the first-time in a full-time capacity for each of such 3 preceding academic years and who received a Federal Pell Grant for each of such 3 preceding academic years. If the institution has an average percentage that is less than the threshold mark described in paragraph (2)(B)(ii) for the academic year for which the institution was included in the report under subparagraph (A)(ii) that triggered such determination, the Secretary shall impose on such institution a penalty described in subparagraph (E). (E) Penalties (i) In general The Secretary shall impose a penalty under this paragraph in an amount determined under this subparagraph. (ii) Amount of penalty (I) In general The penalty to be imposed under this subparagraph with respect to an institution shall be a fee-per-student penalty, in which the number of additional students determined with respect to such institution under subclause (II) for an academic year is multiplied by the institution's average student-related expenditure for the academic year. (II) Number of additional students to be determined With respect to an institution of higher education that is subject to the penalty under this subparagraph, the Secretary shall determine the total number of additional students the institution would need to enroll over 3 years as Federal Pell Grant recipients to meet the threshold mark described in paragraph (2)(B)(ii). Such number shall be calculated by determining the percentage equal to subtracting the average percentage determined under subparagraph (C)(ii) from the threshold mark described in paragraph (2)(B)(ii) for the academic year for which the institution was included in the report under subparagraph (A)(ii) that triggered such determination, and multiplying such determined percentage by the number of bachelor's degree-seeking students who enrolled at the institution for the first-time in a full-time capacity for an academic year over the 3 preceding academic years. (iii) Collection of