Document:

EXHIBIT 4.3

EXECUTION COPY

SALE AND SERVICING AGREEMENT

among

KEYCORP STUDENT LOAN TRUST 2000-B

as Issuer,

KEY BANK USA, NATIONAL ASSOCIATION

as Seller,

KEY BANK USA, NATIONAL ASSOCIATION

as Master Servicer,

BANK ONE, NATIONAL ASSOCIATION

not in its individual capacity but solely

as Eligible Lender Trustee,

and

KEY BANK USA, NATIONAL ASSOCIATION

as Administrator

Dated as of September 1, 2000

TABLE OF CONTENTS

Page

	ARTICLE I
	Definitions and Usage

	1

	ARTICLE II
	Conveyance of Financed Student Loans

	2

	    SECTION 2.01. 
	Conveyance of Initial Financed Student Loans

	2

	    SECTION 2.02.
	Conveyance of Subsequent Pool Student Loans and
Other Subsequent Student Loans

	2

	    SECTION 2.03.
	Conveyance of Financed Student Loans by the Eligible
Lender Trustee to the Seller in Connection with Consolidation
Loans

	4

	    SECTION 2.04.
	Endorsement

	5

	    SECTION 2.05.
	Sale Not Secured Financing

	5

	    SECTION 2.06.
	MPN Loans

	6

	ARTICLE III
	The Financed Student Loans

	7

	    SECTION 3.01.
	Representations and Warranties of Seller with Respect to the
Financed Student Loans

	7

	    SECTION 3.02.
	Repurchase upon Breach; Reimbursement

	11

	    SECTION 3.03.
	Custody of Financed Student Loan Files

	12

	    SECTION 3.04.
	Duties of Master Servicer as Custodian

	13

	    SECTION 3.05.
	Instructions; Authority To Act

	14

	    SECTION 3.06.
	Custodian's Indemnification

	14

	    SECTION 3.07.
	Effective Period and Termination

	15

	    SECTION 3.08.
	Schedule of Financed Student Loans

	15

	ARTICLE IV 
	Administration and Servicing of Financed Student Loans

	15

	    SECTION 4.01.
	Duties of Master Servicer

	15

	    SECTION 4.02.
	Collection of Financed Student Loan Payments

	17

	    SECTION 4.03.
	Realization upon Financed Student Loans

	19

	    SECTION 4.04.
	Computation of Note Interest Rate

	19

	    SECTION 4.05.
	No Impairment

	19

	    SECTION 4.06.
	Purchase of Financed Student Loans; Reimbursement

	20

	    SECTION 4.07.
	Master Servicing Fee

	20

	    SECTION 4.08.
	Administrator's Certificate; Servicer's Report

	21

	    SECTION 4.09.
	Annual Statement as to Compliance; Notice of Default

	22

	    SECTION 4.10.
	Annual Independent Certified Public Accountants' Report

	22

	    SECTION 4.11.
	Access to Certain Documentation and Information Regarding
Financed Student
Loans

	23

	    SECTION 4.12.
	 Master Servicer and Administrator Expenses

	24

	    SECTION 4.13. 
	Appointment of Sub-Servicers

	24

	    SECTION 4.14.
	Special Programs

	25

	    SECTION 4.15.
	Maintenance of Fidelity Bond and Errors and Omission Policy

	25

	ARTICLE V
	Distributions; Accounts; Statements to Noteholders

	25

	    SECTION 5.01.
	Establishment of Trust Accounts

	25

	    SECTION 5.02.
	Collections

	28

	    SECTION 5.03.
	Application of Collections

	29

	    SECTION 5.04.
	Additional Deposits

	29

	    SECTION 5.05.
	Distributions

	30

	    SECTION 5.06.
	Reserve Account

	32

	    SECTION 5.07.
	Statements to Noteholders

	34

	    SECTION 5.08.
	Pre-Funding Account

	36

	    SECTION 5.09. 
	Seller Optional Deposit

	39

	ARTICLE VI
	The Seller and the Administrator

	39

	    SECTION 6.01.
	Representations of Seller and Administrator

	39

	    SECTION 6.02.
	Existence

	41

	    SECTION 6.03.
	Liability of Seller; Indemnities

	41

	    SECTION 6.04.
	Liability of Administrator; Indemnities

	43

	    SECTION 6.05.
	Merger or Consolidation of, or Assumption of the
Obligations of, Seller or
Administrator

