Document:

EXHIBIT 4.2

                                                                EXECUTION COPY

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                                 TRUST AGREEMENT

                                      among

                   USA GROUP SECONDARY MARKET SERVICES, INC.,
                                  as depositor,

                         SECONDARY MARKET COMPANY, INC.

                                       and

                         BANK ONE, NATIONAL ASSOCIATION,
                    not in its individual capacity but solely
                           as Eligible Lender Trustee

                           Dated as of January 1, 2000

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<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

                                    ARTICLE I

                              Definitions and Usage

                                   ARTICLE II

                                  Organization

SECTION 2.01.  Name ...........................................................1
SECTION 2.02.  Office..........................................................1
SECTION 2.03.  Purposes and Powers.............................................1
SECTION 2.04.  Appointment of Eligible Lender Trustee..........................2
SECTION 2.05.  Initial Capital Contribution of Trust Estate....................2
SECTION 2.06.  Declaration of Trust............................................3
SECTION 2.07.  [Reserved.].....................................................3
SECTION 2.08.  Title to Trust Property.........................................3
SECTION 2.09.  Representations and Warranties of the Seller and the Company ...3
SECTION 2.10.  Tax Treatment...................................................4
SECTION 2.11.  Liability of Noteholders .......................................4

                                     ARTICLE III

                                      Ownership

SECTION 3.01.  Beneficial Ownership............................................5

                                     ARTICLE IV

                         Actions by Eligible Lender Trustee

SECTION 4.01.  Prior Notice to Company with Respect to Certain Matters.........5
SECTION 4.02.  Action by Company with Respect to Bankruptcy....................7
SECTION 4.03.  Restrictions on Company's Power.................................7

                                      ARTICLE V

                                   Certain Duties

SECTION 5.01.  No Segregation of Monies; No Interest...........................8
SECTION 5.02.  Accounting and Reports to the Noteholders,
                 the Internal Revenue Service and Others ......................8

<PAGE>

SECTION 5.03.  Incentive Programs .............................................8

                                   ARTICLE VI

                 Authority and Duties of Eligible Lender Trustee

SECTION 6.01.  General Authority...............................................9
SECTION 6.02.  General Duties..................................................9
SECTION 6.03.  Action upon Instruction.........................................9
SECTION 6.04.  No Duties Except as Specified in this Agreement,
                 the Loan Sale Agreement, the Servicing Agreement,
                 the Administration Agreement or in Instructions..............11
SECTION 6.05.  No Action Except under Specified Documents or Instructions.....11
SECTION 6.06.  Restrictions...................................................11
SECTION 6.07.  Origination of Consolidation Loans during the Revolving Period.11

                                   ARTICLE VII

                     Concerning the Eligible Lender Trustee

SECTION 7.01.  Acceptance of Trusts and Duties................................13
SECTION 7.02.  Furnishing of Documents........................................14
SECTION 7.03.  Representations and Warranties.................................15
SECTION 7.04.  Reliance; Advice of Counsel....................................15
SECTION 7.05.  Not Acting in Individual Capacity; Responsibility
                  to Secretary and Guarantors.................................16
SECTION 7.06.  Eligible Lender Trustee Not Liable for Notes or Student Loans..16
SECTION 7.07.  Eligible Lender Trustee May Own Trust Notes....................17
SECTION 7.08.  Licenses.......................................................17

                                  ARTICLE VIII

                     Compensation of Eligible Lender Trustee

SECTION 8.01.  Eligible Lender Trustee's Fees and Expenses....................17
SECTION 8.02.  Payments to the Eligible Lender Trustee........................17

                                   ARTICLE IX

                         Termination of Trust Agreement

SECTION 9.01.  Termination of Trust Agreement.................................18
SECTION 9.02.  [Reserved.]....................................................18

<PAGE>

                                    ARTICLE X

                     Successor Eligible Lender Trustees and
                       Additional Eligible Lender Trustees

SECTION 10.01. Eligibility Requirements for Eligible Lender Trustee...........18
SECTION 10.02. Resignation or Removal of Eligible Lender Trustee..............19
SECTION 10.03. Successor Eligible Lender Trustee..............................20
SECTION 10.04. Merger or Consolidation of Eligible Lender Trustee.............20
SECTION 10.05. Appointment of Co-Eligible Lender Trustee or Separate
                 Eligible Lender Trustee......................................21

                                   ARTICLE XI

                                  Miscellaneous

SECTION 11.01. Supplements and Amendments.....................................22
SECTION 11.02. No Legal Title to Trust Estate in Company......................23
SECTION 11.03. Limitations on Rights of Others................................23
SECTION 11.04. Notices........................................................24
SECTION 11.05. Severability...................................................24
SECTION 11.06. Separate Counterparts..........................................24
SECTION 11.07. Successors and Assigns.........................................24
SECTION 11.08. No Petition....................................................24
SECTION 11.09. No Recourse....................................................25
SECTION 11.10. Headings.......................................................25
SECTION 11.11. Governing Law..................................................25
SECTION 11.12. [Reserved].....................................................25
SECTION 11.13. Third-Party Beneficiaries......................................25
SECTION 11.14. Consents.......................................................26

EXHIBIT A Certificate of Trust of SMS Student Loan Trust 2000-A

<PAGE>

            TRUST AGREEMENT dated as of January 1, 2000, among USA GROUP
SECONDARY MARKET SERVICES, INC., a Delaware corporation, as depositor (the
"Seller"), SECONDARY MARKET COMPANY, INC., a Delaware corporation (the
"Company"), and BANK ONE, NATIONAL ASSOCIATION, a national banking association,
not in its individual capacity but solely as eligible lender trustee (the
"Eligible Lender Trustee").

            The Seller, the Company and the Eligible Lender Trustee hereby agree
as follows:

                                    ARTICLE I

                              Definitions and Usage

            Capitalized terms used but not defined herein are defined in
Appendix A to the Administration Agreement, dated as of January 1, 2000, among
the SMS Student Loan Trust 2000-A, as Issuer, the Seller, as Administrator, and
Bankers Trust Company, as Indenture Trustee, which also contains rules as to
construction and usage that shall be applicable herein.

                                   ARTICLE II

                                  Organization

            SECTION 2.01. Name. The Trust created hereby shall be known as "SMS
Student Loan Trust 2000-A", in which name the Eligible Lender Trustee may
conduct the business of the Trust, make and execute contracts and other
instruments on behalf of the Trust and sue and be sued.

            SECTION 2.02. Office. The office of the Trust shall be in care of
the Eligible Lender Trustee at its Corporate Trust Office or at such other
address as the Eligible Lender Trustee may designate by written notice to the
Seller.

            SECTION 2.03. Purposes and Powers. The purpose of the Trust is to
engage in the following activities:

            (i) to issue the Notes pursuant to the Indenture and to sell the
      Notes in one or more transactions;

            (ii) with the proceeds of the sale of the Notes, to purchase the
      Initial Financed Student Loans, to deposit the Reserve Account Initial
      Deposit in the Reserve Account, to deposit the Prefunding Account Closing
      Date Deposit in the Prefunding Account, and to pay the organizational,
      start-up and transactional expenses of the Trust and to pay the balance to
      the Seller pursuant to the Loan Sale Agreement;

<PAGE>

            (iii) to enter into any Swap Agreements;

            (iv) to originate Consolidation Loans during the Revolving Period
      pursuant to Section 6.07 hereof, to increase the principal balance of
      Consolidation Loans by adding the principal balances of any related Add-on
      Consolidation Loans to the principal balances of such Consolidation Loans,
      to acquire and hold the Prefunded Loans to be conveyed to the Trust
      pursuant to the Loan Sale Agreement, to acquire and hold any New Loans to
      be conveyed to the Trust during the Revolving Period pursuant to the Loan
      Sale Agreement and to acquire and hold any Serial Loans or other Student
      Loans to be conveyed to the Trust subsequent to the Closing Date pursuant
      to the Loan Sale Agreement;

            (v) to assign, grant, transfer, pledge, mortgage and convey the
      Trust Estate pursuant to the Indenture;

            (vi) to enter into and perform its obligations under the Basic
      Documents to which it is to be a party;

            (vii) to engage in those activities, including entering into
      agreements, that are necessary, suitable or convenient to accomplish the
      foregoing or are incidental thereto or connected therewith; and

            (viii) subject to compliance with the Basic Documents, to engage in
      such other activities as may be required in connection with conservation
      of the Trust Estate and the making of distributions to the Noteholders and
      the others specified in Section 2(d) of the Administration Agreement.

The Trust shall not engage in any activity other than in connection with the
foregoing or other than as required or authorized by the terms of this Agreement
or the other Basic Documents.

            SECTION 2.04. Appointment of Eligible Lender Trustee. The Seller
hereby appoints the Eligible Lender Trustee as trustee of the Trust effective as
of the date hereof, to have all of the rights, powers and duties set forth
herein.

            SECTION 2.05. Initial Capital Contribution of Trust Estate. The
Seller hereby sells, assigns, transfers, conveys and sets over to the Eligible
Lender Trustee, as of the date hereof, the sum of $1.00. The Eligible Lender
Trustee hereby acknowledges receipt in trust from the Seller, as of the date
hereof, of the foregoing contribution, which shall constitute the initial Trust
Estate and shall be deposited in the Collection Account. The Seller shall pay
the organizational expenses of the Trust as they may arise or shall, upon the
request of the Eligible Lender Trustee, promptly reimburse the Eligible Lender
Trustee for any such expenses paid by the Eligible Lender Trustee.

            SECTION 2.06. Declaration of Trust. The Eligible Lender Trustee
hereby declares that it will hold the Trust Estate in trust upon and subject to
the conditions set forth

                                      -2-
<PAGE>

herein for the use and benefit of the Company, subject to the obligations of the
Trust under the other Basic Documents. It is the intention of the parties hereto
that the Trust constitute a trust under the Business Trust Statute and that this
Agreement constitute the governing instrument of such trust. Effective as of the
date hereof, the Eligible Lender Trustee shall have all rights, powers and
duties set forth herein and in the Business Trust Statute with respect to
accomplishing the purposes of the Trust. The Eligible Lender Trustee and the
Delaware Trustee shall file the Certificate of Trust with the Secretary of State
of the State of Delaware pursuant to ss. 3801 of the Business Trust Statute on
or before the Closing Date.

            SECTION 2.07. [Reserved.]

            SECTION 2.08. Title to Trust Property. Subject to the Indenture,
legal title to the Trust Estate shall be vested at all times in the Trust as a
separate legal entity except where applicable law in any jurisdiction requires
title to any part of the Trust Estate to be vested in a trustee or trustees, in
which case title shall be deemed to be vested in the Eligible Lender Trustee, a
co-trustee and/or a separate trustee, as the case may be; provided, however,
that legal title to the Financed Student Loans shall be vested at all times in
the Eligible Lender Trustee on behalf of the Trust.

            SECTION 2.09. Representations and Warranties of the Seller and the
Company. (a) Each of the Company and the Seller hereby represents and warrants,
as to itself, to the Eligible Lender Trustee and any Swap Counterparties that:

            (i) It is duly organized and validly existing as a corporation in
      good standing under the laws of the jurisdiction of its incorporation,
      with corporate power and authority to own its properties and to conduct
      its business as such properties are currently owned and such business is
      currently conducted (subject, with respect to the Seller and its Student
      Loans, to the vesting of legal title thereto in Bank One, National
      Association ("Bank One") or another eligible lender, as trustee for the
      Seller).

            (ii) It is duly qualified to do business as a foreign corporation in
      good standing, 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 except where
      failure to do so (both singly and in the aggregate) will not have a
      material adverse effect on the conduct of its business, operations or
      financial condition.

            (iii) It has the corporate power and authority to execute and
      deliver this Agreement and to carry out its terms; and the execution,
      delivery and performance of this Agreement have been duly authorized by it
      by all necessary corporate action; the Seller has full power and authority
      to transfer and assign the property to be transferred and assigned to, and
      to be deposited with, the Trustee; and the Seller has duly authorized such
      transfer and assignment to the Trust by all necessary corporate action.

                                      -3-
<PAGE>

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

            (v) The consummation of the transactions contemplated by this
      Agreement and the fulfillment of the terms hereof do not conflict with,
      result in any breach of any of the terms and provisions of, or constitute
      (with or without notice or lapse of time or both) a default under, its
      certificate of incorporation or by-laws, or any indenture, agreement or
      other instrument to which it is a party or by which it is 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 pursuant to the Basic Documents); nor violate any
      law or, to the best of its knowledge, any order, rule or regulation
      applicable to it of any court or of any Federal or state regulatory body,
      administrative agency or other governmental instrumentality having
      jurisdiction over it or its properties.

            (vi) There are no proceedings or investigations pending or, to its
      best knowledge, threatened before any court, regulatory body,
      administrative agency or other governmental instrumentality having
      jurisdiction over the Seller or its properties: (A) asserting the
      invalidity of this Agreement, (B) seeking to prevent the consummation of
      any of the transactions contemplated by this Agreement or (C) seeking any
      determination or ruling that might materially and adversely affect the
      performance by it of its obligations under, or the validity or
      enforceability of, this Agreement.

            SECTION 2.10. Tax Treatment. The Seller and the Company have entered
into this Agreement, and the Notes will be issued to and acquired by the
Noteholders, with the intention that, for federal, state, foreign and local
income and franchise tax and usury law purposes, the Notes will be indebtedness
of the Company secured by the Trust Estate. Each of the Seller and the Company,
by entering into this Agreement, and each Noteholder, by the acceptance of its
Note, agrees to treat the Notes for purposes of federal, state and local income
and franchise taxes and for any other tax imposed on or measured by income and
usury law purposes as indebtedness of the Company secured by the Trust Estate.
In accordance with the foregoing, the Eligible Lender Trustee hereby agrees to
treat the Trust as a security device only, and shall not file tax returns or
obtain an employer identification number on behalf of the Trust (except as may
be required as a result of changes in law or as may otherwise be required in the
Opinion of Counsel for the Company).

            SECTION 2.11. Liability of Noteholders. No Noteholder shall have any
personal liability or obligation to or for the Trust and the Certificate of
Trust shall be fully paid and nonassessable.

                                      -4-
<PAGE>

                                   ARTICLE III

                                    Ownership

            SECTION 3.01. Beneficial Ownership. Upon the formation of the Trust
by the contribution by the Seller pursuant to Section 2.05, the Seller shall be
the sole beneficial owner of the Trust. Concurrently with the transfer of the
Initial Financed Student Loans to the Eligible Lender Trustee on behalf of the
Trust pursuant to the Loan Sale Agreement, the Seller does hereby irrevocably
assign to the Company all of its right, title and interest in and to the Trust,
and thereupon (subject to the Company's right to transfer pursuant to the next
succeeding sentence) the Company shall be the sole beneficial owner of the
Trust. For so long as any Notes remain Outstanding, the Company shall not
Transfer its ownership interest in the Trust, in whole or in part, unless (i)
either (A) the Company shall have delivered to the Eligible Lender Trustee, the
Indenture Trustee and any Swap Counterparties an Opinion of Counsel (with a copy
to the Rating Agencies) that neither the Trust nor the Company would be
consolidated with the purchaser of such ownership interest in the event of an
Insolvency Event with respect to such purchaser or (B) the Rating Agency
Condition is satisfied with respect to such Transfer, (ii) the Company shall
have delivered to the Eligible Lender Trustee, the Indenture Trustee and any
Swap Counterparties an Opinion of Counsel that such transaction will not result
in a material adverse federal or Indiana or Delaware state tax consequence to
the Issuer or the Noteholders, and (iii) there is delivered to the Eligible
Lender Trustee and the Indenture Trustee an Opinion of Counsel, in form and
substance satisfactory to them, that such Transfer may be made pursuant to an
exemption, describing the applicable exemption and the basis therefor, from the
Securities Act and under applicable state securities laws.

                                   ARTICLE IV

                       Actions by Eligible Lender Trustee

            SECTION 4.01. Prior Notice to Company with Respect to Certain
Matters. With respect to the following matters, neither the Eligible Lender
Trustee nor the Delaware Trustee shall take any action unless at least 30 days
before the taking of such action, the Eligible Lender Trustee or the Delaware
Trustee shall have notified the Company, the Rating Agencies and any Swap
Counterparties in writing of the proposed action and neither the Company nor the
Swap Counterparty shall have notified the Eligible Lender Trustee in writing
prior to the 30th day after such notice is given that the Company or any Swap
Counterparties has withheld consent or the Company has provided alternative
direction:

            (a) the initiation of any material claim or lawsuit by the Trust
      (except claims or lawsuits brought in connection with the collection of
      the Financed Student Loans) and the compromise of any material action,
      claim or lawsuit brought by or against the Trust (except with respect to
      the aforementioned claims or lawsuits for collection of Financed Student
      Loans);

                                      -5-
<PAGE>

            (b) the election by the Trust to file an amendment to the
      Certificate of Trust;

            (c) the amendment of the Indenture by a supplemental indenture in
      circumstances where the consent of any Noteholder or any Swap
      Counterparties is required;

            (d) the amendment of the Indenture by a supplemental indenture in
      circumstances where the consent of any Noteholder or any Swap
      Counterparties is not required and such amendment materially adversely
      affects the interests of the Company;

            (e) the amendment, change or modification of the Administration
      Agreement, except to cure any ambiguity or to amend or supplement any
      provision in a manner or add any provision that would not materially
      adversely affect the interests of the Company; or

            (f) the appointment pursuant to the Indenture of a successor Note
      Registrar or Indenture Trustee, or the consent to the assignment by the
      Note Registrar or Indenture Trustee of its obligations under the
      Indenture.

            (g) the consent to the calling or waiver of any default under any
      Basic Document;

            (h) the consent to the assignment by the Indenture Trustee or the
      Servicer of their respective obligations under any Basic Document;

            (i) except as provided in Article IX hereof, dissolve, terminate or
      liquidate the Trust in whole or in part;

            (j) merge or consolidate the Trust with or into any other entity, or
      convey or transfer all or substantially all of the Trust's assets to any
      other entity;

            (k) cause the Trust to incur, assume or guaranty any indebtedness
      other than as set forth in this Agreement or the other Basic Documents;

            (l) do any act that conflicts with any other Basic Document;

            (m) do any act which would make it impossible to carry on the
      ordinary business of the Trust as described in Section 2.03 hereof;

            (n) confess a judgment against the Trust;

            (o) possess Trust assets, or assign the Trust's right to property,
      for other than a Trust purpose;

            (p) cause the Trust to lend any funds to any entity; or

                                      -6-
<PAGE>

            (q) change the Trust's purpose and powers from those set forth in
      this Agreement.

      In addition the Trust shall not commingle its assets with those of any
other entity. The Trust shall maintain its financial and accounting books and
records separate from those of any other entity. Except as expressly set forth
herein, the Trust shall pay its indebtedness, operating expenses and liabilities
from its own funds, and the Trust shall not pay the indebtedness, operating
expenses and liabilities of any other entity. The Trust shall maintain
appropriate minutes or other records of all appropriate actions and shall
maintain its office separate from the offices of the Seller, the Company and
Loan Services.

      Neither the Eligible Lender Trustee nor the Delaware Trustee shall have
the power, except upon the direction of the Company with the consent of any Swap
Counterparties, and to the extent otherwise consistent with the Basic Documents,
to (i) remove or replace the Servicer or the Indenture Trustee, (ii) institute
proceedings to have the Trust declared or adjudicated a bankrupt or insolvent,
(iii) consent to the institution of bankruptcy or insolvency proceedings against
the Trust, (iv) file a petition or consent to a petition seeking reorganization
or relief on behalf of the Trust under any applicable federal or state law
relating to bankruptcy, (v) consent to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator (or any similar official) of the
Trust or a substantial portion of the property of the Trust, (vi) make any
assignment for the benefit of the Trust's creditors, (vii) cause the Trust to
admit in writing its inability to pay its debts generally as they become due,
(viii) take any action, or cause the Trust to take any action, in furtherance of
any of the foregoing (any of the above, a "Bankruptcy Action"). So long as the
Indenture and the Insurance Agreement remain in effect, the Company shall not
have the power to take, and shall not take, any Bankruptcy Action with respect
to the Trust or direct the Eligible Lender Trustee to take any Bankruptcy Action
with respect to the Trust.

            SECTION 4.02. Action by Company with Respect to Bankruptcy. The
Eligible Lender Trustee shall not have the power to commence a voluntary
proceeding in bankruptcy relating to the Trust without the prior approval of the
Company and the delivery to the Eligible Lender Trustee by the Company of a
certificate certifying that it reasonably believes that the Trust is insolvent.

            SECTION 4.03. Restrictions on Company's Power. The Company shall not
direct the Eligible Lender Trustee to take or refrain from taking any action if
such action or inaction would be contrary to any obligations of the Trust or the
Eligible Lender Trustee under the Higher Education Act, this Agreement or any of
the other Basic Documents or would be contrary to Section 2.03 nor shall the
Eligible Lender Trustee be permitted to follow any such direction, if given.

                                      -7-
<PAGE>

                                    ARTICLE V

                                 Certain Duties

            SECTION 5.01. No Segregation of Monies; No Interest. Monies received
by the Eligible Lender Trustee hereunder need not be segregated in any manner
except to the extent required by law or the Basic Documents and may be deposited
under such general conditions as may be prescribed by law, and the Eligible
Lender Trustee shall not be liable for any interest thereon.

            SECTION 5.02. Accounting and Reports to the Noteholders, the
Internal Revenue Service and Others. No federal income tax return shall be filed
on behalf of the Trust unless either (i) the Eligible Lender Trustee shall
receive an Opinion of Counsel that, based on a change in applicable law
occurring after the date hereof, or as a result of a transfer by the Company
permitted by Section 3.01, the Code requires such a filing or (ii) the Internal
Revenue Service shall determine that the Trust is required to file such a
return. In the event that the Trust is required to file tax returns, the
Eligible Lender Trustee shall prepare or shall cause to be prepared any tax
returns required to be filed by the Trust and shall remit such returns to the
Company at least five (5) days before such returns are due to be filed. The
Company shall promptly sign such returns and deliver such returns after
signature to the Eligible Lender Trustee and such returns shall be filed by the
Eligible Lender Trustee with the appropriate tax authorities. In no event shall
the Eligible Lender Trustee, the Company or the Seller be liable for any
liabilities, costs or expenses of the Trust or the Noteholders arising out of
the application of any tax law, including federal, state, foreign or local
income or excise taxes or any other tax imposed on or measured by income (or any
interest, penalty or addition with respect thereto or arising from a failure to
comply therewith) except for any such liability, cost or expense attributable to
any act or omission by the Eligible Lender Trustee, the Company or the Seller,
as the case may be, in breach of its obligations under this Agreement.

            SECTION 5.03. Incentive Programs. Subject to compliance by the
Administrator with Section 2(i) of the Administration Agreement, the Trust shall
offer each Incentive Program to all qualified Borrowers except any Incentive
Program which the Administrator terminates pursuant to Section 2(i) of the
Administration Agreement. Upon the effective date specified in the notice of
termination required by Section 2(i) of the Administration Agreement, the Trust
shall cease offering the terminated Incentive Program to Borrowers affected by
the termination.

                                      -8-
<PAGE>

                                   ARTICLE VI

                 Authority and Duties of Eligible Lender Trustee

            SECTION 6.01. General Authority. The Eligible Lender Trustee is
authorized and directed to execute and deliver the Basic Documents to which the
Trust is to be a party and each certificate or other document attached as an
exhibit to or contemplated by the Basic Documents to which the Trust is to be a
party, in each case, in such form as the Seller shall approve as evidenced
conclusively by the Eligible Lender Trustee's execution thereof, and, on behalf
of the Trust, to direct the Indenture Trustee to authenticate and deliver Class
A-1 Notes in the aggregate principal amount of $309,250,000, Class A-2 Notes in
the aggregate principal amount of $848,750,000 and Subordinate Notes in the
aggregate principal amount of $42,000,000. The Eligible Lender Trustee is also
authorized and directed on behalf of the Trust (i) to acquire and hold legal
title to the Financed Student Loans from the Seller and (ii) to take all actions
required pursuant to Section 3.02(c) of the Servicing Agreement, and otherwise
follow the direction of and cooperate with the Servicer in submitting, pursuing
and collecting any claims to and with the Department with respect to any
Interest Subsidy Payments and Special Allowance Payments relating to the
Financed Student Loans.

      In addition to the foregoing, the Eligible Lender Trustee is authorized,
but shall not be obligated, to take all actions required of the Trust pursuant
to the Basic Documents. The Eligible Lender Trustee is further authorized from
time to time to take such action as the Administrator directs or instructs with
respect to the Basic Documents and is directed to take such action to the extent
that the Administrator is expressly required pursuant to the Basic Documents to
cause the Eligible Lender Trustee to act.

            SECTION 6.02. General Duties. It shall be the duty of the Eligible
Lender Trustee to discharge (or cause to be discharged) all its responsibilities
pursuant to the terms of this Agreement and the other Basic Documents to which
the Trust is a party and to administer the Trust, subject to and in accordance
with the provisions of this Agreement and the other Basic Documents.
Notwithstanding the foregoing, the Eligible Lender Trustee shall be deemed to
have discharged its duties and responsibilities hereunder and under the other
Basic Documents to the extent the Administrator has agreed in the Administration
Agreement to perform any act or to discharge any duty of the Eligible Lender
Trustee hereunder or under any other Basic Document, and the Eligible Lender
Trustee shall not be held liable for the default or failure of the Administrator
to carry out its obligations under the Administration Agreement. Except as
expressly provided in the Basic Documents, the Eligible Lender Trustee shall
have no obligation to administer, service or collect the Financed Student Loans
or to maintain, monitor or otherwise supervise the administration, servicing or
collection of the Financed Student Loans.

            SECTION 6.03. Action upon Instruction. (a) Subject to Article IV,
Section 7.01 and in accordance with the terms of the Basic Documents, the
Company may by written instruction direct the Eligible Lender Trustee in the
management of the Trust. Such direction may be exercised at any time by written
instruction of the Company pursuant to Article IV.

                                      -9-
<PAGE>

      (b) The Eligible Lender Trustee shall not be required to take any action
hereunder or under any other Basic Document if the Eligible Lender Trustee shall
have reasonably determined, or shall have been advised by counsel, that such
action is likely to result in liability on the part of the Eligible Lender
Trustee or is contrary to the terms hereof or of any other Basic Document or is
otherwise contrary to law.

      (c) Whenever the Eligible Lender Trustee is unable to determine the
appropriate course of action between alternative courses of action permitted or
required by the terms of this Agreement or under any other Basic Document, the
Eligible Lender Trustee shall promptly give notice (in such form as shall be
appropriate under the circumstances) to the Company requesting instruction as to
the course of action to be adopted, and to the extent the Eligible Lender
Trustee acts in good faith in accordance with any written instruction of the
Company received, the Eligible Lender Trustee shall not be liable on account of
such action to any Person. If the Eligible Lender Trustee shall not have
received appropriate instruction within 10 days of such notice (or within such
shorter period of time as reasonably may be specified in such notice or may be
necessary under the circumstances) it may, but shall be under no duty to, take
or refrain from taking such action, not inconsistent with this Agreement or the
other Basic Documents, as it shall deem to be in the best interests of the
Company, and shall have no liability to any Person for such action or inaction.

      (d) In the event that the Eligible Lender Trustee is unsure as to the
application of any provision of this Agreement or any other Basic Document or
any such provision is ambiguous as to its application, or is, or appears to be,
in conflict with any other applicable provision, or in the event that this
Agreement permits any determination by the Eligible Lender Trustee or is silent
or is incomplete as to the course of action that the Eligible Lender Trustee is
required to take with respect to a particular set of facts, the Eligible Lender
Trustee may give notice (in such form as shall be appropriate under the
circumstances) to the Company and any Swap Counterparties requesting instruction
from the Company and, to the extent that the Eligible Lender Trustee acts or
refrains from acting in good faith in accordance with any such instruction
received, the Eligible Lender Trustee shall not be liable, on account of such
action or inaction, to any Person. If the Eligible Lender Trustee shall not have
received appropriate instruction within 10 days of such notice (or within such
shorter period of time as reasonably may be specified in such notice or may be
necessary under the circumstances) it may, but shall be under no duty to, take
or refrain from taking such action, not inconsistent with this Agreement or the
other Basic Documents, as it shall deem to be in the best interests of the
Company and shall have no liability to any Person for such action or inaction.

      (e) Upon the satisfaction of the Rating Agency Swap Condition, if the
Administrator so directs, the Eligible Lender Trustee shall enter into, from
time to time, Swap Agreements. Upon satisfaction of the Rating Agency Swap
Condition, if the Administrator directs, the Eligible Lender Trustee shall enter
into an amendment to a Swap Agreement with a Swap Counterparty for the sole
purpose to cure any ambiguity to the Swap Agreement or to change the notional
amount of a Swap Agreement. Notwithstanding the foregoing, the cumulative
notional amount of any Swap Agreements may never exceed the outstanding
principal balance of the Notes.

                                      -10-
<PAGE>

            SECTION 6.04. No Duties Except as Specified in this Agreement, the
Loan Sale Agreement, the Servicing Agreement, the Administration Agreement or in
Instructions. The Eligible Lender Trustee shall not have any duty or obligation
to manage, make any payment with respect to, register, record, sell, service,
dispose of or otherwise deal with the Trust Estate, or to otherwise take or
refrain from taking any action under, or in connection with, any document
contemplated hereby to which the Eligible Lender Trustee is a party, except as
expressly provided by the terms of this Agreement, the Loan Sale Agreement, the
Servicing Agreement, the Administration Agreement or in any document or written
instruction received by the Eligible Lender Trustee pursuant to Section 6.03;
and no implied duties or obligations shall be read into this Agreement or any
other Basic Document against the Eligible Lender Trustee. The Eligible Lender
Trustee shall have no responsibility for filing any financing or continuation
statement in any public office at any time or to otherwise perfect or maintain
the perfection of any security interest or lien granted to it hereunder or to
prepare or file any Commission filing for the Trust or to record this Agreement
or any other Basic Document. The Eligible Lender Trustee nevertheless agrees
that it will, at its own cost and expense, promptly take all action as may be
necessary to discharge any liens on any part of the Trust Estate that result
from actions by, or claims against, Bank One, National Association in its
individual capacity or as the Eligible Lender Trustee that are not related to
the ownership or the administration of the Trust Estate.

            SECTION 6.05. No Action Except under Specified Documents or
Instructions. The Eligible Lender Trustee shall not manage, control, use, sell,
service, dispose of or otherwise deal with any part of the Trust Estate except
(i) in accordance with the powers granted to and the authority conferred upon
the Eligible Lender Trustee pursuant to this Agreement, (ii) in accordance with
the other Basic Documents to which it is a party and (iii) in accordance with
any document or instruction delivered to the Eligible Lender Trustee pursuant to
Section 6.03.

            SECTION 6.06. Restrictions. The Eligible Lender Trustee shall not
take any action (a) that is inconsistent with the purposes of the Trust set
forth in Section 2.03 or (b) that, to the actual knowledge of the Eligible
Lender Trustee, would result in the Trust's becoming taxable as a corporation
for Federal income tax purposes. The Company shall not direct the Eligible
Lender Trustee to take action that would violate the provisions of this Section.

            SECTION 6.07. Origination of Consolidation Loans during the
Revolving Period. (a) From time to time during the Revolving Period the Servicer
will identify those Financed Student Loans as to which a Borrower qualifies to
receive a Consolidation Loan under the Federal Consolidation Loan Program from
the Eligible Lender Trustee and will inform the Administrator of the identity of
such loans. The Administrator will determine, in accordance with customary
industry standards, whether a Consolidation Loan should be offered to such
Borrower; provided, however, that a Consolidation Loan will not be offered to a
Borrower if any Student Loan of such Borrower which is not beneficially owned by
the Issuer and which is proposed to be discharged by the making of such
Consolidation Loan is past due more than 30 days; and provided, further, that a
Consolidation Loan will not be offered to a Borrower if the aggregate principal
balances of all Consolidation Loans originated pursuant to this Section would
thereby exceed the limitations set forth in Section 6.07(d).

                                      -11-
<PAGE>

      (b) If the Administrator determines that it is appropriate to offer a
Consolidation Loan to a Borrower in accordance with this Section, it will so
inform the Servicer who will send the necessary documentation to such Borrower
and will process such documentation on behalf of the Eligible Lender Trustee,
all in accordance with industry standards, the Higher Education Act and the
related Guarantee Agreement. The Servicer will inform the Eligible Lender
Trustee of the completion of the loan underwriting process and the necessary
documentation, whereupon the Eligible Lender Trustee, on behalf of the Trust and
upon the direction of the Administrator, will execute any documents required to
be executed by it to complete the origination of such loan and to subject such
loan to the related Guarantee Agreement. The Servicer will not permit any
Consolidation Loan to be originated which would violate the representations and
warranties of Section 3.01 of the Loan Sale Agreement. Any Consolidation Loan
which is determined to violate any of such representations and warranties will
be subject to repurchase by the Seller as provided in Section 3.02 of the Loan
Sale Agreement.

      (c) Each Consolidation Loan originated pursuant to this Section 6.07 shall
be owned by the Issuer and be part of the Trust Estate and the Collateral from
and after the time of such origination. Upon origination of such loan and such
loan becoming part of the Trust Estate and the Collateral, the Administrator
will instruct the Indenture Trustee, pursuant to Section 2(f) of the
Administration Agreement, to authorize the transfer from the Collateral
Reinvestment Account of an amount sufficient to prepay in full any Student Loan
that is to be consolidated through such origination, including any Add-on
Consolidation Loan that is prepaid in full as a result of the principal balance
of such Add-on Consolidation Loan being added to the principal balance of a
related Consolidation Loan held as part of the Trust Estate. The Administrator
will cause to be taken all actions, and the Eligible Lender Trustee will
cooperate with the Administrator in the execution of any instruments or
documents, required to establish and maintain the ownership interest of the
Trust and the first perfected security interest of the Indenture Trustee in each
Consolidation Loan originated pursuant to this Section.

      (d) In no event shall the Issuer or the Eligible Lender Trustee on behalf
of the Issuer originate Consolidation Loans in excess of $100,000,000 (including
the addition of the principal balances of any Add-on Consolidation Loans) in the
aggregate during the Revolving Period; additionally, no Consolidation Loan may
be originated by the Issuer or the Eligible Lender Trustee on behalf of the
Issuer having a scheduled maturity after April 28, 2032 if at the time of such
origination the aggregate principal balance of all Consolidation Loans held as
part of the Trust Estate that have a scheduled maturity date after April 28,
2032 exceeds, or after giving effect to such origination, would exceed
$15,000,000; provided, however, that the Eligible Lender Trustee will be
permitted to fund the addition of the principal balance of any Add-on
Consolidation Loan in excess of such amounts, if the Eligible Lender Trustee is
required to do so by the Higher Education Act. In addition, in no event shall
the Issuer or the Eligible Lender Trustee on behalf of the Issuer make
Consolidation Loans after the Revolving Period; provided, however, that the
Eligible Lender Trustee may increase the principal balance of any Consolidation
Loan by the principal balance of any related Add-on Consolidation Loan during
the Add-on Period if the Eligible Lender Trustee is required to do so by the
Higher Education Act. After the Revolving Period, upon the addition of the
principal balance of such Add-on Consolidation Loan, and such amounts becoming
part of the Trust Estate and the Collateral, the

                                      -12-
<PAGE>

Administrator will instruct the Indenture Trustee, pursuant to Section
2(d)(iii)(A) of the Administration Agreement, to authorize the transfer from the
Collection Account of an amount sufficient to prepay in full such Add-on
Consolidation Loan.

            (e) All Consolidation Fees payable with respect to Consolidation
Loans originated and the principal balances of any Add-on Consolidation Loans
added to the Trust pursuant to this Section will be payable by the Issuer as
provided in Section 2(d)(ii) of the Administration Agreement. All other costs or
fees incurred in originating Consolidation Loans (or in adding the principal
balances of any Add-on Consolidation Loans) shall be payable by the
Administrator.

                                   ARTICLE VII

                     Concerning the Eligible Lender Trustee

            SECTION 7.01. Acceptance of Trusts and Duties. The Eligible Lender
Trustee accepts the trusts hereby created and agrees to perform its duties
hereunder with respect to such trusts but only upon the terms of this Agreement.
The Eligible Lender Trustee also agrees to disburse all monies actually received
by it constituting part of the Trust Estate upon the terms of this Agreement and
the other Basic Documents. The Eligible Lender Trustee shall not be answerable
or accountable hereunder or under any other Basic Document under any
circumstances, except (i) for its own willful misconduct or negligence or (ii)
in the case of the inaccuracy of any representation or warranty contained in
Section 7.03 expressly made by the Eligible Lender Trustee. In particular, but
not by way of limitation (and subject to the exceptions set forth in the
preceding sentence):

            (a) the Eligible Lender Trustee shall not be liable for any error of
      judgment made by a responsible officer of the Eligible Lender Trustee;

            (b) the Eligible Lender Trustee shall not be liable with respect to
      any action taken or omitted to be taken by it in accordance with the
      direction or instructions of the Administrator or the Company;

            (c) no provision of this Agreement or any other Basic Document shall
      require the Eligible Lender Trustee to expend or risk funds or otherwise
      incur any financial liability in the performance of any of its rights or
      powers hereunder or under any other Basic Document, if the Eligible Lender
      Trustee shall have reasonable grounds for believing that repayment of such
      funds or adequate indemnity against such risk or liability is not
      reasonably assured or provided to it;

            (d) under no circumstances shall the Eligible Lender Trustee be
      liable for indebtedness evidenced by or arising under any of the Basic
      Documents, including the principal of and interest on the Notes;

                                      -13-
<PAGE>

            (e) the Eligible Lender Trustee shall not be responsible for or in
      respect of the validity or sufficiency of this Agreement or for the due
      execution hereof by the Seller or for the form, character, genuineness,
      sufficiency, value or validity of any of the Trust Estate or for or in
      respect of the validity or sufficiency of the Basic Documents, and the
      Eligible Lender Trustee shall in no event assume or incur any liability,
      duty, or obligation to any Noteholder or to the Company, other than as
      expressly provided for herein and in the other Basic Documents;

            (f) the Eligible Lender Trustee shall not be liable for the action
      or inaction, default or misconduct of the Administrator, the Seller, the
      Indenture Trustee or the Servicer under any of the other Basic Documents
      or otherwise and the Eligible Lender Trustee shall have no obligation or
      liability to perform the obligations of the Trust under this Agreement or
      the other Basic Documents that are required to be performed by the
      Administrator under the Administration Agreement, the Indenture Trustee
      under the Indenture or the Servicer under the Servicing Agreement; and

            (g) the Eligible Lender Trustee shall be under no obligation to
      exercise any of the rights or powers vested in it by this Agreement, or to
      institute, conduct or defend any litigation under this Agreement or
      otherwise or in relation to this Agreement or any other Basic Document, at
      the request, order or direction of the Company, unless the Company has
      offered to the Eligible Lender Trustee security or indemnity satisfactory
      to it against the costs, expenses and liabilities that may be incurred by
      the Eligible Lender Trustee therein or thereby. The right of the Eligible
      Lender Trustee to perform any discretionary act enumerated in this
      Agreement or in any other Basic Document shall not be construed as a duty,
      and the Eligible Lender Trustee shall not be answerable for other than its
      negligence or willful misconduct in the performance of any such act.

            SECTION 7.02. Furnishing of Documents. The Eligible Lender Trustee
shall furnish to the Company and each Swap Counterparty, if any, promptly upon
receipt of a written request therefor, duplicates or copies of all reports,
notices, requests, demands, certificates, financial statements and any other
instruments furnished to the Eligible Lender Trustee under the Basic Documents.

            SECTION 7.03. Representations and Warranties. The Eligible Lender
Trustee hereby represents and warrants to each of the Seller, the Company and
any Swap Counterparties, that:

            (a) 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) 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.

                                      -14-
<PAGE>

            (c) 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 state law, governmental rule or regulation
      governing the banking or trust powers of the Eligible Lender 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) It is an "eligible lender" as such term is defined in Section
      435(d) of the Higher Education Act, for purposes of holding legal title to
      the Financed Student Loans and originating Consolidation Loans as
      contemplated by this Agreement and the other Basic Documents, has obtained
      a lender identification number with respect to the Trust from the
      Department, has in effect a Guarantee Agreement with the Initial Guarantor
      with respect to the Initial Financed Student Loans and will have the
      requisite power and authority to enter into Guarantee Agreements with
      Additional Guarantors, if any.

            (e) In originating each Consolidation Loan on behalf of the Trust,
      as provided in Section 6.07, it shall comply with all applicable
      provisions of the Higher Education Act, and it will not create or cause to
      be created any lien, charge or encumbrance on any such Consolidation Loan
      or in any way cause the Trust to not have good title thereto.

            SECTION 7.04. Reliance; Advice of Counsel. (a) The Eligible Lender
Trustee shall incur no liability to anyone in acting upon any signature,
instrument, direction, notice, resolution, request, consent, order, certificate,
report, opinion, bond, or other document or paper believed by it to be genuine
and believed by it to be signed by the proper party or parties. The Eligible
Lender Trustee may accept a certified copy of a resolution of the board of
directors or other governing body of any corporate party as conclusive evidence
that such resolution has been duly adopted by such body and that the same is in
full force and effect. As to any fact or matter the method of the determination
of which is not specifically prescribed herein, the Eligible Lender Trustee may
for all purposes hereof rely on a certificate, signed by the president or any
vice president or by the treasurer or other authorized officers of the relevant
party, as to such fact or matter and such certificate shall constitute full
protection to the Eligible Lender Trustee for any action taken or omitted to be
taken by it in good faith in reliance thereon.

            (b) In the exercise or administration of the trusts hereunder and in
the performance of its duties and obligations under this Agreement or the other
Basic Documents, the Eligible Lender Trustee (i) may act directly or through its
agents or attorneys pursuant to agreements entered into with any of them, and
the Eligible Lender Trustee shall not be liable for the conduct or misconduct of
such agents or attorneys if such agents or attorneys shall have been selected by
the Eligible Lender Trustee with reasonable care, and (ii) may consult with
counsel, accountants and other skilled persons to be selected with reasonable
care and employed by it. The Eligible Lender Trustee shall not be liable for
anything done, suffered or omitted in good faith by it in accordance with the
written opinion or advice of any such counsel, accountants or other such persons
and not contrary to this Agreement or any other Basic Document.

                                      -15-
<PAGE>

            SECTION 7.05. Not Acting in Individual Capacity; Responsibility to
Secretary and Guarantors. Except as provided in this Article VII, in accepting
the trusts hereby created, Bank One, National Association acts solely as
Eligible Lender Trustee hereunder and not in its individual capacity and all
Persons having any claim against the Eligible Lender Trustee by reason of the
transactions contemplated by this Agreement or any other Basic Document shall
look only to the Trust Estate for payment or satisfaction thereof.

            Notwithstanding any other provision in this Agreement or the other
Basic Documents, nothing in this Agreement or the other Basic Documents shall be
construed to limit the legal responsibility of the Eligible Lender Trustee or
the Indenture Trustee, to the U.S. Secretary of Education or a Guarantor for any
violations of statutory or regulatory requirements that may occur with respect
to loans held by the Eligible Lender Trustee or the Indenture Trustee pursuant
to, or to otherwise comply with their obligations under, the Higher Education
Act or implementing regulations.

            SECTION 7.06. Eligible Lender Trustee Not Liable for Notes or
Student Loans. The recitals contained herein (other than the representations and
warranties in Section 7.03) shall be taken as the statements of the Seller, and
the Eligible Lender Trustee assumes no responsibility for the correctness
thereof. The Eligible Lender Trustee makes no representations as to the validity
or sufficiency of this Agreement or any other Basic Document or the Notes, or of
any Financed Student Loan or related documents. The Eligible Lender Trustee
shall at no time have any responsibility (or liability except for willfully or
negligently terminating or allowing to be terminated either of the Guarantee
Agreements, in a case where the Eligible Lender Trustee knows of any facts or
circumstances which will or could reasonably be expected to result in any such
termination) for or with respect to the legality, validity, enforceability and
eligibility for Guarantee Payments, Interest Subsidy Payments or Special
Allowance Payments, as applicable, of any Financed Student Loan, or for or with
respect to the sufficiency of the Trust Estate or its ability to generate the
payments to be distributed to the Noteholders under the Indenture, including:
the existence and contents of any computer or other record of any Financed
Student Loan; the validity of the assignment of any Financed Student Loan to the
Trust; the completeness of any Financed Student Loan; the performance or
enforcement (except as expressly set forth in any Basic Document) of any
Financed Student Loan; the compliance by the Seller or the Servicer with any
warranty or representation made under any Basic Document or in any related
document or the accuracy of any such warranty or representation or any action or
inaction of the Administrator, the Indenture Trustee or the Servicer or any
subservicer taken in the name of the Eligible Lender Trustee.

            SECTION 7.07. Eligible Lender Trustee May Own Trust Notes. The
Eligible Lender Trustee in its individual or any other capacity may become the
owner or pledgee of Notes and may deal with the Seller, the Administrator, the
Indenture Trustee and the Servicer in banking transactions with the same rights
as it would have if it were not the Eligible Lender Trustee.

                                      -16-
<PAGE>

            SECTION 7.08. Licenses. The Eligible Lender Trustee shall cause the
Trust to use its best efforts to obtain and maintain the effectiveness of any
licenses required in connection with this Agreement and the other Basic
Documents and the transactions contemplated hereby and thereby until such time
as the Trust shall terminate in accordance with the terms hereof. The Eligible
Lender Trustee shall receive from the Administrator the information necessary to
comply with this Section.

                                  ARTICLE VIII

                     Compensation of Eligible Lender Trustee

            SECTION 8.01. Eligible Lender Trustee's Fees and Expenses. The
Eligible Lender Trustee shall receive as compensation for its services hereunder
such fees as have been separately agreed upon before the date hereof between the
Seller and the Eligible Lender Trustee, and the Eligible Lender Trustee shall be
entitled to be reimbursed by the Seller for its other reasonable expenses
hereunder, including the reasonable compensation, expenses and disbursements of
such agents, representatives, experts and counsel as the Eligible Lender Trustee
may employ in connection with the exercise and performance of its rights and
duties hereunder. The Eligible Lender Trustee shall have no recourse to the
Issuer for its fees and expenses hereunder.

            SECTION 8.02. Payments to the Eligible Lender Trustee. Any amounts
paid to the Eligible Lender Trustee pursuant to Section 8.01 hereof or pursuant
to Section 4.03 of the Loan Sale Agreement or pursuant to Section 24 of the
Administration Agreement shall be deemed not to be a part of the Trust Estate
immediately after such payment.

                                   ARTICLE IX

                         Termination of Trust Agreement

            SECTION 9.01. Termination of Trust Agreement. (a) This Agreement
(other than Article VIII) and the Trust shall terminate and be of no further
force or effect upon the earlier of (i) the final distribution by the Eligible
Lender Trustee of all monies or other property or proceeds of the Trust Estate
in accordance with the terms of the Indenture and the Servicing Agreement and
the termination of the Indenture and (ii) the expiration of 21 years from the
death of the last survivor of the descendants of Joseph P. Kennedy, the late
Ambassador of the United States to the Court of St. James's, living on the date
hereof.

            (b) Neither the Seller nor the Company shall be entitled to revoke
or terminate the Trust.

            (c) Notice of any termination of the Trust, shall be given promptly
by the Eligible Lender Trustee by letter to the Company and any Swap
Counterparties mailed within five

                                      -17-
<PAGE>

Business Days of receipt of notice of such termination from the Administrator
given pursuant to Section 2(b)(vii) of the Administration Agreement.

            (d) Upon the winding up of the Trust and its termination, the
Eligible Lender Trustee shall cause the Certificate of Trust to be canceled by
filing a certificate of cancellation with the Secretary of State of the State of
Delaware in accordance with the provisions of Section 3810 of the Business Trust
Statute.

             SECTION 9.02.  [Reserved.]

                                    ARTICLE X

   Successor Eligible Lender Trustees and Additional Eligible Lender Trustees

            SECTION 10.01. Eligibility Requirements for Eligible Lender Trustee.
The Eligible Lender Trustee shall at all times be a corporation or association
(i) qualifying as an "eligible lender" as such term is defined in Section 435(d)
of the Higher Education Act for purposes of holding legal title to the Financed
Student Loans and originating Consolidation Loans on behalf of the Trust, with a
valid lender identification number with respect to the Trust from the
Department; (ii) being authorized to exercise corporate trust powers and hold
legal title to the Financed Student Loans; (iii) having in effect Guarantee
Agreements with the Initial Guarantor and any Additional Guarantors; (iv) having
a combined capital and surplus of at least $50,000,000 and being subject to
supervision or examination by Federal or state authorities; and (v) having (or
having a parent which has) a rating of at least "Baa3" by Moody's, "BBB" by S&P,
if rated by S&P and "BBB" by Fitch, if rated by Fitch. If the Eligible Lender
Trustee shall publish reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, then
for the purpose of this Section, the combined capital and surplus of the
Eligible Lender Trustee shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published. In case at any
time the Eligible Lender Trustee shall cease to be eligible in accordance with
the provisions of this Section, the Eligible Lender Trustee shall resign
immediately in the manner and with the effect specified in Section 10.02. In
addition, at all times the Trustee or a co-trustee shall be a Person that
satisfies the requirements of Section 3807(a) of the Business Trust Statute (the
"Delaware Trustee").

            SECTION 10.02. Resignation or Removal of Eligible Lender Trustee.
The Eligible Lender Trustee may at any time resign and be discharged from the
trusts hereby created by giving written notice thereof to the Administrator and
any Swap Counterparties. Upon receiving such notice of resignation, the
Administrator shall promptly appoint a successor Eligible Lender Trustee meeting
the eligibility requirements of Section 10.01 by written instrument, in
duplicate, one copy of which instrument shall be delivered to the resigning
Eligible Lender Trustee and one copy to the successor Eligible Lender Trustee.
If no successor Eligible Lender Trustee shall have been so appointed and have
accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Eligible Lender Trustee may

                                      -18-
<PAGE>

petition any court of competent jurisdiction for the appointment of a successor
Eligible Lender Trustee; provided, however, that such right to appoint or to
petition for the appointment of any such successor shall in no event relieve the
resigning Eligible Lender Trustee from any obligations otherwise imposed on it
under the Basic Documents until such successor has in fact assumed such
appointment.

            If at any time the Eligible Lender Trustee shall cease to be
eligible in accordance with the provisions of Section 10.01 and shall fail to
resign after written request therefor by the Administrator, or if at any time
the Eligible Lender Trustee shall be legally unable to act, or an Insolvency
Event with respect to the Eligible Lender Trustee shall have occurred and be
continuing, then the Administrator may remove the Eligible Lender Trustee. If
the Administrator shall remove the Eligible Lender Trustee under the authority
of the immediately preceding sentence, the Administrator shall promptly appoint
a successor Eligible Lender Trustee by written instrument, in duplicate, one
copy of which instrument shall be delivered to the outgoing Eligible Lender
Trustee so removed and one copy to the successor Eligible Lender Trustee and
payment of all fees owed to the outgoing Eligible Lender Trustee.

            Any resignation or removal of the Eligible Lender Trustee and
appointment of a successor Eligible Lender Trustee pursuant to any of the
provisions of this Section shall not become effective until acceptance of
appointment by the successor Eligible Lender Trustee pursuant to Section 10.03
and payment of all fees and expenses owed to the outgoing Eligible Lender
Trustee. The Administrator shall provide notice of such resignation or removal
of the Eligible Lender Trustee to any Swap Counterparties and to each of the
Rating Agencies.

            SECTION 10.03. Successor Eligible Lender Trustee. Any successor
Eligible Lender Trustee appointed pursuant to Section 10.02 shall execute,
acknowledge and deliver to the Administrator, to its predecessor Eligible Lender
Trustee an instrument accepting such appointment under this Agreement, and
thereupon the resignation or removal of the predecessor Eligible Lender Trustee
shall become effective and such successor Eligible Lender Trustee, without any
further act, deed or conveyance, shall become fully vested with all the rights,
powers, duties and obligations of its predecessor under this Agreement, with
like effect as if originally named as Eligible Lender Trustee. The predecessor
Eligible Lender Trustee shall upon payment of its fees and expenses deliver to
the successor Eligible Lender Trustee all documents, statements, monies and
properties held by it under this Agreement and shall assign, if permissible, to
the successor Eligible Lender Trustee the lender identification number obtained
from the Department on behalf of the Trust; and the Administrator and the
predecessor Eligible Lender Trustee shall execute and deliver such instruments
and do such other things as may reasonably be required for fully and certainly
vesting and confirming in the successor Eligible Lender Trustee all such rights,
powers, duties and obligations.

            No successor Eligible Lender Trustee shall accept appointment as
provided in this Section unless at the time of such acceptance such successor
Eligible Lender Trustee shall be eligible pursuant to Section 10.01.

                                      -19-
<PAGE>

            Upon acceptance of appointment by a successor Eligible Lender
Trustee pursuant to this Section, the Administrator shall mail notice of the
successor of such Eligible Lender Trustee to the Company, the Indenture Trustee,
the Noteholders, the Rating Agencies and any Swap Counterparties. If the
Administrator shall fail to mail such notice within 10 days after acceptance of
appointment by the successor Eligible Lender Trustee, the successor Eligible
Lender Trustee shall cause such notice to be mailed at the expense of the
Administrator.

            SECTION 10.04. Merger or Consolidation of Eligible Lender Trustee.
Any corporation into which the Eligible Lender Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Eligible Lender
Trustee shall be a party, or any corporation succeeding to all or substantially
all the corporate trust business of the Eligible Lender Trustee, shall, without
the execution or filing of any instrument or any further act on the part of any
of the parties hereto, anything herein to the contrary notwithstanding, be the
successor of the Eligible Lender Trustee hereunder; provided that such
corporation shall be eligible pursuant to Section 10.01; provided further that
the Eligible Lender Trustee shall mail notice of such merger or consolidation to
the Rating Agencies and any Swap Counterparties not less than 10 Business Days
prior to the closing date of such merger or consolidation.

            SECTION 10.05. Appointment of Co-Eligible Lender Trustee or Separate
Eligible Lender Trustee. Notwithstanding any other provisions of this Agreement,
at any time, for the purpose of meeting any legal requirements of any
jurisdiction in which any part of the Trust may at the time be located, the
Administrator and the Eligible Lender Trustee acting jointly (and with written
notice to any Swap Counterparties) shall have the power and shall execute and
deliver all instruments to appoint one or more Persons approved by the Eligible
Lender Trustee, which, except in the case of any Delaware Trustee, shall meet
the eligibility requirements of clauses (i) through (iii) of Section 10.01, to
act as co-trustee, jointly with the Eligible Lender Trustee, or separate trustee
or separate trustees, of all or any part of the Trust Estate, and to vest in
such Person, in such capacity, such title to the Trust Estate, or any part
thereof, and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Administrator and the Eligible
Lender Trustee may consider necessary or desirable. If the Administrator shall
not have joined in such appointment within 15 days after the receipt by it of a
request so to do, the Eligible Lender Trustee alone shall have the power to make
such appointment. Pursuant to the Co-Trustee Agreement, dated as of January 21,
2000 between Bank One, National Association and Bank One Delaware, Inc. the
Eligible Lender Trustee shall appoint Bank One Delaware, Inc. as a co-trustee
hereunder for the purpose of its acting as Delaware Trustee and such agreement
is hereby incorporated herein by reference. If the Delaware Trustee shall become
incapable of acting, resign or be removed, unless the Trustee is qualified to
act as Delaware Trustee, a successor co-trustee shall promptly be appointed in
the manner specified in this Section 10.05 to act as Delaware Trustee. No
co-trustee or separate trustee under this Agreement shall be required to meet
the terms of eligibility as a successor trustee pursuant to clauses (iv) and (v)
of Section 10.01 and no notice of the appointment of any co-trustee or separate
trustee shall be required pursuant to Section 10.03.

                                      -20-
<PAGE>

            Each separate trustee and co-trustee shall, to the extent permitted
by law, be appointed and act subject to the following provisions and conditions:

            (i) all rights, powers, duties, and obligations conferred or imposed
      upon the Eligible Lender Trustee shall be conferred upon and exercised or
      performed by the Eligible Lender Trustee and such separate trustee or
      co-trustee jointly (it being understood that such separate trustee or
      co-trustee is not authorized to act separately without the Eligible Lender
      Trustee joining in such act), except to the extent that under any law of
      any jurisdiction in which any particular act or acts are to be performed,
      the Eligible Lender Trustee shall be incompetent or unqualified to perform
      such act or acts, in which event such rights, powers, duties, and
      obligations (including the holding of title to the Trust or any portion
      thereof in any such jurisdiction) shall be exercised and performed singly
      by such separate trustee or co-trustee, solely at the direction of the
      Eligible Lender Trustee;

            (ii) no trustee under this Agreement shall be personally liable by
      reason of any act or omission of any other trustee under this Agreement;
      and

            (iii) the Administrator and the Eligible Lender Trustee acting
      jointly may at any time accept the resignation of or remove any separate
      trustee or co-trustee.

            Any notice, request or other writing given to the Eligible Lender
Trustee shall be deemed to have been given to each of the then separate trustees
and co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with the Eligible
Lender Trustee or separately, as may be provided therein, subject to all the
provisions of this Agreement, specifically including every provision of this
Agreement relating to the conduct of, affecting the liability of, or affording
protection to, the Eligible Lender Trustee. Each such instrument shall be filed
with the Eligible Lender Trustee and a copy thereof given to the Administrator
and any Swap Counterparties.

            Any separate trustee or co-trustee may at any time appoint the
Eligible Lender Trustee as its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Agreement on its behalf and in its name. If any separate trustee
or co-trustee shall die, become incapable of acting, resign or be removed, all
its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Eligible Lender Trustee, to the extent permitted by law,
without the appointment of a new or successor trustee, except as otherwise
provided in this Section 10.05 in regard to the Delaware Trustee.

                                      -21-
<PAGE>

                                   ARTICLE XI

                                  Miscellaneous

            SECTION 11.01. Supplements and Amendments. This Agreement may be
amended by the Seller, the Company and the Eligible Lender Trustee, with the
prior written consent of any Swap Counterparties and with prior written notice
to the Rating Agencies, without the consent of any of the Noteholders, to cure
any ambiguity, to correct or supplement any provisions in this Agreement or for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions in this Agreement or of modifying in any manner the rights
of the Noteholders; provided, however, that such action shall not, as evidenced
by an Opinion of Counsel, adversely affect in any material respect the interests
of any Noteholder.

            This Agreement may also be amended from time to time by the Seller,
the Company and the Eligible Lender Trustee, with prior written consent of any
Swap Counterparties and with prior written notice to the Rating Agencies, with
the consent of the Noteholders of Notes evidencing not less than a majority of
the Outstanding Amount of the Notes, for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Agreement
or of modifying in any manner the rights of the Noteholders; provided, however,
that no such amendment shall (a) increase or reduce in any manner the amount of,
or accelerate or delay the timing of, collections of payments on Financed
Student Loans or distributions that shall be required to be made for the benefit
of the Noteholders or (b) reduce the aforesaid percentage of the Outstanding
Amount of the Notes and required to consent to any such amendment, without the
consent of all the outstanding Noteholders.

            The Eligible Lender Trustee shall furnish 10 Business Days' prior
written notification of the substance of any such amendment or consent to the
Indenture Trustee, each of the Rating Agencies and any Swap Counterparties.

            It shall not be necessary for the consent of the Noteholders or the
Indenture Trustee pursuant to this Section to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall
approve the substance thereof. The manner of obtaining such consents shall be
subject to such reasonable requirements as the Eligible Lender Trustee may
prescribe.

            Promptly after the execution of any amendment to the Certificate of
Trust, the Eligible Lender Trustee shall cause the filing of such amendment with
the Secretary of State of the State of Delaware. The Eligible Lender Trustee
shall furnish the Rating Agencies and any Swap Counterparties with ten Business
Days' prior written notice of any amendment to the Certificate of Trust.

            Prior to the execution of any amendment to this Agreement, the
Eligible Lender Trustee shall be entitled to receive and rely upon an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted
by this Agreement. The Eligible Lender

                                      -22-
<PAGE>

Trustee may, but shall not be obligated to, enter into any such amendment which
affects the Eligible Lender Trustee's own rights, duties or immunities under
this Agreement or otherwise.

            SECTION 11.02. No Legal Title to Trust Estate in Company. The
Company shall not have legal title to any part of the Trust Estate. The Company
shall be entitled to receive distributions with respect to its ownership
interest therein only in accordance with the Indenture, the Administration
Agreement and the Servicing Agreement. No transfer, by operation of law or
otherwise, of any right, title, or interest of the Company to and in its
beneficial ownership interest in the Trust Estate shall operate to terminate
this Agreement or the trusts hereunder or entitle any transferee to an
accounting or to the transfer to it of legal title to any part of the Trust
Estate. If, contrary to this Section, the Company is deemed to have legal title
to any part of the Trust Estate, the Company shall be deemed to have granted,
and in such event does hereby grant to the Issuer, a first priority security
interest in all of the Company's right, title and interest in the Trust Estate,
other than in the distributions referred to in the second sentence of this
Section 11.02, and this Agreement shall be deemed to constitute a security
agreement under applicable law with respect to the Trust Estate.

            SECTION 11.03. Limitations on Rights of Others. Except for Section
2.07, the provisions of this Agreement are solely for the benefit of the
Eligible Lender Trustee, the Seller, the Company, the Administrator, any Swap
Counterparties and, to the extent expressly provided herein, the Indenture
Trustee and the Noteholders, and nothing in this Agreement (other than Section
2.07), whether express or implied, shall be construed to give to any other
Person any legal or equitable right, remedy or claim in the Trust Estate or
under or in respect of this Agreement or any covenants, conditions or provisions
contained herein.

            SECTION 11.04. Notices. Unless otherwise expressly specified or
permitted by the terms hereof, all notices shall be in writing (or in the form
of facsimile notice, followed by written notice) and shall be deemed given upon
receipt by the intended recipient, if to the Eligible Lender Trustee, addressed
to its Corporate Trust Office; if to the Seller, addressed to USA Group
Secondary Market Services, Inc., 30 South Meridian Street, Indianapolis, Indiana
46204-3503, Attention: President and Chief Executive Officer (telephone:
317-951-5640; facsimile: 317-951-5764), with a copy to Office of the General
Counsel, USA Group, Inc., 30 South Meridian Street, Indianapolis, Indiana
46204-3503, Attention: Peter M. Greco (telephone: 317-951-5526; facsimile:
317-951-5532); if to the Company, addressed to Secondary Market Company, Inc.,
30 South Meridian Street, Indianapolis, Indiana 46204-3503, Attention: President
(telephone: 317-951-5640; facsimile: 317-951-5764), with a copy to USA Group
Secondary Market Services, Inc., 30 South Meridian Street, Indianapolis, Indiana
46204-3503, and a copy to Office of the General Counsel, USA Group, Inc., 30
South Meridian Street, Indianapolis, Indiana 46204-3503, Attention: Peter M.
Greco (telephone: 317-951-5526; facsimile: 317-951-5532); and if to any Swap
Counterparty, addressed to each Swap Counterparty at the address indicated in
the related Swap Agreement or, as to each party, at such other address as shall
be designated by such party in a written notice to each other party.

            SECTION 11.05. Severability. Any provision of this Agreement that as
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the

                                      -23-
<PAGE>

extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

            SECTION 11.06. Separate Counterparts. This Agreement may be executed
by the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

            SECTION 11.07. Successors and Assigns. All covenants and agreements
contained herein shall be binding upon, and inure to the benefit of, the Seller,
the Company, the Eligible Lender Trustee and their respective successors and
permitted assigns, all as herein provided.

            SECTION 11.08. No Petition. (a) The Seller will not at any time
institute against the Trust or the Company any bankruptcy proceedings under any
United States federal or state bankruptcy or similar law in connection with any
obligations relating to the Notes, this Agreement or any of the other Basic
Documents.

            (b) The Eligible Lender Trustee, by entering into this Agreement,
and the Indenture Trustee and each Noteholder by accepting the benefits of this
Agreement, hereby covenant and agree that they will not at any time institute
against the Seller, the Company or the Trust, or join in any institution against
the Seller, the Company or the Trust of, any bankruptcy, reorganization,
arrangement, insolvency, receivership or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, this Agreement or any
of the other Basic Documents.

            (c) The Company will not at any time institute against the Trust or
the Seller or approve of the institution by the Eligible Lender Trustee of any
bankruptcy proceedings under any United States Federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, the
Agreement or any of the other Basic Documents.

            SECTION 11.09. No Recourse. The Company acknowledges that its
ownership interest in the Trust represents a beneficial interest in the Trust
only and does not represent an interest in or obligation of the Seller, the
Servicer, the Seller, the Administrator, the Eligible Lender Trustee, the
Indenture Trustee or any Affiliate thereof or any officer, director or employee
of any thereof and no recourse may be had against such parties or their assets,
except as may be expressly set forth or contemplated in this Agreement or the
other Basic Documents.

