Amends the Higher Education Act of 1965 with respect to maximum individual amounts of Federal Pell Grant for academic years 2005-06 through 2009-10. Increases such amount to $7,600 for 2005-06, and by increments in each of specified subsequent academic years, up to $11,600 for 2009-10.
Requires a further increase in any such maximum Federal Pell Grant amount, by an amount sufficient to achieve a five percent increase in students' purchasing power relative to the cost of attendance at an institution of higher education, if the Secretary of Education determines that the amount authorized does not increase such purchasing power by at least five percent from one academic year to the next.