Back to current
Shoptalk Online Contents

TG Updates

Shoptalk Online 463, July 15, 2008

TG Updates

TG completes preparations for school designations in lender-of-last-resort program

In accordance with ED's implementation deadline of July 1, 2008, TG has completed system enhancements to support the new lender-of-last-resort (LLR) provisions of the Ensuring Continued Access to Student Loans Act of 2008 (ECASLA).

The LLR program, as it has existed for many years, is designed to ensure that eligible student loan borrowers who are unable to locate a lender have access to FFELP funds through the LLR program administered by guarantors. With the passage of ECASLA, the LLR program was expanded to provide for the possibility of an entire school being designated as an LLR institution, if appropriate, thus qualifying all students attending the school to receive LLR loans. Federal rules require that a school request the LLR designation through the state-designated guarantor, for review and approval by ED. LLR loans may then be obtained through the designated guarantor in the state where the school is located or where the borrower resides.

TG's systems have now been updated to accommodate this new feature. Schools approved by ED for an LLR designation will be profiled as such on TG's system. The schools will be able to submit their loan certifications to TG for processing via current transmission methods; AdvanTG Web™ will not be required to obtain LLR loans through TG in such cases.

TG remains very hopeful that there will not be a need for school-wide LLR designations, given recent actions taken by Congress and ED to ensure broad access to FFELP loans during the coming academic year as the current credit market disruption is resolved. Nevertheless, these system preparations underscore TG's commitment to proactively ensure borrower access to FFELP loans in a smooth and efficient manner, in the event that LLR loans are needed to serve a school and its students.

For more help
Shoptalk Online will keep readers informed as developments occur. Schools seeking additional information about TG's LLR program can contact Cynthia Mayberry, TG's manager of the Texas region, at (800) 252-9743, ext. 4683. Lenders can contact Kevin Harris, director of lender relationships, at (800) 252-9743, ext. 2805.

TG awards $5.6 million in competitive grants to advance college access and student retention

TG has awarded more than $5.6 million in competitive grants to 49 institutions and nonprofit organizations to advance college access, student retention, and educational research. This is the fourth consecutive year that TG has awarded the competitive grants through its Public Benefit Grant Program, the company's philanthropic initiative.

In reviewing grant proposals, TG required each grant applicant to use the funding to improve access to, or participation in, postsecondary education, college retention, and student access. Grant funding was particularly targeted to help, either directly or indirectly, students from low- to moderate-income families. Priority also was given to proposals that addressed the needs of first-generation college students, and/or students who are under-represented in higher education.

TG's grant funds will help this year's award recipients with need-based grants to students; student mentoring and internships; pre-college outreach to students and families; academic support and instruction; student retention; student transfer guidance and support; and education research. Last year, TG awarded $5.2 million in grants to 42 institutions and nonprofit organizations. These grants are in addition to direct grant aid that TG provides through the Charley Wootan Grant Program.

"These grants reflect our continued commitment to support programs that directly benefit families and students," said Sue McMillin, TG president and CEO. "This year's grant recipients are providing services and shaping opportunities for needy students to realize their higher educational goals."

About TG's Public Benefit Grant Program
TG's Public Benefit Grant Program is administered based solely on merit and need, and without regard to the business of TG or any form of quid pro quo consideration.

TG latest Edufacts™: Economic downturn? Not necessarily for college graduates

TG's newest edition of Edufacts, a public information series on issues in higher education, examines recent research into the hire rates for recent college graduates.

According to the National Association of Colleges and Employers (NACE), the leading source of information on the employment of the college educated, the U.S. unemployment rate recently took a big jump to 5.5 percent, up from 4.5 percent during the same time in 2007. However, for recent college graduates the unemployment rate is less than half that — about 2.3 percent.

Despite the current anemic economy, and consensus by leading economists that it could get worse, recent college graduates are not having trouble landing good jobs. In fact, college graduates of the class of 2008 are finding jobs that pay better than their 2007 counterparts.

NACE's most recent report also found that hiring for college graduates of the class of 2008 will increase by 8 percent from last year, and that salaries are up 4 percent compared to 2007.

Why such positive prospects for graduates? Many employers may be taking a long-term approach in the hiring of recent college graduates and looking at more factors than just the bottom line.

The NACE report on 2008 college graduates shows that those with technical degrees are not only getting job offers ahead of other graduates, but also drawing the highest salaries. The average salary for a graduate with a chemical engineering degree is $63,749, an increase of 6.2 percent from 2007 and 10 percent from two years ago.

