If you look at the timing that they declined her repayment, it is when they were fully informed by her own disclosure that she had extra money on hand. They made this offer when she was in the black, and not the red. If a lender says to a borrower "Don't pay me back" knowing the borrower is doing financially well, that's the lender's problem.

This is totally different from me saying, "Oh no, it's okay, you don't need to pay me back" out of sympathy to my relative because she was crying and acting desperate.