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                                                                    Exhibit 10.1

                               SERVICING AGREEMENT

     THIS SERVICING AGREEMENT (this "Agreement") is entered into as of May 1,
2002, by and among Grad Partners, Inc., a Delaware corporation (the "Servicer"),
Education Funding Capital Trust-I, a Delaware business trust (the "Issuer") and
Fifth Third Bank as Eligible Lender Trustee on behalf of the Issuer (the
"Eligible Lender Trustee").

                                   WITNESSETH:

     WHEREAS, the Issuer wishes to retain the Servicer to service the Financed
Student Loans and the Servicer wishes to undertake the obligation to service or
cause to be serviced the Financed Student Loans under the terms hereinafter set
forth; and

     WHEREAS, pursuant to this Agreement the Servicer will agree to provide, or
cause there to be provided, loan servicing services for the Financed Student
Loans;

     NOW THEREFORE, in consideration of the premises and mutual covenants
contained herein, the Issuer and the Servicer agree as follows:

Section 1. Definitions.

     Capitalized terms which are not otherwise defined in this Agreement shall
have the meanings ascribed thereto in Appendix A to that certain Indenture of
Trust dated as of May   , 2002 among the Issuer, Fifth Third Bank, as Indenture
                      --
Trustee, and Fifth Third Bank, as trust eligible lender trustee (the
"Indenture").

Section 2. Servicing Requirement and Engagement of Servicer.

     The Issuer hereby authorizes and appoints the Servicer to act as its agent
for the limited purpose of servicing the Financed Student Loans. The
authorization granted by this Agreement includes, but is not limited to,
correspondence and communication with any Guaranty Agency or the U.S. Department
of Education (the "Department") regarding the Financed Student Loans, the
assignment of claims to any guarantor or insurer of the Financed Student Loans,
communication with borrowers and any other communication, correspondence,
signature or other act required to service the Financed Student Loans in
accordance with requirements of the Act or regulations promulgated by any
Guaranty Agency.

     The Issuer hereby authorizes the Servicer to enter into subservicing
contracts with an entity acting as a subservicer pursuant to such contracts,
such entity is herein referred to as a "Subservicer", to provide the services
required of the Servicer hereunder and to meet any obligations of the Issuer
hereunder, so long as such contracts are permitted by the Indenture. In the
event Servicer commences servicing of any Financed Student Loans that were
previously serviced by a Subservicer, the Servicer shall give prompt written
notice of such event to each Rating Agency.

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Section 3. Servicer Compensation.

     a.   Subject to Section 4.07 of the Indenture, as compensation for its
          services hereunder, the Servicer shall receive a fee (the "Servicing
          Fee") equal to 0.10% of the average monthly outstanding principal
          balance of the Financed Student Loans. The Servicer shall also receive
          administrative fees, expenses and similar charges payable to
          Subservicers in respect of their services under the Subservicing
          Agreements.

     b.   The Servicer shall submit an invoice monthly to the Issuer for the
          Servicing Fee and the fees and expenses payable to Subservicers, and
          the Issuer shall remit payment therefor as shown on that invoice, but
          only to the extent of moneys available for payment therefor in the
          Operating Fund.

     c.   Payment is due within thirty (30) days after receipt of the billing
          package. The billing package shall consist of an invoice and
          supporting documentation.

     d.   The Servicer acknowledges that the Issuer shall be entitled to receive
          all payments of principal, interest and late charges received with
          respect to the Financed Student Loans and that the Servicer shall have
          no right to retain such amounts as payment of any fees due to the
          Servicer from the Issuer under the terms of this Agreement. The Issuer
          hereby authorizes the Servicer to assess, collect and retain any
          charges which the Issuer is permitted by law or regulation to assess
          with respect to not sufficient funds ("NSF") processing or other
          collection costs.

Section 4. Financed Student Loan Servicing.

     Servicer covenants and agrees to service each Financed Student Loan in
compliance with all requirements of the Act, each Guaranty Agreement and all
other laws and regulations applicable to its activities hereunder and in
accordance with the terms and conditions of this Agreement, and to perform all
services and duties customary to the servicing of Student Loans including all
collection practices. Without limiting the foregoing, in fulfillment of its
obligations hereunder, Servicer shall do the following.

     a.   Maintain a complete and separately identified record for the Financed
          Student Loans of each borrower, inclusive of all documentation and
          correspondence related to the Financed Student Loans.

     b.   Take such actions as are required under the Act with respect to
          delinquencies.

     c.   Perform the actions necessary to maintain the Guarantee and/or
          Insurance on each Financed Student Loan originated under the Act at
          all times.

     d.   Handle all required borrower contact functions and meet all servicing
          "due diligence" requirements, as that term is used under the Act and
          implementing regulations. Such functions include, for example, skip
          tracing, contacting delinquent borrowers, handling borrower requests
          for extensions or deferments, and preparing and processing claims,

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          including death, disability, default, closed school, false
          certification and bankruptcy claims.

     e.   Prepare and maintain accounting records with respect to the Financed
          Student Loans; process refunds and other adjustments; process address
          changes and maintain address records.

     f.   Collect all payments with respect to Financed Student Loans and
          deliver all such payments to the Indenture Trustee, including without
          limitation guarantee payments, with respect to the Financed Student
          Loans. Servicer shall remit collected funds by automated clearing
          house within three (3) business days of receipt to the Indenture
          Trustee. Servicer shall prepare a "Lender's Request for Payment of
          Interest and Special Allowance" to be used in billing the Department
          for interest and the special allowance for all eligible loans on a
          quarterly basis. Servicer agrees to submit the billing to the
          Department within 30 days following the last day of each quarter
          (March 31, June 30, September 30, December 31). In the event that
          Servicer does not submit the billing to the Department within 30
          calendar days following the last day of each quarter, and such failure
          is not attributable to action or inaction by the Issuer or the
          Department, the Issuer shall be entitled to payment by Servicer of
          penalty interest. Such penalty interest shall be calculated on the
          actual amount of interest subsidies and special allowance payments
          that the Issuer is entitled to receive from the Department on the
          Student Loans covered by the billing report and for the time period
          between such 30th day through the date that said billing report is
          filed with the Department by Servicer using the LIBOR rate, as quoted
          in the Wall Street Journal, for the period closest in term to the
          actual number of days covered by penalty period.

