The Tennessee Educational Loan Corporation and the Tennessee Student Assistance Agency have merged into a single state agency, the Tennessee Student Assistance Corporation, for the purpose of administering the state's student assistance programs. These are: (1) the Tuition Grant Program; (2) Guaranteed Student Loan Program; (3) Medical Scholarship-Loan Program; and (4) Graduate Nursing Scholarship Loan Program. Through its student assistance programs, the state has made it possible for more than nine thousand students to enroll in postsecondary educational institutions for the 1974-75 school year. In direct grants, more than $4 million has been advanced to students. Another $4 million in student loans have been insured making it possible for more than three thousand students to obtain loans through commercial lenders in the state. This document reviews the activities of the several programs during the first ruling on the Tennessee Tuition Grant Program. A suit was filed by the Americans United for the Separation of Church and State against the State of Tennessee. The court ruled that the statute creating the Tennessee Tuition Grant Program is unconstitutional, since it violates the Established Clause of the First Amendments. The document also discusses the effect of that ruling on the Tuition Grant Program. (Author/KE)