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                                                                    Exhibit 10.6

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                            Administration Agreement

                                     between

                        Education Funding Capital Trust-I
                                    as Issuer

                                       and

                               Grad Partners, Inc.
                                as Administrator

                             dated as of May 1, 2002

================================================================================

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                                Table of Contents

<TABLE>
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                                                                                    Page
<S>                                                                                   <C>
Section 1.    Definitions............................................................  1
Section 2.    Indenture and Related Documents........................................  2
Section 3.    Servicing Agreement....................................................  3
Section 4.    Transfer and Sale Agreements...........................................  4
Section 5.    Higher Education Act...................................................  5
Section 6.    Other Duties with Respect to the Indenture and Servicing Agreement.....  5
Section 7.    Other Administrative Services..........................................  5
Section 8.    Exceptions.............................................................  6
Section 9.    Employees; Offices.....................................................  6
Section 10.   Non-Ministerial Matters................................................  7
Section 11.   Compensation...........................................................  7
Section 12.   Representations and Warranties of the Issuer...........................  7
Section 13.   Representations and Warranties of the Administrator....................  8
Section 14.   Term...................................................................  9
Section 15.   Obligation to Supply Information.......................................  9
Section 16.   Annual Statement as to Compliance......................................  9
Section 17.   Annual Independent Public Accountant's Report..........................  9
Section 18.   Liability of Administrator............................................. 10
Section 19.   Merger or Consolidation of, or Assumption of the Obligations of, the
                 Administrator....................................................... 11
Section 20.   Administrator Default.................................................. 11
Section 21.   Appointment of Successor............................................... 12
Section 22.   Reliance on Information Obtained from Third Parties.................... 13
Section 23.   Notices................................................................ 13
Section 24.   Amendment.............................................................. 14
Section 25.   Assignment............................................................. 14
Section 26.   Independence of Administrator.......................................... 14
Section 27.   No Joint Venture....................................................... 14
Section 28.   Other Activities of Administrator...................................... 14
Section 29.   No Petition............................................................ 14
Section 30.   Governing Law.......................................................... 15
Section 31.   Entire Agreement....................................................... 15
Section 32.   Successors; Counterparts............................................... 15
Section 33.   Third Party Beneficiaries.............................................. 15
Section 34.   Captions............................................................... 15
</TABLE>

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                            Administration Agreement

     This Administration Agreement (this "Administration Agreement") is made as
of May 1, 2002 between Education Funding Capital Trust-I (the "Issuer") and Grad
Partners, Inc., a Delaware corporation, as administrator (the "Administrator")
under the circumstances set forth below. (Capitalized terms used but not
otherwise defined herein shall have the meanings ascribed to such terms in the
Indenture (defined below).)

                                    Recitals

     A. The Issuer is engaged in the acquisition from the Depositor of Financed
Student Loans.

     B. In connection with the acquisition of Student Loans, the Issuer has
executed and delivered that certain Indenture of Trust and 2002-1 Series A&B
Supplemental Indenture of Trust, each dated as of May 1, 2002 (collectively, the
"Indenture") and each among the Issuer, Fifth Third Bank, as indenture trustee,
and Fifth Third Bank, as trust eligible lender trustee.

     C. Pursuant to the Indenture and the other Basic Documents to which the
Issuer is a party (collectively, the "Issuer Documents"), the Issuer is
obligated to perform certain duties and responsibilities under the Indenture and
in connection with the assets and obligations thereunder.

     D. The Issuer has requested that the Administrator provide advice and
assistance to the Issuer and perform various services for and duties of the
Issuer, including the duties and responsibilities of the Issuer under the
Indenture and in connection with the assets and obligations thereunder.

     E. The Issuer desires to avail itself of the experience, advice and
assistance of the Administrator and to have the Administrator perform various
financial, statistical, accounting and other services for and duties of the
Issuer, and the Administrator has the capacity and is willing to furnish such
services on the terms and conditions set forth herein.

     Now Therefore, in consideration of the mutual promises and covenants set
forth herein and other valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

     Section 1. Definitions. For all purposes of this Administration Agreement,
the following terms shall have the following meanings:

     "Affiliate" means any Person directly or indirectly controlling or
controlled by, or under direct or indirect common control with, the
Administrator or the Issuer. For purposes of this definition, "control" means
the power to direct management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise.

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     "Payment Date" shall mean the last Business Day of each Month.

