2026-04-21T08:26:08-07:00 2025-08-31 752593210 Sutton Frost Cary LLP 200 E Front St Suite 200 Arlington TX 76011 990 2024-09-01 751661098 HIGHER EDUCATION SERVICING CORPORATION HIGH 8172659158 4381 W GREEN OAKS BLVD 200 ARLINGTON TX 76016 PHILLIP WAMBSGANSS President 2026-04-21 true true Carroll Elizabeth Arnott P01965628 8176498083 2024 2025-03-06 01:10:19Z PHILLIP WAMBSGANSS 4381 W GREEN OAKS BLVD 200 ARLINGTON TX 76016 36110134 false X hescloans.com X 1978 TX HESC FOSTERS QUALITY SERVICING FOR STUDENT LOANS, ENCOURAGES AND PROMOTES STUDENT ENROLLMENT AT POST-SECONDARY LEVEL INSTITUTIONS. 6 6 90 6 2136717 240465 128238 20186974 13679548 12533741 336618 1188870 1589993 2137984 15734397 36047569 50000 175500 0 7155535 9149728 0 0 4225222 4439807 11430757 13765035 4303640 22282534 52194254 76412285 1585333 2562050 50608921 73850235 HESC FOSTERS QUALITY SERVICING FOR STUDENT LOANS, ENCOURAGES AND PROMOTES STUDENT ENROLLMENT AT POST-SECONDARY LEVEL INSTITUTIONS. HESC PROVIDES STUDENT LOANS AND LIFE OF LOAN SERVICING AND PROGRAM ADMINISTRATION OF STUDENT LOANS UNDER AGREEMENTS WITH NOTE HOLDERS INCLUDING HIGHER EDUCATION AUTHORITIES. HESC IS RESPONSIBLE FOR THE REPORTING, COLLECTION AND ACCOUNTING FOR THE LOANS. HESC ALSO ADMINISTERS EDUCATIONAL OUTREACH PROGRAMS AND SERVICES IN NORTH TEXAS. false false 11028025 12533741 SERVICING AND ADMINISTRATION OF STUDENT LOANS AND DEVELOPMENT OF COMPUTER SYSTEMS TO SERVICE STUDENT LOANS ON BEHALF OF LOAN HOLDERS INCLUDING THE NORTH TEXAS HIGHER EDUCATION AUTHORITY. 408835 182500 OUTREACH ACTIVITIES TO LOCAL AND REGIONAL STUDENTS PREPARING FOR POST SECONDARY EDUCATION. 11436860 true true false true false false false false false true true false true false false true false true false false false false false false false false false false true true false false false false false false false false false false false false false true true true false false true 20603 0 true 90 true true true false false false false false false 0 false false false false false false false X 6 6 false false false false false false false true true false false false true true true true true true true false X DENISE DUNN-TRAKSHEL 8172659158 4381 W GREEN OAKS BLVD STE 200 ARLINGTON TX 76016 PHILLIP WAMBSGANSS President 40.00 0.00 X 395283 0 44502 ROBERT LAMBERSON EVP - IT & SYSTEM DEVELOPMENT 40.00 0.00 299586 0 40291 KEVIN MONTGOMERY EVP - OPERATIONS 40.00 0.00 202114 0 30114 DENISE DUNN-TRAKSHEL VP OF FINANCE 40.00 0.00 X 189820 0 28138 VINCENT POLITE SERV. SYSTEM MGR. 40.00 0.00 159526 0 17429 COURTNEY CHURCHWELL DIR. OF ACCOUNTING 40.00 0.00 141790 0 23704 ANDREW SWAFFAR PROGRAMMER 40.00 0.00 139863 0 23790 BRADFORD BYNUM ORIGIN. SYS. MGR. 40.00 0.00 143427 0 16852 PHIL KINMAN DIR OF COMPLIANCE 40.00 0.00 136152 0 22023 KENNETH D WOODS President 1.00 0.00 X X 1800 0 0 STEPHEN VINCENT Director 1.00 0.00 X 1800 0 0 JUDITH SCHNEIDER SEC/TREAS 1.00 0.00 X X 1800 0 0 JOHN HIBBS Director 1.00 0.00 X 1800 0 0 STEPHANIE BUDUHAN Director 1.00 0.00 X 1800 0 0 LAURIE BIANCO Director 1.00 0.00 X 1200 0 0 1817761 246843 18 false true false REPAYCDT TECHNOLOGIES LTD 3W PACES FERRY RD STE 200 ATLANTA GA 30305 PRINT & POSTAGE SERVICES 383252 NORTON ROSE FULBRIGHT US LLP PO BOX 122613 DALLAS TX 75312 LEGAL SERVICES 400787 NELNET SERVICING LLC 121 S 13TH STREET SUITE WF 400 LINCOLN NE 68508 LOAN SERVICING 597835 ROBERT HALF TECHNOLOGY 2884 SAND HILL RD STE 200 MENLO PARK CA 94025 STAFFING SERVICE 483121 NAVIENT CORPORATION DBA NAVIENT SOLUTIONS LLC 13865 SUNRISE VALLEY