Nonprofit reports data loss for 1.3 million borrowers

May 31, 2006

Austin Business Journal

Texas Guaranteed Student Loan Corp. says it lost a piece of equipment May 24 containing the names and Social Security numbers of about 1.3 million borrowers.

The loss occurred when a company TG contracted to prepare a document management system lost the piece of equipment. The company, Hummingbird Ltd. (NASDAQ: HUMC) notified TG of the loss May 26.

The amount of data lost represents about 10 percent of TG's borrowers.

"TG takes the protection of non-public personal information very seriously," says Sue McMillin, TG president and CEO. "Even though this information is not easily accessed and used, and even though the loss appears to be inadvertent, we are issuing this release out of an abundance of caution, because the piece of equipment has not been located. No personally identifiable information other than names and Social Security numbers were included on the piece of equipment."

TG is providing information on its Web site to help those potentially affected and is mailing letters to individuals who were directly affected with information about their records and recommendations on how to protect themselves from identity theft.

TG is a public, nonprofit corporation that administers the Federal Family Education Loan Program.

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