Well they are looking at your COA which includes tuition&fee/room&board/books/personal/transportation and trying to help you cover that so you can attend school. That is why you can’t double dip for tuition-only awards and put it in your pocket, they want to help the next person get to college. And when you are living at home with parents the cost isn’t the same as in the dorm so the COA allocations are lower and the aid is adjusted to cover that COA.
However, if you buy used books and don’t spend the allocation you pocket the rest. If you find a cheap place off campus in exchange for house sitting or something, you still get the off-campus allocation. Same with catching a ride with a friend and not using that allowance.
Now what most schools do let you do is apply outside scholarships to the loans you are expected to take.
And I do not think it is correct to say that Regents are only for premeds and prelaw. There are students who do all kinds of research and have all kinds of majors and goals. I am not familiar with Regents for transfers but at many colleges it is showing a lot of involvement in your college community.