Judges in Massachusetts and DC struck down PSLF restrictions targeting employers with substantial illegal purpose.
Rule would have blocked forgiveness for public service workers at certain nonprofits including immigration and transgender advocacy groups.
New rules cap Parent PLUS loans at 20k per year and 65k total per student.
Graduate and professional degree borrowing limits also tightened with lifetime caps.
SAVE plan borrowers must transition to new repayment options over time.
Courts keep pushing back on quick changes to loan forgiveness so PSLF stays wider open for now.
New borrowing caps aim to control costs but could hit fields like medicine and nursing hard.
This shows tension between cutting student debt and keeping access to education open.
The Hill on judges striking down overhaul: https://thehill.com/homenews/administration/5949409-judges-strike-down-trump-administration-student-loan-forgiveness-overhaul/amp/
CBS News on July 1 changes: https://www.cbsnews.com/news/student-loan-changes-july-1-2026/