I worked in my year off from med school, and I have saving's from when I was a kid. My parents also techinically are "lending" me money in the form of loans or they will, when my money from my year off runs out next year. Completely legal -- they'll have a loan written up. I'm in no way risking losing my financial aid. I haven't taken out a private loan yet, and I'm trying not to, which is why I constantly eat pb&j. Parents are allowed to pay for stuff not on the budget -- like car insurance.
The reserve isn't far ~2 miles. It's one of the closer places to live, and it's full of med students and residents too.