Thursday, February 23, 2023
Third-Party Servicer and Recruitment Compensation Updates from US Department of Education - Jordan DiMaggio, Policy Matters
The long-expected Dear Colleague Letter (DCL) on Third-Party Servicers (TPS) and public comment periods on TPS guidance as well as the incentive compensation ban with these providers, including Online Program Managers (OPMs) on bundled services has been released. The Department will conduct virtual listening sessions on March 8th and 9th to hear community feedback. We encourage UPCEA members to take part in commenting and attending those sessions as well as providing written comments which can be submitted until March 16th. Separately, but very relatedly, the Department has updated Third-Party Servicer guidance to clarify when a servicer is considered as such, and would be privy to additional data and regulation with compliance for federal rules and regulations.
