By Cynthia Mayberry, TG
It’s October and the busy time of the processing season is finally
coming to an end. To help you catch up on news from recent weeks, we
would like to provide you with updates on TG’s products, services,
and processes. Please share this information with your colleagues, and
contact us if you need any assistance.
TG offers solutions for automating alternative
By Neil Mac Quarrie, TG
When alternative loans first emerged on campuses, most financial aid
offices considered them a last resort. Higher interest rates, cosigner
requirements, and mandatory credit checks made them less attractive
to both borrowers and financial aid professionals than federally guaranteed
loan options. Today however, the realities of federal loan program loan
limits and tuition increases have made alternative loan funding not
only more attractive, but often a necessity for families and students
funding a higher education.
Automation – a hot topic
The automation of alternative loans has become a hot topic at industry
conferences and within institutional work groups. Although CommonLine
standards have accommodated alternative loan processing, from origination
through disbursement, some FFELP participants have been slow to upgrade
their systems to automate alternative loan processing. Often, the reasons
cited for this include limited resources and competing priorities.
One common challenge is that lender loan management systems are typically
programmed to produce CommonLine responses only for FFELP loans. In
addition, most school financial aid management systems (FAMS) are not
programmed to accept a CommonLine Unique ID initiated by another institution,
as is the case in the typical lender-initiated alternative loan flow.
In the lender-originated model, this becomes an issue since borrowers
often apply for alternative loans on lender Web sites, and lenders then
perform credit checks and submit a certification request to the school.
This process flow is efficient for some schools, because there is certainty
that the loan will be funded, and there are fewer adjustments and cancellations
than in the model where loans are originated by the school prior to
the credit check.
There are some options available to schools to resolve this issue.
Some of these options are:
- To modify the school FAMS to accept Unique IDs generated by the
- To find a workaround outside the FAMS' normal process flow. For
example, some FAMS will allow the Unique ID to be modified after the
certification has been exported.
- To request that lenders retain the school's CommonLine Unique IDs
by matching the school's certifications to the certification requests
sent to the school.
- To allow the school FAMS to generate the Unique ID and allow the
lender certification request to be deleted from AdvanTG Web™.
- If your FAMS system will accept a blank Unique ID then set your
AdvanTG Web profile to strip the CL Unique ID upon export of a certification
These workarounds for alternative loan processing can help to minimize
manual and cumbersome alternative loan processes.
TG can help
TG is available to help schools automate their alternative loan processes
via AdvanTG Web. As of July 2005, TG has helped 26 schools and eight
lenders using AdvanTG Web to automate their alternative loan processing.
We also have 41 lenders and 35 schools using TG's electronic funds transfer
(EFT) process for the funding of alternative loans which is reported
on the CommonLine disbursement roster along with FFELP disbursements.
AdvanTG Web's robust reporting features can help both schools and lenders
track and audit the alternative loan process.
If your institution would like to learn more about how to use these
alternative loan processing functions to simplify or streamline your
operations or why other TG business partners are participating in the
process, please contact your school consultant at firstname.lastname@example.org
or your lender consultant at email@example.com.
Our team is committed to delivering an effective solution to your alternative
loan processing needs.
TG announces upcoming Electronic Funds
Transfer (EFT) enhancements
By Renee Gilmer, TG
This fall, TG will introduce its Next Day Funding (NDF) EFT process,
which will compress our three-day funding into an overnight process.
In addition to faster funds delivery, TG's Change Transaction and Disbursement
Roster processing will be enhanced from the evening batch method to
TG EFT customers can expect to see these enhancements late November.
Next day funding will shorten TG's EFT process by moving the approval/roster
deadline to 1 p.m. (CST) each business day (Day 1). At 2 p.m. (CST),
TG will begin the funding process for disbursements and return transactions
that are to be credited or debited the next business day. EFT reports
and files will be available a short time later. EFT funds will be available
the morning of the next business day (Day 2).
