; or (ii) is below the projected enrollment that was used for determining the allotment under paragraph (1) for the preceding award year, notwithstanding any other provision of this Act, the grant amount for the subsequent award year for the eligible institution shall be decreased to reflect such actual enrollment, which figure shall be increased by the average interest rate on 5-year United States Treasury securities issued during the preceding award year. (b) Application An eligible institution that desires to receive a grant under this subpart shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (c) Transfer requirement In the case of an eligible institution that is a 4-year institution that receives a grant under this subpart and enrolls students who transfer from another institution, the institution shall— (1) commit to increasing the transferability of individual courses within certificate or associate programs offered by community colleges in the State to related baccalaureate programs offered by such institution to maximize the transferability of credits for students who transfer before completing an associate degree; and (2) maintain a formal, statewide articulation agreement with community colleges in the State in which such institution operates that, at a minimum, ensures that associate degrees awarded by community colleges in the State are fully transferable to, and credited as the first 2 years of related baccalaureate programs at, such institution. (d) Use of funds (1) In general An eligible institution that receives a grant under this subpart shall use the grant funds to— (A) except as provided in paragraph (3), eliminate tuition and required fees for eligible students enrolled in the eligible institution during any period for which the institution receives a grant under this subpart