DR STE 110 HERNDON VA 20171 LOAN SERVICING 281688 14 20186974 20186974 LENDER LOAN SERVICING FEE 522320 4879003 4879003 LOAN SVCNG PASS THRU FEES 522320 1009066 1009066 PROGRAM ADMIN FEES 522320 5498724 5498724 STUDENT LOAN INCOME 522291 1146948 1146948 12533741 1188620 1188620 0 0 99738 62565 37173 37173 35906 1267 250 250 250 250 0 0 0 SHARED SERVICES 522320 2100811 2100811 2100811 36047569 12533741 2136717 1190137 0 175500 175500 0 0 1240047 1078841 161206 0 5921093 4660084 1261009 899879 712647 187232 561879 446746 115133 526830 421464 105366 0 102419 81935 20484 157975 150076 7899 630 630 0 0 631236 504989 126247 231389 208950 22439 833339 733779 99560 0 0 14051 6639 7412 0 0 114902 97667 17235 0 0 421899 383524 38375 59208 52063 7145 PASS THROUGH FEES 1009066 1009066 SERVICING SUPPORT/LOAN BILLING 381548 343393 38155 DOUBTFUL ACCOUNT EXPENSE 247480 247480 DUES AND SUBSCRIPTIONS 73640 62594 11046 161025 58793 102232 13765035 11436860 2328175 0 200 200 30720342 46970960 0 3354308 4867044 0 0 0 0 91867 133636 10021002 3967707 6283844 6053295 0 0 10844011 17299572 36523 40108 863159 1047470 52194254 76412285 1585333 2562050 1585333 2562050 X 50608921 73850235 50608921 73850235 52194254 76412285 22282534 960084 -1304 X false true X true false X X 1 CITY OF ARLINGTON TEXAS 756004503 6 false 0 13588524 1 13588524 false true false false false false false false false false false false false false false true false true X Part I: Additional Information Schedule A, Part I, Line 12g, Column (vi): HESC serves as the program administrator for student loans held by the North Texas Higher Education Authority (NTHEA). Like HESC, NTHEA is a supporting organization that supports the city of Arlington, Texas (the City). HESC's student outreach activities also support the City. Part I, Line 12f: Supported Org Not Named in Organizing Documents Part IV, Section A, Line 1: Description Of How Supported Organizations Are Desigated The North Texas Higher Education Authority (NTHEA) was created jointly by the cities of Arlington and Denton, Texas (the Cities) for the purpose of providing students in North Texas with access to the benefits of the Guaranteed Student Loan Program. When NTHEA was formed the Texas Education Code (the TEC) required NTHEA to contract with a nonprofit corporation organized under the laws of [Texas], whereby such corporation will provide such reports and other information required for participation in the federally guaranteed loan program provided by the Higher Education Act of 1965." HESC was created to provide NTHEA and the Cities with the services and functions required by the TEC. In September 2015 following the passage of HB 3245 during the 84th Texas Legislative session and upon the NTHEA's request to simplify its organizational structure the City of Denton passed a resolution to rescind its "on behalf of" support of the NTHEA, and the City of Arlington reaffirmed the NTHEA to "act on its behalf in the exercise of the powers enumerated under Section 53B.47 of the Texas Education Code to further educational opportunities." By servicing student loans and serving as program administrator for student loans held by NTHEA and other financial institutions, and engaging in outreach activities to local and regional students preparing for post-secondary education, HESC is engaging in activities for or on behalf of the City that carries out the educational-loan-related functions of the City and continuing the historic relationship between HESC, NTHEA, and the