BILL ANALYSIS


                                                        H.B. 1157
                                                By: Hunter (Luna)
                                                        Education
                                                         04-06-95
                              Senate Committee Report (Unamended)
BACKGROUND

The Texas Guaranteed Student Loan Corporation (TGSLC) was created
to serve the postsecondary educational needs of Texas families. 
Since 1981, the TGSLC has guaranteed over 1.5 million student loans
approximating $6 billion.  The repayment on these loans is 80
percent.  This service is carried at no cost or liability to the
State of Texas.

Change in the administration of the publicly-funded Federal
District Student Loan Program and the privately-funded Federal
Family Educational Loan Program (FFELP) require amending current
law to permit the TGSLC the flexibility to work with the federal
government in assuming the activities of guarantors which choose,
or are directed, to leave the FFELP.

PURPOSE

As proposed, H.B. 1157 amends current law to permit the Texas
Guaranteed Student Loan Corporation to work with the federal
government in assuming the activities of certain guarantors while
allowing the corporation to continue its primary mission of serving
postsecondary education financing needs of Texas families.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 57.22, Education Code, by deleting
existing Subsection (3) which prohibits the Texas Guaranteed
Student Loan Corporation (corporation) from merging or
consolidating with another corporation.

     (3)-(5)   Redesignate existing Subdivisions (4)-(6).
     
     SECTION 2.     Amends Section 57.24, Education Code, by deleting
existing Subsection (c), which prohibits the corporation from
guaranteeing loans for other states.

SECTION 3. Amends Section 57.761, Education Code, as follows:

     Sec.  57.761.  INTERNAL AUDITOR  (a)  Requires the president
     to appoint an internal auditor for the corporation.  Requires
     the appointment to be approved by the board of directors of
     the corporation.
     
     (b)  Makes conforming changes.
       
       (c)  Requires the board or a board committee, as designated
       by the board, rather than the board's executive committee,
       to meet with the internal auditor on a regular basis.
       
       (d)  Makes no changes.
     SECTION 4.     Effective date:  September 1, 1995.

SECTION 5. Emergency clause.