Is this Money Refundable?
Answer: This question actually came before Rabbi Yitzchak Zilberstein, the rav of the Ramat Elchanan community in Bnei Brak. He ruled that the orphan could hold on to the money for his personal use and gave two reasons for his decision.
First of all it was unusual in that yeshiva for money paid for a fine to be returned to the offender so that it must be assumed that all of his friends gave him that money as an unconditional gift.
Secondly, in addition to providing financial assistance for a needy orphan, these friends saw their somewhat embarrassing collection of funds a way to motivate this latecomer to improve his behavior. Since they achieved their goal they certainly consider their money well spent.