TG Updates

encryption and TG Loans By Web™

Over the past few months, TG has been implementing an encryption program to help protect our customers' non-public, personal information (NPI).

The encryption process makes it easier for TG to communicate with its business partners by eliminating the need to remove NPI from correspondence with customers and business partners. To help maintain the security of all communications between TG and its customers and business partners, we will be implementing the encryption process for all TG Loans By Web (LBW) auto-dispatch customers.

There are several groups of auto-dispatch s which will be encrypted on a staggered schedule. To begin the implementation process, TG has been in testing with four schools that use the initial-certification auto-dispatch notification, and implementation is progressing with very little impact reported by either the schools or their borrowers.

LBW encryption overview
The following step-by-step process outlines the encryption process for LBW s:

1. TG sends out the encrypted LBW message.
2. Borrowers receive a message in their inbox stating that they have received an encrypted from TG. The message also explains TG's role in the process.
3. The borrower selects the message.
4. A Web browser window opens and asks the borrower to register on a secure server to read their message.
5. The borrower enters his or her login name, which is the address to which the message was sent, and creates a password.
6. The borrower then is able to retrieve his or her message.
7. Password resets and other assistance is provided by TG's customer assistance team at (800) 845-6267.

encryption
In accordance with TG's encryption and security policies, all LBW s must be encrypted. If you already use the auto-dispatch function, the messages will be encrypted automatically, regardless of whether you use the generic or a customized text message. The following types of auto-dispatch messages will be included in the encryption process:

• School-initiated auto-dispatch
  • LBW Certifications — An is sent when the school saves the application in AdvanTG Web™. The application is in an "L" (LBW) status. This is the initial that is generated telling the borrower that he or she needs to visit LBW and complete their loan.
  • LBW Reminder Notifications — A reminder that is generated based on any older "L" status records that have already had an notification sent. An older record is defined as one that is certification date plus one day.
• Borrower Request
  • Awaiting Certification — This notification is sent to a borrower who has requested a loan or loans and is waiting for the school to certify his or her request. This message will notify the borrower that the request has been received by the school and will be processed.
  • Awaiting Lender Approval — For schools that are set up for TG PLUS Credit Connection™ (PCC), an can be sent to tell a borrower that his or her request has been received and that it is awaiting approval by the lender.

LBW encryption timeline
TG would like all LBW schools to implement the encryption process no later than September 30, 2006. TG appreciates the cooperation and support of its customers during this necessary transition.

Schools that would like to volunteer for early integration or have a date in mind should send an to pmrequests@tgslc.org.

More information
To learn more about TG's encryption process and LBW, contact TG's product management team at (800) 252-9743 or send an message to pmrequests@tgslc.org.

You may also visit TG's encryption information page on TG Online at www.tgslc.org/resources/secur.cfm.

Back to Top

Reporting Back: 1989

By 1989 TG was entering a new phase in its history. With a larger than ever number of team members, a cache of diversified and sophisticated services, and a successful Sunset review by the state's Sunset Advisory Commission, TG had become an established resource for financial aid industry professionals, while always keeping its eyes on the future. Here are some highlights from that year's report:

"TGSLC experienced unprecedented growth this past year guaranteeing almost 300,000 Stafford loans representing over $800 million to students pursuing postsecondary education. On the financial side, the corporation's assets totaled $57.3 million — double the amount of 1985. The guarantee reserves were at $39.2 million, an all time high.

"Corporate staff also increased. We now number more than 400 employees. New employees attend a series of training sessions designed to make them familiar with the corporation and the guaranteed student loan program. Continuous training opportunities are available for experienced employees as well...

"On May 24, 1989 the 71st Texas Legislature approved legislation extending the Texas Guaranteed Student Loan Corporation for another twelve years. This legislation was the successful completion of an intensive two-year review by the state's Sunset Advisory Commission. This vote of confidence and renewal of our legislative mission ensures the longevity of this corporation through the year 2000...

"Ten years ago in 1979, the 66th Texas Legislature created TGSLC. The growth in our size and in loan volume has been dramatic since that formation. The early years of this decade were spent building a base of lenders, establishing the partnership between participating lenders and schools and TGSLC, formulating and implementing a foundation of systems and programs for TGSLC operations, and revising and expanding as growth occurred...

"The entire student financial aid delivery system is changing and evolving, and TGSLC is maturing along with it... By the year 2000 financing a postsecondary education for students and their families will be a major expense — even more difficult to overcome than it is today. TGSLC is dedicated to assisting our students in meeting the educational expenses of the future by maintaining our level of service while fulfilling our corporate commitment to keep fees as low as possible...

"It promises to be a challenging and rewarding experience. Everyone involved in this effort, from our initial creation to the successes of the 1980s, can be proud of our accomplishments and look for greater ones in the years ahead."

Back to Top

Question of the week

Q: Can a borrower be denied a student loan because he or she has filed bankruptcy?

A: No. According to the Common Manual section 5.6, "The Bankruptcy Reform Act of 1994 prevents a school or lender from denying a federal loan or grant to an applicant solely because he or she has filed a bankruptcy petition. Thus, a FFELP applicant is eligible for new loan funds despite the filing of a bankruptcy petition.

"If the school has information about a previous or pending bankruptcy action by a Stafford or PLUS loan applicant, the school may not refuse to certify the loan if the applicant is otherwise eligible. Also, the school may not, solely because of the bankruptcy action, certify a loan for an amount that is less than the amount for which the applicant would otherwise be eligible."

In addition, per the Common Manual subsection 7.1.C, "In the PLUS loan process, the lender must consider any debt discharged in bankruptcy to be adverse credit. However, if the lender has information on a previous or pending bankruptcy filing by a PLUS loan applicant, the lender may not deny the loan solely based on that filing."

Do you have a question?
If you have a question that needs an answer, feel free to Ask TG™. Ask TG is TG's online query tool for borrowers, schools, and lenders. Ask TG includes a database of frequently asked questions about financial aid, student loan processing, and TG's products and services. To submit a question to Ask TG, visit http://tgslc.custhelp.com.

Back to Top