Document:

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                                                                   Exhibit 10.88

                               SECURITY AGREEMENT

                  THIS SECURITY AGREEMENT (the "AGREEMENT") dated as of
September 25, 2003, is by and among NATIONAL EDUCATION LOAN NETWORK, INC.
"DEBTOR" and M&I MARSHALL & ILSLEY BANK, as agent for itself and the other
Secured Parties, as that term is defined in the Credit Agreement described below
(the "AGENT").

                                R E C I T A L S:

                  The Debtor and NELNET, INC., as borrowers (collectively,
"BORROWERS"), are entering into that certain Credit Agreement dated of even date
herewith with M&I MARSHALL & ILSLEY BANK, SUNTRUST BANK, FIRST NATIONAL BANK OF
OMAHA and FIFTH THIRD BANK, INDIANA (the "BANKS") (such agreement, as it may be
amended or otherwise modified from time to time, herein the "CREDIT AGREEMENT").
The execution and delivery of this Agreement is a condition to the Bank's
entering into the Credit Agreement and making the extensions of credit
thereunder.

                  NOW, THEREFORE, in consideration of the premises and for other
good and valuable consideration, the adequacy, receipt and sufficiency of which
are hereby acknowledged, and in order to induce the Banks to make the Loans
under the Credit Agreement and the other Secured Parties to extend credit to
Borrowers, the parties hereto hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

                  Section 1.1. Definitions. As used in this Agreement, the
following terms have the following meanings:

                           "COLLATERAL" has the meaning specified in SECTION 2.1
of this Agreement.

                           "GENERAL INTANGIBLES" means any "GENERAL
         INTANGIBLES," as such term is defined in Article or Chapter 9 of the
         UCC, now owned or hereafter acquired by the Debtor and, in any event,
         shall include, without limitation, each of the following, whether now
         owned or hereafter acquired by the Debtor: (a) books, records, data,
         plans, manuals, computer software, computer tapes, computer disks,
         computer programs, source codes, object codes and rights of the Debtor
         to retrieve data and other information from third parties; (b) contract
         rights including, without limitation, all right, title and interest in
         and to the Servicing Contracts and any documentation pursuant to which
         any of the other Collateral was acquired which include, without
         limitation, the following: (i) all rights of the Debtor to receive
         moneys due and to become due under or pursuant to such agreements, (ii)
         all rights of the Debtor to receive proceeds of any insurance,
         indemnity, warranty, or guaranty with respect to such agreements, (iii)
         all claims of the Debtor for damages arising out of or for breach of or
         default under such agreements, (iv) all rights of the Debtor to
         terminate such agreements, to perform thereunder and to compel
         performance and otherwise exercise all rights and remedies thereunder,
         and (v) any rights to Liens arising under or as a result of any such
         agreement; (c) all rights of the Debtor to

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         payment under letters of credit and similar agreements, including
         without limitation, all letter of credit rights and other supporting
         obligations; (d) choses in action and causes of action of the Debtor
         (whether arising in contract, tort or otherwise and whether or not
         currently in litigation) and all judgments in favor of the Debtor,
         including without limitation, all commercial tort claims; (e) rights
         and claims of the Debtor under warranties and indemnities; (f) rights
         of the Debtor under any insurance, surety or similar contract or
         arrangement; and (g) all payment intangibles.

                           "OBLIGATIONS" means all "OBLIGATIONS" (as such term
         is defined in the Credit Agreement); provided that the obligations
         secured hereby shall be limited to an aggregate amount equal to the
         largest amount that would not render the Debtor's obligations hereunder
         subject to avoidance under Section 544 or 548 of the United States
         Bankruptcy Code or under any applicable state law relating to
         fraudulent transfers or conveyances.

                           "PROCEEDS" means any "PROCEEDS," as such term is
         defined in Article or Chapter 9 of the UCC and, in any event, shall
         include, but not be limited to: (a) any and all proceeds of any
         insurance, indemnity, warranty or guaranty payable to the Debtor from
         time to time with respect to any of the Collateral; (b) any and all
         payments (in any form whatsoever) made or due and payable to the Debtor
         from time to time in connection with any requisition, confiscation,
         condemnation, seizure or forfeiture of all or any part of the
         Collateral by any Governmental Authority (or any Person acting, or
         purporting to act, for or on behalf of any Governmental Authority); (c)
         all instruments, documents, chattel paper and general intangibles
         received or arising in connection with a disposition of Collateral; (d)
         all dividends or other distributions relating to any of the Collateral;
         and (e) any and all other amounts or property from time to time paid,
         payable, distributed or distributable under, in connection with or in
         exchange for any of the Collateral and all other payment intangibles
         relating thereto.

                           "SERVICING CONTRACT" means an arrangement, whether or
         not in writing, pursuant to which the Debtor has the right to service
         Student Loans for other Persons.

                           "UCC" means the Uniform Commercial Code as in effect
         in the State of Wisconsin from time to time. For purposes of all
         provisions of this agreement, if, by applicable law, the perfection or
         effect of perfection or non-perfection of the security interest created
         hereunder in any Collateral is governed by the Uniform Commercial Code
         as in effect on or after the date hereof in any other jurisdiction,
         "UCC' means the Uniform Commercial Code as in effect in such other
         jurisdiction for purposes of the provisions hereof relating to such
         perfection or the effect of perfection or non-perfection.

                  Section 1.2 Other Definitional Provisions. Terms used herein
that are defined in the Credit Agreement and are not otherwise defined herein
shall have the meanings therefor specified in the Credit Agreement. References
to "SECTIONS," "SUBSECTIONS," "EXHIBITS" and "SCHEDULES" shall be to Sections,
subsections, Exhibits and Schedules, respectively, of this Agreement unless
otherwise specifically provided. All definitions contained in this Agreement are
equally applicable to the singular and plural forms of the terms defined. All
references to statutes and regulations shall include any amendments of the same
and any successor statutes and

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regulations. References to particular sections of the UCC should be read to
refer also to parallel sections of the Uniform Commercial Code as enacted in
each state or other jurisdiction where any portion of the Collateral is or may
be located. Terms used herein, which are defined in the UCC, unless otherwise
defined herein or in the Credit Agreement, shall have the meanings determined in
accordance with the UCC.

