The Education Department announced earlier this year it would expand its definition of third-party servicers, which must meet additional regulatory requirements and share liability for federal student aid. It said it would consider online program managers, or OPMs, that help with recruiting and retention as third-party servicers, though the department has delayed implementation until six months after final guidance is released. Moody’s expects the guidance to create heavier administrative burdens and greater expenses for colleges with large OPM contracts. It called out two schools as examples — Arkansas State University and Grand Canyon University, a private Christian institution in Arizona.
