§ 1091b. Institutional refunds

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1992

   Higher Education Act of 1965

   Pub. L. 89–329 title IV § 484B · 79 Stat. 1219

   Enacted · 20 U.S.C. § 1091b

   Pub. L. 89–329, title IV, § 484B, as added Pub. L. 102–325, title IV, § 485(a), July 23, 1992, 106 Stat. 619

   Source evidence

   Code source credit
   Pub. L. 89–329, title IV, § 484B, as added Pub. L. 102–325, title IV, § 485(a), July 23, 1992, 106 Stat. 619

2. 1993

   Higher Education Technical Amendments of 1993

   Pub. L. 103–208 § 2(h)(26) · 107 Stat. 2457

   Substituted · 20 U.S.C. § 1091b(a)

   Pub. L. 103–208, § 2(h)(26), substituted “grant or loan assistance” for “grant, loan, or work assistance” in introductory provisions

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 103–208, § 2(h)(26), substituted “grant or loan assistance” for “grant, loan, or work assistance” in introductory provisions.

   Enacted provision · exact public law section
   (26) in section 484B(a), by striking “grant, loan, or work 20 USC 1091b. assistance” and inserting “grant or loan assistance”;

3. 1993

   Higher Education Technical Amendments of 1993

   Pub. L. 103–208 § 2(h)(27) · 107 Stat. 2457

   Substituted · 20 U.S.C. § 1091b(b)(3)

   Pub. L. 103–208, § 2(h)(27), substituted “subsection (c) of this section” for “subsection (d) of this section”

   Source evidence

   Code amendment note
   Subsec. (b)(3). Pub. L. 103–208, § 2(h)(27), substituted “subsection (c) of this section” for “subsection (d) of this section”.

   Enacted provision · exact public law section
   (27) in section 484B(b)(3), by striking “subsection (d)” and inserting “subsection (c)”;

4. 1998

   Higher Education Amendments of 1998

   Pub. L. 105–244 title IV § 485 · 112 Stat. 1581

   Amended · 20 U.S.C. § 1091b

   Pub. L. 105–244 amended section catchline and text generally. Prior to amendment, section consisted of subsecs. (a) to (c) requiring each institution of higher education participating in a program under this subchapter 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 received grant or loan assistance under this subchapter

   Source evidence

   Code amendment note
   Pub. L. 105–244 amended section catchline and text generally. Prior to amendment, section consisted of subsecs. (a) to (c) requiring each institution of higher education participating in a program under this subchapter 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 received grant or loan assistance under this subchapter.

