Federal judges blocked President Trump's plan to limit student loan forgiveness for government workers on July 1, 2026. A different ruling invalidated the administration's broader loan forgiveness rule. These decisions came from courts in multiple states assessing the policies. The Education Department raised loan limits for certain programs due to the court losses. Officials revised the rules to follow the new legal environment. The public servant group had waited clarity on loan relief. The rulings impact how borrowers qualify for forgiveness under current programs. Legal disputes will likely remain as the administration responds to the setbacks. This move shifts the landscape for federal student aid policy.