Consumer complaint received 2017-04-24
Company: TRANSWORLD SYSTEMS INC
State: TX
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Can't temporarily delay making payments

Complaint:
Hello, I was a student at  XXXX   XXXX  College. I had taken out loans when I started school  XXXX  of    2016 wi th the schools financial department, this was my first college that I had ever attended so I 100 % put my trust into this school. I was told that I would have to make a payment every month towards my school loan to stay in school I then stated to them that I was a single mother and my pay checks that I were getting were toward my living expenses and my child 's. So they offered my a stipend to help pay the loan. Then on  XXXX   XXXX ,  2016 ev ery student received a message stating  XXXX   XXXX  College has permanently closed effective immediately. We were not given any notice this was shocking to everyone. I called  XXXX  who is with  XXXX   XXXX   XXXX   XXXX  and they had no knowledge to what was happening and that I would be contacted for future information. I did not receive any phone calls for this matter. I then had to look into to other schools and found one  XXXX   XXXX  University who did a teach out and were able to continue but of course for a cost. I am now in my second term there which is actually  XXXX  quarter there and since being there have been paying on my tuition there.  XXXX   XXXX  college did not leave any funds in my account, they took all my financial aid and my Pell grants so everything in this school is out of pocket. I am currently paying the little I can every month and still have a balance of {$5800.00} not including the next term if I do pass. With all this going on I have recently received a letter stating that I must pay  XXXX   XXXX   XXXX   XXXX  {$4100.00} which is upsetting because I did not receive my education from  XXXX   XXXX , the agreement was that I pay back the loan and  XXXX   XXXX  College provide me with my education to complete my  XXXX . They just Abandon all of the students and left them with the debt and left us without a degree.The school shut down with no notice, when signing these contracts that never stated what was to happen if the school closed, the only statement that was ever said was if you chose to leave school that I would be responsible, which is fair but I did not make that choice, instead the school was shut down immediately with out any notice. I now have to pay out of pocket to this new school just to finish my education, and I do n't believe that is fair as a single mother just trying to continue on for my daughter to have to pay this amount back.  XXXX   XXXX  College stayed with this money, I did not leave school. did not take an absence or leave, did not fail in my classes but this school just shut down without any notice to anyone. The news was there the day before we were having class normally and not once did anyone say anything. That is completely heart breaking. I am Upset, hurt, discouraged when all I want is to finish my education. I can not pay for these loans with the loans that I have for this new school. There was a breach of contract and  XXXX   XXXX  College should be held liable. Thank you for your time

Company response to consumer: Closed with explanation