   Enacted provision · exact public law section
   SEC. 485. INSTITUTIONAL REFUNDS. Section 484B (20 U.S.C. 1091b) is amended to read as follows: “SEC. 484B. INSTITUTIONAL REFUNDS. “(a) Return of Title IV Funds.— “(1) In general.— If a recipient of assistance under this title 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 returned to the title IV programs is calculated according to paragraph (3) and returned in accordance with subsection (b). “(2) Leave of absence.— “(A) Leave not treated as withdrawal.— In the case of a student who takes a leave of absence from an institution for not more than a total of 180 days in any 12month period, the institution may consider the student as not having withdrawn from the institution during the leave of absence, and not calculate the amount of grant and loan assistance provided under this title that is to be returned in accordance with this section if— “(i) the institution has a formal policy regarding leaves of absence; “(ii) the student followed the institution’s policy in requesting a leave of absence; and “(iii) the institution approved the student’s request in accordance with the institution’s policy. “(B) Consequences of failure to return.— If a student does not return to the institution at the expiration of an approved leave of absence that meets the requirements of subparagraph (A), the institution shall calculate the amount of grant and loan assistance provided under this title that is to be returned in accordance with this section based on the day the student withdrew (as determined under subsection (c)). “(3) Calculation of amount of title iv assistance earned.— “(A) In general.— The amount of grant or loan assistance under this title that is earned by the recipient for purposes of this section is calculated by— “(i) determining the percentage of grant and loan assistance under this title that has been earned by the student, as described 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 assistance was awarded, as of the day the student withdrew. “(B) Percentage earned.— For purposes of subparagraph (A)(i), the percentage of grant or loan assistance under this title that has been earned by the student is— “(i) equal to the percentage of the payment 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 student withdrew, provided that such date occurs on or before the completion of 60 percent of the payment period or period of enrollment; or “(ii) 100 percent, if the day the student withdrew occurs after the student has completed 60 percent of the payment 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 title that has not been earned by the student shall be calculated by— “(i) determining the complement of the percentage of grant or loan assistance under this title that has been earned by the student described in subparagraph(B); and “(ii) applying the percentage determined underclause (i) 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, as of the day the student withdrew. “(4) Differences between amounts earned and amounts received.— “(A) In general.— If the student has received less grant or loan assistance than the amount earned as calculated under subparagraph (A) of paragraph (3), the institution of higher education shall comply with the procedures for late disbursement specified by the Secretary in regulations. “(B) Return.— If the student has received more grant or loan assistance than the amount earned as calculated under paragraph (3)(A), the unearned funds shall be returned by the institution or the student, or both, as may be required under paragraphs (1) and (2) of subsection(b), to the programs under this title in the order specified in subsection (b)(3). “(b) Return of Title IV Program Funds.— “(1) Responsibility of the institution.— The institution shall return, in the order specified in paragraph (3), the lesser of— “(A) the amount of grant and loan assistance awarded under this title that has not been earned by the student, as calculated under subsection (a)(3)(C); or “(B) an amount equal to— “(i) the total institutional charges incurred by the student for the payment period or period of enrollment for which such assistance was awarded; multiplied by “(ii) the percentage of grant and loan assistance awarded under this title 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 described 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 appropriate, the amount determined under subparagraph (A) to— “(i) a loan program under this title in accordance with the terms of the loan; and “(ii) a grant program under this title, as an overpayment of such grant and shall be subject to— “(I) repayment arrangements satisfactory to the institution; or “(II) overpayment collection procedures prescribed by the Secretary. “(C) Requirement.— Notwithstanding subparagraphs (A) and (B), a student shall not be required to return 50 percent of the grant assistance received by the student under this title, for a payment period or period of enrollment, that is the responsibility of the student to repay under this section. “(3) Order of return of title 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 title 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 428H for the payment period or period of enrollment for which a return of funds is required. “(ii) To outstanding balances on loans made under section 428 for the payment period or period of enrollment for which a return of funds is required. “(iii) To outstanding balances on unsubsidized 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 subsidized 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 428B for the payment period or period of enrollment for which a return of funds is required. “(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 enrollment for which a return of funds is required. “(ii) To awards under subpart 3 of part A for the payment period or period of enrollment for which a return of funds is required. “(iii) To other assistance awarded under this title 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 determines— “(i) the student began the withdrawal process prescribed by the institution; “(ii) the student otherwise provided official 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 title was disbursed or a later date documented by the institution; or “(B) for institutions required to take attendance, is determined by the institution from such attendance records. “(2) Special rule.— Notwithstanding paragraph (1), if the institution 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 appropriate withdrawal date. “(d) Percentage of the Payment Period or Period of Enrollment Completed.— For purposes of subsection (a)(3)(B)(i), the percentage of the payment period or period of enrollment 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 period or period of enrollment for which assistance 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— “(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 Regulations. withdrew, if the clock hours completed in the period are not less than a percentage, to be determined by the Secretary in regulations, of the hours that were scheduled to be completed by the student in the period. “(e) Effective Date.— The provisions of this section shall take effect 2 years after the date of enactment of the Higher Education Amendments of 1998. An institution of higher education may choose to implement such provisions prior to that date.”.

5. 2005

   Pell Grant Hurricane and Disaster Relief Act

   Pub. L. 109–66 § 2 · 119 Stat. 1999

   Added · 20 U.S.C. § 1091b(b)(2)(D)

   Pub. L. 109–66 added subpar. (D)

   Source evidence

   Code amendment note
   Subsec. (b)(2)(D). Pub. L. 109–66 added subpar. (D).

   Enacted provision · exact public law section
   SEC. 2. WAIVERS OF FEDERAL PELL GRANT REPAYMENT BY STUDENTS AFFECTED BY DISASTERS.   Section 484B(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 1091b(b)(2)) is amended by adding at the end the following new subparagraph: “(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 returns are based are withdrawals by students— “(i) who were residing in, employed in, or attending an institution of higher education that is located in an area in which the President has declared that a major disaster exists, in accordance with section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170); “(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 designation occurred or during the next succeeding academic year.” .

6. 2005

   Student Grant Hurricane and Disaster Relief Act

   Pub. L. 109–67 § 2 · 119 Stat. 2001

   Added · 20 U.S.C. § 1091b(b)(2)(E)

   Pub. L. 109–67 added subpar. (E)

   Source evidence

   Code amendment note
   Subsec. (b)(2)(E). Pub. L. 109–67 added subpar. (E).

   Enacted provision · exact public law section
   SEC. 2. WAIVERS OF STUDENT GRANT ASSISTANCE REPAYMENT BY STUDENTS AFFECTED BY DISASTERS.   Section 484B(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 1091b(b)(2)) is amended by adding at the end the following new subparagraph: “(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 title 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 education that is located in an area in which the President has declared that a major disaster exists, in accordance with section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170); “(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 designation occurred or during the next succeeding academic year.” .

7. 2006

   Higher Education Reconciliation Act of 2005

   Pub. L. 109–171 § 8022(1) · 120 Stat. 4

   Substituted · 20 U.S.C. § 1091b(a)(2)(A)

   Pub. L. 109–171, § 8022(1), substituted “1 or more leaves of” for “a leave of” in introductory provisions

   Source evidence

   Code amendment note
   Subsec. (a)(2)(A). Pub. L. 109–171, § 8022(1), substituted “1 or more leaves of” for “a leave of” in introductory provisions.

