completed (as determined in accordance 
with subsection (d)) 0 to 24 percent of the 
payment period or period of enrollment; 
‘‘(ii) 25 percent, if the day the stu-
dent withdrew occurs when the student has 
completed (as determined in accordance 
with subsection (d)) 25 to 49 percent of 
the payment period or period of enroll-
ment; 
‘‘(iii) 50 percent, if the day the stu-
dent withdrew occurs when the student has 
completed (as determined in accordance 
with subsection (d)) 50 to 74 percent of 
the payment period or period of enroll-
ment; or 
‘‘(iv) 75 percent, if the day the stu-
dent withdrew occurs when the student has 
completed (as determined in accordance 
with subsection (d)) 75 to 99 percent of 
the payment period or period of enroll-
ment.’’; and 
(C) in paragraph (4)— 
(i) in subparagraph (A), by striking 
‘‘Secretary), the institution of higher edu-
cation shall contact the borrower’’ and in-
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serting ‘‘Secretary), the institution of high-
er education shall have discretion to deter-
mine whether all or a portion of the late or 
post-withdrawal disbursement should be 
made, under a publicized institutional pol-
icy. If the institution of higher education 
determines that a disbursement should be 
made, the institution shall contact the bor-
rower’’; and 
(ii) in subparagraph (B) by striking 
‘‘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’’ 
and inserting ‘‘institution, as may be re-
quired under paragraph (1) of subsection 
(b), to the programs under this title in ac-
cordance with’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) RETURN OF TITLE IV PROGRAM FUNDS.— 
‘‘(1) RESPONSIBILITY OF THE INSTITUTION.— 
The institution shall return not later than 60 days 
from the determination of withdrawal, in accordance 
with paragraph (3), the amount of grant and loan 
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assistance awarded under this title that has not been 
earned by the student, as calculated under sub-
section (a)(3)(C). 
‘‘(2) RESPONSIBILITY OF THE STUDENT.— 
‘‘(A) IN GENERAL.—The student is not re-
sponsible to return assistance that has not been 
earned; however, the institution may require the 
student to pay to the institution up to 10 per-
cent of the amount owed by the institution in 
paragraph (1). 
‘‘(B) RULE OF CONSTRUCTION.—Nothing 
in this section shall be construed to prevent an 
institution from enforcing the published institu-
tional refund policies of such institution. 
‘‘(3) ORDER OF RETURN OF TITLE IV FUNDS.— 
‘‘(A) IN GENERAL.—Excess funds returned 
by the institution in accordance with paragraph 
(1) shall be credited to awards under subparts 
1 and 3 of part A for the payment period or pe-
riod of enrollment for which a return of funds 
is required. 
‘‘(B) REMAINING
EXCESSES.—If excess 
funds remain after repaying all outstanding 
grant amounts, the remaining excess shall be 
credited in the following order: 
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‘‘(i) To outstanding balances on loans 
made under this title to the student or on 
behalf of the student for the payment pe-
riod or period of enrollment for which a re-
turn of funds is required. 
‘‘(ii) To other assistance awarded 
under this title for which a return of funds 
is required.’’; 
(3) by amending subsection (c) to read as fol-
lows: 
‘‘(c) WITHDRAWAL DATE.— 
‘‘(1) IN GENERAL.—In this section, the term 
‘day the student withdrew’— 
‘‘(A) for institutions not required to take 
attendance, is the date as determined by the in-
stitution that— 
‘‘(i) the student began the withdrawal 
process prescribed and publicized by the 
institution, or a later date if the student 
continued attendance despite beginning the 
withdrawal process, but did not then com-
plete the payment period; or 
‘‘(ii) in the case of a student who does 
not begin the withdrawal process, the date 
that is the mid-point of the payment period 
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for which assistance under this title was 
disbursed or another 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 para-
graph (1), if the institution determines that a stu-
dent did not begin the withdrawal process, due to ill-
ness, accident, grievous personal loss, or other such 
circumstances beyond the student’s control, the in-
stitution may determine the appropriate withdrawal 
date under its own defined policies. 
‘‘(3) ATTENDANCE.—An institution is required 
to take attendance if an institution’s accrediting 
agency or State licensing agency has a requirement 
that the institution take attendance for all students 
in an academic program throughout the entire pay-
ment period.’’; and 
(4) by striking subsections (d) and (e). 
Æ 
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