Okay, I had to go on the internet just to get some background here because the question was making my head spin. I’d provide the website, but, I’m not sure whether that would be a TOS violation (but, feel free to PM me.)
In any event, FA refunds are apparently a real thing. The most common scenario occurs when the college, out of an abundance of caution over estimates the actual cost of attendance after grants and scholarships have been applied. Maybe, the meal plan chosen was cheaper. Maybe, the chosen dorm was not as expensive. Whatever.
Since loans (both subsidized and unsubsidized) are in a fixed amount and are the last component to be applied to the semester’s bill, there is often money left over.
For whatever reason, the excess money is sent to the student and not to the bank. So yes, @kelsmom is correct. It wouldn’t make sense for that money to be considered a real asset. Even though the OP is free to spend it, they still owe it to the bank. And beware, under the scenario desscribed by the OP, it is accumulating interest.
There are also situations where grants and scholarship money may exceed COA. TBH. I don’t understand how a $7000 Pell grant doesn’t get completely devoured (maybe at the community college level?), but, apparently these situations do happen. However, given the preponderance of the comments, both here on CC and what I was able to find on the internet, it sounds as though the OP is on safe ground not declaring the excess funds as part of his or her EFC.
So, ordered [sound of Judge Judy pounding her gavel]