| FORM 990, PART III, LINE 4A - GUARANTOR OPERATIONS: |
GUARANTOR OPERATIONS: TRELLIS' GUARANTOR OPERATIONS ENCOMPASSES THE ADMINISTRATION OF THE FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP) ON BEHALF OF THE U.S. DEPARTMENT OF EDUCATION (ED). AS OF THE FISCAL YEAR END, TRELLIS' OUTSTANDING LOAN PORTFOLIO BALANCE TOTALED $5.0 BILLION AND DEFAULTED LOANS COLLECTION PORTFOLIO OF $1.0 BILLION. PROGRAM SERVICE ACCOMPLISHMENTS: PROMOTING BORROWER SUCCESS IS A LONG-TERM ENDEAVOR, STARTING BEFORE A STUDENT BORROWER ENROLLS IN COLLEGE AND LASTING THROUGH REPAYMENT. TRELLIS HAS A SET OF SPECIALIZED TEAMS - CUSTOMER ASSISTANCE, DEFAULT PREVENTION, CLAIMS AND DEFAULT RECOVERY - THAT SERVE BORROWERS THROUGHOUT THE STUDENT LOAN LIFECYCLE. THESE TEAMS EDUCATE STUDENT BORROWERS ABOUT LOANS AND THEIR REPAYMENT OPTIONS AND HELP THEM RETURN TO REPAYMENT IN THE CASE OF DELINQUENCY OR DEFAULT. DEFAULT PREVENTION - TRELLIS WORKS WITH STUDENT LOAN BORROWERS, LENDERS AND SERVICERS TO HELP PREVENT DEFAULT ON STUDENT LOANS. COUNSELORS WORK WITH BORROWERS WHO HAVE ENTERED DELINQUENCY, EDUCATING THEM ON STUDENT LOAN REPAYMENT OPTIONS, DEFERMENTS AND FORBEARANCES IN ORDER FOR BORROWERS TO SUCCESSFULLY REPAY THEIR FEDERAL STUDENT LOANS AND AVOID DEFAULT. IN FY21 THE TEAM RECEIVED 77,156 DEFAULT AVERSION ASSISTANCE REQUESTS FROM LENDERS AND SUCCESSFULLY AVERTED APPROXIMATELY $1.5 BILLION FROM DEFAULT. AS A RESULT, MORE BORROWERS RETURN TO AND MAKE PROGRESS IN REPAYMENT, WHICH ALLOWS THE BORROWERS TO AVOID THE NEGATIVE CONSEQUENCES OF DEFAULT, INCLUDING DAMAGED CREDIT, THE LOSS OF ELIGIBILITY FOR FEDERAL STUDENT AID AND THE HIGH COST OF COLLECTION FEES. CLAIMS - TRELLIS PROCESSES DEFAULT CLAIMS SUBMITTED BY LENDERS THAT HAVE BEEN UNSUCCESSFUL IN TRANSITIONING BORROWERS WITH DELINQUENT LOANS BACK INTO REPAYMENT. WHEN LENDERS SUBMIT CLAIMS ON TRELLIS -GUARANTEED LOANS, TRELLIS VERIFIES THE LENDER'S COMPLIANCE WITH FFEL PROGRAM REQUIREMENTS, AND, IF VALID, MANAGES THE PURCHASE OF THE LOAN FROM THE LENDER. IT IS AT THAT TIME THAT THE LOAN ENTERS TRELLIS' PORTFOLIO FOR COLLECTION. IN FY21, TRELLIS PROCESSED DEFAULT CLAIMS TOTALING APPROXIMATELY $129 MILLION. COLLECTIONS - UPON DEFAULT CLAIM PAYMENT, TRELLIS IS STATUTORILY REQUIRED TO PURSUE COLLECTION EFFORTS ON BEHALF OF THE FEDERAL GOVERNMENT ON ALL TRELLIS - GUARANTEED STUDENT LOANS. WHILE THE TEAM'S CORE RESPONSIBILITY IS TO RECOVER TAXPAYER ASSETS, TRELLIS WORKS WITH BORROWERS TO FIND THE BEST OPTION FOR THEM IN