            SECTION 11.10. Headings. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

                  SECTION  11.11.   Governing  Law.  This  Agreement   shall  be
construed  in  accordance  with  the  laws of the  State  of  Delaware,  without
reference to its conflict of law

                                      -24-
<PAGE>

provisions, and the obligations, rights and remedies of the parties hereunder
shall be determined in accordance with such laws.

            SECTION 11.12. Reserved.

            SECTION 11.13. Third-Party Beneficiaries. The parties hereto
acknowledge that any Swap Counterparties are express third-party beneficiaries
hereof entitled to enforce the provisions hereof as if they were actual parties
hereto; provided, however, that such right to enforcement and the right to
provide consents or waivers pursuant to the provisions hereof or to take other
actions as provided herein are conditioned upon its not being in default under
the related Swap Agreements.

            SECTION 11.14. Consents. With respect to any action to be taken
hereunder that requires the consent of a party hereto or of the Indenture
Trustee or any Swap Counterparties, such consent shall not be unreasonably
withheld, delayed or conditioned.

                        [Signatures Follow on Next Page]

                                      -25-
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Trust
Agreement to be duly executed by their respective officers hereunto duly
authorized, as of the day and year first above written.

                                         BANK ONE, NATIONAL ASSOCIATION, not in
                                         its individual capacity but solely as
                                         Eligible Lender Trustee

                                         By: /S/ Steve M.Husbands
                                             -----------------------------------
                                             Name:  Steve M. Husbands
                                             Title: Assistant Vice President

                                         USA GROUP SECONDARY MARKET
                                             SERVICES, INC., as depositor

                                         By: /s/Cheryl E. Watson
                                             -------------------
                                             Name:  Cheryl E. Watson
                                             Title: Senior Vice President and
                                                    Chief Financial Officer

                                         SECONDARY MARKET COMPANY, INC.

                                         By: /s/ Stephen W. Clinton
                                             ----------------------
                                             Name:  Stephen W. Clinton
                                             Title: Chairman, President and
                                                    Chief Executive Officer

                                      -26-
<PAGE>

                                                                       EXHIBIT A
                                                          TO THE TRUST AGREEMENT

                             CERTIFICATE OF TRUST OF
                          SMS STUDENT LOAN TRUST 2000-A

            THIS Certificate of Trust of SMS Student Loan Trust 2000-A (the
"Trust"), dated as of January 21, 2000, is being duly executed and filed by Bank
One, National Association, a national banking association, and Bank One
Delaware, Inc., a Delaware banking corporation, as trustees, to form a business
trust under the Delaware Business Trust Act (12 Del. Code, ss. 3801 et seq.).

            1. Name. The name of the business trust formed hereby is SMS Student
Loan Trust 2000-A.

            2. Delaware Trustee. The name and business address of the trustee of
the Trust resident in the State of Delaware is Bank One Delaware, Inc. 3
Christina Centre, 201 North Walnut Street, Wilmington, Delaware 19801.

            3. This Certificate of Trust will be effective January 21, 2000.

                                      A-1
<PAGE>

            IN WITNESS WHEREOF, the undersigned, being the sole trustees of the
Trust, have executed this Certificate of Trust as of the date first above
written.

                                         BANK ONE, NATIONAL ASSOCIATION,
                                            not in its individual capacity but
                                            solely as trustee of the Trust

                                         By: ___________________________________
                                             Name:
                                             Title:

                                         BANK ONE DELAWARE, INC.,
                                            not in its individual capacity
                                            but solely as trustee of the Trust

                                         By: ___________________________________
                                             Name:
                                             Title:

                                      A-2EXECUTION COPY

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

                                    INDENTURE

                                     between

                         SMS STUDENT LOAN TRUST 2000-A,
                                    as Issuer

                                       and

                             BANKERS TRUST COMPANY,
                       not in its individual capacity but
                           solely as Indenture Trustee

                           Dated as of January 1, 2000

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

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

                                    ARTICLE I

                              Definitions and Usage

SECTION 1.01.  Definitions and Usage...........................................2
SECTION 1.02.  Incorporation by Reference of Trust Indenture Act...............2

                                   ARTICLE II

                                    The Notes

SECTION 2.01.  Form ...........................................................3
SECTION 2.02.  Execution, Authentication and Delivery..........................3
SECTION 2.03.  Temporary Notes.................................................4
SECTION 2.04.  Registration; Registration of Transfer and Exchange.............4
SECTION 2.05.  Mutilated, Destroyed, Lost or Stolen Notes......................6
SECTION 2.06.  Persons Deemed Owner............................................7
SECTION 2.07.  Payment of Principal and Interest; Defaulted Interest...........7
SECTION 2.08.  Cancellation....................................................8
SECTION 2.09.  Release of Collateral...........................................9
SECTION 2.10.  Book-Entry Notes................................................9
SECTION 2.11.  Notices to Clearing Agency.....................................10
SECTION 2.12.  Definitive Notes...............................................10
SECTION 2.13.  Reserved.......................................................10

                                   ARTICLE III

                                    Covenants

SECTION 3.01.  Payment to Noteholders.........................................10
SECTION 3.02.  Maintenance of Office or Agency................................11
SECTION 3.03.  Money for Payments to Be Held in Trust.........................11
SECTION 3.04.  Existence......................................................12
SECTION 3.05.  Protection of Indenture Trust Estate...........................13
SECTION 3.07.  Performance of Obligations; Servicing of Student Loans.........14
SECTION 3.08.  Negative Covenants.............................................16
SECTION 3.09.  Annual Statement as to Compliance..............................16
SECTION 3.10.  Issuer May Consolidate, etc., Only on Certain Terms............17
SECTION 3.11.  Successor or Transferee........................................19

                                      -i-
<PAGE>

SECTION 3.12.  No Other Business..............................................19
SECTION 3.13.  No Borrowing...................................................19
SECTION 3.14.  Obligations of Servicer and Administrator......................19
SECTION 3.15.  Guarantees, Loans, Advances and Other Liabilities..............19
SECTION 3.16.  Capital Expenditures...........................................19
SECTION 3.17.  Restricted Payments............................................19
SECTION 3.18.  Notice of Events of Default....................................20
SECTION 3.19.  Further Instruments and Acts...................................20
SECTION 3.20.  Removal of Administrator.......................................20

                                   ARTICLE IV

                           Satisfaction and Discharge

SECTION 4.01.  Satisfaction and Discharge of Indenture........................20
SECTION 4.02.  Application of Trust Money.....................................22
SECTION 4.03.  Repayment of Monies Held by Paying Agent.......................22
SECTION 4.04.  Auction of Financed Student Loans..............................22

                                    ARTICLE V

                                    Remedies

SECTION 5.01.  Events of Default..............................................23
SECTION 5.02.  Acceleration of Maturity; Rescission and Annulment.............24
SECTION 5.03.  Collection of Indebtedness and Suits for Enforcement
                 by Indenture Trustee.........................................25
SECTION 5.04.  Remedies; Priorities...........................................27
SECTION 5.05.  Optional Preservation of the Indenture Trust Estate............29
SECTION 5.06.  Limitation of Suits............................................29
SECTION 5.07.  Unconditional Rights of Noteholders to Receive
                 Principal and Interest.......................................30
SECTION 5.08.  Restoration of Rights and Remedies.............................30
SECTION 5.09.  Rights and Remedies Cumulative.................................30
SECTION 5.10.  Delay or Omission Not a Waiver.................................30
SECTION 5.11.  Control by Noteholders.........................................31
SECTION 5.12.  Waiver of Past Defaults........................................31
SECTION 5.13.  Undertaking for Costs..........................................32
SECTION 5.14.  Waiver of Stay or Extension Laws...............................32
SECTION 5.15.  Action on Notes................................................32
SECTION 5.16.  Performance and Enforcement of Certain Obligations.............32

                                      -ii-
<PAGE>

                                   ARTICLE VI

                              The Indenture Trustee

SECTION 6.01.  Duties of Indenture Trustee....................................33
SECTION 6.02.  Rights of Indenture Trustee....................................35
SECTION 6.03.  Individual Rights of Indenture Trustee.........................35
SECTION 6.04.  Indenture Trustee's Disclaimer.................................36
SECTION 6.05.  Notice of Defaults.............................................36
SECTION 6.06.  Reports by Indenture Trustee to Noteholders....................36
SECTION 6.07.  Compensation and Indemnity.....................................36
SECTION 6.08.  Replacement of Indenture Trustee...............................37
SECTION 6.09.  Successor Indenture Trustee by Merger..........................38
SECTION 6.10.  Appointment of Co-Trustee or Separate Trustee..................39
SECTION 6.11.  Eligibility; Disqualification..................................40
SECTION 6.12.  Preferential Collection of Claims Against Issuer...............40
SECTION 6.13.  Declaration of Default or Termination Event under any
                 Swap Agreements..............................................40

                                   ARTICLE VII

                         Noteholders' Lists and Reports

SECTION 7.01.  Issuer to Furnish Indenture Trustee Names and Addresses
                 of Noteholders...............................................40
SECTION 7.02.  Preservation of Information; Communications to
                 Noteholders..................................................41
SECTION 7.03.  Reports by Issuer..............................................41

                                  ARTICLE VIII

                      Accounts, Disbursements and Releases

SECTION 8.01.  Collection of Money............................................42
SECTION 8.02.  Trust Accounts.................................................42
SECTION 8.03.   General Provisions Regarding Accounts.........................46
SECTION 8.04.  Release of Indenture Trust Estate..............................46
SECTION 8.05.  Opinion of Counsel.............................................47

                                   ARTICLE IX

                             Supplemental Indentures

SECTION 9.01.  Supplemental Indentures Without Consent of Noteholders.........47
SECTION 9.02.  Supplemental Indentures with Consent of Noteholders............49
SECTION 9.03.  Execution of Supplemental Indentures...........................50
SECTION 9.04.  Effect of Supplemental Indenture...............................50

                                      -iii-
<PAGE>

SECTION 9.05.  Conformity with Trust Indenture Act............................51
SECTION 9.06.  Reference in Notes to Supplemental Indentures..................51

                                    ARTICLE X

                               Redemption of Notes

SECTION 10.01.  Redemption....................................................51
SECTION 10.02.  Form of Redemption Notice.....................................52
SECTION 10.03.  Notes Payable on Redemption Date..............................53

                                   ARTICLE XI

                                  Miscellaneous

SECTION 11.01.  Compliance Certificates and Opinions..........................53
SECTION 11.02.  Form of Documents Delivered to Indenture Trustee..............55
SECTION 11.03.  Acts of Noteholders...........................................56
SECTION 11.04.  Notices to Indenture Trustee, Issuer, Swap
                  Counterparties and Rating Agencies..........................56
SECTION 11.05.  Notices to Noteholders; Waiver................................57
SECTION 11.06.  Alternate Payment and Notice Provisions.......................57
SECTION 11.07.  Conflict with Trust Indenture Act.............................58
SECTION 11.08.  Effect of Headings and Table of Contents......................58
SECTION 11.09.  Successors and Assigns........................................58
SECTION 11.10.  Separability..................................................58
SECTION 11.11.  Benefits of Indenture.........................................58
SECTION 11.12.  Reserved......................................................58
SECTION 11.13.  Governing Law.................................................59
SECTION 11.14.  Counterparts..................................................59
SECTION 11.15.  Recording of Indenture........................................59
SECTION 11.16.  Trust Obligations.............................................59
SECTION 11.17.  No Petition...................................................59
SECTION 11.18.  Inspection....................................................60
SECTION 11.19.  Consents......................................................60

EXHIBIT A-1 - Form of Class A-1 Note
EXHIBIT A-2 - Form of Class A-2 Note
EXHIBIT A-3 - Form of Subordinate Note
EXHIBIT B - Depository Agreement

                                      -iv-
<PAGE>

      INDENTURE dated as of January 1, 2000, between SMS STUDENT LOAN TRUST
2000-A, a Delaware trust (the "Issuer"), and BANKERS TRUST COMPANY, a New York
banking corporation, as trustee and not in its individual capacity (the
"Indenture Trustee").

      Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the holders of the Issuer's Class A-1 Floating
Rate Asset-Backed Senior Notes (the "Class A-1 Notes"), Class A-2 Floating Rate
Asset-Backed Senior Notes (the "Class A-2 Notes" and, together with the Class
A-1 Notes, the "Senior Notes") and Floating Rate Asset-Backed Subordinate Notes
(the "Subordinate Notes" and, together with the Senior Notes, the "Notes"):

                                 GRANTING CLAUSE

      The Issuer (and, with respect to the legal title to the Financed Student
Loans, the Eligible Lender Trustee) hereby Grants to the Indenture Trustee at
the Closing Date, as trustee for the benefit of the Noteholders and any Swap
Counterparties, all the Issuer's and the Eligible Lender Trustee's right, title
and, interest in and to, but none of its obligations under, the following:

            (a) the Financed Student Loans, and all obligations of the Obligors
      thereunder including all monies paid thereunder on and after the Cutoff
      Date net of interest accrued thereunder prior to the Cutoff Date that is
      not to be capitalized (or, in the case of Prefunded Loans, New Loans or
      Serial Loans, on and after the related Subsequent Cutoff Date, in the case
      of Consolidation Loans, on and after the related date of origination, in
      the case of Consolidation Loans the principal balances of which have been
      increased by the principal balances of any related Add-on Consolidation
      Loans, on and after the related Add-on Consolidation Loan Funding Date,
      and in the case of Qualified Substitute Student Loans, on and after the
      date of assignment thereof to the Issuer);

            (b) the Loan Sale Agreement, including the right of the Issuer to
      cause the Seller to repurchase or substitute for, Financed Student Loans
      from the Issuer under circumstances described therein;

            (c) the Servicing Agreement, including the right of the Issuer to
      cause the Servicer to purchase Financed Student Loans from the Issuer
      under the circumstances described therein;

            (d) each Guarantee Agreement, including the right of the Issuer to
      cause the related Guarantor to make Guarantee Payments in respect of the
      Financed Student Loans;

            (e) the Administration Agreement;

            (f) any Swap Agreements;

                                      -1-
<PAGE>

            (g) all funds on deposit from time to time in the Trust Accounts,
      including the Reserve Account Initial Deposit and the Prefunding Account
      Closing Date Deposit, and in all investments and proceeds thereof
      (including all income thereon); and

            (h) all present and future claims, demands, causes and choses in
      action in respect of any or all of the foregoing and all payments on or
      under and all proceeds of every kind and nature whatsoever in respect of
      any or all of the foregoing, including all proceeds of the conversion,
      voluntary or involuntary, into cash or other liquid property, all cash
      proceeds, accounts, accounts receivable, notes, drafts, acceptances,
      chattel paper, checks, deposit accounts, insurance proceeds, condemnation
      awards, rights to payment of any and every kind and other forms of
      obligations and receivables, instruments and other property which at any
      time constitute all or part of or are included in the proceeds of any of
      the foregoing (collectively, the "Collateral").

      The foregoing Grant is made in trust to secure the payment of principal of
and interest on, and any other amounts owing in respect of, the Notes, equally
and ratably without prejudice, priority or distinction, and under any Swap
Agreements, and to secure compliance with the provisions of this Indenture, all
as provided in this Indenture.

      The Indenture Trustee, as Indenture Trustee on behalf of the Noteholders
and any Swap Counterparties, acknowledges such Grant, accepts the trusts under
this Indenture in accordance with the provisions of this Indenture and agrees to
perform its duties required in this Indenture to the best of its ability to the
end that the interests of the Noteholders and any Swap Counterparties may be
adequately and effectively protected.

                                    ARTICLE I

                              Definitions and Usage

      SECTION 1.01. Definitions and Usage. Except as otherwise specified herein
or as the context may otherwise require, capitalized terms used but not defined
herein are defined in Appendix A to the Administration Agreement, dated as of
January 1, 2000, among the Issuer, USA Group Secondary Market Services, Inc., as
Administrator, and the Indenture Trustee, which also contains rules as to usage
that shall be applicable herein.

      SECTION 1.02. Incorporation by Reference of Trust Indenture Act. Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms used
in this Indenture have the following meanings:

      "Commission" means the Securities and Exchange Commission.

      "indenture securities" means the Notes.

                                      -2-
<PAGE>

      "indenture security holder" means a Noteholder.

      "indenture to be qualified" means this Indenture.

      "indenture trustee" or "institutional trustee" means the Indenture
Trustee.

      "obligor" on the indenture securities means the Issuer and any other
obligor on the indenture securities.

      All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rule have
the meaning assigned to them by such definitions.

                                   ARTICLE II

                                    The Notes

      SECTION 2.01. Form. The Class A-1 Notes, the Class A-2 Notes and the
Subordinate Notes, together with the Indenture Trustee's certificate of
authentication, shall be in substantially the form set forth in Exhibits A-1,
A-2 and A-3, respectively, 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 such 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 officers executing such Notes, as
evidenced by their execution of such Notes.

      Each Note shall be dated the date of its authentication. The terms of the
Notes set forth in Exhibits A-1, A-2 and A-3 are part of the terms of this
Indenture.

      SECTION 2.02. Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile.

      Notes bearing the manual or facsimile signature of individuals who were at
any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes.

      The Indenture Trustee shall upon Issuer Order authenticate and deliver
Class A-1 Notes for original issue in an aggregate principal amount of
$309,250,000, Class A-2 Notes for original issue

                                      -3-
<PAGE>

in the aggregate principal amount of $848,750,000, and Subordinate Notes for
original issue in an aggregate principal amount of $42,000,000. The aggregate
principal amount of Class A-1 Notes, Class A-2 Notes and Subordinate Notes
outstanding at any time may not exceed such respective amounts except as
provided in Section 2.05.

      Each Note shall be dated the date of its authentication. The Senior Notes
shall be issuable as registered Book-Entry Notes in the minimum denomination of
$1,000 and in integral multiples of $1,000 in excess thereof. The Subordinate
Notes shall be issuable as registered, Book-Entry Notes in the minimum
denomination of $500,000 and in integral multiples of $1,000 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 herein executed by the
Indenture Trustee by the manual signature of one of its authorized signatories,
and such certificate upon any Note shall be conclusive evidence, and the only
evidence, that such Note has been duly authenticated and delivered hereunder.

      SECTION 2.03. Temporary Notes. Pending the preparation of Definitive
Notes, the Issuer may execute, and upon receipt of an Issuer Order the Indenture
Trustee shall authenticate and deliver, temporary Notes which are printed,
lithographed, typewritten, mimeographed or otherwise produced, of the tenor of
the Definitive Notes in lieu of which they are issued and with such variations
not inconsistent with the terms of this Indenture as the officers executing such
Notes may determine, as evidenced by their execution of such Notes.

      If temporary Notes are issued, the Issuer will cause Definitive Notes to
be prepared without unreasonable delay. After the preparation of Definitive
Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
surrender of the temporary Notes at the office or agency of the Issuer to be
maintained as provided in Section 3.02, without charge to the Noteholder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer shall
execute and the Indenture Trustee shall authenticate and deliver in exchange
therefor a like principal amount of Definitive Notes of authorized
denominations. Until so exchanged, the temporary Notes shall in all respects be
entitled to the same benefits under this Indenture as Definitive Notes.

      SECTION 2.04. Registration; Registration of Transfer and Exchange. The
Issuer shall cause to be kept a register (the "Note Register") in which, subject
to such reasonable regulations as it may prescribe and the restrictions on
transfers of the Subordinate Notes set forth herein, the Issuer shall provide
for the registration of Notes and the registration of transfers of Notes. The
Indenture Trustee shall be "Note Registrar" for the purpose of registering Notes
and transfers of Notes as herein provided. Upon any resignation of any Note
Registrar, the Issuer shall promptly appoint a successor or, if it elects not to
make such an appointment, assume the duties of Note Registrar.

      If a Person other than the Indenture Trustee is appointed by the Issuer as
Note Registrar, the Issuer will give the Indenture Trustee prompt written notice
of the appointment of such Note Registrar and of the location, and any change in
the location, of the Note Register, and the Indenture Trustee shall have the
right to inspect the Note Register at all reasonable times and to obtain copies

                                      -4-
<PAGE>

thereof, and the Indenture Trustee shall have the right to rely upon a
certificate executed on behalf of the Note Registrar by an Executive Officer
thereof as to the names and addresses of the Noteholders and the principal
amounts and number of such Notes.

      Subject to the restrictions and limitations set forth below, upon
surrender for registration of transfer of any Note at the office or agency of
the Issuer to be maintained as provided in Section 3.02, if the requirements of
Section 8-401(1) of the UCC are met, the Issuer shall execute, and the Indenture
Trustee shall authenticate and the Noteholder shall obtain from the Indenture
Trustee, in the name of the designated transferee or transferees, one or more
new Notes in any authorized denominations, of a like aggregate principal amount.

      The Subordinate Notes have not been and will not be registered under the
Securities Act and will not be listed on any exchange. No transfer of a
Subordinate Note shall be made unless such transfer is made pursuant to an
effective registration statement under the Securities Act and any applicable
state securities laws or is exempt from the registration requirements under the
Securities Act and such state securities laws. No transfer of a Subordinate Note
shall be made unless the proposed transferee is a "qualified institutional
buyer" as such term is defined in Rule 144A under the Securities Act. By
accepting a Subordinate Note, a transferee will be deemed to represent that it
is a "qualified institutional buyer". The Seller shall cause the Administrator
to provide to any Noteholder and any prospective transferee of a Subordinate
Note designated by any such Noteholder information necessary to satisfy the
condition to eligibility set forth in Rule 144A(d)(4) under the Securities Act
for transfer of any such Subordinate Note without registration thereof under the
Securities Act pursuant to the registration exemption provided by Rule 144A.
Each Noteholder desiring to effect such a transfer of a Subordinate Note shall,
and does hereby agree to, indemnify the Issuer, the Eligible Lender Trustee, the
Indenture Trustee and the Seller against any liability that may result if the
transfer is not so exempt or is not made in accordance with federal and state
securities laws.

      The Issuer shall cause each Subordinate Note to contain a legend stating
that transfer of the Subordinate Notes is subject to certain restrictions and
referring prospective purchasers of the Subordinate Notes to this Section 2.04
with respect to such restrictions. The Issuer shall cause each Subordinate Note
to contain deemed representations by transferees.

      At the option of the Noteholder, Notes may be exchanged for other Notes of
the same class in any authorized denominations, of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or agency.
Whenever any Notes are so surrendered for exchange, if the requirements of
Section 8-401(1) of the UCC are met, the Issuer shall execute, and the Indenture
Trustee shall authenticate and, the Noteholder shall obtain from the Indenture
Trustee, the Notes which the Noteholder making the exchange is entitled to
receive.

      All Notes issued upon any registration of transfer or exchange of Notes
shall be the valid obligations of the Issuer, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

                                      -5-
<PAGE>

      Every Note presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument of
transfer in form satisfactory to the Note Registrar duly executed by, the
Noteholder thereof or such Noteholder's attorney duly authorized in writing,
with such signature guaranteed by an "eligible guarantor institution" meeting
the requirements of the Note Registrar, which requirements include membership or
participation in Securities Transfer Agent's Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Note Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Exchange Act.

      No service charge shall be made to a Noteholder for any registration of
transfer or exchange of Notes, but the Indenture Trustee may require payment of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of Notes,
other than exchanges pursuant to Section 2.03 or 9.06 not involving any
transfer.

      The preceding provisions of this Section notwithstanding, the Issuer shall
not be required to make and the Note Registrar need not register transfers or
exchanges of Notes selected for redemption or of any Note for a period of 15
days preceding the due date for any payment with respect to such Note.

      SECTION 2.05. Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee such security or
indemnity as may be required by it to hold the Issuer and the Indenture Trustee
harmless, then, in the absence of notice to the Issuer, the Note Registrar or
the Indenture Trustee that such Note has been acquired by a bona fide purchaser,
and provided that the requirements of Section 8-405 of the UCC are met, the
Issuer shall execute and upon its request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note of the same category;
provided, however, that if any such destroyed, lost or stolen Note, but not a
mutilated Note, shall have become or within 15 days shall be due and payable, or
shall have been called for redemption, instead of issuing a replacement Note,
the Issuer may pay such destroyed, lost or stolen Note when so due or payable or
upon the Redemption Date without surrender thereof. If, after the delivery of
such replacement Note or payment of a destroyed, lost or stolen Note pursuant to
the proviso to the preceding sentence, a bona fide purchaser of the original
Note in lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer, the Indenture Trustee shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered
or any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person, except a bona
fide purchaser, and shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or expense incurred by
the Issuer, the Indenture Trustee in connection therewith.

      Upon the issuance of any replacement Note under this Section, the Issuer
may require the payment by the Noteholder thereof of a sum sufficient to cover
any tax or other governmental

                                      -6-
<PAGE>

charge that may be imposed in relation thereto and any other reasonable expenses
(including the fees and expenses of the Indenture Trustee) connected therewith.

      Every replacement Note issued pursuant to this Section in replacement of
any mutilated, destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Issuer, whether or not the mutilated,
destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

      The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes.

      SECTION 2.06. Persons Deemed Owner. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee, and any
agent of the Issuer, or the Indenture Trustee may treat the Person in whose name
any Note is registered (as of the day of determination) as the owner of such
Note for the purpose of receiving payments of principal of, interest, if any, on
such Note and for all other purposes whatsoever, whether or not such Note be
overdue, and none of the Issuer, or the Indenture Trustee or any agent of the
Issuer or the Indenture Trustee shall be affected by notice to the contrary.

      SECTION 2.07. Payment of Principal and Interest; Defaulted Interest. (a)
The Notes shall accrue interest as provided in the forms of Class A-1 Note,
Class A-2 Note and Subordinate Note set forth in Exhibits A-1, A-2 and A-3,
respectively, and such interest shall be payable on each Quarterly Payment Date
as specified therein, subject, in each case, to Section 3.01. 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 Quarterly Payment Date shall
be paid to the Person in whose name such Note (or one or more Predecessor Notes)
is registered on the Record Date by wire transfer if such Person holds Notes in
an aggregate original principal amount in excess of $1,000,000 and provides
appropriate written instructions to the Indenture Trustee no later than such
Record Date, and otherwise by check mailed first-class, postage prepaid to such
Person's address as it appears on the Note Register on such Record Date, except
that, unless Definitive Notes have been issued pursuant to Section 2.12, with
respect to Senior Notes registered on the Record Date in the name of the nominee
of the Clearing Agency (initially, such nominee to be Cede & Co.), payment will
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 Quarterly Payment Date or on the Class
A-1 Note Final Maturity Date, the Class A-2 Note Final Maturity Date or the
Subordinate Note Final Maturity Date, as the case may be, which shall be payable
as provided below. The funds represented by any such checks returned undelivered
shall be held in accordance with Section 3.03.

      (b) The principal of each Note shall be payable in installments on each
Quarterly Payment Date as provided in the forms of the Class A-1 Notes, Class
A-2 Notes and Subordinate Note set forth in Exhibits A-1, A-2 and A-3,
respectively. Notwithstanding the foregoing, the entire unpaid principal amount
of the Notes shall be due and payable, if not previously paid, on the date

                                      -7-
<PAGE>

on which an Event of Default shall have occurred, if the Indenture Trustee or
the Noteholders 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 5.02. All principal payments on
each class of Notes shall be made pro rata to the Noteholders of such class. The
Indenture Trustee shall notify the Person in whose name a Note is registered at
the close of business on the Record Date preceding the Quarterly Payment 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 Quarterly Payment 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. Notices in connection with
redemptions of Notes shall be mailed to Noteholders as provided in Section
10.02.

      (c) If the Issuer defaults in a payment of interest on the Notes, the
Issuer shall pay defaulted interest (plus interest on such defaulted interest to
the extent lawful) at the applicable Note Rate in any lawful manner. The Issuer
may pay such defaulted interest to the Persons who are Noteholders on a
subsequent special record date, which date shall be at least five Business Days
prior to the payment date. The Issuer shall fix or cause to be fixed any such
special record date and payment date, and, at least 15 days before any such
special record date, the Issuer shall mail to the Indenture Trustee a notice
which the Indenture Trustee will, as soon as practicable, distribute to each
Noteholder that states the special record date, the payment date and the amount
of defaulted interest to be paid.

      (d) Reserved

      SECTION 2.08. Cancellation. All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Indenture Trustee, be delivered to the Indenture Trustee
and shall be promptly cancelled by the Indenture Trustee. The Issuer may at any
time deliver to the Indenture Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Issuer may have acquired in any
manner whatsoever, and all Notes so delivered shall be promptly cancelled by the
Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange for
any Notes cancelled as provided in this Section, except as expressly permitted
by this Indenture. All cancelled Notes may be held or disposed of by the
Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time, unless the Issuer shall direct by an Issuer Order that
they be returned to it and so long as such Issuer Order is timely and the Notes
have not been previously disposed of by the Indenture Trustee.

      SECTION 2.09. Release of Collateral. Subject to Section 11.01 and the
terms of the Basic Documents, the Indenture Trustee shall release property from
the lien of this Indenture only upon receipt by it and any Swap Counterparties
of an Issuer Request accompanied by an Officers' Certificate of the Issuer, an
Opinion of Counsel and Independent Certificates in accordance with TIA ss.ss.
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.

                                      -8-
<PAGE>

      SECTION 2.10. Book-Entry Notes. The Class A-1 Notes, Class A-2 Notes and
the Subordinate Notes, upon original issuance, will be issued in the form of
typewritten Notes representing the Book-Entry Notes, to be delivered to The
Depository Trust Company, the initial Clearing Agency, by, or on behalf of, the
Issuer. Such Notes shall initially be registered on the Note Register in the
name of Cede & Co., the nominee of the initial Clearing Agency, and no Note
Owner will receive a Definitive Note (as defined below) representing such Note
Owner's interest in such Book-Entry Note, except as provided in Section 2.12.
Unless and until definitive, fully registered Notes (the "Definitive Notes")
have been issued to Note Owners pursuant to Section 2.12:

                  (i) the provisions of this Section shall be in full force and
      effect;

                  (ii) the Note Registrar and the Indenture Trustee may deal
      with the Clearing Agency for all purposes (including the payment of
      principal of and interest and other amounts on the Book-Entry Notes) as
      the authorized representative of the Note Owners;

                  (iii) to the extent that the provisions of this Section
      conflict with any other provisions of this Indenture, the provisions of
      this Section shall control;

                  (iv) the rights of Note Owners shall be exercised only through
      the Clearing Agency and shall be limited to those established by law and
      agreements between such Note Owners and the Clearing Agency and/or the
      Clearing Agency Participants pursuant to the Note Depository Agreement.
      Unless and until Definitive Notes are issued pursuant to Section 2.12, the
      initial Clearing Agency will make book-entry transfers among the Clearing
      Agency Participants and receive and transmit payments of principal of and
      interest and other amounts on the Book-Entry Notes to such Clearing Agency
      Participants; and

                  (v) whenever this Indenture requires or permits actions to be
      taken based upon instructions or directions of Noteholders of Notes
      evidencing a specified percentage of the Outstanding Amount of the Notes,
      the Clearing Agency shall be deemed to represent such percentage only to
      the extent that it has received written instructions to such effect from
      Note Owners and/or Clearing Agency Participants owning or representing,
      respectively, such required percentage of the beneficial interest in the
      Notes and has delivered such written instructions to the Indenture
      Trustee.

      SECTION 2.11. Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to Note Owners pursuant to Section
2.12, the Indenture Trustee shall give all such notices and communications
specified herein to be given to Noteholders of the Senior Notes to the Clearing
Agency.

      SECTION 2.12. Definitive Notes. If (i) the Administrator advises the
Indenture Trustee in writing that the Clearing Agency is no longer willing or
able to properly discharge its

                                      -9-
<PAGE>

responsibilities with respect to the Book-Entry Notes, and the Administrator is
unable to locate a qualified successor, (ii) the Administrator at its option
advises the Indenture Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency or (iii) after the occurrence of
an Event of Default, a Servicer Default or an Administrator Default, Note Owners
representing beneficial interests aggregating at least a majority of the
Outstanding Amount of the Book-Entry Notes advise the Clearing Agency (which
shall then notify the Indenture Trustee in writing) in writing that the
continuation of a book-entry system through the Clearing Agency is no longer in
the best interests of the Note Owners, then the Indenture Trustee will cause the
Clearing Agency to notify all Note Owners, through the Clearing Agency, of the
occurrence of any such event and of the availability of Definitive Notes to Note
Owners requesting the same. Upon surrender to the Indenture Trustee of the
typewritten Notes representing the Book-Entry Notes by the Clearing Agency,
accompanied by registration instructions, the Issuer shall execute and the
Indenture Trustee shall authenticate the Definitive Notes in accordance with the
instructions of the Clearing Agency. None of the Issuer, the Note Registrar or
the Indenture Trustee shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be fully protected in
relying on, such instructions. Upon the issuance of Definitive Notes, the
Indenture Trustee shall recognize the holders of the Definitive Notes as
Noteholders.

