Document:

exv10w2

 

Exhibit 10.2

AMENDED AND RESTATED

ADMINISTRATION AGREEMENT

among

HIGHER EDUCATION FUNDING I,

as Issuer

WILMINGTON TRUST COMPANY,

as Delaware Trustee,

THE BANK OF NEW YORK,

as Indenture Trustee,

THE BANK OF NEW YORK,

as Eligible Lender Trustee,

and

GOAL FINANCIAL, LLC,

as Issuer Administrator

Dated as of March 1, 2005

 

 

     THIS AMENDED AND RESTATED ADMINISTRATION AGREEMENT dated as of March 1, 2005 (as amended from
time to time, this “Administration Agreement”), among HIGHER EDUCATION FUNDING I, a Delaware
statutory trust (the “Issuer”), WILMINGTON TRUST COMPANY, a Delaware banking corporation, not in
its individual capacity but solely as Delaware Trustee (the “Delaware Trustee”), THE BANK OF NEW
YORK, a New York banking corporation, not in its individual capacity but solely as Indenture
Trustee (in such capacity, the “Indenture Trustee”), and as Eligible Lender Trustee (in such
capacity, the “Eligible Lender Trustee”) and GOAL FINANCIAL, LLC, a California limited liability
company (the “Issuer Administrator”).

W I T N E S S E T H :

     WHEREAS, the Issuer may issue from time to time its (a) Student Loan Asset-Backed Notes (the
“Notes”) pursuant to the Amended and Restated Indenture of Trust, dated as of March 1, 2005, among
the Issuer, the Eligible Lender Trustee and the Indenture Trustee (together with any Supplemental
Indentures and any amendments thereto made in accordance with their respective terms, the
“Indenture”); and (b) its Trust Certificates pursuant to the Amended and Restated Trust Agreement,
dated as of March 1, 2005 (as the same may be amended from time to time, the “Trust Agreement”),
between the Delaware Trustee and Consolidation Loan Funding II, LLC, as depositor (together with
its successors in interest, the “Owner”); and

     WHEREAS, pursuant to an Eligible Lender Trust Agreement, dated as of January 1, 2004 (as the
same may be amended from time to time, the “Eligible Lender Trust Agreement”), between the Issuer
and the Eligible Lender Trustee, the Eligible Lender Trustee shall hold legal title to Student
Loans acquired by the Issuer as beneficial owner; and

     WHEREAS, pursuant to the Indenture, the Issuer and the Eligible Lender Trustee are assigning
their respective interests in the Financed Eligible Loans and other collateral (the “Collateral”)
to the Indenture Trustee; and

     WHEREAS, the Issuer desires to have the Issuer Administrator perform certain of the duties of
the Issuer referred to in the Indenture, the Trust Agreement and the Eligible Lender Trust
Agreement (collectively, the “Basic Documents”) and any other documents signed by the Delaware
Trustee or the Eligible Lender Trustee on behalf of the Issuer (collectively, the “Trust Related
Agreements”) or required by the Higher Education Act with respect to the Student Loans and to
provide such additional services consistent with the terms of this Administration Agreement and the
Trust Related Agreements as the Issuer and the Delaware Trustee may from time to time request; and

     WHEREAS, the Issuer Administrator has the capacity to provide the services required hereby and
is willing to perform such services for Issuer on the terms set forth herein; and

     WHEREAS, the Issuer, The Bank of New York (Delaware), a Delaware banking corporation, not in
its individual capacity but solely as Delaware Trustee, the Indenture Trustee, the Eligible Lender
Trustee and Lord Securities Corporation, a Delaware

					
	 	 	 	 	 
	
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	 	A/R ADMINISTRATION AGREEMENT

 

 

corporation, as Issuer Administrator, are parties to that certain Administration Agreement
dated January 1, 2004 (the “Original Agreement”); and

     WHEREAS, the parties hereto desire to amend and restate the Original Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto agree to amend and restate the Original Agreement as
follows:

     Capitalized terms used and not otherwise defined herein shall have the meanings assigned to
such terms in the Basic Documents.

     Section 1. Duties of the Issuer Administrator.

     (a) Duties with Respect to the Trust Related Agreements.

          (i) The Issuer Administrator agrees to perform all its duties under this Administration
Agreement and the Trust Related Agreements. In addition, the Issuer Administrator shall
consult with the Delaware Trustee regarding the duties of the Issuer and the Delaware
Trustee under the Trust Related Agreements. The Issuer Administrator shall monitor the
performance of the Issuer and shall advise the Eligible Lender Trustee and the Delaware
Trustee when action is necessary to comply with the Issuer’s duties under the Trust Related
Agreements. The Issuer Administrator shall prepare for execution by the Issuer, or shall
cause the preparation by other appropriate persons or entities of, all such documents,
reports, filings, instruments, certificates and opinions that it shall be the duty of the
Issuer to prepare, file or deliver pursuant to the Trust Related Agreements. In furtherance
of the foregoing, the Issuer Administrator shall take all appropriate action that is the
duty of the Issuer to take pursuant to the Trust Related Agreements, including, without
limitation, such of the foregoing as are required with respect to the following matters
under the Trust Related Agreements:

               (A) directing the Indenture Trustee by Issuer Order to deposit moneys with Paying Agents, if
any, other than the Indenture Trustee;

               (B) preparing and delivering notice to the Holders of the removal of the Indenture Trustee and
the appointment of a successor Indenture Trustee;

               (C) preparing an Issuer Order and obtaining an opinion of counsel, if necessary, for the
release of property of the Trust Estate;

               (D) preparing Issuer Certificates and obtaining opinions of counsel with respect to the
execution of amendments to the Trust Related Agreements and the delivering to the Holders, the
Rating Agencies and any other parties to whom notice is required to be sent notices with respect to
such amendments;

               (E) paying all expenses in connection with the issuance of the Notes;

					
	 	 	 	 	 
	
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	 	A/R ADMINISTRATION AGREEMENT

 

 

               (F) prepaying (from the Trust Estate) or accelerating the Notes and the related notice to the
Indenture Trustee;

               (G) taking all actions on behalf of the Issuer necessary under any Guarantee Agreement;

               (H) responding to inquiries and requests made by borrowers, educational institutions,
Guarantee Agencies, the Indenture Trustee and other parties with respect to the Financed Eligible
Loans and to requests by independent auditors for information concerning the Issuer’s financial
affairs;

               (I) maintaining financial records concerning the Financed Eligible Loans and, if furnished
adequate information with respect to financial affairs not related to the Financed Eligible Loans,
preparing and maintaining a general ledger and financial statements for the Issuer;

               (J) providing instructions to the Issuer and the Eligible Lender Trustee with respect to the
administration of the Financed Eligible Loans;

               (K) furnishing to the Issuer, the Indenture Trustee or the Eligible Lender Trustee copies of
reports received with respect to the Financed Eligible Loans, and preparing a Monthly Servicing
Report and such additional reports with respect to the Financed Eligible Loans, as the Issuer or
the Eligible Lender Trustee may reasonably request from time to time;

               (L) preparing, or causing to be prepared, and furnishing to the Issuer annual operating
budgets, quarterly statistical reports and cash flow projections as required under the Indenture;

               (M) performing such other services with respect to administration of the Financed Eligible
Loans as the Issuer or the Eligible Lender Trustee may reasonably request;

               (N) completing and filing all tax returns and tax filings as required pursuant to Section 2.03
of the Trust Agreement;

               (O) informing the Delaware Trustee if any withholding is required pursuant to Section 5.01 of
the Trust Agreement;

               (P) handling all accounting matters pursuant to Section 5.04 of the Trust Agreement;

               (Q) preparing all reports required by the Higher Education Act in connection with Financed
Student Loans;

               ( R) executing any Trust Related Agreements on behalf of the Issuer; and

					
	 	 	 	 	 
	
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	 	A/R ADMINISTRATION AGREEMENT

 

 

               (S) calculating the Net Reject Rate and making related calculations required by Section 26 of
the First Supplemental Indenture dated as of January 1, 2004 (the “First Supplemental Indenture”)
and Section 15 of the Second Supplemental Indenture dated as of March 1, 2005.

     (b) Duties with Respect to Servicing and Guarantees.

          (i) The Issuer Administrator shall consolidate, prepare and report all pertinent
information to the Department of Education on the “Lender Reporting System Report” (or such
successor report as may be applicable).

     (c) Additional Duties.

          (i) In addition to the duties of the Issuer Administrator set forth above, the Issuer
Administrator shall perform, or cause to be performed, its duties and obligations and the
duties and obligations of the Delaware Trustee on behalf of the Issuer under the Trust
Agreement.

          (ii) In furtherance of the foregoing, the Issuer shall execute and deliver to the
Issuer Administrator one or more powers of attorney substantially in the form of Exhibit A
hereto, appointing the Issuer Administrator the attorney-in-fact of the Issuer for the
purpose set forth therein. Subject to Section 5 hereof, and in accordance with the
directions of the Issuer, or the Delaware Trustee, the Issuer Administrator shall
administer, perform or supervise the performance of such other activities in connection with
the Trust Estate (including the Trust Related Agreements) as are not covered by any of the
foregoing provisions and as are expressly requested by the Issuer or the Delaware Trustee.
The Issuer Administrator agrees to perform such obligations and deliver such notices as are
specified to be performed or delivered by the Issuer Administrator under the Trust Related
Agreements.

          (iii) In carrying out the foregoing duties or any of its other obligations under this
Agreement, the Issuer Administrator may enter into transactions or otherwise deal with any
of its affiliates; provided, however, that the terms of any such transactions or dealings
shall be in accordance with any directions received from the Issuer or the Delaware Trustee
and shall be, in the Issuer Administrator’s opinion, no less favorable to the Issuer or the
Delaware Trustee than would be available from unaffiliated parties.

          (iv) In carrying out any of its obligations under this Agreement, the Issuer
Administrator may act either directly or through agents, attorneys, accountants, independent
contractors and auditors and enter into agreements with any of them.

     (d) Non-Ministerial Matters.

          (i) With respect to matters that in the reasonable judgment of the Issuer Administrator
are non-ministerial, the Issuer Administrator shall not be under any obligation to take any
action, and in any event shall not take any action, unless the Issuer Administrator shall
have received instructions from the Delaware Trustee or the

					
	 	 	 	 	 
	
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Owner. For the purpose of the preceding sentence, “non-ministerial matters” shall
include, without limitation:

               (A) the amendment of or any supplement to the Trust Related Agreements;

               (B) the initiation of any action, claim or lawsuit by the Issuer and the compromise of any
action, claim or lawsuit brought by or against the Issuer, except for actions, claims or lawsuits
initiated in the ordinary course of business by the Issuer or its agents or nominees for
the collection of amounts owed in respect of Financed Eligible Loans;

               (C) the appointment of successor Indenture Trustees pursuant to the Indenture, or the consent
to the assignment by the Indenture Trustee of its obligations under the Indenture;

               (D) the removal of the Indenture Trustee; and

               (E) the amendment, change or modification of this Agreement or any Trust Related Agreement,
except for amendments, changes or modifications that do not either (1) reduce in any manner the
amount of, or delay the timing of, or collections of payments with respect to the Financed Eligible
Loans or (2) materially reduce the underwriting standards with respect to the Financed Eligible
Loans.

          (ii) Notwithstanding anything to the contrary in this Administration Agreement, the
Issuer Administrator shall not be obligated to, and shall not (A) make any payments to the
Holders under the Trust Related Agreements, (B) sell the Trust Estate pursuant to the
Indenture or (C) take any action that the Issuer or the Delaware Trustee directs the Issuer
Administrator not to take on its behalf.

          (iii) The foregoing Non-Ministerial Matters shall only be performed by the Issuer
Administrator with prior Rating Agency Confirmation.

     (e) Additional Duties. The Issuer Administrator shall perform the following
additional duties:

          (i) supervising the closing of the sale of any series of Notes including the payment of
the costs of issuance for any series of Notes;

          (ii) selecting and assigning Servicers and Guarantors and negotiating and/or
renegotiating contracts, terms and/or pricing with Servicers and/or Guarantors; and

          (iii) selecting and assigning, and negotiating and renegotiating for the services of
professional personnel such as, without limitation, accountants, investment bankers,
attorneys and Rating Agencies.

     (f) Indemnification.

