1. (1) administrative error by the institution or the corporation;
2. (2) a false or erroneous statement on his application or financial form;
3. (3) any other act of omission or commission on the part of the student, his spouse or his parents; or

4. (4) failure of the student to fulfill the eligibility requirements for an award of section 2205.2 of this Chapter;

   such that the student would otherwise have been considered by the president ineligible to receive such payment, the student shall be required to refund the improper payment to the State.

   (b) Institutional refunds.

   The president shall require institutions to refund payment to the State, and the student shall not be required to refund such payments, when:

5. (1) the president has determined that inadequate administrative procedures or practices of the institution or a failure by the institution to fulfill the requirements of section 2205.3 of this Chapter resulted in the incorrect certification of the eligibility of a program or student;
6. (2) the commissioner has determined that the institution failed to conduct an approved program in accordance with the regulations of the commissioner in effect when such program was conducted; or
7. (3) the president has determined that an institution has been advanced pursuant to the prepayment option set forth in Part 2206 of this Subchapter monies in excess of the amount to which the school is actually entitled.

(a) Student refunds.

If a student receives payment as a result of: