<p>If you keep your PELL and other financial aid in an account that does not dip below that award, you don’t have to report those balances as assets, is my understanding. The instant you dip below the award amount, that amount is gone in terms of non reporting. You can’t just replace the money. This is important because in the future, EFC could go up 20cents for each dollar you, the student have saved. </p>
<p>"So what does that mean for me? Will I no longer get as much financial aid if I save this? "</p>
<p>The answer is that you won’t get penalized for the amount being stashed in savings. But if you use up all of the years of your eligiblity, you aren’t going to get PELL for beyond the 6 year of use. Whereas, if you return it all, that year is returned to you. But if you save the money, you’ll have it anyways, so that’s a wash. You could end up with extra money in a year, if you save it and are still quaified for PELL because you would have what you have saved PLUS what you get that year.</p>