Last month, the U.S. Department of Education’s Office of Federal Student Aid issued a Dear Colleague Letter that greatly expanded the definition of third-party servicers (TPS) to include “entities performing the function of student recruiting and retention, the provision of software products and services involving Title IV administration activities, and the provision of educational content and instruction.” If implemented as written, the guidance could eliminate federal funds from being sent to any foreign-owned entity as it prohibits colleges and universities from contracting with third-party servicers located outside of the United States or entities “owned or operated by an individual who is not a U.S. Citizen or national or a lawful U.S. permanent resident. This could have drastic impact on the field of study abroad.
The Forum strongly urges Members to work with their own Legal Counsel and Federal Relations colleagues in advance of the March 28, 2023 deadline for submitting comments to the U.S. Department of Education and to join us for a webinar on Friday, March 17th from 11am -12pm ET to learn about the guidance and how it may impact study abroad. Panelists will include Lou Guard, General Counsel at Hobart and William Smith Colleges and Aaron Lacey, Chair of Thompson Coburn’s Higher Education Practice.
Download presentation: 2023-3-17 Forum TPS Webinar