Document:

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                                                                    Exhibit 10.1

                               SERVICING AGREEMENT

     THIS SERVICING AGREEMENT (this "Agreement") is entered into as of May 1,
2002, by and among Grad Partners, Inc., a Delaware corporation (the "Servicer"),
Education Funding Capital Trust-I, a Delaware business trust (the "Issuer") and
Fifth Third Bank as Eligible Lender Trustee on behalf of the Issuer (the
"Eligible Lender Trustee").

                                   WITNESSETH:

     WHEREAS, the Issuer wishes to retain the Servicer to service the Financed
Student Loans and the Servicer wishes to undertake the obligation to service or
cause to be serviced the Financed Student Loans under the terms hereinafter set
forth; and

     WHEREAS, pursuant to this Agreement the Servicer will agree to provide, or
cause there to be provided, loan servicing services for the Financed Student
Loans;

     NOW THEREFORE, in consideration of the premises and mutual covenants
contained herein, the Issuer and the Servicer agree as follows:

Section 1. Definitions.

     Capitalized terms which are not otherwise defined in this Agreement shall
have the meanings ascribed thereto in Appendix A to that certain Indenture of
Trust dated as of May   , 2002 among the Issuer, Fifth Third Bank, as Indenture
                      --
Trustee, and Fifth Third Bank, as trust eligible lender trustee (the
"Indenture").

Section 2. Servicing Requirement and Engagement of Servicer.

     The Issuer hereby authorizes and appoints the Servicer to act as its agent
for the limited purpose of servicing the Financed Student Loans. The
authorization granted by this Agreement includes, but is not limited to,
correspondence and communication with any Guaranty Agency or the U.S. Department
of Education (the "Department") regarding the Financed Student Loans, the
assignment of claims to any guarantor or insurer of the Financed Student Loans,
communication with borrowers and any other communication, correspondence,
signature or other act required to service the Financed Student Loans in
accordance with requirements of the Act or regulations promulgated by any
Guaranty Agency.

     The Issuer hereby authorizes the Servicer to enter into subservicing
contracts with an entity acting as a subservicer pursuant to such contracts,
such entity is herein referred to as a "Subservicer", to provide the services
required of the Servicer hereunder and to meet any obligations of the Issuer
hereunder, so long as such contracts are permitted by the Indenture. In the
event Servicer commences servicing of any Financed Student Loans that were
previously serviced by a Subservicer, the Servicer shall give prompt written
notice of such event to each Rating Agency.

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Section 3. Servicer Compensation.

     a.   Subject to Section 4.07 of the Indenture, as compensation for its
          services hereunder, the Servicer shall receive a fee (the "Servicing
          Fee") equal to 0.10% of the average monthly outstanding principal
          balance of the Financed Student Loans. The Servicer shall also receive
          administrative fees, expenses and similar charges payable to
          Subservicers in respect of their services under the Subservicing
          Agreements.

     b.   The Servicer shall submit an invoice monthly to the Issuer for the
          Servicing Fee and the fees and expenses payable to Subservicers, and
          the Issuer shall remit payment therefor as shown on that invoice, but
          only to the extent of moneys available for payment therefor in the
          Operating Fund.

     c.   Payment is due within thirty (30) days after receipt of the billing
          package. The billing package shall consist of an invoice and
          supporting documentation.

     d.   The Servicer acknowledges that the Issuer shall be entitled to receive
          all payments of principal, interest and late charges received with
          respect to the Financed Student Loans and that the Servicer shall have
          no right to retain such amounts as payment of any fees due to the
          Servicer from the Issuer under the terms of this Agreement. The Issuer
          hereby authorizes the Servicer to assess, collect and retain any
          charges which the Issuer is permitted by law or regulation to assess
          with respect to not sufficient funds ("NSF") processing or other
          collection costs.

Section 4. Financed Student Loan Servicing.

     Servicer covenants and agrees to service each Financed Student Loan in
compliance with all requirements of the Act, each Guaranty Agreement and all
other laws and regulations applicable to its activities hereunder and in
accordance with the terms and conditions of this Agreement, and to perform all
services and duties customary to the servicing of Student Loans including all
collection practices. Without limiting the foregoing, in fulfillment of its
obligations hereunder, Servicer shall do the following.

     a.   Maintain a complete and separately identified record for the Financed
          Student Loans of each borrower, inclusive of all documentation and
          correspondence related to the Financed Student Loans.

     b.   Take such actions as are required under the Act with respect to
          delinquencies.

     c.   Perform the actions necessary to maintain the Guarantee and/or
          Insurance on each Financed Student Loan originated under the Act at
          all times.

     d.   Handle all required borrower contact functions and meet all servicing
          "due diligence" requirements, as that term is used under the Act and
          implementing regulations. Such functions include, for example, skip
          tracing, contacting delinquent borrowers, handling borrower requests
          for extensions or deferments, and preparing and processing claims,

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          including death, disability, default, closed school, false
          certification and bankruptcy claims.

     e.   Prepare and maintain accounting records with respect to the Financed
          Student Loans; process refunds and other adjustments; process address
          changes and maintain address records.

     f.   Collect all payments with respect to Financed Student Loans and
          deliver all such payments to the Indenture Trustee, including without
          limitation guarantee payments, with respect to the Financed Student
          Loans. Servicer shall remit collected funds by automated clearing
          house within three (3) business days of receipt to the Indenture
          Trustee. Servicer shall prepare a "Lender's Request for Payment of
          Interest and Special Allowance" to be used in billing the Department
          for interest and the special allowance for all eligible loans on a
          quarterly basis. Servicer agrees to submit the billing to the
          Department within 30 days following the last day of each quarter
          (March 31, June 30, September 30, December 31). In the event that
          Servicer does not submit the billing to the Department within 30
          calendar days following the last day of each quarter, and such failure
          is not attributable to action or inaction by the Issuer or the
          Department, the Issuer shall be entitled to payment by Servicer of
          penalty interest. Such penalty interest shall be calculated on the
          actual amount of interest subsidies and special allowance payments
          that the Issuer is entitled to receive from the Department on the
          Student Loans covered by the billing report and for the time period
          between such 30th day through the date that said billing report is
          filed with the Department by Servicer using the LIBOR rate, as quoted
          in the Wall Street Journal, for the period closest in term to the
          actual number of days covered by penalty period.

     g.   Retain summary records of contacts, follow-ups and collections
          efforts, and records of written correspondence relating to the
          Financed Student Loans of each borrower sufficient to ensure claim
          payment.

     h.   Process adjustments including NSF checks, status changes,
          forbearances, deferments and Financed Student Loans paid in full.

     i.   Complete all forms and reports required by the U.S. Department of
          Education or any Guaranty Agency.

     j.   Perform all of the Eligible Lender Trustee's and Issuer's obligations
          as holder of Student Loans as required by the Act and all regulations
          issued by the U.S. Department of Education or by the guarantor to
          implement the Act. Servicer shall have full power to sign and act on
          the Issuer's and the Eligible Lender Trustee's behalf as the Issuer's
          agent in all transactions with borrowers serviced hereunder. Each of
          Issuer and the Eligible Lender Trustee do hereby authorize,
          constitute, and appoint Servicer on its behalf and as its attorney in
          fact, to endorse those promissory notes for which a claim has been
          filed with a guarantor. Servicer will carry out its responsibilities
          hereunder in a diligent and lawful manner.

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     k.   At all times identify the Issuer and the Eligible Lender Trustee as
          the owners of the Financed Student Loans and identify the Indenture
          Trustee as a party which maintains a security interest in the Financed
          Student Loans.

     l.   Capture and retain a copy of each promissory note and each disclosure
          statement on its image system and shall store a backup image copy in a
          remote facility. Servicer shall hold the original Student Loan
          documents, including the original promissory note, a copy of the
          Student Loan application and the disclosure statement for safekeeping.

     m.   Provide reports to the Issuer and Indenture Trustee of all monetary
          transactions as well as periodic summary and account information as
          required in the "Issuer Service Manual" including such items as:

          (1)  Detailed periodic reports to support all cash transactions
               processed;

          (2)  Monthly portfolio summary reports and supporting data listings;

          (3)  A monthly listing of delinquent accounts; and

          (4)  A quarterly report of billings to the Department for interest and
               special allowances.

     n.   Ensure the timely payment of taxes, accounting fees, outside auditor
          fees, data processing costs and other costs incurred in servicing the
          Financed Student Loans.

     o.   Obtain and maintain or cause each Subservicer to obtain and maintain
          in force a fidelity bond in an amount of at least $1,000,000 upon all
          personnel of the Servicer or Subservicer, as applicable, insuring
          against any loss or damage which the Issuer, the Servicer or
          Subservicer, as applicable, might suffer as a consequence of any
          fraudulent or dishonest act of such personnel.

     p.   Obtain and maintain or cause to be obtained and maintained in force
          errors and omissions insurance coverage in an amount equal to at least
          $2,000,000 for all its customers.

     q.   Respond to all borrower inquiries in a prompt, courteous and thorough
          manner.

     r.   Establish and maintain a method for charging and collecting late
          payment fees in accordance with provisions of the Act and all other
          applicable laws and regulations.

     r.   Act as custodian and bailee with respect to all original documents and
          hold them subject to the lien of the Indenture in favor of the
          Indenture Trustee and pursuant to a bailment in a form satisfactory to
          Servicer, the Issuer and the Eligible Lender Trustee.

     s.   If any Financed Student Loan has lost its guarantee and/or insurance
          due to the actions of any prior issuer, servicer or holder of the
          Financed Student Loan, at the written request of the Issuer, use its
          best efforts to reinstate such guarantee or insurance; provided,
          however,

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          that Servicer makes no representation that such reinstatement will
          occur. Such services shall be provided at the cost agreed upon by the
          Issuer and Servicer.

     t.   If requested by the Issuer, remit monthly rebate fees to the
          Department with respect to the Financed Student Loans. Upon receipt of
          satisfactory documentation, the Issuer shall cause the Indenture to
          promptly wire transfer to Servicer or its designee, from amounts held
          under the Indenture, the amount of funds required to pay such fees.
          Servicer shall provide, or cause to be provided to the Issuer, on a
          monthly basis, information needed to determine the monthly rebate
          fees.

     u.   Accrue and capitalize interest on those Student Loans not eligible for
          interest subsidy.

     v.   Verify the current status of all borrowers not less often than
          annually through direct contact with each borrower to ensure correct
          account information. Servicer shall also seek to verify the borrower's
          status by direct or indirect contact with educational institutions.

     w.   When a Student Loan becomes due for repayment, prepare a payment
          schedule and disclosure statement and mail it to the borrower for
          signature(s). Prior to the first payment due date, repayment coupons
          will be prepared and sent to the borrowers.

     x.   Post to the borrower's account all payments of principal, interest and
          other charges.

     y.   Automatically credit the Issuer's account whenever a borrower overpays
          an account by less than $5.00, and the Issuer, at its discretion, can
          reimburse the borrower. When the overpayment is more than $5.00,
          Servicer shall remit the overpayment directly to the borrower. When a
          borrower's balance owing is less than $50.00, Servicer may, at its
          discretion, write-off the balance.

     z.   Prepare and submit all papers and documents necessary to strictly
          follow reimbursement procedures specified in the Common Manual:
          Unified Student Loan Policy, as amended from time to time, upon
          default of borrower and further agrees to promptly remit proceeds to
          Issuer upon receipt from the Guaranty Agency.

     aa.  Provide immediate notice to the Issuer of any proceeding or action
          filed, asserted or threatened against Servicer that, if decided
          unfavorably to Servicer, would adversely impact Servicer's status as
          an eligible "third-party servicer".

Section 5. Due Diligence.

     The Servicer covenants and agrees that in discharging its obligations
hereunder it shall:

     a.   Exercise due diligence in the servicing and collection of all Financed
          Student Loans as the term "due diligence" is used in the Act and
          further defined in the regulations of the applicable Guaranty Agency.

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     b.   Exercise reasonable care and diligence in the administration and
          collection of all Financed Student Loans utilizing collection
          practices in accordance with applicable federal and state collection
          practices, laws and regulations promulgated thereunder.

     c.   Administer, collect and service the Financed Student Loans in a
          competent, diligent and orderly fashion, and, with respect to Financed
          Student Loans originated under the Act, in accordance with the
          requirements of the Act.

Section 6. Right of Inspection; Audit.

The Issuer, the Indenture Trustee, the Eligible Lender Trustee or any
governmental agency having jurisdiction over any of the same, or their
designated representatives, may at any time upon reasonable prior notice and
during normal business hours examine and audit at the sole expense of the
Issuer, the records which the Servicer or Subservicer maintain on the Financed
Student Loan being serviced, provided, however, that such activities shall not
unreasonably disrupt the Servicer's normal business operation.

Section 7. Compliance Report.

     The Servicer agrees that it shall permit, not more than once per year, the
Issuer, the Indenture Trustee or its designee to conduct or have conducted a
procedural audit regarding the Servicer's or Subservicer's compliance with the
requirements of the Act or the terms of this Agreement. Such audits shall be at
the expense of the Issuer.

Section 8. Representations, Warranties, and Covenants of Servicer.

     The Servicer makes the following representations, warranties and covenants
to the Issuer on the date of this Agreement. The Servicer shall be deemed to
have repeated the representations and warranties in clauses (a), (b), (f), (g),
(h), (i) and (l) on each date on which a new Series of Notes is issued under the
Indenture.

     a.   The Servicer (i) is duly incorporated, validly existing, and in good
          standing under the laws of the jurisdiction in which it is
          incorporated; (ii) is duly qualified to transact business and is in
          good standing as a foreign corporation in each jurisdiction where the
          nature and extent of its business and properties require due
          qualification and good standing; (iii) possesses all requisite
          authority, permits and power to conduct its business as contemplated
          by this Agreement including, without limitation, eligibility as a
          third-party servicer under the Act; and (iv) is in compliance with all
          applicable laws and regulations.

     b.   The execution and delivery by the Servicer of this Agreement and the
          performance of its obligations hereunder (i) are within its corporate
          power, (ii) have been duly authorized by all necessary corporate
          action, (iii) require no action by or filing with any governmental
          agency, except for any action or filing that has been taken or made on
          or before the date of this Agreement; and (iv) do not violate any
          provision of its certificate of incorporation or bylaws.

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     c.   The Servicer will satisfy all of its obligations set forth in this
          Agreement, maintain in effect all qualifications required in order to
          service the Financed Student Loans and comply in all material respects
          with all requirements of law if a failure to comply would have a
          materially adverse effect on its ability to service the Financed
          Student Loans.

     d.   The Servicer will not permit any rescission or cancellation of a
          Financed Student Loan except as ordered by a court or other government
          authority or as consented to by the Eligible Lender Trustee and the
          Indenture Trustee, except that it may write off any delinquent
          Financed Student Loan if the remaining balance of the borrower's
          account is less than $50.

     e.   The Servicer will not reschedule, revise, defer or otherwise
          compromise payments due on any Financed Student Loan except during any
          applicable interest only, deferral or forbearance periods or otherwise
          in accordance with all applicable standards and requirements for
          servicing of the Financed Student Loans.

     f.   All Servicer financial statements delivered to the Issuer were
          prepared according to U.S. generally accepted accounting principles
          ("GAAP") consistently applied and present fairly, in all material
          respects, the financial condition, results of operations and cash
          flows of the Servicer as of, and for the portion of the fiscal year
          ending on their date or dates (subject, in the case of financial
          statements other than annual ones, only to normal year-end
          adjustments).

     g.   No event which could cause a material adverse effect on the Servicer's
          financial condition has occurred, and if such event shall occur, the
          Servicer shall promptly give the Issuer notice thereof.

     h.   The Servicer is not subject to, or aware of the threat of, any
          litigation that is reasonably likely to be determined adversely to it
          and that, if so adversely determined, would have a material adverse
          effect on its financial condition or its ability to meet its
          obligations under this Agreement and no outstanding or unpaid
          judgments against the Servicer exist, and if such event shall occur,
          the Servicer shall promptly give the Issuer notice thereof.

     i.   The Servicer has no knowledge of any basis upon which to believe that
          each Financed Student Loan (i) is not in compliance in all material
          respects with all laws and rules and regulations with respect to any
          Guarantee thereof, and (ii) does not conform to the applicable
          requirements of eligibility for such Guarantee.

     j.   The Servicer further agrees to maintain its servicing system so that
          it will continue to provide all services required under this Agreement
          to the extent such services are not provided by one or more eligible
          third-party subservicers under the Act with adequate systems to
          perform such services.

     k.   Until all Financed Student Loans serviced hereunder have been repaid
          in full, or paid as a claim by a Guaranty Agency, or transferred to
          another servicer, the Servicer agrees as follows:

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          (i)  The Servicer shall cause to be furnished to the Issuer its
               financial statements as the Issuer may reasonably request,
               including quarterly unaudited financial statements within thirty
               (30) days after the conclusion of each fiscal quarter, and annual
               financial statements within ninety (90) days after the end of
               each fiscal year audited by nationally recognized independent
               certified public accountants and such other information with
               respect to its business affairs, assets, and liabilities as the
               Issuer may reasonably request.

          (ii) The Servicer shall maintain books, records and accounts necessary
               to prepare financial statements according to GAAP and maintain
               adequate internal financial controls.

          (iii) The Servicer shall maintain all licenses, permits, and
               franchises necessary for its business.

     l.   This Agreement will, upon execution and delivery by all parties
          thereto, constitute a legal and binding obligation of the Servicer,
          enforceable against the Servicer according to its terms.

     Upon the discovery of a breach of certain covenants that have a materially
adverse effect on the Financed Student Loans, the Servicer will be obligated to
purchase or substitute the adversely affected Financed Student Loan unless the
breach is cured within the time period prescribed in Section 10 hereof. Any
breach that relates to compliance with the requirements of the Act or the
applicable Guaranty Agency but that does not affect that Guaranty Agency's
obligation to guarantee payment of a Financed Student Loan will not be
considered to have a material adverse effect.

     The purchase or substitution and reimbursement obligations of the Servicer
will constitute the sole remedy available to the Issuer for any uncured breach.
The Servicer's purchase or substitution and reimbursement obligations are
contractual obligations that the Issuer may enforce, but the breach of these
obligations will not constitute an event of default under the Indenture.

Section 9. Representations and Warranties of Issuer.

     The Issuer represents and warrants to the Servicer on the date of this
Agreement:

     a.   The Issuer (i) is duly formed, validly existing, and in good standing
          under the laws of the jurisdiction in which it is formed; (ii) is duly
          qualified to transact business as a Delaware business trust; and (iii)
          possesses all requisite authority, permits and power to conduct its
          business as contemplated by this Agreement.

     b.   The execution and delivery by the Issuer of this Agreement and the
          performance of its obligations hereunder (i) are within its
          organizational power; (ii) have been duly authorized by all necessary
          action; and (iii) require no action by or filing with any governmental
          agency, except for any action or filing that has been taken or made on
          or before the date of this Agreement.

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     c.   This Agreement will, upon execution and delivery by all parties
          thereto, constitute a legal and binding obligation of the Issuer,
          enforceable against the Issuer according to its terms.

     d.   The Issuer is not subject to, or aware of the threat of, any
          litigation that is reasonably likely to be determined adversely to it
          and that, if so adversely determined, would have a material adverse
          effect on its financial condition relevant to this Agreement.

Section 10. Servicer Default.

     Each of the following constitutes a "Servicer Default" hereunder:

     a.   any failure by the Servicer to deliver to the Indenture Trustee any
          payment required by this Agreement, which failure continues unremedied
          for three (3) business days after written notice of such failure is
          received by the Servicer from the Eligible Lender Trustee, the
          Indenture Trustee or the Administrator or after discovery of such
          failure by an officer of the Servicer; or

     b.   any breach of a representation or warranty of the Servicer contained
          in Section 8 of this Agreement or failure by the Servicer duly to
          observe or to perform in any material respect any term, covenant or
          agreement set forth in this Agreement or in any other Basic Document
          to which the Servicer is a party, which breach or failure shall (i)
          materially and adversely affect the rights of Noteholders or any
          Counterparties and (ii) continue unremedied for a period of sixty (60)
          days after the date of discovery of such failure by an officer of the
          Servicer or on which written notice of such breach or failure,
          requiring the same to be remedied, shall have been given (A) to the
          Servicer, by the Indenture Trustee, the Eligible Lender Trustee or the
          Administrator, or (B) to the Servicer, the Indenture Trustee or the
          Eligible Lender Trustee by Noteholders representing not less than 25%
          of the Outstanding Amount of the Notes; or

     c.   the Servicer shall have commenced a voluntary case or other proceeding
          seeking liquidation, reorganization, or other relief with respect to
          itself or its debts under any bankruptcy, insolvency, or other similar
          law now or hereafter in effect or seeking the appointment of a
          trustee, receiver, liquidator, custodian, or other similar official of
          it or any substantial part of its property, or shall have made a
          general assignment for the benefit of creditors, or shall have
          declared a moratorium with respect to its debts or shall have failed
          generally to pay its debts as they become due, or shall have taken any
          action to authorize any of the foregoing; or

     d.   an involuntary case or other proceeding shall have been commenced
          against the Servicer seeking liquidation, reorganization, or other
          relief with respect to it or its debts under any bankruptcy,
          insolvency or other similar law now or hereafter in effect or seeking
          the appointment of a trustee, receiver, liquidator, custodian, or
          other similar official of it or any substantial part of its property,
          provided such action or proceeding is not dismissed within 60 days; or

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     e.   any failure by the Servicer to comply with any requirements under the
          Act resulting in a loss of its eligibility as a third-party servicer.

Section 11. Rights Upon Servicer Default.

     In each and every case, so long as the Servicer Default shall not have been
remedied, either the Indenture Trustee, or the holders of Notes evidencing not
less than 25% of the Outstanding Amount of the Notes, by notice then given in
writing to the Servicer (and to the Indenture Trustee and the Issuer if given by
the Noteholders) may terminate all the rights and obligations (other than the
rights and obligations set forth in Section 19 hereof) of the Servicer under
this Agreement. Only the Indenture Trustee or the Noteholders, and not the
Issuer, will have the ability to remove the Servicer if a Servicer Default
occurs while the Notes are Outstanding.

