; and (ii) notify the State of its obligation to use non-Federal funds to cancel an amount equal to the difference between the allocation amount determined for the borrower and the amount cancelled under clause (i). (e) Funding There are authorized to be appropriated, and there are appropriated to carry out this section (in addition to any other amounts appropriated to carry out this section and out of any money in the Treasury not otherwise appropriated)— (1) for each of the first and second award years that begin on or after the date of enactment of the State Workforce Incentive Act, an amount equal to 0.01 of the loans made under part D and first disbursed during the preceding award year; (2) for each of the third and fourth award years that begin after the date of enactment of the State Workforce Incentive Act, an amount equal to 0.02 of the loans made under part D and first disbursed during the preceding award year; (3) for each of the fifth and sixth award years that begin after the date of enactment of the State Workforce Incentive Act, an amount equal to 0.03 of the loans made under part D and first disbursed during the preceding award year; and (4) for the seventh award year that begins after the date of enactment of the State Workforce Incentive Act and each succeeding award year, an amount equal to 0.04 of the loans made under part D and first disbursed during the preceding award year. (f) Definitions In this section: (1) Loan repayment credit The term loan repayment credit means a credit for the outstanding balance of principal or interest on eligible Federal loans that shall be cancelled on such loans, at the rate of 1 credit equals $1 of such principal or interest. (2) Eligible Federal loan The term eligible Federal loan means a loan made under part D, other than— (A) a Federal Direct PLUS Loan made on behalf of a dependent student