The student owes the remaining amount, including the origination fee.
Refunds affect the student's balance only.
Refunds are not cancellations and they do not reduce the original disbursement amount. The lender is not entitled to a refund of the origination fees paid to ED via ED799. After Disbursement Funds returned from the school to the lender prior to being delivered to the student or credited to the student's account must be reported as a Cancellation After Disbursement. The student does not owe the origination fees. A Cancellation After Disbursement reduces the original disbursement amount and reduces the student's balance.