Education Department to Rescind Third-Party Servicer Guidance

The Department of Education is officially withdrawing its controversial guidance on third-party servicers (TPSs). The guidance, which has been suspended since shortly after it was announced last year, will be formally rescinded by November 18, 2024. It remains to be seen, however, whether the next administration will pursue new regulations on TPSs.

When it was released in 2023, the TPS guidance was broadly criticized due to its ill-conceived and potentially devastating impact on campus operations. Initially, the Department responded to the criticism by extending the compliance deadline pending further revisions to the guidance.

In July 2024, however, the Department indicated in a blog post that new regulations on TPSs would be developed via negotiated rulemaking, signaling that the agency had abandoned plans to revise the guidance. This week’s announcement confirms that the guidance will be officially withdrawn.

For more information, please contact:
Justin Monk