      SECTION 2.13. Reserved

                                   ARTICLE III

                                    Covenants

      SECTION 3.01. Payment to Noteholders. The Issuer will duly and punctually
pay the principal of interest, if any, on the Notes in accordance with the terms
of the Notes and this Indenture. Without limiting the foregoing, subject to
Section 8.02(d), the Issuer will cause to be distributed to the Senior
Noteholders and the Subordinate Noteholders in accordance with the
Administration Agreement and Section 8.02 hereof that portion of the amounts on
deposit in the Trust Accounts on a Quarterly Payment Date which the Noteholders
are entitled to receive pursuant to the Administration Agreement. Amounts
properly withheld under the Code by any Person from a payment to any Noteholder
of interest and/or principal shall be considered as having been paid by the
Issuer to such Noteholder for all purposes of this Indenture.

      SECTION 3.02. Maintenance of Office or Agency. The Issuer will maintain in
the Borough of Manhattan, The City of New York, an office or agency where Notes
may be surrendered for registration of transfer or exchange, and where notices
and demands to or upon the Issuer in respect of the Notes and this Indenture may
be served. The Issuer hereby initially appoints the Indenture Trustee to serve
as its agent for the foregoing purposes. The Issuer will give prompt written
notice to the Indenture Trustee of the location, and of any change in the
location, of any such office or agency. If at any time the Issuer shall fail to
maintain any such office or agency or shall fail to furnish the Indenture
Trustee with the address thereof, such surrenders, notices and demands may be
made or served at the Corporate Trust Office, and the Issuer hereby appoints the
Indenture Trustee as its agent to receive all such surrenders, notices and
demands.

                                      -10-
<PAGE>

      SECTION 3.03. Money for Payments to Be Held in Trust. As provided in
Section 8.02, all payments of amounts due and payable with respect to any Notes
that are to be made from amounts distributed from the Collection Account or any
other Trust Account shall be made on behalf of the Issuer by the Indenture
Trustee or by another Paying Agent, and no amounts so distributed for payments
of Notes shall be paid over to the Issuer except as provided in this Section.

      On or before the Business Day next preceding each Quarterly Payment Date
and Redemption Date, the Issuer shall distribute or cause to be distributed to
the Indenture Trustee (or any other Paying Agent) an aggregate sum sufficient to
pay the amounts then becoming due under the Notes, such sum to be held in trust
for the benefit of the Persons entitled thereto and (unless the Paying Agent is
the Indenture Trustee) shall promptly notify the Indenture Trustee and any Swap
Counterparties of its action or failure so to act.

      The Issuer will cause each Paying Agent other than the Indenture Trustee
to execute and deliver to the Indenture Trustee an instrument in which such
Paying Agent shall agree with the Indenture Trustee (and if the Indenture
Trustee acts as Paying Agent, it hereby so agrees), subject to the provisions of
this Section, that such Paying Agent will:

                  (i) hold all sums held by it for the payment of amounts due
      with respect to the Notes in trust for the benefit of the Persons entitled
      thereto until such sums shall be paid to such Persons or otherwise
      disposed of as herein provided and pay such sums to such Persons as herein
      provided;

                  (ii) give the Indenture Trustee and any Swap Counterparties
      written notice of any default by the Issuer of which it has actual
      knowledge (or any other obligor upon the Notes) in the making of any
      payment required to be made with respect to the Notes;

                  (iii) at any time during the continuance of any such default,
      upon the written request of the Indenture Trustee, forthwith pay to the
      Indenture Trustee all sums so held in trust by such Paying Agent;

                  (iv) immediately resign as a Paying Agent and forthwith pay to
      the Indenture Trustee all sums held by it in trust for the payment of
      Notes if at any time it ceases to meet the standards required to be met by
      a Paying Agent at the time of its appointment; and

                  (v) comply with all requirements of the Code with respect to
      the withholding from any payments made by it on any Notes of any
      applicable withholding taxes imposed thereon and with respect to any
      applicable reporting requirements in connection therewith.

      The Issuer may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, by Issuer Order direct
any Paying Agent to pay to the

                                      -11-
<PAGE>

Indenture Trustee all sums held in trust by such Paying Agent, such sums to be
held by the Indenture Trustee upon the same trusts as those upon which the sums
were held by such Paying Agent; and upon such payment by any Paying Agent to the
Indenture Trustee, such Paying Agent shall be released from all further
liability with respect to such money.

      Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for two years
after such amount has become due and payable shall be discharged from such trust
and be paid to the Issuer on Issuer Request; and the Noteholder thereof shall
thereafter, as an unsecured general creditor, look only to the Issuer for
payment thereof (but only to the extent of the amounts so paid to the Issuer),
and all liability of the Indenture Trustee or such Paying Agent with respect to
such trust money shall thereupon cease; provided, however, that the Indenture
Trustee or such Paying Agent, before being required to make any such repayment,
shall at the expense and direction of the Issuer cause to be published once, in
a newspaper published in the English language, customarily published on each
Business Day and of general circulation in The City of New York, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Issuer. The Indenture
Trustee shall also adopt and employ, at the expense of the Issuer, any other
reasonable means of notification of such repayment (including mailing notice of
such repayment to Noteholders whose Notes have been called but have not been
surrendered for redemption or whose right to or interest in monies due and
payable but not claimed is determinable from the records of the Indenture
Trustee or of any Paying Agent, at the last address of record for each such
Noteholder).

      SECTION 3.04. Existence. The Issuer will keep in full effect its
existence, rights and franchises as a trust under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other State or of the United States of America,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Collateral and each other
instrument or agreement included in the Indenture Trust Estate.

      SECTION 3.05. Protection of Indenture Trust Estate. The Issuer will from
time to time execute and deliver all such supplements and amendments hereto and
all such financing statements, continuation statements, instruments of further
assurance and other instruments, and will take such other action necessary or
advisable to:

                  (i) maintain or preserve the lien and security interest (and
      the priority thereof) of this Indenture or carry out more effectively the
      purposes hereof;

                  (ii) perfect, publish notice of or protect the validity of any
      Grant made or to be made by this Indenture;

                  (iii) enforce any of the Collateral; or

                                      -12-
<PAGE>

                  (iv) preserve and defend title to the Indenture Trust Estate
      and the rights of the Indenture Trustee, any Swap Counterparties and the
      Noteholders in such Indenture Trust Estate against the claims of all
      persons and parties. It shall be the responsibility of the Issuer to
      prepare such instruments.

      The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument required to be executed pursuant to this Section.

      SECTION 3.06. Opinions as to Indenture Trust Estate. (a) On the Closing
Date, the Issuer shall furnish to the Indenture Trustee and any Swap
Counterparties 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 indentures supplemental 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 April 30 in each calendar year, beginning in 2001, the
Issuer shall furnish to the Indenture Trustee and any Swap Counterparties an
Opinion of Counsel either 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 indentures supplemental 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 indentures supplemental 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 April 30 in
the following calendar year.

      SECTION 3.07. Performance of Obligations; Servicing of Student Loans. (a)
The Issuer will not take any action and will use its best efforts not to permit
any action to be taken by others that would release any Person from any of such
Person's material covenants or obligations under any instrument or agreement
included in the Indenture Trust Estate or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
expressly provided in this Indenture, the Loan Sale Agreement, the Servicing
Agreement or such other instrument or agreement.

      (b) The Issuer may contract with other Persons to assist it in performing
its duties under this Indenture, and any performance of such duties by a Person
identified to the Indenture Trustee and any Swap Counterparties in an Officers'
Certificate of the Issuer shall be deemed to be action

                                      -13-
<PAGE>

taken by the Issuer. Initially, the Issuer has contracted with the Servicer and
the Administrator to assist the Issuer in performing its duties under this
Indenture.

      (c) The Issuer will punctually perform and observe all its obligations and
agreements contained in this Indenture, the other Basic Documents and in the
instruments and agreements included in the Indenture Trust Estate, including
filing or causing to be filed all UCC financing statements and continuation
statements required to be filed by the terms of this Indenture, the Loan Sale
Agreement and the Servicing Agreement in accordance with and within the time
periods provided for herein and therein. Except as otherwise expressly provided
therein, the Issuer shall not waive, amend, modify, supplement or terminate any
Basic Document or any provision thereof without the consent of the Indenture
Trustee or the Noteholders of at least a majority of the Outstanding Amount of
the Notes (and, in either such case, any Swap Counterparties).

      (d) If the Issuer shall have knowledge of the occurrence of a Servicer
Default under the Servicing Agreement or an Administrator Default under the
Administration Agreement, the Issuer shall promptly notify the Indenture
Trustee, the Rating Agencies and any Swap Counterparties thereof, and shall
specify in such notice the action, if any, the Issuer is taking with respect to
such default. If a Servicer Default shall arise from the failure of the Servicer
to perform any of its duties or obligations under the Servicing Agreement with
respect to the Financed Student Loans, the Issuer shall take all reasonable
steps available to it to enforce its rights under the Basic Documents in respect
of such failure.

      (e) As promptly as possible after the giving of notice of termination to
the Servicer of the Servicer's rights and powers pursuant to Section 6.01 of the
Servicing Agreement, the Issuer shall appoint a successor servicer (the
"Successor Servicer"), and such Successor Servicer shall accept its appointment
by a written assumption in a form acceptable to the Indenture Trustee. In the
event that a Successor Servicer has not been appointed and accepted its
appointment at the time when the Servicer ceases to act as Servicer, the
Indenture Trustee without further action shall automatically be appointed the
Successor Servicer. The Indenture Trustee may resign as the Servicer by giving
written notice of such resignation to the Issuer and any Swap Counterparties and
in such event will be released from such duties and obligations, such release
not to be effective until the date a new servicer enters into an agreement with
the Issuer as provided below; provided, however, that nothing herein shall
require or permit the Indenture Trustee to act as Servicer, or otherwise service
the Financed Student Loans, in violation of the Higher Education Act. Upon
delivery of any such notice to the Issuer, the Issuer shall obtain a new
servicer as the Successor Servicer under the Servicing Agreement. Any Successor
Servicer other than the Indenture Trustee shall (i) be an established
institution (A) that satisfies any requirements of the Higher Education Act
applicable to servicers, (B) the appointment of which satisfies the Rating
Agency Condition and (C) the regular business includes the servicing or
administration of student loans and (ii) enter into a servicing agreement with
the Issuer having substantially the same provisions as the provisions of the
Servicing Agreement applicable to the Servicer. If within 60 days after the
delivery of the notice referred to above, the Issuer shall not have obtained
such a new servicer, the Indenture Trustee may appoint, or may petition a court
of competent jurisdiction to appoint, a Successor Servicer; provided, however,
that such right to appoint or to petition for the appointment of any such
Successor Servicer shall in no event relieve the Indenture Trustee from any
obligations

                                      -14-
<PAGE>

otherwise imposed on it under the Basic Documents until such Successor Servicer
has in fact assumed such appointment. In connection with any such appointment,
the Indenture Trustee may make such arrangements for the compensation of such
Successor Servicer as it, any Swap Counterparties and such Successor Servicer
shall agree, subject to the limitations set forth below and in the Servicing
Agreement, and in accordance with Section 6.02 of the Servicing Agreement, the
Issuer shall enter into an agreement with such Successor Servicer for the
servicing of the Financed Student Loans (such agreement to be in form and
substance satisfactory to the Indenture Trustee). If the Indenture Trustee shall
succeed as provided herein to the Servicer's duties as servicer with respect to
the Financed Student Loans, it shall do so in its individual capacity and not in
its capacity as Indenture Trustee and, accordingly, the provisions of Article VI
hereof shall be inapplicable to the Indenture Trustee in its duties as the
successor to the Servicer and the servicing of the Financed Student Loans. In
case the Indenture Trustee shall become successor to the Servicer under the
Servicing Agreement, the Indenture Trustee shall be entitled to appoint as
Servicer any one of its affiliates, provided that such appointment shall not
affect or alter in any way the liability of the Indenture Trustee as a successor
for the performance of the duties and obligations of the Servicer in accordance
with the terms hereof.

      Notwithstanding anything else herein to the contrary, in no event shall
the Indenture Trustee be liable for any servicing fee or for any differential in
the amount of the servicing fee paid hereunder and the amount necessary to
induce any Successor Servicer to act as Successor Servicer under the Servicing
Agreement and the transactions set forth or provided for therein.

      (f) Upon any termination of the Servicer's rights and powers pursuant to
the Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee.
As soon as a Successor Servicer is appointed, the Issuer shall notify the
Indenture Trustee of such appointment, specifying in such notice the name and
address of such Successor Servicer.

      (g) Without derogating from the absolute nature of the assignment granted
to the Indenture Trustee under this Indenture or the rights of the Indenture
Trustee hereunder, the Issuer agrees that it will not, without the prior written
consent of the Indenture Trustee or the Noteholders of at least a majority in
Outstanding Amount of the Notes (and, in either such case, any Swap
Counterparties), amend, modify, waive, supplement, terminate or surrender, or
agree to any amendment, modification, supplement, termination, waiver or
surrender of, the terms of any Collateral or the Basic Documents, except to the
extent otherwise provided in the Servicing Agreement, or waive timely
performance or observance by the Servicer, the Seller, the Issuer, the
Administrator or the Eligible Lender Trustee under the Loan Sale Agreement, the
Servicing Agreement or the Administration Agreement; provided, however, that no
such amendment shall (i) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, distributions that are required to be made
for the benefit of the Noteholders, or (ii) reduce the aforesaid percentage of
the Notes which are required to consent to any such amendment, without the
consent of the Noteholders of all the Outstanding Notes. If any such amendment,
modification, supplement or waiver shall be so consented to, the Issuer agrees,
promptly following a request by the Indenture Trustee or any Swap Counterparty
to do so, to execute and deliver, in its own name and at its own expense, such
agreements, instruments, consents and other documents as the Indenture Trustee
or any Swap Counterparties may deem necessary or appropriate in the
circumstances.

                                      -15-
<PAGE>

      SECTION 3.08. Negative Covenants. So long as any Notes are Outstanding,
the Issuer shall not:

                  (i) except as expressly permitted by this Indenture or any
      other Basic Document, sell, transfer, exchange or otherwise dispose of any
      of the properties or assets of the Issuer, including those included in the
      Indenture Trust Estate, unless directed to do so by the Indenture Trustee
      (which direction the Indenture Trustee shall not give without the prior
      written consent of each of the Rating Agencies);

                  (ii) claim any credit on, or make any deduction from the
      principal or interest payable in respect of, the Notes (other than amounts
      properly withheld from such payments under the Code or applicable state
      law) or assert any claim against any present or former Noteholder by
      reason of the payment of the taxes levied or assessed upon any part of the
      Indenture Trust Estate; or

                  (iii) (A) permit the validity or effectiveness of this
      Indenture 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 with respect
      to the Notes under this Indenture except as may be expressly permitted
      hereby, (B) permit any lien, charge, excise, claim, security interest,
      mortgage or other encumbrance (other than the lien of this Indenture) to
      be created on or extend to or otherwise arise upon or burden the Indenture
      Trust Estate or any part thereof or any interest therein or the proceeds
      thereof (other than tax liens and other liens that arise by operation of
      law, in each case arising solely as a result of an action or omission of
      the related Obligor, and other than as expressly permitted by the Basic
      Documents) or (C) permit the lien of this Indenture not to constitute a
      valid first priority (other than with respect to any such tax or other
      lien) security interest in the Indenture Trust Estate.

         SECTION  3.09.  Annual  Statement  as to  Compliance.  The Issuer  will
deliver to the Indenture  Trustee and any Swap  Counterparties,  within 120 days
after the end of each fiscal year of the Issuer (commencing with the fiscal year
2000), an Officers' Certificate of the Issuer stating that:

                  (i) a review of the activities of the Issuer during such year
      and of performance under this Indenture has been made under such
      Authorized Officers' supervision; and

                  (ii) to the best of such Authorized Officers' knowledge, based
      on such review, the Issuer has complied with all conditions and covenants
      under this Indenture throughout such year, or, if there has been a default
      in the compliance of any such condition or covenant, specifying each such
      default known to such Authorized Officers and the nature and status
      thereof.

      SECTION 3.10. Issuer May Consolidate, etc., Only on Certain Terms. (a) The
Issuer shall not consolidate or merge with or into any other Person, unless:

                                      -16-
<PAGE>

                  (i) the Person (if other than the Issuer) formed by or
      surviving such consolidation or merger shall be a Person organized and
      existing under the laws of the United States of America or any State and
      shall expressly assume, by an indenture supplemental hereto, executed and
      delivered to the Indenture Trustee and any Swap Counterparties, in form
      satisfactory to the Indenture Trustee and any Swap Counterparties, the due
      and punctual payment of the principal of, and interest on and with respect
      to all Notes and the performance or observance of every agreement and
      covenant of this Indenture on the part of the Issuer to be performed or
      observed, all as provided herein;

                  (ii) immediately after giving effect to such transaction, no
      Event of Default shall have occurred and be continuing;

                  (iii) the Rating Agency Condition shall have been satisfied
      with respect to such transaction;

                  (iv) the Issuer shall have received an Opinion of Counsel (and
      shall have delivered copies thereof to the Indenture Trustee and any Swap
      Counterparties) to the effect that such transaction will not have any
      material adverse tax consequence to the Issuer or any Noteholder;

                  (v) any action as is necessary to maintain the lien and
      security interest created by this Indenture shall have been taken; and

                  (vi) the Issuer shall have delivered to the Indenture Trustee
      and any Swap Counterparties an Officers' Certificate of the Issuer and an
      Opinion of Counsel each stating that such consolidation or merger and such
      supplemental indenture comply with this Article III and that all
      conditions precedent herein provided for relating to such transaction have
      been complied with (including any filing required by the Exchange Act).

      (b) The Issuer shall not convey or transfer all or substantially all its
properties or assets, including those included in the Indenture Trust Estate, to
any Person, unless:

                  (i) the Person that acquires by conveyance or transfer the
      properties and assets of the Issuer the conveyance or transfer of which is
      hereby restricted shall (A) be a United States citizen or a Person
      organized and existing under the laws of the United States of America or
      any State, (B) expressly assumes, by an indenture supplemental hereto,
      executed and delivered to the Indenture Trustee, in form satisfactory to
      the Indenture Trustee and any Swap Counterparties, the due and punctual
      payment of the principal of, and interest on and with respect to all Notes
      and the performance or observance of every agreement and covenant of this
      Indenture on the part of the Issuer to be performed or observed, all as
      provided herein, (C) expressly agrees by means of such supplemental
      indenture that all right, title and interest so conveyed or transferred
      shall be subject and subordinate to the rights of Noteholders and any Swap
      Counterparties, (D) unless otherwise provided in such supplemental
      indenture, expressly agrees to indemnify, defend and hold

                                      -17-
<PAGE>

      harmless the Issuer and any Swap Counterparties against and from any loss,
      liability or expense arising under or related to this Indenture and the
      Notes and (E) expressly agrees by means of such supplemental indenture
      that such Person (or if a group of Persons, then one specified Person)
      shall make all filings with the Commission (and any other appropriate
      Person) required by the Exchange Act in connection with the Notes;

                  (ii) immediately after giving effect to such transaction, no
      Default or Event of Default shall have occurred and be continuing;

                  (iii) the Rating Agency Condition shall have been satisfied
      with respect to such transaction;

                  (iv) the Issuer shall have received an Opinion of Counsel (and
      shall have delivered copies thereof to the Indenture Trustee and any Swap
      Counterparties) to the effect that such transaction will not have any
      material adverse tax consequence to the Issuer or any Noteholder;

                  (v) any action as is necessary to maintain the lien and
      security interest created by this Indenture shall have been taken;

                  (vi) the Issuer shall have delivered to the Indenture Trustee
      and any Swap Counterparties an Officers' Certificate of the Issuer and an
      Opinion of Counsel each stating that such conveyance or transfer and such
      supplemental indenture comply with this Article III and that all
      conditions precedent herein provided for relating to such transaction have
      been complied with (including any filing required by the Exchange Act);
      and

                  (vii) any Swap Counterparties shall have given their prior
      written consent.

      SECTION 3.11. Successor or Transferee. (a) Upon any consolidation or
merger of the Issuer in accordance with Section 3.10(a), the Person formed by or
surviving such consolidation or merger (if other than the Issuer) shall succeed
to, and be substituted for, and may exercise every right and power of, the
Issuer under this Indenture with the same effect as if such Person had been
named as the Issuer herein.

      (b) Upon a conveyance or transfer of all the assets and properties of the
Issuer pursuant to Section 3.10(b), SMS Student Loan Trust 2000-A will be
released from every covenant and agreement of this Indenture to be observed or
performed on the part of the Issuer with respect to the Notes immediately upon
the delivery by the Issuer of written notice to the Indenture Trustee stating
that SMS Student Loan Trust 2000-A is to be so released.

      SECTION 3.12. No Other Business. Except as contemplated by this Indenture
or the other Basic Documents, the Issuer shall not engage in any business other
than financing, purchasing, owning, selling and managing the Financed Student
Loans, and originating Consolidation Loans during the Revolving Period, in the
manner contemplated by this Indenture and the other Basic Documents and
activities incidental thereto.

                                      -18-
<PAGE>

      SECTION 3.13. No Borrowing. Except as contemplated by this Indenture or
the other Basic Documents, the Issuer shall not issue, incur, assume, guarantee
or otherwise become liable, directly or indirectly, for any indebtedness except
for the Notes.

      SECTION 3.14. Obligations of Servicer and Administrator. The Issuer shall
cause the Servicer to comply with Sections 3.07, 3.08, 3.09 and 3.10 of the
Servicing Agreement and shall cause the Administrator to comply with Section
2(g) of the Administration Agreement.

      SECTION 3.15. Guarantees, Loans, Advances and Other Liabilities. Except as
contemplated by the Basic Documents or this Indenture, the Issuer shall not make
any loan or advance or credit to, or guarantee (directly or indirectly or by an
instrument having the effect of assuring another's payment or performance on any
obligation or capability of so doing or otherwise), endorse or otherwise become
contingently liable, directly or indirectly, in connection with the obligations,
stocks or dividends of, or own, purchase, repurchase or acquire (or agree
contingently to do so) any stock, obligations, assets or securities of, or any
other interest in, or make any capital contribution to, any other Person.

      SECTION 3.16. Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

      SECTION 3.17. Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Eligible Lender Trustee or any owner of a beneficial interest in
the Issuer or otherwise with respect to any ownership or equity interest or
security in or of the Issuer or to the Servicer or the Administrator, (ii)
redeem, purchase, retire or otherwise acquire for value any such ownership or
equity interest or security or (iii) set aside or otherwise segregate any
amounts for any such purpose; provided, however, that the Issuer may make, or
cause to be made, distributions to the Servicer, the Eligible Lender Trustee,
the Indenture Trustee, the Noteholders, the Administrator, the Seller and the
Company as contemplated by, and to the extent funds are available for such
purpose under, this Indenture, the Loan Sale Agreement, the Servicing Agreement
or the Administration Agreement. The Issuer will not, directly or indirectly,
make payments to or distributions from the Collection Account or the Collateral
Reinvestment Account except in accordance with this Indenture and the other
Basic Documents.

      SECTION 3.18. Notice of Events of Default. The Issuer shall give the
Indenture Trustee, the Rating Agencies and any Swap Counterparties prompt
written notice of each Event of Default hereunder and each default on the part
of the Seller, the Servicer or the Administrator of its obligations under the
Loan Sale Agreement, the Servicing Agreement or the Administration Agreement. In
addition, the Issuer shall deliver to the Indenture Trustee, within five days
after the occurrence thereof, written notice in the form of an Officers'
Certificate of the Issuer of any event which with the giving of notice and the
lapse of time would become an Event of Default under Section 5.01(iii), its
status and what action the Issuer is taking or proposes to take with respect
thereto. The Indenture Trustee shall provide notice to the Noteholders and any
Swap

                                      -19-
<PAGE>

Counterparties of each default or other event of which it receives notice
pursuant to this Section 3.18, promptly after receipt of such Notice.

      SECTION 3.19. Further Instruments and Acts. Upon request of the Indenture
Trustee or any Swap Counterparties, the Issuer will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purpose of this Indenture.

      SECTION 3.20. Removal of Administrator. So long as any Notes are
Outstanding, the Issuer shall not remove the Administrator unless the Rating
Agency Condition shall have been satisfied in connection with such removal.

                                   ARTICLE IV

                           Satisfaction and Discharge

      SECTION 4.01. Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.05, 3.08,
3.10, 3.12, 3.13, 3.15, 3.16 and 3.17 (v) the rights, obligations and immunities
of the Indenture Trustee hereunder (including the rights of the Indenture
Trustee under Section 6.07 and the obligations of the Indenture Trustee under
Section 4.02) and (vi) the rights of Noteholders and any Swap Counterparties as
beneficiaries hereof with respect to the property so deposited with the
Indenture Trustee payable to all or any of them, and the Indenture Trustee, on
demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to the
Notes, when:

                  (A) either

                                    (1) all Notes theretofore authenticated and
                  delivered (other than (i) Notes that have been destroyed, lost
                  or stolen and that have been replaced or paid as provided in
                  Section 2.05 and (ii) Notes for whose payment money has
                  theretofore been deposited in trust or segregated and held in
                  trust by the Issuer and thereafter repaid to the Issuer or
                  discharged from such trust, as provided in Section 3.03) have
                  been delivered to the Indenture Trustee for cancellation; or

                                    (2) all Notes not theretofore delivered to
                  the Indenture Trustee for cancellation

                                                      (i) have become due and
                                    payable,

                                                      (ii) will become due and
                                    payable at the Class A-1 Note Final Maturity
                                    Date, the Class A-2 Note Final Maturity Date
                                    or the

                                      -20-
<PAGE>

                                    Subordinate Note Final Maturity Date, as the
                                    case may be, within one year, or

                                                      (iii) are to be called for
                                    redemption within one year under
                                    arrangements satisfactory to the Indenture
                                    Trustee for the giving of notice of
                                    redemption by the Indenture Trustee in the
                                    name, and at the expense, of the Issuer,

                           and the  Issuer,  in the  case of (i),  (ii) or (iii)
                  above,  has irrevocably  deposited or caused to be irrevocably
                  deposited   with  the   Indenture   Trustee   cash  or  direct
                  obligations of or obligations  guaranteed by the United States
                  of America  (which will mature  prior to the date such amounts
                  are  payable),  in  trust  for  such  purpose,  in  an  amount
                  sufficient  to pay and discharge  the entire  indebtedness  on
                  such Notes not theretofore  delivered to the Indenture Trustee
                  for  cancellation  as of such day of  discharge or when due on
                  the Class A-1 Note  Final  Maturity  Date,  the Class A-2 Note
                  Final  Maturity Date or the  Subordinate  Note Final  Maturity
                  Date, as the case may be;

                                    (B) the Issuer has paid or caused to be paid
                  all other sums payable hereunder and under any Swap Agreements
                  by the Issuer; and

                                    (C) the Issuer has delivered to the
                  Indenture Trustee and any Swap Counterparties an Officers'
                  Certificate of the Issuer, an Opinion of Counsel and (if
                  required by the TIA or the Indenture Trustee) an Independent
                  Certificate from a firm of certified public accountants, each
                  meeting the applicable requirements of Section 11.01(a) and,
                  subject to Section 11.02, each stating that all conditions
                  precedent herein provided for relating to the satisfaction and
                  discharge of this Indenture have been complied with.

      SECTION 4.02. Application of Trust Money. All monies deposited with the
Indenture Trustee pursuant to Section 4.01 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent, as the
Indenture Trustee may determine, to the Noteholders of the particular Notes for
the payment or redemption of which such monies have been deposited with the
Indenture Trustee, of all sums due and to become due thereon for principal and
interest and to any Swap Counterparties of all amounts due to any Swap
Counterparties under any Swap Agreements; but such monies need not be segregated
from other funds except to the extent required herein, in the Servicing
Agreement or the Administration Agreement or required by law.

      SECTION 4.03. Repayment of Monies Held by Paying Agent. In connection with
the satisfaction and discharge of this Indenture with respect to the Notes, all
monies then held by any Paying Agent other than the Indenture Trustee under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Issuer, be paid to the Indenture Trustee to be held and applied according to
Section 3.03 and thereupon such Paying Agent shall be released from all further
liability with respect to such monies.

                                      -21-
<PAGE>

      SECTION 4.04. Auction of Financed Student Loans. The Indenture Trustee
shall offer the Financed Student Loans for sale as of the last day of the
Collection Period that ends in December 2009 and shall accept bids on behalf of
the Issuer for such purpose. If with respect to the last date of such Collection
Period, the Indenture Trustee receives no bid to purchase the Financed Student
Loans, or no bid that it may, as specified below, accept, the Indenture Trustee
may at its discretion, but shall not be obligated to, offer the Financed Student
Loans for sale as of the last day of each, or any, of the succeeding Collection
Periods until a bid is received that may, as specified below, be accepted by the
Indenture Trustee. With respect to any attempt to arrange for the purchase of
the Financed Student Loans, the Indenture Trustee shall accept the highest bid
submitted so long as (i) at least two bids (one of which is from a Person that
is not the Seller or an Affiliate of the Seller) to purchase the Financed
Student Loans as of the last day of the applicable Collection Period are
received and (ii) the highest such bid is at least equal to the Minimum Purchase
Price. Any attempt to arrange for the purchase of the Financed Student Loans and
the consummation of any such sale shall be conducted by the Indenture Trustee in
a commercially reasonable manner. The Indenture Trustee shall provide notice of
any such attempt at least 60 days prior to the last day of the related
Collection Period to the Seller, the Company, the Servicer, the Eligible Lender
Trustee, the Rating Agencies, any Swap Counterparties and each Noteholder, and
any such Person or their respective Affiliates or any other Person may submit a
timely bid for the purchase of the Financed Student Loans.

                                    ARTICLE V

                                    Remedies

      SECTION 5.01. Events of Default. "Event of Default", wherever used herein,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

                  (i) default in the payment by the Issuer of any interest on
      any Note when the same becomes due and payable, and such default shall
      continue for a period of five days; or

                  (ii) default in the payment by the Issuer of the principal of
      any Note when the same becomes due and payable; or

                  (iii) default in the observance or performance of any covenant
      or agreement of the Issuer made in this Indenture (other than a covenant
      or agreement, a default in the observance or performance of which is
      elsewhere in this Section specifically dealt with), or any representation
      or warranty of the Issuer made in this Indenture or in any certificate or
      other writing delivered pursuant hereto or in connection herewith proving
      to have been incorrect in any material respect as of the time when the
      same shall have been made which default materially and adversely affects
      the rights of the Noteholders, and such

                                      -22-
<PAGE>

      default shall continue or not be cured, or the circumstance or condition
      in respect of which such misrepresentation or warranty was incorrect shall
      not have been eliminated or otherwise cured, for a period of 30 (or, in
      the circumstances provided below, 90) days after there shall have been
      given, by registered or certified mail, to the Issuer by the Indenture
      Trustee or to the Issuer and the Indenture Trustee by the Noteholders of
      at least 25% of the Outstanding Amount of the Notes, a written notice
      specifying such default or incorrect representation or warranty and
      requiring it to be remedied and stating that such notice is a notice of
      Default hereunder; provided, however, that, if at the end of such 30-day
      period, the Indenture Trustee determines that a good faith effort to cure
      or eliminate the Default has commenced, the Indenture Trustee may extend
      such 30-day period to 90 days; or

                  (iv) the filing of a decree or order for relief by a court
      having jurisdiction in the premises in respect of the Issuer or any
      substantial part of the Indenture Trust Estate in an involuntary case
      under any applicable federal or state bankruptcy, insolvency or other
      similar law now or hereafter in effect, or appointing a receiver,
      liquidator, assignee, custodian, trustee, sequestrator or similar official
      of the Issuer or for any substantial part of the Indenture Trust Estate,
      or ordering the winding-up or liquidation of the Issuer's affairs, and
      such decree or order shall remain unstayed and in effect for a period of
      60 consecutive days; or

                  (v) the commencement by the Issuer of a voluntary case under
      any applicable federal or state bankruptcy, insolvency or other similar
      law now or hereafter in effect, or the consent by the Issuer to the entry
      of an order for relief in an involuntary case under any such law, or the
      consent by the Issuer to the appointment or taking possession by a
      receiver, liquidator, assignee, custodian, trustee, sequestrator or
      similar official of the Issuer or for any substantial part of the
      Indenture Trust Estate, or the making by the Issuer of any general
      assignment for the benefit of creditors, or the failure by the Issuer
      generally to pay its debts as such debts become due, or the taking of
      action by the Issuer in furtherance of any of the foregoing.

