More on the separation of church and state

Regarding the separation of church and state issue raised in my last email about Catholic schools, one friend correctly notes:

I know you know all this, but I do find it inconsistent that no one seems to raise the church and state issue with Pell Grants and the GI Bill at the college level.  No one seems to be holding vigils at Boston College or Notre Dame for example.  OK for college?  Not OK for K-12?  Hello??