Back to current
Shoptalk Online Contents

TG Updates

Shoptalk Online 521, September 15, 2009

TG Updates

Save the date for TG's cohort default rate webinar

With the release of official FY 2007 cohort default rates (CDR) this week, TG understands that schools may have questions and concerns about the CDR-related changes in the Higher Education Opportunity Act of 2008 (HEOA). To assist schools in understanding the CDR process, TG will offer a "Managing Your Cohort Default Rate" webinar on October 5, 2009, from 2 p.m.-3 p.m. Central Time.

In this webinar, participants will learn how a school's CDR is calculated and how the HEOA has affected CDRs, including the shift from a two-year to a three-year calculation. The webinar will explore the benefits for schools with low default rates and the consequences of higher default rates. Participants will also learn about TG's Integrated Default Assistant™ (IDA™) and how it can help schools to manage their CDR.

Registration
Visit TG Online to register for the "Managing Your Cohort Default Rate" webinar. As with all TG training webinars, this event will be offered free of charge to the financial aid community.

Registration is open for the next in TG's series of live webinar training events that focus on various issues in the financial aid industry. The webinar, which provides information and discussion on cash management practices, will be offered on Thursday, September 17, from 2 p.m.-3 p.m. Central Time.

Cash management is one of the most highly regulated areas of federal student aid administration. This session will explore the cash management rules, including the timeframes for the disbursement and delivery of funds, the handling of credit balances, and the notices and authorizations a school must send to, and obtain from, students and borrowers.

To register
Register for this webinar online. You can access recordings of previous industry webinars on the TG Webinars page of TG Online. Just click "Archived Training Modules, Recordings, and Materials." If you have staff who need training on the basics of financial aid, consider TG's Financial Aid for Rookies (FAR) series. The FAR series provides free, on-demand training on the fundamentals of financial aid.

TG announces changes to the reporting and tracking tool of its Electronic Funds Transfer product

On September 21, 2009, TG will implement enhancements to its Electronic Funds Transfer (EFT) product. These modifications will make EFT's Funds Disbursement and Returns Reporting System a more effective tool for tracking and reporting data for loan programs administered by the Texas Higher Education Coordinating Board (THECB).

Report changes for THECB programs
Schools will now have the option to include summary totals for each THECB program on the following reports and files:

Payment Detail Report
Advance Debit Notification Report
Payment Detail File
Advance Debit Notification File

The search criteria on the Standard Reports screen of the Funds Disbursement and Returns Reporting System will be modified. Users will now be able to select a checkbox to "include totals for each Texas Higher Education Coordinating Board program."

The option to include totals for THECB will display to all schools. Note however that not all schools will have loans from the THECB. Here's how the checkbox works:

If the checkbox is un-checked, the reports and files will display as they do today (no changes).
If the checkbox is checked, the selected report or file will include summary total lines for each of the THECB programs.

Payment Detail and Advance Debit Notification report changes
If the "include" option is enabled when requesting a Payment Detail or Advance Debit Notification Report, the school will see these summary total fields:

TOTAL ALT BOT — for the Texas B-On-Time (BOT) Loan Program
TOTAL ALT CAL — for the Texas College Access (CAL) Loan Program
TOTAL ALT HLP — for the Texas Health Education (HLP) Loan Program

Here's how the totals will display to users for each file type.

Payment Detail File
If the new option is enabled when requesting a Payment Detail File, the school will see the summary totals in the trailer record of the file.

The new fields will appear in the trailer record in this layout:

Number of alternative BOT loans — position # 79-84 Total amount of alternative BOT loans — position # 85-94 Number of alternative CAL loans — position # 95-100 Total amount of alternative CAL loans — position # 101-110 Number of alternative HLP loans — position # 111-116 Total amount of alternative HLP loans — position # 117-126

Advance Debit Notification File
If the new option is enabled when requesting an Advance Debit Notification File, the school will see the summary totals in the trailer record of the file.

The new fields will appear in the trailer record in this layout:

Number of alternative BOT loans — position # 96-101 Total amount of alternative BOT loans — position # 102-111 Number of alternative CAL loans — position # 112-117 Total amount of alternative CAL loans — position # 118-127 Number of alternative HLP loans — position # 128-133 Total amount of alternative HLP loans — position # 134-143

Please note that the changes mentioned above do not apply to TG's AdvanTG Web™ product.

For help
Should you have any questions, please contact TG product support at (800) 332-1455, or send an e-mail message to product.support@tgslc.org.

Using TG's EFT process for return of funds

During the disbursement season, many schools process a return of funds using TG's electronic funds transfer (EFT) process. Whether returning a single disbursement, or canceling and returning an entire loan, TG's EFT process provides a flexible, convenient way to meet a school's scheduling needs. TG processes disbursements in two funding cycles: Next-Day Funding and Three-Day Funding. Below you'll find a review of both funding cycles.

Next Day Funding process
On any given business day, schools can submit change transactions to TG up until noon Central Time. The last batch process for change transactions runs at noon, prior to the mid-day (1 p.m. Central Time) funding cycle. Any change transaction for a return of funds that has been successfully received and processed will be included in the mid-day funding cycle.

