(a) In General.—(1) A covered member may, after receiving orders to enter a period of covered service, withdraw or take a leave of absence from covered education.

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(2)(A) The institution concerned may not take any adverse action against a covered member on the basis that such covered member withdraws or takes a leave of absence under paragraph (1).

(B) Adverse actions under subparagraph (A) include the following:

(i) The assignment of a failing grade to a covered member for covered education.

(ii) The reduction of the grade point average of a covered member for covered education.

(iii) The characterization of any absence of a covered member from covered education as unexcused.

(iv) The assessment of any financial penalty against a covered member.

(b) Withdrawal.—If a covered member withdraws from covered education under subsection (a), the institution concerned shall refund all tuition and fees (including payments for housing) for the academic term from which the covered member withdraws.

(c) Leave of Absence.—If a covered member takes a leave of absence from covered education under subsection (a), the institution concerned shall—

(1) assign a grade of “incomplete” (or equivalent) to the covered member for covered education for the academic term from which the covered member takes such leave of absence; and

(2) to the extent practicable, permit the covered member, upon completion of the period covered service, to complete such academic term.

(d) Definitions.—In this section:

(1) The term “covered education” means a course of education—

(A) at an institution of higher education; and

(B) paid for with educational assistance furnished under a law administered by the Secretary.

(2) The term “covered member” means a member of the Armed Forces (including the reserve components) enrolled in covered education.

(3) The term “covered service” means—

(A) active service or inactive-duty training, as such terms are defined in section 101 of title 10; or

(B) State active duty, as defined in section 4303 of this title.

(4) The term “institution concerned” means, with respect to a covered member, the institution of higher education where the covered member is enrolled in covered education.

(5) The term “institution of higher education” has the meaning given such term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001).

(6) The term “period of covered service” means the period beginning on the date on which a covered member enters covered service and ending on the date on which the covered member is released from covered service or dies while in covered service.