Federal judges blocked President Trump's plan to limit student loan forgiveness for public servants on July 1, 2026. A second ruling tossed the administration's broader loan forgiveness rule. These decisions involved courts in multiple states examining the policies. The Education Department raised loan limits for certain programs following the court losses. Officials revised the rules to meet the new legal environment. The public servant group had sought clarity on loan relief. The rulings impact how borrowers qualify for forgiveness under current programs. Legal battles will likely remain as the administration responds to the setbacks. This move alters the landscape for federal student aid policy.