      SECTION 5.02. Acceleration of Maturity; Rescission and Annulment. If an
Event of Default should occur, then and in every such case the Indenture Trustee
or the Noteholders of Notes representing not less than a majority of the
Outstanding Amount of the Notes may declare all the Notes to be immediately due
and payable, by a notice in writing to the Issuer and any Swap Counterparties
(and to the Indenture Trustee if given by Noteholders), and upon any such
declaration the unpaid principal amount of such Notes, together with accrued and
unpaid interest thereon through the date of acceleration, shall become
immediately due and payable.

      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 Indenture Trustee as hereinafter in this Article V provided, the
Noteholders of Notes representing a majority of the Outstanding Amount of the
Notes, by written notice to the Issuer and the Indenture Trustee, may rescind
and annul such declaration and its consequences if:

                                      -23-
<PAGE>

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

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

                        (B) all sums paid or advanced by the Indenture Trustee
            hereunder plus all amounts owed to any Swap Counterparties under the
            Basic Documents and the reasonable compensation, expenses,
            disbursements and advances of the Indenture Trustee, any Swap
            Counterparties and their respective agents and counsel; and

                  (ii) all Events of Default, other than the nonpayment of the
      principal of the Notes that has become due solely by such acceleration,
      have been cured or waived as provided in Section 5.12.

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

      SECTION 5.03. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee. (a) The Issuer covenants that if (i) default is made in the
payment of any interest on any Note when the same becomes due and payable, and
such default continues for a period of five days, or (ii) default is made in the
payment of the principal of or any installment of the principal of any Note when
the same becomes due and payable, the Issuer will, upon demand of the Indenture
Trustee, pay to it, for the benefit of the Noteholders and any Swap
Counterparties, the whole amount then due and payable on such Notes for
principal and interest with interest upon the overdue principal, and, to the
extent payment at such rate of interest shall be legally enforceable, upon
overdue installments of interest, at the rate specified in Section 2.07 and all
amounts due under any Swap Agreements and in addition thereto such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Indenture Trustee, any Swap Counterparties and their respective agents and
counsel.

      (b) In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Indenture Trustee, in its own name and as trustee of an express
trust, may institute a Proceeding for the collection of the sums so due and
unpaid, and may prosecute such Proceeding to judgment or final decree, and may
enforce the same against the Issuer or other obligor upon such Notes and collect
in the manner provided by law out of the property of the Issuer or other obligor
upon such Notes, wherever situated, the monies adjudged or decreed to be
payable.

      (c) If an Event of Default occurs and is continuing, the Indenture Trustee
may, as more particularly provided in Section 5.04, in its discretion, proceed
to protect and enforce its rights and the rights of the Noteholders, by such
appropriate Proceedings as the Indenture Trustee shall deem most effective to
protect and enforce any such rights, whether for the specific enforcement of any

                                      -24-
<PAGE>

covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy or legal or equitable
right vested in the Indenture Trustee by this Indenture or by law.

      (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Indenture Trust Estate, Proceedings under Title 11 of the United States Code
or any other applicable federal or state bankruptcy, insolvency or other similar
law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceeding relative to the Issuer or
other obligor upon the Notes, or to the creditors or property of the Issuer or
such other obligor, the Indenture Trustee, irrespective of whether the principal
of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee shall
have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such proceedings or otherwise:

                  (i) to file and prove a claim or claims for the whole amount
      of principal and interest 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 Indenture Trustee (including any claim for
      reasonable compensation to the Indenture Trustee and each predecessor
      Indenture Trustee, and their respective agents, attorneys and counsel, and
      for reimbursement of all expenses and liabilities incurred, and all
      advances made, by the Indenture Trustee and each predecessor Indenture
      Trustee, except as a result of negligence or bad faith) and of the
      Noteholders allowed in such Proceeding;

                  (ii) unless prohibited by applicable law and regulations, to
      vote on behalf of the Noteholders in any election of a trustee, a standby
      trustee or Person performing similar functions in any such Proceeding;

                  (iii) to collect and receive any monies or other property
      payable or deliverable on any such claims and to distribute all amounts
      received with respect to the claims of the Noteholders, any Swap
      Counterparties and the Indenture Trustee on their behalf; and

                  (iv) to file such proofs of claim and other papers or
      documents as may be necessary or advisable in order to have the claims of
      the Indenture Trustee, any Swap Counterparties or the Noteholders allowed
      in any judicial Proceeding relative to the Issuer, its creditors and its
      property;

and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Noteholders to make
payments to the Indenture Trustee, and, in the event that the Indenture Trustee
shall consent to the making of payments directly to such Noteholders, to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective

                                      -25-
<PAGE>

agents, attorneys and counsel, and all other expenses and liabilities incurred,
and all advances made, by the Indenture Trustee and each predecessor Indenture
Trustee except as a result of negligence or bad faith.

      (e) Nothing herein contained shall be deemed to authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of
any Noteholder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Noteholder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election
of a trustee in bankruptcy or similar Person.

      (f) All rights of action and of asserting claims under this Indenture, or
under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other
Proceeding relative thereto, and any such action or Proceeding instituted by the
Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents and attorneys, shall be for the
benefit of the Noteholders and any Swap Counterparties.

      (g) In any Proceeding brought by the Indenture Trustee (and also any
Proceeding involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be
held to represent all the Noteholders, and it shall not be necessary to make any
Noteholder a party to any such Proceeding.

      SECTION 5.04. Remedies; Priorities. (a) If an Event of Default shall have
occurred, the Indenture Trustee may or, upon the written request of Noteholders
of at least 51% of the Notes, shall do one or more of the following (subject to
Section 5.05):

                  (i) institute Proceedings in its own name and as trustee of an
      express trust for the collection of all amounts then payable on the Notes
      or under this Indenture with respect thereto, whether by declaration or
      otherwise, enforce any judgment obtained, and collect from the Issuer and
      any other obligor upon such Notes monies adjudged due;

                  (ii) institute Proceedings from time to time for the complete
      or partial foreclosure of this Indenture with respect to the Indenture
      Trust Estate;

                  (iii) exercise any remedies of a secured party under the UCC
      and take any other appropriate action to protect and enforce the rights
      and remedies of the Indenture Trustee, any Swap Counterparties and the
      Noteholders; and

                  (iv) sell the Indenture Trust Estate or any portion thereof or
      rights or interests therein, at one or more public or private sales called
      and conducted in any manner permitted by law;

                                      -26-
<PAGE>

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Indenture Trust Estate following an Event of Default, other than
an Event of Default described in Section 5.01(i) or (ii), unless (A) the
Noteholders of 100% of the Outstanding Amount of the Notes and any Swap
Counterparties (but, in the case of any Swap Counterparties, only to the extent
that the Administrator directs the Indenture Trustee that any Swap
Counterparties would not receive all amounts due under any Swap Agreements)
consent thereto, (B) the proceeds of such sale or liquidation distributable to
the Noteholders are sufficient to discharge in full all amounts then due and
unpaid upon such Notes for principal and interest and under any Swap Agreements
or (C) the Indenture Trustee determines that the Indenture Trust Estate will not
continue to provide sufficient funds for the payment of principal of and
interest on the Notes as they would have become due if the Notes had not been
declared due and payable, and the Indenture Trustee obtains the consent of
Noteholders of 66-2/3% of the Outstanding Amount of the Notes and any Swap
Counterparties (but, in the case of any Swap Counterparties, only to the extent
that any Swap Counterparties would not receive all amounts due under any Swap
Agreements). In determining such sufficiency or insufficiency with respect to
clauses (B) and (C), the Indenture Trustee may, but need not, obtain and rely
upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Indenture Trust Estate for such purpose.

      (b) Following an Event of Default and an acceleration of the Notes, the
Indenture Trustee shall pay out the money or property in the following order:

            FIRST: to the Indenture Trustee for amounts due under Section 6.07;

            SECOND: ratably, without preference or priority of any kind (a) to
      the Senior Noteholders for amounts due and unpaid on the Senior Notes for
      interest and (b) if the Trust is the Defaulting Party (as such term is
      defined in any Swap Agreements) under any Swap Agreements, to any Swap
      Counterparties for all amounts due to any Swap Counterparties under any
      Swap Agreements (provided, however, that to the extent that the Trust is
      the Defaulting Party with respect to an Event of Default specified in
      Section 5 (a)(i) of a Swap Agreement this priority shall apply only with
      respect to the related Trust Swap Payment Amount (and not the remainder of
      the related Termination Payment));

            THIRD: Reserved;

            FOURTH: to the Subordinate Noteholders for amounts due and unpaid on
      the Subordinate Notes for interest, ratably, without preference or
      priority of any kind, according to the amounts due and payable on the
      Subordinate Notes for interest;

            FIFTH: to the Senior Noteholders for amounts due and unpaid on the
      Senior Notes for principal, ratably, without preference or priority of any
      kind, according to the amounts due and payable on the Senior Notes for
      principal;

            SIXTH: to the Subordinate Noteholders for amounts due and unpaid
      (without regard to the Subordinate Note Trigger) on the Subordinate Notes
      for interest, ratably, without

                                      -27-
<PAGE>

      preference or priority of any kind, according to the amounts due and
      payable on the Subordinate Notes (after giving effect to payments pursuant
      to clause FOURTH above);

            SEVENTH: to the Subordinate Noteholders for amounts due and unpaid
      on the Subordinate Notes for principal, ratably, without preference or
      priority of any kind, according to the amounts due and payable on the
      Subordinate Notes for principal;

            EIGHTH: to the Servicer for due and unpaid Servicing Fees;

            NINTH: Reserved;

            TENTH: Reserved;

            ELEVENTH: to any Swap Counterparties for all amounts due under any
      Swap Agreements, to the extent that such Swap Counterparty is the
      Defaulting Party (as such term is defined in the related Swap Agreement),
      the Early Termination Date (as such term is defined therein) arises from a
      Termination Event or the Trust is the Defaulting Party with respect to an
      Event of Default specified in Section 5 (a)(i) of the related Swap
      Agreement (exclusive of any Trust Swap Payment Amount paid pursuant to
      Clause SECOND hereof); and

            TWELFTH: to the Issuer, for distribution in accordance with the
      terms of the Administration Agreement.

      The Indenture Trustee may fix a record date and payment date for any
payment to Noteholders pursuant to this Section. At least 15 days before such
record date, the Issuer shall mail to each Noteholder and the Indenture Trustee
a notice that states the record date, the payment date and the amount to be
paid.

      SECTION 5.05. Optional Preservation of the Indenture Trust Estate. If the
Notes have been declared to be due and payable under Section 5.02 following an
Event of Default and such declaration and its consequences have not been
rescinded and annulled, the Indenture Trustee may, but need not, elect to
maintain possession of the Indenture Trust Estate. It is the desire of the
parties hereto and the Noteholders that there be at all times sufficient funds
for the payment of principal of and interest on the Notes, and the Indenture
Trustee shall take such desire into account when determining whether to maintain
possession of the Indenture Trust Estate. In determining whether to maintain
possession of the Indenture Trust Estate, the Indenture Trustee may, but need
not, obtain and rely upon an opinion (which shall be obtained at the expense of
the Issuer) of an Independent investment banking or accounting firm of national
reputation as to the feasibility of such proposed action and as to the
sufficiency of the Indenture Trust Estate for such purpose.

      SECTION 5.06. Limitation of Suits. No Noteholder shall have any right to
institute any Proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:

                                      -28-
<PAGE>

                  (i) such Noteholder has previously given written notice to the
      Indenture Trustee of a continuing Event of Default;

                  (ii) the Noteholders of not less than 25% of the Outstanding
      Amount of the Notes have made written request to the Indenture Trustee to
      institute such Proceeding in respect of such Event of Default in its own
      name as Indenture Trustee hereunder;

                  (iii) such Noteholder or Noteholders have offered to the
      Indenture Trustee reasonable indemnity against the costs, expenses and
      liabilities to be incurred in complying with such request;

                  (iv) the Indenture Trustee for 60 days after its receipt of
      such notice, request and offer of indemnity has failed to institute such
      Proceeding; and

                  (v) no direction inconsistent with such written request has
      been given to the Indenture Trustee during such 60-day period by the
      Noteholders of a majority of the Outstanding Amount of the Notes.

it being understood and intended that no one or more Noteholders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other
Noteholders or to obtain or to seek to obtain priority or preference over any
other Noteholders or to enforce any right under this Indenture, except in the
manner herein provided.

      In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Noteholders
pursuant to this Section 5.06, each representing less than a majority of the
Outstanding Amount of the Notes, the Indenture Trustee in its sole discretion
may determine what action, if any, shall be taken, notwithstanding any other
provisions of this Indenture.

      SECTION 5.07. Unconditional Rights of Noteholders to Receive Principal and
Interest. Notwithstanding any other provisions in this Indenture, any Noteholder
shall have the right, which is absolute and unconditional, to receive payment of
the principal of and interest, if any, on such Note on or after the respective
due dates thereof expressed in such Note or in this Indenture (or, in the case
of redemption, on or after the Redemption Date) and to institute suit for the
enforcement of any such payment, and such right shall not be impaired without
the consent of such Noteholder.

      SECTION 5.08. Restoration of Rights and Remedies. If the Indenture Trustee
or any Noteholder has instituted any Proceeding to enforce any right or remedy
under this Indenture and such Proceeding has been discontinued or abandoned for
any reason or has been determined adversely to the Indenture Trustee or to such
Noteholder, then and in every such case the Issuer, the Indenture Trustee and
the Noteholders shall, subject to any determination in such Proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Indenture Trustee and the Noteholders
shall continue as though no such Proceeding had been instituted.

                                      -29-
<PAGE>

      SECTION 5.09. Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee or to the Noteholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

      SECTION 5.10. Delay or Omission Not a Waiver. No delay or omission of the
Indenture Trustee or any Noteholder to exercise any right or remedy accruing
upon any Default or Event of Default shall impair any such right or remedy or
constitute a waiver of any such Default or Event of Default or an acquiescence
therein. Every right and remedy given by this Article V or by law to the
Indenture Trustee, to the Noteholders may be exercised from time to time, and as
often as may be deemed expedient, by the Indenture Trustee or the Noteholders,
as the case may be.

      SECTION 5.11. Control by Noteholders. The Noteholders of a majority of the
Outstanding Amount of the Notes shall have the right to direct the time, method
and place of conducting any Proceeding for any remedy available to the Indenture
Trustee with respect to the Notes or exercising any trust or power conferred on
the Indenture Trustee; provided, however, that

                  (i) such direction shall not be in conflict with any rule of
      law or with this Indenture;

                  (ii) subject to the express terms of Section 5.04, any
      direction to the Indenture Trustee to sell or liquidate the Indenture
      Trust Estate shall be by the Noteholders of 100% of the Outstanding Amount
      of the Notes;

                  (iii) if the conditions set forth in Section 5.05 have been
      satisfied and the Indenture Trustee elects to retain the Indenture Trust
      Estate pursuant to such Section, then any direction to the Indenture
      Trustee by Noteholders of less than 100% of the Outstanding Amount of the
      Notes to sell or liquidate the Indenture Trust Estate shall be of no force
      and effect; and

                  (iv) the Indenture Trustee may take any other action deemed
      proper by the Indenture Trustee that is not inconsistent with such
      direction;

and provided, further, that, subject to Section 6.01, the Indenture Trustee need
not take any action that it determines might involve it in liability or might
materially adversely affect the rights of any Noteholders not consenting to such
action.

      SECTION 5.12. Waiver of Past Defaults. Prior to the time a judgment or
decree for payment of money due has been obtained as described in Section 5.02,
the Noteholders of not less than a majority of the Outstanding Amount of the
Notes, with the prior written consent of the Swap Counterparties, if any, may
waive any past Default or Event of Default and its consequences except

                                      -30-
<PAGE>

a Default or Event of Default (a) in payment when due of principal of or
interest on any of the Notes or (b) in respect of a covenant or provision hereof
which cannot be modified or amended without the consent of each Noteholder and
any Swap Counterparties; provided, however, that all Noteholders may waive
events described in clauses (a) and (b) hereof. In the case of any such waiver,
the Issuer, the Indenture Trustee and the Noteholders shall be restored to their
former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other Default or Event of Default or impair any
right consequent thereto.

      Upon any such waiver, such Default shall cease to exist and be deemed to
have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to be cured and not to have occurred, for every
purpose of this Indenture to the extent specified in such waiver but no such
waiver shall extend to any subsequent or other Default or Event of Default or
impair any right consequent thereto.

      SECTION 5.13. Undertaking for Costs. All parties to this Indenture agree,
and each Noteholder by such Noteholder's acceptance of any Note shall be deemed
to have agreed, that any court may in its discretion require, in any suit for
the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the
Outstanding Amount of the Notes or (c) any suit instituted by any Noteholder for
the enforcement of the payment of principal of or interest on any Note on or
after the respective due dates expressed in such Note and in this Indenture (or,
in the case of redemption, on or after the Redemption Date).

      SECTION 5.14. Waiver of Stay or Extension Laws. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Indenture
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

      SECTION 5.15. Action on Notes. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Indenture Trust Estate or
upon any of the assets of the Issuer. Any money or property collected by the
Indenture Trustee shall be applied in accordance with Section 5.04(b).

                                      -31-
<PAGE>

      SECTION 5.16. Performance and Enforcement of Certain Obligations. (a)
Promptly following a request from the Indenture Trustee to do so and at the
Administrator's expense, the Issuer shall take all such lawful action as the
Indenture Trustee may request to compel or secure the performance and observance
by the Seller, the Servicer, the Administrator and any Swap Counterparties, as
applicable, of each of their obligations to the Issuer under or in connection
with the Loan Sale Agreement, the Servicing Agreement, the Administration
Agreement and any Swap Agreements and to exercise any and all rights, remedies,
powers and privileges lawfully available to the Issuer under or in connection
with the Loan Sale Agreement, the Servicing Agreement and the Administration
Agreement to the extent and in the manner directed by the Indenture Trustee,
including the transmission of notices of default on the part of the Seller, the
Servicer, the Administrator or any Swap Counterparties thereunder and the
institution of legal or administrative actions or proceedings to compel or
secure performance by the Seller, the Servicer, the Administrator or any Swap
Counterparties of each of their obligations under the Loan Sale Agreement, the
Servicing Agreement, the Administration Agreement or any Swap Agreements.

      (b) If an Event of Default has occurred, the Indenture Trustee may, and at
the direction (which direction shall be in writing or by telephone (confirmed in
writing promptly thereafter)) of the Noteholders of 66-2/3% of the Outstanding
Amount of the Notes, shall, exercise all rights, remedies, powers, privileges
and claims of the Issuer against the Seller, the Servicer, the Administrator or
any Swap Counterparties under or in connection with the Loan Sale Agreement, the
Servicing Agreement, the Administration Agreement or any Swap Agreements,
including the right or power to take any action to compel or secure performance
or observance by the Seller, the Servicer, the Administrator or any Swap
Counterparties of each of their obligations to the Issuer thereunder and to give
any consent, request, notice, direction, approval, extension or waiver under the
Loan Sale Agreement, the Servicing Agreement, the Administration Agreement or
any Swap Agreements and any right of the Issuer to take such action shall be
suspended.

                                   ARTICLE VI

                              The Indenture Trustee

      SECTION 6.01. Duties of Indenture Trustee. (a) If an Event of Default has
occurred and is continuing, the Indenture Trustee shall exercise the rights and
powers vested in it by this Indenture and 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 such person's own affairs.

      (b) Except during the continuance of an Event of Default:

                  (i) the Indenture 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 Indenture Trustee; and

                                      -32-
<PAGE>

                  (ii) in the absence of bad faith on its part, the Indenture
      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 Indenture Trustee and conforming to the
      requirements of this Indenture; provided, however, that the Indenture
      Trustee shall examine such certificates and opinions to determine whether
      they conform to the requirements of this Indenture.

      (c) The Indenture Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that:

                  (i) this paragraph does not limit the effect of paragraph (b)
      of this Section;

                  (ii) the Indenture Trustee shall not be liable for any error
      of judgment made in good faith by a Responsible Officer unless it is
      proved that the Indenture Trustee was negligent in ascertaining the
      pertinent facts; and

                  (iii) the Indenture Trustee shall not be liable with respect
      to any action it takes or omits to take in good faith in accordance with a
      direction received by it pursuant to Sections 5.02, 5.11, 5.12 and 5.16.

      (d) Every provision of this Indenture that in any way relates to the
Indenture Trustee is subject to paragraphs (a), (b), (c) and (g) of this
Section.

      (e) The Indenture Trustee shall not be liable for interest on any money
received by it except as the Indenture Trustee may agree in writing with the
Issuer.

      (f) Money held in trust by the Indenture Trustee need not be segregated
from other funds except to the extent required by law or the terms of this
Indenture or the Servicing Agreement.

         (g) No  provision of this  Indenture  shall  require the Indenture
Trustee to expend or risk its own funds or otherwise incur  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  to believe  that
repayments of such funds or adequate  indemnity  satisfactory  to it against any
loss, liability or expense is not reasonably assured to it.

      (h) Except as expressly provided in the Basic Documents, the Indenture
Trustee shall have no obligation to administer, service or collect the Financed
Student Loans or to maintain, monitor or otherwise supervise the administration,
servicing or collection of the Financed Student Loans.

      (i) In the event that the Indenture Trustee is the Paying Agent or the
Note Registrar, the rights and protections afforded to the Indenture Trustee
pursuant to this Indenture shall also be afforded to the Indenture Trustee in
its capacity as Paying Agent or Note Registrar.

                                      -33-
<PAGE>

      (j) Every provision of this Indenture 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 and to the provisions of the TIA.

      (k) Notwithstanding any other provision in this Agreement or the other
Basic Documents, nothing in this Agreement or the other Basic Documents shall be
construed to limit the Indenture Trustee's legal responsibility to the U.S.
Secretary of Education or a Guarantor for any violations of statutory or
regulatory requirements that may occur with respect to loans held by the
Indenture Trustee pursuant to, or to otherwise comply with its obligations
under, the Higher Education Act or implementing regulations, it being expressly
understood that the Indenture Trustee has no obligation or duty pursuant to this
Section in the capacity of a successor Servicer except pursuant to Section 6.02
of the Servicing Agreement.

      SECTION 6.02. Rights of Indenture Trustee. (a) The Indenture Trustee may
rely on any document believed by it to be genuine and to have been signed or
presented by the proper Person. The Indenture Trustee need not investigate any
fact or matter stated in such document.

      (b) Before the Indenture Trustee acts or refrains from acting in
connection with any matter contemplated by this Indenture or other Basic
Documents, it may require an Officers' Certificate of the Issuer or an Opinion
of Counsel. The Indenture Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on such Officers' Certificate or Opinion
of Counsel.

      (c) The Indenture Trustee may exercise any of the trusts and powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys or a custodian or nominee and the Indenture Trustee shall
not be responsible for any misconduct or negligence on the part of any attorney,
agent, custodian or nominee appointed with due care by it hereunder.

      (d) The Indenture Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, however, that the Indenture Trustee's conduct does
not constitute willful misconduct, negligence or bad faith.

      (e) The Indenture Trustee may consult with counsel, and the advice or
opinion of counsel with respect to legal matters relating to this Indenture and
the other Basic Documents and the Notes shall be full and complete authorization
and protection from liability in respect to any action taken, omitted or
suffered by it hereunder in good faith and in accordance with the advice or
opinion of such counsel.

      (f) Subject to clauses (a), (b), (c) and (g) of Section 6.01 hereof, the
Indenture Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Indenture at the request or direction of any
Noteholder pursuant to this Indenture, unless such Noteholder shall have offered
to the Indenture Trustee security or indemnity reasonably satisfactory to the
Indenture Trustee against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction.

                                      -34-
<PAGE>

      SECTION 6.03. Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates with the same
rights it would have if it were not Indenture Trustee. Any Paying Agent, Note
Registrar, co-registrar or co-paying agent may do the same with like rights.
However, the Indenture Trustee must comply with Sections 6.11 and 6.12.

      SECTION 6.04. Indenture Trustee's Disclaimer. The Indenture Trustee shall
not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the
Issuer's use of the proceeds from the Notes, and it shall not be responsible for
any statement of the Issuer in the Indenture or in any document issued in
connection with the sale of the Notes or in the Notes other than the Indenture
Trustee's certificate of authentication.

      SECTION 6.05. Notice of Defaults. If a Default occurs and if it is
actually known by, or written notice of the existence thereof has been delivered
to, a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall
mail notice of the Default to each Noteholder, any Swap Counterparties and the
Rating Agencies promptly after the Indenture Trustee obtains such knowledge or
receives such notice of the Default. Except in the case of a Default in payment
of principal of or interest on any Note (including payments pursuant to the
mandatory redemption provisions of such Note), the Indenture Trustee may
withhold the notice to the Noteholders if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of Noteholders.

      SECTION 6.06. Reports by Indenture Trustee to Noteholders. The Paying
Agent shall deliver to each Noteholder (and to each Person who was a Noteholder
at any time during the applicable calendar year) such information as may be
required to enable such holder to prepare its federal and state income tax
returns. Within 60 days after each December 31 beginning with the December 31
following the date of this Indenture, the Indenture Trustee shall mail to each
Noteholder a brief report as of such December 31 that complies with TIA ss.
313(a) if required by said section. The Indenture Trustee shall also comply with
TIA ss. 313(b). A copy of each such report required pursuant to TIA ss. 313(a)
or (b) shall, at the time of such transmission to Noteholders, be filed by the
Indenture 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 Indenture Trustee in writing of such listing.

      SECTION 6.07. Compensation and Indemnity. The Issuer shall cause the
Administrator to pay to the Indenture Trustee from time to time reasonable
compensation for its services and shall cause the Administrator to reimburse the
Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by
it, including costs of collection, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Indenture Trustee's agents, counsel,
accountants and experts. The Indenture Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer
shall cause the Administrator to indemnify the Indenture Trustee, its officers,
directors, employees and agents against any and all loss, liability or expense
(including attorneys'

                                      -35-
<PAGE>

fees and expenses) incurred by it in connection with the administration of this
trust and the performance of its duties hereunder and under the other Basic
Documents. The Indenture Trustee shall notify the Issuer and the Administrator
promptly of any claim for which it may seek indemnity. Failure by the Indenture
Trustee to so notify the Issuer and the Administrator shall not relieve the
Issuer or the Administrator of its obligations hereunder and under the other
Basic Documents. The Issuer shall cause the Administrator to defend the claim
and the Administrator shall not be liable for any additional legal fees and
expenses of the Indenture Trustee after it has assumed such defense; provided,
however, that, in the event that there may be a conflict between the positions
of the Indenture Trustee and the Administrator in conducting the defense of such
claim, the Indenture Trustee shall be entitled to separate counsel the fees and
expenses of which shall be paid by the Administrator on behalf of the Issuer.
Neither the Issuer nor the Administrator need reimburse any expense or indemnify
against any loss, liability or expense incurred by the Indenture Trustee through
the Indenture Trustee's own willful misconduct, negligence or bad faith.

      All amounts payable to the Indenture Trustee under this Section 6.07 shall
be payable solely by the Administrator or from amounts otherwise payable to the
Company under Section 2(e)(ii)(b)(viii) of the Administration Agreement. The
Indenture Trustee agrees to continue to perform its obligations under the Basic
Documents notwithstanding any failure of the Administrator to pay any amounts
owed to the Indenture Trustee.

      The Issuer's and Administrator's payment obligations to the Indenture
Trustee pursuant to this Section shall survive the discharge of this Indenture.
When the Indenture Trustee incurs expenses after the occurrence of a Default
specified in Section 5.01(iv) or (v) with respect to the Issuer, the expenses
are intended to constitute expenses of administration under Title 11 of the
United States Code or any other applicable federal or state bankruptcy,
insolvency or similar law.

      SECTION 6.08. Replacement of Indenture Trustee. No resignation or removal
of the Indenture Trustee and no appointment of a successor Indenture Trustee
shall become effective until the acceptance of appointment by the successor
Indenture Trustee pursuant to this Section 6.08. The Indenture Trustee may
resign at any time by so notifying the Issuer and any Swap Counterparties. The
Administrator may remove the Indenture Trustee at any time following thirty days
written notice by so notifying the Indenture Trustee and may appoint a successor
Indenture Trustee; provided that all fees and expenses of the Indenture Trustee
being removed are paid in full. The Noteholders of a majority in Outstanding
Amount of the Notes may remove the Indenture Trustee by so notifying the
Indenture Trustee and may appoint a successor Indenture Trustee. The Issuer
shall remove the Indenture Trustee if:

                  (i) the Indenture Trustee fails to comply with Section 6.11;

                  (ii) an Insolvency Event occurs with respect to the Indenture
      Trustee;

                  (iii) a receiver or other public officer takes charge of the
      Indenture Trustee or its property;

                  (iv) the Indenture Trustee otherwise becomes incapable of
      acting; or

                                      -36-
<PAGE>

                  (v) the Indenture Trustee is in breach of any material
      representation, warranty, or covenant or other material obligations of the
      Indenture Trustee under any Basic Document.

      If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of Indenture Trustee for any reason (the Indenture Trustee in such
event being referred to herein as the retiring Indenture Trustee), the Issuer
shall, promptly appoint a successor Indenture Trustee. Any successor Indenture
Trustee shall be satisfactory to any Swap Counterparties. A former Indenture
Trustee shall not be liable for any acts or omissions of any successor Indenture
Trustee.

      A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee and the Issuer and shall notify
the Rating Agencies in writing of such acceptance. Thereupon the resignation or
removal of the retiring Indenture Trustee shall become effective, and the
successor Indenture Trustee shall have all the rights, powers and duties of the
Indenture Trustee under this Indenture. The successor Indenture Trustee shall
mail a notice of its succession to Noteholders. The retiring Indenture Trustee
shall promptly transfer all property held by it as Indenture Trustee to the
successor Indenture Trustee.

      If a successor Indenture Trustee does not take office within 60 days after
the retiring Indenture Trustee resigns or is removed, the retiring Indenture
Trustee, the Issuer, any Swap Counterparties or the Noteholders of a majority in
Outstanding Amount of the Notes may petition any court of competent jurisdiction
for the appointment of a successor Indenture Trustee.

      If the Indenture Trustee fails to comply with Section 6.11, any Noteholder
may petition any court of competent jurisdiction for the removal of the
Indenture Trustee and the appointment of a successor Indenture Trustee.

      Notwithstanding the replacement of the Indenture Trustee pursuant to this
Section, the Issuer's and the Administrator's obligations under Section 6.07
shall continue for the benefit of the retiring Indenture Trustee.

      SECTION 6.09. Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation
or banking association, the resulting, surviving or transferee corporation or
banking association without any further act shall be the successor Indenture
Trustee; provided, however, that such corporation or banking association shall
be otherwise qualified and eligible under Section 6.11. The Indenture Trustee
shall provide the Rating Agencies prior written notice of any such transaction.

      In case at the time such successor or successors by merger, conversion or
consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not delivered,
any such successor to the Indenture Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the

                                      -37-
<PAGE>

Indenture Trustee may authenticate such Notes either in the name of any
predecessor hereunder or in the name of the successor to the Indenture Trustee;
and in all such cases such certificates shall have the full force which it is
anywhere in the Notes or in this Indenture provided that the certificate of the
Indenture Trustee shall have.

      SECTION 6.10. Appointment of Co-Trustee or Separate Trustee. (a)
Notwithstanding any other provisions of this Indenture, at any time, for the
purpose of meeting any legal requirement of any jurisdiction in which any part
of the Indenture Trust Estate may at the time be located, the Indenture Trustee
shall have the power and may execute and deliver all instruments to appoint one
or more Persons to act as a co-trustee or co-trustees, or separate trustee or
separate trustees, of all or any part of the Indenture Trust Estate, and to vest
in such Person or Persons, in such capacity and for the benefit of the
Noteholders and any Swap Counterparties, such title to the Indenture Trust
Estate, or any part hereof, and, subject to the other provisions of this
Section, such powers, duties, obligations, rights and trusts as the Indenture
Trustee may consider necessary or desirable. No co-trustee or separate trustee
hereunder shall be required to meet the terms of eligibility as a successor
trustee under Section 6.11 and no notice to Noteholders of the appointment of
any co-trustee or separate trustee shall be required under Section 6.08 hereof.
The Indenture Trustee shall notify the Rating Agencies of any appointment of a
co-trustee or separate trustee hereunder.

      (b) Every separate trustee and co-trustee shall, to the extent permitted
by law, be appointed and act subject to the following provisions and conditions:

                  (i) all rights, powers, duties and obligations conferred or
      imposed upon the Indenture Trustee shall be conferred or imposed upon and
      exercised or performed by the Indenture Trustee and such separate trustee
      or co-trustee jointly (it being understood that such separate trustee or
      co-trustee is not authorized to act separately without the Indenture
      Trustee joining in such act), except to the extent that under any law of
      any jurisdiction in which any particular act or acts are to be performed
      the Indenture Trustee shall be incompetent or unqualified to perform such
      act or acts, in which event such rights, powers, duties and obligations
      (including the holding of title to the Indenture Trust Estate or any
      portion thereof in any such jurisdiction) shall be exercised and performed
      singly by such separate trustee or co-trustee, but solely at the direction
      of the Indenture Trustee;

                  (ii) no trustee hereunder shall be personally liable by reason
      of any act or omission of any other trustee hereunder; and

                  (iii) the Indenture Trustee may at any time accept the
      resignation of or remove any separate trustee or co-trustee.

