(a) The Tennessee student assistance corporation shall be governed by a board of directors consisting of the governor, the commissioner of education, the state treasurer, the comptroller of the treasury, the commissioner of finance and administration, the director of the higher education commission, the president of the Tennessee Independent Colleges and Universities, the president of the Tennessee Proprietary Business School Association, the chair of the Tennessee Independent Colleges and Universities, the president of the University of Tennessee, the chancellor of the board of regents, the president of the Tennessee Association of Student Financial Aid Administrators, a representative of a commercial lender, two (2) students enrolled in an institution of higher education in Tennessee, and three (3) private citizens involved in the field of education, but not employed by or professionally affiliated with any institution of higher education in the state.

(b)

(1) The three (3) private members of the board shall be appointed by the governor for three-year terms and shall be eligible for reappointment.

(2) All appointments of citizen members made subsequent to the expiration of the initial terms shall be for three (3) years. In appointing citizen members to the board, the governor shall strive to ensure that at least one (1) private citizen serving on the board is sixty (60) years of age or older and that at least one (1) private citizen serving on the board is a member of a racial minority.

(3) Vacancies created by the death or resignation of the student member or any of the three (3) private members of the board shall be filled by gubernatorial appointment for the remainder of the unexpired term.

(c)

(1) The student members shall be enrolled full-time in public or private institutions of higher education in Tennessee.

(2) The student member shall be or have been a recipient of financial aid from one (1) or more of the programs administered by the Tennessee student assistance corporation.

(3) One (1) student member shall be selected by the governor each year. The governor may select from candidates produced by the following procedures:

(A) On or before September 1 of each year, the Tennessee Intercollegiate State Legislature Foundation shall notify its members, the presidents of eligible colleges or universities, and the student government organizations of all institutions with eligible students, that students may apply to run in a general election at the Tennessee Intercollegiate State Legislature annual general assembly. The candidates shall alternate between public and private institutions each year. The Tennessee Intercollegiate State Legislature shall conduct the election pursuant to its constitution and rules of order and shall be responsible for funding the election;

(B) On April 1, the Tennessee Intercollegiate State Legislature shall present the governor with the names of the three (3) candidates with the most votes from the general election. The governor may select one (1) student from the three (3) candidates. The presidents of the eligible colleges and universities shall be notified by the Tennessee Intercollegiate State Legislature of the outcome of the election and subsequent appointment.

(4) The governor shall appoint the selected student to the board for a term of two (2) years. The student shall be a nonvoting member for the fiscal year beginning July 1 immediately following the student's appointment. After the student has served on the board as a nonvoting member for one (1) year, the student shall serve the second year of the student's term as a voting member.

(5) If a vacancy is created by the death or resignation of the voting student member, the nonvoting student member shall fill the vacancy. If a vacancy is created by the death, resignation, or promotion of the nonvoting member, the vacancy shall be filled by gubernatorial appointment for the remainder of the unexpired term.

(6) Notwithstanding the provisions of subdivisions (c)(2) and (3) to the contrary, to establish two-year staggered terms for the student members, the governor may select two (2) students from the six (6) candidates. Three (3) candidates shall be from private institutions and three (3) candidates shall be from public institutions. The candidates shall be chosen according to the procedures of subdivision (c)(2). The governor shall appoint one (1) student from a private institution as a voting member to a one-year term beginning on July 1, 2012. The governor shall appoint one (1) student from a public institution to a two-year term beginning on July 1, 2012, according to subdivision (c)(3).

(d)

(1) The representative of a commercial lender shall be appointed by the governor for a three-year term and shall be eligible for reappointment.

(2) A vacancy created by death or resignation of the representative of a commercial lender shall be filled by gubernatorial appointment for the remainder of the unexpired term.

(e) The governor, the commissioner of education, the state treasurer, the comptroller of the treasury, the commissioner of finance and administration, the director of the higher education commission, the president of the University of Tennessee, the president of the Tennessee Proprietary Business School Association, the president of the Tennessee Association of Student Financial Aid Administrators, the chair of the Tennessee Independent Colleges and Universities and the chancellor of the board of regents are authorized to designate an alternate representative who shall have full authority to vote and participate in all other activities of the board under parts 2-7 of this chapter. The designations must be made in writing to the chair of the board of directors, with copies filed with the executive director and with the secretary of state. The board of directors has the authority to issue regulations implementing provisions concerning designations in such a manner as to provide for maximum continuity of representation.

(f) The board shall elect its own chair.

(g) All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.

(h) The executive director of the Tennessee higher education commission, appointed pursuant to § 49-7-205, shall serve as the executive director of the Tennessee student assistance corporation and shall have the responsibility, including employment of other personnel, to carry out the purposes of parts 2-7 of this chapter.

(i) The Tennessee student assistance corporation is authorized and empowered to expend for the necessary administration of parts 2-7 of this chapter any funds appropriated, received or allocated for the purposes of parts 2-7 of this chapter.