How do colleges know that you've moved out of your parents?

I just received my financial aid for the year and I was thinking of moving out, but am now planning on staying home. Would my college be able to find out that I have not moved out? How?How do colleges know that you've moved out of your parents?
I'm not sure about nationally, but at least in Michigan it does not matter whether or not you live with your parents. Here, there is an age of independence kind of thing-I think it is 24. It's not very fair, especially for those students who do not have any kind of parental support to have to claim parent earnings for financial aid. I think too many people were ';milking'; the system by moving out, receiving aid and then still getting help from mom and dad.





But, regardless, I don't think they would know where you live. But they will be sending all of your mail to the address you provide them. Maybe they could check financial aid records, drivers license and stuff, but I can't really see them putting much effort into it since I would guess most people would be honest anyway.How do colleges know that you've moved out of your parents?
It is actually more beneficial for you to list living away from parents. This is because you get money for living expenses and if you live at home they assume that you are not paying rent and therefore take that into account.