Concluding FFELP Originations – TG guarantee processing and products

Existing FFELP portfolio support

• TG has a $32 billion FFELP portfolio and will continue to provide the same high-quality services for its borrowers, schools, and lenders that customers have come to expect from TG.

• TG will continue to provide life-of-the-loan support for loans guaranteed by TG and first disbursed by June 30, 2010.

Provisions of the Health Care and Education Reconciliation Act of 2010

• First disbursement occurring before July 1, 2010– First disbursement and all subsequent disbursements

may be made under FFELP

• First disbursement occurring on or after July 1, 2010– Loan must be originated and fully disbursed under the

FDLP

Concluding FFELP originations

• Guarantee and disbursement processing• Continued FFELP loan processing• Private loan processing• Timeline for FFELP conclusion• TG product participants• Transition of originations• Helpful reports, tips, and resources

Guarantee and disbursement processing

Guarantee Processing

TG will be assisting customers by monitoring its guarantee processes:

•Beginning in mid-May, TG’s guarantee, support, and reporting (GSR) team will run reports to identify currently guaranteed loans with a scheduled disbursement date on or after July 1, 2010.

– Schools and lenders will be contacted to :• Verify disbursement dates • Advise of loans being cancelled, if necessary

– Schools and lenders can request a copy of report

– Contact lgo.helps@tgslc.org if you have any loans that meet this criterion

Note: TG will not contact borrowers whose currently-guaranteed loans have been cancelled.

Guarantee Processing (cont.)

• As of May 7, 2010 – TG is rejecting new loan requests with a first disbursement date scheduled on or after July 1, 2010.

• GSR will contact schools to verify first disbursement date before terminating loan request.

• Letters will be sent to borrowers whose loan requests have been terminated.

• At close of business on June 25, 2010 – TG will suspend TG Loans by WebTM (LBW), including PLUS Credit ConnectionTM (PCC).

• Borrowers accessing LBW will receive an outage page referring them to their schools’ financial aid office.

Guarantee Processing (cont.)

• Consolidation loans• GSR will not guarantee a Consolidation loan if the guarantee

date is on or after July 1, 2010.– GSR will contact the lender to:

• ensure that the guarantee date is correct.• terminate loans, as necessary.

• If GSR receives notice of the Consolidation loan via Common Account Maintenance (CAM) after the fact, the lender will be contacted, and the loan will be cancelled.

Guarantee Processing (cont.)

• Blanket guaranteed loans– GSR will not guarantee a loan submitted under a blanket

guarantee if the Lender Approval Date (guarantee date) is on or after July 1, 2010.

• If the date is on or after July 1, 2010, GSR will contact the lender to:– to ensure that the date is correct.– advise that the loan will be terminated, if necessary

• Other guarantee processing for lenders– It may be possible for TG to work with a lender to guarantee loans

not requested through LBW or not using TG’s Electronic Funds Transfer (EFT) service as late as June 30, 2010, if the first disbursement will occur by that date.

FFELP loan disbursement processing

• To assist lenders in managing the funding of second and subsequent loan disbursements and reissues for TG loans first disbursed before July 1, 2010:

– New edit within the roster process available by end of June 2010• Will look for at least one of the loan’s disbursements to be in a PAID status

with an Actual Disbursement Date before July 1, 2010.– If no such disbursement is confirmed, Roster transaction will be rejected

» CommonLine error code 094 – the processor or service provider will contact the school or file recipient

– GSR will proactively monitor Roster rejects and assist customers with quick resolution of rejects.

Continued FFELP loan processing

Continued FFELP loan processing

• For disbursements which remain in a “PENDING” status as of July 1, 2010:– TG will not routinely cancel loans

• This will permit sufficient time for lender reporting (CAM/Lender Manifest) updates to be made

• For FFELP loans first disbursed by June 30, 2010, TG will continue to support AdvanTG WebTM (AW) for second and subsequent disbursements, and change requests at least through June 30, 2011.

Timeline for FFELP conclusion

At close of business, TG will suspend TG Loans by Web

AdvanTG Web and EFT supported at least through this date for FFELP

Edit put in place which rejects loan requests with first disbursement on or after 7/1/2010

Last day for a FFELP loan to have its first disbursement made

Any federal student loan’s for which the first disbursement is made on or after this date must be originated and fully disbursed under the FDLP

Timeline for concluding TG FFELP Originations

May 7, 2010 July 1, 2010June 30, 2010

June 30, 2011

June 25, 2010

AdvanTG Web available for Private loan applications, change requests, and disbursement roster processing at least through this date

Private loan processing

Private loan processing

• AW will be available to process private loan applications, change requests, and disbursement rosters at least through June 30, 2011.

• TG is also committed to disburse private loans via its EFT service at least through June 30, 2011.

TG product participants

AW participants

• AW database considerations – User profile– Purge criteria– Reports available to assist with reconciliation

• Application status, change transaction, loan status

– Records will continue to be ‘refreshed’

LBW participants

• Consideration for schools as FFELP originations conclude– To allow schools more control as new loans may be requested

through close of business June 25:• Schools that have “borrower-initiated’ flows, whether for Stafford,

PLUS, or PCC, may choose to consider changing their profiles to “school-initiated” flows

EFT school participants

• Consideration for “customized” EFT schools– To allow for greater flexibility in receiving disbursements more

frequently and successfully up until June 30, which falls on a Wednesday

• Schools that have “customized” disbursement profiles (customized to received disbursements by Day of the Week) may choose to consider changing their profiles, if their schools’ business/financial model will allow

Transition of originations

Transition to FDLP – for schools

• Upon notification to TG:– Guarantees will discontinue– For AW participants, access to data will continue– Records will continue to be refreshed

• Lender manifest

• TG changes

– EFT accounts will remain active

For lenders ceasing originations

• Consideration as you notify TG:– Serial versus New Borrowers – How are they being handled

• TG is able to differentiate the lender’s profile

Helpful reports, tips, and resources

Helpful reports and tips

• TG is able to work with customers individually to create ad hoc reports for loans on TG’s system.– If you need additional information, send a request to

product.support@tgslc.org or call 800-332-1455.

• “Tips” are being published to assist TG participants as they conclude FFELP originations via:– AW Message Board (for AW schools)– TG Message Central– TG’s Shoptalk Online

Additional resources

• TG Online - Federal Direct Loan Program resources page– Resources pertaining to conclusion of FFELP originations– Federal Direct Loan Program resources– Questions and answers (Q&As)– Checklist for schools preparing for FDLP participation

• For assistance in your efforts to convert to FDLP, contact:– Your TG account executive at 800-252-9743– The Common Origination and Disbursement (COD) School

Relations Center at 800-848-0978 or CODSupport@acs-inc.com for the FSA Onboarding Team to request transition support

TG’s commitment to our customers

• TG will continue to provide life-of-the-loan support for loans guaranteed by TG and first disbursed by June 30, 2010.

• TG continues to expand our services in key areas of need in higher education that include:– College access and success– Financial Literacy– Default Aversion – Industry Training

© 2008 Texas Guaranteed Student Loan CorporationTo order additional copies, or to request permission to reproduce any of the information provided, please call TG Communications at (800) 252-9743. 0710-35017

© 2009 Texas Guaranteed Student Loan CorporationTo order additional copies, or to request permission to reproduce any of the information provided, please call TG Communications at (800) 252-9743.