Ministers have promised full grants for 30% of students
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The threshold below which students qualify for a full £1,000 grant has been raised by more than half.
In January, when the reintroduction of grants was announced, Education Secretary Charles Clarke said the maximum amount would only go to students whose family income totalled less than £10,000.
The limit has now been raised by more than 50% to £15,200.
The government has promised 30% of students will be eligible for a full grant from next year.
Part-timers
Mr Clarke was forced to review the threshold after unveiling his plans for grants and £3,000 tuition fees.
At the time he promised a further announcement once the data was checked.
The new limit was announced via a Commons written statement.
Higher education minister Alan Johnson said students whose families earned between £15,201 and £21,185 would receive a "partial grant".
He also announced a financial support package for part-time students, saying those earning less than £14,600 would be eligible for a fee grant of to 50% of the full-time rate, estimated to be worth £575 in 2004-5.
They would also be entitled to £250 to cover "course costs", he added.
Mr Johnson said part-timers whose families earned between £14,600 and £21,487 would get smaller grants.
Part-time students would also be able to claim the grants for a maximum of eight years, depending on the length of their courses.