     As of the effective date of termination of the Servicer, all authority and
power of the Servicer under this Agreement, whether with respect to the Notes or
the Financed Student Loans or otherwise, shall, without further action, pass to
and be vested in the Indenture Trustee or such successor servicer as may be
appointed, and all files shall be disposed of pursuant to the procedures
prescribed by Section 14 hereof. The successor servicer will succeed to all the
responsibilities and duties of the Servicer under this Agreement and will be
entitled to similar compensation arrangements.

     The Servicer shall cooperate with the successor servicer, the Indenture
Trustee and the Issuer in effecting the termination of the responsibilities and
rights of the Servicer under this Agreement, including the transfer to the
successor servicer for administration by it of all cash amounts that shall at
the time be held by the Servicer for deposit, or shall thereafter be received by
it with respect to a Financed Student Loan. All reasonable costs and expenses
(including attorneys' fees) incurred in connection with transferring the
Financed Student Loan files to the successor servicer and amending this
Agreement and any other Basic Documents to reflect such succession of servicer
pursuant to this Section 11 shall be paid by the Servicer (other than the
Indenture Trustee acting as the servicer under this Section 11) upon
presentation of reasonable documentation of such costs and expenses. Upon
receipt of notice of the occurrence of a Servicer Default, the Issuer shall give
notice thereof to the Rating Agencies.

     If the Indenture Trustee is unwilling or unable to act, it may appoint, or
petition a court for the appointment of, a successor whose regular business
includes the servicing of Student Loans; provided, however, the Indenture
Trustee shall continue to act as Servicer until a successor has been so
appointed. If, however, a bankruptcy trustee or similar official has been
appointed for the Servicer, and no Servicer Default other than that appointment
has occurred, the trustee may have the power to prevent the Indenture Trustee or
the Noteholders from effecting the transfer.

Section 12. Waiver of Past Servicer Defaults.

     The Noteholders evidencing a majority of the Outstanding Amount of the
Notes, in the case of any Servicer Default which does not adversely affect the
Indenture Trustee or the Noteholders, may, on behalf of all Noteholders, waive
in writing any default by the Servicer in the performance of its obligations
hereunder and any consequences thereof, except a default in making any required
deposits to or payments from any of the Trust Accounts (or giving instructions
regarding the same) in accordance with this Agreement. Upon any such waiver of a
past default, such default shall cease to exist, and any Servicer

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Default arising therefrom shall be deemed to have been remedied for every
purpose of this Agreement. No such waiver shall extend to any subsequent or
other default or impair any right consequent thereto.

     The Issuer may designate another servicer with respect to its student
loans. Any servicer, other than Grad Partners, Inc., may be appointed, provided
that a Rating Confirmation has been received with respect thereto.

Section 13. Termination.

     This Agreement will terminate upon the occurrence of the earlier of (i) the
termination of the Indenture; (ii) early termination pursuant to Section 11
hereof; and (iii) payment in full of all of the Financed Student Loans being
serviced hereunder.

     The Servicer may not resign from its obligations and duties as Servicer
hereunder, except upon determination that the Servicer's performance of its
duties is no longer permissible under applicable law. No resignation will become
effective until the Indenture Trustee or a successor servicer has assumed the
Servicer's servicing obligations and duties under this Agreement.

     In the event of termination of this Agreement, the Issuer shall remain
liable for all fees due and payable hereunder. Termination shall be made without
prejudice to any other rights or remedies either party may have at law or in
equity. The obligations of the Servicer under Section 4 hereof, and the
representations and warranties in Section 8 shall survive any termination of
this Agreement and shall remain in effect for all Financed Student Loans while
such Financed Student Loans are serviced by the Servicer. The rights and
obligations of the Servicer contained in Section 19 hereof shall survive
termination of this Agreement. In the event that servicing on any Financed
Student Loan is transferred to a successor servicer, such successor servicer
shall be required by the Issuer to engage in reasonable good faith efforts to
obtain payment on any claim initially rejected by a guarantor for payment
including, without limitation, involving the Servicer in such effort, where the
reason for claim denial relates to the period during which the Servicer serviced
such Financed Student Loan hereunder. However, if the cause for claim denial is
reasonably attributable to the Servicer actions or inactions, the Servicer shall
be responsible therefore. Servicer acknowledges that Issuer will assign this
Agreement to the Indenture Trustee on behalf of the Noteholders and that the
Indenture Trustee will be entitled to enforce this Agreement against Servicer.

Section 14. Disposition of Files on Termination.

     Upon termination of this Agreement, all files (physical and electronic)
held by the Servicer with respect to Financed Student Loans shall be promptly
transferred to the Issuer or its designee in such form as the Issuer reasonably
requests. The Issuer shall be responsible for payment of reasonable expenses
related to the transfer of the records unless the Issuer is removing the
Financed Student Loans because of a breach by the Servicer. In such instance,
the Servicer shall bear the cost of deconverting and transferring the Financed
Student Loan documentation.

                                       11

<PAGE>

Section 15. Independent Contractor.

     The Servicer is an independent contractor and is not, and shall not hold
itself out to be, the agent of the Issuer except for the limited specific
purposes set forth in this Agreement.

Section 16. Correspondence; Disclosure.

     The parties hereto acknowledge and agree that the Servicer will handle all
communication with borrowers necessary to provide its services hereunder. Data
regarding Financed Student Loans shall be disclosed only to the Issuer, the
Indenture Trustee, the Administrator or the respective borrower, unless
otherwise required by law or certain financing covenants.

Section 17. Cooperation.

     Each party covenants and agrees to cooperate fully with the other to
facilitate the transactions contemplated by this Agreement.

Section 18. Amendments.

     This Agreement may be amended, supplemented or modified only by written
instrument duly executed by the Issuer and the Servicer with the consent of the
Indenture Trustee. So long as any Notes remain Outstanding under the Indenture,
a Rating Confirmation must be obtained with respect to any such amendment,
supplement or modification.

Section 19. Indemnification and Liability

     a.   Neither the Servicer nor any of its directors, officers, employees or
          agents will be under any liability to the Issuer or the Noteholders
          for taking any action or for refraining from taking any action
          pursuant to this Servicing Agreement, or for errors in judgment;
          provided, however, that neither the Servicer nor any person will be
          protected against any liability that would otherwise be imposed by
          reason of willful misfeasance, bad faith or negligence in the
          performance of the Servicer's duties hereunder or by reason of
          reckless disregard of its obligations and duties hereunder.

     b.   The Servicer is under no obligation to appear in, prosecute, or defend
          any legal action that is not incidental to its servicing
          responsibilities under this Agreement and that, in its opinion, may
          cause it to incur any expense or liability. The Servicer may undertake
          any reasonable action that it deems necessary or desirable in respect
          of this Agreement and the interests of the Noteholders.

     c.   If the Servicer is required to appear in, or is made a defendant in
          any legal action or proceeding commenced by any party other than the
          Issuer with respect to any matter arising hereunder, the Issuer shall
          indemnify and hold the Servicer harmless from all loss, liability, or
          expense (including reasonable attorney's fees) except for any loss,
          liability or expense arising out of or relating to the Servicer's
          willful misconduct or negligence with regard to the performance of
          services hereunder or breach of its obligations hereunder.

                                       12

<PAGE>

          Subject to the limitations set forth in paragraph 19(b) hereof, the
          Servicer shall indemnify and hold the Issuer harmless from all loss,
          liability and expense (including reasonable attorney's fees) arising
          out of or relating to the Servicer's willful misconduct or negligence
          with regard to performance of services hereunder or breach of its
          obligations hereunder, provided that in no event shall the Servicer be
          responsible or liable for any incidental, special or consequential
          damages with respect to any matter whatsoever arising out of this
          Agreement.

     d.   If a Financed Student Loan is denied the Guarantee by the Guaranty
          Agency or the loss of federal interest, special allowance, and/or
          insurance benefits, the Servicer shall have the right to take any
          action not prohibited by law or regulation to reduce its losses, if
          any, hereunder, including but not limited to curing, at its own
          expense, any due diligence or other servicing violation. If any lost
          Guarantee is not reinstated within twelve (12) months of the date the
          Servicer learns of the loss of the Guarantee on a Financed Student
          Loan, the Servicer shall take actions which make the Issuer whole with
          respect to the Financed Student Loan while maintaining the eligibility
          for future reinstatement of the Guarantee; provided, however, the
          Servicer may delay taking such actions by giving written notice to the
          Issuer not less often than each ninety (90) days that the Servicer has
          reason to believe that the Guarantee will be reinstated within time
          frames permitted by regulations. If the Servicer gives notice of such
          delay, the Servicer agrees to pay any accrued interest on the Financed
          Student Loans that may be uninsured. The Issuer agrees to use its best
          efforts to cause the repurchase, at par plus insured interest and
          benefits thereon, of any Financed Student Loan which is cured and is
          reinsured subsequent to its sale by the Issuer pursuant to actions
          taken by the Servicer to make the Issuer whole and if the sale was to
          an Eligible Lender to the extent the Issuer has, or can make
          available, fund therefor.

     e.   The Servicer shall have no responsibility for any error or omission
          (including due diligence violations) which occurred prior to the date
          the Servicer assumed responsibility for servicing the Financed Student
          Loan, nor shall the Servicer be responsible for losses, damages or
          expenses arising from any change in law or regulation which
          retroactively imposes additional requirements for documentation or
          servicing actions, provided that the Servicer has made best efforts to
          comply with retroactive additional requirements.

Section 20. Merger or Consolidation of, or Assumption of the Obligations of,
            Servicer

     Any entity into which the Servicer may be merged or consolidated, or any
entity which may result from any merger or consolidation to which the Servicer
shall be a party or any entity succeeding to the business of the Servicer, shall
be the successor to the Servicer without the execution or filing of any document
or any further act by any of the parties to this Agreement; provided, however,
that the Servicer hereby covenants that it will not consummate any of the
foregoing transactions except upon satisfaction of the following: (i) the
surviving servicer, if other than Grad Partners, Inc., executes an agreement of
assumption to perform every obligation of the Servicer under this Agreement,
(ii) immediately after giving effect to such transaction, no representation or
warranty made hereunder shall have been breached and no Servicer Default shall
have occurred and be continuing, and (iii) such consolidation, merger or
succession and such agreement of assumption comply with all the conditions
precedent, if any, provided for in this Agreement.

                                       13

<PAGE>

Section 21. Confidentiality

     The contents of this Agreement, together with all supporting documents,
exhibits, schedules, and any amendments thereto, which form the basis of the
business relationship between the Issuer and the Servicer, insofar as the same
relate to the fees charged by the Servicer, shall be held in strict confidence
by both parties and shall not be disclosed or otherwise discussed with any third
party (unless required by law or regulation), except outside counsel or
independent accountants, or in connection with the offer and sale of securities
issued or to be issued under the Indenture, without the prior written consent of
the other party.

Section 22. Nonpetition Covenant of Servicer

     The Servicer agrees not to, for any reason, institute proceedings for the
Issuer to be adjudicated as bankrupt or insolvent, or consent to the institution
of bankruptcy or insolvency proceedings against the Issuer, or file a petition
seeking or consenting to reorganization or relief under any applicable federal
or state law relating to bankruptcy, or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or other similar
official) of the Issuer or a substantial part of its property.

