Federal judges blocked 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 assessing the policies. The Education Department boosted loan limits for certain programs following the court losses. Officials adjusted the rules to comply with the new legal environment. The public servant group had waited clarity on loan relief. The rulings impact how borrowers meet eligibility for forgiveness under current programs. Legal challenges will likely remain as the administration handles the setbacks. This move alters the landscape for federal student aid policy.