TG Solutions and Tools

Enhanced EFT—Simplifying Electronic Funds Transfers

Recent enhancements to TG's Electronic Funds Transfer (EFT) process allow TG to act as a single disbursing agent not only for TG-guaranteed FFELP loan disbursements but also for non-TG-guaranteed FFELP loan and alternative loan disbursements.

"Interfacing with one disbursing agent simplifies the disbursement process for financial aid and fiscal offices by reducing paperwork and time spent in administration," said Vickie Tanner, TG's Assistant Vice President for Customer Services. "Since TG's EFT process allows schools to choose which loan funds they would like to receive electronically, the process provides the flexibility that schools need."

Added Features
The ability to offer electronic disbursements for FFELP and alternative loans through one process is only one of several enhancements the new EFT process offers. TG has also added the following new EFT features:

• The ability to accept and process CommonLine Disbursement Rosters from lenders/servicers (either through POP3 encrypted protocol or through AdvanTG Web™).
• The ability for lenders to inform TG, via the CommonLine Disbursement Roster, that they are paying origination fees on behalf of students. TG's EFT process adjusts disbursement amounts and reflects the net disbursement in EFT reports.
• A simplified reporting and reconciliation process is now available. Reports can now be accessed through TG's Report Request/Distribution System (RRD), either the desktop version or the web version. Schools and lenders can continue to receive TG's proprietary EFT reports—Payment Detail and Advanced Debit Notification—for TG FFELP loans or can choose to use the CommonLine Disbursement Roster for an integrated report that includes TG FFELP, non-TG FFELP, and alternative loans.

Continued Benefits
Since 1991, TG's EFT has disbursed more than $5 billion in student loans in nearly three million disbursements. Veteran users can either continue to use EFT as they always have—to disburse TG guaranteed loans only—or can add other disbursements to their EFT process.

In addition to flexibility, the new process offers the following benefits:

• Simplicity: With one disbursing agent, users get a process that's easy to manage—one report to reconcile saves time and trouble.
• Service: TG's team of customer service representatives is available when help is needed—by phone, fax, or .
• Complete Automation: When schools allow borrowers to select automatic deposit, the student's entire disbursement process is fully automated.

Benefits to Schools
EFT offers schools a single EFT source of data and funds, all at no cost to the school or the borrower, along with:

• Elimination of paper checks for alternative loans.
• Elimination of multiple disbursement timelines and processes.
• The ability to offer students the additional borrower benefit of lender-paid origination fees.

Benefits to Lenders
Lenders, too, receive a single EFT source for TG FFELP, non-TG FFELP, and alternative loans, along with:

• CommonLine compliance.
• The accompanying ability to offer origination fee payment in the EFT market.
• Cost efficiency.

Questions
For questions about how TG's EFT enhancements can help simplify your disbursement process, contact TG Customer Services at (800) 332-1455 or send an message to product.support@tgslc.org.

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Finding the Right Tool

Everyone knows that the right tool makes the job easier. The same is true for battling default.

That's why TG offers a variety of tools to make it easier for its partners to identify and work with borrowers who need default prevention help the most. Some of the available tools are:

• TG's Default Management Report, a special report designed to help schools identify borrowers that might benefit the most from default prevention efforts.
• Default Prevention—A Model for Institutions of Higher Learning, a model for default prevention developed from work conducted at the University of Texas-Pan American and published in booklet form by the Council for the Management of Educational Finance and TG.
• TG's Report Request/Distribution System, a system for creating and receiving reports that provide the information schools and lenders need to identify borrowers needing repayment support.
• TG's Virtual Default Conference, a searchable database of suggested strategies for successful default prevention.

Practical Strategies
TG's default prevention team will offer information on these tools and others, including brochures, posters, and online resources, during a series of training events beginning in March 2002.

Find out more about the "Practical Strategies for Effective Default Aversion" workshops and register online at www.tgslc.org.

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