                                   ARTICLE II

                                SECURITY INTEREST

                  Section 2.1 Security Interest. As collateral security for the
prompt payment and performance in full when due of the Obligations (whether at
stated maturity, by acceleration or otherwise), the Debtor hereby pledges and
assigns to the Agent, and grants to the Agent a continuing lien on and security
interest in, all of the Debtor's right, title and interest in and to the
following, whether now owned or hereafter arising or acquired and wherever
located (collectively, the "COLLATERAL"):

                           (a)      all rights of the Debtor under all Servicing
         Contracts now owned or hereafter acquired by the Debtor;

                           (b)      all rights of the Debtor to receive payments
         under or by virtue of the Servicing Contracts described in clause (b)
         preceding, whether as servicing fees, servicing income, damages,
         amounts payable upon the cancellation of termination of any such
         Servicing Contract, or otherwise;

                           (c)      all General Intangibles of the Debtor
         relating to or arising out of the Collateral described in clauses (a)
         and (b) preceding;

                           (d)      all rights of the Debtor under any Hedging
         Agreement now or hereafter entered into by the Debtor to protect the
         Debtor against changes in the value of any of the Collateral described
         in clauses (a), (b) and (c) preceding; and

                           (e)      all products and Proceeds, in cash or
         otherwise, of any of the Collateral described in clauses (a), (b), (c)
         and (d) preceding.

                  Section 2.2 Debtor Remains Liable. Notwithstanding anything to
the contrary contained herein, (a) the Debtor shall remain liable under the
documentation included in the Collateral to the extent set forth therein to
perform all of its duties and obligations thereunder to the same extent as if
this Agreement had not been executed, (b) the exercise by the Agent of any of
its rights or remedies hereunder shall not release the Debtor from any of its
duties or obligations under such documentation, (c) the Agent shall not have any
obligation under any of such documentation included in the Collateral by reason
of this Agreement, and (d) the Agent shall not be obligated to perform any of
the obligations of the Debtor thereunder or to take any action to collect or
enforce any claim for payment assigned hereunder.

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                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

                  To induce the Bank to enter into the Credit Agreement and the
other Secured Parties to extend credit to the Borrowers, the Debtor represents
and warrants to the Bank and the other Secured Parties that:

                  Section 3.1 Current Servicing Contracts. Attached hereto as
SCHEDULE 3.1 is a true and complete list of all of its Servicing Contracts in
effect on the date hereof. Each of the Servicing Contracts listed in SCHEDULE
3.1 contain provisions that are consistent with those set forth in the form of
Agreement attached hereto as SCHEDULE 3.1A, except that the life of loan
servicing provision found in SECTION 1.2 of SCHEDULE 3.1A appears only in the
Servicing Contracts so noted. The termination, indemnification, and liability
provision of each Servicing Contract listed in SCHEDULE 3.1 are substantially
similar to those provisions contained in SCHEDULE 3.1A.

                  Section 3.2 Office Locations; Fictitious Names; Tax I.D.
Number. Its principal place of business, chief executive office and jurisdiction
of organization are located at the place or places identified for it on SCHEDULE
3.2. Within the last four months it has not had any other chief place of
business, chief executive office, or jurisdiction of organization except as
disclosed on SCHEDULE 3.2. SCHEDULE 3.2 also sets forth all other places where
it keeps its books and records relating to the Collateral. It does not do
business and has not done business during the past five years under any
trade-name or fictitious business name except as disclosed on SCHEDULE 3.2. Its
United States Federal Income Tax I.D. Number and organizational number is
identified on SCHEDULE 3.2.

                  Section 3.3 Ownership of Collateral. It is the legal and
equitable owner of the Collateral owned by it, free and clear of all Liens,
except the Lien created hereby.

                  Section 3.4 Validity of Service Contracts. Each Servicing
Contract is in full force and effect, each Servicing Contract is legal, valid,
and enforceable in accordance with its terms, except as limited by bankruptcy,
insolvency and similar laws of general application affecting the rights of
creditors and general principles of equity, and, to the best of its knowledge,
no default or event of default exists under any Servicing Contract that could
have a Material Adverse Effect.

                  Section 3.5 Consents; Status. No consent or approval of any
Person, including any Governmental Authority, is required for it to execute,
deliver and perform this Agreement, or for the validity and enforceability of
the Lien and security interest in the Collateral created hereby, that in each
case has not been obtained and is not in full force and effect. It is approved
by, and qualified and in good standing with, all Governmental Authorities
necessary for it to service the Student Loans under the Servicing Contracts.

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                                   ARTICLE IV

                                    COVENANTS

                  The Debtor covenants and agrees with the Agent that until the
Obligations are paid and performed in full and all commitments under the Credit
Agreement have expired or have been terminated:

                  Section 4.1 Payment Obligations. It shall, in accordance with
its customary business practices, endeavor to collect or cause to be collected
from each obligor on the Collateral, as and when due, any and all amounts owing
under the Collateral. Without the prior written consent of the Agent, it shall
not, except in the ordinary course of business, (a) grant any extension of time
for any payment with respect to any of the Collateral, (b) compromise, compound,
or settle any of the Collateral for less than the full amount thereof, (c)
release, in whole or in part, any Person liable for payment of any of the
Collateral, (d) allow any credit or discount for payment with respect to any of
the Collateral, or (e) release any Lien or guaranty securing any payment
obligation under the Collateral.

                  Section 4.2 Further Assurances. At any time and from time to
time, upon the request of the Agent, and at its sole expense, it shall, promptly
execute and deliver all such further agreements, documents and instruments and
take such further action as the Agent may reasonably deem necessary or
appropriate to preserve and perfect its security interest in the Collateral and
carry out the provisions and purposes of this Agreement or to enable the Agent
to exercise and enforce its rights and remedies hereunder with respect to any of
the Collateral. Without limiting the generality of the foregoing, it shall upon
reasonable request by the Agent: (a) authorize the Agent to file such financing
statements as the Agent may from time to time require; (b) take such action as
the Agent may request to permit the Agent to have control over any investment
property; (c) deliver to the Agent all Collateral the possession of which is
necessary to perfect its security interest therein, duly endorsed and/or
accompanied by duly executed instruments of transfer or assignment, all in form
and substance satisfactory to the Agent; and (d) execute and deliver to the
Agent such other agreements, documents and instruments as the Agent may
reasonably require to perfect and maintain the validity, effectiveness and
priority of the Liens intended to be created by the Loan Documents.

                  Section 4.3 Corporate Changes. It shall not change its name,
identity, jurisdiction of organization, or corporate structure in any manner
that might make any financing statement filed in connection with this Agreement
seriously misleading or its United States Federal Tax I.D. Number unless such
action is permitted or not restricted by the Credit Agreement and it shall have
given the Agent thirty (30) days prior written notice thereof and shall have
taken all action reasonably deemed necessary or desirable by the Agent to
protect its security interest in the Collateral with the perfection and priority
thereof required by the Loan Documents. It shall not change its principal place
of business, chief executive office or the place where it keeps its books and
records unless it shall have given the Agent thirty (30) days prior written
notice thereof and shall have taken all action deemed necessary or desirable by
the Agent to cause its security interest in the Collateral to be perfected with
the priority required by the Loan Documents.

