PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 619 not be voided or otherwise nullified with respect to such disbursements made before the date that the lender and the guaranty agency receives such notice. "(4) Nothing in this subsection shall permit the Secretary to take any compliance, disallowance, penalty, or other regulatory action against— "(A) any institution of higher education with respect to any error in a social security number, unless such error was a result of fraud on the part of the institution; or "(B) any student with respect to any error in a social security nvunber, unless such error was a result of fraud on the part of the student.", (h) CLERICAL AMENDMENT.— Section 801(a) of the National Literacy Act of 1991 is amended by striking "the Act" and inserting 20 USC 1091. " the ffigher Education Act of 1965". SEC. 486. REFUND POLICY. (a) REFUND POLICIES AND REQUIREMENTS. — Part G of title IV of the Act is further amended by inserting after section 484A the following new section: •SEC. 484B. INSTITUTIONAL REFUNDS. 20 USC 1091b. "(a) REFUND POLICY REQUIRED. — Each institution of higher education participating in a progrsun under this title shall have in effect a fair and equitable refund policy under which the institution refunds unearned tuition, fees, room and board, sind other charges to a student who received grant, loan, or work assistance under this title, or whose parent received a loan made under section 428B on behalf of the student, if the student— "(1) does not register for the period of attendance for which the assistance was intended; or "(2) withdraws or otherwise fails to complete the period of enrollment for which the assistance was provided. "(b) DETERMINATIONS. — The institution's refund policy shall be considered to be fair and equitable for purposes of this section if that policy provides for a refund in an amovmt of at least the largest of the amounts provided under— "(1) the requirements of applicable State law; "(2) the specific refund requirements established by the institution's nationally recognized accrediting agency and approved by the Secretary; or (3) the pro rata refund calculation described in subsection (d), except that this paragraph will not apply to the institution's refund policy for amr student whose date of withdrawal from the institution is after the 60 percent point (in time) in the period of enrollment for which the student has been charged. " (c; DEFINITIONS. — (1) As used in this section, the term 'pro rata refund' means a refimd b^ the institution to a student attending such institution for the nrst time of not less than ^at portion of the tuition, fees, room and board, and other charges assessed the student by the institution equal to the portion of the period of enrollment for which the student has been charged that remains on the last day of attendance by the student, rounded downward to the nearest 10 percent of that period, less any unpaid chsurges owed by the student for the period of enrollment for which the student has been charged, and less a reasonable administrative fee not to exceed the lesser of 5 percent of the tuition, fees, room and board, and other charges assessed the student, or $100.
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