Awareness of new Ed. Dept. ‘third-party servicer’ guidance is low, Educause survey finds
Lindsay McKenzie
March 28, 2023
More than half of institutions polled were unaware of the U.S. Department of Education’s new “third-party servicers” guidance.
A poll of 185 Educause members suggests that more than half are unaware of the U.S. Department of Education’s new “third-party servicers” guidance.
The informal survey, conducted last week and published on Monday, found that 56% of respondents were unfamiliar with the “Dear Colleague” letter issued by the department in February.
The letter includes guidance that could significantly expand institutional reporting requirement — and introduce new restrictions — for colleges working with a wide range of companies under the department’s newly expanded definition of “third-party servicers.”
Among survey respondents familiar with the guidance, 40% said they considered all service agreements to be a form of outsourcing under the new requirements, while 37% said they did not, and 23% said they didn’t know. Fifty-four percent took an unfavorable view of the new guidance, 35% reported a neutral view and 11% said they supported it.