RESOLVING THEIR DEFAULT. THE GOAL IS TO HELP THE BORROWER RETURN TO REPAYMENT IN A WAY THAT REPAIRS THEIR CREDIT. IN FY21, TRELLIS' DEFAULT RECOVERY TEAM SET UP NEW REPAYMENT PLANS FOR 5,172 BORROWERS. OF THOSE NEW REPAYMENT PLANS, 84.8 PERCENT STARTED BORROWERS ON BENEFICIAL REHABILITATION PROGRAMS, THE BEST SOLUTION FOR BORROWERS WITH DEFAULTED LOANS. IN MARCH 2021, ED EXPANDED THE PROVISIONS FOR FEDERAL STUDENT LOAN BORROWERS WITH FFELP LOANS. FFELP GUARANTORS LIKE TRELLIS WERE ASKED TO REFUND ALL INVOLUNTARY RECOVERIES COLLECTED SINCE MARCH 2020 AND VOLUNTARY RECOVERIES COLLECTED FOR A SIMILAR PERIOD OF TIME WHEN THE BORROWERS REQUESTED A REFUND. ED REIMBURSED TRELLIS FOR THESE REFUNDS FROM THE FEDERAL FUND. IN ADDITION, ED PROVIDED FOR A LOST REVENUE PAYMENT FROM THE FEDERAL FUND TO BE BASED ON RECOVERY COLLECTIONS FORGONE DURING THE PANDEMIC THROUGH THE END OF THE PAUSE PERIOD DEFINED AS AUGUST 2022. TRELLIS DEVELOPED A LOST REVENUE METHODOLOGY BASED ON THE BUDGETARY AND HISTORICAL DATA. THESE TWO REVENUE STREAMS ARE REIMBURSEMENT FOR ACTUAL PAYMENTS MADE ON COLLECTIONS RETURNED AND THE DIFFERENCE IN PROJECTED AND ACTUAL RECOVERIES COLLECTED FOR THE LOSS REVENUE EACH QUARTER. IN FY21, TRELLIS COLLECTED APPROXIMATELY $109 MILLION IN DEFAULTED STUDENT LOANS AND RECEIVED $47.1 MILLION IN LOST REVENUE FROM ED. |
| FORM 990, PART III, LINE 4B - NON-GUARANTOR OPERATIONS: |
NON-GUARANTOR OPERATIONS: TRELLIS' NON-GUARANTOR OPERATIONS INCLUDE VARIOUS ENDEAVORS RELATED TO PROMOTING ACCESS TO HIGHER EDUCATION, INCLUDING TRELLIS' PHILANTHROPIC ACTIVITIES. ADDITIONALLY, TRELLIS PROVIDES A VARIETY OF SERVICES TARGETED AT ENHANCING THE HIGHER EDUCATION COMMUNITY AND CREATING POSITIVE STUDENT OUTCOMES, INCLUDING: RESEARCH AND PUBLIC POLICY SERVICES: TRELLIS PROVIDES EXTENSIVE RESEARCH SERVICES THAT ARE TARGETED AT UNDERSTANDING THE CONSUMER EXPERIENCE RELATED TO FINANCING, PARTICIPATING AND PERSISTING IN HIGHER EDUCATION. THESE SERVICES ARE UTILIZED TO BETTER UNDERSTAND THE CHALLENGES ASSOCIATED WITH POST-SECONDARY FINANCING AND PARTICIPATION AND ARE USED TO INFORM CAMPUS ADMINISTRATORS, STUDENT SERVICE PROVIDERS AND POLICY MAKERS. TRELLIS ADMINISTERS A WIDE VARIETY OF QUALITATIVE AND QUANTITATIVE RESEARCH THROUGHOUT THE YEAR TO SUPPORT THESE GOALS. STUDENT SUPPORT SERVICES- TRELLIS PROVIDES A VARIETY OF SUPPORT SERVICES TARGETED AT ASSISTING STUDENTS IN NAVIGATING THE COLLEGE ACCESS AND COMPLETION JOURNEY. THESE SERVICES INCLUDE: - FINANCIAL COACHING