Once the funding cycle is complete, the school will be able to access an Advance Debit Notification report, which provides a list of individual disbursements and loans that will be debited from the school's bank account the following business day. The lender will be able to view a Payment Detail Report, which provides an advance notice of what will be credited to the lender's account the following business day.

The following business day (Next Day), the school's bank account is debited, and the lender's bank account is credited.

Three Day Funding process
On any business day (day 1), schools can submit their change transactions to TG until 11 p.m. Central Time. At 11 p.m., the final night batch process for change transactions is run prior to the overnight funding cycle. Any change transaction for a return of funds through TG's EFT process which has been processed will be included in the overnight funding cycle.

On the following business day (day 2), the school will be able to access an Advance Debit Notification report, which provides a list of individual disbursements and loans that will be debited from the school's bank account the next business day (day 3). The lender will be able to view a Payment Detail Report, which provides an advance notice of what will be credited to the lender's account the next business day (day 3).

The following business day (day 3), the school's bank account is debited, and the lender's bank account is credited.

To learn more
If you would like more information about TG's EFT process and reports, please contact TG product support at (800) 332-1455, or send an e-mail message to product.support@tgslc.org.

Meet Margie Harvey, TG's financial literacy segment manager

If there's a silver lining to the recession, it may be that legislators and other officials are paying more attention to financial literacy among consumers, especially college students. Many students leave school with federal loans to repay, an average of $20,000 according to the latest ED statistics. Colleges along with guarantors and other organizations are working to help students manage such debt. Their support amounts to a community of sorts whose goal is to fortify the financial literacy skills of students so that they can make smart financial decisions.

Creating community was exactly the idea behind TG's Web site, the Positive+Balance Community℠. The Positive+Balance Community offers financial literacy information and resources free to educators and financial aid professionals. It also harnesses the power of social media by providing a forum for participants to share information and even blog about their work in financial literacy. A force behind the development of the Positive+Balance Community was Margie Harvey, TG's financial literacy segment manager.

Education the great equalizer
Harvey has dedicated her career to higher education. From experience, she's well acquainted with the obstacles some students face in going to school. She also understands the need for a sound grasp of the principles of money management.

Harvey grew up in a single-parent household in an area of Indiana where unemployment averaged in the double digits. Early in life, she came to understand the value of a degree, having lived in an economically disadvantaged area.

"I enrolled at Purdue University, earning a bachelor's in mathematics and then a master's in higher education administration," said Harvey. "At the end of my sophomore year, I took a work-study position in Purdue's financial aid office, processing aid applications and counseling students and parents. I loved the work."

The complexity of the award process and attendant regulations intrigued Harvey, as did the prospect of helping students realize their educational dreams.

"Viewing higher education as the great equalizer in our society, I had intended to be a guidance counselor," said Harvey. "After working as a peer counselor on campus, I began to realize that despite the efforts of many dedicated individuals, there are still people who think they can't attend college, don't know how to get started, and most certainly aren't prepared. I wanted to help these students, because I understood the difference an education made in my life."

Providing a model for helping students
Harvey assumed other roles in the Purdue financial aid office, eventually becoming financial aid administrator for student loans and employment. She came to TG in 1997, working first as an advisor on TG's policy team and then helping to spearhead TG's efforts to serve national schools and lenders. All of Harvey's varied skills and experiences have come in handy in her newest position as a lead for TG's financial literacy program.

"Our team focuses on providing information, tools, and services to help students and their families make wise financial decisions," said Harvey.

TG's financial literacy tools are designed to meet the needs of borrowers and schools. The Positive+Balance Community offers a collaborative venue for professionals seeking advice and information on creating a financial literacy program. TG's Positive+Balance™ financial literacy training program is designed to educate both students and administrators alike on the importance of effective money management. Topics include how to pay for college, guard against identity theft, and maintain financial fitness. And TG's Adventures In Education Web site features a full menu of interactive resources to help families and students understand credit, budgeting, and more.

Harvey plays a significant role in TG's ongoing Financial Literacy Symposiums. This summer, TG hosted two symposiums, one in Houston and one in Chicago, with more planned for the coming fiscal year. The symposiums bring together experts in the field of financial literacy education and financial aid professionals and educators for a roundtable discussion on how to design an effective campus financial literacy program.

"In addition to learning about their colleagues' financial literacy initiatives, attendees share ideas on how to teach students about personal finances," Harvey said.

Educating students about the fundamentals of money management couldn't be more important, according to Harvey. "Students cannot be successful if they aren't financially prepared," she said. "Certainly many families are facing worries about finances in today's economy. Using credit wisely and saving is vital given debt levels and changing markets."

TG's expanding suite of financial literacy services keeps Harvey busy at work. Outside TG, she stays focused on her family, helping her own children get the education that meant so much to her. "I have seven children and five grandchildren," said Harvey. "Two of my children are off to college this fall. My youngest child is starting high school on the same day the other two start college."

To learn more
To find out more about TG's financial literacy offerings, including Positive+Balance, contact your regional account executive at (800) 252-9743. You may also contact Rett Anderton or Joe Braxton, TG's default aversion consultants, directly. Rett Anderton may be reached at (800) 252-9743, ext. 4765, or by sending an e-mail message to rett.anderton@tgslc.org. Joe Braxton may be reached at (800) 252-9743, ext. 4696, or by sending an e-mail message to joe.braxton@tgslc.org.