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.

Excludes institutions of higher education and vocational schools from participating in the reduced-interest student loan insurance program under the Higher Education Act of 1965 unless such institutions or schools carry out a refund policy prescribed by the Act.

Prohibits any educational institution or vocational school from receiving Federal financial assistance under the Higher Education Act of 1965 unless the refund policy of such institution is disclosed to its students prior to payment of tuition.