Document:

<PAGE>

                                                                    EXHIBIT 10.8

                      DEPOSITOR TRANSFER AND SALE AGREEMENT

                                  BY AND AMONG

                        EDUCATION FUNDING CAPITAL I, LLC,
                      a Delaware limited liability company,

                                FIFTH THIRD BANK,
                   not in its individual capacity, but solely
    as eligible lender trustee on behalf of Education Funding Capital I, LLC
              under the Depositor Eligible Lender Trust Agreement,

                       EDUCATION FUNDING CAPITAL TRUST-II
                            a Delaware business trust

                                       and

                                FIFTH THIRD BANK,

             not in its individual capacity, but solely as co-owner
                      eligible lender trustee on behalf of
                       Education Funding Capital Trust-II
                 under the Trust Eligible Lender Trust Agreement

                   ------------------------------------------

                            dated as of April 1, 2003

                   ------------------------------------------

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>                                                                                                              <C>
ARTICLE I    SALE, TRANSFER AND ACCEPTANCE OF TRANSFERRED ASSETS................................................. 2
   1.01      Sale, Transfer and Acceptance of Transferred Assets................................................. 2
   1.02      Consideration for Transfer of Transferred Assets.................................................... 2
   1.03      Release of Depositor and Depositor Eligible Lender Trustee.......................................... 2

ARTICLE II   CLOSING............................................................................................. 3
   2.01      Closing............................................................................................. 3
   2.02      General Procedure................................................................................... 3

ARTICLE III  REPRESENTATIONS AND WARRANTIES OF DEPOSITOR AND DEPOSITOR ELIGIBLE LENDER TRUSTEE................... 3
   3.01      Formation and Authority............................................................................. 4
   3.02      Execution, Delivery; Valid and Binding Agreement.................................................... 4
   3.03      Brokerage........................................................................................... 4
   3.04      Regarding Financed Student Loans.................................................................... 4

ARTICLE IV   REPRESENTATIONS AND WARRANTIES OF THE TRUST AND TRUST ELIGIBLE LENDER TRUSTEE....................... 7
   4.01      Formation and Authority............................................................................. 7
   4.02      Execution, Delivery; Valid and Binding Agreement.................................................... 7

ARTICLE V    COVENANTS OF DEPOSITOR.............................................................................. 8
   5.01      Regarding Closing Conditions........................................................................ 8
   5.02      Regarding the Higher Education Act.................................................................. 8
   5.03      Regarding Perfection of Security Interest in Financed Student Loans................................. 8
   5.04      Conditions Precedent to Repurchase Obligation....................................................... 8
   5.05      Repurchase by Depositor............................................................................. 8
   5.06      Regarding Tax Matters............................................................................... 9

ARTICLE VI   COVENANTS OF THE TRUST AND THE TRUST ELIGIBLE
LENDER TRUSTEE................................................................................................... 9
   6.01      Regarding Closing Conditions........................................................................ 9
   6.02      Regarding the Higher Education Act and the Financed Student Loans................................... 9
   6.03      Regarding Tax Matters............................................................................... 9
   6.04      Restrictions Regarding Bankruptcy................................................................... 9

ARTICLE VII  CONDITIONS TO CLOSING...............................................................................10
   7.01      Conditions to Closing...............................................................................10
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                                                                              <C>
ARTICLE VIII TERMINATION.........................................................................................11
   8.01      Termination.........................................................................................11
   8.02      Effect of Termination...............................................................................11

ARTICLE IX   INDEMNIFICATION.....................................................................................12
   9.01      Indemnification by the Depositor....................................................................12
   9.02      Indemnification by the Trust........................................................................12
   9.03      Legal Proceedings...................................................................................12

ARTICLE X    MISCELLANEOUS.......................................................................................13
   10.01       Expenses..........................................................................................13
   10.02       Further Assurances................................................................................13
   10.03       Amendment and Waiver..............................................................................13
   10.04       Notices...........................................................................................13
   10.05       Assignment........................................................................................13
   10.06       Severability......................................................................................14
   10.07       Complete Agreement................................................................................14
   10.08       Counterparts......................................................................................14
   10.09       Governing Law.....................................................................................14

APPENDIX A - Glossary of Defined Terms
APPENDIX B - Administration Agreement
APPENDIX C - Servicing Agreement
APPENDIX D-1 - Schedule of Financed Student Loans
</TABLE>

                                      -ii-

<PAGE>

                      DEPOSITOR TRANSFER AND SALE AGREEMENT

        This DEPOSITOR TRANSFER AND SALE AGREEMENT (this "Agreement"), dated as
of April 1, 2003, is made and entered into by and among EDUCATION FUNDING
CAPITAL I, LLC, a Delaware limited liability company (the "Depositor"), FIFTH
THIRD BANK, not in its individual capacity, but solely as eligible lender
trustee on behalf of the Depositor under the Depositor Eligible Lender Trust
Agreement (the "Depositor Eligible Lender Trustee"), EDUCATION FUNDING CAPITAL
TRUST-II, a Delaware statutory trust (the "Trust"), and FIFTH THIRD BANK, not in
its individual capacity, but solely as eligible lender trustee on behalf of the
Trust under the Trust Eligible Lender Trust Agreement (the "Trust Eligible
Lender Trustee"):

        A.      The Depositor is a bankruptcy-remote special purpose entity that
has been organized for the limited purpose of facilitating the financing of the
Financed Student Loans under that certain Indenture of Trust dated as of April
1, 2003 (the "Indenture") among the Trust, Fifth Third Bank, as indenture
trustee, and Fifth Third Bank as eligible lender trustee on behalf of the Trust
(the "Trust Eligible Lender Trustee") and certain other indentures; and

        B.      The Depositor has heretofore created the Trust pursuant to the
Trust Agreement dated as of February 6, 2003, as amended and restated by the
Amended and Restated Trust Agreement dated as of April 1, 2003 among the
Depositor, Wilmington Trust Company, not in its individual capacity, but solely
as owner trustee (the "Owner Trustee") of the Trust, and Fifth Third Bank, not
in its individual capacity, but solely as co-owner trustee (the "Co-Owner
Trustee") of the Trust, acknowledged and agreed to by the Trust Eligible Lender
Trustee on behalf of the Trust.

        C.      Capitalized words and terms used but not defined herein are
defined in Appendix A hereto which also contains rules as to usage and
construction that shall be applicable herein;

        D.      Each of the Depositor and the Depositor Eligible Lender Trustee
desires (i) to sell, transfer, assign and convey to the Trust and the Trust
Eligible Lender Trustee, as the case may be, for the benefit of the Trust all of
their respective right, title and interest in and to the Transferred Assets and
(ii) to carry out such transactions on the terms and subject to the conditions
set forth in this Agreement;

        NOW, THEREFORE, in consideration of the mutual covenants,
representations, warranties and agreements and the conditions set forth in this
Agreement and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto hereby agree as follows:

                                        1

<PAGE>

                                    ARTICLE I

               SALE, TRANSFER AND ACCEPTANCE OF TRANSFERRED ASSETS

        1.01    Sale, Transfer and Acceptance of Transferred Assets.

                (a)     The Depositor, to the full extent of its right, title
and interest and as evidenced by the execution and delivery of this Agreement,
does hereby agree to sell, transfer, assign, set over and otherwise convey,
without recourse, to the Trust, and the Depositor Eligible Lender Trustee to the
full extent of its respective right, title and interest and as evidenced by the
execution and delivery of this Agreement, does hereby agree to sell, transfer,
assign, set over and otherwise convey, without recourse, to the Trust Eligible
Lender Trustee, for the benefit of the Trust, and each of the Trust and the
Trust Eligible Lender Trustee, as the case may be, for the benefit of the Trust
hereby agree to accept and acquire from the Depositor or the Depositor Eligible
Lender Trustee, as the case may be, all of the Depositor's and the Depositor
Eligible Lender Trustee's respective right, title and interest as of each
Closing Date, in and to the Transferred Assets, whether now owned or hereafter
acquired; provided, however, that with respect to such sale, transfer,
assignment, and conveyance to the Trust Eligible Lender Trustee, only the legal
title to the Financed Student Loans held by the Depositor Eligible Lender
Trustee is hereby sold, transferred, assigned, set over and conveyed to the
Trust Eligible Lender Trustee.