     Section 2. Indenture and Related Documents. The Administrator shall cause
the duties and responsibilities of the Issuer under the Indenture to be
performed, including but not limited to the actions set forth below. The
Administrator shall advise the Issuer when action by the Issuer is necessary to
comply with the Issuer's duties under the Indenture and the agreements relating
thereto. The Administrator shall prepare for execution, if required, by the
Issuer, or shall cause the preparation by other appropriate persons of all such
documents, reports, filings, instruments, certificates and opinions as it shall
be the duty of the Issuer to prepare, file or deliver pursuant to the Indenture.
In furtherance of the foregoing, the Administrator shall take all appropriate
action, including but not limited to, the following:

     (a)  obtaining and preserving the Issuer's legal right to do business in
          any jurisdiction in which such qualification is or shall be necessary
          to protect the validity and enforceability of the Indenture, and each
          instrument and agreement included in the Trust Estate;

     (b)  preparing all supplements, amendments, financing statements,
          continuation statements, instruments of further assurance and other
          instruments, in accordance with the relevant provisions of the
          Indenture, necessary to protect the Trust Estate;

     (c)  arranging for the delivery of any opinions of counsel and certificates
          of officers of the Issuer and other statements required under the
          relevant provisions of the Indenture;

     (d)  preparing and obtaining documents and instruments required for the
          release of the Issuer from its obligations under the Indenture;

     (e)  monitoring the Issuer's obligations as to the satisfaction and
          discharge of the Indenture and preparing any certificates of officers
          of the Issuer and obtaining any opinions of counsel required in
          connection therewith;

     (f)  preparing, obtaining or filing the instruments, opinions and
          certificates and other documents required for the release of
          collateral;

     (g)  taking such actions as may be required of the Issuer under the
          Indenture upon the occurrence and continuance of an Event of Default;

     (h)  preparing and, after execution by the Issuer, filing with the
          Commission, any applicable state agencies and the Indenture Trustee,
          documents required to be filed on a periodic basis with, and summaries
          thereof as may be required by rules and regulations prescribed by, the
          Commission and any applicable State agencies;

                                      -2-

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     (i)  causing the directions of the Issuer to be carried out in connection
          with opening one or more accounts in the Issuer's name, preparing any
          orders of the Issuer and certificates of officers of the Issuer and
          obtaining opinions of counsel required, and taking all other actions
          necessary, with respect to investment and reinvestment of moneys in
          the Funds in accordance with the investment criteria and requirements
          of the Indenture and applicable investment policies.

     (j)  preparing any requests of the Issuer and certificates of officers of
          the Issuer and obtaining any opinions of counsel required for the
          release of the Trust Estate;

     (k)  preparing all certificates of officers of the Issuer, and coordinating
          obtaining opinions of counsel as required with respect to any requests
          by the Issuer of the Indenture Trustee to take any action under the
          Indenture;

     (l)  preparing orders of the Issuer and obtaining opinions of counsel as
          necessary or required for the execution of any amendments or
          supplements to the Indenture;

     (m)  preparing and delivering certificates of officers of the Issuer, if
          necessary, for the release of property from the lien of the Indenture;

     (n)  preparing and delivering to the Indenture Trustee any agreements with
          respect to notice provisions;

     (o)  preparing and delivering investment instructions to the Indenture
          Trustee, as necessary or required under the terms of the Indenture and
          in accordance with the applicable investment policy, adopted from time
          to time; and

     (p)  taking such actions as may be required of the Issuer under any
          agreement between the Issuer and other parties relating to the
          Indenture.

     Section 3. Servicing Agreement. The Administrator shall cause the duties
and responsibilities of the Issuer under each of the Financed Student Loans and
the Servicing Agreement to be performed, including but not limited to the duties
set forth below. The Administrator shall advise the Issuer when action by the
Issuer is necessary to comply with the Issuer's obligations under the Financed
Student Loans and the Servicing Agreement. The Administrator shall prepare for
execution, if required, by the Issuer or shall cause the preparation by other
appropriate persons of all such documents, reports, filings, instruments,
certificates and opinions as it shall be the duty of the Issuer to prepare, file
or deliver pursuant to the Financed Student Loans and the Servicing Agreement.
In furtherance of the foregoing, the Administrator shall take all appropriate
action, including but not limited to the following:

     (a)  pursuant to the Servicing Agreement, providing to the Servicer (or the
          Servicer's bailee) from time to time, as necessary, and requiring that
          the Servicer (or the Servicer's bailee) maintain physical custody and
          possession of, documentation and

                                      -3-

<PAGE>

          information relating to the Financed Student Loans and, on and after
          each applicable date on which Student Loans are to be purchased (the
          "Loan Purchase Date"), Student Loans sold and transferred to the
          Issuer on each such Loan Purchase Date, including the documents
          evidencing such Student Loans and such additional documentation or
          information relating to such Student Loans as is reasonably required
          for the Student Loans to be properly serviced by the Servicer;

     (b)  cause to be paid solely from the Trust Estate, all amounts to be paid
          by the Issuer pursuant to the Transfer and Sale Agreements;

     (c)  promptly after each Loan Purchase Date and with respect to Student
          Loans originated under the Act, ensuring that notification as required
          under the Act and by the applicable Guarantee Agencies is made to the
          borrower under each such Student Loan and to the Secretary of
          Education and the applicable Guarantee Agencies, as appropriate;

     (d)  promptly after each Loan Purchase Date, providing the Servicer with
          all information as may be required under the Servicing Agreement;

     (e)  causing to be paid to the Servicer on behalf of the Issuer, but solely
          from the Trust Estate, all fees required to be paid by the Issuer
          pursuant to the Servicing Agreement;

     (f)  performing all audits of records and accounts that the Issuer from
          time to time may be permitted or required to perform under the
          Servicing Agreement;

     (g)  preparing all other documents, reports, filings, instruments,
          certificates and opinions as it is the duty of the Issuer to prepare,
          file or deliver pursuant to the Servicing Agreement; and

     (h)  in the event of the default of the Servicer under the Servicing
          Agreement, or default of any other party to any other Issuer Document,
          taking all reasonable steps available to enforce the Issuer's rights
          under such documents in respect of such default.

