Document:

<PAGE>

                                                                     EXHIBIT 4.6

                                                                  EXECUTION COPY

                               INDENTURE OF TRUST

                                 by and between

             COLLEGIATE FUNDING SERVICES EDUCATION LOAN TRUST 2004-A

                                       and

                         U.S. BANK NATIONAL ASSOCIATION,
                           as Eligible Lender Trustee
                                 and as Trustee

                            Dated as of April 1, 2004

<PAGE>

                                                                  EXECUTION COPY

             COLLEGIATE FUNDING SERVICES EDUCATION LOAN TRUST 2004-A

      Reconciliation and tie between Trust Indenture Act of 1939, as amended
(the "Trust Indenture Act" or "TIA") and Indenture of Trust, dated as of April
1, 2004.

<TABLE>
<CAPTION>
TRUST INDENTURE ACT SECTION   INDENTURE SECTION
---------------------------   -----------------
<S>                           <C>
Section 310(a)(1)                7.23
310(a)(2)                        7.23
310(b)                           7.23, 7.09
Section 311(a)                   7.08
311(b)                           7.08
Section 312(b)                   9.17
312(c)                           9.17
Section 313(a)                   4.15
313(b)                           4.15
313(c)                           4.15, 8.04
Section 314(a)(1)                4.16
314(a)(2)                        4.16
314(a)(3)                        4.16
314(a)(4)                        4.16
314(c)                           2.02, 5.07
314(d)(1)                        5.07
Section 315(b)                   8.04
Section 317(a)(1)                4.17
317(a)(2)                        7.24
Section 318(a)                   9.09
318(c)                           9.09
</TABLE>

------------
NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of the Indenture.

      Attention should also be directed to Section 318(c) of the Trust Indenture
Act, which provides that the provisions of Sections 310 to and including 317 of
the Trust Indenture Act are a part of and govern every qualified indenture,
whether or not physically contained therein.

<PAGE>

                                                                  EXECUTION COPY

                                TABLE OF CONTENTS

      (This Table of Contents is for convenience of reference only and is not
intended to define, limit or describe the purpose or intent of any provisions of
this Indenture of Trust.)

<TABLE>
<CAPTION>
                                                                                                            Page
<S>                                                                                                         <C>
                                                   ARTICLE I

                                         DEFINITIONS AND USE OF PHRASES

                                                   ARTICLE II

                                         NOTE DETAILS AND FORM OF NOTES

Section 2.01  Note Details...............................................................................    26
Section 2.02  Execution, Authentication and Delivery of Notes............................................    27
Section 2.03  Registration, Transfer and Exchange of Notes; Persons Treated as Registered Owners.........    27
Section 2.04  Lost, Stolen, Destroyed and Mutilated Notes................................................    28
Section 2.05  Trustee's Authentication Certificate.......................................................    28
Section 2.06  Cancellation and Destruction of Notes by the Trustee.......................................    28
Section 2.07  Temporary Notes............................................................................    29
Section 2.08  Issuance of Notes..........................................................................    29
Section 2.09  Definitive Notes...........................................................................    29
Section 2.10  Payment of Principal and Interest..........................................................    30

                                                  ARTICLE III

                         PARITY AND PRIORITY OF LIEN; OTHER OBLIGATIONS; AND DERIVATIVE
                                               PRODUCT AGREEMENTS

Section 3.01  Parity and Priority of Lien................................................................    30
Section 3.02  Other Obligations..........................................................................    31
Section 3.03  Derivative Product Agreements; Counterparty Payments; Issuer Derivative Payments...........    31

                                                   ARTICLE IV

                            PROVISIONS APPLICABLE TO THE NOTES; DUTIES OF THE ISSUER

Section 4.01  Payment of Principal and Interest..........................................................    32
Section 4.02  Covenants as to Additional Conveyances.....................................................    32
Section 4.03  Further Covenants of the Issuer............................................................    32
Section 4.04  Enforcement of Servicing Agreements........................................................    33
Section 4.05  Procedures for Transfer of Funds...........................................................    34
Section 4.06  Additional Covenants with Respect to the Act...............................................    34
</TABLE>

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<PAGE>

<TABLE>
<S>                                                                                                         <C>
Section 4.07  Financed Eligible Loans; Collections Thereof; Assignment Thereof...........................    36
Section 4.08  Appointment of Agents, Direction to Trustee, Etc...........................................    36
Section 4.09  Capacity to Sue............................................................................    36
Section 4.10  Continued Existence; Successor to Issuer...................................................    36
Section 4.11  Amendment of Student Loan Purchase Agreements..............................................    37
Section 4.12  Representations; Negative Covenants........................................................    37
Section 4.13  Additional Covenants.......................................................................    43
Section 4.14  Providing of Notice........................................................................    44
Section 4.15  Certain Reports............................................................................    45
Section 4.16  Statement as to Compliance.................................................................    46
Section 4.17  Representations of the Issuer Regarding the Trustee's Security Interest....................    46
Section 4.18  Further Covenants of the Issuer Regarding the Trustee's Security Interest..................    47
Section 4.19  Opinions as to Trust Estate................................................................    47

                                                   ARTICLE V

                                                     FUNDS

Section 5.01  Creation and Continuation of Funds and Accounts............................................    48
Section 5.02  Acquisition Fund...........................................................................    48
Section 5.03  Collection Fund............................................................................    49
Section 5.04  Reserve Fund...............................................................................    55
Section 5.05  Capitalized Interest Account...............................................................    56
Section 5.06  Add-on Consolidation Loan Fund.............................................................    56
Section 5.07  Investment of Funds Held by Trustee........................................................    57
Section 5.08  Release....................................................................................    60

                                                   ARTICLE VI

                                             DEFAULTS AND REMEDIES

Section 6.01  Events of Default Defined..................................................................    61
Section 6.02  Remedy on Default; Possession of Trust Estate..............................................    62
Section 6.03  Remedies on Default; Advice of Counsel.....................................................    63
Section 6.04  Remedies on Default; Sale of Trust Estate..................................................    64
Section 6.05  Appointment of Receiver....................................................................    64
Section 6.06  Restoration of Position....................................................................    64
Section 6.07  Purchase of Properties by Trustee or Registered Owners or  Counterparties..................    65
Section 6.08  Application of Sale Proceeds...............................................................    65
Section 6.09  Acceleration of Maturity; Rescission and Annulment.........................................    65
Section 6.10  Remedies Not Exclusive.....................................................................    66
Section 6.11  Collection of Indebtedness and Suits for Enforcement by Trustee............................    66
Section 6.12  Direction of Trustee.......................................................................    67
Section 6.13  Right to Enforce in Trustee................................................................    67
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                         <C>
Section 6.14  Physical Possession of Obligations Not Required............................................    68
Section 6.15  Waivers of Events of Default...............................................................    68

                                                  ARTICLE VII

                                                  THE TRUSTEE

Section 7.01  Acceptance of Trust........................................................................    68
Section 7.02  Recitals of Others.........................................................................    69
Section 7.03  As to Filing of Indenture..................................................................    69
Section 7.04  Trustee May Act Through Agents.............................................................    70
Section 7.05  Indemnification of Trustee.................................................................    70
Section 7.06  Trustee's Right to Reliance................................................................    71
Section 7.07  Compensation of Trustee....................................................................    72
Section 7.08  Trustee May Own Notes......................................................................    72
Section 7.09  Resignation of Trustee.....................................................................    72
Section 7.10  Removal of Trustee.........................................................................    73
Section 7.11  Successor Trustee..........................................................................    73
Section 7.12  Manner of Vesting Title in Trustee.........................................................    73
Section 7.13  Additional Covenants by the Trustee to Conform to the Act..................................    74
Section 7.14  Right of Inspection........................................................................    74
Section 7.15  Limitation with Respect to Examination of Reports..........................................    74
Section 7.16  Servicing Agreement........................................................................    74
Section 7.17  Additional Covenants of Trustee............................................................    74
Section 7.18  Duty of Trustee with Respect to Rating Agencies............................................    75
Section 7.19  Merger of the Trustee......................................................................    75
Section 7.20  Receipt of Funds from Servicer.............................................................    76
Section 7.21  Special Circumstances Leading to Resignation of Trustee....................................    76
Section 7.22  Survival of Trustee's Rights to Receive Compensation, Reimbursement and
              Indemnification............................................................................    76
Section 7.23  Corporate Trustee Required; Eligibility; Conflicting Interests.............................    76
Section 7.24  Trustee May File Proofs of Claim...........................................................    76
Section 7.25  Determination of LIBOR.....................................................................    77

                                                  ARTICLE VIII

                                            SUPPLEMENTAL INDENTURES

Section 8.01  Supplemental Indentures Not Requiring Consent of Registered Owners or
              Counterparties.............................................................................    77
Section 8.02  Supplemental Indentures Requiring Consent of Registered Owners and Counterparties..........    79
Section 8.03  Additional Limitation on Modification of Indenture.........................................    80
Section 8.04  Notice of Defaults.........................................................................    80
Section 8.05  Conformity with the Trust Indenture Act....................................................    80
</TABLE>

                                       iii
<PAGE>

<TABLE>
<S>                                                                                                         <C>
                                                   ARTICLE IX

                                               GENERAL PROVISIONS

Section 9.01  Notices....................................................................................    80
Section 9.02  Covenants Bind Issuer......................................................................    82
Section 9.03  Lien Created...............................................................................    82
Section 9.04  Severability of Lien.......................................................................    82
Section 9.05  Consent of Registered Owners Binds Successors..............................................    82
Section 9.06  Nonliability of Persons; No General Obligation.............................................    82
Section 9.07  Nonpresentment of Notes or Interest Checks.................................................    82
Section 9.08  Security Agreement.........................................................................    83
Section 9.09  Laws Governing.............................................................................    83
Section 9.10  Severability...............................................................................    83
Section 9.11  Exhibits...................................................................................    83
Section 9.12  Non-Business Days..........................................................................    83
Section 9.13  Parties Interested Herein..................................................................    83
Section 9.14  Obligations Are Limited Obligations........................................................    83
Section 9.15  Counterparty Rights........................................................................    84
Section 9.16  Disclosure of Names and Addresses of Registered Owners.....................................    84
Section 9.17  Aggregate Principal Amount of Obligations..................................................    84
Section 9.18  Financed Eligible Loans....................................................................    84
Section 9.19  Concerning the Delaware Trustee............................................................    84

                                                   ARTICLE X

                        PAYMENT AND CANCELLATION OF NOTES AND SATISFACTION OF INDENTURE

Section 10.01 Trust Irrevocable..........................................................................    85
Section 10.02 Satisfaction of Indenture..................................................................    85
Section 10.03 Optional Purchase of All Financed Eligible Loans...........................................    86
Section 10.04 Auction of Financed Eligible Loans.........................................................    87
</TABLE>

<TABLE>
<S>           <C>
ANNEX 1       CERTAIN TERMS AND PROVISIONS OF THE AUCTION RATE NOTES
APPENDIX A    NOTICE OF PAYMENT DEFAULT
APPENDIX B    NOTICE OF CURE OF PAYMENT DEFAULT
APPENDIX C    NOTICE OF PROPOSED CHANGE IN LENGTH OF ONE OR MORE AUCTION PERIODS
APPENDIX D    NOTICE ESTABLISHING CHANGE IN LENGTH OF ONE OR MORE AUCTION PERIODS
APPENDIX E    NOTICE OF CHANGE IN AUCTION DATE
EXHIBIT A     ELIGIBLE LOAN ACQUISITION CERTIFICATE
EXHIBIT B-1   FORM OF CLASS A-1 NOTE
EXHIBIT B-2   FORM OF CLASS A-2 NOTE
</TABLE>

                                       iv
<PAGE>

<TABLE>
<S>           <C>
EXHIBIT B-3   FORM OF CLASS A-3 NOTE
EXHIBIT B-4   FORM OF CLASS A-4 NOTE
EXHIBIT B-5   FORM OF AUCTION RATE NOTE
EXHIBIT C     FORM OF ADMINISTRATOR'S MONTHLY PAYMENT DATE CERTIFICATE
EXHIBIT D     FORM OF ADMINISTRATOR'S DISTRIBUTION DATE CERTIFICATE
EXHIBIT E     FORM OF SERVICER'S REPORT
EXHIBIT F     BORROWER INCENTIVES AND OTHER SPECIAL PROGRAMS
</TABLE>

                                        v
<PAGE>

                                                                  EXECUTION COPY

                               INDENTURE OF TRUST

      THIS INDENTURE OF TRUST, dated as of April 1, 2004 (this "Indenture"), is
by and between Collegiate Funding Services Education Loan Trust 2004-A (the
"Issuer"), a statutory trust duly organized and existing under the laws of the
State of Delaware (the "State"), and U.S. Bank National Association, a national
banking association duly organized and operating under the laws of the United
States of America (together with its successors, the "Trustee"), as indenture
trustee hereunder and eligible lender trustee under the Issuer Eligible Lender
Trust Agreement (all capitalized terms used in these preambles, recitals and
granting clauses shall have the same meanings assigned thereto in Article I
hereof);

                              W I T N E S S E T H:

      WHEREAS, the Issuer is duly created as a statutory trust under the laws of
the State and by proper action has duly authorized the execution and delivery of
this Indenture, which Indenture provides for the issuance of student loan
asset-backed notes (the "Notes") to finance the acquisition of certain student
loans from the Sponsor and the payment to Holders of the Notes and to any
Counterparty; and

      WHEREAS, pursuant to the Issuer Eligible Lender Trust Agreement, the
Eligible Lender Trustee will hold legal title to such student loans acquired by
the Issuer; and

      WHEREAS, this Indenture is subject to the provisions of the Trust
Indenture Act of 1939, as amended (the "Trust Indenture Act" or "TIA"), that are
deemed to be incorporated into this Indenture and shall, to the extent
applicable, be governed by such provisions; and

      WHEREAS, the Trustee has agreed to accept the trusts herein created upon
the terms herein set forth; and

      WHEREAS, it is hereby agreed between the parties hereto, the Registered
Owners of the Notes (the Registered Owners evidencing their consent by their
acceptance of the Notes) and any Counterparty (the Counterparty evidencing its
consent by its execution and delivery of a Derivative Product Agreement (as
defined herein)) that in the performance of any of the agreements of the Issuer
herein contained, any obligation it may thereby incur for the payment of money
shall not be general debt on its part, but shall be secured by and payable
solely from the Trust Estate, payable in such order of preference and priority
as provided herein;

      NOW, THEREFORE, the Issuer and the Eligible Lender Trustee, in
consideration of the premises and acceptance by the Trustee of the trusts herein
created, of the purchase and acceptance of the Notes by the Registered Owners
thereof, of the execution and delivery of any Derivative Product Agreement by a
Counterparty and the Issuer and the acknowledgement thereof by the Trustee, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, do hereby GRANT, CONVEY, PLEDGE, TRANSFER, ASSIGN AND
DELIVER to the Trustee, for the benefit of the Registered Owners of the Notes
and any Counterparty (to secure the payment of any and all amounts which may
from time to time become due and owing to a Counterparty pursuant to any
Derivative Product Agreement),

<PAGE>

all of the moneys, rights and properties described in the granting clauses A
through F below (the "Trust Estate"), as follows:

                                GRANTING CLAUSE A

      The Available Funds and Accounts (other than moneys released from the lien
of the Trust Estate as provided herein);

                                GRANTING CLAUSE B

      All Funds and Accounts created under Section 5.01 hereof, and all moneys
and investments held therein, including all proceeds thereof and all income
thereon;

                                GRANTING CLAUSE C

      The Financed Eligible Loans and all obligations of the obligors thereunder
including all moneys accrued and paid thereunder on or after the Cutoff Date;

                                GRANTING CLAUSE D

      The rights of the Issuer and/or the Eligible Lender Trustee in and to the
Eligible Lender Trust Agreements, any Servicing Agreement, the Student Loan
Purchase Agreements, the Administration Agreement, any Back-Up Administration
Agreement, the Custodian Agreements and the Guarantee Agreements as the same
relate to Financed Eligible Loans;

                                GRANTING CLAUSE E

      The rights of the Issuer in and to the Derivative Product Agreements;
provided, however, that this Granting Clause E shall not be for the benefit of a
Counterparty with respect to the Derivative Product Agreements; and

                                GRANTING CLAUSE F

      Any and all other property, rights and interests of every kind or
description that from time to time hereafter is granted, conveyed, pledged,
transferred, assigned or delivered to the Trustee as additional security
hereunder.

      TO HAVE AND TO HOLD the Trust Estate, whether now owned or held or
hereafter acquired, unto the Trustee and its successors or assigns;

      IN TRUST NEVERTHELESS, upon the terms and trusts herein set forth for the
equal and proportionate benefit and security of all present and future
Registered Owners of the Notes, without preference of any Note over any other,
except as provided herein, and for enforcement of the payment of the Notes in
accordance with their terms, and all other sums payable hereunder (including
payments due and payable to any Counterparty) or on the Notes, and for the
performance of and compliance with the obligations, covenants and conditions of
this Indenture, as if all the Notes and other Obligations (as defined herein) at
any time Outstanding had been executed and delivered simultaneously with the
execution and delivery of this Indenture;

                                       2
<PAGE>

      PROVIDED, HOWEVER, that if the Issuer, its successors or assigns, shall
well and truly pay, or cause to be paid, the principal of the Notes and the
interest due and to become due thereon, or provide fully for payment thereof as
herein provided, at the times and in the manner mentioned in the Notes according
to the true intent and meaning thereof, and shall make all required payments
into the Funds as required under Article V hereof, or shall provide, as
permitted hereby, for the payment thereof by depositing with the Trustee sums
sufficient to pay or to provide for payment of the entire amount due and to
become so due as herein provided (including payments due and payable to any
Counterparty), then this Indenture (other than Sections 4.13, 4.14 (for a period
of 90 days) and 7.05 hereof) and the rights hereby granted shall cease,
terminate and be void; otherwise, this Indenture shall be and remain in full
force and effect;

      NOW, THEREFORE, it is mutually covenanted and agreed as follows:

                                    ARTICLE I

                         DEFINITIONS AND USE OF PHRASES

      Capitalized terms used herein and not otherwise defined shall have the
meanings set forth below or in Annex 1 hereto, unless the context clearly
requires otherwise.

      "Account" shall mean any of the accounts created and established by this
Indenture.

      "Acquisition Fund" shall mean the Fund by that name created in Section
5.01(a) hereof and further described in Section 5.02 hereof, including any
Accounts and Subaccounts created therein.

      "Acquisition Period" shall mean the period beginning on the Closing Date
and ending on the earlier of the date that there is no Remaining Acquisition
Amount in the Acquisition Fund and June 30, 2004.

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

      "Add-on Consolidation Loan Fund" shall mean the Fund by that name created
in Section 5.01(a) hereof and further described in Section 5.06 hereof,
including any Accounts and Subaccounts created therein.

      "Add-on Consolidation Loan" shall mean, with respect to a consolidation
loan owned by the Issuer and Financed under the Indenture, the increased balance
of such consolidation loan arising out of amounts required to be paid to an
Eligible Lender at the request of the related borrower within 180 days of the
date such Student Loan was originated.

      "Adjusted Pool Balance" shall mean, for any Quarterly Distribution Date as
determined by the Administrator, the sum of (a) the Pool Balance as of the last
day of the immediately

                                       3
<PAGE>

preceding Collection Period and (b) the Reserve Fund Requirement for such
Quarterly Distribution Date.

      "Administration Agreement" shall mean the Administration Agreement dated
as of April 1, 2004, among the Issuer, the Administrator, the Trustee, the
Eligible Lender Trustee to the Administrator and the Delaware Trustee as such
agreement may be amended or supplemented from time to time.

      "Administration Fee" shall mean a fee, payable on each Quarterly
Distribution Date to the Administrator, equal to 1/4 of 0.15% of the Pool
Balance as of the last day of the immediately preceding Collection Period, or
such greater or lesser amount as may be provided by Issuer Order (provided that
the Rating Agency Confirmation has been met with respect to such Issuer Order).

      "Administrator" shall mean Collegiate Funding Portfolio Administration,
L.L.C. in its capacity as administrator under that certain Administration
Agreement, or any other Person providing similar services and satisfying the
Rating Agency Confirmation.

      "Affiliate" shall mean, with respect to any specified Person, any other
Person controlling or controlled by or under common control with such specified
Person. For the purposes of this definition, "control" when used with respect to
any specified Person means the power to direct the management and policies of
such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

      "Auction Rate Carry-Over Amount" shall mean, for a class of Auction Rate
Notes, the Class A-5 Carry-Over Amount, the Class A-6 Carry-Over Amount or the
Class B Carry-Over Amount, as applicable, in each case, to the extent owed
pursuant to Annex 1 hereto (including interest accrued thereon as specified in
such Section.)

      "Auction Rate Notes" shall mean the Class A-5 Notes, the Class A-6 Notes
and the Class B Notes.

      "Auction Rate Notes Accrued Interest Amount" shall mean, for any Quarterly
Distribution Date, the sum of the Class A-5 Noteholders' Accrued Interest
Amount, Class A-6 Noteholders' Accrued Interest Amount and Class B Noteholders'
Accrued Interest Amount for such Quarterly Distribution Date.

      "Authorized Representative" shall mean, when used with reference to the
Issuer, any Person duly authorized by the Trust Agreement to act on the Issuer's
behalf and shall specifically include those individuals authorized to act for
the Administrator as set forth in a list of Authorized Officers delivered by the
Administrator to the Trustee and the Delaware Trustee, as such list may be
amended from time to time by the Administrator.

      "Available Funds" shall mean, with respect to a Distribution Date or any
related Monthly Payment Date, the sum of the following amounts received to the
extent not previously distributed: (a) all collections received by a Servicer on
the Financed Eligible Loans (including

                                       4
<PAGE>

payments from any Guaranty Agency received with respect to the Financed Eligible
Loans but net of any payments made or required to be made by the Issuer pursuant
to the Joint Sharing Agreement); (b) any Interest Benefit Payments and Special
Allowance Payments received by the Trustee with respect to Financed Eligible
Loans; (c) all Liquidation Proceeds from any Financed Eligible Loans which have
become Liquidated Financed Eligible Loans in accordance with a Servicer's
customary servicing procedures, and all other moneys collected with respect to
any Liquidated Financed Eligible Loan which has been written off, net of the sum
of any amounts expended by a Servicer in connection with such liquidation and
any amounts required by law to be remitted to the obligor on such Liquidated
Financed Eligible Loan; (d) the aggregate Purchase Amounts received for Financed
Eligible Loans sold by the Issuer; (e) the aggregate amounts, if any, received
from the Seller or a Servicer, as the case may be, as reimbursement of
non-guaranteed amounts, or lost Interest Benefit Payments and Special Allowance
Payments, with respect to the Financed Eligible Loans pursuant to a Student Loan
Purchase Agreement or a Servicing Agreement, respectively; (f) other amounts
received by a Servicer pursuant to its role as Servicer under a Servicing
Agreement and paid to the Issuer (g) all interest earned or gain realized from
the investment of amounts in any Fund or Account; (h) any payments received
under a Derivative Product Agreement from a Counterparty in respect of such
Distribution Date; and (i) any payments received by the Issuer and the Trustee
under the Joint Sharing Agreement.

      "Back-up Administration Agreement" shall mean the Back-up Administration
Agreement dated as of April 1, 2004 among the Issuer, the Administrator, the
Trustee and the Back-up Administrator as such agreement may be amended or
supplemented from time to time.

      "Back-up Administration Fee" shall mean the fees and expenses due to the
Back-up Administrator under the terms of the Back-up Administration Agreement;
provided, however, that such fees and expenses shall not in any one year exceed
the amounts set forth in the cashflows delivered to the Rating Agencies unless
the Issuer obtains a Rating Agency Confirmation.

      "Back-up Administrator" shall mean Lord Securities Corporation in its
capacity as back-up administrator under that certain Back-up Administration
Agreement, or any other person providing similar services and satisfying the
Rating Agency Confirmation.

      "Basic Documents" shall mean the Trust Agreement, this Indenture, any
Servicing Agreement, the Administration Agreement, the Student Loan Purchase
Agreements, the Custodian Agreements, the Guarantee Agreements, the Joint
Sharing Agreement, the Eligible Lender Trust Agreements, the Derivative Product
Agreements, the Auction Agent Agreement, the Broker-Dealer Agreements, the
Market Agent Agreements, the Back-up Administration Agreement and other
documents and certificates delivered in connection with any thereof.

      "Business Day" shall mean (a) for purposes of calculating LIBOR, any day
on which the banks in New York, New York and London, England are open for the
transaction of international business and (b) for all other purposes, any day
other than December 30, December 31, April 14, April 15, such other dates as may
be agreed to in writing by the Market Agent, the Auction Agent, the
Broker-Dealer and the Issuer, or a Saturday, Sunday, holiday or day on which
banks

                                       5
<PAGE>

located in the City of New York, New York, or the New York Stock Exchange, the
Trustee or the Auction Agent, are authorized or permitted by law or executive
order to close.

      "Capitalized Interest Account" shall mean the Account by that name created
in Section 5.01(d) hereof and further described in Section 5.05 hereof

      "Carryover Servicing Fee" shall mean fees, if any, designated by the
Administrator as "Carryover Servicing Fees" in a written direction and as more
fully defined in the Master Servicing Agreement.

      "Certificate of Insurance" shall mean any Certificate evidencing that a
Financed Eligible Loan is Insured pursuant to a Contract of Insurance.

      "Certificate of Trust" shall mean the certificate filed with the Secretary
of State of Delaware establishing the Issuer as a statutory trust under Delaware
law.

      "Class A Auction Rate Notes" shall mean the Class A-5 Notes and the Class
A-6 Notes.

      "Class A Beneficiary" shall mean each Counterparty pursuant to its
Derivative Product Agreement and each Registered Owner of Class A Notes.

      "Class A Notes" shall mean, collectively, the Class A-1 Notes, the Class
A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class A-5 Notes and the
Class A-6 Notes secured on a senior priority to the Class B Obligations.

      "Class A Noteholders' Interest Distribution Amount" shall mean, for any
Auction Rate Distribution Date or Quarterly Distribution Date and a class of
Class A Notes, the Class A-1 Noteholders' Interest Distribution Amount, the
Class A-2 Noteholders' Interest Distribution Amount, the Class A-3 Noteholders'
Interest Distribution Amount, the Class A-4 Noteholders' Interest Distribution
Amount, the Class A-5 Noteholders' Interest Distribution Amount or the Class A-6
Noteholders' Interest Distribution Amount, as applicable, in each case to the
extent payable on such Auction Rate Distribution Date or Quarterly Distribution
Date.

      "Class A Obligations" shall mean Class A Notes and the Derivative Product
Agreements, the priority of payment of which is equal with that of Class A
Notes.

      "Class A-1 Maturity Date" shall mean the December 30, 2013 Quarterly
Distribution Date.

      "Class A-1 Note Interest Shortfall" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class A-1
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class A-1 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class A-1 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class A-1
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Trustee.

                                       6
<PAGE>

      "Class A-1 Noteholder" shall mean the Person in whose name a Class A-1
Note is registered in the Note registration books of the Trustee.

      "Class A-1 Noteholders' Interest Distribution Amount" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class A-1 Rate for the related Interest Accrual Period
on the aggregate outstanding principal balances of the Class A-1 Notes
immediately prior to such Quarterly Distribution Date; and (b) the Class A-1
Note Interest Shortfall for such Quarterly Distribution Date, as based on the
actual number of days in such Interest Accrual Period divided by 360.

      "Class A-1 Notes" shall mean the $249,000,000 Class A-1 Student Loan
Asset-Backed Notes, Series 2004-A, issued by the Issuer pursuant to this
Indenture, substantially in the form of Exhibit B hereto.

      "Class A-1 Rate" shall mean, for any Interest Accrual Period, other than
the first Interest Accrual Period, the applicable Three-Month LIBOR, plus 0.05%,
as determined by the Trustee on each LIBOR Determination Date. For the first
Interest Accrual Period, the Class A-1 Rate shall mean 1.34%.

      "Class A-2 Maturity Date" shall mean the June 28, 2021 Quarterly
Distribution Date.

      "Class A-2 Note Interest Shortfall" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class A-2
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class A-2 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class A-2 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class A-2
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Trustee.

      "Class A-2 Noteholder" shall mean the Person in whose name a Class A-2
Note is registered in the Note registration books of the Trustee.

      "Class A-2 Noteholders' Interest Distribution Amount" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class A-2 Rate for the related Interest Accrual Period
on the aggregate outstanding principal balances of the Class A-2 Notes
immediately prior to such Quarterly Distribution Date; and (b) the Class A-2
Note Interest Shortfall for such Quarterly Distribution Date, as based on the
actual number of days in such Interest Accrual Period divided by 360.

      "Class A-2 Notes" shall mean the $350,000,000 Class A-2 Student Loan
Asset-Backed Notes, Series 2004-A, issued by the Issuer pursuant to this
Indenture, substantially in the form of Exhibit B-2 hereto.

      "Class A-2 Rate" shall mean, for any Interest Accrual Period other than
the first Interest Accrual Period the Three-Month LIBOR for such Interest
Accrual Period plus 0.17%, as

                                       7
<PAGE>

determined by the Trustee. For the first Interest Accrual Period, the Class A-2
Rate shall mean 1.46%.

      "Class A-3 Maturity Date" shall mean the September 28, 2026 Quarterly
Distribution Date.

      "Class A-3 Note Interest Shortfall" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class A-3
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class A-3 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class A-3 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class A-3
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Trustee.

      "Class A-3 Noteholder" shall mean the Person in whose name a Class A-3
Note is registered in the Note registration books of the Trustee.

      "Class A-3 Noteholders' Interest Distribution Amount" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class A-3 Rate for the related Interest Accrual Period
on the aggregate outstanding principal balances of the Class A-3 Notes
immediately prior to such Quarterly Distribution Date; and (b) the Class A-3
Note Interest Shortfall for such Quarterly Distribution Date, as based on the
actual number of days in such Interest Accrual Period divided by 360.

      "Class A-3 Notes" shall mean the $207,000,000 Class A-3 Student Loan
Asset-Backed Notes, Series 2004-A, issued by the Issuer pursuant to this
Indenture, substantially in the form of Exhibit B-3 hereto.

      "Class A-3 Rate" shall mean, for any Interest Accrual Period other than
the first Interest Accrual Period the Three-Month LIBOR for such Interest
Accrual Period plus 0.21%, as determined by the Trustee. For the first Interest
Accrual Period, the Class A-3 Rate shall mean 1.50%.

      "Class A-4 Maturity Date" shall mean the September 30, 2030 Quarterly
Distribution Date.

      "Class A-4 Note Interest Shortfall" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class A-4
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class A-4 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class A-4 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class A-4
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Trustee.

                                       8
<PAGE>

      "Class A-4 Noteholder" shall mean the Person in whose name a Class A-4
Note is registered in the Note registration books of the Trustee.

      "Class A-4 Noteholders' Interest Distribution Amount" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class A-4 Rate for the related Interest Accrual Period
on the aggregate outstanding principal balances of the Class A-4 Notes
immediately prior to such Quarterly Distribution Date; and (b) the Class A-4
Note Interest Shortfall for such Quarterly Distribution Date, as based on the
actual number of days in such Interest Accrual Period divided by 360.

      "Class A-4 Notes" shall mean the $140,000,000 Class A-4 Student Loan
Asset-Backed Notes, Series 2004-A, issued by the Issuer pursuant to this
Indenture, substantially in the form of Exhibit B-4 hereto.

      "Class A-4 Rate" shall mean, for any Interest Accrual Period other than
the first Interest Accrual Period the Three-Month LIBOR for such Interest
Accrual Period plus 0.34%, as determined by the Trustee. For the first Interest
Accrual Period, the Class A-4 Rate shall mean 1.63%.

      "Class A-5 Carry-Over Amount" shall mean, for any Distribution Date
relating to the Class A-5 Notes, any unpaid Carry-Over Amount s with respect to
the Class A-5 Notes.

      "Class A-5 Maturity Date" shall mean the December 28, 2043 Quarterly
Distribution Date.

      "Class A-5 Note Interest Shortfall" shall mean, for each Auction Rate
Distribution Date for the Class A-5 Notes, the excess, if any, of (a) the Class
A-5 Noteholders' Interest Distribution Amount on the immediately preceding
Auction Rate Distribution Date for the Class A-5 Notes over (b) the amount of
interest actually distributed to the Class A-5 Noteholders on such immediately
preceding Auction Rate Distribution Date, plus interest accrued on the amount of
such interest due to the Class A-5 Noteholders, to the extent permitted by law,
at the Class A-5 Rate for the related Interest Accrual Period, from such
immediately preceding Auction Rate Distribution Date to the current Auction Rate
Distribution Date, as determined by the Trustee.

      "Class A-5 Noteholder" shall mean the Person in whose name a Class A-5
Note is registered on the Note registration books maintained by the Trustee.

      "Class A-5 Noteholders' Accrued Interest Amount" shall mean, for each
Quarterly Distribution Date, the Class A-5 Noteholders' Interest Distribution
Amount payable to the Class A-5 Notes on the Auction Rate Distribution Date for
the Class A-5 Notes immediately following such Quarterly Distribution Date;
provided, however, the Class A-5 Noteholders' Accrued Interest Amount will be
zero for any Quarterly Distribution Date that is also an Auction Rate
Distribution Date for the Class A-5 Notes.

      "Class A-5 Noteholders' Interest Distribution Amount" shall mean, for each
Auction Rate Distribution Date for the Class A-5 Notes, the sum of (a) the
amount of interest accrued at the Class A-5 Rate for the related Interest
Accrual Period on the aggregate outstanding principal

                                       9
<PAGE>

balance of the Class A-5 Notes immediately prior to such Auction Rate
Distribution Date; and (b) the Class A-5 Note Interest Shortfall for such
Distribution Date, as based on the actual number of days in such Interest
Accrual Period divided by 360.

      "Class A-5 Notes" shall mean the $55,850,000 Class A-5 Student Loan
Asset-Backed Notes, Series 2004-A, issued by the Issuer pursuant to this
Indenture, substantially in the form of Exhibit B-5 hereto.

      "Class A-5 Rate" shall mean, for any Interest Accrual Period for the Class
A-5 Notes, other than the first Interest Accrual Period, the Auction Note
Interest Rate applicable to such class for such Interest Accrual Period, and for
the first Interest Accrual Period, the Initial Auction Rate for such class.

      "Class A-6 Carry-Over Amount" shall mean, for any Distribution Date
relating to the Class A-6 Notes, any unpaid Carry Over Amounts with respect to
the Class A-6 Notes.

      "Class A-6 Maturity Date" shall mean the December 28, 2043 Quarterly
Distribution Date.

      "Class A-6 Note Interest Shortfall" shall mean, for each Auction Rate
Distribution Date for the Class A-6 Notes, the excess, if any, of (a) the Class
A-6 Noteholders' Interest Distribution Amount on the immediately preceding
Auction Rate Distribution Date for the Class A-6 Notes over (b) the amount of
interest actually distributed to the Class A-6 Noteholders on such immediately
preceding Auction Rate Distribution Date, plus interest accrued on the amount of
such interest due to the Class A-6 Noteholders, to the extent permitted by law,
at the Class A-6 Rate for the related Interest Accrual Period, from such
immediately preceding Auction Rate Distribution Date to the current Auction Rate
Distribution Date, as determined by the Trustee.

      "Class A-6 Noteholder" shall mean the Person in whose name a Class A-6
Note is registered on the Note registration books maintained by the Trustee.

      "Class A-6 Noteholders' Accrued Interest Amount" shall mean, for each
Quarterly Distribution Date, the Class A-6 Noteholders' Interest Distribution
Amount payable to the Class A-6 Notes on the Auction Rate Distribution Date for
the Class A-6 Notes immediately following such Quarterly Distribution Date;
provided, however, the Class A-6 Noteholders' Accrued Interest Amount will be
zero for any Quarterly Distribution Date that is also an Auction Rate
Distribution Date for the Class A-6 Notes.

      "Class A-6 Noteholders' Interest Distribution Amount" shall mean, for each
Auction Rate Distribution Date for the Class A-6 Notes, the sum of (a) the
amount of interest accrued at the Class A-6 Rate for the related Interest
Accrual Period on the aggregate outstanding principal balance of the Class A-6
Notes immediately prior to such Auction Rate Distribution Date; and (b) the
Class A-6 Note Interest Shortfall for such Distribution Date, as based on the
actual number of days in such Interest Accrual Period divided by 360.

                                       10
<PAGE>

      "Class A-6 Notes" shall mean the $55,850,000 Class A-6 Student Loan
Asset-Backed Notes, Series 2004-A, issued by the Issuer pursuant to this
Indenture, substantially in the form of Exhibit B-5 hereto.

      "Class A-6 Rate" shall mean, for any Interest Accrual Period for the Class
A-6 Notes, other than the first Interest Accrual Period, the Auction Note
Interest Rate applicable to such class for such Interest Accrual Period, and for
the first Interest Accrual Period, the Initial Auction Rate for such class.

      "Class B Auction Rate Notes" shall mean the Class B Notes.

      "Class B Beneficiary" shall mean each Registered Owner of Class B Notes.

      "Class B Notes" shall mean, the Class B Notes secured on a subordinate
priority to the Class A Obligations.

      "Class B Noteholders' Interest Distribution Amount" shall mean, for any
Auction Rate Distribution Date or Quarterly Distribution Date and the Class B
Notes, the Class B Noteholders' Interest Distribution Amount, to the extent
payable on such Auction Rate Distribution Date or Quarterly Distribution Date.

      "Class B Obligations" shall mean Class B Notes, the priority of payment of
which is subordinate to that of Class A Notes.

      "Class B Carry-Over Amount" shall mean, for any Distribution Date, any
unpaid Carry-Over Amounts with respect to the Class B Notes.

      "Class B Maturity Date" shall mean the December 28, 2043 Quarterly
Distribution Date.

      "Class B Note Interest Shortfall" shall mean, for each Auction Rate
Distribution Date for the Class B Notes, the excess, if any, of (a) the Class B
Noteholders' Interest Distribution Amount on the immediately preceding Auction
Rate Distribution Date for the Class B Notes over (b) the amount of interest
actually distributed to the Class B Noteholders on such immediately preceding
Auction Rate Distribution Date, plus interest accrued on the amount of such
interest due to the Class B Noteholders, to the extent permitted by law, at the
Class B Rate for the related Interest Accrual Period, from such immediately
preceding Auction Rate Distribution Date to the current Auction Rate
Distribution Date, as determined by the Trustee.

      "Class B Noteholder" shall mean the Person in whose name a Class B Note is
registered on the Note registration books maintained by the Trustee.

      "Class B Noteholders' Accrued Interest Amount" shall mean, for each
Quarterly Distribution Date, the Class B Noteholders' Interest Distribution
Amount payable to the Class B Notes on the Auction Rate Distribution Date for
the Class B Notes immediately following such Quarterly Distribution Date;
provided, however, the Class B Noteholders' Accrued Interest Amount will be zero
for any Quarterly Distribution Date that is also an Auction Rate Distribution
Date for the Class B Notes.

                                       11
<PAGE>

      "Class B Noteholders' Interest Distribution Amount" shall mean, for each
Auction Rate Distribution Date for the Class B Notes, the sum of (a) the amount
of interest accrued at the Class B Rate for the related Interest Accrual Period
on the aggregate outstanding principal balance of the Class B Notes immediately
prior to such Auction Rate Distribution Date; and (b) the Class B Note Interest
Shortfall for such Distribution Date, as based on the actual number of days in
such Interest Accrual Period divided by 360.

      "Class B Notes" shall mean the $55,700,000 Class B Student Loan
Asset-Backed Notes, Series 2004-A, issued by the Issuer pursuant to this
Indenture, substantially in the form of Exhibit B-5 hereto.

      "Class B Rate" shall mean, for any Interest Accrual Period for the Class B
Notes, other than the first Interest Accrual Period, the Auction Note Interest
Rate applicable to such class for such Interest Accrual Period, and for the
first Interest Accrual Period, the Initial Auction Rate for such class.

      "Clearing Agency" shall mean an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act. The initial Clearing Agency
shall be The Depository Trust Company and the initial nominee for the Clearing
Agency shall be Cede & Co.

      "Clearing Agency Participant" shall mean a broker, dealer, bank, other
financial institution or other Person for whom from time to time a Clearing
Agency effects book-entry transfers and pledges of securities deposited with the
Clearing Agency.

      "Closing Date" shall mean April 28, 2004.

      "Code" shall mean the Internal Revenue Code of 1986, as amended from time
to time. Each reference to a section of the Code herein shall be deemed to
include the United States Treasury Regulations, including applicable temporary
and proposed regulations, relating to such section which are applicable to the
Notes or the use of the proceeds thereof. A reference to any specific section of
the Code shall be deemed also to be a reference to the comparable provisions of
any enactment which supersedes or replaces the Code thereunder from time to
time.

      "Collection Fund" shall mean the Fund by that name created in Section
5.01(b) hereof and further described in Section 5.03 hereof.

      "Collection Period" shall mean, with respect to the first Quarterly
Distribution Date, the period beginning on the Closing Date and ending on August
31, 2004, and with respect to each subsequent Quarterly Distribution Date, the
Collection Period means the three calendar months immediately following the end
of the previous Collection Period, beginning September 1, 2004.

      "Commission" shall mean the Securities and Exchange Commission.

      "Confirmation" shall (i) have the meaning set forth in the definition of
the Initial LIBOR Derivative Product Agreement and (ii) any other confirmation
entered into pursuant to a Derivative Product Agreement entered into subsequent
to the Closing Date.

                                       12
<PAGE>

      "Contract of Insurance" shall mean the contract of insurance between the
Eligible Lender and the Secretary.

      "Counterparties" shall mean, collectively, (i) the Initial Counterparty
and its successors and assigns and (ii) the counterparties to any Derivative
Product Agreements entered into pursuant to Section 3.03.

      "Counterparty Payments" shall mean any payment to be made to, or for the
benefit of, the Issuer under the Derivative Product Agreements.

      "Custodian" shall mean CFS-SunTech Servicing LLC, as custodian pursuant to
the Custodian Agreement and its successors and assigns in such capacity, and any
other Person entering into a similar agreement and satisfying the Rating Agency
Confirmation.

      "Custodian Agreement" shall mean the Custodian Agreement, dated as of
April 1, 2004, among CFS-SunTech Servicing LLC, the Issuer and the Trustee.

      "Cutoff Date" shall mean (i) with respect to the initial pool of Financed
Eligible Loans, the Closing Date; and (ii) with respect to subsequently acquired
Eligible Loans, the date on which such Eligible Loans are transferred to the
Trust.

      "Delaware Trustee" shall mean Wilmington Trust Company, not in its
individual capacity but solely as trustee under the Trust Agreement, and its
successors and assigns in such capacity.

      "Delaware Trustee Fee" shall mean the annual administration fee set forth
in the Fee and Indemnity Agreement dated as of April 1, 2004 between the
Delaware Trustee and Collegiate Funding Services, L.L.C., payable on each
Quarterly Distribution Date, beginning on the September 2004 Quarterly
Distribution Date. Such fee shall not in any year exceed the amount set forth in
the cashflows delivered to the Rating Agencies unless the Issuer obtains a
Rating Agency Confirmation.

      "Department" shall mean the United States Department of Education, an
agency of the Federal government.

      "Derivative Product Agreements" shall mean, collectively, (i) the Initial
LIBOR Derivative Product Agreement and (ii) any other derivative product
agreement entered into pursuant to Section 3.03 hereof.

      "Derivative Value" shall mean the value of a Derivative Product Agreement,
if any, to the Counterparty, provided that such value is defined and calculated
as provided in the applicable provisions of such Derivative Product Agreement.

      "Distribution Date" shall mean (i) for an Auction Rate Note, each related
Auction Rate Distribution Date and (ii) for a LIBOR Rate Note and, to the extent
specified herein with respect to certain amounts owed under the Auction Rate
Notes and to other parties, each Quarterly Distribution Date.

                                       13
<PAGE>

      "Eligible Lender" shall mean (i) the Eligible Lender Trustee and (ii) any
"eligible lender," as defined in the Act, and which has received an eligible
lender designation from the Secretary with respect to Eligible Loans made under
the Act.

      "Eligible Lender Trust Agreements" shall mean (i) the Issuer Eligible
Lender Trust Agreement, (ii) the Eligible Lender Trust Agreement, dated as of
April 1, 2004, between the Sponsor, as grantor, and the Eligible Lender Trustee,
as eligible lender trustee, and (iii) any similar agreement entered into by the
Issuer or the Sponsor and an "eligible lender" under the Higher Education Act
pursuant to which such "eligible lender" holds Financed Eligible Loans as legal
owner in trust for the Issuer or the Sponsor as beneficial owner, in each case
as supplemented or amended from time to time.

      "Eligible Lender Trustee" shall mean U.S. Bank National Association, as
trustee under the Eligible Lender Trust Agreements and this Agreement, and its
successors and assigns in such capacity.

      "Eligible Loan" shall mean any consolidation loan or Add-on Consolidation
Loan made to a borrower for or in connection with post-secondary education that
is originated pursuant to Section 528C of the Act.

      "Eligible Loan Acquisition Certificate" shall mean a certificate signed by
an Authorized Representative of the Issuer in substantially the form attached as
Exhibit A hereto.

      "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended.

      "Event of Bankruptcy" shall mean (a) the Issuer shall have commenced a
voluntary case or other proceeding seeking liquidation, reorganization or other
relief with respect to itself or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, or shall have made a general assignment for
the benefit of creditors, or shall have declared a moratorium with respect to
its debts or shall have failed generally to pay its debts as they become due, or
shall have taken any action to authorize any of the foregoing; or (b) an
involuntary case or other proceeding shall have been commenced against the
Issuer seeking liquidation, reorganization or other relief with respect to it or
its debts under any bankruptcy, insolvency or other similar law now or hereafter
in effect or seeking the appointment of a trustee, receiver, liquidator,
custodian or other similar official of it or any substantial part of its
property provided such action or proceeding is not dismissed within 60 days.

      "Event of Default" shall have the meaning specified in Article VI hereof.

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

      "Final Maturity Date" for a class of Notes shall mean the Class A-1
Maturity Date, the Class A-2 Maturity Date, the Class A-3 Maturity Date, the
Class A-4 Maturity Date, the Class A-5 Maturity Date, the Class A-6 Maturity
Date or the Class B Maturity Date, as applicable.

                                       14
<PAGE>

      "Financed" or "Financing" when used with respect to Eligible Loans or
Student Loans, shall mean or refer to Eligible Loans or Student Loans (a)
acquired by the Issuer with balances in the Acquisition Fund or otherwise
deposited in or accounted for in the Acquisition Fund or otherwise constituting
a part of the Trust Estate and (b) Eligible Loans or Student Loans substituted
or exchanged for Financed Eligible Loans or Student Loans, but does not include
Eligible Loans or Student Loans released from the lien of this Indenture and
sold or transferred, to the extent permitted by this Indenture.

      "Fiscal Year" shall mean the fiscal year of the Issuer (initially January
1 to December 31) as otherwise established from time to time.

      "Five-Month LIBOR" see "One-Month LIBOR" herein.

      "Four-Month LIBOR" see "One-Month LIBOR" herein.

      "Funds" shall mean each of the Funds and Accounts created pursuant to
Sections 5.01 hereof.

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

      "Guarantee Agreements" shall mean a guaranty or lender agreement between
the Eligible Lender Trustee and any Guaranty Agency, and any amendments thereto.

      "Guaranty Agency" or "Guarantor" shall mean any entity authorized to
guarantee student loans under the Act and with which the Eligible Lender Trustee
maintains a Guarantee Agreement.

      "H.15(519)" shall mean the weekly statistical release designated as such,
or any successor publication, published by the Board of Governors of the United
States Federal Reserve System.

      "H.15 Daily Update" shall mean the daily update for H.15 (519), available
through the world wide web site of the Board of Governors of the Federal Reserve
System at http://www.federalreserve.gov/releases/h15/update, or any successor
site or publications.

      "Highest Priority Obligations" shall mean at any time when Class A
Obligations are Outstanding, the Class A Obligations and at any time when no
Class A Obligations are Outstanding, the Class B Obligations.

                                       15
<PAGE>

      "Indenture" shall mean this Indenture of Trust, including any supplement
hereto or amendment hereof entered into in accordance with the provisions
hereof.

      "Independent" shall mean, when used with respect to any specified Person,
that the Person (a) is in fact independent of the Trust, any other obligor upon
the Notes, the Seller and any Affiliate of any of the foregoing Persons; (b)
does not have any direct financial interest or any material indirect financial
interest in the Trust, any such other obligor, the Seller or any Affiliate of
any of the foregoing Persons; and (c) is not connected with the Trust, any such
other obligor, the Seller or any Affiliate of any of the foregoing Persons as an
officer, employee, promoter, underwriter, placement agent, trustee, partner,
director or person performing similar functions.

      "Independent Certificate" shall mean a certificate or opinion to be
delivered to the Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of the Indenture, made by an
Independent appraiser or other expert appointed by an Issuer Order and approved
by the Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of "Independent"
in the Indenture and that the signer is Independent within the meaning thereof.

      "Index Maturity" shall mean (i) for One-Month LIBOR, one month, (ii) for
Three-Month LIBOR, three months, (iii) for Four-Month LIBOR, four months and
(iv) for Five-Month LIBOR, five months, (v) for Six-Month LIBOR, six months and
(vi) for One-Year LIBOR, one year.

      "Initial Counterparty" shall mean The Bank of New York, as counterparty
pursuant to the Initial LIBOR Derivative Product Agreement.

      "Initial LIBOR Derivative Product Agreement" shall mean the ISDA Master
Agreement (including the schedule thereto), and the related Confirmation, Ref.
No. R33819, dated April 12, 2004, between the Issuer and the Initial
Counterparty (the "Confirmation").

      "Initial Pool Balance" shall mean the Pool Balance as of the initial
Cutoff Date, which is $858,022,403.33.

      "Insurance" or "Insured" or "Insuring" shall mean, with respect to an
Eligible Loan, the insuring by the Secretary (as evidenced by a Certificate of
Insurance or other document or certification issued under the provisions of the
Act) under the Act of 100% of the principal of and accrued interest on such
Eligible Loan.

      "Interest Benefit Payment" shall mean an interest payment on Eligible
Loans received pursuant to the Act and an agreement with the federal government,
or any similar payments.

      "Interest Accrual Period" shall mean (i) with respect to each class of
LIBOR Rate Notes, initially, the period commencing on the Closing Date to but
not including the first Quarterly Distribution Date, and thereafter, with
respect to each Quarterly Distribution Date, the period beginning on the prior
Quarterly Distribution Date and ending on the day immediately preceding

                                       16
<PAGE>

such Quarterly Distribution Date and (ii) with respect to each class of Auction
Rate Notes, the period described as such in Annex 1 hereto.

      "Investment Securities" shall mean:

                  (i) direct obligations of, or obligations on which the timely
            payment of the principal of and interest on which are
            unconditionally and fully guaranteed by, the United States of
            America;

                  (ii) interest-bearing time or demand deposits, certificates of
            deposit or other similar banking arrangements with a maturity of 12
            months or less with any bank, trust company, national banking
            association or other depository institution, including those of the
            Trustee, provided that, at the time of deposit or purchase such
            depository institution has commercial paper which is rated "A-1+" by
            S&P and "P-1" by Moody's;

                  (iii) bonds, debentures, notes or other evidences of
            indebtedness issued or guaranteed by any of the following agencies:
            Federal Farm Credit Banks, Federal Home Loan Mortgage Corporation;
            the Export-Import Bank of the United States; the Federal National
            Mortgage Association; the Student Loan Marketing Association; the
            Farmers Home Administration; Federal Home Loan Banks provided such
            obligation is rated "AAA" by S&P and "Aaa" by Moody's; or any agency
            or instrumentality of the United States of America which shall be
            established for the purposes of acquiring the obligations of any of
            the foregoing or otherwise providing financing therefor;

                  (iv) repurchase agreements and reverse repurchase agreements,
            other than overnight repurchase agreements and overnight reverse
            repurchase agreements, with banks, including the Trustee and any of
            its affiliates, which are members of the Federal Deposit Insurance
            Corporation or firms which are members of the Securities Investors
            Protection Corporation, in each case whose outstanding, unsecured
            debt securities are rated "A" or higher by S&P and "Aa3" or higher
            by Moody's (if such depository institution does not have commercial
            paper rated by Moody's ) or "A1" or higher (if such depository
            institution has commercial paper which is rated "P-1" by Moody's ),
            and, if commercial paper is outstanding, commercial paper which is
            rated "A-1+" by S&P and "P-1" by Moody's;

                  (v) overnight repurchase agreements and overnight reverse
            repurchase agreements with a Rating Agency Confirmation from each
            Rating Agency;

                  (vi) investment agreements or guaranteed investment contracts,
            which may be entered into by and among the Issuer and/or the Trustee
            and any bank, bank holding company, corporation or any other
            financial institution, including the Trustee and any of its
            affiliates, whose outstanding (i) commercial paper is rated "A-1+"
            by S&P and "P-1" by Moody's for agreements or contracts with a
            maturity of 12 months or less; (ii) unsecured long-term debt is
            rated no lower than

                                       17
<PAGE>

            two subcategories below the highest rating on any series of
            Outstanding Notes by S&P and Moody's and, if commercial paper is
            outstanding, commercial paper which is rated "A-1+" by S&P and "P-1"
            by Moody's for agreements or contracts with a maturity of 24 months
            or less, but more than 12 months, or (iii) unsecured long-term debt
            which is rated no lower than two subcategories below the highest
            rating on any series of Outstanding Notes by S&P and Moody's (if
            such depository institution does not have commercial paper rated by
            Moody's ) or "A1" or higher (if such depository institution has
            commercial paper which is rated "P-1" by Moody's ), and, if
            commercial paper is outstanding, commercial paper which is rated
            "A-1+" by S&P and "P-1" by Moody's for agreements or contracts with
            a maturity of more than 24 months, or, in each case, by an insurance
            company whose claims-paying ability is so rated;

                  (vii) "tax exempt bonds" as defined in Section 150(a)(6) of
            the Code, other than "specified private activity bonds" as defined
            in Section 57(a)(5)(C) of the Code, that are rated in the highest
            category by S&P and Moody's for long-term or short-term debt or
            shares of a so-called money market or mutual fund rated
            "AAAm/AAAm-G" or higher by S&P and "Aaa" or higher by Moody's, that
            do not constitute "investment property" within the meaning of
            Section 148(b)(2) of the Code, provided that the fund has all of its
            assets invested in obligations of such rating quality;

                  (viii) commercial paper, including that of the Trustee and any
            of its affiliates, which is rated in the single highest
            classification, "A-1+" by S&P and "P-1" by Moody's, and which
            matures not more than 270 days after the date of purchase;

                  (ix) investments in a money market fund rated at least "AAAm"
            or "AAAm-G" by S&P and "Aaa" by Moody's, including funds for which
            the Trustee or an affiliate thereof acts as investment advisor or
            provides other similar services for a fee; and

                  (x) any other investment with a Rating Agency Confirmation
            from each Rating Agency.

      "ISDA Master Agreement" shall mean the ISDA Master Agreement, copyright
1992, as amended from time to time, and as in effect with respect to any
Derivative Product Agreement.

      "Issuer" shall mean Collegiate Funding Services Education Loan Trust
2004-A, a Delaware statutory trust, and any successor or assignee thereto under
this Indenture.

      "Issuer Derivative Payment" shall mean any payment required to be made by
or on behalf of the Issuer to a Counterparty pursuant to the respective
Derivative Product Agreement.

      "Issuer Eligible Lender Trust Agreement" shall mean the Eligible Lender
Trust Agreement dated as of April 1, 2004, between the Issuer and the Eligible
Lender Trustee, as supplemented or amended from time to time.

                                       18
<PAGE>

      "Issuer Order" shall mean a written order signed in the name of the Issuer
by an Authorized Representative.

      "Joint Sharing Agreement" shall mean the Joint Sharing Agreement, dated as
of February 1, 2003, among the Joint Sharing Agreement Parties, as amended to
add, or as executed by, the Issuer and the Trustee, as eligible lender trustee
for the Issuer.

      "Joint Sharing Agreement Parties" shall mean Collegiate Funding Services
Education Loan Trust I, Collegiate Funding Services Education Loan Trust 2003-A,
Collegiate Funding Services Education Loan Trust 2003-B and U.S. Bank National
Association, as eligible lender trustee and any other parties from time to time
party to the Joint Sharing Agreement.

      "LIBOR" shall mean One-Month LIBOR, Three-Month LIBOR, Four-Month LIBOR,
Five-Month LIBOR, Six-Month LIBOR or One-Year LIBOR, as applicable.

      "LIBOR Determination Date" shall mean, for each Interest Accrual Period,
the second Business Day before the beginning of that Interest Accrual Period.

      "LIBOR Rate Notes" shall mean the Class A-1 Notes, the Class A-2 Notes,
the Class A-3 Notes and the Class A-4 Notes.

      "Liquidated Financed Eligible Loan" shall mean any defaulted Financed
Eligible Loan liquidated by the Servicer (which shall not include any Financed
Eligible Loan on which payments are received from a Guaranty Agency) or which
the Servicer has, after using all reasonable efforts to realize upon such
Financed Eligible Loan, determined to charge off.

      "Liquidation Proceeds" shall mean, with respect to any Liquidated Financed
Eligible Loan which became a Liquidated Financed Eligible Loan during the
current Collection Period in accordance with the Servicer's customary servicing
procedures, the moneys collected in respect of the liquidation thereof from
whatever source, other than moneys collected with respect to any Liquidated
Financed Eligible Loan which was written off in prior Collection Periods or
during the current Collection Period, net of the sum of any amounts expended by
the Servicer in connection with such liquidation and any amounts required by law
to be remitted to the obligor on such Liquidated Financed Eligible Loan.

      "Master Promissory Note" shall mean a Master Promissory Note in the form
mandated by Section 432(m)(1) of the Higher Education Act, as added by Pub. L.
105-244 Section 427, 112 Stat. 1702 (1998), as amended by Public Law No: 106-554
(enacted December 21, 2000) and as codified in 20 U.S.C. Section 1082(m)(1).

      "Master Servicer" shall mean Collegiate Funding Master Servicing, L.L.C.,
as master servicer pursuant to the Master Servicing Agreement.

      "Master Servicing Agreement" shall mean the Master Servicing Agreement
dated as of April 1, 2004, between the Issuer and Collegiate Funding Master
Servicing, L.L.C., as master servicer, as supplemented and amended from time to
time.

                                       19
<PAGE>

      "Material Adverse Effect" shall mean (1) any change in the Termination
Date (as defined in a relevant Derivative Product Agreement) or the due date for
any payment required to be made by the Issuer to the Counterparty pursuant to
the terms of the relevant Derivative Product Agreement, or any change to the
Notional Amount (as defined in the relevant Derivative Product Agreement) other
than as contemplated pursuant to the terms of the relevant Derivative Product
Agreement or any change to the Fixed Rate Payer Notional Amount or the Fixed
Rate or the Floating Rate Payer Notional Amount or the Floating Rate or the
Spread (each as defined in the Derivative Product Agreement) or any other amount
payable under the relevant Derivative Product Agreement, or any change in the
priority of the payments to be made to the Counterparty by the Issuer (subject
to the priority of payment provisions of the Indenture); (2) a change in the
right of the Counterparty to consent to supplemental indentures and (3) any
change to the definition of Material Adverse Effect or any change in the
definition of term (whether used directly or indirectly) used in any provision
described in the foregoing Clauses (1) or(2).

      "Maturity" when used with respect to any Note, shall mean the date on
which the principal thereof becomes due and payable as therein or herein
provided, whether at its Final Maturity Date, by earlier prepayment or purchase,
by declaration of acceleration, or otherwise.

      "Minimum Purchase Amount" shall mean, on any Quarterly Distribution Date,
an amount that would be sufficient to (a) reduce the Outstanding Amount of each
class of Notes on such Quarterly Distribution Date to zero; (b) pay to the
respective Registered Owners the Class A Noteholders' Interest Distribution
Amount and the Class B Noteholders' Interest Distribution Amount payable on such
Quarterly Distribution Date; (c) pay any Servicing Fees and Carryover Servicing
Fees due and owing; (d) pay any Issuer Derivative Payments due and owing; and
(e) in the case of the Auction Rate Notes, pay any Carry-Over Amounts and
interest on such amounts.

      "Monthly Payment Date" shall mean the 28th day of each calendar month or,
if such day is not a Business Day, the immediately succeeding Business Day,
commencing in May 2004.

      "Moody's" shall mean Moody's Investors Service, Inc., its successors and
assigns.

      "MPN Loan" shall mean a loan originated pursuant to the Federal Family
Education Loan Program and the Act and evidenced by a Master Promissory Note.

      "Noteholder" shall mean the Person in whose name a Note is registered in
the Note registration books of the Trustee.

      "Note Rates" shall mean, with respect to any Interest Accrual Period, the
Class A-1 Rate, the Class A-2 Rate, the Class A-3 Rate, the Class A-4 Rate, the
Class A-5 Rate, the Class A-6 Rate and the Class B Rate for such Interest
Accrual Period, respectively.

      "Notes" shall mean, collectively, the Class A Notes and the Class B Notes.

      "Obligations" shall mean Class A Obligations and Class B Obligations.

      "One-Month LIBOR," "Three-Month LIBOR," "Four-Month LIBOR," "Five-Month
LIBOR," "Six-Month LIBOR" and "One-Year LIBOR" shall mean, with respect to any
Interest

                                       20
<PAGE>

Accrual Period, the London interbank offered rate for deposits in U.S. dollars
having the applicable Index Maturity as it appears on Telerate Page 3750 as of
11:00 a.m., London time, on the related LIBOR Determination Date as determined
by, in the case of the LIBOR Rate Notes, the Trustee, and in the case of the
Auction Rate Notes, the Auction Agent or the Trustee, as applicable. If this
rate does not appear on Telerate Page 3750, the rate for that day will be
determined on the basis of the rates at which deposits in U.S. dollars, having
the index maturity and in a principal amount of not less than U.S. $1,000,000,
are offered at approximately 11:00 a.m., London time, on that LIBOR
Determination Date, to prime banks in the London interbank market by the
Reference Banks. The Trustee or the Auction Agent, as applicable, will request
the principal London office of each Reference Bank to provide a quotation of its
rate. If the Reference Banks provide at least two quotations, the rate for that
day will be the arithmetic mean of the quotations. If the Reference Banks
provide fewer than two quotations, the rate for that day will be the arithmetic
mean of the rates quoted by major banks in New York City, selected by the
Trustee or the Auction Agent, as applicable, at approximately 11:00 a.m., New
York time, on that LIBOR Determination Date, for loans in U.S. dollars to
leading European banks having the Index Maturity and in a principal amount of
not less than U.S. $1,000,000. If the banks selected as described above are not
providing quotations, One-Month-LIBOR, Three-Month LIBOR, Four-Month LIBOR,
Five-Month LIBOR, Six-Month LIBOR or One-Year LIBOR, as the case may be, in
effect for the applicable Interest Accrual Period will be in effect for the
previous Interest Accrual Period.

      "One-Year LIBOR" see "One-Month LIBOR" herein.

      "Opinion of Counsel" shall mean (a) with respect to the Trust, one or more
written opinions of counsel who may, except as otherwise expressly provided in
the Indenture, be employees of or counsel to the Delaware Trustee, the Trust,
the Seller or an Affiliate of the Seller and who shall be satisfactory to the
Trustee, and which opinion or opinions shall be addressed to the Trustee as
Trustee, shall comply with any applicable requirements of the TIA and shall be
in form and substance satisfactory to the Trustee; and (b) with respect to the
Seller, the Administrator or the Servicer, one or more written opinions of
counsel who may be an employee of or counsel to the Seller, the Administrator or
the Servicer, which counsel shall be acceptable to the Trustee and the Delaware
Trustee.

      "Optional Purchase Date" shall have the meaning set forth in Section 10.03
hereof.

      "Outstanding" shall mean, when used in connection with any Note, a Note
which has been executed and delivered pursuant to this Indenture which at such
time remains unpaid as to principal or interest, excluding Notes which have been
replaced pursuant to Section 2.03 hereof , and when used in connection with a
Derivative Product Agreement, a Derivative Product Agreement which has not
expired or been terminated, unless provision has been made for such payment
pursuant to Section 10.02 hereof.

      "Outstanding Amount" shall mean the aggregate principal amount of all
Notes Outstanding at the date of determination or, if the context so requires,
the aggregate principal amount of one or more classes of Class A Notes
Outstanding at the date of determination.

                                       21
<PAGE>

      "Person" shall mean an individual, corporation, partnership, joint
venture, association, joint stock company, trust, limited liability company,
unincorporated organization or government or agency, or political subdivision
thereof.

      "Pool Balance" shall mean as of any date the aggregate principal balance
of the Financed Eligible Loans on such date (including accrued interest thereon
that is expected to be capitalized), plus amounts on deposit in the Acquisition
Fund and the Add-on Consolidation Loan Fund, as reduced by the principal portion
of the following, without duplication: (a) all payments received by the Issuer
through such date from or on behalf of borrowers on such Financed Eligible
Loans, including payments by Guaranty Agencies and the Department; (b) all
Purchase Amounts on Financed Eligible Loans received by the Issuer through such
date from the Seller or the Servicer; (c) all Liquidation Proceeds and Realized
Losses on Financed Eligible Loans liquidated through such date; (d) the
aggregate amount of adjustments to balances of Financed Eligible Loans permitted
to be effected by a Servicer under a Servicing Agreement, if any, recorded
through such date; and (e) the aggregate amount by which reimbursements by
Guarantors of the unpaid principal balance of defaulted Financed Eligible Loans
through such date are reduced from 100% to 98% or other applicable percentage,
as required by the risk sharing provisions of the Act. The Pool Balance shall be
calculated by the Administrator and certified to the Trustee, upon which the
Trustee may conclusively rely with no duty to further examine or determine such
information.

      "Principal Distribution Amount" shall mean, with respect to each Quarterly
Distribution Date, the amount by which the Outstanding Amount of the Notes
immediately prior to such Quarterly Distribution Date exceeds the quotient
obtained by dividing the Adjusted Pool Balance as of the last day of the related
Collection Period by 100.75%. For the initial Quarterly Distribution Date, the
"Principal Distribution Amount" also will include any amounts transferred from
the Acquisition Fund to the Collection Fund during the initial Collection
Period. For the December 2004 Quarterly Distribution Date, the "Principal
Distribution Amount" also will include any amounts transferred from the Add-on
Consolidation Loan Fund to the Collection Fund during the preceding Collection
Period. Further, on the Final Maturity Date for a class of Notes, the "Principal
Distribution Amount" on that date also shall include the amount needed to reduce
the Outstanding principal amount of such class of Notes to zero.

      "Principal Office" shall mean the principal office of the party indicated,
as set forth in Section 9.01 hereof or elsewhere in this Indenture.

      "Priority Termination Payment" shall mean, with respect to a Derivative
Product Agreement, any termination payment payable by the Issuer under such
Derivative Product Agreement relating to an early termination of such Derivative
Product Agreement by the Counterparty, as the non-defaulting party, following
(i) a monthly payment default by the Issuer thereunder, (ii) the occurrence of
an Event of Default specified in Section 6.01(d) of this Indenture or (iii) the
Trustee's taking any action hereunder to liquidate the Trust Estate following an
Event of Default and acceleration of the Notes pursuant to Section 6.04 hereof.

      "Program" shall mean the Sponsor's program for the origination and the
purchase of Eligible Loans, as the same may be modified from time to time.

                                       22
<PAGE>

      "Purchase Amount" with respect to any Financed Eligible Loan shall mean
the amount required to prepay in full such Financed Eligible Loan under the
terms thereof including all accrued interest thereon and any unamortized
premium, it being acknowledged that any accrued and unpaid Interest Subsidy
Payments or Special Allowance Payments will continue to be payable to the
Trustee and constitute part of the Trust Estate.

      "Quarterly Distribution Date" shall mean the 28th day of each March, June,
September and December (or, if any such day is not a Business Day, the
immediately following Business Day), commencing in September 2004.

      "Rating" shall mean one of the rating categories of Moody's and S&P or any
other Rating Agency, provided Moody's and S&P or any other Rating Agency, as the
case may be, is currently rating the Notes.

      "Rating Agency" shall mean each of Moody's and S&P and their successors
and assigns or any other rating agency requested by the Issuer to maintain a
Rating on any of the Notes.

      "Rating Agency Confirmation" shall mean a letter from each Rating Agency
then providing a Rating for any of the Notes at the request of the Issuer,
confirming that a proposed action, failure to act, or other event specified
therein will not, in and of itself, result in a downgrade of any of the Ratings
then applicable to the Notes, or cause any Rating Agency to suspend, withdraw or
qualify the Ratings then applicable to the Notes.

      "Realized Loss" shall mean the excess of the principal balance (including
any interest that had been or had been expected to be capitalized) of any
Liquidated Financed Eligible Loan over Liquidation Proceeds with respect to such
Financed Eligible Loan to the extent allocable to principal (including any
interest that had been or had been expected to be capitalized).

      "Record Date" shall mean, with respect to a Distribution Date, the
Business Day immediately preceding such Distribution Date.

      "Reference Banks" shall mean, with respect to a determination of LIBOR for
any Interest Accrual Period by the Trustee or the Auction Agent, as applicable,
four major banks in the London interbank market selected by the Trustee or the
Auction Agent, as applicable.

      "Registered Owner" shall mean any Noteholder, except that, solely for the
purpose of giving any consent pursuant to this Indenture, any Note registered in
the name of the Sponsor or any affiliate of the Sponsor shall be deemed not to
be Outstanding and the Outstanding Amount evidenced thereby shall not be taken
into account in determining whether the requisite principal amount of Notes
necessary to effect such consent has been obtained unless at the time the
Sponsor and its affiliates own all of the Notes that are Outstanding.

      "Regulations" shall mean the Regulations promulgated from time to time by
the Secretary or any Guaranty Agency guaranteeing Financed Eligible Loans.

                                       23
<PAGE>

      "Remaining Acquisition Amount" shall mean the excess, if any, of (i) the
amount deposited into the Acquisition Fund on the Closing Date over (ii) the sum
of all amounts withdrawn from the Acquisition Fund up until such date.

      "Reserve Fund" shall mean the Fund by that name created in Section 5.01(c)
hereof and further described in Section 5.04 hereof, including any Accounts and
Subaccounts created therein.

      "Reserve Fund Requirement" shall mean, at any time, an amount equal to the
greater of (i) 0.75% of the Pool Balance, as of the close of business on the
last day of the related Collection Period; and (ii) $1,067,548.

      "S&P" shall mean Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc., its successors and assigns.

      "Secretary" shall mean the Secretary of the United States Department of
Education or any successor to the pertinent functions thereof under the Act.

      "Securities Act" shall mean the Securities Act of 1933, as amended.

      "Securities Depository" or "Depository" shall mean The Depository Trust
Company and its successors and assigns or if, (a) the then Securities Depository
resigns from its functions as depository of the Notes or (b) the Issuer
discontinues use of the Securities Depository, any other securities depository
which agrees to follow the procedures required to be followed by a securities
depository in connection with the Notes and which is selected by the Issuer with
the consent of the Trustee.

      "Seller" shall mean Collegiate Funding of Delaware, L.L.C., and its
successors and assigns.

      "Servicer" shall mean Collegiate Funding Master Servicing, L.L.C., and any
other additional servicer or successor servicer or subservicer selected by the
Issuer, including an affiliate of the Issuer, so long as the Issuer obtains a
Rating Agency Confirmation as to each such other servicer.

      "Servicer's Report" shall mean the servicer reports to be furnished to the
Issuer by the Master Servicer quarterly pursuant to the Master Servicing
Agreement, substantially in the form of Exhibit E hereto.

      "Servicing Agreement" shall mean (i) the Master Servicing Agreement and
(ii) any servicing agreement between the Issuer and any Servicer (or among the
Issuer, the Eligible Lender Trustee and any Servicer), under which such Servicer
agrees to act as the Issuer's agent in connection with the administration and
collection of Financed Eligible Loans in accordance with this Indenture.

      "Servicing Fees" shall mean the fees and expenses due to the Master
Servicer under the terms of the Master Servicing Agreement and the fees and
expenses due to any custodian under

                                       24
<PAGE>

the terms of a Custodian Agreement; provided, however, that such fees and
expenses shall not in any year exceed the amounts set forth in the cashflows
delivered to the Rating Agencies unless the Issuer obtains a Rating Agency
Confirmation.

      "Six-Month LIBOR" see "One-Month LIBOR" herein.

      "Special Allowance Payments" shall mean the special allowance payments
authorized to be made by the Secretary by Section 438 of the Act, or similar
allowances, if any, authorized from time to time by federal law or regulation.

      "Sponsor" shall mean Collegiate Funding of Delaware, L.L.C., and its
successors and assigns and any other Person or Persons as may become a Sponsor
pursuant to the terms of the Trust Agreement.

      "State" shall mean the State of Delaware.

      "Student Loan" shall mean an Eligible Loan.

      "Student Loan Purchase Agreements" shall mean (a) the FFELP Loan Purchase
Agreement, dated as of April 1, 2004, among the Issuer, the Seller, Collegiate
Funding Services, L.L.C. and the Eligible Lender Trustee, (b) the FFELP Loan
Purchase Agreement, dated as of April 1, 2004, among the Seller, Collegiate
Funding Services Resources I, LLC, Collegiate Funding Services, L.L.C. and U.S.
Bank National Association, as eligible lender trustee, and (c) each additional
student loan purchase agreement, if any, entered into among the Issuer, the
Seller and the Eligible Lender Trustee for the purchase of Eligible Loans which
constitute "Add-on Consolidation Loans."

      "Subaccount" shall mean any of the subaccounts which may be created and
established within any Account by this Indenture.

      "Supplemental Indenture" shall mean an agreement supplemental hereto
executed pursuant to Article VIII hereof.

      "Telerate Page 3750" shall mean the display page so designated on the
Telerate Service (or such other page as may replace that page on that service
for the purpose of displaying comparable rates or prices).

      "Termination Payment" shall mean, with respect to a Derivative Product
Agreement, any termination payment payable by the Issuer under such Derivative
Product Agreement relating to an early termination of such Derivative Product
Agreement, after the occurrence of a termination event or event of default
specified in such Derivative Product Agreement, including any Priority
Termination Payment.

      "Three-Month LIBOR" see "One-Month LIBOR" herein.

      "Trust" shall mean the Issuer.

                                       25
<PAGE>

      "Trust Agreement" shall mean the Trust Agreement dated as of April 1,
2004, as amended and restated by the Amended and Restated Trust Agreement, dated
as of April 1, 2004, each between the Delaware Trustee and the Sponsor, as the
same may be amended from time to time.

      "Trust Auction Date" shall have the naming set forth in Section 10.04
hereof.

      "Trust Estate" shall mean the property described as such in the granting
clauses hereto.

      "Trust Indenture Act" or "TIA" shall mean the Trust Indenture Act of 1939,
as amended, and as in force at the date as of which this Indenture was executed,
except as provided in Section 8.05.

      "Trustee" shall mean U.S. Bank National Association, acting in its
capacity as Trustee under this Indenture, or any successor trustee designated
pursuant to this Indenture.

      "Trustee Fee" shall mean an amount equal to the annual amount set forth in
the Trustee Fee Letter dated as of April 1, 2004, payable in installments on
each Quarterly Distribution Date. Such fee shall be in satisfaction of the
Trustee's compensation as trustee under this Indenture and as eligible lender
trustee under the Eligible Lender Trust Agreements. Such fee shall not in any
year exceed the amounts set forth in the cashflows delivered to the Rating
Agencies unless the Issuer obtains a Rating Agency Confirmation.

      Words importing the masculine gender include the feminine gender, and
words importing the feminine gender include the masculine gender. Words
importing persons include firms, associations and corporations. Words importing
the singular number include the plural number and vice versa. Additional terms
are defined in the body of this Indenture.

                                   ARTICLE II

                         NOTE DETAILS AND FORM OF NOTES

      SECTION 2.01 NOTE DETAILS. The Notes, together with the Trustee's
certificate of authentication, shall be in substantially the forms set forth in
Exhibit B, with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the
officers executing the Notes, as evidenced by their execution of the Notes. Any
portion of the text of any Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note.

      The definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the Authorized Representatives executing
such Notes, as evidenced by their execution of such Notes.

                                       26
<PAGE>

      Each Note shall be dated the date of its authentication. The terms of the
Notes set forth in Exhibit B are part of the terms of this Indenture.

      SECTION 2.02 EXECUTION, AUTHENTICATION AND DELIVERY OF NOTES. The Notes
shall be executed in the name and on behalf of the Issuer by the manual or
facsimile signature of an Authorized Representative. Any Note may be signed
(manually or by facsimile) or attested on behalf of the Issuer by any Person
who, at the date of such act, shall hold the proper office or position,
notwithstanding that at the date of authentication, issuance or delivery, such
person may have ceased to hold such office or position.

      The Trustee shall upon Issuer Order authenticate and deliver Notes for
original issue in an aggregate principal amount of $1,113,400,000. The aggregate
principal amount of Notes outstanding at any time may not exceed such amount
except as provided in Section 2.04 hereof.

      Each Note shall be dated the date of its authentication. The Notes shall
be issuable as registered Notes, in the case of the LIBOR Rate Notes, in minimum
denominations of $50,000 and in integral multiples of $1,000 in excess thereof
and, in the case of the Auction Rate Notes, in minimum denominations of $50,000
and integral multiples of $50,000 in excess thereof.

      No Note shall be entitled to any benefit under this Indenture or be valid
or obligatory for any purpose, unless there appears on such Note a certificate
of authentication substantially in the form provided for in Section 2.05 hereof.

      SECTION 2.03 REGISTRATION, TRANSFER AND EXCHANGE OF NOTES; PERSONS TREATED
AS REGISTERED OWNERS. The Issuer shall cause books for the registration and for
the transfer of the Notes as provided in this Indenture to be kept by the
Trustee which is hereby appointed the transfer agent of the Issuer for the
Notes. Notwithstanding such appointment and with the prior written consent of
the Issuer, the Trustee is hereby authorized to make any arrangements with other
institutions which it deems necessary or desirable in order that such
institutions may perform the duties of transfer agent for the Notes. Upon
surrender for transfer of any Note at the Principal Office of the Trustee, duly
endorsed for transfer or accompanied by an assignment duly executed by the
Registered Owner or his attorney duly authorized in writing, the Issuer shall
execute and the Trustee shall authenticate and deliver in the name of the
transferee or transferees a new fully registered Note or Notes of the same
interest rate and for a like series, subseries, if any, and aggregate principal
amount of the same maturity.

      Notes may be exchanged at the Principal Office of the Trustee for a like
aggregate principal amount of fully registered Notes of the same series,
subseries, if any, interest rate and maturity in authorized denominations. The
Issuer shall execute and the Trustee shall authenticate and deliver Notes which
the Registered Owner making the exchange is entitled to receive, bearing numbers
not contemporaneously outstanding. The execution by the Issuer of any fully
registered Note of any authorized denomination shall constitute full and due
authorization of such denomination and the Trustee shall thereby be authorized
to authenticate and deliver such fully registered Note.

      As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or

                                       27
<PAGE>

interest on any fully registered Note shall be made only to or upon the written
order of the Registered Owner thereof or his legal representative but such
registration may be changed as hereinabove provided. All such payments shall be
valid and effectual to satisfy and discharge the liability upon such Note to the
extent of the sum or sums paid.

      Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b) (i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. Section 2510.3-101, it will promptly
dispose of the Notes.

      The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to
Section 2.07 hereof.

      SECTION 2.04 LOST, STOLEN, DESTROYED AND MUTILATED NOTES. Upon receipt by
the Trustee of evidence satisfactory to it of the ownership of and the loss,
theft, destruction or mutilation of any Note and, in the case of a lost, stolen
or destroyed Note, of indemnity satisfactory to it, and upon surrender and
cancellation of the Note, if mutilated, (a) the Issuer shall execute, and the
Trustee shall authenticate and deliver, a replacement Note of the same interest
rate, maturity and denomination in lieu of such lost, stolen, destroyed or
mutilated Note or (b) if such lost, stolen, destroyed or mutilated Note shall
have matured within 15 days be due and payable, in lieu of executing and
delivering a new Note as aforesaid, the Issuer may pay such Note. Any such new
Note shall bear a number not contemporaneously outstanding. The applicant for
any such new Note may be required to pay all taxes and governmental charges and
all expenses and charges of the Issuer and of the Trustee in connection with the
issuance of such Note. All Notes shall be held and owned upon the express
condition that, to the extent permitted by law, the foregoing conditions are
exclusive with respect to the replacement and payment of mutilated, destroyed,
lost or stolen Notes, negotiable instruments or other securities.

      SECTION 2.05 TRUSTEE'S AUTHENTICATION CERTIFICATE. The Trustee's
authentication certificate upon any Notes shall be substantially in the form
attached to the Notes. No Note shall be secured hereby or entitled to the
benefit hereof, or shall be valid or obligatory for any purpose, unless a
certificate of authentication, substantially in such form, has been duly
executed by the Trustee; and such certificate of the Trustee upon any Note shall
be conclusive evidence and the only competent evidence that such Note has been
authenticated and delivered hereunder. The Trustee's certificate of
authentication shall be deemed to have been duly executed by it if manually
signed by an authorized officer or signatory of the Trustee, but it shall not be
necessary that the same person sign the certificate of authentication on all of
the Notes issued hereunder.

      SECTION 2.06 CANCELLATION AND DESTRUCTION OF NOTES BY THE TRUSTEE.
Whenever any Outstanding Notes shall be delivered to the Trustee for the
cancellation thereof pursuant to this

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<PAGE>

Indenture, upon payment of the principal amount and interest represented
thereby, or for replacement pursuant to Section 2.03 hereof, such Notes shall be
promptly cancelled and, within a reasonable time, cremated or otherwise
destroyed by the Trustee and counterparts of a certificate of destruction
evidencing such cremation or other destruction shall be furnished by the Trustee
to the Issuer.

      SECTION 2.07 TEMPORARY NOTES. Pending the preparation of definitive Notes,
the Issuer may execute and the Trustee shall authenticate and deliver temporary
Notes. Temporary Notes shall be issuable as fully registered Notes without
coupons, of any denomination, and substantially in the form of the definitive
Notes but with such omissions, insertions and variations as may be appropriate
for temporary Notes, all as may be determined by the Issuer. Every temporary
Note shall be executed by the Issuer and be authenticated by the Trustee upon
the same conditions and in substantially the same manner, and with like effect,
as the definitive Notes. As promptly as practicable the Issuer shall execute and
shall furnish definitive Notes and thereupon temporary Notes may be surrendered
in exchange therefor without charge at the principal office of the Trustee, and
the Trustee shall authenticate and deliver in exchange for such temporary Notes
a like aggregate principal amount of definitive Notes. Until so exchanged the
temporary Notes shall be entitled to the same benefits under this Indenture as
definitive Notes.

      SECTION 2.08 ISSUANCE OF NOTES. The Issuer shall have the authority, upon
complying with the provisions of this Article II, to issue and deliver the Notes
which shall be secured by the Trust Estate. In addition, the Issuer may, subject
to Section 3.03 hereof, enter into any Derivative Product Agreement it deems
necessary or desirable with respect to any or all of the Notes.

      SECTION 2.09 DEFINITIVE NOTES. If (a) the Administrator advises the
Trustee in writing that the Clearing Agency is no longer willing or able to
discharge its responsibilities with respect to the Notes, and the Administrator
is unable to locate a successor; (b) the Administrator at its option advises the
Trustee in writing that it elects to terminate the book-entry system through the
Clearing Agency; or (c) after the occurrence of an Event of Default, or a
default by a Servicer or the Administrator under a Servicing Agreement or the
Administration Agreement, respectively, Noteholders representing beneficial
interests aggregating at least a majority of the Outstanding Amount of the Notes
advise the Clearing Agency (which shall then notify the Trustee) in writing that
the continuation of a book-entry system through the Clearing Agency is no longer
in the best interests of the Noteholders, then the Trustee shall cause the
Clearing Agency to notify all Noteholders, through the Clearing Agency, of the
occurrence of any such event and of the availability of definitive Notes to
Noteholders requesting the same. Upon surrender to the Trustee of the
typewritten Notes representing the book-entry Notes by the Clearing Agency,
accompanied by registration instructions, the Issuer shall execute and the
Trustee shall authenticate the definitive Notes in accordance with the
instructions of the Clearing Agency. None of the Issuer, the Note Registrar or
the Trustee shall be liable for any delay in delivery of such instructions and
may conclusively rely on, and shall be protected in relying on, such
instructions. Upon the issuance of definitive Notes, the Trustee shall recognize
the holders of the definitive Notes as Registered Owners.

                                       29
<PAGE>

      SECTION 2.10 PAYMENT OF PRINCIPAL AND INTEREST.

            (a) The LIBOR Rate Notes shall accrue interest as provided in the
      forms of the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and Class
      A-4 Notes set forth in Exhibits B-1, B-2, B-3 and B-4 hereto. The Auction
      Rate Notes shall accrue interest as specified in Annex 1 hereto. Such
      interest shall be payable with respect to each class of Notes on each
      applicable Distribution Date as specified in Section 5.03(c) hereof,
      subject to Section 4.01 hereof. Any installment of interest or principal,
      if any, payable on any Note which is punctually paid or duly provided for
      by the Issuer on the applicable Distribution Date shall be paid to the
      Person in whose name such Note is registered on the Record Date by check
      mailed first-class, postage prepaid to such Person's address as it appears
      on the records of the Trustee on such Record Date, except that, unless
      definitive Notes have been issued pursuant to Section 2.09, with respect
      to Notes registered on the Record Date in the name of the nominee of the
      Clearing Agency (initially, such nominee to be Cede & Co.), payment shall
      be made by wire transfer in immediately available funds to the account
      designated by such nominee and except for the final installment of
      principal payable with respect to such Note on a Distribution Date or on
      the Final Maturity Date for such Note which shall be payable as provided
      below.

            (b) The principal of each Note shall be payable in installments on
      each applicable Distribution Date as provided in Section 5.03(c) hereof.
      Notwithstanding the foregoing, the entire unpaid principal amount of each
      class of the Notes shall be due and payable, if not previously paid, on
      the Final Maturity Date for such class of Notes and on the date on which
      an Event of Default shall have occurred and be continuing if the Trustee
      or the Registered Owners of the Notes representing not less than a
      majority of the Outstanding Amount of the Notes have declared the Notes to
      be immediately due and payable in the manner provided in Section 6.02. The
      Trustee shall notify the Person in whose name a Note is registered at the
      close of business on the Record Date preceding the applicable Distribution
      Date (other than the Final Maturity Date) on which the Issuer expects that
      the final installment of principal of and interest on such Note will be
      paid. Such notice shall be mailed or transmitted by facsimile prior to
      such final Distribution Date and shall specify that such final installment
      will be payable only upon presentation and surrender of such Note and
      shall specify the place where such Note may be presented and surrendered
      for payment of such installment.

                                   ARTICLE III

                 PARITY AND PRIORITY OF LIEN; OTHER OBLIGATIONS;
                        AND DERIVATIVE PRODUCT AGREEMENTS

      SECTION 3.01 PARITY AND PRIORITY OF LIEN. The provisions, covenants and
agreements herein set forth to be performed by or on behalf of the Issuer shall
be for the equal benefit, protection and security of the Registered Owners, all
of which shall be of equal rank without preference, priority or distinction of
any of the Obligations over any other thereof, except as expressly provided in
this Indenture with respect to certain payment and other priorities.

                                       30
<PAGE>

      SECTION 3.02 OTHER OBLIGATIONS. The Available Funds and other moneys,
Financed Eligible Loans, securities, evidences of indebtedness, interests,
rights and properties pledged under this Indenture are and will be owned by the
Issuer free and clear of any pledge, lien, charge or encumbrance thereon or with
respect thereto prior to, of equal rank with or subordinate to the respective
pledges created by this Indenture, except as otherwise expressly provided
herein, and all action on the part of the Issuer to that end has been duly and
validly taken. If any Financed Eligible Loan is found to have been subject to a
lien at the time such Financed Eligible Loan was acquired, the Issuer shall
cause such lien to be released, shall purchase such Financed Eligible Loan from
the Trust Estate for a purchase price equal to its principal amount plus any
unamortized premium, if any, and interest accrued thereon plus any Special
Allowance Payments that may not be payable to the Trustee or shall replace such
Financed Eligible Loan with another Eligible Loan with substantially identical
characteristics which replacement Eligible Loan shall be free and clear of liens
at the time of such replacement. Except as otherwise provided herein, the Issuer
shall not create or voluntarily permit to be created any debt, lien or charge on
the Financed Eligible Loans which would be on a parity with, subordinate to, or
prior to the lien of this Indenture; shall not do or omit to do or suffer to be
done or omitted to be done any matter or things whatsoever whereby the lien of
this Indenture or the priority of such lien for the Obligations hereby secured
might or could be lost or impaired; and will pay or cause to be paid or will
make adequate provisions for the satisfaction and discharge of all lawful claims
and demands which if unpaid might by law be given precedence to or any equality
with this Indenture as a lien or charge upon the Financed Eligible Loans;
provided, however, that nothing in this Section 3.02 shall require the Issuer to
pay, discharge or make provision for any such lien, charge, claim or demand so
long as the validity thereof shall be by it in good faith contested, unless
thereby, in the opinion of the Trustee, the same will endanger the security for
the Obligations; and provided further that any subordinate lien hereon (i.e.,
subordinate to the lien securing the Class A Obligations and the Class B
Obligations) shall be entitled to no payment from the Trust Estate, nor may any
remedy be exercised with respect to such subordinate lien against the Trust
Estate until all Obligations have been paid or deemed paid hereunder.

      SECTION 3.03 DERIVATIVE PRODUCT AGREEMENTS; COUNTERPARTY PAYMENTS; ISSUER
DERIVATIVE PAYMENTS. The Issuer hereby authorizes and directs the Trustee to
acknowledge and agree to any Derivative Product Agreement hereafter entered into
by the Issuer and a Counterparty under which (a) the Issuer may be required to
make, from time to time, Issuer Derivative Payments and (b) the Trustee may
receive, from time to time, Counterparty Payments for the account of the Issuer.
No Derivative Product Agreement shall be entered into subsequent to the Closing
Date unless the Trustee shall have received a Rating Agency Confirmation from
each Rating Agency that such Derivative Product Agreement will not adversely
affect the Rating on any of the Notes. The Initial LIBOR Derivative Product
Agreement is designated as a "Class A Obligation" and the Initial Counterparty
shall be a "Class A Beneficiary."

                                       31
<PAGE>

                                   ARTICLE IV

                       PROVISIONS APPLICABLE TO THE NOTES;
                              DUTIES OF THE ISSUER

      SECTION 4.01 PAYMENT OF PRINCIPAL AND INTEREST. The Issuer covenants that
it will promptly pay, but solely from the Trust Estate, the principal of and
interest, if any, on each and every Obligation issued under the provisions of
this Indenture at the places, on the dates and in the manner specified herein
and in said Obligations according to the true intent and meaning thereof. The
Obligations shall be and are hereby declared to be payable from and equally
secured, except as specifically provided in this Indenture with respect to
certain payment and other priorities, by an irrevocable first lien on and pledge
of the properties constituting the Trust Estate, subject to the application
thereof as permitted by this Indenture, but in no event shall the Registered
Owners or any Counterparty have any right to possession or control of any
Financed Eligible Loans, which shall be held only by the Trustee or its agent or
bailee.

      SECTION 4.02 COVENANTS AS TO ADDITIONAL CONVEYANCES. At any and all times,
the Issuer will duly execute, acknowledge and deliver, or will cause to be done,
executed and delivered, all and every such further acts, conveyances, transfers
and assurances in law as the Trustee shall reasonably require for the better
conveying, transferring and pledging and confirming unto the Trustee, all and
singular, the properties constituting the Trust Estate hereby transferred and
pledged, or intended so to be transferred and pledged.

      SECTION 4.03 FURTHER COVENANTS OF THE ISSUER.

            (a) The Issuer will cause financing statements and continuation
      statements with respect thereto at all times to be filed in the office of
      the Secretary of State of the State and any other jurisdiction necessary
      to perfect and maintain the security interest granted by the Issuer
      hereunder.

            (b) The Issuer will duly and punctually keep, observe and perform
      each and every term, covenant and condition on its part to be kept,
      observed and performed, contained in this Indenture and the other
      agreements to which the Issuer is a party pursuant to the transactions
      contemplated herein, including but not limited to the Basic Documents to
      which it is a party, and will punctually perform all duties required by
      the Trust Agreement and the laws of the State.

            (c) The Issuer shall be operated on the basis of its Fiscal Year.

            (d) The Issuer shall cause to be kept separate, full and proper
      books of records and accounts, in which full, true and proper entries will
      be made of all dealings, business and affairs of the Issuer which relate
      to the Notes and any Derivative Product Agreement.

            (e) The Issuer, upon written request of the Trustee, will permit at
      all reasonable times the Trustee or its agents, accountants and attorneys,
      to examine and inspect the property, books of account, records, reports
      and other data relating to the Financed Eligible Loans, and will furnish
      the Trustee such other information as it may

                                       32
<PAGE>

      reasonably request. The Trustee shall be under no duty to make any such
      examination unless requested in writing to do so by the Registered Owners
      of 66% in collective aggregate principal amount of the Notes at the time
      Outstanding or any Counterparty, and unless such Registered Owners or
      Counterparty shall have offered the Trustee security and indemnity
      satisfactory to it against any costs, expenses and liabilities which might
      be incurred thereby.

            (f) The Issuer covenants that all Financed Eligible Loans upon
      receipt thereof shall be delivered to the Trustee or its agent or bailee
      to be held pursuant to this Indenture and pursuant to a Servicing
      Agreement or a Custodian Agreement.

            (g) The Issuer shall notify the Trustee and each Rating Agency in
      writing prior to entering into any Derivative Product Agreement subsequent
      to the Closing Date.

      SECTION 4.04 ENFORCEMENT OF SERVICING AGREEMENTS. The Issuer shall comply
with and shall require each Servicer (other than a subservicer of the Master
Servicer) to comply with the following, whether or not the Issuer is otherwise
in default under this Indenture:

            (a) cause to be diligently enforced and taken all reasonable steps,
      actions and proceedings necessary for the enforcement of all terms,
      covenants and conditions of all Servicing Agreements, including the prompt
      payment of all amounts due the Issuer thereunder, including, without
      limitation, all principal and interest payments (as such payments may be
      adjusted to take into account (i) any discount that the Issuer or the
      Administrator on its behalf may cause to be made available to borrowers
      who make payments on Financed Eligible Loans through automatic withdrawal
      or (ii) any reduction in interest payable on Financed Eligible Loans
      provided for in any borrower incentive or other special program under
      which such Financed Eligible Loans were originated), and all Interest
      Benefit Payments, insurance, guarantee and default claims and Special
      Allowance Payments which relate to any Financed Eligible Loans and cause
      any such Servicer to specify whether payments received by it represent
      principal or interest;

            (b) not permit the release of the obligations of any such Servicer
      under any applicable Servicing Agreement except in conjunction with
      amendments or modifications permitted by (h) below;

            (c) at all times, to the extent permitted by law, cause to be
      defended, enforced, preserved and protected the rights and privileges of
      the Issuer, the Trustee, the Registered Owners and the Counterparties
      under or with respect to each applicable Servicing Agreement;

            (d) at its own expense, the Issuer shall duly and punctually perform
      and observe each of its obligations to any such Servicer under the
      applicable Servicing Agreement in accordance with the terms thereof;

            (e) the Issuer agrees to give the Trustee prompt written notice of
      each default on the part of any such Servicer of its obligations under the
      applicable Servicing Agreement coming to the Issuer's attention;

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<PAGE>

            (f) the Issuer shall not waive any default by any such Servicer
      under the applicable Servicing Agreement without the written consent of
      the Trustee;

            (g) the Issuer shall cause Collegiate Funding Master Servicing,
      L.L.C., as Servicer, to deliver to the Trustee and the Issuer, on or
      before March 1 of each year, beginning with March 2005, a certificate
      stating that (i) a review of the activities of each Servicer during the
      preceding calendar year and of its performance under the applicable
      Servicing Agreement has been made under the supervision of the officer
      signing such certificate and (ii) to the best of such officers' knowledge,
      based on such review, each Servicer has fulfilled all its obligations
      under its Servicing Agreement throughout such year, or, there has been a
      default in the fulfillment of any such obligation, specifying each such
      default known to such officer and the nature and stature thereof. The
      Issuer shall send copies of such annual certificate of the Master Servicer
      to each Rating Agency; and

            (h) not consent or agree to or permit any amendment or modification
      of any Servicing Agreement to which it is a party which will in any manner
      materially adversely affect the rights or security of the Registered
      Owners and the Counterparties. The Issuer shall be entitled to receive and
      rely upon an opinion of its counsel, together with Rating Agency
      Confirmation, that any such amendment or modification will not materially
      adversely affect the rights or security of the Registered Owners and the
      Counterparties.

      SECTION 4.05 PROCEDURES FOR TRANSFER OF FUNDS. In any instance where this
Indenture requires a transfer of funds or money from one Fund to another, a
transfer of ownership in investments or an undivided interest therein may be
made in any manner agreeable to the Issuer and the Trustee, and in the
calculation of the amount transferred, interest on the investment which has or
will accrue before the date the money is needed in the fund to which the
transfer is made shall not be taken into account or considered as money on hand
at the time of such transfer.

      SECTION 4.06 ADDITIONAL COVENANTS WITH RESPECT TO THE ACT. The Issuer
covenants that it will cause the Trustee to be, or replace the Trustee with, an
Eligible Lender under the Act, that it will acquire or cause to be acquired
Eligible Loans originated and held only by an Eligible Lender and that it will
not dispose of or deliver any Financed Eligible Loans or any security interest
in any such Financed Eligible Loans to any party who is not an Eligible Lender
so long as the Act or Regulations adopted thereunder require an Eligible Lender
to be the owner or holder of Guaranteed Eligible Loans; provided, however, that
nothing above shall prevent the Issuer from delivering the Eligible Loans to the
Servicer or the Guarantee Agency. The Registered Owners of the Notes shall not
in any circumstances be deemed to be the owner or holder of the Guaranteed
Eligible Loans.

      The Issuer, or the Administrator on behalf of the Issuer, shall be
responsible for each of the following actions with respect to the Act:

            (a) the Issuer, or the Administrator on behalf of the Issuer, shall
      be responsible for dealing with the Secretary with respect to the rights,
      benefits and obligations under the Certificates of Insurance and the
      Contract of Insurance, and the Issuer shall be responsible for dealing
      with the Guaranty Agencies with respect to the

                                       34
<PAGE>

      rights, benefits and obligations under the Guarantee Agreements with
      respect to the Financed Eligible Loans;

            (b) the Issuer, or the Administrator on behalf of the Issuer, shall
      cause to be diligently enforced, and shall cause to be taken all
      reasonable steps, actions and proceedings necessary or appropriate for the
      enforcement of all terms, covenants and conditions of all Financed
      Eligible Loans and agreements in connection therewith, including the
      prompt payment of all principal and interest payments and all other
      amounts due thereunder (as such payments may be adjusted to take into
      account (i) any discount that the Issuer or the Administrator on its
      behalf may cause to be made available to borrowers who make payments on
      Financed Eligible Loans through automatic withdrawal or (ii) any reduction
      in interest payable on Financed Eligible Loans provided for in any
      borrower incentive or other special program under which such Financed
      Eligible Loans were originated) and all Interest Benefit Payments,
      insurance, guarantee and default claims and Special Allowance Payments
      which relate to such Financed Eligible Loans;

            (c) the Issuer, or the Administrator on behalf of the Issuer, shall
      cause the Financed Eligible Loans to be serviced by entering into one or
      more Servicing Agreements or other agreements with one or more Servicers
      for the collection of payments made for, and the administration of the
      accounts of, the Financed Eligible Loans;

            (d) the Issuer, or the Administrator on behalf of the Issuer, shall
      comply, and shall cause all of its officers, directors, employees and
      agents to comply, with the provisions of the Act and any regulations or
      rulings thereunder, with respect to the Financed Eligible Loans;

            (e) the Issuer, or the Administrator on behalf of the Issuer, shall
      cause the benefits of the Guarantee Agreements, the Interest Benefit
      Payments and the Special Allowance Payments to flow to the Trustee. The
      Trustee shall have no liability for actions taken at the direction of the
      Issuer or the Administrator, except for negligence or willful misconduct
      in the performance of its express duties hereunder. The Trustee shall have
      no obligation to administer, service or collect the loans in the Trust
      Estate or to maintain or monitor the administration, servicing or
      collection of such loans; and

            (f) the Issuer, or the Administrator on behalf of the Issuer, shall
      cause each Financed Eligible Loan evidenced by a Master Promissory Note in
      the form mandated by Section 432(m)(1) of the Act to be acquired pursuant
      to a Student Loan Purchase Agreement with a Seller containing language
      similar to the following:

                  "The Seller hereby represents and warrants that the Seller is
            transferring all of its right title and interest in the MPN Loan to
            the Trustee, that it has not assigned any interest in such MPN Loan
            (other than security interests that have been released or ownership
            interests that the Seller has reacquired) to any person other than
            the Trustee, and that no prior holder of the MPN Loan has assigned
            any interest in such MPN Loan (other than security interests that
            have been released

                                       35
<PAGE>

            or ownership interests that such prior holder has reacquired) to any
            person other than a predecessor in title to the Seller. The Seller
            hereby covenants that the Seller shall not attempt to transfer to
            any other person any interest in any MPN Loan assigned hereunder.
            The Seller hereby authorizes the Trustee to file a UCC-1 financing
            statement identifying the Seller as debtor and the Trustee as
            secured party and describing the MPN Loan sold pursuant to this
            Agreement. The preparation or filing of such UCC-1 financing
            statement is solely for additional protection of the Trustee's
            interest in the MPN Loans and shall not be deemed to contradict the
            express intent of the Seller and the Trustee that the transfer of
            MPN Loans under this Agreement is an absolute assignment of such MPN
            Loans and is not a transfer of such MPN Loans as security for a
            debt."

      The Trustee shall not be deemed to be the designated agent for the
purposes of this Section 4.06 unless it has agreed in writing to be such agent.

      SECTION 4.07 FINANCED ELIGIBLE LOANS; COLLECTIONS THEREOF; ASSIGNMENT
THEREOF. The Issuer, through the Servicers, shall diligently collect all
principal and interest payments on all Financed Eligible Loans (as such payments
may be adjusted to take into account (i) any discount that the Issuer or the
Administrator on its behalf may cause to be made available to borrowers who make
payments on Financed Eligible Loans through automatic withdrawal or (ii) any
reduction in interest payable on Financed Eligible Loans provided for in any
borrower incentive or other special program under which such Financed Eligible
Loans were originated), and all Interest Benefit Payments, insurance, guarantee
and default claims and Special Allowance Payments which relate to such Financed
Eligible Loans. The Issuer shall cause the filing and assignment of such claims
(prior to the timely filing deadline for such claims under the Regulations) by
the Servicers (other than a subservicer of the Master Servicer). The Issuer will
comply with the Act and Regulations which apply to the Program and to such
Financed Eligible Loans.

      SECTION 4.08 APPOINTMENT OF AGENTS, DIRECTION TO TRUSTEE, ETC. The Issuer
shall employ and appoint all employees, agents, consultants and attorneys which
it may consider necessary. No member or officer of the Administrator, either
singly or collectively, shall be personally liable for any act or omission not
willfully fraudulent or mala fide. The Issuer hereby directs the Trustee to
enter into this Indenture, the Administration Agreement, the Custodian
Agreements, the Guarantee Agreements, the Auction Agent Agreement, the Master
Servicing Agreement, the Back-up Administration Agreement, the Market Agent
Agreements, the Broker-Dealer Agreements, the Initial LIBOR Derivative Product
Agreement, the Student Loan Purchase Agreements, each Investment Agreement and
the Eligible Lender Trust Agreements.

      SECTION 4.09 CAPACITY TO SUE. The Issuer shall have the power and capacity
to sue and to be sued on matters arising out of or relating to the financing of
the Financed Eligible Loans.

      SECTION 4.10 CONTINUED EXISTENCE; SUCCESSOR TO ISSUER. The Issuer agrees
that it will do or cause to be done all things necessary to preserve and keep in
full force and effect its existence, rights and franchises as a Delaware
statutory trust, except as otherwise permitted by this Section 4.10. The Issuer
further agrees that it will not (a) sell, transfer or otherwise dispose

                                       36
<PAGE>

of all or substantially all, of its assets (except Financed Eligible Loans if
such sale, transfer or disposition will discharge this Indenture in accordance
with Article X hereof); (b) consolidate with or merge into another entity; or
(c) permit one or more other entities to consolidate with or merge into it.

      SECTION 4.11 AMENDMENT OF STUDENT LOAN PURCHASE AGREEMENTS. The Issuer
shall notify the Trustee in writing of any proposed amendments to any existing
Student Loan Purchase Agreement. No such amendment shall become effective unless
and until the Issuer obtains a Rating Agency Confirmation and the Trustee
consents in writing to such amendment . The consent of the Trustee shall not be
unreasonably withheld and shall not be withheld if the Trustee receives an
opinion of counsel acceptable to them that such an amendment is required by the
Act and is not prejudicial to the Registered Owners or the Counterparties.
Notwithstanding the foregoing, however, the Trustee shall consent to an
amendment from time to time so long as it is not materially prejudicial to the
interests of the Registered Owners or the Counterparties, and the Trustee may
rely on an opinion of counsel to such effect.

      SECTION 4.12 REPRESENTATIONS; NEGATIVE COVENANTS.

            (a) The Issuer hereby makes the following representations and
      warranties to the Trustee for the benefit of the Registered Owners and, in
      the case of clauses (i) through (vii) below, inclusive, the
      Counterparties, on which the Trustee relies in authenticating the Notes
      and on which the Registered Owners have relied in purchasing the Notes and
      the Counterparties have relied on in entering into the Derivative Product
      Agreements. Such representations and warranties shall survive the transfer
      and assignment of the Trust Estate to the Trustee.

                  (i) Organization and Good Standing. The Issuer is duly
            organized and validly existing as a statutory trust under the laws
            of the State, and has the power to own its assets and to transact
            the business in which it presently engages.

                  (ii) Due Qualification. The Issuer is duly qualified to do
            business and is in good standing, and has obtained all material
            necessary licenses and approvals, in all jurisdictions where the
            failure to be so qualified, have such good standing or have such
            licenses or approvals would have a material adverse effect on the
            Issuer's business and operations or in which the actions as required
            by this Indenture require or will require such qualification.

                  (iii) Authorization. The Issuer has the power, authority and
            legal right to create and issue the Notes, to execute, deliver and
            perform this Indenture and the Derivative Product Agreements and the
            other Basic Documents to which it is a party, and to grant a
            security interest in the Trust Estate to the Trustee and the
            Counterparties and the creation and issuance of the Notes,
            execution, delivery and performance of this Indenture and the
            Derivative Product Agreements and the other Basic Documents to which
            it is a party, and grant of a security interest in the Trust Estate
            to the Trustee have been duly authorized by the Issuer by all
            necessary statutory trust action.

                                       37
<PAGE>

                  (iv) Binding Obligation. This Indenture and the Derivative
            Product Agreements and the other Basic Documents to which it is a
            party, assuming due authorization, execution and delivery by the
            Trustee and the Counterparties and the other parties to such Basic
            Documents, the Notes in the hands of the Registered Owners thereof
            and the Issuer Derivative Payments are and will be legal, valid and
            binding special limited obligations of the Issuer secured by and
            payable solely from the Trust Estate, enforceable against the Issuer
            in accordance with their terms, except that (A) such enforcement may
            be subject to bankruptcy, insolvency, reorganization, moratorium or
            other similar laws (whether statutory, regulatory or decisional) now
            or hereafter in effect relating to creditors' rights generally and
            (B) the remedy of specific performance and injunctive and other
            forms of equitable relief may be subject to certain equitable
            defenses and to the discretion of the court before which any
            proceeding therefor may be brought, whether a proceeding at law or
            in equity.

                  (v) No Violation. The consummation of the transactions
            contemplated by this Indenture and the other Basic Documents to
            which the Issuer is a party and the fulfillment of the terms hereof
            and thereof does not conflict with, result in any breach of any of
            the terms and provisions of or constitute (with or without notice,
            lapse of time or both) a default under the organizational documents
            of the Issuer, or any material indenture, agreement, mortgage, deed
            of trust or other instrument to which the Issuer is a party or by
            which it is bound, or result in the creation or imposition of any
            lien upon any of its material properties pursuant to the terms of
            any such indenture, agreement, mortgage, deed of trust or other
            instrument, other than this Indenture, nor violate any law or any
            order, rule or regulation applicable to the Issuer of any court or
            of any federal or state regulatory body, administrative agency or
            other governmental instrumentality having jurisdiction over the
            Issuer or any of its properties.

                  (vi) No Proceedings. There are no proceedings, injunctions,
            writs, restraining orders or investigations to which the Issuer or
            any of the Issuer's affiliates is a party pending, or, to the best
            of the Issuer's knowledge, threatened, before any court, regulatory
            body, administrative agency or other tribunal or governmental
            instrumentality (A) asserting the invalidity of this Indenture and
            the other Basic Documents to which the Issuer is a party, (B)
            seeking to prevent the issuance of any Notes or the consummation of
            any of the transactions contemplated by this Indenture and the other
            Basic Documents to which the Issuer is a party or (C) seeking any
            determination or ruling that might materially and adversely affect
            the performance by the Issuer of its obligations under, or the
            validity or enforceability of this Indenture and the other Basic
            Documents to which the Issuer is a party.

                  (vii) Approvals. All approvals, authorizations, consents,
            orders or other actions of any person, corporation or other
            organization, or of any court, governmental agency or body or
            official, required on the part of the Issuer in connection with the
            execution and delivery of this Indenture and the Derivative

                                       38
<PAGE>

            Product Agreements and any other Basic Documents to which the Issuer
            is a party, and the creation and issuance of the Notes, have been
            taken or obtained on or prior to the Closing Date.

                  (viii) Place of Business. The Issuer's place of business and
            chief executive office is located in Wilmington, Delaware and the
            Issuer has had no other chief executive office.

                  (ix) Tax and Accounting Treatment. The Issuer intends to treat
            the transactions contemplated by the Student Loan Purchase
            Agreements as an absolute transfer rather than as a pledge of the
            Financed Eligible Loans from the Seller for federal income tax and
            financial accounting purposes and the Issuer will be treated as the
            owner of the Financed Eligible Loans for all purposes. The Issuer
            further intends to treat the Notes as its indebtedness for federal
            income tax and financial accounting purposes.

                  (x) Taxes. The Issuer has filed (or caused to be filed) all
            federal, state, county, local and foreign income, franchise and
            other tax returns required to be filed by it through the date
            hereof, and has paid all taxes reflected as due thereon. There is no
            pending dispute with any taxing authority that, if determined
            adversely to the Issuer, would result in the assertion by any taxing
            authority of any material tax deficiency, and the Issuer has no
            knowledge of a proposed liability for any tax year to be imposed
            upon such entity's properties or assets for which there is not an
            adequate reserve reflected in such entity's current financial
            statements.

                  (xi) Legal Name. The legal name of the Issuer is "Collegiate
            Funding Services Education Loan Trust 2004-A" and has not changed
            since its inception. The Issuer has no trade names, fictitious
            names, assumed names or "dba's" under which it conducts its business
            and has made no filing in respect of any such name.

                  (xii) Business Purpose. The Issuer has acquired the Financed
            Eligible Loans conveyed to it under a Student Loan Purchase
            Agreement for a bona fide business purpose and has undertaken the
            transactions contemplated herein as principal rather than as an
            agent of any other person. The Issuer has no subsidiaries, has
            adopted and operated consistently with all requirements for
            statutory trusts under the laws of the State with respect to its
            operations and has engaged in no other activities other than those
            specified in this Indenture and the Student Loan Purchase Agreements
            and in accordance with the transactions contemplated herein and
            therein.

                  (xiii) Compliance with Laws. The Issuer is in compliance with
            all applicable laws and regulations with respect to the conduct of
            its business and has obtained and maintains all permits, licenses
            and other approvals as are necessary for the conduct of its
            operations.

                                       39
<PAGE>

                  (xiv) Valid Business Reasons; No Fraudulent Transfers. The
            transactions contemplated by this Indenture are in the ordinary
            course of the Issuer's business and the Issuer has valid business
            reasons for granting the Trust Estate pursuant to this Indenture. At
            the time of each such grant: (A) the Issuer granted the Trust Estate
            to the Trustee without any intent to hinder, delay or defraud any
            current or future creditor of the Issuer; (B) the Issuer was not
            insolvent and did not become insolvent as a result of any such
            grant; (C) the Issuer was not engaged and was not about to engage in
            any business or transaction for which any property remaining with
            such entity was an unreasonably small capital or for which the
            remaining assets of such entity are unreasonably small in relation
            to the business of such entity or the transaction; (D) the Issuer
            did not intend to incur, and did not believe or should not have
            reasonably believed, that it would incur, debts beyond its ability
            to pay as they become due; and (E) the consideration paid received
            by the Issuer for the grant of the Trust Estate was reasonably
            equivalent to the value of the related grant.

                  (xv) No Management of Affairs of Seller. The Issuer is not and
            will not be involved in the day-to-day management of the Seller, the
            Administrator, the Sponsor or any affiliate.

                  (xvi) No Transfers with Seller or Affiliates. Other than the
            acquisition of assets and the transfer of any Notes pursuant to this
            Indenture, the Issuer does not engage in and will not engage in any
            transactions with the Seller and affiliates, except as provided in
            the Basic Documents.

                  (xvii) Ability to Perform. There has been no material
            impairment in the ability of the Issuer to perform its obligations
            under this Indenture.

                  (xviii) Financial Condition. No material adverse change has
            occurred in the Issuer's financial status since the date of its
            formation.

                  (xix) Event of Default. No Event of Default has occurred and
            no event has occurred that, with the giving of notice, the passage
            of time, or both, would become an Event of Default.

                  (xx) Acquisition of Financed Eligible Loans Legal. The Issuer
            has complied with all applicable federal, state and local laws and
            regulations in connection with its acquisition of the Financed
            Eligible Loans from the Seller.

                  (xxi) No Material Misstatements or Omissions. No information,
            certificate of an officer, statement furnished in writing or report
            delivered to the Trustee, the Servicer, any Registered Owner, any
            Counterparty or any underwriter of the Notes by the Issuer contains
            any untrue statement of a material fact or omits a material fact
            necessary to make such information, certificate, statement or report
            not misleading.

            (b) The Issuer will not:

                                       40
<PAGE>

                  (i) sell, transfer, exchange or otherwise dispose of any
            portion of the Trust Estate except as expressly permitted by this
            Indenture;

                  (ii) claim any credit on, or make any deduction from, the
            principal amount of any of the Notes by reason of the payment of any
            taxes levied or assessed upon any portion of the Trust Estate;

                  (iii) except as otherwise provided herein, dissolve or
            liquidate in whole or in part, except with the prior written consent
            of the Trustee, and to the extent Notes remain Outstanding, approval
            of the Registered Owners and a Rating Agency Confirmation and, to
            the extent a Derivative Product Agreement is Outstanding, approval
            of the Counterparties;

                  (iv) permit the validity or effectiveness of this Indenture,
            any Supplement or any grant hereunder to be impaired, or permit the
            lien of this Indenture to be amended, hypothecated, subordinated,
            terminated or discharged, or permit any Person to be released from
            any covenants or obligations under this Indenture, except as may be
            expressly permitted hereby;

                  (v) except as otherwise provided herein, permit any lien,
            charge, security interest, mortgage or other encumbrance to be
            created on a parity with, subordinate to or prior to the lien of
            this Indenture or extend to or otherwise arise upon or burden the
            Trust Estate or any part thereof or any interest therein or the
            proceeds thereof;

                  (vi) take any action or fail to take any action that would
            result in the lien of this Indenture or the priority of that lien
            for the obligations secured thereby being lost or impaired;

                  (vii) incur or assume any indebtedness or guarantee any
            indebtedness of any Person whether secured by any Financed Eligible
            Loans under this Indenture or otherwise, except for such obligations
            as may be incurred by the Issuer in connection with the issuance of
            the Notes pursuant to this Indenture and unsecured trade payables in
            the ordinary course of its business;

                  (viii) operate such that it would be consolidated with its
            Sponsor or any other affiliate and its separate existence
            disregarded in any federal or state proceeding;

                  (ix) act as agent of any Seller or, except as provided in the
            Basic Documents, allow the Seller to act as its agent;

                  (x) allow the Seller or its parent or any other affiliate to
            pay its expenses, guarantee its obligations or advance funds to it
            for payment of expenses;

                                       41
<PAGE>

                  (xi) consent to the appointment of a conservator or receiver
            or liquidator in any insolvency, readjustment of debt, marshalling
            of assets and liabilities or similar proceedings of or relating to
            the Issuer or of or relating to all or substantially all of its
            property, or a decree or order of a court or agency or supervisory
            authority having jurisdiction in the premises for the appointment of
            a conservator or receiver or liquidator in any insolvency,
            readjustment of debt, marshalling of assets and liabilities or
            similar proceedings, or for the winding-up or liquidation of its
            affairs, shall have been entered against the Issuer; or the Issuer
            shall not consent to the appointment of a receiver, conservator or
            liquidator in any insolvency, readjustment of debt, marshalling of
            assets and liabilities, voluntary liquidation or similar proceedings
            of or relating to the Issuer or of or relating to all or
            substantially all of its property; or admit in writing its inability
            to pay its debts generally as they become due, file a petition to
            take advantage of any applicable insolvency, bankruptcy or
            reorganization statute, make an assignment for the benefit of its
            creditors or voluntarily suspend payment of its obligations; or

                  (xii) without obtaining a Rating Agency Confirmation permit
            the Master Servicer to be the primary servicer on any Financed
            Eligible Loan.

            (c) The Issuer makes the following representations and warranties as
      to the Trust Estate which is granted to the Trustee hereunder on such
      date, on which the Trustee relies in accepting the Trust Estate. Such
      representations and warranties shall survive the grant of the Trust Estate
      to the Trustee pursuant to this Indenture:

                  (i) Financed Eligible Loans. Each Financed Eligible Loan
            acquired by the Issuer shall constitute an Eligible Loan and contain
            the characteristics found in a Student Loan Purchase Agreement.
            Notwithstanding the definition of "Eligible Loans" herein, the
            Issuer covenants that no more than 20% of each purchase of Eligible
            Loans will be made up of Eligible Loans delinquent by more than 30
            days, and no Financed Eligible Loan will be subject to any borrower
            incentive or other special program that provides for the reduction
            in interest or principal payable on such Financed Eligible Loan in
            amounts in excess of, or on terms more favorable than, those
            described in Exhibit F.

                  (ii) Grant. It is the intention of the Issuer that the
            transfer herein contemplated constitutes a grant of the Financed
            Eligible Loans to the Trustee.

                  (iii) All Filings Made. All filings (including, without
            limitation, UCC filings) necessary in any jurisdiction to give the
            Trustee a first priority perfected security interest in the Trust
            Estate, including the Financed Eligible Loans, have been made no
            later than 10 days after the Closing Date and copies of the
            file-stamped financing statements shall be delivered to the Trustee
            promptly following receipt by the Issuer or its agent from the
            appropriate secretary of state. The Issuer has not caused, suffered
            or permitted any lien, pledges, offsets, defenses, claims,
            counterclaims, charges or security interest with respect to the
            Financed

                                       42
<PAGE>

            Eligible Loans (other than the security interest created in favor of
            the Trustee and the Counterparties) to be created.

                  (iv) Transfer Not Subject to Bulk Transfer Act. Each grant of
            the Financed Eligible Loans by the Issuer pursuant to this Indenture
            is not subject to the bulk transfer act or any similar statutory
            provisions in effect in any applicable jurisdiction.

                  (v) Payment or Adequate Provision for Payment to be Made. The
            Issuer will cause to be paid, or will make adequate provision for
            the satisfaction and discharge of, all lawful claims and demands
            which, if unpaid, might by law be given precedence to or any
            equality with this Indenture as a lien or charge on the Financed
            Eligible Loans.

                  (vi) No Transfer Taxes Due. Each grant of the Financed
            Eligible Loans (including all payments due or to become due
            thereunder) by the Issuer pursuant to this Indenture is not subject
            to and will not result in any tax, fee or governmental charge
            payable by the Issuer or the Seller to any federal, state or local
            government.

      SECTION 4.13 ADDITIONAL COVENANTS. SO LONG AS ANY OF THE NOTES ARE
OUTSTANDING:

            (a) The Issuer shall not engage in any business or activity other
      than in connection with the activities contemplated hereby and in the
      Student Loan Purchase Agreements, and in connection with the issuance of
      Notes and in connection with the Derivative Products Agreements.

            (b) The Issuer shall not consolidate or merge with or into any other
      entity or convey or transfer its properties and assets substantially as an
      entirety to any entity except as otherwise provided herein.

            (c) The funds and other assets of the Issuer shall not be commingled
      with those of any other individual, corporation, estate, partnership,
      joint venture, association, joint stock company, trust, unincorporated
      organization or government, or any agency or political subdivision
      thereof.

            (d) The Issuer shall not be, become or hold itself out as being
      liable for the debts of any other party.

            (e) The Issuer shall not form, or cause to be formed, any
      subsidiaries.

            (f) The Issuer shall act solely in its own name and through its duly
      authorized officers or agents in the conduct of its business, and shall
      conduct its business so as not to mislead others as to the identity of the
      entity with which they are concerned.

            (g) The Issuer shall maintain its records and books of account and
      shall not commingle its records and books of account with the records and
      books of account of any

                                       43
<PAGE>

      other Person. The books of the Issuer may be kept (subject to any
      provision contained in the statutes) inside or outside the State at such
      place or places as may be designated from time to time by the provisions
      of the Trust Agreement.

            (h) All actions of the Issuer shall be taken by an Authorized
      Representative.

            (i) The Issuer shall not amend, alter, change or repeal any
      provision contained in this Section 4.13 without (i) the prior written
      consent of the Trustee and (ii) a Rating Agency Confirmation from each
      Rating Agency rating any Notes Outstanding (a copy of which shall be
      provided to the Trustee) that such amendment, alteration, change or repeal
      will have no adverse effect on the rating assigned to the Notes.

            (j) The Issuer shall not amend its Certificate of Trust or its Trust
      Agreement without first obtaining the prior written consent of each Rating
      Agency.

            (k) All audited financial statements of the Issuer that are
      consolidated with those of any affiliate thereof will contain detailed
      notes clearly stating that (i) all of the Issuer's assets are owned by the
      Issuer, and (ii) the Issuer is a separate entity with creditors who have
      received ownership and/or security interests in the Issuer's assets.

            (l) The Issuer will strictly observe legal formalities in its
      dealings with the Seller, the Sponsor or any affiliate thereof, and funds
      or other assets of the Issuer will not be commingled with those of the
      Seller, the Sponsor or any other affiliate thereof. The Issuer shall not
      maintain joint bank accounts or other depository accounts to which the
      Seller, the Sponsor or any other affiliate has independent access. None of
      the Issuer's funds will at any time be pooled with any funds of the
      Seller, the Sponsor or any other affiliate.

            (m) The Issuer will maintain an arm's length relationship with the
      Seller (and any affiliate). Any Person that renders or otherwise furnishes
      services to the Issuer will be compensated by the Issuer at market rates
      for such services it renders or otherwise furnishes to the Issuer except
      as otherwise provided in this Indenture. Except as contemplated in the
      Basic Documents, the Issuer will not hold itself out to be responsible for
      the debts of the Seller, the parent or the decisions or actions respecting
      the daily business and affairs of the Seller or parent.

      SECTION 4.14 PROVIDING OF NOTICE. The Issuer, upon learning of any failure
on its part to observe or perform in any material respect any covenant,
representation or warranty of the Issuer set forth in this Indenture, the
Derivative Product Agreements or the applicable Student Loan Purchase
Agreements, or of any failure on the part of the Seller, Collegiate Funding
Services Resources I, LLC or Collegiate Funding Services, L.L.C. to observe or
perform in any material respect any covenant, representation or warranty of the
Seller, Collegiate Funding Services Resources I, LLC or Collegiate Funding
Services, L.L.C. set forth in the applicable Student Loan Purchase Agreements,
shall promptly notify the Trustee, the Master Servicer and each Rating Agency of
such failure.

                                       44
<PAGE>

      SECTION 4.15 CERTAIN REPORTS.

            (a) The Issuer will:

                  (i) file with the Trustee, within 15 days after the Issuer is
            required to file the same with the Commission, copies of the annual
            reports and of the information, documents and other reports (or
            copies of such portions of any of the foregoing as the Commission
            may from time to time by rules and regulations prescribe) which the
            Issuer may be required to file with the Commission pursuant to
            Section 13 or Section 15(d) of the Exchange Act;

                  (ii) file with the Trustee and the Commission, in accordance
            with rules and regulations prescribed from time to time by the
            Commission, such additional information, documents and reports with
            respect to compliance by the Issuer with the conditions and
            covenants of this Indenture as may be required from time to time by
            such rules and regulations; and

                  (iii) transmit by mail to the Registered Owners of Notes and
            the Counterparties, within 30 days after the filing thereof with the
            Trustee, in the manner and to the extent provided in TIA Section
            313(c), such summaries of any information, documents and reports
            required to be filed by the Issuer pursuant to clauses (a) and (b)
            of this Section 4.15 as may be required by rules and regulations
            prescribed from time to time by the Commission.

            (b) The Trustee shall mail to each Registered Owner and each
      Counterparty, within 60 days after each December 31 beginning with the
      December 31 following the date of this Indenture, a brief report as of
      such December 31 that complies with TIA Section 313(a) if required by said
      section. The Trustee shall also comply with TIA Section 313(b). A copy of
      each such report required pursuant to TIA Section 313(a) or (b) shall, at
      the time of such transaction to Registered Owners and each Counterparty,
      be filed by the Trustee with the Commission and with each securities
      exchange, if any, upon which the Notes are listed, provided that the
      Issuer has previously notified the Trustee of such listing.

            (c) Within 15 days following the end of each month, the Trustee
      shall prepare or cause to be prepared, and will forward to (i) each
      Registered Owner and each Counterparty by mail (which, so long as the
      Notes are held in book-entry form, shall be the Clearing Agency or its
      nominee), or (ii) upon the written request of a Noteholder sent to the
      Principal Office of the Trustee, to such Noteholder, a statement setting
      forth the following information with respect to the Notes and the Financed
      Eligible Loans as of the end of such period:

                  (i) The amount of principal payments made with respect to each
            class of Notes during the preceding month;

                  (ii) The amount of interest payments made with respect to each
            class of Notes during the preceding month;

                                       45
<PAGE>

                  (iii) The aggregate principal balance of the Financed Eligible
            Loans as of the close of business on the last day of the preceding
            month;

                  (iv) The aggregate outstanding principal amount of each class
            of Notes;

                  (v) The interest rate for each class of Notes during the
            preceding month and the next Distribution Date for each class;

                  (vi) The number and principal amount of Financed Eligible
            Loans that are delinquent or for which claims have been filed with a
            Guarantee Agency; and

                  (vii) The outstanding principal amount of the Notes as of the
            close of business on the last day of the preceding month.

      The Trustee may conclusively rely and accept such reports from the Issuer
as fulfilling the requirements of this Section 4.15, with no further duty to
know, determine or examine such reports or comply with the prescribed timing,
rules and regulations of the Commission.

      SECTION 4.16 STATEMENT AS TO COMPLIANCE. The Issuer will deliver to the
Trustee, within 120 days after the end of each fiscal year, a brief certificate
from an Authorized Representative including (a) a current list of the Authorized
Representatives, and (b) a statement indicating whether or not to the knowledge
of the signers thereof the Issuer is in compliance with all conditions and
covenants under this Indenture and, in the event of any noncompliance,
specifying such noncompliance and the nature and status thereof. For purposes of
this Section 4.16, such compliance shall be determined without regard to any
period of grace or requirement of notice under this Indenture.

      SECTION 4.17 REPRESENTATIONS OF THE ISSUER REGARDING THE TRUSTEE'S
SECURITY INTEREST. The Issuer hereby represents and warrants for the benefit of
the Trustee and the Registered Owners and the Counterparties as follows:

            (a) This Indenture creates a valid and continuing security interest
      (as defined in the applicable Uniform Commercial Code in effect in the
      State of Delaware) in the Financed Eligible Loans and all other assets
      constituting part of the Trust Estate in favor of the Trustee, which
      security interest is prior to all other liens, charges, security
      interests, mortgages or other encumbrances, and is enforceable as such as
      against creditors of and purchasers from Issuer.

            (b) The Financed Eligible Loans constitute "accounts" within the
      meaning of the applicable UCC.

            (c) The Issuer owns and has good and marketable title to the
      Financed Eligible Loans and all other assets constituting part of the
      Trust Estate free and clear of any lien, charge, security interest,
      mortgage or other encumbrance, claim or encumbrance of any Person, other
      that those granted pursuant to this Indenture.

                                       46
<PAGE>

            (d) The Issuer has caused or will have caused, within ten days, the
      filing of all appropriate financing statements in the proper filing office
      in the appropriate jurisdictions under applicable law in order to perfect
      the security interest in the Financed Eligible Loans and all other assets
      of the Trust Estate granted to the Trustee hereunder.

            (e) The Issuer has given the Trustee a copy of a written
      acknowledgment from each Custodian that such Custodian is holding executed
      copies of the promissory notes and master promissory notes that constitute
      or evidence the Financed Eligible Loans, and that such Custodian is
      holding such solely on behalf and for the benefit of the Trustee.

            (f) Other than the security interest granted to the Trustee pursuant
      to this Indenture, the Issuer has not pledged, assigned, sold, granted a
      security interest in, or otherwise conveyed any of the Financed Eligible
      Loans or any other portion of the Trust Estate. The Issuer has not
      authorized the filing of and is not aware of any financing statements
      against the Issuer that include a description of collateral covering the
      Financed Eligible Loans or any other portion of the Trust Estate other
      than any financing statement relating to the security interest granted to
      the Trustee hereunder or that has been terminated. The Issuer is not aware
      of any judgment or tax lien filings against the Issuer.

      SECTION 4.18 FURTHER COVENANTS OF THE ISSUER REGARDING THE TRUSTEE'S
SECURITY INTEREST. The Issuer hereby covenants for the benefit of the Trustee
and the Registered Owners and the Counterparties as follows:

            (a) The representations and warranties set forth in Section 4.17
      shall survive the termination of this Indenture.

            (b) The Trustee shall not waive any of the representations and
      warranties set forth in Section 4.17 above.

            (c) The Issuer shall take all steps necessary, and shall cause the
      Servicers and subservicers, if any, to take all steps necessary and
      appropriate, to maintain the perfection and priority of the Trustee's
      security interest in the Financed Eligible Loans and all other assets of
      the Trust Estate.

      SECTION 4.19 OPINIONS AS TO TRUST ESTATE.

            (a) On the date of issuance of each series of Notes, the Issuer
      shall furnish to the Trustee an Opinion of Counsel either stating that, in
      the opinion of such counsel, such action has been taken with respect to
      the recording and filing of this Indenture, any Supplemental Indentures
      hereto, and any other requisite documents, and with respect to the
      execution and filing of any financing statements and continuation
      statements, as are necessary to perfect and make effective the lien and
      security interest of this Indenture and reciting the details of such
      action, or stating that, in the opinion of such counsel, no such action is
      necessary to make such lien and security interest effective.

            (b) On or before March 31, in each calendar year, beginning on March
      31, 2005, the Issuer shall furnish to the Trustee an Opinion of Counsel
      either

                                       47
<PAGE>

      stating that, in the opinion of such counsel, such action has been taken
      with respect to the recording, filing, re-recording and refiling of this
      Indenture, any Supplemental Indentures hereto and any other requisite
      documents and with respect to the execution and filing of any financing
      statements and continuation statements as are necessary to maintain the
      lien and security interest created by this Indenture and reciting the
      details of such action or stating that in the opinion of such counsel no
      such action is necessary to maintain such lien and security interest. Such
      Opinion of Counsel shall also describe the recording, filing, re-recording
      and refiling of this Indenture, any Supplemental Indentures hereto and any
      other requisite documents and the execution and filing of any financing
      statements and continuation statements that will, in the opinion of such
      counsel, be required to maintain the lien and security interest of this
      Indenture until March 31, in the following calendar year.

                                   ARTICLE V

                                     FUNDS

      SECTION 5.01 CREATION AND CONTINUATION OF FUNDS AND ACCOUNTS. There are
hereby created and established the following Funds and Accounts to be held and
maintained by the Trustee for the benefit of the Registered Owners and the
Counterparties:

            (a) Acquisition Fund;

            (b) Collection Fund;

            (c) Reserve Fund;

            (d) Capitalized Interest Account; and

            (e) Add-on Consolidation Loan Fund.

      The Trustee is hereby authorized for the purpose of facilitating the
administration of the Trust Estate and for the administration of any Notes
issued hereunder to create further Accounts or Subaccounts in any of the various
Funds and Accounts established hereunder which are deemed necessary or
desirable.

      SECTION 5.02 ACQUISITION FUND. There shall be deposited into the
Acquisition Fund moneys from proceeds of the Notes in an amount equal to
$1,056,644,585. Financed Eligible Loans shall be held by the Trustee or its
agent or bailee (including a Custodian or Servicer) and shall be pledged to the
Trust Estate and accounted for as a part of the Acquisition Fund.

      Moneys on deposit in the Acquisition Fund shall be used, upon Issuer
Order, solely to (a) pay costs of issuance of the Notes, and (b) upon receipt by
the Trustee of an Eligible Loan Acquisition Certificate, to acquire Eligible
Loans pursuant to a Student Loan Purchase Agreement at a price not in excess of,
in respect of each Eligible Loan (i) acquired on the Closing Date, 102.5% of the
aggregate principal balance of such Eligible Loan plus accrued borrower interest
thereon, and (ii) otherwise, 102.5% of the aggregate principal balance of such

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Eligible Loan, plus accrued borrower interest. Any such Issuer Order or Eligible
Loan Acquisition Certificate shall state that such proposed use of moneys in the
Acquisition Fund is in compliance with the provisions of this Indenture. An
Authorized Representative of the Issuer may, by Issuer Order, direct the Trustee
to transfer any or all such moneys to the Collection Fund for use therein.
Notwithstanding the foregoing, if any funds or moneys remain in the Acquisition
Fund on June 30, 2004, then the Trustee shall, without direction from or notice
to the Issuer, transfer all such remaining moneys or funds to the Collection
Fund not later than the third Business Day preceding the Quarterly Distribution
Date in September 2004.

      While the Issuer will be the beneficial owner of the Financed Eligible
Loans and the Registered Owners and the Counterparties will have a security
interest therein, it is understood and agreed that the Trustee will be the legal
owner thereof and will have a security interest in the Financed Eligible Loans
for and on behalf of the Registered Owners and the Counterparties. In the case
of a single Financed Eligible Loan evidenced by a separate note, each such note
will be held in the name of the Trustee for the account of the Issuer, for the
benefit of the Registered Owners and the Counterparties. In the case of a
Financed Eligible Loan evidenced by a Master Promissory Note, the Issuer shall
cause the holder of the original Master Promissory Note to indicate by book
entry on its books and records that the Issuer is the beneficial owner of the
Loan and that the Trustee is the legal owner and has a security interest in the
Financed Eligible Loan for the benefit of the Registered Owners and the
Counterparties.

      Except as provided in Sections 5.08, 10.03 and 10.04 hereof, Financed
Eligible Loans shall not be sold, transferred or otherwise disposed of (other
than for consolidation, serialization or transfer to a Guaranty Agency) by the
Trustee free from the lien of this Indenture.

      SECTION 5.03 COLLECTION FUND.

            (a) Deposits to Collection Fund. There shall be deposited to the
      Collection Fund all Available Funds, and all other moneys and investments
      derived from assets on deposit in and transfers from the Acquisition Fund,
      the Add-on Consolidation Loan Fund, the Capitalized Interest Account and
      the Reserve Fund, all Counterparty Payments and any other amounts
      deposited thereto upon receipt of an Issuer Order. Moneys on deposit in
      the Collection Fund shall be used to make the payments described below.
      The Trustee may conclusively rely on all written instructions of the
      Administrator described in this Indenture with no further duty to examine
      or determine the information contained in any Administrator's Certificate
      or Issuer Order.

            (b) Payments on Monthly Payment Dates. The Administrator shall
      instruct the Trustee in writing no later than the Business Day preceding
      each Monthly Payment Date, or on such Monthly Payment Date if the Trustee
      so consents (based on the information contained in a signed certificate by
      the Administrator and the Back-up Administrator (in the form set forth as
      Exhibit C hereto) to make the following distributions by 1:00 p.m. (New
      York time) on such Monthly Payment Date, from and to the extent of the
      Available Funds on deposit in the Collection Fund, in the following
      priority: (i) to the Department, amounts owed in respect of the Financed
      Eligible Loans; (ii) to the Master Servicer, Servicing Fees owed to it for
      such month and any unpaid

                                       49
<PAGE>

      Servicing Fees from prior months; and (iii) to the Counterparties, based
      on amounts owed to such party, without preference or priority of any kind,
      any Issuer Derivative Payments owed to each such Counterparty for that
      month, excluding all Termination Payments.

            (c) Payments on Quarterly Distribution Dates and Auction Rate
      Distribution Dates. The Administrator shall instruct the Trustee in
      writing no later than the Business Day preceding each Auction Rate
      Distribution Date and Quarterly Distribution Date, or on such Auction Rate
      Distribution Date or Quarterly Distribution Date if the Trustee so
      consents (based on the information contained in a signed certificate by
      the Administrator and the Back-up Administrator (in the form set forth as
      Exhibit D hereto) and the related Servicer's Report) to make the following
      deposits and distributions from Available Funds in the Collection Fund to
      the Persons or to the account specified below by 1:00 p.m. (New York time)
      on such Distribution Date and the Trustee shall comply with such
      instructions:

                        (A) to the Department, amounts owed with respect to the
            Financed Eligible Loans;

                        (B) to pay to the Master Servicer, the Trustee, the
            Auction Agent, the Broker-Dealers and the Delaware Trustee, pro
            rata, based on amounts owed to each such party, without preference
            or priority of any kind, the Servicing Fee (to the extent remaining
            unpaid following the Monthly Payment Date), the Trustee Fee, the
            Auction Agent Fee, the Broker-Dealer Fees, and the Delaware Trustee
            Fee, respectively, due on such Distribution Date, in each case,
            together with such fees remaining unpaid from prior Distribution
            Dates (and, in the case of the Servicing Fee, prior Monthly Payment
            Dates);

                        (C) to pay to the Administrator and the Back-up
            Administrator, pro rata, based on amounts owed to each such party,
            the Administration Fee due on such Distribution Date and all unpaid
            Administration Fees from prior Distribution Dates and the Back-up
            Administration Fee due on such Distribution Date and all unpaid
            Back-up Administration Fees from prior Distribution Dates,
            respectively;

                        (D) to pay, pro rata, (i) to the Class A Noteholders of
            each class for which such date is a Distribution Date, the portion
            of the Class A Noteholders' Interest Distribution Amount payable to
            such class on such Distribution Date and (ii) to the Counterparties,
            any Issuer Derivative Payments arising from Confirmations, and any
            Priority Termination Payments, owed to the Counterparties on such
            Distribution Date, based on amounts owed to each such party;

                        (E) to pay, pro rata, to the Class B Noteholders of each
            class for which such date is a Distribution Date, the portion of the
            Class B Noteholders' Interest Distribution Amount payable to such
            class on such Distribution Date;

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<PAGE>

                        (F) to pay to the Class A-1 Noteholders until the Class
            A-1 Notes are been paid in full, the Class A-1 Noteholders'
            Principal Distribution Amount;

                        (G) to pay to the Class A-2 Noteholders until the Class
            A-2 Notes are paid in full, the Class A-2 Noteholders' Principal
            Distribution Amount;

                        (H) to pay to the Class A-3 Noteholders, until the Class
            A-3 Notes are paid in full, the Class A-3 Noteholders' Principal
            Distribution Amount;

                        (I) to pay to the Class A-4 Noteholders, until the Class
            A-4 Notes are paid in full, the Class A-4 Noteholders' Principal
            Distribution Amount;

                        (J) to pay to the Class A-5 Noteholders, in lots of
            $50,000, until the Class A-5 Notes are paid in full, the Class A-5
            Noteholders' Principal Distribution Amount;

                        (K) to pay to the Class A-6 Noteholders, in lots of
            $50,000, until the Class A-6 Notes are paid in full, the Class A-6
            Noteholders' Principal Distribution Amount;

                        (L) to pay to the Class B Notes, until paid in full, the
            Principal Distribution Amount, pro rata, in lots of $50,000, without
            preference or priority of any kind; and

                        (M) to deposit to the Reserve Fund, the amount, if any,
            necessary to reinstate the balance of the Reserve Fund up to the
            Reserve Fund Requirement;

                        (N) to pay to the Class A-5 Noteholders and the Class
            A-6 Noteholders, pro rata, any unpaid Auction Rate Carry-Over Amount
            for each such class, pro rata, without preference or priority of any
            kind;

                        (O) to pay to the Class B Noteholders, any unpaid
            Auction Rate Carry-Over Amount;

                        (P) to pay to the Counterparties, any Issuer Derivative
            Payments (including, without limitation, any Termination Payments
            other than Priority Termination Payments) due to the Counterparties
            under the Derivative Product Agreements that remain unpaid;

                        (Q) to pay to the Master Servicer, the aggregate unpaid
            amount of the Carryover Servicing Fee, if any;

                        (R) if the Student Loans are not sold on the Optional
            Purchase Date, to pay as accelerated payment of principal to the
            holders of the Notes in the

                                       51
<PAGE>

            order and priority described in clauses (F) through (L) above, until
            each Class of Notes has been paid in full; and

                        (S) on each Quarterly Distribution Date, subject to the
            remaining Sections of this Section 5.03, to pay to the Sponsor any
            remaining funds.

            Notwithstanding the above, on each Quarterly Distribution Date, all
      deposits and distributions made following clause (E) above shall be made
      only with money then available in the Collection Fund that exceeds the
      Auction Rate Notes Accrued Interest Amount for such Quarterly Distribution
      Date.

            Amounts properly distributed to the Sponsor pursuant to paragraph
      (S) shall be deemed released from the Trust Estate and the security
      interest therein granted to the Trustee, and the Sponsor shall in no event
      thereafter be required to refund any such distributed amounts.

            (d) Determination, Allocation and Payment of Principal Distribution
      Amount. The Principal Distribution Amount will be determined and allocated
      to the Notes only on Quarterly Distribution Dates. If a class of LIBOR
      Rate Notes is allocated some or all of the Principal Distribution Amount
      on a Quarterly Distribution Date, that class also will be paid such amount
      on such Quarterly Distribution Date. If a class of Auction Rate Notes is
      allocated some or all of the Principal Distribution Amount on a Quarterly
      Distribution Date, such class will be paid such amount on such Quarterly
      Distribution Date only if such date is also an Auction Rate Distribution
      Date for such class. Otherwise, such Principal Distribution Amount or
      portion thereof will be allocated to such class and held in the Collection
      Fund and paid to such class on the immediately succeeding Auction Rate
      Distribution Date for such class.

            (e) Allocations of Funds among Holders of Auction Rate Notes. If
      less than all of the Auction Rate Notes of a given class are to be paid or
      allocated principal in an amount sufficient to cover the full amount
      payable to such Note, the particular Auction Rate Notes of such class to
      be paid shall be selected by the Trustee by random lots of $50,000. If
      there are any amounts available to pay principal to the Class A-5 Notes
      and the Class A-6 Notes or to the Class B Notes, as applicable, that are
      not in $50,000 increments, the Trustee shall retain such amounts in the
      Collection Account to pay principal to the Class A-5 Notes, Class A-6
      Notes and Class B Notes.

            (f) Optional Redemption of Class B Notes. Prior to the date on which
      the Outstanding Amount of the Class A Notes is reduced to zero, and
      provided that a Rating Agency Confirmation has been obtained; the Issuer
      may, by Issuer Order, instruct the Trustee to pay principal on each class
      of Class B Notes on an Auction Rate Distribution Date from amounts
      otherwise distributable to the Sponsor pursuant to clause (S) on the
      preceding Quarterly Distribution Date.

            (g) Redemption of Auction Rate Notes Generally; Prepayment Date and
      Prepayment Price. Following the payment in full of the LIBOR Rate Notes,
      the Notes of

                                       52
<PAGE>

      any class of Auction Rate Notes shall be subject to redemption or
      principal distribution at the option of the Issuer on any date selected by
      it (a "Prepayment Date") pursuant to Section 5.03(h), (i) or (j) and as
      otherwise provided in clauses (k) through (o) below. The redemption price
      (the "Prepayment Price") for any Notes to be redeemed pursuant to Section
      5.03(h), (i) or (j) shall be 100% of the outstanding principal balance of
      such Notes plus interest accrued thereon through the Prepayment Date,
      provided, that if all of the Outstanding Notes are to be redeemed, the
      redemption price shall also include an amount sufficient to pay all fees
      owed to the Trustee, the Master Servicer, the Auction Agent, the
      Broker-Dealers, the Administrator and the Delaware Trustee, any Issuer
      Derivative Payments owed to the Counterparties and any Auction Rate
      Carry-Over Amounts owed to a class of Auction Rate Notes.

            (h) Optional Redemption of Auction Rate Notes. For any Auction Rate
      Distribution Date following the payment in full of the LIBOR Rate Notes,
      and subject to Section 5.03(f) the Issuer may, by Issuer Order, instruct
      the Trustee to pay principal on one or more classes of Auction Rate Notes
      selected by the Issuer, from amounts otherwise distributable to the
      Sponsor pursuant to clause (S) on such Quarterly Distribution Date.

            (i) Optional Redemption of Auction Rate Notes From Sale of Financed
      Eligible Loans. For any Auction Rate Distribution Date following the
      payment in full of the LIBOR Rate Notes, the Issuer may, by Issuer Order,
      direct the Trustee to sell Financed Eligible Loans and use the proceeds of
      such sale to redeem one or more classes of Auction Rate Notes selected by
      the Issuer, provided that (i) the Trustee may not sell any Financed
      Eligible Loans for less than the Purchase Amount for each such Financed
      Eligible Loan and (ii) the Issuer and the Trustee shall have received
      Rating Agency Confirmation with respect to such sale. Any such sale shall
      be effected by the Trustee in the same manner as a sale of the Trust
      Estate pursuant to Section 6.04 hereof, and proceeds of such sale shall be
      deposited into the Collection Fund and applied to redeem each such class
      on the immediately succeeding Auction Rate Distribution Date for such
      class.

            (j) Extraordinary Optional Redemption of Auction Rate Notes. For any
      Auction Rate Distribution Date following the payment in full of the LIBOR
      Rate Notes, the Issuer may, by Issuer Order, direct the Trustee to redeem
      some or all of the Auction Rate Notes selected by the Issuer at the
      applicable Prepayment Price on any Auction Rate Distribution Date for each
      such class, if the Issuer reasonably determines that the rate of return on
      the Financed Eligible Loans has materially decreased or that the costs of
      administering the Trust Estate have placed unreasonable burdens on the
      Issuer's ability (or the Administrators' ability on behalf of the Issuer)
      to perform the Issuer's obligations under this Indenture.

            (k) Notice of Redemption and Purchase. An election of the Issuer to
      prepay any class of Auction Rate Notes pursuant to Section 5.03(f) through
      (j) shall be evidenced by an Issuer Order, received by the Trustee and the
      Auction Agent no later than the 25th day preceding the Prepayment Date,
      stating (i) the Prepayment Date, (ii) the

                                       53
<PAGE>

      class or classes of Notes or portion thereof to be prepaid, (iii) the
      principal amount of each such class or classes of Notes or portion thereof
      to be redeemed and (iv) the portion of the Prepayment Price allocable to
      each such class or portion thereof.

            Notice of prepayment with respect to any class of Notes shall be
      given by the Trustee by first-class mail, postage prepaid, mailed by no
      later than 15 days prior to the Prepayment Date to the Registered Owners
      of Notes to be prepaid at the address of such Registered Owner appearing
      in the note register; but neither failure to give such notice nor any
      defect in any notice so given shall affect the validity of the proceedings
      for prepayment of any Note not affected by such failure or defect. So long
      as any such Notes are maintained in book-entry form, the Trustee shall
      treat the Clearing Agency as the sole Registered Owner of such Notes. All
      notices of prepayment shall state (i) the Prepayment Date, (ii) the
      Prepayment Price, (iii) the name (including class designation), Final
      Maturity Date and CUSIP number of each of the Notes to be prepaid, (iv)
      the principal amount of Notes of each class to be prepaid, and, if less
      than all outstanding Notes of a class are to be prepaid, the
      identification (and, in the case of partial prepayment, the respective
      principal amounts) of the Notes of each class to be prepaid, (v) that, on
      the Prepayment Date, the Prepayment Price on each such Note will become
      due and payable and that interest on each such Note shall cease to accrue
      on and after such date, (vi) the place or places where such Notes are to
      be surrendered for payment of the Prepayment Price thereof, and (vii) if
      it be the case, that such Notes are to be prepaid by the application of
      certain specified trust moneys and for certain specified reasons.

            Within 60 days after any Prepayment Date, a second notice of
      prepayment shall be given by the Trustee, in the manner described above,
      to the Registered Owner of a Note that was not presented for prepayment
      within 30 days after the Prepayment Date. Following provision of notice,
      the Prepayment Price will become due and payable on the Prepayment Date,
      and interest shall cease to accrue on the Notes to be redeemed. Upon
      surrender of any such Note for redemption in accordance with such notice,
      such Note shall be paid at the Prepayment Price. If any Note called for
      redemption shall not be so paid upon surrender thereof for redemption, the
      Prepayment Price and, to the extent lawful, interest thereon shall, until
      paid, bear interest from the Prepayment Date at the interest rate borne by
      the Note on the Prepayment Date.

            Any Note which is to be redeemed only in part shall be surrendered
      to the Trustee (with, if the Trustee so requires, due endorsement by, or a
      written instrument of transfer in form satisfactory to the Trustee duly
      executed by, the Registered Owner thereof or his, her or its attorney duly
      authorized in writing) and an Authorized Representative shall execute and
      the Trustee shall authenticate and deliver to the Registered Owner of such
      Note, without service charge, a new Note or Notes of the same class, of
      any authorized denomination or denominations, in aggregate outstanding
      principal balance equal to the unredeemed portion of the principal of the
      Note so surrendered. Any Note with respect to which a partial distribution
      of principal is made shall remain Outstanding in the then current
      outstanding principal balance. The Trustee shall retain a record of the
      outstanding principal balance of each Note any portion of the principal of
      which has been distributed.

                                       54
<PAGE>

            (l) Limitation on Redemption of Class B Notes. Notwithstanding
      anything to the contrary, in no event may any Class B Notes be redeemed
      pursuant to Section 5.03(i) or (j) if any Class A Notes would be
      Outstanding following such redemption unless the Issuer receives a Rating
      Agency Confirmation in connection with such redemption.

            (m) Limitation on Sale of Financed Eligible Loans. Except upon
      satisfying the Rating Agency Confirmation, the Issuer may direct the
      Trustee to sell to any purchaser one or more Financed Eligible Loans only
      in the following circumstances: (i) to the Sponsor or other seller if such
      party is required to repurchase such Financed Eligible Loan pursuant to a
      Loan Purchase Agreement; (ii) to a Guaranty Agency under a Guarantee
      Agreement; (iii) pursuant to Section 5.03(i) hereof or (iv) pursuant to
      Section 10.03 hereof. Any money received by the Issuer in connection with
      a sale of Financed Eligible Loans pursuant to this paragraph shall, in the
      case of a sale pursuant to (1) clauses (i) and (ii) of the preceding
      sentence, be deposited into the Collection Fund for application on the
      immediately succeeding Monthly Payment Date, Quarterly Distribution Date
      or Auction Rate Distribution Date, as applicable, and (2) clauses (iii)
      and (iv) of the preceding sentence, be applied as set forth in Section
      5.03(i) and Section 10.03 hereof, respectively. Notwithstanding the
      foregoing, except pursuant to Section 10.03 hereof, the Issuer may not
      direct the Trustee to sell any Financed Eligible Loans to the Sponsor
      (unless the Sponsor is required to repurchase such Eligible Loan pursuant
      to a Loan Purchase Agreement).

      SECTION 5.04 RESERVE FUND.

            (a) On the Closing Date, the Trustee shall deposit $8,006,610 into
      the Reserve Fund. Thereafter, the Trustee shall transfer to the Reserve
      Fund from the Collection Fund all amounts designated for transfer thereto
      pursuant to Section 5.03(c)(M) hereof.

            (b) On each Monthly Payment Date or Distribution Date, to the extent
      there are insufficient Available Funds in the Collection Fund to make one
      or more of the transfers required by Sections 5.03(b) and 5.03(c)(A)
      through (c)(E), and after giving effect to any transfers from the
      Capitalized Interest Account to the Collection Fund on such Monthly
      Payment Date or Distribution Date, as the case may be, then the
      Administrator shall instruct the Trustee in writing to withdraw from the
      Reserve Fund on such Monthly Payment Date or Distribution Date, as the
      case may be, an amount equal to such deficiency and to deposit such amount
      in the Collection Fund. Additionally, if on the Final Maturity Date for a
      class of Notes, and after giving effect to the distribution of the
      Available Funds on such Final Maturity Date, the principal amount of such
      class of Notes will not be reduced to zero, the Administrator shall
      instruct the Trustee in writing to withdraw from the Reserve Fund on such
      Final Maturity Date an amount equal to the amount needed to reduce the
      principal amount of such class of Notes to zero and to deposit such amount
      in the Collection Fund for application to payment of the outstanding
      principal balance of such class of Notes.

            (c) After giving effect to Section 5.04(b) above, if the amount on
      deposit in the Reserve Fund on any Distribution Date is greater than the
      Reserve Fund Requirement

                                       55
<PAGE>

      for such Distribution Date, the Administrator shall instruct the Trustee
      in writing to withdraw from the Reserve Fund on such Distribution Date an
      amount equal to such excess and to deposit such amount in the Collection
      Fund.

            (d) On the final Distribution Date upon termination of the Trust and
      following the payment in full of the Outstanding Amount of the Notes and
      of all other amounts (other than unpaid Issuer Derivative Payments and
      Carryover Servicing Fees) owing or to be distributed hereunder to
      Noteholders, the Trustee, the Master Servicer, the Administrator, the
      Auction Agent, the Broker-Dealers, the Delaware Trustee or the
      Counterparties (excluding Termination Payments other than Priority
      Termination Payments), to the extent that Available Funds on such date are
      insufficient to make the following payments, amounts remaining in the
      Reserve Fund shall be used first to pay any unpaid Issuer Derivative
      Payments and second to pay any Carryover Servicing Fees. Any amount
      remaining on deposit in the Reserve Fund after such payments have been
      made shall be distributed to the Sponsor. The Sponsor shall in no event be
      required to refund any amounts properly distributed pursuant to this
      Section 5.04(d).

      SECTION 5.05 CAPITALIZED INTEREST ACCOUNT. (a) On the Closing Date, the
Trustee shall deposit $5,000,000 into the Capitalized Interest Account. On each
Monthly Payment Date or Distribution Date, to the extent there are insufficient
Available Funds in the Collection Fund to make one or more of the transfers
required by Sections 5.03(b) and 5.03(c)(A) through (c)(E), before giving effect
to any transfers from the Reserve Fund to the Collection Fund on such Monthly
Payment Date or Distribution Date, as the case may be, then the Administrator
shall instruct the Trustee in writing to withdraw from the Capitalized Interest
Account on such Monthly Payment Date or Distribution Date, as the case may be,
an amount equal to such deficiency and to deposit such amount in the Collection
Fund.

            (b After giving effect to Section 5.05(a) above, if the amount on
      deposit in the Capitalized Interest Account on the Quarterly Distribution
      Date in March 2005 is greater than $2,000,000, the Administrator shall
      instruct the Trustee in writing to withdraw from the Capitalized Interest
      Account on such Quarterly Distribution Date an amount equal to the excess
      and to deposit such amount in the Collection Fund.

            (c) After giving effect to Section 5.05(a) above, on the Quarterly
      Distribution Date in September 2005 the Administrator shall instruct the
      Trustee in writing to withdraw all amounts remaining in the Capitalized
      Interest Account on such Quarterly Distribution Date and to deposit such
      amounts in the Collection Fund.

      SECTION 5.06 ADD-ON CONSOLIDATION LOAN FUND. On the Closing Date, the
Trustee shall deposit $40,000,000 into the Add-on Consolidation Loan Fund.
Moneys on deposit in the Add-on Consolidation Loan Fund shall be used, upon
Issuer Order, and upon receipt by the Trustee of an Eligible Loan Acquisition
Certificate, to acquire Add-on Consolidation Loans pursuant to a Student Loan
Purchase Agreement at a price not in excess of 102.5% of the principal balance
of such Add-on Consolidation Loan plus accrued borrower interest thereon. Any
such Issuer Order or Eligible Loan Acquisition Certificate shall state that such
proposed use of moneys in the Add-on Consolidation Loan Fund is in compliance
with the provisions of this

                                       56
<PAGE>

Indenture. An Authorized Representative of the Issuer may, by Issuer Order,
direct the Trustee to transfer any or all such moneys to the Collection Fund for
use therein. Notwithstanding the foregoing, if any funds or moneys remain in the
Add-on Consolidation Loan Fund on the third Business Day preceding the Quarterly
Distribution Date in December 2004, then the Trustee shall, without direction
from or notice to the Issuer, transfer all such remaining moneys or funds to the
Collection Fund on the third Business Day preceding such Quarterly Distribution
Date.

      SECTION 5.07 INVESTMENT OF FUNDS HELD BY TRUSTEE. The Trustee shall invest
money held for the credit of any Fund or Account or Subaccount held by the
Trustee hereunder as directed in writing (or orally, confirmed in writing) by an
Authorized Representative of the Issuer, to the fullest extent practicable and
reasonable, in Investment Securities which shall mature or be redeemed at the
option of the holder prior to the next Monthly Payment Date. In the absence of
any such direction and to the extent practicable, the Trustee may invest amounts
held hereunder in those Investment Securities described in clause (ix) of the
definition of the Investment Securities. All such investments shall be held by
(or by any Custodian on behalf of) the Trustee for the benefit of the Issuer;
provided that prior to or on the Business Day preceding each Distribution Date
and Monthly Payment Date all interest and other investment income collected (net
of losses and investment expenses) on funds on deposit therein shall be
deposited into the Collection Fund and shall be deemed to constitute a portion
of the Available Funds for such Distribution Date. The Trustee and the Issuer
hereby agree that unless an Event of Default shall have occurred hereunder, the
Issuer acting by and through an Authorized Representative shall be entitled to,
and shall, provide written direction or oral direction confirmed in writing to
the Trustee with respect to any discretionary acts required or permitted of the
Trustee under any Investment Securities and the Trustee shall not take such
discretionary acts without such written direction.

      The Investment Securities purchased shall be held by the Trustee and shall
be deemed at all times to be part of such Fund or Account or Subaccounts or
combination thereof, and the Trustee shall inform the Issuer of the details of
all such investments. Upon direction in writing (or orally, confirmed in
writing) from an Authorized Representative of the Issuer, the Trustee shall use
its best efforts to sell at the best price obtainable, or present for
redemption, any Investment Securities purchased by it as an investment whenever
it shall be necessary to provide money to meet any payment from the applicable
Fund. The Trustee shall advise the Issuer in writing, on or before the fifteenth
day of each calendar month (or such later date as reasonably consented to by the
Issuer), of all investments held for the credit of each Fund in its custody
under the provisions of this Indenture as of the end of the preceding month and
the value thereof, and shall list any investments which were sold or liquidated
for less than the par value thereof, plus accrued but unpaid interest at the
time thereof.

      Money in any Fund constituting a part of the Trust Estate may be pooled
for the purpose of making investments and may be used to pay accrued interest on
Investment Securities purchased. The Trustee and its affiliates may act as
principal or agent in the acquisition or disposition of any Investment
Securities.

      Notwithstanding the foregoing, the Trustee shall not be responsible or
liable for any losses on investments made by it hereunder or for keeping all
Funds held by it, fully invested at

                                       57
<PAGE>

all times, its only responsibility being to comply with the investment
instructions of the Issuer or its designee in a non-negligent manner.

      The Issuer acknowledges that to the extent the regulations of the
Comptroller of the Currency or other applicable regulatory agency grant the
Issuer the right to receive brokerage confirmations of security transactions,
the Issuer waives receipt of such confirmations.

      Any investment of funds in Investment Securities shall be held by a
financial institution in accordance with the following requirements:

                  (i) all Investment Securities shall be held in an account with
            such financial institution in the name of the Trustee;

                  (ii) all Investment Securities held in such account shall be
            delivered to the Trustee in the following manner:

                        (A) with respect to bankers' acceptances, commercial
            paper, negotiable certificates of deposit and other obligations that
            constitute "instruments" within the meaning of Section 9-102(a)(47)
            of the Uniform Commercial Code in effect in the applicable
            jurisdiction (the "UCC") (other than certificated securities) and
            are susceptible of physical delivery, transferred to the Trustee by
            physical delivery to the Trustee, indorsed to, or registered in the
            name of, the Trustee or its nominee or indorsed in blank; or such
            additional or alternative procedures as may hereafter become
            appropriate to effect the complete transfer of ownership of any such
            Investment Securities to the Trustee free of any adverse claims,
            consistent with changes in applicable law or regulations or the
            interpretation thereof;

                        (B) with respect to a "certificated security" (as
            defined in Section 8-102(a)(4) of the UCC), transferred:

                              (1) by physical delivery of such certificated
                        security to the Trustee, provided that if the
                        certificated security is in registered form, it shall be
                        indorsed to, or registered in the name of, the Trustee
                        or indorsed in blank;

                              (2) by physical delivery of such certificated
                        security in registered form to a "securities
                        intermediary" (as defined in Section 8-102(a)(14) of the
                        UCC) acting on behalf of the Trustee if the certificated
                        security has been specially indorsed to the Trustee by
                        an effective endorsement;

                        (C) with respect to any security issued by the U.S.
            Treasury, the Federal Home Loan Mortgage Corporation or by the
            Federal National Mortgage Association that is a book-entry security
            held through the Federal Reserve System pursuant to Federal book
            entry regulations, the following procedures, all in accordance with
            applicable law, including applicable federal

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            regulations and Articles 8 and 9 of the UCC: book-entry registration
            of such property to an appropriate book-entry account maintained
            with a Federal Reserve Bank by a securities intermediary which is
            also a "depositary" pursuant to applicable federal regulations and
            issuance by such securities intermediary of a deposit advice or
            other written confirmation of such book-entry registration to the
            Trustee of the purchase by the securities intermediary on behalf of
            the Trustee of such book-entry security; the making by such
            securities intermediary of entries in its books and records
            identifying such book-entry security held through the Federal
            Reserve System pursuant to Federal book-entry regulations as
            belonging to the Trustee and indicating that such securities
            intermediary holds such book-entry security solely as agent for the
            Trustee; or such additional or alternative procedures as may
            hereafter become appropriate to effect complete transfer of
            ownership of any such Investment Securities to the Trustee free of
            any adverse claims, consistent with changes in applicable law or
            regulations or the interpretation thereof;

                        (D) with respect to any "uncertificated security" (as
            defined in Section 8-102(a)(18) of the UCC) that is not governed by
            clause (C) above, transferred:

                              (1) (a) by registration to the Trustee as the
                        registered owner thereof, on the books and records of
                        the issuer thereof, or

                              (b) by registration to another Person (not a
                        securities intermediary) that either becomes the
                        registered owner of the uncertificated security on
                        behalf of the Trustee or, having become the registered
                        owner, acknowledges that it holds for the Trustee; or

                              (2) by the issuer thereof having agreed that it
                        will comply with instructions originated by the Trustee
                        without further consent of the registered owner thereof;

                        (E) with respect to any "security entitlement" (as
            defined in Section 8-102(a)(17) of the UCC):

                              (1) if a securities intermediary

                              (a) indicates by book entry that a "financial
                        asset" (as defined in Section 8-102(a)(9) of the UCC)
                        has been credited to the Trustee's "securities account"
                        (as defined in Section 8-501(a) of the UCC),

                              (b) receives a financial asset (as so defined)
                        from the Trustee or acquires a financial asset for the
                        Trustee, and, in either case, accepts it for credit to
                        the Trustee's securities account (as so defined),

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                              (c) becomes obligated under other law, regulation
                        or rule to credit a financial asset to the Trustee's
                        securities account, or

                              (d) has agreed that it will comply with
                        "entitlement orders" (as defined in Section 8-102(a)(8)
                        of the UCC) originated by the Trustee, without further
                        consent by the "entitlement holder" (as defined in
                        Section 8-102(a)(7) of the UCC), and

                              (2) such financial asset either is such Investment
                        Security or a security entitlement evidencing a claim
                        thereto; and

                        (F) in each case of delivery contemplated pursuant to
            clauses (A) through (E) above, the Trustee shall make appropriate
            notations on its records, and shall cause the same to be made on the
            records of its nominees, indicating that such Investment Security is
            held in trust pursuant to and as provided in this Indenture.

      Any cash held by the Trustee shall be considered a "financial asset" for
purposes of this paragraph. Subject to the other provisions hereof, the Trustee
shall have sole control over each such investment and the income thereon, and
any certificate or other instrument evidencing any such investment, if any,
shall be delivered directly to the Trustee or its agent, together with each
document of transfer, if any, necessary to transfer title to such investment to
the Trustee in a manner which complies with this paragraph.

      The Trustee agrees that it has no security interest or other adverse claim
to the Funds or the Investment Securities therein that are part of the Trust
Estate other than pursuant to this Indenture and that it will not enter into any
agreement that would give any Person or entity other than the Trustee the right
to give entitlement orders with respect to such Investment Securities or the
Funds.

      The Administrator, on behalf of the Issuer, shall retain the authority to
institute, participate and join in any plan of reorganization, readjustment,
merger or consolidation with respect to the issuer of any Investment Securities
held hereunder, and, in general, to exercise each and every other power or right
with respect to such Investment Securities as individuals generally have and
enjoy with respect to their own assets and investments, including power to vote
upon any matter relating to holders of such Investment Securities.

      SECTION 5.08 RELEASE.

            (a) The Trustee shall, upon Issuer Order and subject to the
      provisions of this Indenture, take all actions reasonably necessary to
      effect the release of any Financed Eligible Loans from the lien of this
      Indenture to the extent the terms hereof permit the sale, disposition or
      transfer of such Financed Eligible Loans.

            (b) Subject to the payment of its fees and expenses pursuant to
      Sections 7.05 and 7.07, the Trustee may, and when required by the
      provisions of this Indenture shall, execute instruments to release
      property from the lien of this Indenture, or convey the

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      Trustee's interest in the same, in a manner and under circumstances that
      are not inconsistent with the provisions of this Indenture. No party
      relying upon an instrument executed by the Trustee as provided in this
      Article V shall be bound to ascertain the Trustee's authority, inquire
      into the satisfaction of any conditions precedent or see to the
      application of any moneys.

            (c) The Trustee shall, at such time as there are no Notes
      Outstanding and all sums due the Trustee pursuant to Sections 7.05 and
      7.07 and all amounts payable to the Master Servicer, the Administrator,
      the Auction Agents, the Broker-Dealers, the Delaware Trustee and the
      Counterparties have been paid, release any remaining portion of the Trust
      Estate that secured the Notes from the lien of this Indenture and release
      to the Issuer or any other Person entitled thereto any funds then on
      deposit in the Funds and Accounts. The Trustee shall release property from
      the lien of this Indenture pursuant to this Section 5.07(c) only upon
      receipt of an Issuer Order, an Opinion of Counsel and (if required by the
      TIA) Independent Certificates in accordance with TIA Sections 314(c) and
      314(d)(1).

            (d) Subject to the provisions of this Indenture, the Trustee shall
      release property from the lien of this Indenture only upon receipt of an
      Issuer Order, an Opinion of Counsel and Independent Certificates in
      accordance with TIA Sections 314(c) and 314(d)(1) or an Opinion of Counsel
      in lieu of such Independent Certificates to the effect that the TIA does
      not require any such Independent Certificates.

            (e) Each Registered Owner, by the acceptance of a Note, acknowledges
      that from time to time the Trustee shall release the lien of this
      Indenture on any Financed Eligible Loan to be sold to (i) the Seller in
      accordance with the applicable Student Loan Purchase Agreement; (ii) to
      the Servicer in accordance with the Servicing Agreement; and (iii) to
      another eligible lender holding one or more serial loans with respect to
      such Financed Eligible Loan, in accordance with the Servicing Agreement,
      and each Registered Owner, by the acceptance of a Note, consents to any
      such release.

                                   ARTICLE VI

                              DEFAULTS AND REMEDIES

      SECTION 6.01 EVENTS OF DEFAULT DEFINED. For the purpose of this Indenture,
the following events are hereby defined as, and are declared to be, "Events of
Default":

            (a) (i) default in the due and punctual payment of any interest on
      any Class A Note (other than Carry-Over Amounts) when the same becomes due
      and payable, and such default shall continue for a period of five (5) days
      or (ii) if no Class A Notes are Outstanding, default in the due and
      punctual payment of any interest on any Class B Note (other than
      Carry-Over Amounts) when the same becomes due and payable, and such
      default shall continue for a period of five (5) days;

            (b) default in the due and punctual payment of the principal of any
      Note when the same becomes due and payable on the related Final Maturity
      Date;

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<PAGE>

            (c) default in the performance or observance of any other of the
      covenants, agreements or conditions on the part of the Issuer to be kept,
      observed and performed contained in this Indenture or in the Notes, and
      continuation of such default for a period of 90 days after written notice
      thereof by the Trustee to the Issuer; and

            (d) the occurrence of an Event of Bankruptcy.

      Any notice herein provided to be given to the Issuer with respect to any
default shall be deemed sufficiently given if sent by registered mail with
postage prepaid to the Person to be notified, addressed to such Person at the
post office address as shown in Section 9.01 of this Indenture or such other
address as may hereafter be given as the principal office of the Issuer in
writing to the Trustee by an Authorized Representative of the Issuer. The
Trustee may give any such notice in its discretion and shall give such notice if
requested to do so in writing by the Registered Owners of at least 51% of the
collective aggregate principal amount of the Highest Priority Obligations at the
time Outstanding.

      SECTION 6.02 REMEDY ON DEFAULT; POSSESSION OF TRUST ESTATE. Subject to
Sections 7.05, 7.07 and 6.09 hereof, upon the happening and continuance of any
Event of Default, the Trustee or by its attorneys or agents may enter into and
upon and take possession of such portion of the Trust Estate as shall be in the
custody of others, and all property comprising the Trust Estate, and each and
every part thereof, and exclude the Issuer and its agents, servants and
employees wholly therefrom, and have, hold, use, operate, manage, and control
the same and each and every part thereof, and in the name of the Issuer or
otherwise, as they shall deem best, conduct the business thereof and exercise
the privileges pertaining thereto and all the rights and powers of the Issuer
and use all of the then existing Trust Estate for that purpose, and collect and
receive all charges, income and Available Funds of the same and of every part
thereof, and after deducting therefrom all expenses incurred hereunder and all
other proper outlays herein authorized, and all payments which may be made as
just and reasonable compensation for its own services, and for the services of
its attorneys, agents, and assistants, the Trustee shall apply the rest and
residue of the money received by the Trustee as follows (provided, however, in
the case of an Event of Default described in Section 6.01(c), priorities FOURTH
and FIFTH below shall be reversed):

      FIRST, to the Trustee, the Eligible Lender Trustee and the Delaware
Trustee, any Trustee Fee and any Delaware Trustee Fee, respectively due and
owing;

      SECOND, to the Master Servicer, the Auction Agent, the Broker-Dealers, the
Administrator and the Back-up Administrator, pro rata, without preference or
priority of any kind, according to the amounts due and payable to each such
party, any Servicing Fees, Auction Agent Fees, Broker-Dealer Fees,
Administration Fees and Back-up Administration Fees, respectively, due to each
such party and remaining unpaid;

      THIRD, pro rata, to (i) each Counterparty, in proportion to its
entitlements under the Confirmation relating to its respective Derivative
Product Agreement and any Priority Termination Payments owing to such
Counterparty and (ii) to the Class A Noteholders of each class for amounts due
and unpaid on each such class of Class A Notes for interest, pro rata,

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without preference or priority of any kind, according to the amounts due and
payable on each such class of Class A Notes for such interest;

      FOURTH, to Class A Noteholders for amounts due and unpaid on the Class A
Notes for principal, ratably, without preference or priority of any kind,
according to the amounts due and payable on the Notes for principal;

      FIFTH, to Class B Noteholders of each class for amounts due and unpaid on
each such class of Class B Notes for interest, pro rata, without preference or
priority of any kind, according to the amounts due and payable on each such
class of Class B Notes for such interest;

      SIXTH, to Class B Noteholders of each class for amounts due and unpaid on
each such Class B Notes for principal, pro rata without preference or priority
of any kind, according to the amounts due and payable on each such class of
Class B Notes for principal;

      SEVENTH, to the Noteholders of Class A Auction-Rate Notes, all Auction
Rate Carry-Over Amounts for such classes then due and unpaid, pro rata, without
preference or priority of any kind, according to the amounts due and payable on
such Class A Notes for such Carry-Over Amounts;

      EIGHTH, to the Noteholders of Class B Auction-Rate Notes, all Auction Rate
Carry-Over Amounts for such classes then due and unpaid, pro rata, without
preference or priority of any kind, according to the amounts due and payable on
such Class B Notes for such Carry-Over Amounts;

      NINTH, to each Counterparty, in proportion to the respective entitlements
under the respective Derivative Product Agreement, for any due and unpaid Issuer
Derivative Payments (including all Termination Payments);

      TENTH, to the Servicer, for any unpaid Carryover Servicing Fees; and

      ELEVENTH, to the Issuer, for distribution in accordance with the terms of
the Administration Agreement and the Trust Agreement.

      The Trustee may fix a record date and payment date for any payment to
Registered Owners and the Counterparties pursuant to this Section 6.02. At least
15 days before such record date, the Trustee shall mail to each Counterparty and
each Registered Owner (provided, that so long as the Notes remain in book-entry
form, the only Registered Owner shall be the Clearing Agency or its nominee) and
the Issuer a notice that states the record date, the payment date and the amount
to be paid.

      SECTION 6.03 REMEDIES ON DEFAULT; ADVICE OF COUNSEL. Upon the happening of
any Event of Default, the Trustee may proceed to protect and enforce the rights
of the Trustee and the Registered Owners and the Counterparties in such manner
as counsel for the Trustee may advise, whether for the specific performance of
any covenant, condition, agreement or undertaking herein contained, or in aid of
the execution of any power herein granted, or for the enforcement

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of such other appropriate legal or equitable remedies as, in the opinion of such
counsel, may be more effectual to protect and enforce the rights aforesaid.

      SECTION 6.04 REMEDIES ON DEFAULT; SALE OF TRUST ESTATE. Upon the happening
of any Event of Default and if the principal of all of the Outstanding
Obligations shall have been declared due and payable, then and in every such
case, and irrespective of whether other remedies authorized shall have been
pursued in whole or in part, the Trustee may sell, with or without entry, to the
highest bidder the Trust Estate, and all right, title, interest, claim and
demand thereto and the right of redemption thereof, at any such place or places,
and at such time or times and upon such notice and terms as may be required by
law. Upon such sale the Trustee may make and deliver to the purchaser or
purchasers a good and sufficient assignment or conveyance for the same, which
sale shall be a perpetual bar both at law and in equity against the Issuer and
all Persons claiming such properties. No purchaser at any sale shall be bound to
see to the application of the purchase money or to inquire as to the
authorization, necessity, expediency or regularity of any such sale. The Trustee
is hereby irrevocably appointed the true and lawful attorney-in-fact of the
Issuer, in its name and stead, to make and execute all bills of sale,
instruments of assignment and transfer and such other documents of transfer as
may be necessary or advisable in connection with a sale of all or part of the
Trust Estate, but the Issuer, if so requested by the Trustee, shall ratify and
confirm any sale or sales by executing and delivering to the Trustee or to such
purchaser or purchasers all such instruments as may be necessary, or in the
judgment of the Trustee, proper for the purpose which may be designated in such
request. In addition, the Trustee may proceed to protect and enforce the rights
of the Trustee and the Registered Owners and the Counterparties in such manner
as counsel for the Trustee may advise, whether for the specific performance of
any covenant, condition, agreement or undertaking herein contained, or in aid of
the execution of any power herein granted, or for the enforcement of such other
appropriate legal or equitable remedies as may in the opinion of such counsel,
be more effectual to protect and enforce the rights aforesaid. The Trustee shall
take any such action or actions if requested to do so in writing by the
Registered Owners and the Counterparties of at least 51% of the collective
aggregate principal amount of the Highest Priority Obligations at the time
Outstanding. However, in the case of an Event of Default described in Section
6.01(c), the Trustee may take such action or actions only if requested to do so
in writing by the Registered Owners and the Counterparties of all Obligations at
the time Outstanding unless the net proceeds received by the Trustee from
selling the Trust Estate are sufficient to pay all amounts owed to all the
Registered Owners and the Counterparties.

      SECTION 6.05 APPOINTMENT OF RECEIVER. In case an Event of Default occurs,
and if all of the Outstanding Obligations shall have been declared due and
payable and in case any judicial proceedings are commenced to enforce any right
of the Trustee or of the Registered Owners or of the Counterparties under this
Indenture or otherwise, then as a matter of right, the Trustee shall be entitled
to the appointment of a receiver of the Trust Estate and of the earnings, income
or revenue, rents, issues and profits thereof with such powers as the court
making such appointments may confer.

      SECTION 6.06 RESTORATION OF POSITION. In case the Trustee shall have
proceeded to enforce any rights under this Indenture by sale or otherwise, and
such proceedings shall have been discontinued, or shall have been determined
adversely to the Trustee, then and in every

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such case to the extent not inconsistent with such adverse decree, the Issuer,
the Trustee, the Registered Owners and the Counterparties shall be restored to
their former respective positions and the rights hereunder in respect to the
Trust Estate, and all rights, remedies and powers of the Trustee and of the
Registered Owners and of the Counterparties shall continue as though no such
proceeding had been taken.

      SECTION 6.07 PURCHASE OF PROPERTIES BY TRUSTEE OR REGISTERED OWNERS OR
COUNTERPARTIES. In case of any such sale of the Trust Estate, any Registered
Owner or Registered Owners or committee of Registered Owners or Counterparty or
Counterparties or committee of Counterparties or the Trustee, may bid for and
purchase such property and upon compliance with the terms of sale may hold,
retain possession and dispose of such property as the absolute right of the
purchaser or purchasers without further accountability and shall be entitled,
for the purpose of making any settlement or payment for the property purchased,
to use and apply any Obligations hereby secured and any interest thereon due and
unpaid, by presenting such Obligations in order that there may be credited
thereon the sum apportionable and applicable thereto out of the net proceeds of
such sale, and thereupon such purchaser or purchasers shall be credited on
account of such purchase price payable to him or them with the sum apportionable
and applicable out of such net proceeds to the payment of or as a credit on the
Obligations so presented.

      SECTION 6.08 APPLICATION OF SALE PROCEEDS. The proceeds of any sale of the
Trust Estate, together with any funds at the time held by the Trustee and not
otherwise appropriated, shall be applied by the Trustee as set forth in Section
6.02 hereof, and then to the Issuer or whomsoever shall be lawfully entitled
thereto.

      SECTION 6.09 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an
Event of Default should occur and be continuing, then and in every such case the
Trustee or the Registered Owners of Obligations representing not less than 51%
of the Outstanding Amount of the Highest Priority Obligations may declare all
the Outstanding Obligations to be immediately due and payable, by a notice in
writing to the Issuer (and to the Trustee if given by Registered Owners), and
upon any such declaration the unpaid principal amount of such Outstanding
Obligations, together with accrued and unpaid interest thereon through the date
of acceleration, shall become immediately due and payable, subject, however, to
Section 6.04 of this Indenture.

      At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Article VI provided, the
Registered Owners of Obligations representing a majority of the collective
aggregate principal amount of the Highest Priority Obligations then Outstanding,
by written notice to the Issuer and the Trustee, may rescind and annul such
declaration and its consequences if:

            (a) the Issuer has paid or deposited with the Trustee a sum
      sufficient to pay:

                  (i) all payments of principal of and interest on all
            Obligations and all other amounts that would then be due hereunder
            or upon such Obligations if the Event of Default giving rise to such
            acceleration had not occurred; and

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<PAGE>

                  (ii) all sums paid or advanced by the Trustee hereunder and
            the reasonable compensation, expenses, disbursements and advances of
            the Trustee, the Master Servicer, the Delaware Trustee, the Auction
            Agent and the Broker-Dealers and their agents and counsel; and

            (b) all Events of Default, other than the nonpayment of the
      principal of the Obligations that has become due solely by such
      acceleration, have been cured or waived as provided in Section 6.15
      hereof.

      No such rescission shall affect any subsequent default or impair any right
consequent thereto.

      SECTION 6.10 REMEDIES NOT EXCLUSIVE. The remedies herein conferred upon or
reserved to the Trustee or the Registered Owners (excluding the Sponsor) of
Obligations or the Counterparties are not intended to be exclusive of any other
remedy, but each remedy herein provided shall be cumulative and shall be in
addition to every other remedy given hereunder or now or hereafter existing, and
every power and remedy hereby given to the Trustee or to the Registered Owners
of Obligations or the Counterparties, or any supplement hereto, may be exercised
from time to time as often as may be deemed expedient. No delay or omission of
the Trustee or of any Registered Owner of Obligations or the Counterparties to
exercise any power or right arising from any default hereunder shall impair any
such right or power or shall be construed to be a waiver of any such default or
to be acquiescence therein.

      SECTION 6.11 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE. The Issuer covenants that if:

            (a) (i) default is made in the payment of any installment of
      interest, if any, on any Class A Notes (other than Carry-Over Amounts)
      when such interest becomes due and payable and such default continues for
      a period of five (5) days or (ii) if no Class A Notes are Outstanding,
      default is made in the payment of any installment of interest, if any, on
      any Class B Notes (other than Carry-Over Amounts) when such interest
      becomes due and payable and such default continues for a period of five
      (5) days; or

            (b) default is made in the payment of the principal of (or premium,
      if any, on) any Notes at its Final Maturity Date,

then the Issuer will, upon demand of the Trustee, pay to the Trustee, for the
benefit of the Registered Owners, the whole amount then due and payable on such
Notes for principal (and premium, if any) and for the benefit of the
Counterparties, the whole amount when due and payable under the Derivative
Product Agreements and interest, with interest upon any overdue principal (and
premium, if any) and, to the extent that payment of such interest shall be
legally enforceable, upon any overdue installments of interest, if any, at the
rate or rates borne by or provided for in such Notes (or as provided in the
Derivative Product Agreements, as applicable), and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, fees, expenses, disbursements
and advances of the Trustee and its agents and counsel.

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      If the Issuer fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as Trustee of an express trust, may upon receiving
indemnification satisfactory to the Trustee institute a judicial proceeding for
the collection of the sums so due and unpaid, may prosecute such proceeding to
judgment or final decree, and may enforce the same against the Issuer or any
other obligor upon such Notes of such series and collect the moneys adjudged or
decreed to be payable in the manner provided by law out of the property of the
Issuer or any other obligor upon such Notes, wherever situated.

      If an Event of Default with respect to Notes occurs and is continuing, the
Trustee may, after being indemnified to its satisfaction and in its discretion,
proceed to protect and enforce its rights and the rights of the Registered
Owners of Notes and any related coupons and of the Counterparties by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy.

      SECTION 6.12 DIRECTION OF TRUSTEE. Upon the happening of any Event of
Default, the Registered Owners of at least 51% of the collective aggregate
principal amount of the Highest Priority Obligations then Outstanding, shall
have the right by an instrument or instruments in writing delivered to the
Trustee to direct and control the Trustee as to the method of taking any and all
proceedings for any sale of any or all of the Trust Estate, or for the
appointment of a receiver, if permitted by law, and may at any time cause any
proceedings authorized by the terms hereof to be so taken or to be discontinued
or delayed; provided, however, that such Registered Owners shall not be entitled
to cause the Trustee to take any proceedings which in the Trustee's opinion
would be unjustly prejudicial to non-assenting Registered Owners of Obligations
or the Counterparties, but the Trustee shall be entitled to assume that the
action requested by the Registered Owners and the Counterparties of at least 51%
of the collective aggregate principal amount of the Highest Priority Obligations
then Outstanding will not be prejudicial to any non-assenting Registered Owners
or the Counterparties unless the Registered Owners and the Counterparties of
more than 51% of the collective aggregate principal amount of the non-assenting
Registered Owners of such Obligations and the Counterparties, in writing, show
the Trustee how they will be prejudiced. Provided, however, that anything in
this Indenture to the contrary notwithstanding, the Registered Owners of a
majority of the collective aggregate principal amount of the Highest Priority
Obligations then Outstanding together with the Registered Owners of a majority
of the collective aggregate principal amount of all other Obligations then
Outstanding shall have the right, at any time, by an instrument or instruments
in writing executed and delivered to the Trustee, to direct the method and place
of conducting all proceedings to be taken in connection with the enforcement of
the terms and conditions of this Indenture, or for the appointment of a receiver
or any other proceedings hereunder, provided that such direction shall not be
otherwise than in accordance with the provisions of law and of this Indenture.
The provisions of this Section 6.12 shall be expressly subject to the provisions
of Sections 7.01(c), 7.05 and 7.07 hereof.

      SECTION 6.13 RIGHT TO ENFORCE IN TRUSTEE. No Registered Owner of any
Obligation shall have any right as such Registered Owner to institute any suit,
action or proceedings for the enforcement of the provisions of this Indenture or
for the execution of any trust hereunder or for

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the appointment of a receiver or for any other remedy hereunder, all rights of
action hereunder being vested exclusively in the Trustee, unless and until such
Registered Owner shall have previously given to the Trustee written notice of a
default hereunder, and of the continuance thereof, and also unless the
Registered Owners of the requisite principal amount of the Obligations then
Outstanding shall have made written request upon the Trustee and the Trustee
shall have been afforded reasonable opportunity to institute such action, suit
or proceeding in its own name, and unless the Trustee shall have been offered
indemnity and security satisfactory to it against the costs, expenses and
liabilities to be incurred therein or thereby, which offer of indemnity shall be
an express condition precedent hereunder to any obligation of the Trustee to
take any such action hereunder, and the Trustee for 30 days after receipt of
such notification, request and offer of indemnity, shall have failed to
institute any such action, suit or proceeding. It is understood and intended
that no one or more Registered Owners of the Obligations shall have the right in
any manner whatever by his or their action to affect, disturb or prejudice the
lien of this Indenture or to enforce any right hereunder except in the manner
herein provided and for the equal benefit of the Registered Owners of not less
than a majority of the collective aggregate principal amount of the Obligations
then Outstanding.

      SECTION 6.14 PHYSICAL POSSESSION OF OBLIGATIONS NOT REQUIRED. In any suit
or action by the Trustee arising under this Indenture or on all or any of the
Obligations issued hereunder, or any supplement hereto, the Trustee shall not be
required to produce such Obligations, but shall be entitled in all things to
maintain such suit or action without their production.

      SECTION 6.15 WAIVERS OF EVENTS OF DEFAULT. The Trustee may in its
discretion waive any Event of Default hereunder and its consequences and rescind
any declaration of acceleration of Obligations, and shall do so upon the written
request of the Registered Owners (excluding the Sponsor) of at least a majority
of the collective aggregate principal amount of the Highest Priority Obligations
then Outstanding; provided, however, that there shall not be waived (a) any
Event of Default in the payment of the principal of or premium on any
Outstanding Obligations at the date of maturity thereof, or any default in the
payment when due of the interest on any such Obligations, unless prior to such
waiver or rescission, all arrears of interest or all arrears of payments of
principal and all expenses of the Trustee, in connection with such default shall
have been paid or provided for; or (b) any default in the payment of amounts set
forth in Sections 7.05 and 7.07 hereof. In case of any such waiver or
rescission, or in case any proceedings taken by the Trustee on account of any
such default shall have been discontinued or abandoned or determined adversely
to the Trustee, then and in every such case the Issuer, the Trustee and the
Registered Owners of Obligations and the Counterparties shall be restored to
their former positions and rights hereunder respectively, but no such waiver or
rescission shall extend to or affect any subsequent or other default, or impair
any rights or remedies consequent thereon.

                                   ARTICLE VII

                                   THE TRUSTEE

      SECTION 7.01 ACCEPTANCE OF TRUST. The Trustee hereby accepts the trusts
imposed upon it by this Indenture, and agrees to perform said trusts, but only
upon and subject to the following terms and conditions:

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            (a) Except during the continuance of an Event of Default,

                  (i) the Trustee undertakes to perform such duties and only
            such duties as are specifically set forth in this Indenture, and no
            implied covenants or obligations shall be read into this Indenture
            against the Trustee; and

                  (ii) in the absence of bad faith on its part, the Trustee may
            conclusively rely, as to the truth of the statements and the
            correctness of the opinions expressed therein, upon certificates or
            opinions furnished to the Trustee and conforming to the requirements
            of this Indenture; but in the case of any such certificates or
            opinions which by any provisions hereof are specifically required to
            be furnished to the Trustee, the Trustee shall be under a duty to
            examine the same to determine whether or not they conform as to form
            with the requirements of this Indenture and whether or not they
            contain the statements required under this Indenture.

            (b) In case an Event of Default has occurred and is continuing, the
      Trustee, in exercising the rights and powers vested in it by this
      Indenture, shall use the same degree of care and skill in their exercise
      as a prudent person would exercise or use under the circumstances in the
      conduct of his or her own affairs.

            (c) Before taking any action hereunder requested by Registered
      Owners, the Trustee may require that it be furnished an indemnity bond or
      other indemnity and security satisfactory to it by the Registered Owners,
      as applicable, for the reimbursement of all expenses to which it may be
      put and to protect it against all liability.

      SECTION 7.02 RECITALS OF OTHERS. The recitals, statements and
representations set forth herein and in the Notes shall be taken as the
statements of the Issuer, and the Trustee assumes no responsibility for the
correctness of the same. The Trustee makes no representations as to the title of
the Issuer in the Trust Estate or as to the security afforded thereby and
hereby, or as to the validity or sufficiency of this Indenture or of the Notes
issued hereunder, and the Trustee shall incur no responsibility in respect of
such matters.

      SECTION 7.03 AS TO FILING OF INDENTURE. The Trustee shall be under no duty
(a) to file or record, or cause to be filed or recorded, this Indenture or any
instrument supplemental hereto, (b) or to procure any further order or
additional instruments of further assurance, (c) to see to the delivery to it of
any personal property intended to be mortgaged or pledged hereunder or
thereunder, (d) or to do any act which may be suitable to be done for the better
maintenance of the lien or security hereof (other than the filing of any
continuation (but not initial) statements), or (e) for giving notice of the
existence of such lien, or for extending or supplementing the same or to see
that any rights to the Trust Estate and Funds intended now or hereafter to be
transferred in trust hereunder are subject to the lien hereof. The Trustee shall
not be liable for failure of the Issuer to pay any tax or taxes in respect of
such property, or any part thereof, or the income therefrom or otherwise, nor
shall the Trustee be under any duty in respect of any tax which may be assessed
against it or the Registered Owners or the Counterparties in respect of such
property or pledged to the Trust Estate. The Issuer agrees to prepare or have
prepared, and to request that

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the Trustee execute (if such execution is necessary for any such filing) and
file in a timely manner, the continuation statements referred to herein.

      SECTION 7.04 TRUSTEE MAY ACT THROUGH AGENTS. The Trustee may execute any
of the trusts or powers hereof and perform any duty hereunder, either itself or
by or through its attorneys, agents or employees, and it shall not be answerable
or accountable for any default, neglect or misconduct of any such attorneys,
agents or employees, if reasonable care has been exercised in the appointment,
supervision and monitoring of the work performed. All reasonable costs incurred
by the Trustee and all reasonable compensation to all such persons as may
reasonably be employed in connection with the trusts hereof shall be paid by the
Issuer.

      SECTION 7.05 INDEMNIFICATION OF TRUSTEE. Other than with respect to its
duties to make payment on the Obligations when due, and its duty to pursue the
remedy of acceleration as provided in Sections 6.02 and 6.09 hereof, for each of
which no additional security or indemnity may be required, the Trustee shall be
under no obligation or duty to perform any act at the request of Registered
Owners or to institute or defend any suit in respect thereof unless properly
indemnified and provided with security to its satisfaction as provided in
Section 7.01(c) hereof. The Trustee shall not be required to take notice, or be
deemed to have knowledge, of any default or Event of Default of the Issuer
hereunder and may conclusively assume that there has been no such default or
Event of Default (other than an Event of Default described in Section 6.01(a) or
(b) hereof) unless and until it shall have been specifically notified in writing
at the address in Section 9.01 hereof of such default or Event of Default by (a)
the Registered Owners or the Counterparties of the required percentages in
principal amount of the Obligations then Outstanding hereinabove specified or
(b) an Authorized Representative of the Issuer. However, the Trustee may begin
suit, or appear in and defend suit, execute any of the trusts hereby created,
enforce any of its rights or powers hereunder, or do anything else in its
judgment proper to be done by it as Trustee, without assurance of reimbursement
or indemnity, and in such case the Trustee shall be reimbursed or indemnified by
the Registered Owners or the Counterparties requesting such action, if any, or
the Issuer in all other cases, for all fees, costs and expenses, liabilities,
outlays and counsel fees and other reasonable disbursements properly incurred in
connection therewith, unless such costs and expenses, liabilities, outlays and
attorneys' fees and other reasonable disbursements properly incurred in
connection therewith are adjudicated to have resulted from the negligence or
willful misconduct of the Trustee. In furtherance and not in limitation of this
Section 7.05, the Trustee shall not be liable for, and shall be held harmless by
the Issuer from, following any Issuer Orders, instructions or other directions
upon which the Trustee is authorized to rely pursuant to this Indenture or any
other agreement to which it is a party. If the Issuer or the Registered Owners
or the Counterparties, as appropriate, shall fail to make such reimbursement or
indemnification, the Trustee may reimburse itself from any money in its
possession under the provisions of this Indenture, subject only to the prior
lien of the Notes for the payment of the principal thereof, premium, if any, and
interest thereon from the Collection Fund. None of the provisions contained in
this Indenture or any other Agreement to which it is a party shall require the
Trustee to act or to expend or risk its own funds or otherwise incur individual
financial liability in the performance of any of its duties or in the exercise
of any of its rights or powers if the Registered Owners or the Counterparties
shall not have offered security and indemnity acceptable to it or if it shall
have reasonable grounds for believing that

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prompt repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.

      The Issuer agrees to indemnify the Trustee for, and to hold it harmless
against, any loss, liability or expenses incurred without negligence or bad
faith on its part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and
expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder arising
from the Trust Estate. The Issuer agrees to indemnify and hold harmless the
Trustee against any and all claims, demands, suits, actions or other proceedings
and all liabilities, costs and expenses whatsoever caused by any untrue
statement or misleading statement or alleged untrue statement or alleged
misleading statement of a material fact contained in any offering document
distributed in connection with the issuance of the Notes or caused by any
omission or alleged omission from such offering document of any material fact
required to be stated therein or necessary in order to make the statements made
therein in the light of the circumstances under which they were made, not
misleading.

      SECTION 7.06 TRUSTEE'S RIGHT TO RELIANCE. The Trustee shall be protected
in acting upon any notice, resolution, request, consent, order, certificate,
report, appraisal, opinion, report or document of the Issuer or the Servicer or
other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties. The Trustee may consult with experts
and with counsel (who may but need not be counsel for the Issuer, the Trustee,
or for a Registered Owner or for a Counterparty), and the opinion of such
counsel shall be full and complete authorization and protection in respect of
any action taken or suffered, and in respect of any determination made by it
hereunder in good faith and in accordance with the opinion of such counsel.

      Whenever in the administration hereof the Trustee shall reasonably deem it
desirable that a matter be proved or established prior to taking, suffering or
omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, rely upon
a certificate signed by an Authorized Representative of the Issuer or an
authorized officer of the Administrator or the Servicer.

      The Trustee shall not be liable for any action taken, suffered or omitted
by it in good faith and believed by it to be authorized or within the discretion
or rights or powers conferred upon it hereby; provided, however, that the
Trustee shall be liable for its negligence or willful misconduct in taking such
action.

      The Trustee is authorized to enter into agreements with other Persons, in
its capacity as Trustee, in order to carry out or implement the terms and
provisions of this Indenture. The Trustee shall not be liable with respect to
any action taken, suffered or omitted to be taken in good faith in accordance
with this Indenture or any other transaction document or at the direction of the
Registered Owners or Counterparties evidencing the appropriate percentage of the
aggregate principal amount of the Outstanding Notes relating to the time, method
and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred upon the Trustee, under this
Indenture or any other transaction document.

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      SECTION 7.07 COMPENSATION OF TRUSTEE. Except as otherwise expressly
provided herein, all advances, counsel fees (including without limitation
allocated fees of in-house counsel) and other expenses reasonably made or
incurred by the Trustee in and about the execution and administration of the
trust hereby created and reasonable compensation to the Trustee for its services
in the premises shall be paid by the Issuer. The compensation of the Trustee
shall not be limited to or by any provision of law in regard to the compensation
of trustees of an express trust. The Trustee shall not change the amount of its
annual compensation without giving the Issuer at least 90 days' written notice
prior to the beginning of a Fiscal Year. If not paid by the Issuer, the Trustee
shall have a lien against all money held pursuant to this Indenture, subject
only to the prior lien of the Obligations against the money and investments in
the Collection Fund for the payment of the principal thereof, premium, if any,
and interest thereon, for such reasonable compensation, expenses, advances and
counsel fees incurred in and about the execution of the trusts hereby created
and the exercise and performance of the powers and duties of the Trustee
hereunder and the cost and expense incurred in defending against any liability
in the premises of any character whatsoever (unless such liability is
adjudicated to have resulted from the negligence or willful misconduct of the
Trustee).

      SECTION 7.08 TRUSTEE MAY OWN NOTES. The Trustee shall comply with TIA
Section 311(a), excluding any creditor relationship listed in TIA Section
311(b). A Trustee who has resigned or been removed shall be subject to TIA
Section 311(a) to the extent indicated therein. The Trustee hereunder, or any
successor Trustee, in its individual or other capacity, may become the owner or
pledgee of Notes and may otherwise deal with the Issuer, with the same rights it
would have if it were not the Trustee. The Trustee may act as depository for,
and permit any of its officers or directors to act as a member of, or act in any
other capacity in respect to, any committee formed to protect the rights of the
Registered Owners and Counterparties or to effect or aid in any reorganization
growing out of the enforcement of the Notes or of this Indenture, whether or not
any such committee shall represent the Registered Owners of more than 60% of the
collective aggregate principal amount of the Outstanding Obligations.

      SECTION 7.09 RESIGNATION OF TRUSTEE. The Trustee and any successor to the
Trustee may resign and be discharged from the trust created by this Indenture by
giving to the Issuer notice in writing which notice shall specify the date on
which such resignation is to take effect; provided, however, that such
resignation shall only take effect on the day specified in such notice if a
successor Trustee shall have been appointed pursuant to Section 7.11 hereof (and
is qualified to be the Trustee under the requirements of Section 7.11 hereof).
If no successor Trustee has been appointed by the date specified or within a
period of 90 days from the receipt of the notice by the Issuer, whichever period
is the longer, the Trustee may (a) appoint a temporary successor Trustee having
the qualifications provided in Section 7.11 hereof or (b) request a court of
competent jurisdiction to (i) require the Issuer to appoint a successor, as
provided in Section 7.11 hereof, within three days of the receipt of citation or
notice by the court, or (ii) appoint a Trustee having the qualifications
provided in Section 7.11 hereof. In no event may the resignation of the Trustee
be effective until a qualified successor Trustee shall have been selected and
appointed. In the event a temporary successor Trustee is appointed pursuant to
(a) above, the Issuer may remove such temporary successor Trustee and appoint a
successor thereto pursuant to Section 7.11 hereof.

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      SECTION 7.10 REMOVAL OF TRUSTEE. The Trustee or any successor Trustee may
be removed (a) at any time by the Registered Owners of a majority of the
collective aggregate principal amount of Notes which are the Highest Priority
Obligations then Outstanding, (b) by the Administrator for cause or upon the
sale or other disposition of the Trustee or its corporate trust functions or (c)
by the Administrator without cause so long as no Event of Default exists or has
existed within the last 30 days, upon payment to the Trustee so removed of all
money then due to it hereunder and appointment of a successor thereto by the
Issuer and acceptance thereof by said successor. One copy of any such order of
removal shall be filed with the Delaware Trustee and the other with the Trustee
so removed.

      In the event a Trustee (or successor Trustee) is removed, by any person or
for any reason permitted hereunder, such removal shall not become effective
until (a) in the case of removal by the Registered Owners, such Registered
Owners by instrument or concurrent instruments in writing (signed and
acknowledged by such Registered Owners or their attorneys-in-fact) filed with
the Trustee removed have appointed a successor Trustee or otherwise the Issuer
shall have appointed a successor, and (b) the successor Trustee has accepted
appointment as such.

      SECTION 7.11 SUCCESSOR TRUSTEE. In case at any time the Trustee or any
successor Trustee shall resign, be dissolved, or otherwise shall be disqualified
to act or be incapable of acting, or in case control of the Trustee or of any
successor Trustee or of its officers shall be taken over by any public officer
or officers, a successor Trustee may be appointed by the Administrator by an
instrument in writing duly authorized by the Administrator. In the case of any
such appointment by the Administrator of a successor to the Trustee, the
Administrator shall forthwith cause notice thereof to be mailed to the
Registered Owners of the Notes at the address of each Registered Owner appearing
on the note registration books maintained by the Registrar and to each
Counterparty at the addresses specified in the applicable Derivative Product
Agreement.

      Every successor Trustee appointed by the Registered Owners, by a court of
competent jurisdiction, or by the Administrator shall be a bank or trust company
in good standing, organized and doing business under the laws of the United
States or of a state therein, which has a reported capital and surplus of not
less than $50,000,000, be authorized under the law to exercise corporate trust
powers, be subject to supervision or examination by a federal or state
authority, and be an Eligible Lender so long as such designation is necessary to
maintain guarantees and federal benefits under the Act with respect to the
Financed Eligible Loans originated under the Act.

      SECTION 7.12 MANNER OF VESTING TITLE IN TRUSTEE. Any successor Trustee
appointed hereunder shall execute, acknowledge and deliver to its predecessor
Trustee, and also to the Issuer, an instrument accepting such appointment
hereunder, and thereupon such successor Trustee, without any further act, deed
or conveyance shall become fully vested with all the estate, properties, rights,
powers, trusts, duties and obligations of its predecessors in trust hereunder
(except that the predecessor Trustee shall continue to have the benefits to
indemnification hereunder together with the successor Trustee), with like effect
as if originally named as Trustee herein; but the Trustee ceasing to act shall
nevertheless, on the written request of an Authorized Representative of the
Issuer, or an authorized officer of the successor Trustee,

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execute, acknowledge and deliver such instruments of conveyance and further
assurance and do such other things as may reasonably be required for more fully
and certainly vesting and confirming in such successor Trustee all the right,
title and interest of the Trustee which it succeeds, in and to the Trust Estate
and such rights, powers, trusts, duties and obligations, and the Trustee ceasing
to act also, upon like request, pay over, assign and deliver to the successor
Trustee any money or other property or rights subject to the lien of this
Indenture, including any pledged securities which may then be in its possession.
Should any deed or instrument in writing from the Issuer be required by the
successor Trustee for more fully and certainly vesting in and confirming to such
new Trustee such estate, properties, rights, powers and duties, any and all such
deeds and instruments in writing shall on request be executed, acknowledged and
delivered by the Issuer.

      In case any of the Notes to be issued hereunder shall have been
authenticated but not delivered, any successor Trustee may adopt the certificate
of authentication of the Trustee or of any successor to the Trustee; and in case
any of the Notes shall not have been authenticated, any successor to the Trustee
may authenticate such Notes in its own name; and in all such cases such
certificate shall have the full force which it has anywhere in the Notes or in
this Indenture.

      SECTION 7.13 ADDITIONAL COVENANTS BY THE TRUSTEE TO CONFORM TO THE ACT.
The Trustee covenants that it will at all times be an Eligible Lender under the
Act so long as such designation is necessary, as determined by the Issuer, to
maintain the guarantees and federal benefits under the Act with respect to the
Financed Eligible Loans, that it will acquire Eligible Loans originated under
the Act in its capacity as an Eligible Lender and that it will not knowingly
dispose of or deliver any Financed Eligible Loans originated under the Act or
any security interest in any such Financed Eligible Loans to any party who is
not an Eligible Lender so long as the Act or Regulations adopted thereunder
require an Eligible Lender to be the owner or holder of such Financed Eligible
Loans; provided, however, that nothing above shall prevent the Trustee from
delivering the Eligible Loans to the Servicer or the Guaranty Agency.

      SECTION 7.14 RIGHT OF INSPECTION. Any Registered Owner or Counterparty
shall be permitted at reasonable times during regular business hours and in
accordance with reasonable regulations prescribed by the Trustee to examine at
the principal office of the Trustee a copy of any report or instrument
theretofore filed with the Trustee relating to the condition of the Trust
Estate.

      SECTION 7.15 LIMITATION WITH RESPECT TO EXAMINATION OF REPORTS. Except as
provided in this Indenture, the Trustee shall be under no duty to examine any
report or statement or other document required or permitted to be filed with it
by the Issuer.

      SECTION 7.16 SERVICING AGREEMENT. The Trustee acknowledges the receipt of
a copy of the Servicing Agreement described in Section 4.04 hereof.

      SECTION 7.17 ADDITIONAL COVENANTS OF TRUSTEE. The Trustee, by the
execution hereof, covenants, represents and agrees that:

            (a) it will not exercise any of the rights, duties or privileges
      under this Indenture in such manner as would cause the Eligible Loans held
      or acquired under the

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      terms hereof to be transferred, assigned or pledged as security to any
      person or entity other than as permitted by this Indenture;

            (b) it will comply with the Act and the Regulations and will, upon
      written notice from an Authorized Representative of the Issuer, the
      Secretary or the Guaranty Agency, use its reasonable efforts to cause this
      Indenture to be amended (in accordance with Section 8.01 hereof) if the
      Act or Regulations are hereafter amended so as to be contrary to the terms
      of this Indenture; and

            (c) it will not comply with any Issuer Order that does not comply
      with the terms and provisions of this Indenture or which directs the
      Trustee to take an action that is not permitted by the terms and
      provisions of this Indenture.

      SECTION 7.18 DUTY OF TRUSTEE WITH RESPECT TO RATING AGENCIES. It shall be
the duty of the Issuer to notify each Rating Agency then rating any of the Notes
(but the Trustee shall incur no liability for any failure to do so) of (a) any
change, expiration, extension or renewal of this Indenture, (b) prepayment or
defeasance of all the Notes, (c) any change in the Trustee or (d) any other
information reasonably required to be reported to each Rating Agency under any
Supplemental Indenture; provided, however, the provisions of this Section do not
apply when such documents have been previously supplied to such Rating Agency
and the Trustee has received written evidence to such effect, all as may be
required by this Indenture. All notices required to be forwarded to the Rating
Agencies under this Section shall be sent in writing at the following addresses:

                 Standard & Poor's Ratings Services,
                 A Division of the McGraw-Hall Companies, Inc.
                 55 Water Street
                 New York, New York 10041
                 Attention:  Asset-Backed Surveillance Group

                 Moody's Investors Service, Inc.
                 99 Church Street
                 New York, New York 10007
                 Attention:  ABS Monitoring Group

      The Trustee also acknowledges that each Rating Agency's periodic review
for maintenance of a Rating on any series of the Notes may involve discussions
and/or meetings with representatives of the Trustee at mutually agreeable times
and places.

      SECTION 7.19 MERGER OF THE TRUSTEE. Any corporation into which the Trustee
may be merged or with which it may be consolidated, or any corporation resulting
from any merger or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Indenture, without the execution or filing of any paper of any further act on
the part of any other parties hereto.

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      SECTION 7.20 RECEIPT OF FUNDS FROM SERVICER. The Trustee shall not be
accountable or responsible in any manner whatsoever for any action of the
Issuer, the Administrator, the depository bank of any funds of the Issuer, or
the Servicer while the Servicer is acting as bailee or agent of the Trustee with
respect to the Eligible Loans for actions taken in compliance with any
instruction or direction given to the Trustee, or for the application of funds
or moneys by the Servicer until such time as funds are received by the Trustee.

      SECTION 7.21 SPECIAL CIRCUMSTANCES LEADING TO RESIGNATION OF TRUSTEE.
Because the Trustee serves as trustee hereunder for Obligations of different
priorities, it is possible that circumstances may arise which will cause the
Trustee to resign from its position as trustee for one or more of the
Obligations. In the event that the Trustee makes a determination that it should
so resign, due to the occurrence of an Event of Default or potential default
hereunder, or otherwise, the Issuer may permit such resignation as to one or
more of the Obligations or request the Trustee's resignation as to all
Obligations, as the Issuer may elect. If the Issuer should determine that a
conflict of interest has arisen as to the trusteeship of any of the Obligations,
it may authorize and execute a Supplemental Indenture with one or more successor
Trustees, under which the administration of certain of the Obligations would be
separated from the administration of the other Obligations.

      SECTION 7.22 SURVIVAL OF TRUSTEE'S RIGHTS TO RECEIVE COMPENSATION,
REIMBURSEMENT AND INDEMNIFICATION. The Trustee's rights to receive compensation,
reimbursement and indemnification of money due and owing hereunder at the time
of the Trustee's resignation or removal shall survive the Trustee's resignation
or removal.

      SECTION 7.23 CORPORATE TRUSTEE REQUIRED; ELIGIBILITY; CONFLICTING
INTERESTS. There shall at all times be a Trustee hereunder which shall be
eligible to act as Trustee under TIA Section 310(a)(1), shall have a combined
capital and surplus of at least $50,000,000 and be an "eligible lender" under
the Act. If such corporation publishes reports of condition at least annually,
pursuant to law or the requirements of federal, state, territorial or District
of Columbia supervising or examining authority, then for the purposes of this
Section 7.23, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 7.23, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article VII. Neither the Issuer nor any Person directly or indirectly
controlling or controlled by, or under common control with, the Issuer shall
serve as Trustee.

      SECTION 7.24 TRUSTEE MAY FILE PROOFS OF CLAIM. In case of the pendency of
any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Issuer or any other obligor upon the Notes or the property of the Issuer or
of such other obligor or their creditors, the Trustee (irrespective of whether
the principal of the Notes of any series shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether the
Trustee shall have made any demand on the Issuer for the payment of overdue
principal, premium, if any, or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise:

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            (a) to file and prove a claim for the whole amount, or such lesser
      amount as may be provided for in the Notes, of principal (and premium, if
      any) and interest, if any, owing and unpaid in respect of the Notes and to
      file such other papers or documents as may be necessary or advisable in
      order to have the claims of the Trustee (including any claim for the
      reasonable fees, compensation, expenses, disbursements and advances of the
      Trustee and its agents and counsel) and of the Registered Owners allowed
      in such judicial proceeding; and

            (b) to collect and receive any money or other property payable or
      deliverable on any such claims and to distribute the same; and any
      custodian, receiver, assignee, trustee, liquidator, sequestrator (or other
      similar official) in any such judicial proceeding is hereby authorized by
      each Registered Owner of Notes to make such payments to the Trustee, and
      if the Trustee shall consent to the making of such payments directly to
      the Registered Owners, to pay to the Trustee any amount due to it for the
      reasonable fees, compensation, expenses, disbursements and advances of the
      Trustee and any predecessor Trustee, their agents and counsel, and any
      other amounts due the Trustee or any predecessor Trustee.

      Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Registered Owner of
a Note any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Registered Owner thereof, or to
authorize the Trustee to vote in respect of the claim of any Registered Owner of
a Note in any such proceeding.

      In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party), the Trustee shall be held to represent all the
Registered Owners of the Notes, and it shall not be necessary to make any
Registered Owners of the Notes parties to any such proceedings.

      SECTION 7.25 DETERMINATION OF LIBOR. On each LIBOR Determination Date, the
Trustee shall determine each applicable rate of LIBOR as set forth in the
definition of One-Month LIBOR and shall advise the Administrator and the Back-up
Administrator of each such determination.

                                  ARTICLE VIII

                             SUPPLEMENTAL INDENTURES

      SECTION 8.01 SUPPLEMENTAL INDENTURES NOT REQUIRING CONSENT OF REGISTERED
OWNERS OR COUNTERPARTIES. The Issuer and the Trustee may, without the consent of
or notice to any of the Registered Owners of any Obligations or any Counterparty
enter into any indenture or indentures supplemental to this Indenture for any
one or more of the following purposes:

            (a) to cure any ambiguity or formal defect or omission in this
      Indenture;

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<PAGE>

            (b) to grant to or confer upon the Trustee for the benefit of the
      Registered Owners any additional benefits, rights, remedies, powers or
      authorities that may lawfully be granted to or conferred upon the
      Registered Owners or the Trustee;

            (c) to subject to this Indenture additional revenues, properties or
      collateral;

            (d) to modify, amend or supplement this Indenture or any indenture
      supplemental hereto in such manner as to permit the qualification hereof
      and thereof under the Trust Indenture Act of 1939 or any similar federal
      statute hereafter in effect or to permit the qualification of the Notes
      for sale under the securities laws of the United States of America or of
      any of the states of the United States of America, and, if they so
      determine, to add to this Indenture or any indenture supplemental hereto
      such other terms, conditions and provisions as may be permitted by said
      Trust Indenture Act of 1939 or similar federal statute;

            (e) to evidence the appointment of a separate or co-Trustee or a
      co-registrar or transfer agent or the succession of a new Trustee
      hereunder, or any additional or substitute Guaranty Agency or Servicer;

            (f) to add such provisions to or to amend such provisions of this
      Indenture as may be necessary or desirable to assure implementation of the
      Program in conformance with the Act if along with such Supplemental
      Indenture there is filed an opinion of counsel to the effect that the
      addition or amendment of such provisions will in no way impair the
      existing security of the Registered Owners of any Outstanding Obligations;

            (g) to make any change as shall be necessary in order to obtain and
      maintain for any of the Notes an investment grade Rating from a nationally
      recognized rating service, which changes, in the opinion of the Trustee
      are not to the prejudice of the Registered Owner of any of the
      Obligations;

            (h) to make any changes necessary to comply with the Act, the
      Regulations or the Code and the regulations promulgated thereunder;

            (i) to make the terms and provisions of this Indenture, including
      the lien and security interest granted herein, applicable to the
      Derivative Product Agreements, and to modify Section 3.03 hereof with
      respect to any particular Derivative Product Agreement;

            (j) to create any additional Funds or Accounts or Subaccounts under
      this Indenture deemed by the Trustee to be necessary or desirable; or

            (k) to make any other change which, in the judgment of the Trustee
      is not to the material prejudice of the Registered Owners of any
      Obligations or any Counterparty;

provided, however, that nothing in this Section shall permit, or be construed as
permitting, any modification of the trusts, powers, rights, duties, remedies,
immunities and privileges of the Trustee without the prior written approval of
the Trustee, which approval shall be evidenced by execution of a Supplemental
Indenture.

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      SECTION 8.02 SUPPLEMENTAL INDENTURES REQUIRING CONSENT OF REGISTERED
OWNERS AND COUNTERPARTIES. (a) Registered Owners of Notes. Exclusive of
Supplemental Indentures covered by Section 8.01 hereof and subject to the terms
and provisions contained in this Section, and not otherwise, the Registered
Owners of not less than a majority of the collective aggregate principal amount
of the Notes then Outstanding shall have the right, from time to time, to
consent to and approve the execution by the Issuer and the Trustee of such other
indenture or indentures supplemental hereto as shall be deemed necessary and
desirable by the Trustee for the purpose of modifying, altering, amending,
adding to or rescinding, in any particular, any of the terms or provisions
contained in this Indenture or in any Supplemental Indenture; provided, however,
that nothing in this Section shall permit, or be construed as permitting (a)
without the consent of the Registered Owners of all then Outstanding Notes, (i)
an extension of the maturity date of the principal of or the interest on any
Note, or (ii) a reduction in the principal amount of any Obligation or the rate
of interest thereon, or (iii) a privilege or priority of any Note or Notes over
any other Note or Notes except as otherwise provided herein, or (iv) a reduction
in the aggregate principal amount of the Notes required for consent to such
Supplemental Indenture, or (v) the creation of any lien other than a lien
ratably securing all of the Notes at any time Outstanding hereunder except as
otherwise provided herein; or (b) any modification of the trusts, powers,
rights, obligations, duties, remedies, immunities and privileges of the Trustee
without the prior written approval of the Trustee.

      (b) Counterparties. Neither the Issuer nor the Trustee shall enter into
any other indenture or any supplement hereto or amendments or waivers hereto,
the effect of which would have a Material Adverse Effect on the interests of any
Counterparty, without such Counterparty's prior written consent. Except as
explicitly set forth in the preceding sentence, no Counterparty shall have any
consent or voting rights under this Indenture, or any rights to instruct the
Trustee to take, or refrain from taking, any action hereunder.

      (c) Notices to Registered Owners and Counterparties. If at any time the
Issuer shall request the Trustee to enter into any such Supplemental Indenture
for any of the purposes of this Section, the Trustee shall, upon being
satisfactorily indemnified with respect to expenses, cause notice of the
proposed execution of such Supplemental Indenture to be mailed by registered or
certified mail to each Registered Owner of a Note at the address shown on the
registration books or to each Counterparty listed in any Derivative Product
Agreement. Such notice (which shall be prepared by the Issuer) shall briefly set
forth the nature of the proposed Supplemental Indenture and shall state that
copies thereof are on file at the principal corporate trust office of the
Trustee for inspection by all Registered Owners and Counterparties. If, within
60 days, or such longer period as shall be prescribed by the Issuer, following
the mailing of such notice, the Registered Owners of not less than a majority of
the collective aggregate principal amount of the Notes Outstanding and the
Counterparties at the time of the execution of any such Supplemental Indenture
shall have consented in writing to and approved the execution thereof as herein
provided, no Registered Owner of any Obligation shall have any right to object
to any of the terms and provisions contained therein, or the operation thereof,
or in any manner to question the propriety of the execution thereof, or to
enjoin or restrain the Trustee or the Issuer from executing the same or from
taking any action pursuant to the provisions thereof. Upon the execution of any
such Supplemental Indenture as in this Section 8.02 permitted and provided, this
Indenture shall be and be deemed to be modified and amended in accordance
therewith.

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      SECTION 8.03 ADDITIONAL LIMITATION ON MODIFICATION OF INDENTURE. None of
the provisions of this Indenture (including Sections 8.01 and 8.02 hereof) shall
permit an amendment to the provisions of the Indenture which permits the
transfer of all or part of the Financed Eligible Loans originated under the Act
or granting of a security interest therein to any Person other than an Eligible
Lender or the Servicer, unless the Act or Regulations are hereafter modified so
as to permit the same. The Trustee may request an opinion of counsel to the
effect that an amendment or supplement to this Indenture was adopted in
conformance with this Indenture.

      SECTION 8.04 NOTICE OF DEFAULTS. Within 90 days after the occurrence of
any default hereunder with respect to the Notes, the Trustee shall transmit in
the manner and to the extent provided in TIA Section 313(c), notice of such
default hereunder known to the Trustee, unless such default shall have been
cured or waived; provided, however, that, except in the case of a default in the
payment of the principal of (or premium, if any) or interest with respect to any
Note, or in the payment of any sinking fund installment with respect to the
Notes, the Trustee shall be protected in withholding such notice if and so long
as an authorized officer of the Trustee in good faith determine that the
withholding of such notice is in the interest of the Registered Owners of the
Notes. For the purpose of this Section 8.04, the term "default" means any event
which is, or after notice or lapse of time or both would become, an Event of
Default with respect to the Notes.

      SECTION 8.05 CONFORMITY WITH THE TRUST INDENTURE ACT. Every supplemental
indenture executed pursuant to this Article VIII shall conform to the
requirements of the Trust Indenture Act as then in effect.

                                   ARTICLE IX

                               GENERAL PROVISIONS

      SECTION 9.01 NOTICES. Any notice, request or other instrument required by
this Indenture to be signed or executed by the Registered Owners or
Counterparties may be executed by the execution of any number of concurrent
instruments of similar tenor, and may be signed or executed by such Registered
Owners or Counterparties in person or by agent appointed in writing. As a
condition for acting thereunder the Trustee may demand proof of the execution of
any such instrument and of the fact that any person claiming to be the owner of
any of said Obligations is such owner and may further require the actual deposit
of such Obligation or Obligations with the Trustee. The fact and date of the
execution of such instrument may be proved by the certificate of any officer in
any jurisdiction who by the laws thereof is authorized to take acknowledgments
of deeds within such jurisdiction, that the person signing such instrument
acknowledged before him the execution thereof, or may be proved by any affidavit
of a witness to such execution sworn to before such officer.

      The amount of Notes held by any person executing such instrument as a
Registered Owner of Notes and the fact, amount and numbers of the Notes held by
such person and the date of his holding the same may be proved by a certificate
executed by any responsible trust company, bank, banker or other depository in a
form approved by the Trustee, showing that at

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the date therein mentioned such person had on deposit with such depository the
Notes described in such certificate; provided, however, that at all times the
Trustee may require the actual deposit of such Note or Notes with the Trustee.

      All notices, requests and other communications to any party hereunder
shall be in writing (including bank wire, telex, telecopy or facsimile or
similar writing) at the following addresses, and each address shall constitute
each party's respective "Principal Office" for purposes of the Indenture:

            If intended for the Issuer:

            Collegiate Funding Services Education Loan Trust 2004-A
            c/o Wilmington Trust Company, Delaware Trustee
            Rodney Square North
            1100 North Market Street
            Wilmington, Delaware
            Attention: Corporate Trust Administration
            Telephone:  (302) 636-6019
            Facsimile:  (302) 636-4140

            With a copy to the Administrator:

            Collegiate Funding Portfolio Administration, L.L.C.
            100 Riverside Parkway
            Suite 125
            Fredericksburg, Virginia  22406
            Attention:  Kevin Landgraver
            Telephone:  (540) 374-1600
            Facsimile:  (540) 374-2021

            If intended for the Trustee:

            U.S. Bank National Association
            425 Walnut Street, CN-WN-06CT Cincinnati, Ohio 45202
            Attention: Corporate Trust Department
            Telephone: (513) 632-2518
            Facsimile: (513) 632-3286

      Any party may change the address to which subsequent notices to such party
are to be sent, or of its Principal Office, by notice to the others, delivered
by hand or received by telex or facsimile or registered first-class mail,
postage prepaid. Each such notice, request or other communication shall be
effective when delivered by hand or received by facsimile or registered
first-class mail, postage prepaid.

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      SECTION 9.02 COVENANTS BIND ISSUER. The covenants, agreements, conditions,
promises, and undertakings in this Indenture shall extend to and be binding upon
the successors and assigns of the Issuer, and all of the covenants hereof shall
bind such successors and assigns, and each of them, jointly and severally. All
the covenants, conditions and provisions hereof shall be held to be for the sole
and exclusive benefit of the parties hereto and their successors and assigns and
of the Registered Owners from time to time of the Obligations and of the
Counterparties.

      No extension of time of payment of any of the Obligations shall operate to
release or discharge the Issuer, it being agreed that the liability of the
Issuer, to the extent permitted by law, shall continue until all of the
Obligations are paid in full, notwithstanding any transfer of Financed Eligible
Loans or extension of time for payment.

      SECTION 9.03 LIEN CREATED. This Indenture shall operate effectually as (a)
a grant of lien on and security interest in, and (b) an assignment of, the Trust
Estate.

      SECTION 9.04 SEVERABILITY OF LIEN. If the lien of this Indenture shall be
or shall ever become ineffectual, invalid or unenforceable against any part of
the Trust Estate, which is not subject to the lien, because of want of power or
title in the Issuer, the inclusion of any such part shall not in any way affect
or invalidate the pledge and lien hereof against such part of the Trust Estate
as to which the Issuer in fact had the right to pledge.

      SECTION 9.05 CONSENT OF REGISTERED OWNERS AND COUNTERPARTIES BINDS
SUCCESSORS. Any request or a consent of the Registered Owner or Counterparty of
any Obligations given for any of the purposes of this Indenture shall bind all
future Registered Owners or Counterparties of the same Obligation or any
Obligations issued in exchange therefor or in substitution thereof in respect of
anything done or suffered by the Issuer or the Trustee in pursuance of such
request or consent.

      SECTION 9.06 NONLIABILITY OF PERSONS; NO GENERAL OBLIGATION. It is hereby
expressly made a condition of this Indenture that any agreements, covenants or
representations herein contained or contained in the Notes do not and shall
never constitute or give rise to a personal or pecuniary liability or charge
against the organizers, officers, employees, agents or trustees or the
Administrator of the Issuer, or against the general credit of the Issuer, and in
the event of a breach of any such agreement, covenant or representation, no
personal or pecuniary liability or charge payable directly or indirectly from
the general revenues of the Issuer shall arise therefrom. Nothing contained in
this Section, however, shall relieve the Issuer from the observance and
performance of the several covenants and agreements on its part herein
contained.

      SECTION 9.07 NONPRESENTMENT OF NOTES OR INTEREST CHECKS. Should any of the
Notes or interest checks not be presented for payment when due, the Trustee
shall retain from any money transferred to it for the purpose of paying the
Notes or interest checks so due, for the benefit of the Registered Owners
thereof, a sum of money sufficient to pay such Notes or interest checks when the
same are presented by the Registered Owners thereof for payment. Such money
shall not be required to be invested. All liability of the Issuer to the
Registered Owners of such Notes or interest checks and all rights of such
Registered Owners against the Issuer under the

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Notes or interest checks or under this Indenture shall thereupon cease and
determine, and the sole right of such Registered Owners shall thereafter be
against such deposit. If any Note or interest check shall not be presented for
payment within the period of two years following its payment or prepayment date,
the Trustee shall return to the Issuer the money theretofore held by it for
payment of such Note or interest check, and such Note or interest check shall
(subject to the defense of any applicable statute of limitation) thereafter be
an unsecured obligation of the Issuer. The Trustee's responsibility for any such
money shall cease upon remittance thereof to the Issuer.

      SECTION 9.08 SECURITY AGREEMENT. This Indenture constitutes a Financing
Statement and a Security Agreement under the Uniform Commercial Code of the
States of New York and Delaware.

      SECTION 9.09 LAWS GOVERNING. It is the intent of the parties hereto that
this Indenture shall in all respects be governed by the laws of the State of New
York. This Indenture is subject to the provisions of the TIA that are required
to be part of this Indenture and shall, to the extent applicable, be governed by
such provisions.

      SECTION 9.10 SEVERABILITY. Of any covenant, agreement, waiver, or part
thereof in this Indenture contained be forbidden by any pertinent law or under
any pertinent law be effective to render this Indenture invalid or unenforceable
or to impair the lien hereof, then each such covenant, agreement, waiver, or
part thereof shall itself be and is hereby declared to be wholly ineffective,
and this Indenture shall be construed as if the same were not included herein.

      SECTION 9.11 EXHIBITS. The terms of the Annexes and Exhibits, if any,
attached to this Indenture are incorporated herein in all particulars.

      SECTION 9.12 NON-BUSINESS DAYS. Except as may otherwise be provided
herein, if the date for taking any action hereunder is not a Business Day, then
such action can be taken on the next succeeding Business Day, with the same
force and effect as if taken on such required date.

      SECTION 9.13 PARTIES INTERESTED HEREIN. Nothing in this Indenture
expressed or implied is intended or shall be construed to confer upon, or to
give to, any person or entity, other than the Trustee, the Delaware Trustee, the
paying agent, if any, and the Registered Owners and the Counterparties, any
right, remedy or claim under or by reason of this Indenture or any covenant,
condition or stipulation hereof, and all covenants, stipulations, promises and
agreements in this Indenture contained by and on behalf of the Issuer shall be
for the sole and exclusive benefit of the Trustee, the paying agent, if any, and
the Registered Owners and the Counterparties.

      SECTION 9.14 OBLIGATIONS ARE LIMITED OBLIGATIONS. The Notes and the
obligations of the Issuer contained in this Indenture are special, limited
obligations of the Issuer, secured by and payable solely from the Trust Estate
herein provided. The Issuer shall not be obligated to pay the Notes, the
interest thereon, or any other obligation created by or arising from this
Indenture from any other source.

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<PAGE>

      SECTION 9.15 COUNTERPARTY RIGHTS. Other than rights to receive payments
hereunder and as set forth in Section 8.02 hereof, no Counterparty which shall
be in default under any Derivative Product Agreement with the Issuer shall have
any of the rights granted to the Counterparty hereunder. A Counterparty which is
in default under any Derivative Product Agreement shall however, continue to
maintain all obligations undertaken by it under the terms of its Derivative
Product Agreement.

      SECTION 9.16 DISCLOSURE OF NAMES AND ADDRESSES OF REGISTERED OWNERS.
Registered Owners of Notes, by receiving and holding the same, agree with the
Issuer and the Trustee that neither the Issuer nor the Trustee nor any
Securities Depository shall be held accountable by reason of the disclosure of
any information as to the names and addresses of the Registered Owners of Notes
in accordance with TIA Section 312, regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under TIA Section
312(b).

      SECTION 9.17 AGGREGATE PRINCIPAL AMOUNT OF OBLIGATIONS. Whenever in this
Indenture reference is made to the aggregate principal amount of any
Obligations, such phrase shall mean, at any time, the principal amount of any
Notes and the Derivative Value of any Derivative Product Agreement.

      SECTION 9.18 FINANCED ELIGIBLE LOANS. The Issuer expects to acquire
Eligible Loans and to transfer Eligible Loans to the Trustee, in accordance with
this Indenture, which Eligible Loans, upon becoming subject to the lien of this
Indenture, constitute Financed Eligible Loans, as defined herein. If for any
reason a Financed Eligible Loan does not constitute an Eligible Loan, or ceases
to constitute an Eligible Loan, such loan shall continue to be subject to the
lien of this Indenture as a Financed Eligible Loan.

      SECTION 9.19 CONCERNING THE DELAWARE TRUSTEE. It is expressly understood
and agreed by the parties to this Indenture and the Registered Owners and the
Counterparties that (a) this Indenture is executed and delivered by the Delaware
Trustee not in its individual or personal capacity but solely in its capacity as
Delaware Trustee under the Trust Agreement on behalf of the Issuer, in the
exercise of the powers and authority conferred and vested in it as Delaware
Trustee under the Trust Agreement, subject to the protections, indemnities and
limitations from liability afforded to the Delaware Trustee thereunder; (b) the
representations, warranties, covenants, undertakings, agreements and obligations
by the Delaware Trustee are made and intended not as personal representations,
warranties, covenants, undertakings, agreements and obligations by Wilmington
Trust Company, but are made and intended for the purpose of only binding the
Trust Estate, as defined in the Trust Agreement, and the Issuer; (c) nothing
contained herein shall be construed as creating any liability on Wilmington
Trust Company, individually or personally, to perform any expressed or implied
covenant, duty or obligation of any kind whatsoever contained herein; and (d)
under no circumstances shall Wilmington Trust Company be personally liable for
the payment of any fees, costs, indebtedness or expenses of any kind whatsoever
or be personally liable for the breach or failure of any obligation,
representation, agreement, warranty or covenant whatsoever made or undertaken by
the Delaware Trustee or Issuer hereunder.

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                                    ARTICLE X

                        PAYMENT AND CANCELLATION OF NOTES
                          AND SATISFACTION OF INDENTURE

      SECTION 10.01 TRUST IRREVOCABLE. The trust created by the terms and
provisions of this Indenture is irrevocable until the indebtedness secured
hereby (the Notes and interest thereon) and all Issuer Derivative Payments are
fully paid or provision made for its payment as provided in this Article.

      SECTION 10.02 SATISFACTION OF INDENTURE.

            (a) If the Issuer shall pay, or cause to be paid, or there shall
      otherwise be paid (i) to the Registered Owners of the Notes, the principal
      of and interest on the Notes, at the times and in the manner stipulated in
      this Indenture; and (ii) to the Counterparties, all Issuer Derivative
      Payments then due, then the pledge of the Trust Estate, and all covenants,
      agreements and other obligations of the Issuer to the Registered Owners of
      Notes shall thereupon cease, terminate and become void and be discharged
      and satisfied. In such event, the Trustee shall execute and deliver to the
      Issuer all such instruments as may be desirable to evidence such discharge
      and satisfaction, and the Trustee shall pay over or deliver all money held
      by it under this Indenture to the party entitled to receive the same under
      this Indenture. If the Issuer shall pay or cause to be paid, or there
      shall otherwise be paid, to the Registered Owners of any Outstanding Notes
      the principal of and interest on such Notes and to each Counterparty all
      Counterparty Payments then due, at the times and in the manner stipulated
      in this Indenture and in the Derivative Product Agreements, such Notes and
      the Counterparty shall cease to be entitled to any lien, benefit or
      security under this Indenture, and all covenants, agreements and
      obligations of the Issuer to the Registered Owners thereof and each
      Counterparty shall thereupon cease, terminate and become void and be
      discharged and satisfied.

            (b) Notes or interest installments shall be deemed to have been paid
      within the meaning of Section 10.02(a) hereof if money for the payment
      thereof has been set aside and is being held in trust by the Trustee at
      the Final Maturity Date or earlier prepayment date thereof. Any
      Outstanding Note shall, prior to the Final Maturity Date or earlier
      prepayment thereof, be deemed to have been paid within the meaning and
      with the effect expressed in Section 10.02(a) hereof if (i) such Note is
      to be prepaid on any date prior to its Final Maturity Date and (ii) the
      Issuer shall have given notice of prepayment as provided herein on said
      date, there shall have been deposited with the Trustee either money (fully
      insured by the Federal Deposit Insurance Issuer or fully collateralized by
      Governmental Obligations) in an amount which shall be sufficient, or
      Governmental Obligations (including any Governmental Obligations issued or
      held in book-entry form on the books of the Department of Treasury of the
      United States of America) the principal of and the interest on which when
      due will provide money which, together with the money, if any, deposited
      with the Trustee at the same time, shall be sufficient, to pay when due
      the principal of and interest to become due on such Note on and prior to
      the prepayment date or Final Maturity Date thereof, as the case may be.
      Notwithstanding

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<PAGE>

      anything herein to the contrary, however, no such deposit shall have the
      effect specified in this subsection (b) if made during the existence of an
      Event of Default, unless made with respect to all of the Notes then
      Outstanding. Neither Governmental Obligations nor money deposited with the
      Trustee pursuant to this subsection (b) nor principal or interest payments
      on any such Governmental Obligations shall be withdrawn or used for any
      purpose other than, and shall be held irrevocably in trust in an escrow
      account for, the payment of the principal of and interest on such Notes.
      Any cash received from such principal of and interest on such Governmental
      Obligations deposited with the Trustee, if not needed for such purpose,
      shall, to the extent practicable, be reinvested in Governmental
      Obligations maturing at times and in amounts sufficient to pay when due
      the principal of and interest on such Notes on and prior to such
      prepayment date or Final Maturity Date thereof, as the case may be, and
      interest earned from such reinvestments shall be paid over to the Issuer,
      as received by the Trustee, free and clear of any trust, lien or pledge.
      Any payment for Governmental Obligations purchased for the purpose of
      reinvesting cash as aforesaid shall be made only against delivery of such
      Governmental Obligations. For the purposes of this Section, "Governmental
      Obligations" shall mean and include only non-callable direct obligations
      of the Department of the Treasury of the United States of America or
      portions thereof (including interest or principal portions thereof), and
      such Governmental Obligations shall be of such amounts, maturities and
      interest payment dates and bear such interest as will, without further
      investment or reinvestment of either the principal amount thereof or the
      interest earnings therefrom, be sufficient to make the payments required
      herein, and which obligations have been deposited in an escrow account
      which is irrevocably pledged as security for the Notes. Such term shall
      not include mutual funds and unit investment trusts.

            (c) Any Issuer Derivative Payments are deemed to have been paid and
      the related Derivative Product Agreement terminated when payment of all
      Issuer Derivative Payments due and payable to the Counterparty under its
      Derivative Product Agreement have been made or duly provided for to the
      satisfaction of the Counterparty and the Derivative Product Agreement has
      been terminated.

            (d) In no event shall the Trustee deliver over to the Issuer any
      Financed Eligible Loans originated under the Act unless the Issuer is an
      Eligible Lender, if the Act or Regulations then in effect require the
      owner or holder of such Financed Eligible Loans to be an Eligible Lender.

            (e) The provisions of this Section are applicable to the Notes and
      the Issuer Derivative Payments.

      SECTION 10.03 OPTIONAL PURCHASE OF ALL FINANCED ELIGIBLE LOANS. The
Administrator shall certify to and notify the Sponsor and the Trustee in
writing, within 15 days after the last Business Day of each Collection Period in
which the then outstanding Pool Balance is 10% or less of the Initial Pool
Balance, of the percentage that the then outstanding Pool Balance bears to the
Initial Pool Balance. The Sponsor shall have the option to purchase all of the
remaining Financed Eligible Loans on the date (the "Optional Purchase Date")
that is the tenth (10th) Business Day preceding the earlier of (i) the September
2021 Quarterly Distribution Date or (ii)

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<PAGE>

the Quarterly Distribution Date next succeeding the date on which the then
outstanding Pool Balance is 10% or less of the Initial Pool Balance. To exercise
such option, the Sponsor shall deposit in the Collection Fund on the Optional
Purchase Date, an amount equal to the aggregate Purchase Amount for the Financed
Eligible Loans and the related rights with respect thereto, plus the appraised
value of any such other property held by the Trust other than the Funds and
Accounts, such value to be determined by an appraiser mutually agreed upon by
the Sponsor and the Trustee; provided, however, that the Sponsor may not effect
such purchase if such aggregate Purchase Amounts do not equal or exceed the
Minimum Purchase Amount.

      SECTION 10.04 AUCTION OF FINANCED ELIGIBLE LOANS. If the Sponsor does not
exercise its option to purchase all of the remaining Financed Eligible Loans
pursuant to Section 10.03, the Trustee (or its designated agent) shall, promptly
after the Business Day next succeeding the Optional Purchase Date that is the
tenth (10th) Business Day preceding the March 2022 Quarterly Distribution Date,
offer for sale all of the remaining Financed Eligible Loans, and any such sale
shall be consummated on or before such Quarterly Distribution Date (the "Trust
Auction Date"). The Trustee shall provide written notice to the Sponsor of any
such offer for sale at least three Business Days in advance of the Trust Auction
Date. Collegiate Funding Services, L.L.C. and its affiliates and third parties
may offer to purchase the trust's Student Loans in such auction. If at least two
bids are received, the Trustee (or its designated agent) shall solicit and
resolicit new bids from all participating bidders until only one bid remains or
the remaining bidders decline to resubmit bids. The Trustee shall accept the
highest of such remaining bids if it is equal to or in excess of both (i) the
Minimum Purchase Amount and (ii) the fair market value of such Financed Eligible
Loans as of the end of the Collection Period immediately preceding the Trust
Auction Date. If at least two bids are not received or the highest bid after the
resolicitation process is completed is not equal to or in excess of the higher
of the amounts described in the preceding sentence, the Trustee shall not
consummate such sale. The Trustee may consult, and, at the direction of the
Sponsor, shall consult, with a financial advisor, including an underwriter of
the Notes or the Administrator, to determine if the fair market value of the
Financed Eligible Loans has been offered. The proceeds of any such sale will be
applied to the redemption of all Notes Outstanding in accordance with Section
5.03(i) hereof. Unless requested by the Administrator, if the sale is not
completed, the Trustee may, but will not be obligated to, solicit bids for sale
of the Financed Eligible Loans with respect to future Quarterly Distribution
Dates upon terms similar to those described above. The Trustee shall be
obligated to make such solicitations, however, if requested to do so by the
Administrator. Notice of the prepayment of any Obligations resulting from a
purchase of the Financed Eligible Loans on the Optional Purchase Date or the
auction of the Financed Eligible Loans on the Trust Auction Date, shall be given
by the Trustee to the Registered Owners and the Counterparties by first-class
mail within five Business Days of such Optional Purchase Date or Trust Auction
Date.

                [Remainder of This Page Intentionally Left Blank]

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                                                                  EXECUTION COPY

      IN WITNESS WHEREOF, the Issuer has caused this Indenture to be executed in
its organizational name and behalf by its Delaware Trustee, and the Trustee, to
evidence its acceptance of the trusts hereby created, has caused this Indenture
to be executed in its organizational name and behalf, all in multiple
counterparts, each of which shall be deemed an original, and the Issuer and the
Trustee have caused this Indenture to be dated as of the date herein above first
shown.

                                  COLLEGIATE FUNDING SERVICES
                                  EDUCATION LOAN TRUST 2004-A,
                                  a Delaware statutory trust

                                  By: WILMINGTON TRUST COMPANY, not in
                                      its individual capacity or personal
                                      capacity but solely in its capacity as
                                      Delaware Trustee

                                  By: /s/ Patricia A. Evans
                                      --------------------------------
                                      Name: Patricia A. Evans
                                      Title: Assistant Vice President

                                  U.S. BANK NATIONAL ASSOCIATION, as
                                  Trustee and as Eligible Lender Trustee under
                                  the Issuer Eligible Lender Trust Agreement

                                  By: /s/ Brian D. True
                                       ---------------------------------
                                       Name: Brian D. True
                                       Title: Trust Officer

Agreed and accepted:

COLLEGIATE FUNDING PORTFOLIO
ADMINISTRATION, L.L.C.

By: /s/ Kevin Landgraver
    -------------------------
     Name: Kevin Landgraver
     Title: Treasurer

<PAGE>

                                     ANNEX 1

                         CERTAIN TERMS AND PROVISIONS OF
                             THE AUCTION RATE NOTES

                                    ARTICLE I

                                   DEFINITIONS

            Except as provided below in this Section, all terms which are
defined in Article I of this Indenture shall have the same meanings,
respectively, in this Annex 1 as such terms are given in Article I of this
Indenture. In addition, the following terms shall have the following respective
meanings:

            "All Hold Rate" shall mean the Applicable LIBOR Rate less 0.20%;
provided, that in no event shall the applicable All Hold Rate be greater than
the applicable Maximum Rate.

            "Applicable LIBOR Rate" means, (a) for Auction Periods of 35 days or
less, One-Month LIBOR, (b) for Auction Periods of more than 35 days but less
than 91 days, Three-Month LIBOR, (c) for Auction Periods of more than 90 days
but less than 181 days, Six-Month LIBOR, and (d) for Auction Periods of more
than 180 days, One-Year LIBOR.

            "Auction" shall mean the implementation of the Auction Procedures on
an Auction Date.

            "Auction Agent" shall mean, the Initial Auction Agent under the
Initial Auction Agent Agreement unless and until a Substitute Auction Agent
Agreement becomes effective, after which "Auction Agent" shall mean the
Substitute Auction Agent.

            "Auction Agent Agreement" shall mean the Initial Auction Agent
Agreement unless and until a Substitute Auction Agent Agreement is entered into,
after which "Auction Agent Agreement" shall mean such Substitute Auction Agent
Agreement.

            "Auction Agent Fee" shall have the meaning set forth in the Auction
Agent Agreement. Such fee shall not in any year exceed the amount set forth in
the cashflows delivered to the Rating Agencies unless the Issuer obtains a
Rating Agency Confirmation.

            "Auction Date" shall mean, initially, with respect to the Class A-5
Notes, May 27, 2004, with respect to the Class A-6 Notes, May 27, 2004, and with
respect to the Class B Notes, May 27, 2004, and thereafter, with respect to each
such class of Auction Rate Notes, the Business Day immediately preceding the
first day of each Auction Period for such class, other than:

            (a) an Auction Period commencing after the ownership of such class
      is no longer maintained in book-entry form by the Clearing Agency;

                                      1-1
<PAGE>

            (b) an Auction Period commencing after the occurrence and during the
      continuance of a Payment Default; or

            (c) an Auction Period commencing less than the Applicable Number of
      Business Days after the cure or waiver of a Payment Default.

            (d) Notwithstanding the foregoing, the Auction Date for one or more
      Auction Periods may be changed pursuant to Section 2.02(h) of this Annex
      1.

            "Auction Note Interest Rate" shall mean each variable rate of
interest per annum borne by Auction Rate Notes for each Auction Period and
determined in accordance with the provisions of Sections 2.01 and 2.02 of this
Annex 1; provided, however, that in the event of a Payment Default, the Auction
Note Interest Rate shall equal the applicable Non-Payment Rate; provided,
further, however that such Auction Note Interest Rate shall in no event exceed
the Maximum Rate.

            "Auction Period" shall mean the Interest Accrual Period applicable
to the Auction Rate Notes during which time the Auction Rate is determined
pursuant to Section 2.02(a) of this Annex 1, which Auction Period (after the
Initial Auction Period for such Class) initially shall consist generally of 28
days for the Class A-5 Notes, the Class A-6 Notes and the Class B Notes as the
same may be adjusted pursuant to Section 2.02(g) of this Annex 1.

            "Auction Period Adjustment" shall mean an adjustment to the Auction
Period as provided in Section 2.02(g) of this Annex 1.

            "Auction Procedures" shall mean the procedures set forth in Section
2.02(a) of this Annex 1 by which the Auction Rate is determined.

            "Auction Rate" shall mean the rate of interest per annum that
results from implementation of the Auction Procedures and is determined as
described in Section 2.02(a)(iii)(B) of this Annex 1.

            "Auction Rate Distribution Date" shall mean, for each Auction Rate
Note, the Business Day immediately following the expiration of the Initial
Auction Period for such Auction Rate Note and each related Auction Period
thereafter; provided, however, if the duration of such Auction Period exceeds 90
days, then such Auction Rate Note shall have Interest Payment Dates on (x) each
Quarterly Distribution Date occurring during such Auction Period and (y) the
first Business Day immediately following the end of such Auction Period.

            "Auction Rate Noteholder" a holder of Auction Rate Notes, which, so
long as such Auction Rate Notes are maintained in Book-Entry Form, shall be the
Clearing Agency or its nominee.

            "Authorized Denominations" shall mean $50,000 and any integral
multiple thereof.

                                      1-2
<PAGE>

            "Available Auction Rate Notes" has the meaning set forth in Section
2.02(a)(iii)(A)(1) of this Annex 1.

            "Bid" has the meaning set forth in Section 2.02(a)(i)(A) of this
Annex 1.

            "Bid Auction Rate" has the meaning set forth in Section
2.02(a)(iii)(A) of this Annex 1.

            "Bidder" has the meaning set forth in Section 2.02(a)(i)(A) of this
Annex 1.

            "Bond Equivalent Yield" shall mean, in respect of any security the
rate for which is quoted in The Wall Street Journal on a bank discount basis,
the "bond equivalent yield" (expressed as a percentage) for such security which
appears on Telerate's United States Treasury and Money Market Composite Page
0223, rounded up to the nearest one one-hundredth of one percent.

            "Book-Entry Form" or "Book-Entry System" shall mean a form or system
under which (a) the beneficial right to principal and interest may be
transferred only through a book entry, (b) physical securities in registered
form are issued only to a Clearing Agency or its nominee as Auction Rate
Noteholder, with the securities "immobilized" to the custody of the Clearing
Agency, and (c) the book entry is the record that identifies the owners of
beneficial interests in that principal and interest.

            "Broker-Dealer" shall mean (i) initially, with respect to those
classes of Auction Rate Notes specified in the applicable Broker-Dealer
Agreement, each of J.P. Morgan Securities Inc., Citigroup Global Markets Inc.
and UBS Financial Services Inc., pursuant to the applicable Broker-Dealer
Agreement and (ii) any other broker or dealer (each as defined in the Exchange
Act), commercial bank or other entity permitted by law to perform the functions
required of a Broker-Dealer set forth in the Auction Procedures that (a) is a
Participant (or an affiliate of a Participant), (b) has been appointed as such
by the Issuer pursuant to Section 2.02(f) of Annex 1 hereto and (c) has entered
into a Broker-Dealer Agreement that is in effect on the date of reference.

            "Broker-Dealer Agreement" shall mean (i) with respect to (a) UBS
Financial Services Inc., the Broker-Dealer Agreement, dated as of April 1, 2004,
between The Bank of New York, as Auction Agent, and UBS Financial Services Inc.,
as broker-dealer, (b) J.P. Morgan Securities Inc., the Broker-Dealer Agreement,
dated as of April 1, 2004, between The Bank of New York, as Auction Agent, and
J.P. Morgan Securities Inc., as broker dealer and (c) Citigroup Global Markets
Inc., the Broker-Dealer Agreement, dated as of April 1, 2004, between The Bank
of New York, as Auction Agent, and Citigroup Global Markets Inc., as broker
dealer and (ii) each other agreement between the Auction Agent and a
Broker-Dealer, approved by the Issuer, pursuant to which the Broker-Dealer
agrees to participate in Auctions as set forth in the Auction Procedures, as
such agreement may from time to time be amended or supplemented, each of which
shall be in substantially the form of the Broker-Dealer Agreements specified in
clause (i) hereof.

                                      1-3
<PAGE>

            "Broker-Dealer Fees" shall have the meaning ascribed to such term in
the applicable Broker-Dealer Agreement. Such fee shall not in any year exceed
the amount set forth in the cashflows delivered to the Rating Agencies unless
the Issuer obtains a Rating Agency Confirmation.

            "Broker-Dealer Fee Rate" shall have the meaning ascribed to such
term in the applicable Broker-Dealer Agreement.

            "Carry-Over Amount" shall mean, for any Interest Accrual Period
during which interest is calculated at the Net Loan Rate, the excess, if any, of
(a) the amount of interest on an Auction Rate Note that would have accrued with
respect to the related Interest Accrual Period at the lesser of (i) the
applicable Auction Rate and (ii) the Maximum Rate determined as if the Net Loan
Rate were not a component thereof over (b) the amount of interest on such
Auction Rate Note actually accrued with respect to such Auction Rate Note with
respect to such Interest Accrual Period based on the Net Loan Rate, together
with the unreduced portion of any such excess from prior Interest Accrual
Periods; provided that any reference to "principal" or "interest" in this
Indenture and in this Annex 1 and the Auction Rate Notes shall not include
within the meanings of such words any Carry-over Amount or any interest accrued
on any Carry-over Amount.

            "Closing Date" shall mean April 28, 2004.

            "Commercial Paper Rate (90-day)" shall mean the rate determined at
the end of each calendar quarter using the daily average of that quarter's bond
equivalent 3-Month Financial Commercial Paper rates. The daily bond equivalent
rates are calculated from the 3-Month Financial Commercial Paper discount rates
published in the Federal Reserve's H.15 report. On weekends, holidays, and any
other day when no H.15 rates are available, the rate from the most recent
published date is used.

            "Effective Interest Rate" shall mean, with respect to any Financed
Eligible Loan, the interest rate per annum payable by the borrower as of the
last day of the calendar quarter borne by such Financed Eligible Loan after
giving effect to any reduction in such interest rate pursuant to borrower
incentives, (a) less all accrued rebate fees on such Financed Eligible Loan
constituting Consolidation Loans paid during such calendar quarter expressed as
a percentage per annum and (b) plus all accrued Interest Benefit Payments and
Special Allowance Payments applicable to such Financed Eligible Loan during such
calendar quarter expressed as a percentage per annum.

            "Eligible Carry-Over Make-Up Amount" shall mean, with respect to
each Interest Accrual Period relating to the Auction Rate Notes as to which, as
of the first day of such Interest Accrual Period, there is any unpaid Carry-over
Amount, an amount equal to the lesser of (a) interest computed on the principal
balance of the Auction Rate Notes in respect to such Interest Accrual Period at
a per annum rate equal to the excess, if any, of the Net Loan Rate over the
Auction Rate, together with the unreduced portion of any such excess from prior
Interest Accrual Periods and (b) the aggregate Carry-over Amount remaining
unpaid as of the first day of such Interest Accrual Period together with
interest accrued and unpaid thereon through the end of such Interest Accrual
Period.

                                      1-4
<PAGE>

            "Existing Owner" shall mean (a) with respect to and for the purpose
of dealing with the Auction Agent in connection with an Auction, a Person who is
a Broker-Dealer listed in the Existing Owner Registry at the close of business
on the Business Day immediately preceding the Auction Date for such Auction and
(b) with respect to and for the purpose of dealing with the Broker-Dealers in
connection with an Auction, a Person who is a beneficial owner of Auction Rate
Notes.

            "Existing Owner Registry" shall mean the registry of Persons who are
owners of the Auction Rate Notes, maintained by the Auction Agent as provided in
the Auction Agent Agreement.

            "Hold Order" has the meaning set forth in Section 2.02(a)(i)(A) of
this Annex 1.

            "Initial Auction Agent" shall mean the Bank of New York, a New York
banking corporation, its successors and assigns, in its capacity as auction
agent under the Initial Auction Agent Agreement.

            "Initial Auction Agent Agreement" shall mean the Auction Agent
Agreement, dated as of April 1, 2004, by and among the Issuer, the Trustee and
the Initial Auction Agent, including any amendment thereof or supplement
thereto.

            "Initial Auction Period" shall mean, as to Auction Rate Notes, the
period commencing on the Closing Date and continuing through the day immediately
preceding the Initial Auction Rate Adjustment Date for such Auction Rate Notes.

            "Initial Auction Rate" shall mean for each class of Auction Rate
Notes, the per annum rate set forth below:

<TABLE>
<CAPTION>
             Initial
  Class    Auction Rate
---------  ------------
<S>        <C>
Class A-5     1.10%
Class A-6     1.10%
Class B       1.23%
</TABLE>

            "Initial Rate Adjustment Date" shall mean for each class of Auction
Rate Notes, the date set forth below:

<TABLE>
<CAPTION>
               Initial Rate
  Class      Adjustment Date
  -----      ---------------
<S>          <C>
Class A-5     May 28, 2004
Class A-6     May 28, 2004
Class B       May 28, 2004
</TABLE>

            "Interest Accrual Period" shall mean, with respect to the Auction
Rate Notes, the Initial Auction Period and each period commencing on an Interest
Rate Adjustment Date

                                      1-5
<PAGE>

for such Class and ending on the day before (a) the next Interest Rate
Adjustment Date for such Class or (b) the Stated Maturity of such Class, as
applicable.

            "Interest Rate Adjustment Date" shall mean the date on which an
Auction Note Interest Rate is effective, and shall mean, with respect to the
Auction Rate Notes, the date of commencement of each Auction Period.

            "Interest Rate Determination Date" shall mean, with respect to the
Auction Rate Notes, the Auction Date, or if no Auction Date is applicable to
such Class, the Business Day immediately preceding the date of commencement of
an Auction Period.

            "Market Agent" shall mean, with respect to those classes of Auction
Rate Notes specified in the applicable Market Agent Agreement, each of J.P.
Morgan Securities Inc., Citigroup Global Markets Inc. and UBS Financial
Services, Inc. and pursuant to the applicable Market Agent Agreement, or any
successor in such capacity hereunder.

            "Market Agent Agreements" shall mean (i) the Market Agent Agreement,
dated as of April 1, 2004, between UBS Financial Services Inc., as market agent,
and the Trustee, (ii) the Market Agent Agreement, dated as of April 1, 2004,
between J.P. Morgan Securities Inc., as market agent, and the Trustee and (iii)
the Market Agent Agreement, dated as of April 1, 2004, between Citigroup Global
Markets Inc., as market agent, and the Trustee, as applicable, in each case,
including any supplement thereto or amendment thereof.

            "Maximum Rate" means the least of (a) either (i) the Applicable
LIBOR Rate plus 1.50% (if the ratings assigned by Moody's and S&P to the Auction
Rate Notes are "Aaa" and "AAA" respectively, or better) or (ii) the Applicable
LIBOR Rate plus 2.50% (if any one of the ratings assigned by Moody's and S&P to
the Auction Rate Notes is less than "Aaa" and "AAA" respectively) or (iii) the
Applicable LIBOR Rate plus 3.50% (if any one of the ratings assigned by Moody's
and S&P to the Auction Rate Notes is less than "A3" and "A-" respectively), (b)
16%, (c) the highest rate the Issuer may legally pay, from time to time, as
interest on the Auction Rate Notes or (d) the Net Loan Rate. For purposes of the
Auction Agent and the Auction Procedures, the ratings referred to in this
definition shall be the last ratings of which the Auction Agent has been given
written notice pursuant to the Auction Agent Agreement.

            "Net Loan Rate" shall mean, with respect to any Interest Accrual
Period applicable to the Auction Rate Notes, the lesser of (a) the rate of
interest per annum (rounded to the next highest one one-hundredth of one
percent) equal to the applicable Commercial Paper Rate (90-day) plus 0.70% or
(b) the rate of interest per annum (rounded to the next highest one-hundredth of
one percent) equal to (i) the weighted average Effective Interest Rate of the
Financed Eligible Loans for the calendar quarter immediately preceding such
Interest Accrual Period, as determined by the Issuer on the last day of such
calendar quarter, less (ii) the sum of (x) Realized Losses in respect of the
Financed Eligible Loans for the most recently completed Collection Period and
(y) the Program Expense Percentage, as determined by the Issuer on the last day
of each calendar year. In making the determinations in (b)(i) and (ii) of this
definition of "Net Loan Rate," the Issuer shall take into account as an increase
to such Net Loan Rate the receipt of any Reciprocal Payment and as a decrease to
any Issuer Derivative Payment. The

                                      1-6
<PAGE>

determinations made by the Issuer in (b)(i) and (ii) of this definition of "Net
Loan Rate" shall be given in writing to the Auction Agent, the Trustee and the
Broker-Dealers immediately upon their respective calculation dates.

            "Non-Payment Rate" shall mean One-Month LIBOR plus 1.50%.

            "Order" has the meaning set forth in Section 2.02(a)(i)(A) of this
Annex 1.

            "Participant" shall mean the member of, or participant in, the
Clearing Agency that will act on behalf of an Existing Owner or a Potential
Owner.

            "Payment Default" shall mean, with respect to the Auction Rate
Notes, (a) a default in the due and punctual payment of any installment of
interest on such Auction Rate Notes, or (b) a default in the due and punctual
payment of any interest on and principal of such Auction Rate Notes at their
maturity.

            "Potential Owner" shall mean any Person (including an Existing Owner
that is (a) a Broker-Dealer when dealing with the Auction Agent and (b) a
potential beneficial owner when dealing with a Broker-Dealer) who may be
interested in acquiring Auction Rate Notes (or, in the case of an Existing Owner
thereof, an additional principal amount of Auction Rate Notes).

            "Program Expense Percentage" shall mean, the percentage that all
Program Expenses represent of the principal amount of the Notes, and which the
Issuer shall calculate annually on the last day of each calendar year. Any
adjustment in the Program Expense Percentage shall be effective beginning on the
first Interest Rate Determination Date following each such calculation.

            "Program Expenses" shall mean the annual expenses of the Trust
comprised of the sum of the annual amount of the Servicing Fees, the
Administration Fees, Back-up Administration Fees, the Auction Agent Fees, the
Broker-Dealer Fees, the Trustee Fees and the Delaware Trustee Fees, payable by
the Issuer.

            "PSA" shall mean the Public Securities Association, its successors
and assigns.

            "Regular Record Date" shall mean the Record Date for the Auction
Rate Notes.

            "Sell Order" has the meaning set forth in Section 2.02(a)(i)(A) of
this Annex 1.

            "Submission Deadline" shall mean 1:00 p.m., eastern time, on any
Auction Date or such other time on any Auction Date by which the Broker-Dealers
are required to submit Orders to the Auction Agent as specified by the Auction
Agent from time to time.

            "Submitted Bid" has the meaning set forth in Section 2.02(a)(iii)(A)
of this Annex 1.

            "Submitted Hold Order" has the meaning set forth in Section
2.02(a)(iii)(A) of this Annex 1.

                                      1-7
<PAGE>

            "Submitted Order" has the meaning set forth in Section
2.02(a)(iii)(A) of this Annex 1.

            "Submitted Sell Order" has the meaning set forth in Section
2.02(a)(iii)(A) of this Annex 1.

            "Substitute Auction Agent" shall mean the Person with whom the
Issuer and the Trustee enter into a Substitute Auction Agent Agreement.

            "Substitute Auction Agent Agreement" shall mean an auction agent
agreement containing terms substantially similar to the terms of the Initial
Auction Agent Agreement, whereby a Person having the qualifications required by
Section 2.02(e) of this Annex 1 agrees with the Trustee and the Issuer to
perform the duties of the Auction Agent under this Annex 1.

            "Sufficient Bids" has the meaning set forth in Section
2.02(a)(iii)(A) of this Annex 1.

            "Variable Rate" shall mean the variable rate of interest per annum,
including the Initial Auction Rate, borne by each Class of Auction Rate Notes
during the Initial Auction Period for such Class, and each Interest Accrual
Period thereafter as such rate of interest is determined in accordance with the
provisions of Article II of this Annex 1.

                                   ARTICLE II

                               TERMS AND ISSUANCE

            Section 2.01 Auction Rate and Carry-Over Amounts. During the Initial
Auction Period, each Class of Auction Rate Notes shall bear interest at the
Initial Auction Rate for such Class. Thereafter, and except with respect to an
Auction Period Adjustment, the Auction Rate Notes shall bear interest at an
Auction Note Interest Rate based on a 28-day Auction Period for the Auction Rate
Notes, as determined pursuant to this Section 2.01 and Section 2.02 of this
Annex 1.

            For the Auction Rate Notes during the Initial Auction Period and
each Auction Period thereafter, interest at the applicable Auction Rate Notes
Interest Rate shall accrue daily and shall be computed for the actual number of
days elapsed on the basis of a year consisting of 360 days.

            The Auction Note Interest Rate to be borne by the Auction Rate Notes
after such Initial Auction Period for each Auction Period until an Auction
Period Adjustment, if any, shall be determined as described below. Each such
Auction Period after the Initial Auction Period shall commence on and include
the day following the expiration of the immediately preceding Auction Period and
terminate on and include the Thursday of the following fourth week (unless any
such day is not followed by a Business Day, in which case on the next succeeding
day that is followed by a Business Day); provided, however, that in the case of
the Auction Period that immediately follows the Initial Auction Period for the
Auction Rate Notes, such Auction Period

                                      1-8
<PAGE>

shall commence on the Initial Rate Adjustment Date. The Auction Note Interest
Rate of the Auction Rate Notes for each Auction Period shall be the Auction Rate
in effect for such Auction Period as determined in accordance with Section
2.02(a) of this Annex 1; By way of example, if an Auction Period ordinarily
would end on a Monday, but the following Tuesday is not a Business Day, the
Auction Period will end on that Tuesday and the new Auction Period will begin on
Wednesday.

            Notwithstanding the foregoing, unless otherwise specified in an
Issuer Order, if an Auction is scheduled to occur for the next Auction Period on
a date that was reasonably expected to be a Business Day, but such Auction does
not occur because such date is later not considered to be a Business Day, the
Auction shall nevertheless be deemed to have occurred, and the applicable
Auction Note Interest Rate in effect for the next Auction Period will be the
Auction Note Interest Rate in effect for the preceding Auction Period and such
Auction Period will generally be 28 days in duration, beginning on the calendar
day following the date of the deemed Auction and ending on (and including) the
applicable Thursday (unless such day is not followed by a Business Day, in which
case on the next succeeding day that is followed by a Business Day) of the
following fourth week in the case of the Auction Rate Notes. If the preceding
Auction Period was other than generally 28 days in duration, the Auction Note
Interest Rate for the deemed Auction will instead be the rate of interest
determined by the applicable Broker-Dealer on equivalently rated auction
securities with a comparable length of auction period.

            Notwithstanding the foregoing:

            (a) if the ownership of an Auction Rate Note is no longer maintained
      in Book-Entry Form, the Auction Note Interest Rate on the Auction Rate
      Notes for any Interest Accrual Period commencing after the delivery of
      certificates representing Auction Rate Notes pursuant to this Indenture
      shall equal the Maximum Rate; or

            (b) if a Payment Default shall have occurred, the Auction Note
      Interest Rate on the Auction Rate Notes for the Interest Accrual Period
      commencing on or immediately after such Payment Default, and for each
      Interest Accrual Period thereafter, to and including the Interest Accrual
      Period, if any, during which, or commencing less than two Business Days
      after, such Payment Default is cured, shall equal the applicable
      Non-Payment Rate on the first day of each such Interest Accrual Period.

            In accordance with Section 2.02(a)(iii)(B) and (C) of this Annex 1,
the Auction Agent shall promptly give written notice to the Trustee and the
Issuer of each Auction Note Interest Rate (unless the Auction Note Interest Rate
is the applicable Non-Payment Rate) and the Maximum Rate when such rate is not
the Auction Note Interest Rate, applicable to the Auction Rate Notes. The
Trustee shall notify the Auction Rate Noteholders and the Issuer of Auction Rate
Notes of the applicable Auction Note Interest Rate applicable to such Auction
Rate Notes for each Auction Period not later than the third Business Day of such
Auction Period. Notwithstanding any other provision of the Auction Rate Notes or
this Indenture and except for the occurrence of a Payment Default, interest
payable on the Auction Rate Notes for an Auction

                                      1-9
<PAGE>

Period shall never exceed for such Auction Period the amount of interest payable
at the applicable Maximum Rate in effect for such Auction Period.

            If the Auction Rate for the Auction Rate Notes is greater than the
Maximum Rate, then the Variable Rate applicable to such Auction Rate Notes for
that Interest Accrual Period will be the Maximum Rate and the Trustee shall
determine the carryover amount, if any, with respect to such Auction Rate Notes
for such Interest Accrual Period.

            Such Carry-over Amount shall bear interest calculated at a rate
equal to One-Month LIBOR (as determined by the Auction Agent, provided the
Trustee has received notice of One-Month LIBOR from the Auction Agent, and if
the Trustee shall not have received such notice from the Auction Agent, then as
determined by the Trustee) from the Auction Rate Distribution Date for the
Interest Accrual Period with respect to which such Carry-over Amount was
calculated, until paid. Any payment in respect of Carry-over Amount shall be
applied, first, to any accrued interest payable thereon and, second, in
reduction of such Carry-over Amount. For purposes of this Indenture and this
Annex 1, any reference to "principal" or "interest" herein shall not include
within the meaning of such words Carry-over Amount or any interest accrued on
any such Carry-over Amount. Such Carry-over Amount shall be separately
calculated for each Auction Rate Note by the Trustee during such Interest
Accrual Period in sufficient time for the Trustee to give notice to each Auction
Rate Noteholder of such Carry-over Amount as required in the next succeeding
sentence. Not less than four days before the Auction Rate Distribution Date for
an Interest Accrual Period with respect to which such Carry-over Amount has been
calculated by the Trustee, the Trustee shall give written notice to each Auction
Rate Noteholder the Auction Agent and the Issuer of the Carry-over Amount
applicable to each Auction Rate Noteholder's Auction Rate Note, which written
notice may accompany the payment of interest by check made to each such Auction
Rate Noteholder on such Auction Rate Distribution Date or otherwise shall be
mailed on such Auction Rate Distribution Date by first-class mail, postage
prepaid, to each such Auction Rate Noteholder at such Auction Rate Noteholder's
address as it appears on the registration records maintained by the Registrar.
Such notice shall state, in addition to such Carry-over Amount, that, unless and
until an Auction Rate Note has been redeemed (other than by optional
redemption), after which all accrued Carry-over Amounts (and all accrued
interest thereon) that remains unpaid shall be canceled and no Carry-over Amount
(and interest accrued thereon) shall be paid with respect to an Auction Rate
Note, (a) the Carry-over Amount (and interest accrued thereon calculated at a
rate equal to One-Month LIBOR) shall be paid by the Trustee on an Auction Rate
Note on the earliest of (i) the date of defeasance of the Auction Rate Notes or
(ii) the first occurring Auction Rate Distribution Date (or on the date of any
such optional redemption) if and to the extent that (A) the Eligible Carry-over
Make-Up Amount with respect to such subsequent Interest Accrual Period is
greater than zero, and (B) moneys are available pursuant to the terms of this
Indenture in an amount sufficient to pay all or a portion of such Carry-over
Amount (and interest accrued thereon), and (b) interest shall accrue on the
Carry-over Amount at a rate equal to One-Month LIBOR until such Carry-over
Amount is paid in full or is cancelled.

            The Carry-over Amount (and interest accrued thereon) for Auction
Rate Notes shall be paid by the Trustee on Outstanding Auction Rate Notes on the
earliest of (a) the date of defeasance of any of the Auction Rate Notes or (b)
the first occurring Auction Rate Distribution

                                      1-10
<PAGE>

Date if and to the extent that (i) the Eligible Carry-over Make-Up Amount with
respect to such Interest Accrual Period is greater than zero, and (ii) on such
Auction Rate Distribution Date there are sufficient moneys in the Revenue Fund
to pay all interest due on the Auction Rate Notes on such Auction Rate
Distribution Date, to redeem any Auction Rate Notes required to be redeemed on
such Auction Rate Distribution Date in accordance with this Indenture and to
fund amounts required to be added to the Reserve Fund on such Auction Rate
Distribution Date. Any Carry-over Amount (and any interest accrued thereon) on
any Auction Rate Note which is due and payable on an Auction Rate Distribution
Date, which Auction Rate Note is to be redeemed (other than by optional
redemption) on said Auction Rate Distribution Date, shall be paid to the Auction
Rate Noteholder thereof on said Auction Rate Distribution Date to the extent
that moneys are available therefor in accordance with the provisions of this
Annex 1; provided, however, that any Carry-over Amount (and any interest accrued
thereon) which is not yet due and payable on said Auction Rate Distribution Date
shall be cancelled with respect to said Auction Rate Note that is to be redeemed
(other than by optional redemption) on said Auction Rate Distribution Date and
shall not be paid on any succeeding Auction Rate Distribution Date. To the
extent that any portion of the Carry-over Amount (and any interest accrued
thereon) remains unpaid after payment of a portion thereof, such unpaid portion
shall be paid in whole or in part as required hereunder until fully paid by the
Trustee on the earliest of (a) the date of defeasance of any of the Auction Rate
Notes or (b) the next occurring Auction Rate Distribution Date or Dates, as
necessary, if and to the extent that the conditions in the second preceding
sentence are satisfied. On any Auction Rate Distribution Date on which the
Trustee pays only a portion of the Carry-over Amount (and any interest accrued
thereon) on Auction Rate Notes, the Trustee shall give written notice in the
manner set forth in the immediately preceding paragraph to the Auction Rate
Noteholder of such Auction Rate Note receiving such partial payment of the
Carry-over Amount remaining unpaid on such Auction Rate Note.

            The Auction Rate Distribution Date or other date on which such
Carry-over Amount (or any interest accrued thereon) for Auction Rate Notes shall
be paid shall be determined by the Trustee in accordance with the provisions of
the immediately preceding paragraph and this Indenture, and the Trustee shall
make payment of the Carry-over Amount (and any interest accrued thereon) in the
same manner as, and from the same Fund from which, it pays interest on the
Auction Rate Notes on an Auction Rate Distribution Date. Any payment of
Carry-over Amounts (and interest accrued thereon) shall reduce the amount of
Eligible Carry-over Make-up Amount.

            In the event that the Auction Agent no longer determines, or fails
to determine, when required, the Auction Note Interest Rate with respect to
Auction Rate Notes, or, if for any reason such manner of determination shall be
held to be invalid or unenforceable, the Auction Note Interest Rate for the next
succeeding Interest Accrual Period, which Interest Accrual Period shall be an
Auction Period, for Auction Rate Notes shall be the applicable Maximum Rate as
determined by the Auction Agent for such next succeeding Auction Period, and if
the Auction Agent shall fail or refuse to determine the Maximum Rate, the
Maximum Rate shall be determined by the securities dealer appointed by the
Issuer capable of making such a determination in accordance with the provisions
of this Annex 1 and written notice of such determination shall be given by such
securities dealer to the Trustee.

                                      1-11
<PAGE>

            Section 2.02 Auction Rate.

            (a) Determining the Auction Rate. By purchasing Auction Rate Notes,
whether in an Auction or otherwise, each purchaser of the Auction Rate Notes, or
its Broker-Dealer, must agree and shall be deemed by such purchase to have
agreed (x) to participate in Auctions on the terms described herein, (y) to have
its beneficial ownership of the Auction Rate Notes maintained at all times in
Book-Entry Form for the account of its Participant, which in turn will maintain
records of such beneficial ownership and (z) to authorize such Participant to
disclose to the Auction Agent such information with respect to such beneficial
ownership as the Auction Agent may request.

            So long as the ownership of Auction Rate Notes is maintained in
Book-Entry Form by the Clearing Agency, an Existing Owner may sell, transfer or
otherwise dispose of Auction Rate Notes only pursuant to a Bid or Sell Order
placed in an Auction or otherwise sell, transfer or dispose of Auction Rate
Notes through a Broker-Dealer, provided that, in the case of all transfers other
than pursuant to Auctions, such Existing Owner, its Broker-Dealer or its
Participant advises the Auction Agent of such transfer. Auctions shall be
conducted on each Auction Date, if there is an Auction Agent on such Auction
Date, in the following manner:

            (i) (A) Prior to the Submission Deadline on each Auction Date;

                        (1) each Existing Owner of Auction Rate Notes may submit
                  to a Broker-Dealer by telephone or otherwise any information
                  as to:

                              a. the principal amount of Outstanding Auction
                        Rate Notes, if any, owned by such Existing Owner which
                        such Existing Owner desires to continue to own without
                        regard to the Auction Note Interest Rate for the next
                        succeeding Auction Period;

                              b. the principal amount of Outstanding Auction
                        Rate Notes, if any, which such Existing Owner offers to
                        sell if the Auction Note Interest Rate for the next
                        succeeding Auction Period shall be less than the rate
                        per annum specified by such Existing Owner; and/or

                              c. the principal amount of Outstanding Auction
                        Rate Notes, if any, owned by such Existing Owner which
                        such Existing Owner offers to sell without regard to the
                        Auction Note Interest Rate for the next succeeding
                        Auction Period;

                        and

                        (2) one or more Broker-Dealers may contact Potential
                  Owners to determine the principal amount of Auction Rate Notes
                  which each Potential Owner offers to purchase, if the Auction
                  Note Interest Rate for the next succeeding Auction Period
                  shall not be less than the rate per annum specified by such
                  Potential Owner.

                                      1-12
<PAGE>

            The statement of an Existing Owner or a Potential Owner referred to
in (1) or (2) of this paragraph (A) is herein referred to as an "Order," and
each Existing Owner and each Potential Owner placing an Order is herein referred
to as a "Bidder"; an Order described in clause (1)a. is herein referred to as a
"Hold Order"; an Order described in clauses (1)b. and (2) is herein referred to
as a "Bid"; and an Order described in clause (1)c. is herein referred to as a
"Sell Order."

                  (B) (1) Subject to the provisions of Section 2.02(a)(ii) of
            this Annex 1, a Bid by an Existing Owner shall constitute an
            irrevocable offer to sell:

                              a. the principal amount of Outstanding Auction
                        Rate Notes specified in such Bid if the Auction Note
                        Interest Rate determined as provided in this Section
                        2.02(a) shall be less than the rate specified therein;
                        or

                              b. such principal amount, or a lesser principal
                        amount of Outstanding Auction Rate Notes to be
                        determined as set forth in Section 2.02(a)(iv)(A)(4) of
                        this Annex 1, if the Auction Note Interest Rate
                        determined as provided in this Section 2.02(a) shall be
                        equal to the rate specified therein; or

                              c. such principal amount, or a lesser principal
                        amount of Outstanding Auction Rate Notes to be
                        determined as set forth in Section 2.02(a)(iv)(B)(3) of
                        this Annex 1, if the rate specified therein shall be
                        higher than the applicable Maximum Rate and Sufficient
                        Bids have not been made.

                        (2) Subject to the provisions of Section 2.02(a)(ii) of
                  this Annex 1, a Sell Order by an Existing Owner shall
                  constitute an irrevocable offer to sell:

                              a. the principal amount of Outstanding Auction
                        Rate Notes specified in such Sell Order; or

                              b. such principal amount, or a lesser principal
                        amount of Outstanding Auction Rate Notes set forth in
                        Section 2.02(a)(iv)(B)(3) of this Annex 1, if Sufficient
                        Bids have not been made.

                        (3) Subject to the provisions of Section 2.02(a)(ii) of
                  this Annex 1, a Bid by a Potential Owner shall constitute an
                  irrevocable offer to purchase:

                              a. the principal amount of Outstanding Auction
                        Rate Notes specified in such Bid if the Auction Note
                        Interest Rate determined as provided in this Section
                        2.02(a) shall be higher than the rate specified in such
                        Bid; or

                                      1-13
<PAGE>

                              b. such principal amount, or a lesser principal
                        amount of Outstanding Auction Rate Notes set forth in
                        Section 2.02(a)(iv)(A)(5) of this Annex 1, if the
                        Auction Note Interest Rate determined as provided in
                        this Section 2.02(a) shall be equal to the rate
                        specified in such Bid.

                  (ii) (A) Each Broker-Dealer shall submit in writing to the
            Auction Agent prior to the Submission Deadline on each Auction Date
            all Orders obtained by such Broker-Dealer and shall specify with
            respect to each such Order:

                        (1) the name of the Bidder placing such Order;

                        (2) the aggregate principal amount of Auction Rate Notes
                  that are the subject of such Order;

                        (3) to the extent that such Bidder is an Existing Owner:

                              a. the principal amount of Auction Rate Notes, if
                        any, subject to any Hold Order placed by such Existing
                        Owner;

                              b. the principal amount of Auction Rate Notes, if
                        any, subject to any Bid placed by such Existing Owner
                        and the rate specified in such Bid; and

                              c. the principal amount of Auction Rate Notes, if
                        any, subject to any Sell Order placed by such Existing
                        Owner;

                        and

                        (4) to the extent such Bidder is a Potential Owner, the
                  rate specified in such Potential Owner's Bid.

                  (B) If any rate specified in any Bid contains more than three
            figures to the right of the decimal point, the Auction Agent shall
            round such rate up to the next higher one thousandth of 1%.

                  (C) If an Order or Orders covering all Outstanding Auction
            Rate Notes owned by an Existing Owner is not submitted to the
            Auction Agent prior to the Submission Deadline, the Auction Agent
            shall deem a Hold Order to have been submitted on behalf of such
            Existing Owner covering the principal amount of Outstanding Auction
            Rate Notes owned by such Existing Owner and not subject to an Order
            submitted to the Auction Agent.

                  (D) None of the Issuer, the Trustee or the Auction Agent shall
            be responsible for any failure of a Broker-Dealer to submit an Order
            to the Auction Agent on behalf of any Existing Owner or Potential
            Owner.

                                      1-14
<PAGE>

                  (E) If any Existing Owner submits through a Broker-Dealer to
            the Auction Agent one or more Orders covering in the aggregate more
            than the principal amount of Outstanding Auction Rate Notes owned by
            such Existing Owner, such Orders shall be considered valid as
            follows and in the following order of priority:

                        (1) All Hold Orders shall be considered valid, but only
                  up to the aggregate principal amount of Outstanding Auction
                  Rate Notes owned by such Existing Owner, and if the aggregate
                  principal amount of Auction Rate Notes subject to such Hold
                  Orders exceeds the aggregate principal amount of Auction Rate
                  Notes owned by such Existing Owner, the aggregate principal
                  amount of Auction Rate Notes subject to each such Hold Order
                  shall be reduced pro rata so that the aggregate principal
                  amount of Auction Rate Notes subject to such Hold Order equals
                  the aggregate principal amount of Outstanding Auction Rate
                  Notes owned by such Existing Owner.

                        (2) a. Any Bid shall be considered valid up to an amount
                  equal to the excess of the principal amount of Outstanding
                  Auction Rate Notes owned by such Existing Owner over the
                  aggregate principal amount of Auction Rate Notes subject to
                  any Hold Order referred to in clause (A) of this paragraph
                  (ii);

                              b. subject to subclause (1) of this clause (E), if
                        more than one Bid with the same rate is submitted on
                        behalf of such Existing Owner and the aggregate
                        principal amount of Outstanding Auction Rate Notes
                        subject to such Bids is greater than such excess, such
                        Bids shall be considered valid up to an amount equal to
                        such excess;

                              c. subject to subclauses (1) and (2) of this
                        clause (E), if more than one Bid with different rates
                        are submitted on behalf of such Existing Owner, such
                        Bids shall be considered valid first in the ascending
                        order of their respective rates until the highest rate
                        is reached at which such excess exists and then at such
                        rate up to the amount of such excess; and

                              d. in any such event, the amount of Outstanding
                        Auction Rate Notes, if any, subject to Bids not valid
                        under this clause (E) shall be treated as the subject of
                        a Bid by a Potential Owner at the rate therein
                        specified; and

                        (3) All Sell Orders shall be considered valid up to an
                  amount equal to the excess of the principal amount of
                  Outstanding Auction Rate Notes owned by such Existing Owner
                  over the aggregate principal amount of Auction Rate Notes
                  subject to Hold Orders referred to in clause (1) of

                                      1-15
<PAGE>

                  this paragraph (v) and valid Bids referred to in clause (2) of
                  this paragraph (E).

                  (F) If more than one Bid for Auction Rate Notes is submitted
            on behalf of any Potential Owner, each Bid submitted shall be a
            separate Bid with the rate and principal amount therein specified.

                  (G) An Existing Owner that offers to purchase additional
            Auction Rate Notes is, for purposes of such offer, treated as a
            Potential Owner.

                  (H) Any Bid or Sell Order submitted by an Existing Owner
            covering an aggregate principal amount of Auction Rate Notes not
            equal to an Authorized Denomination shall be rejected and shall be
            deemed a Hold Order. Any Bid submitted by a Potential Owner covering
            an aggregate principal amount of Auction Rate Notes not equal to an
            Authorized Denomination shall be rejected.

                  (I) Any Bid specifying a rate higher than the applicable
            Maximum Rate will (1) be treated as a Sell Order if submitted by an
            Existing Owner and (2) not be accepted if submitted by a Potential
            Owner.

                  (J) Any Order submitted in an Auction by a Broker-Dealer to
            the Auction Agent prior to the Submission Deadline on any Auction
            Date shall be irrevocable.

            (iii) (A) Not earlier than the Submission Deadline on each Auction
      Date, the Auction Agent shall assemble all valid Orders submitted or
      deemed submitted to it by the Broker-Dealers (each such Order as submitted
      or deemed submitted by a Broker-Dealer being herein referred to
      individually as a "Submitted Hold Order," a "Submitted Bid" or a
      "Submitted Sell Order," as the case may be, or as a "Submitted Order," and
      collectively as "Submitted Hold Orders," "Submitted Bids" or "Submitted
      Sell Orders," as the case may be, or as "Submitted Orders") and shall
      determine:

                        (1) the excess of the total principal amount of
                  Outstanding Auction Rate Notes over the sum of the aggregate
                  principal amount of Outstanding Auction Rate Notes subject to
                  Submitted Hold Orders (such excess being herein referred to as
                  the "Available Auction Rate Notes"), and

                        (2) from the Submitted Orders whether:

                              a. the aggregate principal amount of Outstanding
                        Auction Rate Notes subject to Submitted Bids by
                        Potential Owners specifying one or more rates equal to
                        or lower than the applicable Maximum Rate;

                  exceeds or is equal to the sum of:

                                      1-16
<PAGE>

                              b. the aggregate principal amount of Outstanding
                        Auction Rate Notes subject to Submitted Bids by Existing
                        Owners specifying one or more rates higher than the
                        applicable Maximum Rate; and

                              c. the aggregate principal amount of Outstanding
                        Auction Rate Notes subject to Submitted Sell Orders;

                  (in the event such excess or such equality exists, other than
                  because all of the Outstanding Auction Rate Notes are subject
                  to Submitted Hold Orders, such Submitted Bids described in
                  subclause a. above shall be referred to collectively as
                  "Sufficient Bids"); and

                        (3) if Sufficient Bids exist, the Bid Auction Rate,
                  which shall be the lowest rate specified in such Submitted
                  Bids such that if:

                              a. (x) each Submitted Bid from Existing Owners
                        specifying such lowest rate and (y) all other Submitted
                        Bids from Existing Owners specifying lower rates were
                        rejected, thus entitling such Existing Owners to
                        continue to own the principal amount of Auction Rate
                        Notes subject to such Submitted Bids; and

                              b. (x) each such Submitted Bid from Potential
                        Owners specifying such lowest rate and (y) all other
                        Submitted Bids from Potential Owners specifying lower
                        rates were accepted;

                  the result would be that such Existing Owners described in
                  subclause a. above would continue to own an aggregate
                  principal amount of Outstanding Auction Rate Notes which, when
                  added to the aggregate principal amount of Outstanding Auction
                  Rate Notes to be purchased by such Potential Owners described
                  in subclause b. above, would equal not less than the Available
                  Auction Rate Notes.

                  (B) Promptly after the Auction Agent has made the
            determinations pursuant to Section 2.02(a)(iii)(A) of this Annex 1,
            the Auction Agent shall advise the Trustee, the Broker-Dealers and
            the Issuer of the Maximum Rate and the All Hold Rate and the
            components thereof on the Auction Date:

                        (1) if Sufficient Bids exist, that the Auction Rate for
                  the next succeeding Interest Accrual Period shall be equal to
                  the Bid Auction Rate so determined;

                        (2) if Sufficient Bids do not exist (other than because
                  all of the Outstanding Auction Rate Notes are subject to
                  Submitted Hold Orders), that the Auction Rate for the next
                  succeeding Interest Accrual Period shall be equal to the
                  applicable Maximum Rate; or

                                      1-17
<PAGE>

                        (3) if all Outstanding Auction Rate Notes are subject to
                  Submitted Hold Orders, that the Auction Rate for the next
                  succeeding Interest Accrual Period shall be equal to the
                  applicable All Hold Rate.

                  (C) Promptly after the Auction Agent has determined the
            Auction Rate, the Auction Agent shall determine and advise the
            Trustee of the Auction Note Interest Rate.

            (iv) Existing Owners shall continue to own the principal amount of
      Auction Rate Notes that are subject to Submitted Hold Orders. If the
      Maximum Rate is equal to or greater than the Bid Auction Rate and if
      Sufficient Bids have been received by the Auction Agent, the Bid Auction
      Rate will be the Auction Note Interest Rate, and Submitted Bids and
      Submitted Sell Orders will be accepted or rejected and the Auction Agent
      will take such other action as described below in subparagraph (A).

            If the Maximum Rate is less than the Auction Rate, the Maximum Rate
will be the Auction Note Interest Rate. If the Auction Agent has not received
Sufficient Bids (other than because all of the Outstanding Auction Rate Notes
are subject to Submitted Hold Orders), the Auction Note Interest Rate will be
the Maximum Rate. In any of the cases described above, Submitted Orders will be
accepted or rejected and the Auction Agent will take such other action as
described below in subparagraph (B).

                  (A) If Sufficient Bids have been made and the Maximum Rate is
            equal to or greater than the Bid Auction Rate (in which case the
            Auction Note Interest Rate shall be the Bid Auction Rate), all
            Submitted Sell Orders shall be accepted and, subject to the
            provisions of clauses (4) and (5) of this Section 2.02(a)(iv),
            Submitted Bids shall be accepted or rejected as follows in the
            following order of priority, and all other Submitted Bids shall be
            rejected:

                        (1) Existing Owners' Submitted Bids specifying any rate
                  that is higher than the Auction Note Interest Rate shall be
                  accepted, thus requiring each such Existing Owner to sell the
                  aggregate principal amount of Auction Rate Notes subject to
                  such Submitted Bids;

                        (2) Existing Owners' Submitted Bids specifying any rate
                  that is lower than the Auction Note Interest Rate shall be
                  rejected, thus entitling each such Existing Owner to continue
                  to own the aggregate principal amount of Auction Rate Notes
                  subject to such Submitted Bids;

                        (3) Potential Owners' Submitted Bids specifying any rate
                  that is lower than the Auction Note Interest Rate shall be
                  accepted;

                        (4) Each Existing Owners' Submitted Bid specifying a
                  rate that is equal to the Auction Note Interest Rate shall be
                  rejected, thus entitling such Existing Owner to continue to
                  own the aggregate principal amount of Auction Rate Notes
                  subject to such Submitted Bid, unless the aggregate principal
                  amount of Outstanding Auction Rate Notes subject to all such

                                      1-18
<PAGE>

                  Submitted Bids shall be greater than the principal amount of
                  Auction Rate Notes (the "remaining principal amount") equal to
                  the excess of the Available Auction Rate Notes over the
                  aggregate principal amount of Auction Rate Notes subject to
                  Submitted Bids described in clauses (2) and (3) of this
                  Section 2.02(a)(iv)(A), in which event such Submitted Bid of
                  such Existing Owner shall be rejected in part, and such
                  Existing Owner shall be entitled to continue to own the
                  principal amount of Auction Rate Notes subject to such
                  Submitted Bid, but only in an amount equal to the aggregate
                  principal amount of Auction Rate Notes obtained by multiplying
                  the remaining principal amount by a fraction, the numerator of
                  which shall be the principal amount of Outstanding Auction
                  Rate Notes owned by such Existing Owner subject to such
                  Submitted Bid and the denominator of which shall be the sum of
                  the principal amount of Outstanding Auction Rate Notes subject
                  to such Submitted Bids made by all such Existing Owners that
                  specified a rate equal to the Auction Note Interest Rate,
                  subject to the provisions of Section 2.02(a)(iv)(D) of this
                  Annex 1; and

                        (5) Each Potential Owner's Submitted Bid specifying a
                  rate that is equal to the Auction Note Interest Rate shall be
                  accepted, but only in an amount equal to the principal amount
                  of Auction Rate Notes obtained by multiplying the excess of
                  the aggregate principal amount of Available Auction Rate Notes
                  over the aggregate principal amount of Auction Rate Notes
                  subject to Submitted Bids described in clauses (2), (3) and
                  (4) of this Section 2.02(a)(iv)(A) by a fraction the numerator
                  of which shall be the aggregate principal amount of
                  Outstanding Auction Rate Notes subject to such Submitted Bid
                  and the denominator of which shall be the sum of the principal
                  amount of Outstanding Auction Rate Notes subject to Submitted
                  Bids made by all such Potential Owners that specified a rate
                  equal to the Auction Note Interest Rate, subject to the
                  provisions of Section 2.02(a)(iv)(D) of this Annex 1.

                  (B) If Sufficient Bids have not been made (other than because
            all of the Outstanding Auction Rate Notes are subject to submitted
            Hold Orders), or if the Maximum Rate is less than the Bid Auction
            Rate (in which case the Auction Note Interest Rate shall be the
            Maximum Rate), subject to the provisions of Section 2.02(a)(iv)(D)
            of this Annex 1, Submitted Orders shall be accepted or rejected as
            follows in the following order of priority and all other Submitted
            Bids shall be rejected:

                        (1) Existing Owners' Submitted Bids specifying any rate
                  that is equal to or lower than the Auction Note Interest Rate
                  shall be rejected, thus entitling such Existing Owners to
                  continue to own the aggregate principal amount of Auction Rate
                  Notes subject to such Submitted Bids;

                                      1-19
<PAGE>

                        (2) Potential Owners' Submitted Bids specifying (x) any
                  rate that is equal to or lower than the Auction Note Interest
                  Rate shall be accepted and (y) any rate that is higher than
                  the Auction Note Interest Rate shall be rejected; and

                        (3) each Existing Owner's Submitted Bid specifying any
                  rate that is higher than the Auction Note Interest Rate and
                  the Submitted Sell Order of each Existing Owner shall be
                  accepted, thus entitling each Existing Owner that submitted
                  any such Submitted Bid or Submitted Sell Order to sell the
                  Auction Rate Notes subject to such Submitted Bid or Submitted
                  Sell Order, but in both cases only in an amount equal to the
                  aggregate principal amount of Auction Rate Notes obtained by
                  multiplying the aggregate principal amount of Auction Rate
                  Notes subject to Submitted Bids described in clause (2)(x) of
                  this Section 2.02(a)(iv)(B) by a fraction the numerator of
                  which shall be the aggregate principal amount of Outstanding
                  Auction Rate Notes owned by such Existing Owner subject to
                  such submitted Bid or Submitted Sell Order and the denominator
                  of which shall be the aggregate principal amount of
                  Outstanding Auction Rate Notes subject to all such Submitted
                  Bids and Submitted Sell Orders.

                  (C) If all Auction Rate Notes are subject to Submitted Hold
            Orders, all Submitted Bids shall be rejected.

                  (D) If, as a result of the procedures described in paragraph
            (A) or (B) of this Section 2.02(a)(iv), any Existing Owner would be
            entitled or required to sell, or any Potential Owner would be
            entitled or required to purchase, a principal amount of Auction Rate
            Notes that is not equal to an Authorized Denomination, the Auction
            Agent shall, in such manner as in its sole discretion it shall
            determine, round up or down the principal amount of Auction Rate
            Notes to be purchased or sold by any Existing Owner or Potential
            Owner so that the principal amount of Auction Rate Notes purchased
            or sold by each Existing Owner or Potential Owner shall be equal to
            an Authorized Denomination.

                  (E) If, as a result of the procedures described in paragraph
            (B) of this Section 2.02(a)(iv), any Potential Owner would be
            entitled or required to purchase less than an Authorized
            Denomination of Auction Rate Notes, the Auction Agent shall, in such
            manner as in its sole discretion it shall determine, allocate
            Auction Rate Notes for purchase among Potential Owners so that only
            Auction Rate Notes in Authorized Denominations are purchased by any
            Potential Owner, even if such allocation results in one or more of
            such Potential Owners not purchasing any Auction Rate Notes.

            (v) Based on the result of each Auction, the Auction Agent shall
      determine the aggregate principal amount of Auction Rate Notes to be
      purchased and the aggregate principal amount of Auction Rate Notes to be
      sold by Potential Owners and Existing

                                      1-20
<PAGE>

      Owners on whose behalf each Broker-Dealer submitted Bids or Sell Orders
      and, with respect to each Broker-Dealer, to the extent that such aggregate
      principal amount of Auction Rate Notes to be sold differs from such
      aggregate principal amount of Auction Rate Notes to be purchased,
      determine to which other Broker-Dealer or Broker-Dealers acting for one or
      more purchasers such Broker-Dealer shall deliver, or from which other
      Broker-Dealer or Broker-Dealers acting for one or more sellers such
      Broker-Dealer shall receive, as the case may be, Auction Rate Notes.

            (vi) Any calculation by the Auction Agent or the Trustee, as
      applicable, of the Auction Note Interest Rate, the Maximum Rate, the All
      Hold Rate and the Non-Payment Rate shall, in the absence of manifest
      error, be binding on all other parties.

            (vii) Notwithstanding anything in this Annex 1 to the contrary, (A)
      no Auction for the Auction Rate Notes for an Auction Period of less than
      180 days will be held on any Auction Date hereunder on which there are
      insufficient moneys in the Collection Fund to pay, or otherwise held by
      the Trustee under this Indenture and available to pay, the principal of
      and interest due on the Auction Rate Notes on the Auction Rate
      Distribution Date immediately following such Auction Date, and (B) no
      Auction will be held on any Auction Date hereunder during the continuance
      of a Payment Default. The Trustee shall promptly notify the Auction Agent
      of any such occurrence.

            (b) Application of Interest Payments for the Auction Rate Notes.

            (i) The Trustee shall determine not later than 2:00 p.m., eastern
      time, on the Business Day next succeeding an Auction Rate Distribution
      Date, whether a Payment Default has occurred. If a Payment Default has
      occurred, the Trustee shall, not later than 2:15 p.m., eastern time, on
      such Business Day, send a notice thereof in substantially the form of
      Appendix A attached hereto to the Auction Agent by telecopy or similar
      means and, if such Payment Default is cured, the Trustee shall immediately
      send a notice in substantially the form of Appendix B attached hereto to
      the Auction Agent by telecopy or similar means.

            (ii) Not later than 2:00 p.m., eastern time, on each anniversary of
      the Closing Date, the Trustee shall pay to the Auction Agent, in
      immediately available funds out of amounts in the Collection Fund, an
      amount equal to the Auction Agent Fee as set forth in the Auction Agent
      Agreement. Not later than 2:00 p.m., eastern time, on each Auction Date,
      the Trustee shall pay to the Auction Agent, in immediately available funds
      out of amounts in the Collection Fund, an amount equal to the
      Broker-Dealer Fee as calculated in the Auction Agent Agreement. The
      Trustee shall, from time to time at the request of the Auction Agent and
      at the direction of an Authorized Representative, reimburse the Auction
      Agent for its reasonable expenses as provided in the Auction Agent
      Agreement, such expenses to be paid out of amounts in the Collection Fund.

            (c) Calculation of Maximum Rate, All Hold Rate, Applicable Libor
Rate, and Non-Payment Rate. The Auction Agent shall calculate the Maximum Rate,
Applicable LIBOR Rate, the Non-Payment Rate and All Hold Rate, as the case may
be, on each Auction Date and shall notify the Trustee, the Administrator, the
Issuer and the Broker-Dealers of the Maximum

                                      1-21
<PAGE>

Rate, Applicable LIBOR Rate, and All Hold Rate, as the case may be, as provided
in the Auction Agent Agreement; provided, that if the ownership of the Auction
Rate Notes is no longer maintained in Book-Entry Form, or if a Payment Default
has occurred, then the Trustee shall determine the Maximum Rate, Applicable
LIBOR Rate, All Hold Rate and Non-Payment Rate for each such Interest Accrual
Period. The Issuer shall determine the Net Loan Rate. If the ownership of the
Auction Rate Notes is no longer maintained in Book-Entry Form by the Clearing
Agency, the Trustee shall calculate the Maximum Rate on the Business Day
immediately preceding the first day of each Interest Accrual Period after the
delivery of certificates representing the Auction Rate Notes pursuant to this
Indenture. If a Payment Default shall have occurred, the Trustee shall calculate
the Non-Payment Rate on the Interest Rate Determination Date for (i) each
Interest Accrual Period commencing after the occurrence and during the
continuance of such Payment Default and (ii) any Interest Accrual Period
commencing less than two Business Days after the cure of any Payment Default.
The determination by the Trustee or the Auction Agent, as the case may be, of
the Maximum Rate, Applicable LIBOR Rate, All Hold Rate and Non-Payment Rate
shall (in the absence of manifest error) be final and binding upon all parties.
If calculated or determined by the Auction Agent, the Auction Agent shall
promptly advise the Trustee, the Administrator, the Issuer and the
Broker-Dealers of the applicable Maximum Rate, Applicable LIBOR Rate, and All
Hold Rate.

            (d) Notification of Rates, Amounts and Auction Rate Distribution
Dates.

            (i) By 12:00 noon, eastern time, on the Business Day following each
      Regular Record Date, the Trustee shall determine the aggregate amounts of
      interest distributable on the next succeeding Auction Rate Distribution
      Date to the beneficial owners of Auction Rate Notes.

            (ii) At least four days prior to any Auction Rate Distribution Date,
      the Trustee shall:

                  (A) confirm with the Auction Agent, so long as no Payment
            Default has occurred and is continuing and the ownership of the
            Auction Rate Notes is maintained in Book-Entry Form by the Clearing
            Agency, (1) the date of such next Auction Rate Distribution Date and
            (2) the amount payable to the Auction Agent on the Auction Date
            pursuant to Section 2.02(b)(ii) of this Annex 1;

                  (B) pursuant to Section 2.01 of this Annex 1, advise the
            Auction Rate Noteholders of a Class of Auction Rate Notes of any
            Carry-over Amount accruing on such Auction Rate Notes; and

                  (C) advise the Clearing Agency, so long as the ownership of
            the Auction Rate Notes is maintained in Book-Entry Form by the
            Clearing Agency, upon request, of the aggregate amount of interest
            distributable on such next Auction Rate Distribution Date to the
            beneficial owners of each Class of the Auction Rate Notes.

            If any day scheduled to be an Auction Rate Distribution Date shall
be changed after the Trustee shall have given the notice or confirmation
referred to in clause (i) of the

                                      1-22
<PAGE>

preceding sentence, the Trustee shall, not later than 11:15 a.m., eastern time,
on the Business Day next preceding the earlier of the new Auction Rate
Distribution Date or the old Auction Rate Distribution Date, by such means as
the Trustee deems practicable, give notice of such change to the Auction Agent,
so long as no Payment Default has occurred and is continuing and the ownership
of the Auction Rate Notes is maintained in Book-Entry Form by the Clearing
Agency.

            (e) Auction Agent.

            (i) The Bank of New York is hereby appointed as Initial Auction
      Agent to serve as agent for the Issuer in connection with Auctions. The
      Trustee and the Issuer will, and the Trustee is hereby directed to, enter
      into the Initial Auction Agent Agreement with The Bank of New York, as the
      Initial Auction Agent. Any Substitute Auction Agent shall be (A) a bank,
      national banking association or trust company duly organized under the
      laws of the United States of America or any state or territory thereof
      having its principal place of business in the Borough of Manhattan, New
      York, or such other location as approved by the Trustee in writing and
      having a combined capital stock or surplus of at least $50,000,000, or (B)
      a member of the National Association of Securities Dealers, Inc., having a
      capitalization of at least $50,000,000, and, in either case, authorized by
      law to perform all the duties imposed upon it hereunder and under the
      Auction Agent Agreement. The Auction Agent may at any time resign and be
      discharged of the duties and obligations created by this Annex 1 by giving
      at least 90 days' notice to the Trustee, each Broker-Dealer and the Issuer
      (30 days' written notice if the Auction Agent has not been paid its fee).
      The Auction Agent may be removed at any time by the Trustee acting at the
      written direction of (i) the Issuer or (ii) the holders of 66 2/3 of the
      aggregate principal amount of the Auction Rate Notes then Outstanding, and
      if by such Auction Rate Noteholders, by an instrument signed by the
      Trustee and filed with the Auction Agent, the Issuer and the
      Broker-Dealers upon at least 90 days' written notice. Removal of the
      Auction Agent pursuant to the preceding two sentences shall not be
      effective until and unless a Substitute Auction Agent has been appointed
      and has accepted such appointment. If required by the Issuer, a Substitute
      Auction Agent Agreement shall be entered into with a Substitute Auction
      Agent.

            (ii) If the Auction Agent shall resign or be removed or be
      dissolved, or if the property or affairs of the Auction Agent shall be
      taken under the control of any state or federal court or administrative
      body because of bankruptcy or insolvency, or for any other reason, the
      Trustee at the direction of an Authorized Representative, shall use its
      best efforts to appoint a Substitute Auction Agent.

            (iii) The Auction Agent is acting as agent for the Issuer in
      connection with Auctions. In the absence of willful misconduct or gross
      negligence on its part, the Auction Agent shall not be liable for any
      action taken, suffered or omitted or any error of judgment made by it in
      the performance of its duties under the Auction Agent Agreement and shall
      not be liable for any error of judgment made in good faith unless the
      Auction Agent shall have been grossly negligent in ascertaining (or
      failing to ascertain) the pertinent facts.

                                      1-23
<PAGE>

            (f) Broker-Dealer.

            (i) The Auction Agent will enter into Broker-Dealer Agreements with
      UBS Financial Services, Inc., J.P. Morgan Securities Inc. and Citigroup
      Global Markets Inc. as the initial Broker-Dealers with respect to the
      classes of Auction Rate Notes specified in the related Broker-Dealer
      Agreements. An Authorized Representative may, from time to time, approve
      one or more additional persons to serve as a Broker-Dealer under the
      Broker-Dealer Agreements and shall be responsible for providing such
      Broker-Dealer Agreements to the Trustee and the Auction Agent.

            (ii) Any Broker-Dealer may be removed at any time, at the request of
      an Authorized Representative, but there shall, at all times, be at least
      one Broker-Dealer appointed and acting as such for all classes of Auction
      Rate Notes.

            (g) Changes in Auction Period or Periods and Certain Percentages.

            (i) While any of the Auction Rate Notes are Outstanding, the Issuer
      may, from time to time, change the length of one or more Auction Periods
      (an "Auction Period Adjustment"), in order to conform with then current
      market practice with respect to similar securities or to accommodate
      economic and financial factors that may affect or be relevant to the
      length of the Auction Period and the interest rate borne by the Auction
      Rate Notes. The Issuer shall not initiate an Auction Period Adjustment
      unless it shall have received the written consent of the applicable Market
      Agent, which consent shall not be unreasonably withheld, not later than
      nine days prior to the Auction Date for such Auction Period. The Issuer
      shall initiate the Auction Period Adjustment by giving written notice by
      Issuer Order to the Trustee, the Auction Agent, the applicable
      Broker-Dealer, the applicable Market Agent, each Rating Agency and the
      Clearing Agency in substantially the form of, or containing substantially
      the information contained in, Appendix C attached hereto at least 10 days
      prior to the Auction Date for such Auction Period.

            (ii) Any such adjusted Auction Period shall not be less than 7 days
      nor more than 366 days.

            (iii) An Auction Period Adjustment shall take effect only if (A) the
      Trustee and the Auction Agent receive, by 11:00 a.m., eastern time, on the
      Business Day before the Auction Date for the first such Auction Period, an
      Issuer Certificate in substantially the form attached as, or containing
      substantially the same information contained in, Appendix D attached
      hereto, authorizing the Auction Period Adjustment specified in such
      certificate along with a copy of the written consent of the applicable
      Broker-Dealer and, (B) Sufficient Bids exist as of the Auction on the
      Auction Date for such first Auction Period. If the condition referred to
      in (A) above is not met, the applicable Auction Note Interest Rate for the
      next Auction Period shall be determined pursuant to the above provisions
      of this Section 2.02 and the Auction Period shall be the Auction Period
      determined without reference to the proposed change. If the condition
      referred to in (A) is met but the condition referred in (B) above is not
      met, the applicable Auction Note Interest Rate for the next Auction Period
      shall be the applicable Maximum Rate and the

                                      1-24
<PAGE>

      Auction Period shall be the Auction Period determined without reference to
      the proposed change.

            In connection with any Auction Period Adjustment, the Auction Agent
shall provide such further notice to such parties as is specified in Section 2.5
of the Auction Agent Agreement.

            (h) Changes in the Auction Date. The applicable Market Agent, with
the written consent of an Authorized Representative and, if applicable, upon
receipt of the opinion of Note Counsel as required below, may specify a
different Auction Date (but in no event more than five Business Days earlier)
than the Auction Date that would otherwise be determined in accordance with the
definition of "Auction Date" in Section 1.01 of this Annex 1 with respect to one
or more specified Auction Periods in order to conform with then current market
practice with respect to similar securities or to accommodate economic and
financial factors that may affect or be relevant to the day of the week
constituting an Auction Date and the interest rate borne on the Auction Rate
Notes. The applicable Market Agent shall deliver a written request for consent
to such change in the length of the Auction Date to the Issuer at least 14 days
prior to the effective date of such change. If the Issuer shall have delivered
such written consent to the applicable Market Agent, such Market Agent shall
provide notice of its determination to specify an earlier Auction Date for one
or more Auction Periods by means of a written notice delivered at least 10 days
prior to the proposed changed Auction Date to the Trustee, the Auction Agent,
the Issuer, the applicable Broker-Dealer, each Rating Agency and the Clearing
Agency. Such notice shall be substantially in the form of, or contain
substantially the information contained in, Appendix E attached hereto.

            In connection with any change described in this Section 2.02(h), the
Auction Agent shall provide such further notice to such parties as is specified
in Section 2.5 of the Auction Agent Agreement.

            Section 2.03 Additional Provisions Regarding the Interest Rates on
the Auction Rate Notes. The determination of a Variable Rate by the Auction
Agent or any other Person pursuant to the provisions of the applicable Section
of this Article II shall be conclusive and binding on the Auction Rate
Noteholders of the Auction Rate Notes to which such Variable Rate applies, and
the Issuer and the Trustee may rely thereon for all purposes.

            In no event shall the cumulative amount of interest paid or payable
on the Auction Rate Notes (including interest calculated as provided herein,
plus any other amounts that constitute interest on the Auction Rate Notes under
applicable law, which are contracted for, charged, reserved, taken or received
pursuant to the Auction Rate Notes or related documents) calculated from the
Date of Closing of the Auction Rate Notes through any subsequent day during the
term of the Auction Rate Notes or otherwise prior to payment in full of the
Auction Rate Notes exceed the amount permitted by applicable law. If the
applicable law is ever judicially interpreted so as to render usurious any
amount called for under the Auction Rate Notes or related documents or otherwise
contracted for, charged, reserved, taken or received in connection with the
Auction Rate Notes, or if the redemption or acceleration of the maturity of the
Auction Rate Notes results in payment to or receipt by the Auction Rate
Noteholder or any

                                      1-25
<PAGE>

former Auction Rate Noteholder of the Auction Rate Notes of any interest in
excess of that permitted by applicable law, then, notwithstanding any provision
of the Auction Rate Notes or related documents to the contrary, all excess
amounts theretofore paid or received with respect to the Auction Rate Notes
shall be credited on the principal balance of the Auction Rate Notes (or, if the
Auction Rate Notes have been paid or would thereby be paid in full, refunded by
the recipient thereof), and the provisions of the Auction Rate Notes and related
documents shall automatically and immediately be deemed reformed and the amounts
thereafter collectible hereunder and thereunder reduced, without the necessity
of the execution of any new document, so as to comply with the applicable law,
but so as to permit the recovery of the fullest amount otherwise called for
under the Auction Rate Notes and under the related documents.

            Section 2.04 Qualifications of Market Agent. Each Market Agent shall
be a member of the National Association of Securities Dealers, Inc., have a
capitalization of at least $50,000,000 and be authorized by law to perform all
the duties imposed upon it by this Indenture. Any Market Agent may resign and be
discharged of the duties and obligations created by this Indenture by giving at
least thirty days notice to the Issuer and the Trustee, provided that such
resignation shall not be effective until the appointment of a successor market
agent by the Issuer and the acceptance of such appointment by such successor
market agent. Any Market Agent may be replaced at the direction of the Issuer,
by an instrument signed by an Authorized Representative of the Issuer filed with
such Market Agent and the Trustee at least thirty days before the effective date
of such replacement, provided that such replacement shall not be effective until
the appointment of a successor market agent by the Issuer and the acceptance of
such appointment by such successor market agent. In the event that any Market
Agent shall be removed or be dissolved, or if the property or affairs of any
Market Agent shall be taken under the control of any state or federal court or
administrative body because of bankruptcy or insolvency, or for any other
reason, and there is no Market Agent for any class of Notes, and the Issuer
shall not have appointed its successor as Market Agent, the Trustee,
notwithstanding the provisions of this Section 2.04, shall be deemed to be the
Market Agent for such class for all purposes of this Indenture until the
appointment by the Issuer of a successor Market Agent. Nothing in this Section
2.04 shall be construed as conferring on the Trustee additional duties other
than as set forth herein.

                                      1-26<PAGE>

                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                                    INDENTURE

                            Dated as of July 23, 2003
                                      among

                  Collegiate Funding Services Resources I, LLC
                                    as Issuer

                                CRC FUNDING, LLC
                                as Conduit Lender

                  THE FINANCIAL INSTITUTIONS FROM TIME TO TIME

                                  PARTY HERETO

                              as Committed Lenders

                          CITICORP NORTH AMERICA, INC.
                                    as Agent

                         U.S. BANK NATIONAL ASSOCIATION
                              as Indenture Trustee

                                       and

                           as Eligible Lender Trustee

               COLLEGIATE FUNDING PORTFOLIO ADMINISTRATION, L.L.C.
                                as Administrator

                                       and

                   COLLEGIATE FUNDING MASTER SERVICING, L.L.C.
                               as Master Servicer

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                       Page
                                                                                                                       ----
<S>                                                                                                                    <C>
ARTICLE I  ADVANCES                                                                                                      2
         SECTION 1.01.  Commitments to Lend; Limits on Lenders' Obligations......................................        2
         SECTION 1.02.  Borrowing Procedures.....................................................................        3
         SECTION 1.03.  Grant of Security Interest...............................................................        4
         SECTION 1.04.  Release of Collateral....................................................................        6
         SECTION 1.05.  Effect of Release........................................................................        7
         SECTION 1.06.  Premium Letter of Credit.................................................................        7
         SECTION 1.07.  Extension of the Facility Termination Date...............................................        8

ARTICLE II  NOTE                                                                                                         9
         SECTION 2.01.  Note.....................................................................................        9
         SECTION 2.02.  Interest on Advances.....................................................................        9
         SECTION 2.03.  Repayments and Prepayments...............................................................       10
         SECTION 2.04.  General Procedures.......................................................................       10
         SECTION 2.05.  Changes in Program Limit.................................................................       11
         SECTION 2.06.  Characterization of Note.................................................................       11
         SECTION 2.07.  Taxes....................................................................................       11

ARTICLE III  SETTLEMENTS                                                                                                13
         SECTION 3.01.  Accounts; Investments by Indenture Trustee...............................................       13
         SECTION 3.02.  Collection of Moneys.....................................................................       15
         SECTION 3.03.  Collection Account.......................................................................       15
         SECTION 3.04.  Reserve Account..........................................................................       18
         SECTION 3.05.  Payments and Computations, Etc.; Monthly Advances........................................       19
         SECTION 3.06.  Disbursement Account.....................................................................       20
         SECTION 3.07.  Payment Under Joint Sharing Agreement....................................................       20

ARTICLE IV  FEES AND YIELD PROTECTION                                                                                   21
         SECTION 4.01.  Fees.....................................................................................       21
         SECTION 4.02.  Yield Protection.........................................................................       21
         SECTION 4.03.  Funding Losses...........................................................................       22

ARTICLE V  CONDITIONS OF BORROWINGS                                                                                     23
         SECTION 5.01.  Conditions Precedent to Initial Borrowing................................................       23
         SECTION 5.02.  Conditions Precedent to All Borrowings...................................................       26
         SECTION 5.03.  Delivery of Schedule of Pledged Student Loans............................................       28

ARTICLE VI  REPRESENTATIONS AND WARRANTIES                                                                              28
         SECTION 6.01.  Representations and Warranties of Issuer.................................................       28
         SECTION 6.02.  Reassignment upon Breach.................................................................       32
         SECTION 6.03.  Representations and Warranties of Indenture Trustee......................................       32
         SECTION 6.04.  Representations and Warranties of Eligible Lender Trustee................................       33
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                                     <C>
ARTICLE VII  GENERAL COVENANTS OF ISSUER AND MASTER SERVICER                                                            33
         SECTION 7.01.  Affirmative Covenants of Issuer..........................................................       33
         SECTION 7.02.  Reporting Requirements of Issuer.........................................................       38
         SECTION 7.03.  Servicing Covenants......................................................................       41
         SECTION 7.04.  Negative Covenants of Issuer.............................................................       43

ARTICLE VIII  EVENTS OF TERMINATION                                                                                     45
         SECTION 8.01.  Events of Termination....................................................................       45
         SECTION 8.02.  Remedies.................................................................................       48

ARTICLE IX  THE AGENT; INDENTURE TRUSTEE                                                                                50
         SECTION 9.01.  Authorization and Action.................................................................       50
         SECTION 9.02.  Agent's Reliance, Indemnification, Etc...................................................       50
         SECTION 9.03.  Agent and Affiliates.....................................................................       51
         SECTION 9.04.  Lender's Purchase Decision...............................................................       51
         SECTION 9.05.  Delegation of Duties.....................................................................       51
         SECTION 9.06.  Successor Agent..........................................................................       51
         SECTION 9.07.  Acceptance of the Trusts.................................................................       52
         SECTION 9.08.  Fees, Charges and Expenses of Indenture Trustee..........................................       54
         SECTION 9.09.  Notice to Lenders if Event of Termination Occurs.........................................       54
         SECTION 9.10.  Intervention by Indenture Trustee........................................................       54
         SECTION 9.11.  Successors...............................................................................       54
         SECTION 9.12.  Resignation..............................................................................       54
         SECTION 9.13.  Removal..................................................................................       55
         SECTION 9.14.  Appointment of Successor.................................................................       55
         SECTION 9.15.  Concerning Any Successor.................................................................       55
         SECTION 9.16.  Appointment of Co-Trustee................................................................       55
         SECTION 9.17.  Successor Indenture Trustee as Trustee of Funds..........................................       56
         SECTION 9.18.  Indemnification..........................................................................       56
         SECTION 9.19.  Amendments; Waivers......................................................................       57

ARTICLE X  ASSIGNMENT OF LENDER'S INTEREST                                                                              57
         SECTION 10.01.  Restrictions on Assignments.............................................................       57
         SECTION 10.02.  Rights of Assignee......................................................................       58
         SECTION 10.03.  Evidence of Assignment..................................................................       58

ARTICLE XI  INDEMNIFICATION                                                                                             59
         SECTION 11.01.  Indemnities.............................................................................       59

ARTICLE XII  SERVICING OF PLEDGED STUDENT LOANS                                                                         61
         SECTION 12.01.  Duties of Master Servicer...............................................................       61
         SECTION 12.02.  Collection of Pledged Student Loan Payments.............................................       63
         SECTION 12.03.  Realization upon Pledged Student Loans..................................................       64
         SECTION 12.04.  No Impairment or Amendment..............................................................       64
         SECTION 12.05.  Purchase of Pledged Student Loans.......................................................       64
         SECTION 12.06.  Reporting...............................................................................       65
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                                                                     <C>
         SECTION 12.07.  Annual Statement as to Compliance; Notice of Default; SAS 70 Reports....................       65
         SECTION 12.08.  Access to Certain Documentation and Information Regarding Pledged Student
                              Loans; Audits......................................................................       66
         SECTION 12.09.  Servicer Expenses.......................................................................       66
         SECTION 12.10.  Appointment of Sub-Servicers............................................................       66
         SECTION 12.11.  Maintenance of Fidelity Bond and Errors and Omission Policy.............................       67
         SECTION 12.12.  Representations of Master Servicer......................................................       67
         SECTION 12.13.  Sub-Servicing Limitations...............................................................       69
         SECTION 12.14.  Indemnities of Master Servicer..........................................................       69
         SECTION 12.15.  Collegiate Funding Master Servicing, L.L.C. Not To Resign as Master Servicer............       70
         SECTION 12.16.  Servicer Default........................................................................       70
         SECTION 12.17.  Appointment of Successor................................................................       71
         SECTION 12.18.  Master Servicer Fee.....................................................................       71

ARTICLE XIII  MISCELLANEOUS                                                                                             73
         SECTION 13.01.  Amendments, Etc.........................................................................       73
         SECTION 13.02.  Notices, Etc............................................................................       74
         SECTION 13.03.  No Waiver; Remedies.....................................................................       74
         SECTION 13.04.  Binding Effect; Survival................................................................       74
         SECTION 13.05.  Costs, Expenses and Taxes...............................................................       75
         SECTION 13.06.  No Proceedings..........................................................................       75
         SECTION 13.07.  Captions and Cross References...........................................................       75
         SECTION 13.08.  Integration.............................................................................       75
         SECTION 13.09.  Governing Law...........................................................................       75
         SECTION 13.10.  Waiver Of Jury Trial; Submission to Jurisdiction........................................       76
         SECTION 13.11.  Execution in Counterparts...............................................................       76
         SECTION 13.12.  No Recourse Against Other Parties.......................................................       76
         SECTION 13.13.  Confidentiality.........................................................................       76
         SECTION 13.14.  Limitation of Liability.................................................................       78
</TABLE>

                                      iii

<PAGE>

               APPENDICES

APPENDIX A           Definitions
APPENDIX B           Originators
APPENDIX C           Guarantors
APPENDIX D           Form of Purchase and Sale Agreement
APPENDIX E           Credit and Collection Policy
APPENDIX F           Agreed-Upon Procedures with respect to
                     the Issuer, the Master Servicer and
                     each Affiliated Servicer

                SCHEDULES

SCHEDULE 6.0 l(k)    List of Offices of Issuer where Records
                     Are Kept

                EXHIBITS

EXHIBIT 1.02         Form of Borrowing Notice
EXHIBIT 1.04         Form of Release Certification
EXHIBIT 2.01         Form of Note
EXHIBIT 3.01(g)      Perfection Provisions for Eligible Investments
EXHIBIT 5.01(q)      Closing List
EXHIBIT 5.02(d)      Form of Coverage Condition Certificate
EXHIBIT 7.02(c)      Form of Monthly Report
EXHIBIT 10.01(a)     Form of Assignment and Acceptance
EXHIBIT 13.02        Notice Information
EXHIBIT A            Form of Account Control Agreement
EXHIBIT B            Forms of Joint Sharing Agreements

                                       iv
<PAGE>

                                    INDENTURE

                            Dated as of July 23, 2003

      THIS IS AN INDENTURE, among Collegiate Funding Services Resources I, LLC,
a Delaware limited liability company ("Issuer"), CRC Funding, LLC (a "Conduit
Lender"), the financial institutions from time to time party hereto (each, a
"Committed Lender" and together with the Conduit Lenders, the "Lenders"),
Citicorp North America, Inc. ("CNAI"), as agent for Lenders (in such capacity,
and together with any successor thereto in such capacity, the "Agent"), U.S.
Bank National Association, as indenture trustee hereunder (in such capacity, and
together with any successor thereto in such capacity, the "Indenture Trustee")
and as eligible lender trustee (in such capacity, and together with any
successor thereto in such capacity, the "Eligible Lender Trustee"), Collegiate
Funding Portfolio Administration, L.L.C., as administrator (in such capacity,
the "Administrator") and Collegiate Funding Master Servicing, L.L.C., as master
servicer (in such capacity, the "Master Servicer"). Unless otherwise indicated,
capitalized terms used in this Agreement are defined in Appendix A.

                                   BACKGROUND

      1.    Issuer will purchase from time to time Student Loans, the legal
title of which will be held by the Eligible Lender Trustee on behalf of the
Issuer.

      2.    Issuer intends to finance certain of the Student Loans by borrowing
Advances from Lenders. Issuer has requested Lenders, and Lenders have agreed,
subject to the terms and conditions contained in this Agreement, to make
Advances to Issuer from time to time during the term of this Agreement, which
Advances will be secured by such Student Loans and other Collateral.

      3.    Collegiate Funding Master Servicing, L.L.C. has agreed to act as
Master Servicer to service the Pledged Student Loans and Collegiate Funding
Portfolio Administration, L.L.C. has agreed to act as administrator for the
Issuer.

      4.    CNAI has been requested by Lenders, and is willing, to act as the
Agent.

      5.    U.S. Bank National Association has been requested by Issuer, and is
willing, to act as Indenture Trustee and as Eligible Lender Trustee.

      NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein contained, the parties hereto agree as follows:

<PAGE>

                                    ARTICLE I

                                    ADVANCES

      SECTION 1.01. Commitments to Lend; Limits on Lenders' Obligations.

      (a)   Advances. Upon the terms and subject to the conditions of this
Agreement, from time to time prior to the Facility Termination Date, Issuer may
request that each Conduit Lender make loans to Issuer secured by the Collateral
(each, an "Advance") and each Conduit Lender may, in its sole discretion, make
such Advances in an amount equal to its Pro Rata Share of such Advance, and if a
Conduit Lender elects not to make such Advances, the Committed Lenders shall
fund such Advance, each in an amount equal to its respective Pro Rata Share of
such Advance; provided that no Advance shall be made by a Lender if, after
giving effect thereto, the then Total Outstanding Advances would exceed the
Program Limit. Notwithstanding anything contained in this Agreement to the
contrary, no Committed Lender shall be obligated to provide the Agent or Issuer
with aggregate funds in connection with a Borrowing in an amount that would
exceed such Committed Lender's unused Commitment then in effect less any amounts
advanced by such Committed Lender pursuant to a Program Support Agreement.

      (b)   Use of Proceeds. Notwithstanding anything in this Agreement to the
contrary, the proceeds of each Advance made pursuant to Section 1.01(a) shall be
used by Issuer only for the purchase of Student Loans pursuant to the CFO
Purchase and Sale Agreement or to make deposits to the Collection Account to be
applied as permitted pursuant to Section 3.03(b) to the extent that Collections
are insufficient to pay amounts described in clauses first through ninth of
Section 3.03(b) and the proceeds of each Advance made pursuant to Section
1.01(c) shall be used by Issuer only as provided in Section 1.01(c); provided,
however, in the case of the first Borrowing hereunder, such proceeds (or a
portion thereof) may be used to fund the Reserve Account so that the amount
therein at least equals the Reserve Account Minimum Balance.

      (c)   Additional Advances. In addition to Advances pursuant to Section
1.01(a), absent written notice from the Required Lenders that such Advances will
not be made, prior to the occurrence of an Event of Termination and so long as
no Event of Termination would occur as a result of such Advances on each
Settlement Date, each Conduit Lender may (in its sole discretion) and each
Committed Lender shall (to the extent its related Conduit Lenders elect not to
make such Advances) make Advances in an aggregate amount equal to all amounts
described in the first through ninth clauses of Section 3.03(b) that remain
unpaid after the application of funds from Collections and Available Funds on
deposit in the Collection Account pursuant to Section 3.03(b). On each
Settlement Date after the occurrence and during the continuance of an Event of
Termination, absent written notice from the Required Lenders that such Advances
shall not be made, each Conduit Lender may (in its sole discretion) and each
Committed Lender shall (to the extent the Conduit Lenders elect not to make such
Advances) make Advances in an aggregate amount equal to all amounts described in
the first through sixth clauses of Section 3.03(b) and all amounts related to
independent directors' fees described in the seventh clause of Section 3.03(b)
which remain unpaid after the application of funds from Collections and
Available Funds on deposit in the Collection Account pursuant to Section
3.03(b). Each Conduit

                                       2
<PAGE>

Lender may make an Advance under this Section 1.01(c) in its sole discretion. If
a Conduit Lender elects not to make such Advance, the Committed Lenders related
to such Conduit Lender shall fund such Advance, each in an amount equal to its
respective Pro Rata Share of such Advance; provided, that no Advance shall be
made by a Lender pursuant to Section 1.01(c) to the extent the Required Lenders
have provided written notice to the Agent that they will not make such Advances;
provided, further, that no Advance shall be made by a Lender if, after giving
effect thereto, the then Total Outstanding Advances would exceed the Program
Limit. Advances made pursuant to this Section 1.01(c) shall constitute
"Advances" as such term is used in this Agreement and shall be secured by the
Collateral. Notwithstanding anything contained in this Agreement to the
contrary, no Committed Lender shall be obligated to provide the Agent or Issuer
with aggregate funds in connection with a Borrowing (x) after such Lender's
Facility Termination Date or (y) in an amount that would exceed such Committed
Lender's unused Commitment then in effect less any amounts advanced by such
Committed Lender pursuant to a Program Support Agreement. The Indenture Trustee
shall notify the Agent in writing two Business Days prior to each Settlement
Date if the amounts on deposit in the Collection Account will be insufficient to
pay in full the amounts described in the first through ninth clauses of Section
3.03(b). The Agent will promptly notify the Conduit Lenders or the Committed
Lenders, as applicable, of the Agent's receipt of any such notice. Each Lender
shall instruct the Agent as to whether such Lender will fund the proposed
Borrowing by telephone or telecopy by no later than the close of its business on
the Business Day following its receipt of any such request.

      SECTION 1.02. Borrowing Procedures.

      (a)   Notice of Borrowing. Each Borrowing hereunder (other than a
Borrowing pursuant to Section 1.01(c)) shall be made upon Issuer's irrevocable
written notice, substantially in the form of Exhibit 1.02 (a "Borrowing
Notice"), delivered to the Agent and the Indenture Trustee in accordance with
Section 13.02 (which notice must be received by the Agent prior to 11:00 a.m.,
New York City time) not less than two Business Days prior to the requested
Borrowing Date, which notice shall specify (A) the amount requested to be
borrowed by Issuer (which amount shall be in a minimum amount of $1,000,000 or
in integral $100,000 multiples in excess thereof), and (B) the date of such
Borrowing (which shall be a Business Day). The Agent will promptly notify the
Conduit Lenders or the Committed Lenders, as applicable, of the Agent's receipt
of any Borrowing Notice. Each Conduit Lender shall instruct the Agent as to
whether such Conduit Lender will fund the requested Borrowing by telephone or
telecopy by no later than the close of its business on the Business Day
following its receipt of any such request. Issuer shall request no more than two
Borrowings per week.

      (b)   Funding of Borrowing. On the date of each Borrowing, upon
satisfaction of the applicable conditions set forth in Article V, the Conduit
Lenders or the Committed Lenders, as the case may be, shall make available to
the Agent at the Agent's Office the principal amount of such Borrowing (which,
in the case of a Borrowing to be funded by the Committed Lenders, shall consist
of each Committed Lender remitting its Pro Rata Share of the principal amount of
such Borrowing) and after receipt by the Agent of such funds, the Agent shall
make such funds available to Issuer in same day funds by depositing such funds
in the Disbursement Account (or, with respect to Borrowings made pursuant to
Section 1.01(c), at the sole discretion of the Agent, such funds may be applied
directly to the unpaid amounts described in clauses first through ninth of
Section 3.03(b); provided, that any such payments for unpaid amounts owed under

                                       3
<PAGE>

Section 3.03(b) shall be paid in the priorities outlined in Section 3.03(b)).
Advances in connection with Borrowings to fund any FFELP Loan shall be made in
an amount not to exceed the outstanding Principal Balance of such Student Loan
plus accrued and unpaid interest thereon (to the extent not previously
capitalized) plus the Financed Premium Amount with respect to such Student Loan
minus, if the Issuer purchased such FFELP Loan at a discount, such discount.
Advances in connection with Borrowings to fund any Private Loan that has the
benefit of a Private Loan Guarantee Agreement, shall be made in an amount not to
exceed the least of (A) the outstanding Principal Balance of such Student Loan
at such time, plus accrued and unpaid interest thereon (to the extent not
previously capitalized), (B) such Private Loan's actual amortized purchase price
if purchased at a discount by Issuer or (C) the Guaranteed Amount with respect
to such Student Loan. Advances in connection with Borrowings to fund any other
type of Private Loan shall be made in an amount determined by the Agent in
connection with the Agent's approval of the Student Loan program related to such
Private Loan. The obligation of each Committed Lender to remit its Pro Rata
Share of any such Borrowing shall be several from that of each other Committed
Lender, and the failure of any Committed Lender to make such amount available to
the Agent shall not relieve any other Committed Lender of its obligation
hereunder.

      (c)   If, by 2:00 P.M. (New York time) on the date of any Borrowing
(whether or not the Agent has advanced any Committed Lender's share of such
Borrowing), one or more Committed Lenders (each, a "Defaulting Committed
Lender", and each Committed Lender other than the Defaulting Committed Lender
being referred to as a "Non-Defaulting Committed Lender") fails to make its Pro
Rata Share of the principal amount of such Borrowing available to the Agent
pursuant to Section 1.02(b) (the aggregate amount not so made available to the
Agent being herein called in either case the "Borrowing Deficit"), then the
Agent shall, by no later than 2:30 P.M. (New York time) on such date, instruct
each Non-Defaulting Committed Lender to pay, by no later than 3:00 P.M. (New
York time) on such date, in immediately available funds, to the account
designated by the Agent, an amount equal to the lesser of (y) such
Non-Defaulting Committed Lender's proportionate share (based upon the relative
Commitments of the Non-Defaulting Committed Lenders) of the Borrowing Deficit
and (z) its unused Commitment. A Defaulting Committed Lender shall forthwith,
upon demand, pay to the Agent for the ratable benefit of the Non-Defaulting
Committed Lenders all amounts paid by each Non-Defaulting Committed Lender on
behalf of such Defaulting Committed Lender, together with interest thereon, for
each day from the date a payment was made by a Non-Defaulting Committed Lender
until the date such Non-Defaulting Committed Lender has been paid such amounts
in full, at a rate per annum equal to the sum of the Alternate Base Rate plus
2.00%. No Defaulting Committed Lender shall be entitled to a vote or consent
with respect to any Transaction Document until it has paid the amounts set forth
in the preceding sentence.

      SECTION 1.03. Grant of Security Interest.

      (a)   Issuer (and the Eligible Lender Trustee, in its capacity as title
holder to the Pledged Student Loans that are a part of the Collateral) hereby
grants to the Indenture Trustee, for the benefit of the Secured Parties, a first
priority, continuing lien and security interest in all right, title and interest
of Issuer (and the Eligible Lender Trustee) in, to and under the Collateral,
whether now owned or hereafter acquired or existing. Issuer and the Eligible
Lender Trustee agree that the foregoing sentence is intended to grant in favor
of the Indenture Trustee, for the

                                       4
<PAGE>

benefit of the Secured Parties, a first priority, continuing lien and security
interest in all of the Issuer's (and the Eligible Lender Trustee's, in its
capacity as title holder to the Pledged Student Loans that are part of the
Collateral) personal property. Such lien and security interest shall secure all
of Issuer's obligations (monetary or otherwise) hereunder and under the other
Transaction Documents to which Issuer is a party, including, without limitation,
the payments on the Note, the payment of Fees, the Reimbursement Obligation and
all Indemnified Amounts and the obligation to cause the Master Servicer to turn
over all Collections (or cause all Collections to be remitted) to the Indenture
Trustee for deposit into the Collection Account. The Indenture Trustee hereby
accepts the foregoing grant of a security interest in the Collateral, and agrees
to hold such security interest in trust for the benefit of the Secured Parties
pursuant to the terms of this Agreement. The Indenture Trustee agrees that it
has no security interest or other adverse claim to the Accounts or the Eligible
Investments therein that are Collateral other than pursuant to this Agreement or
the other Transaction Documents and that it will not enter into any agreement
that would give any person or entity other than the Indenture Trustee the right
to give entitlement orders with respect to such Eligible Investments or the
Accounts, except as expressly permitted with respect to the Residual Payments
Account.

      (b)   All instruments representing or evidencing the Demand Note
Collateral or any Collateral described in clause (xii) of the definition of
"Collateral" shall be delivered to and held by or on behalf of the Indenture
Trustee for the benefit of the Secured Parties pursuant hereto and shall be in
suitable form for transfer by delivery, or shall be accompanied by duly executed
instruments of transfer or assignment in blank, all in form and substance
satisfactory to the Agent. The Issuer shall not at any time ask for, sue or
receive any payment on the Demand Note Collateral (whether in cash or other
assets, pursuant to a security interest, by exercise of any right of set-off or
otherwise) without the prior written consent of the Agent. The Issuer agrees
that it shall not, at any time, without the prior written consent of the Agent,
(i) sell, assign (by operation of law or otherwise) or otherwise dispose of, or
grant any option with respect to, any of the Demand Note Collateral, (ii) create
or permit to exist any adverse claim, judgment or Lien upon or with respect to
any of the Demand Note Collateral, except for the security interest under this
Agreement, or (iii) amend, waive, forgive, terminate or otherwise modify any of
the Demand Note Collateral.

      (c)   In connection with the foregoing grant of a security interest in the
Collateral, each of the Issuer, the Eligible Lender Trustee and the Indenture
Trustee hereby grants to the Agent (on behalf of the Secured Parties) the right,
at any time after the occurrence and during the continuation of an Event of
Termination, to give or withhold consents, directions, demands, extensions or
waivers (in each case, on behalf of the Issuer, the Eligible Lender Trustee and
the Indenture Trustee, respectively) under or with respect to, and the right to
take such actions necessary to maintain in full force and effect each of, the
Demand Note, the Servicing Agreements, the Guarantee Agreements, and the
Purchase and Sale Agreements, in each case to the extent applicable to the
Pledged Student Loans and other Collateral.

      (d)   Each of the Issuer and the Master Servicer agrees that at any time
and from time to time, at its own expense, it will promptly execute and deliver
all further instruments and documents, and take all further action, that may be
necessary or desirable, or that the Agent or the Indenture Trustee may
reasonably request, in order to enable the Agent and the Indenture

                                       5
<PAGE>

Trustee to exercise and enforce their respective rights and remedies hereunder
with respect to any Collateral.

      (e)   The Issuer agrees that all proceeds of the Demand Note shall be
deposited in the Collection Account and that the Indenture Trustee shall have
all rights of the Issuer with respect to the Demand Note, including without
limitation the right to demand payment and exercise remedies with respect to the
collateral pledged under the Demand Note, and that the Issuer shall not take any
action whatsoever with respect to the Demand Note without the prior written
consent of the Agent; provided, however, each of the Indenture Trustee and the
Agent agree that they will only demand payment under the Demand Note, direct the
Issuer to demand payment under the Demand Note or direct the distribution of
funds from the Residual Payments Account in an amount not to exceed the amount
of Covered Claims owing from the Issuer, the Master Servicer, the Administrator,
each Affiliated Servicer or any other Affiliate of Issuer pursuant to this
Agreement, any Sub-Servicing Agreement or any other Transaction Document.

      SECTION 1.04. Release of Collateral. From time to time, Issuer may request
the Indenture Trustee to release its security interest in any Pledged Student
Loans by delivering to the Indenture Trustee and the Agent a notice
substantially in the form and substance of Exhibit 1.04 attached hereto (a
"Notice of Release") of its desire that such a release occur. Issuer shall
deliver preliminary Notice of Release at least ten days but no more than 30 days
before any day on which Issuer may desire that such release occur and shall
deliver a finalized Notice of Release at least 2 days but no more than 30 days
before such date. Issuer also shall provide written notice at least two Business
Days prior to the day within the period covered by such Notice of Release on
which it desires that such release occur. Such Notice of Release shall state
that Issuer plans to sell or otherwise dispose of such Pledged Student Loans in
connection with a sale, securitization or other disposition thereof (which
Pledged Student Loans will be specifically identified in such Notice of Release,
each a "Released Student Loan"). The release of the Indenture Trustee's security
interest in any Pledged Student Loans pursuant to this Section 1.04 shall be
subject to the following conditions precedent:

            (i)   before and after giving effect to such release,

                  (A)   there shall not exist any Event of Termination or
            Unmatured Event of Termination;

                  (B)   the Coverage Condition is met;

                  (C)   no Lender is materially and adversely affected by the
            selection made by Issuer of the Released Student Loans in comparison
            to purchasers of Pledged Student Loans from Issuer (through the
            Eligible Lender Trustee) in connection with any asset securitization
            or sale by Issuer occurring during the Revolving Period; and

                  (D)   the Agent shall have determined that the remaining
            Collateral is consistent with a program rated the equivalent of "A2"
            by Moody's as reasonably determined by the Agent using the ratings
            methodology the Agent employs for rating the Note.

                                       6
<PAGE>

            (ii)  on or prior to such release, Issuer shall have delivered a
      Notice of Release to the Indenture Trustee and the Agent, certifying that
      the foregoing conditions described in clause (i) above shall have been
      satisfied in connection therewith, together with a pro forma Coverage
      Condition Certificate demonstrating compliance of the condition described
      in clause (B) above.

            (iii) on or prior to such release, Issuer shall have deposited into
      the Collection Account cash in an amount equal to the outstanding
      Principal Balance of such Released Student Loans, plus accrued and unpaid
      interest thereon (to the extent not previously capitalized), plus any
      Unamortized Premium thereon plus any unreimbursed Monthly Advance with
      respect thereto for application as a repayment of the Total Outstanding
      Advances on such date in accordance with Section 2.03(c).

      SECTION 1.05. Effect of Release. Upon the satisfaction of the foregoing
conditions in accordance with Section 1.04, all right, title and interest of the
Indenture Trustee in, to and under such Pledged Student Loans shall terminate
and revert to Issuer, its successors and assigns, and the right, title and
interest of the Indenture Trustee in such Pledged Student Loans shall thereupon
cease, terminate and become void; and, upon the request of Issuer, its
successors or assigns, and at the cost and expense of Issuer, the Indenture
Trustee shall deliver and, if necessary, execute such UCC-3 financing statements
and releases as are necessary or reasonably requested by Issuer to terminate and
remove of record any documents constituting public notice of the security
interest in such Released Student Loans granted hereunder being released.

      SECTION 1.06. Premium Letter of Credit.

      (a)   Issuance of Premium Letter of Credit. On or prior to the date
hereof, the Letter of Credit Provider shall issue the Premium Letter of Credit
payable to the Agent for the benefit of the Conduit Lenders in an amount equal
to $12,500,000. The expiration date of the Premium Letter of Credit shall be the
Premium Letter of Credit Expiration Date. The Agent may draw upon the Premium
Letter of Credit upon the occurrence and during the continuance of an Event of
Termination in an amount less than or equal to the outstanding obligations of
the Issuer to the Conduit Lenders under the Transaction Documents. Upon any such
draw, the Agent shall pay the amount drawn to the Conduit Lenders for
application as repayment of such obligations. The Premium Letter of Credit shall
be solely for the benefit of the Conduit Lenders and not of their respective
Program Support Providers.

      (b)   Reimbursement Obligation. As more fully set forth in the
Reimbursement Agreement, Issuer agrees unconditionally, irrevocably and
absolutely upon receipt of notice from the Agent or the Letter of Credit
Provider to pay immediately to the Letter of Credit Provider, the amount of each
advance that is drawn under or pursuant to the Premium Letter of Credit (such
obligation of Issuer to reimburse the Letter of Credit Provider for an advance
made under the Premium Letter of Credit being referred to herein as a
"Reimbursement Obligation") pursuant to Section 1.06(a).

                                       7
<PAGE>

      SECTION 1.07. Extension of the Facility Termination Date.

      (a)   The Issuer, not more than forty-five (45) days before the date set
forth in clause (a) of the definition of Facility Termination Date (the
"Committed Lender Termination Date"), may request that the Committed Lenders
extend the Committed Lender Termination Date by giving the Agent notice of such
request. The Agent shall promptly notify the Committed Lenders of the Agent's
receipt of such request, and each Committed Lender shall, not earlier than
thirty (30) or later than fifteen (15) days before the Committed Lender
Termination Date, notify the Agent whether or not it consents to such extension;
provided, that if any Committed Lender fails to give such notice it shall be
deemed not to have consented to such extension. Consent to any extension
requested by the Issuer may be given or withheld in the sole and absolute
discretion of each Committed Lender. Upon receipt of consent by a Committed
Lender to an extension, the Agent will promptly notify the Issuer thereof, and
effective as of the Committed Lender Termination Date the Committed Lender
Termination Date then in effect shall be extended to the date specified by the
Agent in its sole discretion (but in no event to a date that is more than 364
days after the Committed Lender Termination Date then in effect, or if such day
is not a Business Day, the next preceding Business Day). The Agent will promptly
give the Issuer notice of any failure of any Committed Lender to consent to any
requested extension of the Committed Lender Termination Date (each Committed
Lender which has declined or has been deemed to have declined to renew its
commitment hereunder, a "Non-Renewing Committed Lender").

      (b)   The Agent may declare, to the extent of the unused Program Limit,
that any Non-Renewing Committed Lender's Commitment to make Advances shall
automatically terminate on a date agreed upon by the Agent and the Issuer. Upon
the termination of any Non-Renewing Committed Lender's Commitment to make
Advances pursuant to the preceding sentence, the Program Limit, to the extent
the Non-Renewing Committed Lender's Commitment is not assigned as provided in
Section 1.07(c), shall be reduced in an amount equal to the Commitment of such
Non-Renewing Committed Lender immediately prior to the termination of such
Commitment.

      (c)   Notwithstanding Section 1.07(b), except following the occurrence of
an Event of Termination, the Issuer, with the consent of the Agent, may arrange
for one or more banks (which may include any Committed Lender) the short-term
unsecured debt of which is rated at least equal to the then existing ratings of
the Promissory Notes issued by the Conduit Lenders, to assume all or part of the
Commitment of a Non-Renewing Committed Lender; provided, that each such
assignment satisfies the requirements of Section 10.01 hereof; provided,
further, that the Issuer shall have arranged for such assumption for all
Non-Renewing Committed Lenders on a pro rata basis. If a bank is willing to
assume all or a part of the Non-Renewing Committed Lender's Commitment, then
such bank, the Non-Renewing Committed Lender, the Issuer and the Agent will
promptly evidence such assumption and assignment pursuant to Section 10.03.

                                       8
<PAGE>

                                   ARTICLE II

                                      NOTE

      SECTION 2.01. Note. The Advances shall be evidenced by a promissory note
(as from time to time supplemented, extended, amended or replaced, the "Note"),
substantially in the form set forth in Exhibit 2.01, with appropriate
insertions, dated the Closing Date, payable to the order of the Agent, for the
benefit of the Lenders, in the maximum principal amount of the Program Limit
(or, if less, in the aggregate unpaid principal amount of all of the Advances)
on the Maturity Date or such other date as is specified herein. Principal of the
Advances shall be paid from time to time as set forth in Sections 2.03 and 3.03.
The Agent shall record in its records, or at its option on the schedule attached
to the Note, the date and amount of each Advance made hereunder, the interest
rate with respect thereto, each repayment thereof, and the other information
provided for thereon. The aggregate unpaid principal amount so recorded shall be
rebuttable presumptive evidence of the principal amount owing and unpaid on the
Note. The failure so to record any such information or any error in so recording
any such information shall not, however, limit or otherwise affect the actual
obligations of Issuer hereunder or under the Note to repay the principal amount
of all Advances, together with all interest accruing thereon, as set forth in
this Agreement.

      SECTION 2.02. Interest on Advances.

      (a)   Interest Rates. Each Advance shall accrue interest during each
Settlement Period at the following rates, which interest shall be payable as set
forth in paragraph (b) below:

            (i)   at all times while the making or maintenance of such Advance
      (or the applicable portion thereof) by a Conduit Lender is funded by the
      issuance of Promissory Notes, the Promissory Note Rate for such Settlement
      Period; and

            (ii)  at all times while the making or maintenance of such Advance
      (or the applicable portion thereof) by a Conduit Lender is funded other
      than by the issuance of Promissory Notes or is funded by the Committed
      Lenders, 1.00% per annum over the Eurodollar Rate, or if the Eurodollar
      Rate is not available, the Alternate Base Rate;

provided, however, that to the extent that the Eurodollar Rate is selected to
apply to an Advance but such Advance is made with less than two days prior
notice, such Advance shall accrue interest at the Alternate Base Rate; and
provided further that for any day while an Event of Termination or an Unmatured
Event of Termination exists the rate of interest on each Advance shall be an
interest rate equal to 2.00% per annum above the Alternate Base Rate in effect
on such day.

      The interest rate on any Advance bearing interest at the Alternate Base
Rate shall change simultaneously with each change in the Alternate Base Rate.

      (b)   Interest Settlement Dates. Interest accrued on each Advance shall be
paid on each of:

            (i)   the Maturity Date;

                                       9
<PAGE>

            (ii)  each Settlement Date;

            (iii) the date of any prepayment, in whole or in part, of the
      outstanding principal of such Advance pursuant to Section 2.03(b) or
      Section 2.03(c) to the extent of the amount being prepaid; and

            (iv)  the date on which any Advance is accelerated pursuant to
      Section 8.02.

      SECTION 2.03. Repayments and Prepayments. Issuer shall repay in full the
unpaid principal amount of each Advance on the earlier to occur of (i) the date
such amount is declared to be accelerated pursuant to Section 8.02 or (ii) the
Maturity Date. Prior thereto, Issuer:

      (a)   may, from time to time on any Settlement Date with respect to any
Advance, make a prepayment, in whole or in part, of the outstanding principal
amount of any such Advance; provided, however, that

            (i)   all such voluntary prepayments shall require at least two
      Business Days' (but no more than five Business Days') prior written notice
      to the Agent; and

            (ii)  all such voluntary partial prepayments shall be in a minimum
      amount of $1,000,000 and in integral multiples of $500,000 or in an amount
      equal to the remaining amount outstanding;

      (b)   shall, on each date when any reduction in the Program Limit becomes
effective pursuant to Section 2.05, make a prepayment of the Advances in an
amount equal to the excess, if any, of the aggregate outstanding principal
amount of the Advances over the Program Limit as so reduced;

      (c)   shall, (i) to the extent (A) there is a Reassignment of any Pledged
Student Loans pursuant to Section 6.02 or (B) the Master Servicer repurchases a
Pledged Student Loan pursuant to Section 12.05, in either case, prepay the
principal amount of the Advances in an amount equal to the principal portion of
the Reassignment Amount or the Servicer Repurchase Amount, as applicable,
therefor on such date and (ii) to the extent there is a release of Collateral
pursuant to Section 1.04 or a withdrawal from the Collection Account pursuant to
Section 3.04(b), prepay the principal balance of the Advances in the amount set
forth in Section 1.04(iii) or Section 3.04(b) as applicable;

      (d)   shall, immediately upon the date on which any Advance is declared to
be accelerated pursuant to Section 8.02, repay the amount of the Total
Outstanding Advances.

      Each such prepayment shall be subject to the payment of any amounts
required by Section 4.03 resulting from a prepayment or payment of an Advance
prior to the Settlement Date with respect thereto.

      SECTION 2.04. General Procedures. No outstanding principal of an Advance
shall be considered reduced by any allocation, setting aside or distribution of
any portion of Collections unless such Collections shall have been actually
delivered to the Agent for the purpose of paying such principal. No principal or
interest shall be considered paid by any distribution of any

                                       10
<PAGE>

portion of Collections if at any time such distribution is rescinded or must
otherwise be returned for any reason. No provision of this Agreement shall
require the payment or permit the collection of interest in excess of the
maximum permitted by applicable law.

      SECTION 2.05. Changes in Program Limit

      (a)   Reduction in Program Limit. The unused portion of the Program Limit
may be decreased by an amount of $10,000,000 or any integral multiple of
$1,000,000 in excess thereof upon 30 days' prior written notice by Issuer to the
Agent; provided the Program Limit shall in no event be less than $100,000,000.

      (b)   Increases in Program Limit. From time to time, the Issuer may
request that the Agent and the Lenders consent to increases in the Program Limit
in an amount equal to $50,000,000 or any integral multiple of $5,000,000 in
excess thereof by providing a written request therefor at least 30 days' prior
to the proposed date of such increase to the Agent and each of the Lenders.
Neither the Agent nor any of the Lenders shall be obligated in any manner to
approve any such increase and any such increase shall be subject to such terms
and conditions as are acceptable to the Agent and each of the Lenders agreeing
to increase their Program Limits in their sole discretion (including, without
limitation, satisfaction of conditions precedents of the type described in
Section 5.01 hereof).

      SECTION 2.06. Characterization of Note. Issuer, the Agent and each Lender
agree to treat the Note for federal, state and local income and franchise tax
purposes, and for book purposes, as indebtedness only of Issuer.

      SECTION 2.07. Taxes. (a) All payments made by the Issuer under this
Agreement shall be made free and clear of, and without deduction or withholding
for or on account of, any present or future income, stamp or other taxes,
levies, imposts, duties, charges, fees, deductions or withholdings, now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority, excluding net income taxes and franchise taxes (imposed in lieu of
net income taxes) imposed on the Agent or any Lender as a result of a present or
former connection between the Agent or such Lender and the jurisdiction of the
Governmental Authority imposing such tax or any political subdivision or taxing
authority thereof or therein (other than any such connection arising solely from
the Agent or such Lender having executed, delivered or performed its obligations
or received a payment under, or enforced, this Agreement or any other Loan
Document) (collectively, the "Excluded Taxes"). If any such non-excluded taxes,
levies, imposts, duties, charges, fees, deductions or withholdings
("Non-Excluded Taxes") or Other Taxes are required to be withheld from any
amounts payable to the Agent or any Lender hereunder, the amounts so payable to
the Agent or such Lender shall be increased to the extent necessary to yield to
the Agent or such Lender (after payment of all Non-Excluded Taxes and Other
Taxes) interest or any such other amounts payable hereunder at the rates or in
the amounts specified in this Agreement; provided, however, that the Issuer
shall not be required to increase any such amounts payable to any Lender with
respect to any Non-Excluded Taxes that are United States withholding taxes
imposed on amounts payable to such Lender at the time such Lender becomes a
party to this Agreement, except to the extent that such Lender's assignor (if
any) was entitled, at the time of the assignment, to receive additional amounts
from the Issuer with respect to such Non-Excluded Taxes pursuant to this
paragraph.

                                       11
<PAGE>

      (b)   In addition, the Issuer shall pay to the relevant Governmental
Authority in accordance with applicable law all taxes, levies, imposts,
deductions, charges, assessments or fees of any kind (including but not limited
to any current or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies, but excluding Excluded Taxes) imposed
upon the Agent or such Lender that arises from any payment made hereunder or
from the execution, delivery, or registration of or otherwise similarly with
respect to, this Agreement ("Other Taxes").

      (c)   Whenever any Non-Excluded Taxes or Other Taxes are payable by the
Issuer, within thirty (30) days thereafter the Issuer shall send to the Agent
for its own account or for the account of the Agent or relevant Lender, as the
case may be, a certified copy of an original official receipt received by the
Issuer showing payment thereof. The Issuer agrees to indemnify the Agent and
each Lender from and against the full amount of the Non-Excluded Taxes and Other
Taxes arising out of this Agreement (whether directly or indirectly) imposed
upon or paid by the Agent or such Lender and any liability (including penalties,
interest, and expenses arising with respect thereto), whether or not such
Non-Excluded Taxes or Other Taxes were correctly or legally asserted by the
relevant Governmental Authority.

      (d)   Each Lender (or transferee) that is not a "U.S. Person" as defined
in section 7701(a)(30) of the Code (a "Non-U.S. Lender") shall deliver to the
Issuer and the Agent two copies of either U.S. Internal Revenue Service form
W-8BEN or form W-8ECI, or, in the case of a Non-U.S. Lender claiming exemption
from the withholding of U.S. federal income tax under Section 871(h) or 881(c)
of the Code with respect to payments of "portfolio interest", both a form W-8BEN
and a certificate representing that such Lender is not (i) a "bank" for purposes
of Section 881(c) of the Code, (ii) a ten-percent shareholder of the Issuer
(within the meaning of Section 871(h)(3)(B) of the Code) or (iii) a controlled
foreign corporation related to the Issuer (within the meaning of Section
864(d)(4) of the Code), or any subsequent versions thereof or successors
thereto, in all cases properly completed and duly executed by such Non-U.S.
Lender, claiming complete exemption from, withholding of U.S. federal income tax
on all payments by the Issuer under this Agreement. Such forms shall be
delivered by each Non-U.S. Lender at least (5) five Business Days before the
date of the initial payment to be made pursuant to this Agreement by the Issuer
to such Lender. In addition, each Non-U.S. Lender shall deliver such forms
promptly upon the obsolescence or invalidity of any form previously delivered by
such Non-U.S. Lender. Each Non-U.S. Lender shall promptly notify the Issuer at
any time it determines that it is no longer in a position to provide any
previously delivered certificate to the Issuer (or any other form of
certification adopted by the U.S. taxing authorities for such purpose).
Notwithstanding any other provision in this paragraph, a Non-U.S. Lender shall
not be required to deliver any subsequent form pursuant to this paragraph that
such Non-U.S. Lender is not legally able to deliver.

      (e)   A Lender which is entitled to an exemption from or reduction of
non-U.S. withholding tax under the law of the jurisdiction in which the Issuer
is located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Issuer (with a copy to the
Agent), at the time or times prescribed by the applicable law or reasonably
requested by the Issuer, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate, provided that such Lender is legally entitled
to complete, execute and deliver

                                       12
<PAGE>

such documentation and in such Lender's judgment such completion, execution or
submission would not materially prejudice the legal position of such Lender.

      (f)   In cases in which an Issuer makes a payment under this Agreement to
a U.S. Person with knowledge that such U.S. Person is acting as an agent for a
foreign person, the Issuer will not treat such payment as being made to a U.S.
Person for purposes of Treas. Reg. Section 1.1441-1(b)(2)(ii) (or a successor
provision) without the express written consent of such U.S. Person.

      (g)   The agreements in this Section shall survive the termination of this
Agreement and the payment of all amounts payable hereunder.

                                   ARTICLE III

                                   SETTLEMENTS

      SECTION 3.01. Accounts; Investments by Indenture Trustee.

      (a)   Accounts. On or before the first Borrowing Date, the Indenture
Trustee shall establish, for the benefit of the Lenders to the extent of its
interests therein as provided herein, the Disbursement Account, the Collection
Account, the Reserve Account and the Residual Payments Account, which accounts
shall be segregated accounts maintained at a Qualified Institution selected by
the Issuer and approved by the Agent. Each such Account shall be subject to the
sole dominion and control (as defined in Section 8-106 of the UCC) of the
Indenture Trustee and neither the Issuer nor any Affiliate of the Issuer shall
have any withdrawal rights therefrom, except as expressly permitted under this
Agreement and the Residual Payments Account Control Agreement with respect to
the Residual Payments Account. The Eligible Investments and funds in each such
Account shall be deemed "financial assets" as defined in Section 8-102 of the
UCC. In furtherance of the foregoing, the Issuer and the Indenture Trustee agree
to enter into the Account Control Agreement with respect to each such Account as
of the date hereof.

      Subject to the further provisions of this Section 3.01, the Indenture
Trustee shall, upon receipt, deposit into such Accounts all amounts received by
it which are required to be deposited therein in accordance with the provisions
hereof. All such amounts and all investments made with such amounts, including
all income and other gains from such investments, shall be held by the Indenture
Trustee in such Accounts as part of the Collateral as herein provided, subject
to withdrawal by the Indenture Trustee in accordance with, and for the purposes
specified in the provisions of, this Agreement and, with respect to the Residual
Payments Account, subject to withdrawal by CFS or the Issuer in accordance with
the Residual Payments Account Control Agreement.

      (b)   Administration of Payments. Unless otherwise advised by the Agent in
writing or required herein, the Indenture Trustee shall assume that any amount
remitted to it by the Master Servicer, any Sub-Servicer or the Issuer is to be
deposited into the Collection Account pursuant to Section 3.03. The Indenture
Trustee may establish from time to time such deadline or deadlines as it shall
determine are reasonable or necessary in the administration hereof after

                                       13
<PAGE>

which all amounts received or collected by the Indenture Trustee on any day
shall not be deemed to have been received or collected until the next succeeding
Business Day.

      (c)   No Set-Off. Neither the Eligible Lender Trustee nor the Indenture
Trustee shall have any right of set-off against Collections, Accounts, or any
investment therein, whether or not commingled to satisfy any other obligations,
and each of the Eligible Lender Trustee and the Indenture Trustee hereby
irrevocably waives any and all such rights.

      (d)   Investments. Amounts in the Accounts shall be invested and
reinvested by the Indenture Trustee pursuant to an Issuer Order in one or more
Eligible Investments. Subject to the restrictions on the maturity of investments
set forth in Section 3.01(f), each such Issuer Order may authorize the Indenture
Trustee to make the specific Eligible Investments set forth therein, to make
Eligible Investments from time to time consistent with the general instructions
set forth therein, or to make specific Eligible Investments pursuant to
instructions received in writing or by facsimile transmission from the employees
or agents of Issuer identified therein, in each case in such amounts as such
Issuer Order shall specify. All income or other gains from the investment of
moneys deposited in the Accounts shall be deposited by the Indenture Trustee in
the Collection Account upon receipt and shall be deemed to constitute a portion
of the Available Funds for the related Settlement Date. Issuer agrees to report
as its income for financial reporting and tax purposes (to the extent
reportable) all Investment Earnings on amounts in the Accounts. To the extent
that the issuer of any Eligible Investment grants voting rights to its holders,
the Issuer (or, after the occurrence and during the continuance of an Event of
Termination, the Agent) shall be responsible for exercising such voting rights.

      (e)   Investments in the Absence of an Issuer Order; Notice of Uninvested
Cash. In the event that either (i) Issuer shall have failed to give investment
directions to the Indenture Trustee by 11:00 a.m., New York City time, on any
Business Day on which there may be uninvested cash deposited in the Collection
Account, Disbursement Account or Reserve Account or (ii) an Event of Termination
or Unmatured Event of Termination shall have occurred and be continuing, then
the Indenture Trustee shall invest such funds in Eligible Investments as
directed by the Agent by 1:00 p.m., New York City time, on such Business Day (to
the extent such investments are then available) or, if no such directions are
given by such time, in Eligible Investments described in clause (a) of the
definition thereof. All Eligible Investments made by the Indenture Trustee shall
mature no later than the maturity date therefor permitted by Section 3.01(f).

      (f)   Maturity of Eligible Investments. Unless otherwise specified by the
Agent in writing, Eligible Investments shall mature no later than the Business
Day prior to each Settlement Date in an amount sufficient to pay all interest
and fees hereunder and under the other Transaction Documents to which Issuer is
a party due on such Settlement Date. The Issuer hereby agrees to deposit into
the Collection Account an amount equal to any breakage costs that are deducted
from the proceeds of Eligible Investments in the event that any Eligible
Investment is needed to pay amounts due on a Settlement Date and had a maturity
date later than the Business Day prior to such Settlement Date.

      (g)   Form of Investment. Any investment of any funds in the Collection
Account, Disbursement Account and Reserve Account shall be made under the
following terms and conditions:

                                       14
<PAGE>

            (i)   each such investment shall be made in the name of the
      Indenture Trustee, for the benefit of Issuer and the Secured Parties (to
      the extent of their respective interests therein), or in the name of a
      nominee of the Indenture Trustee;

            (ii)  any certificate or other instrument evidencing such investment
      shall be delivered directly to the Indenture Trustee (and endorsed to the
      Indenture Trustee in blank), and the Indenture Trustee shall have sole
      possession of such instrument, and all income on such investment;

            (iii) all other requirements set forth on Exhibit 3.01(g) are met;
      and

            (iv)  the Indenture Trustee for the benefit of the Secured Parties
      shall have a first priority perfected security interest in such
      investment, perfected by control to the extent permitted under Article 9
      of the UCC.

      (h)   Indenture Trustee Not Liable. The Indenture Trustee shall not in any
way be held liable by reason of any insufficiency in the Accounts resulting from
losses on investments made in accordance with the provisions of this Section
3.01 (but the institution serving as Indenture Trustee shall at all times remain
liable for its own debt obligations, if any, constituting part of such
investments) except for gross negligence or intentional misconduct.

      SECTION 3.02. Collection of Moneys. If at any time Issuer and/or the
Master Servicer shall receive any Collections on or in respect of any Pledged
Student Loan (including any Guarantee Payment, Interest Subsidy Payment or
Special Allowance Payment), it shall hold such Collections for the benefit of
the Indenture Trustee (for the benefit of the Secured Parties), shall segregate
such payment from the other property of Issuer and shall, within two Business
Days, deliver such payment in the form received (endorsed as necessary for
transfer) to the Indenture Trustee for deposit in the Collection Account in
accordance with Section

      SECTION 3.03. Collection Account.

      (a)   Deposits. Each of Issuer and the Master Servicer shall remit or
cause to be remitted all Collections received by either of them to the
Collection Account no later than the close of business on the second Business
Day after receipt thereof. Issuer and the Master Servicer shall cause each
Sub-Servicer to remit all Collections received by it to the Collection Account
in accordance with the applicable Sub-Servicing Agreement but, notwithstanding
the terms of any Sub-Servicing Agreement, (i) with respect to each Affiliated
Servicer, no later than the close of business on the second Business Day after
such Affiliated Servicer's receipt of such Collections and (ii) with respect to
Third Party Servicers, no less frequently than three times per month and at
least once every fifteen days. Master Servicer also shall, in its sole
discretion, deposit into the Collection Account the amount of any Monthly
Advances determined to be made by Master Servicer pursuant to Section 3.05(e) no
later than the related Settlement Date. In addition, Issuer shall deposit to the
Collection Account no later than the close of business on the date payable
pursuant thereto, the aggregate Reassignment Amounts payable by Issuer pursuant
to Section 6.02. The Indenture Trustee shall also remit to the Collection
Account any and all funds in the Disbursement Account for which no wire
transfer, ACH payment or check has been issued within ten Business Days of
receipt of such funds in the Disbursement Account and have

                                       15
<PAGE>

not otherwise been distributed in accordance with Section 1.02(b). The Indenture
Trustee shall deposit into the Collection Account on the date of receipt thereof
all Collections received by the Indenture Trustee from the Master Servicer,
Issuer, any Sub-Servicer, any affiliate of Issuer or otherwise. Pursuant to
Section 1.03(d), all proceeds of the Demand Note shall be deposited in the
Collection Account.

      (b)   Settlement Date Procedures. Amounts on deposit on any Settlement
Date in the Collection Account representing Collections, Reserve Account
Withdrawal Amounts transferred from the Reserve Account pursuant to Section
3.04(b), Advances made pursuant to Section 1.01(c) and other Available Funds
(net of any amounts reimbursable to Master Servicer in respect of Monthly
Advances pursuant to Section 3.05(e), which shall be paid to Master Servicer)
shall be withdrawn from the Collection Account by the Indenture Trustee at the
written direction of the Issuer (or, upon receipt of written notice from the
Agent stating that the Indenture Trustee may no longer rely on the Issuer's
directions, solely at the written direction of the Agent) on such Settlement
Date, in the amounts required, and applied in the following order of priority:

      first, any indemnification amounts payable under the Joint Sharing
Agreement pursuant to Section 3.07;

      second, an amount equal to the unpaid Monthly Rebate Fee for such
Settlement Period plus any Monthly Rebate Fees not paid when due on any prior
Settlement Date shall be set aside in the Collection Account and paid to the
Department on such Settlement Date but only to the extent the Department has not
deducted or netted the amount of such Monthly Rebate Fees from the Interest
Subsidy Payments or Special Allowance Payments payable by the Department with
respect to the Pledged Student Loans;

      third, an amount equal to the Master Servicer's Fees for the Pledged
Student Loans with respect to such Settlement Period plus any Master Servicer's
Fees not paid when due on any prior Settlement Date shall be set aside in the
Collection Account and paid to the Master Servicer for the benefit of the Master
Servicer and the Sub-Servicers, as applicable, on such Settlement Date in the
amount provided in Section 12.18 of this Agreement, provided that following the
occurrence of an Event of Termination, the Indenture Trustee may and at the
request of the Agent shall pay the portion of the Master Servicer's Fees
consisting of sub-servicing fees directly to the Sub-Servicers (rather than
through the Master Servicer);

      fourth, an amount equal to the Eligible Lender Trustee's Fees with respect
to such Settlement Period, plus any Eligible Lender Trustee's Fees not paid when
due on any prior Settlement Date and all expenses incurred by the Eligible
Lender Trustee in connection with the enforcement of this Agreement shall be set
aside in the Collection Account and paid to the Eligible Lender Trustee on such
Settlement Date;

      fifth, an amount equal to the Indenture Trustee's Fees with respect to
such Settlement Period, plus any Indenture Trustee's Fees not paid when due on
any prior Settlement Date and all expenses incurred by the Indenture Trustee in
connection with the enforcement of this Agreement shall be set aside in the
Collection Account and paid to the Indenture Trustee on such Settlement Date;

                                       16
<PAGE>

      sixth, an amount equal to the Letter of Credit Provider's Fees with
respect to such Settlement Period, plus any Letter of Credit Provider's Fees not
paid when due on any prior Settlement Date shall be set aside in the Collection
Account and paid to the Letter of Credit Provider on such Settlement Date;

      seventh, an amount equal to Administrative Expenses with respect to such
Settlement Period, plus any Administrative Expenses not paid when due on any
prior Settlement Date shall be set aside in the Collection Account and paid to
the party to which such amounts are owed or to the Issuer for payment to such
party on such Settlement Date;

      eighth, an amount equal to the interest accrued (or to be accrued) in
respect of all Advances during such Settlement Period, plus any interest on the
Advances not paid when due on any prior Settlement Date and interest thereon
shall be set aside in the Collection Account and paid to the Agent for the
account of the Lenders on such Settlement Date;

      ninth, an amount equal to all Fees accrued (or to be accrued) during such
Settlement Period (that have not been paid previously pursuant to this Section
3.03(b)), plus any Fees not paid when due on any prior Settlement Date, together
with interest thereon, shall be set aside in the Collection Account and paid to
the Agent for the account of Lenders or any other intended recipient of such
Fees on such Settlement Date;

      tenth, during the Liquidation Period, to the Agent on each Settlement Date
for the account of the Lenders and applied to the outstanding principal amount
of the Advances;

      eleventh, an amount equal to any other amounts due and owing to the
Indenture Trustee, Eligible Lender Trustee, Agent, any Affected Party, any
Indemnified Party or the Lenders pursuant to this Agreement shall be set aside
in the Collection Account and paid to the Indenture Trustee, Eligible Lender
Trustee, Agent, such Affected Party, such Indemnified Party or the Lenders, as
the case may be, when due in accordance with this Agreement;

      twelfth, during the Revolving Period, to the Indenture Trustee for deposit
to the Reserve Account in an amount equal the amount by which the balance in the
Reserve Account is less than the Reserve Account Minimum Balance;

      thirteenth, an amount equal to any other amounts due and owing to the
Letter of Credit Provider pursuant to this Agreement or the Premium Letter of
Credit shall be set aside in the Collection Account and paid to the Letter of
Credit Provider when due;

      fourteenth, an amount equal to the Administrator's Fees for the Pledged
Student Loans with respect to such Settlement Period plus any Administrator's
Fees not paid when due on any prior Settlement Date shall be set aside in the
Collection Account and paid to the Administrator; and

      fifteenth, during the Revolving Period, in an amount, if any, directed by
Issuer, to the Agent for the account of the Lenders and applied to the
outstanding principal amount of the Advances.

                                       17
<PAGE>

      (c)   Use of Funds. The Indenture Trustee may withdraw funds from the
Collection Account for the purchase of Eligible Student Loans by the Issuer
pursuant to the CFO Purchase and Sale Agreement on and after any Settlement Date
only to the extent there are Available Funds remaining in the Collection Account
after application of clauses first through fourteenth of Section 3.03(b) on such
Settlement Date; provided, however, that no Purchase Termination Event shall
have occurred with respect to the Originator of such Eligible Student Loans. Any
Student Loans purchased or originated by Issuer with funds from the Collection
Account shall automatically become Pledged Student Loans.

      (d)   Releases of Collateral from Collection Account. On the date of any
release of Collateral pursuant to Section 1.04 hereof, at Issuer's request, the
Indenture Trustee may withdraw funds from the Collection Account and may release
its security interest on Pledged Student Loans and Related Security purchased
with funds from the Collection Account under Section 3.03(c) so long as the
Asset Coverage Ratio after giving effect to such release is at least equal to
the greater of (i) a percentage equal to the Asset Coverage Ratio as listed on
the Coverage Condition Certificate most recently received by the Agent and (ii)
a percentage equal to the sum of (A) 100.1% plus (B) an amount equal to (1) a
percentage equal to the average of the Excess Spread for each month since the
later to have occurred of (x) the Closing Date or (y) the date of the last
Take-Out Securitization multiplied by (2) the number of days that have elapsed
since the later to have occurred of (x) the Closing Date or (y) the date of the
last Take-Out Securitization divided by (3) 365.

      (e)   Final Payout Date. On the Final Payout Date, any funds remaining in
the Collection Account after giving effect to the provisions of Section 3.03
shall be paid to the Issuer.

      SECTION 3.04. Reserve Account.

      (a)   Establishment of Reserve Account. On or prior to the initial
Borrowing Date, Issuer shall deposit into the Reserve Account an amount equal to
the Reserve Account Minimum Balance. Thereafter, Issuer shall deposit to the
Reserve Account (i) all amounts required to be deposited therein pursuant to
clause twelfth of Section 3.03(b), (ii) all origination and other up-front fees
paid by any Obligors or related Persons with respect to any Private Loans that
do not have the benefit of a Private Loan Guarantee Agreement and (iii) all
Collections received with respect to Pledged Student Loans that constitute
Private Loans that have become Defaulted Student Loans.

      (b)   Withdrawals for Defaulted Student Loans. On the Business Day
following the day on which a Pledged Student Loan that constitutes a Private
Loan that does not have the benefit of a Private Loan Guarantee Agreement has
become a Defaulted Student Loan, as set forth in a notice from the Master
Servicer, or on the day of receipt of such notice if received after a Pledged
Student Loan that constitutes a Private Loan has become a Defaulted Student
Loan, the Indenture Trustee shall transfer from the Reserve Account to the
Collection Account the lesser of (A) the Principal Balance of such Defaulted
Student Loan and all accrued and unpaid interest thereon (to the extent not
previously capitalized) and (B) the amount on deposit in the Reserve Account
consisting of origination and other up-front fees paid by any Obligors or
related Persons with respect to Private Loans that do not have the benefit of a
Private Loan Guarantee

                                       18
<PAGE>

Agreement (such amount, the "Reserve Account Withdrawal Amount") and shall
deposit such Reserve Account Withdrawal Amount in the Collection Account for
application pursuant to the provisions of Section 3.03(b).

      (c)   Withdrawals from Reserve Account. On each Settlement Date, the
Indenture Trustee shall withdraw from the Reserve Account the amounts on deposit
therein and treat such amounts as Collections and apply them as set forth in
Section 3.03(b) to the extent such withdrawal is necessary to pay the amounts
set forth in Section 3.03(b).

      (d)   Distribution on Final Payout Date. On the Final Payout Date, amounts
remaining on deposit in the Reserve Account shall be deposited into the
Collection Account and distributed pursuant to the provisions of Section 3.03.

      SECTION 3.05. Payments and Computations, Etc.; Monthly Advances.

      (a)   Payments. All amounts to be paid or deposited by the Indenture
Trustee or Issuer to the Agent or Lenders hereunder shall be paid or deposited
in accordance with the terms hereof no later than 11:00 a.m. (New York City
time) on the day when due in lawful money of the United States of America in
same day funds, to the Agent's Account.

      (b)   Late Payments. Issuer shall, to the extent permitted by law and
subject to Section 2.04, pay to Lenders interest on all amounts not paid or
deposited by Issuer when due hereunder at 2.00% per annum above the interest
rate otherwise applicable to such amount pursuant to this Agreement or, if no
interest rate is otherwise applicable to such amount pursuant to this Agreement,
at 2.00% per annum above the Alternate Base Rate, payable on demand.

      (c)   Method of Computation. All computations of interest, any fees
payable under Section 4.01 and any other fees payable by Issuer to Lenders or
the Agent in connection with Borrowings hereunder shall be calculated by the
Agent on the basis of a year of 360 days (or in the case of interest calculated
by reference to the Alternate Base Rate, 365 or 366 days, as applicable), for
actual days elapsed.

      (d)   Indenture Trustee's Reliance. In making the deposits, distributions
and calculations required to be made by it hereunder, the Indenture Trustee
shall be entitled to rely, in good faith, on information supplied to the
Indenture Trustee by the Agent and, prior to the written notice by the Agent to
the contrary, the Issuer. The Issuer (or, if the Agent has notified the
Indenture Trustee not to follow the Issuer's instructions, the Agent) agrees to
provide to the Indenture Trustee written instructions with respect to such
distributions by 3:00 p.m. (New York City time) at least one Business Day prior
to each Settlement Date. If the Indenture Trustee has not received such
instructions by such time, the Indenture Trustee shall immediately notify the
Agent. The Indenture Trustee shall only make distributions hereunder pursuant to
the terms hereof or, if the express terms do not conflict therewith, upon the
written instructions of the Agent. The Indenture Trustee shall be fully
protected in making disbursements hereunder in accordance with the written
instructions of the Agent or the Issuer delivered in accordance with this
Agreement.

      (e)   Monthly Advances. If Issuer or the Eligible Lender Trustee (or a
Servicer on its behalf) has applied for a Guarantee Payment from a Guarantor or
an Interest Subsidy Payment or

                                       19
<PAGE>

a Special Allowance Payment from the Department, and Issuer, the Eligible Lender
Trustee or the Master Servicer, as the case may be, has not received the related
payment prior to the end of the Settlement Period immediately preceding the
current Settlement Date, Master Servicer may, no later than the related
Settlement Date, in its sole discretion, deposit into the Collection Account an
amount up to the amount of such payments applied but not received (such deposits
by Master Servicer are referred to herein as "Monthly Advances"). Master
Servicer shall have no obligation, legal or otherwise, to make any Monthly
Advance, and the making of or decision to make a particular Monthly Advance
shall not create any obligation on Master Servicer, legal or otherwise, to make
any future Monthly Advances. If after making a Monthly Advance, Issuer (or the
Eligible Lender Trustee or the Master Servicer on its behalf) receives the
Guarantee Payment, Special Allowance Payment or Interest Subsidy Payment for
which such Monthly Advance was made, then notwithstanding the order set forth in
Section 3.03(b) hereof, Master Servicer shall be reimbursed immediately from
such Guarantee Payment, Special Allowance Payment or Interest Subsidy Payment,
as the case may be, on deposit in the Collection Account up to the amount of the
related Monthly Advance.

      SECTION 3.06. Disbursement Account.

      (a)   Establishment of Disbursement Account. On the initial Borrowing Date
and on each Borrowing Date thereafter, funds from the Lenders' Advances shall be
deposited into the Disbursement Account by the Agent in accordance with Section
1.02(b).

      (b)   Withdrawals from Disbursement Account. The Master Servicer (or, if
the Agent has notified the Indenture Trustee not to follow the Master Servicer's
directions, the Agent) shall direct the Indenture Trustee as to the disbursement
of all funds on deposit in the Disbursement Account; provided, that any funds
disbursed from the Disbursement Account shall be disbursed directly to the
Person entitled to such funds (which (1) in the case of the acquisition of
Pledged Student Loans, will be the seller or other transferor thereof and (2) in
the case of the origination of Pledged Student Loans, will be the Eligible
Lender Trustee or other entity through which the proceeds of such loans are to
be disbursed) or, to the extent the Issuer has previously paid such amounts and
is seeking reimbursement therefor, to the Issuer upon the Issuer furnishing the
Indenture Trustee with satisfactory evidence of such payment. The withdrawal of
funds from the Disbursement Account shall be subject to each of the conditions
precedent set forth in Section 5.02 of this Agreement (unless expressly waived
by the Agent in writing). All funds not disbursed from the Disbursement Account
within ten Business Days after they are deposited into the Disbursement Account
shall be remitted by the Indenture Trustee to the Collection Account.

      (c)   Distribution on Final Payout Date. On the Final Payout Date, amounts
remaining on deposit in the Disbursement Account shall be remitted to the
Collection Account for distribution in accordance with the provisions of Section
3.03(b).

      SECTION 3.07. Payment Under Joint Sharing Agreement. The Indenture Trustee
and Eligible Lender Trustee shall, upon receipt of any notice that an amount is
payable from the Collateral pursuant to the indemnification provisions of the
Joint Sharing Agreement, immediately furnish a copy thereof to the Issuer, the
Master Servicer, the Sub-Servicers and the Agent. Thereafter, the Issuer, the
Master Servicer, the Sub-Servicers, the Indenture Trustee and the Eligible
Lender Trustee shall promptly determine if, and the extent to which, such amount
is

                                       20
<PAGE>

so payable and, following the determination of such amount, if any, the
Indenture Trustee shall, on the next succeeding Settlement Date, pay such amount
to the appropriate parties in accordance with clause first of Section 3.03(b).

                                   ARTICLE IV

                            FEES AND YIELD PROTECTION

      SECTION 4.01. Fees. Issuer shall pay to the Agent for the account of CNAI,
the Agent and the Lenders certain fees in the amounts and on the date set forth
in the letter agreement between Issuer and the Agent dated July 23, 2003 (as
amended, restated, supplemented or otherwise modified from time to time, the
"Program Fee Letter"). Issuer shall also pay (i) to the Indenture Trustee for
the account of the Indenture Trustee the Indenture Trustee's Fees on the date
set forth in the letter agreement (the "Indenture Trustee Fee Letter") between
Issuer and the Indenture Trustee dated July 23, 2003, (ii) to the Eligible
Lender Trustee for the account of the Eligible Lender Trustee certain Fees
payable to the Eligible Lender Trustee on the dates and in the amounts set forth
in the letter agreement (as amended, restated, supplemented or otherwise
modified from time to time, the "Eligible Lender Trustee Fee Letter") between
Issuer and the Eligible Lender Trustee dated July 23, 2003, and (iii) to the
Letter of Credit Provider, for the account of the Letter of Credit Provider
certain Fees payable to the Letter of Credit Provider on the dates and in the
amounts set forth in the letter agreement ( as amended, restated, supplemented
or otherwise modified from time to time, the "Letter of Credit Provider Fee
Letter") dated July 23, 2003.

      SECTION 4.02. Yield Protection.

      (a)   If any Regulatory Change (including a change to Regulation D)
occurring after the date hereof:

            (A)   shall subject an Affected Party to any Non-Excluded Tax or any
      obligation or right to make Advances or to provide funding therefor;

            (B)   shall impose, modify or deem applicable any reserve
      (including, without limitation, any reserve imposed by the Federal Reserve
      Board, but excluding any reserve included in the determination of interest
      on the Advances), special deposit or similar requirement against assets of
      any Affected Party, deposits or obligations with or for the account of any
      Affected Party or with or for the account of any affiliate (or entity
      deemed by the Federal Reserve Board to be an affiliate) of any Affected
      Party, or credit extended by any Affected Party;

            (C)   shall change the amount of capital maintained or required or
      requested or directed to be maintained by any Affected Party;

            (D)   shall impose any other condition affecting any Advance owned
      or funded in whole or in part by any Affected Party, or its obligations or
      rights, if any, to make Advances or to provide funding therefor; or

                                       21
<PAGE>

            (E)   shall change the rate for, or the manner in which the Federal
      Deposit Insurance Corporation (or a successor thereto) assesses, deposit
      insurance premiums or similar charges;

and the result of any of the foregoing is or would be

            (x)   to increase the cost to or to impose a cost on an Affected
      Party funding or making or maintaining any Advance, or any purchases,
      reinvestments, or loans or other extensions of credit under any Program
      Support Agreement or any commitment of such Affected Party with respect to
      any of the foregoing;

            (y)   to reduce the amount of any sum received or receivable by an
      Affected Party under this Agreement or any other Program Support
      Agreement, or under any Program Support Agreement with respect thereto; or

            (z)   in the sole determination of such Affected Party, to reduce
      the rate of return on the capital of an Affected Party as a consequence of
      its obligations hereunder or under any other Program Support Agreement or
      arising in connection herewith to a level below that which such Affected
      Party could otherwise have achieved;

then within thirty days after demand by such Affected Party, Issuer shall pay
directly to such Affected Party such additional amount or amounts as will
compensate such Affected Party for such additional or increased cost or such
reduction including, without limitation, all interest and penalties thereon or
with respect thereto, and all out of pocket costs and expenses (including the
reasonable fees and expenses of counsel in defending against the same).

      (b)   Each Affected Party will promptly notify Issuer and the Agent of any
event of which it has actual knowledge which will entitle such Affected Party to
compensation pursuant to this Section 4.02; provided, however, no failure to
give or delay in giving such notification shall adversely affect the rights of
any Affected Party to such compensation.

      (c)   In determining any amount provided for or referred to in this
Section 4.02, an Affected Party may use any reasonable averaging and attribution
methods that it (in its sole discretion) shall deem applicable and which it
applies on a consistent basis. Any Affected Party when making a claim under this
Section 4.02 shall submit to Issuer a statement as to such increased cost or
reduced return, which statement shall, in the absence of manifest error, be
conclusive and binding upon Issuer.

      SECTION 4.03. Funding Losses. In the event that any Program Support
Provider or any Lender shall incur any loss or expense (including, without
limitation, any loss or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Program Support
Provider or Lender to make any purchase or maintain any purchase) as a result of
(i) any settlement with respect to any Advance being made on any day other than
the applicable Settlement Date with respect thereto, or (ii) any Borrowing not
being made in accordance with a request therefor under Section 1.02, then,
within 30 days of written notice from the Agent to Issuer, Issuer shall pay to
the Agent for the account of such Program Support Provider or the Lenders, the
amount of such loss or expense (including, without duplication, any related
Termination Fee). Such written notice shall, in the absence of manifest error,
be

                                       22
<PAGE>

conclusive and binding upon Issuer. In addition, in the event that the Issuer
shall make a repayment or prepayment of the principal amount of any Advance that
is funded or maintained by Promissory Notes on any day other than the applicable
Settlement Date with respect to such Advance without giving the notice required
by Section 2.03(a)(i), the Issuer shall pay to the Agent for the account of the
Lenders on such Settlement Date, the Termination Fee with respect to such
Advance.

                                   ARTICLE V

                            CONDITIONS OF BORROWINGS

      SECTION 5.01. Conditions Precedent to Initial Borrowing. The initial
Borrowing is subject to the condition precedent that the Agent (unless otherwise
indicated) shall have received, on or before the date of such Borrowing the
following, each (unless otherwise indicated) dated such date and in form and
substance satisfactory to the Agent and the Lenders:

      (a)   A copy of the resolutions of the Board of Managers of Issuer
approving this Agreement and the other Transaction Documents to which Issuer is
a party to be delivered by it hereunder and the transactions contemplated
hereby, together with a copy of the Limited Liability Company Agreement of
Issuer, each certified by its secretary or assistant secretary;

      (b)   A good standing certificate for Issuer issued by the State of
Delaware and a certificate of qualification to do business in the State of
Virginia issued by the Secretary of State of each such State, as of a recent
date acceptable to the Agent and the Lenders;

      (c)   A certificate of the secretary or assistant secretary of Issuer
certifying the names and true signatures of the officers authorized on its
behalf to sign the Transaction Documents to be delivered by it (on which
certificate the Agent and Lenders may conclusively rely until such time as the
Agent and Lenders shall receive from Issuer a revised certificate meeting the
requirements of this clause):

      (d)   The Certificate of Formation of Issuer, duly certified by the
Secretary of State of Delaware and by the secretary or assistant secretary of
the Issuer, as of a recent date acceptable to the Agent and the Lenders,
together with a copy of the operating agreement of the Issuer, duly certified by
the secretary or assistant secretary of the Issuer;

      (e)   A copy of the resolutions of the Board of Managers of Master
Servicer, each Affiliated Servicer, each Affiliated Originator, CFS and the
Administrator approving this Agreement, the other Transaction Documents to which
such Person, as applicable, is a party to be delivered by it hereunder and the
transactions contemplated hereby, certified by its secretary or assistant
secretary;

      (f)   A good standing certificate for each of Master Servicer, CFS and the
Administrator issued by the State of Virginia and a good standing certificate
for each of CFO and CFS-SunTech Servicing LLC issued by the State of Delaware,
in each case, dated as of a recent date and acceptable to the Agent and the
Lenders;

                                       23
<PAGE>

      (g)   A certificate of the secretary or assistant secretary of CFO,
CFO-SunTech Servicing LLC, CFS and the Administrator certifying the names and
true signatures of the officers authorized on its behalf to sign the Transaction
Documents to be delivered by it (on which certificate the Agent and Lenders may
conclusively rely until such time as the Agent and Lenders shall receive from
Issuer a revised certificate meeting the requirements of this clause):

      (h)   The Certificate of Formation of Master Servicer, CFS and the
Administrator duly certified by the Secretary of State of Virginia and by the
secretary or assistant secretary of the Master Servicer, CFS or the
Administrator, as applicable, and the Certificate of Formation of CFO and
CFS-SunTech Servicing LLC duly certified by the Secretary of State of Delaware
and by the secretary or assistant secretary of CFO or CFS-SunTech Servicing LLC,
as applicable, in each case, dated as of a recent date acceptable to the Agent
and the Lenders, together with a copy of the operating agreement of each such
Person, duly certified by the secretary or assistant secretary of such Person,
as applicable;

      (i)   A certificate of the secretary or assistant secretary of the
Eligible Lender Trustee/Indenture Trustee certifying (A) a copy of the Charter
of the Eligible Lender Trustee/Indenture Trustee certified as of a recent date
by the Office of the Comptroller of Currency (B) a copy of the bylaws of the
Eligible Lender Trustee/Indenture Trustee, (C) a copy of the resolutions of the
board of directors of the Eligible Lender Trustee/Indenture Trustee authorizing
the execution, delivery and performance of each Transaction Document to which it
is a party and (D) the names and true signatures of the officers authorized on
its behalf to sign the Transaction Documents to be delivered by it (on which
certificate the Agent and Lenders may conclusively rely until such time as the
Agent and Lenders shall receive from Issuer a revised certificate meeting the
requirements of this clause);

      (j)   A certificate of an officer of the Eligible Lender Trustee
certifying that each of the Guarantee Agreements and Eligible Lender Trust
Agreements that have been provided to the Agent are true and correct copies
thereof and remain in full force and effect;

      (k)   A copy of the Certificate of Authority of the Eligible Lender
Trustee/Indenture Trustee to Commence Business and of the Certificate of
Fiduciary Powers of the Eligible Lender Trustee/Indenture Trustee duly certified
by the Comptroller of Currency;

      (l)   (i)   Financing statements on Form UCC-1 (A) naming Issuer as the
debtor and the Indenture Trustee, for the benefit of the Secured Parties, as the
secured party, (B) naming the Eligible Lender Trustee as debtor and the
Indenture Trustee, for the benefit of the Secured Parties, as the secured party
(with one statement identifying the Eligible Lender Trustee as a trustee in the
debtor box on Form UCC-1 and a second statement identifying the Eligible Lender
Trustee as trustee in the miscellaneous box on Form UCC-1), (C) naming the
Issuer as debtor in its capacity as settlor of the trust pursuant to the
Eligible Lender Trust Agreement and the Indenture Trustee, for the benefit of
the Secured Parties, as the secured party, (D) naming each Affiliated Originator
as debtor, Issuer as secured party and the Indenture Trustee, as assignee
secured party and (E) other similar instruments or documents, in proper form for
filing in the offices in which filings are necessary or, in the opinion of the
Agent or any Lender, desirable under the UCC or any comparable law of all
appropriate jurisdictions to perfect the Indenture Trustee's security interest
in the Collateral, for the benefit of the Secured Parties and (ii) if

                                       24
<PAGE>

applicable, continuation statements with respect to the financing statements
described in clause (i);

      (m)   A search report as of a recent date acceptable to the Agent and the
Lenders provided in writing to the Agent by Issuer, in a form acceptable to the
Agent and the Lenders, listing all effective financing statements that name
Issuer or Eligible Lender Trustee or CFO as debtor and that are filed in the
jurisdictions in which filings were made pursuant to clause (k) above and in
such other jurisdictions that Agent or any Lender shall reasonably request,
together with copies of such financing statements (none of which shall cover any
Collateral or if so covered, the Agent shall have received duly executed
termination statements with respect thereto);

      (n)   Favorable opinions of counsel to (i) the Issuer, the Master Servicer
and each Affiliated Servicer and, if requested by the Agent or any Lender, each
of the other parties to each Purchase and Sale Agreement, each Sub-Servicing
Agreement and each Eligible Lender Trust Agreement, in each case in form and
substance reasonably satisfactory to the Agent and the Lenders, including
without limitation security interest opinions, a true sale opinion with respect
to transfers under the CFO Purchase and Sale Agreement, and a non-substantive
consolidation opinion with respect to (A) each Affiliated Originator and each
Affiliated Servicer, on the one hand, and (B) the Issuer, on the other hand, and
(ii) the Indenture Trustee and Eligible Lender Trustee in form and substance
acceptable to the Agent;

      (o)   Such powers of attorney as the Agent or any Lender shall reasonably
request to enable the Agent to collect all amounts due under any and all
Collateral;

      (p)   All fees and expenses then due and owing hereunder shall have been
paid in full;

      (q)   The Note, duly executed by Issuer;

      (r)   Copies of each Guarantee Agreement, not previously received by the
Agent, duly executed by the related Guarantor and the Eligible Lender Trustee
and certified by Issuer as being a true and correct copy thereof;

      (s)   Copies of each Sub-Servicing Agreement between the Master Servicer
and any applicable Sub-Servicer (including all amendments thereto), not
previously received by the Agent, duly executed by the parties thereto and
certified by Issuer as being a true and correct copy thereof;

      (t)   A copy of this Agreement and each of the other Transaction Documents
and each other document, instrument, agreement and certificate identified on the
Closing List attached as Exhibit 5.01(q) hereto, if not previously received by
the Agent, in each case duly executed, as applicable, by Issuer, the Master
Servicer each Lender, Agent, Indenture Trustee, Eligible Lender Trustee, the
Letter of Credit Provider and each other party thereto;

      (u)   Such other documents, opinions and certificates as Lenders or the
Agent may reasonably request;

                                       25
<PAGE>

      (v)   Evidence that the Accounts have been established and that on or
prior to the initial Borrowing, the amount on deposit in the Reserve Account is
at least equal to the Reserve Account Minimum Balance; and

      (w)   A Pro-Forma Coverage Condition Certificate, executed by an
authorized officer of the Issuer, showing that (after giving effect to the
initial Borrowing) the Coverage Condition is met;

      (x)   The Indenture Trustee shall have received the executed original of
the Demand Note (delivered by the Issuer in pledge to the Indenture Trustee for
the benefit of the Secured Parties) and the Residual Payments Account Control
Agreement and evidence that the Residual Payments Account has been established.

      By accepting the proceeds of the initial Borrowing Issuer shall be deemed
to have represented and warranted that all of the conditions precedent to the
commencement of the initial Revolving Period have been met.

      SECTION 5.02. Conditions Precedent to All Borrowings. Each Borrowing
(including the initial Borrowing) shall be subject to the further conditions
precedent that on the date of such Borrowing the following statements shall be
true and the Issuer (by accepting the proceeds of such Borrowing) shall be
deemed to have certified that all such conditions precedent are satisfied on the
date of each such Borrowing:

      (a)   the representations and warranties contained in Section 6.01 are
correct in all material respects on and as of such day as though made on and as
of such day and shall be deemed to have been made (and to be correct in all
material respects) on such day;

      (b)   no Material Adverse Change in the condition of Issuer, any
Affiliated Originator, CFS, any Affiliated Servicer or the Master Servicer has
occurred and is continuing;

      (c)   no event has occurred and is continuing, or would result from such
Borrowing that constitutes an Event of Termination or Unmatured Event of
Termination;

      (d)   the Agent shall have received a pro-forma Coverage Condition
Certificate, substantially in the form of Exhibit 5.02(d), executed by an
authorized officer of Issuer, showing that after giving effect to each proposed
Borrowing, the Coverage Condition is met;

      (e)   the Facility Termination Date shall not have occurred;

      (f)   the applicable Sub-Servicers, in each case as bailee for the
Indenture Trustee for the benefit of the Secured Parties, shall have received
the original Student Loan Notes that will be acquired or otherwise financed with
the proceeds of such Borrowing (provided, however, that the applicable
Sub-Servicers may receive the original Student Loan Notes not later than five
days after the date of such Borrowing so long as prior to such receipt the
original Student Loan Notes are in the custody of the Master Servicer or the
Administrator as bailee pursuant to this Agreement);

                                       26
<PAGE>

      (g)   all conditions precedent to Issuer's acquisition of the Student
Loans to be acquired or otherwise funded with the proceeds of such Borrowing
(other than the payment of the purchase price therefor) shall have been
satisfied and no Purchase Termination Event shall have occurred with respect to
the seller of such Student Loans;

      (h)   the Agent shall have received acknowledgment of releases or
termination statements on Form UCC-3 and any other documents necessary to
evidence or release any security interest (other than that of the Indenture
Trustee) in the Student Loans to be acquired or otherwise funded with the
proceeds of such Borrowing, to the extent required for any such prior security
interest to be terminated;

      (i)   the Issuer has paid all fees and expenses due hereunder at such
time; and

      (j)   with respect to any Private Loan, prior to any Borrowing with
respect thereto and prior to its inclusion in the calculation of the Coverage
Condition, (A) each such Private Loan shall be (1) covered by and serviced in
accordance with the applicable Sub-Servicing Agreement in form and substance
satisfactory to the Agent as approved by the Conduit Lenders and the Majority
Committed Lenders and (2) the Agent shall have received such other opinions,
approvals, documents and certificates with respect to such Private Loan as the
Agent and the Lenders shall reasonably request and (B) if such Private Loan has
the benefit of a Private Loan Guaranty Agreement and the Private Loan Guarantor
thereof is TERI, the Agent has conducted such due diligence (including visiting
the offices of TERI) as the Agent shall deem necessary with respect to such
Private Loan in its sole discretion;

      (k)   the amount on deposit in the Reserve Account after giving effect to
such Borrowing shall be at least equal to the Reserve Account Minimum Balance;

      (l)   the Issuer shall have delivered to the Agent, if so requested by
Agent, a copy of each Purchase and Sale Agreement entered into after the Closing
Date, in each case duly executed by Issuer, and each other party thereto;

      (m)   No suit, action or other proceeding, investigation or injunction, or
final judgment relating thereto, shall be pending or threatened before any court
or governmental agency, seeking to restrain or prohibit or to obtain damages or
other relief in connection with any of the Transaction Documents or the
consummation of the Transaction;

      (n)   No statute, rule, regulation or order shall have been enacted,
entered or deemed applicable by any government or governmental or administrative
agency or court that would make the transactions contemplated by any of the
Transaction Documents illegal or otherwise prevent the consummation thereof; and

      (o)   the Issuer shall hold all FFELP Loans through the Eligible Lender
Trustee and the Eligible Lender Trustee shall be an "eligible lender" under
Section 435(d)(1)(D) of the Higher Education Act.

Notwithstanding the foregoing, the conditions precedent described in clauses
(a), (b), (d), (e), (f), (g), (h), (i), (j), (l), (m), (n) and (o) above shall
not apply to Borrowings made pursuant to Section 1.01(c) of this Agreement.

                                       27
<PAGE>

      SECTION 5.03. Delivery of Schedule of Pledged Student Loans. In connection
with any Borrowing (other than a Borrowing pursuant to Section 1.01(c) of this
Agreement), Issuer (or the Master Servicer on its behalf) shall have delivered
to the Indenture Trustee an updated Schedule of Pledged Student Loans reflecting
(i) any Student Loans not originated by the Issuer or its Affiliates, as soon as
possible but no later than 5 Business Days after the acquisition thereof and
(ii) with respect to any Student Loans originated by Issuer or its Affiliates,
within 5 Business Days after such origination; provided, however, that with
respect to the initial Borrowing Issuer shall have delivered the Schedule of
Pledged Student Loans to the Indenture Trustee on or before the date of such
initial Borrowing.

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

      SECTION 6.01. Representations and Warranties of Issuer. Issuer represents
and warrants as follows:

      (a)   Organization, Corporate Powers. Issuer is a limited liability
company duly organized, validly existing solely under the laws of the State of
Delaware, is in good standing under the laws of the State of Delaware, has all
necessary corporate power to carry on its present business, is duly licensed or
qualified in all jurisdictions where the nature of its activities require such
licensing or qualifying, and has full power, right and authority to enter into
this Agreement, the other Transaction Documents to which it is, or will be, a
party and the transactions contemplated hereby and thereby, to issue the Note
and to perform each and all of the matters and things herein and therein
provided for.

      (b)   Issuer Authority, etc. The execution, delivery and performance by
Issuer of this Agreement, the Note and the other Transaction Documents to which
it is, or will be, a party and the transactions contemplated hereby and thereby
have been duly authorized by all necessary corporate action and this Agreement,
the Note and such Transaction Documents constitute the legal, valid and binding
obligations of Issuer enforceable against Issuer in accordance with their terms,
except to the extent that enforceability may be limited by bankruptcy,
insolvency, reorganization or other laws affecting creditors' rights generally
and general principles of equity, regardless of whether such enforceability is
considered in a proceeding in equity or law.

      (c)   Compliance with Laws and Contracts. (i) The execution, delivery and
performance by Issuer of this Agreement, the Note and the other Transaction
Documents to which Issuer is a party do not and will not (w) conflict with,
result in any breach of any of the terms and provisions of, nor constitute (with
or without notice or lapse of time or both) a violation of the certificate of
formation or operating agreement of Issuer, (x) violate any provision of any
law, rule, regulation, order, writ, judgment, injunction, decree, determination
or award to which Issuer or its property is subject; (y) result in a breach of
or constitute a default under the provisions of any indenture, loan or credit
agreement or any other material agreement, lease or instrument to which Issuer
may be or is subject or by which it, or its property, is bound; or (z) result
in, or require, the creation or imposition of any Lien on or with respect of any
of the properties of Issuer other than the Lien in favor of the Indenture
Trustee provided herein; and (ii)

                                       28
<PAGE>

the Issuer is not in violation of, or in default under, any such law, rule,
regulation, order, writ, judgment, injunction, decree, determination or award or
any such indenture, agreement, lease or instrument.

      (d)   Governmental Approvals. Issuer has obtained all authorizations,
consents, approvals, licenses, exemptions of or filings or registrations with
all governmental commissions, regulatory bodies, boards, bureaus, agencies and
instrumentalities, domestic or foreign, necessary to the conduct of its business
or necessary to the valid execution, delivery and performance by Issuer of this
Agreement, the Note and the other Transaction Documents to which Issuer is, or
will be, a party (the "Approvals"), and such Approvals remain in full force and
effect.

      (e)   Litigation. There is no action, suit, proceeding, inquiry or
investigation at law or in equity or before or by any court, public board or
body pending or, to the knowledge of Issuer, overtly threatened in writing
against or affecting the Issuer (x) asserting the invalidity of this Agreement
or any other Transaction Document, (y) seeking to prevent the consummation of
any of the transactions contemplated by this Agreement and the other Transaction
Documents, or (z) wherein an unfavorable decision, ruling or finding would have
a Material Adverse Effect on the Issuer or which affects, or purports to affect,
the validity or enforceability against Issuer of any Transaction Document.

      (f)   Employee Benefit Plans. All "employee benefit plans" (as such term
is defined in ERISA) of Issuer and each of its ERISA Affiliates (individually, a
"Plan" and collectively the "Plans") have been maintained and operated in
substantial compliance with all applicable provisions of the Code and ERISA and
the regulations and published interpretations thereunder. No Plan is insolvent
or in reorganization. No proceedings have been instituted to terminate any Plan,
and no conditions exist which would permit the institution of proceedings to
terminate any such Plan. Issuer has no liability of any kind whatsoever, whether
direct, indirect, contingent or otherwise, on account of (i) any violation of
the health care continuation requirements of Part 6 of Title I of ERISA or
Section 4980B of the Code, (ii) under Section 502(i) or Section 502 (l) of ERISA
or Section 4975 of the Code, (iii) under Section 302 of ERISA or Section 412 of
the Code or (iv) under Title IV of ERISA.

      (g)   Perfected Interest. Each Pledged Student Loan, including the related
Student Loan Note, is owned by Issuer or by the Eligible Lender Trustee, on
behalf of Issuer, free and clear of any adverse claim, judgment or Lien other
than the Lien created pursuant to this Agreement. All other Collateral is owned
by Issuer free and clear of any adverse claim, judgment or Lien other than the
Lien created pursuant to this Agreement. Except for the filing of the financing
statements described in Section 5.01, no further action, including any filing or
recording of any document, is necessary in order to establish, protect and
perfect the first priority security interest of the Indenture Trustee, for the
benefit of the Secured Parties, in the Collateral as against any third party in
any applicable jurisdiction, including, without limitation, any purchaser from,
or creditor of, Issuer. No financing statement or other instrument similar in
effect covering any of the Collateral or any interest therein is on file in any
recording office except such as may be filed (i) in connection with any Lien
arising solely as the result of any action taken by the Lenders (or any assignee
thereof) or by the Agent, (ii) in favor of the Indenture Trustee or (iii) for
which UCC termination statements have been filed. No consent of

                                       29
<PAGE>

any other Person and no authorization, approval, or other action by, and no
notice to or filing with, any governmental authority or regulatory body is
required for (x) the pledge by the Issuer or the Eligible Lender Trustee of the
Collateral pursuant to this Agreement, (y) for the perfection or maintenance of
the security interest created hereby (including the first priority nature of
such security interest) or (z) for the exercise by the Agent of the rights
provided for in this Agreement or the remedies in respect of the Collateral
pursuant to this Agreement.

      (h)   Accuracy of Information. All information (including each Monthly
Report) supplied by, or on behalf of, Issuer in writing to the Indenture
Trustee, the Lenders or the Agent in connection with this Agreement or the
transactions contemplated hereby is true and accurate in all material respects
as of the date thereof stated or certified. No information, exhibit or report
furnished by Issuer to the Indenture Trustee, the Lenders or the Agent in
connection with this Agreement contained any material misstatement. The
financial information regarding the Issuer as heretofore delivered to any of the
Indenture Trustee, the Lenders or the Agent correctly and fairly presents the
financial condition of the Issuer as of the date hereof.

      (i)   Terminations. No Event of Termination or Unmatured Event of
Termination exists.

      (j)   Margin Regulations. The use of all funds obtained by Issuer under
this Agreement will not conflict with or contravene any of Regulations T, U and
X promulgated by the Board of Governors of the Federal Reserve System from time
to time.

      (k)   Issuer Information. The chief place of business and chief executive
office of Issuer are located at the address of Issuer referred to in Section
13.02, and the offices where Issuer keeps all its books, records and documents
relating to the Pledged Student Loans are located at the addresses specified in
Schedule 6.01(k) (or at such other locations, notified to the Agent in
accordance with Section 7.01(f), in jurisdictions where all action necessary to
maintain the Indenture Trustee's first priority perfected security interest, for
the benefit of the Secured Parties, in the Collateral has been taken and
completed). The exact legal name of the Issuer is set forth on the signature
page hereof. The Issuer's organizational identification number is 3678388. The
Issuer has not changed its name, changed its organizational structure, changed
its jurisdiction of organization, changed its chief place of business/chief
executive office or used any name other than its exact legal name at any time
during the past five years. The Location of the Issuer is Delaware and the
Location of the Eligible Lender Trustee is Ohio.

      (l)   No Disclosure Required. Under applicable laws and regulations in
effect on the date hereof, Issuer is not required to file a copy of this
Agreement with the Securities and Exchange Commission or any other governmental
authority.

      (m)   Capital of Issuer. Issuer is Solvent.

      (n)   Issuer Not an Investment Company. Issuer is not required to register
as an "investment company" within the meaning of the Investment Company Act of
1940, as amended.

                                       30
<PAGE>

      (o)   Eligible Student Loans. All Pledged Student Loans are Eligible
Student Loans. Each Student Loan included as an Eligible Student Loan in the
calculation of the Coverage Condition, is an Eligible Student Loan.

      (p)   Material Adverse Effect. No Material Adverse Change in the condition
of the Issuer, any Affiliated Servicer or the Master Servicer (or, to Issuer's
knowledge, any Third Party Servicer) has occurred and is continuing.

      (q)   Prior Business Activity. The Issuer has no other business activity
except as contemplated in this Agreement and upon the date hereof is not party
to any other debt, financing or other material transaction or agreement other
than the Transaction Documents.

      (r)   Subsidiaries. The Issuer has no subsidiaries.

      (s)   Acquisition of Student Loans. With respect to each Pledged Student
Loan, the Issuer has acquired such Pledged Student Loan pursuant to the CFO
Purchase and Sale Agreement in exchange for payment to the Affiliated Originator
in an amount which constitutes fair consideration and reasonably equivalent
value (and such acquisition is not void or subject to avoidance under any
section of the Bankruptcy Code) and, to the extent that the Affiliated
Originator has acquired such Pledged Student Loan from a Third Party Originator,
the Affiliated Originator has acquired such Pledged Student Loan pursuant to a
Purchase and Sale Agreement in exchange for payment to the Third Party
Originator in an amount which constitutes fair consideration and reasonably
equivalent value (and such acquisition is not void or subject to avoidance under
any section of the Bankruptcy Code).

      (t)   Demand Note; Residual Payments Account; Residual Payments Account
Control Agreement. Each of the Demand Note and the Residual Payments Account
Control Agreement has been duly authorized, executed and delivered by CFS, and
constitutes the legal, valid and binding obligation of CFS, and CFS is not in
default under any of the terms thereunder. The Residual Payments Account shall
have been validly established and the Indenture Trustee, as assignee of the
Issuer, as secured party under the Demand Note, has a perfected security
interest in the Demand Note and the Residual Payments Account, subject only to
the Intercreditor Agreement.

      (u)   Tax Status. Issuer has filed all tax returns (federal, state and
local) required to be filed and has paid or made adequate provision for the
payment of all taxes, assessments and other governmental charges.

      (v)   Eligible Lender. Each Eligible Lender Trustee is an "eligible
lender" under Section 435(d)(1)(D) of the Higher Education Act.

      (w)   Electronic Signatures. To the extent any Student Loan Note
representing a FFELP Loan that is a Pledged Student Loan is evidenced by an
electronic promissory note or an electronic record, or to the extent the
signature of the obligor on any Student Loan Note representing a FFELP Loan that
is a Pledged Student Loan is an electronic signature the Issuer has complied
(and has caused the Affiliated Originator and Master Servicer to comply) with
all regulations, standards and other requirements provided by the applicable
Guarantor or the Department relating to the validity and enforceability of such
Student Loan Note, including

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<PAGE>

without limitation the U.S. Department of Education Standards for Electronic
Signatures in Electronic Student Loan Transactions, as revised or supplemented
from time to time.

      SECTION 6.02. Reassignment upon Breach. Issuer, the Agent or the Indenture
Trustee, as the case may be, shall inform the other parties to this Agreement
promptly, in writing, upon the discovery of any breach in any material respects
of the representations and warranties made or deemed made by Issuer pursuant to
Section 6.01(g) or (o) or any breach in any material respects of the covenants
of Issuer made pursuant to Section 7.03. Unless any such breach shall have been
cured within 30 days following the discovery thereof by Issuer or receipt by
Issuer of written notice from the Indenture Trustee or the Agent of such breach,
the Pledged Student Loan as to which such representation and warranty or
covenant relates shall be reassigned to Issuer (a "Reassignment") as of the
first day succeeding the end of such 30-day period that is the last day of a
calendar month. In consideration of and simultaneously with the Reassignment of
such Pledged Student Loan, Issuer shall deposit to the Collection Account
immediately available funds equal to the outstanding Principal Balance of such
Pledged Student Loan, plus accrued and unpaid interest thereon (to the extent
not previously capitalized), plus any Unamortized Premium thereon plus any
unreimbursed Monthly Advance with respect thereto (the "Reassignment Amount").
Notwithstanding the foregoing, so long as no Event of Termination shall have
occurred and be continuing, during the Revolving Period, Issuer may, at its
option in lieu of depositing such Reassignment Amount to the Collection Account
on such date, may pledge to the Indenture Trustee on such date for inclusion in
the Collateral a new Eligible Student Loan in substitution for such Pledged
Student Loan with respect to which a Borrowing could be made (assuming Issuer
requested a Borrowing in connection with such new Eligible Student Loan pursuant
to Section 1.02) in an amount at least equal to the Reassignment Amount, by
delivering an updated Schedule of Pledged Student Loans to the Indenture Trustee
reflecting such substitution and delivering to the applicable Sub-Servicer, as
bailee for the Indenture Trustee, if not already in its possession the original
Student Loan Note for the new Student Loan to be included in the Collateral;
provided, however, that the aggregate outstanding Principal Balance of all such
substitute Student Loans shall not at any time exceed 10% of the Total
Outstanding Advances. The Indenture Trustee shall execute such documents
reasonably requested by Issuer in order to effect such reassignment and to
release the Indenture Trustee's Lien thereunder.

      SECTION 6.03. Representations and Warranties of Indenture Trustee. The
Indenture Trustee hereby represents and warrants as follows:

      (a)   Due Organization. It is a national banking association duly
organized and validly existing in good standing under the laws of the United
States. It has all requisite corporate power and authority to execute, deliver
and perform its obligations under this Agreement.

      (b)   Authorization. It has taken all corporate action necessary to
authorize the execution and delivery by it of this Agreement, and this Agreement
will be executed and delivered by one of its officers who is duly authorized to
execute and deliver this Agreement on its behalf.

      (c)   No Conflict. Neither the execution nor the delivery by it of this
Agreement, nor the consummation by it of the transactions contemplated hereby
nor compliance by it with any of the terms or provisions hereof will contravene
any federal or applicable state law, governmental

                                       32
<PAGE>

rule or regulation governing the banking or trust powers of the Indenture
Trustee or any judgment or order binding on it, or constitute any default under
its charter documents or by-laws or any indenture, mortgage, contract, agreement
or instrument to which it is a party or by which any of its properties may be
bound.

      (d)   Eligible Lender. It is an "eligible lender" as such term is defined
in Section 435(d) of the Higher Education Act, for purposes of being pledgee of
the Pledged Student Loans as contemplated by this Agreement.

      (e)   Binding Obligation. This Agreement constitutes, and each other
Transaction Document to be executed by the Indenture Trustee when duly executed
and delivered, will constitute, a legal, valid and binding obligation of the
Indenture Trustee, enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, or
other similar laws affecting the enforcement of creditors' rights generally and
by general principles of equity, regardless of whether such enforceability is
considered in a proceeding in equity or at law.

      SECTION 6.04. Representations and Warranties of Eligible Lender Trustee.
The Eligible Lender Trustee hereby represents and warrants as follows:

      (a)   Due Organization. It is a national banking association duly
organized and validly existing in good standing under the laws of the United
States. It has all requisite corporate power and authority to execute and
deliver this Agreement.

      (b)   Eligible Lender. It is an "eligible lender" as such term is defined
in Section 435(d) of the Higher Education Act.

                                  ARTICLE VII

                 GENERAL COVENANTS OF ISSUER AND MASTER SERVICER

      SECTION 7.01. Affirmative Covenants of Issuer. From the date hereof until
the Final Payout Date, Issuer will, unless the Agent and the Lenders shall
otherwise consent in writing:

      (a)   Compliance with Laws, Etc. Comply in all material respects with all
applicable laws, rules, regulations and orders, including those with respect to
the Pledged Student Loans except to the extent that failure to comply with such
laws, rules, regulations and orders would not have a Material Adverse Effect on
the Issuer.

      (b)   Preservation of Existence. Preserve and maintain its existence as a
limited liability company, and its rights, franchises and privileges in the
jurisdiction of its formation, and qualify and remain qualified in good standing
as a foreign limited liability company in each jurisdiction where the failure to
preserve and maintain such existence, rights, franchises, privileges and
qualification could be reasonably expected to have a Material Adverse Effect on
the Issuer.

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<PAGE>

      (c)   Audits. (i) At any time and from time to time during regular
business hours, permit the Agent, the Lenders, the Indenture Trustee or any of
their agents or representatives, upon prior written notice of at least ten
Business Days if no Event of Termination has occurred and is continuing, (y) to
examine and make copies of and abstracts from all books, records and documents
(including, without limitation, computer tapes and disks) in the possession or
under the control of Issuer relating to the Collateral, and (z) to visit the
offices and properties of Issuer for the purpose of examining such materials
described in clause (i)(y) above, and to discuss matters relating to Pledged
Student Loans or Issuer's performance under the Transaction Documents with any
of the officers or employees of Issuer having knowledge of such matters; (ii)
without limiting the provisions of clause (i) above, from time to time on the
reasonable request of the Agent or, in the event of an investigation, audit (not
in the ordinary course) or other proceeding instigated by the Department, permit
certified public accountants or other auditors acceptable to the Agent to
conduct, at Issuer's expense, a review of Issuer's books and records with
respect to the Pledged Student Loans; and (iii) without limiting the foregoing,
once per calendar year or, upon the occurrence and during the continuance of an
Event of Termination, at any time at the request of the Agent, cooperate fully
with the Agent or any auditor or representative appointed by the Agent in an
agreed upon procedures audit (including inspection of the legend required to be
placed on certain Student Loan Notes pursuant to Section 7.01(q) and covering
each of the items and procedures listed on Appendix F hereto and such other
items and procedures as reasonably requested by the Agent) at Issuer's expense
with respect to all Pledged Student Loans.

      (d)   Keeping of Records and Books of Account. Maintain and implement \
administrative and operating procedures (including, without limitation, an
ability to recreate records evidencing the Pledged Student Loans in the event of
the destruction of the originals thereof), and keep and maintain, or cause to be
kept and maintained, all documents, books, records and other information
reasonably necessary or advisable for the collection of all the Pledged Student
Loans (including, without limitation, records adequate to permit the daily
identification of each new Pledged Student Loan included in the Collateral from
time to time and all Collections of, payments on and adjustments to each
existing Pledged Student Loan).

      (e)   Performance and Compliance with Student Loans. At its expense,
timely and fully perform and comply with all material provisions, covenants and
other promises required to be observed by it under the Higher Education Act,
Student Loan Notes, the Guarantee Agreements, the Sub-Servicing Agreements and
other agreements to which Issuer is a party related to the Collateral.

      (f)   Location of Records. Keep its chief place of business and chief
executive office, and the offices where it keeps its records concerning the
Pledged Student Loans and all agreements related to such Collateral (and all
original documents relating thereto, unless such documents have been delivered
to the applicable Sub-Servicer or a bailee thereof), at the address(es) of
Issuer referred to in Schedule 6.01(k) or, upon 30 days' prior written notice to
the Agent, , at such other locations in jurisdictions where all action required
to maintain the Indenture Trustee's first priority perfected interest, for the
benefit of the Secured Parties, in the Pledged Student Loans shall have been
taken and completed. Keep its Location at the Location identified in Section
6.01(a) or, upon 30 days' prior written notice to the Agent, at such other
"Location" where all action required to maintain the Indenture Trustee's first
priority perfected

                                       34
<PAGE>

interest, for the benefit of the Secured Parties, in the Collateral shall have
been taken and completed.

      (g)   Administration of the Program. Administer, operate and maintain its
student loan program in such manner as to ensure that such program and (i) in
the case of FFELP Loans that are Pledged Student Loans, will benefit, in all
material respects, from the FFELP Program, the Guarantee Agreements related
thereto and the federal program of reimbursement for FFELP Loans pursuant to the
Higher Education Act, or from any other federal statute providing for such
federal program, (ii) in the case of Private Loans, will benefit in all material
respects from Guarantee Agreements related thereto, and (iii) promptly notify
the Agent of any default under any Guarantee Agreement.

      (h)   Guarantee Agreements and Sub-Servicing Agreements; Enforcement. (i)
Maintain in effect all Guarantee Agreements and Sub-Servicing Agreements,
diligently and promptly enforce its rights thereunder and take, or cause the
Master Servicer (directly or through the applicable Sub-Servicer) to take, all
commercially reasonable steps, actions and proceedings necessary or appropriate
for the enforcement of all material terms, covenants and conditions of each
Student Loan that is a Pledged Student Loan, including the prompt payment of all
principal and interest payments and all other amounts due with respect to such
Student Loans, including (in the case of FFELP Loans) all Interest Subsidy
Payments and Special Allowance Payments and in the case of FFELP Loans and
Private Loans (which Private Loans have the benefit of a Private Loan Guarantee
Agreement), Guarantee Payments, except (in the case of FFELP Loans) for such
deferments and forbearance permitted under the Higher Education Act and (ii)
enter into Sub-Servicing Agreements with Sub-Servicers so that all FFELP Loans
and Private Loans that are Pledged Student Loans are covered thereby.

      (i)   Insurance. Maintain in effect directors' and officers' insurance in
such liability and amounts and with such deductibles as are customary in the
industry and provide prompt notice to the Agent of any material changes in such
insurance.

      (j)   Separate Business. At all times:

            (i)   (y) maintain and prepare financial reports, financial
      statements, books and records and bank accounts separate from those of its
      Affiliates and any other Person or entity and (z) not permit any Affiliate
      or any other Person independent access to its bank accounts;

            (ii)  not commingle its funds and other assets with those of any
      Affiliate or any other Person or entity (other than any such commingling
      which might result from the performance of the Master Servicer's duties in
      accordance with this Agreement or any Sub-Servicer's duties in accordance
      with the applicable Sub-Servicing Agreement);

            (iii) conduct its own business in its own name and hold all of its
      assets in its own name and in such a manner that it will not be costly or
      difficult to segregate, ascertain or identify its individual assets from
      those of any Affiliate or any other Person;

            (iv)  remain Solvent and pay its debts and liabilities (including
      employment and overhead expenses) from its assets as the same become due:

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<PAGE>

            (v)   do all things necessary to observe limited liability company
      formalities (including the separateness provisions contained in its
      organizational documents), and preserve its existence as a single-purpose,
      bankruptcy-remote entity;

            (vi)  enter into transactions with Affiliates only if each such
      transaction is commercially reasonable and on substantially similar terms
      as a transaction that would be entered into on an arm's-length basis with
      a Person other than an Affiliate of Issuer (provided, however, that this
      clause shall not be interpreted to prohibit the Demand Note);

            (vii) pay the salaries of its own employees, if any, from its own
      funds and maintain a sufficient number of employees in light of its
      contemplated business operations;

            (viii) compensate each of its consultants and agents from its own
      funds for services provided to it and pay from its own assets all
      obligations of any kind incurred;

            (ix)  not (y) acquire or hold obligations or securities of any
      Affiliate or any of the stockholders of Issuer (other than the Demand
      Note) or (z) buy or hold any evidence of indebtedness issued by any other
      Person or entity, other than cash, Eligible Investments and Pledged
      Student Loans;

            (x)   allocate fairly and reasonably and pay from its own funds the
      cost of (i) any overhead expenses (including paying for any office space)
      shared with any Affiliate of Issuer and (ii) any services (such as asset
      management, legal and accounting) that are provided jointly to Issuer and
      one or more of its Affiliates;

            (xi)  maintain and utilize separate stationery, invoices and checks
      bearing its own name, separate office space (which may be a separately
      identified area in office space shared with one or more Affiliates of
      Issuer), a separate mailing address, and a separate telephone number;

            (xii) not make any loans or advances to, or pledge its assets for
      the benefit of, any other Person or entity, including, without limitation,
      any Affiliate (except as contemplated by its operating agreement and this
      Agreement);

            (xiii) be, and at all times hold itself out to the public as, a
      legal entity separate and distinct from any other Person;

            (xiv) to the extent known by the Issuer, correct any
      misunderstanding regarding the separate identity of the Issuer;

            (xv)  not identify itself or any of its Affiliates as a division or
      part of any other entity;

            (xvi) maintain adequate capital for the normal obligations
      reasonably foreseeable in a business of its size and character and in
      light of its contemplated business operations;

                                       36
<PAGE>

            (xvii) not amend, modify or otherwise change its organizational
      documents, or suffer the same to be amended, modified or otherwise changed
      in any manner without the prior written consent of the Agent, the Conduit
      Lenders and the Majority Committed Lenders;

            (xviii) maintain at all times at least one independent director
      provided by Lord Securities who is not, and has not been for five years
      preceding the date hereof, a director, officer, employee or shareholder
      (or a family member of one of the foregoing) of any Affiliate of the
      Issuer (other than the Issuer or any other securitization vehicle that is
      an Affiliate of the Issuer);

            (xix) conduct in its business and activities in all respects in
      compliance with the assumptions contained in the legal opinion of Stroock
      Stroock & Lavan LLP dated on or about the Closing Date relating to true
      sale and substantive consolidation issues;

            (xx)  not change any of its (i) corporate name, (ii) the name under
      which it does business, (iii) its type of organization or (iv) the
      jurisdiction in which it is organized, unless, in each case, (1) each of
      the Indenture Trustee, the Agent and each Lender shall have received not
      less than thirty (30) days' prior written notice thereof and (2) the
      Issuer has taken all action required to maintain the Indenture Trustee's
      first priority perfected security interest for the benefit of the Secured
      Parties in the Collateral;

      (k)   Delivery of Student Loan Notes. Issuer shall deliver or cause to be
delivered to the applicable Sub-Servicers, in each case as bailee for the
Indenture Trustee for the benefit of the Secured Parties, each of the original
Student Loan Notes for all Pledged Student Loans.

      (l)   [Reserved].

      (m)   Status as Eligible Lender. Issuer shall maintain, directly or
through the Eligible Lender Trustee, its status as an "eligible lender" under
Section 435(d)(1)(D) of the Higher Education Act and shall promptly notify the
Agent of any change in such status.

      (n)   Purchase and Sale Agreements; Enforcement. Issuer shall monitor each
Originator and shall provide the Agent prompt notice of the occurrence of any
event listed in clauses (a) through (e) of the definition of "Purchase
Termination Event". Issuer shall enforce its rights with respect to all material
obligations of the Originators under each Purchase and Sale Agreement and all
other transaction documents to which any Originator is a party.

      (o)   Deposit of Collections. Issuer shall deposit and shall cause the
Affiliated Originators, the Affiliated Servicers and the Master Servicer to
deposit, and shall exercise all rights available to it under its agreements with
Third Party Originators to cause such Third Party Originators to deposit or to
forward to the Issuer or Master Servicer for deposit, all Collections into the
Collection Account as soon as practicable following receipt thereof, but no
later than two Business Days after receipt thereof. Issuer shall not (and shall
not allow any Affiliated Originator, any Affiliated Servicer or the Master
Servicer to) deposit any amounts other than Collections (and other amounts
required by the terms of this Agreement to be deposited into the Collection
Account) into the Collection Account.

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<PAGE>

      (p)   Additional Financing Statements. Issuer shall file or cause to be
filed, and authorizes the Agent and the Indenture Trustee to file, UCC financing
statements against all Originators deemed necessary or desirable by the Agent or
the Indenture Trustee to perfect the security interest in the Issuer in Student
Loans acquired from such Originators. In addition, at the request of the Agent
or the Indenture Trustee the Issuer shall file or cause to be filed, and
authorizes the Agent and the Indenture Trustee to file, UCC financing statement
assignments assigning to the Indenture Trustee any financing statement showing
the Issuer as secured party with respect to the Collateral.

      (q)   Marking of Student Loan Notes. The Issuer shall cause each Student
Loan Note that is not a master promissory note and that is not in the possession
of a Third Party Servicer to be marked with the following legend: "This note and
related documentation is subject to a Uniform Commercial Code Security Agreement
between U.S. Bank National Association, as Trustee (the "Trustee"), and
Collegiate Funding Services, L.L.C. or a direct or indirect subsidiary or
affiliate thereof and Financing Statements evidencing the Trustee's security
interest therein have been filed of record in the manner provided for by the
Uniform Commercial Code and, where applicable, 20 U.S.C. Section 1082(m)(1)(E)
and Section 1087-2(d)(3). The granting of another security interest in, or the
sale of, this note and related documentation would, without consent of the
Trustee, violate the Trustee's rights under the Security Agreement." This
Agreement constitutes a "Uniform Commercial Code Security Agreement".

      (r)   Demand Note; Residual Payments Account; Residual Payments Account
Control Agreement. Issuer shall maintain in effect each of the Demand Note and
the Residual Payments Account Control Agreement , diligently and promptly
enforce its rights thereunder and cause CFS to maintain the existence of the
Residual Payments Account.

      (s)   Electronic Signatures. To the extent any Student Loan Note
representing a FFELP Loan that is a Pledged Student Loan is evidenced by an
electronic promissory note or an electronic record, or to the extent the
signature of the obligor on any Student Loan Note representing a FFELP Loan that
is a Pledged Student Loan is an electronic signature, the Issuer shall (and
shall cause each Affiliated Originator and Master Servicer to) comply with all
regulations, standards and other requirements provided by the applicable
Guarantor or the Department relating to the validity and enforceability of such
Student Loan Note, including without limitation the U.S. Department of Education
Standards for Electronic Signatures in Electronic Student Loan Transactions, as
revised or supplemented from time to time.

      SECTION 7.02. Reporting Requirements of Issuer. From the date hereof until
the Final Payout Date, Issuer (or the Administrator on its behalf) will, unless
the Agent, the Conduit Lenders and the Majority Committed Lenders shall
otherwise consent in writing, furnish to the Agent:

      (a)   Quarterly Financial Statements. As soon as available and in any
event within 45 days after the end of each of the first three quarters of each
fiscal year of Issuer, copies of the financial statements of the Issuer, that
are in conformity with generally accepted accounting principles, along with a
certificate by an authorized officer of Issuer certifying that such copies are
the true and complete copies of the financial statements and that such financial
statements fairly present in all material respects the financial condition of
the Issuer as of the date delivered;

                                       38
<PAGE>

      (b)   Annual Financial Statements. As soon as available and in any event
within 120 days after the end of each fiscal year of Issuer, copies of the
financial statements of Issuer (or consolidating financial statements of CFS
that separately identify the financial information of the Issuer) prepared and
duly certified by any nationally recognized public accounting firm approved by
the Agent, in conformity with generally accepted accounting principles, along
with a certificate by an authorized officer of Issuer certifying that such
copies are the true and complete copies of the financial statements and that
such financial statements fairly present in all material respects the financial
condition of the Issuer as of the date delivered;

      (c)   Monthly Report. On or before the 20th day of each month (or, if any
such day is not a Business Day, on the next succeeding Business Day), a Monthly
Report (which may be the same Monthly Report referred to in Section 12.06
hereof) with respect to the preceding calendar month in electronic form together
with a signed copy of such Monthly Report delivered by facsimile, messenger or
overnight courier;

      (d)   ERISA. Promptly after the filing or receiving thereof, copies of all
reports and notices with respect to any "reportable event" described in Section
4043 of ERISA which Issuer or an ERISA Affiliate thereof files under ERISA with
the Internal Revenue Service, the Pension Benefit Guaranty Corporation or the
U.S. Department of Labor or which Issuer receives from the Internal Revenue
Service, the Pension Benefit Guaranty Corporation;

      (e)   Events of Termination. Immediately upon becoming aware of the
existence of any Event of Termination or Unmatured Event of Termination, a
written statement of an authorized officer of Issuer setting forth details of
such event and the action that Issuer proposes to take with respect thereto; and
immediately upon becoming aware of any Servicer Event of Default, written notice
thereof;

      (f)   Litigation. As soon as possible and in any event within five
Business Days of Issuer's actual knowledge thereof, written notice of (i) any
litigation, investigation or proceeding which may exist at any time that could
have a Material Adverse Effect and (ii) any material adverse development in
previously disclosed litigation, including in each case, if known to Issuer, any
of the same against the Master Servicer or any Sub-Servicer;

      (g)   Act Amendments. Promptly after the occurrence thereof, written
notice of changes in the Higher Education Act or any other law, rule or
regulation of the United States that could have a Material Adverse Effect on the
Issuer, the Master Servicer, any Affiliated Servicer or any other Affiliate of
the Master Servicer or have a Material Adverse Effect on the Collateral, the
Collateral Value or the rating on the Note as reasonably determined by the Agent
using the ratings methodology the Agent employs for rating the Note;

      (h)   Financial Statements of Private Loan Guarantors. With respect to
each Private Loan Guarantor, promptly after receipt thereof, copies of any
annual audited financial statements of such Guarantor certified by an
independent certified public accounting firm;

      (i)   Financial Statements and Annual Compliance Audit of the Master
Servicer (or any Sub-Servicer). With respect to the Master Servicer (and each
Sub-Servicer), (A) promptly after receipt thereof, copies of any annual audited
financial statements of the Master Servicer (or

                                       39
<PAGE>

Sub-Servicer, as applicable), certified by an independent certified public
accounting firm that have been received by Issuer; (B) on an annual basis within
ten (10) days after receipt thereof copies of SAS 70 reports for each
Sub-Servicer, or if not available the annual compliance audit for each
Sub-Servicer required by Section 428(b)(l)(4) of the Higher Education Act, as
amended; and (C) on an annual basis, each Sub-Servicer's Due Diligence Error
Rate with respect to the Pledged Student Loans;

      (j)   Schedule of Pledged Student Loans. (i) No later than the 20th
Business Day of each calendar month, a schedule of all Pledged Student Loans
financed during the preceding calendar month; (ii) no later than the 20th day of
each fiscal quarter, a schedule of all Pledged Student Loans as of the end of
the immediately preceding fiscal quarter and, (iii) no later than 5 Business
Days after the request of the Agent in connection with the performance of any
Portfolio Valuation performed by any Person, a schedule of all Pledged Student
Loans in electronic form acceptable to such Person including all information
necessary for the performance of such Portfolio Valuation;

      (k)   Coverage Condition Certificate. Concurrently with the delivery of
the Monthly Report referred to in clause (c) above, and no later than three
Business Days after the occurrence of a Material Adverse Change in the condition
of any Private Loan Guarantor or Third Party Servicer, a Coverage Condition
Certificate, substantially in the form of Exhibit 5.02(d), executed by an
authorized officer of Issuer;

      (l)   Credit and Collection Policy. Promptly after the occurrence thereof,
written notice of material changes in the Credit and Collection Policy;

      (m)   [Reserved];

      (n)   [Reserved];

      (o)   [Reserved];

      (p)   Purchase and Sale Agreements. Promptly at the request of the Agent,
a copy of each Purchase and Sale Agreement executed by the Issuer;

      (q)   Notice of Material Events. Issuer shall be obligated promptly (but
in any event within five Business Days) to inform the Agent in writing of the
occurrence of any of the following:

            (i)   the submission of any claim or the initiation or threat of any
      legal process, litigation or administrative or judicial investigation, or
      rule making or disciplinary proceeding by or against the Issuer, any
      Affiliated Servicer or the Master Servicer that (A) could be required to
      be disclosed to the Securities and Exchange Commission or (B) could result
      in a Material Adverse Change with respect to the Issuer, any Affiliated
      Servicer or the Master Servicer, or the promulgation of any proceeding or
      any proposed or final rule which would result in a Material Adverse Change
      with respect to the Issuer, any Affiliated Servicer or the Master
      Servicer.

                                       40
<PAGE>

            (ii)  any change in the Location of the Issuer's principal offices
      or any change in the Location of the Issuer's books and records;

            (iii) the occurrence of any Event of Termination, any default under
      any Guarantee Agreement or Sub-Servicing Agreement (whether or not such
      default constitutes an Event of Termination) or any other event
      circumstance or condition that has resulted or has a material probability
      of resulting in a Material Adverse Change in respect of the Issuer;

            (iv)  the commencement of any proceedings by or against the Issuer,
      any Affiliated Servicer or the Master Servicer under any applicable
      bankruptcy, reorganization, liquidation, rehabilitation, insolvency or
      other similar law now or hereafter in effect or of any proceeding in which
      a receiver, liquidator, conservator, trustee or similar official shall
      have been, or may be, appointed or requested for the Issuer, any
      Affiliated Servicer or the Master Servicer or any of its assets;

            (v)   the receipt of notice that (A) the Issuer, any Affiliated
      Servicer or the Master Servicer is being placed under regulatory
      supervision, (B) any license, permit, charter, registration or approval
      necessary for the conduct of the Issuer's, any Affiliated Servicer's or
      the Master Servicer's business is to be, or may be suspended or revoked,
      or (C) the Issuer, any Affiliated Servicer or the Master Servicer is to
      cease and desist any practice, procedure or policy employed by the Issuer,
      any Affiliated Servicer or the Master Servicer in the conduct of its
      business, and such cessation may result in a Material Adverse Change with
      respect to the Issuer, any Affiliated Servicer or the Master Servicer; and

            (vi)  any failure to pay when due any indebtedness of the Issuer.

      (r)   Other. Promptly, from time to time, such other information,
documents, records or reports respecting the Collateral or the condition or
operations, financial or otherwise, of Issuer as the Agent, the Lenders or
Indenture Trustee, may from time to time reasonably request in order to protect
the interests of the Agent, the Lenders and Indenture Trustee, under or as
contemplated by this Agreement.

      SECTION 7.03. Servicing Covenants. From the date hereof until the Final
Payout Date, Issuer (or the Master Servicer on its behalf) will, unless the
Agent, the Conduit Lenders and the Majority Committed Lenders shall otherwise
consent in writing comply with the following covenants.

      (a)   Servicing. Issuer (or the Master Servicer on its behalf) shall cause
each applicable Sub-Servicer to) service, administer and make collections with
respect to the Pledged Student Loans in accordance in all material respects with
all applicable federal and state laws, including all applicable standards,
guidelines and requirements of the Higher Education Act and any Guarantee
Agreement, the failure to comply with which would adversely affect the
eligibility of one or more of the Pledged Student Loans for Interest Subsidy
Payments, Special Allowance Payments or Guarantee Payments, as applicable, or
could otherwise be reasonably expected to have a material adverse effect on the
Lenders. Issuer (or the Master Servicer on its

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<PAGE>

behalf) shall not and shall not permit any Sub-Servicer to (i) rescind or cancel
any Pledged Student Loan except as ordered by a court of competent jurisdiction
or governmental authority or as otherwise consented to in writing by the Agent
or (ii) reschedule, revise, defer or otherwise compromise with respect to
payments due on any Pledged Student Loan except pursuant to any applicable
deferral or forbearance periods or otherwise in accordance with all applicable
standards, guidelines and requirements with respect to the servicing of the
Pledged Student Loans. Issuer (or the Master Servicer on its behalf) shall not
otherwise agree, or permit any Sub-Servicer to otherwise agree, to any decrease
of the interest rate on, or the principal amount payable with respect to, any
Pledged Student Loan except as otherwise permitted in accordance with any
Reduced Rate Program or any applicable standards, guidelines and requirements of
the Higher Education Act or any Guarantee Agreement. Issuer (or the Master
Servicer on its behalf) shall cause each Sub-Servicer to take any action
required to be taken to maintain each such Guarantee Agreement and to maintain
any and all collection procedures with respect to the Pledged Student Loans,
including (i) filing, pursuing and recovering claims against the Guarantors for
Guarantee Payments with respect to such Pledged Student Loans, (ii) taking any
steps to enforce such Pledged Student Loan such as commencing a legal proceeding
to enforce a Pledged Student Loan in the name of Issuer for the benefit of the
Indenture Trustee and the Secured Parties and (iii) taking any other collection
efforts that may be necessary or reasonable under the Higher Education Act or
any Guarantee Agreement to collect any Pledged Student Loan. Notwithstanding any
of the foregoing, the Issuer (or the Master Servicer or any Sub-Servicer) shall
be permitted to reschedule, revise, defer or otherwise compromise payments or
take other reasonable actions with respect to Private Loans that are Defaulted
Student Loans in connection with maximizing the recovery on such Private Loans.

      (b)   Collection of Pledged Student Loan Payments. Issuer (or the Master
Servicer on its behalf) shall, and shall cause the applicable Sub-Servicer, to
make reasonable efforts (including all efforts that may be specified under the
Higher Education Act with respect to FFELP Loans or under any Guarantee
Agreement) to collect all payments called for under the terms and provisions of
the Pledged Student Loans as and when the same shall become due.

      (c)   Collection of Guarantee Payments. Issuer (or the Master Servicer on
its behalf) shall, or shall cause each applicable Sub-Servicer, to make
reasonable efforts to claim, pursue and collect all Guarantee Payments from the
Guarantors pursuant to the Guarantee Agreements with respect to any of the
Pledged Student Loans that have the benefit of a Guarantee Agreement as and when
the same shall become due and payable, and shall comply, and shall cause the
Sub-Servicers to comply, in all material respects with all applicable laws and
agreements with respect to claiming, pursuing and collecting such payments. In
connection therewith, Issuer (or the applicable Sub-Servicer on its behalf) is
hereby authorized and empowered to convey to any Guarantor the Student Loan Note
and the related Pledged Student Loan file representing any Pledged Student Loan
that is covered by such Guarantee Agreement in connection with submitting a
claim to such Guarantor for a Guarantee Payment in accordance with the terms of
the applicable Guarantee Agreement whereupon the Lien of the Indenture Trustee
relating to such Pledged Student Loan shall be released without any further
action of any kind.

      (d)   Collection of Interest Subsidy Payments and Special Allowance
Payments. Issuer (or the Master Servicer on its behalf) shall make reasonable
efforts to claim, pursue and collect all Interest Subsidy Payments and Special
Allowance Payments from the Department with

                                       42
<PAGE>

respect to any of the Pledged Student Loans that are FFELP Loans as and when the
same shall become due and payable, shall comply in all material respects with
all applicable laws and agreements with respect to claiming, pursuing and
collecting such payments. All amounts so collected by Issuer (or the Master
Servicer on its behalf) shall constitute Collections for the applicable
Settlement Period and shall be deposited into the Collection Account in
accordance with Section 3.03(a). In connection therewith, Issuer (or the Master
Servicer on its behalf) shall prepare and file with the Department (in the case
of FFELP Loans) on a timely basis all claims, forms and other documents and
filings necessary or appropriate in connection with the claiming of, in the case
of FFELP Loans, Interest Subsidy Payments and Special Allowance Payments and
otherwise pursuing and collecting such Interest Subsidy Payments and Special
Allowance Payments from the Department.

      (e)   Realization upon Pledged Student Loans. Issuer (or the Master
Servicer on its behalf) shall cause, or shall cause each applicable
Sub-Servicer, to use reasonable efforts consistent with customary servicing
practices and procedures and including, all efforts that may be specified under
any Guarantee Agreement (and with respect to FFELP Loans, all efforts that may
be specified under the Higher Education Act) in its servicing of any delinquent
Pledged Student Loans.

      (f)   Marking of Student Loan Notes. The Master Servicer shall ensure that
each Student Loan Note that is not a master promissory note and that is not in
the possession of a Third Party Servicer is marked with the legend set forth in
Section 7.01(q).

      (g)   Demand Note, Residual Payments Account Control Agreement, Residual
Payments Account The Master Servicer shall maintain in full force and effect
each of the Demand Note and the Residual Payments Account Control Agreement and
maintain the existence of the Residual Payments Account.

      (h)   Electronic Signatures. To the extent any Student Loan Note
representing a FFELP Loan that is a Pledged Student Loan is evidenced by an
electronic promissory note or an electronic record, or to the extent the
signature of the obligor on any Student Loan Note representing a FFELP Loan that
is a Pledged Student Loan is an electronic signature, the Master Servicer shall
comply with all regulations, standards and other requirements provided by the
applicable Guarantor or the Department relating to the validity and
enforceability of such Student Loan Note, including without limitation the U.S.
Department of Education Standards for Electronic Signatures in Electronic
Student Loan Transactions, as revised or supplemented from time to time.

      SECTION 7.04. Negative Covenants of Issuer. From the date hereof until the
Final Payout Date, Issuer will not, without the prior written consent of the
Agent, the Conduit Lenders and the Majority Committed Lenders:

      (a)   Sales, Liens, Etc. Except as otherwise provided herein, sell, assign
(by operation of law or otherwise) or otherwise dispose of, or create or suffer
to exist (or permit the Eligible Lender Trustee to create or suffer to exist)
any Lien upon or with respect to, any Pledged Student Loan or other Collateral,
or any interest therein, or any account to which any Collections of or payments
on any Pledged Student Loans or other Collateral are sent, or any right to
receive

                                       43
<PAGE>

income or proceeds from or in respect of any of the foregoing; provided that
Issuer may (i) transfer a Pledged Student Loan that is an FFELP Loan (or a
Private Loan that has the benefit of a Private Loan Guarantee Agreement) to a
Guarantor if such Guarantor has paid the Principal Balance plus accrued interest
thereof to Issuer and (ii) transfer any FFELP Loans that are Pledged Student
Loans for consolidation purposes so long as Issuer shall have deposited to the
Collection Account the Principal Balance thereof, plus accrued and unpaid
interest thereon (to the extent not previously capitalized).

      (b)   Extension or Amendment. Extend, terminate, waive, amend or otherwise
modify the terms of any Pledged Student Loan, except pursuant to Section
7.03(a), or, without the prior written consent of the Agent, extend, terminate,
waive, amend or otherwise modify the terms of any other Transaction Document.

      (c)   Change in Business. Make any change in the character of its
business, which change could reasonably be expected to impair the collectibility
of any Pledged Student Loan or otherwise materially adversely affect the
interests or remedies of the Agent, the Indenture Trustee or Lenders under this
Agreement or any other Transaction Document.

      (d)   Consolidation, Mergers, etc. Merge into, or consolidate with, one or
more corporations or other entities, or be a party to any transaction involving
the transfer of any substantial portion of its assets, revenues or properties to
or with any corporation or other Person, without the prior written consent of
the Agent, the Conduit Lenders and the Majority Committed Lenders.

      (e)   Use of Proceeds. Use the proceeds of any Advance for any purpose
other than acquiring or making Student Loans, funding the Reserve Account and
paying fees and expenses incurred in connection with the transactions
contemplated by this Agreement.

      (f)   Master Servicer Limitations. Permit any Pledged Student Loans to be
serviced by any Sub-Servicer (other than the Sub-Servicers servicing the Pledged
Student Loans on the date hereof) without first obtaining the written consent of
the Agent, the Conduit Lenders and the Majority Committed Lenders.

      (g)   Guarantor Limitations. Permit any Pledged Student Loan (a) that is
an FFELP Loan to be guaranteed by any guaranty agency or entity other than (i)
an FFELP Guarantor or (ii) any other guaranty agency or entity specifically
approved as a Guarantor by the Agent, the Conduit Lenders and the Majority
Committed Lenders in advance hereunder in writing or (b) that is a Private Loan
covered by a Private Loan Guarantee Agreement to be guaranteed by any guaranty
agency or entity other than a Private Loan Guarantor.

      (h)   Payment Instructions. Change, nor permit the Originators, the Master
Servicer, or any Sub-Servicer, to change payment instructions to any Obligor
without the prior written consent of the Agent.

      (i)   ERISA. Establish or be a party to any plan, multiemployer plan or
benefit plan under ERISA.

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<PAGE>

      (j)   Issuer's Legal Status. Without providing at least 30 days prior
written notice to the Agent and satisfying all other requirements set forth in
this Agreement with respect to such action, change its name, place of business,
chief executive office, Location, mailing address or organizational
identification number or change its type of organization, jurisdiction of
organization or other legal structure.

      (k)   Credit and Collection Policies. Permit or implement any material
change in the Credit and Collection Policy without the prior written consent of
the Agent, the Conduit Lenders and the Majority Committed Lenders other than
such changes that are not within the discretion of the Issuer or Master
Servicer.

      (l)   Issuer's Ability to Conduct Business. (a) Guarantee any obligation
of any Person, including any Affiliate; (b) engage, directly or indirectly, in
any business other than the actions required or permitted to be performed under
the Transaction Documents; (c) incur, create or assume any Indebtedness not
arising under or expressly permitted by this Agreement or any other Transaction
Document; (d) make or permit to remain outstanding any loan or advance to, or
own or acquire any stock or securities of, any Person, except that the Issuer
may invest in those investments permitted under the Transaction Documents and
may make any advance required or expressly permitted to be made pursuant to any
provision of the Transaction Documents and permit the same to remain outstanding
in accordance with such provisions; (e) to the fullest extent permitted by law,
engage in any dissolution, liquidation, consolidation, merger, asset sale or
transfer of ownership interests other than such activities as are expressly
permitted under this Agreement; or (f) form, acquire or hold any subsidiary
(whether corporate, partnership, limited liability company or other).

      (m)   Business. Own assets or engage in any business other than the assets
and transactions specifically contemplated in this Agreement and the other
Transaction Documents.

                                  ARTICLE VIII

                              EVENTS OF TERMINATION

      SECTION 8.01. Events of Termination. The following events shall be "Events
of Termination" hereunder:

      (a)   Issuer or any Affiliated Originator shall fail to make (i) any
payment or deposit required to be made by it hereunder or under any other
Transaction Document when due (without giving effect to any payment or deposit
that is made from Advances made pursuant to Section 1.01(c)) or when due and
such failure shall continue unremedied for three Business Days after the Issuer
has knowledge or has received notice thereof or (ii) any payment of principal or
interest under the Note when due;

      (b)   Any representation or warranty (other than a representation and
warranty made or deemed made pursuant to Section 6.01(g) with respect to a
Pledged Student Loan as to which Issuer has complied with Section 6.02) made or
deemed made by Issuer (or any of its officers), the Administrator or any
Affiliated Originator under or in connection with this Agreement or any other
Transaction Document to which it is a party or any other information or report
delivered

                                       45
<PAGE>

pursuant hereto shall prove to have been false or incorrect in any material
respect when made and, to the extent such representation or warranty is capable
of being remedied, such representation or warranty shall not have been remedied
with in ten (10) Business Days' notice to or knowledge thereof by the Issuer;

      (c)   Issuer, the Administrator or any Affiliated Originator shall fail to
perform or observe (i) any term, covenant or agreement contained in Sections
7.01(c), 7.01(j), 7.01(k), 7.01(l), 7.01(m), 7.01(n), 7.01(o), 7.02 or 7.04 at
any time or (ii) any other term, covenant or agreement contained in this
Agreement or any of the other Transaction Documents on its part to be performed
or observed, other than those payment defaults identified in Section 8.01(a)
above, if such failure listed in subclause (ii) of this clause (c) shall remain
unremedied for the shorter of ten (10) Business Days after notice to or
knowledge thereof by the Issuer or the cure period provided for in any such
Transaction Document;

      (d)   An Event of Bankruptcy shall have occurred with respect to Issuer,
the Administrator, any Affiliated Originator, CFS or, to Issuer's knowledge, the
Eligible Lender Trustee;

      (e)   (i) Any litigation (including, without limitation, derivative
actions), arbitration proceedings or governmental proceedings not disclosed in
writing by Issuer to the Agent prior to the date of execution and delivery of
this Agreement is pending against Issuer or any of its Affiliates, or (ii) any
material development not so disclosed has occurred in any litigation (including,
without limitation, derivative actions), arbitration proceedings or governmental
proceedings so disclosed, which, in the case of clause (i) or (ii), in the
opinion of the Agent or the Lenders, has a reasonable likelihood of having a
Material Adverse Effect on the Issuer or any of its Affiliates;

      (f)   The Internal Revenue Service shall file notice of a lien pursuant to
Section 6323 of the Code with regard to any of the assets of Issuer or any of
its Affiliates and such lien shall not have been released within five Business
Days or the Pension Benefit Guaranty Corporation shall, or shall indicate its
intention to, file notice of a lien pursuant to Section 4068 of ERISA with
regard to any of the assets of Issuer or any of its Affiliates and such lien
shall not have been released within five Business Days;

      (g)   The Indenture Trustee shall fail to have a valid, perfected first
priority Lien on the Collateral, for the benefit of the Secured Parties;

      (h)   A Servicer Event of Default shall have occurred with respect to the
Master Servicer or any Affiliated Servicer;

      (i)   A Servicer Event of Default shall have occurred with respect to any
Third Party Servicer or a Sub-Servicing Agreement shall not be in full force and
effect for any reason, unless a replacement Third Party Servicer acceptable to
the Agent, the Conduit Lenders and the Majority Committed Lenders shall have
been identified and shall have executed a replacement Sub-Servicing Agreement
within 30 days of such event;

                                       46
<PAGE>

      (j)   The Coverage Condition is not satisfied with respect to any
Settlement Period or on any Calculation Date described in clause (b)(iii) of the
definition of Calculation Date and such condition continues for two (2) Business
Days;

      (k)   The average Excess Spread for any consecutive three month period is
less than 0.50% or the Excess Spread for any month is less than 0.35%;

      (l)   The Default Ratio for any calendar month exceeds (i) an annualized
rate of 5.00% in the case of the Private Loan Default Ratio or (ii) the default
ratio that maintains the highest Guarantee Payment then authorized under the
Higher Education Act, in the case of the Federal Default Ratio;

      (m)   Any amendment to the Higher Education Act or any other federal law
becomes effective that reduces the rate of return on Eligible Student Loans,
reduces the guaranteed value of Eligible Student Loans, imposes additional
requirements on servicers of Eligible Student Loans or in any other way
adversely affects the interests of the Agent or the Lenders to the extent that
such amendment would cause the value of the Collateral to cease being consistent
with a program rated "A2" by Moody's as reasonably determined by the Agent using
the ratings methodology the Agent employs for rating the Note;

      (n)   The Master Servicer, any Sub-Servicer, any Guarantor or the Eligible
Lender Trustee fails to comply with all material requirements and regulations
under the Higher Education Act;

      (o)   The Issuer shall fail to maintain its status as a single purpose
bankruptcy remote limited liability company;

      (p)   The Issuer, the Administrator, CFS, the Master Servicer, any
Affiliated Servicer or any Affiliated Originator shall fail to pay, or shall
default in the payment of, any principal or premium or interest on any
Indebtedness beyond any applicable grace period, or the Issuer, the
Administrator, CFS, the Master Servicer, any Affiliated Servicer or any
Affiliated Originator shall breach or default with respect to any other term of
any evidence of any Indebtedness (provided that for the Administrator, CFS, the
Master Servicer, an Affiliated Servicer or an Affiliated Originator, the amount
of such Indebtedness must be at least $250,000), or of any loan agreement,
mortgage, indenture or other agreement relating thereto, if such failure, breach
or default continues beyond any applicable grace period, if the effect of such
failure, default or breach (x) is to cause the holder or holders of that
Indebtedness (or a trustee on behalf of such holder or holders) to cause that
Indebtedness to become or be declared due prior to its stated maturity or (y)
would permit the holder of such Indebtedness to accelerate the maturity of such
Indebtedness;

      (q)   (i) One or more judgments for the payment of money shall be rendered
against the Issuer or (ii) one or more judgments for the payment of money in an
aggregate amount in excess of $100,000 shall be rendered against the
Administrator, CFS, the Master Servicer, any Affiliated Servicer, or any
Affiliated Originator and the same shall remain undischarged for a period of
thirty (30) consecutive days during which execution shall not be effectively
stayed or a satisfactory bond against such judgment shall not have been posted,
or any action shall be legally

                                       47
<PAGE>

taken by a judgment creditor to attach or levy upon any assets of the Issuer,
the Administrator, CFS, the Master Servicer, any Affiliated Servicer or any
Affiliated Originator to enforce any such judgment;

      (r)   A Material Adverse Change has occurred and is continuing in the
condition of the Issuer, the Administrator, CFS, any Affiliated Originator, the
Master Servicer, any Affiliated Servicer or the Eligible Lender Trustee;

      (s)   An Eligible Lender Trustee Event of Default shall have occurred or
any Eligible Lender Trust Agreement shall not be in full force and effect for
any reason;

      (t)   Either of the Demand Note or the Residual Payments Account Control
Agreement shall for any reason cease to be a legal, valid and binding obligation
of CFS enforceable in accordance with its terms; or the Residual Payments
Account shall cease to exist; or any breach or default shall occur under the
Demand Note or the Residual Payments Account Control Agreement; or CFS or any
Affiliate thereof (including any trustee in bankruptcy) shall exercise any right
of set-off against the indebtedness evidenced by the Demand Note or any other
Demand Note Collateral, shall assert the invalidity or unenforceability of the
Demand Note or any other Demand Note Collateral or shall assert the invalidity
or unenforceability of the pledge to the Indenture Trustee for the benefit of
the Secured Parties hereunder of any Demand Note Collateral; or the Issuer shall
fail to have a perfected security interest in the Demand Note Collateral,
subject only to the Intercreditor Agreement; and

      (u)   The Net Consolidation Ratio for any monthly period is greater than
1.1, the average Net Consolidation Ratio for any consecutive three month period
is greater than 1.09, or the average Net Consolidation Ratio for any consecutive
six month period is greater than 1.0.

      SECTION 8.02. Remedies.

      (a)   Optional Acceleration. Upon the occurrence of an Event of
Termination (other than an Event of Termination described in subsection (d) of
Section 8.01), the Agent may, or at the request of Required Lenders shall,
declare that the Facility Termination Date has occurred and the unpaid principal
amount of the Note to be due and payable immediately, by a notice in writing to
Issuer, and upon any such declaration, the Facility Termination Date shall occur
and such principal amount shall be immediately due and payable, together with
all accrued and unpaid interest thereon (to the extent not previously
capitalized), without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by Issuer.

      (b)   Automatic Acceleration. Upon the occurrence of an Event of
Termination described in subsection (d) of Section 8.01, with respect to the
Issuer the Facility Termination Date shall occur automatically and the unpaid
principal amount of the Note shall automatically become due and payable,
together with all accrued and unpaid interest thereon (to the extent not
previously capitalized), without presentment, demand, protest or notice of any
kind, all of which are hereby waived by Issuer.

      (c)   Master Servicer Replacement. Upon the occurrence of an Event of
Termination, the Agent or the Lenders shall have the right to replace the Master
Servicer.

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<PAGE>

      (d)   Additional Remedies. Upon any acceleration of the Note pursuant to
this Section 8.02, no Borrowings thereafter will be made, and the Agent, the
Lenders, and the Indenture Trustee shall have, in addition to all other rights
and remedies under this Agreement or otherwise, all other rights and remedies
provided under the UCC of each applicable jurisdiction and other applicable laws
to a secured party, which rights shall be cumulative, including, without
limitation, the right to foreclose upon the Collateral and sell all or any
portion thereof at public or private sale (and Issuer agrees that, to the extent
that notice of such sale is required, notice 10 days prior to such sale shall be
adequate and reasonable notice for all purposes); provided however that if the
acceleration of the Note results solely from the failure of one or more
Committed Lenders to extend the Facility Termination Date pursuant to Section
1.07 and no additional Event of Termination has occurred and is continuing, the
Agent shall refrain from selling all or any portion of the Collateral or
replacing the Master Servicer until on or after the date which is 90 days after
the Facility Termination Date. The Issuer has provided the Agent with a power of
attorney authorizing the Agent to endorse the Pledged Student Loans which the
Agent agrees to exercise only upon the occurrence of and during the continuation
of an Event of Termination.

      (e)   Portfolio Valuation. Upon the occurrence of any Event of
Termination, or at any time after five Business Days prior notice to the Issuer,
the Agent may at its discretion (and shall at the request of the Lenders)
perform a Portfolio Valuation on some or all of the Student Loans constituting a
portion of the Collateral.

      (f)   Setoff; Sharing of Payments. Regardless of the other means of
obtaining payment of any of the obligations of the Issuer or the Master Servicer
hereunder or under any other Transaction Document, each of the Agent, the
Indenture Trustee, the Lenders and any Program Support Provider is hereby
authorized at any time and from time to time, without notice to the Issuer or
the Master Servicer (any such notice being expressly waived by the Issuer and
the Master Servicer) and to the fullest extent permitted by law, to set off and
apply such deposits and other sums against the obligations of the Issuer or the
Master Servicer, as applicable, under this Agreement and the other Transaction
Documents, whether or not the Agent, the Indenture Trustee, the Lenders or
Program Support Provider shall have made any demand under this Agreement or the
other Transaction Documents and although such obligations may be contingent or
unmatured. Except as may be otherwise provided herein, the Lenders, the Agent
and the Program Support Providers agree that all setoffs and other recoveries
from the Issuer or the Master Servicer shall be shared ratably amongst the
Lenders, the Agent and the Program Support Providers.

      (g)   Demand Note; Residual Payments Account. The Agent and the Indenture
Trustee agree that they shall only exercise their right to demand payment under
the Demand Note or their right to deliver a Notice of Exclusive Control under
the Residual Payments Account Control Agreement on or after the occurrence of
and during the continuance of an Event of Termination and subject to the
Intercreditor Agreement. Subject to the Intercreditor Agreement, upon the
occurrence of and during the continuance of an Event of Termination, the Agent
may, and at the request of the Required Lenders shall, (i) direct the Indenture
Trustee to demand payment under the Demand Note in accordance with the terms of
the Demand Note and the Residual Payments Account Control Agreement, (ii)
exercise remedies available under the Demand Note and (iii) take exclusive
control over the Residual Payments Account pursuant to the Residual Payments

                                       49
<PAGE>

Account Control Agreement and terminate or suspend the ability of the Issuer or
CFS to make withdrawals therefrom. All rights of the Indenture Trustee and the
Agent in the Demand Note and the Residual Payments Account Control Agreement
shall terminate upon the payment in full of all of Issuer's obligations
hereunder and under the other Transaction Documents and the reasonable
determination by Agent that no further amounts with respect to Covered Claims
against the Issuer, the Master Servicer, the Administrator, any Affiliated
Servicer or any other Affiliate of Issuer pursuant to this Agreement, any
Sub-Servicing Agreement or any other Transaction Document could be required.

                                   ARTICLE IX

                          THE AGENT; INDENTURE TRUSTEE

      SECTION 9.01. Authorization and Action. The Lenders have appointed and
authorized the Agent (or its designees) to take such action as agent on their
behalf and to exercise such powers under this Agreement as are delegated to the
Agent by the terms hereof, together with such powers as are reasonably
incidental thereto. The provisions of this Article IX are solely for the benefit
of the Agent and the Lenders. The Issuer shall not have any rights as a
third-party beneficiary or otherwise under any of the provisions hereof.

      SECTION 9.02. Agent's Reliance, Indemnification, Etc. (a) The Agent and
its directors, officers, agents or employees shall not be liable for any action
taken or omitted to be taken by it or them under or in connection with the
Transaction Documents except for its or their own gross negligence, bad faith or
willful misconduct. Without limiting the generality of the foregoing, the Agent:
(a) may consult with legal counsel (including counsel for Issuer or any
Affiliate of Issuer), independent certified public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (b) makes no warranty or representation to the Lenders
or any other holder of any interest in the Collateral and shall not be
responsible to the Lenders or any such other holder for any statements,
warranties or representations made or deemed made in or in connection with any
Transaction Document; (c) shall not have any duty to ascertain or to inquire as
to the performance or observance of any of the terms, covenants or conditions of
any Transaction Document on the part of Issuer or the Master Servicer or to
inspect the property (including the books and records) of Issuer or the Master
Servicer; (d) shall not be responsible to the Lenders or any other holder of any
interest in the Collateral for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of any Transaction Document;
and (e) shall incur no liability under or in respect of this Agreement by acting
upon any notice (including notice by telephone), consent, certificate or other
instrument or writing (which may be by facsimile or telex) believed by it to be
genuine and signed or sent by the proper party or parties.

      (b)   Each Lender agrees to reimburse and indemnify the Agent and its
officers, directors, employees, representatives, counsel and agents (to the
extent the Agent is not paid or reimbursed by the Issuer and the Master
Servicer), ratably according to the respective principal amounts of the Total
Outstanding Advances then held by each of them (or if the Total Outstanding
Advances are equal to zero are such time, ratably in accordance with their Pro
Rata

                                       50
<PAGE>

Shares), (i) from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against the Agent in any way relating to or arising out of this
Agreement or any other Transaction Document or any action taken or omitted by
the Agent under this Agreement or any the Transaction Document, provided that no
Lender shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Agent's gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to reimburse the Agent promptly
upon demand for its ratable share of any out-of-pocket expenses (including
counsel fees) incurred by the Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement or any
other Transaction Document, to the extent that the Agent is not reimbursed for
such expenses by the Issuer and the Master Servicer.

      SECTION 9.03. Agent and Affiliates. With respect to any Advance made by
the Agent, the Agent shall have the same rights and powers under this Agreement
as would a Lender if it had made such Advance (or portion thereof) and may
exercise the same as though such Person were not the Agent hereunder. The Agent
and any of its Affiliates may generally engage in any kind of business with
Issuer, the Master Servicer, any Obligor, any of their respective Affiliates and
any Person who may do business with or own securities of Issuer, the Master
Servicer, any Obligor or any of their respective Affiliates, all as if Agent was
not serving in such capacity and without any duty to account therefor to the
Lenders or any other holder of an interest in the Collateral.

      SECTION 9.04. Lender's Purchase Decision. Each Lender acknowledges that it
has, independently and without reliance upon the Agent, any Affiliate of the
Agent or any other Lender, and based on such documents and information as it has
deemed appropriate, made its own evaluation and decision to enter into this
Agreement and, if it so determines, to make Advances hereunder. Each Lender also
acknowledges that it will, independently and without reliance upon the Agent,
any Affiliate of the Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
decisions in taking or not taking action under this Agreement.

      SECTION 9.05. Delegation of Duties. The Agent may delegate each or any of
its duties under this Agreement by or through agents or attorneys-in-fact and
shall be entitled to advice of counsel concerning all matters pertaining to such
duties. The Agent shall not be responsible for the negligence or misconduct of
any agents or attorneys-in-fact selected by it with reasonable care.

      SECTION 9.06. Successor Agent. (a) The Agent may, upon thirty (30) days'
notice to Issuer, each Lender and each other party hereto, resign as Agent. If
the Agent shall resign, then, the Lenders during such thirty-day period shall
appoint a successor agent, whereupon such successor agent shall succeed to the
rights, powers and duties of the Agent and references herein to the Agent shall
mean such successor agent, effective upon its appointment; and such former
Agent's rights, powers and duties in such capacity shall be terminated, without
any other or further act or deed on the part of such former Agent or any of the
parties to this Agreement. If

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<PAGE>

no such successor agent is appointed within such thirty-day period, the Agent
may petition a court of competent jurisdiction to appoint a successor Agent.
After any retiring Agent's resignation hereunder as such agent, the provisions
of this Article IX, Article XI and Section 13.05 shall inure to its benefit as
to any actions taken or omitted to be taken by it while it was Agent under this
Agreement.

      (b)   The "Agent" shall include any successors to the Agent as a result of
a merger, consolidation, combination, conversion, reorganization or any other
transaction (or series of related transactions) in which shares of the Agent's
capital stock are sold or exchanged for or converted or otherwise changed into
other stock or securities, cash and/or any other property, or the sale, lease,
assignment, transfer or other conveyance of a majority of the assets of the
Agent in any transaction (or series of related transactions). Notwithstanding
anything to the contrary in Section 9.06(a) and Section 10.01(c), no consent of
the Lenders shall be required in connection with the succession of the Agent as
a result of any of the foregoing transactions.

      SECTION 9.07. Acceptance of the Trusts. Each Lender hereby appoints U.S.
Bank National Association, as Indenture Trustee hereunder. The Indenture Trustee
accepts and agrees to execute the trusts granted to it by this Agreement, but
only upon the terms and conditions set forth herein. The Indenture Trustee,
prior to the occurrence of an Event of Termination and after the curing of all
Events of Termination which may have occurred, undertakes to perform such duties
and only such duties as are specifically set forth in this Agreement and no
implied covenants or obligations shall be read into this Agreement against the
Indenture Trustee. The Indenture Trustee shall not be liable for any of its
actions or inactions hereunder except to the extent that such actions constitute
negligence or willful misconduct by the Indenture Trustee.

      In case an Event of Termination has occurred of which the Indenture
Trustee has, or is deemed to have, notice in accordance with this Agreement and
has not been cured, the Indenture Trustee agrees to act in accordance with the
instructions and orders of the Agent, but in any such event, only upon and
subject to the following expressed terms and conditions:

      (a)   The Indenture Trustee may execute any of the trusts or powers hereof
and perform any of its duties by or through attorneys, agents, receivers,
employees or co-trustees but shall be responsible for the conduct of the same in
accordance with the standard specified above, except as otherwise provided
herein and except for the acts and omissions of agents of Persons other than the
Indenture Trustee chosen by Issuer and approved by the Agent and shall be
entitled to advice of counsel concerning all matters of trusts hereof and the
duties hereunder, and may in all cases pay such reasonable compensation to all
such attorneys, agents, receivers, and employees as may reasonably be employed
in connection with the trusts hereof. The Indenture Trustee may act upon the
opinion or advice of an attorney or accountant selected by it in the exercise of
reasonable care. The Indenture Trustee shall not be responsible for any loss or
damage resulting from any action or nonaction of such Person which is in good
faith and in reliance upon such opinion or advice. The Indenture Trustee shall
not be responsible for any action or inaction of the Master Servicer, any
Sub-Servicer or any party hereto except as provided herein or under applicable
laws, rules and regulations.

      (b)   The Indenture Trustee shall not be responsible for any recital
herein, or in the Note, or for the validity of the execution by Issuer of this
Agreement, or of any supplemental

                                       52
<PAGE>

indentures or instruments of further assurance, or for the sufficiency of the
security for the Note issued hereunder or intended to be secured hereby, or for
the value or title of the property herein conveyed or otherwise as to the
maintenance of the security hereof.

      (c)   The Indenture Trustee shall not be accountable for the use or
application by Issuer of the Note or the proceeds thereof or for the use or
application of any money paid over by the Indenture Trustee in accordance with
the provisions of this Agreement or for the use and application of other money
received by the Indenture Trustee.

      (d)   The Indenture Trustee shall be protected in acting upon any notice,
requisition, request, consent, certificate, order, opinion, affidavit, letter,
telegram or other paper or document reasonably believed to be genuine and
correct and to have been signed or sent by the proper Person or Persons. Any
action taken by the Indenture Trustee pursuant to this Agreement upon the
request or authority or consent of any Person who at the time of making such
request or giving such authority or consent is the owner of the Note shall be
conclusive and binding upon all future owners of the Note and upon any Notes
issued in exchange therefor or in place thereof.

      (e)   Except as otherwise expressly provided in this Agreement, as to the
existence or nonexistence of any fact or as to the sufficiency or validity of
any instrument, paper or proceeding, the Indenture Trustee shall be entitled to
rely upon a certificate of the Agent as sufficient evidence of facts therein
contained, and prior to the occurrence of a default of which the Indenture
Trustee has been notified as provided in subsection (g) of this Section, or of
which by said subsection it is deemed to have notice, shall also be at liberty
to accept a dealing, transaction or action as necessary or expedient, but may at
its discretion secure such further evidence deemed necessary or advisable, but
shall in no case be bound to secure the same.

      (f)   The permissive right of the Indenture Trustee to do things
enumerated in this Agreement shall not be construed as a duty. The Indenture
Trustee shall not be answerable for other than its negligence or willful
misconduct; provided, however, that the Indenture Trustee shall not be liable
for any error of judgment made in good faith, unless it shall be proved that
such Person was negligent in ascertaining the pertinent facts.

      (g)   The Indenture Trustee shall not be required to take notice or be
deemed to have notice of any Event of Termination or other default hereunder
except failure by Issuer to cause to be made any of the payments to the
Indenture Trustee for the account of the Lenders required to be made by Article
III, or Events of Termination under clause (a) of Section 8.01, unless the
Indenture Trustee shall be specifically notified in writing of such default by
Issuer, the Lenders or the Agent.

      (h)   The Indenture Trustee shall not be required to give any bond or
surety in respect of the execution of the said trusts and powers or otherwise in
respect of the premises.

      (i)   No provision of this Agreement shall require the Indenture 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.

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<PAGE>

      (j)   If any Event of Termination under this Agreement shall have occurred
and be continuing, the Indenture Trustee shall exercise such of the rights and
powers vested in it by this Agreement, and shall use the same degree of care as
a prudent person would exercise or use in the circumstances in the conduct of
his or her own affairs.

      (k)   All moneys received by the Indenture Trustee shall, until used or
applied or invested as herein provided, be held in trust for the purposes for
which they were received in the Collection Account.

      (l)   The Indenture Trustee shall file Uniform Commercial Code
continuation statements to the Uniform Commercial Code financing statements in
favor of the Indenture Trustee originally filed at the delivery of this
Agreement prior to every fifth year.

      (m)   Whether or not herein expressly so provided, every provision of this
Agreement relating to the conduct or affecting the liability of or affording
protection to the Indenture Trustee shall be subject to the provisions of this
Section 9.07.

      SECTION 9.08. Fees, Charges and Expenses of Indenture Trustee. The
Indenture Trustee shall be entitled to payment of the Indenture Trustee's Fees
for its services rendered hereunder and to payment of, or reimbursement for, all
advances, reasonable counsel fees and expenses and other out-of-pocket expenses
reasonably and necessarily made or incurred by the Indenture Trustee, in
connection with such services and waives any lien on the Collateral with respect
to accrued and unpaid fees and reasonable expenses, including any
indemnification pursuant to Section 9.18, other than any such lien arising
pursuant to the Transaction Documents.

      SECTION 9.09. Notice to Lenders if Event of Termination Occurs. If an
Event of Termination occurs of which the Indenture Trustee is by Section 9.07(g)
required to take notice or if notice of default be given as provided in said
Section 9.07(g), then the Indenture Trustee shall give written notice thereof by
registered or certified mail to Issuer, the Lenders and the Agent.

      SECTION 9.10. Intervention by Indenture Trustee. To the extent permitted
by applicable law, in any judicial proceeding to which Issuer is a party, the
Indenture Trustee shall intervene if directed to do so in writing by the Agent.

      SECTION 9.11. Successors. Any corporation or association into which the
Indenture Trustee may be converted or merged, or with which it may be
consolidated, or to which it may sell or transfer its corporate trust business
and assets as a whole or substantially as a whole, or any corporation or
association resulting from any such conversion, sale, merger, consolidation or
transfer to which it is a party, ipso facto, shall be and become successor
Indenture Trustee hereunder and vested with all of the title to the whole
property or trust estate and all the trusts, powers, discretions, immunities,
privileges and all other matters as was its predecessor, without the execution
or filing of any instrument or any further act, deed or conveyance on the part
of any of the parties hereto, anything herein to the contrary notwithstanding.

      SECTION 9.12. Resignation. The Indenture Trustee may at any time resign
from the trusts hereby created by giving 90 days' written notice to Issuer and
the Agent, and such resignation shall take effect at the end of such 90 days, or
upon the earlier appointment and

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<PAGE>

acceptance of a successor Indenture Trustee, as provided in Section 9.14,
hereof, or removal as provided in Section 9.13 hereof. Notwithstanding the
foregoing, resignation of the Indenture Trustee shall not be effective until a
successor or temporary Indenture Trustee is appointed and has accepted such
appointment; provided, however, if an instrument of acceptance shall not have
been delivered within 120 days after giving such notice of resignation, the
resigning Indenture Trustee may petition a court of competent jurisdiction for
the appointment of a successor, and any attorneys' fees and expenses incurred in
connection with such petition shall be payable by Issuer, unless such failure is
due to the gross negligence, bad faith or willful misconduct of the Agent in not
exercising its rights under Section 9.14, in which event such fees and expenses
shall be paid by the Agent.

      SECTION 9.13. Removal. The Indenture Trustee may be removed by the Agent
at any time, by an instrument in writing delivered to the Indenture Trustee,
with, prior to the occurrence of an Event of Termination, the written consent of
the Issuer which consent shall not be unreasonably withheld. Notwithstanding the
foregoing, removal of the Indenture Trustee shall not be effective until a
successor is appointed and has accepted such appointment.

      SECTION 9.14. Appointment of Successor. In case the Indenture Trustee
shall resign or be removed, or be dissolved, or shall be in course of
dissolution or liquidation, or otherwise become incapable of acting hereunder,
or in case it shall be taken under the control of any public officer or
officers, or of a receiver appointed by a court, a successor may be appointed by
the Agent with the consent (which consent shall not be unreasonably withheld) of
Issuer by an instrument in writing signed by the Agent. If in a proper case no
appointment of a successor Indenture Trustee shall be made pursuant to the
foregoing provisions of this Section 9.14 within 15 days after the Indenture
Trustee shall have given written notice as provided in Section 9.12 hereof, the
Indenture Trustee, Issuer, the Agent or the Lenders may apply to a court of
jurisdiction to appoint a successor Indenture Trustee. Said court may thereupon,
after such notice, if any, as such court may deem proper and prescribe, appoint
a successor Indenture Trustee. Each such successor Indenture Trustee must be an
eligible lender under the Higher Education Act and shall agree in writing to be
bound by the provisions of Section 13.06.

      SECTION 9.15. Concerning Any Successor. Every successor Indenture Trustee
appointed hereunder shall execute, acknowledge and deliver to its predecessor
and also to Issuer and the Agent an instrument in writing accepting such
appointment hereunder, and thereupon such successor, without any further act,
deed or conveyance, shall become fully vested with all the estates, properties,
rights, powers, trusts, duties and obligations of its predecessor; but such
predecessor shall, nevertheless, upon receipt of a request from the Agent
execute and deliver an instrument transferring to such successor all the
estates, properties, rights, powers and trusts of such predecessor hereunder;
and every predecessor shall deliver all securities and moneys held by it as
Indenture Trustee hereunder to its successor.

      SECTION 9.16. Appointment of Co-Trustee. It is the purpose of this
Agreement that there shall be no violation of any law of any jurisdiction
denying or restricting the right of banking corporations or associations to
transact business as the Indenture Trustee in such jurisdiction. It is
recognized that in case of litigation under this Agreement or any other
Transaction Document or any Student Loan or related agreement, and in particular
in case of the enforcement thereof on default, or in case of a conflict of
interest, or in case the Indenture

                                       55
<PAGE>

Trustee deems that by reason of any present or future law of any jurisdiction it
may not exercise any of the powers, rights or remedies herein granted to the
Indenture Trustee or hold title to the properties, in trust, as herein granted,
or take any other action which may be desirable or necessary in connection
therewith, it may be necessary that the Indenture Trustee appoint an additional
institution, which must be a commercial bank with trust powers, as a separate or
co-trustee. The following provisions of this Section 9.16 are intended to
accomplish these ends. In the event that the Indenture Trustee appoints an
additional individual or institution as a separate or co-trustee, each and every
remedy, power, right, claim, demand, cause of action, immunity, estate, title,
interest and lien expressed or intended by this Agreement to be exercised by or
vested in or conveyed to the Indenture Trustee with respect thereto shall be
exercisable by and vest in such separate or co-trustee but only to the extent
necessary to enable such separate or co-trustee to exercise such powers, rights
and remedies, and every covenant and obligation necessary to the exercise
thereof by such separate or co-trustee shall run to and be enforceable by either
of them.

      Should any instrument in writing from Issuer be required by the separate
or co-trustee so appointed by the Indenture Trustee for more fully and certainly
vesting in and confirming to him, her or it such properties, rights, powers,
trusts, duties and obligations, any and all such instruments in writing shall,
on request, be executed, acknowledged and delivered by Issuer. In case any
separate or co-trustee, or a successor to either, shall die, become incapable of
acting, resign or be removed, all the estates, properties, rights, powers,
trusts, duties and obligations of such separate or co-trustee, so far as
permitted by law, shall vest in and be exercised by the Indenture Trustee until
the appointment of a new Indenture Trustee or a successor to such separate or
co-trustee.

      SECTION 9.17. Successor Indenture Trustee as Trustee of Funds. In the
event of a change of the Indenture Trustee the predecessor which has resigned or
been removed shall cease to be trustee of any funds then held by it hereunder
and the successor Indenture Trustee shall become such trustee.

      SECTION 9.18. Indemnification.

      (a)   The Indenture Trustee shall not be under any obligation or duty to
perform any act at the request of the Agent or Issuer or to institute or defend
any suit in respect hereof or to exercise any remedy hereunder unless properly
indemnified to its satisfaction subject to Section 9.07(i) hereof. The Indenture
Trustee shall not be required to take notice, or be deemed to have knowledge, of
any default of Issuer, except as provided in Section 9.07(g).

      (b)   Issuer agrees to indemnify the Indenture Trustee for, and to hold it
harmless against, any loss, liability or expense, including attorneys' fees,
incurred without gross negligence, bad faith or willful misconduct on the
Indenture Trustee's part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and
expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder except as a
result of gross negligence, bad faith or willful misconduct on its part and
except any liability to the Department on account of the Indenture Trustee's
status as such.

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<PAGE>

      SECTION 9.19. Amendments; Waivers. Neither the Eligible Lender Trustee nor
the Indenture Trustee shall extend, terminate, waive, amend or otherwise modify
the terms of any Pledged Student Loan, except pursuant to Section 7.03(a), or,
without the prior written consent of the Agent, extend, terminate, waive, amend
or otherwise modify the terms of any other Transaction Document.

                                    ARTICLE X

                         ASSIGNMENT OF LENDER'S INTEREST

      SECTION 10.01. Restrictions on Assignments.

      (a)   This Agreement and each Lender's rights and obligations herein
(including ownership of the Note) shall be assignable, in whole or in part, by
such Lender and its successors and assigns with the prior written consent of the
Agent and the Issuer; provided, however, that the consent of the Issuer shall
not be unreasonably withheld and the consent of the Issuer shall not be required
if an Event of Termination shall have occurred and be continuing; and provided,
further, that no consent of the Issuer shall be required if the assignment is
made (a) by any Committed Lender to CNAI, to any other Committed Lender, to any
Affiliate of CNAI or any Committed Lender (other than a director or officer of
CNAI or such Committed Lender), to any Program Support Provider or any Person
which (i) is in the business of issuing commercial paper notes and (ii) is
associated with or administered by CNAI or any Affiliate of CNAI or (b) by any
Conduit Lender to any Program Support Provider or any Person which (i) is in the
business of issuing commercial paper notes and (ii) is associated with or
administered by CNAI or any Affiliate of CNAI. Each assignor may, in connection
with the assignment, disclose to the applicable assignee any information
relating to Issuer or the Collateral furnished to such assignor by or on behalf
of the Lenders, Issuer or the Agent.

      (b)   Each Lender may at any time grant to any Program Support Provider
participating interests in the Advances. In the event of any such grant by such
Lender of a participating interest to a Program Support Provider, except as set
forth in paragraph (f) below, such Lender shall remain solely responsible for
the performance of its obligations hereunder. Issuer agrees that each Program
Support Provider shall be entitled to the benefits of Sections 4.02 and 4.03.

      (c)   This Agreement and the rights and obligations of the Agent hereunder
shall be assignable, in whole or in part, by the Agent and its successors and
assigns with the consent of Issuer, which consent shall not be unreasonably
withheld; provided that, if (i) such assignment is to an Affiliate of CNAI, (ii)
it becomes unlawful for CNAI to serve as the Agent or (iii) an Event of
Termination exists, no such consent of Issuer shall be necessary.

      (d)   Issuer may not assign its rights or delegate its obligations
hereunder or any interest herein without the prior written consent of the Agent
and the Lenders.

      (e)   Without limiting any other rights that may be available under
applicable law, the rights of the Lenders may be enforced through them or by
their agents.

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<PAGE>

      (f)   In the event that the Advances have been assigned in their entirety
pursuant to one or more Program Support Agreements, and the Agent requests that
Issuer acknowledge the assignment of the Advances to the Program Support
Providers parties to such Program Support Agreements (or an agent on their
behalf). Issuer agrees (i) to enter into such amendments to this Agreement and
the other Transaction Documents as the Agent or the Lenders may reasonably
request in order to reflect the substitution of such Program Support Providers,
or an agent therefor, as the Lenders and the release of the Lenders of all
further obligations hereunder, (ii) to authorize and deliver Uniform Commercial
Code financing statements, or amendments thereto or assignments thereof, to
reflect such assignment and substitution and (iii) to take such other actions as
the Agent or the Lenders shall reasonably request in connection with such
assignment, release and substitution.

      (g)   Any Lender may, without consent of the Issuer, sell participations
to one or more banks or other entities (each, a "Participant") in all or a
portion of its rights and obligations hereunder (including the outstanding
Advances); provided that following the sale of a participation under this
Agreement (i) the obligations of such Lender shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Issuer, the Agent, the other
Lenders and the Master Servicer shall continue to deal solely and directly with
such Lender in connection with such Lender's rights and obligations under this
Agreement. Any agreement or instrument pursuant to which such Lender sells such
a participation shall provide that the Participant shall not have any right to
direct the enforcement of this Agreement or the other Transaction Documents or
to approve any amendment, modification or waiver of any provision of this
Agreement or the other Transaction Documents; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver that (i) reduces the
amount of principal or interest that is payable on account of any Advance or
delays any scheduled date for payment thereof or (ii) reduces any fees payable
by the Issuer to the Agent (to the extent relating to payments to the
Participant) or delays any scheduled date for payment of such fees. The Issuer
acknowledges and agrees that the Lenders' sources of funds may derive in part
from their Participants. Accordingly, references in Sections 4.01, 4.02, 4.03,
13.05 and the other terms and provisions of this Agreement and the other
Transaction Documents to determinations, reserve and capital adequacy
requirements, expenses, increased costs, reduced receipts and the like as they
pertain to the Lenders shall be deemed also to include those of their
Participants.

      SECTION 10.02. Rights of Assignee. Upon the assignment by a Lender in
accordance with this Article X, the assignee receiving such assignment shall
have all of the rights of such Lender with respect to the Transaction Documents
and the Collateral (or such portion thereof as has been assigned).

      SECTION 10.03. Evidence of Assignment. Any assignment of a Lender's rights
and obligations hereunder, the Commitment and the Note (or any portion thereof)
to any Person may be evidenced by an Assignment and Assumption Agreement or such
other instrument(s) or document(s) as may be satisfactory to the assigning
Lender, the Agent and the assignee.

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<PAGE>

                                   ARTICLE XI

                                 INDEMNIFICATION

      SECTION 11.01. Indemnities.

      (a)   General Indemnity. Without limiting any other rights that any such
Person may have hereunder or under applicable law (including, without
limitation, the right to recover damages for breach of contract), Issuer hereby
agrees to indemnify each of the Agent, the Lenders, the Program Support
Providers, the Indenture Trustee, the Eligible Lender Trustee, the Master
Servicer (if not an Affiliated Originator or an Affiliate of the Affiliated
Originator), each of their respective Affiliates, and all successors,
transferees, participants and assigns and all officers, directors, employees and
agents of any of the foregoing (each an "Indemnified Party"), from and against
any and all damages, losses, claims, liabilities and related costs and expenses,
including reasonable attorneys' fees and disbursements (all of the foregoing
being collectively referred to as "Indemnified Amounts") awarded against or
incurred by any of them arising out of or relating to the Transaction Documents
or the funding of the Advances or in respect of any Pledged Student Loan,
excluding, however, (a) Indemnified Amounts to the extent determined by a court
of competent jurisdiction to have resulted from gross negligence or willful
misconduct on the part of such Indemnified Party or (b) recourse for Defaulted
Pledged Student Loans (except as specifically provided herein). Without limiting
the foregoing, Issuer shall indemnify each Indemnified Party for Indemnified
Amounts arising out of or relating to:

            (i)   the adjustment or any non-cash reduction in the outstanding
      Principal Balance of any Pledged Student Loan other than as expressly
      permitted hereunder;

            (ii)  the transfer by Issuer of any interest in the Collateral other
      than the grant of a security interest granted to the Indenture Trustee,
      for the benefit of the Secured Parties, pursuant to Section 1.03;

            (iii) any representation or warranty made or deemed made by Issuer
      (or any of its officers or Affiliates) under or in connection with any
      Transaction Document or any other information or report delivered by or on
      behalf of Issuer pursuant hereto, which shall have been false, incorrect
      or misleading in any respect when made or deemed made;

            (iv)  the failure by Issuer to comply with any applicable law, rule
      or regulation with respect to any Pledged Student Loan, including, with
      respect to any FFELP that is a Pledged Student Loan, the Higher Education
      Act or the nonconformity of any Pledged Student Loan with any such
      applicable law, rule or regulation, including, with respect to any FFELP
      Loan that is a Pledged Student Loan, the Higher Education Act;

            (v)   the failure to vest and maintain vested in the Indenture
      Trustee, for the benefit of the Secured Parties, a first priority
      perfected security interest, in the Collateral, free and clear of any
      Lien, other than a Lien arising solely as a result of an act of the
      Lenders or the Agent, whether existing at the time of any Borrowing or at
      any time thereafter;

                                       59
<PAGE>

            (vi)  the failure to file, or any delay in filing, financing
      statements, continuation statements or other similar instruments or
      documents under the UCC of any applicable jurisdiction or other applicable
      laws with respect to any item of the Collateral, whether at the time of
      any Borrowing or at any time thereafter;

            (vii) any dispute, claim, offset or defense (other than discharge in
      bankruptcy) of the Obligor to the payment of any Student Loan or Guarantee
      Agreement in, or purporting to be in, the Collateral (including, without
      limitation, a defense based on such Student Loan or Guarantee Agreement
      not being a legal, valid and binding obligation of such Obligor
      enforceable against it in accordance with its terms);

            (viii) any Regulatory Change after the date of this Agreement that
      results in any Non-Excluded Tax, all interest and penalties thereon or
      with respect thereto, and all out-of-pocket costs and expenses, including
      the reasonable fees and expenses of counsel in defending against the same,
      which may arise by reason of the Advances, or any interest in the item of
      the Collateral;

            (ix)  the failure by the Issuer to comply with any term, provision
      or covenant contained in any Transaction Document to which it is party;

            (x)   any Lien (other than the Lien granted to the Indenture Trustee
      under this Agreement) attaching to any Student Loan or any Related
      Security or Collections with respect thereto, whether existing at the time
      that such Student Loan initially arose or at any time thereafter;

            (xi)  any claim or action of whatever sort arising out of or in
      connection with the origination or servicing of any Student Loan or any
      other services which gave rise to any Student Loan to the extent such
      origination, servicing or services were provided by the Issuer or an
      Affiliate of the Issuer or, if such origination, servicing or services
      were provided by a Person not the Issuer or an Affiliate of the Issuer, to
      the extent the Issuer is entitled to recover such Indemnified Amounts from
      such non-Affiliate or another Person;

            (xii) the failure to pay when due any taxes and fees payable by the
      Issuer or any Originator in connection with the Collateral or the
      execution, delivery, filing and recording of this Agreement or the other
      agreements and documents to be delivered hereunder (including any UCC
      financing statements);

            (xiii) the payment by such Indemnified Party of taxes, including,
      without limitation, any taxes imposed by any jurisdiction on amounts
      payable and any liability (including penalties, interest and expenses)
      arising therefrom or with respect thereto, to the extent caused by the
      Issuer's actions or failure to act in breach of this Agreement;

            (xiv) the commingling of Collections with any other funds of the
      Issuer or any Affiliate of the Issuer;

            (xv)  any failure by the Issuer to give reasonably equivalent value
      to any Originator in consideration for the transfer by such Originator to
      the Issuer of any Student Loans, or any attempt by any Person to void any
      such transfer under any statutory

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      provision or common law or equitable action, including, without
      limitation, any provision of the Bankruptcy Code;

            (xvi) the failure of the Master Servicer or any Sub-Servicer perform
      its servicing and other obligations under the Transaction Documents or to
      remit any Collections pursuant to the instructions of the Agent or the
      Indenture Trustee given in accordance with this Agreement, whether by
      reason of the exercise of setoff rights or otherwise;

            (xvii) any investigation, litigation or proceeding related to this
      Agreement or the use of proceeds of purchases made pursuant to this
      Agreement or any other Transaction Document delivered hereunder or in
      respect of any of the Student Loans related hereto;

            (xviii) any claim brought by any Person arising from any activity by
      the Issuer or an Affiliate of the Issuer in servicing, administering or
      collecting any Student Loan; or

            (xix) the sale or pledge by the Issuer or any Originator of any
      Student Loan in violation of any applicable law, rule or regulation.

The exclusion in clause (b) of the first sentence of this Section 11.01 shall
not apply to any Indemnified Amounts described in clauses (i) through (xix)
above. Any amounts subject to the indemnification provisions of this Section
11.01 shall be paid by the Issuer to the related Indemnified Party within five
Business Days following demand therefor accompanied by reasonable supporting
documentation with respect to such amounts; provided, however, that no amounts
payable hereunder shall be paid to the Master Servicer if the Master Servicer is
an Affiliated Originator or an Affiliate of the Affiliated Originator or of the
Issuer until all amounts payable hereunder are made to the other Indemnified
Parties.

      (b)   Contest of Tax Claim; After-Tax Basis. If any Indemnified Party
shall have notice of any attempt to impose or collect any tax or governmental
fee or charge for which indemnification will be sought from Issuer under Section
11.01(a)(viii), such Indemnified Party shall give prompt and timely notice of
such attempt to Issuer. Indemnification hereunder shall be in an amount
necessary to make the Indemnified Party whole after taking into account any tax
consequences to the Indemnified Party of the payment of any of the aforesaid
taxes and the receipt of the indemnity provided hereunder or of any refund of
any such tax previously indemnified hereunder, including the effect of such tax
or refund on the amount of tax measured by net income or profits which is or was
payable by the Indemnified Party.

                                  ARTICLE XII

         SERVICING OF PLEDGED STUDENT LOANS AND ADMINISTRATION OF ISSUER

      SECTION 12.01. Duties of Master Servicer. The Master Servicer, for the
benefit of Issuer and the Lenders (to the extent provided herein), shall appoint
one or more Sub-Servicers approved by the Agent, the Conduit Lenders and the
Majority Committed Lenders to manage, service, administer and make collections
on the Pledged Student Loans. The Master Servicer shall (and shall cause each
Sub-Servicer to) exercise reasonable care, using that degree of skill

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and attention that the Master Servicer (or such Sub-Servicer) exercises with
respect to all comparable student loans that it services but in any event, in
accordance with customary and usual standards of practice of prudent lenders and
loan servicers administering similar student loans. Without limiting the
generality of the foregoing or of any other provision set forth in this
Agreement and notwithstanding any other provision to the contrary set forth
herein, the Master Servicer shall and shall cause the applicable Sub-Servicer to
manage, service, administer and make collections with respect to the Pledged
Student Loans (other than collection of any Interest Subsidy Payments and
Special Allowance Payments which collections will be received by the Eligible
Lender Trustee) in accordance with, and otherwise comply with, all applicable
federal and state laws, including all applicable standards, guidelines and
requirements of the Higher Education Act and any Guarantee Agreement, the
failure to comply with which would adversely affect the eligibility of one or
more of the Pledged Student Loans that are FFELP Loans for federal reinsurance
or Interest Subsidy Payments or Special Allowance Payments or one or more of the
Pledged Student Loans for receipt of Guarantee Payments or would have an adverse
effect on the Lenders or any other Secured Party.

      The Master Servicer's duties (and the duties of the applicable
Sub-Servicers on behalf of the Master Servicer) shall include collection and
posting of all payments, responding to inquiries of borrowers on such Pledged
Student Loans, monitoring borrowers' status, making required disclosures to
borrowers, investigating delinquencies, sending payment coupons or billing
notices to borrowers and otherwise establishing repayment terms, reporting tax
information to borrowers, if applicable, accounting for collections and
furnishing monthly and quarterly statements with respect thereto to the Agent.
Unless otherwise expressly provided herein, the Master Servicer shall and shall
cause the applicable Sub-Servicer to follow its customary standards, policies
and procedures in performing its duties as servicer. Without limiting the
generality of the foregoing, the Master Servicer is authorized and empowered to
execute and deliver (and may cause the applicable Sub-Servicer to execute and
deliver), on behalf of itself, Issuer, the Eligible Lender Trustee, the
Indenture Trustee, the Lenders or any of them, instruments of satisfaction or
cancellation, or partial or full release or discharge, and all other comparable
instruments, with respect to such Pledged Student Loans; provided, however, that
the Master Servicer agrees that it will not (nor will it permit a Sub-Servicer
to) (a) permit any rescission or cancellation of a Pledged Student Loan except
as ordered by a court of competent jurisdiction or governmental authority or as
otherwise consented to in writing by the Eligible Lender Trustee, the Agent and
the Indenture Trustee or (b) reschedule, revise, defer or otherwise compromise
with respect to payments due on any Pledged Student Loan except pursuant to any
applicable deferral or forbearance periods or otherwise in accordance with all
applicable standards, guidelines and requirements of the Higher Education Act or
any Guarantee Agreement; provided further, however, that the Master Servicer
shall not agree (nor shall it permit any Sub-Servicer to agree) to any decrease
of the interest rate on, or the principal amount payable with respect to, any
Pledged Student Loan except in accordance with the applicable standards,
guidelines and requirements of the Higher Education Act or any Guarantee
Agreement or a Reduced Rate Program.

      The Eligible Lender Trustee on behalf of Issuer hereby grants a power of
attorney and all necessary authorization to the Master Servicer to (or to cause
the applicable Sub-Servicer to) maintain any and all collection procedures with
respect to the Pledged Student Loans it services (or sub-services), including
filing, pursuing and recovering claims against the Guarantors for

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Guarantee Payments and taking any steps to enforce such Pledged Student Loan
such as commencing a legal proceeding to enforce a Pledged Student Loan in the
name of Issuer, the Eligible Lender Trustee, the Indenture Trustee, the Lenders
and the Secured Parties. The Eligible Lender Trustee or the Indenture Trustee
shall upon the written request of the Master Servicer or the Agent furnish the
Master Servicer or the Agent (or at written the direction of the Master Servicer
or the Agent, the related Sub-Servicer) with any other powers of attorney and
other documents reasonably necessary or appropriate to enable the Master
Servicer or the Agent (or related Sub-Servicer) to carry out their servicing and
administrative duties hereunder (or under the related Sub-Servicing Agreement).

      The Master Servicer or the Administrator may hold the original Student
Loan Notes representing Pledged Student Loans for not later than five days after
the date of any Borrowing prior to forwarding those Student Loan Notes to
Sub-Servicers. Each of the Master Servicer and the Administrator acknowledges
and agrees that it will hold each such Student Loan Note as bailee pursuant to
Section 9-313 of the UCC for the Indenture Trustee for the benefit of the
Secured Parties.

      To the extent that any provisions of this Agreement conflict with any
provisions of any other servicing or administration agreement between the Issuer
and Master Servicer, the terms of this Agreement shall govern.

      SECTION 12.02. Collection of Pledged Student Loan Payments.

      (a)   The Master Servicer shall (and shall cause the applicable
Sub-Servicers to) make reasonable efforts (including all efforts that may be
specified under the Higher Education Act or any Guarantee Agreement) to collect
all payments called for under the terms and provisions of the Pledged Student
Loans as and when the same shall become due and shall follow such collection
procedures as it follows with respect to all comparable student loans that it
services. With the written consent of the Agent, the Master Servicer (or at the
direction of the Master Servicer, the related Sub-Servicer) may in its
discretion waive any charge or any other fee that may be collected in the
ordinary course of servicing a Pledged Student Loan. The Master Servicer shall
(and shall cause the applicable Sub-Servicers to) remit all collections relating
to the Pledged Student Loans to the Collection Account no later than the close
of business on the second Business Day after receipt thereof; provided, however,
that any Third Party Servicer may remit such collections to the Collection
Account, as applicable, less frequently (but no less frequently than three times
per month and at least once every fifteen days). The Master Servicer shall not
(and shall not allow any Affiliated Originator to) deposit any amounts other
than Collections (and other amounts required by the terms of this Agreement to
be deposited into the Collection Account) into the Collection Account.

      (b)   The Master Servicer shall (and shall cause the applicable
Sub-Servicer to) make reasonable efforts to claim, pursue and collect all
Guarantee Payments from the Guarantors pursuant to the Guarantee Agreements with
respect to any of the Pledged Student Loans as and when the same shall become
due and payable, shall comply with all applicable laws and agreements with
respect to claiming, pursuing and collecting such payments and shall follow such
practices and procedures as it follows with respect to all comparable guarantee
agreements and student loans that it services. In connection therewith, the
Master Servicer is hereby

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<PAGE>

authorized and empowered (or at the direction of the Master Servicer, the
related Sub-Servicer is authorized and empowered) to convey to any Guarantor the
Student Loan Note and the related loan documents representing any Pledged
Student Loan in connection with submitting a claim to such Guarantor for a
Guarantee Payment in accordance with the terms of the applicable Guarantee
Agreement.

      (c)   The Master Servicer shall cause the applicable Sub-Servicer to
manage, service, administer and make collections with respect to the Pledged
Student Loans in accordance with, and otherwise comply with, all applicable
federal and state laws, including all applicable standards, guidelines and
requirements of the Higher Education Act and any applicable Guarantee Agreement.

      SECTION 12.03. Realization upon Pledged Student Loans. For the benefit of
Issuer, the Lenders and the Secured Parties, the Master Servicer shall (and
shall cause the applicable Sub-Servicer to) use reasonable efforts consistent
with its customary servicing practices and procedures and including all efforts
that may be specified under the Higher Education Act or any applicable Guarantee
Agreement in its servicing (or sub-servicing) of any delinquent Pledged Student
Loans.

      SECTION 12.04. No Impairment or Amendment. The Master Servicer shall not
(nor shall it permit the applicable Sub-Servicer to) impair the rights of
Issuer, the Eligible Lender Trustee, the Indenture Trustee, the Lenders or any
Secured Party in such Pledged Student Loans. The Master Servicer shall not
extend, terminate, waive, amend or otherwise modify the terms of any Pledged
Student Loan, except pursuant to Section 7.03(a), or, without the prior written
consent of the Agent, extend, terminate, waive, amend or otherwise modify the
terms of any other Transaction Document.

      SECTION 12.05. Purchase of Pledged Student Loans. The Master Servicer
shall inform the Agent and the Indenture Trustee promptly, in writing, upon the
discovery of any breach pursuant to Section 12.01, 12.02, 12.03 or 12.04. Unless
any such breach shall have been cured within 60 days following such discovery
(or, at the Master Servicer's election, the last day of the first month
following such discovery), the Master Servicer shall purchase any Pledged
Student Loan in which the interests of the Lenders or the other Secured Parties
are materially and adversely affected as determined by the Agent or the Lenders
by such breach as of the first day succeeding the end of such 60-day period that
is the last day of a Settlement Period for an amount equal to the outstanding
Principal Balance of such Student Loan, plus accrued and unpaid interest thereon
(to the extent not previously capitalized), plus any Unamortized Premium thereon
plus any unreimbursed Monthly Advance with respect thereto (the "Servicer
Repurchase Amount"'). Such Servicer Repurchase Amount shall be deposited by the
Master Servicer into the Collection Account on such date and applied as a
repayment of the Total Outstanding Advances on such date in accordance with
Section 2.03(c). If the Master Servicer takes any action or fails to take any
action (including, without limitation, all actions taken or not taken by a
Sub-Servicer on its behalf) during any Settlement Period pursuant to the
sections referred to above that materially impairs the rights of Issuer, the
Indenture Trustee, the Eligible Lender Trustee, or the Lenders in any Pledged
Student Loan or otherwise than as provided in such sections, the Master Servicer
shall purchase such Pledged Student Loan as of the last day of such Settlement
Period for an amount equal to Servicer Repurchase Amount (and such Servicer
Repurchase Amount

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shall be deposited by the Master Servicer into the Collection Account on such
date and applied as a repayment of the Total Outstanding Advances on such date
in accordance with Section 2.03(c)). Notwithstanding the foregoing, the Master
Servicer, at its option, may permit or cause a Sub-Servicer to purchase a
Pledged Student Loan in its stead, in the manner and for the reasons set forth
above.

      SECTION 12.06. Reporting. (a) On or before the 20th day of each month (or,
if any such day is not a Business Day, on the next succeeding Business Day), the
Master Servicer shall (or shall cause each Sub-Servicer to) deliver to the Agent
a Monthly Report (which may be the same Monthly Report referred to in Section
7.02(c) hereof) with respect to the preceding calendar month.

      (b)   Quarterly Financial Statements. As soon as available and in any
event within 45 days after the end of each of the first three quarters of each
fiscal year of CFS, copies of the financial statements of CFS, that are in
conformity with generally accepted accounting principles, along with a
certificate by an authorized officer of CFS certifying that such copies are the
true and complete copies of the financial statements and that such financial
statements fairly present in all material respects the financial condition of
CFS as of the date delivered; and

      (c)   Annual Financial Statements. As soon as available and in any event
within 120 days after the end of each fiscal year of CFS, copies of the
financial statements of CFS prepared and duly certified by any nationally
recognized public accounting firm approved by the Agent, in conformity with
generally accepted accounting principles, along with a certificate by an
authorized officer of CFS certifying that such copies are the true and complete
copies of the financial statements and that such financial statements fairly
present in all material respects the financial condition of CFS as of the date
delivered.

      SECTION 12.07. Annual Statement as to Compliance; Notice of Default; SAS
70 Reports.

      (a)   The Master Servicer shall (and the Master Servicer shall cause each
Sub-Servicer to) deliver to the Indenture Trustee and the Agent, on or before
July 30 of each year beginning July 30, 2003, an officers' certificate of the
Master Servicer (and each Sub-Servicer) as the case may be, dated as of December
31 of the preceding year, stating that (i) a review (the scope of which shall be
satisfactory to the Agent) of the activities of the Master Servicer (and each
Sub-Servicer on its behalf), during the preceding 12-month period (or, in the
case of the first such certificate, during the period from the date hereof to
December 31, 2003 and of its performance under this Agreement (or the related
Sub-Servicing Agreement, as applicable) has been made under such officers'
supervision and (ii) to the best of such officers' knowledge, based on such
review, the Master Servicer (or such Sub-Servicer), as the case may be, has
fulfilled all its obligations under this Agreement (or the related Sub-Servicing
Agreement), as applicable, throughout such year or, if there has been a default
in the fulfillment of any such obligation, specifying each such default known to
such officers and the nature and status thereof.

      (b)   The Master Servicer shall deliver to the Indenture Trustee and the
Agent promptly after having obtained knowledge thereof, but in no event later
than five Business Days thereafter, written notice in an officers' certificate
of the Master Servicer of any event which with the giving

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of notice or lapse of time, or both, would constitute an Event of Termination or
a Servicer Event of Default.

      (c)   The Master Servicer shall deliver to the Agent on an annual basis
within ten (10) days after receipt thereof copies of SAS 70 reports for each
Sub-Servicer, or if not available the annual compliance audit for each
Sub-Servicer required by Section 428(b)(l)(4) of the Higher Education Act, as
amended.

      SECTION 12.08. Access to Certain Documentation and Information Regarding
Pledged Student Loans; Audits. (a) Upon reasonable prior notice, the Master
Servicer shall (and shall cause the Sub-Servicers to) provide to the Indenture
Trustee and the Agent access to the all files and documents in its possession
relating to the Pledged Student Loans. Access shall be afforded without charge,
but only upon reasonable request and during the normal business hours at the
respective offices of the Master Servicer (or the applicable Sub-Servicer).
Nothing in this Section 12.08 shall affect the obligation of the Master Servicer
(or the applicable Sub-Servicer on its behalf) to observe any applicable law
prohibiting disclosure of information regarding the Obligors and the failure of
the Master Servicer (or the applicable Sub-Servicer) to provide access to
information as a result of such obligation shall not constitute a breach of this
Section 12.08.

      (b)   The Master Servicer shall cooperate fully with the Agent and the
Lenders or any auditor or representative appointed by the Agent and the Lenders
in an agreed upon procedures audit with respect to all Pledged Student Loans
covering each of the items and procedures listed on Appendix F hereto (which
shall include inspection of the legend on each Student Loan Note that is not a
master promissory note); provided, however, that except after the occurrence and
during the continuation of an Event of Termination, the Agent and the Lenders
shall not request more than one such audit with respect to the Master Servicer
and each Affiliated Servicer in any calendar year. In addition to the foregoing,
and, subject to the terms of the applicable Sub-Servicing Agreements, the Master
Servicer shall cause each Third Party Servicer to cooperate fully with the Agent
and the Lenders or any auditor or representative appointed by the Agent and the
Lenders in an agreed upon procedures audit with respect to all Pledged Student
Loans (which shall include inspection of the legend on each Student Loan Note
that is not a master promissory note); provided, however, that except after the
occurrence and during the continuation of an Event of Termination, the Agent and
the Lenders shall not request more than one such audit with respect to each
Third Party Servicer in any calendar year.

      SECTION 12.09. Servicer Expenses. The Master Servicer shall be required to
pay or cause to be paid all expenses incurred by it (or its agents acting on its
behalf) in connection with its activities hereunder, including fees and
disbursements of independent accountants, taxes imposed on the Master Servicer
and expenses incurred in connection with distributions and reports to be
delivered by it hereunder, enforcement of Defaulted Pledged Student Loans and
the costs of all agreed upon procedures audits described in Section 12.08.

      SECTION 12.10. Appointment of Sub-Servicers. The Master Servicer shall
appoint one or more Sub-Servicers to perform all of its obligations as Master
Servicer hereunder, and without notice or consent, delegate specific duties to
sub-contractors who are in the business of performing such duties; provided,
however, that the Master Servicer shall remain obligated and be liable to
Issuer, the Agent, the Lenders and the other Secured Parties for the servicing
and

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administering of the Pledged Student Loans, in accordance with the provisions
hereof without diminution of such obligation and liability by virtue of the
appointment of such Sub-Servicers or other delegation of such duties and to the
same extent and under the same terms and conditions as if the Master Servicer
alone were servicing and administering the Pledged Student Loans. The fees and
expenses of each Sub-Servicer (and any such sub-contractors) shall be as agreed
between the Master Servicer and the applicable Sub-Servicer or a sub-contractor
from time to time and none of Issuer, Lenders, Agent, Indenture Trustee,
Eligible Lender Trustee or any Secured Party shall have any responsibility
therefor.

      SECTION 12.11. Maintenance of Fidelity Bond and Errors and Omission
Policy. The Master Servicer shall maintain such policy or policies of insurance
covering errors and omissions and a fidelity bond in respect of its officers,
employees and agents with a policy limit of not less than $10,000,000 and with
no deductible and a general liability policy covering the Master Servicer and
its subsidiaries with a policy limit of not less than $150,000,000 with no
deductible. The Master Servicer shall cause each Sub-Servicer to maintain in
full force and effect, such policy or policies of insurance covering errors and
omissions and a fidelity bond in respect of its officers, employees and agents
in accordance with the applicable Sub-Servicing Agreement and as approved by the
Agent.

      SECTION 12.12. Representations of Master Servicer. The Master Servicer
makes the following representations on which Issuer, the Lenders and each
Secured Party is deemed to have relied in entering into this Agreement and
appointing the Master Servicer, as Master Servicer hereunder.

      (a)   Organization and Good Standing. The Master Servicer is duly
organized and validly existing as a limited liability company in good standing
under the laws of the State of Virginia, with the power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is presently conducted, and had at all relevant times, and
has, the power, authority and legal right to master service the Pledged Student
Loans.

      (b)   Due Qualification. The Master Servicer is duly qualified to do
business and has obtained all necessary licenses and approvals in all
jurisdictions in which the ownership or lease of property or the conduct of its
business (including the master servicing of the Pledged Student Loans as
required by this Agreement) shall require such qualifications.

      (c)   Power and Authority of the Master Servicer. The Master Servicer has
the corporate power and authority to execute and deliver this Agreement and each
of the other Transaction Documents to which it is a party and to carry out their
respective terms; and the execution, delivery and performance of this Agreement
and each of the other Transaction Documents to which it is a party have been
duly authorized by the Master Servicer by all necessary corporate action.

      (d)   Binding Obligation. This Agreement and each of the other Transaction
Documents to which it is a party constitutes a legal, valid and binding
obligation of the Master Servicer enforceable in accordance with their
respective terms, subject to applicable bankruptcy, insolvency, reorganization
and similar laws relating to creditors' rights generally, and subject to general
principles of equity.

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      (e)   No Violation. The consummation of the transactions contemplated by
this Agreement and the fulfillment of the terms hereof shall not conflict with,
result in any breach of any of the terms and provisions of, nor constitute (with
or without notice or lapse of time or both) a default under the certificate of
formation or operating agreement of the Master Servicer, or any indenture,
agreement or other instrument to which the Master Servicer is a party or by
which it shall be bound nor result in the creation or imposition of any Lien
upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument (other than this Agreement); which breach or
default could reasonably be expected to have a Material and Adverse Effect on
the condition of the Master Servicer, financial or otherwise, or adversely
affect the transactions contemplated by this Agreement; nor violate any law or,
to the knowledge of the Master Servicer, any order, rule or regulation
applicable to the Master Servicer of any court or of any federal or state
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Master Servicer or its properties.

      (f)   No Proceedings. There are no proceedings, or, to the Master
Servicer's best knowledge, investigations pending, or, to the Master Servicer's
best knowledge, threatened against the Master Servicer, before any court,
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Master Servicer or its properties: (i) asserting
the invalidity of this Agreement or any other Transaction Document to which it
is a party, (ii) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement, and the other Transaction Documents, or (iii)
seeking any determination or ruling that could reasonably be expected to have a
Material and Adverse Effect on the performance by the Master Servicer of its
obligations under, or the validity or enforceability of, this Agreement or any
other Transaction Document to which it is a party.

      (g)   No Amendment or Waiver. No provision of a Pledged Student Loan has
been waived, altered or modified in any respect, except pursuant to a document,
instrument or writing included in the files relating to such Pledged Student
Loan.

      (h)   Collection Practices. The servicing and collection practices used by
the Master Servicer (or each Sub-Servicer on its behalf) with respect to the
Pledged Student Loans have been in all respects in compliance with Accepted
Servicing Procedures, and all applicable laws and regulations.

      (i)   Location of Files Relating to Pledged Student Loans. The files and
records relating to each Pledged Student Loan are kept in the offices of the
applicable Sub-Servicer on behalf of the Master Servicer identified to the Agent
in writing prior to the date hereof, or at such other office identified to the
Agent in writing, and all such files have been delivered to and are in the
possession of the applicable Sub-Servicer.

      (j)   Not an Investment Company. The Master Servicer is not required to
register as an "investment company" within the meaning of the Investment Company
Act of 1940, as amended.

      (k)   Accuracy of Information. All information supplied by, or on behalf
of, the Master Servicer in writing to the Indenture Trustee, or the Agent in
connection with this Agreement, any Transaction Document or the transactions
contemplated thereby is true and accurate in all

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material respects. No information furnished by the Master Servicer to the
Indenture Trustee and the Agent in connection with this Agreement, any
Transaction Document or the transactions contemplated thereby contained any
material misstatement.

      (l)   Possession of Purchase and Sale Agreements. The Master Servicer has
in its possession an original of each Purchase and Sale Agreement described in
Section 5.02(m) hereof (including each Purchase and Sale Agreement described in
parentheticals to such Sections).

      SECTION 12.13. Sub-Servicing Limitations. The Master Servicer shall not
permit any Pledged Student Loans to be serviced by any Sub-Servicer (other than
the Sub-Servicers servicing the Pledged Student Loans on the date hereof)
without first obtaining the written consent of the Agent, the Conduit Lenders
and the Majority Committed Lenders and demonstrating to the satisfaction of the
Agent that all requirements and conditions required by the Agent applicable to
such new Sub-Servicer have been satisfied in all material respects for such
Sub-Servicer, which satisfaction shall be evidenced by such written consent, and
delivering to the Agent an opinion of counsel addressed to the Lenders, Issuer,
the Indenture Trustee and the Agent in form and substance and written by counsel
acceptable to the Agent including, without limitation, an opinion to the effect
that each action necessary to perfect a first priority security interest in each
of the Pledged Student Loans being or to be serviced by such Sub-Servicer has
been accomplished and that the perfection and priority of the Indenture
Trustee's security interest in the Collateral will not be affected by the use of
such Sub-Servicer, or if it will be affected, setting forth the steps necessary
to continue such perfection and priority, and completing such steps to the
satisfaction of the Agent at the Master Servicer's expense.

      SECTION 12.14. Indemnities of Master Servicer. The Master Servicer agrees
to indemnify each Indemnified Party for Indemnified Amounts arising out of or
resulting from any of the following:

            (i)   reliance on any representation or warranty made or deemed made
      by the Master Servicer or any Sub-Servicer under this Agreement or any
      other Transaction Document to which it is a party, which shall have been
      false or incorrect when made or deemed made;

            (ii)  the failure by the Master Servicer or any Sub-Servicer to
      comply with any term, provision or covenant contained in any Transaction
      Document to which it is party or with any applicable law, rule or
      regulation with respect to any Pledged Student Loan or the Related
      Security;

            (iii) the commingling of Collections with any other funds; and

            (iv)  any claim brought by any Person arising from any activity by
      the Master Servicer or any Sub-Servicer in servicing, administering or
      collecting any Student Loan; and

            (v)   any action or omission by the Master Servicer or any
      Sub-Servicer that reduces or impairs the rights of the Agent or any Lender
      with respect to any Collateral or the value of any such Collateral.

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Any amounts subject to the indemnification provisions of this Section 12.12
shall be paid by the Master Servicer to the related Indemnified Party within
five Business Days following demand therefor accompanied by reasonable
supporting documentation with respect to such amounts.

      SECTION 12.15. Collegiate Funding Master Servicing, L.L.C. Not To Resign
as Master Servicer. Without the prior written consent of the Agent, the Conduit
Lenders and the Majority Committed Lenders, Collegiate Funding Master Servicing,
L.L.C. shall not resign from the obligations and duties hereby imposed on it as
Master Servicer under this Agreement except upon determination that the
performance of its duties under this Agreement shall no longer be permissible
under applicable law. Notice of any such determination permitting the
resignation of Collegiate Funding Master Servicing, L.L.C. as Master Servicer
shall be communicated to the Eligible Lender Trustee, the Agent and the
Indenture Trustee at the earliest practicable time (and, if such communication
is not in writing, shall be confirmed in writing at the earliest practicable
time) and any such determination shall be evidenced by an opinion of counsel (in
form and substance reasonable acceptable to the Agent) to such effect delivered
concurrently with or promptly after such notice. No such resignation shall
become effective until the Indenture Trustee, the Eligible Lender Trustee, the
Agent or a successor Master Servicer reasonably acceptable to the Agent, the
Conduit Lenders and the Majority Committed Lenders shall have assumed the
responsibilities and obligations of Collegiate Funding Master Servicing, L.L.C.,
as Master Servicer hereunder.

      SECTION 12.16. Servicer Default. If any Servicer Event of Default with
respect to the Master Servicer shall occur and be continuing then, and in each
and every case, so long as the Servicer Event of Default shall not have been
remedied, the Agent at the request of the Lenders, by notice then given in
writing to the Master Servicer may terminate all the rights and obligations of
the Master Servicer in such capacity under this Agreement and each of the other
Transaction Documents to which it is a party, as Master Servicer. On or after
the receipt by the Master Servicer of such written notice, all authority and
power of the Master Servicer under this Agreement, whether with respect to the
Student Loan Notes or the Pledged Student Loans or otherwise, shall, without
further action, pass to and be vested in the Agent or such successor Master
Servicer as may be appointed by the Agent at the request of the Lenders; and,
without limitation, the Agent and the Eligible Lender Trustee are hereby
authorized and empowered to execute and deliver, for the benefit of the
predecessor Master Servicer, as attorney-in-fact or otherwise, any and all
documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of the Pledged
Student Loans and related documents, or otherwise. The predecessor Master
Servicer shall cooperate with the successor Master Servicer in effecting the
termination of the responsibilities and rights of the predecessor Master
Servicer under this Agreement and all agreements with the Sub-Servicers,
including the transfer to the successor Master Servicer of its rights under all
existing Sub-Servicing Agreements and for administration by it of all cash
amounts that shall at the time be held by the predecessor Master Servicer for
deposit, or shall thereafter be received by it with respect to a Pledged Student
Loan. All reasonable costs and expenses (including reasonable attorneys' fees)
incurred in connection with transferring all files and other documents in
respect of each Pledged Student Loan to the successor Master Servicer and
amending this Agreement, the Sub-Servicing Agreements and any other Transaction
Documents to reflect such succession as Master Servicer pursuant to this

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<PAGE>

Section 12.15 shall be paid by the predecessor Master Servicer upon presentation
of reasonable documentation of such costs and expenses.

      SECTION 12.17. Appointment of Successor. Upon receipt by the Master
Servicer of notice of termination pursuant to Section 12.15, or the resignation
by the Master Servicer in accordance with the terms of this Agreement, the
predecessor Master Servicer shall continue to perform its functions as Master
Servicer under this Agreement in the case of termination, only until the date
specified in such termination notice or, if no such date is specified in a
notice of termination, until receipt of such notice and, in the case of
resignation, until the later of (x) the date 120 days from the delivery to the
Agent of written notice of such resignation (or written confirmation of such
notice) in accordance with the terms of this Agreement and (y) the date upon
which the predecessor Master Servicer shall become unable to act as Master
Servicer as specified in the notice of resignation and accompanying opinion of
counsel. In the event of the termination hereunder of a Master Servicer, the
Agent, the Conduit Lenders and the Majority Committed Lenders shall appoint, a
successor Master Servicer and the successor Master Servicer shall accept its
appointment by a written assumption in form acceptable to the Agent. In the
event that a successor Master Servicer has not been appointed at the time when
the predecessor Master Servicer has ceased to act as Master Servicer hereunder,
the Agent without further action shall automatically be appointed the successor
Master Servicer.

      SECTION 12.18. Master Servicer Fee. For servicing the Pledged Student
Loans under the Agreement, the Master Servicer shall be paid an amount equal to
(i) the Master Servicer's Fee less (ii) the amount of fees paid directly to the
Sub-Servicers pursuant to clause third of Section 3.03(b), for each calendar
month payable on each Settlement Date pursuant to clause third of Section
3.03(b).

      SECTION 12.19. Representations of Administrator. The Administrator makes
the following representations on which Issuer, the Lenders and each Secured
Party is deemed to have relied in entering into this Agreement and appointing
the Administrator, as Administrator hereunder.

      (a)   Organization and Good Standing. The Administrator is duly organized
and validly existing as a limited liability company in good standing under the
laws of the State of Virginia, with the power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is presently conducted, and had at all relevant times, and
has, the power, authority and legal right to administer the Issuer and the
Pledged Student Loans.

      (b)   Due Qualification. The Administrator is duly qualified to do
business and has obtained all necessary licenses and approvals in all
jurisdictions in which the ownership or lease of property or the conduct of its
business shall require such qualifications.

      (c)   Power and Authority of the Administrator. The Administrator has the
corporate power and authority to execute and deliver this Agreement and each of
the other Transaction Documents to which it is a party and to carry out their
respective terms; and the execution, delivery and performance of this Agreement
and each of the other Transaction Documents to

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<PAGE>

which it is a party have been duly authorized by the Administrator by all
necessary corporate action.

      (d)   Binding Obligation. This Agreement and each of the other Transaction
Documents to which it is a party constitutes a legal, valid and binding
obligation of the Administrator enforceable in accordance with their respective
terms, subject to applicable bankruptcy, insolvency, reorganization and similar
laws relating to creditors' rights generally, and subject to general principles
of equity.

      (e)   No Violation. The consummation of the transactions contemplated by
this Agreement and the fulfillment of the terms hereof shall not conflict with,
result in any breach of any of the terms and provisions of, nor constitute (with
or without notice or lapse of time or both) a default under the certificate of
formation or operating agreement of the Administrator, or any indenture,
agreement or other instrument to which the Administrator is a party or by which
it shall be bound nor result in the creation or imposition of any Lien upon any
of its properties pursuant to the terms of any such indenture, agreement or
other instrument (other than this Agreement); which breach or default could
reasonably be expected to have a Material and Adverse Effect on the condition of
the Administrator, financial or otherwise, or adversely affect the transactions
contemplated by this Agreement; nor violate any law or, to the knowledge of the
Administrator, any order, rule or regulation applicable to the Administrator of
any court or of any federal or state regulatory body, administrative agency or
other governmental instrumentality having jurisdiction over the Administrator or
its properties.

      (f)   No Proceedings. There are no proceedings, or, to the Administrator's
best knowledge, investigations pending, or, to the Administrator's best
knowledge, threatened against the Administrator, before any court, regulatory
body, administrative agency or other governmental instrumentality having
jurisdiction over the Administrator or its properties: (i) asserting the
invalidity of this Agreement or any other Transaction Document to which it is a
party, (ii) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement, and the other Transaction Documents, or (iii)
seeking any determination or ruling that could reasonably be expected to have a
Material and Adverse Effect on the performance by the Administrator of its
obligations under, or the validity or enforceability of, this Agreement or any
other Transaction Document to which it is a party.

      (g)   Not an Investment Company. The Administrator is not required to
register as an "investment company" within the meaning of the Investment Company
Act of 1940, as amended.

      (h)   Accuracy of Information. All information supplied by, or on behalf
of, the Administrator in writing to the Indenture Trustee, or the Agent in
connection with this Agreement, any Transaction Document or the transactions
contemplated thereby is true and accurate in all material respects. No
information furnished by the Administrator to the Indenture Trustee and the
Agent in connection with this Agreement, any Transaction Document or the
transactions contemplated thereby contained any material misstatement.

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<PAGE>

      SECTION 12.20. Indemnities of Administrator. The Administrator agrees to
indemnify each Indemnified Party for Indemnified Amounts arising out of or
resulting from any of the following:

      (i)   reliance on any representation or warranty made or deemed made by
the Administrator under this Agreement or any other Transaction Document to
which it is a party, which shall have been false or incorrect when made or
deemed made;

      (ii)  the failure by the Administrator to comply with any term, provision
or covenant contained in any Transaction Document to which it is party or with
any applicable law, rule or regulation with respect to any Pledged Student Loan
or the Related Security;

      (iii) the commingling of Collections by the Administrator with any other
funds; and

      (iv)  any claim brought by any Person arising from any activity by the
Administrator in servicing, administering or collecting any Student Loan or in
administering the Issuer; and

      (v)   any action or omission by the Administrator that reduces or impairs
the rights of the Agent or any Lender with respect to any Collateral or the
value of any such Collateral.

Any amounts subject to the indemnification provisions of this Section 12.20
shall be paid by the Administrator to the related Indemnified Party within five
Business Days following demand therefor accompanied by reasonable supporting
documentation with respect to such amounts.

      SECTION 12.21. Administrator's Fee. For acting as Administrator pursuant
to this Agreement, the Administrator shall be paid an amount equal to the
Administrator's Fee for each calendar month payable on each Settlement Date
pursuant to clause fourteenth of Section 3.03(b).

                                  ARTICLE XIII

                                  MISCELLANEOUS

      SECTION 13.01. Amendments, Etc. No amendment to or waiver of any provision
of this Agreement nor consent to any departure by Issuer or Master Servicer
therefrom shall in any event be effective unless the same shall be in writing
and signed by the Issuer, the Master Servicer, the Agent, the Indenture Trustee,
the Conduit Lenders and the Majority Committed Lenders and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no such amendment, waiver or
consent shall, without the consent of each affected Committed Lender, (a) amend
the definitions of Eligible Student Loan, Defaulted Student Loan or Majority
Committed Lenders contained in this Agreement or modify the then existing Excess
Concentration Amounts; (b) amend, modify or waive any provision of this
Agreement in any way which would (i) reduce the amount of principal or interest
that is payable on account of any Advance or delay any scheduled date for
payment thereof; (ii) reduce fees payable by the Issuer to the Agent or the
Conduit Lenders which relate to payments to Committed Lenders or delay the dates
on which such fees are

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<PAGE>

payable; or (iii) modify any provisions relating to reserves so as to reduce
such reserves; (c) agree to the payment of a different rate of interest on the
Advances pursuant to Section 2.02(a)(ii) of this Agreement; (d) amend or waive
the Event of Termination relating to the bankruptcy of the Issuer or any
Affiliated Originator in Section 8.01 of this Agreement; (e) amend this Section
13.01 in any way other than expanding the list of amendments, waivers or
consents that require the consent of each Committed Lender; and provided
further, that the consent of a Committed Lender shall be required to (a)
increase the amount of its Commitment and (b) extend the termination date of its
Commitment. Any such amendment, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given. To the extent
the consent of any of the parties hereto (other than the Issuer and the Master
Servicer) is required under any of the Transaction Documents, the determination
as to whether to grant or withhold such consent shall be made by such party in
its sole discretion without any implied duty toward any other Person, expect as
otherwise expressly provided herein or therein. The parties acknowledge that,
before entering into such an amendment or granting such a waiver or consent,
Lenders may also be required to obtain the approval of some or all of the
Program Support Providers or to obtain confirmation from certain Rating Agencies
that such amendment, waiver or consent will not result in a withdrawal or
reduction of the ratings of the Promissory Notes.

      SECTION 13.02. Notices, Etc. All notices and other communications provided
for hereunder shall, unless otherwise stated herein, be in writing (including
facsimile communication) and shall be personally delivered or sent by express
mail or courier or by certified mail, postage prepaid, or by facsimile, to the
intended party at the address or facsimile number of such party set forth on
Exhibit 13.02 of this Agreement or at such other address or facsimile number as
shall be designated by such party in a written notice to the other parties
hereto. All such notices and communications shall be effective, (a) if
personally delivered or sent by express mail or courier or if sent by certified
mail, when received, and (b) if transmitted by facsimile, when sent, receipt
confirmed by telephone or electronic means.

      SECTION 13.03. No Waiver; Remedies. No failure on the part of Issuer, the
Agent, any Affected Party, any Indemnified Party, the Indenture Trustee, the
Eligible Lender Trustee or any Lender to exercise, and no delay in exercising,
any right hereunder shall operate as a waiver thereof (unless waived in
writing); nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other
right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.

      SECTION 13.04. Binding Effect; Survival. This Agreement shall be binding
upon and inure to the benefit of Issuer, the Agent, the Indenture Trustee, the
Eligible Lender Trustee, the Master Servicer, the Lenders, and their respective
successors and assigns, and the provisions of Section 4.02 and Article XI shall
inure to the benefit of the Affected Parties and the Indemnified Parties,
respectively, and their respective successors and assigns; provided, however,
nothing in the foregoing shall be deemed to authorize any assignment not
permitted by Section 10.01. This Agreement shall create and constitute the
continuing obligations of the parties hereto in accordance with its terms, and
shall remain in full force and effect until the Final Payout Date. The rights
and remedies with respect to any breach of any representation and warranty made
or deemed made by Issuer pursuant to Article VI and the indemnification and
payment provisions of Articles IX and XI and Sections 2.06, 4.02, 13.05, 13.06
and 13.12 shall be continuing and shall survive any termination of this
Agreement.

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<PAGE>

      SECTION 13.05. Costs, Expenses and Taxes. In addition to its obligations
under Article XI, Issuer agrees to pay within three Business Days of demand:

      (a)   all reasonable costs and expenses incurred by the Agent, any Program
Support Provider, the Indenture Trustee, the Eligible Lender Trustee and the
Lenders and their respective Affiliates in connection with due diligence,
negotiation, preparation, execution and delivery, the administration (including
periodic auditing) the amendment to, or waiver of, or the enforcement of, or any
actual or claimed breach of, this Agreement and the other Transaction Documents,
including, without limitation (i) the reasonable fees and expenses of counsel to
any of such Persons incurred in connection with any of the foregoing or in
advising such Persons as to their respective rights and remedies under any of
the Transaction Documents, and (ii) all reasonable out-of-pocket expenses
(including reasonable fees and expenses of independent accountants), incurred in
connection with any review of Issuer's or the Master Servicer's books and
records either prior to the execution and delivery hereof or pursuant to Section
7.01(c) or any Sub-Servicing Agreement; and

      (b)   all stamp and other taxes and fees payable or determined to be
payable in connection with the execution, delivery, filing and recording of this
Agreement or the other Transaction Documents, and agrees to indemnify each
Indemnified Party against any liabilities with respect to or resulting from any
delay in paying or omission to pay such taxes and fees.

      SECTION 13.06. No Proceedings. Issuer, the Indenture Trustee and the Agent
each hereby agrees that it will not institute against any Conduit Lender, or
join any other Person in instituting against any Conduit Lender, any insolvency
proceeding (namely, any proceeding of the type referred to in the definition of
Event of Bankruptcy) so long as any Promissory Notes issued by such Conduit
Lender shall be outstanding or there shall not have elapsed one year plus one
day since the last day on which any such Promissory Notes shall have been
outstanding. The foregoing shall not limit Issuer's right to file any claim in
or otherwise take any action with respect to any insolvency proceeding that was
instituted by any Person other than Issuer. The provisions of this Section 13.06
shall survive the termination of this Agreement.

      SECTION 13.07. Captions and Cross References. The various captions
(including, without limitation, the table of contents) in this Agreement are
provided solely for convenience of reference and shall not affect the meaning or
interpretation of any provision of this Agreement. Unless otherwise indicated,
references in this Agreement to any Section, Appendix, Schedule or Exhibit are
to such Section of or Appendix, Schedule or Exhibit to this Agreement, as the
case may be, and references in any Section, subsection, or clause to any
subsection, clause or subclause are to such subsection, clause or subclause of
such Section, subsection or clause.

      SECTION 13.08. Integration. This Agreement and the other Transaction
Documents, contains a final and complete integration of all prior expressions by
the parties hereto with respect to the subject matter hereof and shall
constitute the entire understanding among the parties hereto with respect to the
subject matter hereof, superseding all prior oral or written understandings.

      SECTION 13.09. GOVERNING LAW. THIS AGREEMENT, INCLUDING THE RIGHTS AND
DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY,

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<PAGE>

AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING
SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAWS BUT OTHERWISE WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES), EXCEPT TO THE EXTENT THAT THE PERFECTION
OF THE INTERESTS OF INDENTURE TRUSTEE AND THE SECURED PARTIES IN THE COLLATERAL
IS GOVERNED BY THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

      SECTION 13.10. WAIVER OF JURY TRIAL; SUBMISSION TO JURISDICTION. ISSUER
HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING
TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY OTHER TRANSACTION
DOCUMENT OR UNDER ANY AMENDMENT, INSTRUMENT OR DOCUMENT DELIVERED OR WHICH MAY
BE IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY BANKING
OR OTHER RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER
TRANSACTION DOCUMENT AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE
TRIED BEFORE A COURT AND NOT A JURY TRIAL. EACH OF THE ISSUER AND THE MASTER
SERVICER HEREBY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK AND THE COURTS OF THE UNITED STATES LOCATED IN THE STATE OF
NEW YORK FOR THE PURPOSE OF ADJUDICATING ANY CLAIM OR CONTROVERSY ARISING IN
CONNECTION WITH THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT OR ANY OF THE
TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY AND, FOR SUCH PURPOSE, HEREBY
WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE
THEREIN OF ANY ACTION INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH
LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. NOTHING IN THIS
SECTION 13.10 SHALL AFFECT THE RIGHT OF ANY LENDER, THE AGENT OR THE INDENTURE
TRUSTEE TO BRING ANY ACTION OR PROCEEDING AGAINST ANY PARTY HERETO OR ITS
PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION.

      SECTION 13.11. Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by the different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same
agreement.

      SECTION 13.12. No Recourse Against Other Parties. No recourse under any
obligation, covenant or agreement of the Issuer, the Master Servicer, the
Lenders, the Agent, the Program Support Providers, the Indenture Trustee or the
Eligible Lender Trustee contained in this Agreement shall be had against any
stockholder, member, employee, officer, director, or incorporator of any such
Person; provided, however, that nothing in this Section 13.12 shall relieve any
of the foregoing Persons from any liability which such Person may otherwise have
for his/her or its gross negligence or willful misconduct.

      SECTION 13.13. Confidentiality.

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<PAGE>

      (a)   Notwithstanding any other provision herein, each of the parties
hereto (and each employee, representative or other agent of each such party) may
disclose to any and all persons, without limitation of any kind, the U.S. tax
treatment and U.S. tax structure of the transaction (the "Transaction")
contemplated by this Agreement and the Transaction Documents and all materials
of any kind (including opinions or other tax analyses) that are provided to such
party relating to such U.S. tax treatment and U.S. tax structure, other than any
information for which nondisclosure is reasonably necessary in order to comply
with applicable securities laws.

      (b)   Subject to the provisions of the foregoing paragraph (a), each of
the Issuer and the Master Servicer agrees that it shall not (and shall not allow
any of its Affiliates to) disclose to any Person or entity the existence of this
Agreement, the other Transaction Documents or the terms hereof (including,
without limitation, any specific pricing information provided by the Agent and
its Affiliates or the amount or terms of any fees payable to the Agent and its
Affiliates in connection with the Transaction) or the structure of the
Transaction, any related structures developed by the Agent and its Affiliates
for the Issuer or the Master Servicer, any related analyses, computer models,
information or documents, any written or oral reports from the Agent and its
Affiliates to the Issuer or the Master Servicer or any related written
information, to the extent that such items do not constitute Structure and Tax
Aspects under Internal Revenue Code Sections 6011, 6111 and 6112 or the
regulations promulgated thereunder, or the existence and status of any ongoing
negotiations between the Issuer and its Affiliates and the Agent and its
Affiliates concerning the Transaction (collectively, the "Product Information"),
except to its and its Affiliates' employees, officers, directors, advisors,
representatives, accountants, legal counsel and agents (collectively, the
"Company Representatives") who have a need to know the Product Information for
the purpose of assisting in the negotiation and completion of the Transaction
and who agree to be bound by the provisions of this Section 13.13 and to use
such Product Information only in connection with the Transaction and not for any
other purpose. The Issuer will be responsible for any failure of any Company
Representative to comply with the provisions of this Section 13.13. "Product
Information" shall not include, however, information that is a matter of general
public knowledge or has heretofore been or is hereafter published in any source
generally available to the public other than as a result of a disclosure by any
person required to keep such information confidential as provided in this
section. The Issuer and the Master Servicer may disclose Product Information to
the extent required by applicable law, regulation, subpoena or other legal
process.

      (c)   Each of the Secured Parties agrees (i) to keep all non-public
information with respect to the Issuer and the Master Servicer and their
respective Affiliates which such Secured Party receives pursuant to the
Transaction Documents (collectively, the "Issuer Information") confidential and
to disclose Issuer Information only to those of its officers, employees, agents,
accountants, legal counsel and other representatives of the Secured Parties
(collectively, the "Secured Party Representatives"), to the rating agencies or
to their Program Support Providers which, in each case, may have a need to know
or review such Issuer Information for the purpose of assisting in the
negotiation, completion, administration and evaluation of the Facility (ii) to
use the Issuer Information only in connection with the Facility and not for any
other purpose; and (iii) to cause its related Secured Party Representatives to
comply with the provisions of this Section 13.13(c).

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<PAGE>

      (d)   The provisions of this Section 13.13(e) shall not apply to any
Issuer Information that is a matter of general public knowledge or that has
heretofore been made available to the public by any Person other than such
Secured Party Representative or that is required to be disclosed by law or is
requested by any authority with jurisdiction over any Secured Party or Secured
Party Representative or any of its Affiliates.

      (e)   Notwithstanding the foregoing, the Issuer Information may be
disclosed by any Secured Party to permitted assignees and participants and
potential assignees and participants in the Facility to the extent such
disclosure is made pursuant to a written agreement of confidentiality
substantially similar to this Section 13.13(e).

      (f)   The provisions of this Section 13.13 shall survive the termination
of this Agreement.

      SECTION 13.14. Limitation of Liability. No claim may be made by the
Issuer, Master Servicer, any of their Affiliates, or any other Person against
the Lenders, any Program Support Provider, the Agent, the Indenture Trustee or
the Eligible Lender Trustee or their respective Affiliates, directors, officers,
employees, attorneys or agents for any special, indirect, consequential or
punitive damages in respect of any claim for breach of contract or any other
theory of liability arising out of or related to the transactions contemplated
by this Agreement, or any act, omission or event occurring in connection
therewith; and each of the Issuer and the Master Servicer hereby waives,
releases, and agrees not to sue upon any claim for any such damages, whether or
not accrued and whether or not known or suspected to exist in its favor.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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<PAGE>

      IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by their respective officers thereunto duly authorized, as of the date first
above written.

                                      COLLEGIATE FUNDING SERVICES RESOURCES I,
                                      LLC, as Issuer

                                      By: /s/ Kevin Landgraver
                                          --------------------------------------
                                      Title: Chief Financial Officer & Treasurer

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<PAGE>

                                      CRC FUNDING, LLC, as Conduit Lender

                                      By: CITICORP NORTH AMERICA, INC., as
                                      its attorney-in-fact

                                      By: /s/Sumeet Wadhera
                                            ------------------------------------
                                      Title: Vice President

                                      Pro Rata Share: 100%

                                      CITIBANK, N.A.,
                                      as a Committed Lender

                                      By: /s/ Sumeet Wadhera
                                          -----------------------------------
                                          Title: Vice President

                                      Commitment: $500,000,000

                                      CITICORP NORTH AMERICA, INC.,
                                      as Agent

                                      By: /s/ Sumeet Wadhera
                                          --------------------------------------
                                          Title: Vice President

<PAGE>

                                      U.S. BANK NATIONAL ASSOCIATION, as
                                      Eligible Lender Trustee and as
                                      Indenture Trustee

                                      By:/s/ William Sicking
                                         -------------------------------------
                                         Title: Vice President & Trust Officer

<PAGE>

                                      COLLEGIATE FUNDING PORTFOLIO
                                      ADMINISTRATION, L.L.C., as Administrator

                                      By: /s/ Kevin A. Landgraver
                                          ------------------------------------
                                          Name: Kevin A. Landgraver
                                          Title: Treasurer

                                        COLLEGIATE FUNDING MASTER SERVICING,
                                        L.L.C., as Master Servicer

                                        By: /s/ Kevin A. Landgraver
                                            ------------------------------------
                                            Name: Kevin A. Landgraver
                                            Title: Treasurer

<PAGE>

                                   APPENDIX A

                                   DEFINITIONS

      This is Appendix A to the Indenture, dated as of July 23, 2003 among
Collegiate Funding Services Resources I, LLC, as Issuer, CRC Funding, LLC, as
Conduit Lender, the other financial institutions from time to time party
thereto, as Conduit Lenders, the financial institutions from time to time party
thereto, as Committed Lenders, Citicorp North America, Inc. as Agent, U.S. Bank
National Association, as Indenture Trustee and as Eligible Lender Trustee,
Collegiate Funding Portfolio Administration, L.L.C., as Administrator, and
Collegiate Funding Master Servicing, L.L.C. as Master Servicer (as amended,
supplemented or otherwise modified from time to time, this "Agreement"). Each
reference in this Appendix A to any Section, the Preamble, Appendix or Exhibit
refers to such Section of or Appendix, Preamble or Exhibit to this Agreement.

      A.    Defined Terms. As used in this Agreement, unless the context
requires a different meaning, the following terms have the meanings indicated
below (such definitions to be applicable to both the singular and plural forms
of such terms):

      "Accepted Servicing Procedures" means that the Master Servicer shall (or
shall cause the applicable Sub-Servicer to) manage, service, administer and make
collections on the Pledged Student Loans with reasonable care, using that degree
of skill and attention that the Master Servicer (or such Sub-Servicer) exercises
with respect to all comparable student loans that it services but, in any event,
in accordance with customary and usual standards of practice of prudent lenders
and loan servicers administering similar student loans. The Master Servicer
shall (or shall cause the applicable Sub-Servicer to) manage, service,
administer and make collections with respect to the Pledged Student Loans in
accordance with, and otherwise comply with, all applicable federal and state
laws, including all applicable standards, guidelines and requirements of the
Higher Education Act and any applicable Guarantee Agreement. These procedures
shall include collection and posting of all payments, responding to inquiries of
borrowers on such Pledged Student Loans, monitoring borrowers' status, making
required disclosures to borrowers, investigating delinquencies, sending billing
statements or payment coupons to borrowers and otherwise establishing repayment
terms, reporting tax information to borrowers, if applicable, accounting for
collections and furnishing monthly and quarterly statements with respect thereto
to the Agent. The Master Servicer shall (or shall cause the applicable
Sub-Servicer to) follow its customary standards, policies and procedures in
performing its duties as Master Servicer (or Sub-Servicer, as the case may be).

      "Account Control Agreement" means each Account Control Agreement among the
Issuer, the Indenture Trustee and the Securities Intermediary with respect to an
Account, in the form and substance attached as Exhibit A.

      "Accounts" means the Disbursement Account, the Collection Account, the
Reserve Account and the Residual Payments Account.

      "Add-on Loan" means a Federal Consolidation Loan made by the Issuer to a
student within 180 days after such student has consolidated other Student Loans.

<PAGE>

      "Administrative Expenses" means the administrative and operating expenses
of the Issuer, excluding the Master Servicer's Fee and the Administrator's Fee.

      "Administrator" has the meaning set forth in the preamble.

      "Administrator's Fee" means an aggregate amount equal to (i) for each
Settlement Period other than the initial Settlement Period, the product of (a)
the outstanding weighted average Principal Balance of all Pledged Student Loans
during such Settlement Period multiplied by (b) 0.0083% and (ii) for the initial
Settlement Period, the product of (a) the outstanding weighted average Principal
Balance of all Pledged Student Loans during such Settlement Period multiplied by
(b) 0.0083% multiplied by (c) a fraction equal to the number of days in the
initial Settlement Period divided by 30; in each case, payable to the Master
Servicer and/or the Sub-Servicers pursuant to Section 3.03(b) and the provisions
of Section 12.21 of the Agreement.

      "Advance" has the meaning set forth in Section 1.01.

      "Affected Party" means each of the Lenders, each Program Support Provider,
the Eligible Lender Trustee and any assignee or participant of any Lender or any
Program Support Provider.

      "Affiliate" when used with respect to a Person, means any other Person
controlling, controlled by, or under common control with, such Person.

      "Affiliated Originators" means those Affiliates of the Issuer set forth on
Appendix B and such other affiliated originators as may be approved by the Agent
and the Lenders from time to time in writing, in each case that are party to a
Purchase and Sale Agreement.

      "Affiliated Servicer" means each of CFS-SunTech Servicing LLC, and each
other Sub-Servicer that is an Affiliate of the Issuer.

      "Agent" has the meaning set forth in the preamble.

      "Agent's Account" means the special account number 40517805 of the
Indenture Trustee maintained at the office of Citibank, N.A. at New York, New
York, or such other account as may be so designated in writing by the Agent to
Issuer and the Indenture Trustee.

      "Agent's Office" means the office of the Agent at 450 Mamaroneck Avenue,
Harrison, New York 10528, or such other address as shall be designated by the
Agent in writing to Issuer and the Lenders.

      "Agreement" has the meaning set forth in the first paragraph of this
Appendix A.

      "Alternate Base Rate" means, on any date, a fluctuating rate of interest
per annum equal to the highest of:

      (a)   the rate of interest announced publicly by Citibank in New York, New
York, from time to time as Citibank's base rate;

                                       2
<PAGE>

      (b)   the Federal Funds Rate (as defined below) most recently determined
by the Reference Bank plus 0.50%; and

      (c)   1/2 of one percent per annum above the latest three-week moving
average of secondary market morning offering rates in the United States for
three-month certificates of deposit of major United States money market banks,
such three-week moving average being determined weekly on each Monday (or, if
any such day is not a Business Day on the next succeeding Business Day) for the
three-week period ending on the previous Friday by Citibank on the basis of such
rates reported by certificate of deposit dealers to and published by the Federal
Reserve Bank of New York or, if such publication shall be suspended or
terminated, on the basis of quotations for such rates received by Citibank from
three New York certificate of deposit dealers of recognized standing selected by
Citibank, in either case, adjusted to the nearest 1/4 of one percent or, if
there is no nearest 1/4 of one percent, to the next higher 1/4 of one percent.

The Alternate Base Rate is not necessarily intended to be the lowest rate of
interest determined by the Reference Bank in connection with extensions of
credit.

      "Approvals" has the meaning set forth in Section 6.01(d).

      "Approved Origination Agreement" means (i) the Loan Origination and
Servicing Agreement entered into as of July 23, 2003 by and between CFS-SunTech
Servicing LLC and CFO; (ii) the Sub-Servicing & Student Loan Origination and
Servicing Agreement dated on or about July 23, 2003 among Great Lakes
Educational Loan Services, Inc., the Master Servicer and CFO; and (iii) the
Student Loan Origination and Servicing Agreement dated on or about July 23, 2003
among LoanStar Systems, Inc., CFO, the Issuer and the Master Servicer and (iv)
each other Origination Agreement in such form which is approved by the Agent and
the Lenders in writing prior to the execution thereof.

      "Asset Coverage Ratio" for any Calculation Date means the ratio of (i)
Collateral Value to (ii) the sum of the Total Outstanding Advances, accrued and
unpaid interest (to the extent not previously capitalized), Fees and Master
Servicer's Fees as of such Calculation Date.

      "Assignment and Acceptance" means an Assignment and Acceptance Agreement
in substantially the form and substance of Exhibit 10.01(a) attached hereto and
delivered to the Agent in connection with an assignment of a Lender's
obligations hereunder in accordance with Section 10.01(a).

      "Available Funds" means (i) all Collections, (ii) all Reassignment
Amounts, (ii) all Monthly Advances and (iv) all Investment Earnings.

      "Borrowing" means the aggregate Advances made on a Borrowing Date.

      "Borrowing Date" means each date on which a Borrowing is consummated,
which date shall be a Business Day.

      "Borrowing Deficit" has the meaning set forth in Section 1.02(c).

      "Borrowing Notice" has the meaning set forth in Section 1.02(a).

                                       3
<PAGE>

      "Business Day" means a day on which both (a) the Agent at its principal
office in New York City is open for business and (b) commercial banks in New
York City are not authorized or required to be closed for business.

      "Calculation Date" means (a) the last date of each Settlement Period
utilized in providing the Monthly Report and in determining the Asset Coverage
Ratio or (b) if different, (i) with respect to the determination of Asset
Coverage Ratio in connection with the release of Released Student Loans pursuant
to Section 1.04, the last date of the Settlement Period immediately preceding
such release or such other date as determined by the Agent, (ii) with respect to
the determination of Asset Coverage Ratio in connection with a Borrowing
pursuant to Section 5.02(d), the last date of the Settlement Period immediately
preceding such Borrowing after giving effect to such Borrowing, (iii) with
respect to the determination of Asset Coverage Ratio in connection with the
occurrence of a Material Adverse Change in the condition of any Private Loan
Guarantor or Sub-Servicer, the last date of the Settlement Period immediately
preceding such release or such other date as determined by the Agent or (iv) any
other date as may be mutually agreed upon by the Agent and the Master Servicer
or upon which the Agent conducts a Portfolio Valuation pursuant to Section
8.02(e).

      "Capital Lease Obligations" of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination thereof,
which obligations are required to be classified and accounted for as capital
leases on a balance sheet of such Person under U.S. generally accepted
accounting principles, and the amount of such obligations shall be the
capitalized amount thereof determined in accordance with United States generally
accepted accounting principles.

      "Career School/Non Degree Granting Institution Loan" means except as
otherwise approved as such in writing by the Agent, the Conduit Lenders and the
Majority Committed Lenders, a FFELP Loan, the borrower of which is attending an
accredited institution, which is a career school or is not a degree granting
institution; provided, however, that Student Loans to students attending DeVry
Institute and The University of Phoenix shall not constitute Career School/Non
Degree Granting Institution Loans.

      "CFO" Collegiate Funding Originations, LLC, a Delaware limited liability
company.

      "CFO Purchase and Sale Agreement" means the Purchase and Sale Agreement
dated as of July 23, 2003 among CFO, the Issuer, and the Eligible Lender
Trustee.

      "CFS" means Collegiate Funding Services, L.L.C., a Delaware limited
liability company.

      "Citibank" means Citibank, N.A.

      "Closing Date" means July 23, 2003.

      "CNAI" has the meaning set forth in the preamble.

      "Code" means the Internal Revenue Code of 1986, as amended, and the
regulations, rulings and proclamations promulgated thereunder.

                                       4
<PAGE>

      "Collateral" means all of Issuer's (and the Eligible Lender Trustee's)
right, title and interest in, to and under the following: (i) the Financed
Student Loans and any additional Student Loans which are not Financed Student
Loans but which have been purchased, originated, funded or otherwise acquired
with funds on deposit in the Collection Account pursuant to the provisions of
Section 3.03(e) and each other Student Loan that is otherwise financed pursuant
to this Agreement (collectively, the "Pledged Student Loans"); (ii) the Related
Security, (iii) all right, title and interest with respect to the Pledged
Student Loans under the Guarantee Agreements; (iv) all Interest Subsidy Payments
and Special Allowance Payments with respect to any Pledged Student Loan that is
an FFELP Loan; (v) all borrower interest with respect to Pledged Student Loans;
(vi) the Accounts and any other account established by Issuer pursuant to the
Agreement in the name of the Indenture Trustee for the benefit of the Secured
Parties, and all investments therein; (vii) all funds on deposit in the accounts
described in clause (vi), together with all certificates and instruments, if
any, from time to time evidencing such accounts, and funds on deposit and all
investments made with such funds, all claims thereunder or in connection
therewith, and interest, dividends, moneys, instruments, securities and other
property from time to time received, receivable or otherwise distributed in
respect of any or all of the foregoing; (viii) all right, title and interest
under each Purchase and Sale Agreement, each Sub-Servicing Agreement, each
purchase agreement, the other Transaction Documents and each other document,
instrument, certificate and agreement relating to the collecting, servicing and
administration of any Pledged Student Loan, the Issuer or the transactions
contemplated by the Transaction Documents (other than such right, title and
interest as it relates solely to Student Loans which no longer constitute part
of the Collateral); (ix) the Demand Note, all additional indebtedness from time
to time owed to the Issuer by CFS and related to the Demand Note, and the
instruments evidencing such indebtedness, the Residual Payments Account, the
Residual Payments Account Control Agreement, and all interest, cash, instruments
and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for the foregoing, and all of Issuer's
rights as secured party with respect to the foregoing and the collateral pledged
thereunder; (x) all books and records (including computer tapes and disks)
related to the foregoing; (xi) all other personal and fixture property of every
kind and nature including without limitation all goods (including inventory,
equipment and any accessions thereto), instruments (including promissory notes),
documents, accounts, chattel paper (whether tangible or electronic), deposit
accounts, letter-of-credit rights, commercial tort claims, securities and all
other investment property, supporting obligations, any other contract rights or
rights to the payment of money, insurance claims and proceeds, and all general
intangibles (including all payment intangibles) and (xii) all Collections and
other proceeds of any and all of the foregoing.

      "Collateral Value" means (i) the lesser of (a) the Net Pool Balance less
any discount paid by Issuer on Private Loans which do not have the benefit of a
Private Loan Guarantee Agreement less (without duplication) any discount
reflected in the Advances made in connection with Borrowings to finance any
Private Loans and (b) if the Agent has obtained a Portfolio Valuation with
respect to all of the Pledged Student Loans as of the last Calculation Date, the
result of the Portfolio Valuation that causes it to be consistent with a program
rated the equivalent of "A2" by Moody's as reasonably determined by the Agent
using the ratings methodology the Agent employs for rating the Note, plus (ii)
Collections in bank accounts maintained in the name of the Indenture Trustee in
which no funds other than Collections are deposited and the balances of which
are swept into the Collection Account within 15 days pursuant to the applicable
Sub-Servicing Agreements, plus (iii) without duplication, funds (including
Eligible Investments) held

                                       5
<PAGE>

in the Collection Account, Reserve Account (excluding all upfront and
origination fees on deposit therein in connection with Private Loans that do not
have the benefit of a Private Loan Guarantee Agreement) and Disbursement Account
(other than Monthly Rebate Fees).

      "Collection Account" means the account established at a Qualified
Institution, in the name of the Indenture Trustee, for the benefit of the
Secured Parties, which account has been designated as the Collection Account,
and any other account designated as the Collection Account by the Indenture
Trustee or the Agent.

      "Collections" means (i) all funds which are received by Issuer, the Master
Servicer, any Sub-Servicer or the Indenture Trustee or any other Person on
behalf of Issuer from or on behalf of the related Obligors in payment of any
amounts owed (including, without limitation, all Interest Subsidy Payments,
Special Allowance Payments, Guarantee Payments, Reimbursement Payments, finance
charges, interest and all other charges) in respect of the Pledged Student
Loans, or applied to such amounts owed by such Obligors, (ii) all funds received
pursuant to the Sub-Servicing Agreements, including all payments representing
the purchase price of any repurchased Pledged Student Loan, (iii) all funds
drawn on the Premium Letter of Credit, and (iv) all funds received by Issuer,
the Indenture Trustee or the Master Servicer pursuant to the Purchase and Sale
Agreements or from any other source in respect of the Pledged Student Loans.

      "Committed Lender" has the meaning set forth in the preamble.

      "Committed Lender Termination Date" has the meaning set forth in Section
1.07.

      "Commitment" means the obligation of a Committed Lender to make Advances
pursuant to this Agreement up to an aggregate amount equal to the amount set
forth under such Committed Lender's name on the signature pages to this
Agreement, in each case as the same may be amended by Assignment and Acceptances
from time to time)

      "Company Representatives" has the meaning set forth in Section 13.13(b).

      "Conduit Lender" has the meaning set forth in the preamble.

      "Covered Claim" means (a) any and all damages, losses, claims, liabilities
and related costs and expenses, including reasonable attorneys' fees and
disbursements arising out of or related to the Transaction Documents or the
funding of the Advances or in respect of any Pledged Student Loan, including
without any limitation Indemnified Amounts payable under Section 11.01 of this
Agreement, but excluding recourse for any Defaulted Student Loan which is a
Defaulted Student Loan solely due to the default of the Obligor on the Student
Loan and (b) any indemnity claim and any claim arising from (i) the failure to
comply with any Transaction Document, (ii) from the inaccuracy of any
representation or warranty, or (iii) from any action, event, circumstances or
condition that would give rise to an indemnity claim or repurchase obligation.

      "Coverage Condition" means the requirement that for any Calculation Date
the Asset Coverage Ratio is greater than or equal to 100.1%.; provided, however,
that for the first 90 days after the Closing Date, "Coverage Condition" means
the requirement that for any Calculation Date the Asset Coverage Ratio is
greater than or equal to 100%.

                                       6
<PAGE>

      "Coverage Condition Certificate" means a certificate certifying as to the
Coverage Condition substantially in the form of Exhibit 5.02(d) to the
Agreement.

      "Credit and Collection Policy" means the policies and procedures attached
hereto as Appendix E with respect to the origination and collection of Private
Loans as such policies and procedures may be amended from time to time with the
written consent of the Agent.

      "Custody Agreement" means a custody agreement made by a Sub-Servicer in
favor of the Indenture Trustee with respect to the Pledged Student Loans dated
as of the Closing Date.

      "Default Ratio" means the Federal Default Ratio and/or the Private Loan
Default Ratio, as applicable.

      "Defaulted Amount" means, as of any date, with respect to any Private Loan
that is a Defaulted Pledged Student Loan and (x) that does not have the benefit
of a Private Loan Guarantee Agreement or (y) that does have the benefit of a
Private Loan Guarantee Agreement but the related Private Loan Guarantor has
failed to make when due the appropriate Guarantee Payment with respect thereto
or with respect to which payment shall not have been made within 120 days of
request therefor, the aggregate outstanding Principal Balance plus accrued
interest of such Private Loan.

      "Defaulted Pledged Student Loan" means any Pledged Student Loan that is a
Defaulted Student Loan.

      "Defaulted Student Loan" means any Student Loan (i) that is defaulted with
respect to any applicable servicing requirements; (ii) (A) with respect to any
FFELP Loan, as to which any payment, or portion thereof, is defaulted under the
terms of the FFELP Program unless such Student Loan is in Deferment or (B) with
respect to any Private Loan, is more than 120 days past due from the original
due date therefor; or (iii) the Obligor of which is the subject of an Event of
Bankruptcy or is deceased or disabled.

      "Defaulting Committed Lender" has the meaning set forth in Section
1.02(c).

      "Deferment" means (i) with respect to Federal Loans, the period permitted
by the Higher Education Act and the policies of the applicable FFELP Guarantor
as being a period during which a borrower under a Federal Loan may postpone
making payments of principal or interest and (ii) with respect to Private Loans,
the period specified in the Credit and Collection Policies governing such
Private Loan.

      "Demand Note" means that certain Non-Recourse Demand Note made by CFS to
the order of the Issuer dated July 23, 2003 in the original principal amount of
$20,000,000 which evidences indebtedness of CFS to the Issuer payable on demand
pursuant to the terms of the Demand Note, the Residual Payments Account Control
Agreement and this Agreement, and which note was provided to the Issuer as part
of the initial capitalization of the Issuer, and which is secured by the Demand
Note Collateral, as the same may from time to time be amended, restated,
supplemented or otherwise modified, and any instrument given substitution or as
a replacement therefor at any time.

                                       7
<PAGE>

      "Demand Note Collateral" means the collateral described in the Demand
Note.

      "Department" means the United States Department of Education, or any
successor thereto or to the functions thereof.

      "Disbursement Account" means the account established at a Qualified
Institution, in the name of the Indenture Trustee, for the benefit of the
Secured Parties, which account has been designated as the Disbursement Account,
and any other account designated as the Disbursement Account by the Agent or by
the Indenture Trustee with the written consent of the Agent.

      "Dollars" means dollars in lawful money of the United States of America.

      "Due Diligence Error Rate" means, with respect to the Master Servicer or
any Sub-Servicer, the error rate of such servicer in complying with the Due
Diligence Requirements as such error rate is determined by the annual compliance
audit of the Master Servicer's or such Sub-Servicer's FFELP Program loan
portfolio conducted by a qualified certified independent accountant pursuant to
the Higher Education Act.

      "Due Diligence Requirements" means the due diligence requirements
established from time to time pursuant to the Higher Education Act and any
regulations promulgated by the Secretary of Education thereunder from time to
time regarding the activities required to be performed by or on behalf of a
lender with respect to delinquent or defaulted loans, including the requirements
set forth in 34 C.F.R. Section 682.411.

      "Eligible Borrower" means, (i) with respect to any FFELP Loan, an Obligor
who is eligible under the Higher Education Act to be the obligor of a Student
Loan for financing a program of education at an Eligible Institution or for
consolidating two or more such Student Loans, including an Obligor who is
eligible under the Higher Education Act to be an obligor of a loan made pursuant
to Section 428A, 428B, 428C or 428H of the Higher Education Act (20 U.S.C.
Sections 1078-1. 1078-2, 1078-3, or 1078-8) and (ii) with respect to any Private
Loan, is a matriculated student at an Eligible Institution.

      "Eligible Pledged Student Loan" means a Pledged Student Loan that is an
Eligible Student Loan as of the date it became a Pledged Student Loan.

      "Eligible Institution" means an institution that is (i) an accredited
institution of higher education, (ii) a vocational school or (iii) any other
institution that, in all of the above cases, is an "eligible institution" as
defined in the Higher Education Act.

      "Eligible Investments" means cash or any one or more of the following
obligations or securities:

      (a)   marketable direct obligations issued or unconditionally guaranteed
by the United States government and backed by the full faith and credit of the
United States government;

      (b)   domestic and Eurodollar certificates of deposit and time deposits,
bankers' acceptances and floating rate certificates of deposit issued by any
commercial bank organized under the laws of the United States, any state
thereof, the District of Columbia, any foreign bank,

                                       8
<PAGE>

or its branches or agencies (fully protected against currency fluctuations),
which, at the time of acquisition, are rated A - 1 (or better) by S&P (or its
successors) or P-1 (or better) by Moody's (or its successors);

      (c)   commercial paper of United States and foreign banks and bank holding
companies and their subsidiaries and United States and foreign finance,
commercial industrial or utility companies which, at the time of acquisition,
are rated A-1 (or better) by S&P (or its successors) or P-1 (or better) by
Moody's (or its successors);

      (d)   marketable direct obligations of any state of the United States of
America or any political subdivision of any such state given on the date of such
investment the highest credit rating by Moody's (or its successors) and S&P (or
its successors); and

      (e)   shares in mutual funds rated "Aa2" or higher by Moody's or rated
"AA" or higher by S&P (in any amount) issued by a bank, trust company or
insurance company with its principal place of business in the United States of
America which has a combined capital, surplus and undivided profits of at least
$100 million;

      provided, that all such Eligible Investments in clauses (a) through (e)
above shall mature in accordance with the provisions specified in Section
3.01(f) of the Agreement and provided further that the Issuer and the Indenture
Trustee have not been notified in writing by the Agent that such investment is
"ineligible".

      "Eligible Lender Trust Agreement" means each eligible lender trust
agreement between the Eligible Lender Trustee and the Issuer.

      "Eligible Lender Trustee" has the meaning set forth in the preamble.

      "Eligible Lender Trustee Event of Default" means (i) the Eligible Lender
Trustee shall fail in any material respect to perform or observe any term,
covenant or agreement that is an obligation of the Eligible Lender Trustee under
this Agreement, an Eligible Lender Trust Agreement or any Transaction Document
and such failure continues unremedied for thirty days after (a) written notice
thereof shall have been given by the Agent to the Issuer or the Eligible Lender
Trustee or (b) the Eligible Lender Trustee or the Issuer has actual knowledge
thereof or (ii) any representation or warranty made or deemed to be made by the
Eligible Lender Trustee (or any of its officers) under or in connection with an
Eligible Lender Trust Agreement or any Transaction Document shall prove to have
been false or incorrect in any material respect when made and, if such condition
is capable of being remedied, such condition shall remain unremedied for 30 days
after (a) written notice thereof shall have been given by the Agent to the
Issuer or the Eligible Lender Trustee or (b) the Eligible Lender Trustee or the
Issuer has actual knowledge thereof.

      "Eligible Lender Trustee Fee Letter" has the meaning set forth in Section
4.01.

