; and (ii) with respect to any of the 3 most recent institutional fiscal years for which the institution submits to the Secretary disclosures on the expenditures of the institution on instruction for purposes of section 132(i)(1)(AA), the amount expended by such institution on instruction for such fiscal year is less than 1/3 of the institution’s revenues derived from tuition and fees. (B) Threshold rates For purposes of determinations under subparagraph (A)(i), the Secretary shall specify 1 or more threshold on-time repayment rates, which rates— (i) shall require that a significant percentage of students who have been in repayment for 3 years on a covered loan received for attendance at an institution of higher education have paid at least 90 percent of the monthly payments on such covered loan during such 3-year repayment period; and (ii) may be applicable with respect to a period of 1 or more fiscal years, as determined appropriate for such a rate. (C) Exceptions for certain categories of educational programs (i) Exceptions for certain categories of educational programs With respect to an institution that loses eligibility to participate in a program under this title in accordance with paragraph (1), such institution may request and be granted an exception to such loss of eligibility for a category of educational programs at such institution by demonstrating to the Secretary that the on-time loan repayment rate for such category of educational programs is greater than the threshold percentage specified under paragraph (1)(B) for each fiscal year of the period on which such loss of eligibility for the institution is based. (ii) Determinations In determining the on-time loan repayment rate for a category of educational programs, subsection (a)(1) shall be applied— (I) in subparagraph (A), by substituting received for enrollment in the category of educational programs for which such rate is being determined for received for attendance at the institution