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TG Public Policy

For more information, contact:

George Torres,
TG Senior Advisor to the President for Congressional and Legislative Relations
george.torres@tgslc.org

Kelly Kaelin,
TG Senior Policy and Legislative Liaison
kelly.kaelin@tgslc.org

TG Public Policy Positions

TG keeps up with the latest policy ideas circulating in the financial aid industry. In addition, TG has a history of working with state and federal policymakers in supporting ongoing improvements to the student aid programs.

On this page, TG provides analysis and positions on a variety of public policy issues. The page also contains recent correspondence with state and federal policymakers that is relevant to the current environment.

  • Guarantor Chief Executive Officer (CEO) proposal
    A coalition of the majority of the nation's guarantors has submitted a legislative proposal to the Congress that proposes to provide a continuing role for all FFELP guarantors as "borrower assistance providers" in a post-FFELP environment after July 1, 2010. The proposal, supported by TG, outlines 10 specific borrower and school advocacy and support roles the borrower assistance providers would provide in their respective states through agreements with the Department of Education. These support roles include:
    • Providing student loan borrowers with financial literacy education;
    • Encouraging students to refrain from incurring unnecessary student loan debt (including private education loan debt);
    • Providing or assisting with entrance and exit student loan counseling to borrowers;
    • Providing resources to assist borrowers in selecting a loan repayment plan and in applying for any loan cancellation, forgiveness, deferment, or forbearance for which they may be eligible;
    • Working with borrowers to avoid delinquency and default;
    • Providing counseling to defaulted borrowers on appropriate account resolution options, including loan rehabilitation;
    • Assisting students and families with student loan issue resolution through ombudsman services or the equivalent;
    • Providing training and assistance to institutions of higher education regarding the federal student aid programs;
    • Working with the Secretary to assure proper administration of the federal student loan programs, and
    • Outreach and support services for college access and success.
    The proposal provides that borrower assistance providers receive a borrower services fee for federal student loans (including Direct loans but not Perkins loans) originated after July 1, 2010, and continues compensation for all guarantors under the current guarantor fee structure for existing FFELP loans serviced by the provider within each provider's FFELP portfolio. The proposal also includes a provision that requires the Department of Education to establish performance measures.
  • National Association of Student Loan Administrators (NASLA) proposal
    TG is a member of NASLA, a forward-thinking alliance of four guarantors (the other members include American Student Assistance®, California Student Aid Commission/EdFund®, and Great Lakes Higher Education Guaranty Corporation®) that embraces a culture of innovation and is organized to ensure consistent, reliable delivery of student loan services to the nation's students, parents, and postsecondary institutions.

    NASLA was created to ensure these services over the life of the loan through:
    • Serving as public advocate for students and borrowers
    • Providing value-added services over the life of the loan, such as default prevention and portfolio management
    • Instituting performance-based incentives and revenues to support these services
    • Adopting open systems and common data sources
    NASLA has submitted a legislative proposal to the Congress that proposes that each nonprofit entity or state agency which currently serves as a guaranty agency serve as a single point of contact for borrowers, prospective borrowers, families, schools, and related third parties to assist in the proper administration and support of the student loan programs, regardless of the source of funds for the loan. Such an agency would provide program support services including, but not limited to:
    • Assisting students and families with information and advice on financial aid and student loans;
    • Providing in-person training and assistance to schools and financial aid officers;
    • Offering quality student and family outreach, financial literacy, publications, and internet assistance;
    • Providing or advising on persistence and completion programs;
    • Providing or assisting with entrance and exit student loan counseling to borrowers;
    • Providing phone, internet, and in-person counseling, financial literacy, and assistance to student loan borrowers;
    • Assisting borrowers in selecting a loan repayment plan and in applying for any loan cancellation, forgiveness, deferment, forbearance, or repayment benefits to which they are entitled.
    • Averting delinquency and defaults of student loans;
    • Rehabilitating defaulted student loans; and
    • Partnering with the United States Department of Education, including program reviews of participating institutions of higher education in accordance with regulatory guidance or directives of the Department.
    Under the proposal, each school can select the guaranty agency or agencies from which it will receive program support services. In addition, each borrower can select the guaranty agency from which he or she shall receive program support services, irrespective of state designation or selection by a school.

    For providing these services, guaranty agency will receive a monthly borrower advocacy fee and be subject to performance measures.

    NASLA has also prepared a one-page summary outlining its viewpoint concerning the role of the guarantor entitled A Student’s Right. A Guarantor’s Mission.
  • A Message from Sue McMillin, TG President and CEO, published in TG's Shoptalk Online (March 10, 2009)
  • Letters TG has sent to the U.S. Congress

    • A letter from TG President and CEO Sue McMillin to the Texas Congressional Delegation asking them to advocate for separating the president's proposal to eliminate subsidies in the FFELP from the budget reconciliation process (March 2009)
    • A letter from TG President and CEO Sue McMillin on behalf of the National Association of Student Loan Administrators (NASLA) in support of the enactment of HR 2492, which, if enacted into law, will ensure that federal student loan debt forgiven through the Income-Based Repayment (IBR) and Income-Contingent Repayment (ICR) programs is not taxed as income, and which would amend the Internal Revenue Code accordingly (June 2009)
    • A letter from TG President and CEO Sue McMillin to Senator John Cornyn expressing support for the Guarantor CEO proposal (see above).
  • Letters TG has sent to the Governor of Texas

    • A letter from TG President and CEO Sue McMillin to Texas Governor Rick Perry informing him of TG's continued stability and about the continued accessibility of student loans in Texas despite recent national student loan liquidity issues (November 2008)

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