Money in the bank that can be attributed to financial aid is not reportable on the FAFSA. For example, let’s say you got a refund of $1,000 from your loans in September. You will be using it to pay for December rent. You complete the FAFSA for the next year in October, and the money is still in your account on the day you file. You do not have to declare the $1,000. “How would they know?” is a silly question - as with many things associated with financial aid, the expectation is that people will tell the truth, since they sign something that says they are telling the truth.