@vinyardview, I think maybe your example is an example of representativeness bias. You personally know two people pushing the limits of the program, so you assume a lot more people do. Maybe you think this is the common modality?
Maybe I suffer from the same thing? I personally know many people who have thrived from because of the program and a few who got Pell grants but couldn’t finish because of other financial and health crises. I think that this is common modality.
Often, I like to judge a policy by asking, “Which is the right way to be wrong?”
“What is the fiscal and societal cost if a small percentage of people cheat or abuse the program?” vs “What is the fiscal and societal cost if we deter deserving recipients from using the program because of fear of failure?”
Of course, as others have mentioned, forcing payback will just be silly. If this hideous policy were implemented, no one will be able to afford payback. It will cost more to try to enforce than it will recover. As my English friends say, go pound sand.