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 bill outlines specific requirements for the policy, including the definition of extenuating circumstances, which encompasses illness, injury, hospitalization, and mental health issues. Additionally, the policy must provide for refunds of tuition and fees for the semester in which the student withdraws if their ability to pursue education is hindered by these circumstances. It also requires criteria to assess the impact of the extenuating circumstances on the student's educational experience and stipulates that students who withdraw in accordance with the policy are entitled to refunds for unused room, board, or fees.

Furthermore, the bill emphasizes that any refunds for students receiving financial aid or state aid must comply with 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. This legislation aims to provide financial relief and support to students facing significant challenges that impede their educational pursuits.