	43

 	    SECTION 6.06.
	Limitation on Liability of Seller, Administrator and
Others

	44

	    SECTION 6.07.
	Ownership by the Seller and Affiliates

	45

	    SECTION 6.08.
	Key Bank USA, National Association Not To Resign as Administrator

	45

	ARTICLE VII  
	The Master Servicer

	46

	    SECTION 7.01.
	Representations of Master Servicer

	46

	    SECTION 7.02.
	Indemnities of Master Servicer

	48

	    SECTION 7.03.
	Merger or Consolidation of, or Assumption of the
 Obligations of, Master
Servicer

	48

	    SECTION 7.04.
	Limitation on Liability of Master Servicer and Others

	49

	    SECTION 7.05.
	Key Bank USA, National Association, Not To Resign as
Master Servicer

	50

	ARTICLE VIII
	Default

	50

	    SECTION 8.01. 
	Master Servicer Default; Administrator Default

	50

	    SECTION 8.02.
	Appointment of Successor

	53

	    SECTION 8.03.
	 Notification to Noteholders

	54

	    SECTION 8.04.
	Waiver of Past Defaults

	54

	ARTICLE IX
	Termination

	55

	    SECTION 9.01.
	Termination

	55

	ARTICLE X
	Additional Provisions Regarding Financed Student Loans

	57

	    SECTION 10.01.
	Periodic Reports

	57

	    SECTION 10.02. 
	Cooperation

	58

	    SECTION 10.03.
	Confidentiality

	58

	    SECTION 10.04.
	Future Purchases

	58

	    SECTION 10.05.
	Private Guarantee Fee

	59

	    SECTION 10.06.
	Bids/First Refusal Rights

	59

	    SECTION 10.07.
	Consolidation Loans

	60

	ARTICLE XI 
	Miscellaneous

	60

	    SECTION 11.01.
	Amendment

	60

	    SECTION 11.02. 
	Protection of Interests in Trust

	61

	    SECTION 11.03.
	Notices

	64

	    SECTION 11.04. 
	Assignment

	64

	    SECTION 11.05.
	Limitations on Rights of Others

	65

	    SECTION 11.06.
	Severability

	65

	    SECTION 11.07.
	Separate Counterparts

	65

	    SECTION 11.08.
	Headings

	65

	    SECTION 11.09. 
	Governing Law

	65

	    SECTION 11.10.
	Assignment to Indenture Trustee

	65

	    SECTION 11.11
	Nonpetition Covenants

	65

	    SECTION 11.12.
	Limitation of Liability of Eligible Lender Trustee
and Indenture
Trustee

	66

	    SECTION 11.13.
	Consent of the Securities Insurer

	67

	APPENDIX A
	Definitions and Usage

	 

	SCHEDULE A
	Schedule of Initial Financed Student Loans

	 

	SCHEDULE B
	Schedule of Additional Student Loans

	 

	SCHEDULE C
	Location of Financed Student Loan Files

	 

	SCHEDULE D
	Provisions to be Audited Regarding
   Master Servicer (Sub-Servicers) and Administrator

	 

	SCHEDULE E 
	Servicing Fees Schedule

	 

	EXHIBIT A
	Form of Report to Noteholders

	 

	EXHIBIT B
	[RESERVED]

	 

	EXHIBIT C 
	[RESERVED]

	 

	EXHIBIT D
	Form of Assignment on Closing Date

	 

	EXHIBIT E
	Form of Transfer Agreement

	 

          SALE AND
SERVICING AGREEMENT dated as of September 1, 2000, among KEYCORP STUDENT LOAN
TRUST 2000-B, a Delaware statutory business trust (the “Issuer”), KEY
BANK USA, NATIONAL ASSOCIATION, a national banking association and successor in
interest to Society National Bank (the “Seller”), KEY BANK USA,
NATIONAL ASSOCIATION, a national banking association, as master servicer (the
“Master Servicer”), BANK ONE, NATIONAL ASSOCIATION, a national banking
association, solely as eligible lender trustee on behalf of the Issuer and not
in its individual capacity (the “Eligible Lender Trustee”), and KEY
BANK USA, NATIONAL ASSOCIATION, a national banking association, as administrator
(the “Administrator”). 

          
WHEREAS, the Seller intends to assign to the Issuer its rights in a portfolio of
undergraduate and graduate school student loans originated in the ordinary
course of business by the Seller or its predecessors, subject to revocation by
the Seller;

          
WHEREAS, the Seller intends to assign to the Issuer during a limited period
additional student loans it currently owns and student loans it may originate or
acquire in the future;

          
WHEREAS, the Issuer desires to purchase, and the Seller is willing to sell to
the Issuer, such student loans;

          
WHEREAS, the Eligible Lender Trustee is willing to hold legal title to, and
serve as eligible lender trustee with respect to, such student loans on behalf
of the Issuer;

          
WHEREAS, the Master Servicer is willing to master service such student loans;
and

          
WHEREAS, the Administrator is willing to undertake certain administrative
functions with respect to such student loans.