City. Part IV, Section A, Line 2: Description Of How Organization Determined Supported Org. HESCs supported organization is the city of Arlington, Texas. Arlington, Texas is a governmental unit described in section 170(c)(1) and therefore described in section 509(a)(1) by virtue of the cross-reference to section 170(c)(1) in section 170(b)(1)(A)(v). Part IV, Section D, Line 2: Organizaiton Maintained A Relationship with Supported Orgs. NTHEAs directors are approved by the City of Arlington and the Executive Director of NTHEA is also the President of HESC, thereby ensuring a close and continuing working relationship is maintained with the City. Part IV, Section D, Line 3: Role The Organization's Supported Orgs. Played HESC was created to satisfy the statutory mandate under the TEC described above and thereby support NTHEA and the City. NTHEAs directors are approved by the City of Arlington and the Executive Director of NTHEA is also the PRESIDENT of HESC, thereby ensuring the City has a significant voice in HESCs investment policies and in directing the use of HESCs income or assets. Part IV, Section E, Line 1c: Explain How Organization Supports Government Entity THE NORTH TEXAS HIGHER EDUCATION AUTHORITY (NTHEA) WAS CREATED JOINTLY BY THE CITIES OF ARLINGTON AND DENTON, TEXAS (THE CITIES) FOR THE PURPOSE OF PROVIDING STUDENTS IN NORTH TEXAS WITH ACCESS TO THE BENEFITS OF THE GUARANTEED STUDENT LOAN PROGRAM. WHEN NTHEA WAS FORMED THE TEXAS EDUCATION CODE (THE TEC) REQUIRED NTHEA TO CONTRACT WITH A NONPROFIT CORPORATION ORGANIZED UNDER THE LAWS OF [TEXAS], WHEREBY SUCH CORPORATION WILL PROVIDE SUCH REPORTS AND OTHER INFORMATION REQUIRED FOR PARTICIPATION IN THE FEDERALLY GUARANTEED LOAN PROGRAM PROVIDED BY THE HIGHER EDUCATION ACT OF 1965 (THE HEA). HESC WAS CREATED TO PROVIDE NTHEA AND THE CITIES WITH THE SERVICES AND FUNCTIONS REQUIRED BY THE TEC. A SUBSTANTIAL PART OF HESCS ACTIVITIES ARE SERVICING STUDENT LOANS, SERVING AS PROGRAM ADMINISTRATOR FOR STUDENT LOANS HELD BY NTHEA, AND ENGAGING IN OUTREACH ACTIVITIES TO LOCAL AND REGIONAL STUDENTS PREPARING FOR POST-SECONDARY EDUCATION. THESE ACTIVITIES DIRECTLY FURTHER THE EXEMPT PURPOSES OF HESCS GOVERNMENTAL SUPPORTED ORGANIZATION, THE CITY OF ARLINGTON. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false true 630 false false false 630 false false Part II-B, Line 1i - Other Activities Description HESC IS AN ASSOCIATE MEMBER OF THE EDUCATION FINANCE COUNSEL, A 501(C)(3) ORGANIZATION THAT SPENDS 10% OF ITS REVENUES ON LOBBYING ACTIVITIES. THE $630 REPRESENTS THE EQUIVALENT AMOUNT OF LOBBYING EXPENSE PAID BY HESC THROUGH ITS MEMBERSHIP DUES. Part IV - Additional Information 20000000 1202141 21202141 1.00000 false false false 644688 644688 859762 282001 577761 1172126 814755 357371 1063724 826224 237500 6280702 2044727 4235975 6053295 17299572 X Part V, Line 4: Intended uses of the endowment fund. HESCs endowment consists of $20 million dollar gift from NTHEA in December 2024 for the purpose of funding the Kathryn Bryan Memorial Scholarship fund and HESCs outreach programs in local schools and colleges in and around Arlington, TX. The endowment is donor-restricted based on the endowment agreement. As required by accounting principles generally accepted in the United States of America (GAAP), net assets associated with endowment funds, including board designated endowment funds, are classified and reported based on the existence or absence of donor-imposed restrictions. Part X : FIN48 Footnote HESC is exempt