     g.   Retain summary records of contacts, follow-ups and collections
          efforts, and records of written correspondence relating to the
          Financed Student Loans of each borrower sufficient to ensure claim
          payment.

     h.   Process adjustments including NSF checks, status changes,
          forbearances, deferments and Financed Student Loans paid in full.

     i.   Complete all forms and reports required by the U.S. Department of
          Education or any Guaranty Agency.

     j.   Perform all of the Eligible Lender Trustee's and Issuer's obligations
          as holder of Student Loans as required by the Act and all regulations
          issued by the U.S. Department of Education or by the guarantor to
          implement the Act. Servicer shall have full power to sign and act on
          the Issuer's and the Eligible Lender Trustee's behalf as the Issuer's
          agent in all transactions with borrowers serviced hereunder. Each of
          Issuer and the Eligible Lender Trustee do hereby authorize,
          constitute, and appoint Servicer on its behalf and as its attorney in
          fact, to endorse those promissory notes for which a claim has been
          filed with a guarantor. Servicer will carry out its responsibilities
          hereunder in a diligent and lawful manner.

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     k.   At all times identify the Issuer and the Eligible Lender Trustee as
          the owners of the Financed Student Loans and identify the Indenture
          Trustee as a party which maintains a security interest in the Financed
          Student Loans.

     l.   Capture and retain a copy of each promissory note and each disclosure
          statement on its image system and shall store a backup image copy in a
          remote facility. Servicer shall hold the original Student Loan
          documents, including the original promissory note, a copy of the
          Student Loan application and the disclosure statement for safekeeping.

     m.   Provide reports to the Issuer and Indenture Trustee of all monetary
          transactions as well as periodic summary and account information as
          required in the "Issuer Service Manual" including such items as:

          (1)  Detailed periodic reports to support all cash transactions
               processed;

          (2)  Monthly portfolio summary reports and supporting data listings;

          (3)  A monthly listing of delinquent accounts; and

          (4)  A quarterly report of billings to the Department for interest and
               special allowances.

     n.   Ensure the timely payment of taxes, accounting fees, outside auditor
          fees, data processing costs and other costs incurred in servicing the
          Financed Student Loans.

     o.   Obtain and maintain or cause each Subservicer to obtain and maintain
          in force a fidelity bond in an amount of at least $1,000,000 upon all
          personnel of the Servicer or Subservicer, as applicable, insuring
          against any loss or damage which the Issuer, the Servicer or
          Subservicer, as applicable, might suffer as a consequence of any
          fraudulent or dishonest act of such personnel.

     p.   Obtain and maintain or cause to be obtained and maintained in force
          errors and omissions insurance coverage in an amount equal to at least
          $2,000,000 for all its customers.

     q.   Respond to all borrower inquiries in a prompt, courteous and thorough
          manner.

     r.   Establish and maintain a method for charging and collecting late
          payment fees in accordance with provisions of the Act and all other
          applicable laws and regulations.

     r.   Act as custodian and bailee with respect to all original documents and
          hold them subject to the lien of the Indenture in favor of the
          Indenture Trustee and pursuant to a bailment in a form satisfactory to
          Servicer, the Issuer and the Eligible Lender Trustee.

     s.   If any Financed Student Loan has lost its guarantee and/or insurance
          due to the actions of any prior issuer, servicer or holder of the
          Financed Student Loan, at the written request of the Issuer, use its
          best efforts to reinstate such guarantee or insurance; provided,
          however,

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          that Servicer makes no representation that such reinstatement will
          occur. Such services shall be provided at the cost agreed upon by the
          Issuer and Servicer.

     t.   If requested by the Issuer, remit monthly rebate fees to the
          Department with respect to the Financed Student Loans. Upon receipt of
          satisfactory documentation, the Issuer shall cause the Indenture to
          promptly wire transfer to Servicer or its designee, from amounts held
          under the Indenture, the amount of funds required to pay such fees.
          Servicer shall provide, or cause to be provided to the Issuer, on a
          monthly basis, information needed to determine the monthly rebate
          fees.

     u.   Accrue and capitalize interest on those Student Loans not eligible for
          interest subsidy.

     v.   Verify the current status of all borrowers not less often than
          annually through direct contact with each borrower to ensure correct
          account information. Servicer shall also seek to verify the borrower's
          status by direct or indirect contact with educational institutions.

     w.   When a Student Loan becomes due for repayment, prepare a payment
          schedule and disclosure statement and mail it to the borrower for
          signature(s). Prior to the first payment due date, repayment coupons
          will be prepared and sent to the borrowers.

     x.   Post to the borrower's account all payments of principal, interest and
          other charges.

     y.   Automatically credit the Issuer's account whenever a borrower overpays
          an account by less than $5.00, and the Issuer, at its discretion, can
          reimburse the borrower. When the overpayment is more than $5.00,
          Servicer shall remit the overpayment directly to the borrower. When a
          borrower's balance owing is less than $50.00, Servicer may, at its
          discretion, write-off the balance.

     z.   Prepare and submit all papers and documents necessary to strictly
          follow reimbursement procedures specified in the Common Manual:
          Unified Student Loan Policy, as amended from time to time, upon
          default of borrower and further agrees to promptly remit proceeds to
          Issuer upon receipt from the Guaranty Agency.

     aa.  Provide immediate notice to the Issuer of any proceeding or action
          filed, asserted or threatened against Servicer that, if decided
          unfavorably to Servicer, would adversely impact Servicer's status as
          an eligible "third-party servicer".

