Pennsylvania agency sues Galveston County man, alleging breach of contract

By Robbie Hargett | Oct 15, 2015

A Pennsylvania government agency is suing a Galveston County man, alleging he has defaulted on loan payments.

The Pennsylvania Higher Education Assistance Agency (PHEAA) filed a lawsuit July 28 in Galveston County District Court against Rosario D. Garza of Friendswood, alleging breach of contract.

According to the complaint, on Aug. 28, 2001, Garza obtained a consolidated loan through the Health Education Assistance Loan Program (HEAL), by executing a promissory note in favor of SunTrust Bank for approximately $29,600. On Sept. 12, 2001, the actual amount disbursed to Garza was approximately $29,900, the suit says.

The current holder of the note is Deutsche Elt/SunTrust, which has a contractual relationship with PHEAA for the servicing of HEAL loans, including the one to Garza.

The complaint alleges Garza defaulted on the loan payments Dec. 17, 2014, and is in breach of his obligations under the note.

As of July 28, Garza still owes an outstanding principal of approximately $16,000, plus past due interest of approximately $20, the suit says.

PHEAA seeks to recover the balance owed, plus interest, attorney fees and court costs. It is represented by attorney Scott L. Friedman of Locke Lord in Houston.

Galveston County District Court case number 15-cv-0779.

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