Section 23. Sale or Transfer of Loans; Limitations

     The Issuer agrees that if any Financed Student Loans are sold under
conditions that result in the Financed Student Loans being transferred to
another servicer, whether immediately or at some future date, the Issuer will
pay or cause to be paid, at the time such Financed Student Loans are
transferred, the deconversion fees charged by such servicer.

Section 24. Miscellaneous.

     a.   Any material written communication received at any time by the Issuer
          with respect to a Financed Student Loan or a borrower shall be
          promptly transmitted by the Issuer to the Servicer. Such
          communications include but are not limited to letters, notices of
          death or disability, adjudication of bankruptcy and like documents,
          and forms requesting deferment of repayment or loan cancellations.

     b.   This Agreement shall be governed by the laws of the State of Ohio.

     c.   All covenants contained herein and the benefits, rights and
          obligations of the parties hereunder, shall be binding upon and inure
          to the benefit of the legal representatives, successors and assigns of
          the parties hereto, including but not limited to, any successor entity
          acquiring or succeeding to the assets of either party.

     d.   This Agreement may be executed in one or more counterparts, each of
          which shall be deemed an original and all of which shall be deemed to
          constitute but one and the same instrument.

     e.   If any provisions of this Agreement shall be held, or deemed to be, or
          shall in fact be inoperative or unenforceable as applied in any
          particular situation, such circumstance shall

                                       14

<PAGE>

          not have the effect of rendering any other provision or provisions
          herein contained invalid, inoperative or unenforceable to any extent
          whatsoever. The invalidity of any one or more phrases, sentences,
          clauses or paragraphs herein contained shall have no effect on the
          remaining portions of this Agreement or any part hereof.

     f.   All notices, requests, demands or other instruments which may or are
          required to be given by either party to the other, shall be in writing
          and each shall be deemed to have been properly given when delivered
          personally on an officer of the party to whom such notice is to be
          given, or upon receipt thereof when mailed postage prepaid by
          registered or certified mail, requesting return receipt, or upon
          confirmed facsimile transmission, addressed as follows:

          If intended for the Issuer:

               Education Funding Capital Trust-I
               c/o Fifth Third Bank
               MD 10AT60
               38 Fountain Square Plaza
               Cincinnati, Ohio 45263
               Attention: Corporate Trust Administration
               Telephone: +1.513.534.3367
               Facsimile: +1.513.534.6785

               with a copy to:

               Wilmington Trust Company
               Rodney Square North
               1100 North Market Street
               Wilmington, Delaware 19890-0001
               Attention: Corporate Trust Administration
               Telephone: +1.203.975.6112
               Facsimile: +1.203.975.6299

          If intended for the Servicer:

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

          If intended for the Eligible Lender Trustee:

               Fifth Third Bank
               MD 10AT60
               38 Fountain Square Plaza

                                       15

<PAGE>

               Cincinnati, Ohio 45263
               Attention:  Corporate Trust Administration
               Telephone:  +1.513.534.3367
               Facsimile:  +1.513.534.6785

          Either party may change the address to which subsequent notices are to
          be sent to it by written notice to the other given as aforesaid, but
          any such notice of change, shall not be effective until the second
          Business Day after it is received.

     g.   This Agreement may not be terminated by any party hereto except in the
          manner and with the effect herein provided.

     h.   When the context of this Agreement so requires or implies, references
          to the Issuer include any applicable trustee.

     i.   If either party cannot fulfill its obligations (other than the payment
          of money), in part or in whole, due to a force or event outside its
          control, such obligations of that party shall be suspended and such
          party shall not be liable to the other party for any failure to
          perform hereunder as a result.

     j.   The parties hereto agree to execute or cause to be executed the
          Limited Power of Attorney attached hereto as Exhibit A.

     k.   The Servicer has and agrees to maintain a disaster recovery plan
          which, in its reasonable opinion, will permit it to continue
          operations without undue interruption in the event of fire, disaster,
          labor disruption, or Act of God.

     l.   Servicer may cause any of its duties or obligations hereunder to be
          performed by a Subservicer to the extent permitted by the Indenture.

     m.   EACH PARTY TO THIS AGREEMENT WAIVES ITS RIGHT TO A JURY TRIAL.

                                       16

<PAGE>

     IN WITNESS WHEREOF, the parties have hereunto set their hands by their duly
authorized officers as of the day and year first above written.

                                    EDUCATION FUNDING CAPITAL TRUST-I, By
                                       FIFTH THIRD BANK, as Co-Owner Trustee

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

                                    GRAD PARTNERS, INC., as Servicer

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

                                    FIFTH THIRD BANK, as Eligible Lender Trustee

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

<PAGE>

                                                                       EXHIBIT A

                            LIMITED POWER OF ATTORNEY

                                   ----------

                                   WITNESSETH:

     WHEREAS, Grad Partners, Inc., a Delaware corporation (the "Servicer"), and
Education Funding Capital Trust-I, a Delaware business trust (the "Issuer"), are
parties to the SERVICING AGREEMENT dated as of May   , 2002 (the "Servicing
                                                   --
Agreement"); and

     WHEREAS, pursuant to the Servicing Agreement, the Servicer will perform
substantially all of the obligations and duties with regard to servicing of
certain education loans (the "Financed Student Loans") as provided therein; and

     WHEREAS, in order to carry out its obligations under the Servicing
Agreement with respect to the Financed Student Loans, the Servicer requires the
power to perform certain acts, including but not limited to execution of
promissory notes, assignment of notes to guarantors and filing of responses to
bankruptcy notices, in the name of Fifth Third Bank, as trust eligible lender
trustee (the "Trust Eligible Lender Trustee") for Issuer.

NOW THEREFORE, the Servicer, Issuer and Trust Eligible Lender Trustee agree:

     1. That each of the Issuer and the Trust Eligible Lender Trustee do hereby
make and appoint the Servicer as its true and lawful attorney-in-fact to do all
things necessary to carry out the Servicer's obligations under the Servicing
Agreement with respect to the Financed Student Loans, including but not limited
to the filing of proof of claim with bankruptcy courts. This instrument shall be
construed and interpreted as a limited power of attorney (the "Limited Power of
Attorney") and is not to be construed as granting any powers to the Servicer
other than those necessary to carry out its obligations under the Servicing
Agreement with respect to the Financed Student Loans.

     2. That this Limited Power of Attorney is effective as of May   , 2002, and
                                                                   --
shall remain in force and effect until revoked in writing by the Issuer and
Trust Eligible Lender Trustee or until the Servicing Agreement is terminated.
This instrument shall supplement but not replace the powers previously granted
to the Servicer in the Servicing Agreement.

                                       18

<PAGE>

The undersigned, being duly authorized, has executed this Limited Power of
Attorney.

                                    EDUCATION FUNDING CAPITAL
                                       TRUST-I, by FIFTH THIRD BANK, as
                                       Co-Owner Trustee

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

                                    FIFTH THIRD BANK, as Trust Eligible
                                       Lender Trustee

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

The undersigned, being duly authorized, accepts the foregoing Limited Power of
Attorney for and on behalf of the Issuer and Trust Eligible Lender Trustee, as
of May   , 2002.
       --

                                    GRAD PARTNERS, INC., as Servicer

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

<PAGE>

                     Amendment No. 1 to Servicing Agreement

     This Amendment No. 1 to Servicing Agreement (this "Amendment"), dated as of
August 1, 2002, is among Education Lending Services, Inc. (formerly known as
Grad Partners, Inc.), a Delaware corporation (the "Servicer"), Education Funding
Capital Trust-I (the "Trust"), a Delaware business trust, Fifth Third Bank, a
banking corporation organized under the laws of the State of Ohio, acting
hereunder not in its individual capacity, but solely as Indenture Trustee (the
"Indenture Trustee") under the Indenture (defined below), and Fifth Third Bank,
a banking corporation organized under the laws of the State of Ohio, not in its
individual capacity, but solely as Trust Eligible Lender Trustee on behalf of
the Trust (the "Trust Eligible Lender Trustee").

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

                                   WITNESSETH

     Whereas, the Servicer, the Trust and the Trust Eligible Lender Trustee are
parties to the Servicing Agreement; and

     Whereas, pursuant to Section 18 of the Servicing Agreement, the Trust and
the Servicer desire to amend the Servicing Agreement on the terms and conditions
set forth herein;

     Whereas, for the limited purposes of agreeing to its obligations set forth
in the last sentence of Section 2 of the Servicing Agreement, which obligations
are being added by the adoption of this Amendment, the Indenture Trustee desires
to become party to the Servicing Agreement;

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

     Section 1. The second paragraph of Section 2 of the Servicing Agreement is
hereby amended and restated in its entirety to read as follows:

          The Issuer hereby authorizes the Servicer to enter into subservicing
     contracts with an entity acting as a subservicer pursuant to such
     contracts, such entity is herein referred to as a "Subservicer", to provide
     the services required of the Servicer hereunder and to meet any obligations
     of the Issuer hereunder, so long as such contracts are permitted by the
     Indenture. In the event the Servicer or any Affiliate of the Seller or
     Servicer commences servicing of any Financed Student Loans that were
     previously serviced by a Subservicer, the Servicer shall (i) give prompt
     written notice of such event to each Rating Agency and (ii) cause such
     Subservicer to deliver to the Indenture Trustee the complete and separately
     identified record for each such Financed Student Loan, inclusive of all
     documents

<PAGE>

     and correspondence related to each such Financed Student Loan
     (collectively, the "Student Loan Files"). The Indenture Trustee agrees to
     and shall act as custodian of the Student Loan Files for any Financed
     Student Loans serviced or subserviced by the Servicer or by any Affiliate
     of the Seller or Servicer.

     Section 2. The first sentence of paragraph f. of Section 4 of the Servicing
Agreement is hereby amended and restated in its entirety to read as follows:

     Collect all payments with respect to Financed Student Loans and deliver all
     such payments to the Indenture Trustee for deposit into the Revenue Fund,
     including without limitation guarantee payments, with respect to the
     Financed Student Loans.

     Section 3. All other provisions of the Servicing Agreement are hereby
ratified, approved and confirmed.

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

                                        2

<PAGE>

     In Witness Whereof, the parties hereto have caused this Amendment to be
duly executed by their respective officers as of the day and year first above
written.

                                      Education Funding Capital Trust-I,
                                        by Fifth Third Bank, as Co-Owner Trustee

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

                                      Education Lending Services, Inc., as
                                        Servicer

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

                                      Fifth Third Bank, as Trust Eligible Lender
                                        Trustee

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

                                      Fifth Third Bank, as Indenture Trustee

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

                                                                    Exhibit 10.2

                   GREAT LAKES EDUCATIONAL LOAN SERVICES, INC.

                Student Loan Origination and Servicing Agreement

     This Agreement, is made as of May 23, 2002, among GREAT LAKES EDUCATIONAL
LOAN SERVICES, INC. ("Great Lakes"), a non-profit corporation, and FIFTH THIRD
BANK, as eligible lender trustee (the "Eligible Lender Trustee") on behalf of
Education Funding Capital Trust-I, a Delaware business trust (the "Trust"), (the
Eligible Lender Trustee and the Trust are collectively referred to as the
"Lender"), Lender # 833938, Portfolio # 873938 (and any other subportfolio
numbers assigned), an eligible institution engaged in providing loans ("Student
Loans") to students and parents under Title IV, Part B of the Higher Education
Act of 1965, as amended (hereinafter the "Act") and GRAD PARTNERS, INC., as
Master Servicer (the "Master Servicer").