					
	 	 	 	 	 
	
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	 	A/R ADMINISTRATION AGREEMENT

 

 

          The Issuer Administrator will:

          (i) indemnify the Indenture Trustee, the Eligible Lender Trustee and their respective
agents for, and hold them harmless against, any losses, liability, claim, action, suit, cost
or expense, of any kind or nature whatsoever, including reasonable attorney’s fees and
expenses, incurred without negligence, misconduct or bad faith on their part, arising out of
the misconduct, negligence or bad faith or other act of the Issuer Administrator in the
performance of the Issuer Administrator’s duties contemplated by this Agreement; and

          (ii) indemnify the Issuer and the Delaware Trustee and their respective agents for, and
hold them harmless against, any losses, liability, claim, action, suit, cost or expense, of
any kind or nature whatsoever, including reasonable attorney’s fees and expenses, incurred
without negligence, misconduct or bad faith on their part, arising out of the misconduct,
negligence or bad faith or other act of the Issuer Administrator in the performance of the
Issuer Administrator’s duties contemplated by this Agreement; provided, however, that the
Issuer Administrator shall not be required to indemnify the Indenture Trustee, the Issuer or
the Delaware Trustee pursuant to Section 1(f)(i) or (ii) hereof so long as the Issuer
Administrator has acted pursuant to the instructions of the Delaware Trustee or the Owner in
accordance with subsection (d) hereof.

     (g) In the event that the Issuer Administrator determines that it would be beneficial to the
Issuer for a party other than the Issuer Administrator to perform any of the duties under this
Section 1, it will notify the Issuer and, subject to first obtaining Rating Agency Confirmation,
the parties to this Agreement may either amend this Agreement or delegate those duties to another
party. However, until such Rating Agency Confirmation is obtained, no such amendment or delegation
shall be effective. Notwithstanding the foregoing, the parties hereto agree and acknowledge that
(i) the Issuer Administrator is entering into that certain Verification Agent Agreement of even
date herewith with Lord Securities Corporation, and (ii) the Rating Agency Confirmation shall not
be required to be satisfied in connection therewith.

     (h) In furtherance of subparagraphs (a), (b), (c) and (d), the Issuer Administrator’s duties
shall include:

	 	1.  	Compliance For Student Loans:

	 	(i)  	Track on an ongoing basis the aggregate Principal Balance of all Student Loans being
acquired which are not Consolidation Loans and verify that the aggregate Principal Balance of all
Student Loans which are not Consolidation Loans does not exceed the limit set forth in the
applicable Supplemental Indenture;
	 
	 	(ii)  	Verify, based upon information periodically provided by Servicers, that the Student Loans
being acquired with “graduated repayment characteristics” (bearing interest only for the first
one-third of the payment term) does not exceed the limit as set forth in the applicable
Supplemental Indenture;

					
	 	 	 	 	 
	
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	 	A/R ADMINISTRATION AGREEMENT

 

 

	 	(iii)  	Track on an ongoing basis the aggregate Principal Balance of all Consolidation Loans
being acquired which have an interest rate of 5.0% or higher and verify that the Premium,
Origination Fees and Borrower Benefits being paid for those
Consolidation Loans do not exceed the limits set forth in the applicable Supplemental
Indenture and track on an ongoing basis the aggregate Principal Balance of all Consolidation Loans
being acquired which have an interest rate of less than five percent (5%) and verify that the
Premium and Origination Fees being paid for those Consolidation Loans do not exceed the limits set
forth in the applicable Supplemental Indenture;

	 	(iv)  	Track on an ongoing basis and verify that not more than three percent (3%) of the
Financed Student Loans purchased which are Consolidation Loans have original principal balances at
the time of purchase of less than fifteen thousand dollars ($15,000); provided, however, that any
Consolidation Loan which was purchased with an original principal balance of less than fifteen
thousand dollars ($15,000) at the time of purchase, but for which a subsequent Add-On Loan has been
made and the principal balance of the Add-On Loan, when added to the original principal balance of
such Consolidation Loan at the time of purchase, shall cause the original principal balance of such
Consolidation Loan to exceed fifteen thousand dollars ($15,000), shall be excluded from the
computation of the three percent (3%) limitation.
	 
	 	(v)  	Track on an ongoing basis the aggregate Principal Balance of all Student Loans which a
“borrower benefit” is being offered to verify that the percentage of Student Loans offering a
“borrower benefit” does not exceed the allowable limit as set forth in a Supplemental Indenture;
and
	 
	 	(vi)  	Track on an ongoing basis the aggregate Principal Balance of all Consolidation Loans
being acquired which have an interest rate of five percent (5%) or greater to verify that the
aggregate Principal Balance of those Consolidation Loans does not exceed the limit as set forth in
a Supplemental Indenture.

					
	 	 	 	 	 
	
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	 	2.  	Review, verify and compare “Loan Origination Disbursements Made Reports”
received from Great Lakes Higher Education Corporation and/or ACS Education Loan
Services, Inc. (or any other Servicer, if Rating Agency Confirmation is first received)
with the “Loan Transfer Addendum” received from Consolidation Loan Funding II, LLC and,
if all documents are in order, execute the “Loan Transfer Addendum”, issue and sign an
“Eligible Loan Acquisition Certificate” and instruct the Eligible Lender Trustee (The
Bank of New York), via facsimile, to transfer the principal and Premium of the acquired
Student Loans to Consolidation Loan Funding II, LLC.
	 
	 	3.  	Distribution Date Process:

	 	(i)  	Prepare, sign and deliver to the Trustee the “Consolidation Loan Rebate Fee Report” and
execute an Issuer Order for the payment of the fee due the Department of Education;
	 
	 	(ii)  	On each Monthly Calculation Date, recalculate and verify the amount deposited by the
Trustee into the Interest Account for the payment of interest (discount) on all Notes due for
payment during the next month;
	 
	 	(iii)  	On each Monthly Calculation Date, recalculate and verify the amount deposited by the
Trustee into the Administration Fund for the payment of the Broker-Dealer and Auction Agent Fees
for the next month;
	 
	 	(iv)  	On each Monthly Calculation Date, calculate and verify the amount deposited by the
Trustee into the Administration Fund for the payment of Servicing Fees for the next month; and
	 
	 	(v)  	Execute individual Issuer Orders for the payment of all Fees listed above except for the
amount transferred into the Interest Account.

	 	4.  	Reserve Fund Compliance:

	 	(i)  	Monitor the Specified Reserve Account Balance and determine whether on each Monthly
Calculation Date the Specified Reserve Account Balance requirement is met, which is currently the
following:

	 	(a)  	three-quarters of one percent (0.75%) of the aggregate principal amount of the Notes then
outstanding; or
	 
	 	(b)  	such other amount specified in a Supplemental Indenture; provided, however, that in no
event should the amount be less than two million dollars ($2,000,000).

	 	(ii)  	If necessary, replenish the Reserve Fund with any amounts required from the Collection
Account.

					
	 	 	 	 	 
	
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	 	(iii)  	On the 20th day of each month, provide the Trustee with a report identifying
the Principal Balance of all Financed Eligible Loans which are more than 270 days delinquent and
the claims on which have not been paid by a Guarantee Agency of the Secretary of Education (whether
or not such claims are pending).

	 	5.  	Limits on Fees:

	 	(i)  	Verify that the Fees paid do not exceed or are in compliance with the following:

	 	(a)  	The annual fees of the Trustee, Delaware Trustee, the Eligible Lender Trustee and the
Market Agent authorized by each applicable Supplemental Indenture then in effect;
	 
	 	(b)  	The Broker-Dealer Fee payable is at the Broker-Dealer Fee Rate authorized by each
applicable Supplemental Indenture then in effect;
	 
	 	(c)  	The Auction Agent fee payable is at the Auction Agent Fee Rate authorized by each
applicable Supplemental Indenture then in effect;
	 
	 	(d)  	There will be no other additional payments on the above Note Fees unless prior Rating
Agency Confirmation is obtained;
	 
	 	(e)  	The Administration Fees do not exceed the amounts contemplated by the definition of
Administration Fee in the applicable Supplemental Indenture;
	 
	 	(f)  	Servicing fees do not exceed the amounts established in the Servicing Agreements; and
	 
	 	(g)  	The aggregate amount of Servicing Fees, Administration Fees and Note Fees paid from the
Administration Fund does not exceed the amount as provided for by the Supplemental Indentures then
in effect.

	 	(ii)  	Verify that all Issuer Orders directing the payment of Fees from the Administration Fund
have attached to it the appropriate invoice from the payee.

	 	6.  	Compliance on Sale of Loans: Verify that the Issuer complies with the loan
sale provisions as set forth in the Indenture or a Supplemental Indenture which
currently are as follows:

	 	(i)  	Except as set forth in a Supplemental Indenture or with Rating Agency Confirmation, the
Issuer may direct the sale of Student Loans in the Acquisition Fund only in the following
circumstances:

					
	 	 	 	 	 
	
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	 	(a)  	To the Depositor or other seller if such party is required to repurchase such Student Loan
pursuant to a Student Loan Purchase Agreement;
	 
	 	(b)  	In order to avoid an Event of Default;
	 
	 	(c)  	To a Guarantee Agency; and
	 
	 	(d)  	If all of the Student Loans are sold at a price sufficient to defease all obligations
outstanding under the Indenture.

	 	(ii)  	Prior to any such sale the Trustee shall have received an Issuer Certificate certifying
that such sale will not materially adversely affect the Issuer’s ability to pay Debt Service on the
Outstanding Notes and Outstanding Other Obligations, Carry-Over Amounts (including accrued interest
thereon) with respect to the Outstanding Notes, Servicing Fees, Administration Fees or Note Fees,
or other obligations with respect to the Notes; and
	 
	 	(iii)  	All funds received from such loan sale must be deposited in the Collection Fund.

	 	7.  	Verify the Applicable Interest Rate:

	 	(i)  	Verify the Applicable Interest Rate for each period which during each interest period
following the Initial Interest Period will be determined in accordance with the Auction Procedures
but which shall not exceed the Maximum Rate.
	 
	 	(ii)  	Determine the Maximum Rate as set forth in a Supplemental Indenture, which on any date of
determination is currently the interest rate per annum equal to the least of: (a) the Maximum
Auction Rate, (b) the Maximum Interest Rate and (c) during the occurrence of a Net Loan Rate
Restriction Period, the Net Loan Rate, in each case rounded to the nearest one thousandth (0.001)
of 1%.
	 
	 	(iii)  	Determine the Maximum Auction Rate as set forth in a Supplemental Indenture which is
currently as follows: for any Auction, a per annum interest rate on the Series 2004-1 Notes which,
when taken together with the interest rate on the Series 2004-1 Notes for the one-year period
ending on the final day of the proposed Auction Period, would result in the average interest rate
on the Series 2004-1 Notes for such period either (a) not being in excess (on a per annum basis) of
the average of the Ninety-One Day United States Treasury Bill Rate plus 1.20% for such one-year
period (if any one of the ratings assigned by the Rating Agencies to the Series 2004-1 Notes are
“Aa3” or “AA-” or better), (b) not being in excess (on a per annum basis) of the Ninety-One Day
United States Treasury Bill Rate plus 1.50% for such one-year period (if any one of the 

					
	 	 	 	 	 
	
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	 	   	 ratings assigned by the Rating Agencies to the Series 2004-1 Notes is less than “Aa3” or “AA-” but both are
at least any category of “A”), or (c) not being in excess (on a per annum basis) of the average of
Ninety-One Day United States Treasury Bill Rate plus 1.75% for such one-year period (if any one of
the ratings assigned by the Rating Agencies to the Series 2004-1 Notes is less than the lowest
category of “A”); provided, however, that if the Series 2004-1 Notes have not been Outstanding for
at least such one-year period then for any portion of such period during which such Series 2004-1
Notes were not Outstanding, the interest rates on the Series 2004-1 Notes for the purposes of this
calculation shall be deemed to be equal to such rates as the Market Agent shall determine were the
rates of interest on equivalently rated auction securities with comparable lengths of auction
periods during such period; provided further, however, that for any Auction with respect to any
Series 2004-1 Notes rated any category of “A” or better by Moody’s & S&P, respectively, the Maximum
Auction Rate shall not exceed the Applicable LIBOR-Based Rate plus 1.50%.

	 	(iv)  	Verify the Maximum Interest Rate as set forth in a Supplemental Indenture, which with
respect to the Series 2004-1 Notes is currently the lesser of (a) 17% per annum (or such higher
rate as the Issuer may establish with a Rating Agency Confirmation) or (b) the highest rate the
Issuer may legally pay, from time to time, as interest on the Notes.
	 