Section 5. Due Diligence.

     The Servicer covenants and agrees that in discharging its obligations
hereunder it shall:

     a.   Exercise due diligence in the servicing and collection of all Financed
          Student Loans as the term "due diligence" is used in the Act and
          further defined in the regulations of the applicable Guaranty Agency.

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     b.   Exercise reasonable care and diligence in the administration and
          collection of all Financed Student Loans utilizing collection
          practices in accordance with applicable federal and state collection
          practices, laws and regulations promulgated thereunder.

     c.   Administer, collect and service the Financed Student Loans in a
          competent, diligent and orderly fashion, and, with respect to Financed
          Student Loans originated under the Act, in accordance with the
          requirements of the Act.

Section 6. Right of Inspection; Audit.

The Issuer, the Indenture Trustee, the Eligible Lender Trustee or any
governmental agency having jurisdiction over any of the same, or their
designated representatives, may at any time upon reasonable prior notice and
during normal business hours examine and audit at the sole expense of the
Issuer, the records which the Servicer or Subservicer maintain on the Financed
Student Loan being serviced, provided, however, that such activities shall not
unreasonably disrupt the Servicer's normal business operation.

Section 7. Compliance Report.

     The Servicer agrees that it shall permit, not more than once per year, the
Issuer, the Indenture Trustee or its designee to conduct or have conducted a
procedural audit regarding the Servicer's or Subservicer's compliance with the
requirements of the Act or the terms of this Agreement. Such audits shall be at
the expense of the Issuer.

Section 8. Representations, Warranties, and Covenants of Servicer.

     The Servicer makes the following representations, warranties and covenants
to the Issuer on the date of this Agreement. The Servicer shall be deemed to
have repeated the representations and warranties in clauses (a), (b), (f), (g),
(h), (i) and (l) on each date on which a new Series of Notes is issued under the
Indenture.

     a.   The Servicer (i) is duly incorporated, validly existing, and in good
          standing under the laws of the jurisdiction in which it is
          incorporated; (ii) is duly qualified to transact business and is in
          good standing as a foreign corporation in each jurisdiction where the
          nature and extent of its business and properties require due
          qualification and good standing; (iii) possesses all requisite
          authority, permits and power to conduct its business as contemplated
          by this Agreement including, without limitation, eligibility as a
          third-party servicer under the Act; and (iv) is in compliance with all
          applicable laws and regulations.

     b.   The execution and delivery by the Servicer of this Agreement and the
          performance of its obligations hereunder (i) are within its corporate
          power, (ii) have been duly authorized by all necessary corporate
          action, (iii) require no action by or filing with any governmental
          agency, except for any action or filing that has been taken or made on
          or before the date of this Agreement; and (iv) do not violate any
          provision of its certificate of incorporation or bylaws.

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     c.   The Servicer will satisfy all of its obligations set forth in this
          Agreement, maintain in effect all qualifications required in order to
          service the Financed Student Loans and comply in all material respects
          with all requirements of law if a failure to comply would have a
          materially adverse effect on its ability to service the Financed
          Student Loans.

     d.   The Servicer will not permit any rescission or cancellation of a
          Financed Student Loan except as ordered by a court or other government
          authority or as consented to by the Eligible Lender Trustee and the
          Indenture Trustee, except that it may write off any delinquent
          Financed Student Loan if the remaining balance of the borrower's
          account is less than $50.

     e.   The Servicer will not reschedule, revise, defer or otherwise
          compromise payments due on any Financed Student Loan except during any
          applicable interest only, deferral or forbearance periods or otherwise
          in accordance with all applicable standards and requirements for
          servicing of the Financed Student Loans.

     f.   All Servicer financial statements delivered to the Issuer were
          prepared according to U.S. generally accepted accounting principles
          ("GAAP") consistently applied and present fairly, in all material
          respects, the financial condition, results of operations and cash
          flows of the Servicer as of, and for the portion of the fiscal year
          ending on their date or dates (subject, in the case of financial
          statements other than annual ones, only to normal year-end
          adjustments).

     g.   No event which could cause a material adverse effect on the Servicer's
          financial condition has occurred, and if such event shall occur, the
          Servicer shall promptly give the Issuer notice thereof.

     h.   The Servicer is not subject to, or aware of the threat of, any
          litigation that is reasonably likely to be determined adversely to it
          and that, if so adversely determined, would have a material adverse
          effect on its financial condition or its ability to meet its
          obligations under this Agreement and no outstanding or unpaid
          judgments against the Servicer exist, and if such event shall occur,
          the Servicer shall promptly give the Issuer notice thereof.

     i.   The Servicer has no knowledge of any basis upon which to believe that
          each Financed Student Loan (i) is not in compliance in all material
          respects with all laws and rules and regulations with respect to any
          Guarantee thereof, and (ii) does not conform to the applicable
          requirements of eligibility for such Guarantee.

     j.   The Servicer further agrees to maintain its servicing system so that
          it will continue to provide all services required under this Agreement
          to the extent such services are not provided by one or more eligible
          third-party subservicers under the Act with adequate systems to
          perform such services.

     k.   Until all Financed Student Loans serviced hereunder have been repaid
          in full, or paid as a claim by a Guaranty Agency, or transferred to
          another servicer, the Servicer agrees as follows:

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          (i)  The Servicer shall cause to be furnished to the Issuer its
               financial statements as the Issuer may reasonably request,
               including quarterly unaudited financial statements within thirty
               (30) days after the conclusion of each fiscal quarter, and annual
               financial statements within ninety (90) days after the end of
               each fiscal year audited by nationally recognized independent
               certified public accountants and such other information with
               respect to its business affairs, assets, and liabilities as the
               Issuer may reasonably request.

          (ii) The Servicer shall maintain books, records and accounts necessary
               to prepare financial statements according to GAAP and maintain
               adequate internal financial controls.

