June 1, 2005

Texas Legislature affirms TG's mission, benefit to higher education/financing community, families, students

Round Rock, Texas — The Texas Legislature has extended TG's charter of operations for another 12 years, the maximum renewable term.

TG's Sunset Bill, HB 2274, officially became law on May 27, 2005. The legislation formalizes the recommendation of the Sunset Commission, which has conducted a thorough evaluation of TG's mission and operations over the past two years. This review by the Legislature is required under the Texas Sunset Act, which specifies that a commission composed of legislators and public members periodically evaluate certain state-founded organizations to determine if they are still needed, and what improvements are necessary. Based on the recommendations of the Sunset Commission, the Texas Legislature ultimately decides whether an entity continues to operate into the future.

The review not only examines fiscal accountability, but also the organization's mission and vision. In their official report, the Sunset Review staff stated, "TG functions effectively in its role as FFELP administrator with the State benefiting from TG's commitment to students, schools, and lenders." The report also noted that "TG's progressive use of technology has made the financial aid process more efficient for FFELP participants," and that "TG's customers - borrowers, schools, and lenders - give TG high marks in customer service."

"We are pleased that the Governor's office, the legislature, and the Sunset Commission have affirmed the value of TG's work in helping students realize their educational and career dreams," said Sue McMillin, TG president and CEO. "Since our founding in 1979, TG has been committed to simplifying the financial aid process for schools, lenders and the students we all serve. We've come to be known for the quality of services and resources we provide, and we're proud to have the commendation of those who founded our organization, who feel that we're not only fiscally and operationally sound, but that we're staying true to our original mission."

By the time the Commission adopted its staff's report, the following two recommendations were added to the legislation:

• each Texas agency that conducts higher education and outreach activities shall enter into a memorandum of understanding with TG to outline how TG and the other agency will coordinate outreach activities to maximize resources; and
• TG shall conduct a biennial study on the demand for student financial aid in Texas for future legislatures.

"Throughout the process, it has been apparent that the Sunset Commission and staff have been favorably impressed by TG's involvement in educational outreach and student financial aid research," said George Torres, TG assistant vice president for government affairs. "The legislature basically wants TG to continue its active involvement, which speaks highly of our commitment to educational access and success."

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TG is a public, nonprofit corporation that helps create access to higher education for millions of families and students through its role as an administrator of the Federal Family Education Loan Program (FFELP). Its vision is to be the premier source of information, financing, and assistance to help all families and students realize their educational and career dreams. Additional information about TG can be found online at www.tgslc.org. This press release can be downloaded from www.tgslc.org/newsroom/.

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Contact:
Kristin Boyer
TG
(512) 219-4990
(800) 252-9743, ext. 4990
kristin.boyer@tgslc.org