	 	(v)  	Determination of Net Loan Rate Trigger Date event as set forth in a Supplemental Indenture
which is currently as follows:

	 	(a)  	Determine whether on the 25th day of a month which immediately follows three
consecutive months for which either (a) the daily
weighted average of the Auction Rates for each series of Notes bearing interest based upon an
auction mode in effect during the month for which such calculation is being made exceeded a per
annum rate equal to the sum of (i) the bond equivalent yield of the 91-Day United States Treasury
Bills sold at the last auction prior to the 25th day of the month for which such
calculation is being made plus (ii) 1.0%; or (b) the most recently available Three-Month LIBOR as
of the Reset Date for the CP Rate in the month for which calculation is being made is equal to or
greater than the sum of (i) the CP Rate for the applicable month plus (ii) 0.25%.
	 
	 	(b)  	Determine the Net Loan Rate Termination Date which is, for a series of Series 2004-1 Notes
for which the Net Loan Rate Trigger Date has occurred, the 25th day of a month which
immediately follows two consecutive months for which both (a) the daily weighted average of the
Auction Rate for each series of Notes bearing interest based upon an auction mode in effect during
the month for which the calculation is being made was equal to or

					
	 	 	 	 	 
	
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	 	   	less than a per annum rate equal
to the sum of (i) the bond equivalent yield of 91-Day United States Treasury Bills sold at the last
auction prior to the 25th day of the month for which such calculation is being made plus
(ii) 1.0% and (b) the most recently available Three-Month LIBOR as of the Reset Date for the CP
Rate in the month for which such calculation is being made is less than the sum of (i) the CP Rate
for the month for which such calculation is being made plus (ii) 0.25%.

	 	(c)  	If under a Net Loan Period, then Calculate the Net Loan Rate by dividing (a) the product
of 12 times the sum of the following amounts accrued during the most recent calendar month that
ended at least 25 days before the start of such Auction Period (except for (i) below, whether or
not actually received or paid): (i) interest (including Interest Subsidy Payments), assumed Special
Allowance Payments and late fees collected with respect to the Financed Student Loans, after giving
effect to borrower incentives and similar programs, plus (ii) investment earnings on
amounts in the Funds, plus (iii) any Counterparty Swap Payments minus (iv) any
rebate fees due to the U.S. Department of Education with respect to Financed Student Loans that are
Consolidation Loans, minus (v) any Issuer Swap Payments, minus (vi) the interest
accrued on all Outstanding Notes other than those that bear interest based upon an auction mode,
minus (vii) the Note Fees, Administration Fees and Servicing Fees; by (b) the aggregate
principal balance of all Notes bearing interest based upon an auction mode that are Outstanding on
the date of such calculation. For this purpose, the Special Allowance Payment shall be computed
based upon the bond equivalent yield of 91- Day United States Treasury Bills most recently
auctioned, or the CP rate, as applicable (whether or not the actual Special Allowance Payment rate
could then be determined); and, provided further, however, that this definition may be modified at
the direction of the Issuer upon receipt by the Trustee of (i) written consent of the Market Agent
and (ii) written consent from each Rating Agency then rating the Series 2004-1 Notes that such
change will not in and of itself result in a reduction of the rating on any Series 2004-1 Notes.

	 	8.  	Surplus Fund: Verify that before any amounts from the Surplus Fund are
released to the Issuer in accordance with the terms of the Indenture and a Supplemental
Indenture, that the Asset Release Requirement is met. Any Issuer Order requesting such
release shall identify the Senior Asset Percentage and the Subordinate Asset percentage
used in making the calculation of the Asset Release Requirement and provide the Trustee
with the calculation of the Aggregate value
of the assets held under the Indenture, the principal amount of all Notes
Outstanding, the accrued interest on Outstanding Senior Notes, the accrued

					
	 	 	 	 	 
	
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	 	A/R ADMINISTRATION AGREEMENT

 

 

	 	   	Issuer Swap Payments with respect to Senior Swap Agreements, the accrued fees with respect
to Senior Credit Enhancement Facilities, the accrued interest on all Outstanding
Subordinate Notes, the accrued Issuer Swap Payments (other than with respect to
Junior Subordinate Swap Agreements), the accrued fees with respect to Credit
Enhancement Facilities (other than Junior Subordinate Credit Enhancement Facilities)
and the Asset Release Requirement.

	 	9.  	Redemption: Verify the Mandatory Redemption of the Notes pursuant to the
terms of the Indenture and applicable Supplemental Indenture, which is currently as
follows:

	 	(i)  	On any Interest Payment Date following the end of an Acquisition Period, on a first
in-first out basis from the remaining amount in the Acquisition Fund.
	 
	 	(ii)  	On any Interest Payment Date following the end of each Revolving Period, from revenues
deposited in the Retirement Account.
	 
	 	(iii)  	Verify before any Subordinate Note is Redeemed, while Senior Notes remain outstanding,
that the Senior Asset Requirement is met.

	 	10.  	Verification that each investment of moneys within any Fund constitutes a
Permitted Investment.
	 
	 	11.  	Preparation of Moody’s Investors Services Monthly Monitoring Report (attached
as Exhibit B) and delivery of the Report to Moody’s and the Issuer.
	 
	 	12.  	Maintenance and record keeping of the Trust’s General Ledger and other relevant
records and preparation of monthly unaudited financial statements.
	 
	 	13.  	Providing for and assisting in the completion of the audit of the financial
statements of the Issuer.
	 
	 	14.  	Administration and maintenance of the reports of servicers and others used in
connection with the administration of, “borrower benefits” programs and verification
that such “borrower benefits” programs are in compliance with the Indenture and the
Supplemental Indentures.
	 
	 	15.  	All other activities required or expected from the Issuer Administrator for the
smooth operation of the business.

     Section 2. Records. The Issuer Administrator shall maintain appropriate books of
account and records relating to services performed hereunder, which books of account and records
shall be accessible for inspection by the Issuer, the Indenture Trustee, the Holders, the
Eligible Lender Trustee, the Delaware Trustee and the Owner at any time during normal business
hours.

					
	 	 	 	 	 
	
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	 	A/R ADMINISTRATION AGREEMENT

 

 

     Section 3. Compensation. As compensation for the performance of the Issuer
Administrator’s obligations under this Agreement and as reimbursement for its expenses related
thereto, the Issuer Administrator shall be entitled to a fee as set forth in the engagement letter
dated March 10, 2005 between the Issuer and the Issuer Administrator (the “Engagement Letter”).
The payment of the foregoing fee shall be solely an obligation of the Issuer to be paid solely out
of the Trust Estate. The compensation set forth in the Engagement Letter cannot be changed without
Rating Agency Confirmation.

     Section 4. Additional Information to be Furnished. The Issuer Administrator, within
120 days of the date of this Agreement, shall furnish to the Issuer and the Indenture Trustee a
manual setting forth the policies and procedures the Issuer Administrator will follow with respect
to the discharge of its duties set forth in Section 1 of this Administration Agreement. The Issuer
Administrator shall update the manual once each calendar quarter thereafter. In addition, the
Issuer Administrator shall furnish to the Issuer and the Indenture Trustee from time to time such
additional information regarding the Trust Estate as the Issuer or the Indenture Trustee shall
reasonably request.

     Section 5. Independence of the Issuer Administrator. For all purposes of this
Administration Agreement, the Issuer Administrator shall be an independent contractor and shall not
be subject to the supervision of the Issuer, the Eligible Lender Trustee or the Delaware Trustee
with respect to the manner in which it accomplishes the performance of its obligations hereunder.
Unless expressly authorized by the Issuer, the Eligible Lender Trustee or the Delaware Trustee or
unless otherwise provided in this Agreement, the Issuer Administrator shall have no authority to
act for or represent the Issuer, the Eligible Lender Trustee or the Delaware Trustee in any way and
shall not otherwise be deemed an agent of the Issuer, the Eligible Lender Trustee or the Delaware
Trustee.

     Section 6. No Joint Venture. Nothing contained in this Agreement: (a) shall
constitute the Issuer Administrator and any of the Issuer, the Eligible Lender Trustee, the
Delaware Trustee or the Owner as members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity; (b) shall be construed to impose any liability as
such on any of them; or (c) shall be deemed to confer on any of them any express, implied or
apparent authority to incur any obligation or liability on behalf of the others.

     Section 7. Other Activities of the Issuer Administrator. Nothing herein shall prevent
the Issuer Administrator or its affiliates from engaging in other businesses or, in its or their
sole discretion, from acting in a similar capacity as an administrator for any other person or
entity even though such person or entity may engage in business activities similar to those of the
Issuer, the Eligible Lender Trustee, the Delaware Trustee or the Indenture Trustee.

     Section 8. Term of Agreement; Resignation and Removal of Issuer Administrator. Unless
sooner terminated in accordance with the provisions of this Section, this Agreement shall remain in
full force and effect until the dissolution of the Issuer, in which event this Agreement shall
automatically terminate. The Issuer Administrator may resign its duties hereunder by
providing the Issuer and the Rating Agencies with at least one hundred eighty (180) days’ (or
such shorter period of time as to which a Rating Agency Confirmation has been obtained) prior
written notice. The Issuer Administrator may be removed immediately upon

					
	 	 	 	 	 
	
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	 	A/R ADMINISTRATION AGREEMENT

 

 

written notice of
termination from the Issuer or the Indenture Trustee to the Issuer Administrator and the Rating
Agencies if any of the following events shall occur:

          (a) the Issuer Administrator shall default in the performance of any of its duties
under this Agreement and, after notice of such default, shall not cure such default within
ten days (or, if such default cannot be cured in such time, shall not give within ten days
such assurance of cure as shall be reasonably satisfactory to the Issuer);

          (b) a court having jurisdiction in the premises shall enter a decree or order for
relief, and such decree or order shall not have been vacated within 60 days, in respect of
the Issuer Administrator in any involuntary case under any applicable bankruptcy, insolvency
or other similar law now or hereafter in effect or appoint a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official for the Issuer Administrator or any
substantial part of its property or order the winding-up or liquidation of its affairs; or

          (c) the Issuer Administrator shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the
entry of an order for relief in an involuntary case under any such law, or shall consent to
the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator or
similar official for the Issuer Administrator or any substantial part of its property, shall
consent to the taking of possession by any such official of any substantial part of its
property, shall make any general assignment for the benefit of creditors or shall fail
generally to pay its debts as they become due.

       The Issuer Administrator agrees that if any of the events specified in clause (a), (b) or (c)
of this Section shall occur, it shall give written notice thereof to the Issuer, the Indenture
Trustee and to the Rating Agencies within seven days after the happening of such event. The
Issuer Administrator agrees that it will not commence or consent to the events specified in clause
(c) without the prior written consent of the Issuer.

       No resignation or removal of the Issuer Administrator pursuant to this Section shall be
effective until (i) a successor Issuer Administrator shall have been appointed by the Issuer (with
the consent of the Delaware Trustee and the Eligible Lender Trustee); (ii) such successor Issuer
Administrator shall have a net worth of at least $5,000,000 and shall have agreed in writing to be
bound by the terms of this Agreement in the same manner as the Issuer Administrator is bound
hereunder and (iii) a Rating Agency Confirmation is first obtained with respect to such resignation
or removal.

       The appointment of any successor Issuer Administrator shall be effective only if a
Rating Agency Confirmation shall have been obtained with respect to such appointment.

        Section 9. Action Upon Termination, Resignation or Removal. Promptly upon the
effective date of termination of this Agreement pursuant to Section 8 hereof or the resignation or
removal of the Issuer Administrator pursuant to Section 8 hereof, respectively, the Issuer
Administrator shall be entitled to be paid all fees and reimbursable expenses accruing to it
to the date of such termination, resignation or removal. The Issuer Administrator shall forthwith
upon such termination deliver to the Issuer all property and documents of or relating to the Trust

					
	 	 	 	 	 
	
	 	15
	 	A/R ADMINISTRATION AGREEMENT

 

 

Estate then in the custody of the Issuer Administrator. In the event of the resignation or removal
of the Issuer Administrator, the Issuer Administrator shall cooperate with the successor Issuer
Administrator and take all reasonable steps requested to assist the Issuer in making an orderly
transfer of the duties of the Issuer Administrator.

