January 17, 2006

TG celebrates 25 years of guarantees

Round Rock, Texas — This week TG celebrates the silver anniversary of its first student loan guarantee. The $1,850 loan, borrowed at nine-percent interest from Herring Bank of Amarillo, Texas, allowed a Baylor University student to attend classes for the 1981 spring semester.

Although TG's current guarantee process is nearly instantaneous, it wasn't quite as streamlined two-and-a-half decades ago. TG could only guarantee about 125 applications per day because that was the maximum number the Harris computer could handle for batch printing to be completed by the following day.

"Applications were one page, and then the promissory note printed out after the loan was guaranteed," recalled Janet Weber, TG claims examiner. "Every application was keyed twice to make sure there were no mistakes."

Dianne Ivy, TG senior accountant, also recollects a much more labor-intensive process. "When I started doing the federal reporting in July of 1981, you had to report everything in detail," she commented. "They wanted each loan listed separately. Everything was typed on a typewriter. It was all done by hand - green ledger pads, calculators, and paper."

Over the course of the first 12 months of guarantee operations, TG guaranteed 55,935 loans for a net cumulative amount of $138,663,631. In comparison, for the most recent fiscal year TG guaranteed 878,691 loans for a total of $3.3 billion. And cumulatively since that first guarantee, TG has guaranteed more than nine million student loans totaling over $40 billion, enabling more than 3 million students to pursue a postsecondary education.

"Our many accomplishments have always been and continue to be guided by the students we serve through strong alliances with schools, lenders, secondary markets, and servicers," said Sue McMillin, TG's president and CEO. "Without these organizations, we never would have made it to this point. The solid participation and strong partnerships we rely upon daily have been the key to TG's success."

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About TG: 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