Will I bear a burden of sin for taking a usurious loan in my name on behalf of my brother due to family pressure, knowing that it will be converted into a grant and the government will not reclaim any of it, and is it permissible for me to take what I am owed from this money?

It is not permissible to enter into an interest-based loan contract in response to family insistence, even if the beneficiary is a brother. Borrowing with interest is one of the gravest sins, and assisting in it is not permissible. The fact that the lending institution will convert the loan into a grant does not legitimize entering into an interest-based contract. However, there is no impediment to collecting the debt owed by the brother from money borrowed with interest, because the prohibition of borrowing with interest pertains to the borrower, not to the money itself.