Federal judges rejected 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 came from courts in multiple states assessing the policies. The Education Department boosted loan limits for certain programs due to the court losses. Officials revised the rules to comply with the new legal environment. The public servant group had waited clarity on loan relief. The rulings impact how borrowers apply for forgiveness under current programs. Legal disputes will likely continue as the administration responds to the setbacks. This move alters the landscape for federal student aid policy.