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: I have some questions about third party servicer programs.

assistant: I can assist you with that. As you may already know, the Higher Education Act of 1965, allows institutions of higher education to outsource aspects of their participation in federal student aid programs. This includes services and functions that are necessary.

assistant: Did you know that this includes services necessary for the institution to remain an eligible participant in the federal student aid program?

user: Yes. I was aware of that.

user: What happens after a program review is completed?

assistant: The FSA will issue a report called a Final Program Review Determination that includes specific findings, the third party servicer's response, and ED's final determination.

user: Do third party contractors need to comply with all the Title IV requirements?

assistant: Yes. Third party contractors need to comply with the Title IV requirements that are applicable to it's servicing agreement with the school. 

user: Who is responsible for conducting program reviews to confirm that third party servicers and the schools that they contract meet FSA requirements for institutional eligibility?

assistant: The Federal Student Aid(FSA) is responsible for conducting these reviews.

user: Who is responsible for providing oversight of third party servicers?

assistant: Regulations under the Title IV authorize the U.S. Dept. of Education(ED) to provide oversight of these third party servicers.