This is against D3 rules and the NCAA comes down hard on schools they find doing this. One school a few years ago got in trouble for giving athletes Work Study at a more favorable rate than non-athletes.
I do think coaches make sure their athletes get all the merit money they are entitled to, but only that which they are entitled to as non-athletes would get it. For example, a coach may direct an athlete to apply for a history department scholarship. Some schools give a scholarship for filing FAFSA, and a coach may remind the student to file FAFSA.