Federal judges stopped President Trump's plan to restrict student loan forgiveness for government workers on July 1, 2026. A different ruling tossed the administration's broader loan forgiveness rule. These decisions came from courts in multiple states assessing the policies. The Education Department raised loan limits for certain programs following the court losses. Officials modified the rules to meet the new legal environment. The public servant group had waited clarity on loan relief. The rulings affect how borrowers meet eligibility for forgiveness under current programs. Legal disputes will likely persist as the administration addresses the setbacks. This move shifts the landscape for federal student aid policy.