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                  Section 4.4 Performance of Servicing Contracts. It will, at
its expense: (a) perform and observe all of the material terms and provisions of
the Servicing Contracts to be performed or observed by it in accordance with
their terms and with applicable laws and regulations of Governmental
Authorities, maintain the Servicing Contracts in full force and effect, enforce
the Servicing Contracts in accordance with their respective terms, and take all
action to such end as may be from time to time reasonably requested by the Agent
and (b) from time to time (1) furnish to the Agent such information and requests
regarding the Servicing Contracts as the Agent may reasonably request and (2)
upon reasonable request of the Agent make to any other party to any Servicing
Contract such demands and requests for information and reports or for action as
it is entitled to make thereunder.

                  Section 4.5 Modification to Servicing Contracts. It will not
amend or otherwise modify the terms and conditions of any Servicing Contract if
such amendment or modification could have a Material Adverse Effect.

                                    ARTICLE V

                               RIGHTS OF THE AGENT

                  Section 5.1 POWER OF ATTORNEY. THE DEBTOR HEREBY IRREVOCABLY
CONSTITUTES AND APPOINTS THE AGENT AND ANY OFFICER OR AGENT THEREOF, WITH FULL
POWER OF SUBSTITUTION, AS ITS TRUE AND LAWFUL ATTORNEY-IN-FACT WITH FULL
IRREVOCABLE POWER AND AUTHORITY IN THE NAME OF THE DEBTOR OR IN ITS OWN NAME, TO
TAKE, WHEN AN EVENT OF DEFAULT EXISTS, ANY AND ALL ACTIONS AND TO EXECUTE ANY
AND ALL DOCUMENTS AND INSTRUMENTS WHICH THE AGENT AT ANY TIME AND FROM TIME TO
TIME DEEMS NECESSARY OR DESIRABLE TO ACCOMPLISH THE PURPOSES OF THIS AGREEMENT
AND, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, IT HEREBY GIVES THE AGENT
THE POWER AND RIGHT ON ITS BEHALF AND IN ITS OWN NAME TO DO ANY OF THE FOLLOWING
WHEN AN EVENT OF DEFAULT EXISTS, WITH NOTICE TO THE DEBTOR BUT WITHOUT THE
CONSENT OF THE DEBTOR:

                           (a)      to demand, sue for, collect or receive, in
         the name of it or in its own name, any money or property at any time
         payable or receivable on account of or in exchange for any of the
         Collateral and, in connection therewith, endorse checks, notes, drafts,
         acceptances, money orders, documents of title or any other instruments
         for the payment of money under the Collateral or any policy of
         insurance;

                           (b)      to pay or discharge taxes, Liens or other
         encumbrances levied or placed on or threatened against the Collateral;

                           (c)      to notify post office authorities to change
         the address for delivery of mail of the Debtor to an address designated
         by the Agent and to receive, open, and dispose of mail addressed to the
         Debtor;

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                           (d)      (A) to direct account debtors and any other
         parties liable for any payment under any of the Collateral to make
         payment of any and all monies due and to become due thereunder directly
         to the Agent or as the Agent shall direct (the Debtor agrees that if
         any Proceeds of any Collateral shall be received by it after such a
         direction from the Agent, it shall promptly deliver such Proceeds to
         the Agent with any necessary endorsements, and until such Proceeds are
         delivered to the Agent, such Proceeds shall be held in trust by it for
         the benefit of the Agent and shall not be commingled with any other of
         its funds or property); (B) to receive payment of and receipt for any
         and all monies, claims and other amounts due and to become due at any
         time in respect of or arising out of any Collateral; (C) to sign and
         endorse any assignments, proxies, stock powers, verifications and
         notices in connection with accounts or payment obligations and other
         documents relating to the Collateral; (D) to commence and prosecute any
         suit, action or proceeding at law or in equity in any court of
         competent jurisdiction to collect the Collateral or any part thereof
         and to enforce any other right in respect of any Collateral; (E) to
         defend any suit, action or proceeding brought against it with respect
         to any Collateral; (F) to settle, compromise or adjust any suit, action
         or proceeding described above and, in connection therewith, to give
         such discharges or releases as the Agent may deem appropriate; (G) to
         add or release any guarantor, endorser, surety or other party to any of
         the Collateral; (H) to renew, extend or otherwise change the terms and
         conditions of any of the Collateral; (I) to make, settle, compromise or
         adjust any claims under or pertaining to any of the Collateral
         (including claims under any policy of insurance); and (J) to sell,
         transfer, pledge, convey, make any agreement with respect to or
         otherwise deal with any of the Collateral as fully and completely as
         though the Agent were the absolute owner thereof for all purposes, and
         to do, at the Agent's option and the Debtor's expense, at any time, or
         from time to time, all acts and things which the Agent deems necessary
         to protect, preserve, maintain, or realize upon the Collateral and the
         Agent's security interest therein.

                  THIS POWER OF ATTORNEY IS A POWER COUPLED WITH AN INTEREST AND
SHALL BE IRREVOCABLE UNTIL TERMINATION OF THIS AGREEMENT IN ACCORDANCE WITH
SECTION 7.11. The Agent shall be under no duty to exercise or withhold the
exercise of any of the rights, powers, privileges and options expressly or
implicitly granted to the Agent in this Agreement, and shall not be liable for
any failure to do so or any delay in doing so. Neither the Agent nor any Person
designated by the Agent shall be liable for any act or omission or for any error
of judgment or any mistake of fact or law, except any of the same resulting from
its or their gross negligence or willful misconduct. This power of attorney is
conferred on the Agent solely to protect, preserve, maintain and realize upon
its security interest in the Collateral. The Agent shall not be responsible for
any decline in the value of the Collateral and shall not be required to take any
steps to preserve rights against prior parties or to protect, preserve or
maintain any Lien given to secure the Collateral.

                  Section 5.2 Assignment by the Agent. The Agent may at anytime
assign or otherwise transfer all or any portion of their rights and obligations
under this Agreement and the other Loan Documents (including, without
limitation, the Obligations) to any other Person, to the extent permitted by,
and upon the conditions contained in, the Credit Agreement, and such Person
shall thereupon become vested with all the benefits thereof granted to the
Agent, herein or otherwise.

