No individual member of the Tennessee student assistance corporation, nor its agent or agents, shall be held answerable to any charge or action involving the guaranteeing of student or parent loans under parts 2-7 of this chapter, or for any charge or action resulting from default on the part of any person in repaying a loan guaranteed under parts 2-7 of this chapter. Each bank or other eligible lender that makes a loan or loans to a student or parent under parts 2-7 of this chapter shall in each case exhaust all reasonable means of collecting the loan or loans before requesting repayment by the corporation.
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