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TG Updates
TG modifies systems to accommodate changing lender participation levels
FFELP lenders are facing many challenges in today’s economic environment and, as a result, must make difficult decisions about their continued participation in the FFELP. As a consequence, some lenders will be unable to fund some loans that TG has guaranteed.
In an effort to help schools and their borrowers who find themselves in this situation, TG has been working with schools and borrowers to obtain a new lender so a new guarantee can be issued.
Profile changes
On June 12, TG implemented school and lender processing profiles to reduce the number of guaranteed loans with funding issues. To facilitate this process, TG encourages lenders to contact their TG lender consultant about any changes to their lending criteria as soon as possible.
During the TG guarantee process, TG will use the new lender processing profiles to reject applications based on the lender's criteria. TG's loan guarantee operations (LGO) will monitor these rejected applications and contact affected schools as appropriate.
LGO will also provide the affected schools with a list of loan applications that are currently pending guarantee. TG will respond to the school's application send record with a CommonLine denial response containing an error code of 082. The newly-implemented TG edit code for these rejected applications is L40. Additionally, AdvanTG Web™ users may use existing reports to query for these rejected applications.
Processing options
TG will mail a letter to each affected borrower advising him or her to contact the school to select an alternate lender. If the borrower contacts LGO, options for selecting a different lender will be provided.
Upon the borrower's selection of a new lender, the following options are available to the school to process the new application effectively:
- AdvanTG Web schools can use the Denied Applications query in their AdvanTG Web databases to easily facilitate the resubmittal of the applications. To do this, change the lender number on Denied Applications to the borrower's new selected lender number and transmit a pre-guarantee correction record to TG. The CommonLine correction records can also be created in your financial aid management system (FAMS) for transmittal to TG through AdvanTG Web.
- Non-AdvanTG Web schools can submit a CommonLine pre-guarantee correction record with the borrower's new selected lender.
- TG's Real Time Access (RTA) system can also be used to correct and guarantee the applications.
- Schools or borrowers can contact TG's loan guarantee operations at (800) 446-5616, or send an e-mail message to lgo.helps@tgslc.org to have the application(s) corrected and guaranteed.
Once the loan is guaranteed, the school will receive a CommonLine Guarantee response. The borrower will need to sign a new master promissory note (MPN) and send it to the associated lender before the lender can release any loan funds.
Important notice: Deleting applications from TG's mainframe
If the school decides to create new applications instead of submitting a pre- guarantee correction record, the existing applications must be deleted from TG's mainframe. This will facilitate the guarantee process and avoid delays. The following options are available for schools to delete the application:
- Contact LGO by phone or e-mail. Schools can contact LGO at (800) 446-5616, or send an e-mail message to lgo.helps@tgslc.org.
- Submit CommonLine application termination requests to remove the applications from TG's system.
- For AdvanTG Web schools, modify the CL Record Status Code on denied applications to create termination requests and then submit to TG. Please note that deleting the applications from your AdvanTG Web database will not delete the applications from TG's mainframe.
Questions
For assistance with using any of the above electronic methods, please contact TG's product support group at (800) 332-1455, or send an e-mail message to product.support@tgslc.org.
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NASFAA conference watch: TG offers session on automating lender selection process
Preferred lender lists (PLLs) have been subject of recent industry examination and discussion because of regulatory changes and public attention. To help schools understand their options with regard to PLLs, TG offers a special training session at the 2008 NASFAA Annual Conference titled "Automating your lender selection process."
The session will be offered twice: on Monday, July 7 at 2:45 p.m. in Room Europe 6; and again in the same room on Tuesday, July 8, at 10:15 a.m.
TG's session has been designed to provide financial aid professionals with a timely and relevant discussion of PLLs. Among other things, the session:
- Offers an overview of current issues surrounding lender lists;
- Examines why schools elect to use a PLL;
- Suggests practices for handling the creation of a PLL; and
- Offers examples of how schools have developed their own lists.
Attendees will also be given a preview of TG's forthcoming lender survey tool: List AssistSM.
Discussion will also focus on ways to simplify lender list creation to give schools and their students more confidence in the selection process and help schools in maintaining the data they receive from lenders.
More information
To learn more about the conference and to view an agenda, visit the NASFAA Annual Conference 2008 Web site. To learn more about TG's training offerings, including sessions on regulatory and industry issues, review the online TG Speakers Bureau catalog at www.tgslc.org/speakers/basics.cfm.
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Join TG at symposium on financial literacy counseling
Are you looking for ways to help your students understand financial concepts and money management? TG offers a specially designed symposium featuring two experts on implementing money management programs on college campuses.
TG's 2008 Financial Literacy Counseling Symposium will be held on Friday, June 27. Geared for higher education professionals, the symposium will be held from 9:30 a.m. to 3:30 p.m. at the Dallas-Fort Worth Airport Marriott. Registration is free.
On the agenda
Dr. Dottie Durband, director of Texas Tech University's "Red to Black" program, and Danielle Champagne, assistant director of the University of North Texas' "In the Green" program, will discuss how to develop campus-wide financial literacy counseling programs that best meet the needs of individual schools.
As the average student loan debt has doubled in the last decade and the use of credit cards increases, colleges and universities are recognizing the need to teach students basic money management skills.
Discussion at the symposium will focus on these topics among others:
- Conceptualizing financial literacy initiatives,
- Securing approval and funding,
- Implementing financial literacy initiatives, and
- Improving a successful financial literacy program.
To register
For more information about TG's 2008 Financial Literacy Counseling Symposium, or to register to attend the event, visit TG Online at www.tgslc.org/training/literacy/.
Questions
For particular questions about the symposium, contact Mike Nowlin at (800) 252-9743, ext. 4814, or send an e-mail to mike.nowlin@tgslc.org.
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