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                                   ARTICLE VI

                          DEFAULT, RIGHTS AND REMEDIES

                  If an Event of Default exists, the Agent shall have the
following rights and remedies:

                           (a)      In addition to all other rights and remedies
         granted to the Agent in this Agreement or in any other Loan Document or
         by applicable law, the Agent shall have all of the rights and remedies
         of a secured party under the UCC (whether or not the UCC applies to the
         affected Collateral). Without limiting the generality of the foregoing,
         the Agent may (A) without demand or notice to it, collect, receive or
         take possession of the Collateral or any part thereof and for that
         purpose the Agent may enter upon any premises on which the Collateral
         is located and remove the Collateral therefrom or render it inoperable,
         and/or (B) sell, lease or otherwise dispose of the Collateral, or any
         part thereof, in one or more parcels at public or private sale or
         sales, at the Agent's offices or elsewhere, for cash, on credit or for
         future delivery, and upon such other terms as the Agent may deem
         commercially reasonable or otherwise as may be permitted by law. The
         Agent shall have the right at any public sale or sales, and, to the
         extent permitted by applicable law, at any private sale or sales, to
         bid (which bid may be, in whole or in part, in the form of cancellation
         of indebtedness) and become a purchaser of the Collateral or any part
         thereof free of any right or equity of redemption on the part of the
         Debtor, which right or equity of redemption is hereby expressly waived
         and released by the Debtor. Upon the request of the Agent, the Debtor
         shall assemble the Collateral and make it available to the Agent at
         anyplace designated by the Agent that is reasonably convenient to it
         and the Agent. The Debtor agrees that the Agent shall not be obligated
         to give more than ten (10) days prior written notice of the time and
         place of any public sale or of the time after which any private sale
         may take place and that such notice shall constitute reasonable notice
         of such matters. The Agent shall not be obligated to make any sale of
         Collateral if it shall determine not to do so, regardless of the fact
         that notice of sale of Collateral may have been given. The Agent may,
         without notice or publication, adjourn any public or private sale or
         cause the same to be adjourned from time to time by announcement at the
         time and place fixed for sale, and such sale may, without further
         notice, be made at the time and place to which the same was so
         adjourned. The Debtor shall be liable for all reasonable expenses of
         retaking, holding, preparing for sale or the like, and all reasonable
         attorneys' fees, legal expenses and other costs and expenses incurred
         by the Agent in connection with the collection of the Obligations and
         the enforcement of the Agent's rights under this Agreement. The Debtor
         shall remain liable for any deficiency if the Proceeds of any sale or
         other disposition of the Collateral applied to the Obligations are
         insufficient to pay the Obligations in full to the extent provided in
         the Loan Documents. The Agent may apply the Collateral against the
         Obligations as provided in the Credit Agreement. The Debtor waives all
         rights of marshalling, valuation and appraisal in respect of the
         Collateral. Any cash held by the Agent as Collateral and all cash
         proceeds received by the Agent in respect of any sale of, collection
         from or other realization upon all or any part of the Collateral may,
         in the discretion of the Agent, be held by the Agent as collateral for,
         and then or at any time thereafter applied in whole or in part by the
         Agent against, the Obligations in the order

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         permitted by the Credit Agreement. Any surplus of such cash or cash
         proceeds and interest accrued thereon, if any, held by the Agent and
         remaining after payment in full of all the Obligations shall be
         promptly paid over to the Debtor or to whomsoever may be lawfully
         entitled to receive such surplus; provided that the Agent shall have no
         obligation to invest or otherwise pay interest on any amounts held by
         it in connection with or pursuant to this Agreement.

                           (b)      The Agent may cause any or all of the
         Collateral held by it to be transferred into the name of the Agent or
         the name or names of the Agent's nominee or nominees.

                           (c)      The Agent may exercise any and all of the
         rights and remedies of the Debtor under or in respect of the
         Collateral, including, without limitation, any and all rights of it to
         demand or otherwise require payment of any amount under, or performance
         of any provision of, any of the Collateral.

                           (d)      The Agent may collect or receive all money
         or property at any time payable or receivable on account of or in
         exchange for any of the Collateral, but shall be under no obligation to
         do so.

                           (e)      On any sale of the Collateral, the Agent is
         hereby authorized to comply with any limitation or restriction with
         which compliance is necessary, in the view of the Agent's counsel, in
         order to avoid any violation of applicable law or in order to obtain
         any required approval of the purchaser or purchasers by any applicable
         Governmental Authority.

                                   ARTICLE VII

                                  MISCELLANEOUS

                  Section 7.1 No Waiver; Cumulative Remedies. No failure on the
part of the Agent to exercise and no delay in exercising, and no course of
dealing with respect to, any right, power or privilege under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, power or privilege under this Agreement preclude any other or further
exercise thereof or the exercise of any other right, power, or privilege. The
rights and remedies provided for in this Agreement are cumulative and not
exclusive of any rights and remedies provided by law.

                  Section 7.2 Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the Debtor and the Agent and respective
successors and assigns, except that Debtor may not assign any of its rights or
obligations under this Agreement without the prior written consent of the Agent.

                  Section 7.3 AMENDMENT; ENTIRE AGREEMENT. THIS AGREEMENT AND
THE OTHER LOAN DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES
HERETO AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS
AND UNDERSTANDINGS,

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WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND MAY NOT BE
CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT OPAL
AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS AMONG THE PARTIES HERETO. The provisions of this Agreement may be
amended or waived only by an instrument in writing signed by the Debtor and the
Agent.

                  Section 7.4 Notices. All notices and other communications
provided for in this Agreement shall be given or made in accordance with the
Credit Agreement.

                  Section 7.5 Governing Law. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of Wisconsin and
applicable laws of the United States of America.

                           Section 7.6 Headings. The headings, captions, and
arrangements used in this Agreement are for convenience only and shall not
affect the interpretation of this Agreement.

                  Section 7.7 Survival of Representations and Warranties. All
representations and warranties made in this Agreement or in any certificate
delivered pursuant hereto shall survive the execution and delivery of this
Agreement, and no investigation by the Agent shall affect the representations
and warranties or the right of the Agent or the Bank to rely upon them.

                  Section 7.8 Counterparts. This Agreement may be executed in
any number of counterparts and on telecopy counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
agreement.

                  Section 7.9 Waiver of Bond. In the event the Agent seeks to
take possession of any or all of the Collateral by judicial process, the Debtor
hereby irrevocably waives any bonds and any surety or security relating thereto
that may be required by applicable law as an incident to such possession, and
waives any demand for possession prior to the commencement of any such suit or
action.

                  Section 7.10 Severability. Any provision of this Agreement
which is determined by a court of competent jurisdiction to be prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Agreement, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

                  Section 7.11 Termination. If all of the Obligations shall have
been paid and performed in full, all commitments of the Bank shall have expired
or terminated, the Agent shall, upon the written request of the Debtor, execute
and deliver to the Debtor a proper instrument or instruments acknowledging the
release and termination of the security interests created by this Agreement, and
shall duly assign and deliver to the Debtor (without recourse and without any
representation or warranty) such of the Collateral as may be in the possession
of the Agent and has not previously been sold or otherwise applied pursuant to
this Agreement.

