What is the correct action to take with money that a student wishes to pay instead of university tuition fees that he obtained undeservingly through favoritism: Should it be directed to the state's Absolution of Liability account or be given as charity?

It is difficult to obligate the student to pay tuition fees merely because he is studying at the university through mediation. Mediation is permissible if it is to obtain a right that cannot be obtained otherwise, or if the student used it to enter the university while he did not meet all the conditions and the administration was authorized to do so. The university regulations should be consulted: if he does not have the right to study at the university's expense, then he is obligated to pay the fees. If his case is covered by an exemption, he should not give those fees as charity, but rather place them in the designated fund.