Where do you want to place the blame? On this young student for accepting a grant being offered to her or on the government for being to intrusive on the education market?
I say place it on the government, not on the individual's doing what they feel is necessary.
I don't see it as an either/or decision. The government ought not to be in the business of offering grants for college, but I also consider it wrong to take money that was immoraly confiscated.
It seems we agree on the immoral nature of the Pell Grant though.
That's one sure way to ensure that nothing ever changes.