<PAGE>

                  Section 7.12 Obligations Absolute. All rights and remedies of
the Agent hereunder, and all obligations of the Debtor hereunder, shall be
absolute and unconditional irrespective of: (a) any lack of validity or
enforceability of any of the Loan Documents; or (b) any change in the time,
manner, or place of payment of, or in any other term of, all or any of the
Obligations, or any other amendment or waiver of or any consent to any departure
from any of the Loan Documents; any exchange, release, or non-perfection of any
Collateral, or any release or amendment or waiver of or consent to any departure
from any guarantee, for all or any of the Obligations; or any other circumstance
that might otherwise constitute a defense available to, or a discharge of, a
third party pledgor.

                  Section 7.13 WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE DEBTOR HEREBY IRREVOCABLY AND EXPRESSLY WAIVES
ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER
BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE LOAN
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF THE AGENT OR
ANY SECURED PARTY IN THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT THEREOF.

<PAGE>

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

                                           DEBTOR:

                                           NATIONAL EDUCATION LOAN NETWORK, INC.

                                           By: /s/ Terry Heimes
                                              Name: Terry Heimes
                                              Title: Chief Financial Officer

                                           AGENT:

                                           M&I MARSHALL & ILSLEY BANK,
                                           as Agent for the Secured Parties

                                           By: /s/ Jude M. Carlin
                                              Name: Jude M. Carlin
                                              Title: Vice President

  [Signature Page to National Education Loan Network, Inc. Security Agreement]

<PAGE>

                                  SCHEDULE 3.1
                                       TO
                               SECURITY AGREEMENT

                      CURRENT FFELP LOAN SERVICING CLIENTS

                                      None.

<PAGE>

                                  SCHEDULE 3.1A
                                       TO
                               SECURITY AGREEMENT

                          LOAN APPLICATION PROCESSING,
                      DISBURSEMENT AND SERVICING AGREEMENT

                                       N/A

<PAGE>

                                  SCHEDULE 3.2
                                       TO
                               SECURITY AGREEMENT

   OFFICE LOCATIONS; FICTITIOUS NAMES; TAX I.D. NUMBER; ORGANIZATIONAL NUMBER

OFFICE LOCATIONS:

121 South 13th Street, Suite 201, Lincoln, NE 68508

NAMES:

         Current Name:                    NATIONAL EDUCATION LOAN NETWORK, INC.

         Prior Names:                     NELNET, INC.

         Fictitious Names:                None

TAX PAYER I.D. NO.:

47-0828363<PAGE>

                                                                   EXHIBIT 10.89

                             INTERCREDITOR AGREEMENT

                  This Intercreditor Agreement (this "Agreement") dated as of
September 25, 2003, among M&I Marshall & Ilsley Bank, SunTrust Bank, First
National Bank of Omaha and Fifth Third Bank, Indiana (the "Lenders") and Bank of
America, N.A. ("B of A") (and together with the Lenders, the "Senior Lenders")
and M&I Marshall & Ilsley Bank, as Agent for the Lenders under the Credit
Agreement referred to below. All capitalized terms used herein are used herein
as defined in Section 1 hereof.

                                   WITNESSETH:

                  WHEREAS, the Lenders and the Agent are entering into the
Credit Agreement with the Borrowers, pursuant to which the Lenders have made and
provided, and may continue to make and provide, loans and other financial
accommodations to the Borrowers including providing for the issuance of
commercial paper;

                  WHEREAS, B of A has heretofore made and provided, and may
continue to make and provide, loans and other financial accommodations to one or
more of the Borrowers, pursuant to the terms and conditions of the B of A
Facility referred to below;

                  WHEREAS, the Senior Lenders wish to execute and deliver this
Agreement to define their rights and obligations with respect to each other such
that certain payments received by any Senior Lender on account of the Senior
Indebtedness shall be shared among all Senior Lenders equally and ratably in
accordance with the respective amounts of the Senior Indebtedness then held by
each of them, all as further set forth herein; and

                  NOW, THEREFORE, the parties hereto agree as follows:

                  Section 1. DEFINITIONS

                  1.1.     The following terms have the following meanings,
unless the context otherwise requires:

                  "Acceleration" shall mean the acceleration of all or any part
of the Senior Indebtedness.

                  "Affiliate" of any Person shall mean any other Person which
directly or indirectly controls, is controlled by or is under common control
with such first Person. A Person shall be deemed to control a corporation or
other entity if such Person possesses, directly or indirectly, the power to
direct or cause the direction of the management and policies of such corporation
or other entity, whether through the ownership of voting securities, by contract
or otherwise.

                  "Agent" has the meaning stated in the Credit Agreement.

                  "B of A" has the meaning stated in the preamble to this
Agreement, and includes any successors and assigns.

                  "B of A Facility" shall mean that credit agreement between one
or more of the Borrowers and B of A, dated January 11, 2000, as amended,
supplemented or modified from time to time in accordance with the terms thereof.

<PAGE>

                  "Borrowers" shall mean Nelnet, Inc., a Nebraska corporation
and National Education Loan Network, Inc., a Nevada corporation.

                  "Collateral" shall mean all property and assets, and interests
in property and assets which from time to time secures all or any part of the
Senior Indebtedness.

                  "Collateral Documents" shall mean all pledge agreements and
any security agreements, mortgages, assignments of intercompany agreements or
other agreements, documents or instruments in effect on the date of this
Agreement or executed by the Borrowers or any other Company under which the
Borrowers or such Company has granted a lien upon or security interest in any
property or assets to secure all or any part of the Senior Indebtedness, and all
financing statements, certificates, documents and instruments relating thereto
or executed or provided in connection therewith, each as amended, restated,
supplemented or otherwise modified from time to time.

                  "Companies" shall mean, collectively, the Borrowers and the
Guarantors and each individually a "Company".

                  "Credit Agreement" shall mean the Credit Agreement dated as of
September 25, 2003, among the Borrowers, the Lenders named therein and M & I
Marshall & Ilsley Bank, as Agent, as amended, supplemented or modified from time
to time in accordance with the terms thereof.

                  "Enforcement" shall mean (a) an Acceleration, (b) the
occurrence of an Event of Default under either Section 10.1 of the Credit
Agreement or under Section 10.1 of the B of A Facility, which has not been
waived or cured, (c) the early termination of any Senior Indebtedness
Agreements, (d) any affirmative action taken by the Senior Lenders to liquidate
or dispose of the Collateral or (e) the exercise by any Senior Lender of its
rights of set-off against a deposit account of any Company.

