Federal judges blocked President Trump's plan to restrict 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 boosted loan limits for certain programs following the court losses. Officials revised the rules to follow the new legal environment. The public servant group had pushed for clarity on loan relief. The rulings change how borrowers meet eligibility for forgiveness under current programs. Legal battles will likely remain as the administration responds to the setbacks. This move shifts the landscape for federal student aid policy.