According to the U.S. Department of Education, a Third-Party Servicer is an individual, or a state, or a private, profit or non-profit organization that enters into a contract with an eligible institution to administer, through manual or automated processing, any aspect of the institution’s participation in any Title IV, HEA program.
An entity or individual that is not an employee of the institution that performs services and/or functions necessary:
- For the institution to remain eligible to participate in the Title IV programs
- To determine a student’s eligibility for Title IV funds
- To account for Title IV funds
- To deliver Title IV funds to students, or
- To perform any other aspect of the administration of the Title IV programs regardless of whether the servicer is compensated for the functions or services performed on behalf of the institution.