By Catherine Brown, Senior Director of Policy and Advocacy
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On Wednesday, April 12, the Department of Education (ED) announced in a blog that it is delaying the effective date of the Third Party
Servicing (TPS) guidance to allow time
to carefully review and consider revisions to the guidance, noting the, “significant and helpful feedback,” it received in the form of more than 1,000 comments. You can view the National College Attainment Network's (NCAN) submission here. The blog indicates that the September 1 effective date of the guidance is no longer in effect and the new effective date will be at least six months after the revised guidance’s publication, which is forthcoming.
The blog also lists several activities that it does not consider to constitute TPS relationships, including dual enrollment programs, and says that it plans to consider narrowing the guidance in other areas. “We will carefully review public comments on
areas of confusion or concern and consider clarifying and narrowing the scope of the guidance in several areas, including software and computer services, student retention, and instructional content. These clarifications could include other areas
as we continue to review comments and seek to balance the need for greater transparency and oversight against administrative burden, among other factors,” says the blog.
This update represents a positive step for NCAN members for several reasons. First, it shows that ED is listening to the feedback it has received and adjusting the guidance in response to the concerns that have been raised. Second, it delays the implementation
date, giving all affected entities additional time to understand and comply with the guidance. And third, it specifically mentions student retention as an area ED is looking at and where it may narrow the guidance.
We remain concerned that “Recruitment and Application-Related Activities” is not specifically mentioned as area ED is reconsidering. Many NCAN members provide personalized financial aid counseling in partnership with colleges
and would be subject to these requirements if the guidance is not further narrowed. Also, many members that provide student success support also provide application-related services so narrowing the
student retention services area alone may not exempt all or most of our members from the onerous TPS role and responsibilities.
NCAN is continuing to work with ED to explain the impact of the guidance on college access and success organizations and to
help craft a solution that protects students from predatory practices without curtailing the work of effective programs. We are looking forward to seeing many of you on April 26-27 for our in-person Advocacy Training and Hill Day,
where participants will have the opportunity to meet with policymakers and weigh in on the guidance before it is finalized.
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