Sequestration_Affect_on_New_NFPs.docx

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HCERA/SAFRA - Not-For-Profit (NFP) Servicer Program Federal contract opportunity
Solicitation number
NFP-RFP-2010
Issued by
Department of Education Office of Federal Student Aid

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Sequestration Affect on New Not-For-Profit Servicers

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Sequestration Affect on New Not-For-Profit Servicers

The sequester provisions of the Budget Control Act of 2011 limit spending levels in the account used to fund not-for-profit (NFP) servicing operations. In order to stay within these levels, the Department will be unable to bring any additional NFP servicers on board in FY 2013. This includes NFP servicers scheduled for implementation during the remainder of the year and any servicers wishing to join existing servicing teams. The impact of a potential sequester in FY 2014 is unclear at this time but could be a factor in implementation schedules and other decisions regarding NFP activities beyond FY 2013.

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