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The way I read it, the fraternity was put on probation or something while he was a pledge, so they weren't allowed to initiate him and he dropped. In that case, I don't believe you get your money back. There was another thread about this somewhere, but since the fraternity incurs costs as a result of having him as a pledge, the fees they paid to headquarters and the money they spent on him for pledge programming has been spent and it was paid for out of the dues he paid. If he signed a contract to pay the full amount and he did not pay it all before he dropped, they may be able to keep billing him until it's paid in full. If he didn't sign anything, then I don't know.
However, this was my artistic interpretation of a poorly worded question.
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