[Oasfaa] TG's clarification of guarantor question

[Communications_listservs]

[Posted on behalf of margery.harvey at tgslc.org, TG's AVP for relationship
management and consultant]

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To OASFAA members:

 

I wanted to clarify the information about TG's decision regarding
guarantee-fee charges. I'm aware that Bill McFarland provided some
information to OASFAA members earlier today, but he is currently making
a presentation and is unable to offer the clarifications that accurately
reflect TG's present position.

 

Since 1999, TG has waived the 1 percent guarantee fee for borrowers on
all loans it guarantees.  The Deficit Reduction Act recently signed into
law by President Bush, requires that all guarantors deposit into their
Federal Fund, a Default Fee (currently known as the guarantee fee) of 1
percent of loan disbursements guaranteed on or after July 1, 2006.  TG's
policy regarding the source of the 1 percent Default Fee is on the
agenda for TG's Board meeting scheduled for April 8, 2006. 

 

Our CEO has NOT contacted board members individually, nor has TG
management made any recommendations to the board. We will await the
outcome of their discussion in early April and will communicate with all
of our business partners once a decision has been made. TG will fully
take into consideration the long-term implications for the higher
education and lending communities.

 

I would welcome any additional comments or questions you may have about
this issue, and I apologize for any confusion that the previous postings
may have caused.

 

Sincerely,

 

Margie Harvey

Assistant Vice President, Relationship Management and Consulting TG

(800) 252-9743, ext. 4859

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