That would help drive down the cost of college somewhat. If they stop handing out free money to non-qualified students, colleges would have to compete more for qualified students.
Dream on, right now Sallie Mae is the only sector growing in non-revolving credit. It is now over $1 Trillion and all controlled by the government.
So only non-qualified students receive Pell grants?
Eliminate the provision that prevents student loan debt from being cancelled in bankruptcy, and make colleges finance a percentage of the student loan amounts, and you will see colleges and lenders stop giving student loans to people who will never economically benefit from a college degree (at least one in their declared major).
No more Pell grants. Oh no that means likely no more studies on the mating habits of the flea. This cannot stand.