Is it permissible to accept the grant offered by the college, even though the distance one lives is less than 40 km, knowing that one is in dire need of it to cover study and living expenses? And is this money a right for all students?

It is not permissible to take the scholarship from the college by deceiving and manipulating it, because this involves lying and cheating without a legitimate Sharia reason. This may also lead to depriving those who deserve the scholarship. The Prophet, peace and blessings be upon him, said: "Whoever cheats us is not of us."