I think that there is miscommunication and errors on both sides.
Many of the students I know who apply for teach grant usually apply during junior year, because it is only a 2-year grant and you have to be taking course work toward a teaching degree. I do not understand why your daughter applied for the grant as an incoming freshman.
If you daughter applied for an was given a grant freshman year, she most likely did not meet the requirements for the grant because she would be taking gen ed courses freshman and sophomore year. She will most likely have to repay the federal government because she did not meet the conditions of the grant.
Another component of the grant is that you would agree to teach in a high needs area.
Here is the information on the teach grant.
https://studentaid.ed.gov/sa/types/grants-scholarships/teach