ROUND ROCK, Texas — 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).
Editor's note: See the following insideARM coverage of this matter. Great Lakes Higher Education Corp., parent of United Student Aid Funds has also said it would not charge fees to borrowers who agree to repayment arrangements within 60 days.
March 22, 2017: More Twists in ED's 'Dear Colleague' Collection Fee Matter