; (B) with a cohort delinquency rate (as determined by the Secretary) for fiscal year 2029 or any fiscal year thereafter that is 5 percent or more, shall pay to the Secretary a penalty in an amount equal to 18 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 2029 or any fiscal year thereafter that is 4 percent or more, shall pay to the Secretary a penalty in an amount equal to 16 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. (c) Effect on default status of borrower The payment of a penalty under this section by a covered institution of higher education shall have no effect on the rights or obligations of a borrower of a loan that is included in the calculation of the institution’s cohort default rate, cohort delinquency rate, or cohort underpayment rate for purposes of such penalty. (d) Definitions (1) Cohort delinquency rate The term cohort delinquency rate means the percentage of Federal student loan borrowers included in a cohort under subsection (b) who have failed to make payments on one or more of the Federal student loans used for attendance at the institution concerned for between 31 and 360 days (inclusive). (2) Cohort underpayment rate The term cohort underpayment rate , means the percentage of Federal student loan borrowers included in a cohort under subsection (b) who— (A) are making regular payments on the Federal student loans used for attendance at the institution concerned but for whom the sum all outstanding balances of such loans exceeds the sum of the original loan balances