Lender Advisory Committee Charter and Bylaws

I. Authority and Purpose

The Lender Advisory Committee is authorized by Section 57.461 of the Texas Education Code. The purpose of the Lender Advisory Committee is to represent the lenders, secondary markets, servicers of the student lending industry in advising the Texas Guaranteed Student Loan Corporation (TGSLC) on industry issues.

II. Scope

The Lender Advisory Committee shall consider issues relating to:

1. Changes in corporate policies and procedures that impact the products and services of TGSLC and its customers;
2. Trends and conditions that affect TGSLC within the marketplace;
3. Laws and regulations that affect TGSLC within the Federal Family Education Loan Program or other related student aid programs and issues as appropriate.

III. Structure, Appointment, and Removal

1. Nominations for Committee membership will be received from several sources: The Association of Texas Lenders for Education (ATLE), the student aid community at large, and TGSLC. The Committee shall consist of twelve, (12), members including one, (1), member who represents the Texas Higher Education Coordinating Board and eleven, (11), members who participate in TGSLC's student loan program;
2. Lender Advisory Committee members are appointed to a two-year term by the TGSLC Board of Directors at the recommendation of the TGSLC President and CEO. Lender Advisory Committee members may be re-appointed to an unlimited number of subsequent terms. Lender Advisory Committee members may be removed by the TGSLC Board of Directors either by recommendation of the Lender/School Advisory Committees to the TGSLC President and CEO or by direct recommendation to the TGSLC Board of Directors by the TGSLC President and CEO. Consultation with the Lender/School Advisory Committees is recommended before the TGSLC President and CEO recommends removal.
3. Lender Advisory Committee members shall attend at least fifty percent of meetings scheduled during TGSLC's fiscal year unless the absence is excused by a majority vote of the Committee. Lender Advisory Committee members will also become ineligible to serve if at anytime during their appointed term they resign or otherwise leave Federal Family Education Loan Program related employment or if they leave employment of an eligible lender related industry.
4. The Committee shall elect a Chairperson from within the Lender Advisory Committee membership that will be serving the second year of his or her appointed term. The Chairperson shall serve for a one year term and is responsible for the conduct of Lender Advisory Committee business;
5. Appointment to the Lender Advisory Committee is by individual rather than organization. No proxies are permitted.

IV. Responsibilities

The responsibilities of the Lender Advisory Committee are to:

1. Seek input from other members of the student lending community who are not represented on the Lender Advisory Committee;
2. Discuss and make recommendations, when appropriate, or when requested by the TGSLC Board of Directors on issues that will come before the TGSLC Board of Directors so that the TGSLC Board of Directors will be aware of the opinion of the Lender Advisory Committee before acting on a particular issue;
3. Present a written report to the TGSLC Board of Directors at the TGSLC Board of Directors annual meeting summarizing the Lender Advisory Committee's activities during the past year;
4. Take every appropriate action to thoroughly consider each issue presented and document clearly the Lender Advisory Committee's recommendations.
5. Provide input, as appropriate, into TGSLC's planning process.

Approved 9/99

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