          (iii) The Servicer shall maintain all licenses, permits, and
               franchises necessary for its business.

     l.   This Agreement will, upon execution and delivery by all parties
          thereto, constitute a legal and binding obligation of the Servicer,
          enforceable against the Servicer according to its terms.

     Upon the discovery of a breach of certain covenants that have a materially
adverse effect on the Financed Student Loans, the Servicer will be obligated to
purchase or substitute the adversely affected Financed Student Loan unless the
breach is cured within the time period prescribed in Section 10 hereof. Any
breach that relates to compliance with the requirements of the Act or the
applicable Guaranty Agency but that does not affect that Guaranty Agency's
obligation to guarantee payment of a Financed Student Loan will not be
considered to have a material adverse effect.

     The purchase or substitution and reimbursement obligations of the Servicer
will constitute the sole remedy available to the Issuer for any uncured breach.
The Servicer's purchase or substitution and reimbursement obligations are
contractual obligations that the Issuer may enforce, but the breach of these
obligations will not constitute an event of default under the Indenture.

Section 9. Representations and Warranties of Issuer.

     The Issuer represents and warrants to the Servicer on the date of this
Agreement:

     a.   The Issuer (i) is duly formed, validly existing, and in good standing
          under the laws of the jurisdiction in which it is formed; (ii) is duly
          qualified to transact business as a Delaware business trust; and (iii)
          possesses all requisite authority, permits and power to conduct its
          business as contemplated by this Agreement.

     b.   The execution and delivery by the Issuer of this Agreement and the
          performance of its obligations hereunder (i) are within its
          organizational power; (ii) have been duly authorized by all necessary
          action; and (iii) require no action by or filing with any governmental
          agency, except for any action or filing that has been taken or made on
          or before the date of this Agreement.

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     c.   This Agreement will, upon execution and delivery by all parties
          thereto, constitute a legal and binding obligation of the Issuer,
          enforceable against the Issuer according to its terms.

     d.   The Issuer is not subject to, or aware of the threat of, any
          litigation that is reasonably likely to be determined adversely to it
          and that, if so adversely determined, would have a material adverse
          effect on its financial condition relevant to this Agreement.

Section 10. Servicer Default.

     Each of the following constitutes a "Servicer Default" hereunder:

     a.   any failure by the Servicer to deliver to the Indenture Trustee any
          payment required by this Agreement, which failure continues unremedied
          for three (3) business days after written notice of such failure is
          received by the Servicer from the Eligible Lender Trustee, the
          Indenture Trustee or the Administrator or after discovery of such
          failure by an officer of the Servicer; or

     b.   any breach of a representation or warranty of the Servicer contained
          in Section 8 of this Agreement or failure by the Servicer duly to
          observe or to perform in any material respect any term, covenant or
          agreement set forth in this Agreement or in any other Basic Document
          to which the Servicer is a party, which breach or failure shall (i)
          materially and adversely affect the rights of Noteholders or any
          Counterparties and (ii) continue unremedied for a period of sixty (60)
          days after the date of discovery of such failure by an officer of the
          Servicer or on which written notice of such breach or failure,
          requiring the same to be remedied, shall have been given (A) to the
          Servicer, by the Indenture Trustee, the Eligible Lender Trustee or the
          Administrator, or (B) to the Servicer, the Indenture Trustee or the
          Eligible Lender Trustee by Noteholders representing not less than 25%
          of the Outstanding Amount of the Notes; or

     c.   the Servicer shall have commenced a voluntary case or other proceeding
          seeking liquidation, reorganization, or other relief with respect to
          itself or its debts under any bankruptcy, insolvency, or other similar
          law now or hereafter in effect or seeking the appointment of a
          trustee, receiver, liquidator, custodian, or other similar official of
          it or any substantial part of its property, or shall have made a
          general assignment for the benefit of creditors, or shall have
          declared a moratorium with respect to its debts or shall have failed
          generally to pay its debts as they become due, or shall have taken any
          action to authorize any of the foregoing; or

     d.   an involuntary case or other proceeding shall have been commenced
          against the Servicer seeking liquidation, reorganization, or other
          relief with respect to it or its debts under any bankruptcy,
          insolvency or other similar law now or hereafter in effect or seeking
          the appointment of a trustee, receiver, liquidator, custodian, or
          other similar official of it or any substantial part of its property,
          provided such action or proceeding is not dismissed within 60 days; or

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     e.   any failure by the Servicer to comply with any requirements under the
          Act resulting in a loss of its eligibility as a third-party servicer.

Section 11. Rights Upon Servicer Default.

     In each and every case, so long as the Servicer Default shall not have been
remedied, either the Indenture Trustee, or the holders of Notes evidencing not
less than 25% of the Outstanding Amount of the Notes, by notice then given in
writing to the Servicer (and to the Indenture Trustee and the Issuer if given by
the Noteholders) may terminate all the rights and obligations (other than the
rights and obligations set forth in Section 19 hereof) of the Servicer under
this Agreement. Only the Indenture Trustee or the Noteholders, and not the
Issuer, will have the ability to remove the Servicer if a Servicer Default
occurs while the Notes are Outstanding.

     As of the effective date of termination of the Servicer, all authority and
power of the Servicer under this Agreement, whether with respect to the Notes or
the Financed Student Loans or otherwise, shall, without further action, pass to
and be vested in the Indenture Trustee or such successor servicer as may be
appointed, and all files shall be disposed of pursuant to the procedures
prescribed by Section 14 hereof. The successor servicer will succeed to all the
responsibilities and duties of the Servicer under this Agreement and will be
entitled to similar compensation arrangements.

