Awareness of new Ed. Dept. ‘third-party servicer’ guidance is low, Educause survey finds
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Ed Scoop
Lindsay McKenzie
March 28, 2023
More than half of institutions polled were unaware of the U.S. Department of Education’s new “third-party servicers” guidance.
A poll of 185 Educause members suggests that more than half are unaware of the U.S. Department of Education’s new “third-party servicers” guidance.
The informal survey, conducted last week and published on Monday, found that 56% of respondents were unfamiliar with the “Dear Colleague” letter issued by the department in February.
The letter includes guidance that could significantly expand institutional reporting requirement — and introduce new restrictions — for colleges working with a wide range of companies under the department’s newly expanded definition of “third-party servicers.”
Among survey respondents familiar with the guidance, 40% said they considered all service agreements to be a form of outsourcing under the new requirements, while 37% said they did not, and 23% said they didn’t know. Fifty-four percent took an unfavorable view of the new guidance, 35% reported a neutral view and 11% said they supported it.
While most survey respondents familiar with the new guidance said they are seeking further clarification on how it might impact them, 29% indicated that their institution is already reviewing its contracts with providers.
Survey respondents familiar with the new guidance reported a lack of clarity about how new requirements might affect their institutions, with “identified outcomes ranging from uncertainty to major disruptions,” Educause researchers Nicole Muscanell and Jenay Robert wrote in a report outlining the poll’s results.
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