Increased Pell Grant funding proposed in stimulus package to offset higher education costs

Feb. 11, 2009 - College students from low-income households stand to benefit most from the educational provisions in the economic stimulus package, but paying for college will remain a daunting task for many Illinois families.

The House of Representatives' version of the economic stimulus package designates $15.64 billion for Pell Grants, with an additional $1.47 billion in "recovery funding" for the need-based scholarships, for the next two school years starting this fall.

The Senate version calls for less money, but students who qualify for the maximum Pell Grant award would likely see a $400 to $500 increase in the size of their annual grants in the compromise legislation that could be worked out yet this week.

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