TEXAS GUARANTEED STUDENT LOAN CORPORATION

TRELLIS' GUARANTOR OPERATION ENCOMPASSES THE ADMINISTRATION OF THE FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP) ON BEHALF OF THE U.S. DEPARTMENT OF EDUCATION (ED). AS OF FISCAL YEAR END, TRELLIS' OUTSTANDING LOAN PORTFOLIO BALANCE TOTALED $4.2 BILLION AND DEFAULTED LOANS COLLECTION PORTFOLIO OF $1.2 BILLION. PROGRAM SERVICE ACCOMPLISHMENTS: PROMOTING STUDENT BORROWER SUCCESS IS A LONG-TERM ENDEAVOR, STARTING BEFORE A STUDENT BORROWER ENROLLS IN COLLEGE AND LASTING THROUGH REPAYMENT. TRELLIS HAS A SET OF SPECIALIZED TEAMS - CUSTOMER ASSISTANCE, DEFAULT PREVENTION, CLAIMS AND DEFAULT RECOVERY - THAT SERVE BORROWERS THROUGHOUT THE STUDENT LOAN LIFECYCLE. THESE TEAMS EDUCATE STUDENT BORROWERS ABOUT LOANS AND THEIR REPAYMENT OPTIONS AND HELP THEM RETURN TO REPAYMENT IN THE EVENT OF DELINQUENCY OR DEFAULT. DEFAULT PREVENTION - TRELLIS WORKS WITH STUDENT LOAN BORROWERS, LENDERS, SERVICERS, AND THE DEPARTMENT OF EDUCATION (ED) TO HELP PREVENT DEFAULT ON STUDENT LOANS. LOAN COUNSELORS WORK WITH BORROWERS WHO HAVE ENTERED DELINQUENCY, EDUCATING THEM ON STUDENT LOAN REPAYMENT OPTIONS, INCLUDING DEFERMENTS, FORBEARANCES, AND INCOME-BASED REPAYMENT PLANS IN ORDER FOR BORROWERS TO SUCCESSFULLY REPAY THEIR FEDERAL STUDENT LOANS AND AVOID DEFAULT. IN FY22, THE TEAM RECEIVED 69,839 DEFAULT AVERSION ASSISTANCE REQUESTS FROM LENDERS AND SUCCESSFULLY AVERTED APPROXIMATELY $1.2 BILLION FROM DEFAULT. AS A RESULT, MORE BORROWERS RETURN TO AND MAKE PROGRESS IN REPAYMENT, WHICH ALLOWS THE BORROWERS TO AVOID THE NEGATIVE CONSEQUENCES OF DEFAULT, INCLUDING DAMAGED CREDIT AND THE LOSS OF ELIGIBILITY FOR FEDERAL STUDENT AID. CLAIMS - TRELLIS PROCESSES DEFAULT CLAIMS SUBMITTED BY LENDERS THAT HAVE BEEN UNSUCCESSFUL IN TRANSITIONING BORROWERS WITH DELINQUENT LOANS BACK INTO REPAYMENT. WHEN LENDERS SUBMIT CLAIMS ON TRELLIS GUARANTEED LOANS, TRELLIS VERIFIES THE LENDER'S COMPLIANCE WITH FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP) REQUIREMENTS, AND, IF VALID, PURCHASES THE LOAN FROM THE LENDER AND BEGINS THE COLLECTION COUNSELING PROCESS. COLLECTIONS - UPON DEFAULT CLAIM PAYMENT, TRELLIS IS STATUTORILY REQUIRED TO PURSUE COLLECTION EFFORTS ON BEHALF OF THE FEDERAL GOVERNMENT ON ALL TRELLIS GUARANTEED STUDENT LOANS. WHILE THE COLLECTION TEAM'S CORE RESPONSIBILITY IS TO RECOVER TAXPAYER ASSETS, TRELLIS WORKS WITH BORROWERS TO OBTAIN THE BEST OPTION FOR THEM TO RESOLVE THEIR DEFAULT. THE GOAL IS TO HELP THE BORROWER RETURN TO REPAYMENT AND SUCCESSFULLY MANAGE THEIR LOAN. IN MARCH 2021, IN RESPONSE TO THE PANDEMIC, GUARANTORS LIKE TRELLIS WERE ASKED TO PLACE COLLECTIONS FOR STUDENT LOAN BORROWERS ON HOLD AND RETURN PAYMENTS TO BORROWERS RECEIVED SINCE MARCH 20, 2020. THE PANDEMIC PAYMENT PAUSE FOR BORROWERS ENDED AUGUST 28, 2023. ED REIMBURSED TRELLIS FOR THOSE REFUNDS FROM THE FEDERAL FUND AND PROVIDED A LOST REVENUE PAYMENT TO GUARANTORS FOR FORGONE COLLECTIONS DURING THE PANDEMIC WHICH WAS ALSO PAID FROM THE FEDERAL FUND UNTIL SEPTEMBER 30, 2024. THE LOST REVENUE PAYMENTS WERE REPLACED WITH A SPECIAL ACCOUNT MAINTENACE FEE PURSUANT TO A VOLUNTARY FLEXIBLE AGREEMENT ENTERED IN WITH ED ON OCTOBER 1, 2024.