TG Updates

TG to continue to subsidize federal default fee on behalf of students

TG's Board of Directors today voted to continue to subsidize the 1 percent federal default fee for federal Stafford and PLUS loans for student and parent borrowers for the 2008-09 award year.

The decision will result in savings for more than 500,000 borrowers whose loans will be guaranteed by TG between July 1, 2008 and June 30, 2009, regardless of which postsecondary school a student attends or of the financial institution issuing the loan.

This is the third consecutive year that TG will subsidize the federal default fee. TG has helped more than 2.2 million borrowers through the waiver and subsidization of guarantee and federal default fees since 1999.

"Subsidizing the federal default fee provides a direct benefit to borrowers," said Sue McMillin, TG's president and CEO. "This decision by our board of directors also reflects TG's commitment to help reduce expenses for students, many of whom must overcome economic obstacles and other societal factors in order to have access to college."

The Deficit Reduction Act requires guarantors to deposit 1 percent of the amount of loans guaranteed and disbursed on or after July 1, 2006, into the federal fund. The federal fund is owned by the federal government and covers its risk associated with student loan default. TG's board of directors carefully determines whether to continue this subsidy before each award year.

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TG appoints Carmen Dominguez to its relationship management and consulting team

Carmen Dominguez has joined TG as a relationship management consultant for corporate school accounts, a new position with the federal student loan guarantor.

In her new role, Carmen will lead TG's effort in developing relationships with national postsecondary education schools. She has 22 years experience in the student financial aid industry. Carmen spent the last five years with College Loan Corporation as a senior vice president of school relations.

She also served two years as a director of business development for Collegiate Funding Services in Fredericksburg, Va., and three years as a sales executive for Bank One Education Finance Group in Phoenix, Ariz. Prior to that, Carmen worked 10 years at Apollo Group, Inc., the parent company of University of Phoenix campuses, in various training, compliance and management positions.

She also has worked in financial aid for United States International University in San Diego, Arizona State University, and Mesa (AZ) Community College.

Carmen earned a bachelor of arts degree from the University of Phoenix, and is completing her master of science degree from Grand Canyon University in Phoenix, where she will be based with TG.

"Carmen's experience on the lending side of the industry, as well as in financial aid for a large corporate school, will serve her well in this new position," said Kevin Struckhoff, TG's assistant vice president for relationship management and consulting. "She has a proven history of success that will be invaluable in helping TG succeed in this sector of the industry."

For help
Carmen can be reached at (800) 252-9743, ext. 6709, or by e-mail at carmen.dominguez@tgslc.org.

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TG releases NSLDS submittal schedule for 2008

TG's data reporting team has released its 2008 schedule for reports to the National Student Loan Data System (NSLDS). Here is how the report process works. Please refer to the chart below for specific submittal due dates.

• A lender sends to TG its Lender Manifest or Common Account Maintenance (CAM) records by the date in the left-hand column each month on the chart below.
• TG processes the file and updates its database.
• TG then sends loan changes to the NSLDS, which updates its system, making the most current data viewable to schools by the corresponding date in the right-hand column of the chart. In this way, schools have the freshest data available on their borrowers in order to make subsequent borrower eligibility determinations.

2008 NSLDS Submittal Schedule

*Note that, due to the holiday, the data will be viewable on Tuesday instead of Monday.

**Keep in mind that, due to the holiday, lenders must have their updates in on Wednesday.

More information
For more information on TG's submittal schedule, contact TG's data reporting team at good.data@tgslc.org.

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Luanne Dodge, TG's ombudsman, offers the ear that helps borrowers find solutions

Luanne Dodge knows something about the art of intervention — as TG's ombudsman, she's been practicing it for more than eight years.

The Office of Ombudsman serves as one resort for borrowers looking to resolve a question or loan dispute. Ombudsmen do an extensive amount of research into a case, creating a chronological and factual picture so that borrowers can make the best decision given their options.

However, hearing and helping resolve borrower disputes is not always an easy profession. Luanne considers questions on a range of issues — from simple confusion on completing the Free Application for Federal Student Aid (FAFSA) to a long-term pattern of default. Borrowers may be open to suggestions or feel blind-sided by processes they don't understand. To do well in such a position requires an uncommon degree of sincerity and industry experience. Add to this Luanne's considerable abilities as a communicator and you have the makings of a successful ombudsman who regularly receives very grateful thank you notes from borrowers.

Concrete results
But Luanne can measure her success in other concrete ways. At the end of each year, Luanne reviews her case load to see how borrowers have fared. Over 60 percent of her customers report an effective resolution — many return to voluntary repayment, rehabilitate their default, consolidate, or pay the loan in full. That's an impressive number, which, according to Luanne, reflects several things.

"Often, borrowers simply want to be heard, which, in many cases, is the first step toward accepting their situation and making a change," said Luanne. "I build a foundation of trust and respect with the customer by listening attentively. I think once borrowers know you're being attentive, they feel less defensive, drop their guard, and become more ready to hear an impartial perspective."

The secret of Luanne's success lies with a seemingly simple ability: She treats each borrower as if that person was her son or daughter — or even herself.

"You have to be objective in this job, but for the borrower to act on what you recommend, you have to gain his or her trust. I treat them the way I would want to be treated and tell them the things that I would want to know to make a decision," said Luanne. "I think to do well in this job, you have to be professional, thorough, accurate, but, most importantly, offer borrowers a measure of hope."

Peer support
TG established its Office of the Ombudsman in 1994 — one of the first guarantors to do so. Today, TG's ombudsman is one of several who form a Caucus of Student Loan Ombudsmen, which meets several times a year. The organization serves a network of professionals throughout the student loan industry, who support each other with recommended best practices and information.

"Collaboration is an important element of the ombudsman role," said Luanne. "The Caucus really works together to identify trends in the industry that affect borrowers. We're interested in becoming more of a voice for borrowers at the legislative level."

According to Luanne, working with fellow members of the Caucus extends her abilities to advocate for borrowers. Through training and mentoring, the group helps to establish a standard of ombudsmanship and ensure that borrowers are given the most capable support.

Over the years, the Caucus has evolved, says Luanne, and seeks to become a force for positive change in the student loan industry. "I feel optimistic that we can add to the discussion in higher education. Our goal is to help borrowers get the best deal given their efforts and to ensure the long-term health of our educational system."

For help
For more information on TG's Office of the Ombudsman, visit TG Online at www.tgslc.org/students/ombudsman.cfm. Borrowers can contact TG's borrower advocate directly by sending written requests to:

TG Ombudsman
P.O. Box 201725
Austin, TX 78720-1725

In emergency situations, borrowers can also call (800) 252-9743, ext. 4502.

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