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(GEN-95-13) To inform postsecondary educational institutions how and when to report information regarding third party servicers.

DCLPublicationDate: 2/1/95
DCLID: GEN-95-13
AwardYear:
Summary: To inform postsecondary educational institutions how
and when to report information regarding third party servicers.


February 1995
GEN-95-13

PURPOSE: To inform postsecondary educational institutions how
and when to report information regarding third party servicers.

Dear Colleague:

The Higher Education Act of 1965 (HEA), as amended by the Higher
Education Amendments of 1992, Pub.L. 102-325, requires an
institution of postsecondary education to provide the Secretary of
Education, upon request, information about the third party
servicers with which the institution has a contract. The
implementing regulations, 34 CFR 668.25, state in part that:

An institution that contracts with a third-party servicer to
administer any aspect of the institution's participation in a Title
IV, HEA program shall provide to the Secretary, upon request, a
copy of the contract, including any modifications, and provide
information pertaining to the contract or to the servicer's
administration of the institution's participation in any Title IV,
HEA program. (34 CFR 668.25(e)(2), 20 U.S.C. 1094)

On behalf of the Secretary I am requesting that you provide the
Department with information concerning each third party servicer
under contract with your institution. We are not asking
you to send us copies of all contracts your institution has with
third party servicers. You will not need to provide copies of
contracts until your institution applies for recertification to
continue participation in the Title IV, HEA programs.

We are requesting the following information for each servicer with
which your institution has a contract:

Servicer Name
Servicer Address, City, State Zip code
Servicer Employer Identification Number
Servicer Telephone Number
Servicer FAX Number
Servicer Internet Address

As the Secretary's first official request for third party servicer
information, you have until March 31, 1995 to respond to the
Department for your institution. After that date, you must
notify the Department within 10 days of the date that your
institution enters into a new contract or significantly modifies a
contract; your institution or a third party servicer terminates a
contract, or a third party servicer ceases to provide contracted
services, goes out of business or files a petition under the
Bankruptcy Code. Your notification must include the
name and address of the servicer and the nature of the change or
action.

Please display your institution's OPEID (institutional identifier
found on the eligibility or approval letter establishing its HEA
eligibility) on the upper right side of the transmittal.
Your report should be forwarded to one of the following addresses:

if by mail: if by internet:

U.S. Department of Education serve@sfa.ope.ed.gov
Institutional Participation Division
ATTN: Third Party Servicer Team
600 Independence Avenue, S.W.
Washington, D.C. 20202-5323


if by overnight mail or courier delivery: if by fax:

U.S. Department of Education (202) 260-6107
Institutional Participation Division ATTN: 3rd PSTeam
ATTN: Third Party Servicer Team
7th & D Streets, S.W.,
GSA Building Room 3030
Washington, D.C. 20024

Finally, if you recently received a notice from the Department
requesting that your institution reapply for reapproval
(recertification) to continue participation in the Title
IV, HEA Programs, please disregard this letter. The Application's
instructions contain the information that you should follow
regarding the reporting of third party servicers. Also, if
your institution does not contract with any third party servicer(s)
to administer the Title IV, HEA programs, you can ignore this
request.

We would be pleased to answer your general questions regarding this
letter. Please contact the Institutional Participation Division,
202-708-4906, and ask to speak with Mr. Jack Reynolds, with Ms.
Ann Clough, or with Dr. Robert Jamroz. Thank you for your
cooperation with this request.

Sincerely,


David Longanecker

Last Modified: 01/31/1995