Federal judges rejected President Trump's plan to limit student loan forgiveness for public servants on July 1, 2026. A different ruling overturned the administration's broader loan forgiveness rule. These decisions involved courts in multiple states examining the policies. The Education Department increased 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 sought clarity on loan relief. The rulings affect how borrowers meet eligibility for forgiveness under current programs. Legal challenges will likely persist as the administration handles the setbacks. This move alters the landscape for federal student aid policy.