     Section 4. Transfer and Sale Agreements. The Administrator shall take the
actions necessary to cause the duties of the Issuer to be carried out under the
provisions of the Transfer and Sale Agreements and any of the rights or
obligations thereunder. The Administrator also shall enforce the rights of the
Issuer under the applicable provisions of the Transfer and Sale Agreements to
require the Depositor to repurchase certain Student Loans that have been
transferred to the Issuer, including but not limited to providing notice to the
Servicer of each such repurchase request, endorsing to the Servicer each Student
Loan to be repurchased by the Depositor and taking all other actions necessary
to enforce the Issuer's rights of recourse against the Depositor.

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     Section 5. Higher Education Act. The Administrator shall take all actions
that are necessary to cause the Issuer to comply with the requirements of the
Act and the applicable Guarantee Agencies with respect to Student Loans
originated under the Act.

     Section 6. Other Duties with Respect to the Indenture and Servicing
Agreement.

     (a) In addition to the duties of the Administrator set forth above, the
Administrator shall perform such calculations and shall prepare for execution by
the Issuer or shall cause the preparation by other appropriate persons of all
such documents, reports, filings, instruments, certificates and opinions as it
shall be the duty of the Issuer to prepare, file or deliver pursuant to the
Indenture or the Servicing Agreement, and shall take all appropriate action that
it is the duty of the Issuer to take pursuant to the Indenture or the Servicing
Agreement. The Administrator shall administer, perform or supervise the
performance of such other activities in connection with the Trust Estate
(including the Servicing Agreement) as the Issuer is obligated to perform and
are not covered by any of the foregoing provisions and as are reasonably within
the capability of the Administrator.

     (b) In carrying out the foregoing duties or any of its other obligations
under this Administration Agreement, the Administrator may enter into
transactions with or otherwise deal with any of its Affiliates; provided that
the terms of any such transactions or dealings shall be, in the Administrator's
opinion, no less favorable to the Issuer than would be available from
unaffiliated parties.

     Section 7. Other Administrative Services. The Issuer hereby authorizes the
Administrator, as its agent, to perform, and the Administrator hereby agrees to
perform, all administrative services necessary or desirable in connection with
the Issuer's existence as a bankruptcy-remote Delaware business trust holding
the assets described hereunder, including but not limited to the following:

     (a)  subject to the directions of the authorized representatives of the
          Issuer, carrying out and performing the day to day business activities
          of the Issuer;

     (b)  providing, or causing to be provided, all clerical and bookkeeping
          services necessary and appropriate for the Issuer, including, without
          limitation, the following services:

          (i)  maintaining general accounting records of the Issuer, and
               preparing for audit such periodic financial statements as may be
               necessary or appropriate;

          (ii) maintaining records of the Funds, authorizing withdrawals from
               the Funds on behalf of the Issuer and taking all other actions on
               behalf of the Issuer as may be necessary with respect to the
               Funds;

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          (iii) (A) preparing for execution by the Issuer and causing to be
               filed on behalf of the Issuer such income, franchise or other tax
               returns of the Issuer as shall be required to be filed by
               applicable law, and (B) causing to be paid by the Issuer, solely
               out of moneys of the Issuer, any taxes required to be paid by the
               Issuer by applicable law;

          (iv) assisting in preparing for execution by the Issuer amendments to
               and waivers under the Servicing Agreement and any other documents
               or instruments deliverable by the Issuer thereunder or in
               connection therewith;

          (v)  holding, maintaining and preserving executed copies of the
               Servicing Agreement and other documents or instruments executed
               by the Issuer thereunder or in connection therewith;

          (vi) assisting in giving such other notices, consents and other
               communications that the Issuer may from time to time be required
               or permitted to give under the Servicing Agreement or other
               documents executed by the Issuer thereunder or in connection
               therewith;

          (vii) facilitating the annual audit of the financial statements of the
               Issuer; and

          (viii) taking such other actions as may be incidental or reasonably
               necessary to accomplish the actions of the Administrator
               authorized under this subsection b;

     (c)  assisting the Issuer in carrying out the investment and reinvestment
          of the moneys of the Issuer in accordance with applicable investment
          policies; and

     (d)  undertaking such other administrative services as may be required by
          the Issuer.

     If the Administrator or the Issuer deems it necessary or desirable, any of
the foregoing administrative services may be subcontracted by the Administrator.
Costs and expenses associated with such subcontracting incurred by the
Administrator shall be paid by the Issuer in accordance with Section 11 hereof.

     Section 8. Exceptions. Notwithstanding anything to the contrary in this
Administration Agreement, the Administrator shall not be obligated to, and shall
not, (1) make any payments to the Holders of the Notes, (2) sell the Trust
Estate to unrelated third parties, or (3) take any other action that the Issuer
directs the Administrator not to take on its behalf.