      "Eligible Student Loan" means a Student Loan, on any date of
determination:

      (a)   which was generated in the United States, its territories, its
possessions or other areas subject to its jurisdiction on behalf of the Issuer
or CFO (or any other Affiliated Originator)

                                       9
<PAGE>

either directly or indirectly through the Eligible Lender Trustee pursuant to an
Approved Origination Agreement and transferred to the Issuer pursuant to the CFO
Purchase and Sale Agreement (or such other Purchase and Sale Agreement entered
into between the Issuer and the applicable Affiliated Originator), or in the
ordinary course of its business purchased by CFO (or any other Affiliated
Originator) from a Third Party Originator pursuant to a Purchase and Sale
Agreement and sold to the Issuer, either directly or through the Eligible Lender
Trustee, pursuant to the terms of the CFO Purchase and Sale Agreement (or such
other Purchase and Sale Agreement entered into between the Issuer and the
applicable Affiliated Originator)(it being understood that if such Student Loan
is acquired by the Issuer pursuant to a Purchase and Sale Agreement (other than
the Purchase and Sale Agreements defined in clause (i) of the definition
thereof), the Agent and the Lenders shall, if so requested, have received prior
to such acquisition a favorable opinion or opinions of counsel to the applicable
Originator(s) thereunder in form and substance reasonably satisfactory to the
Agent and the Lenders) or which is an Add-on Loan related to a Federal
Consolidation Loan that is an Eligible Student Loan;

      (b)   that constitutes an instrument, account or a general intangible as
defined in the Uniform Commercial Code as in effect in the jurisdiction that
governs the perfection of the interests of Issuer therein and the perfection of
the Indenture Trustee's interest therein;

      (c)   the borrower thereof is an Eligible Borrower;

      (d)   the borrower thereof is a United States citizen or United States
national;

      (e)   (i) if such Student Loan is an FFELP Loan that is a subsidized
Stafford Loan, such Student Loan qualifies the Lenders to receive Interest
Subsidy Payments and Special Allowance Payments from the Department; (ii) if
such Student Loan is an FFELP Loan that is a Federal Consolidation Loan, such
Student Loan qualifies the holder thereof to receive Interest Subsidy Payments
and Special Allowance Payments from the Department and (iii) if such Student
Loan is an FFELP Loan that is a PLUS Loan, a SLS Loan or an Unsubsidized Loan,
such Student Loan qualifies the holder thereof to receive Special Allowance
Payments from the Department;

      (f)   is not a Defaulted Student Loan;

      (g)   that provides or, when the payment schedule with respect thereto is
determined, will provide for payments on a periodic basis that fully amortize
the Principal Balance thereof by its maturity, as such maturity may be modified
in accordance with any applicable deferral or forbearance periods granted in
accordance with applicable laws, including, (i) with respect to any FFELP Loan,
those of the Higher Education Act or any applicable Guarantee Agreement, as
applicable and (ii) with respect to any Private Loan, those of any applicable
Guarantee Agreement and the Credit and Collection Policy;

      (h)   with regard to which the warranty of Issuer in Section 6.01(g) is
true and correct;

      (i)   the sale or assignment of which to Issuer pursuant to a Purchase and
Sale Agreement and the granting of a security interest to the Indenture Trustee
pursuant to the Agreement does not contravene or conflict with any law or
regulation, or require the consent or approval of, or notice to, any Person;

                                       10
<PAGE>

      (j)   that is denominated and payable only in Dollars in the United
States;

      (k)   that together with the related Student Loan Note therefor represents
the genuine, legal, valid and binding payment obligation of the related
borrower, enforceable by or on behalf of the holder thereof against such
borrower in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, fraudulent conveyance and similar laws relating to
creditors' rights generally and subject to general principles of equity; and
that has not been satisfied, subordinated or rescinded and no right of
rescission, setoff, counterclaim or defense has been asserted or, to Issuer's
knowledge, overtly threatened in writing with respect to such Student Loan;

      (l)   that complied at the time it was originated or made, and on the date
that such Student Loan becomes a Pledged Student Loan complies, and Issuer and
its agents, with respect to such Student Loan, have at all times complied, in
all material respects with all requirements of applicable federal, state and
local laws and regulations thereunder, including, without limitation, (i) with
respect to any FFELP Loan, the Higher Education Act and the Equal Credit
Opportunity Act, the Federal Reserve Board's Regulation B and other applicable
consumer credit laws and equal credit opportunity laws, as applicable to such
FFELP Loan, (ii) with respect to any FFELP Loan, all applicable FFELP Guarantee
Agreements and (iii) with respect to any Private Loan complies with all
applicable Private Loan Guarantee Agreements and all regulations;

      (m)   with respect to any FFELP Loan, it is the subject of a valid FFELP
Guarantee Agreement with an eligible FFELP Guarantor under the Higher Education
Act (A) as to which a Guarantor Event of Default has not occurred and (B) which
(i) qualifies the holder thereof to receive Guarantee Payments equal to at least
98.00% of principal and interest from the Guarantor and qualifies the Guarantor
to receive Reimbursement Payments thereon from the Department, (ii) with respect
to which neither the Issuer nor the Eligible Lender Trustee is in default in any
material respect the performance of any of its covenants and agreements made in
the applicable Guarantee Agreement, (iii) with respect to which all amounts due
and payable to the Department or a Guarantor, as the case may be, have been paid
in full, and (iv) with respect to which no Unanticipated Change has occurred
affecting such FFELP Loan which has not been approved by the Agent;

      (n)   with respect to any FFELP Loan, the payment terms of which have not
been altered or amended other than in accordance with the Higher Education Act
and in accordance with a Reduced Rate Program and the interest rate of which is
the highest rate allowed by the Higher Education Act;

      (o)   that is the subject of a valid Sub-Servicing Agreement and as to
which a Servicer Event of Default has not occurred;

      (p)   if such Student Loan is not an FFELP Loan, it is a Private Loan that
(i) was initially originated by a national banking association and (ii) complies
in all material respects with the applicable Credit and Collection Policy and
all other requirements of the related Private Loan Guarantor and such other
requirements have been approved by the Agent;

                                       11
<PAGE>

      (q)   if such Student Loan is a Private Loan that does not have the
benefit of a Private Loan Guarantee Agreement, such Student Loan is part of a
Student Loan program which has been underwritten and approved by the Agent and
all origination fees with respect to such Private Loan have been deposited into
the Reserve Account;

      (r)   if such Student Loan is a Private Loan, all of the conditions set
forth in Section 5.02(j) for a Borrowing with respect to such Student Loan and
for its inclusion in the Coverage Condition shall have been satisfied;

      (s)   that with respect to any Private Loan that has the benefit of a
Private Loan Guarantee Agreement (i) is the subject of a valid Private Loan
Guarantee Agreement with a Private Guarantor and as to which neither a Guarantor
Event of Default nor a Material Adverse Change with respect to the applicable
Guarantor has occurred, (ii) qualifies the Lenders to receive Guarantee Payments
equal to at least 100% of principal and interest from the Guarantor, (iii) with
respect to which Issuer is not in default in any material respect the
performance of any of its covenants and agreements made in the applicable
Guarantee, and (iv) with respect to which all amounts due and payable to a
Guarantor, as the case may be, have been paid in full;

      (t)   if such Student Loan is a Private Loan, the interest rate payable on
such Private Loan is not less than or equal to an interest rate equal to the
prime rate minus 0.50% per annum;

      (u)   the inclusion of such Student Loan as an Eligible Student Loan shall
not result in an Event of Termination;

      (v)   with respect to which there has been no amendment to the Higher
Education Act or any other federal law since the Closing Date, which would (i)
reduce the rate of return on such Student Loan, (ii) reduce the guaranteed value
of such Student Loan, (iii) impose any additional requirements on servicers of
such Student Loan or (iv) otherwise adversely affect in any manner the interests
of the Agent or the Lenders in such Student Loan unless, in each case, the
Issuer, the Agent and the Lenders have all agreed in writing on an appropriate
valuation for such Student Loan;

      (w)   with respect to which the associated Student Loan Note is either (i)
in the possession of a Third Party Servicer or (ii) in the possession of an
Affiliated Servicer and, with respect to Student Loan Notes that is not
represented by a master promissory note, marked with the legend set forth in
Section 7.01(q); and

      (x)   with respect to which the Student Loan Note, if in electronic form
or including an electronic signature, complies with all regulations, standards
and other requirements provided by the applicable Guarantor or the Department
relating to the validity and enforceability of such Student Loan Note, including
without limitation the U.S. Department of Education Standards for Electronic
Signatures in Electronic Student Loan Transactions, as revised or supplemented
from time to time, and the electronic record of such Student Loan Note, or if
applicable, such electronic signature, is maintained in a location and using a
method consented to in writing by the Agent, the Conduit Lenders and the
Majority Committed Lenders and is subject to any bailment or custody
arrangements required by the Agent, the Conduit Lenders and the Majority
Committed Lenders.

                                       12
<PAGE>

      "ERISA" means the U.S. Employee Retirement Income Security Act of 1974, as
amended from time to time.

      "ERISA Affiliate" means (i) any corporation which is a member of the same
controlled group of corporations (within the meaning of Section 414(b) of the
Code) as Issuer, (ii) partnership or other trade or business (whether or not
incorporated) under common control (within the meaning of Section 414(c) of the
Code) with Issuer, or (iii) member of the same affiliated service group (within
the meaning of Section 414(m) of the Code) as Issuer, any corporation described
in clause (i) above or any partnership or trade or business described in clause
(ii) above.

      "Eurodollar Rate" means, for any Settlement Period, an interest rate per
annum (rounded upward to the nearest 1/16th of 1.00%) determined pursuant to the
following formula:

         Eurodollar Rate    =                  LIBOR
                                ------------------------------------
                                1.00 - Eurodollar Reserve Percentage

         Where,

      "Eurodollar Reserve Percentage" means, for any Settlement Period, the
maximum reserve percentage (expressed as a decimal, rounded upward to the
nearest 1/100th of 1.00%) in effect on the date LIBOR for such Settlement Period
is determined under regulations issued from time to time by the Federal Reserve
Board for determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) with respect to
"Eurocurrency" funding (currently referred to as "Eurocurrency liabilities")
having a term comparable to such Settlement Period.

      "Event of Bankruptcy" shall be deemed to have occurred with respect to a
Person if either:

                  (a)   a case or other proceeding shall be commenced, without
            the application or consent of such Person, in any court, seeking the
            liquidation, reorganization, debt arrangement, dissolution, winding
            up, or composition or readjustment of debts of such Person, the
            appointment of a trustee, receiver, custodian, liquidator, assignee,
            sequestrator or the like for such Person or all or substantially all
            of its assets, or any similar action with respect to such Person
            under any law relating to bankruptcy, insolvency, reorganization,
            winding up or composition or adjustment of debts, and such case or
            proceeding shall continue undismissed, or unstayed and in effect,
            for a period of 60 consecutive days; or an order for relief in
            respect of such Person shall be entered in an involuntary case under
            the federal bankruptcy laws or other similar laws now or hereafter
            in effect; or

                  (b)   such Person shall commence a voluntary case or other
            proceeding under any applicable bankruptcy, insolvency,
            reorganization, debt arrangement, dissolution or other similar law
            now or hereafter in effect, or shall consent to the appointment of
            or taking possession by a receiver, liquidator, assignee, trustee,
            custodian, sequestrator (or other similar official) for, such Person
            or for any

                                       13
<PAGE>

            substantial part of its property, or shall make any general
            assignment for the benefit of creditors, or shall fail to, or admit
            in writing its inability to, pay its debts generally as they become
            due, or, if a corporation or similar entity, its board of directors
            shall vote to implement any of the foregoing.

      "Event of Termination" has the meaning set forth in Section 8.01.

      "Excess Concentration Amount" means the sum of (i) the Private Loan Excess
Amount; (ii) the Unguaranteed Private Loan Excess Amount; (iii) the Career
School/Non Degree Granting Institution Loan Excess Amount; (iv) the Reduced Rate
Program Excess Amount; and (v) the Rehab Loan Excess Amount where:

            "Private Loan Excess Amount" means the outstanding Principal Balance
      (including accrued but unpaid interest to the extent not previously
      capitalized) of Eligible Student Loans which are Private Loans which
      exceed 15% of the Net Pool Balance;

            "Unguaranteed Private Loan Excess Amount" means the outstanding
      Principal Balance (including accrued but unpaid interest to the extent not
      previously capitalized) of Eligible Student Loans which are Private Loans
      but which do not have the benefit of a Private Loan Guarantee Agreement;

            "Career School/Non Degree Granting Institution Loan Excess Amount"
      means the outstanding Principal Balance of Eligible Student Loans which
      are FFELP Loans which are Career School/Non Degree Granting Institution
      Loans which exceed 5% of the outstanding Principal Balance of Eligible
      Student Loans that are FFELP Loans;

            "Reduced Rate Program Excess Amount" means the outstanding Principal
      Balance of Eligible Student Loans which are FFELP Loans which are subject
      to a Reduced Rate Program of the type described in clause (a) of the
      definition of "Reduced Rate Program" which exceed 20% of the outstanding
      Principal Balance of all Eligible Student Loans that are FFELP Loans; and

            "Rehab Loan Excess Amount" means the outstanding Principal Balance
      of Eligible Student Loans which are Rehab Loans.

      "Excess Spread" means, the annualized percentage, calculated on the last
day of each month, which is a fraction, the numerator of which is the positive
difference, if any, between (x) the Expected Interest Collections for such month
with respect to the Pledged Student Loans and (y) the sum of (i) all fees
payable to the Master Servicer or any Sub-Servicers for such month with respect
to the Pledged Student Loans, (ii) all other Fees payable hereunder for such
month, (iii) all Monthly Rebate Fees for such month, and (iv) all interest
payable to the Lenders in respect of the Advances for such month pursuant to
Section 2.02 and the denominator of which is the weighted average Principal
Balance of all Pledged Student Loans during such month.

      "Exchange Act" means the Securities and Exchange Act of 1934, as amended.

      "Expected Interest Collections" means, for any calendar month, the sum of
(i) the amount of interest due or accrued with respect to the Pledged Student
Loans and payable by the related

                                       14
<PAGE>

Obligors thereof during such calendar month (whether or not such interest is
actually paid), (ii) all Interest Subsidy Payments and Special Allowance
Payments estimated to have accrued with respect to Pledged Student Loans during
such calendar month whether or not actually received and (iii) Investment
Earnings for such calendar month.

      "Facility Termination Date" means the earliest to occur of (a) with
respect to the Committed Lenders' Commitments hereunder, July 20, 2004 or, if
the Facility Termination Date has been extended pursuant to Section 1.07, such
later date, (b) with respect to the Conduit Lenders, the earlier of (i) the
Maturity Date unless such date is extended with the consent of the parties
hereto and (ii) the termination of the commitment of any Program Support
Provider to the related Conduit Lender with respect to this Agreement (unless
such Program Support Provider is replaced in accordance with the terms and
conditions of the related Program Support Agreement or, assuming that such
Program Support Provider is also a Committed Lender, the Program Limit is
reduced in accordance with Section 1.07(b), (c) the date determined pursuant to
Section 8.02, (d) the Premium Letter of Credit Expiration Date and (e) the date
specified by the Issuer upon at least sixty Business Day's prior written notice
to the Agent and each of the Lenders.

      "FDIC" means the Federal Deposit Insurance Corporation, or any agency
succeeding substantially to its responsibilities.

      "Federal Consolidation Loan" means a loan made to an Obligor pursuant to
which the Obligor consolidates two or more of its PLUS Loans, SLS Loans or
Stafford Loans in accordance with the Higher Education Act.

      "Federal Default Ratio" means the ratio, computed as of the last day of
any Settlement Period, expressed as a percentage, of (i) the Unguaranteed Amount
of the aggregate Principal Balance of all FFELP Loans which have become
Defaulted Pledged Student Loans during such Settlement Period, divided by (ii)
the weighted average aggregate Principal Balance of all FFELP Loans in Repayment
status during such Settlement Period.

      "Federal Funds Rate" means, for any period, the per annum rate set forth
in the weekly statistical release designated as H.15(519), or any successor
publication, published by the Federal Reserve Board (including any such
successor, "H.15(519)") for such day opposite the caption "Federal Funds
(Effective)". If on any relevant day such rate is not yet published in
H.15(519), the rate for such day will be the rate set forth in the daily
statistical release designated as the Composite 3:30 p.m. Quotations for U.S.
Government Securities, or any successor publication, published by the Federal
Reserve Bank of New York (including any such successor, the "Composite 3:30 p.m.
Quotation") for such day under the caption "Federal Funds Effective Rate." If on
any relevant day the appropriate rate for such previous day is not yet published
in either H.15(519) or the Composite 3:30 p.m. Quotations, the rate for such day
will be the arithmetic mean as determined by the Agent of the rates for the last
transaction in overnight Federal funds arranged prior to 9:00 a.m. (New York
time) on that day by each of three leading brokers of Federal funds transactions
in New York City selected by the Agent.

      "Federal Reserve Board" means the Board of Governors of the Federal
Reserve System, or any successor thereto or to the functions thereof.

                                       15
<PAGE>

      "Fees" means (without duplication) all fees payable by Issuer pursuant to
the Program Fee Letter, the Indenture Trustee Fee Letter, the Eligible Lender
Trustee Fee Letter, the Letter of Credit Provider Fee Letter and this Agreement.

      "FFELP Guarantee Agreement" means any of, and "FFELP Guarantee Agreements"
means all of, the agreements pursuant to which a FFELP Guarantor guarantees
Student Loans that are FFELP Loans included or to be included in the Pledged
Student Loans in effect on the Closing Date and any such agreements that
thereafter become effective that are approved in writing by the Agent, the
Conduit Lenders and the Majority Committed Lenders, in each case as the same may
be amended, supplemented or otherwise modified from time to time.

      "FFELP Guarantors" means the entities set forth on Appendix C attached
hereto and any other guaranty agency which is authorized to act as a guarantor
of FFELP Loans under the FFELP Program, which is in compliance with all
regulatory requirements and guidelines, and which has not been specifically
excluded by the Agent or the Lenders as a FFELP Guarantor by written notice to
Issuer from the Agent at the time the Student Loan being guaranteed by such
guarantor becomes a Pledged Student Loan.

      "FFELP Loan" means a Federal Consolidation Loan, a PLUS Loan, a SLS Loan
or a Stafford Loan.

      "FFELP 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 Section 428A thereof, Federal PLUS Loans authorized under
Section 428B thereof, Federal Consolidation Loans authorized under Section 428C
thereof and Unsubsidized Loans authorized under Section 428H thereof.

      "Final Payout Date" means the date immediately following the later to
occur of (i) the Maturity Date and (ii) the date on which the principal and
interest of the Note shall have been paid in full and all other amounts payable
by Issuer under the Transaction Documents shall have been paid in full.

      "Financed Premium Amount" means, at any time of determination in the case
of any Student Loan that is an Eligible Student Loan and that may be financed at
a premium, the lesser of (a) an amount equal to the product of (i) the Principal
Balance of such Student Loan times (ii) the rate set forth on the latest version
of the Schedule of FFELP Premium Base Amounts (which schedule has been approved
by the Agent, the Conduit Lenders and the Majority Committed Lenders) as the
rate in connection with premiums available for funding under the Agreement with
respect to such Student Loan at such time and (b) the highest Financed Premium
Amount which shall cause the Weighted Average Financed Premium for all FFELP
Loans, or for any purchased portfolio of FFELP Loans, to not exceed 2.50% of
outstanding Principal Balance of such Student Loans plus accrued but unpaid
interest of such Student Loans (to the extent not previously capitalized) unless
CNAI or an Affiliate of CNAI shall have conducted a Portfolio Valuation with
respect to such Student Loans and the Agent, the Conduit Lenders and the
Majority Committed Lenders determine based on the results of such Portfolio
Valuation that the Collateral Value of such Student Loans is sufficient to
support such a higher percentage.

                                       16
<PAGE>

      "Financed Student Loan" means each Student Loan acquired or funded, or
purported to be acquired or funded, with the proceeds of Advances.

      "Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, any body or entity exercising executive,
legislative, judicial, regulatory or administrative functions or pertaining to
government, including without limitation any court, and any Person owned or
controlled, through stock or capital ownership or otherwise, by any of the
foregoing.

      "Guarantee" of or by any Person (the "guarantor") means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any indebtedness or other obligation of any other Person
(the "primary obligor") in any manner, whether directly or indirectly, and
including any obligation of the guarantor, direct or indirect, (a) to purchase
or pay (or advance or supply funds for the purchase or payment of) such
indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or
lease property, securities or services for the purpose of assuring the owner of
such indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay such
indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such indebtedness or
obligation.

      "Guarantee Agreement" means any of, and "Guarantee Agreements" means all
of, the FFELP Guarantee Agreements and the Private Loan Guarantee Agreements.

      "Guarantee Payment" means any payment by a Guarantor pursuant to a
Guarantee Agreement in respect of a Pledged Student Loan.

      "Guaranteed Amount" means with respect to a Student Loan, the amount of
such Student Loan guaranteed under a Private Loan Guarantee Agreement.

      "Guarantor" means a FFELP Guarantor and/or a Private Loan Guarantor, as
applicable.

      "Guarantor Event of Default" means (a) with respect to any FFELP
Guarantor, the Guarantor becomes ineligible to act as a guarantee agency under
the Higher Education Act; (b) with respect to any Private Loan Guarantor, the
occurrence of an Event of Bankruptcy with respect to such Guarantor; (c) with
respect to any Private Loan Guarantor, the rating by the Rating Agencies on the
long-term unsecured debt of such Guarantor shall fall below BBB- by S&P or below
Baa3 by Moody's; and (d) with respect to any Guarantor, an event of default
occurs under its Guarantee Agreement.

      "Higher Education Act" means the Higher Education Act of 1965, as amended
or supplemented from time to time, or any successor federal act, together with
any rules (including, without limitation, the Common Manual), regulations and
interpretations promulgated thereunder.

      "Indebtedness" of any Person means, without duplication, (a) all
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all

                                       17
<PAGE>

obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person upon which interest charges are
customarily paid, (d) all obligations of such Person under conditional sale or
other title retention agreements relating to property acquired by such Person,
(e) all obligations of such Person in respect of the deferred purchase price of
property or services (excluding current accounts payable incurred in the
ordinary course of business), (f) all indebtedness of others secured by any
mortgage, encumbrance, lien, pledge, charge or security interest of any kind on
property owned or acquired by such Person, whether or not the Indebtedness
secured thereby has been assumed, (g) all Guarantees by such Person of
Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i)
all obligations of such Person to reimburse any bank or other Person in respect
of amounts paid under letters of credit and similar instruments, (j) all
obligations, contingent or otherwise, of such Person in respect of bankers'
acceptances and (k) obligations of such Person under any foreign exchange
contract, currency swap agreement, interest rate swap, cap or collar agreement
or other similar agreement or arrangement designed to alter the risks of that
Person arising from fluctuations in currency values or interest rates, in each
case whether contingent or matured. The Indebtedness of any Person shall include
the indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a
result of such Person's ownership interest in or other relationship with such
entity, except to the extent the terms of such indebtedness provide that such
Person is not liable therefor.

      "Indemnified Amounts" has the meaning set forth in Section 11.01.

      "Indemnified Party" has the meaning set forth in Section 11.01.

      "Indenture Trustee" has the meaning set forth in the preamble.

      "Indenture Trustee Fee Letter" has the meaning set forth in Section 4.01.

      "Indenture Trustee's Fees" means the fees paid to the Indenture Trustee by
Issuer pursuant to the Indenture Trustee Fee Letter.

      "Intercreditor Agreement" means the Intercreditor Agreement dated as of
the Closing Date among the Issuer, CFS, Agent, the Indenture Trustee and
TCW/Crescent Mezzanine Management III, L.L.C., together with Amendment No. 3 to
Amended and Restated Securities Purchase Agreement dated as of the Closing Date
among CFS, CFSL Acquisition Corp., CFSL Holdings Corp., the Guarantors and
Noteholders party thereto and TCW/Crescent Mezzanine Management III, L.L.C., as
Collateral Agent.

      "Interest Subsidy Payments" means payments, designated as such, consisting
of interest subsidies to Issuer by the Department in respect of Student Loans
that are FFELP Loans in accordance with the Higher Education Act.

      "Investment Earnings" means, with respect to each Settlement Date, all
investment earnings (net of losses and investment expenses) on investments or
other amounts which are on deposit in the Accounts.

      "Issuer" has the meaning set forth in the preamble.

                                       18
<PAGE>

      "Issuer Order" means a direction letter, in such form as the Indenture
Trustee and Issuer may agree to specifying the Eligible Investments that funds
in the Collection Account and the Reserve Account shall be invested in pursuant
to Section 3.01.

      "Joint Sharing Agreement" means each Joint Sharing Agreement entered into
from time to time among the Issuer, the Eligible Lender Trustee and such other
parties that share the benefit of the Eligible Lender Trustee's eligible lender
identification number with Issuer, in the form and substance of Exhibit B to
this Agreement with such changes approved by the Issuer and the Agent.

      "Lender" means either a Conduit Lender or a Committed Lender.

      "Lenders" has the meaning set forth in the preamble.

      "Letter of Credit Provider" means Citibank.

      "Letter of Credit Provider Fee Letter" has the meaning set forth in
Section 4.01.

      "LIBOR" for any Settlement Period means the rate of interest per annum at
which deposits in U.S. Dollars are offered by the principal office of Citibank
in London, England to prime banks in the London interbank market at 11:00 a.m.
(London time) two Business Days before the first day of such Settlement Period
in an amount approximately equal or comparable to the then outstanding Advances
and for a period equal to such Settlement Period.

      "Lien" means any interest in property securing an obligation owed to, or a
claim by, a Person other than the owner of the property, whether such interest
is based on the common law, statute or contract, and including but not limited
to the security interest lien arising from a mortgage, encumbrance, pledge,
assignment, conditional sale or trust receipt for a lease, consignment or
bailment for security purposes. The term "Lien" shall include reservations,
exceptions, encroachments, easements, rights of way, covenants, conditions,
restrictions, leases and other title exceptions and encumbrances affecting
property.

      "Liquidation Period" means the period commencing on the Facility
Termination Date and ending on the Final Payout Date.

      "Location" means, with respect to any Person, the location within the
meaning of Section 9-307 of the UCC as in effect in the State of New York from
time to time.

      "Majority Committed Lenders" means at any time Committed Lenders whose
Commitments together exceed fifty percent of the aggregate of all Commitments at
such time.

      "Master Servicer" has the meaning set forth in the preamble.

      "Master Servicer's Fee" means an aggregate amount equal to (i) for each
Settlement Period other than the initial Settlement Period, the product of (a)
the outstanding weighted average Principal Balance of all Pledged Student Loans
during such Settlement Period multiplied by (b) 0.0333% and (ii) for the initial
Settlement Period, the product of (a) the outstanding weighted average Principal
Balance of all Pledged Student Loans during such Settlement Period

                                       19
<PAGE>

multiplied by (b) 0.0333% multiplied by (c) a fraction equal to the number of
days in the initial Settlement Period divided by 30; in each case, payable to
the Master Servicer and/or the Sub-Servicers pursuant to Section 3.03(b) and the
provisions of Section 12.18 of the Agreement.

      "Material Adverse Change" means the occurrence of an event or a change in
circumstances which has or could be reasonably be viewed as having a Material
Adverse Effect.

      "Material Adverse Effect" with respect to any event or circumstance and
any Person, means that such event or circumstance would cause the rating of the
Note to fall below the equivalent of "A2" by Moody's as reasonably determined by
the Agent using the ratings methodology the Agent employs for rating the Note or
a material adverse effect on:

            (i)   the business, assets, financial condition, prospects or
      operations of such Person;

            (ii)  the ability of such Person to perform its obligations under
      this Agreement or any other Transaction Document;

            (iii) the validity, enforceability or collectibility of this
      Agreement, any other Transaction Document to which such Person is a party,
      a material amount of the Pledged Student Loans or the Student Loan Notes,
      any Sub-Servicing Agreement or the Guarantee Agreements;

            (iv)  the status, existence, perfection, priority or enforceability
      of the Indenture Trustee's security interest in the Collateral; or

            (v)   a Guarantor's obligation to guarantee payment of a Pledged
      Student Loan.

      "Maturity Date" means July 18, 2006.

      "Monthly Advances" has the meaning set forth in Section 3.05(e).

      "Monthly Rebate Fee" means with respect to any Settlement Period, the sum
of the following product calculated for each day in such Settlement Period: (a)
the rate, expressed as a percentage, established under the FFELP Program divided
by 365 or 366, as applicable, times (b) the aggregate outstanding Principal
Balance (plus accrued interest) of all Pledged Student Loans that are Federal
Consolidation Loans on such day and require remittance of a monthly rebate fee.

      "Monthly Report" means a report, in substantially the form of Exhibit
7.02(c), furnished by Issuer (or the Master Servicer on its behalf) to the
Agent.

      "Moody's" means Moody's Investors Service, Inc.

      "Net Consolidation Ratio" means, for any calendar month, the ratio of (i)
the Principal Balance of all FFELP Loans which are repaid or otherwise removed
from Net Pool Balance due to a loan consolidation to (ii) the Principal Balance
of Federal Consolidation Loans which became Pledged Student Loans and were added
to Net Pool Balance during the same period.

                                       20
<PAGE>

      "Net Pool Balance" means at any time of calculation hereunder, the
aggregate outstanding Principal Balance (as reported by Issuer on the last
Monthly Report delivered to the Agent) of the Pledged Student Loans (plus
accrued but unpaid interest to the extent not previously capitalized and any
unamortized Financed Premium Amounts) less the sum of (without duplication), to
the extent included in the Principal Balance: (i) the Unguaranteed Amount of the
Defaulted Student Loans that constitute part of the Collateral, (ii) the
outstanding Principal Balance (as reported by Issuer on the last Monthly Report
delivered to the Agent) of the Pledged Student Loans (other than those referred
to in clause (i) of this definition) that constitute part of the Collateral but
which are not Eligible Student Loans (plus accrued but unpaid interest to the
extent not previously capitalized and any unamortized Financed Premium Amounts)
as of the date of such calculation and (iii) Excess Concentration Amounts.

      "Non-Defaulting Committed Lender" has the meaning set forth in Section
1.02(c).

      "Non-Excluded Taxes" has the meaning set forth in Section 2.07(d).

      "Non-Renewing Committed Lender" has the meaning set forth in Section 1.07.

      "Note" has the meaning set forth in Section 2.01.

      "Notice of Release" has the meaning set forth in Section 1.04.

      "Obligor" means a Person obligated to make payments with respect to a
Student Loan, including the students, Guarantors and the Department.

      "Origination Agreement" means an agreement providing for the origination
of Pledged Student Loans by or on behalf of an Originator.

      "Originator" means each Affiliated Originator and each Third-Party
Originator.

      "Other Taxes" has the meaning assigned to it in Section 2.07(b).

      "Participant" has the meaning assigned to it in Section 10.01(g).

      "Permitted Payments" has the meaning assigned to it in Section 1.03(b).

      "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.

      "Pledged Student Loan" has the meaning assigned to it in the definition of
"Collateral".

      "Plan" has the meaning assigned to it in Section 6.01(f).

      "PLUS Loan" means a parental loan for undergraduate students, made in
accordance with the Higher Education Act.

      "Portfolio Valuation" means a determination by CNAI or an Affiliate of
CNAI of the fair market value of part or all of the actual Collateral as of any
Calculation Date at the equivalent of

                                       21
<PAGE>

a program rated "A2" by Moody's as reasonably determined by the Agent using the
ratings methodology the Agent employs for rating the Note.

      "Premium Amortization" means the Financed Premium Amount paid for a
Pledged Student Loan and amortized as an expense during the applicable time
period in accordance with generally accepted accounting principals.

      "Premium Base" means, at any time of determination, the aggregate, for all
Stafford Loans, PLUS Loans and Federal Consolidation Loans that are Pledged
Student Loans that are also Eligible Student Loans, of the Financed Premium
Amount with respect to such Student Loans.

      "Premium Letter of Credit" means the letter of credit issued by the Letter
of Credit Provider pursuant to Section 1.06.

      "Premium Letter of Credit Expiration Date" means July 21, 2004 as such
date may be extended from time to time in a writing signed by the Letter of
Credit Provider.

      "Principal Balance" with respect to any Student Loan means the original
principal amount of such Student Loan, plus capitalized interest thereon
pursuant to the Higher Education Act or any Private Loan program, if any, less
payments of principal made by or on behalf of the Obligor of such Student Loan.

      "Private Loan" means an education loan made to a student or parent of a
dependent student that is not granted under the FFELP Program.

      "Private Loan Default Ratio" means the ratio, computed as of the last day
of any Settlement Period, expressed as an annualized percentage, of (i) the
aggregate Principal Balance of all Private Loans that are Pledged Student Loans
which have become Defaulted Pledged Student Loans during such Settlement Period,
divided by (ii) the weighted average aggregate Principal Balance of all Private
Loans that are Pledged Student Loans in Repayment status for the full amount of
principal and accrued interest during such Settlement Period.

      "Private Loan Guarantee Agreement" means any of, and "Private Loan
Guarantee Agreements" means all of, the agreements pursuant to which a Private
Loan Guarantor guarantees (or insures) certain Student Loans that are Private
Loans included or to be included in the Pledged Student Loans in effect on July
23, 2003 and any such agreements that thereafter become effective that are
approved in writing by the Agent, the Conduit Lenders and the Majority Committed
Lenders, in each case as the same may be amended, supplemented or otherwise
modified from time to time.

      "Private Loan Guarantor" means TERI and such other third-party guarantors
(or insurers) which are approved by the Agent, the Conduit Lenders and the
Majority Committed Lenders in writing.

      "Pro Rata Share" means, (a) with respect to a Committed Lender, a fraction
(expressed as a percentage) computed by dividing such Committed Lender's
Commitment by the aggregate Commitments of all Committed Lenders and (b) with
respect to a Conduit Lender, the Pro Rata

                                       22
<PAGE>

Share identified on the signature page of such Lender, in each case as the same
may be amended by Assignment and Acceptances from time to time).

      "Product Information" has the meaning set forth in Section 13.13(b).

      "Program Fee Letter" has the meaning set forth in Section 4.01.

      "Program Limit" means $500,000,000, as such amount may be reduced pursuant
to Section 2.05 of the Agreement.

      "Program Support Agreement" means and includes any agreement entered into
by any Program Support Provider providing for the issuance of one or more
letters of credit for the account of a Conduit Lender, the issuance of one or
more surety bonds for which a Conduit Lender is obligated to reimburse the
applicable Program Support Provider for any drawings thereunder, the sale by a
Conduit Lender to any Program Support Provider of Advances (or portions thereof)
and/or the making of loans and/or other extensions of credit to a Conduit Lender
in connection with such Conduit Lender's securitization program, together with
any letter of credit, surety bond or other instrument issued thereunder (but
excluding any discretionary advance facility provided by the Agent).

      "Program Support Provider" means and includes any Person (other than any
customer of a Conduit Lender) now or hereafter extending credit or having a
commitment to extend credit to or for the account of, or to make purchases from,
a Conduit Lender or issuing a letter of credit, surety bond, guarantee or other
instrument to support any obligations arising under or in connection with the
Conduit Lender's securitization program.

      "Promissory Note Rate" means, for any Settlement Period, the per annum
rate equal to the weighted average of the per annum rates paid or payable by the
Conduit Lenders from time to time as interest on or otherwise (by means of
interest rate hedges or otherwise) in respect of the Promissory Notes that are
allocated, in whole or in part, by the Agent (on behalf of the Conduit Lenders)
to fund or maintain the Conduit Lenders' Advances during such Settlement Period,
as determined by the Agent (on behalf of the Conduit Lenders) and reported to
the Issuer and the Master Servicer, which rates shall reflect and give effect to
the commissions of placement agents and dealers in respect of Promissory Notes,
to the extent such commissions are allocated, in whole or in part, to such
Promissory Notes by the Agent (on behalf of the Conduit Lenders); provided,
however, that if any component of such rate is a discount rate, in calculating
the "Promissory Note Rate" for such Settlement Period, the Agent shall for such
component use the rate resulting from converting such discount rate to an
interest bearing equivalent rate per annum; provided, further, that the
Promissory Note Rate with respect to Advances funded by Participants shall be
the same rate as in effect from time to time on Advances or portions thereof
that are not funded by a Participant; provided, further, that if all of the
Advances maintained by the Conduit Lenders are funded by Participants, then the
Promissory Note Rate shall be the applicable Conduit Lender's pool funding rate
in effect from time to time for its largest size pool of transactions which
settles with a frequency corresponding to the Settlement Period.

      "Promissory Notes" means, collectively, (i) promissory notes issued by the
Conduit Lenders and (ii) participations sold by the Conduit Lenders pursuant to
Section 10.01(g);

                                       23
<PAGE>

provided that the term "Promissory Notes" shall not include the interests sold
by the Conduit Lenders under a Program Support Agreement.

      "Purchase and Sale Agreement" means (i) the CFO Purchase and Sale
Agreement; (ii) each loan purchase agreement for the sale of Student Loans which
will become Pledged Student loans by a Third Party Originator to an Affiliated
Originator in substantially the form attached as Appendix D with only such
substantive changes as have been disclosed to the Agent in writing and approved
by the Agent in writing and with respect to which counsel to the Issuer shall
have delivered a true sale opinion to the Agent and the Lenders, in form, scope
and substance acceptable to the Agent in its sole discretion, with respect to
the sales contemplated thereunder; and (ii) each loan purchase agreement in such
form which is approved by the Agent, the Conduit Lenders and the Majority
Committed Lenders in writing prior to the execution thereof; in each case
together with such opinions, UCC financing statements and any other documents as
the Agent or the Lenders may require, and in each case as the same may be
amended, restated, supplemented, or otherwise modified from time to time with
the prior written consent of the Agent, the Conduit Lenders and the Majority
Committed Lenders.

      "Purchase Termination Event" with respect to an Originator means the
occurrence of any of the following events, to the extent that the Issuer has
actual knowledge or has been given written notice of such event: (a) a Material
Adverse Change in the condition of such Originator has occurred and is
continuing; (b) an Event of Bankruptcy has occurred with respect to such
Originator; (c) such Originator shall fail to pay, or shall default in the
payment of, any principal or premium or interest on any Indebtedness beyond any
applicable grace period, or such Originator shall breach or default with respect
to any other term of any evidence of any Indebtedness, or of any loan agreement,
mortgage, indenture or other agreement relating thereto, if such failure,
default or breach continues beyond any applicable grace period, if the effect of
such failure, default or breach (i) is to cause the holder or holders of that
Indebtedness (or a trustee on behalf of such holder or holders) to cause that
Indebtedness to become or be declared due prior to its stated maturity or (ii)
would permit the holder of such Indebtedness to accelerate the maturity of such
Indebtedness and if the amount of the Indebtedness involved in all such
failures, defaults and breaches is greater than $100,000; (d) one or more
judgments for the payment of money in an aggregate amount in excess of $100,000
shall be rendered against such Originator and the same shall remain undischarged
for a period of thirty (30) consecutive days during which execution shall not be
effectively stayed or a satisfactory bond against such judgment shall not have
been posted, or any action shall be legally taken by a judgment creditor to
attach or levy upon any assets of such Originator to enforce any such judgment
and a bond shall not have been posted or (e) a "Termination Date" shall occur
under any Purchase and Sale Agreement.

      "Qualified Institution" means Citibank, the Indenture Trustee, and, with
respect to the Collection Account, the Disbursement Account and the Reserve
Account, the Indenture Trustee or any bank or trust company which has (a) a
long-term unsecured debt rating of at least "A2" by Moody's and at least "A" by
S&P and (b) a short-term rating of at least "P-1" by Moody's and at least "A-1"
by S&P.

      "Ratings Agencies" means Moody's and S&P.

                                       24
<PAGE>

      "Reassignment" has the meaning set forth in Section 6.02.

      "Reassignment Amount" has the meaning set forth in Section 6.02.

      "Reduced Rate Program" means a program that provides borrowers of FFELP
Loans reduced interest rate benefits that are no greater than (a) 1.00% less
than the maximum interest rate specified under the Higher Education Act,
effective after 36 consecutive on-time payments have been received and posted by
the applicable Sub-Servicer and (b) 0.25% less than the maximum interest rate
specified under the Higher Education Act upon agreement by the borrower to have
his or her payments automatically deducted from his or her checking account,
together with any such other Reduced Rate Program approved by the Agent in
writing.

      "Reference Bank" means Citibank.

      "Regulation D" means Regulation D of the Federal Reserve Board, or any
other regulation of the Federal Reserve Board that prescribes reserve
requirements applicable to nonpersonal time deposits or "Eurocurrency
Liabilities" as presently defined in Regulation D, as in effect from time to
time.

      "Regulatory Change" means, relative to any Affected Party:

            (a)   any change after the date of this Agreement in (or the
      adoption implementation, change in phase-in or commencement of
      effectiveness of) any

                  (i)   United States federal or state law or foreign law
            applicable to such Affected Party;

                  (ii)  regulation, interpretation, directive, requirement or
            request (whether or not having the force of law) applicable to such
            Affected Party of (A) any court, government authority charged with
            the interpretation or administration of any law referred to in
            clause (a)(i) or of (B) any fiscal, monetary or other authority
            having jurisdiction over such Affected Party; or

                  (iii) generally accepted accounting principles or regulatory
            accounting principles applicable to such Affected Party and
            affecting the application to such Affected Party of any law,
            regulation, interpretation, directive, requirement or request
            referred to in clause (a)(i) or (a)(ii) above; or

            (b)   any change after the date of this Agreement in the application
      to such Affected Party of any existing law, regulation, interpretation,
      directive, requirement, request or accounting principles referred to in
      clause (a)(i), (a)(ii), (a)(iii) or (b) above.

      "Rehab Loan" means a Federal Consolidation Loan that consolidates one or
more Defaulted Student Loans.

      "Reimbursement Agreement" means the Letter of Credit Reimbursement
Agreement dated as of July 23, 2003, between the Issuer and the Letter of Credit
Provider, as amended, restated, supplemented or otherwise modified from time to
time.

                                       25
<PAGE>

      "Reimbursement Contract" means the agreements between the FFELP Guarantors
and the Department providing for the payment by the Secretary of amounts
authorized to be paid pursuant to the Higher Education Act, including, without
limitation, reimbursement of amounts paid or payable upon Defaulted Student
Loans that are FFELP Loans, Interest Subsidy Payments and Special Allowance
Payments to holders of Student Loans that are FFELP Loans.

      "Reimbursement Obligation" has the meaning set forth in Section 1.06(b).

      "Reimbursement Payment" means any payment by the Secretary pursuant to a
Reimbursement Contract in respect of a Student Loan that is an FFELP Loan.

      "Related Security" means, with respect to any Pledged Student Loan: (a)
all of Issuer's and the Eligible Lender Trustee's right, title and interest in
and to the Student Loan Note(s) and all other agreements that relate to such
Pledged Student Loan; (b) all of Issuer's and the Eligible Lender Trustee's
right, title and interest under any Guarantee Agreement related thereto; (c) all
security interests or liens and property subject thereto from time to time
purporting to secure payment of such Pledged Student Loan, whether pursuant to
the Student Loan Note related to such Pledged Student Loan or otherwise; (d) all
UCC financing statements covering any collateral securing payment of such
Pledged Student Loan; (e) all other guarantees and other agreements or
arrangements of whatever character from time to time supporting or securing
payment of such Pledged Student Loan; and (f) all rights of Issuer and the
Eligible Lender Trustee with respect to such Pledged Student Loan under the
related Sub-Servicing Agreement and the related Origination Agreement.

      "Released Student Loan" has the meaning assigned to it in Section 1.04.

      "Repayment" means the period of time during which a borrower under a
Student Loan is required to make installment payments to repay the aggregate
principal amount plus accrued interest of all amounts borrowed by virtue of the
Student Loan Note(s) executed by such borrower.

      "Required Lenders" means at any time Committed Lenders then holding at
least 66-2/3% of the outstanding Advances funded by Committed Lenders; provided
that if no outstanding Advances are funded by Committed Lenders then "Required
Lenders" means at such time Committed Lenders then holding at least 66 2/3% of
the Commitments.

      "Reserve Account" means the account established at a Qualified
Institution, in the name of the Indenture Trustee, for the benefit of the
Secured Parties, which account has been designated as the Reserve Account,
including any subaccounts of such account, and any other account designated as
the Reserve Account by the Indenture Trustee or the Agent.

      "Reserve Account Minimum Balance" means at any time, an amount equal to
the sum of (i) an amount equal to 0.10% of the Program Limit plus (ii) all
origination and upfront fees with respect to Private Loans that do not have the
benefit of a Private Loan Guarantee Agreement and that have not been released
from the Reserve Account in accordance with the express terms of this Agreement.

                                       26
<PAGE>

      "Reserve Account Withdrawal Amount" has the meaning assigned to it in
Section 3.04(b).

      "Residual Payments Account" means the account maintained with the
Indenture Trustee and subject to the Residual Payments Account Control
Agreement.

      "Residual Payments Account Control Agreement" means the account control
agreement providing that the Agent (as assignee of the Issuer) may exercise
control over the Residual Payments Account after the occurrence and during the
continuance of an Event of Termination, subject to the Intercreditor Agreement.

      "Revolving Period" means the period commencing on the date hereof and
ending on the Facility Termination Date.

      "Schedule of FFELP Premium Base Amounts" means a listing from time to
time, as approved by the Agent, the Conduit Lenders and the Majority Committed
Lenders, of the premiums with respect to FFELP Loans that Issuer is permitted to
finance under the Agreement, as provided by the Agent to the Issuer from time to
time.

      "Schedule of Pledged Student Loans" a listing of certain Student Loans of
Issuer delivered to and held by the Indenture Trustee (or set forth on the
Master Servicer's or any applicable Sub-Servicer's system) pursuant to Section
5.03 (which Schedule may be in the form of microfiche or computer file or other
medium acceptable to the Indenture Trustee) which includes information
reasonably requested by the Agent, as such listing may be amended, restated,
supplemented or otherwise modified from time to time.

      "Secretary" means the Secretary of the Department or an official or
employee of the Department acting for the Secretary under a delegation of
authority.

      "Secured Parties" means the Lenders, the Agent, the Letter of Credit
Provider, the Indemnified Parties and the Affected Parties, as their respective
interests appear under the Agreement.

      "Securities Intermediary" means U.S. Bank National Association in its
capacity as securities intermediary with respect to the Accounts.

      "Servicer Event of Default" means, with respect to the Master Servicer or
any Sub-Servicer: (i) the Master Servicer or such Sub-Servicer shall fail in any
material respect to perform or observe any term, covenant or agreement that is
an obligation of the Master Servicer or such Sub-Servicer under any
Sub-Servicing Agreement or any Transaction Document (other than as referred to
in clause (ii) below) and such failure continues unremedied for the lesser of
(x) thirty days after (a) written notice thereof shall have been given by the
Agent to Issuer or the Master Servicer or (b) the Master Servicer or such
Sub-Servicer has actual knowledge thereof or (y) the grace period with respect
to such provision as listed in the applicable Transaction Document ; (ii) the
Master Servicer or any such Affiliated Servicer shall fail to make any payment
or deposit required to be made by it under any Transaction Document when due in
any amount and such failure shall remain unremedied for three Business Days;
(iii) any such Third Party Servicer shall fail to make any payment(s) or
deposit(s) to be made by it under any Sub-Servicing

                                       27
<PAGE>

Agreement or any Transaction Document when due in an amount equal to or greater
than (A) $5,000 in connection with any one incident or (B) $25,000 in connection
with all such incidents in any twelve calendar month period, and, in any event,
such failure shall remain unremedied for three Business Days; (iv) any
representation or warranty made or deemed to be made by the Master Servicer or
such Sub-Servicer (or any of its officers) under or in connection with any
Sub-Servicing Agreement or any Transaction Document or any information or report
delivered pursuant to any Sub-Servicing Agreement or any Transaction Document
shall prove to have been false or incorrect in any material respect when made
and such condition shall remain unremedied for 30 days after (a) written notice
thereof shall have been given by the Agent or to the Master Servicer or (b) the
Master Servicer or such Sub-Servicer has actual knowledge thereof; (v) an Event
of Bankruptcy shall have occurred with respect to the Master Servicer or such
Sub-Servicer; (vi) (a) any litigation (including, without limitation, derivative
actions), arbitration proceedings or governmental proceedings not disclosed in
writing by Issuer to the Agent prior to the execution and delivery of the
Indenture is pending against the Master Servicer or such Sub-Servicer or any of
its Affiliates, or (b) any material development not so disclosed has occurred in
any such litigation or proceedings so disclosed, which in the case of clause (a)
or (b), in the opinion of the Agent or the Lenders, has a reasonable likelihood
of having a Servicer Material Adverse Effect with respect to the Master Servicer
or such Sub-Servicer; (vii) there shall exist any event or occurrence that has
had or has a reasonable likelihood of causing a Servicer Material Adverse
Effect; (viii) the net claims reject rate due to Sub-Servicer error with respect
to such Sub-Servicer for any quarterly period shall exceed an annualized rate of
3.0%; (ix) the Master Servicer or such Sub-Servicer shall fail to maintain
policies of insurance or fidelity bonds in accordance with the provisions of
Section 12.11; or (x) the Master Servicer or such Sub-Servicer shall fail to
comply with all material requirements and regulations under the Higher Education
Act.

      "Servicer Material Adverse Effect" means with respect to the Master
Servicer or any Sub-Servicer and any event or circumstance, a material adverse
effect on:

            (i)   the business, assets, financial condition, prospects or
      operations of the Master Servicer or such Sub-Servicer;

            (ii)  the ability of the Master Servicer or such Sub-Servicer to
      perform its obligations under any Transaction Document to which it is a
      party;

            (iii) the collectibility or enforceability of a material amount of
      the Pledged Student Loans, or any Guarantee Agreement or Reimbursement
      Contract with respect to a material amount of the Pledged Student Loans;
      or

            (iv)  the status, existence, perfection, priority or enforceability
      of the Indenture Trustee's security interest in the Collateral.

      "Servicer Repurchase Amount" has the meaning set forth in Section 12.05 of
the Agreement.

                                       28
<PAGE>

      "Settlement Date" means the date which is the second Business Day after
the end of a Settlement Period or, with respect to Advances bearing interest
with reference to the Eurodollar Rate or the Alternate Base Rate, the last day
of the Settlement Period.

      "Settlement Period" means: (i) initially the period commencing on the date
hereof pursuant to Section 1.02 of the Agreement (or in the case of any fees
payable hereunder, commencing on the date hereof) and ending on the last day of
the same calendar month, and (ii) thereafter, each monthly period ending on the
last day of the calendar month; provided, however, that during the Liquidation
Period the Settlement Period shall be such period determined by the Agent in its
sole discretion (which may be a period as short as one Business Day).

      "SLS Loan" means a loan made to an Obligor designated as such that is made
under the Supplemental Loans for Students Program in accordance with the Higher
Education Act.

      "Solvent" means, with respect to any Person at any time, a condition under
which:

            (i)   the fair value and present fair saleable value of such
      Person's total assets is, on the date of determination, greater than such
      Person's total liabilities (including contingent and unliquidated
      liabilities) at such time;

            (ii)  the fair value and present fair saleable value of such
      Person's assets is greater than the amount that will be required to pay
      such Person's probable liability on its existing debts as they become
      absolute and matured ("debts", for this purpose, includes all legal
      liabilities, whether matured or unmatured, liquidated or unliquidated,
      absolute, fixed, or contingent);

            (iii) such Person is and shall continue to be able to pay all of its
      liabilities as such liabilities mature; and

            (iv)  such Person does not have unreasonably small capital with
      which to engage in its current and in its anticipated business.

For purposes of this definition:

            (A)   the amount of a Person's contingent or unliquidated
      liabilities at any time shall be that amount which, in light of all the
      facts and circumstances then existing, represents the amount which can
      reasonably be expected to become an actual or matured liability;

            (B)   the "fair value" of an asset shall be the amount which may be
      realized within a reasonable time either through collection or sale of
      such asset at its regular market value;

            (C)   the "regular market value" of an asset shall be the amount
      which a capable and diligent business person could obtain for such asset
      from an interested buyer who is willing to purchase such asset under
      ordinary selling conditions; and

                                       29
<PAGE>

            (D)   the "present fair saleable value" of an asset means the amount
      which can be obtained if such asset is sold with reasonable promptness in
      an arms length transaction in an existing and not theoretical market.

      "S&P" means Standard & Poor's, a division of The McGraw-Hill Companies,
Inc.

      "Special Allowance Payments" means payments, designated as such,
consisting of effective interest subsidies by the Department in respect of
Student Loans that are FFELP Loans to Issuer in accordance with the Higher
Education Act.

      "Stafford Loan" means a loan made to an Obligor authorized under Sections
427 and 428 of the Higher Education Act.

      "Structure and Tax Aspects" has the meaning set forth in Section 13.13(a).

      "Student Loan" means a FFELP Loan or a Private Loan which was (a) if a
FFELP Loan, originated by an Originator under an approved lender identification
number issued by the Department; (b) if a Private Loan, originated by a national
banking association approved in writing in advance by the Agent, the Conduit
Lenders and the Majority Committed Lenders in their sole discretion; or (c) if
consented to in writing in advance by the Agent, the Conduit Lenders and the
Majority Committed Lenders in their sole discretion, purchased by an Originator
under a purchase and sale agreement and transferred to the Issuer under the
Purchase and Sale Agreement.

      "Student Loan Notes" means the promissory notes or other writings or
records evidencing the Student Loans including, solely with respect to FFELP
Loans, any promissory note evidenced by an electronic promissory note or an
electronic record or with respect to which the signature of the obligor is an
electronic signature.

      "Sub-Servicer" means Great Lakes Educational Loan Services, Inc., LoanStar
Systems, Inc., CFS-SunTech Servicing LLC, and such other sub-servicers as are
approved from time to time by the Agent, the Conduit Lenders and the Majority
Committed Lenders in writing.

      "Sub-Servicing Agreement" means each servicing agreement between the
Master Servicer and the applicable Sub-Servicer with respect to the servicing of
the Student Loans, as the same may be amended, supplemented or otherwise
modified from time to time with the consent of the Agent.

      "Take-Out Securitization" means an asset securitization, financing or
similar transaction pursuant to which all or substantially all of the Pledged
Student Loans are released from the lien of this Agreement pursuant to Section
1.04.

      "TERI" means The Education Resources Institute, a private, non-profit
Massachusetts corporation.

      "Termination Fee" with respect to any Advance means the amount, if any, by
which (i) the additional interest that would have accrued on such Advance during
its current Settlement Period if the outstanding principal amount of such
Advance had not been repaid prior to the

                                       30
<PAGE>

Settlement Date for such Settlement Period exceeds (ii) the income, if any, that
the applicable Lender will receive by investing the proceeds for such principal
repayment in investments that are permissible for such Lender and that will
mature on such Settlement Date.

      "Third Party Originators" means those Third-Party Originators set forth on
Appendix B hereto and such other originators as may be approved by the Agent,
the Conduit Lenders and the Majority Committed Lenders from time to time in
writing.

      "Third Party Servicer" a Sub-Servicer that is not an Affiliate of the
Issuer.

      "Total Outstanding Advances" at any time means the sum of (a) the
aggregate amount disbursed to the Issuer by the Lenders in connection with the
funding of any Advance (or portion thereof) pursuant to the Agreement, less (b)
any payments made by the Issuer and actually received by or on behalf of the
Lenders and applied to reduce the principal balance of any Advance pursuant to
Section 2.03 of the Agreement (which have not been rescinded or otherwise
returned for any reason), provided, however, that if the Total Outstanding
Advances shall have been reduced, pursuant to clause (b) above, by any
distribution, and thereafter all or a portion of such distribution is rescinded
or must otherwise be returned for any reason, such Total Outstanding Advances
shall be increased by the amount of such rescinded or returned distribution as
though it had not been made.

      "Transaction" has the meaning set forth in Section 13.13(a).

      "Transaction Documents" means this Agreement, the Note, the Reimbursement
Agreement, the Program Fee Letter, the Indenture Trustee Fee Letter, the
Eligible Lender Trustee Fee Letter, the Eligible Lender Trust Agreement, each
Sub-Servicing Agreement, each Custody Agreement, the Guarantee Agreements, the
Reimbursement Contract, the Purchase and Sale Agreements, each Origination
Agreement, the Demand Note, the Residual Payments Account Control Agreement, all
Program Support Agreements, the Premium Letter of Credit, each Joint Sharing
Agreement, the Account Control Agreements, the Intercreditor Agreement and the
other documents, certificates, instruments, agreements and notices to be
executed and delivered in connection herewith.

      "UCC" means the Uniform Commercial Code as from time to time in effect in
the applicable jurisdiction or jurisdictions.

      "Unamortized Premium" means the remaining amount of the Financed Premium
Amount at any time pursuant to Premium Amortization.

      "Unanticipated Changes" with respect to the FFELP Program, means any
material change to the FFELP Program, as applicable.

      "Unguaranteed Amount" means, as of any date, (a) with respect to any FFELP
Loan, that portion, if any, of the Principal Balance of such Pledged Student
Loan that is not contractually guaranteed pursuant to the related Guarantee
Agreement as of the effective date of such Guarantee Agreement (or as of the
date of any subsequent amendments thereto), and (b) with respect to any Private
Loan, the Defaulted Amount.

                                       31
<PAGE>

      "Unmatured Event of Termination" means any event which, with the giving of
notice or lapse of time, or both, would become an Event of Termination.

      "Unsubsidized Loans" means Stafford Loans that are not subsidized by the
Department as set forth in Section 428H of the Higher Education Act (20 U.S.C.
Section 1078-8).

      "Weighted Average Financed Premium" with respect to any group of Student
Loans means the weighted average of the Financed Premium Amounts for such
Student Loans.

      B. Other Terms. All accounting terms not specifically defined herein shall
be construed in accordance with generally accepted accounting principles. All
terms used in Article 9 of the UCC in the State of New York, and not
specifically defined herein, are used herein as defined in such Article 9.

      C. Computation of Time Periods. Unless otherwise stated in this Agreement,
in the computation of a period of time from a specified date to a later
specified date, the word "from" means "from and including" and the words "to"
and "until" each means "to but excluding". All references to New York time shall
mean the time in New York, New York.

                                       32
<PAGE>
                                                                  EXECUTION COPY

                                 AMENDMENT NO. 1

                          Dated as of October 30, 2003

            THIS AMENDMENT NO. 1 (the "Amendment") is entered into as of October
30, 2003 by and among Collegiate Funding Services Resources I, LLC, a Delaware
limited liability company ("Issuer"), CRC Funding, LLC and CAFCO, LLC (the
"Conduit Lenders"), the financial institutions from time to time party hereto
(each, a "Committed Lender" and together with the Conduit Lenders, the
"Lenders"), Citicorp North America, Inc. ("CNAI"), as agent for Lenders (in such
capacity, and together with any successor thereto in such capacity, the
"Agent"), U.S. Bank National Association, as indenture trustee hereunder (in
such capacity, and together with any successor thereto in such capacity, the
"Indenture Trustee") and as eligible lender trustee (in such capacity, and
together with any successor thereto in such capacity, the "Eligible Lender
Trustee"), Collegiate Funding Portfolio Administration, L.L.C., as administrator
(in such capacity, the "Administrator") and Collegiate Funding Master Servicing,
L.L.C., as master servicer (in such capacity, the "Master Servicer") Capitalized
terms used herein and not defined herein shall have the meanings given to such
terms in the Indenture.

                             PRELIMINARY STATEMENTS

            A.    The Issuer, the Master Servicer, the Administrator, the
Lenders (other than CAFCO, LLC), the Agent, the Indenture Trustee and the
Eligible Lender Trustee are parties to that certain Indenture dated as of July
23, 2003 (as amended, restated, supplemented or otherwise modified from time to
time, the "Indenture").

            B.    The parties hereto desire that CAFCO, LLC be added to the
Indenture as a Conduit Lender.

            C.    The Issuer has requested that the Lenders and the Agent amend
the Indenture and the Lenders and the Agent have agreed to amend the Indenture
on the terms and conditions set forth herein.

            NOW, THEREFORE, in consideration of the premises set forth above,
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

            SECTION 1. Amendments to the Indenture. Effective as of the
"Amendment Effective Date" (as defined below) and subject to the satisfaction of
the conditions precedent set forth in Section 2 below:

            (a) CAFCO, LLC hereby joins in and becomes a party to the Indenture
and the other Transaction Documents as a Conduit Lender and shall have the
rights and obligations of a Conduit Lender under the Indenture and the other
Transaction Documents. By executing and

<PAGE>

delivering this Amendment, each of CAFCO, LLC and Citibank, N.A. as Committed
Lender with respect to CAFCO, LLC (i) appoints and authorizes the Agent and the
Indenture Trustee, as applicable, to take such action on its behalf and to
exercise such powers and discretion under the Indenture and the other
Transaction Documents as are delegated to the Agent and the Indenture Trustee,
as applicable, by the terms hereof and thereof, together with such powers and
discretion as are reasonably incidental thereto; (ii) agrees that it shall
perform in accordance with their terms all of the obligations that by the terms
of the Indenture are required to be performed by it as a Conduit Lender and
Committed Lender, respectively; and (iii) specifies that its address for notices
is the address set forth on Exhibit 13.02 to the Indenture for Citibank, N.A.
and CRC Funding, LLC.

            (b) Section 1.01(a) of the Indenture is hereby amended and restated
in its entirety to read as follows:

            "(a) Advances. Upon the terms and subject to the conditions of this
Agreement, from time to time prior to the Facility Termination Date, Issuer may
request to the Agent that the Conduit Lenders make loans to Issuer secured by
the Collateral (each, an "Advance"). The Agent shall allocate, in its sole
discretion, each request for an Advance among the Conduit Lenders. Each Conduit
Lender requested to make all or a portion of an Advance may, in its sole
discretion, make such Advance, and if a Conduit Lender elects not to make such
Advance, the Committed Lenders shall fund such Advance, each in an amount equal
to its respective Pro Rata Share of such Advance; provided that no Advance shall
be made by a Lender if, after giving effect thereto, the then Total Outstanding
Advances would exceed the Program Limit. Notwithstanding anything contained in
this Agreement to the contrary, no Committed Lender shall be obligated to
provide the Agent or Issuer with aggregate funds in connection with a Borrowing
in an amount that would exceed such Committed Lender's unused Commitment then in
effect less any amounts advanced by such Committed Lender pursuant to a Program
Support Agreement."

            (c) Section 2.03(b) of the Indenture is hereby amended and restated
as follows:

            "(b) shall, on each date when any reduction in the Program Limit
becomes effective, make a prepayment of the Advances in an amount equal to the
excess, if any, of the aggregate outstanding principal amount of the Advances
over the Program Limit as so reduced;"

            (d) The definition of "Commitment" contained in Appendix A to the
Indenture is hereby amended and restated in its entirety to read as follows:

            "'Commitment' means the obligation of a Committed Lender to make
      Advances pursuant to the Agreement in an amount not to exceed, in
      aggregate, the amount set forth opposite such Committed Lender's name on
      the signature pages to Amendment No. 1, dated as of October 30, 2003, to
      the Agreement, as such amount may be modified from time to time in
      accordance with the terms of the Agreement."

                                     - 2 -
<PAGE>

            (e)   The definition of "Premium Letter of Credit" contained in
Appendix A to the Indenture is hereby amended and restated in its entirety as
follows:

            " 'Premium Letter of Credit' means the letter of credit issued by
      the Letter of Credit Provider pursuant to Section 1.06, as amended,
      restated, supplemented or otherwise modified from time to time."

            (f)   The definition of "Pro Rata Share" contained in Appendix A to
the Indenture is hereby amended and restated in its entirety to read as follows:

            "Pro Rata Share" means, with respect to a Committed Lender, a
      fraction (expressed as a percentage) computed by dividing such Committed
      Lender's Commitment by the aggregate Commitments of all Committed Lenders.

            (g)   The definition of "Program Limit" contained in Appendix A to
the Indenture is hereby amended and restated in its entirety to read as follows:

            " 'Program Limit' means (i) for the period from (and including)
      October 30, 2003 to (but excluding) the earlier of (A) December 15, 2003
      or (B) such date requested by the Issuer and agreed to in writing by the
      Agent, an amount equal to $825,000,000 and (ii) otherwise, $500,000,000."

            SECTION 2. Effective Date. This Amendment shall become effective, as
of the date first above written (the "Amendment Effective Date"), upon receipt
by the Agent of (i) six (6) copies of this Amendment duly executed by each of
the Issuer, the Master Servicer, the Administrator, the Lenders, the Agent, the
Indenture Trustee and the Eligible Lender Trustee, (ii) a replacement Note (the
"Replacement Note"), substantially in the form of Exhibit I hereto, executed by
the Issuer, (iii) a secretary's certificate from each of the Issuer, the
Administrator and the Master Servicer certifying resolutions for the Issuer, the
Administrator and the Master Servicer approving the execution and delivery of
the Amendment and the Replacement Note, (iv) the effective date of a replacement
Premium Letter of Credit and amended and restated Letter of Credit Reimbursement
Agreement and (iv) an amendment fee in an amount equal to $50,000 in immediately
available funds (which shall be fully earned and non-refundable as of the date
paid).

            SECTION 3. Covenants, Representations and Warranties of the Issuer,
the Administrator and the Master Servicer.

            3.1   Upon the effectiveness of this Amendment, the Issuer, the
Administrator and the Master Servicer each hereby reaffirms all covenants,
representations and warranties made by it in the Indenture and agrees that all
such covenants, representations and warranties shall be deemed to have been
re-made as of the Amendment Effective Date.

            3.2   As of the Amendment Effective Date, each of the Issuer, the
Administrator and the Master Servicer represents and warrants to the Lenders and
the Agent that:

                                     - 3 -
<PAGE>

            (a)   the representations and warranties made by it in the Indenture
are true and correct with the same effect as if made on and as of the Amendment
Effective Date (except to the extent such representations and warranties
expressly refer to an earlier date, in which case they were true and correct as
of such earlier date);

            (b)   after giving effect to the amendments and waivers contained
herein, no Unmatured Event of Termination or Event of Termination exists or will
result from the execution of this Amendment;

            (c)   no event or circumstance has occurred since July 23, 2003 that
has resulted, or could reasonably be expected to result in a Material Adverse
Change;

            (d)   each of the Indenture and this Amendment has been duly
authorized by proper proceedings of the Issuer, the Administrator and the Master
Servicer and constitutes the legal, valid and binding obligation of the Issuer,
the Administrator and the Master Servicer enforceable against the Issuer, the
Administrator and the Master Servicer in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors' rights
generally and general principles of equity which may limit the availability of
equitable remedies; and

            (e)   this Amendment does not affect the enforceability of the
Indenture against the Issuer, the Administrator or the Master Servicer, except
as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and general principles of equity which may limit the
availability of equitable remedies.

            SECTION 4. Effect on the Indenture.

            4.1   On and after the Amendment Effective Date, each reference in
the Indenture to "this Indenture", "this Agreement", "hereunder", "hereof",
"herein" or words of like import, and all references to the Indenture in any and
all agreements, instruments, documents, notes, certificates and other writings
of every kind and nature shall be deemed to mean and be a reference to the
Indenture as amended hereby. The Indenture and other documents, instruments and
agreements executed and/or delivered in connection therewith shall remain in
full force and effect and are hereby ratified and confirmed.

            4.2   The execution, delivery and effectiveness of this Amendment
shall not operate as a waiver of any right, power or remedy of the Lenders or
the Agent under the Indenture or any of the other Transaction Documents, nor
constitute a waiver of any provision contained therein, except as specifically
set forth herein.

            4.3   Each party hereto agrees and acknowledges that this Amendment
constitutes a "Transaction Document" under and as defined in the Indenture.

            SECTION 5. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE

                                     - 4 -
<PAGE>

STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES).

            SECTION 6. Execution in Counterparts. This Amendment may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which taken together shall constitute but one and the
same instrument. Delivery of an executed counterpart of this Amendment by
facsimile shall be deemed as effective as delivery of an originally executed
counterpart. Any party delivering an executed counterpart of this Amendment by
facsimile will also deliver an original executed counterpart, but the failure of
any party to so deliver an original executed counterpart of this Amendment will
not affect the validity or effectiveness of this Amendment.

            SECTION 7. Successors and Assigns. This Amendment shall be binding
upon and shall inure to the benefit of each of the Issuer, the Master Servicer,
the Administrator, the Lenders, the Agent, the Indenture Trustee, the Eligible
Lender Trustee and their respective successors and assigns.

            SECTION 8. Headings. Section headings in this Amendment are included
herein for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose.

            SECTION 9. Agent's Expenses. The Issuer agrees to promptly reimburse
the Agent for all of the reasonable out-of-pocket expenses, including, without
limitation, legal fees, it has heretofore or hereafter incurred or incurs in
connection with the preparation, negotiation and execution of this Amendment and
all other instruments, documents and agreements executed and delivered in
connection with this Amendment.

            SECTION 10. Integration. This Amendment contains the entire
understanding of the parties hereto with regard to the subject matter contained
herein. This Amendment supersedes all prior or contemporaneous negotiations,
promises, covenants, agreements and representations of every nature whatsoever
with respect to the matters referred to in this Amendment, all of which have
become merged and finally integrated into this Amendment. Each of the parties
hereto understands that in the event of any subsequent litigation, controversy
or dispute concerning any of the terms, conditions or provisions of this
Amendment, no party shall be entitled to offer or introduce into evidence any
oral promises or oral agreements between the parties relating to the subject
matter of this Amendment not included or referred to herein and not reflected by
a writing included or referred to herein.

            SECTION 11. No Course of Dealing. The Agent and the Lenders have
entered into this Amendment on the express understanding with the Issuer, the
Administrator and the Master Servicer that in entering into this Amendment the
Agent and the Lenders are not establishing any course of dealing with the
Issuer, the Administrator or the Master Servicer. The Agent's and the Lenders'
rights to require strict performance with all of the terms and conditions of the
Indenture and the other Transaction Documents shall not in any way be impaired
by the

                                     - 5 -
<PAGE>

execution of this Amendment. None of the Agent and the Lenders shall be
obligated in any manner to execute any further amendments or waivers and if such
waivers or amendments are requested in the future, assuming the terms and
conditions thereof are satisfactory to them, the Agent and the Lenders may
require the payment of fees in connection therewith.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                     - 6 -
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed on the date first set forth above by their respective
officers thereto duly authorized, to be effective as hereinabove provided.

                                      COLLEGIATE FUNDING SERVICES
                                      RESOURCES I, LLC, as Issuer

                                      By: /s/ Kevin A. Landgraver
                                         ------------------------
                                         Name: Kevin A. Langraver
                                         Title: CFO & Treasurer

<PAGE>

                                      CRC FUNDING, LLC, as Conduit Lender
                                      By: CITICORP NORTH AMERICA, INC., as
                                      its attorney-in-fact

                                      By: /s/ Roger W. Saylor
                                         --------------------
                                         Name: Roger W. Saylor
                                         Title: Director and Vice President

Commitment:

$500,000,000                          CITIBANK, N.A.,
                                      as Committed Lender with respect to CRC
                                      Funding, LLC

                                      By: /s/ Roger W. Saylor
                                         --------------------
                                         Name: Roger W. Saylor
                                         Title: Director and Vice President

                                      CITICORP NORTH AMERICA, INC.,
                                      as Agent

                                      By: /s/ Roger W. Saylor
                                         --------------------
                                         Name: Roger W. Saylor
                                         Title: Director and Vice President

<PAGE>

                                      CAFCO, LLC,
                                      as Conduit Lender

                                      By: CITICORP NORTH AMERICA, INC.,
                                          its attorney-in-fact

                                      By: /s/ Roger W. Saylor
                                         --------------------
                                      Name: Roger W. Saylor
                                      Title: Director and Vice President

Commitments:

(i) During the period from (and       CITIBANK, N.A.,
including) October 30, 2003 to        as Committed Lender with respect to CAFCO,
(but excluding) the earlier of (A)      LLC
December 15, 2003 or (B) such date
requested by the Issuer and agreed    By: /s/ Roger W. Saylor
to in writing by the Agent,              --------------------
$325,000,000 and (ii) otherwise,      Name: Roger W. Saylor
$0                                    Title: Director and Vice President

<PAGE>

                                      U.S. BANK NATIONAL ASSOCIATION,
                                      as Eligible Lender Trustee and
                                      as Indenture Trustee

                                      By: /s/ Daniel R. Bley
                                         -------------------
                                         Name: Daniel R. Bley
                                         Title: Vice President & Trust Officer

<PAGE>

                                      COLLEGIATE FUNDING PORTFOLIO
                                      ADMINISTRATION, L.L.C., as Administrator

                                      By: /s/ Kevin A. Landgraver
                                         ------------------------
                                         Name: Kevin A. Landgraver
                                         Title: Treasurer

                                      COLLEGIATE FUNDING MASTER
                                      SERVICING, L.L.C., as Master Servicer

                                      By: /s/ Kevin A. Landgraver
                                         ------------------------
                                         Name: Kevin A. Landgraver
                                         Title: Treasurer

Acknowledged and Agreed to
as of the date first written above:

CITIBANK, N.A.,
as Letter of Credit Provider

By: /s/ Roger W. Saylor
   --------------------
Name: Roger W. Saylor
Title: Director and Vice President
<PAGE>

                                                                  EXECUTION COPY

                                 AMENDMENT NO. 2

                          Dated as of February 17, 2004

            THIS AMENDMENT NO. 2 (the "Amendment") is entered into as of
February 17, 2004 by and among Collegiate Funding Services Resources I, LLC, a
Delaware limited liability company ("Issuer"), CRC Funding, LLC and CAFCO, LLC
(the "Conduit Lenders"), the financial institutions from time to time party
hereto (each, a "Committed Lender" and together with the Conduit Lenders, the
"Lenders"), Citicorp North America, Inc. ("CNAI"), as agent for Lenders (in such
capacity, and together with any successor thereto in such capacity, the
"Agent"), U.S. Bank National Association, as indenture trustee hereunder (in
such capacity, and together with any successor thereto in such capacity, the
"Indenture Trustee") and as eligible lender trustee (in such capacity, and
together with any successor thereto in such capacity, the "Eligible Lender
Trustee"), Collegiate Funding Portfolio Administration, L.L.C., as administrator
(in such capacity, the "Administrator") and Collegiate Funding Master Servicing,
L.L.C., as master servicer (in such capacity, the "Master Servicer") Capitalized
terms used herein and not defined herein shall have the meanings given to such
terms in the Indenture.

                             PRELIMINARY STATEMENTS

            A.    The Issuer, the Master Servicer, the Administrator, the
Lenders, the Agent, the Indenture Trustee and the Eligible Lender Trustee are
parties to that certain Indenture dated as of July 23, 2003 (as amended,
restated, supplemented or otherwise modified from time to time, the
"Indenture").

            B.    The Issuer has requested that the Lenders and the Agent amend
the Indenture and the Lenders and the Agent have agreed to amend the Indenture
on the terms and conditions set forth herein.

            NOW, THEREFORE, in consideration of the premises set forth above,
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

            SECTION 1. Amendments to the Indenture. Effective as of the
"Amendment Effective Date" (as defined below) and subject to the satisfaction of
the conditions precedent set forth in Section 2 below:

            (a)   The definition of "Commitment" contained in Appendix A to the
Indenture is hereby amended and restated in its entirety to read as follows:

            " 'Commitment' means the obligation of a Committed Lender to make
      Advances pursuant to the Agreement in an amount not to exceed, in
      aggregate, the amount set forth opposite such Committed Lender's name on
      the signature pages to Amendment No. 2,

<PAGE>

      dated as of February 17, 2004, to the Agreement, as such amount may be
      modified from time to time in accordance with the terms of the Agreement."

            (b)   The definition of "Program Limit" contained in Appendix A to
      the Indenture is hereby amended and restated in its entirety to read as
      follows:

            " 'Program Limit' means (i) for the period from (and including)
      February 17, 2004 to (but excluding) the earlier of (A) May 21, 2004 or
      (B) such date requested by the Issuer and agreed to in writing by the
      Agent, an amount equal to $1,000,000,000 and (ii) otherwise,
      $500,000,000."

            SECTION 2. Effective Date. This Amendment shall become effective, as
of the date first above written (the "Amendment Effective Date"), upon receipt
by the Agent of (i) this Amendment duly executed by each of the Issuer, the
Master Servicer, the Administrator, the Lenders, the Agent, the Indenture
Trustee and the Eligible Lender Trustee, (ii) a replacement Note (the
"Replacement Note"), substantially in the form of Exhibit I hereto, executed by
the Issuer, (iii) a secretary's certificate from each of the Issuer, the
Administrator and the Master Servicer certifying resolutions for the Issuer, the
Administrator and the Master Servicer approving the execution and delivery of
this Amendment and the Replacement Note, (iv) the effective date of a
replacement Premium Letter of Credit and amended and restated Letter of Credit
Reimbursement Agreement and (v) an amendment fee in an amount equal to $50,000
in immediately available funds (which shall be fully earned and non-refundable
as of the date paid).

            SECTION 3. Covenants, Representations and Warranties of the Issuer,
the Administrator and the Master Servicer.

            3.1   Upon the effectiveness of this Amendment, the Issuer, the
Administrator and the Master Servicer each hereby reaffirms all covenants,
representations and warranties made by it in the Indenture and agrees that all
such covenants, representations and warranties shall be deemed to have been
re-made as of the Amendment Effective Date.

            3.2   As of the Amendment Effective Date, each of the Issuer, the
Administrator and the Master Servicer represents and warrants to the Lenders and
the Agent that:

            (a)   the representations and warranties made by it in the Indenture
are true and correct with the same effect as if made on and as of the Amendment
Effective Date (except to the extent such representations and warranties
expressly refer to an earlier date, in which case they were true and correct as
of such earlier date);

            (b)   after giving effect to the amendments and waivers contained
herein, no Unmatured Event of Termination or Event of Termination exists or will
result from the execution of this Amendment;

            (c)   no event or circumstance has occurred since July 23, 2003 that
has resulted, or could reasonably be expected to result in a Material Adverse
Change;

                                     - 2 -
<PAGE>

            (d)   each of the Indenture and this Amendment has been duly
authorized by proper proceedings of the Issuer, the Administrator and the Master
Servicer and constitutes the legal, valid and binding obligation of the Issuer,
the Administrator and the Master Servicer enforceable against the Issuer, the
Administrator and the Master Servicer in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors' rights
generally and general principles of equity which may limit the availability of
equitable remedies; and

            (e)   this Amendment does not affect the enforceability of the
Indenture against the Issuer, the Administrator or the Master Servicer, except
as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and general principles of equity which may limit the
availability of equitable remedies.

            SECTION 4. Effect on the Indenture.

            4.1   On and after the Amendment Effective Date, each reference in
the Indenture to "this Indenture", "this Agreement", "hereunder", "hereof",
"herein" or words of like import, and all references to the Indenture in any and
all agreements, instruments, documents, notes, certificates and other writings
of every kind and nature shall be deemed to mean and be a reference to the
Indenture as amended hereby. The Indenture and other documents, instruments and
agreements executed and/or delivered in connection therewith shall remain in
full force and effect and are hereby ratified and confirmed.

            4.2   The execution, delivery and effectiveness of this Amendment
shall not operate as a waiver of any right, power or remedy of the Lenders or
the Agent under the Indenture or any of the other Transaction Documents, nor
constitute a waiver of any provision contained therein, except as specifically
set forth herein.

            4.3   Each party hereto agrees and acknowledges that this Amendment
constitutes a "Transaction Document" under and as defined in the Indenture.

            SECTION 5. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING
SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW BUT OTHERWISE WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES).

            SECTION 6. Execution in Counterparts. This Amendment may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which taken together shall constitute but one and the
same instrument. Delivery of an executed counterpart of this Amendment by
facsimile shall be deemed as effective as delivery of an originally executed
counterpart. Any party delivering an executed counterpart of this Amendment by
facsimile will also deliver an original executed counterpart, but the failure of
any party to so deliver an original

                                     - 3 -
<PAGE>

executed counterpart of this Amendment will not affect the validity or
effectiveness of this Amendment.

            SECTION 7. Successors and Assigns. This Amendment shall be binding
upon and shall inure to the benefit of each of the Issuer, the Master Servicer,
the Administrator, the Lenders, the Agent, the Indenture Trustee, the Eligible
Lender Trustee and their respective successors and assigns.

            SECTION 8. Headings. Section headings in this Amendment are included
herein for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose.

            SECTION 9. Agent's Expenses. The Issuer agrees to promptly reimburse
the Agent for all of the reasonable out-of-pocket expenses, including, without
limitation, legal fees, it has heretofore or hereafter incurred or incurs in
connection with the preparation, negotiation and execution of this Amendment and
all other instruments, documents and agreements executed and delivered in
connection with this Amendment.

            SECTION 10. Integration. This Amendment contains the entire
understanding of the parties hereto with regard to the subject matter contained
herein. This Amendment supersedes all prior or contemporaneous negotiations,
promises, covenants, agreements and representations of every nature whatsoever
with respect to the matters referred to in this Amendment, all of which have
become merged and finally integrated into this Amendment. Each of the parties
hereto understands that in the event of any subsequent litigation, controversy
or dispute concerning any of the terms, conditions or provisions of this
Amendment, no party shall be entitled to offer or introduce into evidence any
oral promises or oral agreements between the parties relating to the subject
matter of this Amendment not included or referred to herein and not reflected by
a writing included or referred to herein.

            SECTION 11. No Course of Dealing. The Agent and the Lenders have
entered into this Amendment on the express understanding with the Issuer, the
Administrator and the Master Servicer that in entering into this Amendment the
Agent and the Lenders are not establishing any course of dealing with the
Issuer, the Administrator or the Master Servicer. The Agent's and the Lenders'
rights to require strict performance with all of the terms and conditions of the
Indenture and the other Transaction Documents shall not in any way be impaired
by the execution of this Amendment. None of the Agent and the Lenders shall be
obligated in any manner to execute any further amendments or waivers and if such
waivers or amendments are requested in the future, assuming the terms and
conditions thereof are satisfactory to them, the Agent and the Lenders may
require the payment of fees in connection therewith.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                     - 4 -
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed on the date first set forth above by their respective
officers thereto duly authorized, to be effective as hereinabove provided.

                                                COLLEGIATE FUNDING SERVICES
                                                RESOURCES I, LLC, as Issuer

                                                By: /s/ Kevin Landgraver
                                                   ----------------------
                                                   Name: Kevin Landgraver
                                                   Title: CFO & Treasurer

                                Signature Page to
                                 Amendment No. 2

<PAGE>

                                          CRC FUNDING, LLC, as Conduit Lender
                                          By: CITICORP NORTH AMERICA, INC., as
                                          its attorney-in-fact

                                          By: /s/ Roger W. Saylor
                                             --------------------
                                             Name: Roger W. Saylor
                                             Title: Director and Vice President

Commitment:

$500,000,000                             CITIBANK, N.A.,
                                         as Committed Lender with respect to CRC
                                         Funding, LLC

                                         By: /s/ Roger W. Saylor
                                            --------------------
                                            Name: Roger W. Saylor
                                            Title: Director and Vice President

                                         CITICORP NORTH AMERICA, INC.,
                                         as Agent

                                         By: /s/ Roger W. Saylor
                                            --------------------
                                            Name: Roger W. Saylor
                                            Title: Director and Vice President

                                Signature Page to
                                 Amendment No. 2

<PAGE>

                                           CAFCO, LLC, as Conduit Lender

                                           By: CITICORP NORTH AMERICA, INC.,
                                               its attorney-in-fact

                                           By: /s/ Roger W. Saylor
                                              --------------------
                                              Name: Roger W. Saylor
                                              Title: Director and Vice President

Commitment:

(i) During the period from (and            CITIBANK, N.A.,
including) February 17, 2004 to            as Committed Lender with respect to
earlier of (A) May 21, 2004 or             CAFCO, LLC
(B) such date requested by the Issuer
and agreed to in writing by the Agent,
$500,000,000 and (ii) otherwise $0         By: /s/ Roger W. Saylor
                                              --------------------
                                              Name: Roger W. Saylor
                                              Title: Director and Vice President

                                Signature Page to
                                 Amendment No. 2

<PAGE>

                                       U.S. BANK NATIONAL ASSOCIATION,
                                       as Eligible Lender Trustee and
                                       as Indenture Trustee

                                       By: /s/ Daniel R. Bley
                                          -------------------
                                          Name: Daniel R. Bley
                                          Title: Vice President & Trust Officer

                                Signature Page to
                                 Amendment No. 2

<PAGE>

                                       COLLEGIATE FUNDING PORTFOLIO
                                       ADMINISTRATION, L.L.C., as Administrator

                                       By: /s/ Kevin Landgraver
                                          ---------------------
                                          Name: Kevin Landgraver
                                          Title: Treasurer

                                       COLLEGIATE FUNDING MASTER
                                       SERVICING, L.L.C., as Master Servicer

                                       By: /s/ Kevin Landgraver
                                          ---------------------
                                          Name: Kevin Landgraver
                                          Title: Treasurer

Acknowledged and Agreed to
as of the date first written above:

CITIBANK, N.A.,
as Letter of Credit Provider

By: /s/ Roger W. Saylor
   --------------------
Name: Roger W. Saylor
Title: Director and Vice President

                                Signature Page to
                                 Amendment No. 2

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