; and (bb) that is not a proprietary institution of higher education (as defined in section 102(b)), shall pay to the Secretary for an academic year an amount equal to 25 percent of the total amount of funds made available under subsection (d) to the institution during the 4 academic years preceding the academic year for which the penalty is due under this paragraph. (II) Use of penalties The Secretary shall use the penalty fees under this clause to fund the completion improvement program under subsection (d) and the completion bonus program under subsection (e). (ii) Second penalty year One year after the first academic year for which an institution of higher education that is not a proprietary institution of higher education (as defined in section 102(b)) pays a penalty under clause (i)(I)(bb), the Secretary shall determine the average percentage for such year after such first academic year and the 2 preceding academic years of first-time, full-time bachelor’s degree-seeking students who enrolled at the institution who graduate within 6 years. If such average percentage is less than the threshold mark described in paragraph (2)(B)(ii) for such year after such first academic year, the institution of higher education shall pay to the Secretary for such year after such first academic year an amount equal to 40 percent of the total amount of funds made available under subsection (d) to the institution during the 5 academic years preceding the academic year for which the penalty is due under this clause. The Secretary shall use such penalty fees to fund the completion improvement program under subsection (d) and the completion bonus program under subsection (e). (iii) Third penalty year Two years after the first academic year for which an institution of higher education that is not a proprietary institution of higher education (as defined in section 102(b)) pays a penalty under clause (i)(I)(bb), the Secretary shall determine the average percentage for such second year after such first academic year and the 2