<html>
<head>
<meta http-equiv=Content-Type content="text/html; charset=us-ascii">
<meta name=Generator content="Microsoft Word 10 (filtered)">
<style>
<!--
/* Font Definitions */
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman";}
a:link, span.MsoHyperlink
{color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{color:purple;
text-decoration:underline;}
span.emailstyle17
{font-family:Arial;
color:windowtext;}
span.emailstyle18
{font-family:Arial;
color:navy;}
span.EmailStyle19
{font-family:Arial;
color:navy;}
span.EmailStyle20
{font-family:Arial;
color:navy;}
span.EmailStyle21
{color:black;}
@page Section1
{size:8.5in 11.0in;
margin:1.0in 1.25in 1.0in 1.25in;}
div.Section1
{page:Section1;}
-->
</style>
</head>
<body lang=EN-US link=blue vlink=purple>
<div class=Section1>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>I think Larry has done a good job
outlining the lender and guarantor sides of the issue, yet I do not agree with
the statement:</span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'> “</span></font><font size=2
color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'>On the other hand, if you live in a state where the guarantor does
not reimburse the student, then your students are out of luck.”</span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Instead, that is the very place where aid administrators can
exercise their judgment about what is best for their students and their school.</span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'> </span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'> </span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'> </span></font></p>
<div>
<p class=MsoNormal><font size=3 color=red face=Arial><span style='font-size:
12.0pt;font-family:Arial;color:red'>Bill McFarland - TG</span></font></p>
<p class=MsoNormal><font size=2 color=blue face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:blue'>Senior Regional Account Executive</span></font></p>
<p class=MsoNormal><font size=2 color=blue face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:blue'>RMC - Relationship Management and
Consulting</span></font></p>
<p class=MsoNormal><font size=2 color=blue face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:blue'>P.O. Box 83100</span></font></p>
<p class=MsoNormal><font size=2 color=blue face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:blue'>Round Rock, Texas 78683-3100 </span></font></p>
<p class=MsoNormal><font size=2 color=red face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:red'>(800) 252-9743, ext 2505</span></font></p>
<p class=MsoNormal><font size=2 color=red face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:red'>(512) 751-7170 mobile</span></font></p>
<p class=MsoNormal><font size=2 color=red face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:red'>(918) 294-0910 fax</span></font></p>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'><a
href="mailto:william.mcfarland@tgslc.org">william.mcfarland@tgslc.org</a></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:black'><a href="http://www.tgslc.org">www.tgslc.org</a></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'> </span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'> </span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'> </span></font></p>
</div>
<p class=MsoNormal style='margin-left:.5in'><font size=2 face=Tahoma><span
style='font-size:10.0pt;font-family:Tahoma'>-----Original Message-----<br>
<b><span style='font-weight:bold'>From:</span></b>
oasfaa-bounces@lists.onenet.net [mailto:oasfaa-bounces@lists.onenet.net] <b><span
style='font-weight:bold'>On Behalf Of </span></b></span></font><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'>Hollingsworth,
Larry</span></font><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma'><br>
<b><span style='font-weight:bold'>Sent:</span></b> Thursday, March 02, 2006
9:27 AM<br>
<b><span style='font-weight:bold'>To:</span></b> oasfaa@onenet.net<br>
<b><span style='font-weight:bold'>Subject:</span></b> RE: [Oasfaa] Guarantor
Question</span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> </span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>Just a point of
clarification so that we don’t mix apples and oranges here. One issue is
what the lenders are doing about the origination fee, while the other issue is
what the guarantors are doing about the guarantee fee. </span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'> </span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>Many if not most lenders
have indicated their decision to “pay the 3% origination fee for the
student” as one press release said. Obviously, this allows the student to
receive more of their loan proceeds. Lenders have decided to do so at no small
cost to them in order to stay competitive with other lenders. It’s not
their favorite course of action, but should they not do so, they risk loosing
business to competitors. And that is a risk they do not want to take. How long they
can and/or will continue this action is yet to be seen. But the fact is for
2006-07, the student’s choice of a lender can make a difference in how
much their loan check will be.</span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'> </span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>At the same time, it
appears that the schools choice of a guarantor can make a difference in how
much a student’s loan check will be. Mary has correctly pointed out that
guarantors are required by law to collect the 1% guarantee fees. That point is
not in question. The original question was asking for discussion about what schools
will do if some guarantors opt to reimburse the student for the 1% guarantee
fee while other guarantors choose not to so. Maybe the school’s decision
is on this issue is simply a matter of location. By that I mean if you live in
a state where the guarantor reimburses the student the 1% fee then your
students fortunately get that benefit. On the other hand, if you live in a
state where the guarantor does not reimburse the student, then your students
are out of luck. </span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'> </span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>We all want to do what
will be in the best interest of our students. Certainly money issues and
service issues are both part of the mix as we think through our options. Thanks
to all for any comments regarding the options (if more than one option exits)
which are being considered by different schools.</span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'> </span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>Larry</span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'> </span></font></p>
<div>
<div class=MsoNormal align=center style='margin-left:.5in;text-align:center'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>
<hr size=2 width="100%" align=center>
</span></font></div>
<p class=MsoNormal style='margin-left:.5in'><b><font size=2 face=Tahoma><span
style='font-size:10.0pt;font-family:Tahoma;font-weight:bold'>From:</span></font></b><font
