Federal judges stopped President Trump's plan to curb student loan forgiveness for government workers on July 1, 2026. A different ruling overturned the administration's broader loan forgiveness rule. These decisions were made by 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 comply with the new legal environment. The public servant group had sought clarity on loan relief. The rulings affect how borrowers qualify for forgiveness under current programs. Legal disputes will likely continue as the administration handles the setbacks. This move shifts the landscape for federal student aid policy.