     Section 10. Notices. Any notice, report or other communication given hereunder shall
be in writing and addressed as follows:

     If to the Issuer Administrator, to:

Goal Financial, LLC

9477 Waples Street, Suite 100

San Diego, California 92121

Attention: Ryan Katz

     If to the Rating Agencies:

Moody’s Investors Service

99 Church Street

New York, New York 10007

Attention: Sharon Asch

Standard & Poor’s Ratings Services

55 Water Street

New York, New York 10041

     If to the Issuer, to:

Higher Education Funding I

c/o Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: Corporate Trust Administration

     If to the Indenture Trustee or the Eligible Lender Trustee, to:

The Bank of New York

10161 Centurion Parkway, 2nd Floor

Jacksonville, Florida 32256

Attention: Corporate Trust Department

     If to the Delaware Trustee, to:

					
	 	 	 	 	 
	
	 	16
	 	A/R ADMINISTRATION AGREEMENT

 

 

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: Corporate Trust Administration

or to such other address as any party shall have provided to the other parties in writing. Any
notice required to be in writing hereunder shall be deemed given if such notice is mailed by
certified mail, postage prepaid, or hand delivered to the address of such party as provided above.

     Section 11. Amendments. This Agreement may be amended from time to time by written
instrument signed by the parties hereto so long as a Rating Agency Confirmation has been obtained
with respect to such amendment.

     Section 12. Successors and Assigns. This Agreement may not be assigned by the Issuer
Administrator unless such assignment is previously consented to in writing by the Issuer, the
Delaware Trustee, the Holders, the Eligible Lender Trustee and the Indenture Trustee, and unless
(i) each Rating Agency shall have been given sixty (60) days’ prior notice of such assignment and
(ii) a Rating Agency Confirmation has been obtained with respect to such assignment. An assignment
with such consent and satisfaction, if accepted by the assignee, shall bind the assignee hereunder
in the same manner as the Issuer is bound hereunder. Notwithstanding the foregoing, this Agreement
may be assigned by the Issuer Administrator without the consent of the Issuer, the Eligible Lender
Trustee or the Delaware Trustee to a corporation or other organization that is a successor (by
merger, consolidation or purchase of assets) to the Issuer Administrator; provided that such
successor organization executes and delivers to the Issuer, the Eligible Lender Trustee, the
Delaware Trustee and the Issuer Administrator an agreement in which such corporation or other
organization agrees to be bound hereunder by the terms of the assignment in the same manner as the
Issuer Administrator is bound hereunder, and (i) each Rating Agency shall have been given sixty
(60) days’ prior notice of such assignment and (ii) a Rating Agency Confirmation shall have been
obtained with respect to, such assignment. Subject to the foregoing, this Agreement shall bind any
such permitted successors or assigns of the parties hereto.

     Section 13. Governing Law. This Agreement shall be construed in accordance with the
laws of the State of New York, without references to its conflict of law provisions, and the
obligations, rights and remedies of the parties hereunder shall be determined in accordance with
such laws.

     Section 14. Headings. The section headings hereof have been inserted for convenience
of reference only and shall not be construed to affect the meaning, construction or effect of this
Agreement.

     Section 15. Counterparts. This Agreement may be executed in counterparts, each of
which when so executed shall together constitute but one and the same agreement.

     Section 16. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall be ineffective to the extent of such prohibition or

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

     Section 17. Indemnity.

     (a) The Issuer and the Indenture Trustee, but only to the extent of the assets in the Trust
Estate and without personal recourse to them, agrees that it shall pay and shall protect, indemnify
and save harmless the Issuer Administrator and the Issuer Administrator’s directors, officers,
employees, agents and servants, and all Persons controlling, controlled by or under common control
or otherwise affiliated with the Issuer Administrator (each of the foregoing an “Indemnified
Person”) from and against any and all losses, liabilities (including liabilities for penalties),
actions, suits, judgments, demands, damages, costs and expenses (including, without limitation,
fees and expenses of counsel) of any nature (including, without limitation, under any federal,
state or foreign securities laws, rules or regulations) arising from or relating to this Agreement
and the transactions contemplated hereby or by any of the agreements, instruments or documents to
which the Issuer Administrator may be a party, whether now existing or hereinafter arising (all of
the foregoing being collectively referred to as “Indemnified Amounts”); excluding, however,
Indemnified Amounts resulting from the negligence or misconduct of the Issuer Administrator in
performing its obligations under this Agreement. If any action, suit or proceeding arising from
any of the foregoing is brought against any Indemnified Person, the Issuer and the Indenture
Trustee, but only to the extent of the assets of the Indenture Trust available therefor and without
personal recourse, will resist and defend such action, suit or proceeding or cause the same to be
resisted and defended by its counsel (which counsel shall be reasonably satisfactory to the
affected Indemnified Person or Persons) and shall pay all costs of defense as incurred unless it is
finally determined by a court of competent jurisdiction that such Indemnified Person is not
entitled to indemnification hereunder.

     (b) The Issuer Administrator agrees that it shall pay and shall protect, indemnify and save
harmless the Issuer, Delaware Trustee, Indenture Trustee and Eligible Lender Trustee and
their directors, officers, employees, agents and servants, and all Persons controlling, controlled
by or under common control or otherwise affiliated with them (each of the foregoing an “Indemnified
Person”) from and against any and all losses, liabilities (including liabilities for penalties),
actions, suits, judgments, demands, damages, costs and expenses (including, without limitation,
fees and expenses of counsel) of any nature (including, without limitation, under any federal,
state or foreign securities laws, rules or regulations) arising from or relating to this Agreement
and the transactions contemplated hereby or by any of the agreements, instruments or documents to
which the Issuer Administrator may be a party, whether now existing or hereinafter arising (all of
the foregoing being collectively referred to as “Indemnified Amounts”); excluding, however,
Indemnified Amounts resulting from the negligence or misconduct of the Indemnified Persons in
performing their obligations under this Agreement. If any action, suit or proceeding arising from
any of the foregoing is brought against any Indemnified Person, the Issuer will resist and defend
such action, suit or proceeding or cause the same to be resisted and defended by its counsel (which
counsel shall be reasonably satisfactory to the affected Indemnified Person or Persons) and shall
pay all costs

					
	 	 	 	 	 
	
	 	18
	 	A/R ADMINISTRATION AGREEMENT

 

 

of defense as incurred unless it is finally determined by a court of competent jurisdiction
that such Indemnified Person is not entitled to indemnification hereunder.

     (c) This Section 17 shall survive the termination of this Agreement.

     Section 18. Limitation of Liability of Eligible Lender Trustee and Delaware Trustee.
Notwithstanding anything contained herein to the contrary, this instrument has been executed by
each of Wilmington Trust Company and The Bank of New York, not in its individual capacity but
solely in its capacity as Delaware Trustee or Eligible Lender Trustee, as applicable, and in no
event shall Wilmington Trust Company or The Bank of New York in its individual capacity or any
beneficial owner of the Issuer have any liability for the representations, warranties, covenants,
agreements or other obligations of the Issuer hereunder, as to all of which recourse shall be had
solely to the assets of the Issuer.

     Section 19. Third-Party Beneficiary. The parties agree and acknowledge that the
Eligible Lender Trustee and the Delaware Trustee are third-party beneficiaries of this Agreement.

     Section 20. No Petition. The parties hereto will not at any time institute against the
Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding under any
United States federal or state bankruptcy or similar law in connection with any obligations of the
Issuer under any Basic Document as such term is defined in the Indenture. The obligations of this
Section 20 shall survive termination of this Agreement.

					
	 	 	 	 	 
	
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     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
delivered as of the day and year first above written.

	 	 	 	 	 
	 	 	HIGHER EDUCATION FUNDING I
	

	 	By:
	 	WILMINGTON TRUST COMPANY,
	

	 	 	 	not in its individual capacity but solely as
	

	 	 	 	Delaware Trustee
	 
	 	 	 	 
	

	 	By:
	 	/s/ Janel R. Havrilla
	

	 	 	 	 
	

	 	Name:
	 	Janel R. Havrilla
	

	 	 	 	 
	

	 	Title:
	 	Financial Services Officer
	

	 	 	 	 

					
	 	 	 	 	 
	
	 	1
	 	A/R ADMINISTRATION AGREEMENT

 

 

	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY, not in its individual
	 	 	capacity but solely as Delaware Trustee
	 
	 	 	 	 
	

	 	By:
	 	/s/ Janel R. Havrilla
	

	 	 	 	 
	

	 	Name:
	 	Janel R. Havrilla
	

	 	 	 	 
	

	 	Title:
	 	Financial Services Officer
	

	 	 	 	 

					
	 	 	 	 	 
	
	 	S-1
	 	A/R ADMINISTRATION AGREEMENT

 

 

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, not in its individual
	 	 	capacity but solely as Eligible Lender Trustee
	 
	 	 	 	 
	

	 	By:
	 	/s/ William Cardozo
	

	 	 	 	 
	

	 	Name:
	 	William Cardozo
	

	 	 	 	 
	

	 	Title:
	 	Agent
	

	 	 	 	 

					
	 	 	 	 	 
	
	 	S-2
	 	A/R ADMINISTRATION AGREEMENT

 

 

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Indenture Trustee
	 
	 	 	 	 
	

	 	By:
	 	/s/ William Cardozo
	

	 	 	 	 
	

	 	Name:
	 	William Cardozo
	

	 	 	 	 
	

	 	Title:
	 	Agent
	

	 	 	 	 

					
	 	 	 	 	 
	
	 	S-3
	 	A/R ADMINISTRATION AGREEMENT

 

 

	 	 	 	 	 
	 	 	GOAL FINANCIAL, LLC
	 
	 	 	 	 
	

	 	By:
	 	/s/ Seamus Garland
	

	 	 	 	 
	

	 	Name:
	 	Seamus Garland
	

	 	 	 	 
	

	 	Title:
	 	Secretary
	

	 	 	 	 

					
	 	 	 	 	 
	
	 	S-4
	 	A/R ADMINISTRATION AGREEMENT

 

 

EXHIBIT A

POWER OF ATTORNEY

	 	 	 
	STATE OF DELAWARE
	 	)
	 
	 	)
	COUNTY OF NEW CASTLE
	 	)

     KNOW ALL MEN BY THESE PRESENTS, that Higher Education Funding I (the “Issuer”), in connection
with the Amended and Restated Administration Agreement, dated as of March 1, 2005 (as the same may
be amended from time to time, the “Agreement”), among the Issuer, Indenture Trustee, Delaware
Trustee, Indenture Trustee and Issuer, as Issuer, does hereby make, constitute and appoint Goal
Financial, LLC, and its agents and attorneys, as Attorney-in-Fact to execute on behalf of the
Issuer all such documents, reports, filings, instruments, certificates and opinions as it shall be
the duty of the Issuer to prepare, file or deliver pursuant to the Trust Related Agreements,
including, without limitation, to appear for and represent the Issuer in connection with the
preparation, filing and audit of federal, state and local tax returns pertaining to the Issuer, and
with full power to perform any and all acts associated with such returns and audits that the Issuer
could perform, including without limitation, the right to distribute and receive confidential
information, defend and assert positions in response to audits, initiate and defend litigation, and
to execute waivers of restrictions on assessments of deficiencies, consents to the extension of any
statutory or regulatory time limit, and settlements.

     All powers of attorney for this purpose heretofore filed or executed by the Issuer are
hereby revoked.

     Capitalized terms that are used and not otherwise defined herein shall have the
meanings ascribed thereto in the Agreement.

     EXECUTED as of this 1st day of March, 2005.

	 	 	 	 	 	 	 	 	 
	 	 	HIGHER EDUCATION FUNDING I
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	WILMINGTON TRUST COMPANY,
	 	 	 	 	 	 	not in its individual capacity
	 	 	 	 	 	 	but solely as Delaware Trustee
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 

 

 

EXHIBIT B

MONTHLY MONITORING REPORT

[See Section 1(h)(11)]

[Provided separately]exv10w11

 

Exhibit 10.11

AMENDED AND RESTATED

LOAN PURCHASE AGREEMENT

     This Amended and Restated Loan Purchase Agreement is made and entered into as of the 1st day
of March, 2005 by and among CONSOLIDATION LOAN FUNDING, LLC, as seller (“Seller”), HIGHER EDUCATION
FUNDING I, a Delaware statutory trust, as purchaser (“Purchaser”), THE BANK OF NEW YORK TRUST
COMPANY, N.A., not in its individual capacity but as eligible lender trustee for Seller (in such
capacity, “Seller ELT”), and THE BANK OF NEW YORK, not in its individual capacity but as eligible
lender trustee for Purchaser (in such capacity, “Purchaser ELT”).

WITNESSETH:

     WHEREAS, Seller, through its eligible lender trustee, is engaged in a program of originating,
funding, purchasing, holding and selling Eligible Loans;

     WHEREAS, Purchaser, through its eligible lender trustee, is engaged in a program of
purchasing, holding and selling Eligible Loans;

     WHEREAS, Seller, through its eligible lender trustee, desires to sell to Purchaser, through
its eligible lender trustee, certain Eligible Loans in accordance with the terms and conditions of
this Agreement;

     WHEREAS, Seller ELT holds legal title to, and serves as eligible lender trustee with respect
to, Eligible Loans on behalf of Seller;

     WHEREAS, Purchaser ELT holds legal title to, and serves as eligible lender trustee with
respect to, Eligible Loans on behalf of Purchaser;

     WHEREAS, Seller and Purchaser are parties to the Loan Purchase Agreement dated as of January
1, 2004 (the “Original Agreement”); and

     WHEREAS, the parties hereto desire to amend and restate the Original Agreement.

     NOW, THEREFORE, in consideration of the foregoing premises and mutual covenants herein
contained, the parties agree to amend and restate the Original Agreement as follows:

ARTICLE I

DEFINITIONS

     Unless the context otherwise requires, capitalized terms defined in the Indenture of Trust and
used but not defined in this Agreement shall have the meanings set forth in the Indenture of Trust.
The following words and terms used in this Agreement shall have the following meanings unless
otherwise provided herein or unless the context or use clearly indicates another or different
meaning or intent:

     “Act” shall mean Title IV, Part B of the Higher Education Act of 1965 (20 USC § 1071
et. seq.), and includes insofar as the context requires Title VII of the Public Health Service Act

 

 

(42 USC. §292 et seq.), as either is amended and in effect from time to time, or any successor
enactment thereto, the effective administrative regulations promulgated thereunder, and any binding
directives issued by the Secretary pursuant thereto.

     “Agreement” shall mean this Amended and Restated Loan Purchase Agreement, including all
exhibits attached hereto, and any supplements or amendments hereto.

     “Certificate of Insurance” shall mean a certificate of federal loan insurance issued with
respect to an Eligible Loan by the Secretary pursuant to the Act.

     “Commitment” shall mean Seller’s commitment to sell Eligible Loans to Purchaser pursuant to
Section 2.1 hereof.

     “Contract of Insurance” shall mean a contract of insurance under the Act between the Secretary
and the Eligible Lender Trustee for the benefit of the Seller or the Secretary and the Eligible
Lender Trustee for the benefit of the Purchaser, providing for the Insurance of Student Loans.

     “Eligible Lender Trust Agreement” means (i) the Eligible Lender Trust Agreement, dated as of
January 1, 2004, between the Purchaser and the Eligible Lender Trustee, as trustee, and any similar
agreement entered into by the Purchaser and an “eligible lender” under the Higher Education Act
pursuant to which such “eligible lender” holds Student Loans as legal owner in trust for the
Purchaser as beneficial owner, in each case as supplemented or amended from time to time; or (ii)
the First Amended and Restated Eligible Lender Trust Agreement, dated as of February 1, 2003
between the Seller and the Eligible Lender Trustee, as trustee, and any similar agreement entered
into by the Seller and an “eligible lender” under the Higher Education Act pursuant to which such
“eligible lender” holds Student Loans as legal owner in trust for the Seller as beneficial owner,
in each case as supplemented or amended from time to time; as is applicable.

     “Eligible Lender Trustee” means, for Seller, Seller ELT, as trustee under the applicable
Eligible Lender Trust Agreement, and its successors and assigns in such capacity and, for
Purchaser, Purchaser ELT as trustee under the applicable Eligible Lender Trust Agreement, and its
successors and assigns in such capacity.

     “Indenture of Trust” means the Amended and Restated Indenture of Trust, dated as of March 1,
2005, among Purchaser, The Bank of New York, as Eligible Lender Trustee, and The Bank of New York,
as Trustee, as the same may be amended or supplemented from time to time.

     “Insurance” or “Insured” or “Insure” shall mean, with respect to a Student Loan, the insurance
by the Secretary under the Act (as evidenced by a Contract of Insurance issued or entered into
under the provisions of the Act) of the maximum percentage of the principal of and accrued interest
on such Student Loan allowed under the Act with respect to such Student Loan.

     “Insured Loan” shall mean a Student Loan which is Insured.

     “Loan Transfer Addendum” shall mean a loan transfer addendum substantially in the form set
forth as Exhibit A attached hereto and incorporated herein by this reference.

2

 

     “Original Agreement” is defined in the recitals.

     “Portfolio” shall mean a group of Eligible Loans sold pursuant to Section 2.1 hereof on a
Scheduled Sale Date.

     “Principal Balance” shall mean the original principal amount of a Student Loan,
plus  capitalized interest (if any) and items which may not be guaranteed or
insured (such as late charges), less  payments by or on behalf of the Student
Borrower.

     “Purchase Price” shall mean the price as set forth in the Loan Transfer Addendum.

     “Purchaser” is defined in the preamble.

     “Purchaser ELT” is defined in the preamble.

     “Scheduled Sale Date” shall mean any date designated as such in a communication delivered
pursuant to Section 4.3(a) of this Agreement and in an applicable Loan Transfer Addendum for
purchase of a Portfolio of Eligible Loans pursuant to this Agreement, unless such date is changed
by mutual agreement of the parties, in which case Scheduled Sale Date shall be any new date so
agreed to by the parties.

     “Secretary” shall mean the Secretary of the United States Department of Education or any
successor to the pertinent functions of that official or department under the Act, or, when the
context so requires, the former Commissioner of Education of the former United States Department of
Health, Education and Welfare and includes the Secretary of the United States Department of Health
and Human Services.

     “Seller” is defined in the preamble.

     “Seller ELT” is defined in the preamble.

     “Student Borrower” shall mean the obligor on a Student Loan.

ARTICLE II

LOAN SALE COMMITMENT

     2.1 Loan Sale Commitment. Subject to the terms and conditions of this Agreement, and
in express reliance upon the representations, warranties and covenants set forth herein, Seller
(and, with respect to legal title thereto, Seller ELT on behalf of Seller ) agrees to
sell, and Purchaser (and, with respect to legal title thereto, Purchaser ELT on behalf of
Purchaser) agrees to purchase, on the applicable Scheduled Sale Date all Student Loans identified
in the loan transfer schedule attached to the applicable Loan Transfer Addendum to the extent such
Student Loans meet all eligibility requirements and to the extent the Purchaser has the funds
available to purchase such Student Loans.

3

 

ARTICLE III

SERVICING

     3.1 Servicing of Other Eligible Loans. All of the Eligible Loans that are sold
pursuant to Section 2.1 hereof are currently serviced (or will be serviced on the Scheduled Sale
Date) by the Servicer(s) identified in the Loan Transfer Addendum. Such Servicer shall either be
Great Lakes Educational Loan Services, Inc., ACS Education Services Inc. or another servicer with
whom Purchaser has a servicing agreement that is satisfactory to (i) The Bank of New York or its
successor as Trustee under the Indenture of Trust and (ii) The Bank of New York or its successor as
Purchaser ELT. On the effective date for the sale of those Eligible Loans, Purchaser shall cause
the current servicer(s) or such other servicer(s) as Purchaser may select to commence servicing
such Portfolio at Purchaser’s expense and under the identification number of Purchaser or its
designee.

ARTICLE IV

SALE/PURCHASE OF PORTFOLIOS

     4.1 Tender of Eligible Loans to Purchaser. With respect to a Portfolio of Eligible
Loans to be sold pursuant to Section 2.1 hereof, prior to or on the applicable Scheduled Sale Date
(or at such other time as the parties may agree), Seller shall furnish Purchaser or its designee
with a list of the Eligible Loans to be included in such Portfolio, and shall authorize and direct
the Servicer of the Eligible Loans to release such information and documentation to Purchaser or
its designee, in its reasonable judgment, deems necessary and appropriate to undertake a review of
such loans to determine whether (i) such loans constitute Eligible Loans, and (ii) the Portfolio,
aggregated with the other Eligible Loans that have been sold to Purchaser by Seller if appropriate,
comply with the requirements set forth in Section 3.1 hereof.

     4.2 Conditions of Purchase. Purchaser’s obligation to purchase and pay for a Student
Loan in a Portfolio hereunder shall be subject to the following conditions precedent:

          (a) the Eligible Loans in the Portfolio, aggregated with the other Eligible Loans that
have been sold to Purchaser by Seller if appropriate, shall meet the requirements described
in Section 3.1 hereof;

          (b) all representations, warranties and statements by or on behalf of Seller contained
in this Agreement with respect to such Student Loan are true on the Scheduled Sale Date
relating to such Student Loan;

          (c) any notification to or approval by the Secretary or Guarantee Agency required by
the Act or the Guarantee Agreement as a condition to the assignment of such Student Loan
shall have been made or received and evidence thereof delivered to both Purchaser and
Purchaser ELT;

          (d) without a prior Rating Agency Confirmation, all Student Loans purchased pursuant to
this Agreement shall have been originated by Great Lakes Educational Loan Services, Inc. or
ACS Education Services, Inc.; and

4

 

          (e) the entire interest of Seller in such Student Loan shall have been duly assigned by
endorsement, such endorsement to be without recourse except as provided in Article V hereof.

     4.3 Consummation of Sale and Purchase of Portfolio. To consummate the sale and
purchase of a Portfolio of Eligible Loans, on or before the applicable Scheduled Sale Date, Seller
shall deliver via facsimile to Purchaser ELT a Loan Transfer Addendum, the Seller’s Closing
Certificate, a form of which is attached as Exhibit B, and such instruments of transfer, including
a bill of sale, a form of which is attached as Exhibit D, and blanket endorsement, a form of which
is attached as Exhibit C, as Purchaser shall reasonably deem necessary for conveyance of title of
the Eligible Loans contained in the Portfolio free and clear of all liens, encumbrances and
security interests. Seller shall retain all ownership rights with respect to Eligible Loans in a
Portfolio at all times prior to the effective sale of such Portfolio. Purchaser shall pay for any
reasonable transfer fees as may be required to be paid to the Secretary or to the Servicer.

          (a) On each Scheduled Sale Date, Seller shall arrange for the Servicer of the Eligible
Loans to notify the Eligible Lender Trustees via facsimile, by no later than 12:00 noon EST
or EDT, as is applicable, that (i) such day is a Scheduled Sale Date and (ii) the dollar
amount of the Eligible Loans which are going to be disbursed by the Servicer on such
Scheduled Sale Date. Seller shall also arrange for the Servicer of the Eligible Loans to
email to the Seller, the Issuer Administrator and Purchaser ELT a detailed roster of the
Eligible Loans that were so disbursed.

          (b) By 12:00 noon EST or EDT, as is applicable, on such Scheduled Sale Date, Seller
shall deliver to Purchaser ELT a Loan Transfer Addendum.

          (c) On such Scheduled Sale Date, after receipt of the aforesaid Loan Transfer Addendum
and the documentation required to be provided by this Section, Purchaser shall arrange for a
transfer into an Account or Accounts maintained at The Bank of New York, designated by
Seller and satisfactory to Purchaser, or wire transfer as directed by the Purchaser, the
amount necessary for the purchase of the Eligible Loans. The purchase and sale of the
Portfolio shall be effective simultaneously with the payment of the Purchase Price.

     4.4 Other Information and Documents. Seller shall furnish or make available to
Purchaser such additional information concerning Seller’s Student Loan portfolio as Purchaser may
reasonably request. Seller and Seller ELT shall execute all other documents and take all other
steps as may be reasonably requested by Purchaser or Purchaser ELT from time to time to effect the
sale hereunder of a Portfolio of Eligible Loans.

ARTICLE V

REPURCHASE OBLIGATION OF SELLER

     5.1 Conditions Precedent to Repurchase Obligation. At the request of Purchaser or its
Eligible Lender Trustee, Seller shall repurchase any Student Loan purchased by Purchaser pursuant
to this Agreement if:

5

 

          (a) any representation or warranty made or furnished by Seller in or pursuant to this
Agreement with respect to such Student Loan shall prove to have been materially incorrect as
to such Student Loan, unless resulting from an act or omission of Purchaser;

          (b) the Secretary or a Guarantee Agency, as the case may be, refuses to honor all or
part of a claim filed with respect to such Student Loan (including any claim for interest
subsidy, Special Allowance Payments, Insurance, reinsurance or Guarantee payments) on
account of any circumstance or event that occurred prior to the sale of such Student Loan to
Purchaser, unless resulting from an act or omission of Purchaser; or

          (c) On account of any wrongful or negligent act or omission of Seller or its servicing
agent that occurred prior to the sale of such Student Loan to Purchaser, a defense is
asserted by a maker (or endorser, if any) of such Student Loan with respect to his or her
obligation to pay all or any part of such Student Loan, and Purchaser or Purchaser ELT in
good faith believes that the facts reported, if true, raise a reasonable doubt as to the
enforceability of such Student Loan.

     5.2 Repurchase by Seller. Upon the occurrence of any of the conditions set forth in
Section 5.1 hereof with respect to a Student Loan and upon the request of Purchaser or
Purchaser ELT, Seller shall pay to Purchaser ELT, for the account of Purchaser, an amount equal to
the then-outstanding principal balance of such Student Loan, plus any premium in excess of par paid
as part of the Purchase Price with respect to such Student Loan, plus interest and Special
Allowance Payments accrued and unpaid with respect to such Student Loan from the applicable
Scheduled Sale Date to and including the date of repurchase, plus any attorneys’ fees, legal
expenses, court costs, servicing fees or other expenses incurred by Purchaser, Purchaser ELT or the
appropriate successors or assigns in connection with such Student Loans. Upon payment of such
amount, Purchaser and Purchaser ELT shall take all necessary action to release and re-convey to
Seller (and Seller ELT) all of their respective interests in such Student Loan free and clear of
any lien or security interest created by Purchaser or Purchaser ELT.

ARTICLE VI

ONGOING OBLIGATIONS OF SELLER

     6.1 Obligation of Seller to Forward Payments. Seller shall promptly remit, or cause
to be remitted, to Purchaser ELT as it may direct, all funds received by Seller after the Scheduled
Sale Date for a Student Loan sold pursuant to this Agreement which constitute payments of
principal, or interest or Special Allowance Payments accrued after such Scheduled Sale Date with
respect to such Student Loan.

     6.2 Obligation of Seller to Forward Communications. Seller shall immediately transmit
to Purchaser any communication received by Seller after the Scheduled Sale Date with respect to a
Student Loan or the borrower under such a Student Loan. Such communication shall include, but not
be limited to, letters, notices of death or disability, adjudication of bankruptcy and similar
documents and forms requesting deferment of repayment or loan cancellations.

     6.3 Notification to Student Borrowers. Seller and Purchaser shall cause the Servicers
to provide each borrower under the Eligible Loans purchased under this Agreement with notice

6

 

of the assignment and transfer to Purchaser ELT for the account and on behalf of Purchaser of
Seller’s interest in such Eligible Loans as required by the Act.

     6.4 No Modification of Lender Agreements. Seller will consent to no amendments to, or
modifications of, the Contract of Insurance or Guarantee Agreement that may affect Eligible Loans
which are sold or listed on a Loan Transfer Addendum for sale pursuant to this Agreement without
(i) the prior written consent of Purchaser, which consent shall not be unreasonably withheld, and
(ii) Rating Agency Confirmation. Amendments or modifications required by the Act are excluded from
the requirement of this Section 6.4.

ARTICLE VII

REPRESENTATIONS, WARRANTIES AND COVENANTS

     7.1 Representations. Warranties and Covenants of Seller. Seller hereby represents,
covenants, and warrants to Purchaser that:

          (a) Organization and Authority of Seller. Seller is duly organized, validly
existing and in good standing under the laws of the State of Delaware, and has all necessary
statutory power and authority to own its assets and carry on its business as now being
conducted; Seller has, and its officers and Seller ELT acting on its behalf have, all
necessary statutory power and authority to make and perform this Agreement, and has the
power and authority to sell, assign and transfer Student Loans to Purchaser and Purchaser
ELT, and to repurchase Student Loans as required under the terms hereof.

          (b) Eligible Lender Status. Seller ELT, if applicable, is an “eligible lender”
under the Act.

          (c) Legal and Binding Obligation. The execution, delivery and performance of
this Agreement by Seller have been duly authorized by all necessary corporate action, and do
not require any stockholder approval or approval or consent of, or notice to, any trustee or
holders of indebtedness or obligations of Seller; upon due execution and delivery by the
parties hereto, this Agreement will constitute the legal, valid and binding obligation of
Seller, enforceable in accordance with its terms.

          (d) No Conflicts. Neither the execution, delivery or performance by Seller of
this Agreement, nor the consummation or performance by Seller of the transactions
contemplated hereby, will conflict with, result in a violation of, or constitute a default
(or an event which could constitute a default with the passage of time or notice or both)
under, (i) any of the terms of Seller’s charter or bylaws, or (ii) any indenture, mortgage,
contract or other agreement to which Seller is a party or by which it or its properties are
bound, or any law or regulation by which it or its properties are bound, where, in the case
of this clause (ii), such conflict, violation or default could have a material adverse
effect on Seller’s ability for perform its obligations hereunder. Seller is not a party to
or bound by any agreement or instrument or subject to any charter or other corporate
restrictions or judgment, order, writ, injunction, decree, law, rule or regulation which may
materially and adversely affect the ability of Seller to perform its obligations under this
Agreement.

7

 

          (e) No Defaults or Violations. Seller is not in default under any mortgage,
deed of trust, indenture or other instrument or agreement to which Seller is a party or by
which it or its properties are bound, or in violation of any law or regulation, which
default or violation could have a material adverse effect on Seller’s ability for perform
its obligations hereunder.

          (f) No Consents. No consent, approval or authorization of any government or
governmental body, including (without limitation) the Office of Thrift Supervision, the
Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System or any state bank regulatory agency, is required in
connection with the execution, delivery and performance of this Agreement, or the
consummation of the transactions contemplated hereby.

          (g) No Litigation. There are no pending or threatened actions or proceedings
by or before any court, administrative agency or arbitrator, that could if adversely
determined, materially and adversely affect the ability of Seller to perform its obligations
hereunder, and there are no presently existing orders of any court, administrative agency or
arbitrator that could have a material and adverse effect on the ability of Seller to perform
its obligations hereunder.

          (h) Continuing Obligations of Seller. Seller agrees that during the term of
this Agreement, it will (i) remain in good standing and qualified to do business under the
laws of the State of Delaware and the jurisdictions in which it operates, (ii) conduct its
business in accordance with all applicable state and federal laws, and (iii) continue to be
qualified to carry out this Agreement.

     7.2 Representations, Warranties and Covenants of Seller with Respect to Student Loans.
Seller hereby represents, covenants, and warrants to Purchaser with respect to each Student Loan
to be sold hereunder that, except for any condition resulting from an act or omission of Purchaser,
as of the Scheduled Sale Date for such Student Loan:

          (a) Accuracy of Information. Any information furnished by Seller to Purchaser
or its agents with respect to such Student Loan is true, complete and correct.

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

          (c) No Defenses Against Repayment of Loans. The amount of the unpaid principal
balance of such Student Loan is true and owing, and no counterclaim, offset, defense or
right to rescission exists with respect to such Student Loan which can be asserted and
maintained or which, with notice, lapse of time, or the occurrence or failure to occur of
any act or event, could be asserted and maintained by the borrower against the Eligible
Lender Trustee as assignee thereof. Seller shall take all reasonable actions to assure that
no maker of such Student Loan has or may acquire a defense to the payment thereof. The rate
of interest carried by such Student Loan is the maximum which was allowable by law at the
time the loan was made, and such Student Loan does not carry a

8

 

rate of interest in excess of that permitted by the provisions of the Act or such other
rate as was applicable under a borrower’s benefit program.

          (d) Ownership and Location of Loans: Existence of Liens. Seller is the sole
owner and holder of title to such Student Loan and has full right and authority to sell and
assign the same free and clear of all liens, pledges or encumbrances, and upon the
endorsement and delivery of promissory notes evidencing such Student Loan to Eligible Lender
Trustee on behalf of Purchaser pursuant to this Agreement, Eligible Lender Trustee on behalf
of Purchaser will acquire full right, title and interest in such Student Loan free and clear
of all liens, pledges or encumbrances whatsoever. All documentation relating to such Student
Loan, including the original promissory note for such Student Loan, is now in the possession
of the servicer thereof.

          (e) Guarantee and Insurance on Loans. Such Student Loan is either Insured or
Guaranteed. If such Student Loan is an Insured Loan, a Contract of Insurance is in full
force and effect with respect thereto, the applicable Certificates of Insurance are valid
and binding upon the parties thereto in all respects, Seller is not in default in the
performance of any of its covenants and agreements made in respect thereof, and such
Insurance is freely transferable as an incident to the sale of such Student Loan. With
respect to all Guaranteed Loans being acquired, a Guarantee Agreement is in full force and
effect with respect thereto and is valid and binding upon the parties thereto in all
material respects, Seller is not in default in the performance of any of its covenants and
agreements made in such Guarantee Agreement, and such Guarantee is freely transferable as an
incident to the sale of such Student Loan. All amounts due and payable to the Secretary or
the Guarantee Agency, as the case may be, have been or will be paid in full by Seller at the
time such Student Loan is sold to Purchaser, and such Student Loan has not at any time been
tendered to either the Secretary or the Guarantee Agency for payment. Seller will not, with
respect to such Student Loan, agree to release the Guarantee Agency or the Secretary from
any of its contractual obligations to Guarantee or Insure such loan, or agree to otherwise
alter, amend or renegotiate any terms or conditions under which such Student Loan is
Guaranteed or Insured, without the express prior written consent of Purchaser and the
Eligible Lender Trustee.

          (f) Compliance with the Act. Such Student Loan complies in all respects with
the requirements of the Act and is an Eligible Loan.

          (g) Compliance with Federal Laws. Such Student Loan was made in compliance
with all applicable local, state and federal laws, rules and regulations, including without
limitation all applicable nondiscrimination, truth-in-lending, consumer credit and usury
laws and is an Eligible Loan.

          (h) No Discrimination. In making such Student Loan, Seller has not
discriminated based upon the educational institutions attended by, or the age, sex, race,
national origin, color, religion, handicapped status, income, attendance at a particular
eligible institution within the area served by Purchaser, length of the Student Borrower’s
educational program, or the Student Borrower’s academic year in school.

9

 

          (i) Due Diligence in Servicing Loans. Seller and any independent servicer have
each exercised and shall continue until the Scheduled Sale Date for such Student Loan to
exercise due diligence and reasonable care in making, administering, servicing and
collecting such Student Loan and Seller has conducted a reasonable investigation of
sufficient scope and content to enable it duly to make the representations and warranties
contained in this Agreement. Seller shall be solely responsible for the payment of the
costs and expenses incident to origination of such Student Loan, without any right of
reimbursement therefor from Purchaser.

          (j) Origination Fees. Seller has reported or shall report the amount of
origination fees (if any) authorized to be collected with respect to such Student Loan
pursuant to the Act to the Secretary for the period in which such fee was authorized to be
collected; and Seller has made and shall make any refund of an origination fee collected in
connection with such Student Loan which may be required pursuant to the Act.

          (k) Insurance Premium. For such Student Loan Seller has reported or shall
report the amount of the insurance premium authorized to be collected, and has paid or shall
pay said premium to the Guarantee Agency or the Secretary with all rights therein inuring to
Purchaser; and in the event that on or prior to the Scheduled Sale Date for such Student
Loan the applicable Student Borrower withdraws within the period specified as qualifying for
a cancellation refund by the Guarantee Agency, Seller agrees to pay the amount of the
premium to be refunded to Purchaser.

     7.3 Representations Warranties and Covenants of Purchaser. Purchaser hereby
represents, covenants, and warrants to Seller that:

          (a) Organization and Authority of Purchaser. Purchaser is a duly organized,
validly existing Delaware statutory trust in good standing under the laws of the State of
Delaware; Purchaser has, and its Eligible Lender Trustee and officers acting on its behalf
have, all necessary statutory power and authority to make and perform this Agreement,
including (without limitation) the power and authority to purchase Student Loans from Seller
under the terms and conditions of this Agreement.

          (b) Legal and Binding Obligation. The execution, delivery and performance of
this Agreement by Purchaser have been duly authorized by all necessary action, and do not
require any member approval or approval or consent of, or notice to, any trustee or holders
of indebtedness or obligations of Purchaser; upon due execution and delivery by the parties
hereto, this Agreement will constitute the legal, valid and binding obligation of Purchaser,
enforceable in accordance with its terms.

