Dear School Owner, President, and/or Financial Aid Administrator,
We are writing to remind you of changes (1/04/2021), to the Student Eligibility Review (SER) process performed by Financial Aid Services, Inc. (FAS). These updates are required to comply with U.S. Department of Education regulations applicable to all Third-Party Servicers supporting Title IV funding.
The Department of Education has reaffirmed that Third-Party Servicers are held to the highest standard of care and diligence when administering Title IV funds. While institutions may confirm student eligibility, servicers must periodically verify those confirmations and maintain complete documentation. If required documents are not provided in a timely manner, both the institution and FAS may be held jointly and severely liable for improper disbursements.
Due to recent challenges obtaining required eligibility documentation from some institutions, and following consultation with the Department of Education, FAS has updated its review procedures to align more closely with federal expectations and protect institutional funding.
Effective Immediately (January 4, 2021):
- FAS will request a 10% sample of student files from the current award year for Title IV eligibility review.
- Reviews may occur prior to the first and/or second disbursement of Title IV funds.
- Title IV disbursements for selected students will not be released until all required eligibility documentation has been received and validated by FAS.
Please prioritize all requests for student eligibility documentation to avoid disbursement delays. Disbursing Title IV funds to an ineligible student is a serious compliance violation.
Institutions are encouraged to review internal policies and training to ensure student records are complete and free of conflicting information. FAS offers training and consulting support upon request.
If you have any questions, please contact us.
Thank you for your cooperation and continued partnership.
Sincerely,
Sandi O’Connell
Vice President of Operations
Financial Aid Services, Inc.