     The Servicer shall cooperate with the successor servicer, the Indenture
Trustee and the Issuer in effecting the termination of the responsibilities and
rights of the Servicer under this Agreement, including the transfer to the
successor servicer for administration by it of all cash amounts that shall at
the time be held by the Servicer for deposit, or shall thereafter be received by
it with respect to a Financed Student Loan. All reasonable costs and expenses
(including attorneys' fees) incurred in connection with transferring the
Financed Student Loan files to the successor servicer and amending this
Agreement and any other Basic Documents to reflect such succession of servicer
pursuant to this Section 11 shall be paid by the Servicer (other than the
Indenture Trustee acting as the servicer under this Section 11) upon
presentation of reasonable documentation of such costs and expenses. Upon
receipt of notice of the occurrence of a Servicer Default, the Issuer shall give
notice thereof to the Rating Agencies.

     If the Indenture Trustee is unwilling or unable to act, it may appoint, or
petition a court for the appointment of, a successor whose regular business
includes the servicing of Student Loans; provided, however, the Indenture
Trustee shall continue to act as Servicer until a successor has been so
appointed. If, however, a bankruptcy trustee or similar official has been
appointed for the Servicer, and no Servicer Default other than that appointment
has occurred, the trustee may have the power to prevent the Indenture Trustee or
the Noteholders from effecting the transfer.

Section 12. Waiver of Past Servicer Defaults.

     The Noteholders evidencing a majority of the Outstanding Amount of the
Notes, in the case of any Servicer Default which does not adversely affect the
Indenture Trustee or the Noteholders, may, on behalf of all Noteholders, waive
in writing any default by the Servicer in the performance of its obligations
hereunder and any consequences thereof, except a default in making any required
deposits to or payments from any of the Trust Accounts (or giving instructions
regarding the same) in accordance with this Agreement. Upon any such waiver of a
past default, such default shall cease to exist, and any Servicer

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Default arising therefrom shall be deemed to have been remedied for every
purpose of this Agreement. No such waiver shall extend to any subsequent or
other default or impair any right consequent thereto.

     The Issuer may designate another servicer with respect to its student
loans. Any servicer, other than Grad Partners, Inc., may be appointed, provided
that a Rating Confirmation has been received with respect thereto.

Section 13. Termination.

     This Agreement will terminate upon the occurrence of the earlier of (i) the
termination of the Indenture; (ii) early termination pursuant to Section 11
hereof; and (iii) payment in full of all of the Financed Student Loans being
serviced hereunder.

     The Servicer may not resign from its obligations and duties as Servicer
hereunder, except upon determination that the Servicer's performance of its
duties is no longer permissible under applicable law. No resignation will become
effective until the Indenture Trustee or a successor servicer has assumed the
Servicer's servicing obligations and duties under this Agreement.

     In the event of termination of this Agreement, the Issuer shall remain
liable for all fees due and payable hereunder. Termination shall be made without
prejudice to any other rights or remedies either party may have at law or in
equity. The obligations of the Servicer under Section 4 hereof, and the
representations and warranties in Section 8 shall survive any termination of
this Agreement and shall remain in effect for all Financed Student Loans while
such Financed Student Loans are serviced by the Servicer. The rights and
obligations of the Servicer contained in Section 19 hereof shall survive
termination of this Agreement. In the event that servicing on any Financed
Student Loan is transferred to a successor servicer, such successor servicer
shall be required by the Issuer to engage in reasonable good faith efforts to
obtain payment on any claim initially rejected by a guarantor for payment
including, without limitation, involving the Servicer in such effort, where the
reason for claim denial relates to the period during which the Servicer serviced
such Financed Student Loan hereunder. However, if the cause for claim denial is
reasonably attributable to the Servicer actions or inactions, the Servicer shall
be responsible therefore. Servicer acknowledges that Issuer will assign this
Agreement to the Indenture Trustee on behalf of the Noteholders and that the
Indenture Trustee will be entitled to enforce this Agreement against Servicer.

Section 14. Disposition of Files on Termination.

     Upon termination of this Agreement, all files (physical and electronic)
held by the Servicer with respect to Financed Student Loans shall be promptly
transferred to the Issuer or its designee in such form as the Issuer reasonably
requests. The Issuer shall be responsible for payment of reasonable expenses
related to the transfer of the records unless the Issuer is removing the
Financed Student Loans because of a breach by the Servicer. In such instance,
the Servicer shall bear the cost of deconverting and transferring the Financed
Student Loan documentation.

                                       11

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Section 15. Independent Contractor.

     The Servicer is an independent contractor and is not, and shall not hold
itself out to be, the agent of the Issuer except for the limited specific
purposes set forth in this Agreement.

Section 16. Correspondence; Disclosure.

     The parties hereto acknowledge and agree that the Servicer will handle all
communication with borrowers necessary to provide its services hereunder. Data
regarding Financed Student Loans shall be disclosed only to the Issuer, the
Indenture Trustee, the Administrator or the respective borrower, unless
otherwise required by law or certain financing covenants.

Section 17. Cooperation.

     Each party covenants and agrees to cooperate fully with the other to
facilitate the transactions contemplated by this Agreement.

Section 18. Amendments.

     This Agreement may be amended, supplemented or modified only by written
instrument duly executed by the Issuer and the Servicer with the consent of the
Indenture Trustee. So long as any Notes remain Outstanding under the Indenture,
a Rating Confirmation must be obtained with respect to any such amendment,
supplement or modification.

Section 19. Indemnification and Liability

     a.   Neither the Servicer nor any of its directors, officers, employees or
          agents will be under any liability to the Issuer or the Noteholders
          for taking any action or for refraining from taking any action
          pursuant to this Servicing Agreement, or for errors in judgment;
          provided, however, that neither the Servicer nor any person will be
          protected against any liability that would otherwise be imposed by
          reason of willful misfeasance, bad faith or negligence in the
          performance of the Servicer's duties hereunder or by reason of
          reckless disregard of its obligations and duties hereunder.

     b.   The Servicer is under no obligation to appear in, prosecute, or defend
          any legal action that is not incidental to its servicing
          responsibilities under this Agreement and that, in its opinion, may
          cause it to incur any expense or liability. The Servicer may undertake
          any reasonable action that it deems necessary or desirable in respect
          of this Agreement and the interests of the Noteholders.

     c.   If the Servicer is required to appear in, or is made a defendant in
          any legal action or proceeding commenced by any party other than the
          Issuer with respect to any matter arising hereunder, the Issuer shall
          indemnify and hold the Servicer harmless from all loss, liability, or
          expense (including reasonable attorney's fees) except for any loss,
          liability or expense arising out of or relating to the Servicer's
          willful misconduct or negligence with regard to the performance of
          services hereunder or breach of its obligations hereunder.

