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 questions about third party servicer program reviews.

assistant: I can help you with that. The Higher Education Act of 1965 allows institutions of higher education to outsource all aspects of their participation in federal student aid programs.

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

user: No. I didn't know about that.

assistant: Were you aware that this also includes services that determine a student's eligibility for federal student aid?

user: No.

assistant: Did you know the Act also covers services that help to account for federal student aid funds?

user: No. I didn't know that either.

assistant: This Act also includes functions that deliver federal student aid to students. Would you like more information about this?

user: No. That's okay.

assistant: Lastly, this Act covers services and functions that are necessary to perform any other aspect of the administration of the federal aid programs. Do you have questions about this?

user: Yes. I need clarification on that.

user: How does it work for third party servicers who contract with an institution?

assistant: The third party servicer would have to comply with the Title IV requirements that are applicable to it's servicing agreement with the institution.