TG Default Prevention Issues New RFA Policy

RFA Submittal
Texas Guaranteed Student Loan Corporation (TG) is adjusting the timeframe it follows in requiring the submission of the Lender Request for Assistance (RFA). The change will move the RFA filing requirement 30 days earlier into the borrower's delinquency. Currently, lenders are required to send TG Default Prevention (DPRV) an RFA (or the equivalent electronically or by tape exchange) each time a borrower's account becomes 80­100 days past due.

Effective for loans with past due dates on or after July 1, 1999, the RFA filing requirement range will be between the 60th and 80th day of delinquency. RFAs for loans with past due dates on or after July 1, 1999, that are received by TG after the 85th day of delinquency will be considered to be filed late.

TG will be ready to conduct system testing with lenders and servicers between July 1, 1999, and August 29, 1999, to ensure that the RFA electronic and tape process is working properly before the change is put into production. A successful test run will be required before a submission is accepted into TG's production environment. Lenders and servicers that submit RFAs electronically or by tape should contact Art Cruz at (800) 252­9743, ext. 4934, or Sharon Dill at ext. 4647 to schedule test submissions during this period.

RFA Cancellation/Cure Submittal
TG's policy for submitting cancellations (or cures) for previously filed RFAs has also changed. Effective immediately, lenders and servicers are required to submit RFA Cancellations/Cures only when the account is brought to zero days of delinquency. This does not include RFA Cancellations/Cures for RFAs filed in error. Lenders and servicers must also report the next payment due date after the canceling/curing transaction is applied by completing section 19 (Next Due Date) of the Cancellation of Lender Request for Assistance (RFA) or by completing field 135­142 on the RFA Cancellation record of the file layout.

Effective Date for Delinquency Level Reporting
TG has determined the effective date for the change in the delinquency level reported on the weekly school report as announced in the April 1999 issue of Shoptalk. The effective date will be August 30, 1999. Beginning as early as August 30, 1999, or as late as October 13, 1999, (for timely filed RFAs), delinquencies will be reported to TG at both the 60­day level and the 90­day level. During this period, TG will report borrower delinquencies to schools at day 60, 90, and 159 instead of at day 90 and at day 120, on TG's Notice of Default Prevention Activity for Week Ending MM/DD/YY report. After October 13, 1999, (for timely filed RFAs), TG will report borrower delinquencies at day 60 and at day 159. TG will remind each school individually before the change occurs.

The report is currently provided to schools by subscription and is available in paper and electronic formats. Schools can begin receiving the report or change the format of their report by contacting Art Cruz or Bryan Fritch at (800) 252­9743, ext. 4934 or 4681, respectively, or by sending an e­mail request to art.cruz@tgslc.org or william.fritch@tgslc.org.

Updated Forms
For lenders and servicers submitting RFAs in hard copy, samples of the revised Lender Request for Assistance (RFA), Form 201, and Cancellation of Lender Request for Assistance (RFA), Form 466, are included with this edition of Shoptalk. Additional master copies of forms, or supplies of forms, can be ordered by calling TG Customer Services at (800) 252­9742, ext. 4546.

Questions
For questions regarding these policy changes, contact Art Cruz at (800) 252­9743, ext. 4934, or Shelia Dunlap at ext. 4642.