     Section 9. Employees; Offices. All services to be furnished by the
Administrator under this Administration Agreement may be furnished by an officer
or employee of the Administrator or any other person or agent designated or
retained by the Administrator.

                                      -6-

<PAGE>

     The Administrator agrees to provide office space, together with appropriate
materials and any necessary support personnel, for performing the day to day
business activities of the Issuer, all for the compensation provided in Section
11 hereof.

     Section 10. Non-Ministerial Matters. With respect to matters that in the
reasonable judgment of the Administrator are non-ministerial, the Administrator
shall not take any action unless within a reasonable time before the taking of
such action, the Administrator shall have notified the Issuer of the proposed
action and the Issuer shall not have withheld consent or provided an alternative
direction. For the purpose of the preceding sentence, "non-ministerial matters"
shall include:

     (a)  the amendment of or any supplement to the Indenture;

     (b)  the initiation of any claim or lawsuit by the Issuer and the
          compromise of any action, claim or lawsuit brought by or against the
          Issuer (other than in connection with the collection of the Student
          Loans);

     (c)  the amendment, change or modification of the Servicing Agreement;

     (d)  the appointment of successor Indenture Trustee pursuant to the
          Indenture or the appointment of successor administrators or successor
          servicers, or the consent to the assignment by the Indenture Trustee
          of its obligations under the Indenture; and

     (e)  the removal of the Indenture Trustee.

     Section 11. Compensation. Subject to Section 4.07 of the Indenture, on or
before each Payment Date, the Issuer shall pay to the Administrator, as
compensation for its services specified hereunder, a fee in the amount of 0.04%
(on a per annum basis) of the average principal balance of the Financed Student
Loans during the preceding calendar month. If at any time the Issuer requests
the Administrator to perform any additional services not specified hereunder,
the Issuer shall pay the Administrator such additional fees in respect thereof
as shall be agreed to by the Issuer and the Administrator. The Issuer agrees to
reimburse the Administrator for all reasonable expenses, disbursements and
advances incurred or made by the Administrator in connection with the
performance of this Administration Agreement, including, but not limited to, the
fees and expenses of subcontracting, any independent accountants and outside
counsel, which reimbursement shall relate to amounts incurred in a calendar
month and shall be payable by the Issuer to the Administrator on the next
succeeding Payment Date.

     The Issuer and the Administrator agree that payments to the Administrator
shall be made out of the Operating Fund.

     Section 12. Representations and Warranties of the Issuer. The Issuer makes
the following representations:

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     (a) Creation. The Issuer is duly formed and validly existing with the power
and authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently conducted.

     (b) Power and Authority. The Issuer has the power and authority to execute
and deliver this Administration Agreement and to carry out its terms, and the
execution, delivery and performance of this Administration Agreement have been
duly authorized by the Issuer by all necessary action.

     (c) Binding Obligation. This Administration Agreement constitutes a legal,
valid and binding obligation of the Issuer enforceable in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization and similar
laws relating to creditors' rights generally and subject to general principles
of equity.

     (d) No Proceedings. There are no proceedings or investigations pending
against the Issuer or, to its best knowledge, threatened against the Issuer,
before any court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Issuer or its properties: (i)
asserting the invalidity of this Administration Agreement, (ii) seeking to
prevent the consummation of any of the transactions contemplated by this
Administration Agreement or (iii) seeking any determination or ruling that could
reasonably be expected to have a material and adverse effect on the performance
by the Issuer of its obligations under, or the validity or enforceability of,
this Administration Agreement.

     (e) All Consents. All authorizations, consents, orders or approvals of or
registrations or declarations with any court, regulatory body, administrative
agency or other governmental instrumentality required to be obtained, effected
or given by the Issuer in connection with the execution and delivery by the
Issuer of this Administration Agreement and the performance by the Issuer of the
transactions contemplated by this Administration Agreement have been duly
obtained, effected or given and are in full force and effect.

     Section 13. Representations and Warranties of the Administrator. The
Administrator makes the following representations:

     (a) Organization and Good Standing. The Administrator is duly organized and
validly existing and in good standing with the power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is presently conducted.

     (b) Power and Authority. The Administrator has the power and authority to
execute and deliver this Administration Agreement and to carry out its terms,
and the execution, delivery and performance of this Administration Agreement
have been duly authorized by the Administrator by all necessary company action.

     (c) Binding Obligation. This Administration Agreement constitutes a legal,
valid and binding obligation of the Administrator enforceable in accordance with
its terms, subject to

                                      -8-

<PAGE>

applicable bankruptcy, insolvency, reorganization and similar laws relating to
creditors' rights generally and subject to general principles of equity.

     (d) No Proceedings. There are no proceedings or investigations pending
against the Administrator or, to its best knowledge, threatened against the
Administrator, before any court, regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Administrator or its
properties: (i) asserting the invalidity of this Administration Agreement, (ii)
seeking to prevent the consummation of any of the transactions contemplated by
this Administration Agreement or (iii) seeking any determination or ruling that
could reasonably be expected to have a material and adverse effect on the
performance by the Administrator of its obligations under, or the validity or
enforceability of, this Administration Agreement.

