Document:

<PAGE>

                                                                    Exhibit 10.3

                                                                  EXECUTION COPY

                      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-I
                            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-I
                 under the Trust Eligible Lender Trust Agreement

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

                             dated as of May 1, 2002

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

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                                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 ..................................................  3
  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

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<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
</TABLE>

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

                                      -ii-

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                      DEPOSITOR TRANSFER AND SALE AGREEMENT

     This DEPOSITOR TRANSFER AND SALE AGREEMENT (this "Agreement"), dated as of
May 1, 2002, 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-I, a
Delaware business 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 May 1,
2002 (the "Indenture") among the Trust, Fifth Third Bank, as indenture trustee,
and the Trust Eligible Lender Trustee on behalf of the Trust; and

     B.   The Depositor has heretofore created the Trust pursuant to the Trust
Agreement dated as of May 9, 2002, as amended and restated by the Amended and
Restated Trust Agreement dated as of May 9, 2002, 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 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 Trust to the Depositor and the Depositor Eligible Lender
Trustee for the Transfer of the Transferred Assets shall be payment of the
Purchase Price.

     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 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.

                                      -2-

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                                   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 May 23, 2002 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, Grad Partners and the Trust shall execute and deliver the Administration
Agreement, providing for certain administrative services to be performed by Grad
Partners 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, Grad Partners and the Trust shall execute and deliver the Servicing
Agreement, providing for Grad Partners 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

     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

                                      -3-

<PAGE>

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.

            (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 which can be asserted and
maintained or which, with notice, lapse of time, or the

                                      -4-

<PAGE>

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.

            (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.

                                      -5-

<PAGE>

          (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 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.

                                      -6-

<PAGE>

          (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 applicable Closing Date, 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)  An executed original Administration Agreement between
                         the Trust and the Administrator, or, if previously
                         delivered, a confirmation thereof;

                    (2)  An executed original Servicing Agreement between the
                         Trust and the Servicer, or, if previously delivered, a
                         confirmation thereof;

                    (3)  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)  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)  (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,

          (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

                                      -11-

<PAGE>

          (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: Michael H. Shaut

           Notices to the Trust:          Fifth Third Bank
                                          38 Fountain Square Plaza
                                          MD 10AT60
                                          Cincinnati, Ohio 45263
                                          Attention: Corporate Trust
                                                     Administration

           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 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

                                      -13-

<PAGE>

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/ Keith E. Brock
   ------------------------------------     ------------------------------------
Title: Senior Vice President - Finance   Title: Trust Officer
                                                --------------------------------

EDUCATION FUNDING CAPITAL TRUST-I        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-I                                 TRUST - I
     ("Trust")                             ("Trust Eligible Lender Trustee")

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

<PAGE>

                                   APPENDIX A
                                       to
                     Depositor Transfer and Sale Agreement,
                             dated as of May 1, 2002

                              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 May 1, 2002, between the Administrator and the Trust.

         "Administrator" shall mean Grad Partners in its capacity as
Administrator of the Trust, or any successor thereto as permitted by the
Administration Agreement.

         "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.

                                      A-1

<PAGE>

         "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.

         "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 May 1, 2002, by and among Direct III Marketing, Inc. dba
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.

         "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.

         "Grad Partners" shall mean Grad Partners, Inc., a corporation formed
under the laws of Delaware, and its successors and assigns.

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

                                      A-2

<PAGE>

         "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 May 1, 2002
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 Grad Partners, 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
May 1, 2002, between the Servicer and the Trust.

         "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.

                                      A-3

<PAGE>

         "Subservicer" shall mean Great Lakes Higher Education Servicing
Corporation, 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-I, 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 May 9,
2002 ("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 May 9, 2002 (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.

         "Trust Eligible Lender Trust Agreement" shall mean the Eligible Lender
Trust Agreement, dated as of May 1, 2002, 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.

                                       A-4

<PAGE>

                                   APPENDIX B
                                       to
                     Depositor Transfer and Sale Agreement,
                             dated as of May 1, 2002

                        FORM OF ADMINISTRATION AGREEMENT

                                       B-1

<PAGE>

                                   APPENDIX C
                                       to
                     Depositor Transfer and Sale Agreement,
                             dated as of May 1, 2002

                           FORM OF SERVICING AGREEMENT

                                       C-1

<PAGE>

                                  APPENDIX D-1
                                       to
                     Depositor Transfer and Sale Agreement,
                             dated as of May 1, 2002

                       SCHEDULE OF FINANCED STUDENT LOANS

<TABLE>
<CAPTION>
Student Loan         Outstanding Principal     Accrued         Premium        TOTAL
------------         ---------------------     --------        -------        -----
                            Balance            Interest                       PURCHASE
                            -------            --------                       --------
                                                                              PRICE
                                                                              -----
<S>                  <C>                     <C>             <C>          <C>
9,650 Borrowers        $284,982,031.84       $1,323,405.72   $10,185,000  $296,490,437.56*
</TABLE>

*Detailed description of the Financed Student Loans on file with Grad Partners,
Inc, as Administrator.

                                      D-1

<PAGE>

            Amendment No. 1 to Depositor Transfer and Sale Agreement

     This Amendment No. 1 to Depositor Transfer and Sale Agreement (this
"Amendment"), dated as of August 1, 2002, is 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-I, a
Delaware business 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").

     Capitalized terms used but not defined in this Amendment shall have the
meanings ascribed to such terms in the Depositor Transfer and Sale Agreement
dated as of May 1, 2002 (the "Depositor Transfer and Sale Agreement") among the
Depositor, the Depositor Eligible Lender Trustee, the Trust and the Trust
Eligible Lender Trustee.

                                   WITNESSETH

     Whereas, the Depositor, the Depositor Eligible Lender Trustee, the Trust
and the Trust Eligible Lender Trustee are parties to the Depositor Transfer and
Sale Agreement; and

     Whereas, pursuant to Section 10.03 of the Depositor Transfer and Sale
Agreement, the parties desire to amend the Depositor Transfer and Sale Agreement
on the terms and conditions set forth herein;

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

     Section 1. The second paragraph of Section 1.02 of the Depositor Transfer
and Sale Agreement is hereby amended and restated in its entirety to read as
follows:

     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.

     Section 2. All other provisions of the Depositor Transfer and Sale
Agreement are hereby ratified, approved and confirmed.

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

<PAGE>

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

<TABLE>
<S>                                             <C>
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 - Finance          Title: AVP & Senior Trust Officer
                                                      -----------------------------

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

By:    /s/ Brian J. Gardner                     By:    /s/ Brian J. Gardner
   -----------------------------------------       --------------------------
Title: AVP & Senior Trust Officer               Title: AVP & Senior Trust Officer
      --------------------------------------          -----------------------------
</TABLE><PAGE>

                                                                    Exhibit 10.4

                         ELIGIBLE LENDER TRUST AGREEMENT

     This Trust Agreement (the "Trust Agreement") is entered into as of May 1,
2002 (the "Effective Date"), between EDUCATION FUNDING CAPITAL TRUST - I ("EFC
Trust") and FIFTH THIRD BANK, as eligible lender trustee on behalf of EFC Trust
(the "Eligible Lender Trustee").

     WHEREAS, the Eligible Lender Trustee is an "eligible lender" under the
Higher Education Act;

     WHEREAS, EFC Trust is not an "eligible lender" under the Higher Education
Act and desires the Eligible Lender Trustee to hold all right, title and
interest in and to certain Eligible Loans in trust for the benefit of EFC Trust;

     WHEREAS, EFC Trust may from time to time determine to finance the making,
acquisition and/or consolidation of Eligible Loans to be held in trust by the
Eligible Lender Trustee on behalf of EFC Trust; and

     WHEREAS, in order to consummate the transactions contemplated by any Loan
Program or any Financing Transaction, including without limitation any Financing
Transaction Documents, any Federal Loan Program Documents, any Consumer Loan
Documents or any Student Loan Sale Purchase Agreement, the parties hereto desire
and intend to create the trusts set forth herein and the Eligible Lender Trustee
agrees to be charged with and accept this trust and duties set forth in this
Trust Agreement.

     NOW, THEREFORE, for and in consideration of the mutual covenants contained
herein the parties hereto hereby agree as follows:

                                    ARTICLE I

                   Creation of Trust for Benefit of EFC Trust;
                           Authority to Enter Into and
                     Execute Documents; Acceptance of Trust

     Section 1.1. Purpose. The trust created by Article I of this Trust
Agreement is formed, entered into and intended by EFC Trust and the Eligible
Lender Trustee to create a trust for the purpose of (a) the Eligible Lender
Trustee to hold all right, title and interest to Eligible Loans for the benefit
of EFC Trust (b) the Eligible Lender Trustee to enter into, and comply with, the
terms of any agreement, document or certificate required under any Student Loan
Sale Purchase Agreement, any Loan Program or any Financing Transaction relating
to such Eligible Loans and (c) the Eligible Lender Trustee to comply with the
requirements of the Higher Education Act and/or the Public Health Services Act,
if applicable.

     Section 1.2. Creation and Acceptance of Trust for the Benefit of EFC Trust.
EFC Trust may from time to time cause title to Eligible Loans to be conveyed to
the Eligible Lender Trustee; which

                                       1

<PAGE>

Eligible Loans shall be held, administered and pledged and the proceeds thereof
distributed by the Eligible Lender Trustee for the benefit of EFC Trust as
herein set forth. At the request of EFC Trust hereunder, the Eligible Lender
Trustee hereby agrees to accept and hold title to such Eligible Loans without
liability or responsibility at acceptance for the condition or validity of such
right, title and interest, in trust, upon the trusts hereinafter set forth for
the use and benefit of EFC Trust.

     Section 1.3. Authority to Enter Into and Execute Documents and Transfer and
Accept Eligible Loans.

     (a) EFC Trust hereby authorizes and directs the Eligible Lender Trustee to
enter into, execute and deliver any and all agreements, documents and
certificates which may be required in connection with performing its duties and
obligations with respect to Eligible Loans held by the Eligible Lender Trustee
on behalf of EFC Trust pursuant to this Trust Agreement.

     (b) EFC Trust hereby authorizes and directs the Eligible Lender Trustee to
(i) accept from time to time as directed by EFC Trust the transfer of all right,
title and interest in the Eligible Loans held by the Seller to the Eligible
Lender Trustee on behalf of EFC Trust pursuant to the terms of the applicable
Student Loan Sale Purchase Agreement, (ii) transfer all the right, title and
interest in certain Eligible Loans held by the Eligible Lender Trustee on behalf
of EFC Trust to the Seller from time to time as directed by EFC Trust because of
the repurchase of such Eligible Loans pursuant to the applicable Student Loan
Sale Purchase Agreement; and (iii) enter into, execute and deliver, from time to
time as EFC Trust may request, any and all agreements, documents or certificates
which may be required in connection with any Student Loan Sale Purchase
Agreement or any Loan Program, including without limitation Financing
Transaction Documents, Federal Loan Program Documents and Consumer Education
Loan Documents, with respect to the Eligible Loans held on behalf of EFC Trust
under this Trust Agreement.

     Section 1.4. Duties of the Eligible Lender Trustee. The Eligible Lender
Trustee, by the execution hereof, covenants, represents and agrees that:

     (a) it shall accept and hold as herein set forth all such right, title and
interest to the Eligible Loans that are transferred and assigned to it at the
request of EFC Trust or that are originated and made by it and in its name on
behalf of EFC Trust pursuant to this Trust Agreement;

     (b) it is and shall be an "eligible lender" as defined in 20 U.S.C.(S)1085
(d) under the Higher Education Act;

     (c) it shall enter into and maintain a Contract of Guarantee with each
Guarantor where it acts on behalf of EFC Trust;

     (d) if requested by EFC Trust (with respect to Eligible Loans held on
behalf of EFC Trust under this Trust Agreement) in a reasonably detailed writing
that sets forth sufficient information and instructions, it shall execute,
deliver and perform Student Loan Sale Purchase Agreements, Federal Loan Program
Documents, Consumer Education Loan Documents, Servicing Agreements, Financing
Transaction Documents, and all other agreements, documents or certificates
required under such

                                       2

<PAGE>

Student Loan Sale Purchase Agreements, any Loan Program, Servicing Agreement or
Financing Transaction, and any other agreements, instruments, or documents
relating, directly or indirectly, to the making, financing, acquisition or
consolidation of Eligible Loans or the servicing, administration, sale,
exchange, assignment or transfer of Eligible Loans, including without limitation
the acceptance of the transfer of all right, title and interest in the Eligible
Loans held by Seller to the Eligible Lender Trustee on behalf of EFC Trust;

     (e) it shall acquire, sell, exchange or otherwise deal with such Eligible
Loans in accordance with the Student Loan Sale Purchase Agreements and the
applicable Loan Program, Servicing Agreement or Financing Transaction;

     f) it shall enter into, and thereafter comply with the terms thereof, any
agreement or other document relating to any Financing Transaction, and take such
actions as are necessary and reasonably requested to convey, transfer, assign,
pledge and grant a lien on and a security interest in all of its right, title
and interest in and to the Eligible Loans in accordance with the applicable
Financing Transaction;

     (g) it shall take such actions, at the request of EFC Trust as are
necessary or appropriate in order for EFC Trust to obtain the full value and
benefits of the Eligible Loans, the Student Loan Sale Purchase Agreements and
the Loan Programs, Servicing Agreements, Financing Transactions or other
agreements, instruments or documents related thereto, with respect to the
Eligible Loans held on behalf of EFC Trust under this Trust Agreement;

     (h) it shall hold all data, materials and information pertaining to the
Eligible Loans confidential, and it agrees not to use such data, materials or
information for any purpose other than for the limited purpose of performing its
obligations under this Trust Agreement; and

     (i) following the discharge or other termination of any Financing
Transaction to which EFC Trust is a party, it shall (i) continue to hold all
right, title and interest in and to the Eligible Loans relating to such
Financing Transaction for the benefit of EFC Trust pursuant to the terms and
conditions of this Trust Agreement until otherwise directed by EFC Trust and
(ii) shall execute such agreements and documents as requested by EFC Trust
providing for the administration of and receipt by EFC Trust of the cash flows
and other interests in such Eligible Loans.

     Section 1.5. Duties of EFC Trust. EFC Trust, by the execution hereof,
covenants, represents and agrees that:

     (a) it shall accept, hold and maintain the beneficial interest in each
Eligible Loan free of any claims, liens or encumbrances, except the rights of
the Eligible Lender Trustee and any trustee or other secured party under an
indenture of trust under which the Eligible Loans have been financed;

     (b) it shall promptly take all necessary actions to perform its obligations
hereunder and to support the Eligible Lender Trustee, in the prompt and full
performance of its obligations hereunder;

                                       3

<PAGE>

     (c) it shall be responsible for compliance with all applicable provisions
of the Gramm-Leach Bliley Act of 1999; and

     (d) it shall notify the Eligible Lender Trustee of any material default
under the Servicing Agreement promptly upon becoming aware of such default.

     Section 1.6. Acceptance of Duties. The Eligible Lender Trustee accepts the
trusts hereby created and agrees to perform the duties and only the duties
specifically set forth in this Trust Agreement, and no implied covenants or
obligations shall be read into the trust created hereby against the Eligible
Lender Trustee. The Eligible Lender Trustee shall not be answerable or
accountable under any circumstances except for its gross negligence or willful
misconduct.

     Section 1.7. Reliance on Certain Documents, Other Persons. The Eligible
Lender Trustee shall not incur any liability in acting upon any signature,
instrument, notice, resolution, request, consent, order, certificate, report,
opinion, bond or other document or paper believed by it to be genuine and
believed by it to be signed by the proper party or parties. In the
administration of its duties hereunder, the Eligible Lender Trustee may execute
any of the trusts or powers hereof and perform its powers and duties hereunder
directly or through other agents or attorneys and may, at the expense of EFC
Trust seek advice of counsel, accountants and other skilled persons to be
selected and employed by it, and the Eligible Lender Trustee shall not be liable
for anything done, suffered or omitted in good faith by it in accordance with
the advice or opinion of any such counsel, accountants or other skilled persons.

     Section 1.8. Security for Action. No provision hereof shall require the
Eligible Lender Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in the
exercise of any of its rights or powers if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it.

     Section 1.9. Capacity. In accepting the trusts hereby created, the Eligible
Lender Trustee acts solely as trustee hereunder and not in its individual
capacity.

     Section 1.10. Compensation. EFC Trust shall pay to the Eligible Lender
Trustee from time to time reasonable compensation for all services rendered by
it hereunder with respect to Eligible Loans held on behalf of EFC Trust under
this Trust Agreement, and also all of its reasonable expenses, charges, and
other disbursements and those of its attorneys, agents, and employees incurred
in and about the administration and execution of the trust hereby created with
respect to Eligible Loans held on behalf of EFC Trust under this Trust
Agreement.

     Section 1.11. Qualification. The Eligible Lender Trustee, including any
successor, shall at all times (a) be a trust company or bank having the powers
of a trust company within the state in which it is located, (b) be an "eligible
lender" as defined in 20 U.S.C. E 1085(d) under the Higher Education Act of
1965, as amended, (c) subject to obtaining the required authorization from the
Secretary of Health and Human Services, qualify as a lender under the HEAL
Program and (d) have entered into, and maintain in force, a Contract of
Guarantee with each Guarantor.

                                       4

<PAGE>

     Section 1.12. Successors. (a) The Eligible Lender Trustee or any successor
thereto may resign at any time without cause by giving at least ninety (90) days
prior written notice, such resignation to be effective upon the acceptance of
the trusts created by Article I hereunder by any successor Eligible Lender
Trustee meeting the requirements of Section 1.11 hereof and payment in full of
all amounts due the Eligible Lender Trustee. In addition, EFC Trust may at any
time remove the Eligible Lender Trustee with or without cause by an instrument
in writing delivered to the Eligible Lender Trustee, such removal to be
effective upon the acceptance of the trusts hereunder by a successor Eligible
Lender Trustee meeting the requirements of Section 1.11 hereof and payment in
full of all amounts due the Eligible Lender Trustee. If no successor Eligible
Lender Trustee has been appointed within ninety (90) days after notice of
resignation or removal, as the case may be, the Eligible Lender Trustee may
request a court of competent jurisdiction to (i) require EFC Trust to appoint a
qualified successor Eligible Lender Trustee meeting the requirements of Section
1.11 hereof within three (3) days of the receipt of citation or notice by the
court, or (ii) appoint a successor Eligible Lender Trustee meeting the
requirements of Section 1.11 hereof;

     (b) Any successor Eligible Lender Trustee shall execute and deliver to the
predecessor Eligible Lender Trustee an instrument accepting such appointment
and, in cooperation with the predecessor Eligible Lender Trustee, shall take
such further actions to ensure (i) that title to the Eligible Loans has been
assigned to such successor Eligible Lender Trustee and (ii) that the beneficial
interest of EFC Trust in the Eligible Loans is maintained; thereupon such
successor Eligible Lender Trustee, without further act, shall become vested with
all the estates, properties, rights, powers, duties and trusts of the
predecessor Eligible Lender Trustee in the trusts hereunder with like effect as
if originally named as the Eligible Lender Trustee herein;

     (c) Any bank, corporation or other entity into which the Eligible Lender
Trustee may be merged or converted or with which it may be consolidated, or any
bank, corporation or other entity resulting from any merger, conversion or
consolidation to which the Eligible Lender Trustee shall be a party, or any
bank, corporation or other entity to which substantially all the corporate trust
business of the Eligible Lender Trustee may be transferred, shall be the
Eligible Lender Trustee under this Trust Agreement without any further act,
provided the resulting bank, corporation, or other entity meets the
qualification requirements of Section 1.11 hereof;

     (d) Any successor Eligible Lender Trustee shall take such actions as are
necessary, appropriate and reasonably requested by EFC Trust so that the
Eligible Lender Trustee is properly substituted, succeeds or otherwise takes the
place of the predecessor Eligible Lender Trustee in all necessary and
appropriate documents, instruments and agreements relating to any Student Loan
Sale Purchase Agreement, any applicable Loan Program and any applicable
Financing Transaction.

     Section 1.13. Servicing of Eligible Loans. EFC Trust hereby acknowledges
that it has selected, or will select, Servicers to originate and service the
Eligible Loans held by the Eligible Lender Trustee on behalf of EFC Trust
pursuant to a Servicing Agreement that complies with and requires compliance
with all federal, state and local laws and regulations. EFC Trust acknowledges
that the Eligible Lender Trustee is not required to monitor the actions taken by
the Servicers. EFC Trust shall deliver to the Eligible Lender Trustee (i)
promptly after receipt thereof from the Servicers,

                                       5

<PAGE>

copies of any annual audited financial statements of the Servicers, certified by
an independent certified accounting firm received by EFC Trust; (ii) on an
annual basis within ten (10) days after receipt thereof, copies of SAS 70
reports for each Servicer, of if not available the annual compliance audit for
each Servicer required by Section 428(b)(1)(4) of the Higher Education Act, as
amended, and (iii) on an annual basis, each Servicer's reject and cure rates
demonstrating the Servicer's compliance under applicable regulations.

     Section 1.14. Indemnification by EFC Trust of the Eligible Lender Trustee.
EFC Trust hereby agrees and does hereby indemnify and hold harmless the Eligible
Lender Trustee from and against any and all liabilities, obligations, losses,
damages, penalties, claims, actions, suits, costs, expenses or disbursements
(including legal fees and expenses) of any kind and nature whatsoever which may
be imposed on, incurred by or asserted against the Eligible Lender Trustee in
any way relating to or arising out of this Trust Agreement or any document, or
the performance or enforcement of any of the terms of any provision thereof, or
in any way relating to or arising out of the administration of the trust estate
or the action or inaction of the Eligible Lender Trustee hereunder, except only
in the case of willful misconduct or gross negligence on the part of the
Eligible Lender Trustee in the performance of its duties hereunder; provided,
however, that EFC Trust's indemnification with respect to each Eligible Loan
shall be limited to the period of time that the Eligible Lender Trustee holds
such Eligible Loans in trust on behalf of EFC Trust.

     Section 1.15. Termination. This Trust Agreement and the trusts created
hereby shall terminate with respect to EFC Trust, upon the sale, transfer, final
disposition, maturity, final payment or assignment of all Eligible Loans held by
the Eligible Lender Trustee on behalf of EFC Trust.

                                   ARTICLE II

                                  Miscellaneous

     Section 2.1. Definitions. Capitalized terms used herein shall have the same
meaning given below:

     "Consolidation Loans" means Eligible Loans authorized under Section 428C of
the Higher Education Act of 1965, as amended, or any successor provision.

     "Consumer Education Loan" means an education loan made to a student or
parent of a dependent student that is not granted under the FFEL Program or the
HEAL Program, but which is otherwise an Eligible Loan.

     "Consumer Education Loan Documents" means any agreement, document or
certificate necessary or advisable with respect to the originating, servicing or
ownership of a Consumer Education Loan.

     "Contract of Guarantee" means a contract with a Guarantor providing for, or
a certificate or other evidence of, the guarantee of Eligible Loans.

                                       6

<PAGE>

     "Eligible Loans" means Student Loans which become subject to this Trust
Agreement.

     "Federal Loan" means any FFEL Loan and/or HEAL Loan, as applicable.

     "Federal Loan Program" means a Loan Program for Federal Loans.

     "Federal Loan Program Documents" means any agreement, document or
certificate relating to the terms and conditions of the Federal Loans under a
particular Federal Loan Program, including but not limited to any Contract of
Guarantee, and any amendments or supplements thereto.

     "FFEL Loans" means SLS Loans, Stafford Loans, PLUS Loans or Consolidation
Loans.

     "FFEL Program" means the Federal Family Education Loan Program authorized
under the Higher Education Act, including Federal Stafford Loans authorized
under Sections 427 and 428 thereof, Federal Supplemental Loans for Students
authorized under Sections 428A hereof, Federal PLUS Loans authorized under
Section 428B thereof, Federal Consolidation Loans authorized under Section 428C
thereof and Unsubsidized Stafford Loans authorized under Section 428H thereof.

     "Financing Transaction" means a transaction through which EFC Trust
finances the making, acquisition and/or consolidation of Eligible Loans
including (i) the issuance, from time to time, of certain bonds, notes or other
indebtedness (in various series) or (ii) borrowing of funds pursuant to a line
of credit, credit facility or other source.

     "Financing Transaction Documents" means any agreement, document, instrument
or certificate relating to the terms and conditions of a particular Financing
Transaction, including but not limited to an indenture of trust, loan agreement,
credit agreement, line of credit agreement, security agreement, bailment
agreement, UCC financing statements, secured demand note, collateral agreement,
or other related documents and any amendments or supplements thereto.

     "Guarantee" or "Guaranteed" means, with respect to (i) a FFEL Loan, the
guarantee by the applicable Guarantor of the principal of and accrued interest
on such FFEL Loan and the coverage of such FFEL Loan by a federal reinsurance
agreement providing, among other things, for reimbursement to the Guarantor for
losses incurred by it on defaulted FFEL Loans guaranteed by the Guarantor as
provided by the Higher Education Act from time to time and (ii) a Consumer
Education Loan, the guarantee by the applicable Guarantor (or insurer) of such
Consumer Education Loan.

     "Guarantor" means any guarantee agency as is agreed to in writing by EFC
Trust and the Eligible Lender Trustee with respect to Eligible Loans held in
trust by the Eligible Lender Trustee.

     "HEAL Loan" means an education loan made to an "eligible graduate student"
as defined in and pursuant to the Public Health Services Act.

     "HEAL Program" means the HEAL Program authorized under the Public Health
Services Act, which established the program to provide insured HEAL Loans to
"eligible graduate students"

                                       7

<PAGE>

in schools of medicine, osteopathy, chiropractic medicine or in programs in
health administration, clinical psychology or allied health.

     "Higher Education Act" means the Higher Education Act of 1965, as amended
from time to time, and all regulations and directives promulgated thereunder
from time to time.

     "Loan Program" shall mean the terms and conditions of a program that makes
moneys available for Eligible Loans, thereby assisting students in obtaining
higher education, including without limitation, all applicable Federal Loan
Program Documents and Consumer Education Loan Documents, and with respect to the
Federal Loan Program and the HEAL Program, the Higher Education Act and the
Public Health Services Act, respectively.

     "Person" means an individual, partnership, corporation (including a
business trust), joint stock company, limited liability company, trust,
unincorporated association, joint venture, government or any agency or political
subdivision thereof or any other entity.

     "PLUS Loans" means Eligible Loans authorized under Section 428B of the
Higher Education Act of 1965, as amended, or any successor provision.

     "Public Health Services Act" means the Public Health Services Act of 1975,
as amended or supplemented from time to time, or any successor federal act,
together with any rules, regulations and interpretations promulgated thereunder.

     "Seller" means the seller under any Student Loan Sale Purchase Agreement or
the eligible lender trustee acting on its behalf, as applicable.

     "Servicer" means a servicing entity as agreed to in writing by EFC Trust
and the Eligible Lender Trustee to provide servicing of Eligible Loans,
including but not limited to application review, disbursement, collection, due
diligence and claims services.

     "Servicing Agreement" means an agreement with a Servicer for the servicing
of Eligible Loans.

     "SLS Loans" means a loan made to an Eligible Borrower designated as such
that it is made under the Supplemental Loans for Students Programs in accordance
with the Higher Education Act.

     "Stafford Loans" means Eligible Loans authorized under Section 427 and 428
of the Higher Education Act of 1965, as amended, or any successor provision,
including Unsubsidized Stafford Loans, but not including PLUS Loans.

     "Student Loan" means a FFEL Loan, a HEAL Loan or a Consumer Loan.

     "Student Loan Sale Purchase Agreement" means a student loan sale purchase
agreement between a Seller and EFC Trust as amended or restated from time to
time pursuant to which EFC Trust purchases Eligible Loans.

                                       8

<PAGE>

     "Unsubsidized Stafford Loans" means student loans authorized under Section
428H of the Higher Education Act of 1965, as amended, or any successor
provision.

     Section 2.2. Notices. All notices shall be in writing, mailed by regular
mail, postage prepaid, (i) if to the Eligible Lender Trustee, addressed to Fifth
Third Bank, Corporate Trust Administration, 38 Fountain Square Plaza, MD 10AT60
Cincinnati, Ohio 45263, Attention: Brian Gardner or to such other address as may
have been filed in writing with EFC Trust; and (ii) if to EFC Trust, addressed
to Education Funding Capital Trust - I, c/o Wilmington Trust Company, Rodney
Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001,
Attention: Corporate Trust Administration or to such other address as may have
been filed by EFC Trust in writing.

     Section 2.3. Lender Identification Number. The parties acknowledge and
agree that Lender Identification Number 833938 shall be used in connection with
the Student Loans that become subject to this Trust Agreement. The parties
further agree that such Lender Identification Number may be used in connection
with other Student Loans in which EFC Trust or an affiliate of EFC Trust
(meaning any corporation or limited liability company that controls, or any
corporation, limited liability company or trust controlled by or under common
control with EFC Trust) has a beneficial interest.

     Section 2.4. Partial Invalidity. Any provisions of this Trust Agreement
which are prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

     Section 2.5. Amendment. No term or provision of this Trust Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party or other person against whom enforcement of the
change, waiver, discharge or termination is sought; and any waiver of the terms
hereof shall be effective only in the specific instance and for the specific
purpose given.

     Section 2.6. Counterparts. This Trust Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

     Section 2.7. Trust Binding Upon Successors and Assigns. All covenants and
agreements contained herein shall be binding upon, and inure to the benefit of,
EFC Trust and its successors and assigns and the Eligible Lender Trustee and its
successors and assigns.

     Section 2.8. Headings. The headings of the various articles and sections
herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

                                       9

<PAGE>

     Section 2.9. Governing Law and Place of Enforcement. This Trust Agreement
shall be governed by, and construed in accordance with, the laws of the State of
Ohio without regard to the choice of law principles thereof.

                                       10

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Trust Agreement to
be executed by a duly authorized officer as of the date first above written.

FIFTH THIRD BANK              EDUCATION FUNDING CAPITAL TRUST - I,
as the Eligible Lender        a Delaware business law trust acting by and
Trustee                       through Fifth Third Bank, not in its individual
                              capacity, but solely as Co-Owner Trustee on behalf
                              of the Trust

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

                                       11

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