Bush Budget Includes Education Grant Increase

WASHINGTON -- Secretary of Education Rod Paige announced Saturday that the Bush administration's 2004 budget proposal includes a $1.9 billion increase for the Pell Grant program. The record request would increase Pell Grant funding to an all-time high of $12.7 billion and enable almost 4.9 million students to receive a Pell Grant.

"Pell Grants are the most effective of the student aid programs in ensuring that low- and middle-income students have access to a college education," Paige said. "The substantial funding increase we are seeking will help millions of needy families pay for higher education and give millions of students the opportunity to pursue their educational goals and make the most of their potential."

Overall, the president's 2004 budget proposal increases the amount of financial aid available for postsecondary students to $62.2 billion, an additional $3.1 billion or 5 percent over the level requested in 2003. A record 9.2 million students and parents would be able to receive grants, loans and work-study assistance under President George W. Bush's proposal, 386,000 more recipients than the previous year.

At the same time, interest rates on student loans are at an all-time low of 4.06 percent for the 2002-2003 academic year, more than a 50 percent reduction from the 1998-99 academic year when rates were 8.25 percent.