                              W I T N E S S E T H:

     Whereas, Great Lakes has established a program for originating and
servicing Student Loans under the Act; and

     Whereas, the Trust has issued its $525,000,000 Auction Rate Education Loan
Backed Notes, Series 2002 A and B, pursuant to the Indenture of Trust dated as
of May 1, 2002 (the "Indenture") among the Trust, the Eligible Lender Trustee
and Fifth Third Bank as the Indenture Trustee (the "Indenture Trustee"); and

     Whereas, pursuant to the Indenture, the Trust and the Eligible Lender
Trustee have granted a security interest in certain Student Loans (the "Financed
Student Loans") to the Indenture Trustee in order to secure the Trust's
obligation to repay the Notes; and

     Whereas, pursuant to a Servicing Agreement among Master Servicer, the Trust
and the Eligible Lender Trustee, Grad Partners, Inc. has agreed to act as Master
Servicer of the Financed Student Loans and, in connection therewith, desires to
enter into a subservicing agreement with Great Lakes relating to the servicing
of the Financed Student Loans.

     Now Therefore, in consideration of the promises and the terms and
conditions set forth herein, the Master Servicer and Great Lakes agree as
follows:

     1.   Student Loans to be Serviced.

     Great Lakes and the Master Servicer agree that Great Lakes shall service
all Student Loans covered by the Act that are made or purchased by the Eligible
Lender Trustee, on behalf of the Trust, and that are guaranteed by Great Lakes
Higher Education Guaranty Corporation ("GLHEGC") and that are submitted to Great
Lakes by the Master Servicer and accepted by Great Lakes for servicing.

     2.   Great Lakes = Duties as Originator.

     Great Lakes covenants and agrees to originate each Financed Student Loan in
compliance with all requirements of the Act, the guaranty agreement between the
Eligible Lender Trustee and

<PAGE>

GLHEGC (the "Guaranty Agreement") and all other laws and regulations applicable
to its activities hereunder.

     (a) Origination of Student Loans. Great Lakes agrees with Master Servicer
to provide the following services and to coordinate processing as required to
enable guarantee by Great Lakes Higher Education Guaranty Corporation:

          (1) Great Lakes agrees to coordinate with GLHEGC the processing of all
     properly completed Student Loan applications within one business day after
     receipt of all required information from the borrower, the school, and, for
     PLUS loans, the credit bureau. This standard shall be met if 90% of all
     Student Loans are processed within this one day period. Student Loan
     application forms shall identify the Lender and shall be sent to a separate
     post office box, as provided on the Student Loan application form. Lender
     has sole authority to determine the schools from which it will accept
     borrower applications.

          (2) If either the Student Loan application form or the promissory note
     are not properly completed, Great Lakes shall promptly notify the school or
     the borrower, whomever is appropriate, to resolve the deficiencies.

          (3) Great Lakes will perform a credit check to determine whether or
     not PLUS borrowers have adverse credit as required by the Act. If there is
     no indication of adverse credit, Great Lakes will document this finding and
     will submit the loan information to GLHEGC for guarantee processing.

          If adverse credit is indicated under a strict interpretation of the
     federal regulations, Great Lakes will mail a Master Servicer approved
     denial notice to the borrower.

          (4) If the Student Loan application form and note are properly
     completed:

               (i) Great Lakes will coordinate GLHEGC's processing of the
          Student Loan for guarantee.

               (ii) Upon guarantee of the Student Loan, Great Lakes as Lender's
          agent shall prepare a disclosure statement in accordance with federal
          regulations and shall make the required disbursements of the Student
          Loan. These disbursement checks shall be drawn against a checking
          account maintained by Great Lakes. The Master Servicer shall cause
          this account to be funded on a daily basis by an ACH transfer
          initiated by Great Lakes to cover all disbursements made that day.
          Great Lakes will pay all transaction costs associated with the account
          including the cost of standard checks and will receive all investment
          earnings on balances existing from time to time in the account. Great
          Lakes will reconcile the account and will confirm that all
          disbursements are included in the regular periodic reports provided to
          the Master

                                       2

<PAGE>

          Servicer. Great Lakes will also manage the payment of guaranty fees on
          behalf of the Master Servicer.

               (iii) Great Lakes shall mail the check and two copies of the
          disclosure statement to the school. One copy of the disclosure
          statement will be provided to the student along with the disbursement
          check, and the other copy will be retained by the school. For schools
          with whom the Master Servicer has authorized Great Lakes to process
          Electronic Funds Transfers, Great Lakes agrees to perform those lender
          duties and responsibilities specified in the Common Manual: Unified
          Student Loan Policy, as amended from time to time (the "Guarantor=s
          Common Manual").

               (iv) Great Lakes shall provide and/or coordinate the mailing of
          appropriate reports regarding Student Loans to the Master Servicer,
          including guaranty activity reports, check registers, and disbursement
          reports.

          (5) Great Lakes shall respond to all borrower inquiries in a prompt,
     courteous and thorough manner.

     (b)  Document Handling.

          (1) Great Lakes shall capture and retain a copy of each promissory
     note and each disclosure statement on its image system and shall store a
     backup image copy in a remote facility.

          (2) Great Lakes shall hold the original Student Loan documents,
     including the original promissory note, a copy of the Student Loan
     application and the disclosure statement for safekeeping.

     3.   Great Lakes = Duties as Servicer.

     Great Lakes covenants and agrees to service each Financed Student Loan in
compliance with all requirements of the Act, the Guaranty Agreement and all
other laws and regulations applicable to its activities hereunder and to perform
all services and duties customary to the servicing of Student Loans. Without
limiting the foregoing, in fulfillment of its obligations hereunder, Great Lakes
shall do the following.

     (a) Great Lakes as servicer of the Student Loans shall perform all of the
Eligible Lender Trustee's and Trust's obligations as holder of Student Loans as
required by the Act and all regulations issued by the U.S. Department of
Education or by the GLHEGC to implement the Act. Great Lakes shall have full
power to sign and act on the Trust's and Eligible Lender Trustee's behalf as the
their agent in all transactions with borrowers serviced hereunder. The Trust and
Eligible Lender Trustee do hereby authorize, constitute, and appoint Great Lakes
on its behalf and as its

                                       3

<PAGE>

attorney in fact, to endorse those promissory notes for which a claim has been
filed with GLHEGC. Great Lakes will carry out its responsibilities hereunder in
a diligent and lawful manner.

     (b) Great Lakes shall complete all forms and reports required by the U.S.
Department of Education and by GLHEGC.

     (c) Great Lakes shall prepare a "Lender's Request for Payment of Interest
and Special Allowance" to be used in billing the U.S. Department of Education
(the "Department") for interest and the special allowance for all eligible loans
on a quarterly basis. Great Lakes agrees to submit the billing to the Department
within 30 days following the last day of each quarter (March 31, June 30,
September 30, December 31). In the event that Great Lakes does not submit the
billing to the Department within 30 calendar days following the last day of each
quarter, and such failure is not attributable to action or inaction by the
Master Servicer, Eligible Lender Trustee or Trust, or the Department, the Trust
shall be entitled to payment by Great Lakes of penalty interest. Such penalty
interest shall be calculated on the actual amount of interest subsidies and
special allowance payments that the Eligible Lender Trustee is entitled to
receive from the Department on the Student Loans covered by the billing report
and for the time period between such 30th day through the date that said billing
report is filed with the Department by Great Lakes using the LIBOR rate, as
quoted in the Wall Street Journal, for the period closest in term to the actual
number of days covered by penalty period.

     Great Lakes shall accrue and capitalize interest on those Student Loans not
eligible for interest subsidy.

     (d) Great Lakes shall verify the current status of all borrowers not less
often than annually through direct contact with each borrower to ensure correct
account information. Great Lakes shall also seek to verify the borrower's status
by direct or indirect contact with educational institutions.

     (e) Great Lakes shall respond to all borrower inquiries in a prompt,
courteous and thorough manner.

     (f) When a Student Loan becomes due for repayment, Great Lakes shall
prepare a payment schedule and disclosure statement and mail it to the borrower
for signature(s). Prior to the first payment due date, repayment coupons will be
prepared and sent to the borrowers.

     (g) Great Lakes shall post to the borrower's account all payments of
principal, interest and other charges.

     (h) Great Lakes shall provide reports to the Master Servicer and Indenture
Trustee of all monetary transactions as well as periodic summary and account
information as required in the "Lender Service Manual" including such items as:

          (1)  Detailed periodic reports to support all cash transactions
               processed;

                                       4

<PAGE>

          (2)  Monthly portfolio summary reports and supporting data listings;

          (3)  A monthly listing of delinquent accounts; and

          (4)  A quarterly report of billings to the Department for interest and
               special allowances.

     (i) Great Lakes shall automatically credit the Trust's account whenever a
borrower overpays an account by less than $5.00, and the Master Servicer, at its
discretion, acting on behalf of the Trust, can reimburse the borrower. When the
overpayment is more than $5.00, Great Lakes shall remit the overpayment directly
to the borrower. When a borrower's balance owing is less than $10.00, Great
Lakes may, at its discretion, write-off the balance.

     (j) Great Lakes shall handle all required borrower contact functions and
shall meet all servicing "due diligence" requirements, as that term is used
under the Act and implementing regulations. Such functions include, for example,
skip tracing, contacting delinquent borrowers, handling borrower requests for
extensions or deferments, and preparing and processing claims, including death,
disability, default, closed school, false certification and bankruptcy claims.

     (k) Great Lakes agrees to prepare and submit all papers and documents
necessary to strictly follow reimbursement procedures specified in the
Guarantor's Common Manual upon default of borrower and further agrees to
promptly remit proceeds to the Indenture Trustee upon receipt from the
Guarantor.

     (l) Great Lakes shall capture and retain a copy of each promissory note and
each disclosure statement on its image system and shall store a backup image
copy in a remote facility. Great Lakes shall hold the original Student Loan
documents, including the original promissory note, a copy of the Student Loan
application and the disclosure statement for safekeeping.

     (m) Great Lakes shall provide immediate notice to the Master Servicer of
any proceeding or action filed, asserted or threatened against Great Lakes that,
if decided unfavorably to Great Lakes, would adversely impact Great Lakes'
status as an eligible "third-party servicer".

     (n) Great Lakes shall maintain a complete and separately identified record
for the Financed Student Loans of each borrower, inclusive of all documentation
and correspondence related to the Financed Student Loans.

     (o) Great Lakes shall prepare and maintain accounting records with respect
to the Financed Student Loans; process refunds and other adjustments; process
address changes and maintain address records.

                                       5

<PAGE>

     (p) Great Lakes shall collect all payments with respect to Financed Student
Loans and deliver all such payments to the Indenture Trustee, including without
limitation guarantee payments, with respect to the Financed Student Loans. Great
Lakes shall remit collected funds by automated clearing house within three (3)
business days of receipt to the Indenture Trustee.

     (q) Great Lakes shall retain summary records of contacts, follow-ups and
collections efforts, and records of written correspondence relating to the
Financed Student Loans of each borrower sufficient to ensure claim payment.