      (c) Any notice, request or other writing given to the Indenture Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Indenture and
the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Indenture Trustee or separately, as may be

                                      -38-
<PAGE>

provided therein, subject to all the provisions of this Indenture, specifically
including every provision of this Indenture relating to the conduct of,
affecting the liability of, or affording protection to, the Indenture Trustee.
Every such instrument shall be filed with the Indenture Trustee.

      (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee, its agent or attorney-in-fact with full power and authority,
to the extent not prohibited by law, to do any lawful act under or in respect of
this Indenture on its behalf and in its name. If any separate trustee or
co-trustee shall die, become incapable of acting, resign or be removed, all its
estates, properties, rights, remedies and trusts shall vest in and be exercised
by the Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

      SECTION 6.11. Eligibility; Disqualification. The Indenture Trustee shall
at all times satisfy the requirements of TIA ss. 310(a). The Indenture Trustee
shall have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition and it shall have a long
term debt rating of "Baa3" or better by Moody's. The Indenture Trustee shall
comply with TIA ss. 310(b), including the optional provision permitted by the
second sentence of TIA ss. 310(b)(9); provided, however, that there shall be
excluded from the operation of TIA ss. 310(b)(1) any indenture or indentures
under which other securities of the Issuer are outstanding if the requirements
for such exclusion set forth in TIA ss. 310(b)(1) are met.

      SECTION 6.12. Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). An Indenture Trustee that has resigned or
been removed shall be subject to TIA ss. 311(a) to the extent indicated.

      SECTION 6.13. Declaration of Default or Termination Event under any Swap
Agreements. The Indenture Trustee shall not declare any Swap Counterparties to
be in Default or declare a Termination Event under any Swap Agreements without
the prior written consent of the Administrator.

                                   ARTICLE VII

                         Noteholders' Lists and Reports

      SECTION 7.01. Issuer to Furnish Indenture Trustee Names and Addresses of
Noteholders. The Issuer will furnish or cause to be furnished to the Indenture
Trustee (a) not more than five days after the earlier of (i) each Record Date
and (ii) three months after the last Record Date, a list, in such form as the
Indenture Trustee may reasonably require, of the names and addresses of the
Noteholders as of such Record Date, and (b) at such other times as the Indenture
Trustee may request in writing, within ten days after receipt by the Issuer of
any such request, a list of similar form and content as of a date not more than
ten days prior to the time such list is furnished;

                                      -39-
<PAGE>

provided, however, that so long as the Indenture Trustee is the Note Registrar,
no such list shall be required to be furnished.

      SECTION 7.02. Preservation of Information; Communications to Noteholders.
(a) The Indenture Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Noteholders contained in the most
recent list furnished to the Indenture Trustee as provided in Section 7.01 and
the names and addresses of Noteholders received by the Indenture Trustee in its
capacity as Note Registrar. The Indenture Trustee may destroy any list furnished
to it as provided in such Section 7.01 upon receipt of a new list so furnished.

      (b) Noteholders may communicate pursuant to TIA ss. 312(b) with other
Noteholders with respect to their rights under this Indenture or under the
Notes.

      (c) The Issuer, the Indenture Trustee and the Note Registrar shall have
the protection of TIAss. 312(c).

      (d) The Indenture Trustee shall furnish to the Noteholders promptly upon
receipt of a written request therefor, duplicates or copies of all reports,
notices, requests, demands, certificates, financial statements and any other
instruments furnished to the Indenture Trustee under the Basic Documents.

      (e) The Indenture Trustee shall provide notice to the Noteholders and any
Swap Counterparties as provided in Section 9.02 of the Trust Agreement, and
shall provide notice to the Noteholders of any amendment or supplement to the
Trust Agreement as provided in Section 11.01 of the Trust Agreement.

      SECTION 7.03. Reports by Issuer. (a) The Issuer shall:

                  (i) file with the Indenture 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 15(d) of
      the Exchange Act;

                  (ii) file with the Indenture 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) supply to the Indenture Trustee (and the Indenture
      Trustee shall transmit by mail to all Noteholders described in TIA ss.
      313(c)) such summaries of any information, documents and reports required
      to be filed by the Issuer pursuant to clauses (i)

                                      -40-
<PAGE>

      and (ii) of this Section 7.03(a) as may be required by rules and
      regulations prescribed from time to time by the Commission.

      (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall end on December 31 of each year.

      (c) Copies of all reports to be sent to the Indenture Trustee under this
Section 7.03 shall be mailed to any Swap Counterparties and the Rating Agencies
by the Issuer at the same time.

                                  ARTICLE VIII

                      Accounts, Disbursements and Releases

      SECTION 8.01. Collection of Money. Except as otherwise expressly provided
herein, the Indenture Trustee may demand payment or delivery of, and shall
receive and collect, directly and without intervention or assistance of any
fiscal agent or other intermediary, all money and other property payable to or
receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it on behalf of itself and the
Noteholders pursuant to the Loan Sale Agreement, the Servicing Agreement or the
Administration Agreement as provided in this Indenture. Except as otherwise
expressly provided in this Indenture, if any default occurs in the making of any
payment or performance under any agreement or instrument that is part of the
Indenture Trust Estate, the Indenture Trustee may take such action as may be
appropriate to enforce such payment or performance, including the institution
and prosecution of appropriate Proceedings. Any such action shall be without
prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

      SECTION 8.02. Trust Accounts. (a) On or prior to the Closing Date, the
Issuer shall cause the Administrator to establish and maintain, in the name of
the Indenture Trustee, for the benefit of the Noteholders and the Swap
Counterparty, the Trust Accounts as provided in Section 2(c) of the
Administration Agreement.

      (b) On or before the Business Day preceding each Monthly Payment Date and
Quarterly Payment Date, all Monthly Available Funds with respect to the
preceding Monthly Collection Period (or in the case of a Quarterly Payment Date,
Available Funds with respect to the preceding Collection Period) will be
deposited in the Collection Account as provided in Section 4.01 of the Servicing
Agreement. On each Quarterly Payment Date, the Noteholders' Distribution Amount
with respect to such Quarterly Payment Date will be distributed from the
Collection Account and from the Reserve Account to the Indenture Trustee (or
other Paying Agent) on behalf of the Noteholders as provided in Sections
2(d)(v)(C) and 2(e)(iv)(C) of the Administration Agreement. On each Quarterly
Payment Date, the Reserve Account Excess for such Quarterly Payment Date will be
distributed to the Indenture Trustee (or other Paying Agent) on behalf of the
Noteholders as provided in clauses (b)(ii), b(iii) and (b)(iv) of Section
2(e)(ii) of the Administration Agreement (and in the case of clause (b)(iv)
whether allocated thereto pursuant to the proviso to Section 2(e)(ii)(a) or
pursuant to Section 2(e)(ii)(b)). On the Quarterly Payment Date referred to in
Section

                                      -41-
<PAGE>

10.01(a) (ii) with respect to a redemption pursuant to Section 10.01(a) (ii),
the amount on deposit in the Collateral Reinvestment Account on such Quarterly
Payment Date will be distributed therefrom to the Indenture Trustee (or other
Paying Agent) on behalf of the Noteholders as provided in Section 2(f)(ii) of
the Administration Agreement. On the Quarterly Payment Date referred to in
Section 10.01(a)(i), the amount on deposit in the Prefunding Account (if such
amount is greater than $10 million) will be distributed therefrom to the
Indenture Trustee (or other Paying Agent) on behalf of the Noteholders as
provided in Section 2(k) of the Administration Agreement.

      (c) On each Quarterly Payment Date, the Indenture Trustee (or any other
Paying Agent) shall distribute all amounts received by it from the Collection
Account and the Reserve Account pursuant to the second sentence of paragraph (b)
above to Noteholders in respect of the Notes to the extent of amounts due and
unpaid on the Notes for principal and interest to any Swap Counterparties in the
following amounts and in the following order of priority:

                  (i) the Class A-1 Noteholders' Interest Distribution Amount,
      the Class A-2 Noteholders' Interest Distribution Amount, the Trust Swap
      Payment Amounts, if any, and the remainder of any Termination Payment (to
      the extent the remainder of such Termination Payment is owed to any Swap
      Counterparties following a Redemption Event (as defined in any related
      Swap Agreement) or a default by the Trust under any Swap Agreements other
      than an Event of Default by the Trust specified in (x) Section 5(a)(i) of
      any Swap Agreements or (y) 5(a)(ix) of any Swap Agreements unless an Event
      of Default has occurred, the Notes have been accelerated and such
      acceleration has been waived), to the Class A-1 Noteholders, the Class A-2
      Noteholders and any Swap Counterparties, respectively; provided, however,
      that if there are not sufficient funds to pay the Class A-1 Noteholders'
      Interest Distribution Amount, the Class A-2 Noteholders' Interest
      Distribution Amount, the Trust Swap Payment Amounts, if any, and the
      remainder of any Termination Payment, the amounts so received shall be
      applied to the payment of such Class A-1 Noteholders' Interest
      Distribution Amount, the Class A-2 Noteholders' Interest Distribution
      Amount, the Trust Swap Payment Amounts, if any, and the remainder of any
      Termination Payment, on a pro rata basis based on the ratio of each such
      amount to the total of such amounts;

                  (ii) reserved;

                  (iii) the Subordinate Noteholders' Interest Distribution
      Amount, to the Subordinate Noteholders;

                  (iv) if the Revolving Period has terminated, the Senior
      Noteholders' Principal Distribution Amount, to the Senior Noteholders
      (such amount to be allocated among the Senior Noteholders as provided in
      Section 8.02(f)) until the Outstanding Amount of the Senior Notes is
      reduced to zero; and

                  (v) after the Outstanding principal amount of the Senior Notes
      is reduced to zero, the Subordinate Noteholders' Principal Distribution
      Amount to the

                                      -42-
<PAGE>

      Subordinate Noteholders until the Outstanding principal amount of the
      Subordinate Notes is reduced to zero.

      (d) On each Quarterly Payment Date, the Indenture Trustee (or any Paying
Agent) shall distribute all amounts received by it on behalf of Noteholders and
to any Swap Counterparties in respect of Reserve Account Excess pursuant to the
third to the last sentence of paragraph (b) above in the following amounts and
order of priority:

                  (i) reserved;

                  (ii) if the Revolving Period has terminated, any remaining
      such amounts to Senior Noteholders (such amounts to be allocated among the
      Senior Noteholders as provided in Section 8.02(f)) until the Outstanding
      principal amount of the Notes is equal to the Pool Balance as of the close
      of business on the last day of the related Collection Period (only until
      the Outstanding principal amount of the Senior Notes is reduced to zero);

                  (iii) if the Revolving Period has terminated, and the
      Outstanding principal amount of the Senior Notes is reduced to zero, any
      remaining such amounts, to the Subordinate Noteholders until the
      Outstanding principal amount of the Subordinate Notes is equal to the Pool
      Balance as of the close of business on the last day of the related
      Collection Period;

                  (iv) commencing on the April 2010 Quarterly Payment Date, any
      remaining such amounts to Senior Noteholders (such amounts to be allocated
      among the Senior Noteholders as provided in Section 8.02(f)) until the
      Outstanding principal amount of the Senior Notes is reduced to zero;

                  (v) commencing on the April 2010 Quarterly Payment Date, any
      remaining such amounts, after the Outstanding principal amount of the
      Senior Notes is reduced to zero, to the Subordinate Noteholders until the
      Outstanding principal amount of the Subordinate Notes is reduced to zero;

                  (vi) Reserved

                  (vii) Reserved; and

                  (viii) to any Swap Counterparties, all Termination Payments
      due under the related Swap Agreement, to the extent that any Swap
      Counterparty is the Defaulting Party (as such term is defined in the
      related Swap Agreement), the Early Termination Date (as such term is
      defined therein) arises from a Termination Event (other than an Additional
      Termination Event (as defined in any Swap Agreements) in respect of a
      Redemption Event (as defined in any Swap Agreements)) or the Trust is the
      Defaulting Party with respect to an Event of Default specified in Section
      5(a)(i) of any Swap Agreements (exclusive of any Trust Swap Payment Amount
      paid pursuant to Clause SECOND of Section 5.04 (b) hereof).

                                      -43-
<PAGE>

      (e) On the Quarterly Payment Date referred to in Section 10.01(a)(ii) with
respect to redemption pursuant to Section 10.01(a)(ii), the Indenture Trustee
(or any other Paying Agent) shall distribute all amounts received by it from the
Collateral Reinvestment Account pursuant to the last sentence of Section (b)
above in the following amounts and order of priority:

                  (i) to the related Swap Counterparty, an amount equal to any
      related unpaid Net Trust Swap Payment Carryover Shortfalls;

                  (ii) after any related Net Trust Swap Payment Carryover
      Shortfalls have been paid to the related Swap Counterparty, any remaining
      such amounts to the Senior Noteholders (such amount to be allocated among
      the Senior Noteholders as provided in Section 8.02(f)) until the
      Outstanding principal amount of the Senior Notes is reduced to zero; and

                  (iii) after the Outstanding principal amount of the Senior
      Notes is reduced to zero, any remaining such amounts to the Subordinate
      Noteholders until the Outstanding principal amount of the Subordinate
      Notes is reduced to zero.

      (f) Amounts payable to Senior Noteholders as provided in Sections
8.02(c)(iv), 8.02(d)(ii) and 8.02(e)(ii) shall be payable in the following
amounts and order of priority:

                  (i) to the Class A-1 Noteholders in an amount necessary to
      reduce the Outstanding principal amount of the Class A-1 Notes to zero;
      and

                  (ii) after the Outstanding principal amount of the Class A-1
      Notes is reduced to zero, to the Class A-2 Noteholders until the
      Outstanding principal amount of the Class A-2 Notes is reduced to zero;

provided, however, that from and after any acceleration of the Notes following
an Event of Default, such amounts shall be payable to the Class A-1 Noteholders
and the Class A-2 Noteholders pro rata.

      (g) On the Quarterly Payment Date referred to in Section 10.01(a)(i) with
      respect to redemption pursuant to Section 10.01(a)(i), the Indenture
      Trustee (or any other Paying Agent) upon the written direction of the
      Administrator shall distribute all amounts received by it from the
      Prefunding Account pursuant to the last sentence of Section (b) above in
      the following amounts and among the Class A-1 and Class A-2 Noteholders,
      pro rata, based upon the initial principal balance of each class of Class
      A-1 and Class A-2 Notes.

      (h) In the event that any Swap Counterparty is replaced by a successor
swap counterparty pursuant to the terms of any Swap Agreement, the Indenture
Trustee shall pay any amounts owing to such Swap Counterparties in accordance
with the terms of the related Swap Agreements at the written direction of such
Swap Counterparties.

                                      -44-
<PAGE>

      SECTION 8.03. General Provisions Regarding Accounts. (a) So long as no
Default or Event of Default shall have occurred and be continuing, all or a
portion of the funds in the Trust Accounts shall be invested in Eligible
Investments and reinvested by the Indenture Trustee upon Issuer Order, subject
to the provisions of Section 2(c) of the Administration Agreement. All income or
other gain from investments of monies deposited in the Trust Accounts shall be
deposited by the Indenture Trustee in the Collection Account, and any loss
resulting from such investments shall be charged to such Trust Account. The
Issuer will not direct the Indenture Trustee to make any investment of any funds
or to sell any investment held in any of the Trust Accounts unless the security
interest granted and perfected in such account will continue to be perfected in
such investment or the proceeds of such sale, in either case without any further
action by any Person, and, in connection with any direction to the Indenture
Trustee to make any such investment or sale, if requested by the Indenture
Trustee, the Issuer shall deliver to the Indenture Trustee and any Swap
Counterparties an Opinion of Counsel, acceptable to the Indenture Trustee and
any Swap Counterparties, to such effect. All Eligible Investments shall mature
on the Business Day prior to the Monthly Payment Date or Quarterly Payment Date,
as applicable, and shall not be sold prior to their maturity.

      (b) Subject to Section 6.01(c), the Indenture Trustee shall not in any way
be held liable by reason of any insufficiency in any of the Trust Accounts
resulting from any loss on any Eligible Investment included therein except for
losses attributable to the Indenture Trustee's failure to make payments on such
Eligible Investments issued by the Indenture Trustee, in its commercial capacity
as principal obligor and not as trustee, in accordance with their terms.

      (c) If (i) the Issuer (or the Administrator pursuant to Section 2.(a)(U)
of the Administration Agreement) shall have failed to give investment directions
for any funds on deposit in the Trust Accounts to the Indenture Trustee by 10:00
a.m. New York time (or such other time as may be agreed by the Issuer and
Indenture Trustee) on any Business Day; or (ii) a Default or an Event of
Default, shall have occurred and be continuing with respect to the Notes but the
Notes shall not have been declared due and payable pursuant to Section 5.02, or,
if such Notes shall have been declared due and payable following an Event of
Default, amounts collected or receivable from the Indenture Trust Estate are
being applied in accordance with Section 5.05 as if there had not been such a
declaration; then the Indenture Trustee shall, to the fullest extent
practicable, invest and reinvest funds in the Trust Accounts in one or more
Eligible Investments described in clause (d) of the definition thereof.

      SECTION 8.04. Release of Indenture Trust Estate. (a) Subject to the
payment of its fees and expenses (including, without limitation, legal fees and
expenses) pursuant to Section 6.07, the Indenture 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 Indenture 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 Indenture Trustee as provided in this Article VIII
shall be bound to ascertain the Indenture Trustee's authority, inquire into the
satisfaction of any conditions precedent or see to the application of any
monies.

                                      -45-
<PAGE>

      (b) The Indenture Trustee shall, at such time as there are no Notes
Outstanding and all sums due the Indenture Trustee pursuant to Section 6.07 have
been paid and all amounts due to any Swap Counterparties under the Basic
Documents have been paid, release any remaining portion of the Indenture 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
Trust Accounts. The Indenture Trustee shall release property from the lien of
this Indenture pursuant to this Section 8.04(b) only upon receipt by it and any
Swap Counterparties of an Issuer Request accompanied by an Officers' Certificate
of the Issuer, an Opinion of Counsel and (if required by the TIA) Independent
Certificates in accordance with TIA ss.ss. 314(c) and 314(d)(1) meeting the
applicable requirements of Section 11.01.

      SECTION 8.05. Opinion of Counsel. The Indenture Trustee shall receive at
least seven days' notice when requested by the Issuer to take any action
pursuant to Section 8.04(a), accompanied by copies of any instruments involved,
and the Indenture Trustee and any Swap Counterparties shall also require, as a
condition to such action, an Opinion of Counsel, in form and substance
satisfactory to the Indenture Trustee and any Swap Counterparties, stating the
legal effect of any such action, outlining the steps required to complete the
same, and concluding that all conditions precedent to the taking of such action
have been complied with and such action will not materially and adversely impair
the security for the Notes or the rights of the Noteholders in contravention of
the provisions of this Indenture; provided, however, that such Opinion of
Counsel shall not be required to express an opinion as to the fair value of the
Indenture Trust Estate. Counsel rendering any such opinion may rely, with
respect to factual matters without independent investigation thereof, on the
accuracy and validity of any certificate or other instrument delivered to the
Indenture Trustee in connection with any such action.

                                   ARTICLE IX

                             Supplemental Indentures

      SECTION 9.01. Supplemental Indentures Without Consent of Noteholders. (a)
Without the consent of any Noteholders but with the prior written consent of any
Swap Counterparties and the prior notice to the Rating Agencies, the Issuer and
the Indenture Trustee, when authorized by an Issuer Order, at any time and from
time to time, may enter into one or more indentures supplemental hereto (which
shall conform to the provisions of the Trust Indenture Act as in force at the
date of the execution thereof), in form satisfactory to the Indenture Trustee,
for any of the following purposes:

                  (i) to correct or amplify the description of any property at
      any time subject to the lien of this Indenture, or, better to assure,
      convey and confirm unto the Indenture Trustee any property subject or
      required to be subjected to the lien of this Indenture, or to subject to
      the lien of this Indenture additional property;

                                      -46-
<PAGE>

                  (ii) to evidence the succession, in compliance with the
      applicable provisions hereof, of another Person to the Issuer, and the
      assumption by any such successor of the covenants of the Issuer herein and
      in the Notes contained;

                  (iii) to add to the covenants of the Issuer, for the benefit
      of the Noteholders and any Swap Counterparties, or to surrender any right
      or power herein conferred upon the Issuer;

                  (iv) to convey, transfer, assign, mortgage or pledge any
      property to or with the Indenture Trustee;

                  (v) to cure any ambiguity, to correct or supplement any
      provision herein or in any supplemental indenture which may be
      inconsistent with any other provision herein or in any supplemental
      indenture or to make any other provisions with respect to matters or
      questions arising under this Indenture or in any supplemental indenture;
      provided, however, that such action shall not materially adversely affect
      the interests of the Noteholders;

                  (vi) to evidence and provide for the acceptance of the
      appointment hereunder by a successor trustee with respect to the Notes and
      to add to or change any of the provisions of this Indenture as shall be
      necessary to facilitate the administration of the trusts hereunder by more
      than one trustee, pursuant to the requirements of Article VI; or

                  (vii) to modify, eliminate or add to the provisions of this
      Indenture to such extent as shall be necessary to effect the qualification
      of this Indenture under the TIA or under any similar federal statute
      hereafter enacted and to add to this Indenture such other provisions as
      may be expressly required by the TIA.

      The Indenture Trustee is hereby authorized to join in the execution of any
such supplemental indenture and to make any further appropriate agreements and
stipulations that may be therein contained.

      (b) The Issuer and the Indenture Trustee, when authorized by an Issuer
Order, may also, without the consent of any of the Noteholders but with the
prior written consent of any Swap Counterparties and prior notice to the Rating
Agencies, enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating
any of the provisions of, this Indenture or of modifying in any manner the
rights of the Noteholders under this Indenture; provided, however, that such
action shall not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Noteholder.

      SECTION 9.02. Supplemental Indentures with Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
with prior notice to the Rating Agencies and with the written consent of any
Swap Counterparties and the Noteholders of not less than a majority of the
Outstanding Amount of the Notes, by Act of such Noteholders delivered to the
Issuer and the Indenture Trustee, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing in
any manner or eliminating any of the

                                      -47-
<PAGE>

provisions of, this Indenture or of modifying in any manner the rights of the
Noteholders under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Noteholder of each Outstanding Note
affected thereby:

                  (i) change the date of payment of any installment of principal
      of or interest on any Note, or reduce the principal amount thereof, the
      interest rate thereon or the Redemption Price with respect thereto, change
      the provisions of this Indenture relating to the application of
      collections on, or the proceeds of the sale of, the Indenture Trust Estate
      to payment of principal of or interest on the Notes, or change any place
      of payment where, or the coin or currency in which, any Note or the
      interest thereon is payable, or impair the right to institute suit for the
      enforcement of the provisions of this Indenture requiring the application
      of funds available therefor, as provided in Article V, to the payment of
      any such amount due on the Notes on or after the respective due dates
      thereof (or, in the case of redemption, on or after the Redemption Date);

                  (ii) reduce the percentage of the Outstanding Amount of the
      Notes, the consent of the Noteholders of which is required for any such
      supplemental indenture, or the consent of the Noteholders of which is
      required for any waiver of compliance with certain provisions of this
      Indenture or certain defaults hereunder and their consequences provided
      for in this Indenture;

                  (iii) modify or alter the provisions of the proviso to the
      definition of the term "Outstanding";

                  (iv) reduce the percentage of the Outstanding Amount of the
      Notes required to direct the Indenture Trustee to direct the Issuer to
      sell or liquidate the Indenture Trust Estate pursuant to Section 5.04;

                  (v) modify any provision of this Section except to increase
      any percentage specified herein or to provide that certain additional
      provisions of this Indenture or the other Basic Documents cannot be
      modified or waived without the consent of the Noteholder of each
      Outstanding Note affected thereby;

                  (vi) modify any of the provisions of this Indenture in such
      manner as to affect the calculation of the amount of any payment of
      interest or principal due on any Note on any Quarterly Payment Date
      (including the calculation of any of the individual components of such
      calculation) or to affect the rights of the Noteholders to the benefit of
      any provisions for the mandatory redemption of the Notes contained herein;
      or

                  (vii) permit the creation of any lien ranking prior to or on a
      parity with the lien of this Indenture with respect to any part of the
      Indenture Trust Estate or, except as otherwise permitted or contemplated
      herein, terminate the lien of this Indenture on any property at any time
      subject hereto or deprive any Noteholder of any Note of the security
      provided by the lien of this Indenture.

                                      -48-
<PAGE>

      The Indenture Trustee may in its discretion determine whether or not any
Notes would be affected by any supplemental indenture and any such determination
shall be conclusive upon the Noteholders of all Notes whether theretofore or
thereafter authenticated and delivered hereunder. The Indenture Trustee shall
not be liable for any such determination made in good faith.

      It shall not be necessary for any Act of Noteholders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.

      Promptly after the execution by the Issuer and the Indenture Trustee of
any supplemental indenture pursuant to this Section, the Indenture Trustee shall
mail to the Noteholders of the Notes to which such amendment or supplemental
indenture relates and to the Rating Agencies a notice setting forth in general
terms the substance of such supplemental indenture. Any failure of the Indenture
Trustee to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental indenture.

      SECTION 9.03. Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts created
by this Indenture, the Indenture Trustee shall receive, and subject to Sections
6.01 and 6.02, shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Indenture Trustee may, but shall not be
obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise. The Indenture Trustee shall provide a fully executed
copy of any supplemental indentures to the Indenture to any Swap Counterparties
and each Rating Agency.

      SECTION 9.04. Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and be deemed to be modified and amended in accordance therewith with respect
to the Notes affected thereby, and the respective rights, limitations of rights,
obligations, duties, liabilities and immunities under this Indenture of the
Indenture Trustee, the Issuer, the Noteholders and any Swap Counterparties shall
thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and are deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

      SECTION 9.05. Conformity with Trust Indenture Act. Every amendment of this
Indenture and every supplemental indenture executed pursuant to this Article IX
shall conform to the requirements of the Trust Indenture Act as then in effect
so long as this Indenture shall then be qualified under the Trust Indenture Act.

      SECTION 9.06. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee

                                      -49-
<PAGE>

as to any matter provided for in such supplemental indenture. If the Issuer or
the Indenture Trustee shall so determine, new Notes so modified as to conform,
in the opinion of the Indenture Trustee and the Issuer, to any such supplemental
indenture may be prepared and executed by the Issuer and authenticated and
delivered by the Indenture Trustee in exchange for Outstanding Notes.

                                    ARTICLE X

                               Redemption of Notes

      SECTION 10.01. Redemption.

(a) (i) In the event that on the April 2000 Quarterly Payment Date the amount on
deposit in the Prefunding Account, after giving effect to the purchase of any
Prefunded Loans on such date is greater than $10,000,000, each class of Class
A-1 and Class A-2 Notes will be redeemed in part, on a pro rata basis based on
initial principal balance, in an aggregate principal amount equal to the amount
on deposit in the Prefunding Account on such Quarterly Payment Date.

      (ii) In the event that on the Quarterly Payment Date on which the
Revolving Period ends (or on the Quarterly Payment Date on or immediately
following the last day of the Revolving Period, if the Revolving Period does not
end on a Quarterly Payment Date) any amount remains on deposit in the Collateral
Reinvestment Account after giving effect to the making of all Additional
Fundings, including any such Additional Fundings on such Quarterly Payment Date
and the payment to any Swap Counterparties of any prior unpaid Net Trust Swap
Payment Carryover Shortfalls as provided in Section 8.02(e), one or more classes
of the Notes will be redeemed in part, in the order of priority specified in
Section 8.02(e), in an aggregate principal amount equal to the amount then on
deposit in the Collateral Reinvestment Account after giving effect to such
Additional Fundings and such payment to any Swap Counterparties.

      (b) In the event that the Financed Student Loans are sold pursuant to
Section 4.04 hereof, that portion of the amounts on deposit in the Trust
Accounts to be distributed to the Noteholders and any Swap Counterparties, if
any, shall be paid, first, to any Swap Counterparties, (in accordance with the
written direction of any Swap Counterparties) to the extent any amounts remain
due and payable to any Swap Counterparties under any Swap Agreements and,
second, to the Noteholders, the Redemption Price for the Notes. If amounts are
to be paid to Noteholders and any Swap Counterparties, if any, pursuant to this
Section 10.01(b), the Administrator or the Issuer shall furnish notice of such
Event to the Indenture Trustee and any Swap Counterparties not later than 25
days prior to the Redemption Date whereupon all such amounts shall be payable on
the Redemption Date. If the auction referenced in the notice described in the
immediately preceding sentence fails to be consummated, the Redemption Date
shall not occur and no amounts will be payable pursuant to this Section
10.01(b).

      (c) The Notes are subject to redemption in whole, but not in part, on any
Quarterly Payment Date on which the Company exercises its option to purchase the
Trust Estate pursuant to Section 5.01 of the Loan Sale Agreement. If the Notes
are to be redeemed pursuant to this Section

                                      -50-
<PAGE>

10.01(c), the Company shall furnish notice of such election to the Indenture
Trustee and any Swap Counterparties not later than 20 days prior to the
Redemption Date and the Issuer shall deposit by 10:00 a.m. New York time on the
Redemption Date with the Indenture Trustee in the Collection Account the
Redemption Price for the Notes, whereupon the Notes shall be due and payable on
the Redemption Date upon furnishing a notice complying with Section 10.02 to
each Noteholder and any Swap Counterparties.

      (d) No redemption of the Notes pursuant to Section 10.01(b) or 10.01(c)
shall occur until the Indenture Trustee shall have first paid to any Swap
Counterparties (or simultaneously pays) any prior unpaid Net Trust Swap Payment
Carryover Shortfalls and any other amounts owed to any Swap Counterparties under
any Swap Agreements as directed in writing by the Administrator.

      (e) The Indenture Trustee shall provide notice to any Swap Counterparties
immediately upon the Minimum Purchase Price being deposited in the Collection
Account.

      SECTION 10.02. Form of Redemption Notice. Notice of redemption under
Section 10.01 shall be given by the Indenture Trustee by first-class mail,
postage prepaid, or by facsimile, mailed or transmitted on or prior to the
applicable Redemption Date to any Swap Counterparties and to each Noteholder, as
of the close of business on the Record Date preceding the applicable Redemption
Date, at such Noteholder's address or facsimile number appearing in the Note
Register or, in the case of the Swap Counterparty, as provided in any Swap
Agreements.

      All notices of redemption shall state:

                  (i) the Redemption Date,

                  (ii) the Redemption Price and

                  (iii) the place where such Notes are to be surrendered for
      payment of the Redemption Price (which shall be the office or agency of
      the Issuer to be maintained as provided in Section 3.02).

      Notice of redemption of the Notes shall be given by the Indenture Trustee
in the name and at the expense of the Issuer. Failure to give notice of
redemption, or any defect therein, to any Noteholder of any Note shall not
impair or affect the validity of the redemption of any other Note.

      SECTION 10.03. Notes Payable on Redemption Date. The Notes or portions
thereof to be redeemed shall on the Redemption Date become due and payable at
the Redemption Price and (unless the Issuer shall default in the payment of the
Redemption Price) no interest shall accrue on the Redemption Price for any
period after the date to which accrued interest is calculated for purposes of
calculating the Redemption Price.

                                      -51-
<PAGE>

                                   ARTICLE XI

                                  Miscellaneous

      SECTION 11.01. Compliance Certificates and Opinions. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee and any Swap Counterparties (i) an Officers' Certificate of the Issuer
stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with, (ii) an Opinion of
Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with and (iii) (if required by the TIA) an
Independent Certificate from a firm of certified public accountants meeting the
applicable requirements of this Section, except that, in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished.

      Every certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

                  (i) a statement that each signatory of such certificate or
      opinion has read or has caused to be read such covenant or condition and
      the definitions herein relating thereto;

                  (ii) a brief statement as to the nature and scope of the
      examination or investigation upon which the statements or opinions
      contained in such certificate or opinion are based;

                  (iii) a statement that, in the opinion of each such signatory,
      such signatory has made such examination or investigation as is necessary
      to enable such signatory to express an informed opinion as to whether such
      covenant or condition has been complied with; and

                  (iv) a statement as to whether, in the opinion of each such
      signatory, such condition or covenant has been complied with.