Graduates with computer science degrees had the highest average percentage salary increase from the previous year — 7.9 percent. This year, computer science majors are finding jobs that pay $56,921, second only to chemical engineers, and just ahead of electrical engineers ($56,512) and mechanical engineers ($56,429).

To learn more
To read the complete edition of this Edufacts, visit www.tgslc.org/edufacts/2008/edufacts_0708.cfm.

Bonnie Brinkley helps TG's guarantee, support, and reporting team go the extra mile

During peak season, TG's loan guarantee operations (LGO) team has a standing rule: Nobody goes home until the work is done. Some issues — like missing data — may require follow-up by others, but the LGO team does all it can to bring things to completion before the end of the day.

This peak season, LGO's strong work ethic has paid off. Call volume is up some 40 percent over this same time last year, with more than 24,000 phone calls and 25,000 e-mails expected by fiscal year-end. Response rates haven't suffered despite the excessive load. LGO answers e-mails and faxes within an hour and often resolves guarantee issues within the same business day. Borrowers and schools appreciate the speed at this time of year. They also like the fact that the team works rejected applications by hand.

"Our customers are our partners," said Bonnie Brinkley, assistant vice president of the guarantee, services, and reporting (GSR) team, of which LGO is one part. "We all work very hard to ensure that we meet the needs of our students."

Dedication like this is typical of team members at all levels in GSR. Bonnie herself offers a hand, manually entering loan changes and backing up team members when needed. At the same time, she serves as a "champion" for the TG customer, helping guide projects that enhance TG's guarantee services and products.

"It is my responsibility to make sure that our customers' needs are met," said Bonnie. "When a school or lender entrusts TG with its business, the experience should be as seamless for them as possible."

An opportunity with every loan
Bonnie manages two other teams in addition to LGO — the data reporting team, which, among other things, reports TG's loan data to the National Student Loan Data System (NSLDS); and the product support group, which helps customers process change transactions through TG and offers industry expertise in electronic loan processing and refresher training on TG products such as AdvanTG Web™. The LGO team itself handles a variety of other responsibilities besides rejected loan applications; for example, tracking student enrollment and processing pre- and post-disbursement loan changes.

Managing such a varied team of professionals is a great experience according to Bonnie. The family-like atmosphere of mutual support maintains team spirit and keeps everyone focused on priorities. Team members also share their expertise with each other, enriching the technical knowledge of colleagues. Bonnie likes the camaraderie and finds it very important in a changing loan industry.

"I believe in TG's mission more now then ever," said Bonnie. "I know from having a son who is a senior in college that this program is important. It is nice to work in an industry that does care about its students. These are not just random guarantees. Each loan represents a student's opportunity to get an education."

Loans start to finish
Bonnie was born in Ft. Lee, Virginia, and grew up on army posts in Virginia and Germany, then lived in North Dakota before settling in Texas. She started with TG about 20 years ago, joining TG's collections team and eventually becoming the legal portfolio supervisor responsible for the bankruptcy and administrative wage garnishment portfolio. In 2003, she moved to what is now GSR.

Working with loans in collections and now in guarantee has given Bonnie a thorough 'education' in the loan life cycle. But even with such broad experience, Bonnie often learns something new from TG's policy staff or from industry colleagues.

"We have very open communication here at TG," said Bonnie. "In addition to receiving updates from our policy and regulatory affairs team, I read the industry updates to be sure I stay up-to-date on all proposed and upcoming changes. I am also a member of the NCHELP Electronic Standards Committee — Origination Standards team. That team is the initial point of contact for industry issues concerning CommonLine flat files and XML documents related to the origination, change, and disbursement process."

Bonnie finds that working in a team environment offers its advantages, especially with a complex issue like student loan guarantee. Because no one person can know everything there is to know about the intricate regulations and procedures involved in taking out a federal student loan, team members sometimes specialize in various areas and share their knowledge as needed.

Outside of work, Bonnie is an avid supporter of her local chapter of the Humane Society. She is a foster parent for cats and dogs in the market for a home. She herself recently adopted a three-legged German Shepherd, Maggie. "Maggie hobbles around but she really goes fast in a sprint," said Bonnie.

For help
If you have any questions concerning guarantee issues, please contact TG's guarantee, support, and reporting team at (800) 446-5616, or send an e-mail message to lgo.helps@tgslc.org.