     (r) Great Lakes shall process adjustments including NSF checks, status
changes, forbearances, deferments and Financed Student Loans paid in full.

     (s) Great Lakes shall at all times identify the Trust and the Eligible
Lender Trustee as the owners of the Financed Student Loans and identify the
Indenture Trustee as a party which has a security interest in the Financed
Student Loans.

     (t) Great Lakes shall establish and maintain a method for charging and
collecting late payment fees in accordance with provisions of the Act and all
other applicable laws and regulations.

     (u) Great Lakes shall act as custodian and bailee with respect to all
original documents and hold them subject to the lien of the Indenture in favor
of the Indenture Trustee and pursuant to a bailment in a form satisfactory to
Great Lakes, the Master Servicer, and the Eligible Lender Trustee.

     (v) If any Financed Student Loan has lost its guarantee and/or insurance
due to the actions of any prior issuer, servicer or holder of the Financed
Student Loan, Great Lakes will, at the written request of the Master Servicer,
use its best efforts to reinstate such guarantee or insurance; provided,
however, that Great Lakes makes no representation that such reinstatement will
occur. Such services shall be provided at the cost agreed upon by the Master
Servicer and Great Lakes.

     (w) Great Lakes shall provide, or cause to be provided to the Master
Servicer, on a monthly basis, information needed to determine the monthly rebate
fees.

     4.   Due Diligence.

     Great Lakes covenants and agrees that in discharging its obligations
hereunder it shall:

     a.   Exercise due diligence in the servicing and collection of all Financed
          Student Loans as the term "due diligence" is used in the Act and
          further defined in the regulations of the applicable guarantor.

     b.   Exercise reasonable care and diligence in the administration and
          collection of all Financed Student Loans utilizing practices in
          accordance with all Federal and State

                                       6

<PAGE>

          laws and regulations promulgated thereunder that are applicable to its
          activities conducted with respect to Financed Student Loans that are
          authorized under the Act.

     c.   Administer and service the Financed Student Loans in a competent,
          diligent and orderly fashion, and in accordance with the requirements
          of the Act.

     5.   Representations, Warranties, and Covenants of Great Lakes.

     Great Lakes makes the following representations, warranties and covenants
to the Master Servicer on the date of this Agreement.

     (a)  Great Lakes (i) is duly incorporated, validly existing, and in good
          standing under the laws of the jurisdiction in which it is
          incorporated; (ii) is duly qualified to transact business and is in
          good standing as a foreign corporation in each jurisdiction where the
          nature and extent of its business and properties require due
          qualification and good standing; (iii) possesses all requisite
          authority, permits and power to conduct its business as contemplated
          by this Agreement including, without limitation, eligibility as a
          third-party servicer under the Act; and (iv) is in compliance with all
          applicable laws and regulations.

     (b)  The execution and delivery by Great Lakes of this Agreement and the
          performance of its obligations hereunder (i) are within its corporate
          power, (ii) have been duly authorized by all necessary corporate
          action, (iii) require no action by or filing with any governmental
          agency, except for any action or filing that has been taken or made on
          or before the date of this Agreement; and (iv) do not violate any
          provision of its articles of in corporation or bylaws.

     (c)  Great Lakes will maintain in effect all qualifications required in
          order to service the Financed Student Loans and comply in all material
          respects with all requirements of law if a failure to comply would
          have a materially adverse effect its ability to service the Financed
          Student Loans.

     (d)  Great Lakes will not permit any rescission or cancellation of a
          Financed Student Loan except as ordered by a court or other government
          authority, as consented to by the Eligible Lender Trustee and the
          Indenture Trustee, or as permitted under Section 3(i) of this
          Agreement.

     (e)  Great Lakes will not reschedule, revise, defer or otherwise compromise
          payments due on any Financed Student Loan except during any applicable
          interest only, deferral or forbearance periods or otherwise in
          accordance with all applicable standards and requirements for
          servicing of the Financed Student Loans.

                                       7

<PAGE>

     (f)  All Great Lakes financial statements delivered to the Master Servicer
          were prepared according to U.S. generally accepted accounting
          principles ("GAAP") consistently applied and present fairly, in all
          material respects, the financial condition, results of operations and
          cash flows of Great Lakes.

     (g)  No event which could cause a material adverse effect on Great Lakes'
          financial condition has occurred, and if such event shall occur, Great
          Lakes shall promptly give the Master Servicer notice thereof.

     (h)  Great Lakes is not subject to, or aware of the threat of, any
          litigation that is reasonably likely to be determined adversely to it
          and that, if so adversely determined, would have a material adverse
          effect on its financial condition or its ability to meet its
          obligations under this Agreement and no outstanding or unpaid
          judgments against Great Lakes exist, and if such event shall occur,
          Great Lakes shall promptly give the Master Servicer notice thereof.

     (i)  Until all Financed Student Loans serviced hereunder have been repaid
          in full, or paid as a claim the Guarantor, or transferred to another
          servicer, Great Lakes agrees as follows:

          (i)  Great Lakes shall cause to be furnished to the Master Servicer
               its financial statements within one hundred twenty (120) days
               after the end of each fiscal year audited by nationally
               recognized independent certified public accountants.

          (ii) Great Lakes shall maintain books, records and accounts necessary
               to prepare financial statements according to GAAP and maintain
               adequate internal financial controls.

          (iii) Great Lakes shall maintain all licenses, permits, and franchises
               necessary for its business.

     (j)  This Agreement will, upon execution and delivery by all parties
          thereto, constitute a legal and binding obligation of Great Lakes,
          enforceable against Great Lakes according to its terms.

     (k)  The above representations, warranties and covenants, or any breach
          thereof, shall not independently give rise to any cause of action or
          claim for damages in the absence of monetary loss or other material
          breach by Great Lakes of the terms and conditions of this Agreement.

                                       8

<PAGE>

     6.   Great Lakes Default.

          Each of the following constitutes a "Great Lakes Default" hereunder:

     (a)  any failure by Great Lakes to deliver to the Indenture Trustee any
          payment required pursuant to Section 3(p) of this Agreement, which
          failure continues unremedied for three (3) business days after written
          notice of such failure is received by Great Lakes from the Eligible
          Lender Trustee, the Indenture Trustee or the Master Servicer or after
          discovery of such failure by an officer of Great Lakes;

     (b)  any material breach of a representation or warranty of Great Lakes
          contained in Section 5 of this Agreement or like failure by Great
          Lakes duly to observe or to perform in any material respect any term,
          covenant or agreement set forth in this Agreement, which breach or
          failure shall (i) materially and adversely affect the rights of
          Noteholders or any Counterparties and (ii) continue unremedied for a
          period of sixty (60) days after the date of discovery of such failure
          by an officer of Great Lakes or after written notice of such breach or
          failure, requiring the same to be remedied, shall have been given to
          Great Lakes, by the Indenture Trustee, the Eligible Lender Trustee or
          the Master Servicer;

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

     (d)  any failure by Great Lakes to comply with any requirements under the
          Act resulting in a loss of its eligibility as a third-party servicer.

     7.   Rights Upon Great Lakes Default.

     In each and every case, so long as the Great Lakes Default shall not have
been remedied, the Master Servicer, by notice then given in writing to Great
Lakes may terminate all the rights and

                                       9

<PAGE>

obligations (other than the rights and obligations set forth in Section 10
hereof) of Great Lakes under this Agreement.

     As of the effective date of termination of Great Lakes, all authority and
power of Great Lakes under this Agreement, whether with respect to the Financed
Student Loans or otherwise, shall, without further action, pass to and be vested
in the Master Servicer or such successor servicer as may be appointed, and all
files shall be disposed of pursuant to the procedures proscribed by Section
13(b) hereof.

     8.   Master Servicer's Responsibilities.

     Master Servicer agrees to promptly notify Great Lakes in such form as may
from time to time be specified by Great Lakes, of any transactions involving the
Lender and the borrower and/or changes in status or demographic data on any of
its accounts if received from sources other than Great Lakes. Master Servicer
specifically agrees to promptly notify Great Lakes of any bankruptcy action
taken with respect to any Student Loan.

     9.   Fees.

     The Master Servicer agrees to pay Great Lakes the fees established by Great
Lakes from time to time for services rendered pursuant to this Agreement. The
current fee schedule is attached to this Agreement as Schedule A. Increases or
decreases in such schedule may be made from time to time; provided, however,
that the Master Servicer shall be given 60 days written notice prior to the
effective date of any change in the fee schedule. Such effective date shall be
the beginning of a calendar quarter (April 1, July 1, October 1, January 1).
Statements for services rendered will be provided on a monthly basis and are
payable upon receipt.

     10.  Liability.

     (a) Great Lakes shall exercise care and due diligence in performing the
services required by this Agreement. To the extent that Great Lakes is required
to appear in, or is made a defendant in any legal action or other proceeding
commenced by a party other than Master Servicer with respect to any matter
arising hereunder, Master Servicer shall indemnify and hold Great Lakes harmless
from all loss, liability and expense (including reasonable attorney's fees)
except for any loss, liability or expense arising out of or relating to Great
Lakes' acts or omissions with regard to the performance of services hereunder.

     (b) Subject to paragraph 18 below, Great Lakes shall indemnify and hold
Master Servicer, Trust (and its assigns, including the Noteholders as defined in
the Indenture) and the Eligible Lender Trustee and their respective officers,
directors, employees and agents harmless from all loss, liability and expense
(including reasonable attorney's fees) arising out of or relating to Great
Lakes' acts or omissions with regard to the performance of services hereunder;
provided, however, that Great Lakes shall not be liable in the performance of
such services except for its negligence or

                                       10

<PAGE>

misconduct and provided further that in no event shall Great Lakes be
responsible or liable for any consequential damages with respect to any matter
whatsoever arising out of this Agreement.

     (c) Either party shall have the right to mitigate its liability under this
Agreement by taking such actions as may be appropriate, including but not
limited to reperformance.

     (d) Except as to Student Loans originated by Great Lakes, (i) Great Lakes
does not assume, and acceptance for servicing shall not result in, any
responsibility for the correctness or completeness of Student Loan-related
papers transmitted to Great Lakes as a part of or in conjunction with the
commitment of any Student Loans to Great Lakes for servicing under this
Agreement or under a separate Servicing Agreement with Grad Partners, Inc. or
any affiliate of Grad Partners, Inc., and (ii) Great Lakes shall not be
responsible for any procedural errors or omissions (including due diligence
violations) which may have occurred prior to initiation of servicing of a
Student Loan by Great Lakes under this Agreement or under a separate Servicing
Agreement with Grad Partners, Inc. or any affiliate of Grad Partners, Inc.

     (e) If a Financed Student Loan is denied the guarantee by GLHEGC or the
loss of federal interest, special allowance, and/or insurance benefits, Great
Lakes shall have the right to take any action not prohibited by law or
regulation to reduce its losses, if any, hereunder, including but not limited to
curing, at its own expense (to the extent such expenses exceed Great Lakes
standard servicing fee), any origination, due diligence or other servicing
violation under this Agreement or under a separate Servicing Agreement with Grad
Partners, Inc. or any affiliate of Grad Partners, Inc. . If any lost guarantee
is not reinstated within twelve (12) months of the date Great Lakes learns of
the loss of the guarantee on a Financed Student Loan, Great Lakes shall take
actions which make the Trust whole with respect to the Financed Student Loan
while maintaining the eligibility for future reinstatement of the guarantee;
provided, however, Great Lakes may delay taking such actions by giving written
notice to the Master Servicer not less often than each ninety (90) days that
Great Lakes has reason to believe that the guarantee will be reinstated within
time frames permitted by regulations. If Great Lakes gives notice of such delay,
Great Lakes agrees to pay any accrued interest on the Financed Student Loans
that may be uninsured.