- Change Transaction processing
- Nightly Change Transaction (CT) batch processing now will occur
hourly during the day.
- Responses generated in the change process will to be sent to TG's
business partners after the hourly runs.
- Money-moving CTs successfully processed prior to TG's 2 p.m. (CST)
EFT processing (see chart) will generate EFT reports and files available
that afternoon and funds will move the following business day.
- Changes that are processed after the 2 p.m. (CST) EFT processing
will generate reports and files the following business day and funds
will move on the third business day (TG's current EFT flow).
- CTs will continue to be processed hourly through 6 p.m. (CST).
- Disbursement Roster processing
- Disbursement Roster processing will be enhanced from once-a-night
to hourly, following the CT processing. This will give lenders the
opportunity to correct any error roster records and re-submit them
for the next hourly run.
- At the end of each processing hour an 'acknowledgement file' containing
only error records will be sent for every roster submitted. One consolidated
'acknowledgement file' of all successfully processed records will
be sent to each lender after the last hourly Disbursement Roster run
at 1 p.m. (CST).
Please note: The last roster processing hour results will be combined
with the consolidated 'acknowledgement file' and may contain both
successful and error records.
- Disbursement roster processing will continue hourly through 6 p.m.
(CST). Rosters and approvals that are received and processed after
2 p.m. (CST) will generate reports and files the following business
day and funds will be available on the third business day (TG's current
- Lender considerations
- To participate in TG's NDF process, Disbursement Rosters or online
approvals must be submitted and successfully processed prior to 2
- Lenders who submit rosters or approvals multiple times prior to
1 p.m. (CST) have the potential to receive multiple, error-only 'Acknowledgement
files' in addition to the consolidated 'Acknowledgement file' that
will be produced.
- Lenders who wish to receive only one 'Acknowledgement file' should
submit rosters or approvals between noon and 1 p.m. (CST).
- Funding in the NDF flow will occur on Day 2 of the process when
debits and credits settle to the lender and school EFT accounts.
- If an online approval or Disbursement Roster is received after
1 p.m. (CST), the approval or roster will be processed on Day 1, and
the funds will move in TG's current three-day process. Lenders will
receive the 'Acknowledgement file' on the next business morning (Day
2), and funds will move the following business day (Day 3).
Schools will receive EFT reports and files at a new time:
- EFT reports and files now will be available to all institutions
by 5 p.m. (CST).
- In the NDF flow, disbursements will be credited to the school's
EFT account the next business day.
- For CT processing, all changes received and successfully processed
by 1 p.m. (CST) will result in reports and files available the same
business day (Day 1). Funds will be debited and credited to and from
the lender's and school's EFT account the following business day (Day
Institutional work flows
To successfully take advantage of the enhanced funding timeline and
hourly processing, TG encourages all institutions to consider how the
proposed enhancements will affect the operational work flows within
their own offices and within their bursar, loan origination, and cash
To learn more
For more information about TG's Next Day Funding or the new Change Transaction
and Disbursement Roster processing cycles, contact TG product support
at (800) 332-1455, or send an e-mail message to Renee Gilmer at firstname.lastname@example.org.
Reminder: Where to mail TG claims documentation
Recently, TG has received several claims requests from lenders at our
physical address. To serve you more effectively, TG wants to remind
all of our customers that all claims submittals, including overnight
deliveries, must be sent directly to the TG distribution center at the
TG Claims Department
3500 Wadley Place, Bldg C, Ste 303
Austin, TX 78728-1244
This address should be used for all claim types, including default,
specialty (e.g., bankruptcy), and supplemental claims. Failure to route
claim submittals to the appropriate address may delay or otherwise jeopardize
If you have any questions regarding the submission of claims, please
contact Ron Stroud at (800) 252-9743, ext. 4779, or send an e-mail message
Cynthia Mayberry is TG’s assistant manager
for customer services. She can be reached at (800) 252-9743, ext. 4683,
or by e-mail at email@example.com.