; (B) with a cohort delinquency rate (as determined by the Secretary) for fiscal year 2026 that is 8 percent or more, shall pay to the Secretary a penalty in an amount equal to 24 percent of the total outstanding balance of principle and interest due on all loans under this part that are included in the calculation of such cohort delinquency rate for such fiscal year; and (C) with a cohort underpayment rate (as determined by the Secretary) for fiscal year 2026 that is 7 percent or more, shall pay to the Secretary a penalty in an amount equal to 22 percent of the total outstanding balance of principle and interest due on all loans under this part that are included in the calculation of such cohort underpayment rate for such fiscal year. (4) Fiscal year 2027 A covered institution of higher education— (A) with a cohort default rate (as calculated under section 435(m)) for fiscal year 2027 that is 8 percent or more, shall pay to the Secretary a penalty in an amount equal to 24 percent of the total outstanding balance of principle and interest due on all loans under this part that are included in the calculation of such cohort default rate for such fiscal year; (B) with a cohort delinquency rate (as determined by the Secretary) for fiscal year 2027 that is 7 percent or more, shall pay to the Secretary a penalty in an amount equal to 22 percent of the total outstanding balance of principle and interest due on all loans under this part that are included in the calculation of such cohort delinquency rate for such fiscal year