Third Party Servicer Law and Legal Definition
Pursuant to 20 USCS § 1088 (c), [Title 20. Education; Chapter 28. Higher Education Resources And Student Assistance; Student Assistance; General Provisions Relating To Student Assistance Programs] for purposes of this title, the term third party servicer means “any individual, any State, or any private, for-profit or nonprofit organization, which enters into a contract with--
(1) any eligible institution of higher education to administer, through either manual or automated processing, any aspect of such institution's student assistance programs under this title; or
(2) any guaranty agency, or any eligible lender, to administer, through either manual or automated processing, any aspect of such guaranty agency's or lender's student loan programs under part B of this title [20 USCS §§ 1071 et seq.], including originating, guaranteeing, monitoring, processing, servicing, or collecting loans.”
