Office of the Ombudsman

TG created the Office of the Ombudsman (om-budz-man) in 1994 to help borrowers resolve issues that have not been resolved during the normal course of business. The Ombudsman provides direction and guidance to help you secure the information you need to resolve your concerns regarding your student loan.

If you are not in default, TG recommends that you first contact the holder of your loan(s) (lender/servicer) or TG Customer Assistance with your questions. TG Customer Assistance may be reached at (800) 845-6267.

If your school, your lender or TG is unable to resolve your dispute, you may request assistance from the Federal Ombudsman at the following address:

Student Financial Assistance
U.S. Department of Education
Office of the Ombudsman
830 First Street, N.E.
Mail Stop: 5144
Washington, D.C. 20202
Toll Free: (877) 557-2575
http://ombudsman.ed.gov

Please review the following list of some of the most common issues presented to the Ombudsman. Doing so might provide you with the solution to your problem.

If the information you need to help you resolve the problem with your defaulted loan is not located here, send your requests in writing to TG's Ombudsman at P.O. Box 83100, Round Rock, TX 78683-3100, or in emergency situations, call (800) 252-9743.

Ombudsman communications regarding repayment of student loan debts are attempts by a debt collector to collect a debt, and any information obtained will be used for that purpose.

Can I make online payments?
My loan balance appears to be incorrect.
My loan should not be in default.
I received no lender contact prior to default.
I was not of a legal age to obtain the student loan (Infancy).
I am an incarcerated borrower.
The school did not provide the education for which I paid.
The school closed before I completed my program of study.
I am unable to pay.
The school I attended will not release my transcript.
The statute of limitations has run out on this debt.
How do I remove a defaulted loan from my credit reports?
What can I do about having multiple student loans at different agencies?
I am a U.S. Disabled Veteran seeking loan cancellation.
I need additional financial aid to go back to school, but I am in default on a student loan.

Can I make online payments?
If your loan is in default, TG's online account management tool, myTG℠, will allow you to make one-time online payments via checking/savings account autodraft, debit card, or credit card. For more information, contact TG Collections at (800) 222-6297 or by e-mail at collections@tgslc.org.

If your loan is not in default, you should contact your lender. Visit TG's Lender Fact Sheets for contact information for your lender.

My loan balance appears to be incorrect.
If you believe that your loan balance does not reflect all of your payments or if you believe that you have paid your loan in full, you may request a statement of your account from TG Collections. After reviewing the information, if you continue to disagree with the balance on record, send two copies of cancelled checks, money orders, or other pertinent information to support any payments not reflected on the statement to TG Collections.

If your balance does not reflect the federal income tax refund offset of which you were notified, send a copy of your tax refund offset notice to TG Collections.

Note: Contact TG Collections at (800) 222-6297 or by e-mail at collections@tgslc.org.

My loan should not be in default.
If you feel that your loan should not be in default, you must provide documentation that shows that your loan was erroneously placed in default even though you took timely and appropriate actions, such as submitting appropriate deferment forms.

Contact your lender directly about the documentation needed to determine whether your situation warrants reconsideration of its default status. Check TG’s Lender Fact Sheets to find out if it lists contact information for your lender.

I received no lender contact prior to default.
Borrowers are required to make payments on student loans — even if they do not receive a bill or a repayment notice. Even though they are not obligated to do so, many lenders send billing statements to borrowers as a convenience. However, not receiving a notice does not remove your obligation to make regular payments. Sometimes a borrower may not receive a billing statement from the lender because the borrower failed to notify the servicing agency about address changes.

If you believe that your default warrants lender reconsideration, contact your lender directly. Check TG’s Lender Fact Sheets to find out if it lists contact information for your lender.

I was not of a legal age to obtain the student loan (Infancy).
Borrowers are no longer able to remove the obligation to repay student loans based on the fact that they were not old enough to take out the loans when they did so. By virtue of Section 484A(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 1091a(b)(2)), the argument that "the signing of a contract by a minor does not create a binding obligation" can no longer release you from your obligation to repay your student loan.

I am an incarcerated borrower.
An incarcerated borrower, or someone on his/her behalf, should notify the agency servicing the loan of the location and terms of incarceration. TG Collections can provide current reporting procedures for individual circumstances.

Note: Contact TG Collections at (800) 222-6297 or by e-mail at collections@tgslc.org.

The school did not provide the education for which I paid.
Borrowers who are dissatisfied with the quality of the educational services they received or with other acts of omission by the school they attended frequently raise this as a defense or objection to repaying a student loan. However, your loan contract with your lender is separate and distinct from your enrollment agreement with the school. Even if failure by the school to deliver services under the enrollment contract gives you a claim against the school, it generally does not excuse you from honoring your loan contract with the lender.

