Posted Date:May 18, 2012
|Author:||David Bergeron, Deputy Assistant Secretary for Policy, Planning and Innovation, Office of Postsecondary Education|
Subject: Correction to Dear Colleague Letter GEN-12-08, Regarding the Conditions Under Which an Institution Submits a Copy of its Contract with a Third-Party Servicer
On April 26, 2012 the Department posted Dear Colleague Letter GEN-12-08 that provided institutions with guidance on the disbursement of Title IV funds through a contractor. This Electronic Announcement corrects information provided in the Dear Colleague Letter related to the conditions under which an institution must provide the Department with a copy of any contract it has entered into with a third-party to perform a Title IV required activity.
The following sentence appears on Page 3 of GEN-12-08 in the answer to Q&A #4:
In addition, the institution must provide to the Secretary a copy of any contract it has entered into with the servicer.
Mistakenly, that sentence was incorrect in that institutions must provide the Department with copies of their third-party servicer contracts only upon the request of the Department. Therefore, this Electronic Announcement provides that the earlier sentence from Dear Colleague Letter GEN-12-08 is changed to be read as follows:
In addition, if requested by the Secretary, the institution must provide to the Secretary, a copy of any contract it has entered into with the servicer.
We apologize for any confusion this error may have caused.