Federal judges blocked President Trump's plan to restrict student loan forgiveness for public servants on July 1, 2026. A second ruling invalidated the administration's broader loan forgiveness rule. These decisions came from 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 comply with the new legal environment. The public servant group had sought clarity on loan relief. The rulings change how borrowers apply for forgiveness under current programs. Legal challenges will likely persist as the administration addresses the setbacks. This move shifts the landscape for federal student aid policy.