the repayments or cancellations under paragraph (1), the total amount repaid by such sponsoring entity with respect to each 12-month period increases. (iii) Interest The Secretary shall cancel or repay the interest that accrues on the total amount of the enrolled loan balance under paragraph (1)(A), regardless of whether an exception under clause (ii) applies with respect to such an enrolled loan balance. (C) Default In the case of a borrower for which a sponsoring entity (or a combination of such sponsoring entities) offers to provide loan cancellation or repayment under this subsection and subsequently defaults on such offer, such borrower may not be held responsible for repayment of the amount such sponsoring entity (or a combination of such sponsoring entities) offered to provide such borrower. (D) Rules of construction Nothing in this subsection shall preclude— (i) the Secretary from establishing a process to financially assist a sponsoring entity (or a combination of such sponsoring entities) that defaults on loan cancellation or repayment (as described in subparagraph (C)) so long as such process does not hold a borrower responsible for any repayments with respect to such a default