                  "Event of Default" shall mean a "Default," as defined in the
Credit Agreement, or an "Event of Default", as defined in the B of A Facility.

                  "Guarantors" shall mean each Person which is or may become a
guarantor of all or any part of the Senior Indebtedness.

                  "Guaranty Agreements" shall mean those guaranty agreements
heretofore or hereafter executed and delivered by any Guarantor, pursuant to
which all or any part of the Senior Indebtedness is guaranteed.

                  "Lenders" has the meaning stated in the preamble to this
Agreement, and includes any successors and assigns.

                  "Notice of Enforcement" shall mean a written certification
given by or on behalf of any Senior Lender to the other Senior Lenders
certifying that an Enforcement has occurred.

                  "Person" shall mean an individual, partnership, limited
liability company, corporation (including a business trust), joint stock
company, trust, unincorporated association, joint venture, governmental agency
or other authority.

                  "Pro Rata Portion" shall mean, on any date of determination
and with respect to any Senior Lender, the proportion which the portion of the
Total Obligations owed to such Senior Lender bears to the Total Obligations owed
to all Senior Lenders as of such date.

                                        2

<PAGE>

                  "Receiving Lender" has the meaning stated in Section 3.3.

                  "Senior Indebtedness" shall mean the Obligations as defined in
the Credit Agreement and the Obligations as defined in the B of A Facility. The
term "Senior Indebtedness" shall include all of the foregoing Obligations
whether or not allowed as a claim in any bankruptcy, insolvency, receivership or
similar proceeding.

                  "Senior Indebtedness Agreements" shall mean, collectively, (a)
the Loan Documents as defined in the Credit Agreement, and (b) the Loan
Documents as defined in the B of A Facility.

                  "Shared Payment" shall mean any payment of any kind received
by any Senior Lender on or after the occurrence and during the continuance of an
Enforcement on account of any of the Senior Indebtedness (including, without
limitation, any proceeds of Collateral and any proceeds resulting from a set-off
of a deposit account (whether or not with respect to any Senior Indebtedness)
and any payment or distribution made in the context of any bankruptcy,
insolvency or reorganization proceeding).

                  "Total Obligations", shall mean, as of any date of
determination, the sum of the Obligations (as defined in the Credit Agreement)
and the Obligations (as defined in the B of A Facility) outstanding on such
date.

                  1.2.     Certain Other Terms. The words "hereof," "herein" and
"hereunder" and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement. Section references are to this Agreement unless otherwise specified.
All terms defined in this Agreement in the singular shall have comparable
meanings when used in the plural, and vice versa, unless otherwise specified.

                  Section 2. LIEN ISSUES; OTHER MATTERS.

                  2.1.     Lien Priorities. The parties to this Agreement
expressly agree that the security interests and liens granted to the Senior
Lenders and/or the Agent shall secure the Senior Indebtedness on a pari passu
basis for the benefit of the Senior Lenders, notwithstanding the relative
priority or the time of grant, creation, attachment or perfection under
applicable law of any security interests and liens, if any, of the Senior
Lenders upon or in any of the Collateral to secure any Senior Indebtedness,
whether such security interests and liens are now existing or hereafter acquired
or arising and whether such security interests and liens are in or upon now
existing or hereafter arising Collateral.

                  2.2.     Senior Lender Credit Decision. Each Senior Lender
acknowledges that it has, independently and without reliance upon any other
Senior Lender and based on the financial statements prepared by the Borrowers
and such other documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement and the other
Senior Indebtedness Agreements. Each Senior Lender also acknowledges that it
will, independently and without reliance upon any other Senior Lender and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement and the other Senior Indebtedness Agreements.

                  2.3.     Distributions and Consents. Each of the Senior
Lenders hereby agrees, on five business days' notice from any Senior Lender, to
confirm to all Senior Lenders in writing the outstanding balance of the Senior
Indebtedness (itemized as to principal, interest, fees and other amounts, if
any), owing to such Senior Lender as of the date of such notice.

                                        3

<PAGE>

                  Section 3. PAYMENTS, ETC.

                  3.1.     Permitted Payments. Prior to the occurrence of an
Enforcement, each Senior Lender may receive from any Company and retain for its
own account (subject to requirements of pro rata sharing among Lenders under the
Credit Agreement), all payments of any Senior Indebtedness owing to the Senior
Lenders or any of them provided for in the Senior Indebtedness Agreements.

                  3.2.     Notice of Enforcement. Each Senior Lender shall give
a Notice of Enforcement to all other Senior Lenders as soon as possible, but in
any event, within ten days of becoming aware of the occurrence of an Enforcement
in respect of any of the Senior Indebtedness owed to such Senior Lender.

                  3.3.     Turnover of Payments. Each Senior Lender that
receives any Shared Payment by or on behalf of any of the Companies or otherwise
from any Person or source (any such Senior Lender, a "Receiving Lender") shall,
immediately after receipt of a Notice of Enforcement (or, if such Senior Lender
gave such Notice of Enforcement, therewith), or, if later, immediately upon
receipt of such Shared Payment, notify all other Senior Lenders in writing of
the amount and date of receipt of such Shared Payment and deliver to each other
Senior Lender its Pro Rata Portion of such Shared Payment. Each delivery of any
Shared Payment shall be accompanied by a written calculation of the amount of
the Shared Payment owing to each Senior Lender. Such calculation shall be deemed
correct unless any Senior Lender delivers notice of dispute within thirty days
of such Senior Lender's receipt of the calculation.

         Notwithstanding the foregoing, to the extent that any amounts available
for distribution pursuant to this Section 3.3 are attributable to the Senior
Indebtedness that related to outstanding commercial paper under the Credit
Agreement, such amounts shall be held in a reserve or other account unavailable
to the Companies (the "Reserve Account") to be established by the Agent. Amounts
in the Reserve Account shall be used from time to time to the extent allocated
to commercial paper, to pay the applicable loan and reimbursement obligations
for which such amounts were held in reserve as they become due. Any amounts
remaining in the Reserve Account following the expiration or satisfaction in
full of the Senior Indebtedness for which such amounts were held in reserve
shall be applied against any Senior Indebtedness remaining unpaid in accordance
with the then applicable Pro Rata Portions.

