A bill to amend the Higher Education Act of 1965 to provide that institutions of higher education and vocational schools shall not be eligible for purposes of federally assisted student loans unless they carry out a policy of tuition refunds for students who withdraw from courses of study at such institutions or schools.

Declares ineligible for purposes of federally assisted student loans, under the Higher Education Act of 1965, any institution of higher education or vocational school which does not have a policy of refunding an appropriate portion of tuition and fees to a student who withdraws from a course of study during the academic year. Requires educational institutions to disclose such policies to their students before the payment of fees.

Directs the Commissioner of Education to prescribe regulations for determining the appropriate portion of fees to be refunded and for determining whether institutions have complied with the provisions of this Act.