<p>what is financial aid refunds and how does it work? i thought all money from financial aid (like pell and sub loans) goes directly to the school...</p>
<p>It does but sometimes there is a difference between what actually gets charged to your account and the cost of attendance that was authorized… This could happen if you move into a lower priced dorm, or end up signing up for a lower priced meal plan or decline a fee that you can choose to decline. If the difference is in your favor you’ll receive it refunded. Some colleges will let you roll it over to the next semester some won’t and cut a check. As an example, my son decided at the last minute to attend a summer semester. I didn’t have enough cash on hand to cover the costs that week so I took out a small PLUS, I estimated $3800 for tuition and books the college authorized it that day and the funds were disbursed within the week, his tuition tab ended up being somewhere around $3400 so they cut him a check for the difference which he used to buy the books.</p>