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

ARTICLE I

Definitions and Usage

          
Capitalized terms used but not defined herein are defined in Appendix A hereto,
which also contains rules as to usage and construction that shall be applicable
herein.

ARTICLE II

Conveyance of Financed Student Loans

          
SECTION 2.01.  Conveyance of Initial Financed Student
Loans.  In consideration of the Issuer's delivery to or upon the
order of the Seller on the Closing Date of the Certificates and of the net
proceeds from the sale of the Notes and the other amounts to be distributed from
time to time to the Seller in accordance with the terms of this Agreement, the
Seller (or, in the case of the Initial Financed Student Loans, Bank One,
National Association, as eligible lender trustee, on behalf of the Seller) does
hereby, as evidenced by a duly executed written assignment in the form of
Exhibit D, sell, transfer, assign, set over and otherwise convey to the Issuer
(or, in the case of the Initial Financed Student Loans, to the Eligible Lender
Trustee on behalf of the Issuer), without recourse (subject to the obligations
herein):

	 
	          
(i)  all right, title and interest of the Seller in and to the Initial
Financed Student Loans and all obligations of the Obligors thereunder, including
all moneys paid thereunder, and all written communications received by the
Seller with respect thereto (including borrower correspondence, notices of
death, disability or bankruptcy and requests for deferrals or forbearances), on
or after the Cutoff Date;

	 
	          
(ii)  all right, title and interest of the Seller under the Assigned Agreements
insofar as they relate to the Financed Guaranteed Private Loans but not with
respect to any other loans covered thereby (the “Assigned Rights”);

	 
	          (iii)  all right, title and interest of the Seller in and to all funds on deposit
from time to time in the Trust Accounts, including, but not limited to, the
Reserve Account Initial Deposit and the Pre-Funded Amount (including all income
thereon); and

	 
	          (iv)  the
proceeds of any and all of the foregoing.

          
SECTION 2.02.  Conveyance of Subsequent Pool Student Loans and Other
Subsequent Student Loans.  (a) Subject to the conditions set forth in
paragraph (b) below, in consideration of the Issuer's delivery on the related
Transfer Date to or upon the order of the Seller of the amount described in
Section 5.08(a) to be delivered to the Seller, the Seller does hereby sell,
transfer, assign, set over and otherwise convey to the Eligible Lender Trustee
on behalf of the Issuer, without recourse (subject to the obligations herein)
all right, title and interest of the Seller in and to each Subsequent Pool
Student Loan and each Other Subsequent Student Loan, and all obligations of the
Obligors thereunder including all moneys paid thereunder, and all written
communications received by the Seller with respect thereto (including borrower
correspondence, notices of death, disability or bankruptcy and requests for
deferrals or forbearances), on and after the related Subsequent Cutoff Date,
made from time to time during the Funding Period.

          (b)
The Seller shall transfer to the Eligible Lender Trustee on behalf of the Issuer
the Subsequent Pool Student Loans and/or the Other Subsequent Student Loans for
a given Transfer Date and the other property and rights related thereto
described in paragraph (a) above only upon the satisfaction of each of the
following conditions on or prior to such Transfer Date: 

	 
	          
(i)  the Seller shall have delivered to the Eligible Lender Trustee
and the Indenture Trustee, with copies to the Securities Insurer and the Swap
Counterparty, a duly executed written assignment (including an acceptance by the
Eligible Lender Trustee and the Indenture Trustee) in substantially the form of
Exhibit E (each, a “Transfer Agreement”), which shall include
supplements to Schedule B listing such Subsequent Pool Student Loans and/or the
Other Subsequent Student Loans, as applicable;

	 
	          
(ii)  except any of the Additional Student Loans transferred on the
Closing Date or the day immediately following, the Seller shall have delivered,
at least two days prior to such Transfer Date, notice of such transfer to
the Eligible Lender Trustee, the Indenture Trustee, the Securities Insurer and
the Swap Counterparty, and the Rating Agencies, including a listing of the
designation and the aggregate principal balance of such Subsequent Pool Student
Loans or Other Subsequent Student Loans, as the case may be;

	 
	          
(iii)  the Seller shall, to the extent required by Section 5.02, have
deposited in the Collection Account all collections in respect of the Subsequent
Pool Student Loans and/or Other Subsequent Student Loans on and after each
applicable Subsequent Cutoff Date;

	 
	          
