Tenn. Code Ann. § 49-4-404

(1) TSAC is given full power and authority to use the due processes of law to collect any and all loans made pursuant to parts 2-7 of this chapter, as the loan or loans may become due.

(2) The attorney general and reporter shall assume the legal responsibility for enforcement of the collection of any such indebtedness against the individual. The attorney general and reporter may appoint a private attorney to bring a collection action or may engage the services of a commercial collection agency. Compensation for the appointment or service shall be on a contingency fee or percentage of recovery basis at no direct cost to the state.