Federal judges stopped President Trump's plan to limit student loan forgiveness for public servants on July 1, 2026. A second ruling tossed the administration's broader loan forgiveness rule. These decisions were made by courts in multiple states reviewing the policies. The Education Department raised loan limits for certain programs after the court losses. Officials revised the rules to comply with the new legal environment. The public servant group had pushed for clarity on loan relief. The rulings impact how borrowers apply for forgiveness under current programs. Legal battles will likely remain as the administration handles the setbacks. This move reshapes the landscape for federal student aid policy.