What Does It All Mean? The U.S. Department of Education’s Regulatory Reach Over Service Providers for Institutions of Higher Education

March 2, 2023 | Webinar | Duane Morris LLP

Duane Morris presented a webinar, What Does It All Mean? The U.S. Department of Education’s Regulatory Reach Over Service Providers for Institutions of Higher Education, on Thursday, March 2, 2023, from 2:00 p.m. to 3:00 p.m. Eastern time.

• What businesses are now within the scope of the revised third-party servicer guidance?
• Who are the impacted stakeholders?
• What do institutions and third-party servicers need to do in response to the new rule?
• What is the practical impact on institutions and third-party servicers?
• What can you do if you have questions or concerns?

This and more will be covered during this timely and informative webinar. We will cover both the new guidance and the Department’s planned listening sessions on the bundled services exception to the incentive compensation rule.

About the Program

Institutions of higher education and companies providing services to them (including so-called online program managers or OPMs) should take careful note of two announcements by the U.S. Department of Education that could significantly impact the institution/service provider relationship and the Department’s oversight of that relationship.

First, and most immediately effective, the Department has revised its subregulatory guidance regarding the activities that make an entity providing services to an institution of higher learning a third-party servicer for Title IV purposes. In a significant expansion over prior guidance, an OPM providing services to an IHE related to student recruiting and retention, providing software products and services involving Title IV administration activities, or providing educational content and instruction are now defined as a third-party servicer.

Second, the Department announced that it is holding listening sessions and taking public comment on potential revisions to the so-called bundled services exception to the Title IV incentive compensation ban, which currently allows institutions of higher learning and third parties to share tuition revenue for recruitment and other services provided.

Join our speakers as they discuss both of these changes, which will require reassessment of the relative contracting risks and revision of such contracts to reflect new guidance. The guidance largely focuses on the practices of OPMs, but could have expanded implications for all public, nonprofit and for-profit institutions in the area of outsourcing assistance with recruitment, curriculum and other services, as it applies to any entity providing the listed services.

Speakers

Katherine D. Brodie, Partner and Team Lead, Higher Education, Education Industry Group

Anthony J. Guida Jr., Partner and Team Lead, Higher Education, Education Industry Group

Kristina Gill, Partner

Jennifer D. DeMay, Special Counsel

Jonathan Helwink, Associate

About Duane Morris LLP

Duane Morris LLP, a law firm with more than 900 attorneys in offices across the United States and internationally, is asked by a broad array of clients to provide innovative solutions to today’s legal and business challenges.

For years, Duane Morris has served all sectors of education, along with the various businesses that support them. Our attorneys provide these organizations with deep experience and trusted guidance regarding complex issues that impact school decision-making on operations, finances and strategic planning for the future.