size=2 face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'>
oasfaa-bounces@lists.onenet.net [mailto:oasfaa-bounces@lists.onenet.net] <b><span
style='font-weight:bold'>On Behalf Of </span></b>Sherry Foster<br>
<b><span style='font-weight:bold'>Sent:</span></b> Wednesday, March 01, 2006
2:55 PM<br>
<b><span style='font-weight:bold'>To:</span></b> Nancy Moats; oasfaa@onenet.net<br>
<b><span style='font-weight:bold'>Subject:</span></b> RE: [Oasfaa] Guarantor
Question</span></font></p>
</div>
<p class=MsoNormal style='margin-left:.5in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> </span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>I just visited with
Kimberly today from BOK and she says that they are picking up the Guarantee
fee. She just smiled when I mentioned future years. I don’t
think anyone knows for sure.</span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'> </span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>Sherry Foster</span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'> </span></font></p>
<div>
<div class=MsoNormal align=center style='margin-left:.5in;text-align:center'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>
<hr size=2 width="100%" align=center>
</span></font></div>
<p class=MsoNormal style='margin-left:.5in'><b><font size=2 face=Tahoma><span
style='font-size:10.0pt;font-family:Tahoma;font-weight:bold'>From:</span></font></b><font
size=2 face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'>
oasfaa-bounces@lists.onenet.net [mailto:oasfaa-bounces@lists.onenet.net] <b><span
style='font-weight:bold'>On Behalf Of </span></b>Nancy Moats<br>
<b><span style='font-weight:bold'>Sent:</span></b> Wednesday, March 01, 2006
2:48 PM<br>
<b><span style='font-weight:bold'>To:</span></b> oasfaa@onenet.net<br>
<b><span style='font-weight:bold'>Subject:</span></b> RE: [Oasfaa] Guarantor
Question</span></font></p>
</div>
<p class=MsoNormal style='margin-left:.5in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> </span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>To add to both of your
comments, has anyone seen anything in writing from a guarantor who is willing
to subsidize the 1% fee, and if so, is there any commitment to subsidize it
beyond this first year?</span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'> </span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>Nancy Moats</span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'> </span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'> </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 face=Tahoma><span
style='font-size:10.0pt;font-family:Tahoma'>-----Original Message-----<br>
<b><span style='font-weight:bold'>From:</span></b>
oasfaa-bounces@lists.onenet.net [mailto:oasfaa-bounces@lists.onenet.net] <b><span
style='font-weight:bold'>On Behalf Of </span></b>Hollingsworth, Larry<br>
<b><span style='font-weight:bold'>Sent:</span></b> Wednesday, March 01, 2006
2:03 PM<br>
<b><span style='font-weight:bold'>To:</span></b> oasfaa@onenet.net<br>
<b><span style='font-weight:bold'>Subject:</span></b> RE: [Oasfaa] Guarantor
Question</span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 color=blue
face=Arial><span style='font-size:10.0pt;font-family:Arial;color:blue'>Great
question Jonna. I'll be the first to jump in. Hopefully, others will join us.
You're not alone struggling with this delimma. Many of us are "in a
pickle" on this one though. </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 color=blue
face=Arial><span style='font-size:10.0pt;font-family:Arial;color:blue'>Who
among our students, if given the opportunity to pay zero fees or pay a 1% fee
would opt for the 1%? Not many I'd bet. At the same time who among our
financial aid offices wants to sit down with a student/parent and defend
processing a loan with 1% fees when it could have been processed with no fees?
I don't look forward to that type of a conversation. Therefore, I'm trying
to figure our a simple way of communicating the choices to our students and let
them make the decision for themselves.</span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 color=blue
face=Arial><span style='font-size:10.0pt;font-family:Arial;color:blue'>When
lenders are biting the bullet and waiving fees in order to be competitive, I'd
like to see OGSLP do the same thing. Unfortunately, I don't believe state
schools have to same flexibility that privates do in pursuing a better
alternative for their students. Let's face it, polictics are part of the
environment in which we live. So if anyone has any creative solutions in
mind, please share them with the rest of us. </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 color=blue
face=Arial><span style='font-size:10.0pt;font-family:Arial;color:blue'>These observations
are not intended to represent anyone but me. </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 color=blue
face=Arial><span style='font-size:10.0pt;font-family:Arial;color:blue'>Larry</span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> </span></font></p>
<div style='margin-left:.5in'>
<div class=MsoNormal align=center style='margin-left:.5in;text-align:center'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>
<hr size=2 width="100%" align=center>
</span></font></div>
</div>
<p class=MsoNormal style='margin-right:0in;margin-bottom:12.0pt;margin-left:
5.5in'><b><font size=2 face=Tahoma><span style='font-size:10.0pt;font-family:
Tahoma;font-weight:bold'>From:</span></font></b><font size=2 face=Tahoma><span
style='font-size:10.0pt;font-family:Tahoma'> oasfaa-bounces@lists.onenet.net
[mailto:oasfaa-bounces@lists.onenet.net] <b><span style='font-weight:bold'>On
Behalf Of </span></b>Jonna L. Raney<br>
<b><span style='font-weight:bold'>Sent:</span></b> Wednesday, March 01, 2006
12:45 PM<br>
<b><span style='font-weight:bold'>To:</span></b> oasfaa@onenet.net<br>
<b><span style='font-weight:bold'>Subject:</span></b> [Oasfaa] Guarantor
Question</span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>I’m interested to know what
schools are doing for 06/07 about the guarantor for their loans. I’m torn
because I want to do business in OK, but if other guarantors are paying the 1%
guarantee fee, I have to also keep in mind what is best for our students. I feel
like the service from the 1% guarantor and the no fee guarantor are both very
good, so that’s not a big factor in the decision for me. </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>I don’t want to step on any
toes, but I need to make a decision about this topic fairly soon.
I’d like to hear from both State and Private schools if possible.</span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>Thanks for any feedback. </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> </span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>Jonna Raney</span></font></p>
<p class=MsoNormal style='margin-left:1.0in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>St. Gregory’s University</span></font></p>
</div>
</body>
</html>