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Bush Would Pay for Pell Grant Increase With Cuts in Lender Subsidies and Supplemental Grants Program

Last week, higher-education lobbyists got the good news on President Bush’s proposed budget for the Education Department in 2008. He would increase spending on the maximum Pell grant to $5,400 over the next five years.

On Monday, they got the bad. He would pay for it by cutting lender subsidies and eliminating the Supplemental Educational Opportunity Grant program, which augments Pell Grants for low-income students.