Federal judges stopped President Trump's plan to curb student loan forgiveness for government workers on July 1, 2026. A second ruling invalidated the administration's broader loan forgiveness rule. These decisions involved courts in multiple states reviewing the policies. The Education Department raised loan limits for certain programs following the court losses. Officials revised the rules to comply with the new legal environment. The public servant group had waited clarity on loan relief. The rulings impact how borrowers apply for forgiveness under current programs. Legal disputes will likely remain as the administration responds to the setbacks. This move alters the landscape for federal student aid policy.