The guidance, first issued in February 2023, was aimed at regulating online program managers—but higher ed groups warned of unintended consequences. The Education Department is officially planning to rescind its controversial guidance on outside contractors—which never actually took effect—within the next four weeks. This latest step, announced in a court filing Monday, is largely a formality after the department said in July that it would go through its lengthy rule-making process to change the regulations that govern third-party servicers—entities that colleges and universities contract with to administer or manage financial aid and other programs—rather than issue new guidance.