                  3.4.     Invalidated Payments. If any amount remitted by any
Receiving Lender to any Senior Lender, in accordance with the provisions of this
Agreement, is subsequently returned or repaid (or required to be returned or
repaid) by such Receiving Lender to any of the Companies or their
representatives or successors in interest, whether by court order, settlement or
otherwise, the Senior Lender receiving a portion of such payment shall, promptly
upon its receipt of notice thereof from such Receiving Lender, pay such
Receiving Lender the portion received by it of such returned or repaid amount.
If any such amounts are subsequently recovered by such Receiving Lender from any
of the Companies or their representatives or successors in interest, such
Receiving Lender shall redistribute such amounts to the Senior Lenders on the
same basis as such amounts were originally distributed. The obligations of the
Senior Lenders under this Section 3.4 shall survive the repayment of the Senior
Indebtedness and termination of the Senior Indebtedness Agreements.

                  3.5.     Receiving Lender to be Subrogated to Rights of Other
Senior Lenders. Any Receiving Lender that has remitted any portion of a Shared
Payment received by it to the other Senior Lenders as provided in Section 3.3
shall, to the extent of such remittance distributable to any other Senior
Lender, be subrogated to the rights of each of such other Senior Lenders to
receive payments from the Companies applicable to the Senior Indebtedness owed
to such other Senior Lenders, until all Senior Indebtedness owed to such
Receiving Lender shall be paid in full, and for purposes of such subrogation, no
payment by such Receiving Lender to such other Senior Lenders shall, as between
the Companies or

                                        4

<PAGE>

any of them, their respective creditors other than the holders of any Senior
Indebtedness, and the holders of any Senior Indebtedness, be deemed to be a
payment by any of the Companies to such other Senior Lenders or on account of
their Senior Indebtedness, it being understood that the provisions of this
Section 3.3 are, and are intended, solely for the purpose of defining the
relative rights of the holders of the Senior Indebtedness.

                  3.6.     Changes in Senior Indebtedness. If, following any
payments pursuant to Section 3.4, the amount of outstanding Senior Indebtedness
held by any Senior Lender is determined to be different than the amount used to
calculate such distribution (other than as a result of such distribution),
whether due to the invalidation of any payment made to any Senior Lender which
is not addressed in Section 3.4, a mistake in fact or otherwise, (subject to
Section 3.3) then the Senior Lenders shall apply the principles set forth in
Section 3.4 to reallocate any amounts previously distributed pursuant to Section
3.4.

                  Section 4. MODIFICATIONS OF SENIOR INDEBTEDNESS. No Lender
shall increase the aggregate Commitment (as defined in the Credit Facility)
under the Credit Facility, and B of A shall not increase the Commitment under
the B of A Facility.

                  Section 5. SENIOR LENDERS' WAIVERS. No waiver shall be deemed
to be made by Senior Lenders of any of their rights hereunder, unless the same
shall be in writing signed on behalf of Senior Lenders, and each waiver, if any,
shall be a waiver only with respect to the specific instance involved and shall
in no way impair the rights of Senior Lenders or the obligations of Subordinated
Creditor to Senior Lenders in any other respect at any other time.

                  Section 6. PRIORITIES. The priorities specified hereinabove
are applicable irrespective of the time or order of attachment or perfection of
any security interest or other interests referred to herein, the time or order
of filing of financing statements or mortgages, the acquisition of purchase
money or other security interests, or the time of giving or failure to give
notice of the acquisition or expected acquisition of purchase money or other
security interests. The priorities specified herein are not conditioned upon the
nonavoidability or perfection of Senior Lenders' security interests in any
Collateral for the Senior Indebtedness.

                  Section 7. REPRESENTATIONS AND WARRANTIES.

                  Each Senior Lender represents and warrants to the other Senior
Lenders that:

                  7.1.     It has full power, authority and legal right to
execute, deliver and perform this Agreement, and the execution, delivery and
performance of this Agreement will not violate any provision of any instrument
or agreement to which it is a party or by which it or any of its properties is
subject or bound;

                  7.2.     No consent, license, approval or authorization of, or
registration or declaration with, any governmental instrumentality, domestic or
foreign, is required in connection with the execution, delivery or performance
by it of this Agreement;

                  7.3.     This Agreement constitutes its legal, valid and
binding obligation and is enforceable against it in accordance with its terms;

                  7.4.     It has not heretofore assigned or transferred any of
the Senior Indebtedness owing to it, or any interest therein; and

                                        5

<PAGE>

                  7.5.     It has not heretofore entered into an agreement
similar to this Agreement in respect of the Senior Indebtedness owing to it.

                  Section 8. NOTICES. All notices, requests and demands to or
upon the respective parties hereto shall be in writing delivered by hand
delivery, reputable overnight courier service or certified mail, return receipt
requested, with charges prepaid, addressed as follows:

            If to Senior Lenders, to:    Bank of America, N.A.
                                         901 Main Street, 66th Floor
                                         Dallas, Texas 75202
                                         Attention: Shelly Harper

                                         Fifth Third Bank, Indiana
                                         251 North Illinois Street, Suite 1000
                                         Indianapolis, IN 46204
                                         Attention: Andy Cardimen

                                         First National Bank of Omaha
                                         1620 Dodge Street, Stop 1196
                                         Omaha, NE 68197
                                         Attention: Brock Taylor

                                         M&I Marshall & Ilsley Bank
                                         770 North Water Street
                                         Milwaukee, Wisconsin 53202
                                         Attention: Patrick J. Haney

                                         SunTrust Bank
                                         200 West Forsyth Street
                                         Jacksonville, FL 32202
                                         Attention: Michael A. Green

or in accordance with the last unrevoked written direction from the applicable
party to the other party hereto. All notices shall be effective when hand
delivered or sent by confirmed telecopy, one business day after sent by
reputable overnight courier or three (3) business days after sent by certified
mail, return receipt requested.

                  Section 9. SEVERABILITY. The provisions of this Agreement are
independent of and separate from each other. If any provision hereof shall for
any reason be held invalid or unenforceable, it is the intent of the parties
that such invalidity or unenforceability shall not affect the validity or
enforceability of any other provision hereof, and that this Agreement shall be
construed as if such invalid or unenforceable provision had never been contained
herein.

                  Section 10. MISCELLANEOUS

                  10.1.    Governing Law and Amendments. THIS AGREEMENT IS BEING
DELIVERED IN THE STATE OF WISCONSIN AND SHALL BE CONSTRUED AND ENFORCED

                                        6

<PAGE>

IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAWS
OF SUCH STATE (WITHOUT RESPECT TO CONFLICTS OF LAW PROVISIONS THEREOF WHICH
COULD RESULT IN THIS AGREEMENT BEING GOVERNED BY THE LAWS OF ANY OTHER
JURISDICTION), BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.
THIS AGREEMENT MAY NOT BE MODIFIED OR AMENDED ORALLY BUT ONLY BY AN INSTRUMENT
IN WRITING EXECUTED BY THE PARTIES AGAINST WHOM ENFORCEMENT OF ANY WAIVER,
CHANGE, MODIFICATION OR DISCHARGE IS SOUGHT.

