Sec. 57.41. GUARANTEED STUDENT LOANS

(a) The corporation shall guarantee loans made to eligible borrowers by eligible lenders as provided by the federal guaranteed student loan program under the Higher Education Act of 1965, 20 U.S.C. Sec. 1001 et seq., as amended.

(b) The corporation may prescribe the terms and conditions on which the loans are to be guaranteed. In prescribing those terms and conditions, the board shall take into consideration the need to encourage lenders to make loans while at the same time maintaining the fiscal integrity of the program.

(c) The corporation shall make loans to eligible students, as a lender of last resort, under the following conditions:

(1) the borrower certifies and provides evidence to the corporation that the borrower has made an application to at least two qualified lenders and was unable to obtain a guaranteed student loan from a commercial lender and is not aware of any eligible lender in this state that is willing to make a guaranteed student loan;

(2) the borrower also certifies to the corporation that the borrower was unable to obtain a guaranteed student loan from the Texas Higher Education Coordinating Board;

(3) the corporation certifies that it is not aware of any eligible lender in this state that is willing to make a guaranteed student loan; and

(4) the corporation must, to the extent a market is available, sell loans made as last resort loans within a reasonable period of time of the date of loan origination. This provision will not apply to any loans that cannot be sold at par. The corporation shall maintain a separate file showing the name and address of the student receiving such a loan and the name and address of the involved educational institution.

(d) The corporation may participate in revenue-generating activities as provided for in Section 57.24 of this code.

Added by Acts 1979, 66th Leg., p. 1711, ch. 706, Sec. 1, eff. Aug. 27, 1979. Amended by Acts 1985, 69th Leg., ch. 64, Sec. 1, eff. Sept. 1, 1985; Acts 1989, 71st Leg., ch. 985, Sec. 10, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 450, Sec. 6, eff. Aug. 26, 1991; Acts 1999, 76th Leg., ch. 967, Sec. 6, eff. June 18, 1999.