HCERA-SAFRA Not-For-Profit Servicer Program

The HCERA-SAFRA Not-For-Profit Servicer Program is a master Indefinite Delivery/Indefinite Quantity (IDIQ) contract administered by the U.S. Department of Education's Office of Federal Student Aid (FSA). The contract focuses on providing Title IV student financial aid servicing in accordance with Section 2212 of the Health Care and Education Reconciliation Act of 2010. Under this vehicle, not-for-profit and state-affiliated entities are awarded task orders to manage, process, and support student loan servicing operations, including loan maintenance, borrower support, contact center services, and back-office processing functions.

Task orders under this contract are consistently structured as firm fixed-price delivery orders with performance periods typically ranging from one to two years, most commonly from October 1st to September 30th of the following year. Frequent prime contractors include state-level higher education loan authorities such as the Missouri Higher Education Loan Authority (Mohela), Utah Higher Education Assistance Authority, Oklahoma Student Loan Authority, and New Hampshire Higher Education Loan Corporation. The task orders vary significantly in value, from approximately $1.7 million to over $650 million, with recent task orders in 2019-2020 showing values between $14 million and $328 million. No small business set-aside designations were used in the reviewed task orders, and the primary place of performance appears to be in the home states of the servicing organizations. All task orders are part of the Department of Education's critical function for managing federal student financial aid.