     (e) All Consents. All authorizations, consents, orders or approvals of or
registrations or declarations with any court, regulatory body, administrative
agency or other governmental instrumentality required to be obtained, effected
or given by the Administrator in connection with the execution and delivery by
the Administrator of this Administration Agreement and the performance by the
Administrator of the transactions contemplated by this Administration Agreement
have been duly obtained, effected or given and are in full force and effect.

     Section 14. Term. Subject to the terms hereof, the Administrator may resign
at any time. The Administrator or the Issuer may terminate this Administration
Agreement upon at least 45 days' prior written notice to the other party.
Notwithstanding the foregoing, no resignation or termination shall be effective
until 45 days after written notice has been delivered to the Indenture Trustee.

     Section 15. Obligation to Supply Information. The Issuer shall prepare and
supply, or cause the other parties to the Indenture or the Servicing Agreement
to prepare and supply, the Administrator with such information regarding the
performance of the Indenture or the Servicing Agreement as the Administrator may
from time to time reasonably request in connection with the performance of its
obligations hereunder.

     Section 16. Annual Statement as to Compliance. The Administrator will
deliver to the Issuer, the Indenture Trustee, the Trust Eligible Lender Trustee
and each Counterparty, on or before March 31 of each year, beginning with March
31, 2003, a certificate stating that (a) a review of the activities of the
Administrator during the preceding calendar year and of its performance under
this Agreement has been made under the supervision of the officer signing such
certificate and (b) to the best of such officer's knowledge, based on such
review, the Administrator has fulfilled all its obligations under this Agreement
throughout such year, or, there has been a default in the fulfillment of any
such obligation, specifying each such default known to such officer and the
nature and status thereof.

     Section 17. Annual Independent Public Accountant's Report. On or before
March 31 of each year, beginning March 31, 2003, the Administrator at its
expense shall cause an independent public accountant that is a member of the
American Institute of Certified Public Accountants to furnish a statement to the
Issuer, the Indenture Trustee, the Trust Eligible Lender

                                      -9-

<PAGE>

Trustee and each Counterparty to the effect that such accountant has examined
certain documents and records relating to the Administrator's performance
(during the preceding fiscal year) under this Agreement and that, on the basis
of such examination, the Administrator has complied with the terms of this
Agreement, except for such significant exceptions or errors in records that, in
the opinion of such accountant, requires it to report and that are set forth in
such report.

     Section 18. Liability of Administrator. The Administrator shall be liable
in accordance herewith only to the extent of the obligations specifically
undertaken by the Administrator under this Administration Agreement.

     The Administrator shall indemnify, defend and hold harmless the Issuer, and
all of the officers, directors, employees, trustees and agents of the Issuer,
from and against any and all costs, expenses, losses, claims, damages and
liabilities to the extent that any such cost, expense, loss, claim, damage or
liability arose out of, or was imposed upon the Issuer through, the gross
negligence, willful misfeasance or bad faith of the Administrator in the
performance of its duties under this Administration Agreement or by reason of
reckless disregard of its obligations and duties hereunder or thereunder. The
Issuer shall notify the Administrator promptly of any claim for which it may
seek indemnity. The Administrator shall defend the claim and the Administrator
shall not be liable for the legal fees and expenses of the Issuer after it has
assumed such defense.

     For purposes of this Section 18, in the event of the termination of the
rights and obligations of the Administrator (or any successor thereto pursuant
to Section 21 hereof) pursuant to Section 14 hereof or the resignation by such
Administrator pursuant to this Administration Agreement, unless the Issuer
elects not to appoint a successor Administrator, such Administrator shall be
deemed to be the Administrator pending appointment of a successor Administrator
pursuant to Section 21 hereof.

     Indemnification under this Section 18 shall survive the termination of this
Administration Agreement and shall include reasonable fees and expenses of
counsel and expenses of litigation. If the Administrator has made any indemnity
payments pursuant to this Section 18 and the Issuer thereafter collects any of
such amounts from others, the Issuer promptly shall repay such amounts to the
Administrator, without interest.

     Neither the Administrator nor any of its directors, officers, employees or
agents shall be under any liability to the Issuer except as provided under this
Administration Agreement for any action taken or for refraining from the taking
of any action pursuant to this Administration Agreement or for errors in
judgment; provided that these provisions shall not protect the Administrator or
any such person against any liability that would otherwise be imposed by reason
of willful misfeasance, bad faith or negligence in the performance of duties or
by reason of reckless disregard of obligations and duties under this
Administration Agreement. The Administrator and any of its directors, officers,
employees or agents may rely in good faith on the advice of counsel or on any
document of any kind, prima facie properly executed and submitted by any person
respecting any matters arising hereunder.

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<PAGE>

     Except as provided in this Administration Agreement, the Administrator
shall not be under any obligation to appear in, prosecute or defend any legal
action that shall not be incidental to its duties hereunder and that in its
opinion may involve it in any expense or liability; provided that the
Administrator may undertake any reasonable action that it may deem necessary or
desirable in respect of this Administration Agreement, the Indenture, and the
other Issuer Documents and the rights and duties of the parties to this
Administration Agreement, the Indenture, and the other Issuer Documents and the
interests of the Holders of the Notes.

