(1) If the sums appropriated for any fiscal year pursuant to section
1810 (a)(2) of this title for grants under section
1807 of this title are not sufficient to pay in full the total amount which approved applicants are eligible to receive under such section for such fiscal year
(A) the Secretary shall first allocate to each such applicant which received funds under section
1807 of this title for the preceding fiscal year an amount equal to 95 percent of the payment received by such applicant under section
1808 of this title;
(B) the Secretary shall next allocate to applicants who did not receive funds under such section for the preceding fiscal year an amount equal to 100 per centum of the product of
(i) the per capita payment for the preceding fiscal year; and
(ii) the applicants projected Indian
student count for the academic year for which payment is being made;
in the order in which such applicants have qualified for assistance in accordance with such section so that no amount shall be allocated to a later qualified applicant until each earlier qualified applicant is allocated an amount equal to such product; and
(C) if additional funds remain after making the allocations required by subparagraphs (A) and (B), the Secretary shall allocate such funds by
(i) ratably increasing the amounts of the grants determined under subparagraph (A) until such grants are equal to 100 per centum of the product described in such subparagraph; and
(ii) then ratably increasing the amounts of both
(I) the grants determined under subparagraph (A), as increased under clause (i) of this subparagraph, and
(II) the grants determined under subparagraph (B).
(2) For purposes of paragraph (1) of this subsection, the term per capita payment for any fiscal year shall be determined by dividing the amount available for grants to tribally controlled colleges or universities under section
1807 of this title for such fiscal year by the sum of the Indian
student counts of such colleges or universities for such fiscal year. The Secretary shall, on the basis of the most satisfactory data available, compute the Indian
student count for any fiscal year for which such count was not used for the purpose of making allocations under this subchapter.