A bill to amend the Higher Education Act of 1965 to authorize grants to offset reductions in other forms of student financial assistance, and for other purposes.

Amends the Higher Education Act of 1965 to direct the Secretary of Education, during FY 1983 through FY 1986, to increase the amount of a Pell grant to offset any reduction or elimination of child's insurance benefit payments to a postsecondary student under the Social Security Act as a consequence of specified provisions of the Omnibus Reconciliation Act of 1981. Directs the Secretary to consult with the Secretary of Health and Human Services and the Commissioner of Social Security in prescribing regulations to determine the amount of the increase on the basis of such reductions.

Prohibits increasing any Pell grant to an amount exceeding the difference between expected family contribution and cost of attendance. Permits increasing the Pell grant to an amount exceeding the maximum dollar amount and the maximum percentage of cost of attendance established under such Act.

Requires that funds for such increases be appropriated separately from other Pell grant funds.

Provides for a ratable reduction in the amount of each increase if the funds so appropriated are not sufficient.