TG

The Guarantor of Choice SM

Corporate Overview


Vision
Our vision is to be the premier source of information, financing, and assistance to help all families and students realize their educational and career dreams.

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Mission
We will form direct relationships with families and students in collaboration with our business associates to make the educational experience simpler, more productive, and less threatening.

We will provide customized, innovative solutions and tools for our diverse populations utilizing:

  • Alliances and relationships
  • Technology aggressively
  • The united effort of all of our team members.

All our relations will be a win for each participant.

We will create a strong financial base leveraging public and private involvement.

Personal, career, and monetary growth for our most important asset — our team members — will result as we achieve our vision.

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Slogan
Make a difference for students — Create our future together.

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Diversity Statement
TG values a diverse workforce, reflective of the students and families we serve. We recognize and celebrate individual differences, backgrounds and experiences as key elements to better serve our customers, provide our employees the opportunity to realize their full potential, and to fully achieve the Corporation’s vision and mission.

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What is TG?
Created by the Texas Legislature in 1979, TG is a public, nonprofit Corporation that administers the Federal Family Education Loan Program (FFELP). (The FFELP was formerly known as the Guaranteed Student Loan Program.)

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What is the FFELP?
The FFELP is a government-sponsored program that provides low interest loans to help students and their parents pay for education beyond high school. The program includes Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, and Federal PLUS Loans. The FFELP is the largest student financial aid program in the nation.

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How does the FFELP work?
FFELP loans are made through a public/private relationship involving borrowers, schools, lenders, TG, and the federal government. Under the program, schools determine students' and parents' eligibility for loans. Private lenders (such as local banks or credit unions) provide the money for the loans, TG reviews loan applications and guarantees the loans (see below), the federal government subsidizes and reinsures the loans, and the borrower repays the loans.

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What is TG's role?
TG administers the FFELP loan program. As program administrator, TG guarantees repayment of student loans to private lenders in the event a borrower dies, becomes permanently and totally disabled, has a loan discharged in bankruptcy, or defaults. TG also reviews student loan applications for eligibility, monitors loan status, pays claims to lenders if necessary, and conducts compliance reviews of schools participating in the program. In addition, the Corporation shares information about the program with students and schools to help make financial access to postsecondary education available to all qualified individuals.

Since its creation, TG has guaranteed approximately $49 billion in loans to more than 3 million student borrowers and their parents.

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How is TG governed?
The Corporation is governed by an 11-member Board of Directors. The Governor of Texas appoints 10 of the members (four representatives from the education community, five from the financial community, and one student). The Texas Comptroller of Public Accounts is designated by law as the 11th member.

The Board's role is to:

  1. Appoint TG's president and prescribe his or her duties,
  2. Delegate powers to the president,
  3. Provide long-range direction for the Corporation,
  4. Set policies, and
  5. Approve the budget.

TG's president and staff oversee the Corporation's daily operations.

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How is TG funded?
Although created by the Texas Legislature and subject to legislative oversight, TG is not a state agency and receives no state funds. Most of TG's income is derived from fees on the student loans the Corporation guarantees and recovery fees on loans collected.

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© 2008 Texas Guaranteed Student Loan Corporation