   Enacted provision · exact public law section
   (1) in the matter preceding clause (i) of subsection (a)(2)(A), by striking “a leave of” and inserting “1 or more leaves of”;

   Effective date note
   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.

8. 2006

   Higher Education Reconciliation Act of 2005

   Pub. L. 109–171 § 8022(2) · 120 Stat. 4

   Inserted · 20 U.S.C. § 1091b(a)(3)(B)(ii)

   Pub. L. 109–171, § 8022(2), inserted “(as determined in accordance with subsection (d))” after “student has completed”

   Source evidence

   Code amendment note
   Subsec. (a)(3)(B)(ii). Pub. L. 109–171, § 8022(2), inserted “(as determined in accordance with subsection (d))” after “student has completed”.

   Enacted provision · exact public law section
   (2) in subsection (a)(3)(B)(ii), by inserting “(as determined in accordance with subsection (d))” after “student has completed”;

   Effective date note
   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.

9. 2006

   Higher Education Reconciliation Act of 2005

   Pub. L. 109–171 § 8022(3) · 120 Stat. 4

   Substituted · 20 U.S.C. § 1091b(a)(3)(C)(i)

   Pub. L. 109–171, § 8022(3), substituted “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”

   Source evidence

   Code amendment note
   Subsec. (a)(3)(C)(i). Pub. L. 109–171, § 8022(3), substituted “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”.

   Enacted provision · exact public law section
   (3) in subsection (a)(3)(C)(i), by striking “grant or loan assistance under this title” and inserting “grant assistance under subparts 1 and 3 of part A, or loan assistance under parts B, D, and E,”;

   Effective date note
   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.

10. 2006

    Higher Education Reconciliation Act of 2005

    Pub. L. 109–171 § 8022(4) · 120 Stat. 4

    Amended · 20 U.S.C. § 1091b(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 paragraph (3), the institution of higher education shall comply with the procedures for late disbursement specified by the Secretary in regulations.”

    Source evidence

    Code amendment note
    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 paragraph (3), the institution of higher education shall comply with the procedures for late disbursement specified by the Secretary in regulations.”

    Enacted provision · exact public law section
    (4) in subsection (a)(4), by amending subparagraph (A) to read as follows: “(A) In general.— After determining the eligibility of the student for a late disbursement or post-withdrawal disbursement (as required in regulations prescribed by the Secretary), the institution 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.” ;

    Effective date note
    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.

11. 2006

    Higher Education Reconciliation Act of 2005

    Pub. L. 109–171 § 8022(5) · 120 Stat. 4

    Inserted · 20 U.S.C. § 1091b(b)(1)

    Pub. L. 109–171, § 8022(5), inserted “not later than 45 days from the determination of withdrawal” after “return” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 109–171, § 8022(5), inserted “not later than 45 days from the determination of withdrawal” after “return” in introductory provisions.

    Enacted provision · exact public law section
    (5) in subsection (b)(1), by inserting “not later than 45 days from the determination of withdrawal” after “return”;

    Effective date note
    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.

12. 2006

    Higher Education Reconciliation Act of 2005

    Pub. L. 109–171 § 8022(6) · 120 Stat. 4

    Amended · 20 U.S.C. § 1091b(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 required to return 50 percent of the grant assistance received by the student under this subchapter, for a payment period or period of enrollment, that is the responsibility of the student to repay under this section.”

    Source evidence

    Code amendment note
    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 required to return 50 percent of the grant assistance received by the student under this subchapter, for a payment period or period of enrollment, that is the responsibility of the student to repay under this section.”

    Enacted provision · exact public law section
    (6) in subsection (b)(2), by amending subparagraph (C) to read as follows: “(C) Grant overpayment requirements.— “(i) In general.— Notwithstanding subparagraphs (A) and (B), a student shall only be required to return grant assistance in the amount (if any) by which— “(I) the amount to be returned by the student (as determined under subparagraphs (A) and (B)), exceeds “(II) 50 percent of the total grant assistance received by the student under this title for the payment period or period of enrollment. “(ii) Minimum.— A student shall not be required to return amounts of $50 or less.” ;

    Effective date note
    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.

13. 2006

    Higher Education Reconciliation Act of 2005

    Pub. L. 109–171 § 8022(7) · 120 Stat. 4

    1. Substituted · 20 U.S.C. § 1091b(d)

       Pub. L. 109–171, § 8022(7), (8), in introductory provisions, substituted “(a)(3)(B)” for “(a)(3)(B)(i)” and, in par. (2)

    2. Substituted · 20 U.S.C. § 1091b(d)

       Pub. L. 109–171, § 8022(7), (8), in introductory provisions, substituted “clock hours scheduled to be completed by the student in that period as of the day the student withdrew.” for “clock hours—

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 109–171, § 8022(7), (8), in introductory 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 determined by the Secretary in regulations, of the hours that were scheduled to be completed by the student in the period.”

    Enacted provision · exact public law section
    (7) in subsection (d), by striking “(a)(3)(B)(i)” and inserting “(a)(3)(B)”; and

    Effective date note
    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.

13 of 14 references resolved to an enrolled provision · 1 partial