on the unpaid principal balance of the loan. (V) Four percent For a loan that is disbursed to a borrower with a total adjusted available income (as determined for the most recent award year for which data is available) that is more than 700 percent of the applicable area median income, 4 percent on the unpaid principal balance of the loan. (ii) Applicable area median income The term applicable area median income — (I) when used with respect to an independent student, means the area median income for the area in which the student resides