Federal judges rejected 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 involved courts in multiple states reviewing the policies. The Education Department raised loan limits for certain programs after the court losses. Officials modified the rules to comply with the new legal environment. The public servant group had waited clarity on loan relief. The rulings change how borrowers qualify for forgiveness under current programs. Legal challenges will likely persist as the administration handles the setbacks. This move reshapes the landscape for federal student aid policy.