     (f) Master Servicer shall enforce its rights under this Section 10 on
behalf of the Trust. The parties hereby agree that the Indenture Trustee or the
Trust, for the benefit of the Noteholders, may enforce the Master Servicer's
rights under this Section 10 in the event that the Master Servicer shall fail to
enforce such rights.

     11.  Confidentiality.

     Information about each borrower furnished to Great Lakes hereunder is
furnished upon the express condition that the information will be kept
confidential by Great Lakes. All such information, except as may be otherwise
required by statute, by court order or as may be necessary in Great Lakes'
reasonable judgment to the performance of the services required under this
Agreement,

                                       11

<PAGE>

shall be held in confidence by Great Lakes. Great Lakes, in its capacity as
subservicer, shall comply with all applicable requirements of Gramm-Leach Bliley
Act.

     12.  Examination of Records.

     The Trust, the Master Servicer, the Eligible Lender Trustee, the Indenture
Trustee or any governmental agency having jurisdiction over any of the same, or
their designated representatives may at any time during Great Lakes' regular
business hours examine and audit, at the sole expense of the Master Servicer,
the records which Great Lakes maintains on the Lender's Student Loans.

     13.  Termination.

     (a) This Agreement shall remain in full force and effect until terminated
or modified as provided herein. This Agreement may be terminated (i) in
accordance with Section 7 hereof or (ii) at the end of a calendar quarter (March
31, June 30, September 30, December 31), if written notice is given: (A) by the
Master Servicer (subject to Section 20(e)) to Great Lakes at least 30 days prior
to the end of a calendar quarter, or (B) by Great Lakes to the Master Servicer
and the Indenture Trustee at least 180 days prior to the end of a calendar
quarter.

     (b) In the event that this Agreement is terminated as provided in
subsection (a) above, Great Lakes shall continue its full servicing until the
date of termination and shall provide to the Master Servicer and the Indenture
Trustee a full set of periodic reports, adjusted through the date of
termination. Great Lakes shall retain all notes, records and papers, as well as
a copy of all computer stored data relating to the Lender's accounts as required
by the Act. Great Lakes shall make available to the Master Servicer and the
Indenture Trustee and the Eligible Lender Trustee on demand copies of all
computer records relating to the Lender's accounts. Such copies of the computer
records will be provided and updated at the times desired by Master Servicer and
the Indenture Trustee in order to facilitate a transfer to another servicing
agent. The Master Servicer agrees to pay Great Lakes the servicing removal fee
identified on Schedule A. Upon the Master Servicer's request, Great Lakes may
agree to provide servicing removal services beyond those identified in this
section. Such agreement between Great Lakes and the Master Servicer shall
include sufficient additional charges to cover Great Lakes' costs. Great Lakes
agrees that Master Servicer shall be entitled to injunctive relief to enforce
the provisions of this subsection.

     (c) The Master Servicer shall be liable for all charges incurred for
services performed pursuant to this Agreement up to the termination date.

     (d) Great Lakes shall continue to be liable for all acts or failures to act
which occur prior to termination (or the following loan transactions: sale or
transfer to another lender, servicing transfer to Master Servicer or another
servicer, purchase by the guarantor or payment in full), but shall not be liable
for post-termination activities except that Great Lakes shall be obligated to
remit to the Master Servicer any collections received by Great Lakes subsequent
to termination and to provide the reports and records herein required.

                                       12

<PAGE>

     14.  Amendments.

     Except as provided in Section 9, this Agreement may be amended by Great
Lakes at anytime upon 30 days written notice to the Master Servicer and the
Indenture Trustee, provided that the provisions of this Agreement shall at all
times be consistent with the Act and applicable regulations. In the event of any
such modification by Great Lakes, the Master Servicer (with the consent of the
Indenture Trustee) has 30 days in which to accept or reject the modification by
notice in writing. In the event of rejection of proposed modification, either
party may exercise its right to terminate as provided in Section 13. In the
event of termination for this reason, such modification shall not apply to the
Master Servicer.

     15.  Governing Law.

     This Agreement shall be interpreted under the laws of the State of
Wisconsin.

     16.  No Implied Waiver.

     Any waiver or modification, expressed or implied, by Great Lakes or by the
Master Servicer of any breach of this Agreement shall not be construed to be a
waiver of any such breach or any acquiescence thereto; nor shall any delay or
omission by Great Lakes or by the Master Servicer to exercise any right arising
from any such breach affect or impair the respective party's right to such
breach or any future breach.

     17.  Arbitration.

     In the event that the parties hereto shall fail to agree regarding any
provision of this Agreement, such disputes shall be resolved by arbitration
procedures established by the American Arbitration Association. The decision of
any arbitrator under this paragraph shall be final and binding upon the parties.

     18.  Limitation of Liability.

     Great Lakes, the Master Servicer, Trust and Eligible Lender Trustee
recognize that Great Lakes' servicing program is separate and distinct from
GLHEGC's guarantee program. The Master Servicer, Trust and Eligible Lender
Trustee specifically agrees to look only to Great Lakes in its capacity as a
servicing agent for any claims under this Agreement relating to its functions as
servicing agent. Each of the Master Servicer, Trust and Eligible Lender Trustee
specifically waives any claim against GLHEGC's Guarantee Fund as defined in 34
CFR 682.410(a)(1) and against GLHEGC's Federal Reserve Fund and Administrative
Operating Fund and all other escrows required under the Act for claims under
this Agreement.

                                       13

<PAGE>

     19.  Assignment.

     Master Servicer may assign this Agreement to any affiliate and Great Lakes
may assign this Agreement to any affiliate. Except as provided herein, this
Agreement may not be assigned without the prior consent of the non-assigning
party and the Indenture Trustee.

     20.  Notices.

     All notices, requests, demands or other instruments which may or are
required to be given by any party to any other party shall be in writing and
such shall be deemed to have been properly given when served personally on an
officer of the entity to which such notice is to be given, or upon expiration of
a period of 48 hours from and after the postmark thereof when mailed postage
prepaid by registered or certified mail, requesting return receipt, addressed as
follows:

     If intended for Great Lakes Educational Loan Services, Inc.:

          Chief Servicing Officer
          Great Lakes Higher Education Servicing Corporation
          2401 International Lane
          P.O. Box 7858
          Madison, WI 53707

     If intended for Master Servicer or Trust:

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

     If intended for the Eligible Lender Trustee:

          Fifth Third Bank
          Corporate Trust Administration
          38 Fountain Square Plaza MD10AT60
          Cincinnati, OH  45263
          Attention:  Brian Gardner

                                       14

<PAGE>

     If intended for the Indenture Trustee:

          Fifth Third Bank
          Corporate Trust Administration
          38 Fountain Square Plaza MD10AT60
          Cincinnati, OH  45263
          Attention:  Brian Gardner

     21.  Third Party Audit.

     Great Lakes shall provide the Master Servicer within one hundred twenty
days (120) days of the end of Great Lakes' accounting period, a copy of its
annual servicer compliance audit report required by federal regulations, or if a
federal audit requirement is not in effect at the time, an equivalent compliance
audit report performed by an independent third party.

     22.  Insurance Coverage.

     Great Lakes will keep in force and effect computer services and software
errors and omissions coverage of not less than $2,000,000, an umbrella liability
policy of not less than $15,000,000, employee crime (including fidelity)
insurance of not less than $1,000,000 and business interruption insurance of not
less than $1,000,000. Great Lakes will furnish proof of such coverage to the
Master Servicer from time to time upon request by Master Servicer. Should the
Insurance Coverage, or any portion thereof, be voluntarily terminated or
modified by Great Lakes or involuntarily terminated or modified without Great
Lakes' consent, Great Lakes shall, if available, replace such terminated or
modified portions of the Insurance Coverage prior to final termination or
modification, or as soon thereafter as commercially reasonable. In the event of
any termination or reduction in coverage, voluntary or involuntary, Great Lakes
shall notify Master Servicer immediately, but in no event later than five (5)
business days following receipt of notice of the termination or modification or,
with respect to voluntary termination or modification, contemporaneously with
Great Lakes' giving notice to the insurer.

     23.  Security Interest of Indenture Trustee.

     (a) Great Lakes acknowledges and agrees that all or a portion of the right,
title and interest of the Trust and Master Servicer under this Agreement and the
Eligible Lender Trustee under the Financed Student Loans serviced hereunder have
been or may be assigned to the Indenture Trustee for the benefit of the
Noteholders and the other secured parties (collectively, the A Secured Parties )
pursuant to the Indenture and that Great Lakes shall hold all original
promissory notes evidencing such Financed Student Loans and related
documentation as bailee on behalf of the Indenture Trustee as holder of a
security interest in such Financed Student Loans under the terms and conditions
of the Indenture.

                                       15

<PAGE>

     (b) In order for Master Servicer to direct Great Lakes to transfer any such
Financed Student Loan from the account of Lender (to the Secured Parties,
another secondary market authority, an eligible lender, another indenture
account of Lender or Master Servicer, or a successor servicer, pursuant to the
Indenture or otherwise), Great Lakes must first receive a Request to Transfer
Student Loans form which shall not be valid without the signature of the
Indenture Trustee.

     (c) The security interest of the Secured Parties and the provisions of this
Section 23, shall not be amended or revoked without the written consent of the
Indenture Trustee.

     (d) Great Lakes hereby acknowledges and agrees that the security interest
of the Secured Parties in the Financed Student Loans under the Indenture, shall
be and is hereby prior to any lien Great Lakes may have in such Financed Student
Loans (other than its fees due hereunder), and Great Lakes agrees to execute and
deliver to the Indenture Trustee all financing statements, notices and other
instruments reasonably requested in connection with this Agreement by the
Indenture Trustee.

     (e) Great Lakes acknowledges that upon the occurrence of certain events of
default under the Indenture (each a "Default") pursuant to which Financed
Student Loans are financed, the Indenture Trustee shall have the right to
exercise the termination rights of Master Servicer set forth in Section 13.
Notwithstanding anything in this Section 23 to the contrary, Great Lakes shall,
within a reasonable time frame after receipt of a written request by the
Indenture Trustee, release any and all Financed Student Loans to the Indenture
Trustee.

     24.  Eligible Lender Trustee.

     Great Lakes acknowledges that the Eligible Lender Trustee has entered into
this Agreement solely in its capacity as Eligible Lender Trustee for Education
Lending Capital Trust-I and not acting in its individual capacity.

     The representations, warranties, and covenants of the Eligible Lender
Trustee herein (other than any representations, warranties and covenants
relating to the Eligible Lender Trustee's authority, good standing execution of
this Agreement) are made solely at the direction of Education Funding Capital
Trust-I without independent investigation of the Eligible Lender Trustee, and
the Eligible Lender Trustee has undertaken only the duties required of it under
its trust agreement with Education Funding Capital Trust-I. All recourse and
remedies of Great Lakes hereunder shall be available only against Education
Funding Capital Trust-I and the assets of such trust estate and not against the
Eligible Lender Trustee, or in its individual capacity.

