Federal judges blocked President Trump's plan to limit student loan forgiveness for government workers on July 1, 2026. A different ruling tossed the administration's broader loan forgiveness rule. These decisions came from courts in multiple states examining the policies. The Education Department raised loan limits for certain programs following the court losses. Officials adjusted the rules to follow the new legal environment. The public servant group had pushed for clarity on loan relief. The rulings change how borrowers apply for forgiveness under current programs. Legal challenges will likely continue as the administration handles the setbacks. This move shifts the landscape for federal student aid policy.