Details here:

College students in virtually every state will be required to shoulder more of the cost of their education under new federal rules that govern most of the nation’s financial aid.

Because of the changes, which take effect next fall and are expected to save the government $300 million in the 2005-6 academic year, at least 1.3 million students will receive smaller Pell Grants, the nation’s primary scholarship for those of low income, according to two analyses of the new rules.

In addition, 89,000 students or so who would otherwise be getting some Pell Grant money will get none, the analyses found….

Beyond the implications for Pell Grants, the new rules are expected to have a domino effect across almost every type of financial aid, tightening access to billions of dollars in state and institutional grants and, in turn, increasing the reliance on loans to pay for college. Taken together, many education experts say, the consequences for the nation’s core financial aid programs are among the most substantial in a decade.

Cheer up, at least he hasn’t announced a new military draft…yet.