                (b)     The parties intend that the conveyance of all the
respective right, title and interest in the Transferred Assets be a sale of the
Transferred Assets from each of the Depositor and the Depositor Eligible Lender
Trustee, as the case may be, to each of the Trust and the Trust Eligible Lender
Trustee, as the case may be (a "Sale"), and the parties shall treat the
transaction contemplated by this Agreement for all purposes consistent with such
intent and not as a pledge of the Transferred Assets by the Depositor or the
Depositor Eligible Lender Trustee to secure a debt or other obligation of the
Depositor or the Depositor Eligible Lender Trustee.

        1.02    Consideration for Transfer of Transferred Assets. The
consideration to be provided by the Trust to the Depositor and the Depositor
Eligible Lender Trustee for the Transfer of the Transferred Assets shall be
payment of the Purchase Price. The Trust Eligible Lender Trustee shall deposit a
portion of the Purchase Price equivalent to the origination fees owing to the
United States Department of Education with respect to the Financed Student Loans
that are part of the Transferred Assets into a separate account. Such funds
shall be used to pay such origination fees when due. The remainder of the
Purchase Price shall be paid to the Depositor.

        1.03    Release of Depositor and Depositor Eligible Lender Trustee.

                (a)     The Depositor and the Depositor Eligible Lender Trustee
hereby acknowledge and agree that, upon Transfer of the Transferred Assets and
payment of the Purchase Price, the Trust will become the successor in interest
to the Depositor with respect to the Transferred Assets.

                (b)     The Depositor and the Depositor Eligible Lender Trustee
hereby acknowledge and agree that, upon Transfer of the Transferred Assets and
payment of the

                                       -2-

<PAGE>

Purchase Price, the Trust Eligible Lender Trustee will become the successor in
interest to the Depositor Eligible Lender Trustee with respect to the
Transferred Assets.

                                   ARTICLE II

                                     CLOSING

        2.01    Closing. The initial closing of the transactions contemplated by
this Agreement (the "Initial Closing") will take place at the offices of Squire,
Sanders & Dempsey L.L.P., 1300 Huntington Center, 41 South High Street,
Columbus, Ohio 43215, on April 16, 2003 or at such other place and on such other
date as shall be mutually agreed upon by the Depositor and the Trust (the
"Initial Closing Date"). One or more subsequent closings (each a "Subsequent
Closing," together with the Initial Closing, each a "Closing") of the
transactions contemplated by this Agreement may take place at such location and
on such dates as shall be mutually agreed upon by the Depositor and the Trust
(each a "Subsequent Closing" together with the Initial Closing Date, each a
"Closing Date).

        2.02    General Procedure.

                (a)     At each Closing, and effective as of each Closing Date,
each party shall deliver to the party entitled to receipt thereof the documents
required to be delivered pursuant to Article VII and such other documents,
instruments and materials (or complete and accurate copies thereof, where
appropriate) as may be reasonably required in order to effectuate the intent and
provisions of this Agreement, including the applicable Appendix D, and all such
documents, instruments and materials shall be satisfactory in form and substance
to counsel for the receiving party.

                (b)     At the Initial Closing, and effective on the Initial
Closing Date, Education Lending Services, Inc. ("ELS") and the Trust shall
execute and deliver the Administration Agreement, providing for certain
administrative services to be performed by ELS for the Trust, in the form of
Appendix B hereto (the "Administration Agreement").

                (c)     At the Initial Closing, and effective on the Initial
Closing Date, ELS and the Trust shall execute and deliver the Servicing
Agreement, providing for ELS as the Servicer to provide the servicing, or
arrange for the servicing by a Subservicer, of the Financed Student Loans on
behalf of the Trust, in the form of Appendix C hereto (the "Servicing
Agreement").

                                   ARTICLE III

                        REPRESENTATIONS AND WARRANTIES OF
                 DEPOSITOR AND DEPOSITOR ELIGIBLE LENDER TRUSTEE

                                       -3-

<PAGE>

        Each of the Depositor and the Depositor Eligible Lender Trustee, as the
case may be, hereby represents and warrants to the Trust and the Trust Eligible
Lender Trustee that, as of the date of this Agreement:

        3.01    Formation and Authority. The Depositor is a limited liability
company duly formed, validly existing and in good standing under the laws of the
State of Delaware, and had at all relevant times and has all requisite power and
authority to enter into this Agreement and perform its obligations hereunder.
The Depositor Eligible Lender Trustee is an Ohio banking corporation, duly
formed and validly existing under the laws of the State of Ohio, and had at all
relevant times and has all requisite power and authority to enter into this
Agreement and perform its obligations hereunder. The Depositor Eligible Lender
Trustee was at all relevant times and is an "eligible lender" under the
provisions of the Higher Education Act.

        3.02    Execution, Delivery; Valid and Binding Agreement. The
authorization, execution and delivery of this Agreement, the consummation of the
transactions herein contemplated and compliance with the terms, conditions and
provisions of this Agreement do not and will not conflict with or result in a
breach of any of the terms, conditions or provisions of any agreement or
instrument to which either the Depositor or the Depositor Eligible Lender
Trustee is a party or by which either is bound or constitute a default
thereunder; neither the Depositor nor the Depositor Eligible Lender Trustee is a
party to or bound by any agreement or instrument or subject to any charter or
other corporate restriction or judgment, order, writ, injunction, decree, law,
rule or regulation which may materially and adversely affect the ability of
either the Depositor or the Depositor Eligible Lender Trustee to perform its
respective obligations under this Agreement. This Agreement constitutes a valid
and binding obligation of each of the Depositor and the Depositor Eligible
Lender Trustee enforceable against such party in accordance with its terms,
subject to the effects of bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance and other similar laws relating to or affecting creditors'
rights generally and court decisions with respect thereto, and no consent,
approval or authorization is required in connection with the consummation of the
transactions herein contemplated, except for those that have been obtained.

        3.03    Brokerage. No broker or finder has acted for the Depositor or
the Depositor Eligible Lender Trustee in connection with this Agreement or the
transactions contemplated hereby, and no third party shall be entitled to
receive any fees for financial advisory services or similar compensation in
connection with the transactions contemplated by this Agreement based on any
arrangement or agreement made by or on behalf of the Depositor or the Depositor
Eligible Lender Trustee.

        3.04    Regarding Financed Student Loans. The Depositor (or the
Depositor Eligible Lender Trustee where expressly otherwise stated) hereby
represents and warrants to the Trust that as of the date of Transfer of the
Transferred Assets:

                (a)     Any information furnished by the Depositor to the Trust
or its agents with respect to any Financed Student Loan is true, complete and
correct in all material respects.

                                       -4-

<PAGE>

                (b)     Each Financed Student Loan has been duly executed and
delivered and constitutes the legal, valid and binding obligation of the maker
(and the endorser, if any) thereof, enforceable in accordance with its terms.

                (c)     The amount of the unpaid principal balance of each
Financed Student Loan shown on the applicable Appendix D, Schedule of Financed
Student Loans is correct, and no counterclaim, offset, defense or right to
rescission exists with respect to any Financed Student Loan that can be asserted
and maintained or that, with notice, lapse of time, or the occurrence or failure
to occur of any act or event, could be asserted and maintained by the student
borrower against the Depositor or the Trust as assignee thereof. The Depositor
has taken all reasonable actions to assure that no maker of a Financed Student
Loan has acquired or may acquire a defense to the payment thereof. No Financed
Student Loan carries a rate of interest less than, or in excess of, the
applicable rate of interest required by the Higher Education Act. If the Higher
Education Act permits the Depositor to charge an interest rate less than the
applicable rate of interest, the Trust may approve, in its sole discretion, in
writing, interest reductions which are part of a student borrower repayment
incentive program of the Depositor, the terms of which have been fully described
in detail and in writing to the Trust.

                (d)     Each Financed Student Loan provides for periodic
payments that will fully amortize the amount financed over its term to maturity,
exclusive of any deferral or forbearance periods.

                (e)     The Depositor and the Depositor Eligible Lender Trustee
are the sole owners and holders of each Financed Student Loan and have full
right and authority to Transfer the same free and clear of all liens, pledges or
encumbrances, and upon the delivery of a fully executed blanket endorsement with
regard to the promissory notes and applications evidencing the Transfer of the
Financed Student Loans to the Trust and the Trust Eligible Lender Trustee
pursuant to this Agreement, the Trust and the Trust Eligible Lender Trustee will
acquire full right, title and interest in, or alternatively, a lien and
perfected security interest in, such Financed Student Loans free and clear of
all liens, pledges or encumbrances whatsoever. All documentation relating to the
Financed Student Loans, including the original promissory note (or an original
or copy of each Master Promissory Note) for each Financed Student Loan, is in
the possession of the applicable Servicer or Subservicer, as the case may be.

