; and (2) by adding at the end the following: (d) Institutional risk-Sharing based on loan default (1) In general Beginning with fiscal year 2022, and each succeeding fiscal year, each institution of higher education participating in the direct student loan program under this part shall remit to the Secretary, at such times as the Secretary may specify, an institutional risk-sharing payment, as determined under paragraph (2). (2) Determination of risk-sharing payments (A) Determination of cohort loan balance The cohort loan balance of an institution for a fiscal year equals the total principal amount of all loans made under this part to attend such institution for the cohort of borrowers who entered repayment, deferment, or forbearance on such loans in the third preceding fiscal year for which the determination is made. (B) Determination of cohort nonrepayment loan balance The cohort nonrepayment loan balance of an institution for a fiscal year equals, from the total amount of the loans described in subparagraph (A), the total loan balance of those borrowers who have gone into default in the 3 consecutive fiscal years since their loans entered repayment, deferment, or forbearance. (C) Determination of payment The risk-sharing payment of an institution for a fiscal year shall equal: (i) For the first year after the date of enactment of this Act, an amount equal to 1 percent of the cohort nonrepayment loan balance determined under subparagraph (B). (ii) For the second year after the date of enactment of this Act through the ninth year after the date of enactment of this Act, an amount equal to 2 percent of the cohort nonrepayment loan balance determined under subparagraph (B) through 9 percent of that balance, respectively for each year. (iii) For the tenth year after the date of enactment of this Act, and for any successive year, an amount equal to 10 percent of the cohort nonrepayment loan balance determined under subparagraph (B). . 3. Program integrity (a) Institutional reporting Section 454 of the Higher