<p>That would be unusual. Most of the time, excess aid is just sitting in the bank while it is waiting to be used to pay for schools expenses. For instance, by daughter got a refund that was then used to pay for her rent and living expenses. It sat in her bank, but was certainly not being used for investments. In most cases, i would not expect there to be sufficient for investments or CDs. I think it would be a little difficult to convince a school that such funds are from FA in case of verification. </p>
<p>IRAs are not reportable. However, I don’t see how money from financial aid would be able to be used to fund an IRA as there must be earned income for an IRA to be possible.</p>