Currently Being ModeratedFeb 6, 2013 6:49 AM (in response to fears2323)
You will not be "returning" the iPad, per se. Apple will replace the entire iPad with an identical unit. If they determine that the problem is due to a factory defect, the iPad will be replaced under warranty. If they determine that this is her damage, then you will have to pay for the replacement. If you have AppleCare+ on the iPad, the cost will be relatively minimal; $49 in the US. Otherwise, see the Repair Pricing section here:
You will not need to bring back any of the accessories, nor is there any sort of discount off the replacement price, not for students nor anyone else. And Apple will replace it only with an identical unit; you cannot upgrade capacity or make any other changes.