Software & Information Industry Association (SIIA) writes to comment on the proposed regulations under the Department of Education’s (ED) negotiated rulemaking process (“neg reg”).
The Department has recently sought feedback related to Third-Party Servicers (TPS), and what constitutes a TPS at an institute of higher education. As noted in SIIA’s comments, ed tech companies should not be considered a TPS when not directly carrying out functions under Title IV. The original functions of a TPS, as provided by statute, are more specific to the focus being related to Title IV of the HEA.
The statute provides clear guidance to what functions and responsibilities are needed to be considered a TPS. Many of SIIA’s member companies provide services that are non-Title IV functions, such as providing software, digital services, processing systems, and computer software equipment. SIIA recommends ED continue to abide by the original definition of TPS when going through the neg reg process.