Shouldn't a totally separate "grant system" be in place for financial hardship? There are more issues than strictly an "under-qualified" student getting TOPS and not being qualified to keep it. Some high schoolers can make decent grades in high school and simply not move on to the "collegiate lifestyle" without floundering. That percentage failure may be hard to eradicate.
One thing I'd like to see is... is there a direct coorelation to the ACT and other entrance criteria and at what level students do not maintain their TOPS? In other words, is a 30 composite ACT and above graduating at 96%, a 29 composite at 87%, down to a 24 composite at 33% (to evaluate a new cut-off?). And what is the correlation with ACT score and their selection of major? There may be too many guidance councelors allowing an average student selecting too hard of a major. Are their math and science ACT scores good enough for them to select a math/science major?
If you are asking for TOPS money, you shouldn't just get to go try out whatever major your heart desires if your mind can't keep up.