                (f)     Each Financed Student Loan was originated in the United
States of America, its territories or its possessions in accordance with the
Federal Family Education Loan Program, complies in all respects with the
requirements of the Higher Education Act and is a Financed Student Loan as those
terms are defined in this Agreement.

                (g)     The information set forth in the applicable Appendix D
accurately describes and identifies the Financed Student Loans transferred as
part of the Transferred Assets.

                (h)     The Depositor and any Servicer or Subservicer, as the
case may be, have each exercised and shall continue to exercise, until the
consummation of the Transfer, due diligence and reasonable care in making,
administering, servicing and collecting the Financed Student Loans.

                                       -5-

<PAGE>

                (i)     Each Financed Student Loan is Guaranteed; each
Guarantee, is in full force and effect, is freely transferable as an incident to
the transfer of the related Financed Student Loan and is valid and binding upon
the parties thereto; all amounts due and payable to the Secretary or a Guarantee
Agency, as the case may be, have been paid or will be paid in full by the
Seller, and none of the Financed Student Loans has at any time been tendered to
either the Secretary or any Guarantee Agency for payment.

                (j)     Each Financed Student Loan was made in compliance with
all applicable local, state and federal laws, rules and regulations, including,
without limitation, all applicable nondiscrimination, truth-in-lending, consumer
credit and usury laws.

                (k)     Each Financed Student Loan is evidenced by a single
executed promissory note (which may be in electronic form), which note is a
valid and binding obligation of the student borrower, enforceable by or on
behalf of the holder thereof in accordance with its terms, subject to
bankruptcy, insolvency and other laws relating to or affecting creditors'
rights.

                (l)     No Financed Student Loan has a payment that is more than
90 days delinquent.

                (m)     The Depositor or the originating lender has reported, or
will report when due and has paid or will pay out of the Purchase Price, the
amount of origination fees and consolidation rebate fees, if any, authorized to
be collected with respect to each Financed Student Loan pursuant to Section
438(c) of the Higher Education Act to the Secretary for the period in which the
fee was authorized to be collected.

                (n)     The Depositor or the originating lender has made any
refund of origination fee collected in connection with any Financed Student
Loan, which may be required pursuant to the Higher Education Act.

                (o)     The transactions contemplated by this Agreement are and
will be in the ordinary course of the Depositor's business, and the Depositor
has valid business reasons for Transferring the Financed Student Loans rather
than obtaining a secured loan with the Financed Student Loans as collateral.
Both before and immediately after giving effect to any Transfer: (i) the
Depositor Transferred or will Transfer the Financed Student Loans to the Trust
without any intent to hinder, delay or defraud any current or future creditor of
the Depositor; (ii) the Depositor was not engaged and was not about to engage,
and will not engage in, any business or transaction for which any property
remaining with the Depositor was or will constitute unreasonably small capital
in relation to the business of the Depositor or the transaction; (iii) the
Depositor did not intend or will not intend to incur, and did not believe or
reasonably should not have believed, or will not believe or reasonably shall not
have believed, that it would incur debts beyond its ability to pay as they
become due; and (iv) the Depositor was not and will not be insolvent or did not
or will not become insolvent as a result of any Transfer.

                (p)     Each Transfer of the Financed Student Loans (including
all payments due or to become due thereunder) by the Depositor pursuant to this
Agreement is not subject to and will not result in any tax, fee or governmental
charge payable by the Trust or the Depositor to any federal, state or local
government ("Transfer Taxes") except such Transfer Taxes as are paid

                                       -6-

<PAGE>

by the Depositor at the time of Transfer and except UCC filing fees. In the
event that the Trust receives actual notice of any unpaid Transfer Taxes arising
out of the Transfer of the Financed Student Loans, on written demand by the
Trust, or upon the Depositor otherwise being given notice thereof, the Depositor
shall pay, and otherwise indemnify and hold the Trust harmless therefor. The
Depositor shall not be responsible for the Trust's income taxes, if any.

                (q)     The Depositor has conducted or caused to be conducted on
its behalf a reasonable investigation of sufficient scope and content to enable
it to make in good faith the representations and warranties contained in this
Agreement.

                                   ARTICLE IV

                      REPRESENTATIONS AND WARRANTIES OF THE
                     TRUST AND TRUST ELIGIBLE LENDER TRUSTEE

        Each of the Trust and the Trust Eligible Lender Trustee, as applicable,
hereby represents and warrants to the Depositor that, as of the date of this
Agreement:

        4.01    Formation and Authority. The Trust is a business trust validly
created under the laws of the State of Delaware, and had at all relevant times
and has all requisite power and authority under the Trust Agreement to enter
into this Agreement and perform its obligations hereunder. The Trust Eligible
Lender Trustee is an Ohio banking corporation, duly formed and validly existing
under the laws of the State of Ohio, and had at all relevant times and has all
requisite power and authority to enter into this Agreement and perform its
obligations hereunder. The Trust Eligible Lender Trustee was at all relevant
times and is an "eligible lender" under the provisions of the Higher Education
Act.

        4.02    Execution, Delivery; Valid and Binding Agreement. The
authorization, execution and delivery of this Agreement, the consummation of the
transactions herein contemplated and compliance with the terms, conditions and
provisions of this Agreement do not and will not conflict with or result in a
breach of any of the terms, conditions or provisions of any agreement or
instrument to which either the Trust or the Trust Eligible Lender Trustee is a
party or by which either is bound or constitute a default thereunder; neither
the Trust nor the Trust Eligible Lender Trustee is a party to or bound by any
agreement or instrument or subject to any charter or other corporation
restriction or judgment, order, writ, injunction, decree, law, rule or
regulation which may materially and adversely affect the ability of either the
Trust or the Trust Eligible Lender Trustee to perform its respective obligations
under this Agreement. This Agreement constitutes a valid and binding obligation
of each of the Trust and the Trust Eligible Lender Trustee enforceable against
such party in accordance with its terms, subject to the effects of bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance and other similar
laws relating to or affecting creditors' rights generally and court decisions
with respect thereto, and no consent, approval or authorization is required in
connection with the consummation of the transactions herein contemplated, except
for those that have been obtained.

                                       -7-

<PAGE>

                                    ARTICLE V

                             COVENANTS OF DEPOSITOR

        The Depositor covenants and agrees with the Trust as follows:

        5.01    Regarding Closing Conditions. The Depositor shall take all
commercially reasonable actions necessary to cause the conditions applicable to
itself and the Trust set forth in Section 7.01 to be satisfied and to consummate
the transactions contemplated herein as soon as reasonably possible after the
satisfaction thereof.

        5.02    Regarding the Higher Education Act. The Depositor shall, both
before and after each Closing Date, take all such action, or refrain from taking
such action, to the extent necessary and reasonable to be taken or not taken by
the Depositor in its capacity as assignor in order to comply with the
requirements of the Higher Education Act, so that the receipt of Special
Allowance Payments and Interest Subsidy Payments, if applicable, with respect to
Financed Student Loans will not be adversely affected.

        5.03    Regarding Perfection of Security Interest in Financed Student
Loans. The Depositor shall furnish and file, and shall cause the Depositor
Eligible Lender Trustee to furnish and file, if appropriate, any document
reasonably requested by the Trust to perfect the Trust's and the Trust Eligible
Lender Trustee's ownership interest in the Financed Student Loans.

        5.04    Conditions Precedent to Repurchase Obligation. At the request of
either the Trust or the Trust Eligible Lender Trustee, the Depositor shall
repurchase, or, shall cause the Depositor Eligible Lender Trustee, as
applicable, to repurchase, pursuant to the terms set forth in Section 5.05, each
Financed Student Loan with respect to which:

                (a)     Any representation or warranty contained in Section 3.04
shall prove to be materially incorrect;

                (b)     The Secretary or a Guarantee Agency, as the case may be,
refuses to honor all or part of a claim filed with respect to a Financed Student
Loan, including any claim for Interest Subsidy Payments, Special Allowance
Payments, insurance, reinsurance or Guarantee Payments due to any circumstance
or event that occurred prior to the Transfer of such Financed Student Loan to
the Trust; or

                (c)     On account of any wrongful or negligent act or omission
of the Depositor or the Depositor Eligible Lender Trustee, the originating
lender or its or their servicing agents, as the case may be, that occurred prior
to the Transfer of a Financed Student Loan to the Trust, a defense that makes
the Financed Student Loan unenforceable is asserted by a student borrower, maker
or endorser, if any, of the Financed Student Loan with respect to his or her
obligation to pay all or any of such Financed Student Loan.

