These bikes for Uni's are a pain. Wallmart type bikes will not get used very often and a good bike will get nicked. What you have done to disguise the thing is right and providing the locks get used- there will be no problems.
8 years ago a friend of mine had his daughter off to uni and he built up a bike for her. All the old but servicable parts he had onto an old Raleigh Frame. It did not look very pretty but would be OK. When she got to the end of her 3 years- Dad asked her to lose the bike as he did not want another bike in the garage when she returned. She left it unlocked and it did not get stolen,and that was about 3 months before she finsihed- Tried to give it away but no-one wanted such a rough looking bike. Abandoned it in the Town and one of her mates bought it back as he thought it had been stolen. Well the bike came back home and Dad looked at it and rebuilt it for his other daughter that was about to go to Uni. There was no way she was going to have such a crap looking bike. Dad checked it over abd gave it away to someone who wanted a bike. 3 years later and that bike is still being used, and the owner loves it. Apparantly it rides beautifully and can be left anywhere without fear of it being stolen.