Because financial aid is provided to pay for education expenses, it is disbursed each academic term to the student’s account at the school he or she is attending. Money is first used to pay what is owed directly to the school, such as tuition, fees, and room and board if living on campus. The balance is refunded to the student to pay for education-related expenses, like off-campus rent, books, supplies, and personal expenses. Budget your funds carefully and save wherever possible.