        5.05    Repurchase by Depositor. Upon the occurrence of any of the
conditions set forth in Section 5.04 and upon the request of the Trust or any
permitted assignee thereof under Section 10.05, the Depositor shall pay, or
cause to be paid, to the Trust an amount equal to the same percentage of the
then-outstanding Principal Balance of such Financed Student Loan as the

                                       -8-

<PAGE>

Depositor originally paid in the Purchase Price for such Financed Student Loan,
plus interest and Special Allowance Payments accrued and unpaid with respect to
such Financed Student Loan from the applicable Closing Date to and including the
date of repurchase, plus any attorneys' fees, legal expenses, court costs,
servicing fees or other expenses incurred by the Trust or the appropriate
successors or assigns in connection with such Financed Student Loan and arising
out of the reasons for the repurchase. With respect to any Financed Student Loan
repurchased by the Depositor pursuant to this Agreement, the Trust Eligible
Lender Trustee shall transfer, without recourse, representation or warranty, to
the Depositor Eligible Lender Trustee, on behalf of Depositor all of Trust's and
the Trust Eligible Lender Trustee's right, title and interest in and to such
Financed Student Loan, and all security and documents relating thereto.

        5.06    Regarding Tax Matters. The Depositor shall be responsible for
all taxes attributable to the ownership of the Transferred Assets for all
periods prior to the applicable Closing Date.

                                   ARTICLE VI

                         COVENANTS OF THE TRUST AND THE
                          TRUST ELIGIBLE LENDER TRUSTEE

        Each of the Trust and the Trust Eligible Lender Trustee covenants and
agrees with the Depositor as follows:

        6.01    Regarding Closing Conditions. Each of the Trust and the Trust
Eligible Lender Trustee shall take all commercially reasonable actions necessary
to cause the conditions applicable to itself set forth in Section 7.01 to be
satisfied and to consummate the transactions contemplated herein as soon as
reasonably possible after the satisfaction thereof.

        6.02    Regarding the Higher Education Act and the Financed Student
Loans. Each of the Trust and the Trust Eligible Lender Trustee shall, both
before and after each Closing Date, take all such action, or refrain from taking
such action, as is necessary to comply with the requirements of the Higher
Education Act, so that the receipt of Special Allowance Payments and Interest
Subsidy Payments, if applicable, with respect to the Financed Student Loans will
not be adversely affected.

        6.03    Regarding Tax Matters. The Trust shall be responsible for the
payment of all taxes attributable to the ownership of the Transferred Assets for
all periods after the applicable Closing Date; provided, however, that the Trust
shall be responsible for the payment of such taxes only from the Transferred
Assets.

        6.04    Restrictions Regarding Bankruptcy. Neither the Trust nor the
Trust Eligible Lender Trustee shall, for any reason, institute proceedings for
the Depositor to be adjudicated as bankrupt or insolvent, or consent to the
institution of bankruptcy or insolvency proceedings against the Depositor, or
file a petition seeking or consenting to reorganization or relief under any
applicable federal or state law relating to the bankruptcy of the Depositor, or
consent to the

                                       -9-

<PAGE>

appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other
similar official) of the Depositor or a substantial part of the property of the
Depositor or cause or permit the Depositor to make any assignment for the
benefit of creditors, or admit in writing the inability of the Depositor to pay
its debts generally as they become due, or declare or effect a moratorium on the
debt of the Depositor or take any action in furtherance of any such action.

                                   ARTICLE VII

                              CONDITIONS TO CLOSING

        7.01    Conditions to Closing. The obligation of each party to
consummate the transactions contemplated by this Agreement is subject to the
satisfaction of the following conditions on or before each Closing Date:

                (a)     The respective representations and warranties of the
Depositor, the Depositor Eligible Lender Trustee, the Trust and the Trust
Eligible Lender Trustee set forth in Articles III and IV hereof, respectively,
shall be true and correct in all material respects at and as of the applicable
Closing Date as though then made, except that any such representation or
warranty made as of a specified date (other than the date hereof) shall only
need to have been true on and as of such date;

                (b)     Each party shall have performed in all material respects
all of the covenants and agreements required to be performed and complied with
by it under this Agreement prior to the applicable Closing Date;

                (c)     Each party shall have obtained, or caused to be
obtained, each consent and approval required in order to complete the
transactions contemplated hereby including, without limitation, rating agency
confirmations;

                (d)     There shall not be threatened, instituted or pending any
action or proceeding, before any court or governmental authority or agency,
domestic or foreign, challenging or seeking to make illegal, or to delay or
otherwise directly or indirectly restrain or prohibit, the consummation of the
transactions contemplated hereby or seeking to obtain material damages in
connection with such transactions;

                (e)     On the applicable Closing Date, the Depositor shall have
received from the Trust the Purchase Price in immediately available funds;

                (f)     On the Initial Closing Date or each Subsequent Closing
Date, as applicable, the Depositor, the Depositor Eligible Lender Trustee, the
Trust or the Trust Eligible Lender Trustee, as applicable (and any other parties
to each of the following agreements or instruments), shall have executed and
delivered the following to the applicable parties, together with the execution
and delivery of this Agreement (provided, however, that this Agreement shall be
deem delivered immediately prior to, but nevertheless subject to, the delivery
of the following agreements or instruments):

                                      -10-

<PAGE>

                        (1)     On the Initial Closing Date, an executed
                                original Administration Agreement between the
                                Trust and the Administrator, or, if previously
                                delivered, a confirmation thereof;

                        (2)     On the Initial Closing Date, an executed
                                original Servicing Agreement between the Trust
                                and the Servicer, or, if previously delivered, a
                                confirmation thereof;

                        (3)     On the Initial Closing Date and each Subsequent
                                Closing Date, bills of sale, blanket
                                endorsements and such other instruments of
                                transfer, assignment and delivery as each of the
                                Trust and the Trust Eligible Lender Trustee
                                shall have reasonably requested pursuant to
                                Section 2.02;

                        (4)     On the Initial Closing Date and each Subsequent
                                Closing Date, a certificate of an appropriate
                                officer of the Depositor and the Depositor
                                Eligible Lender Trustee, dated the applicable
                                Closing Date, stating that the conditions set
                                forth in subsections 7.01 (b) and (c) to be
                                satisfied by the Depositor and the Depositor
                                Eligible Lender Trustee, respectively, have been
                                satisfied; and

                        (5)     On the Initial Closing Date, (a) legal opinions,
                                in form and substance satisfactory to the
                                parties listed in subsection 7.01(a) and their
                                counsel, with respect to the organization and
                                authority of the Depositor and Trust and such
                                other matters as such counsel may reasonably
                                require and (b) such other opinions, documents,
                                instruments and agreements as Thompson Hine LLP,
                                the Trust or the Trust Eligible Lender Trustee,
                                or their respective counsels, may request.

                                  ARTICLE VIII

                                   TERMINATION

        8.01    Termination. This Agreement may be terminated at any time:

                (a)     by the mutual consent of the Depositor and the Trust; or

                (b)     by either the Depositor or the Trust if there has been a
material misrepresentation, breach of warranty or breach of covenant on the part
of the other in the representations, warranties and covenants set forth in this
Agreement.

        8.02    Effect of Termination. In the event of termination of this
Agreement by either the Depositor or the Trust as provided in Section 8.01,

                                      -11-

<PAGE>

                (a)     if such termination occurs prior to the Initial Closing
Date, this Agreement shall become void and there shall be no liability on the
part of the Depositor or the Trust, or their respective employees, officers,
directors, members or trustees, except that Sections 7.01, 9.01. 9.01, 9.03,
10.01 and 10.09 hereof shall survive indefinitely, and except with respect to
willful breaches of this Agreement prior to the time of such termination; and

                (b)     if such termination occurs after to the Initial Closing
Date, this Agreement shall become void and there shall be no liability on the
part of the Depositor or the Trust, or their respective employees, officers,
directors, members or trustees, except that Sections 3.04, 5.04, 5.05, 7.01,
10.01 and 10.09 hereof shall survive indefinitely, and except with respect to
willful breaches of this Agreement prior to the time of such termination.

                                   ARTICLE IX

                                 INDEMNIFICATION

        9.01    Indemnification by the Depositor. The Depositor agrees to
indemnify the Trust and its employees, officers, directors, members and trustees
(the "Trust Indemnified Parties") with respect to, and hold the Trust
Indemnified Parties harmless from, any loss, liability or expense (including,
but not limited to, reasonable legal fees) which the Trust Indemnified Parties
may directly or indirectly incur or suffer by reason of, or which results,
arises out of or is based upon the failure of the Depositor to comply with any
covenants or other commitments made by the Depositor in this Agreement or any
other agreement or document delivered by the Depositor in connection herewith.

        9.02    Indemnification by the Trust. The Trust agrees to indemnify the
Depositor and its officers, directors, employees and trustees (the "Depositor
Indemnified Parties") with respect to, and hold the Depositor Indemnified
Parties harmless from, any loss, liability or expense (including, but not
limited to, reasonable legal fees) which the Depositor Indemnified Parties may
directly or indirectly incur or suffer by reason of, or which results, arises
out of or is based upon the failure of the Trust to comply with any covenants or
other commitments made by the Trust in this Agreement or any other agreement or
document delivered by the Trust in connection herewith.

        9.03    Legal Proceedings. In the event the Depositor or the Trust
becomes involved in any legal, governmental or administrative proceeding which
may result in indemnification claims hereunder, such party shall promptly notify
the other party against whom indemnity may be sought (the "Indemnifying Party")
in writing and in full detail of the filing, and of the nature of such
proceeding. The Indemnifying Party may, at its option and expense, defend any
such proceeding if the proceeding could give rise to an indemnification
obligation hereunder. If the Indemnifying Party elects to defend any proceeding,
it shall have full control over the conduct of such proceeding, although each
party being indemnified shall have the right to retain legal counsel at its own
expense and shall have the right to approve any settlement of any dispute giving
rise to such proceeding, provided that such approval may not be withheld
unreasonably by the party being indemnified. The party being indemnified shall
reasonably cooperate with the Indemnifying Party in such proceeding.

                                      -12-

<PAGE>

                                    ARTICLE X

                                  MISCELLANEOUS

        10.01   Expenses. Except as otherwise expressly provided for herein,
each party will pay all of its respective expenses incurred (including
attorneys' and accountants' fees) in connection with the negotiation of this
Agreement, the performance of its respective obligations hereunder and the
consummation of the transactions contemplated by this Agreement (whether
consummated or not).

        10.02   Further Assurances. Each of the Depositor, the Depositor
Eligible Lender Trustee, the Trust and the Trust Eligible Lender Trustee agrees
that, on and after each Closing Date, it shall take all appropriate action and
execute any documents, instruments or conveyances of any kind which may be
reasonably necessary or advisable to carry out the transfers of assets and
assumptions of liabilities provided for herein.

        10.03   Amendment and Waiver. This Agreement may be amended in writing
by the parties thereto for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Agreement.

        10.04   Notices. All notices, demands and other communications to be
given or delivered under or by reason of the provisions of this Agreement will
be in writing and will be deemed to have been given when personally delivered or
three business days after being mailed by first class U.S. mail, return receipt
requested, or when receipt is acknowledged, if sent by facsimile, telecopy or
other electronic transmission device. Notices, demands and communications to the
parties will, unless another address is specified in writing, be sent to the
address indicated below:

                Notices to the Depositor: Education Funding Capital I, LLC
                                          Six East Fourth Street, Suite 300-A
                                          Cincinnati, Ohio 45202
                                          Attention: Perry D. Moore

                Notices to the Trust:     c/o Fifth Third Bank
                                          38 Fountain Square Plaza
                                          MD 10/AT6
                                          Cincinnati, Ohio  45263
                                          Attention: Brian J. Gardner

                with copies of all
                 notices to:              Thompson Hine LLP
                                          312 Walnut Street, Suite 1400
                                          Cincinnati, Ohio 45202-4029
                                          Attention: Patricia Mann Smitson, Esq.

        10.05   Assignment. This Agreement and all of the provisions hereof will
be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted

                                      -13-

<PAGE>

assigns, except that neither this Agreement nor any of the rights, interests or
obligations hereunder may be assigned by any party hereto without the prior
written consent of the other parties hereto; provided, however, that the Trust
may assign its rights under this Agreement to the Indenture Trustee, as such
party is identified in, and in connection with the transactions contemplated by,
the Indenture.

        10.06   Severability. Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision will be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of this Agreement.

        10.07   Complete Agreement. This Agreement and the documents referred to
herein contain the complete agreement between the parties and supersede any
prior understandings, agreements or representations by or between the parties,
written or oral, which may have related to the subject matter hereof in any way.

        10.08   Counterparts. This Agreement may be executed in one or more
counterparts, any one of which need not contain the signatures of more than one
party, but all such counterparts taken together will constitute one and the same
instrument.

        10.09   Governing Law. The law, without regard to conflicts of laws
principles, of the State of Ohio will govern all questions concerning the
construction, validity and interpretation of this Agreement and the performance
of the obligations imposed by this Agreement.

                  [Remainder of page intentionally left blank]

                                      -14-

<PAGE>

        IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
on the day, month and year first above written.

EDUCATION FUNDING CAPITAL I, LLC        FIFTH THIRD BANK
 a Delaware limited liability company    an Ohio banking corporation
 ("Depositor")                           not in its individual capacity, but
                                         solely as eligible lender trustee on
                                         behalf of the Depositor
                                         ("Depositor Eligible Lender Trustee")

By:    /s/ Perry D. Moore               By:    /s/ Brian J. Gardner
   ----------------------------------      -----------------------------------
Title: Senior Vice President -          Title: AVP & SR. TRUST OFFICER
       Finance                                --------------------------------

EDUCATION FUNDING CAPITAL TRUST-II      FIFTH THIRD BANK,
 By: FIFTH THIRD BANK                    an Ohio banking corporation
 not in its individual capacity,         not in its individual capacity, but
 but solely as Co-Owner Trustee          solely as eligible lender trustee on
 of EDUCATION FUNDING CAPITAL            behalf of EDUCATION FUNDING CAPITAL
 TRUST-II                                TRUST-II
 ("Trust")                               ("Trust Eligible Lender Trustee")

By:    /s/ Brian J. Gardner             By:    /s/ Brian J. Gardner
   ----------------------------------      -----------------------------------
Title: AVP & SR. TRUST OFFICER          Title: AVP & SR. TRUST OFFICER
      -------------------------------         --------------------------------

<PAGE>

                                   APPENDIX A
                                       to
                     Depositor Transfer and Sale Agreement,
                            dated as of April 1, 2003

                              DEFINITIONS AND USAGE

                                      Usage

        The following rules of construction and usage shall be applicable to any
instrument that is governed by this Appendix:

        (a) All terms defined in this Appendix shall have the defined meanings
when used in any instrument governed hereby and in any certificate or other
document made or delivered pursuant thereto unless otherwise defined therein.

        (b) The words "hereof," "herein," "hereunder" and words of similar
import when used in an instrument refer to such instrument as a whole and not to
any particular provision or subdivision thereof; references in an instrument to
"Article," "Section" or another subdivision or to an attachment are, unless the
context otherwise requires, to an article, section or subdivision of or an
attachment to such instrument; and the term "including" means "including without
limitation."

        (c) The definitions contained in this Appendix are equally applicable to
both the singular and plural forms, as well as to past, present and future tense
of such terms and to the masculine as well as to the feminine and neuter genders
of such terms.

        (d) Any agreement, instrument or statute defined or referred to below or
in any agreement or instrument that is governed by this Appendix means such
agreement or instrument or statute as from time to time amended, modified or
supplemented, including (in the case of agreements or instruments) by waiver or
consent and (in the case of statutes) by succession of comparable successor
statutes and includes (in the case of agreements or instruments) references to
all attachments thereto and instruments incorporated therein.

                                   Definitions

        "Administration Agreement" shall mean the Administration Agreement,
dated as of April 1, 2003 between the Administrator and the Trust, as amended or
restated from time to time.

        "Administrator" shall mean Education Lending Services, Inc. in its
capacity as Administrator of the Trust, or any successor thereto as permitted by
the Administration Agreement.

                                       A-1

<PAGE>

        "Appendix D" shall mean Appendix D-1 with respect to the Initial Closing
Date and an additional Appendix D, sequentially numbered in ascending order
beginning with Appendix D-2 on the first Subsequent Closing Date, with respect
to each Subsequent Closing Date, collectively referred to herein as Appendix D.

        "Co-Owner Trustee" shall mean Fifth Third Bank, not in its individual
capacity but solely as co-owner trustee of the Trust, and its successors and
assigns.

        "Depositor" shall mean Education Funding Capital I, LLC, a limited
liability company formed under the laws of the State of Delaware, and its
successors and assigns.

        "Depositor Eligible Lender Trust Agreement" shall mean the Eligible
Lender Trust Agreement, dated as of May 1, 2002, between Depositor and the
Depositor Eligible Lender Trustee, not in its individual capacity, but solely in
its capacity as eligible lender trustee on behalf of the Depositor, and its
successor and assigns, as amended or restated from time to time.

        "Depositor Eligible Lender Trustee" shall mean Fifth Third Bank, not in
its individual capacity, but solely in its capacity as eligible lender trustee
on behalf of the Depositor under the Depositor Eligible Lender Trust Agreement,
and its successor and assigns.

        "ELG Transfer Agreement" shall mean that certain Transfer and Sale
Agreement, dated as of April 1, 2003 by and among Education Lending Group, Inc.
("Education Lending Group"), Fifth Third Bank, not in its individual capacity
but solely as Eligible Lender Trustee on behalf of Education Lending Group, the
Depositor and the Depositor Eligible Lender Trustee.

        "ELS" shall mean Education Lending Services, Inc., a corporation formed
under the laws of Delaware, and its successors and assigns.

        "Financed Student Loans" shall mean, collectively, the student loans
identified by the lender identification numbers, portfolio numbers or other
identifying numbers described in the applicable Appendix D hereto.

        "Guarantee" or "Guaranteed" shall mean, with respect to a Financed
Student Loan, the guarantee by the Guarantee Agency, pursuant to such Guaranty
Agency's Guarantee Agreement, of the maximum percentage of the principal of and
accrued interest on such Financed Student Loan allowed by terms of the Higher
Education Act with respect to such Financed Student Loans at the time it was
originated and the coverage of such Financed Student Loan by the federal
reimbursement contracts, providing, among other things, for reimbursement to the
Guarantee Agency for losses incurred by it on defaulted Financed Student Loans
guaranteed by it of at least the minimum reimbursement allowed by the Higher
Education Act with respect to a particular Financed Student Loan.

        "Guarantee Agency" shall mean any entity authorized to guaranty student
loans under the Higher Education Act and with which the Depositor Eligible
Lender Trustee or the Trust Eligible Lender Trustee maintains a Guarantee
Agreement.

        "Guarantee Agreement" shall mean an agreement between a Guarantee Agency
and either the Depositor Eligible Lender Trustee or the Trust Eligible Lender
Trustee providing for

                                       A-2

<PAGE>

the Guarantee by such Guarantee Agency of the principal of and accrued interest
on the Financed Student Loans.

        "Guarantee Program" shall mean a Guarantee Agency's student loan
guaranty program pursuant to which such Guarantee Agency guarantees or insures
student loans.

        "Higher Education Act" shall mean Title IV, Part B of the Higher
Education Act of 1965, as amended, or any successor federal act, and all
regulations, directives and guidelines promulgated thereunder from time to time.

        "Indenture" shall mean the Indenture of Trust dated as of April 1, 2003
among the Trust, the Indenture Trustee, and the Trust Eligible Lender Trustee on
behalf of the Trust.

        "Indenture Trustee" shall mean Fifth Third Bank, not in its individual
capacity but solely as indenture trustee under the Indenture.

        "Interest Subsidy Payments" shall mean payments, designated as such,
consisting of interest subsidies by the Department of Education in respect of
Financed Student Loans originated under the Higher Education Act to the Trust
Eligible Lender Trustee on behalf of the Trust in accordance with the Higher
Education Act.

        "Master Promissory Note" shall mean a Master Promissory Note in the form
mandated by Section 432(m)(1)(D) of the Higher Education Act.

        "Principal Balance" shall mean the aggregate unpaid principal balance of
the Financed Student Loans as set forth in the applicable Appendix D.

        "Purchase Agreements" shall mean the ELG Transfer Agreement, in each
case as from time to time amended or supplemented in accordance with the terms
thereof, and in each case only to the extent that each such Purchase Agreement
covers Financed Student Loans.

        "Purchase Price" shall mean the amount of cash consideration totaling
the outstanding principal balance, accrued interest and premium with respect to
the Financed Student Loans as set forth in the applicable Appendix D; provided
however that the amount of premium paid will not exceed the amount of premium
reflected in the most recent cash flows approved by the rating agencies.

        "Secretary" shall mean the Secretary of the United States Department of
Education, an agency of the federal government, or any successor to the
functions thereof under the Higher Education Act.

        "Servicer" shall mean ELS, in its capacity as Servicer of the Financed
Student Loans, or any permitted successor Servicer under the Servicing
Agreement.

        "Servicing Agreement" shall mean the Servicing Agreement, dated as of
April 1, 2003 between the Servicer and the Trust, as amended or restated from
time to time.

                                       A-3

<PAGE>

        "Special Allowance Payments" shall mean payments, designated as such,
consisting of effective interest subsidies by the Department of Education to the
Trust Eligible Lender Trustee in accordance with the Higher Education Act in
respect of the Financed Student Loans originated under the Act.

        "Subservicer" shall mean Great Lakes Educational Loan Services, Inc. or
ACS Education Loan Services, Inc., in its capacity as Subservicer of the
Financed Student Loans, and/or any permitted Subservicer, under the Servicing
Agreement.

        "Transfer" shall mean, and it is the intention of the parties hereto
that it mean, with respect to the Transferred Assets, the sale, transfer,
assignment and conveyance of, or to sell, transfer, assign and convey, the
Transferred Assets, provided, however, that if a court of competent jurisdiction
were to hold that any such sale, transfer, assignment or conveyance were not a
sale, transfer, assignment and conveyance, then with respect to the Transferred
Assets, "Transfer" shall be deemed to mean (i) a conveyance of a valid and
binding lien on and a security interest in, or (ii) to convey a valid and
binding lien on and a security interest in, the Transferred Assets.

        "Transferred Assets" shall mean all rights of the Depositor and
Depositor Eligible Lender Trustee in and to the Financed Student Loans listed on
the applicable Appendix D, including all collections received and to be received
with respect thereto for the period on and after the date of the Transfer, the
Guarantee Agreements with respect thereto and the Purchase Agreements.

        "Trust" shall mean Education Funding Capital Trust-II, the business
trust created under the laws of the State of Delaware by the Trust Agreement.

        "Trust Agreement" shall mean the Trust Agreement, dated as of February
6, 2003 ("Initial Trust Agreement") among the Depositor, Wilmington Trust
Company, as Owner Trustee and Fifth Third Bank as Co-Owner Trustee as
subsequently amended and restated as of April 1, 2003 (the "Amended and Restated
Trust Agreement," together with the Initial Trust Agreement, the "Trust
Agreement") among the Depositor, the Owner Trustee, and the Co-Owner Trustee,
acknowledged and agreed to by the Trust Eligible Lender Trustee, as amended or
restated from time to time.

        "Trust Eligible Lender Trust Agreement" shall mean the Eligible Lender
Trust Agreement, dated as of April 1, 2003, 2003 between the Trust and the Trust
Eligible Lender Trustee, not in its individual capacity, but solely in its
capacity as eligible lender trustee on behalf of the Trust, as amended or
restated from time to time.

                                       A-4

<PAGE>

                                   APPENDIX B
                                       to
                     Depositor Transfer and Sale Agreement,
                            dated as of April 1, 2003

                        FORM OF ADMINISTRATION AGREEMENT

                                       B-1

<PAGE>

                                   APPENDIX C
                                       to
                     Depositor Transfer and Sale Agreement,
                            dated as of April 1, 2003

                           FORM OF SERVICING AGREEMENT

                                       C-1

<PAGE>

                                  APPENDIX D-1
                                       to
                     Depositor Transfer and Sale Agreement,
                            dated as of April 1, 2003

                       SCHEDULE OF FINANCED STUDENT LOANS

<TABLE>
<CAPTION>
                                                                            TOTAL
                   OUTSTANDING PRINCIPAL     ACCRUED                        PURCHASE
STUDENT LOAN             BALANCE             INTEREST         PREMIUM       PRICE
----------------   ---------------------   ------------   ---------------   ----------------
<S>                <C>                     <C>            <C>               <C>

28,236 Borrowers   $      799,614,053.20   $ 278,276.08   $ 19,990,351.33   $ 822,386,680.61*
</TABLE>

*Detailed description of the Financed Student Loans on file with Education
Lending Services, Inc, as Adminstrator.

                                       D-1<PAGE>

                                                                    EXHIBIT 10.9

                                                                  EXECUTION COPY

--------------------------------------------------------------------------------

                            ADMINISTRATION AGREEMENT

                                     between

                        EDUCATION FUNDING CAPITAL I, LLC
                                  as Depositor

                                       and

                        EDUCATION LENDING SERVICES, INC.
                                as Administrator

                            dated as of April 1, 2003

--------------------------------------------------------------------------------

<PAGE>

                                TABLE OF CONTENTS

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

                                        i

<PAGE>

                            ADMINISTRATION AGREEMENT

        THIS ADMINISTRATION AGREEMENT (this "Administration Agreement") is made
as of April 1, 2003 between EDUCATION FUNDING CAPITAL I, LLC, a Delaware limited
liability company (the "Depositor") and EDUCATION LENDING SERVICES, 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 of Trust
dated as of April 1, 2003 (the "Indenture") among Education Funding Capital
Trust-II and Fifth Third Bank, as indenture trustee and Fifth Third Bank, as
trust eligible lender trustee.)

                                    RECITALS

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

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

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

        D.      The Depositor 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 Depositor, 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" shall mean any Person directly or indirectly controlling or
controlled by, or under direct or indirect common control with, the
Administrator or the Depositor. 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.

<PAGE>

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

        Section 2.      Depositor Documents. The Administrator shall cause the
duties and responsibilities of the Depositor under the Depositor Documents to be
performed, including but not limited to the actions set forth below. The
Administrator shall advise the Depositor when action by the Depositor is
necessary to comply with the Depositor's duties under the Depositor Documents
and the agreements relating thereto. The Administrator shall prepare for
execution, if required, by the Depositor 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 Depositor to prepare,
file or deliver pursuant to the Depositor Documents. In furtherance of the
foregoing, the Administrator shall take all appropriate action, including but
not limited to, the following:

        (a)     obtaining and preserving the Depositor's qualification to do
                business in each jurisdiction in which such qualification is or
                shall be necessary to protect the validity and enforceability of
                the Depositor Documents;

        (b)     arranging for the delivery of any opinions of counsel and
                certificates of officers of the Depositor and other statements
                required under the relevant provisions of the Depositor
                Documents;

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

        (d)     taking such actions as may be required of the Depositor under
                the Depositor Documents upon the occurrence and continuance of
                an event of default thereunder;

        (e)     preparing and, after execution by the Depositor, filing with the
                Commission and any applicable State agencies, 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;

        (f)     taking such actions as may be required of the Depositor under
                any agreement between the Depositor and other parties relating
                to the Depositor Documents;

        (g)     pursuant to the Master Servicing Agreement, providing to the
                Master Servicer (or the Master Servicer's bailee) from time to
                time, as necessary, and requiring that the Master Servicer (or
                the Master Servicer's bailee) maintain physical custody and
                possession of, documentation and information relating to Student
                Loans transferred to the Depositor 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

                                        2

<PAGE>

                the Depositor 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 Master Servicer;

        (h)     cause to be paid to the Seller on behalf of the Depositor solely
                from funds of the Depositor all amounts to be paid by the
                Depositor pursuant to the Transfer and Sale Agreements;

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

        (j)     causing to be paid to the Master Servicer on behalf of the
                Depositor solely from funds of the Depositor the Servicing Fee;

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

        (l)     preparing all other documents, reports, filings, instruments,
                certificates and opinions as it is the duty of the Depositor to
                prepare, file or deliver pursuant to the Depositor Documents;
                and

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

        Section 3.      Transfer and Sale Agreements. The Administrator shall
take the actions necessary to cause the duties of the Depositor to be carried
out under the provisions of Transfer and Sale Agreements entered into by the
Depositor. The Administrator also shall enforce the rights of the Depositor
under the applicable provisions of such Transfer and Sale Agreements to require
the Seller to repurchase certain Student Loans that have been transferred to the
Depositor, including but not limited to providing notice to the Master Servicer
of each such repurchase request, endorsing to the Master Servicer each Student
Loan to be repurchased by the Seller and taking all other actions necessary to
enforce the Depositor's rights of recourse against the Seller.

                                        3

<PAGE>

        Section 4.      Other Duties with Respect to the Depositor Documents.

        (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 Depositor 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 Depositor to prepare, file or deliver
pursuant to the Depositor Documents, and shall take all appropriate action that
it is the duty of the Depositor to take pursuant to the Depositor Documents. The
Administrator shall administer, perform or supervise the performance of such
other activities in connection with the Depositor Documents as the Depositor 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,
however, that the terms of any such transactions or dealings shall be, in the
Administrator's opinion, no less favorable to the Depositor than would be
available from unaffiliated parties.

        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 Administrative Services. The Depositor 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 Depositor's existence as a bankruptcy-remote special purpose
entity holding the assets described hereunder, including but not limited to the
following:

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

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

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

                (ii)    maintaining records of deposit accounts of the Depositor
                        established under the Depositor Documents or otherwise,
                        authorizing withdrawals from such accounts on behalf of
                        the Depositor and taking all other actions on behalf of
                        the Depositor as may be necessary with respect to such
                        accounts;

                                        4

<PAGE>

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

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

                (v)     holding, maintaining and preserving executed copies of
                        the Depositor Documents (to the extent applicable) and
                        other documents or instruments executed by the Depositor
                        thereunder or in connection therewith;

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

                (vii)   facilitating the annual audit of the financial
                        statements of the Depositor; 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 Depositor in carrying out the investment and
                reinvestment of the funds of the Depositor in accordance with
                the investment policies adopted by the Depositor from time to
                time;

        (d)     preparing or updating any offering memorandum in connection with
                the performance by the Depositor through the Administrator of
                its obligations under the Depositor Documents or other documents
                executed thereunder or in connection therewith; and

        (e)     undertaking such other administrative services as may be
                required by the Depositor.

        If the Administrator or the Depositor 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 Depositor in accordance with Section
10 hereof.

                                        5

<PAGE>

        Section 7.      Exceptions. Notwithstanding anything to the contrary in
this Administration Agreement, the Administrator shall not be obligated to, and
shall not take any action that the Depositor directs the Administrator not to
take on the Depositor's behalf.

        Section 8.      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.

        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 Depositor, all for the compensation
provided in Section 10 hereof.

        Section 9.      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 Depositor
of the proposed action and the Depositor shall not have withheld consent or
provided an alternative direction. For the purpose of the preceding sentence,
"non-ministerial matters" shall include:

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

        (b)     the amendment, change or modification of the Depositor
                Documents;

        Section 10.     Compensation. Subject to Section 4.07 of the Indenture,
on each Payment Date, the Depositor shall pay to the Administrator, as
compensation for its services specified hereunder, a fee in the amount of 0.01%
(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 Depositor requests
the Administrator to perform any additional services not specified hereunder,
the Depositor shall pay the Administrator such additional fees in respect
thereof as shall be agreed to by the Depositor and the Administrator. The
Depositor 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 Depositor to the Administrator on the
next succeeding Payment Date. In addition, to the extent that any officers of
the Depositor are also officers of the Administrator, the Depositor shall also
pay to the Administrator a management fee in order for the Administrator to
compensate such officers for their services for the Depositor.

        The Depositor and the Administrator agree that payments to the
Administrator shall be made out of the general funds of the Depositor and not
out of any funds held under the Indenture.

                                        6

<PAGE>

        Section 11.     Representations and Warranties of the Depositor. The
Depositor makes the following representations:

        (a)     Organization and Good Standing. The Depositor is duly organized
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 Depositor 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 Depositor by all necessary action.

