Do you feel like the present financial condition of your family is not represented by the 2 year old data used by FAFSA? If that’s the case, make a list of the differences and use that list to write a narrative explaining that.
Send that to your financial aid office and they will respond with next steps to get that new information considered. Respond promptly!
Grant money and federal loans are two different things. Grant money is awarded to you. Loans you have to apply and get approved (not to mention, you have to pay back). If you are guaranteed grant money and don't need any other resources such as federal loans, I would decline it as well.
No. Federal Pell Grant money is determined by your EFC number from the FAFSA and the amount of credits you take per semester. It is possible that you are ineligible for all federal grants. The school may offer institutional grants, thus you should contact your school's financial aid office. They can explain the best ways to obtain additional funding at their school. It can differ per school so it's best to work with your school's financial aid office directly.
Stephanie recommends the following next steps: