Third-party Servicer Program Reviews 
The Higher Education Act of 1965, as amended HEA, allows institutions of higher education to outsource any aspect of the institution s participation in federal student aid programs, including, but not limited to, services and functions necessary for the institution to remain eligible to participate in the federal student aid programs , to determine a student s eligibility for federal student aid , to account for federal student aid funds , to deliver federal student aid to students , or to perform any other aspect of the administration of the federal student aid programs. A third - party servicer may be an individual, a state, or a private, profit or non - profit organization that enters into a contract with an eligible institution to administer, through manual or automated processing, any aspect of the institution s participation in any federal student aid programs. When contracting with an institution , a third - party servicer and/or its contractors must comply with the various Title IV requirements applicable to its servicing agreement with the school. A third - party servicer is jointly and severally liable with the institution for any violation of Title IV requirements resulting from the functions performed by the third - party servicer. The Title IV regulations authorize the U.S. Department of Education ED to provide oversight of third - party servicers. As part of its oversight duties , Federal Student Aid FSA routinely conducts program reviews to confirm that third - party servicers and the schools that they contract with meet FSA requirements for institutional eligibility, financial responsibility, and administrative capability. During program reviews , reviewers evaluate the third - party servicers and schools compliance with FSA requirements, assess liabilities for errors in performance, and identify actions the third - party servicers and their partner schools must take to improve future administrative capabilitie

user: what is reviewed under the third-party servicer program?

assistant: Outsourced services and functions necessary for a school to continue to provide federal student aid.

assistant: Did you know the reviews allow an institution to remain eligible to participate in the federal student aid programs?

user: yes

user: do they need to be in agreement with title iv?

assistant: Yes, when contracting with an institution, a third-party servicer and/or its contractors must comply with the various Title IV requirements applicable to its servicing agreement with the school.

user: what kind of thing does title iv do?

assistant: The Title IV regulations authorize the U.S. Department of Education to provide oversight of third-party servicers.

user: what is something that is done during reviews?

assistant: Reviewers will evaluate the third-party servicers’ and schools’ compliance with FSA requirements, assess liabilities for errors in performance, and identify actions the third-party servicers and their partner schools must take to improve future administrative capabilities. 

user: who can be a third party servicer?

assistant: A third-party servicer may be an individual, a state, or a private, profit or non-profit organization