        (c)     Binding Obligation. This Administration Agreement constitutes a
legal, valid and binding obligation of the Depositor 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 Violation. The consummation of the transactions contemplated
by this Administration Agreement and the fulfillment of the terms hereof or
thereof do not conflict with, result in any breach of any of the terms and
provisions of, nor constitute (with or without notice or lapse of time or both)
a default under, the Certificate of Formation or the Limited Liability Company
Agreement of the Depositor, or any indenture, agreement or other instrument to
which the Depositor is a party or by which it or its properties are bound; nor
result in the creation or imposition of any lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument; nor
violate any law or, to the knowledge of the Depositor, any order, rule or
regulation applicable to the Depositor of any court or of any federal or state
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Depositor or its properties.

        (e)     No Proceedings. There are no proceedings or investigations
pending against the Depositor or, to its best knowledge, threatened against the
Depositor, before any court, regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Depositor 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 Depositor of its obligations under, or the validity or
enforceability of, this Administration Agreement.

        (f)     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 Depositor in connection with the execution
and delivery by the Depositor of this Administration Agreement and the
performance by

                                        7

<PAGE>

the Depositor of the transactions contemplated by this Administration Agreement
have been duly obtained, effected or given and are in full force and effect.

        Section 12.     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 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
corporate 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 applicable bankruptcy, insolvency,
reorganization and similar laws relating to creditors' rights generally and
subject to general principles of equity.

        (d)     No Violation. The consummation of the transactions contemplated
by this Administration Agreement and the fulfillment of the terms hereof or
thereof do not conflict with, result in any breach of any of the terms and
provisions of, nor constitute (with or without notice or lapse of time or both)
a default under, the Articles of Incorporation or By-laws of the Administrator,
or any indenture, agreement or other instrument to which the Administrator is a
party or by which it or its properties are bound; nor result in the creation or
imposition of any lien upon any of its properties pursuant to the terms of any
such indenture, agreement or other instrument; nor violate any law or, to the
knowledge of the Administrator, any order, rule or regulation applicable to the
Administrator of any court or of any federal or state regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Administrator or its properties.

        (e)     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.

        (f)     All Consents. All authorizations, consents, orders or approvals
of or registrations or declarations with any court, regulatory body,
administrative agency or other governmental

                                        8

<PAGE>

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 13.     Term. Subject to the terms hereof, the Administrator may
resign at any time. The Administrator or the Depositor may terminate this
Administration Agreement upon at least 45 days' written notice to the other
party.

        Section 14.     Obligation to Supply Information. The Depositor shall
prepare and supply, or cause the other parties to the Depositor Documents to
prepare and supply, the Administrator with such information regarding the
performance of the Depositor Documents as the Administrator may from time to
time reasonably request in connection with the performance of its obligations
hereunder.

        Section 15.     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
Depositor, and any of the officers, directors, employees and agents of the
Depositor, 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 Depositor 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
Depositor 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 Depositor after it
has assumed such defense.

        For purposes of this Section 15, in the event of the termination of the
rights and obligations of the Administrator (or any successor thereto pursuant
to Section 18 hereof) pursuant to Section 13 hereof or the resignation by such
Administrator pursuant to this Administration Agreement, unless the Depositor
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 18 hereof.

        Indemnification under this Section 15 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 15 and the Depositor thereafter collects any
of such amounts from others, the Depositor promptly shall repay such amounts to
the Administrator, without interest.

                                        9

<PAGE>

        Neither the Administrator nor any of its directors, officers, employees
or agents shall be under any liability to the Depositor 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, however, 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.

        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, however, that the
Administrator may undertake any reasonable action that it may deem necessary or
desirable in respect of this Administration Agreement, the Depositor Documents
and the rights and duties of the parties to this Administration Agreement and
the Depositor Documents.

        Section 16.     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) that may result from any merger or
consolidation to which the Administrator shall be a party or (c) that may
succeed to the properties and assets of the Administrator substantially as a
whole, shall be the successor to the Administrator without the execution or
filing of any documents or any further act by any of the parties to this
Administration Agreement; provided, however, that the Administrator hereby
covenants that, if the surviving Administrator is other than Education Lending
Services, 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 and (ii) immediately after
giving effect to such transaction, no representation or warranty made pursuant
to Section 12 hereof has been breached and no Administrator Default (as defined
in Section 17 hereof), and no event that, after notice or lapse of time, or
both, would become an Administrator Default has occurred and is continuing.
Anything in this Section 16 to the contrary notwithstanding, the Administrator
may at any time assign its rights, obligations and duties under this
Administration Agreement to an Affiliate.

        Section 17.     Administrator Default. The occurrence and continuance of
any one of the following events shall constitute an "Administrator Default":

        (a)     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 30 days after the
                date on which written notice of such failure has been given to
                the Administrator by the Depositor;

                                       10

<PAGE>

        (b)     (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
                17(c) hereof or (vii) taking any action in furtherance of any of
                the foregoing purposes; or

        (c)     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 17(b)(v) hereof
                against the Administrator, which appointment continues
                undischarged or which proceeding continues undismissed or
                unstayed for a period of 60 or more days.

        In the case of any Administrator Default, so long as such Administrator
Default has not been remedied, the Depositor 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 15 hereof) of the
Administrator under this Administration Agreement. 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 Depositor or shall pass to and be vested in such successor
Administrator as may be appointed under Section 18 hereof; and, without
limitation, the Depositor 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
17 shall be paid by the predecessor Administrator upon presentation of
reasonable documentation of such costs and expenses.

                                       11

<PAGE>

        Section 18.     Appointment of Successor.

        (a)     Upon receipt by the Administrator of notice of termination
pursuant to Section 13 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
Depositor. In the event of the termination or resignation hereunder of the
Administrator, the Depositor 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 Depositor, and all of the
rights granted to the predecessor Administrator by the terms and provisions of
this Administration Agreement.

        Section 19.     Reliance on Information Obtained from Third Parties. The
Depositor 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 Depositor 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 that may result therefrom.

        Section 20.     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 20. Unless otherwise specified in
a notice sent or delivered in accordance with the foregoing provisions of this
Section 20, 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:

                                       12

<PAGE>

                The Depositor:
                                  Education Funding Capital I, LLC
                                  6 East Fourth Street
                                  Suite 300A
                                  Cincinnati, Ohio 45202
                                  Attention: Michael Shaut

                The Administrator:
                                  Education Lending Services, Inc.
                                  6 East Fourth Street
                                  Suite 300
                                  Cincinnati, Ohio 45202
                                  Attention: Perry Moore

        Section 21.     Amendment. This Administration Agreement may be amended
in writing by the Administrator and the Depositor.

        Section 22.     Assignment. Except as provided in Section 16 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.

        Section 23.     Independence of Administrator. For all purposes of this
Administration Agreement, the Administrator shall be an independent contractor.
Unless expressly authorized by the Depositor, the Administrator shall have no
authority to act for or represent the Depositor in any way and shall not
otherwise be deemed an agent of the Depositor.

        Section 24.     No Joint Venture. Nothing contained in this
Administration Agreement shall constitute the Depositor 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 25.     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 Depositor.

        Section 26.     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
Depositor, 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
Depositor's affairs or appointing a receiver, liquidator, trustee, or other
similar official, of the Depositor or any substantial part of its property,

                                       13

<PAGE>

for one year and a day after the termination of this Administration Agreement.
This Section 26 shall survive the termination of this Administration Agreement.

        Section 27.     Limited Recourse. Notwithstanding anything to the
contrary contained herein, the obligations of the Depositor hereunder shall not
be recourse to the Depositor (or any Person acting on behalf of the Depositor or
any affiliate, officer or director of the Depositor), other than to (a) any
assets of the Depositor not pledged to third parties or otherwise encumbered in
a manner permitted by the Depositor's Certificate of Formation and the Limited
Liability Company Agreement. The Administrator agrees that to the extent such
funds are insufficient or unavailable to pay any amounts owing to the
Administrator from the Depositor pursuant to this Administration Agreement, it
shall not constitute a claim against the Depositor.

        Section 28.     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 29.     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 30.     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 Depositor 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 31.     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]

                                       14

<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 I, LLC

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

                                     EDUCATION LENDING SERVICES, INC.,
                                     as Administrator

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}]]