Right, so the way I see it, the money from the loans goes into my account for educational expenses. The money from my funding (grants/advisor/etc) that is used

Right, so the way I see it, the money from the loans goes into my account for educational expenses. The money from my funding (grants/advisor/etc) that is used to pay for my tuition/fees is returned to me. Once it's in my account and it's refunded, the lending institution would have no way of proving if it was their money or another money source that was refunded to the student. All of the money is technically still being used for "qualified" educational expenses, right? I guess if they did find out one day I'd still be paying the money back, and by that time I'd be hopefully successful in this so I wouldn't mind returning it.