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President Bush Will Propose Largest Pell Grant Increase in a Generation but Hasn’t Said How He Would Pay for It

In his budget proposal for the 2008 fiscal year, President Bush plans to call for raising the maximum Pell Grant by nearly 14 percent, or $550, next year, the biggest one-year jump in the award for low-income students in more than three decades, the secretary of education, Margaret Spellings, announced on Thursday afternoon.

The plan also calls for an increase of 33 percent, or $1,350, over the next five years, bringing the maximum award to $5,400.

“This is real money that will help more low-income students achieve the dream of a college education,” Ms. Spellings said in a wide-ranging speech on higher education, delivered at North Carolina State University.