Is it legal for a college to award financial assistance in the form of a grant, but never pay the money to the student?

The school states they cant pay my $1000/semester metz grant in 2009 if congress passes the new student loan bill. The bill will not even go into effect until 2010, but the school claims that since banks/lenders provide the grants. Since student loans will be taken away from them and given directly to the department of education for funding, the lenders do not want to pay students for 2009 grant awards. How is that legal? The bill has nothing to do with 2009 assistance.