^^ Actually that situation – which did exist – was changed about 4 years ago.
Hers’s the original article relating to that matter: https://www.insidehighered.com/news/2013/10/28/colleges-use-fafsa-information-reject-students-and-potentially-lower-financial-aid
And the change: “https://www.insidehighered.com/news/2015/08/14/education-department-will-stop-giving-colleges-information-about-students’-choices”
^^ Not sure why the link is not coming through, but copy-and-paste between the quotes and it will come up.