(iv)  as of each Transfer Date, the Seller was not insolvent nor will
it have been made insolvent by such transfer nor is it aware of any pending
insolvency;

	 
	          
(v)  such addition will not result in a material adverse Federal or
State tax consequence to the Issuer or the holders of Notes;

	 
	          
(vi)  the Funding Period shall not have terminated and, with respect
to Subsequent Pool Student Loans, the Transfer Date is on or prior to the
Special Determination Date;

	 
	          
(vii)  the Seller shall have delivered to the Indenture Trustee and
the Eligible Lender Trustee, with copies to the Securities Insurer and the Swap
Counterparty, an Officers' Certificate confirming the satisfaction of each
condition precedent specified in this paragraph (b);

	 
	          
(viii)  the Seller shall have delivered (A) to the Rating
Agencies, with copies to the Securities Insurer and the Swap Counterparty, an
Opinion of Counsel with respect to the transfer of the Subsequent Pool Student
Loans and/or Other Subsequent Student Loans transferred on such Transfer Date,
substantially in the form of the Opinion of Counsel delivered to the Rating
Agencies, the Securities Insurer and the Swap Counterparty, on the Closing Date,
and (B) to the Eligible Lender Trustee, the Securities Insurer, the Swap
Counterparty and the Indenture Trustee the Opinion of Counsel required by
Section 11.02(i)(1);

	 
	          
(ix)  the Seller shall have taken any action required to maintain the
first perfected ownership interest of the Issuer in the Trust Estate and the
first perfected security interest of the Indenture Trustee in the Collateral;

	 
	          
(x)  no selection procedures believed by the Seller to be adverse to
the interests of the holders of Notes, the Securities Insurer or the Swap
Counterparty shall have been utilized in selecting the Subsequent Pool Student
Loans or the Other Subsequent Student Loans;

	 
	          
(xi)  no Consolidation Loan will be transferred to the Issuer unless
at least one underlying student loan to be consolidated is a Financed Student
Loan already held by the Eligible Lender Trustee on behalf of the Issuer; and

	 
	          
(xii)  with respect to each Subsequent Pool Student Loan or Other
Subsequent Student Loan that is also an MPN Loan, the representations and
warranties of the Seller contained in Section 2.06 hereof, will be true and
correct on the related Transfer Date, and the Seller will adhere to the
covenants set forth in Section 2.06 with respect to such Transferred MPN Loan.

provided, however, that the Seller shall not incur
any liability as a result of transferring Subsequent Pool Student Loans or Other
Subsequent Student Loans on any Transfer Date at a time when the condition set
forth in clause (v) was not satisfied, if at the time of such transfer the
Authorized Officers of the Seller, after reasonable inquiry of in-house counsel
to the Seller, were not aware of any fact that would reasonably suggest that
such condition would not be satisfied as of such date. 

          (c)
The Seller covenants to transfer during the Funding Period to the Eligible
Lender Trustee on behalf of the Issuer pursuant to paragraph (a) above
Other Subsequent Student Loans and Subsequent Pool Student Loans with an
aggregate principal balance of not less than $38,055,411 (less amounts withdrawn
from the Other Additional Pre-Funding Subaccount pursuant to Section 5.08(d) of
this Agreement); provided, however, that the Seller shall have no
liability for a breach of the foregoing covenant as a result of the Seller not
having made or owned prior to the date hereof Other Subsequent Student Loans and
Subsequent Pool Student Loans equal to the amount specified above during the
Funding Period or there being insufficient funds available in the Escrow Account
and the Pre-Funding Account for the Eligible Lender Trustee to consummate such
acquisitions on behalf of the Issuer. 

          
SECTION 2.03.  Conveyance of Financed Student Loans by the Eligible
Lender Trustee to the Seller in Connection with Consolidation
Loans.  On any date, upon receipt of written notice (or telephonic
or facsimile notice followed by written notice) from the Seller (or from the
Master Servicer (or a Sub-Servicer) on behalf of the Seller) by the Eligible
Lender Trustee and the Indenture Trustee, the Eligible Lender Trustee, on behalf
of the Issuer, will convey to the Seller the Financed Student Loans identified
in such notice, which are to be repaid pursuant to the Consolidation Loans to be
made by the Seller.

          
SECTION 2.04.  Endorsement.  The Seller hereby
appoints each of the Eligible Lender Trustee and the Indenture Trustee as the
Seller's true and lawful attorney-in-fact with full power of substitution to
endorse the Seller's name on any promissory note evidencing the Initial Financed
Student Loans and any Additional Student Loans transferred to the Eligible
Lender Trustee on behalf of the Trust pursuant to Sections 2.01 and 2.02. The
Seller acknowledges and agrees that this power of attorney shall be construed as
a power coupled with an interest, shall be irrevocable as long as the Trust
Agreement remains in effect and shall continue in effect until the Trust
Agreement terminates.

