In accordance with section 34 CFR §668.164(e)(2)(x)(A)-(B) of the U.S. Department of Education’s amended Cash Management regulations published in the Federal Register on October 30, 2015, your institution is required to conduct and document reasonable due diligence every two (2) years. The Secretary defines this requirement as met in two ways: (i) the institution must conduct due diligence every two (2) years to determine whether the fees associated with the financial account offered under a T1 Arrangement are “considered as a whole, consistent with or below prevailing market rates”; and (ii) the contract governing the T1 Arrangement includes a provision for termination due to student complaints or if the institution determines the fees associated with the financial account offered under a T1 Arrangement “are not consistent with or are higher than prevailing market rates”.
As it relates to requirement (i) noted above, in addition to the institution conducting its own reasonable due diligence related to the student financial account offered by us under the T1 arrangement, we recommend that your institution review the documentation listed below to “ascertain whether the fees imposed under the T1 arrangement are, considered as a whole, consistent with or below prevailing market rates”: