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What happens depends on the type/source of financial aid and the rules they have for it. Some financial aid covers only tuition (or room and board) and is paid out only to the actually university - so any extra over the tuition etc. is just not paid out. Other types are for any type of student expenses and are paid first to the university to cover tuition and then any extra is given in a check or deposit to the student. Be careful though that if you financial aid is coming from student loans and you don't actually need the extra cash for student expenses, to return it or to accept a lower amount as you will have to pay all of it back plus expenses after you graduate.

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Q: What if financial aid amount is more than tuition for semester?
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