          (c) No Conflict. Neither the execution, delivery and performance by Purchaser
of this Agreement, nor the consummation or performance by Purchaser of the transactions
contemplated hereby, will conflict with, result in a violation of, or constitute a default
(or an event which could constitute a default with the passage of time or notice or both)
under, (i) any of the terms of Purchaser’s organizational documents, or (ii) any indenture,
mortgage, contract or other agreement to which Purchaser is a party or by which it or its
properties are bound, or any law or regulation by which it or its properties

10

 

are bound, where, in the case of this clause (ii), such conflict, violation or default
could have a material adverse effect on Purchaser’s ability for perform its obligations
hereunder. Purchaser is not a party to or bound by any agreement or instrument or subject to
any charter or other corporate restrictions or judgment, order, writ, injunction, decree,
law, rule or regulation which may materially and adversely affect the ability of Purchaser
to perform its obligations under this Agreement.

          (d) No Defaults or Violations. Purchaser is not in default under any mortgage,
deed of trust, indenture or other instrument or agreement to which Purchaser is a party or
by which it or its properties are bound, or in violation of any law or regulation, which
default or violation could have a material adverse effect on Purchaser’s ability for perform
its obligations hereunder.

          (e) No Consents. No consent, approval or authorization of any government or
governmental body is required in connection with the execution, delivery and performance of
this Agreement, or the consummation of the transactions contemplated hereby.

          (f) No Litigation. There are no pending or threatened actions or proceedings
by or before any court, administrative agency or arbitrator, that could if adversely
determined, materially and adversely affect the ability of Purchaser to perform its
obligations hereunder, and there are no presently existing orders of any court,
administrative agency or arbitrator that could have a material and adverse affect on the
ability of Purchaser to perform its obligations hereunder.

          (g) Continuing Obligation of Purchaser. Purchaser agrees that during the term
of this Agreement, it will (i) remain in good standing and qualified to do business under
the laws of the state of its organization and any other jurisdictions in which it operates,
(ii) conduct its business in accordance with all applicable state and federal laws, and
(iii) continue to be qualified to carry out this Agreement.

     7.4 Representations Warranties and Covenants with Respect to Eligible Lender Trustees.
Seller and Purchaser hereby represent, covenant and warrant that if and to the extent that they
are acting via Eligible Lender Trustees, then each such Eligible Lender Trustee has no personal
liability for any representation, covenant, warranty or other obligation undertaken in this
Agreement and that such Eligible Lender Trustee acts only for the Seller or Purchaser (as
applicable) and that recourse (if any) may be had only against such Seller or Purchaser and not
against such Eligible Lender Trustee or its separate assets. Each Eligible Lender Trustee shall be
a third-party beneficiary of this Section 7.4.

ARTICLE VIII

MISCELLANEOUS

     8.1 Communications and Notices. Unless otherwise expressly provided herein, all
notices, requests, demands or other instruments which may or are required to be given by either
party to the other or to the Eligible Lender Trustee, shall be in writing, and each shall be deemed
to have been properly given when served personally on an officer of the party to whom such

11

 

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 to Seller:
	 
	 	 	 	 
	

	 	 	 	Consolidation Loan Funding, LLC
	

	 	 	 	c/o CLF Management Corp., Manager
	

	 	 	 	Attn: Mr. Ryan D. Katz, President
	

	 	 	 	9477 Waples Street, Suite 100
	

	 	 	 	San Diego, CA 92121
	

	 	 	 	Facsimile: (858) 909-0284
	

	 	 	 	e-mail: rkatz@goalfinancial.net
	 
	 	 	 	 
	

	 	 	 	with a copy to Seller ELT
	 
	 	 	 	 
	 	 	If to Seller ELT:
	 
	 	 	 	 
	

	 	 	 	The Bank of New York Trust Company, N.A.,
	

	 	 	 	as Seller’s Eligible Lender Trustee
	

	 	 	 	Attn: Corporate Trust Manager
	

	 	 	 	10161 Centurion Parkway, 2nd Floor
	

	 	 	 	Jacksonville, Florida 32256
	

	 	 	 	Facsimile: (904) 645-1931
	

	 	 	 	e-mail: wcardozo@bankofny.com
	 
	 	 	 	 
	 	 	If to Purchaser:
	 
	 	 	 	 
	

	 	 	 	Higher Education Funding I
	

	 	 	 	c/o Goal Financial, LLC,
	

	 	 	 	      as Issuer Administrator
	

	 	 	 	Attention: Mr. Ryan D. Katz
	

	 	 	 	9477 Waples Street, Suite 100
	

	 	 	 	San Diego, CA 92121
	

	 	 	 	Facsimile: (858) 909-0284
	

	 	 	 	e-mail: rkatz@goalfinancial.net
	 
	 	 	 	 
	

	 	 	 	with a copy to Purchaser ELT

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	 	 	If to Purchaser ELT:
	 
	 	 	 	 
	

	 	 	 	The Bank of New York,
	

	 	 	 	as Purchaser’s Eligible Lender Trustee
	

	 	 	 	Attn: Corporate Trust Manager
	

	 	 	 	10161 Centurion Parkway, 2nd Floor
	

	 	 	 	Jacksonville, Florida 32256
	

	 	 	 	Facsimile: (904) 645-1931
	

	 	 	 	e-mail: wcardozo@bankofny.com
	 
	 	 	 	 
	 	 	If to Issuer Administrator:
	 
	 	 	 	 
	

	 	 	 	Goal Financial, LLC
	

	 	 	 	Attention: Mr. Ryan D. Katz
	

	 	 	 	9477 Waples Street, Suite 100
	

	 	 	 	San Diego, CA 92121
	

	 	 	 	Facsimile: (858) 909-0284
	

	 	 	 	e-mail: rkatz@goalfinancial.net

Any party may change the address and name of the addressee to which subsequent notices are to be
sent to it, by notice to the others given as aforesaid, but any such notice of change, if sent by
mail, shall not be effective until the 5th day after it is mailed.

     8.2 Forms of Instruments, Proceedings. All instruments relating to the sale and
purchase of the Student Loans pursuant to this Agreement, and all proceedings to be taken in
connection with this Agreement and the transactions contemplated herein, shall be in form and
substance mutually satisfactory to Seller and Purchaser and their respective counsel.

     8.3 Payment of Expenses. Each party to this Agreement shall pay its own expenses
incurred in connection with transactions herein contemplated.

     8.4 Non-Business Days. If the date for taking any action required hereunder is not a
Business Day, then such action can be taken, without interest or penalty, on the next succeeding
Business Day, with the same force and effect as if such action was taken on the required date.

     8.5 Amendments, Modifications and Waivers. The provisions of this Agreement cannot be
amended, waived or modified unless such amendment, waiver or modification be in writing and signed
by the parties hereto. Inaction or failure to demand strict performance shall not be deemed a
waiver.

     8.6 Severability. If any provision 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 not have the effect of rendering the provision in question inoperative or
unenforceable in any other situation or of rendering any other provision or provisions herein
contained invalid, inoperative or unenforceable to any extent whatsoever. The invalidity of any

13

 

one or more phrases, sentences, clauses or paragraphs herein contained shall not affect the
remaining portions of this Agreement or any part hereof.

     8.7 Remedies. Unless otherwise expressly provided herein, no remedy by the terms of
this Agreement conferred upon or reserved to Purchaser ELT or Purchaser is intended to be exclusive
of any other remedy, but each and every such remedy shall be cumulative and in addition to every
other remedy given under this Agreement or existing at law or in equity (including, without
limitation, the right to such equitable relief by way of injunction), or statute on or after the
date of this Agreement.

     8.8 Assignment. This Agreement may not be assigned or otherwise transferred, in whole
or in part, by one party without the prior written consent of the other parties, which consent
shall not unreasonably be withheld; provided, however, that this Agreement may be pledged and
assigned by Purchaser and Purchaser ELT without the prior written consent of the parties to the
extent necessary or appropriate to effect the provisions of the Indenture of Trust.

     8.9 Binding Effect. All covenants and agreements herein contained shall extend to and
be obligatory upon all successors of the respective parties hereto.

     8.10 Governing Law. This Agreement shall be construed in accordance with and governed
by the law of the State of New York.

     8.11 Arbitration. All disputes or differences between the parties which arise under
or are related to this Agreement shall be settled by arbitration in New York, New York in
accordance with the Commercial Arbitration Rules of the American Arbitration Association and
judgment upon the award entered by the arbitrators may be entered in any Court having jurisdiction
thereof. The panel of arbitrators, as contemplated in this Article, shall consist of three neutral
arbitrators. The arbitrators shall promptly enter an award which shall do justice between the
parties and the award shall be supported by written opinion. Each party to the arbitration shall
bear its respective costs of arbitration, with the fees and expenses of the arbitrators to be borne
equally by the parties.

     8.12 Entire Agreement. This Agreement embodies and constitutes the entire
understanding between the parties with respect to the transactions contemplated by this Agreement,
and all prior or contemporaneous agreements, understandings, representations and statements between
the parties, written or oral, are merged into and superseded by this Agreement.

     8.13 Counterparts. This Agreement may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the
same instrument.

     8.14 Limited Role of the Delaware Trustee. It is expressly understood and agreed by
the parties hereto that this Loan Purchase Agreement is executed and delivered by Wilmington Trust
Company, not individually or personally but solely as Delaware Trustee of the Purchaser, in the
exercise of the powers and authority conferred and vested in it; (b) each of the representations,
undertakings and agreement herein made on the part of the Purchaser is made and intended not as
personal representations, undertakings and agreements by Wilmington Trust

14

 

Company but is made and intended for the purpose of binding only the Purchaser; (c) nothing
herein contained shall be construed as creating any liability on Wilmington Trust Company,
individually or personally, to perform any covenant either expressed or implied contained herein,
all such liability, if any, being expressly waived by the parties hereto and by any person claiming
by, through or under the parties hereto; and (d) under no circumstances shall Wilmington Trust
Company be personally liable for the payment of any indebtedness or expenses of the Purchaser or be
liable for the breach or failure of any obligations, representation, warranty or covenant made or
undertaken by the Purchaser under this Agreement.

     8.15 True Sale.

          (a) All purchases hereunder shall be made without recourse except as provided in
Article V. Each party hereto intends that the transactions hereunder constitute the sales
of the Student Loans by Seller to Purchaser (and by Seller ELT to Purchaser ELT). No party
hereto intends the transactions contemplated hereby to be, or for any purpose to be
characterized as, a loan from Purchaser to Seller (or from Purchaser ELT to Seller ELT).

          (b) In the event (but only to the extent) that the conveyance of any Student Loan
hereunder is characterized by a court, governmental authority or regulatory body as a loan
rather than a sale, Seller shall be deemed to have granted to Purchaser (and Seller ELT
shall be deemed to have granted to Purchaser ELT), and Seller hereby grants to Purchaser
(and Seller ELT hereby grants to Purchaser ELT), a security interest in all of its right,
title and interest in, to and under such Student Loan. Each of Seller and Seller ELT
authorizes Purchaser and Purchaser ELT to file any and all Uniform Commercial Code financing
statements deemed necessary by Purchaser (or the Issuer Administrator) to perfect the
ownership interests described herein.

     8.16 Effect on Original Agreement As amended and restated hereby, the Original
Agreement is hereby ratified and confirmed in all respects.

15

 

     IN WITNESS WHEREOF, the parties hereto have caused this Loan Purchase Agreement to be duly
executed as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	CONSOLIDATION LOAN FUNDING, LLC, as
	 	 	Seller
	 
	 	 	 	 	 	 
	 	 	By:	 	CLF MANAGEMENT CORP.,
	 	 	 	 	as Manager
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Seamus Garland
	

	 	 	 	 	 	 
	

	 	 	 	Name:
	 	Seamus Garland
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	 Secretary
	

	 	 	 	 	 	 

	S-1	LOAN PURCHASE AGREEMENT

 

	 	 	 	 	 	 	 
	 	 	HIGHER EDUCATION FUNDING I,
	 	 	as Purchaser
	 
	 	 	 	 	 	 
	

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

	 	 	 	By:
	 	/s/ Janel R. Havrilla
	

	 	 	 	 	 	 
	

	 	 	 	Name:
	 	Janel R. Havrilla
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Financial Services Officer
	

	 	 	 	 	 	 

	S-2	LOAN PURCHASE AGREEMENT

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST
	 	 	 	 	COMPANY, N.A.,
	 	 	 	 	not in its individual capacity but as
	 	 	 	 	Eligible Lender Trustee for Seller
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ William Cardozo
	

	 	 	 	 	 	 
	

	 	 	 	Name:
	 	William Cardozo
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Vice President
	

	 	 	 	 	 	 

	S-3	LOAN PURCHASE AGREEMENT

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,
	 	 	 	 	not in its individual capacity but as
	 	 	 	 	Eligible Lender Trustee for Purchaser
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ William Cardozo
	

	 	 	 	 	 	 
	

	 	 	 	Name:
	 	William Cardozo
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Agent
	

	 	 	 	 	 	 

	S-4	LOAN PURCHASE AGREEMENT

 

EXHIBIT A TO LOAN PURCHASE AGREEMENT

LOAN TRANSFER ADDENDUM

     This Loan Transfer Addendum (“Addendum”) is made and entered into as of the                      day of                    ,
                    
by and among Consolidation Loan Funding, LLC (the “Seller”), Higher Education Funding
I (the “Purchaser”), The Bank of New York Trust Company, N.A., not in its individual capacity but
as eligible lender trustee for Seller (in such capacity, the “Seller ELT”), and The Bank of New
York, not in its individual capacity but as eligible lender trustee for Purchaser (in such
capacity, the “Purchaser ELT”).

