Taking out a student loan and investing the money?

[kipin]

I have heard that student loans are interest free until after you have graduated from college.

Does that mean if I were to apply for a loan, get accepted for say $5000/yr I could then take that $5000 and invest it into a high yield savings account or CD and earn around 5% interest and then when I graduate from school just pay back the loan and be sitting on an extra few grand from the interest?

Are there any downsides to doing this? Is it illegal? Anyone have any more info on my idea?

If my parents are classified as high income, would I not be able to qualify for a loan if I am still a dependent?

Thanks for any info I get.