     Section 19. Merger or Consolidation of, or Assumption of the Obligations
of, the Administrator. Any person (a) into which the Administrator may be merged
or consolidated, (b) which may result from any merger or consolidation to which
the Administrator shall be a party or (c) which may succeed to the properties
and assets of the Administrator substantially as a whole, shall be the successor
to the Administrator hereunder without the execution or filing of any documents
or any further act by any of the parties to this Administration Agreement;
provided that the Administrator hereby covenants that, if the surviving
Administrator is other than Grad Partners, Inc. or an Affiliate, it will not
consummate any of the foregoing transactions except upon satisfaction of the
following: (i) the surviving Administrator executes an agreement of assumption
to perform every obligation of the Administrator under this Administration
Agreement, (ii) immediately after giving effect to such transaction, no
representation or warranty made pursuant to Section 13 hereof has been breached
and no Administrator Default (as defined below), and no event that, after notice
or lapse of time, or both, would become an Administrator Default has occurred
and is continuing, (iii) the surviving Administrator has delivered to the
Indenture Trustee a certificate of an officer of the surviving Administrator and
an opinion of counsel each stating that such consolidation, merger or succession
and such agreement of assumption comply with this Section 19 and that all
conditions precedent, if any, provided for in this Administration Agreement
relating to such transaction have been complied with, and (iv) such transaction
will not result in a material adverse Federal or state tax consequence to the
holders of Notes under the Indenture. Anything in this Section 19 to the
contrary notwithstanding, the Administrator may at any time assign its rights,
obligations and duties under this Administration Agreement to an Affiliate.

     Section 20. Administrator Default. The occurrence and continuance of any
one of the following events shall constitute an "Administrator Default":

     (a) any failure by the Administrator to direct the Indenture Trustee to
make any distributions from the Funds pursuant to Indenture, which failure
continues unremedied for a period of five days after the date on which written
notice of such failure has been given to the Administrator by the Issuer;

     (b) any failure by the Administrator duly to observe or to perform in any
material respect any covenant or agreement of the Administrator set forth in
this Administration Agreement, which failure continues unremedied for a period
of 60 days after the date on which written notice of such failure has been given
to the Administrator by the Issuer;

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<PAGE>

     (c) (i) having entered involuntarily against it an order for relief under
the federal bankruptcy laws or any similar state or federal law, (ii) not
paying, or admitting in writing its inability to pay, its debts generally as
they become due or suspending payment of its obligations, (iii) making an
assignment for the benefit of creditors, (iv) applying for, seeking, consenting
to, or acquiescing in, the appointment of a receiver, custodian, trustee,
conservator, liquidator or similar official for it or any substantial part of
its property, (v) instituting any proceeding seeking to have entered against it
an order for relief under the federal bankruptcy laws or any similar state or
federal law, to adjudicate it insolvent, or seeking dissolution, winding up,
liquidation, reorganization, arrangement, marshaling of assets, adjustment or
composition of it or its debts under any law relating to bankruptcy, insolvency
or reorganization, or relief of debtors or failing to file an answer or other
pleading denying the material allegations of any such proceeding filed against
it, (vi) failing to contest in good faith any appointment or proceeding
described in Section 20(d) hereof or (vii) taking any action in furtherance of
any of the foregoing purposes;

     (d) the appointment of a custodian, receiver, trustee, conservator,
liquidator or similar official for the Administrator or any substantial part of
the property of the Administrator, or the institution of a proceeding described
in Section 20(c)(v) hereof against the Administrator, which appointment
continues undischarged or which proceeding continues undismissed or unstayed for
a period of 60 or more days; or

     (e) any representation or warranty made by the Administrator in this
Agreement or in any other Basis Document shall prove to be untrue or incomplete
in any material respect.

     In the case of any Administrator Default, so long as such Administrator
Default has not been remedied, the Issuer or the Indenture Trustee shall, by
written notice to the Administrator of such Administrator Default, terminate all
of the rights and obligations (other than the obligations set forth in Section
18 hereof) of the Administrator under this Administration Agreement with respect
to the Indenture. On or after the receipt by the Administrator of such written
notice, all authority and power of the Administrator under this Administration
Agreement shall, without further action, be carried out by the Issuer or shall
pass to and be vested in such successor Administrator as may be appointed under
Section 21 hereof; and, without limitation, the Issuer is hereby authorized and
empowered to execute and deliver, for the benefit of the predecessor
Administrator, as attorney-in-fact or otherwise, any and all documents and other
instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination. The
predecessor Administrator shall cooperate with the successor Administrator in
effecting the termination of the responsibilities and rights of the predecessor
Administrator under this Administration Agreement. All reasonable costs and
expenses (including attorneys' fees) incurred in connection with amending this
Administration Agreement to reflect such succession as Administrator pursuant to
this Section 20 shall be paid by the predecessor Administrator upon presentation
of reasonable documentation of such costs and expenses.

     Section 21. Appointment of Successor.

