1. AdvanTG Web™ and Alternative Loans Input Paul Lewis, Jr. Director, Product Management TG

2. Agenda Future of AdvanTG Web ™ CommonLine layout changes Private loan market FDLP readiness survey Open discussion

3. Future of AdvanTG Web

4. Post-FFELP continued support –Loan changes –Disbursements –Lender reporting Alternative loan processing only –Costs –Disbursement processing –Legislative requirement for THECB to use TG EFT

5. CommonLine Layout Changes

6. CommonLine layout changes for private loans Self-certification form Application termination reason Co-signers for references

7. Private Loan Market

8. Trend of private loan volume Source: College Board: Trends in Student Aid

9. 2009-10 market share projections Source: SLA analysis

10. Reasons for decline in private student loan market Reasons for market decline include, but are not limited to: –Increased awareness of availability of federal loans –Increased number of students eligible for Pell grants –Weak secondary markets –Increased underwriting standards by lenders to mitigate defaults –Rising defaults that limit banks’ appetites for the asset class

11. FDLP Readiness Survey

12. FDLP readiness survey findings — Community colleges Nearly all (22/25) community colleges surveyed indicated a need for support services in a FDLP environment. Additional support services suggested: –“Ability to get quick responses regarding a loan; disbursement issues; grad dates changes; level or loan increases, etc.” –“Assistance in follow up with delinquent borrowers and other default prevention and management services.” Continued support materials Q7. TG and other FFELP guarantors currently provide support services for institutions (which may include delinquency and default aversion counseling, financial literacy, alternative loan processing, outreach and awareness, and training). Do you anticipate a need for these support services under the FDLP? Q8. services do you anticipate that your institution will still need under the FDLP? (select all that apply) Source: TG FDLP readiness survey (January 2010)

13. FDLP readiness survey findings — Four-year private schools Nearly all four-year (34/38) private institutions surveyed indicated a need for support services in a FDLP environment. Continued support materials Q7. TG and other FFELP guarantors currently provide support services for institutions (which may include delinquency and default aversion counseling, financial literacy, alternative loan processing, outreach and awareness, and training). Do you anticipate a need for these support services under the FDLP? Q8. services do you anticipate that your institution will still need under the FDLP? (select all that apply) Source: TG FDLP readiness survey (January 2010)

14. FDLP readiness survey findings — Four-year public schools Nearly all (39/44) four-year public institutions indicated a need for support services in a FDLP environment. Q7. TG and other FFELP guarantors currently provide support services for institutions (which may include delinquency and default aversion counseling, financial literacy, alternative loan processing, outreach and awareness, and training). Do you anticipate a need for these support services under the FDLP? Q8. services do you anticipate that your institution will still need under the FDLP? (select all that apply) Continued support materials Source: TG FDLP readiness survey (January 2010)

15. Open Discussion

16. Questions? This presentation is available for download at www.tgslc.org/tgconference.