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 are the third party servicer programs about?

assistant: 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.

assistant: Did you want to know about the federal student aid programs?

user: no

assistant: Do you have questions about services necessary to determine a student's eligibility for federal student aid?

user: yes

user: can you instead tell me what comes after you complete a program review?

assistant: FSA issues a Final Program Review Determination, which is a report that includes each specific finding, the third party servicer’s response, and ED’s final determination. 

user: what does a third-party servicer need to provide services to a school?

assistant: The servicer and/or its contractors must comply with the various Title IV requirements applicable to its servicing agreement with the school.

user: how do they make sure the servicers are doing what they need to do?

assistant: Federal Student Aid 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.