Texas Guaranteed Student Loan Corporation

The Texas Guaranteed Student Loan Corporation (TG) was a public nonprofit corporation established by the Texas Legislature in 1979 under Chapter 57 of the Education Code[4]. It was created to administer the Federal Family Education Loan Program (FFELP) in Texas, which aimed to encourage private lenders to provide loans to students for postsecondary education[1]. However, TG itself did not originate loans but rather guaranteed them on behalf of the federal government.

Functions

The primary functions of TG included:

• Loan Guarantee Operations: TG guaranteed loans made by private lenders, ensuring repayment to lenders in case of borrower default[1].
• Default Prevention: TG provided educational resources and assistance to help borrowers manage their debt and avoid delinquency[1].
• Claim Payments: TG reimbursed lenders for unpaid loans due to reasons such as bankruptcy, disability, death, or default[1].
• Collections: TG was responsible for collecting payments from borrowers who had defaulted on their loans[1].
• Regulatory Compliance: TG ensured that participating schools and lenders complied with federal regulations[1].

Transition to Trellis Company

By 2017, TG had rebranded itself as Trellis Company, shifting its focus towards broader customer service outsourcing, financial coaching, and helping student borrowers navigate loan repayment[2]. This name change reflected an expansion in services to support more government agencies and the private sector, though it maintained its commitment to supporting borrowers with existing TG loans[2].

Legacy and Current Status

Today, the original Texas Guaranteed Student Loan Corporation as a public entity is inactive, having transitioned into a newer form under Trellis Company[5]. Despite this, its legacy continues as a nonprofit corporation focused on enhancing economic mobility through educational initiatives and financial support[3].