      (b) (i) Prior to the deposit of any Collateral or other property or
      securities with the Indenture Trustee that is to be made the basis for the
      release of any property or securities subject to the lien of this
      Indenture, the Issuer shall, in addition to any obligation imposed in
      Section 11.01(a) or elsewhere in this Indenture, furnish to the Indenture
      Trustee an Officers' Certificate of the Issuer certifying or stating the
      opinion of each person signing such certificate as to the fair value
      (within 90 days of such deposit) to the Issuer of the Collateral or other
      property or securities to be so deposited.

                  (ii) Whenever the Issuer is required to furnish to the
      Indenture Trustee an Officers' Certificate of the Issuer certifying or
      stating the opinion of any signer thereof as to the matters described in
      clause (i) above, the Issuer shall also deliver to the Indenture

                                      -52-
<PAGE>

      Trustee an Independent Certificate as to the same matters, if the fair
      value to the Issuer of the securities to be so deposited and of all other
      such securities made the basis of any such withdrawal or release since the
      commencement of the then current fiscal year of the Issuer, as set forth
      in the certificates delivered pursuant to clause (i) above and this clause
      (ii), is 10% or more of the Outstanding Amount of the Notes, but such a
      certificate need not be furnished with respect to any securities so
      deposited, if the fair value thereof to the Issuer as set forth in the
      related Officers' Certificate is less than $25,000 or less than one
      percent of the Outstanding Amount of the Notes.

                  (iii) Other than any property released as contemplated by
      clause (v) below, whenever any property or securities are to be released
      from the lien of this Indenture, the Issuer shall also furnish to the
      Indenture Trustee an Officers' Certificate of the Issuer certifying or
      stating the opinion of each person signing such certificate as to the fair
      value (within 90 days of such release) of the property or securities
      proposed to be released and stating that in the opinion of such person the
      proposed release will not impair the security under this Indenture in
      contravention of the provisions hereof.

                  (iv) Whenever the Issuer is required to furnish to the
      Indenture Trustee an Officers' Certificate of the Issuer certifying or
      stating the opinion of any signer thereof as to the matters described in
      clause (iii) above, the Issuer shall also furnish to the Indenture Trustee
      an Independent Certificate as to the same matters if the fair value of the
      property or Securities and of all other property, other than property as
      contemplated by clause (v) below, or securities released from the lien of
      this Indenture since the commencement of the then-current calendar year,
      as set forth in the certificates required by clause (iii) above and this
      clause (iv), equals 10% or more of the Outstanding Amount of the Notes,
      but such certificate need not be furnished in the case of any release of
      property or securities if the fair value thereof as set forth in the
      related Officers' Certificate is less than $25,000 or less than one
      percent of the then Outstanding Amount of the Notes.

                  (v) Notwithstanding Section 2.09 or any other provision of
      this Section, the Issuer may, without compliance with the requirements of
      the other provisions of this Section, (A) collect, liquidate, sell or
      otherwise dispose of Financed Student Loans as and to the extent permitted
      or required by the Basic Documents and (B) make cash payments out of the
      Trust Accounts as and to the extent permitted or required by the Basic
      Documents, so long as the Issuer shall deliver to the Indenture Trustee
      and any Swap Counterparties every three months, commencing April 25, 2000,
      an Officers' Certificate of the Issuer stating that all the dispositions
      of Collateral described in clauses (A) and (B) above that occurred during
      the immediately preceding three calendar months (or the period from the
      Closing Date in the case of the April 25, 2000 Officers' Certificate) were
      in the ordinary course of the Issuer's business and that the proceeds
      thereof were applied in accordance with the Basic Documents.

      SECTION 11.02. Form of Documents Delivered to Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such

                                      -53-
<PAGE>

Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

      Any certificate or opinion of an Authorized Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel
may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Servicer, the
Seller, the Issuer or the Administrator, stating that the information with
respect to such factual matters is in the possession of the Servicer, the
Seller, the Issuer or the Administrator, unless such counsel knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous.

      Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

      Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Indenture Trustee's right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article VI.

      SECTION 11.03. Acts of Noteholders. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Noteholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided such action shall become effective when such
instrument or instruments are delivered to the Indenture Trustee, and, where it
is hereby expressly required, to the Issuer. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred
to as the "Act" of the Noteholders signing such instrument or instruments. Proof
of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section
6.01) conclusive in favor of the Indenture Trustee and the Issuer, if made in
the manner provided in this Section.

      (b) The fact and date of the execution by any person of any such
instrument or writing may be proved in any manner that the Indenture Trustee
deems sufficient.

                                      -54-
<PAGE>

      (c) The ownership of Notes shall be proved by the Note Register.

      (d) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Noteholder of any Notes shall bind the Noteholder of
every Note issued upon the registration thereof or in exchange therefor or in
lieu thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of
such action is made upon such Note.

      SECTION 11.04. Notices to Indenture Trustee, Issuer, Swap Counterparties
and Rating Agencies. Any request, demand, authorization, direction, notice,
consent, waiver or act of Noteholders or other documents provided or permitted
by this Indenture shall be in writing and if such request, demand,
authorization, direction, notice, consent, waiver or act of Noteholders is to be
made upon, given or furnished to or filed with:

            (a) the Indenture Trustee by any Noteholder, by any Swap
      Counterparties or by the Issuer, it shall be sufficient for every purpose
      hereunder if made, given, furnished or filed in writing to or with the
      Indenture Trustee at its Corporate Trust Office, or

            (b) the Issuer by the Indenture Trustee, or by any Noteholder, it
      shall be sufficient for every purpose hereunder if in writing and mailed,
      first-class, postage prepaid, to the Issuer addressed to: SMS Student Loan
      Trust 2000-A, in care of Bank One Delaware, Inc., as Trustee, 3 Christina
      Centre, 201 North Walnut Street, Wilmington, Delaware 19801, with a copy
      to the Eligible Lender Trustee at the Corporate Trust Office of the
      Eligible Lender Trustee, or at any other address previously furnished in
      writing to the Indenture Trustee by the Issuer. The Issuer shall promptly
      transmit any notice received by it from the Noteholders to the Indenture
      Trustee.

      Notices required to be given to any Swap Counterparties by the Issuer, the
Indenture Trustee or the Eligible Lender Trustee shall be in writing, personally
delivered or mailed by certified mail, return receipt requested, to the
addresses set forth in any related Swap Agreement or at such other address as
shall be designated by written notice to the other parties.

      Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Eligible Lender Trustee shall be in writing, personally
delivered or mailed by certified mail, return receipt requested, to the
following address: (i) in the case of Moody's Investors Service, Inc., at the
following address: 99 Church Street, New York, New York 10007, Attention of ABS
Monitoring Department, (ii) in the case of Fitch IBCA, Inc., at the following
address: One State Street Plaza, New York, New York 10004, Attention of Asset
Backed Monitoring Unit and (iii) in the case of Standard & Poor's, a division of
The McGraw-Hill Companies, Inc., 55 Water Street, 41st Floor, New York, New York
10041, Attention: ABS Surveillance Department; or as to each of the foregoing,
at such other address as shall be designated by written notice to the other
parties.

      SECTION 11.05. Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected

                                      -55-
<PAGE>

by such event, at his address as it appears on the Note Register, not later than
the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given.

      Where this Indenture provides for notice in any manner, such notice may be
waived in writing by any Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Noteholders shall be filed with the Indenture Trustee but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such a waiver.

      In case, by reason of the suspension of regular mail service as a result
of a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a
sufficient giving of such notice.

      Where this Indenture provides for notice to the Rating Agencies, failure
to give such notice shall not affect any other rights or obligations created
hereunder, and shall not under any circumstance constitute a Default or an Event
of Default.

      SECTION 11.06. Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuer
may enter into any agreement with any Noteholder providing for a method of
payment, or notice by the Indenture Trustee or any Paying Agent to such
Noteholder, that is different from the methods provided for in this Indenture
for such payments or notices, provided that such agreement is reasonably
acceptable to the Indenture Trustee. The Issuer will furnish to the Indenture
Trustee a copy of each such agreement and the Indenture Trustee will cause
payments to be made and notices to be given in accordance with such agreements.

      SECTION 11.07. Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof that is required to
be included in this Indenture by any of the provisions of the Trust Indenture
Act, such required provision shall control.

      The provisions of TIA ss.ss. 310 through 317 that impose duties on any
Person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

      SECTION 11.08. Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

                                      -56-
<PAGE>

      SECTION 11.09. Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind the successors, co-trustees and agents (excluding any
legal representatives or accountants) of the Indenture Trustee.

      SECTION 11.10. Separability. In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

      SECTION 11.11. Benefits of Indenture. Nothing in this Indenture or in the
Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, any Swap Counterparties and the
Noteholders, and any other party secured hereunder, and any other Person with an
ownership interest in any part of the Indenture Trust Estate, any benefit or any
legal or equitable right, remedy or claim under this Indenture. The
Administrator and any Swap Counterparties and their respective successors and
assigns shall each be an express third-party beneficiary to this Indenture and
shall be entitled to rely upon and directly enforce the provisions of this
Indenture; provided, however, that in the case of any Swap Counterparties, such
right to enforcement and the right to provide consents and waivers pursuant to
the provisions hereof or to take other actions as provided herein are
conditioned upon its not being in default under any Swap Agreements.

      SECTION 11.12. Reserved

      SECTION 11.13. Governing Law. This Indenture shall be construed in
accordance with the laws of the State of New York, without reference to its
conflict of law provisions, and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

      SECTION 11.14. Counterparts. This Indenture may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.

      SECTION 11.15. Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense and shall be accompanied by an Opinion
of Counsel (which may be counsel to the Indenture Trustee or any other counsel
reasonably acceptable to the Indenture Trustee) to the effect that such
recording is necessary either for the protection of the Noteholders, any Swap
Counterparties or any other Person secured hereunder or for the enforcement of
any right or remedy granted to the Indenture Trustee under this Indenture.

      SECTION 11.16. Trust Obligations. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Seller, the
Company, the Administrator, the Servicer, the Eligible Lender Trustee or the
Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Seller, the Company, the Administrator, the Servicer, the Indenture Trustee or
the Eligible Lender Trustee in

                                      -57-
<PAGE>

its individual capacity or (ii) any partner, owner, beneficiary, agent, officer,
director or employee of the Seller, the Company, the Administrator, the
Servicer, the Indenture Trustee or the Eligible Lender Trustee in its individual
capacity, any holder or owner of a beneficial interest in the Issuer, the
Eligible Lender Trustee or the Indenture Trustee or of any successor or assign
of the Seller, the Company, Administrator, the Servicer, the Indenture Trustee
or the Eligible Lender Trustee in its individual capacity, except as any such
Person may have expressly agreed (it being understood that the Indenture Trustee
and the Eligible Lender Trustee have no such obligations in their individual
capacity) and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity. For all purposes of this Indenture, in the performance of
any duties or obligations of the Issuer hereunder, the Eligible Lender Trustee
shall be subject to, and entitled to the benefits of, the terms and provisions
of Articles VI, VII and VIII of the Trust Agreement.

      SECTION 11.17. No Petition. The Indenture Trustee, by entering into this
Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree
that they will not at any time institute against the Seller, the Company or the
Issuer, or join in any institution against the Seller, the Company or the Issuer
of, any bankruptcy, reorganization, arrangement, insolvency, receivership or
liquidation proceedings, or other proceedings under any United States Federal or
state bankruptcy or similar law in connection with any obligations relating to
the Notes, this Indenture or any of the other Basic Documents.

      SECTION 11.18. Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee, during the
Issuer's normal business hours, to examine all the books of account, records,
reports, and other papers of the Issuer, to make copies and extracts therefrom,
to cause such books to be audited by Independent certified public accountants,
and to discuss the Issuer' affairs, finances and accounts with the Issuer's
officers, employees, and Independent certified public accountants, all at such
reasonable times and as often as may be reasonably requested. The Indenture
Trustee shall and shall cause its representatives to hold in confidence all such
information obtained from such examination or inspection except to the extent
disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the
Indenture Trustee may reasonably determine that such disclosure is consistent
with its obligations hereunder.

      SECTION 11.19. Consents. With respect to any action to be taken hereunder
that requires the consent of a party hereto or of the Eligible Lender Trustee or
any Swap Counterparties, such consent shall not be unreasonably withheld,
delayed or conditioned.

                        [Signatures Follow on Next Page]

                                      -58-
<PAGE>

      IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this
Indenture to be duly executed by their respective officers, thereunto duly
authorized and duly attested, all as of the day and year first above written.

                                         SMS STUDENT LOAN TRUST
                                         2000-A

                                         By: BANK ONE, NATIONAL ASSOCIATION, not
                                             in its individual capacity  but
                                             solely as Eligible Lender Trustee

                                         By: /s/ Steve M. Husbands
                                             -----------------------------------
                                             Name:  Steve M. Husbands
                                             Title: Assistant Vice President

                                             BANKERS TRUST COMPANY,
                                             not in its individual capacity but
                                             solely as Indenture Trustee

                                         By: /s/ Patricia M. Russo
                                             -----------------------------------
                                             Name:  Patricia M. Russo
                                             Title: Vice President

      Acknowledged and accepted as to
      the Granting Clause as of the day
      and year first above written:

      BANK ONE, NATIONAL ASSOCIATION, not
        in its Individual capacity but
        solely as Eligible Lender Trustee

      By: /s/ Steve M. Husbands
          ----------------------------------
          Name:  Steve M. Husbands
          Title: Assistant Vice President

                                      -59-
<PAGE>

STATE OF NEW YORK      )
                       )  ss.:
COUNTY OF NEW YORK     )

      BEFORE ME, the undersigned authority, a Notary Public in and for said
county and state, on this day personally appeared Steve M. Husbands, known to me
to be the person and officer whose name is subscribed to the foregoing
instrument and acknowledged to me that the same was the act of the said SMS
STUDENT LOAN TRUST 2000-A, a Delaware trust, and that such person executed the
same as the act of said trust for the purpose and consideration therein
expressed, and in the capacities therein stated.

      GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 25th day of January 2000.

                                                  /s/ Amy Mellon
                                                  ------------------------------
                                                  Notary Public in and for
                                                  the State of New York

      [Seal]

My commission expires:
__________________________

                                      -60-
<PAGE>

STATE OF NEW YORK      )
                       )  ss.:
COUNTY OF NEW YORK     )

      BEFORE ME, the undersigned authority, a Notary Public in and for said
county and state, on this day personally appeared Patricia M. Russo, known to me
to be the person and officer whose name is subscribed to the foregoing
instrument and acknowledged to me that the same was the act of the said Bankers
Trust Company, a New York banking corporation, and that such person executed the
same as the act of said corporation for the purpose and consideration therein
expressed, and in the capacities therein stated.

      GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 25th day of January 2000.

                                                  /s/ Amy Mellon
                                                  ------------------------------
                                                  Notary Public in and for
                                                  the State of New York

      [Seal]

My commission expires:
__________________________

                                      -61-
<PAGE>

                                                                     EXHIBIT A-1
                                                                TO THE INDENTURE

                            [FORM OF CLASS A-1 NOTE]

                                 CLASS A-1 NOTE

                       SEE REVERSE FOR CERTAIN DEFINITIONS

      Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

      THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. THIS NOTE IS NOT GUARANTEED OR
INSURED BY ANY GOVERNMENTAL AGENCY.

REGISTERED                                   CUSIP NO.

$_________

No. R-

                          SMS STUDENT LOAN TRUST 2000-A

                CLASS A-1 FLOATING RATE ASSET-BACKED SENIOR NOTES

      SMS Student Loan Trust 2000-A, a trust organized and existing under the
laws of the State of Delaware (herein referred to as the "Issuer"), for value
received, hereby promises to pay to ______________________________, or
registered assigns, the principal sum of __________________________________
DOLLARS payable on each Quarterly Payment Date in an amount equal to the result
obtained by multiplying (i) a fraction the numerator of which is $___________
and the denominator of which is $______________ by (ii) the aggregate amount, if
any, payable to Noteholders on such Quarterly Payment Date in respect of
principal of the Class A-1 Notes pursuant to Section 3.01 of the Indenture dated
as of January 1, 2000 (the "Indenture"),

                                    -A-1-1-
<PAGE>

between the Issuer and Bankers Trust Company, a New York banking corporation, as
Indenture Trustee (the "Indenture Trustee") (capitalized terms used but not
defined herein shall have the meanings ascribed thereto in the Indenture, which
also references rules as to usage that shall be applicable herein); provided,
however, that no principal shall be payable on this Note until after the end of
the Revolving Period; and provided, further, that the entire unpaid principal
amount of this Note shall be due and payable on the October 2007 Quarterly
Payment Date (the "Class A-1 Note Final Maturity Date") and the Redemption Date,
if any, pursuant to Section 10.01(b) or 10.01(c) of the Indenture.

      The Issuer will pay interest on this Note, at the rate per annum equal to
the Class A-1 Note Rate (assigned on the reverse hereof), on each Quarterly
Payment Date until the principal of this Note is paid or made available for
payment, on the principal amount of this Note outstanding on the preceding
Quarterly Payment Date, after giving effect to all payments of principal made on
the preceding Quarterly Payment Date (or, in the case of the first Quarterly
Payment Date, on the Closing Date), subject to certain limitations contained in
Section 3.01 of the Indenture. Interest on this Note will accrue for each
Quarterly Payment Date from the most recent Quarterly Payment Date on which
interest has been paid to but excluding such Quarterly Payment Date or, if no
interest has yet been paid, from January 25, 2000 (each, a "Quarterly Interest
Period"). Interest on this Note will be computed on the basis of the actual
number of days elapsed in each Quarterly Interest Period and a 360-day year.
Such principal of and interest on this Note shall be paid in the manner
specified on the reverse hereof.

      The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

      Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note.

      Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

                                    -A-1-2-
<PAGE>

      IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                             SMS STUDENT LOAN TRUST 2000-A

                                             By: BANK ONE, NATIONAL ASSOCIATION,
                                                 not in its individual capacity
                                                 but solely as Eligible Lender
                                                 Trustee under the Trust
                                                 Agreement

                                             By: _______________________________
                                                 Authorized Signatory

Date:

      TRUSTEE'S CERTIFICATE OF AUTHENTICATION

      This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                             BANKERS TRUST COMPANY, not in its
                                             individual capacity but solely as
                                             Indenture Trustee

                                             By: _______________________________
                                                 Authorized Signatory

Date:

                                    -A-1-3-
<PAGE>

                                 REVERSE OF NOTE

      This Note is one of a duly authorized issue of Notes of the Issuer
designated as its Class A-1 Floating Rate Asset-Backed Senior Notes (herein
called the "Class A-1 Notes"), which, together with the Class A-2 Floating Rate
Asset-Backed Senior Notes (the "Class A-2 Notes" and, together with the Class
A-1 Notes, the "Senior Notes") and the Floating Rate Asset-Backed Subordinate
Notes (the "Subordinate Notes" and, together with the Senior Notes, the "Notes")
are issued under the Indenture, to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Noteholders. The Class A-1 Notes are subject to all terms of the Indenture.

      The Class A-1 Notes are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.
Allocations of principal will be made among the Class A-1 Notes, the Class A-2
Notes and the Subordinate Notes as provided in the Indenture. The Senior Notes
collectively are senior in right of payment to the Subordinate Notes, all as and
to the extent provided in the Indenture.

      Principal of the Class A-1 Notes will be payable on each Quarterly Payment
Date after the end of the Revolving Period in an amount described in the
Indenture. "Quarterly Payment Date" means the twenty-eighth day of each January,
April, July and October, or, if any such date is not a Business Day, the next
succeeding Business Day, commencing April 2000.

      As provided in the Indenture, the Class A-1 Notes may be redeemed in part
on the Quarterly Payment Date on which the Revolving Period ends (or on the
Quarterly Payment Date on or immediately following the last day of the Revolving
Period, if the Revolving Period does not end on a Quarterly Payment Date) in the
event that any amount remains on deposit in the Collateral Reinvestment Account
after giving effect to all Additional Fundings, including any Additional
Fundings, on such Quarterly Payment Date and payments to any Swap Counterparties
of any prior related unpaid Net Trust Swap Payment Carryover Shortfalls as of
such date.

      As provided in the Indenture, if as of the Special Determination Date, the
amount on deposit in the Prefunding Account is greater than $10,000,000, such
amount will be distributed on the first Quarterly Payment Date thereafter to
redeem each class of Class A-1 and Class A-2 Notes, pro rata, based on the
initial principal balance of each class of Class A-1 and Class A-2 Notes.

      As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-1 Note Final Maturity Date and
the Redemption Date, if any, pursuant to Section 10.01(b) or 10.01(c) of the
Indenture. Notwithstanding the foregoing, the entire unpaid principal amount of
the Notes shall be due and payable on the date on which (i) an Event of Default
shall have occurred and be continuing and (ii) the Indenture Trustee or the
Noteholders representing not less than a majority of the Outstanding principal
amount of the Notes shall have declared the Notes to be immediately due and
payable in the manner provided in Section 5.02 of the Indenture.

                                    -A-1-4-
<PAGE>

All principal payments of the Class A-1 Notes shall be made pro rata to the
Class A-1 Noteholders entitled thereto.

      Interest on the Class A-1 Notes will be payable on each Quarterly Payment
Date, commencing April 2000, on the principal amount outstanding of such Notes
until the principal amount thereof is paid in full, at a rate per annum equal to
the Class A-1 Note Rate. The "Class A-1 Note Rate" for each Quarterly Payment
Date and the related LIBOR Reset Period shall be equal to Three-Month LIBOR for
the related LIBOR Reset Period plus 0.11%.

      Pursuant to the Administration Agreement, the Administrator will determine
Three-Month LIBOR for purposes of calculating the Class A-1 Note Rate for each
Quarterly Interest Period on the second business day prior to the commencement
of each LIBOR Reset Period within such Quarterly Interest Period (or, in the
case of the initial LIBOR Reset Period, on the second business day prior the
Closing Date) (each, a "LIBOR Determination Date"). For purposes of calculating
Three-Month LIBOR, a business day is any day on which banks in The City of New
York and the City of London are open for the transaction of international
business. Interest due for any Quarterly Interest Period will be determined
based on the actual number of days in such Quarterly Interest Period over a
360-day year.

      "Three-Month LIBOR" means, with respect to any LIBOR Reset Period, the
London interbank offered rate for deposits in U.S. dollars having a maturity of
three months commencing on the related LIBOR Determination Date (the "Index
Maturity") which appears on Telerate Page 3750 as of 11:00 a.m. London time, on
such LIBOR Determination Date. If such 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 such LIBOR Determination Date to prime banks in the London
interbank market by the Reference Banks. The Administrator will request the
principal London office of each such Reference Bank to provide a quotation of
its rate. If at least two such quotations are provided, the rate for that day
will be the arithmetic mean of the quotations. If fewer than two quotations are
provided, the rate for that day will be the arithmetic mean of the rates quoted
by major banks in The City of New York, selected by the Administrator, at
approximately 11:00 a.m. New York time, on such LIBOR Determination Date for
loans in U.S. dollars to leading European banks having the Index Maturity and in
a principal amount equal to an amount of not less than U.S. $1,000,000;
provided, however, that if the banks selected as aforesaid are not quoting as
mentioned in this sentence, Three-Month LIBOR in effect for the applicable LIBOR
Reset Period will be Three-Month LIBOR in effect for the previous LIBOR Reset
Period.

      "LIBOR Reset Period" means the three-month period commencing on the 28th
day (or, if any such date is not a business day, on the next succeeding business
day) of each January, April, July and October and ending on the day immediately
preceding the following LIBOR Reset Period; provided, however, that the initial
LIBOR Reset Period will commence on the Closing Date.

                                    -A-1-5-
<PAGE>

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

      "Reference Banks" means four major banks in the London interbank market
selected by the Administrator.

      Payments of interest on this Note due and payable on each Quarterly
Payment Date, and payments of interest together with the installment of
principal, if any, due and payable on each Quarterly Payment Date, to the extent
not in full payment of this Note, shall be made by wire transfer or check mailed
to the Person whose name appears as the Registered Holder of this Note (or one
or more Predecessor Notes) on the Note Register on the Record Date, except that
with respect to Notes registered on the Record Date in the name of the nominee
of the Clearing Agency, unless Definitive Notes have been issued (initially,
such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such
checks shall be mailed to the Person entitled thereto at the address of such
Person as it appears on the Note Register as of the applicable Record Date
without requiring that this Note be submitted for notation of payment, and the
mailing of such check shall constitute payment of the amount thereof regardless
of whether such check is returned undelivered. Any reduction in the principal
amount of this Note (or any one or more Predecessor Notes) effected by any
payments made on any Quarterly Payment Date shall be binding upon all future
Noteholders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon. If funds are expected to be available, as provided in the Indenture, for
payment in full of the then remaining unpaid principal amount of this Note on a
Quarterly Payment Date, then the Indenture Trustee, in the name of and on behalf
of the Issuer, will notify the Person who was the Noteholder hereof as of the
Record Date preceding such Quarterly Payment Date by notice mailed no later than
five days prior to such Quarterly Payment Date and the amount then due and
payable shall be payable only upon presentation and surrender of this Note at
the Indenture Trustee's Corporate Trust Office or at the office of the Indenture
Trustee's agent appointed for such purposes located in the Borough of Manhattan,
The City of New York.

      The Issuer shall pay interest on overdue installments of interest at the
Class A-1 Note Rate to the extent lawful.

      As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Note may be registered on the Note Register upon
surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Noteholder hereof or his attorney duly
authorized in writing, with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar, which requirements
include membership or participation in Securities Transfer Agent's Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP
(all in accordance with the Exchange Act), and such other documents as the
Indenture Trustee may require, and thereupon one

                                    -A-1-6-
<PAGE>

or more new Notes of authorized denominations and in the same aggregate
principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of
this Note, but the transferor may be required to pay a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
such registration of transfer or exchange.

      Each Noteholder or Note Owner, by its acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in the Note, covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Seller, the Company, the Administrator, the Servicer, the
Eligible Lender Trustee or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Seller, the Company, the Administrator, the Servicer, the
Indenture Trustee or the Eligible Lender Trustee in its individual capacity or
(ii) any partner, owner, beneficiary, agent, officer, director or employee of
the Seller, the Company, the Administrator, the Servicer, the Indenture Trustee
or the Eligible Lender Trustee in its individual capacity, any holder or owner
of a beneficial interest in the Issuer, the Eligible Lender Trustee or the
Indenture Trustee or of any successor or assign of the Seller, the Company, the
Administrator, the Servicer, the Indenture Trustee or the Eligible Lender
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee and the Eligible Lender
Trustee have no such obligations in their individual capacity) and except that
any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity.

      Each Noteholder or Note Owner, by its acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder or Note Owner will
not at any time institute against the Seller, the Company or the Issuer, or join
in any institution against the Seller, the Company or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency, receivership or liquidation
proceedings or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the other Basic Documents.

      The Issuer has entered into this Indenture and this Note is issued with
the intention that, for federal, state, foreign, and local income and franchise
tax and usury purposes, this Note will be treated as indebtedness of the Company
secured by the Trust Estate. Each Noteholder, by its acceptance of a Note (and
each Note Owner by its acceptance of a beneficial interest in a Note) agrees to
treat this Note for federal, state, foreign and local income and franchise tax
and usury purposes as indebtedness of the Company secured by the Trust Estate.

      Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes whether or not this Note be
overdue, and neither the Issuer, the Indenture Trustee nor any such agent shall
be affected by notice to the contrary.

                                    -A-1-7-
<PAGE>

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Noteholders under the Indenture at any time by the
Issuer with the prior written consent of any Swap Counterparties and the
Noteholders representing a majority of the Outstanding Amount of all Notes at
the time outstanding. The Indenture also contains provisions permitting the
Noteholders representing specified percentages of the Outstanding Amount of the
Notes, on behalf of all the Noteholders, with the prior written consent of any
Swap Counterparties, to waive compliance by the Issuer with certain provisions
of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the holder of this Note (or any one
or more Predecessor Notes) shall be conclusive and binding upon such holder and
upon all future holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Note. The Indenture
also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture with the consent of any Swap
Counterparties but without the consent of holders of the Notes issued
thereunder.

      The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

      The Issuer is permitted by the Indenture, under certain circumstances, to
merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

      The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

      This Note shall be construed in accordance with the laws of the State of
New York, without reference to its conflict of law provisions, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

      No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency, herein prescribed.

      Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Bankers Trust Company in its individual
capacity, Bank One, National Association in its individual capacity, any owner
of a beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns
shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal of or interest on, or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in this
Note or the Indenture; it being expressly understood that said covenants,
obligations and indemnifications have been made by the Eligible Lender Trustee
for the sole purposes of binding the interests of the Eligible Lender Trustee in
the assets of the Issuer. The Noteholder of this Note by the acceptance hereof
agrees that, except as expressly provided in the Basic Documents, in the case of
an Event of Default under the Indenture, the Noteholder shall have

                                    -A-1-8-
<PAGE>

no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to
prevent recourse to, and enforcement against, the assets of the Issuer for any
and all liabilities, obligations and undertakings contained in the Indenture or
in this Note.

                                    -A-1-9-
<PAGE>

                                   ASSIGNMENT

      Social Security or taxpayer I.D. or other identifying number of assignee

      ________________________

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
      unto

      _______________________________________
      (name and address of assignee)

      the within Note and all rights thereunder, and hereby irrevocably
      constitutes and appoints ______________________, attorney, to transfer
      said Note on the books kept for registration thereof, with full power of
      substitution in the premises.

      Dated: _________________

                                             _________________________________*/
                                             Signature Guaranteed:

                                             _________________________________*/

----------
*/    NOTICE: The signature to this assignment must correspond with the name of
      the registered owner as it appears on the face of the within Note in every
      particular, without alteration, enlargement or any change whatever. Such
      signature must be guaranteed by an "eligible guarantor institution"
      meeting the requirements of the Note Registrar, which requirements include
      membership or participation in STAMP or such other "signature guarantee
      program" as may be determined by the Note Registrar in addition to, or in
      substitution for, STAMP, all in accordance with the Securities Exchange
      Act of 1934, as amended.

                                    -A-1-10-
<PAGE>

                                                                     EXHIBIT A-2
                                                                TO THE INDENTURE

                            [FORM OF CLASS A-2 NOTE]

                                 CLASS A-2 NOTE

                       SEE REVERSE FOR CERTAIN DEFINITIONS

      Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

      THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. THIS NOTE IS NOT GUARANTEED OR
INSURED BY ANY GOVERNMENTAL AGENCY.

REGISTERED                                   CUSIP NO.
$_________

No. R-

                          SMS STUDENT LOAN TRUST 2000-A

                CLASS A-2 FLOATING RATE ASSET-BACKED SENIOR NOTES

      SMS Student Loan Trust 2000-A, a trust organized and existing under the
laws of the State of Delaware (herein referred to as the "Issuer"), for value
received, hereby promises to pay to ______________________________, or
registered assigns, the principal sum of __________________________________
DOLLARS payable on each Quarterly Payment Date in an amount equal to the result
obtained by multiplying (i) a fraction the numerator of which is $___________
and the denominator of which is $_____________ by (ii) the aggregate amount, if
any, payable to Noteholders on such Quarterly Payment Date in respect of
principal of the Class A-2 Notes pursuant to Section 3.01 of the Indenture dated
as of January 1, 2000 (the "Indenture"),

                                    -A-2-1-
<PAGE>

between the Issuer and Bankers Trust Company, a New York banking corporation, as
Indenture Trustee (the "Indenture Trustee") (capitalized terms used but not
defined herein shall have the meanings ascribed thereto in the Indenture, which
also references rules as to usage that shall be applicable herein); provided,
however, that no principal shall be payable on this Note until after the end of
the Revolving Period; and provided, further, that the entire unpaid principal
amount of this Note shall be due and payable on the October 2028 Quarterly
Payment Date (the "Class A-2 Note Final Maturity Date") and the Redemption Date,
if any, pursuant to Section 10.01(b) or 10.01(c) of the Indenture.

      The Issuer will pay interest on this Note, at the rate per annum equal to
the Class A-2 Note Rate (assigned on the reverse hereof), on each Quarterly
Payment Date until the principal of this Note is paid or made available for
payment, on the principal amount of this Note outstanding on the preceding
Quarterly Payment Date, after giving effect to all payments of principal made on
the preceding Quarterly Payment Date (or, in the case of the first Quarterly
Payment Date, on the Closing Date), subject to certain limitations contained in
Section 3.01 of the Indenture. Interest on this Note will accrue for each
Quarterly Payment Date from the most recent Quarterly Payment Date on which
interest has been paid to but excluding such Quarterly Payment Date or, if no
interest has yet been paid, from January 25, 2000 (each, a "Quarterly Interest
Period"). Interest on this Note will be computed on the basis of the actual
number of days elapsed in each Quarterly Interest Period and a 360-day year.
Such principal of and interest on this Note shall be paid in the manner
specified on the reverse hereof.

