<p>At the time of filling out fafsa, it is in the student's savings acct. it is a loan, however, and needs to be paid back. So for this reason , it probably s/ not be considered an asset, correct?</p>
<p>Financial aid funds are not reported as a student asset. Make sure you keep that money separate, however if you want it so viewed. If you put it into an account, the account cannot dip below tha amount you claim as an asset later when you file FAFSA. You can’t “borrow” against it. You have to keep the tracking on it if you move it around in case you are audited. But,no fin aid awards, whether they are grants, loans, work study money when they are sitting there as assets are not to be reported on FAFSA.</p>