I would return the iPad to the store you purchased it from....
If it was purchased from Craigslist (or the UAE equivalent) and can't get ahold of the seller for a refund, there is not much you can do other than take the loss.
If I was the school I would ask for the iPad back. The only exception would be if the iPad was not stolen, instead it was sold as a surplus item in disposal and it was accidentally not deregistered. That is very, very unlikely.
I see the real question here is who should pay to have a stolen iPad shipped from the UAE back to it's owner in the US. Should the receiver of stolen property take the additional loss and pay for shipping, or should the victim (school) spend taxpayer money to recover it's own property?