Consumer complaint received 2017-02-08
Company: Texas Guaranteed
State: CO
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with my lender or servicer
Sub-issue: Trouble with how payments are handled

Complaint:
My fiancee and I live in the XXXX, CO XXXX area. We have struggled to work through several layoffs and I have supported us both for the last 7 years combined. On top of this, the housing market here has exploded thanks to the legalization XXXX. Rent doubled almost overnight forcing us to give up our apartment and rent a small basement from a private home owner and put most of our things in an expensive storage unit. 
Several years ago, I entered into a rehabilitation program with Texas Guaranteed to make payments for 9 months at which time responsibility would return to XXXX. Texas Guaranteed would not work with me on the payment amount which led us to move to another suburb that had cheaper apartments so I could pay them and pay all of our bills. After barely meeting TG 's requirements for the 9 monthly payments, XXXX took over again. I made payments for about another year at which time my Fiancee went through her second layoff. I applied for a forbearance/financial hardship and was denied. This is only based on your GROSS income! I have been supporting XXXX people in an area with a skyrocketing cost of living increase and they denied me. I contacted XXXX to speak to a human instead of online applications and the only response I got was - apply online for financial hardship/forbearance. 
I could not afford to make payments so my loans moved to default and back to Texas Guaranteed. In addition to this the Department of Education ordered the XXXX Treasury to withhold my Federal Tax Returns. They have withheld thousands of my tax dollars over the last XXXX12 years. 
TG calls me constantly. This time they sent me a letter stating they had added fees to the total I owe for my student loans. When this began, I owed XXXX. Now, TG says I owe XXXX including their substantial fees. That adds up to an increase of 33 % above the total I borrowed!. I also have collection companies trying to cash in on this as well. They are trying to collect on specific loans even though TG is already supposed to be the " XXXX '' of my loans partnered with XXXX. 
After receiving this letter, I have received a new XXXX stating they are going to have my wages garnished. I can not afford this!!! I am still supporting myself and my Fiancee while she searches for work. 
While going over this new letter threatening me with garnishment, it occurred to me that there is some fraud going on here. Texas Guaranteed and XXXX as well as the collection companies are still charging me for my full, original loan amount plus 33 % in fees and interest. 
This begs me to question ... ... ... ... ... .. 
First of all, what happened to all the monthly payments I made to both organizations? 
Second, what happened to the thousands of dollars the US Dept. of Ed and the US Treasury withheld to go toward my loans? 
Third, how can it be legal and ethical for these guarantors to charge fees that make it impossible to ever pay these loans off?

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation