Flight Instructor reported a loss of engine power at 80 feet after rotation. The Instructor told the trainee to land straight ahead; however; after touching down in the grass the trainee applied full power and took-off again. The aircraft made it around the pattern and landed safely on another runway. The aircraft had completed an oil change the day before.

Narrative

I went flying to help a pilot brush up his hood time. We took off Runway XXR and experienced an engine failure at 80 feet or so after rotation. The very moment this occurred; I instructed the pilot: power idle; land. He fought with me on the controls; but ultimately I finally got him to go power idle and land. We had about 200 to 300 feet left of runway before going off into the grass. Which I did not care about; we were on the ground and not going to hurt anyone else. He loses his nerve and goes full power; taking back off again. So the fight began again for the best course of action; since he lost his nerve and took back off again. Ultimately through a series of losing and regaining the engine I was able to instruct him over to Runway XYR; the north parallel and landed with clearance from tower. No injuries or damage was sustained. He informed me the plane just came out of an oil change from his mechanic. I think more strict training and situational awareness should be made in the event of an after engine takeoff failure and adhering to our plan for an engine failure after rotation. I could see in his mind; landing back on the runway didn't seem like an option because he was afraid of the grass. This fear of overrunning the runway was what lead him to this terrible decision to continue around.