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Pell Grants would be excepted.
He added that the 2009 grants would be paid within the next 30 days.
She said it was not clear when the first grants would be issued.
This led ministers to ask officials to review funding options and then grants would be awarded.
Alongside this, Osborne said maintenance grants would be abolished from 2016-17 for new students.
The number of grants would be capped at 20,000 each year.
State officials said the grants would be paid over as many as 30 years.
Some of the grants would be used to support young researchers, he said.
No more than a few small grants would be affected, they said.
Under Trump's fiscal year 2017 budget, the grants would be eliminated entirely.
The grants would be something between totally unrestricted general support and highly targeted program funds.
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