20 U.S.C. § 1091b — Institutional refunds

Page 661 TITLE 20—EDUCATION § 1091b 1992, 105 Stat. 838, provided that: ‘‘The amendments made by this section [amending this section] shall be effective as if enacted by the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99–272), and shall apply to any actions pending on or after the date of enactment of the Higher Education Technical Amendments of 1991 [Apr. 9, 1991].’’ § 1091b. Institutional refunds (a) Return of subchapter IV funds (1) In general If a recipient of assistance under this sub- chapter withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the amount of grant or loan assistance (other than assistance received under part C) to be re- turned to the subchapter IV programs is cal- culated according to paragraph (3) and re- turned in accordance with subsection (b). (2) Leave of absence (A) Leave not treated as withdrawal In the case of a student who takes 1 or more leaves of absence from an institution for not more than a total of 180 days in any 12-month period, the institution may con- sider the student as not having withdrawn from the institution during the leave of ab- sence, and not calculate the amount of grant and loan assistance provided under this sub- chapter that is to be returned in accordance with this section if— (i) the institution has a formal policy re- garding leaves of absence; (ii) the student followed the institution’s policy in requesting a leave of absence; and (iii) the institution approved the stu- dent’s request in accordance with the in- stitution’s policy. (B) Consequences of failure to return If a student does not return to the institu- tion at the expiration of an approved leave of absence that meets the requirements of subparagraph (A), the institution shall cal- culate the amount of grant and loan assist- ance provided under this subchapter that is to be returned in accordance with this sec- tion based on the day the student withdrew (as determined under subsection (c)). (3) Calculation of amount of subchapter IV as- sistance earned (A) In general The amount of grant or loan assistance under this subchapter that is earned by the recipient for purposes of this section is cal- culated by— (i) determining the percentage of grant and loan assistance under this subchapter that has been earned by the student, as de- scribed in subparagraph (B); and (ii) applying such percentage to the total amount of such grant and loan assistance that was disbursed (and that could have been disbursed) to the student, or on the student’s behalf, for the payment period or period of enrollment for which the assist- ance was awarded, as of the day the stu- dent withdrew. (B) Percentage earned For purposes of subparagraph (A)(i), the percentage of grant or loan assistance under this subchapter that has been earned by the student is— (i) equal to the percentage of the pay- ment period or period of enrollment for which assistance was awarded that was completed (as determined in accordance with subsection (d)) as of the day the stu- dent withdrew, provided that such date oc- curs on or before the completion of 60 per- cent of the payment period or period of en- rollment; or (ii) 100 percent, if the day the student withdrew occurs after the student has completed (as determined in accordance with subsection (d)) 60 percent of the pay- ment period or period of enrollment. (C) Percentage and amount not earned For purposes of subsection (b), the amount of grant and loan assistance awarded under this subchapter that has not been earned by the student shall be calculated by— (i) determining the complement of the percentage of grant assistance under sub- parts 1 and 3 of part A, or loan assistance under parts B, D, and E, that has been earned by the student described in sub- paragraph (B); and (ii) applying the percentage determined under clause (i) to the total amount of such grant and loan assistance that was disbursed (and that could have been dis- bursed) to the student, or on the student’s behalf, for the payment period or period of enrollment, as of the day the student with- drew. (4) Differences between amounts earned and amounts received (A) In general After determining the eligibility of the student for a late disbursement or post-with- drawal disbursement (as required in regula- tions prescribed by the Secretary), the insti- tution of higher education shall contact the borrower and obtain confirmation that the loan funds are still required by the borrower. In making such contact, the institution shall explain to the borrower the borrower’s obligation to repay the funds following any such disbursement. The institution shall document in the borrower’s file the result of such contact and the final determination made concerning such disbursement. (B) Return If the student has received more grant or loan assistance than the amount earned as calculated under paragraph (3)(A), the un- earned funds shall be returned by the insti- tution or the student, or both, as may be re- quired under paragraphs (1) and (2) of sub- section (b), to the programs under this sub- chapter in the order specified in subsection (b)(3). (b) Return of subchapter IV program funds (1) Responsibility of the institution The institution shall return not later than 45 days from the determination of withdrawal, Page 662 TITLE 20—EDUCATION § 1091b in