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 Committee is to represent the eligible lenders, secondary markets, and servicers of the student lending industry in advising TG 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 TG and its customers;
2. Trends and conditions that affect TG within the marketplace;
3. Laws and regulations that affect TG within the Federal Family Educational Loan Program or other related student aid programs and issues as appropriate.

III. Structure, Appointment, Removal and Expense Reimbursement

1. Nominations for Lender Advisory Committee membership will be received from several sources: the Association of Texas Lenders for Education (ATLE), the student aid community at large, and TG. 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 TG's student loan program.
2. Appointment to the Lender Advisory Committee is on an individual basis rather than by organization. No voting proxies are permitted.
3. Lender Advisory Committee members are appointed to a two-year term by the TG Board of Directors at the recommendation of the TG 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 TG Board of Directors either by recommendation of the Lender and School Advisory Committees to the TG President and CEO or by direct recommendation to the TG Board of Directors by the TG President and CEO. Consultation with the Lender and School Advisory Committees is recommended before the TG President and CEO recommends removal.
4. Lender Advisory Committee members shall attend at least fifty percent (50%) of meetings scheduled during TG's fiscal year. Substitute attendees do not constitute attendance for the appointed member. A substitute's attendance is for informational purposes only.
5. Lender Advisory Committee member expenses incurred related to Advisory Committee meeting attendance, or other related Advisory committee responsibilities, are not reimbursable.
6. A Committee member is no longer eligible to serve if, at any time during the member's appointed term, the member resigns from the Committee or leaves post-secondary student financial aid related employment. If a Committee member leaves one institution participating with TG in its student financial aid program and joins another, the individual's Committee membership will continue for the remainder of the current fiscal year, even if as a result an institution has two representatives serving on the Committee. If the individual's term extends into the next fiscal year, his/her unexpired term will be completed by a new Committee member designated as set forth in Sections III.1 and 2. above.
7. The Lender Advisory Committee shall elect a Chairperson from within the Committee membership that will be serving the second or subsequent 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.

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 TG Board of Directors, on issues that are requested for committee consideration by the TG Board of Directors;
3. Present an annual written report to the TG Board at a scheduled TG Board 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 TG's planning process.

Revised 08/27/08

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