"Difficult decisions" are ahead for student grant funding, according to the Isle of Man government.
New regulations will be published in December detailing new financial regulations for 2011 and beyond.
The funding review has been prompted by an increase in university fees from £3,290 to £6,000 and, in some cases, £9,000 a year.
Education Minister Eddie Teare said: "We cannot just find money from nowhere to meet sudden increases in fees."
He added: "However we will look to do what we can do continue to fund higher education as generously as possible."
Manx students starting longer degree courses have already been told they will pay a means-tested £1,000 contribution for fourth and subsequent years of study, as will post graduate students.
Degree funding will now only be given to those students who achieve at least two A-levels at grade C.
To be eligible for a postgraduate grant, Manx students must now gain an upper second degree whereas it was previously a lower second.