TG Default Info

[Andain]

I have recently gone through the default loan process with Texas Guaranteed. I wanted to share my experiences and advice with others. I have purposely left out financial info. Every person's situation is different.

 

Background info: My original Stafford Loans were with Panhandle Plains in Texas. Fabulous company by the way. After some time, it was kicked out to ACS as the loan servicer. About this time, I had involuntarily lost my job and was placed on unemployment. Throughout this ordeal, I sent in 3 forbearance forms, none of which were received/acknowledged. In other words, they "had no record." I received a notice before before my loan was referred to TG, so I called PP. The CS rep referred me to another person with whom I shared my story. She did all she could and tried to hold ACS up, but time expired. Since I could not make my payments, the loan was eventually referred to TG as the collection agency/guarantor. At this time, I'm working again, but making far less and having far more bills.

 

Early TG Collections: TG starts calling. Sometimes robocalls, sometimes a real person. Same person every time. I ignored them for a while and they sent Loan Rehabilitation letters (LR). After reading up on SL's in default, I finally decided to call and take care of this mess once and for all, confident I could take advantage of LR. Wrong. The CS rep was fairly nice, but was very set in how the account could be resolved. They either wanted an ungodly amount of money to become current, or payments I could come nowhere close to affording to enroll in the LR program. I hammered away and called many times trying to get the them to budge on the LR program--they sent me the damn letters after all! It didn't happen. The rep pressed the Direct Loan route...I was tempted. Boy was I tempted.

 

Research: I strengthened my resolve, knowing someone was giving me the runaround, and spent an entire day on the phone. First stop, US Department of Education. The kid on the phone tried his best to help me. I told him TG was denying me the opportunity for LR. He said that they couldn't do that. It's on now! I did more online research and called back. Another rep referred me to the TG Ombudsman, Luanne Dodge. I called her and spent an afternoon with her. She was quite helpful over the course of several phone calls. She explained that the financing companies needed people who could pay a decent amount on a loan in order for TG to offload them. She also mentioned that the finance companies were just beginning to pick up more high risk loans, and that TG was working on an alternative in order to set these people up for LR. Here's what really got my attention: My particular loans are locked in a a very low rate--If I were to go to Direct Loans, my interest rate would more than double while adding another $6,000 in collection costs. Ouch!

 

By now, I've received a notice for AWG. In my situation, that would destroy me financially and I'd be living out of my car...seriously. I really started researching how to live out of my car. Luanne Dodge to the rescue. She told me to absolutely NO MATTER WHAT fill out the paperwork that comes with the notice because it is, in fact, the paper work for alternative payment plans. With fingers crossed and a silent prayer, I dropped it in the mail--certified. Why so worried? I make a decent amount, but my bills are high (high cost of living). They somehow lost some paperwork; they called me about it and I faxed it in. The result? AWG denied. God answered my prayers.

 

Aftermath: Shortly thereafter, I received a call from TG's special collections department, a relatively new department for TG. They are there to set you up for LR. Currently, I think there's only 2 people that work there. They listened to my concerns and offered me some options. They actually worked with me. We set up a payment that was affordable. I may only be paying interest only, but hell, at least I can deduct that from my taxes. I've called them many times and they are super nice and work with you, so well in fact I actually don't hesitate to call if I have a question. I have the number in my phone. Unfortunately, you have to go through the rest of the BS to get there. There is light at the end of the tunnel.

 

Summary:

 

• Panhandle Plains is awesome. No paperwork, just one phonecall.
  
• ACS is comprised of complete salamanders.
  
• Initially, TG will make you hate your life.
  
• Do NOT shy away from AWG, do NOT accept Direct Loans. It's the easy way out that will cost you in the end.
  
• Utilize all possile resources and learn a companies system. Call a million times if you have to. Beat that dead horse until you get what you want. Turn the tables and annoy them. It was awesome when I heard that same CS rep get annoyed when I called and pressed over and over again.
  
• Do NOT ignore AWG warnings! Take a chance. Plead your case!
  
• Even if AWG is imminent, do NOT accept it. Get on that phone! It's not over until they begin collecting.
  

 

Feel free to ask questions and I will update this. I'm a bit pressed for time atm. Hope this helps someone!