TG updates

TG and Council offer new guide on school-servicer partnerships to enhance default prevention efforts

TG and the Council for the Management of Educational Finance recently unveiled a new version of Servicers: Your Partners in Default Aversion – A Guide for Institutions of Higher Learning.

How the guide helps schools
Cohort default rates in Texas have followed the downward trend seen nationally in recent years. However, default aversion continues to be a high priority for TG and the Council because rates tracked beyond the cohort calculation reflect an increase in defaults. This trend drives TG and the Council to remain proactive in helping institutions implement innovative default aversion strategies, which ultimately benefit students and families. The guide is designed to drive action plans for developing strategic partnerships that will strengthen an institution's default management plan.

"Time and again, our experience confirms that partnerships are absolutely essential to successful default aversion efforts," said Milt Wright, TG president and chief executive officer. "Institutions that work with their servicer, lender, and guarantor partners can maximize default aversion activities and ultimately increase the overall success of students' ability to fulfill their loan obligations."

What's inside
The guide includes an overview of federal due diligence requirements, activities, techniques, and tools that servicers use for delinquency resolution. New features include highlights of innovative practices of the servicing, school, and guarantor communities that go beyond required due diligence. In addition, several strategies are provided for schools to incorporate into their default aversion efforts.

"The servicing community has long recognized the need for collaboration to reduce default rates," said Lance Teinert, Council member, Student Loan Servicing Alliance (SLSA) president, and senior vice president for LoanSTAR Systems, Inc. "Partnerships comprise a tenet in default aversion, and we are pleased that this guide continues to provide recent information and proven strategies that all partners in the industry can use to help reach families and students."

How to get a copy
The guide is available electronically on TG Online at www.tgslc.org/pdf/Servicer.pdf.

Printed copies of the guide are available by ing communications@tgslc.org. Please include your name, address, and telephone number in your message.

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