1. Concluding FFELP Originations – TG guarantee processing and products

2. Existing FFELP portfolio support TG has a $32 billion FFELP portfolio and will continue to provide the same high-quality services for its borrowers, schools, and lenders that customers have come to expect from TG. TG will continue to provide life-of-the-loan support for loans guaranteed by TG and first disbursed by June 30, 2010.

3. Provisions of the Health Care and Education Reconciliation Act of 2010 First disbursement occurring before July 1, 2010 –First disbursement and all subsequent disbursements may be made under FFELP First disbursement occurring on or after July 1, 2010 –Loan must be originated and fully disbursed under the FDLP

4. Concluding FFELP originations Guarantee and disbursement processing Continued FFELP loan processing Private loan processing Timeline for FFELP conclusion TG product participants Transition of originations Helpful reports, tips, and resources

5. Guarantee and disbursement processing

6. Guarantee Processing TG will be assisting customers by monitoring its guarantee processes: Beginning in mid-May, TG’s guarantee, support, and reporting (GSR) team will run reports to identify currently guaranteed loans with a scheduled disbursement date on or after July 1, 2010. –Schools and lenders will be contacted to : Verify disbursement dates Advise of loans being cancelled, if necessary –Schools and lenders can request a copy of report –Contact lgo.helps@tgslc.org if you have any loans that meet this criterionlgo.helps@tgslc.org Note: TG will not contact borrowers whose currently-guaranteed loans have been cancelled.

7. Guarantee Processing (cont.) As of May 7, 2010 – TG is rejecting new loan requests with a first disbursement date scheduled on or after July 1, 2010. GSR will contact schools to verify first disbursement date before terminating loan request. Letters will be sent to borrowers whose loan requests have been terminated. At close of business on June 25, 2010 – TG will suspend TG Loans by Web TM (LBW), including PLUS Credit Connection TM (PCC). Borrowers accessing LBW will receive an outage page referring them to their schools’ financial aid office.

8. Guarantee Processing (cont.) Consolidation loans GSR will not guarantee a Consolidation loan if the guarantee date is on or after July 1, 2010. –GSR will contact the lender to: ensure that the guarantee date is correct. terminate loans, as necessary. If GSR receives notice of the Consolidation loan via Common Account Maintenance (CAM) after the fact, the lender will be contacted, and the loan will be cancelled.

9. Guarantee Processing (cont.) Blanket guaranteed loans –GSR will not guarantee a loan submitted under a blanket guarantee if the Lender Approval Date (guarantee date) is on or after July 1, 2010. If the date is on or after July 1, 2010, GSR will contact the lender to: –to ensure that the date is correct. –advise that the loan will be terminated, if necessary Other guarantee processing for lenders –It may be possible for TG to work with a lender to guarantee loans not requested through LBW or not using TG’s Electronic Funds Transfer (EFT) service as late as June 30, 2010, if the first disbursement will occur by that date.

10. FFELP loan disbursement processing To assist lenders in managing the funding of second and subsequent loan disbursements and reissues for TG loans first disbursed before July 1, 2010: –New edit within the roster process available by end of June 2010 Will look for at least one of the loan’s disbursements to be in a PAID status with an Actual Disbursement Date before July 1, 2010. –If no such disbursement is confirmed, Roster transaction will be rejected »CommonLine error code 094 – the processor or service provider will contact the school or file recipient –GSR will proactively monitor Roster rejects and assist customers with quick resolution of rejects.

11. Continued FFELP loan processing

12. For disbursements which remain in a “PENDING” status as of July 1, 2010: –TG will not routinely cancel loans This will permit sufficient time for lender reporting (CAM/Lender Manifest) updates to be made For FFELP loans first disbursed by June 30, 2010, TG will continue to support AdvanTG Web TM (AW) for second and subsequent disbursements, and change requests at least through June 30, 2011.

13. Timeline for FFELP conclusion

14. At close of business, TG will suspend TG Loans by Web AdvanTG Web and EFT supported at least through this date for FFELP Edit put in place which rejects loan requests with first disbursement on or after 7/1/2010 Last day for a FFELP loan to have its first disbursement made Any federal student loan’s for which the first disbursement is made on or after this date must be originated and fully disbursed under the FDLP Timeline for concluding TG FFELP Originations May 7, 2010July 1, 2010 June 30, 2010 June 30, 2011 June 25, 2010 AdvanTG Web available for Private loan applications, change requests, and disbursement roster processing at least through this date

15. Private loan processing

16. AW will be available to process private loan applications, change requests, and disbursement rosters at least through June 30, 2011. TG is also committed to disburse private loans via its EFT service at least through June 30, 2011.

17. TG product participants

18. AW participants AW database considerations –User profile –Purge criteria –Reports available to assist with reconciliation Application status, change transaction, loan status –Records will continue to be ‘refreshed’

19. LBW participants Consideration for schools as FFELP originations conclude –To allow schools more control as new loans may be requested through close of business June 25: Schools that have “borrower-initiated’ flows, whether for Stafford, PLUS, or PCC, may choose to consider changing their profiles to “school-initiated” flows

20. EFT school participants Consideration for “customized” EFT schools –To allow for greater flexibility in receiving disbursements more frequently and successfully up until June 30, which falls on a Wednesday Schools that have “customized” disbursement profiles (customized to received disbursements by Day of the Week) may choose to consider changing their profiles, if their schools’ business/financial model will allow

21. Transition of originations

22. Transition to FDLP – for schools Upon notification to TG: –Guarantees will discontinue –For AW participants, access to data will continue –Records will continue to be refreshed Lender manifest TG changes –EFT accounts will remain active

23. For lenders ceasing originations Consideration as you notify TG: –Serial versus New Borrowers – How are they being handled TG is able to differentiate the lender’s profile

24. Helpful reports, tips, and resources

25. Helpful reports and tips TG is able to work with customers individually to create ad hoc reports for loans on TG’s system. –If you need additional information, send a request to product.support@tgslc.org or call 800-332-1455. product.support@tgslc.org “Tips” are being published to assist TG participants as they conclude FFELP originations via: –AW Message Board (for AW schools) –TG Message Central –TG’s Shoptalk Online

26. Additional resources TG Online - Federal Direct Loan Program resources page –Resources pertaining to conclusion of FFELP originations –Federal Direct Loan Program resources –Questions and answers (Q&As) –Checklist for schools preparing for FDLP participation For assistance in your efforts to convert to FDLP, contact: –Your TG account executive at 800-252-9743 –The Common Origination and Disbursement (COD) School Relations Center at 800-848-0978 or CODSupport@acs-inc.com for the FSA Onboarding Team to request transition supportCODSupport@acs-inc.com

27. TG’s commitment to our customers TG will continue to provide life-of-the-loan support for loans guaranteed by TG and first disbursed by June 30, 2010. TG continues to expand our services in key areas of need in higher education that include: –College access and success –Financial Literacy –Default Aversion –Industry Training

28. © 2008 Texas Guaranteed Student Loan Corporation To order additional copies, or to request permission to reproduce any of the information provided, please call TG Communications at (800) 252-9743. 0710-35017 © 2009 Texas Guaranteed Student Loan Corporation To order additional copies, or to request permission to reproduce any of the information provided, please call TG Communications at (800) 252-9743.