Higher Ed Watch continues its series that takes a closer look at individual federal student loan guaranty agencies. The introductory post can be found here. The first two posts looking at the guaranty agencies for Georgia, Washington, and Idaho can be found here and here. Today, the series continues with an examination of TG.
TG, or the Texas Guaranteed Student Loan Corporation, is the designated guaranty agency for the Lone Star State. A public, nonprofit company, TG was the third largest guaranty agency in 2008, providing insurance for a total of 1,468,078 loans worth a total of $7,277,747,627.
Unlike the first two agencies we looked at, TG does not have any explicit connections to any particular lenders. Instead, TG has two aspects that are particularly worth discussing: the way it balances its roles within the state and nationally, and its past attempts to change the way it is compensated and structured.
State Ties
So far in our series we have looked at one guaranty agency that is part of the state government and one that has absolutely no ties to the governments in the states in which it operates. TG falls somewhere in between these extremes: An agency that has ties to the state, but is also not constrained by them.