Students are responsible, before enrollment, for determining whether a school offers training that meets their academic and vocational needs. Borrowers who have claims against Texas schools should present those claims against the school directly to the Texas Workforce Commission. Students who have complaints against cosmetology schools in Texas should contact the Texas Cosmetology Commission at (512) 380-7600.

In some specific instances, complaints against a school may be valid grounds for reducing or canceling an obligation to repay a student loan. For example, the loan liability of borrowers who prove they withdrew from enrollment and were owed, but never received, a refund of tuition and fees may have their loan reduced.

The school closed before I completed my program of study.
The U.S. Department of Education has formulated guidelines for the cancellation of student loan debt in instances where the school closes before a student completes a program of study. You must contact TG Customer Assistance to obtain a Closed School Application to determine if you qualify for cancellation of any part of your student loan.

I am unable to pay.
If you cannot afford to make payments toward your defaulted loan you should complete and return a "Financial Disclosure Form" along with evidence of your current financial situation as evidence of your inability to pay (i.e. paycheck stub, copies of billing statements) to TG Collections or the collection agency servicing your account. TG Collections or the collection agency may be able to use the information you provide to establish a temporary payment plan that is acceptable to the agency and affordable to you.

If your loan is not in default, you may qualify for a loan deferment, forbearance, or a new type of payment plan called Income-Based Repayment (IBR). Check with your lender for more information and to learn if you qualify for these payment plans. Visit TG's Lender Fact Sheets for contact information for your lender.

The school I attended will not release my transcript.
If your school will not release your academic transcript unless your defaulted loan is satisfied, you should contact the school for additional details. The academic transcript is the property of the school and the school is responsible for deciding whether to release the transcript to you. No Federal law exists to allow a guaranty agency to require a school to either release or not release an academic transcript. TG’s role, like all guaranty agencies, is to inform schools of the current status of student loan accounts.

The statute of limitations has run out on this debt.
By virtue of section 484A(a) of the Higher Education Act, no statute of limitations limits ED’s or a guaranty agency’s ability to file suit, enforce judgments, initiate offsets, or other actions in order to collect a defaulted student loan. Regardless of the age of the debt, statutes of limitation are no longer valid defenses against repayment of a student loan.

How do I remove a defaulted loan from my credit reports?
Holders of defaulted student loans make periodic updates to federal credit reporting agencies. However, negative credit information may be reported for up to seven years. In other words, whether your loan is paid off following a default or not, the fact that you at one time had a defaulted loan may remain on your credit report for some time. It is possible to have the defaulted student loan information removed from your credit report through the federal loan rehabilitation program. In order to request loan rehabilitation information and to find out whether you qualify, contact your loan holder in writing.

More information about Managing Your Money and Repaying Your Student Loan is available at Adventures In Education.

What can I do about having multiple student loans at different agencies?
Loan consolidation offers an affordable way to repay your student loan debts and remove them from default. Depending on the types of loans you have, they may be consolidated to allow you to make one monthly payment. The money you receive from the consolidation loan would be used to pay off your previous student loan debt. Restrictions do exist on the types of loans that can be consolidated and some borrowers would not benefit from consolidation. Contact your loan holder to find out if you are eligible to use a loan consolidation to improve your situation and if a consolidation would be a good idea for you.

More information about Managing Your Money and Repaying Your Student Loan is available at Adventures In Education.

I am a U.S. Disabled Veteran seeking loan cancellation.
Federal regulations provide for the cancellation of student loans if the borrower becomes totally and permanently disabled. In order to obtain loan cancellation in such a case, you must complete the Loan Discharge Application: Total and Permanent Discharge form and have it signed by a physician licensed to practice medicine or osteopathy in your state. The form provides the doctor a means of certifying that your condition is permanent and prevents you from working even in a limited capacity. Your VA doctor can sign this form for you. If you need additional information about this form, contact TG Collections.

For more information, contact TG Collections at (800) 222-6297 or by e-mail at collections@tgslc.org.

I need additional financial aid to go back to school, but I am in default on a student loan.
The Department of Education has made provisions that allow defaulted borrowers to regain eligibility for additional Title IV financial assistance. This renewed eligibility can be granted only once to a borrower who meets the qualifications. Currently, if you enter repayment with the holder of your loan and make six consecutive on-time monthly payments, you may qualify for renewed Title IV eligibility. You must continue to make these monthly payments in order to retain the renewed eligibility.

More information about Managing Your Money and Repaying Your Student Loan is available at Adventures In Education.