Principal [Education] Law and Legal Definition

According to 34 CFR 85.995 [Title 34 – Education; Subtitle A -- Office of the Secretary, Department of Education; Part 85 -- Governmentwide Debarment and Suspension (Nonprocurement); Subpart I – Definitions], the term principal means --

“(a) An officer, director, owner, partner, principal investigator, or other person within a participant with management or supervisory responsibilities related to a covered transaction; or

(b) A consultant or other person, whether or not employed by the participant or paid with Federal funds, who --

(1) Is in a position to handle Federal funds;

(2) Is in a position to influence or control the use of those funds; or,

(3) Occupies a technical or professional position capable of substantially influencing the development or outcome of an activity required to perform the covered transaction.

(c) For the purposes of Department of Education title IV, HEA (Higher Education Act of 1965) transactions --

(1) A third-party servicer, as defined in 34 CFR 668.2 or 682.200; or

(2) Any person who provides services described in 34 CFR 668.2 or 682.200 to a title IV, HEA participant, whether or not that person is retained or paid directly by the title IV, HEA participant.”