                                       12

<PAGE>

          Subject to the limitations set forth in paragraph 19(b) hereof, the
          Servicer shall indemnify and hold the Issuer harmless from all loss,
          liability and expense (including reasonable attorney's fees) arising
          out of or relating to the Servicer's willful misconduct or negligence
          with regard to performance of services hereunder or breach of its
          obligations hereunder, provided that in no event shall the Servicer be
          responsible or liable for any incidental, special or consequential
          damages with respect to any matter whatsoever arising out of this
          Agreement.

     d.   If a Financed Student Loan is denied the Guarantee by the Guaranty
          Agency or the loss of federal interest, special allowance, and/or
          insurance benefits, the Servicer shall have the right to take any
          action not prohibited by law or regulation to reduce its losses, if
          any, hereunder, including but not limited to curing, at its own
          expense, any due diligence or other servicing violation. If any lost
          Guarantee is not reinstated within twelve (12) months of the date the
          Servicer learns of the loss of the Guarantee on a Financed Student
          Loan, the Servicer shall take actions which make the Issuer whole with
          respect to the Financed Student Loan while maintaining the eligibility
          for future reinstatement of the Guarantee; provided, however, the
          Servicer may delay taking such actions by giving written notice to the
          Issuer not less often than each ninety (90) days that the Servicer has
          reason to believe that the Guarantee will be reinstated within time
          frames permitted by regulations. If the Servicer gives notice of such
          delay, the Servicer agrees to pay any accrued interest on the Financed
          Student Loans that may be uninsured. The Issuer agrees to use its best
          efforts to cause the repurchase, at par plus insured interest and
          benefits thereon, of any Financed Student Loan which is cured and is
          reinsured subsequent to its sale by the Issuer pursuant to actions
          taken by the Servicer to make the Issuer whole and if the sale was to
          an Eligible Lender to the extent the Issuer has, or can make
          available, fund therefor.

     e.   The Servicer shall have no responsibility for any error or omission
          (including due diligence violations) which occurred prior to the date
          the Servicer assumed responsibility for servicing the Financed Student
          Loan, nor shall the Servicer be responsible for losses, damages or
          expenses arising from any change in law or regulation which
          retroactively imposes additional requirements for documentation or
          servicing actions, provided that the Servicer has made best efforts to
          comply with retroactive additional requirements.

Section 20. Merger or Consolidation of, or Assumption of the Obligations of,
            Servicer

     Any entity into which the Servicer may be merged or consolidated, or any
entity which may result from any merger or consolidation to which the Servicer
shall be a party or any entity succeeding to the business of the Servicer, shall
be the successor to the Servicer without the execution or filing of any document
or any further act by any of the parties to this Agreement; provided, however,
that the Servicer hereby covenants that it will not consummate any of the
foregoing transactions except upon satisfaction of the following: (i) the
surviving servicer, if other than Grad Partners, Inc., executes an agreement of
assumption to perform every obligation of the Servicer under this Agreement,
(ii) immediately after giving effect to such transaction, no representation or
warranty made hereunder shall have been breached and no Servicer Default shall
have occurred and be continuing, and (iii) such consolidation, merger or
succession and such agreement of assumption comply with all the conditions
precedent, if any, provided for in this Agreement.

                                       13

<PAGE>

Section 21. Confidentiality

     The contents of this Agreement, together with all supporting documents,
exhibits, schedules, and any amendments thereto, which form the basis of the
business relationship between the Issuer and the Servicer, insofar as the same
relate to the fees charged by the Servicer, shall be held in strict confidence
by both parties and shall not be disclosed or otherwise discussed with any third
party (unless required by law or regulation), except outside counsel or
independent accountants, or in connection with the offer and sale of securities
issued or to be issued under the Indenture, without the prior written consent of
the other party.

Section 22. Nonpetition Covenant of Servicer

     The Servicer agrees not to, for any reason, institute proceedings for the
Issuer to be adjudicated as bankrupt or insolvent, or consent to the institution
of bankruptcy or insolvency proceedings against the Issuer, or file a petition
seeking or consenting to reorganization or relief under any applicable federal
or state law relating to bankruptcy, or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or other similar
official) of the Issuer or a substantial part of its property.

Section 23. Sale or Transfer of Loans; Limitations

     The Issuer agrees that if any Financed Student Loans are sold under
conditions that result in the Financed Student Loans being transferred to
another servicer, whether immediately or at some future date, the Issuer will
pay or cause to be paid, at the time such Financed Student Loans are
transferred, the deconversion fees charged by such servicer.

