This bill mandates that public institutions of higher education in New Jersey establish a withdrawal policy that allows students to withdraw due to extenuating circumstances and receive a refund. The policy must define "extenuating circumstances" to include illness, injury, hospitalization, and mental health issues. Additionally, it requires institutions to refund tuition and fees for the semester in which the student withdraws if these circumstances hinder their ability to continue their education. The bill also stipulates that criteria must be established to assess whether a student's educational pursuits have been affected by such circumstances.

Furthermore, the policy must ensure that students who withdraw in accordance with the established guidelines and have paid for room, board, or fees are entitled to a refund for the portion of those charges corresponding to the time they did not utilize the facilities or services. It is also specified that any refunds for students receiving financial aid or state aid will be subject to relevant state and federal laws and regulations. The act is set to take effect immediately and will apply to the first full academic year following its enactment.