from federal income taxes under Internal Revenue Code (IRC) Section 501(a) as an organization described in IRC Section 501(c)(3). However, income generated by activities unrelated to the purposes for which HESC was created will be subject to tax. HESC estimated a federal tax liability of $55,537 in 2025 and $20,303 in 2024 for unrelated business income included in the consolidated statements of financial position in accounts payable and did not have any federal income tax liability in prior years. HESC recognizes the financial effect of a tax position if that position is more likely than not to be sustained upon examination, including resolution of any appeals or litigation processes, based upon the technical merits of the assets. Tax positions taken related to HESCs tax exempt status, and state filing requirements have been reviewed, and management is of the opinion that material positions taken by HESC would more likely than not be sustained by examination. Accordingly, HESC has not recorded an income tax liability for uncertain tax benefits. false 0 0 SCHOLASTIC SCHOLARSHPS 35 175500 X X false false false false false false false true false ANDREW SWAFFAR PROGRAMMER 120000 19634 229 13986 9804 163653 BRADFORD BYNUM ORIGIN. SYS. MGR. 122308 20776 343 7171 9681 160279 COURTNEY CHURCHWELL DIR. OF ACCOUNTING 122210 19054 526 14179 9525 165494 DENISE DUNN-TRAKSHEL VP OF FINANCE 161900 26626 1294 18982 9156 217958 KEVIN MONTGOMERY EVP - OPERATIONS 179231 22432 451 20212 9902 232228 PHIL KINMAN DIR OF COMPLIANCE 117200 18609 343 13615 8408 158175 PHILLIP WAMBSGANSS President 283462 110527 1294 34500 10002 439785 ROBERT LAMBERSON EVP - IT & SYSTEM DEVELOPMENT 237169 61725 692 29959 10332 339877 VINCENT POLITE SERV. SYSTEM MGR. 136898 22074 554 7976 9453 176955 Part I, Line 7: Non-Fixed payments not listed above The Board determines annual bonus compensation for employees based on the employees work performance and objective economic measures, such as CPI, COLA, or inflation. Form 990, Part VI, Section B, Line 11b THE FORM 990 IS PREPARED BY A CPA FIRM, REVIEWED BY THE HESC CONTROLLER AND BY THE HESC CEO, BEFORE IT IS FILED. THE CEO DISCUSSES THE FORM 990 WITH THE BOARD OF DIRECTORS AFTER IT IS FILED. Form 990, Part VI, Section B, Line 12c HESC'S GENERAL COUNSEL ATTENDS EVERY BOARD MEETING. THE GENERAL COUNSEL REVIEWS THE CONFLICT OF INTEREST POLICY WITH THE BOARD MEMBERS ON AN ANNUAL BASIS AND ENFORCES COMPLIANCE WITH THE POLICY. Form 990, Part VI, Section B, Line 15a THE BOARD OF DIRECTORS IS PROVIDED WITH INDUSTRY RELATED SALARY SURVEYS AND INFORMATION PREPARED BY THIRD PARTIES. COMPARABLE JOBS AND SALARIES ARE REVIEWED PRIOR TO ANNUAL BUDGET SALARIES BEING SET. AN EFC industry survey is completed every two years (last done in the summer of 2022) as well as using an outside consultant in June of 2025 to evaluate the compensation & benefits of HESC. Form 990, Part VI, Section C, Line 19 HESC PROVIDES ITS AUDITED FINANCIAL STATEMENTS AND REPORTS TO THE PUBLIC UPON WRITTEN REQUEST. HESC DOES NOT MAKE ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC. N/A false HESC SOLUTIONS INC 4381 W GREEN OAKS BLVD STE 200 ARLINGTON TX 76016 883560754 S/W DEV & LIC; LOAN SERVICING TX HESC C CORP 1.00000 true true false false false false false false false false false false true false true true false true false false HESC SOLUTIONS INC a 35906 AMOUNT PAID HESC SOLUTIONS INC n 88599 AMOUNT PAID HESC SOLUTIONS INC o 2012213 AMOUNT PAID HESC SOLUTIONS INC q 1859346 AMOUNT PAID