                                      -12-

<PAGE>

     (a) Upon receipt by the Administrator of notice of termination pursuant to
Section 14 hereof, or the resignation by the Administrator in accordance with
the terms of this Administration Agreement, the predecessor Administrator shall
continue to perform its functions as Administrator under this Administration
Agreement, in the case of termination, only until the date specified in such
termination notice or, if no such date is specified in a notice of termination,
until receipt of such notice and, in the case of resignation, until the date a
successor Administrator is appointed by the Issuer. In the event of the
termination or resignation hereunder of the Administrator, the Issuer may
appoint a successor Administrator. Any such successor Administrator shall accept
its appointment by a written assumption.

     (b) Upon appointment, the successor Administrator shall be the successor in
all respects to the predecessor Administrator and shall be subject to all of the
responsibilities, duties and liabilities placed on the predecessor Administrator
that arise thereafter or are related thereto and shall be entitled to payment of
compensation in accordance with the terms of this Administration Agreement, or
such other terms as are agreed to by the Issuer, and all of the rights granted
to the predecessor Administrator by the terms and provisions of this
Administration Agreement.

     Section 22. Reliance on Information Obtained from Third Parties. The Issuer
recognizes that the accuracy and completeness of the records maintained and the
information supplied by the Administrator hereunder is dependent upon the
accuracy and completeness of the information obtained by the Administrator from
the parties to the Indenture and the other Issuer Documents and other sources
and the Administrator shall not be responsible for any inaccuracy in the
information so obtained or for any inaccuracy in the records maintained by the
Administrator hereunder which may result therefrom.

     Section 23. Notices. All notices, demands, instructions and other
communications required or permitted to be given to or made upon either party
hereto shall be in writing (including by facsimile transmission) and shall be
personally delivered or sent by guaranteed overnight delivery or by facsimile
transmission (to be followed by personal or guaranteed overnight delivery) and
shall be deemed to be given for purposes of this Administration Agreement on the
date that such writing is received by the intended recipient thereof in
accordance with the provisions of this Section 23. Unless otherwise specified in
a notice sent or delivered in accordance with the foregoing provisions of this
Section 23, notices, demands, instructions and other communications in writing
shall be given to or made upon the respective parties thereto at their
respective addresses as follows:

          The Issuer:
                    Education Funding Capital Trust-I
                    c/o Fifth Third Bank
                    MD 10AT60
                    38 Fountain Square Plaza
                    Cincinnati, Ohio 45263

                                      -13-

<PAGE>

                    Attention:  Corporate Trust Administration
                    Telephone:  +1.513.534.3367
                    Facsimile:  +1.513.534.6785

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

     Section 24. Amendment. This Administration Agreement may be amended in
writing by the Administrator and the Issuer. Promptly after the execution of any
such amendment, the Administrator shall furnish written notification of the
substance of such amendment to the Indenture Trustee.

     Section 25. Assignment. Except as provided in Section 19 hereof or as
contemplated by the Indenture, this Administration Agreement may not be assigned
by either party hereto without the prior written consent of the other party;
provided, however, so long as Grad Partners, Inc. is the Administrator, subject
to the Rating Agency Condition, the Administrator may assign its duties and
obligations to an Affiliate.

     Section 26. Independence of Administrator. For all purposes of this
Administration Agreement, the Administrator shall be an independent contractor.
Unless expressly authorized by the Issuer, the Administrator shall have no
authority to act for or represent the Issuer in any way and shall not otherwise
be deemed an agent of the Issuer.

     Section 27. No Joint Venture. Nothing contained in this Administration
Agreement shall constitute the Issuer and the Administrator as members of any
partnership, joint venture, association, syndicate, unincorporated business or
other separate entity or shall be deemed to confer on either of them any
express, implied or apparent authority to incur any obligation or liability on
behalf of the other.

     Section 28. Other Activities of Administrator. Nothing herein shall prevent
the Administrator or its Affiliates from engaging in other business or, in its
sole discretion, from acting in a similar capacity as an administrator for any
other Person even though such Person may engage in business activities similar
to those of the Issuer.

     Section 29. No Petition. The Administrator covenants and agrees that,
notwithstanding the termination of this Administration Agreement, the
Administrator will not institute against, or join in instituting against the
Issuer, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding, or other proceeding under any federal or state bankruptcy or similar
law ordering the winding up or liquidation of the Issuer's affairs or appointing
a receiver, liquidator, trustee, or other similar official, of the Issuer or any
substantial part of its property, for one year and

                                      -14-

<PAGE>

a day after the termination of this Administration Agreement. This Section 29
shall survive the termination of this Administration Agreement.

     Section 30. Governing Law. This Administration Agreement shall be governed
by and construed in accordance with the laws of the State of Ohio, without
regard to its conflict of law provisions.

     Section 31. Entire Agreement. This Administration Agreement constitutes the
entire agreement between the parties hereto with respect to the matters covered
hereby and supersedes all prior agreements and understandings between the
parties.

     Section 32. Successors; Counterparts.

     (a) This Administration Agreement shall be binding upon, inure to the
benefit of and be enforceable by the respective successors and assigns of each
of the Issuer and the Administrator.

