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Education Department faces calls to rescind outsourcing guidance

Confessions of a Community College Dean

The department wrote a Dear Colleague letter in February that said any entity involved with the administration of an institution’s federal student aid is considered a third-party servicer, which puts them under the department’s oversight authority and subjects the companies’ contracts with institutions to regular audits.

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Higher Ed Braces for Impact of Third-Party Service Regulation Expansion: Changing Higher Ed Podcast 149 with Host Dr. Drumm McNaughton and Guest Mike Goldstein

The Change Leader, Inc.

The original rule was designed to monitor contracted companies that provide colleges and universities with services to manage various aspects of Federal Student Aid. It provides grants and loans to students. It’s not involved with the approval of institutions or the granting of degrees and other credentials.

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2023 Year in Review

Diverse: Issues in Higher Education

Department of Education (ED) issued guidance for how schools can navigate admissions and still consider other factors in evaluating applicants, including neighborhood and high school data, life challenges, and experiences of racial discrimination. Those who did not receive a Pell Grant would have been eligible for up to $10,000 in relief.