SERVICES (WHICH PROVIDES IN DEPTH ONE ON ONE CONSULTATIONS REGARDING STUDENT FINANCES), - SUPPORT SERVICES FOR FILLING OUT THE FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA), - STUDENT FINANCIAL LITERACY RESOURCES, - COMMUNICATION SERVICES TO HELP STUDENTS START AND STAY IN COLLEGE, AND - A FREE, PUBLIC-ACCESS WEBSITE MOSAIEC (MOSAIEC.ORG) TO PROVIDE RESOURCES ABOUT HOW AND WHY TO PAY FOR COLLEGE, - DEFAULT PREVENTION SERVICES TO STUDENTS PRIOR TO DEFAULT, - SUPPORT TO ASSIST STUDENTS WHO HAVE STOPPED-OUT TO RETURN TO COMPLETE THE DEGREE. INSTITUTIONAL SUPPORT SERVICES: TRELLIS PROVIDES SUPPORT RESOURCES FOR COLLEGE AND UNIVERSITIES TO ASSIST IN DEVELOPING CAPACITY ON CAMPUS. THESE SERVICES SUPPORT THE DEVELOPMENT OF POLICIES, PROCEDURES AND PROGRAMS THAT ASSIST IN HELPING MORE STUDENTS OBTAIN A POSTSECONDARY DEGREE OR CREDENTIAL. |
| FORM 990, PART VI, SECTION A, LINE 2 |
THE FOLLOWING TRELLIS COMPANY EMPLOYEES, AS OFFICERS/DIRECTORS OF TRELLIS HOLDINGS, HAVE A BUSINESS RELATIONSHIP: - YVONNE BATTS - RENARD JOHNSON - EDWARD ESCUDERO - DENNIS MORONEY - GREG DICKENSON THE FOLLOWING TRELLIS COMPANY EMPLOYEES, AS OFFICERS OF WAYPOINT RESOURCE GROUP, HAVE A BUSINESS RELATIONSHIP: - SCOTT GILES - GREG DICKENSON - DANEN SHIEK |
| FORM 990, PART VI, SECTION B, LINE 11B |
TRELLIS' ACCOUNTING DEPARTMENT WORKS WITH ITS CPA FIRM TO PREPARE THE 990. ONCE A FINAL DRAFT IS AVAILABLE, IT IS SUBMITTED TO EXECUTIVE MANAGEMENT FOR REVIEW. ONCE ALL QUESTIONS HAVE BEEN RESOLVED, THE RETURN, IN ITS FINAL FORM, IS PROVIDED TO THE TRELLIS BOARD OF DIRECTORS FOR THEIR REVIEW. |
| FORM 990, PART VI, SECTION B, LINE 12C |
TRELLIS' CODE OF BUSINESS CONDUCT IS A POLICY WHICH ALL EMPLOYEES, OFFICERS, AND DIRECTORS MUST AGREE TO. WITHIN THE CODE OF BUSINESS CONDUCT, MANAGERS, KEYS EMPLOYEES, OFFICERS AND DIRECTORS ARE REQUIRED TO DISCLOSE ANY BUSINESS INTERESTS OUTSIDE OF TRELLIS. TRELLIS' LEGAL COUNSEL PROACTIVELY REVIEWS AND ACTS ON POTENTIAL CONFLICTS. ACTUAL CONFLICTS, SHOULD THEY OCCUR, MAY RESULT IN DISCIPLINARY ACTION, UP TO AND INCLUDING TERMINATION AND POSSIBLE CRIMINAL PROSECUTION. TRELLIS TEAM MEMBERS ARE REQUIRED TO COMPLETE PERIODIC TRAINING AS IT RELATES TO TRELLIS' CODE OF BUSINESS CONDUCT. |
| FORM 990, PART VI, SECTION B, LINE 15 |