the order specified in paragraph (3), the lesser of— (A) the amount of grant and loan assist- ance awarded under this subchapter that has not been earned by the student, as cal- culated under subsection (a)(3)(C); or (B) an amount equal to— (i) the total institutional charges in- curred by the student for the payment pe- riod or period of enrollment for which such assistance was awarded; multiplied by (ii) the percentage of grant and loan as- sistance awarded under this subchapter that has not been earned by the student, as described in subsection (a)(3)(C)(i). (2) Responsibility of the student (A) In general The student shall return assistance that has not been earned by the student as de- scribed in subsection (a)(3)(C)(ii) in the order specified in paragraph (3) minus the amount the institution is required to return under paragraph (1). (B) Special rule The student (or parent in the case of funds due to a loan borrowed by a parent under part B or D) shall return or repay, as appro- priate, the amount determined under sub- paragraph (A) to— (i) a loan program under this subchapter in accordance with the terms of the loan; and (ii) a grant program under this sub- chapter, as an overpayment of such grant and shall be subject to— (I) repayment arrangements satisfac- tory to the institution; or (II) overpayment collection procedures prescribed by the Secretary. (C) Grant overpayment requirements (i) In general Notwithstanding subparagraphs (A) and (B), a student shall only be required to re- turn grant assistance in the amount (if any) by which— (I) the amount to be returned by the student (as determined under subpara- graphs (A) and (B)), exceeds (II) 50 percent of the total grant assist- ance received by the student under this subchapter for the payment period or pe- riod of enrollment. (ii) Minimum A student shall not be required to return amounts of $50 or less. (D) Waivers of Federal Pell Grant repayment by students affected by disasters The Secretary may waive the amounts that students are required to return under this section with respect to Federal Pell Grants if the withdrawals on which the re- turns are based are withdrawals by stu- dents— (i) who were residing in, employed in, or attending an institution of higher edu- cation that is located in an area in which the President has declared that a major disaster exists, in accordance with section 5170 of title 42; (ii) whose attendance was interrupted because of the impact of the disaster on the student or the institution; and (iii) whose withdrawal ended within the academic year during which the designa- tion occurred or during the next suc- ceeding academic year. (E) Waivers of grant assistance repayment by students affected by disasters In addition to the waivers authorized by subparagraph (D), the Secretary may waive the amounts that students are required to return under this section with respect to any other grant assistance under this subchapter if the withdrawals on which the returns are based are withdrawals by students— (i) who were residing in, employed in, or attending an institution of higher edu- cation that is located in an area in which the President has declared that a major disaster exists, in accordance with section 5170 of title 42; (ii) whose attendance was interrupted because of the impact of the disaster on the student or the institution; and (iii) whose withdrawal ended within the academic year during which the designa- tion occurred or during the next suc- ceeding academic year. (3) Order of return of subchapter IV funds (A) In general Excess funds returned by the institution or the student, as appropriate, in accordance with paragraph (1) or (2), respectively, shall be credited to outstanding balances on loans made under this subchapter to the student or on behalf of the student for the payment period or period of enrollment for which a return of funds is required. Such excess funds shall be credited in the following order: (i) To outstanding balances on loans made under section 1078–8 of this title for the payment period or period of enroll- ment for which a return of funds is re- quired. (ii) To outstanding balances on loans made under section 1078 of this title for the payment period or period of enroll- ment for which a return of funds is re- quired. (iii) To outstanding balances on unsub- sidized loans (other than parent loans) made under part D for the payment period or period of enrollment for which a return of funds is required. (iv) To outstanding balances on sub- sidized loans made under part D for the payment period or period of enrollment for which a return of funds is required. (v) To outstanding balances on loans made under part E for the payment period or period of enrollment for which a return of funds is required. (vi) To outstanding balances on loans made under section 1078–2 of this title for the payment period or period of enroll- Page 663 TITLE 20—EDUCATION § 1091b ment for which a return of funds is re- quired. (vii) To outstanding balances on parent loans made under part D for the payment period or period of enrollment for which a return of funds is required. (B) Remaining excesses If excess funds remain after repaying all outstanding loan amounts, the remaining excess shall be credited in the following order: (i) To awards under subpart 1 of part A for the payment period or