Company’s decades-old policy to remain in place regardless of recent ‘Dear Colleague’ letter from U.S. Department of Education
Round Rock, TX — In a recent ‘Dear Colleague’ letter (released on March 16, 2017), the U.S. Department of Education reversed its position on student loan collection fees related to past-due loans. Previously, the Department of Education had prohibited guaranty agencies from assessing collection costs to a defaulted borrower who enters into a repayment agreement within 60 days of receiving the initial notice of default.
This change of position by the Department of Education will not impact student loan borrowers working with TG. Under TG’s long-standing company policy, collection fees are not assessed to borrowers who agree to repayment, including rehabilitation of their loan, within 60 days of default.
“For more than 30 years, TG has not assessed collection fees when a student enters repayment or rehabilitates their student loan within the requisite period of time, and we have no plans to modify this policy,” said James Patterson, President and CEO. “Many student loan borrowers already have a difficult time managing their loan obligations. At TG, we want to help them successfully repay their student loans. Adding more fees does not help their situation.”
If any of TG’s borrowers have questions about their student loan, they are encouraged to contact TG at (800) 222-6297. TG’s call center is available Monday through Thursday (8 a.m. to 9 p.m. CT) and Friday (8 a.m. to 5 p.m. CT).
-30-
TG is a nonprofit 501(c)(3) corporation with the dual mission of helping student borrowers successfully repay their education loans and promoting access and success in higher education. In addition to providing critical support to schools, students, and borrowers at each stage of the federal student aid process, TG has a strong philanthropic heritage of giving through grants to colleges, universities, and research groups focused on improving student outcomes, especially to underserved students, families, and institutions. Our vision is that people receive trusted guidance to make informed decisions and improve their lives.