TRELLIS CONTRACTS WITH A THIRD PARTY CONSULTANT TO PROVIDE BENCHMARK DATA FOR TRELLIS EMPLOYEES AND OFFICERS, INCLUDING ANNUAL COMPENSATION STUDIES WHICH ARE PRESENTED TO THE TRELLIS BOARD OF DIRECTORS FOR THEIR REVIEW. IN 2021, TRELLIS ALSO ENGAGED A THIRD PARTY CONSULTANT TO PERFORM A COMPENSATION ANALYSIS FOR THE BOARD POSITIONS AND THE BOARD ADOPTED THE CONSULTANT'S RECOMMENDATIONS. THE THIRD PARTY CONSULTANTS USE COMPENSATION DATA FOR SIMILARLY QUALIFIED PERSONS IN THE COMPARABLE POSITIONS FOR BOTH OFFICERS AND KEY EMPLOYEES IN SIMILAR ORGANIZATIONS. DOCUMENTATION TO SUPPORT BENCHMARK DECISIONS REGARDING COMPENSATION ARRANGEMENTS FOR ALL EMPLOYEES IS RETAINED. THE OFFICER AND EMPLOYEE POSITIONS FOR WHICH THE BENCHMARKING PROCESS IS USED TO ESTABLISH COMPENSATION OCCURS ANNUALLY. THE BOARD OF DIRECTORS SPECIFICALLY REVIEWS EXECUTIVE MANAGEMENT COMPENSATION BENCHMARKS AND APPROVES ANNUAL ADJUSTMENTS AND/OR MERIT INCREASES AS RECOMMENDED BY THE PRESIDENT/CEO. ANNUALLY, THE BOARD MAKES SPECIFIC DECISIONS OF THE PRESIDENT/CEO'S SALARY. DECISIONS REGARDING COMPENSATION ARE DOCUMENTED IN THE BOARD MEETING MINUTES. |
| FORM 990, PART VI, SECTION C, LINE 19 |
TRELLIS' CODE OF BUSINESS CONDUCT IS AVAILABLE TO ALL EMPLOYEES AND THE GENERAL PUBLIC VIA TRELLIS' WEBSITE: WWW.TRELLISCOMPANY.ORG. TRELLIS' AUDITED FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. |
| FORM 990, PART IX, LINE 11G |
CONSULTING: PROGRAM SERVICE EXPENSES 756,432. MANAGEMENT AND GENERAL EXPENSES 272,272. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,028,704. HR CONSULTING/EMPLOYEE BENEFIT: PROGRAM SERVICE EXPENSES 193,818. MANAGEMENT AND GENERAL EXPENSES 69,763. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 263,581. IT OFF SIGHT RECOVERY SERVICES: PROGRAM SERVICE EXPENSES 65,096. MANAGEMENT AND GENERAL EXPENSES 23,431. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 88,527. IT PROFESSIONAL SERVICES: PROGRAM SERVICE EXPENSES 272,426. MANAGEMENT AND GENERAL EXPENSES 98,058. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 370,484. MISC SERVICES: PROGRAM SERVICE EXPENSES 54,993. MANAGEMENT AND GENERAL EXPENSES 19,795. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 74,788. RECRUITING: PROGRAM SERVICE EXPENSES 133,305. MANAGEMENT AND GENERAL EXPENSES 47,982. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 181,287. TWC-ICR SUBCONTRACT EXPENSE: PROGRAM SERVICE EXPENSES 12,941,038. MANAGEMENT AND GENERAL EXPENSES 4,658,034. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 17,599,072. COMMISSION: PROGRAM SERVICE EXPENSES 5,151. MANAGEMENT AND GENERAL EXPENSES 1,854. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 7,005. |
Attach to Form 990 or 990-EZ.