Denied Financial Aid b/c of Traumatic Event

I was denied Financial Aid, but not for income reasons. Supposedly, I'm denied because I "failed to complete the minimum required hours" of classes last time I was in school. Several yrs. ago, I was attending part-time on a Pell grant while working full-time and caring for my 2 kids. Something traumatic happened to me, involving a stalker, police, and trial. I was forced to quit my classes, for my own safety and that of my family. At the time, I explained my reason for dropping out to the admissions office staff. I also paid for the unfinished classes.
(The offender has served, to date, 9 yrs. in prison following conviction of that crime.)

Now that I finally know what my true calling is (nursing), and my kids are grown & I am able to attend school full-time, I'm turned down for financial aid because of something terrible that happened to me years ago. The only thing I know to do is to appeal their decision..I wonder if it would help to 'prove my case' by showing them the police reports, etc.?
Any advice is appreciated.

Meanwhile, I know someone who is getting their 3rd school grant in 3 yrs., who never finishes any of the classes she starts! She is literally living off the grant $$, just enrolling and attending long enough to get the checks and cash them. She knows it's wrong, but doesn't care (obviously) and she makes no secret of it to her family and friends. Supposedly, hers are Pell grants. When I got a Pell grant 10 yrs. ago, I never received any actual money - it was paid directly to the school. How many other people get away with this crap?

Okay - enough venting...but it's true. Just makes me so mad!