Federal judges stopped President Trump's plan to limit student loan forgiveness for government workers on July 1, 2026. A second ruling overturned the administration's broader loan forgiveness rule. These decisions were made by courts in multiple states reviewing the policies. The Education Department increased loan limits for certain programs following the court losses. Officials adjusted the rules to meet the new legal environment. The public servant group had sought clarity on loan relief. The rulings affect how borrowers apply for forgiveness under current programs. Legal disputes will likely persist as the administration addresses the setbacks. This move shifts the landscape for federal student aid policy.