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You can NOT avoid the reentry permit. As a non U.S citizen and a green
card holder or I-551 she needs to have a Reentry Permit. However, if
she is an I-94 holder--She needs a Refugee Travel Document. In your
grandma case--when she gets her Reentry Permit--That is her PASSPORT--
immigration officials in any country that she visits will stamp into
the page of the Reentry Permit. If she wants to avoid paying $400 for
the Reentry Permit--then she needs to apply for U.S. citizen and get a
regular U.S. passport which cost a little more than $100.
Love and kisses.
Soumaly