Section 24. Miscellaneous.

     a.   Any material written communication received at any time by the Issuer
          with respect to a Financed Student Loan or a borrower shall be
          promptly transmitted by the Issuer to the Servicer. Such
          communications include but are not limited to letters, notices of
          death or disability, adjudication of bankruptcy and like documents,
          and forms requesting deferment of repayment or loan cancellations.

     b.   This Agreement shall be governed by the laws of the State of Ohio.

     c.   All covenants contained herein and the benefits, rights and
          obligations of the parties hereunder, shall be binding upon and inure
          to the benefit of the legal representatives, successors and assigns of
          the parties hereto, including but not limited to, any successor entity
          acquiring or succeeding to the assets of either party.

     d.   This Agreement may be executed in one or more counterparts, each of
          which shall be deemed an original and all of which shall be deemed to
          constitute but one and the same instrument.

     e.   If any provisions of this Agreement shall be held, or deemed to be, or
          shall in fact be inoperative or unenforceable as applied in any
          particular situation, such circumstance shall

                                       14

<PAGE>

          not have the effect of rendering any other provision or provisions
          herein contained invalid, inoperative or unenforceable to any extent
          whatsoever. The invalidity of any one or more phrases, sentences,
          clauses or paragraphs herein contained shall have no effect on the
          remaining portions of this Agreement or any part hereof.

     f.   All notices, requests, demands or other instruments which may or are
          required to be given by either party to the other, shall be in writing
          and each shall be deemed to have been properly given when delivered
          personally on an officer of the party to whom such notice is to be
          given, or upon receipt thereof when mailed postage prepaid by
          registered or certified mail, requesting return receipt, or upon
          confirmed facsimile transmission, addressed as follows:

          If intended for the Issuer:

               Education Funding Capital Trust-I
               c/o Fifth Third Bank
               MD 10AT60
               38 Fountain Square Plaza
               Cincinnati, Ohio 45263
               Attention: Corporate Trust Administration
               Telephone: +1.513.534.3367
               Facsimile: +1.513.534.6785

               with a copy to:

               Wilmington Trust Company
               Rodney Square North
               1100 North Market Street
               Wilmington, Delaware 19890-0001
               Attention: Corporate Trust Administration
               Telephone: +1.203.975.6112
               Facsimile: +1.203.975.6299

          If intended for the Servicer:

               Grad Partners, Inc.
               6 East Fourth Street
               Suite 300
               Cincinnati, Ohio 45202
               Attention: Perry Moore

          If intended for the Eligible Lender Trustee:

               Fifth Third Bank
               MD 10AT60
               38 Fountain Square Plaza

                                       15

<PAGE>

               Cincinnati, Ohio 45263
               Attention:  Corporate Trust Administration
               Telephone:  +1.513.534.3367
               Facsimile:  +1.513.534.6785

          Either party may change the address to which subsequent notices are to
          be sent to it by written notice to the other given as aforesaid, but
          any such notice of change, shall not be effective until the second
          Business Day after it is received.

     g.   This Agreement may not be terminated by any party hereto except in the
          manner and with the effect herein provided.

     h.   When the context of this Agreement so requires or implies, references
          to the Issuer include any applicable trustee.

     i.   If either party cannot fulfill its obligations (other than the payment
          of money), in part or in whole, due to a force or event outside its
          control, such obligations of that party shall be suspended and such
          party shall not be liable to the other party for any failure to
          perform hereunder as a result.

     j.   The parties hereto agree to execute or cause to be executed the
          Limited Power of Attorney attached hereto as Exhibit A.

     k.   The Servicer has and agrees to maintain a disaster recovery plan
          which, in its reasonable opinion, will permit it to continue
          operations without undue interruption in the event of fire, disaster,
          labor disruption, or Act of God.

     l.   Servicer may cause any of its duties or obligations hereunder to be
          performed by a Subservicer to the extent permitted by the Indenture.

     m.   EACH PARTY TO THIS AGREEMENT WAIVES ITS RIGHT TO A JURY TRIAL.

                                       16

<PAGE>

     IN WITNESS WHEREOF, the parties have hereunto set their hands by their duly
authorized officers as of the day and year first above written.

                                    EDUCATION FUNDING CAPITAL TRUST-I, By
                                       FIFTH THIRD BANK, as Co-Owner Trustee


                                    By: /s/ Keith E. Brock
                                        ----------------------------------------
                                    Name: Keith E. Brock
                                    Title: Trust Officer


                                    GRAD PARTNERS, INC., as Servicer


                                    By: /s/ Perry D. Moore
                                        ----------------------------------------
                                    Name: Perry D. Moore
                                    Title: Senior Vice President - Finance


                                    FIFTH THIRD BANK, as Eligible Lender Trustee


                                    By: /s/ Keith E. Brock
                                        ----------------------------------------
                                    Name: Keith E. Brock
                                    Title: Trust Officer

<PAGE>

                                                                       EXHIBIT A

                            LIMITED POWER OF ATTORNEY

                                   ----------

                                   WITNESSETH:

     WHEREAS, Grad Partners, Inc., a Delaware corporation (the "Servicer"), and
Education Funding Capital Trust-I, a Delaware business trust (the "Issuer"), are
parties to the SERVICING AGREEMENT dated as of May   , 2002 (the "Servicing
                                                   --
Agreement"); and

     WHEREAS, pursuant to the Servicing Agreement, the Servicer will perform
substantially all of the obligations and duties with regard to servicing of
certain education loans (the "Financed Student Loans") as provided therein; and

     WHEREAS, in order to carry out its obligations under the Servicing
Agreement with respect to the Financed Student Loans, the Servicer requires the
power to perform certain acts, including but not limited to execution of
promissory notes, assignment of notes to guarantors and filing of responses to
bankruptcy notices, in the name of Fifth Third Bank, as trust eligible lender
trustee (the "Trust Eligible Lender Trustee") for Issuer.

NOW THEREFORE, the Servicer, Issuer and Trust Eligible Lender Trustee agree:

     1. That each of the Issuer and the Trust Eligible Lender Trustee do hereby
make and appoint the Servicer as its true and lawful attorney-in-fact to do all
things necessary to carry out the Servicer's obligations under the Servicing
Agreement with respect to the Financed Student Loans, including but not limited
to the filing of proof of claim with bankruptcy courts. This instrument shall be
construed and interpreted as a limited power of attorney (the "Limited Power of
Attorney") and is not to be construed as granting any powers to the Servicer
other than those necessary to carry out its obligations under the Servicing
Agreement with respect to the Financed Student Loans.

     2. That this Limited Power of Attorney is effective as of May   , 2002, and
                                                                   --
shall remain in force and effect until revoked in writing by the Issuer and
Trust Eligible Lender Trustee or until the Servicing Agreement is terminated.
This instrument shall supplement but not replace the powers previously granted
to the Servicer in the Servicing Agreement.

