Federal judges blocked 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 were made by courts in multiple states reviewing the policies. The Education Department boosted loan limits for certain programs after the court losses. Officials modified the rules to meet the new legal environment. The public servant group had pushed for clarity on loan relief. The rulings affect how borrowers meet eligibility for forgiveness under current programs. Legal battles will likely continue as the administration addresses the setbacks. This move alters the landscape for federal student aid policy.