; or (B) the percentage of students from an initial cohort enrolled at an institution of higher education in the State that is a 4-year institution who have graduated from the institution. (4) Direct costs The term direct costs means the total cost of all items included in the cost of attendance (as defined in section 472) that are billed to the student by the institution or otherwise required by the institution for enrollment. (5) Eligible entity The term eligible entity means— (A) an institution of higher education that had an enrollment of not fewer than 150 eligible student parents in the most recently completed award year as of the date the determination is made; or (B) a consortium of two or more institutions of higher education that had a total combined enrollment of not fewer than 150 eligible student parents in the most recently completed award year as of the date the determination is made. (6) Eligible student parent The term eligible student parent means a student who— (A) is the parent or guardian of one or more dependent children; (B) is enrolled in an institution of higher education described in subparagraph (A) or (B) of paragraph (5); and (C) (i) is eligible to receive a Federal Pell Grant under section 401 for the award year for which the determination is made; or (ii) meets the financial eligibility criteria for receiving a Federal Pell Grant under section 401 for such award year but is not eligible for a Federal Pell Grant because the student is enrolled in a graduate or first professional course of study. (7) Value-added earnings (A) Calculation With respect to a student who received Federal financial aid under this title and who completed a program of study offered by an institution of higher education, the term value-added earnings means— (i) the annual earnings of such student measured during the applicable earnings measurement period for such program (as determined under subparagraph (C))