I had a problem like this. Attended a community college and had to drop classes. I ended up owing $608. I enrolled at another school a semester later and was issued a pell grant without a problem. The amount you owe is school specific, you wont be able to get a pell grant at that school but you will be fine at another school. I of course ended up paying the money back (took me 8 months) but in the mean time I was able to enroll in another school a few miles away and was fine. The school you own the money to will hold on to your transcripts until the debt is paid. And don't wait too long to pay it or I believe they will report it on your credit and that's not good.
Also, you might be able to petition to be reinstated. Usually what you have to do is petition to be reinstated, go one semester without pell grant, then the following year or semester you will be fine. I have had two friends who did this as they were unable to afford to make payments.
Also I have never heard of then not allowing a payment plan. They will take payments, granted you won't be able to receive a pell grant while you are making payments (at that school) but trust me, they wont turn down a payment.