     WHEREAS, the parties hereto entered into that certain Amended and Restated Loan Purchase
Agreement, dated as of March 1, 2005 (as the same may be amended or otherwise modified from time to
time, the “Loan Purchase Agreement”), and the Seller wishes to sell a portfolio of Student Loans to
the Purchaser, pursuant to and in accordance with the terms and conditions of the Loan Purchase
Agreement.

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

     1. Definitions. All capitalized terms in this Addendum shall have the same meanings given to
them in the Loan Purchase Agreement, unless otherwise specifically stated herein.

     2. Purchase of Student Loans. Subject to the terms and conditions of the Loan Purchase
Agreement and in reliance upon the representations, warranties and covenants as set forth in the
Loan Purchase Agreement, the Seller (and, with respect to legal title thereto, Seller ELT on behalf
of Seller) agrees to sell to the Purchaser (and, with respect to legal title thereto, to Purchaser
ELT on behalf of Purchaser), a portfolio of Student Loans identified in the Loan Transfer Schedule
attached hereto, having an aggregate outstanding Principal Balance of approximately                      (the
“Current Purchase Portfolio”).

     3. Purchase Price. Subject to the terms and conditions of the Loan Purchase Agreement,
Purchaser (and, with respect to legal title thereto, Purchaser ELT on behalf of Purchaser) agrees
to purchase the Student Loans in the Current Purchase Portfolio at a purchase price equal to
[                    ] of the aggregate unpaid Principal Balance thereon plus (without duplication) 100%
of the accrued and unpaid interest thereon (including Interest Subsidy Payments and Special
Allowance Payments), each as of the Scheduled Sale Date.

     4. Scheduled Sale Date. The Scheduled Sale Date applicable to the Current Purchase Portfolio
shall be no later than                     ,                     .

     5. Non-Consolidation Loans. Student Loans which are not Consolidation Loans [check one]

A-1

 

     are                    

     are not                     

included in the Portfolio of Eligible Loans.

     6. Servicer. The Servicer of the Eligible Loans is                     

     7. Guarantors. The Guarantor of the Eligible Loans is                     

     8. Representations and Warranties. The Seller hereby confirms all the representations and
warranties set forth in the Loan Purchase Agreement with respect to the Current Purchase Portfolio
as of the Scheduled Sale Date set forth in Article VII of the Loan Purchase Agreement.

     9. Effect on Loan Purchase Agreement. This Addendum sets forth the terms of purchase and sale
solely with respect to the Current Purchase Portfolio. This Addendum shall have no effect upon any
other sale or purchase of any Student Loans consummated or contemplated prior to or after the
Scheduled Sale Date, and all other terms, conditions and agreements contained in the Loan Purchase
Agreement shall remain in full force and effect. Prior or subsequent purchases and sales of Student
Loans shall each be governed by a separate Loan Transfer Addendum.

	 	 	 	 	 	 	 	 	 
	 	 	CONSOLIDATION LOAN FUNDING, LLC, as
	 	 	Seller
	 	 	 	 	By:	 	CLF MANAGEMENT CORP.,
	 	 	 	 	 	 	as Manager
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HIGHER EDUCATION FUNDING I,
	 	 	as Purchaser
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	GOAL FINANCIAL, LLC,
	 	 	 	 	 	 	as Issuer Administrator
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 
	

	 	 	 	 	 	 	 	 

A-2

 

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST
	 	 	COMPANY, N.A.,
	 	 	     not in its individual capacity but as Eligible
	 	 	     Lender Trustee for Seller
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	

	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	 
	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK,
	 	 	     not in its individual capacity but as Eligible
	 	 	     Lender Trustee for Purchaser
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	

	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	 

A-3

 

LOAN TRANSFER SCHEDULE

			
	Loan Number / Identification
	 	Principal Balance

A-4

 

EXHIBIT B TO LOAN PURCHASE AGREEMENT

SELLER’S CLOSING CERTIFICATE

     Consolidation Loan Funding, LLC (the “Seller”) does hereby certify that all representations,
warranties and statements by or on behalf of the Seller contained in a certain Amended and Restated
Loan Purchase Agreement, dated as of March 1, 2005 (as the same may be amended or otherwise
modified from time to time, the “Loan Purchase Agreement”), among the Seller, Higher Education
Funding I, a Delaware statutory trust, as purchaser (“Purchaser”), The Bank of New York Trust
Company, N.A., not in its individual capacity but as eligible lender trustee for Seller (in such
capacity, the “Seller ELT”), and The Bank of New York, not in its individual capacity but as
eligible lender trustee for Purchaser (in such capacity, the “Purchaser ELT”), are true and correct
on and as of the Scheduled Sale Date hereunder written, without exception or qualification
whatsoever;

     FURTHERMORE, the Seller does hereby certify that the following documents, where applicable to
each Student Loan (as defined in the Loan Purchase Agreement) acquired under the Loan Purchase
Agreement, have heretofore been furnished to the Purchaser or are simultaneously herewith delivered
in accordance with the instructions of the Purchaser, pursuant to Section 4.3 of the Loan Purchase
Agreement:

     The Department of Education application or Guarantee Agency application, as supplemented

     Interim note(s) for each Student Loan

     Payout note(s) for each Student Loan

     Disclosure and Student Loan information statement

     Certificate of Insurance and Contract of Insurance with respect to each Insured Student Loan
(or certified copy thereof)

     Guarantee Agreement, Agreement for Participation in the Guaranteed Loan Program and
Notification of Loan Approval by the Guarantee Agency with respect to each Guaranteed Student Loan
(or certified copy thereof)

     Any other documentation held by the Seller relating to the history of such Student Loan

     Secretary or Guarantee Agency Loan Transfer Statements, if any

     Uniform Commercial Code financing statement, if any, securing any interest in a Student Loan
to be Financed, and an executed termination statement related thereto

     Evidence of Student Loan disbursement

B-1

 

     Any other document required to be submitted with a claim to the Guarantee Agency.

     IN WITNESS WHEREOF, the undersigned has caused this Certificate to be executed and delivered
by an officer hereunto duly authorized as of the following Scheduled Sale Date:                                          ,                     .

	 	 	 	 	 	 	 	 	 
	 	 	CONSOLIDATION LOAN FUNDING, LLC, as
	 	 	Seller
	 	 	 	 	By:	 	CLF MANAGEMENT CORP.,
	 	 	 	 	 	 	as Manager
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 
	

	 	 	 	 	 	 	 	 

B-2

 

EXHIBIT C TO LOAN PURCHASE AGREEMENT

BLANKET ENDORSEMENT OF

STUDENT LOAN PROMISSORY NOTES

     Pursuant to the Amended and Restated Loan Purchase Agreement, dated as of March 1, 2005 (as
the same may be amended or otherwise modified from time to time, the “Loan Purchase Agreement”),
among Consolidation Loan Funding, LLC, as seller (“Seller”), Higher Education Funding I, a Delaware
statutory trust, as purchaser (“Purchaser”), The Bank of New York Trust Company, N.A., not in its
individual capacity but as eligible lender trustee for Seller (in such capacity, the “Seller ELT”),
and The Bank of New York, not in its individual capacity but as eligible lender trustee for
Purchaser (in such capacity, the “Purchaser ELT”), the Seller (and, with respect to legal title
thereto, Seller ELT on behalf of the Seller) by execution of this instrument, hereby endorses all
promissory notes purchased by the Purchaser (and, with respect to legal title thereto, Purchaser
ELT on behalf of the Purchaser). This endorsement is in blank, unrestricted form. This
endorsement is without recourse, except as provided under the terms of the Loan Purchase Agreement.
All right, title, and interest of Seller (and, with respect to legal title thereto, Seller ELT on
behalf of the Seller) in and to the promissory notes and related documentation identified in the
attached loan ledger are transferred and assigned to the Purchaser (and, with respect to legal
title thereto, Purchaser ELT on behalf of the Purchaser).

     This endorsement may be further manifested by attaching this instrument or a facsimile hereof
to each or any of the Promissory Notes and Master Notes (or copies thereof) and related
documentation acquired by the Purchaser (and, with respect to legal title thereto, Purchaser ELT on
behalf of the Purchaser) from Seller (and, with respect to legal title thereto, Seller ELT on
behalf of the Seller), or by attaching this instrument to the loan ledger schedule, as the
Purchaser may require or deem necessary.

     Dated this                     day of                                         

	 	 	 	 	 	 	 	 	 
	 	 	CONSOLIDATION LOAN FUNDING, LLC, as
	 	 	Seller
	 	 	 	 	By:	 	CLF MANAGEMENT CORP.,
	 	 	 	 	 	 	as Manager
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 
	

	 	 	 	 	 	 	 	 

C-1

 

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST
	 	 	COMPANY, N.A.,
	 	 	     not in its individual capacity but as Eligible
	 	 	     Lender Trustee for Seller
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	

	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	 
	 
	 	 	 	 

C-2

 

EXHIBIT D TO LOAN PURCHASE
AGREEMENT

BILL OF SALE

     FOR VALUE RECEIVED, Consolidation Loan Funding, LLC (the “Seller”) (and with respect to legal
title thereto, Seller ELT on behalf of Seller), pursuant to the terms and conditions of that
certain Amended and Restated Loan Purchase Agreement, dated as of March 1, 2005 (as the same may be
amended or otherwise modified from time to time, the “Loan Purchase Agreement”), among the Seller,
Higher Education Funding I, a Delaware statutory trust, as purchaser (“Purchaser”), The Bank of New
York Trust Company, N.A., not in its individual capacity but as eligible lender trustee for Seller
(in such capacity, “Seller ELT”), and The Bank of New York, not in its individual capacity but as
eligible lender trustee for Purchaser (in such capacity, “Purchaser ELT”), does hereby grant, sell,
assign, transfer and convey to Purchaser (and, with respect to legal title thereto, Purchaser ELT
on behalf of Purchaser), and its successors and assigns, all right, title and interest of the
Seller (and with respect to legal title thereto, the Seller ELT) in and to the following:

     (1) The loans described in Annex I attached hereto (the “Student Loans”), including
the Guarantee, if any, of the Student Loans issued by a Guarantor and the Certificate of
Insurance for Student Loans insured by the Secretary of Education;

     (2) All promissory notes and Master Notes (or copies thereof) and related
documentation evidencing the indebtedness represented by such Student Loans; and

     (3) All proceeds of the foregoing including, without limitation, all payments made by
the obligor thereunder or with respect thereto, all guarantee payments made by any guarantee
agency with respect thereto, if any, and all interest benefit payments and special allowance
payments with respect thereto made under Title IV, Part B, of the Higher Education
Act of 1965, as amended, and all rights to receive such payments, but excluding any proceeds
of the sale made hereby.

     TO HAVE AND TO HOLD the same unto the Purchaser (and, with respect to legal title
thereto, Purchaser ELT on behalf of Purchaser), its successors and assigns, forever. This
Bill of Sale is made pursuant to and is subject to the terms and provisions of the Loan
Purchase Agreement, and is without recourse, except as provided in the Loan Purchase
Agreement.

1

 

     IN WITNESS WHEREOF, this instrument has been duly executed as of the ___day of                                        
                    

	 	 	 	 	 	 	 	 	 
	 	 	CONSOLIDATION LOAN FUNDING, LLC,

Seller
	 	 	     By: CLF MANAGEMENT CORP.,
as Manager
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	By:	 	 	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	Name:	 	 	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	Title:	 	 	 	 
	

	 	 	 	 	 	 	 	 

2

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST
	

	 	 	 	COMPANY, N.A.,	 	 
	

	 	 	 	not in its individual capacity but as	 	 
	

	 	 	 	Eligible Lender Trustee for Seller	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Name:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Title:	 	 	 	 
	

	 	 	 	 	 	 

3

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