Yes, cancellation of financial aid is a relevant consideration on eligibility appeals (see, generally, Chris Graves). Unfortunately, it looks like Alabama did NOT cancel his financial aid when he applied to enter the portal on 6/29/2023.
The issue on kicked out/suspended was, I believe, misstated by some on the board. You CAN actually pull financial aid from athletes who violate legal or school rules in a serious manner. That doesn't suddenly create immediate eligibility though. I am not professing to know all the details of what happened at Alabama, though certain South Florida "media types" are, and I've argued with a couple of them already.
What we do know, though, is this.
ALABAMA area reporters wrote reports indicating that Burroughs would have been facing suspension (which is not expulsion), but that he immediately applied for the Portal and thus never faced an adjudication or determination of punishment, whether it would have been light (suspension) or heavy (expulsion). And regardless of how people want to characterize Burroughs' decision, it does not appear that he was ever kicked out of school or off the team, and his financial aid was not cancelled (though I don't profess to know if he was enrolled in summer classes at the time).
Ferman/Shodell and Susan Miller Degnan can choose to report that Burroughs was "kicked off the team" or "was going to be kicked off the team", but that does not appear to be the case, either from a timeline standpoint or from what Alabama reporters have said. And I trust THAT more than I trust SoFla "media types".