      The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

      Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note.

      Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

                                    -A-2-2-
<PAGE>

      IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                             SMS STUDENT LOAN TRUST 2000-A

                                             By: BANK ONE, NATIONAL ASSOCIATION,
                                                 not in its individual capacity
                                                 but solely as Eligible Lender
                                                 Trustee under the Trust
                                                 Agreement

                                             By: _______________________________
                                                 Authorized Signatory

Date:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

      This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                             BANKERS TRUST COMPANY, not in its
                                             individual capacity but solely as
                                             Indenture Trustee

                                             By: _______________________________
                                                 Authorized Signatory

Date:

                                    -A-2-3-
<PAGE>

                                 REVERSE OF NOTE

      This Note is one of a duly authorized issue of Notes of the Issuer
designated as its Class A-2 Floating Rate Asset-Backed Senior Notes (herein
called the "Class A-2 Notes"), which, together with the Class A-1 Floating Rate
Asset-Backed Senior Notes (the "Class A-1 Notes" and, together with the Class
A-2 Notes, the "Senior Notes") and the Floating Rate Asset-Backed Subordinate
Notes (the "Subordinate Notes" and, together with the Senior Notes, the "Notes")
are issued under the Indenture, to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Noteholders. The Class A-2 Notes are subject to all terms of the Indenture.

      The Class A-2 Notes are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.
Allocations of principal will be made among the Class A-1 Notes, the Class A-2
Notes and the Subordinate Notes as provided in the Indenture. The Senior Notes
collectively are senior in right of payment to the Subordinate Notes, all as and
to the extent provided in the Indenture.

      Principal of the Class A-2 Notes will be payable on each Quarterly Payment
Date after (i) the end of the Revolving Period and (ii) the outstanding
principal amount of the Class A-1 Notes has been reduced to zero in an amount
described in the Indenture. "Quarterly Payment Date" means the twenty-eighth day
of each January, April, July and October, or, if any such date is not a Business
Day, the next succeeding Business Day, commencing April 2000.

      As provided in the Indenture, the Class A-2 Notes may be redeemed in part
on the Quarterly Payment Date on which the Revolving Period ends (or on the
Quarterly Payment Date on or immediately following the last day of the Revolving
Period, if the Revolving Period does not end on a Quarterly Payment Date) in the
event that any amount remains on deposit in the Collateral Reinvestment Account
after giving effect to all Additional Fundings, including any Additional
Fundings, on such Quarterly Payment Date and payments to any Swap Counterparties
of any prior related unpaid Net Trust Swap Payment Carryover Shortfalls as of
such date.

      As provided in the Indenture, if as of the Special Determination Date, the
amount on deposit in the Prefunding Account is greater than $10,000,000, such
amount will be distributed on the first Quarterly Payment Date thereafter to
redeem each class of Class A-1 and Class A-2 Notes, pro rata, based on the
initial principal balance of each class of Class A-1 and Class A-2 Notes.

      As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-2 Note Final Maturity Date and
the Redemption Date, if any, pursuant to Section 10.01(b) or 10.01(c) of the
Indenture. Notwithstanding the foregoing, the entire unpaid principal amount of
the Notes shall be due and payable on the date on which (i) an Event of Default
shall have occurred and be continuing and (ii) the Indenture Trustee or the
Noteholders representing not less than a majority of the Outstanding principal
amount of the Notes shall have declared the

                                    -A-2-4-
<PAGE>

Notes to be immediately due and payable in the manner provided in Section 5.02
of the Indenture. All principal payments of the Class A-2 Notes shall be made
pro rata to the Class A-2 Noteholders entitled thereto.

      Interest on the Class A-2 Notes will be payable on each Quarterly Payment
Date, commencing April 2000, on the principal amount outstanding of such Notes
until the principal amount thereof is paid in full, at a rate per annum equal to
the Class A-2 Note Rate. The "Class A-2 Note Rate" for each Quarterly Payment
Date and the related LIBOR Reset Period shall be equal to Three-Month LIBOR for
the related LIBOR Reset Period plus 0.19%;

      Pursuant to the Administration Agreement, the Administrator will determine
Three-Month LIBOR for purposes of calculating the Class A-2 Note Rate for each
Quarterly Interest Period on the second business day prior to the commencement
of each LIBOR Reset Period within such Quarterly Interest Period (or, in the
case of the initial LIBOR Reset Period, on the second business day prior the
Closing Date) (each, a "LIBOR Determination Date"). For purposes of calculating
Three-Month LIBOR, a business day is any day on which banks in The City of New
York and the City of London are open for the transaction of international
business. Interest due for any Quarterly Interest Period will be determined
based on the actual number of days in such Quarterly Interest Period over a
360-day year.

      "Three-Month LIBOR" means, with respect to any LIBOR Reset Period, the
London interbank offered rate for deposits in U.S. dollars having a maturity of
three months commencing on the related LIBOR Determination Date (the "Index
Maturity") which appears on Telerate Page 3750 as of 11:00 a.m. London time, on
such LIBOR Determination Date. If such 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 such LIBOR Determination Date to prime banks in the London
interbank market by the Reference Banks. The Administrator will request the
principal London office of each such Reference Bank to provide a quotation of
its rate. If at least two such quotations are provided, the rate for that day
will be the arithmetic mean of the quotations. If fewer than two quotations are
provided, the rate for that day will be the arithmetic mean of the rates quoted
by major banks in The City of New York, selected by the Administrator, at
approximately 11:00 a.m. New York time, on such LIBOR Determination Date for
loans in U.S. dollars to leading European banks having the Index Maturity and in
a principal amount equal to an amount of not less than U.S. $1,000,000;
provided, however, that if the banks selected as aforesaid are not quoting as
mentioned in this sentence, Three-Month LIBOR in effect for the applicable LIBOR
Reset Period will be Three-Month LIBOR in effect for the previous LIBOR Reset
Period.

      "LIBOR Reset Period" means the three-month period commencing on the 28th
day (or, if any such date is not a business day, on the next succeeding business
day) of each January, April, July and October and ending on the day immediately
preceding the following LIBOR Reset Period; provided, however, that the initial
LIBOR Reset Period will commence on the Closing Date.

                                    -A-2-5-
<PAGE>

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

      "Reference Banks" means four major banks in the London interbank market
selected by the Administrator.

      Payments of interest on this Note due and payable on each Quarterly
Payment Date, and payments of interest together with the installment of
principal, if any, due and payable on each Quarterly Payment Date, to the extent
not in full payment of this Note, shall be made by wire transfer or check mailed
to the Person whose name appears as the Registered Holder of this Note (or one
or more Predecessor Notes) on the Note Register on the Record Date, except that
with respect to Notes registered on the Record Date in the name of the nominee
of the Clearing Agency, unless Definitive Notes have been issued (initially,
such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such
checks shall be mailed to the Person entitled thereto at the address of such
Person as it appears on the Note Register as of the applicable Record Date
without requiring that this Note be submitted for notation of payment, and the
mailing of such check shall constitute payment of the amount thereof regardless
of whether such check is returned undelivered. Any reduction in the principal
amount of this Note (or any one or more Predecessor Notes) effected by any
payments made on any Quarterly Payment Date shall be binding upon all future
Noteholders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon. If funds are expected to be available, as provided in the Indenture, for
payment in full of the then remaining unpaid principal amount of this Note on a
Quarterly Payment Date, then the Indenture Trustee, in the name of and on behalf
of the Issuer, will notify the Person who was the Noteholder hereof as of the
Record Date preceding such Quarterly Payment Date by notice mailed no later than
five days prior to such Quarterly Payment Date and the amount then due and
payable shall be payable only upon presentation and surrender of this Note at
the Indenture Trustee's Corporate Trust Office or at the office of the Indenture
Trustee's agent appointed for such purposes located in the Borough of Manhattan,
The City of New York.

      The Issuer shall pay interest on overdue installments of interest at the
Class A-2 Note Rate to the extent lawful.

      As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Note may be registered on the Note Register upon
surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Noteholder hereof or his attorney duly
authorized in writing, with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar, which requirements
include membership or participation in Securities Transfer Agent's Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP
(all in accordance with the Exchange Act), and such other documents as the
Indenture Trustee may require, and thereupon one or more new Notes of authorized
denominations and in the same aggregate principal amount will be

                                    -A-2-6-
<PAGE>

issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

      Each Noteholder or Note Owner, by its acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in the Note, covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Seller, the Company, the Administrator, the Servicer, the
Eligible Lender Trustee or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Seller, the Company, the Administrator, the Servicer, the
Indenture Trustee or the Eligible Lender Trustee in its individual capacity or
(ii) any partner, owner, beneficiary, agent, officer, director or employee of
the Seller, the Company, the Administrator, the Servicer, the Indenture Trustee
or the Eligible Lender Trustee in its individual capacity, any holder or owner
of a beneficial interest in the Issuer, the Eligible Lender Trustee or the
Indenture Trustee or of any successor or assign of the Seller, the Company, the
Administrator, the Servicer, the Indenture Trustee or the Eligible Lender
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee and the Eligible Lender
Trustee have no such obligations in their individual capacity) and except that
any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity.

      Each Noteholder or Note Owner, by its acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder or Note Owner will
not at any time institute against the Seller, the Company or the Issuer, or join
in any institution against the Seller, the Company or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency, receivership or liquidation
proceedings or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the other Basic Documents.

      The Issuer has entered into this Indenture and this Note is issued with
the intention that, for federal, state, foreign, and local income and franchise
tax and usury purposes, this Note will be treated as indebtedness of the Company
secured by the Trust Estate. Each Noteholder, by its acceptance of a Note (and
each Note Owner by its acceptance of a beneficial interest in a Note) agrees to
treat this Note for federal, state, foreign and local income and franchise tax
and usury purposes as indebtedness of the Company secured by the Trust Estate.

      Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes whether or not this Note be
overdue, and neither the Issuer, the Indenture Trustee nor any such agent shall
be affected by notice to the contrary.

                                    -A-2-7-
<PAGE>

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Noteholders under the Indenture at any time by the
Issuer with the prior written consent of any Swap Counterparties and the
Noteholders representing a majority of the Outstanding Amount of all Notes at
the time outstanding. The Indenture also contains provisions permitting the
Noteholders representing specified percentages of the Outstanding Amount of the
Notes, on behalf of all the Noteholders, with the prior written consent of any
Swap Counterparties, to waive compliance by the Issuer with certain provisions
of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the holder of this Note (or any one
or more Predecessor Notes) shall be conclusive and binding upon such holder and
upon all future holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Note. The Indenture
also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture with the prior written consent of any Swap
Counterparties but without the consent of holders of the Notes issued
thereunder.

      The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

      The Issuer is permitted by the Indenture, under certain circumstances, to
merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

      The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

      This Note shall be construed in accordance with the laws of the State of
New York, without reference to its conflict of law provisions, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

      No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency, herein prescribed.

      Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Bankers Trust Company in its individual
capacity, Bank One, National Association in its individual capacity, any owner
of a beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns
shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal of or interest on, or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in this
Note or the Indenture; it being expressly understood that said covenants,
obligations and indemnifications have been made by the Eligible Lender Trustee
for the sole purposes of binding the interests of the Eligible Lender Trustee in
the assets of the Issuer. The Noteholder of this Note by the acceptance hereof
agrees that, except as expressly provided in the Basic Documents, in the case of
an Event of Default under the Indenture, the Noteholder shall have

                                    -A-2-8-
<PAGE>

no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to
prevent recourse to, and enforcement against, the assets of the Issuer for any
and all liabilities, obligations and undertakings contained in the Indenture or
in this Note.

                                    -A-2-9-
<PAGE>

      Social Security or taxpayer I.D. or other identifying number of assignee

      ________________________

            FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
            transfers unto

      _______________________________________________
            (name and address of assignee)

      the within Note and all rights thereunder, and hereby irrevocably
      constitutes and appoints ______________________, attorney, to transfer
      said Note on the books kept for registration thereof, with full power of
      substitution in the premises.

      Dated: _________________

                                             _________________________________*/
                                             Signature Guaranteed:

                                             _________________________________*/

----------
*/    NOTICE: The signature to this assignment must correspond with the name of
      the registered owner as it appears on the face of the within Note in every
      particular, without alteration, enlargement or any change whatever. Such
      signature must be guaranteed by an "eligible guarantor institution"
      meeting the requirements of the Note Registrar, which requirements include
      membership or participation in STAMP or such other "signature guarantee
      program" as may be determined by the Note Registrar in addition to, or in
      substitution for, STAMP, all in accordance with the Securities Exchange
      Act of 1934, as amended.

                                    -A-2-10-
<PAGE>

                                                                     EXHIBIT A-3
                                                                TO THE INDENTURE

                           [FORM OF SUBORDINATE NOTE]

                                SUBORDINATE NOTE

                       SEE REVERSE FOR CERTAIN DEFINITIONS

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES OR BLUE SKY
LAWS OF ANY STATE IN THE UNITED STATES OR ANY FOREIGN SECURITIES LAWS. BY ITS
ACCEPTANCE OF THIS NOTE THE HOLDER HEREOF IS DEEMED TO REPRESENT TO THE SELLER
AND THE INDENTURE TRUSTEE THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT ("QIB") AND IS ACQUIRING THIS NOTE
FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR
AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QIBs). BY TAKING POSSESSION OF THIS
NOTE, THE HOLDER SHALL BE DEEMED TO HAVE REPRESENTED THAT IF IT IS ACTING ON
BEHALF OF ONE OR MORE THIRD PARTIES (OTHER THAN A BANK), EACH OF SUCH THIRD
PARTIES WILL OWN AT LEAST $500,000. IT IS A QIB.

NO SALE, PLEDGE OR OTHER TRANSFER OF ANY SUBORDINATE NOTES MAY BE MADE BY ANY
PERSON UNLESS EITHER SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE (i) TO THE
SELLER OR (ii) TO A PERSON WHO THE SELLER REASONABLY BELIEVES AFTER DUE INQUIRY
IS A QIB ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QIBs) IN RELIANCE ON, AND
TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER IS BEING MADE IN
RELIANCE ON, RULE 144A. NO SALE, PLEDGE OR OTHER TRANSFER MAY BE MADE TO ANY ONE
PERSON FOR SUBORDINATE NOTES WITH A FACE AMOUNT OF LESS THAN $500,000 AND, IN
THE CASE OF ANY PERSON ACTING ON BEHALF OF ONE OR MORE THIRD PARTIES (OTHER THAN
A BANK (AS DEFINED IN SECTION 3(A)(2) OF THE SECURITIES ACT) ACTING IN ITS
FIDUCIARY CAPACITY), FOR SUBORDINATE NOTES WITH A FACE AMOUNT OF LESS THAN
$500,000 FOR EACH SUCH THIRD PARTY.

SECTION 2.04 OF THE INDENTURE CONTAINS FURTHER RESTRICTIONS ON THE TRANSFER AND
RESALE OF THIS NOTE. EACH TRANSFEREE OF THIS NOTE, BY ACCEPTANCE HEREOF, IS
DEEMED TO HAVE ACCEPTED THIS NOTE SUBJECT TO THE FOREGOING RESTRICTIONS ON
TRANSFERABILITY.

EACH NOTEHOLDER, BY ITS ACCEPTANCE OF A NOTE, COVENANTS AND AGREES THAT BY
ACCEPTING THE BENEFITS OF THE INDENTURE THAT SUCH NOTEHOLDER WILL NOT AT ANY
TIME INSTITUTE AGAINST THE SELLER, THE COMPANY OR THE

                                    -A-3-1-
<PAGE>

ISSUER, OR JOIN IN ANY INSTITUTION AGAINST THE SELLER, THE COMPANY OR THE ISSUER
OF, ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY, RECEIVERSHIP OR
LIQUIDATION PROCEEDING OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR
STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO
THE NOTES, THE INDENTURE OR THE OTHER BASIC DOCUMENTS.

      Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) or its agent for registration of transfer, exchange or payment,
and any Note issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

                                    -A-3-2-
<PAGE>

      THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. THIS NOTE IS NOT GUARANTEED OR
INSURED BY ANY GOVERNMENTAL AGENCY.

REGISTERED                                   CUSIP NO.
$_________

No. R-

                          SMS STUDENT LOAN TRUST 2000-A

                  FLOATING RATE ASSET-BACKED SUBORDINATE NOTES

      SMS Student Loan Trust 2000-A, a trust organized and existing under the
laws of the State of Delaware (herein referred to as the "Issuer"), for value
received, hereby promises to pay to ______________________, or registered
assigns, the principal sum of ___________________________________________
DOLLARS payable on each Quarterly Payment Date in an amount equal to the result
obtained by multiplying (i) a fraction the numerator of which is $____________
and the denominator of which is $___________ by (ii) the aggregate amount, if
any, payable to Noteholders on such Quarterly Payment Date in respect of
principal of the Subordinate Notes pursuant to Section 3.01 of the Indenture
dated as of January 1, 2000 (the "Indenture"), between the Issuer and Bankers
Trust Company, a New York banking corporation, as Indenture Trustee (the
"Indenture Trustee") (capitalized terms used but not defined herein shall have
the meanings ascribed thereto in the Indenture, which also references rules as
to usage that shall be applicable herein); provided, however, that no principal
shall be payable on this Note until the principal balance of the Senior Notes
has been paid in full; and provided, further, that the entire unpaid principal
amount of this Note shall be due and payable on the April 2037 Quarterly Payment
Date (the "Subordinate Note Final Maturity Date") and the Redemption Date, if
any, pursuant to Section 10.01(b) or 10.01(c) of the Indenture.

      The Issuer will pay interest on this Note at the rate per annum equal to
the Subordinate Note Rate (as defined on the reverse hereof), on each Quarterly
Payment Date until the principal of this Note is paid or made available for
payment, on the principal amount of this Note outstanding on the preceding
Quarterly Payment Date, after giving effect to all payments of principal made on
the preceding Quarterly Payment Date (or, in the case of the first Quarterly
Payment Date, on the Closing Date), subject to certain limitations contained in
Section 3.01 of the Indenture. Interest on this Note will accrue for each
Quarterly Payment Date from the most recent Quarterly Payment Date on which
interest has been paid to but excluding such Quarterly Payment Date or, if no
interest has yet been paid, from January 25, 2000 (each, a "Quarterly Interest
Period"). Interest on this Note will be computed on the basis of the actual
number of days elapsed in each Quarterly Interest Period and a 360-day year.
Such principal of and interest on this Note shall be paid in the manner
specified on the reverse hereof.

                                    -A-3-3-
<PAGE>

      The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

      Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note.

      Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

                                    -A-3-4-
<PAGE>

      IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                             SMS STUDENT LOAN TRUST 2000-A

                                             By: BANK ONE, NATIONAL ASSOCIATION,
                                                 not in its individual capacity
                                                 but solely as Eligible Lender
                                                 Trustee under the Trust
                                                 Agreement

                                             By: _______________________________
                                                 Authorized Signatory

Date:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

      This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                             BANKERS TRUST COMPANY, not in its
                                             individual capacity but solely as
                                             Indenture Trustee

                                             By: _______________________________
                                                 Authorized Signatory

Date:

                                    -A-3-5-
<PAGE>

                                 REVERSE OF NOTE

      This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Floating Rate Asset-Backed Subordinate Notes (herein called
the "Subordinate Notes"), which, together with the Class A-1 Notes Floating Rate
Asset-Backed Senior Notes (the "Class A-1 Notes") and the Class A-2 Floating
Rate Asset-Backed Senior Notes (the "Class A-2 Notes" and, together with the
Class A-1 Notes, the "Senior Notes"; the Senior Notes and the Subordinate Notes,
collectively, the "Notes") are issued under the Indenture, to which Indenture
and all indentures supplemental thereto reference is hereby made for a statement
of the respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Noteholders. The Subordinate Notes are subject to all terms of
the Indenture.

      The Subordinate Notes are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.
Allocations of principal will be made among the Class A-1 Notes, the Class A-2
Notes and the Subordinate Notes as provided in the Indenture. The Senior Notes
collectively are senior in right of payment to the Subordinate Notes, all as and
to the extent provided in the Indenture.

      Principal of the Subordinate Notes will be payable on each Quarterly Date
on or after the date on which the principal amount of the Senior Notes has been
paid in its entirety, in an amount described on the face hereof. "Quarterly
Payment Date" means the twenty-eighth day of each January, April, July and
October, or, if any such date is not a Business Day, the next succeeding
Business Day, commencing April 2000.

      As provided in the Indenture, the Subordinate Notes may be redeemed in
part on the Quarterly Payment Date on which the Revolving Period ends (or on the
Quarterly Payment Date on or immediately following the last day of the Revolving
Period, if the Revolving Period does not end on a Quarterly Payment Date) in the
event that any amount remains on deposit in the Collateral Reinvestment Account
after giving effect to all Additional Fundings, including any Additional
Fundings, on such Quarterly Payment Date and payments to any Swap Counterparties
of any prior related unpaid Net Trust Swap Payment Carryover Shortfalls as of
such date.

      As provided in the Indenture, if as of the Special Determination Date, the
amount on deposit in the Prefunding Account is greater than $10,000,000, such
amount will be distributed on the first Quarterly Payment Date thereafter to
redeem each class of Class A-1 and Class A-2 Notes, pro rata, based on the
initial principal balance of each class of Class A-1 and Class A-2 Notes.

      As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Subordinate Note Final Maturity Date
and the Redemption Date, if any, pursuant to Section 10.01(b) or 10.01(c) of the
Indenture. Notwithstanding the foregoing, the entire unpaid principal amount of
the Notes shall be due and payable on the date on which (i) an Event of Default
shall have occurred and be continuing and (ii) the Indenture Trustee or the
Noteholders

                                    -A-3-6-
<PAGE>

representing not less than a majority of the Outstanding principal amount of the
Notes shall have declared the Notes to be immediately due and payable in the
manner provided in Section 5.02 of the Indenture. All principal payments of the
Subordinate Notes shall be made pro rata to the Subordinate Noteholders entitled
thereto.

      Interest on the Subordinate Notes will be payable on each Quarterly
Payment Date, commencing April 2000, on the principal amount outstanding of such
Notes until the principal amount thereof is paid in full, at a rate per annum
equal to the Subordinate Note Rate. The "Subordinate Note Rate" for each
Quarterly Payment Date and the related LIBOR Reset Period shall be equal to
Three-Month LIBOR for the related LIBOR Reset Period plus 0.55%; provided that
if the Subordinate Note Trigger is triggered on any date, the Subordinate Note
Rate shall equal zero until the Subordinate Note Trigger is no longer triggered.

      Pursuant to the Administration Agreement, the Administrator will determine
Three-Month LIBOR for purposes of calculating the Subordinate Note Rate for each
Quarterly Interest Period on the second business day prior to the commencement
of each LIBOR Reset period within such Quarterly Interest Period (or, in the
case of the initial LIBOR Reset Period, on the second business day prior the
Closing Date) (each, a "LIBOR Determination Date"). For purposes of calculating
Three-Month LIBOR, a business day is any day on which banks in The City of New
York and the City of London are open for the transaction of international
business. Interest due for any Quarterly Interest Period will be determined
based on the actual number of days in such Quarterly Interest Period over a
360-day year.

      "Three-Month LIBOR" means, with respect to any LIBOR Reset Period, the
London interbank offered rate for deposits in U.S. dollars having a maturity of
three months commencing on the related LIBOR Determination Date (the "Index
Maturity") which appears on Telerate Page 3750 as of 11:00 a.m. London time, on
such LIBOR Determination Date. If such 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 such LIBOR Determination Date to prime banks in the London
interbank market by the Reference Banks. The Administrator will request the
principal London office of each such Reference Bank to provide a quotation of
its rate. If at least two such quotations are provided, the rate for that day
will be the arithmetic mean of the quotations. If fewer than two quotations are
provided, the rate for that day will be the arithmetic mean of the rates quoted
by major banks in The City of New York, selected by the Administrator, at
approximately 11:00 a.m. New York time, on such LIBOR Determination Date for
loans in U.S. dollars to leading European banks having the Index Maturity and in
a principal amount equal to an amount of not less than U.S. $1,000,000;
provided, however, that if the banks selected as aforesaid are not quoting as
mentioned in this sentence, Three-Month LIBOR in effect for the applicable LIBOR
Reset Period will be Three-Month LIBOR in effect for the previous LIBOR Reset
Period.

      "LIBOR Reset Period" means the three-month period commencing on the 28th
day (or, if any such date is not a business day, on the next succeeding business
day) of each January, April,

                                    -A-3-7-
<PAGE>

July and October and ending on the day immediately preceding the following LIBOR
Reset Period; provided, however, that the initial LIBOR Reset Period will
commence on the Closing Date.

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

      "Reference Banks" means four major banks in the London interbank market
selected by the Administrator.

      Payments of interest on this Note due and payable on each Quarterly
Payment Date, and payments of interest together with the installment of
principal, if any, due and payable on each Quarterly Payment Date, to the extent
not in full payment of this Note, shall be made, if the original principal
amount of this Note is $1,000,000 or more, by wire transfer and otherwise by
check mailed to the Person whose name appears as the Registered Holder of this
Note (or one or more Predecessor Notes) on the Note Register on the Record Date.
Such checks shall be mailed to the Person entitled thereto at the address of
such Person as it appears on the Note Register as of the applicable Record Date
without requiring that this Note be submitted for notation of payment, and the
mailing of such check shall constitute payment of the amount thereof regardless
of whether such check is returned undelivered. Any reduction in the principal
amount of this Note (or any one or more Predecessor Notes) effected by any
payments made on any Quarterly Payment Date shall be binding upon all future
Noteholders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon. If funds are expected to be available, as provided in the Indenture, for
payment in full of the then remaining unpaid principal amount of this Note on a
Quarterly Payment Date, then the Indenture Trustee, in the name of and on behalf
of the Issuer, will notify the Person who was the Noteholder hereof as of the
Record Date preceding such Quarterly Payment Date by notice mailed no later than
five days prior to such Quarterly Payment Date and the amount then due and
payable shall be payable only upon presentation and surrender of this Note at
the Indenture Trustee's Corporate Trust Office or at the office of the Indenture
Trustee's agent appointed for such purposes located in the Borough of Manhattan,
The City of New York.

      The Issuer shall pay interest on overdue installments of interest at the
Subordinate Note Rate to the extent lawful.

      As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Note may be registered on the Note Register upon
surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Noteholder hereof or his attorney duly
authorized in writing, with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar, which requirements
include membership or participation in Securities Transfer Agent's Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP
(all in accordance with the Exchange Act), and such other documents as the
Indenture Trustee may require, and thereupon one

                                    -A-3-8-
<PAGE>

or more new Notes of authorized denominations and in the same aggregate
principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of
this Note, but the transferor may be required to pay a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
such registration of transfer or exchange.

      Each Noteholder, by its acceptance of a Note, covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Seller, the Company, the Administrator, the Servicer, the
Eligible Lender Trustee or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Seller, the Company, the Administrator, the Servicer, the
Indenture Trustee or the Eligible Lender Trustee in its individual capacity or
(ii) any partner, owner, beneficiary, agent, officer, director or employee of
the Seller, the Company, the Administrator, the Servicer, the Indenture Trustee
or the Eligible Lender Trustee in its individual capacity, any holder or owner
of a beneficial interest in the Issuer, the Eligible Lender Trustee or the
Indenture Trustee or of any successor or assign of the Seller, the Company, the
Administrator, the Servicer, the Indenture Trustee or the Eligible Lender
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee and the Eligible Lender
Trustee have no such obligations in their individual capacity) and except that
any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity.

      Each Noteholder, by its acceptance of a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder or Note Owner will
not at any time institute against the Seller, the Company or the Issuer, or join
in any institution against the Seller, the Company or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency, receivership or liquidation
proceedings or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the other Basic Documents.

      The Issuer has entered into this Indenture and this Note is issued with
the intention that, for federal, state, foreign, and local income and franchise
tax and usury purposes, this Note will be treated as indebtedness of the Company
secured by the Trust Estate. Each Noteholder, by its acceptance of a Note,
agrees to treat this Note for federal, state, foreign and local income and
franchise tax and usury purposes as indebtedness of the Company secured by the
Trust Estate.

      Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes whether or not this Note be
overdue, and none of the Issuer, the Indenture Trustee or any such agent shall
be affected by notice to the contrary.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Noteholders

                                    -A-3-9-
<PAGE>

under the Indenture at any time by the Issuer with the prior written consent of
any Swap Counterparties and the Noteholders representing a majority of the
Outstanding Amount of all Notes at the time outstanding. The Indenture also
contains provisions permitting the Noteholders representing specified
percentages of the Outstanding Amount of the Notes, on behalf of all the
Noteholders, with the prior written consent of any Swap Counterparties, to waive
compliance by the Issuer with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the holder of this Note (or any one or more Predecessor Notes) shall
be conclusive and binding upon such holder and upon all future holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note. The Indenture also permits the Indenture Trustee
to amend or waive certain terms and conditions set forth in the Indenture with
the prior written consent of any Swap Counterparties but without the consent of
holders of the Notes issued thereunder.

      The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

      The Issuer is permitted by the Indenture, under certain circumstances, to
merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

      The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

      This Note shall be construed in accordance with the laws of the State of
New York, without reference to its conflict of law provisions, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

      No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency, herein prescribed.

      Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Bankers Trust Company in its individual
capacity, Bank One, National Association in its individual capacity, any owner
of a beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns
shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal of or interest on, or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in this
Note or the Indenture; it being expressly understood that said covenants,
obligations and indemnifications have been made by the Eligible Lender Trustee
for the sole purposes of binding the interests of the Eligible Lender Trustee in
the assets of the Issuer. The Noteholder of this Note by the acceptance hereof
agrees that, except as expressly provided in the Basic Documents, in the case of
an Event of Default under the Indenture, the Noteholder shall have no claim
against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement

                                    -A-3-10-
<PAGE>

against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

                                    -A-3-11-
<PAGE>

                                   ASSIGNMENT

      Social Security or taxpayer I.D. or other identifying number of assignee

      _________________________

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
      unto

      ________________________________________
      (name and address of assignee)

      the within Note and all rights thereunder, and hereby irrevocably
      constitutes and appoints ______________________, attorney, to transfer
      said Note on the books kept for registration thereof, with full power of
      substitution in the premises.

      Dated: __________________

                                             _________________________________*/
                                                     Signature Guaranteed:

                                             _________________________________*/

----------
*/    NOTICE: The signature to this assignment must correspond with the name of
      the registered owner as it appears on the face of the within Note in every
      particular, without alteration, enlargement or any change whatever. Such
      signature must be guaranteed by an "eligible guarantor institution"
      meeting the requirements of the Note Registrar, which requirements include
      membership or participation in STAMP or such other "signature guarantee
      program" as may be determined by the Note Registrar in addition to, or in
      substitution for, STAMP, all in accordance with the Securities Exchange
      Act of 1934, as amended.

                                    -A-3-12-
<PAGE>

                                                      EXHIBIT B TO THE INDENTURE

                              Depository Agreement

                                     -B-1-
<PAGE>

                             CROSS-REFERENCE TABLE*

TIA Indenture

      Section                                                    Section
      -------                                                    -------

      310(a)(1)                                                  6.11
         (a)(2)                                                  6.11
         (a)(3)                                                  6.10
         (a)(4)                                                  N.A.**
         (a)(4)                                                  6.111
         (b)                                                     6.08;
                                                                 6.10; 6.11
         (c)                                                     N.A.
      311(a)                                                     6.11
         (b)                                                     6.11
         (c)                                                     N.A.
      312(a)                                                     7.01;
                                                                 7.02(a)
         (b)                                                     7.02(b)
         (c)                                                     7.02(c)
      313(a)                                                     6.06
         (b)                                                     6.06
         (c)                                                     11.05
         (d)                                                     6.06
      314(a)                                                     3.09; 7.03
         (b)                                                     3.06
         (c)                                                     2.09; 4.01
                                                                 11.01
         (d)                                                     2.09;
                                                                 11.01
         (e)                                                     11.01
         (f)                                                     3.09
      315(a)                                                     6.01
         (b)                                                     6.05
         (c)                                                     6.01
         (d)                                                     6.01
         (e)                                                     5.13
      316(a)(1)(A)                                               5.11
         (a)(1)(B)                                               5.12
         (a)(2)                                                  N.A.
         (b)                                                     5.07
         (c)                                                     1.01
      317(a)                                                     5.03
         (b)                                                     3.03
      318(a)                                                     11.07

----------
*     Note: This Cross-Reference Table shall not, for any purpose, be deemed to
      be part of the Indenture.

**    N.A. means Not Applicable.

                                     -D-2-

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