; (ii) a justification of the reason why the eligible entity seeks to receive the waiver described in paragraph (5)(A), including estimates or documentation of the potential savings to the entity of receiving such waiver; and (iii) a description of how the eligible entity plans to share the financial risk with the Secretary of receiving the waivers described in paragraph (5), such as by— (I) providing matching non-Federal funds to the Secretary to cover the cost of at least half of the expected disbursements under this title to the students that enroll in such program for the first year of the experiment; (II) providing a letter of credit to the Secretary to cover the cost described in subclause (I); or (III) requesting to be placed on a reimbursement system of payment. (4) Selection No later than 6 months after the experimental site initiative is announced, the Secretary shall select eligible entities to participate in the initiative based on the applications submitted under paragraph (3). In making such selections, the Secretary— (A) shall consider— (i) the number and quality of applications; (ii) each applicant’s ability to effectively share the financial risk as required under paragraph (3)(B)(iii); and (iii) in the case of an applicant that is an institution of higher education, the applicant’s history of compliance with the requirements of this Act; (B) shall ensure that the selected eligible entities represent a variety of eligible entities with respect to size, mission, and geographic distribution; (C) shall ensure that the number of eligible entities selected that are institutions of higher education described in paragraph (2)(B) is equal to the number of eligible entities selected that are educational providers described in paragraph (2)(B)