                  10.2.    Counterparts. This Agreement may be executed in
several counterparts, each of which shall be deemed an original but all of which
shall constitute one agreement, and shall constitute a binding agreement when
executed by each of the parties hereto.

                  10.3.    Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the successors and assigns of the
parties hereto including any assignees of the Senior Indebtedness and/or the
Senior Indebtedness Agreements. Each Senior Lender agrees that it will not
assign any of the Senior Indebtedness absent an acknowledgment and acceptance by
the assignee thereof of the terms of this Agreement.

                  10.4.    Termination. This Agreement shall terminate upon the
payment in full of all Senior Indebtedness and termination of the Senior
Indebtedness Agreements.

                  10.5.    Cooperation. Each Senior Lender agrees (a) to provide
accurate information to the other Senior Lenders as to the amount of its
outstanding Senior Indebtedness and to promptly provide updated information to
correct any errors of which it becomes aware, (b) to cooperate fully with each
other Senior Lender, in the exercise of its reasonable judgment, to the end that
the terms and provisions of this Agreement may be promptly and fully carried
out, and (c) from time to time, to execute and deliver any and all other
agreements, documents or instruments and to take such other actions, all as may
be reasonably necessary or desirable to effectuate the terms, provisions and the
intent of this Agreement.

                  10.6.    No Third Party Beneficiaries. No Person, including,
without limitation, the Companies and their respective Affiliates, other than
the Senior Lenders, the Agent and their respective successors and assigns, shall
have any rights under this Agreement.

                  10.7.    Contesting Liens or Security Interests; No
Partitioning or Marshalling of Collateral: Contesting Senior Indebtedness.

                           (i) None of the Senior Lenders shall contest the
                  validity, perfection, priority or enforceability of or seek to
                  avoid, have declared fraudulent or have put aside any lien or
                  security interest granted to the Senior Lenders and each party
                  hereby agrees to cooperate in the defense of any action
                  contesting the validity, perfection, priority or
                  enforceability of such liens or security interests. Each party
                  shall also use its best efforts to notify the other parties of
                  any change in the location of any of the Collateral or the
                  business operations of any Company or of any change in law
                  which would make it necessary or advisable to file additional
                  financing statements in another location as against any
                  Company with respect to the liens and security interests
                  intended to be created by the Collateral Documents, but the
                  failure to do so shall not create a cause of action against
                  the party failing to give such notice or create any claim or
                  right on behalf of any other party to this Agreement and any
                  third party.

                                        7

<PAGE>

                           (ii) None of the Senior Lenders shall contest the
                  validity or enforceability of or seek to avoid, have declared
                  fraudulent or have set aside any Senior Indebtedness
                  (including, without limitation, any Guaranty Agreement). In
                  the event any Senior Indebtedness is invalidated, avoided,
                  declared fraudulent or set aside for the benefit of any
                  Company, the Senior Lenders agree that such Senior
                  Indebtedness shall nevertheless be considered to be
                  outstanding for all purposes of this Agreement.

                  10.8.    Bankruptcy Proceedings. Nothing contained herein
shall limit or restrict the independent right of any Senior Lender to initiate
an action or actions in any bankruptcy, reorganization, compromise, arrangement,
insolvency, readjustment of debt, dissolution or liquidation or similar
proceeding in its individual capacity and to appear to be heard on any matter
before the bankruptcy or other applicable court in any such proceeding,
including, without limitation, with respect to any question concerning the
post-petition usage of collateral and post-petition financing arrangements,
provided such initiating Senior Lender provides all other Senior Lenders notice
of the initiation of any such action prior thereto or as soon as practicable
thereafter. This Agreement shall survive the commencement of any such
bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of
debt, dissolution or liquidation or similar proceeding. Nothing contained herein
shall be deemed to supersede the class voting provisions for confirming a plan
of reorganization in any chapter 11 case of any of the Companies.

                  10.9.    Exercise of Remedies. Nothing contained herein shall
be deemed to require any Senior Lender to exercise any right of set-off or any
other remedy against any Company, whether arising under any Senior Indebtedness
Agreement or otherwise.

                  10.10.   Limitation on Liens. Except with respect to the
$50,000,000 Irrevocable Standby Letter of Credit No. 3056037 dated May 23, 2003,
issued by B of A, (a) neither the Agent nor any Senior Lenders shall take or
receive, nor permit to exist, a security interest in or lien upon any of the
property or assets of any Company as security for the payment of any
indebtedness of any Company other than the Senior Indebtedness, nor (b) shall
the Agent, nor any Senior Lender take or receive, nor permit to exist, a
security interest in or a lien upon any of the property or assets of any Company
as security for payment, other than any Senior Indebtedness. The existence of a
common law lien on deposit accounts shall not be prohibited by the provisions of
this Section 10.10 provided that any realization on such lien and the
application of the proceeds thereof shall be subject to the provisions of this
Agreement.

                  10.11.   Section Titles. The section titles contained in this
Agreement are and shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreement among the parties hereto.

                           [signature pages to follow]

                                        8

<PAGE>

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

                           LENDERS:

                           M & I MARSHALL & ILSLEY BANK as
                           Agent and Lender under the Credit Agreement

                           By: /s/ Patrick J. Haney
                              ----------------------------------
                           Attest: /s/ Brandon P. Moran

                           SUNTRUST BANK, as a Lender under
                           the Credit Agreement

                           By: /s/ [ILLEGIBLE]
                              ----------------------------------
                           Title: BANKING OFFICER

                           FIRST NATIONAL BANK OF OMAHA, as
                           a Lender under the Credit Agreement

                           By: /s/ Brock Taylor
                              ----------------------------------
                           Title: OFFICER

               [Signature Page 1 of 2 to Intercreditor Agreement]

                                       9
<PAGE>

                           FIFTH THIRD BANK INDIANA as a Lender
                           under the Credit Agreement

                           By: /s/ Andrew Cardimen
                              ----------------------------------
                           Title: VICE PRESIDENT

                           BANK OF AMERICA, N.A., as a lender under
                           the B of A Facility

                           By: /s/ SHELLY K. HARPER
                              ----------------------------------
                           Title: PRINCIPAL

Acknowledged and Agreed as of this 25th day of September, 2003:

NELNET, INC.

By: /s/ Terry Heimes
   ----------------------------------
Title: Chief Financial Officer
      -------------------------------

NATIONAL EDUCATION LOAN NETWORK, INC.

By: /s/ Terry Heimes
   ----------------------------------
Title: Chief Financial Officer
      -------------------------------

               [Signature Page 2 of 2 to Intercreditor Agreement]

                                       10

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