Town Hall on the Department of Education’s Incentive Compensation Exception and Third-Party Servicer Guidance
Join CECU for an overview and discussion of two significant announcements by the U.S. Department of Education related to contract services to institutions of higher education. The Department is soliciting feedback to update guidance on the incentive compensation prohibition, specifically the “bundled services exception,” which was created by guidance in 2011. Additionally, the Office of Federal Student Aid published updated guidance expanding the scope of activities that qualify contractor services as third-party servicers (TPS), resulting in significantly greater compliance risk for institutions and service providers. Following the overview, time will be provided for attendees to participate in an open discussion on each of these guidance documents. Feedback received during the town hall will inform CECU’s written comments to the Department, which are due March 16, 2023, for the solicitation for feedback on the incentive compensation ban, and March 17, 2023, for the revised TPS guidance. This event is intended to solicit feedback from CECU members; active participation is encouraged.