     25.  Disaster Recovery Plan/Force Majeure.

     Great Lakes will timely implement, if it has not already, and maintain the
Great Lakes' disaster recovery plan, a summary of which is attached hereto as
Appendix 1 as the same may be updated from time to time (the "Disaster Recovery
Plan"). Throughout the term of this Agreement, Great Lakes shall (i) maintain
the Disaster Recovery Plan and the capacity to execute such plan (ii) test the
Disaster

                                       16

<PAGE>

Recovery Plan at least annually (iii) not change the Disaster Recovery Plan in
any manner that will materially lessen its backup procedures, data restoration
ability, or recovery preparedness or capabilities without providing prior
written notice to the Master Servicer and (iv) upon written request of Master
Servicer, Great Lakes shall provide Master Servicer with an executive summary of
any changes to the Disaster Recovery Plan. Subject to the foregoing, no party
hereto shall be responsible for, or in breach of this Agreement if it is unable
to perform as a result of delays or failures due to any cause beyond its
control, howsoever arising.

     26.  Subservicing for Affiliates.

     Upon request of the Master Servicer, Great Lakes agrees to provide services
pursuant to this Agreement for and on behalf of one or more corporations or
limited liability companies that are controlled by or under common control with
Direct III Marketing, Inc., d/b/a Education Lending Group, Inc. ("ELG") and
trusts that are established by ELG or any of such corporations or limited
liability companies (herein an "Affiliate") with respect to Student Loans
originated by Great Lakes, guaranteed by GLHEGC and owned by such Affiliate. To
initiate Great Lakes obligation to provide services for any Affiliate, the
Master Servicer shall identify such Affiliate in writing and Great Lakes, the
Master Servicer, the Affiliate and the Eligible Lender Trustee on behalf of the
Affiliate shall execute and deliver a Subservicing Addendum in substantially the
form attached hereto as Appendix 2. Upon execution and delivery of the
Subservicing Addendum, Great Lakes shall provide services to such Affiliate in
accordance with this Agreement and such Subservicing Addendum.

                            [Signature Page Follows]

                                       17

<PAGE>

In Witness Whereof, the parties hereto have executed this Agreement as of the
and year first above written.

GRAD PARTNERS, INC.                     GREAT LAKES EDUCATIONAL
                                        LOAN SERVICES, INC.

By: /s/ Perry D. Moore                  By: /s/ Michael J. Noack
    ----------------------------------      ------------------------------------
Name: Perry D. Moore                    Name: Michael J. Noack
Title: Senior Vice President - Finance  Title: Chief Servicing Officer

FIFTH THIRD BANK, as Eligible           EDUCATION FUNDING CAPITAL TRUST-I
Lender Trustee for Education            By: Fifth Third Bank as Co-Owner Trustee
Funding Capital Trust-I

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

                                       18

<PAGE>

                   GREAT LAKES EDUCATIONAL LOAN SERVICES, INC.

                STUDENT LOAN ORIGINATION AND SERVICING AGREEMENT

                               GRAD PARTNERS, INC.

                                SCHEDULE A - FEES

The Master Servicer agrees to pay the following fees to Great Lakes upon receipt
of a monthly statement for services rendered pursuant to this agreement:

Origination Fee:

     $3.50 per loan originated by Great Lakes
     $2.00 per disbursement sent via EFT to school (this charge is in
     addition to the per loan charge)
     $28.00 per originated Consolidation Loan
     $10.00 per application processed which does not result in a
     Consolidation loan

Monthly Service Fees:

     $1.25 per account per month during interim (in-school) period
     $3.05 per account per month during grace period
     $3.25 per account per month during first 12 months of repayment servicing
     $2.88 per account per month during the remainder of the repayment period

Servicing Removal Fee:

     $14.00 per account, plus actual cost of additional services requested
     to remove an active account from the servicing system

Late Charge Assessment Fee:

Great Lakes shall receive 25% of the late fee revenue collected from delinquent
borrowers.

Great Lakes will pass to the Master Servicer the actual third-party credit
bureau costs of obtaining a PLUS credit bureau report.

Subsidized and unsubsidized Stafford and Consolidation loans are each billed
separately for origination fees even if they are processed from the same
application.

All PLUS, SLS and Consolidation loans will be charged the standard repayment
servicing fees.

The total monthly amount due will be the actual fees calculated as described
above or $75, whichever is greater. All references to an account for fee
calculation purposes shall mean unique

<PAGE>

combinations of borrower/lender number or subportfolio number/loan program
(Stafford, PLUS, Consolidation loan program).

Great Lakes may agree to provide the Master Servicer with services beyond those
normally included in the servicing program. Such agreement between Great Lakes
and the Master Servicer shall include sufficient additional charges to cover
Great Lakes = costs.

Increases or decreases to this fee schedule may be made from time to time as
provided in this Agreement.

<PAGE>

                           ACH Authorization Agreement

Lender Name:
             ---------------------------------------------------------

Tax ID No.:
            ----------------------------------------------------------

We hereby authorize the Great Lakes Higher Education Servicing Corporation,
hereinafter called Great Lakes, to initiate debit/credit entries to our demand
deposit account indicated at the depository named below to fund new loan
disbursements originated by Great Lakes.

Depository Name:
                 ---------------------------------------------------------------

City:                               State:                    Zip:
      ----------------------------         -----------------       -------------

Transit ABA No:                     Account No:
                ------------------              --------------------------------

This authority is to remain in full force and effect until Great Lakes has
received written notification from us of its termination in such time and in
such manner as to afford Great Lakes a reasonable time to act on it.

---------------------------------
Signature

---------------------------------
Name

---------------------------------
Title

---------------------------------
Date

<PAGE>

                                   Appendix 1

                             Disaster Recovery Plan

<PAGE>

                                   Appendix 2

                   GREAT LAKES EDUCATIONAL LOAN SERVICES, INC.
                Student Loan Origination and Servicing Agreement

                              SUBSERVICING ADDENDUM

     THIS SUBSERVICING ADDENDUM is made this     date of            , 2002 (the
                                             ---         -----------
"Subservicing Addendum"), by and among GREAT LAKES EDUCATIONAL LOAN SERVICES,
INC. ("Great Lakes"), GRAD PARTNERS, INC. ("Master Servicer"),
                           ("Affiliate") and                                 as
--------------------------                   -------------------------------
the eligible lender trustee on behalf of the Affiliate ("Affiliate Eligible
Lender Trustee").

     This Subservicing Addendum is an addendum to that certain Student Loan
Origination and Servicing Agreement among Great Lakes, Master Servicer,
Education Funding Capital Trust-I (the "Trust") and Fifth Third Bank as eligible
lender trustee on behalf of the Trust (the "Trust ELT") dated as of May   ,
                                                                        --
2002, including all amendments, addenda, attachments, exhibits and schedules
thereto (herein the "Subservicing Agreement").

     Capitalized terms used in this Subservicing Addendum without definitions
shall have the meanings ascribed to such terms in the Subservicing Agreement.

     WHEREAS, Master Servicer desires Great Lakes to provide the services set
forth in the Subservicing Agreement for the Affiliate and the Affiliate Eligible
Lender Trustee; and

     WHEREAS, Great Lakes agrees to provide the services set forth in the
Subservicing Agreement with respect to Student Loans owned by the Affiliate and
held by the Affiliate Eligible Lender Trustee acting on its behalf under the
terms of the Subservicing Agreement.

     NOW, THEREFORE, in consideration of the mutual promises contained herein
and other valuable consideration, and intending to be legally bound, Great
Lakes, Master Servicer, Affiliate and Affiliate Eligible Lender Trustee agree as
follows:

     (1) Great Lakes and Master Servicer agree to amend the existing
Subservicing Agreement by adding this Subservicing Addendum to the Agreement.
For purposes of construing the Subservicing Agreement in order to carry out the
intention of this Subservicing Addendum, (i) each reference to the Trust in the
Subservicing Agreement shall mean the Affiliate; (ii) each reference to the
Eligible Lender Trustee in the Subservicing Agreement shall mean the Affiliate
Eligible Lender Trustee; (iii) each reference to the Lender in the Subservicing
Agreement shall mean                    ; and (iv) each reference to the
                     -------------------
Indenture in the Subservicing Agreement shall mean                     .
                                                   --------------------

<PAGE>

     (2) Great Lakes agrees to perform its duties and obligations for the
Affiliate and the Affiliate Eligible Lender Trustee in accordance with the terms
and conditions set forth in the Subservicing Agreement, as amended, for Student
Loans owned by the Affiliate and held by the Affiliate Eligible Lender Trustee.
Master Servicer, Affiliate and Affiliate's Eligible Lender Trustee agree to
perform their respective duties and obligations in accordance with the terms and
conditions set forth in the Subservicing Agreement, as amended.

     (3) Master Servicer shall be responsible for and agrees to pay all fees due
to Great Lakes for services rendered to the Affiliate and the Affiliate Eligible
Lender Trustee by Great Lakes under the Subservicing Agreement with respect to
the Student Loans owned by the Affiliate.

     (4) Master Servicer and Great Lakes each shall have the right to terminate
the Subservicing Agreement with respect to the services provided to the
Affiliate and the Affiliate Eligible Lender Trustee on the terms and conditions
set forth in the Subservicing Agreement.

     (5) All notices or other communications by one of the parties hereto to the
Affiliate shall be addressed as follows:                                       ;
                                         --------------------------------------
and to the Affiliate Eligible Lender Trustee as follows:
                                                         -----------------------
                                         , or such other address as may be
----------------------------------------
indicated from time to time by such party.

     (6) This Subservicing Addendum shall be effective as of the first date
written above.

     (7) This Subservicing Addendum may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall
constitute one and the same instrument.

     (8) By signing this Subservicing Addendum, each party certifies that it has
the power and authority to execute and deliver this Subservicing Addendum and to
carry out its terms and the terms of the Subservicing Agreement, and the
execution, delivery and performance of this Subservicing Addendum has been duly
authorized by each respective entity.

     IN WITNESS WHEREOF, the parties hereto caused this instrument to be duly
executed as of the month, day and the year of this Subservicing Addendum.

<PAGE>

                                 GREAT LAKES EDUCATIONAL LOAN
                                 SERVICES, INC.
                                 as Servicer

                                 By:
                                    --------------------------------------------
                                 Name:
                                      ------------------------------------------
                                 Title:
                                       -----------------------------------------

                                 GRAD PARTNERS, INC.
                                 as Master Servicer

                                 By:
                                    --------------------------------------------
                                 Name:
                                      ------------------------------------------
                                 Title:
                                       -----------------------------------------
                                 [_____________________________________________]
                                 as Affiliate

                                 By:
                                    --------------------------------------------
                                 Name:
                                      ------------------------------------------
                                 Title:
                                       -----------------------------------------
                                 [_____________________________________________]
                                 as Affiliate Eligible Lender Trustee

                                 By:
                                    --------------------------------------------
                                 Name:
                                      ------------------------------------------
                                 Title:
                                       -----------------------------------------

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