Yes, you will get another level. Any of the awards/books/bonuses from items just add to what you have. You just can't go past lvl 5. One pleasant surprise I noticed was that if you try to read a book and you are already at lvl 5, it doesn't waste the book.
btw, did anyone else have problems with some of the books being labeled one thing and teaching you another?
I bought several of 'heaven's blessing' and ended up with magical might... definitely not the same thing!
Mark
