Federal student loan servicers could not market other products to borrowers and private student loans lacking certain protections could be discharged in bankruptcy under new recommendations unveiled Thursday by the Obama administration.

The proposed reforms by the Department of Education — the second announcement this week by policymakers seeking to assist student loan borrowers — would also change credit reporting to put federal loan borrowers who pay on time in better standing, and prohibit automatic defaults for private student loan borrowers when a cosigner dies or files for bankruptcy.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.