TG Updates

Join TG at the 2008 Annual Community College Forum

The Annual Community College Forum is a unique workshop experience geared for Texas' two-year postsecondary community. The forum offers an opportunity for representatives from Texas' two-year colleges to discuss unique challenges they face in the administration of federal and state financial aid programs.

This year's forum, which will be hosted by Austin Community College, will be held June 4 from 8:30 a.m. to 4 p.m. Topics for discussion include:

• An update on the federal regulatory scene;
• Information on the newly-created Teacher Education Assistance for College and Higher Education (TEACH) Grant program;
• Community college legislative issues;
• A report from the Advisory Committee for the Center for Financial Aid Policy in Community Colleges; and
• An open Q&A.

The forum is geared for directors and associate directors at community colleges. Note that, because of limitations on space, only schools will be allowed to register and attend.

To register and learn more
Austin Community College will be hosting the event at its Highland Business Center. For information about the forum and to register, visit TG Online at www.tgslc.org/cfapcc/forum/index.cfm.

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2007 TG Annual Report available online

TG's Annual Report for FY 2007 is now available to download or to request in printed form. The report provides a profile of TG's work in the FFELP over the course of the fiscal year with a special focus on TG's dedication to broadening college access and retention. It also highlights TG's financial strength as a corporation, investing in the right technology to serve students, schools, and lenders into the future.

Financially strong and dedicated to higher education
In helping customers, TG focuses on three principles of good business: great customer service, effective technological solutions, and insightful policy and industry expertise. Here are a few facts drawn from the report that illustrate the effects of this kind of approach:

• During its 26-year history, TG has guaranteed close to $50 billion in FFELP loans and assisted more than 3 million students and parents in financing higher education opportunities.
• In FY 2007, the Adventures In Education (AIE™) Web site was visited by about 325,000 students, parents, and educators. AIE earned an "A+" for providing quality online content and resources from Education World, a comprehensive, education-related Web site.
• In 2007, TG more than doubled the amount spent on competitive grants offered through its Public Benefit Grant Program to nonprofit entities and postsecondary institutions. These grants are used in projects and services geared to improve access to, or participation in, postsecondary education, college retention, and student access. TG awarded $3.8 million in grants during the year to provide help for students from low- to moderate-income families, and to address the particular needs of first-generation college students. In addition, $1 million was awarded in scholarships to financially-needy students.
• TG's reserve ratio — the key consideration in determining a guarantor's fiscal viability in paying out claims — ranks best among the 10 largest guarantors, and third among all guarantors.
• TG's total loan volume for FY 2007 was $4.2 billion.
• TG's service to customers and to business associates has earned TG an all-time high customer satisfaction score of 4.53 (out of 5.0).
• In FY 2007 alone, TG prevented more than $3.53 billion in delinquent loans from defaulting for about 342,000 borrowers.

To download a copy
You can download a copy of the 2007 TG Annual Report at www.tgslc.org/pdf/2007annualrpt.pdf.

To order a copy
You can also order a print copy of the report — just contact Joyce Henderson at (800) 252-9743, ext. 4546, or send an e-mail message to joyce.henderson@tgslc.org.

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TG offers students online tools to understand credit cards

Students are good credit risks for banks — despite the fact that they have student loans and often do not have jobs. Research shows that students stay loyal to their first card and continue to make purchases with it far into the future.

According to Forbes, the amount of credit card debt among students more than doubled between the mid-1990s and 2004 as a result of a massive marketing effort aimed at college students.

A recent study released by the U.S. Public Interest Research Group (U.S. PIRG) shows that 76 percent of students say credit cards have been marketed to them on or near college campuses, and nearly a third of these students have been offered a free gift ranging from t-shirts to MP3 players.

A mass market
College students also receive an average of five mailings and four phone calls each month urging them to apply for credit cards. U.S. PIRG's findings are based on a nationwide survey of more than 1,500 college students at 40 colleges in 14 states.

When asked how they use their cards, more than half — 55 percent — reported that they use them for "day-to-day-expenses." The same number reported using them for books. The next highest categories reported were "weekends and pizza" and "emergencies," but very few consumers limited their response to "emergencies." Nearly one-quarter reported that they had used their cards to pay for college tuition.

TG offers students an instant education on the use of credit cards through two new, online tools available in AIE. These tools demystify sometimes hard-to-read credit card statements and offer a gauge on costs given typical credit card interest rates. Together, they should help students understand the potential liability heavy credit card use represents.

Reviewing the statement
If you've ever looked at a credit card statement, you know how difficult they can be to read. Credit card statements are filled with terms, numbers, and percentages that play a role in the calculation of a credit card balance. TG offers an interactive tool for understanding these terms and calcuations — a page on its AIE Web site which displays a facsimile credit card statement. Users just move their mouse over each part of the statement to read pop-up text that concisely defines a term or explains a calculation. The tool is easy-to-use and packs a great deal of information in a small format.

Simulating purchasing
TG also recently unveiled a new tool to help students understand the true costs of buying on credit. The Credit Card Skills Builder, also available through AIE, teaches students the credit card basics and demonstrates the cost of credit cards after finance and interest charges are added. The tool guides users through a simulated credit card spending spree and then calculates a virtual credit card bill summarizing purchases, available credit, and amount owed. Both fun and educational, the builder should help students understand the obligation credit cards represent and the need for caution in using them.

Find out for yourself
Learn more about the tool for reading a credit card statement and the Credit Card Skills Builder by visiting AIE at www.aie.org/College/Paying/Earning/Credit/index.cfm.

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