Tech Report

TG Loans by Web™ offers solutions to assist schools and students during changing times

Due to ongoing challenges in the financial markets, lenders are considering their options as to how best to manage their available capital and whether to continue making FFELP loans. This uncertainty, together with new regulations about schools and their lender lists, have some TG schools questioning how these changes will affect their borrowers, and more specifically, their borrowers' TG Loans by Web (LBW) experience. Rest assured LBW will be well equipped to handle lender shifts in participation. Continue reading this article for more specifics on LBW.

Lender no longer originates FFELP loans — effect on prior borrowers using LBW
Some lenders have indicated that they will no longer originate FFELP loans either temporarily or permanently. As a return borrower enters TG's LBW system, LBW recognizes the borrower and accesses his or her prior lender information. At that point the system will confirm if the lender is still an eligible LBW lender. If it is not, the lender selection page will not pre-populate a lender for the borrower but will instead prompt the borrower to select a lender. When the borrower chooses the "select a lender" button, the school's current preferred lender list will display, if the school has established one. If not, the borrower will have the ability to search the full database of TG eligible lenders. See sample screenshot below.

Lender originates some FFELP loans — Effect on borrowers using LBW
Some lenders have announced a partial suspension from the FFELP by limiting the borrowers to whom they will lend. To facilitate a smooth transition for the school and borrower in this instance, TG will be implementing new profile options for LBW to define relationships between specific lenders and schools. A couple of outstanding issues remain in this scenario, but TG is working to resolve them as quickly as possible.

Updates and Reminders
TG is conducting a survey of lenders to update the LBW database with current information. Lenders are being asked to indicate whether the lender is originating loans for all eligible borrowers at a particular school, whether the lender is originating loans only for some borrowers (e.g., serial borrowers) at that school, or whether the lender is no longer originating any loans for students attending the school.

Lenders and schools are reminded, however, that while TG can update the LBW database at a lender's request, schools are the only entities that can change their preferred lender lists so it is extremely important for lenders to inform both schools and TG of their lending plans.

Finally, it is important to note that TG's application processing is not being modified to stop the guarantee of a loan; if the application comes from a source other than LBW (e.g., LBW Batch, ELM, etc.), it will continue to guarantee as it does today. Therefore, it is important for schools to monitor the lender IDs on applications sent directly to TG for processing.

TG is targeting late May to implement the new functionality in LBW.

Questions
For questions about these changes to LBW, contact TG's product support group at (800) 332-1455, or send an e-mail message to product.support@tgslc.org.

Help in using LBW
TG now offers free instructional flyers to help borrowers complete loan applications through LBW. To order or download printable PDFs of the TG Loans By Web instructions, visit TG’s online ordering page at www.tgslc.org/order/index.cfm. Select the Loan Administration link under School and Lender Materials.

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