                                       18

<PAGE>

The undersigned, being duly authorized, has executed this Limited Power of
Attorney.

                                    EDUCATION FUNDING CAPITAL
                                       TRUST-I, by FIFTH THIRD BANK, as
                                       Co-Owner Trustee


                                    By: /s/ Keith E. Brock
                                        ----------------------------------------
                                    Name: Keith E. Brock
                                    Title: Trust Officer


                                    FIFTH THIRD BANK, as Trust Eligible
                                       Lender Trustee


                                    By: /s/ Keith E. Brock
                                        ----------------------------------------
                                    Name: Keith E. Brock
                                    Title: Trust Officer

The undersigned, being duly authorized, accepts the foregoing Limited Power of
Attorney for and on behalf of the Issuer and Trust Eligible Lender Trustee, as
of May   , 2002.
       --

                                    GRAD PARTNERS, INC., as Servicer


                                    By: /s/ Perry D. Moore
                                        ----------------------------------------
                                    Name: Perry D. Moore
                                    Title: Senior Vice President - Finance

<PAGE>

                     Amendment No. 1 to Servicing Agreement

     This Amendment No. 1 to Servicing Agreement (this "Amendment"), dated as of
August 1, 2002, is among Education Lending Services, Inc. (formerly known as
Grad Partners, Inc.), a Delaware corporation (the "Servicer"), Education Funding
Capital Trust-I (the "Trust"), a Delaware business trust, Fifth Third Bank, a
banking corporation organized under the laws of the State of Ohio, acting
hereunder not in its individual capacity, but solely as Indenture Trustee (the
"Indenture Trustee") under the Indenture (defined below), and Fifth Third Bank,
a banking corporation organized under the laws of the State of Ohio, not in its
individual capacity, but solely as Trust Eligible Lender Trustee on behalf of
the Trust (the "Trust Eligible Lender Trustee").

     Capitalized terms used but not defined in this Amendment shall have the
meanings ascribed to such terms in the Servicing Agreement dated as of May 1,
2002 (the "Servicing Agreement") among the Servicer, the Trust and the Trust
Eligible Lender Trustee, or if not defined therein, in Appendix A to that
certain Indenture of Trust dated as of May 1, 2002 (the "Indenture") among the
Trust, the Indenture Trustee, and the Trust Eligible Lender Trustee.

                                   WITNESSETH

     Whereas, the Servicer, the Trust and the Trust Eligible Lender Trustee are
parties to the Servicing Agreement; and

     Whereas, pursuant to Section 18 of the Servicing Agreement, the Trust and
the Servicer desire to amend the Servicing Agreement on the terms and conditions
set forth herein;

     Whereas, for the limited purposes of agreeing to its obligations set forth
in the last sentence of Section 2 of the Servicing Agreement, which obligations
are being added by the adoption of this Amendment, the Indenture Trustee desires
to become party to the Servicing Agreement;

     Now Therefore, in consideration of the foregoing, the parties hereto agree
that the foregoing recitals are incorporated herein by reference and as follows:

     Section 1. The second paragraph of Section 2 of the Servicing Agreement is
hereby amended and restated in its entirety to read as follows:

          The Issuer hereby authorizes the Servicer to enter into subservicing
     contracts with an entity acting as a subservicer pursuant to such
     contracts, such entity is herein referred to as a "Subservicer", to provide
     the services required of the Servicer hereunder and to meet any obligations
     of the Issuer hereunder, so long as such contracts are permitted by the
     Indenture. In the event the Servicer or any Affiliate of the Seller or
     Servicer commences servicing of any Financed Student Loans that were
     previously serviced by a Subservicer, the Servicer shall (i) give prompt
     written notice of such event to each Rating Agency and (ii) cause such
     Subservicer to deliver to the Indenture Trustee the complete and separately
     identified record for each such Financed Student Loan, inclusive of all
     documents

<PAGE>

     and correspondence related to each such Financed Student Loan
     (collectively, the "Student Loan Files"). The Indenture Trustee agrees to
     and shall act as custodian of the Student Loan Files for any Financed
     Student Loans serviced or subserviced by the Servicer or by any Affiliate
     of the Seller or Servicer.

     Section 2. The first sentence of paragraph f. of Section 4 of the Servicing
Agreement is hereby amended and restated in its entirety to read as follows:

     Collect all payments with respect to Financed Student Loans and deliver all
     such payments to the Indenture Trustee for deposit into the Revenue Fund,
     including without limitation guarantee payments, with respect to the
     Financed Student Loans.

     Section 3. All other provisions of the Servicing Agreement are hereby
ratified, approved and confirmed.

   [Remainder of this page left intentionally blank; signature page follows.]

                                        2

<PAGE>

     In Witness Whereof, the parties hereto have caused this Amendment to be
duly executed by their respective officers as of the day and year first above
written.

                                      Education Funding Capital Trust-I,
                                        by Fifth Third Bank, as Co-Owner Trustee

                                      By:   /s/ Brian J. Gardner
                                         ---------------------------------------
                                      Name:  Brian J. Gardner
                                      Title: AVP & Senior Trust Officer

                                      Education Lending Services, Inc., as
                                        Servicer

                                      By:   /s/ Perry D. Moore
                                         ---------------------------------------
                                      Name:  Perry D. Moore
                                      Title: Senior Vice President - Finance

                                      Fifth Third Bank, as Trust Eligible Lender
                                        Trustee

                                      By:   /s/ Brian J. Gardner
                                         ---------------------------------------
                                      Name:  Brian J. Gardner
                                      Title: AVP & Senior Trust Officer

                                      Fifth Third Bank, as Indenture Trustee

                                      By:   /s/ Brian J. Gardner
                                         ---------------------------------------
                                      Name:  Brian J. Gardner
                                      Title: AVP & Senior Trust Officer