Skip to content Menu

The Department of Education began the new year with a reminder to schools about properly reporting contracts with any third-party that provides services related to administering Title IV student aid programs. The "Dear Colleague Letter" (GEN-15-01) warns institutions that the name of any individual or entity providing such services must be reported through the Application for Approval to Participate in the Federal Student Financial Aid Programs (E-App) process within 10 days of entering into a new contract or modifying or terminating an existing contract.

The letter details the types of services that trigger third-party servicer status for Title IV purposes and cautions institutions about requirements related to privacy protections under the Family Education Rights and Privacy Act and data security concerns under the Gramm-Leach-Bliley Act. Third-party servicers also are required to undergo compliance audits.

ED issued a similar letter three years ago, indicating that failure to comply with these requirements was a concern.

Contact

Liz Clark

Vice President, Policy and Research

202.861.2553

Contact

Bryan Dickson

Director, Student Financial Services and Educational Programs

202.861.2505


Related Content

NACUBO Member Joe Weglarz Selected as Federal Rulemaking Negotiator Representing Business Officers

Negotiators will work with the Department of Education on its cash management, Return to Title IV, state authorization, distance education, and accreditation regulations over the next three months.

Department of Education Outlines Plan to Assist Institutions Following FAFSA Delays

ED will allocate $50 million in direct funding for technical assistance and support and will provide tools to help colleges efficiently process student records and deliver financial aid packages.

ED Announces Operational Flexibilities as FAFSA Rollout Continues

To help colleges and universities focus on the work ahead, the Department of Education announced that it will provide some administrative relief within the verification, program review, and recertification processes.