period of enroll- ment for which a return of funds is re- quired. (ii) To awards under subpart 3 of part A for the payment period or period of enroll- ment for which a return of funds is re- quired. (iii) To other assistance awarded under this subchapter for which a return of funds is required. (c) Withdrawal date (1) In general In this section, the term ‘‘day the student withdrew’’— (A) is the date that the institution deter- mines— (i) the student began the withdrawal process prescribed by the institution; (ii) the student otherwise provided offi- cial notification to the institution of the intent to withdraw; or (iii) in the case of a student who does not begin the withdrawal process or otherwise notify the institution of the intent to withdraw, the date that is the mid-point of the payment period for which assistance under this subchapter was disbursed or a later date documented by the institution; or (B) for institutions required to take at- tendance, is determined by the institution from such attendance records. (2) Special rule Notwithstanding paragraph (1), if the insti- tution determines that a student did not begin the withdrawal process, or otherwise notify the institution of the intent to withdraw, due to illness, accident, grievous personal loss, or other such circumstances beyond the student’s control, the institution may determine the ap- propriate withdrawal date. (d) Percentage of the payment period or period of enrollment completed For purposes of subsection (a)(3)(B), the per- centage of the payment period or period of en- rollment for which assistance was awarded that was completed, is determined— (1) in the case of a program that is measured in credit hours, by dividing the total number of calendar days comprising the payment pe- riod or period of enrollment for which assist- ance is awarded into the number of calendar days completed in that period as of the day the student withdrew; and (2) in the case of a program that is measured in clock hours, by dividing the total number of clock hours comprising the payment period or period of enrollment for which assistance is awarded into the number of clock hours sched- uled to be completed by the student in that period as of the day the student withdrew. (e) Effective date The provisions of this section shall take effect 2 years after October 7, 1998. An institution of higher education may choose to implement such provisions prior to that date. (Pub. L. 89–329, title IV, § 484B, as added Pub. L. 102–325, title IV, § 485(a), July 23, 1992, 106 Stat. 619; amended Pub. L. 103–208, § 2(h)(26), (27), Dec. 20, 1993, 107 Stat. 2477; Pub. L. 105–244, title IV, § 485, Oct. 7, 1998, 112 Stat. 1737; Pub. L. 109–66, § 2, Sept. 21, 2005, 119 Stat. 1999; Pub. L. 109–67, § 2, Sept. 21, 2005, 119 Stat. 2001; Pub. L. 109–171, title VIII, § 8022, Feb. 8, 2006, 120 Stat. 178.) Editorial Notes PRIOR PROVISIONS A prior section 1091b, Pub. L. 89–329, title V, § 503, as added Pub. L. 90–35, § 2(c), June 29, 1967, 81 Stat. 83; amended Pub. L. 92–318, title IV, § 451(a), June 23, 1972, 86 Stat. 344, authorized the Commissioner to appraise and annually report on existing and future education personnel needs, prior to repeal, effective Sept. 30, 1976, by Pub. L. 94–482, title I, § 151(a)(2), (b), Oct. 12, 1976, 90 Stat. 2151. AMENDMENTS 2006—Subsec. (a)(2)(A). Pub. L. 109–171, § 8022(1), sub- stituted ‘‘1 or more leaves of’’ for ‘‘a leave of’’ in intro- ductory provisions. Subsec. (a)(3)(B)(ii). Pub. L. 109–171, § 8022(2), inserted ‘‘(as determined in accordance with subsection (d))’’ after ‘‘student has completed’’. Subsec. (a)(3)(C)(i). Pub. L. 109–171, § 8022(3), sub- stituted ‘‘grant assistance under subparts 1 and 3 of part A, or loan assistance under parts B, D, and E,’’ for ‘‘grant or loan assistance under this subchapter’’. Subsec. (a)(4)(A). Pub. L. 109–171, § 8022(4), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: ‘‘If the student has received less grant or loan assistance than the amount earned as calculated under subparagraph (A) of para- graph (3), the institution of higher education shall com- ply with the procedures for late disbursement specified by the Secretary in regulations.’’ Subsec. (b)(1). Pub. L. 109–171, § 8022(5), inserted ‘‘not later than 45 days from the determination of with- drawal’’ after ‘‘return’’ in introductory provisions. Subsec. (b)(2)(C). Pub. L. 109–171, § 8022(6), amended heading and text of subpar. (C) generally. Prior to amendment, text read as follows: ‘‘Notwithstanding subparagraphs (A) and (B), a student shall not be re- quired to return 50 percent of the grant assistance re- ceived by the student under this subchapter, for a pay- ment period or period of enrollment, that is the respon- sibility of the student to repay under this section.’’ Subsec. (d). Pub. L. 109–171, § 8022(7), (8), in introduc- tory provisions, substituted ‘‘(a)(3)(B)’’ for ‘‘(a)(3)(B)(i)’’ and, in par. (2), substituted ‘‘clock hours scheduled to be completed by the student in that period as of the day the student withdrew.’’ for ‘‘clock hours— ‘‘(A) completed by the student in that period as of the day the student withdrew; or ‘‘(B) scheduled to be completed as of the day the student withdrew, if the clock hours completed in the period are not less than a percentage, to be deter- mined by the Secretary in regulations, of the hours that were scheduled to be completed by the student in the period.’’ 