la Frontera In the News

The Round Rock Leader

October 7, 2002

TG planning move into Round Rock

by Marcial Guajardo, Leader Staff

The nonprofit group administering most student loans in Texas will be moving its 550 employees into office space at La Frontera in Round Rock, group officials announced Friday.

Texas Guaranteed Student Loan Corp. (TG) has entered into an agreement with FKW La Frontera Limited to purchase property at 301 Sundance Parkway, an office facility located near Dell Computer Corp.

TG plans to consolidate its entire corporate staff into the 190,000 square-foot, state-of-the-art site. The site will accommodate its 550 employees, as well as its administrative and call center operations.

"The successful completion of this phase of our relocation process concludes nearly eight months of hard work by our relocation team," said Milt Wright, TG's president and CEO. "We are excited about the opportunities the La Frontera facility will provide to help address our future needs and to accommodate growth we're experiencing as one of the nation's largest student loan guarantors."

Presently, TG operates out of corporate offices on Highway 183, near RM 620, in Austin. TG has been there since 1994, when it shifted from another location in Austin.

Relocation is slated to be completed by early June 2003.

As part of the relocation process, TG officials looked for a new site that would be near to the residences of the majority of its employees. The study found that the La Frontera site was as close or closer to 80 percent of employee homes, said Senior Vice President James Patterson.

"This happened for a few reasons," said Patterson. "Round Rock happened to have the building that best fit our needs."

City of Round Rock officials hailed the move for its effect in diversifying its business base, which the city has been focusing its attentions on lately. TG promises a clean industry, stable employment and is a growing company, noted Mayor Nyle Maxwell.

"It's a good fit," said Maxwell. "We have a growth plan. We're not growing for the sake of growth. We like to attract industries and businesses that will enhance our quality of life here in Round Rock."

Created by the Texas Legislature in 1979, the Texas Guaranteed Student Loan Corp. is a public, nonprofit organization that administers the Federal Family Education Loan Program. According to company officials, it has helped create access to higher education for millions of families and students.

However, TG is not a state agency and instead of receiving state funds, much of its income comes from fees on guaranteed student loans and recovery fees on loans collected.

For the nine-month period ending June 30, TG listed $75 million in revenue under its operating fund.

TG is expected to close its transaction with FKW La Frontera by Dec. 12. Terms of the agreement were not released.