     (b) This Administration Agreement may be executed in several counterparts,
each of which shall be deemed an original hereof and all of which taken together
shall constitute one and the same instrument.

     Section 33. Third Party Beneficiaries. Each of the Owner Trustee and the
Co-Owner Trustee shall be deemed a third party beneficiary of this
Administration Agreement.

     Section 34. Captions. The captions in this Administration Agreement are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.

                  [remainder of page intentionally left blank]

                                      -15-

<PAGE>

     In Witness Whereof, the parties hereto have caused this Administration
Agreement to be executed as of the day and year first above written.

                                  Education Funding Capital Trust-I
                                     By Fifth Third Bank, not in its individual
                                     capacity, but solely as Co-Owner Trustee,
                                     on behalf of the Issuer


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


                                  Grad Partners, Inc.
                                     as Administrator


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

     Fifth Third Bank, as the Indenture Trustee under the Indenture, hereby
agrees to take such actions and execute such documents as may be reasonably
requested by the Administrator in order for the Administrator to provide the
services and perform its duties and responsibilities under the foregoing
Administration Agreement.

                                  Fifth Third Bank,
                                     as Indenture Trustee


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

<PAGE>

                   Amendment No. 1 to Administration Agreement

     This Amendment No. 1 to Administration 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 "Administrator"), and
Education Funding Capital Trust-I (the "Issuer"), a Delaware business trust.

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

                                   WITNESSETH

     Whereas, the Administrator and the Issuer are parties to the Administration
Agreement; and

     Whereas, pursuant to Section 24 of the Administration Agreement, the Issuer
and the Administrator desire to amend the Administration Agreement on the terms
and conditions set forth herein;

     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 last paragraph of Section 20 of the Administration Agreement
is hereby amended and restated in its entirety to read as follows:

          In the case of any Administrator Default, so long as such
     Administrator Default has not been remedied, the Indenture Trustee, or the
     holders of Notes evidencing not less than 25% of the Outstanding Amount of
     the Notes, may, by written notice to the Administrator of such
     Administrator Default, terminate all of the rights and obligations (other
     than the obligations set forth in Section 18 hereof) of the Administrator
     under this Administration Agreement with respect to the Indenture. On or
     after the receipt by the Administrator of such written notice, all
     authority and power of the Administrator under this Administration
     Agreement shall, without further action, be carried out by the Indenture
     Trustee or shall pass to and be vested in such successor Administrator as
     may be appointed under Section 21 hereof; and, without limitation, the
     Indenture Trustee is hereby authorized and empowered to execute and
     deliver, for the benefit of the predecessor Administrator, as
     attorney-in-fact or otherwise, any and all documents and other instruments,
     and to do or accomplish all other acts or things necessary or appropriate
     to effect the purposes of such notice of termination. The predecessor
     Administrator shall cooperate with the successor Administrator, the
     Indenture Trustee, the Issuer, and the Trust Eligible Lender Trustee in
     effecting the

<PAGE>

     termination of the responsibilities and rights of the predecessor
     Administrator under this Administration Agreement. All reasonable costs and
     expenses (including attorneys' fees) incurred in connection with amending
     this Administration Agreement to reflect such succession as Administrator
     pursuant to this Section 20 shall be paid by the predecessor Administrator
     upon presentation of reasonable documentation of such costs and expenses.

     Section 2. Section 21 of the Administration Agreement is hereby amended and
restated in its entirety to read as follows:

          (a) Upon receipt by the Administrator of notice of termination
     pursuant to Section 14 hereof, or the resignation by the Administrator in
     accordance with the terms of this Administration Agreement, the predecessor
     Administrator shall continue to perform its functions as Administrator
     under this Administration Agreement, in the case of termination, only until
     the date specified in such termination notice or, if no such date is
     specified in a notice of termination, until receipt of such notice and, in
     the case of resignation, until the date a successor Administrator is
     appointed. In the event of the termination or resignation hereunder of the
     Administrator, all authority and power of the Administrator under this
     Administration Agreement shall, without further action, be carried out by
     the Indenture Trustee. If the Indenture Trustee is unwilling or unable to
     act, it may appoint, or petition a court for the appointment of, a
     successor Administrator whose regular business includes the servicing or
     administration of Student Loans; provided, however, the Indenture Trustee
     shall continue to act as Administrator until a successor Administrator has
     been so appointed. Any such successor Administrator shall accept its
     appointment by a written assumption.

          (b) Upon appointment, the successor Administrator shall be the
     successor in all respects to the predecessor Administrator and shall be
     subject to all of the responsibilities, duties and liabilities placed on
     the predecessor Administrator that arise thereafter or are related thereto
     and shall be entitled to payment of compensation in accordance with the
     terms of this Administration Agreement, or such other terms as are agreed
     to by the Indenture Trustee, and all of the rights granted to the
     predecessor Administrator by the terms and provisions of this
     Administration Agreement.

     Section 3. All other provisions of the Administration 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 Administrator

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

Acknowledged as of the date first
above written:

Fifth Third Bank, as Indenture Trustee


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