2005—Subsec. (b)(2)(D). Pub. L. 109–66 added subpar. (D). Page 664 TITLE 20—EDUCATION § 1091c 1 See References in Text note below. Subsec. (b)(2)(E). Pub. L. 109–67 added subpar. (E). 1998—Pub. L. 105–244 amended section catchline and text generally. Prior to amendment, section consisted of subsecs. (a) to (c) requiring each institution of high- er education participating in a program under this sub- chapter to have in effect a fair and equitable refund policy for refunding unearned tuition, fees, room and board, and other charges to students or parents who re- ceived grant or loan assistance under this subchapter. 1993—Subsec. (a). Pub. L. 103–208, § 2(h)(26), sub- stituted ‘‘grant or loan assistance’’ for ‘‘grant, loan, or work assistance’’ in introductory provisions. Subsec. (b)(3). Pub. L. 103–208, § 2(h)(27), substituted ‘‘subsection (c) of this section’’ for ‘‘subsection (d) of this section’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–171 effective July 1, 2006, except as otherwise provided, see section 8001(c) of Pub. L. 109–171, set out as a note under section 1002 of this title. EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see sec- tion 3 of Pub. L. 105–244, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title. § 1091c. Readmission requirements for servicemembers (a) Definition of service in the uniformed serv- ices In this section, the term ‘‘service in the uni- formed services’’ means service (whether vol- untary or involuntary) on active duty in the Armed Forces, including such service by a mem- ber of the National Guard or Reserve. (b) Discrimination against students who serve in the uniformed services prohibited A person who is a member of, applies to be a member of, performs, has performed, applies to perform, or has an obligation to perform, service in the uniformed services shall not be denied re- admission to an institution of higher education on the basis of that membership, application for membership, performance of service, application for service, or obligation. (c) Readmission procedures (1) In general Any student whose absence from an institu- tion of higher education is necessitated by reason of service in the uniformed services shall be entitled to readmission to the institu- tion of higher education if— (A) the student (or an appropriate officer of the Armed Forces or official of the De- partment of Defense) gives advance written or verbal notice of such service to the appro- priate official at the institution of higher education; (B) the cumulative length of the absence and of all previous absences from that insti- tution of higher education by reason of serv- ice in the uniformed services does not exceed five years; and (C) except as otherwise provided in this section, the student submits a notification of intent to reenroll in the institution of higher education in accordance with the pro- visions of paragraph (4). (2) Exceptions (A) Military necessity No notice is required under paragraph (1)(A) if the giving of such notice is pre- cluded by military necessity, such as— (i) a mission, operation, exercise, or re- quirement that is classified; or (ii) a pending or ongoing mission, oper- ation, exercise, or requirement that may be compromised or otherwise adversely af- fected by public knowledge. (B) Failure to give advance notice Any student (or an appropriate officer of the Armed Forces or official of the Depart- ment of Defense) who did not give advance written or verbal notice of service to the ap- propriate official at the institution of higher education in accordance with paragraph (1)(A) may meet the notice requirement by submitting, at the time the student seeks re- admission, an attestation to the student’s institution of higher education that the stu- dent performed service in the uniformed services that necessitated the student’s ab- sence from the institution of higher edu- cation. (3) Applicability This section shall apply to a student who is absent from an institution of higher education by reason of service in the uniformed services if such student’s cumulative period of service in the Armed Forces (including the National Guard or Reserve), with respect to the institu- tion of higher education for which a student seeks readmission, does not exceed five years, except that any such period of service shall not include any service— (A) that is required, beyond five years, to complete an initial period of obligated serv- ice; (B) during which such student was unable to obtain orders releasing such student from a period of service in the uniformed services before the expiration of such five-year period and such inability was through no fault of such student; or (C) performed by a member of the Armed Forces (including the National Guard and Reserves) who is— (i) ordered to or retained on active duty under section 688, 12301(a), 12301(g), 12302, 12304, or 12305 of title 10 or under section 251, 252,1 359, 360, 367, or 712 1 of title 14; (ii) ordered to or retained on active duty (other than for training) under any provi- sion of law because of a war or national emergency declared by the President or the Congress, as determined by the Sec- retary concerned; (iii) ordered to active duty (other than for training) in support, as determined by