(No EA ID) Updated Third-Party Servicer Questions and Answers (Updated May 16, 2023)

Electronic Announcement ID
No EA ID

Posted Date: March 8, 2017

Author: Lynn Mahaffie, Acting Assistant Secretary for Postsecondary Education

Subject: Updated Third-Party Servicer Questions and Answers (Updated May 16, 2023)

Note

On May 16, 2023, we published Dear Colleague Letter GEN-23-08, which rescinded the guidance in the attachment to this Dear Colleague Letter prohibiting institutions from contracting with third-party servicers to perform any aspect of the institution’s participation in a Title IV program if the servicer (or its subcontractors) is located outside of the United States and/or is owned or operated by an individual who is not a U.S. citizen or national, or a lawful U.S. permanent resident. That guidance no longer applies. Please refer to Dear Colleague Letter GEN-23-08 for additional information.

On January 9, 2015, the Department published Dear Colleague Letter GEN 15-01, which addressed institutional responsibilities and requirements for institutions that enter into contracts with third-party servicers. Dear Colleague Letter GEN 15-01 resulted in a number of questions being submitted to the Department. In response the Department published a set of Questions and Answers that were attached to Dear Colleague Letter GEN 16-15. An updated version of the set of third-party servicer Questions and Answers is attached to this announcement. There are four new questions – D&E-Q8, D&E-Q9, D&E-Q10, D&E-Q11.

We encourage institutions to review the regulations at 34 CFR 668.2 (definition of third-party servicer); 34 CFR 668.23, 668.25; and Dear Colleague Letters GEN 12-08 and GEN 15-01 for further information on third-party servicers.

Last Modified: 05/16/2023