Financial Aid Legislative Updates
Butler Community College is committed to providing accurate and timely updates on how new legislation may impact your financial aid.
ONE BIG BEAUTIFUL BILL ACT (OBBBA)
Signed into law: July 4, 2025
The OBBBA is the budget reconciliation package that was approved by Congress that includes a broad range of changes to federal financial aid, effective the 2026-2027 academic year.
Key Changes to Federal Financial Aid:
FEDERAL PELL GRANT: Beginning with the 2026-2027 academic year students that are receiving enough non-federal grants and scholarships to cover 100% or more of their estimated cost of attendance (COA) will no longer be eligible for Federal Pell Grant.
FEDERAL DIRECT SUBSIDIZED/UNSUBSIDIZED LOANS: Beginning with the 2026-2027 academic year students enrolled less than full-time and borrowing federal direct loans will have their loan amount prorated based on enrollment. Decreases in enrollment at any point during the academic year can have an impact on a student's future disbursement amount.
FEDERAL DIRECT PARENT PLUS LOANS: Effective July 1, 2026 there are annual and lifetime aggregate limits on Parent Plus loans. Parents of dependent undergraduate students will be able to borrow up to $20,000 per academic year for their student (dependent upon cost of attendance minus other student aid received) AND up to $65,000 over that student’s academic career.
ADDITONAL RESOURCES
Here is some more information regarding in-depth changes to financial aid due to OBBBA
Federal student Aid’s One Big Beautiful Bill Act Updates