Consumer complaint received 2025-04-10 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Texas Guaranteed
State: CA

Complaint narrative:
I am formally requesting the full payoff, satisfaction, and discharge of all XXXX student loans, as well as a refund of the payments I have overpaid over the last 38 years. Despite making substantial payments totaling {$24000.00}, my principal balances have not been properly adjusted, and I am still being charged an unjustified outstanding balance of {$13000.00}. Additionally, loan records contain serious discrepancies, including missing payments, miscalculations following a court judgment, and errors related to my Social Security number. 
Severe Financial Hardship Due to Loan Mismanagement These loans originally totaled just {$7700.00}, yet I have now paid more than XXXX times that amount. Despite my repeated good faith efforts to resolve these issues, the financial burden has made it impossible for me to maintain even a minimal standard of living for myself and my son. 
XXXX XXXX XXXX XXXX XXXX ( XXXX ) and its associated servicers have failed to properly credit my payments, provide accurate accounting, or offer a fair resolution. Their mismanagement has directly contributed to my financial hardship, preventing me from securing stable housing, accessing essential medical care, and affording basic necessities. This situation is beyond unreasonable and must be rectified immediately. 
Summary of Loan Payments and Issues ( EXHIBITS XXXX ) Loan Payment Breakdown All data has been transferred from Trellis loan payment history ( EXHIBIT XXXX ), and XXXX Case Reconstruction Reports ( EXHIBIT XXXX, EXHIBIT XXXX ). 
Loan XXXX ( XXXX, Original Balance : {$2500.00} ) Total Paid : {$9100.00} Loan XXXX ( XXXX, Original Balance : {$2600.00} ) Total Paid : {$8000.00} Loan XXXX ( XXXX, Original Balance : {$1500.00} ) Total Paid : {$4100.00} Loan XXXX ( XXXX, Original Balance : {$1100.00} ) Total Paid : {$3400.00} Major Issues Identified XXXX. Incorrect Balance Calculation Despite making payments far exceeding my original loan amounts, my balances have not decreased accordingly. 
XXXX. Removed Payments {$1800.00} principal payment made in XXXX was removed without explanation from my account records. ( EXHIBIT XXXX PAGE XXXX, EXHIBIT XXXX PAGE XXXX ) XXXX. Inconsistencies in Interest and Principal Allocation Some payments were applied entirely to interest, while others were partially allocated to principal without any clear pattern, in violation of standard loan servicing practices. According to the Higher Education Act ( HEA ) of XXXX and Consumer Financial Protection Bureau ( CFPB ) regulations, servicers are required to apply payments fairly and transparently, ensuring borrowers receive accurate accounting of their repayment progress. If proper allocation guidelines had been followed, all loans would have been fully paid off by XXXX. 
The failure to correctly apply payments and provide a clear breakdown of how they were allocated constitutes bad faith loan servicing and a breach of federal regulations. Per the Truth in Lending Act ( TILA ) and the Fair Credit Reporting Act ( FCRA ), loan servicers must maintain accurate records and disclose how payments are applied. Instead, Trellis has engaged in deceptive practices, resulting in excessive interest charges. It is financially unreasonable and legally indefensible for me to have paid {$6200.00} in interest on a {$2500.00} loana clear indication of mismanagement and predatory servicing. 
XXXX. Judgment Miscalculation ( Case # XXXX ) ( EXHIBIT XXXX ) In XXXX, XXXX XXXX XXXX XXXX sued me in XXXX XXXX XXXX XXXX and won a judgment for {$10000.00}. 
Instead of adjusting my balance, XXXX added {$10000.00} to my loan balance, effectively charging me twice. 
XXXX. Unjustified Loan Rehabilitation and Consolidation Denials Multiple attempts to rehabilitate, consolidate, and enter repayment plans have been denied, with no valid reason provided. 
XXXX. XX/XX/XXXX Hearing Request Denial In XX/XX/XXXX, I requested a hearing to dispute my loan status. 
On XX/XX/XXXX, XXXX XXXX XXXX XXXX sent me a letter stating : " In reviewing your account as part of the hearing process, XXXX has determined your account no longer meets the qualifications for XXXX. Based on this information, it is unnecessary to continue with the hearing process at this time. '' The balance listed on this notice was {$12000.00}. 
XXXX. Other Loans Fully Paid Off While dealing with these unjust loan issues, I continued to make payments on XXXX XXXX XXXX XXXX, both of which were paid in full. ( EXHIBIT XXXX ) XXXX XXXX Loan : Paid in full : {$1700.00} XXXX Unsubsidized XXXX Loan : Paid in full : {$2500.00}. 
XXXX. Verbal Offer from Trellis Refused in Writing On XX/XX/XXXX, Trellis verbally stated that they could offer me a discounted single payment of {$2300.00} as payment in full for all XXXX loans. However : Trellis refused to put this offer in writing. 
Trellis refused to provide a full Satisfaction of XXXX for XXXX # XXXX, even if I made the payment. 
This further proves that Trellis is acting in bad faith and failing to provide transparent, fair, and accountable loan servicing. 
Requested Actions & Immediate Resolution Given the proven financial hardship, gross errors, and repeated mismanagement, I formally demand the following : A Paid in Full Acknowledgment for each of the XXXX loans that are open and serviced under both of my Social Security numbers. 
A Satisfaction of XXXX for XXXX # XXXX, removing any record of an outstanding balance. 
A full refund for overpayments due to inconsistencies in interest and principal allocation. 
Immediate correction and removal of any remaining balance due to the overpayment of {$24000.00} on loans that originally totaled {$7700.00}. 
I request a written response within 30 days addressing these concerns and confirming my loans have been fully satisfied and when to expect my refund. 
Failure to correct these issues will result in legal action. 
I do not have any trust that this will have any impact, therefore, I also sent correspondence to the following agencies and government representatives : XXXX, CFPB, XXXX Ombudsman XXXX, XXXX XXXX Attorney General, XXXX XXXX XXXX, Representative for CA XXXX Congressional District, XXXX XXXX XXXX, XXXX, US Department of Education, and XXXX XXXX XXXX XXXX. 
Final Statement I am a single mother who has struggled for decades to resolve these loans. I am now looking at colleges for my son, yet I am faced with the heartbreaking reality that these loansmeant to help people better themselveshave done the complete opposite. Instead of advancing my life, they have caused severe financial hardship and countless hours of begging for help, only to be ignored or denied at every turn. 
Now, after everything I have endured, if I am not able to obtain a Paid in Full acknowledgment on all four defaulted loans along with a full Satisfaction of Judgment for the court proceeding, these loans will prevent my son from obtaining financing to attend college. This is an unacceptable consequence of a system that has failed to provide the fair and reasonable resolution for which I have fought. 
I urge you to correct these long-standing errors and provide me with the documentation necessary to clear my recordnot just for my own well-being, but to ensure that my son is not unfairly punished for the failures of this system.

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