I dont know. There seems to be a little bit of leeway. If someone were to do that for the purpose of making money so they could more easily pay for college I dont thing the FBI would be knocking down your door.
They made this law because way back when, some people would sign up for school get whatever money they could get and then never show up for school and get free money. I think doing that now would be a felony.
Heck when I went to school, if I remember correctly I got the check made out to me and then went to pay the school with that. But I may be mistaken.