          
SECTION 2.05.  Sale Not Secured Financing.  It is the
express intent of the parties hereto that each conveyance of the Financed
Student Loans by the Seller to the Issuer, as contemplated by this Agreement be
(and be treated as) a sale. It is, further, not the intention of the parties
that such conveyance be deemed a pledge of any such Financed Student Loans by
the Seller to the Issuer to secure a debt or other obligation of the Seller.
However, in the event that, notwithstanding the intent of the parties, any of
the Financed Student Loans are held by a court to continue to be property of the
Seller, then (a) this Agreement shall also be deemed to be a security agreement
within the meaning of Articles 8 and 9 of the applicable Uniform Commercial
Code; (b) the transfer of such Financed Student Loans provided for herein shall
be deemed to be a grant by the Seller to the Issuer of a security interest in
all of the Seller's right, title and interest in and to such Financed Student
Loans and all amounts payable to the holders of such Financed Student Loans in
accordance with the terms thereof and all proceeds of the conversion, voluntary
or involuntary, of the foregoing into cash, instruments, securities or other
property, to the extent the Issuer would otherwise be entitled to own such
Financed Student Loans and proceeds pursuant to Article II hereof, including all
amounts, other than investment earnings, from time to time held or invested in
any Trust Accounts created pursuant to this Agreement, whether in the form of
cash, instruments, securities or other property; (c) the possession by the
Sub-Servicers of each Financed Student Loan File or by the Indenture Trustee of
each applicable Trust Account, and such other items of property as constitute
instruments, money, negotiable documents or chattel paper shall be deemed to be
"possession by the secured party" for purposes of perfecting the security
interest pursuant to Section 9-305 (or comparable provision) of the applicable
Uniform Commercial Code; and (d) notifications to persons holding such property,
and acknowledgments, receipts or confirmations from persons holding such
property, shall be deemed notifications to, or acknowledgments, receipts or
confirmations from, financial intermediaries, bailees or agents (as applicable)
of the Issuer for the purpose of perfecting such security interest under
applicable law. Any assignment of the interest of the Issuer pursuant to any
provision hereof or pursuant to the Indenture shall also be deemed to be an
assignment of any security interest created hereby. The Seller and the Issuer
shall, to the extent consistent with this Agreement, take such actions as may be
reasonably necessary to ensure that, if this Agreement were deemed to create a
security interest in the Financed Student Loans, such security interest would be
deemed to be a perfected security interest of first priority under applicable
law and will be maintained as such throughout the term of the this Agreement and
the Indenture.

          
SECTION 2.06.  MPN Loans.  With respect to each
Transferred MPN Loan and each related Master Note, the Seller, as MPN Holder,
hereby represents and warrants, and, on an on-going basis, hereby covenants s
follows:

	 
	          
(A)  Transfer of Beneficial Interest in Transferred MPN Loan.
Each Transferred MPN Loan represents a 100% beneficial interest in such MPN
Loan, and is being transferred to the Issuer pursuant to this Agreement. The MPN
Holder shall hold bare legal title to the Master Note solely for the benefit of
all MPN Loan Holders; provided, however, that the MPN Holder may
be also be an MPN Loan Holder. The sale of an MPN Loan excludes an assignment of
the Seller’s right to offer future MPN Loans under a Master Note. The MPN
Holder shall not provide to MPN Loan Holders more than one copy of the Master
Note for each MPN Loan, to be marked “Official Copy” in red ink.

	 
	          
(B)  Custody of Master Note. The MPN Holder shall hold, or
cause the Master Servicer or a Sub-Servicer to hold, the Master Note underlying
each Transferred MPN Loan for the use and benefit of all present and future MPN
Loan Holders. The MPN Holder shall maintain, or cause the Master Servicer or a
Sub-Servicer to maintain, continuous and exclusive possession, dominion and
control over the Master Note and related documents. The MPN Holder shall not
sell, transfer, assign or pledge any such Master Note except as is otherwise
agreed to between the MPN Holder and the Securities Insurer.

	 
	          
(C)  MPN Loan Transfers. The MPN Holder shall maintain
book-entry records with respect to the identity of present and future MPN Loan
Holders. The MPN Holder shall not transfer or register the transfer of any MPN
Loan to any other person except in accordance with the instructions of the
person identified on its books and records as the MPN Loan Holder.

	 
	          
(D)  MPN Loan Modification; Subsequent Advances; Copies of
Master Note. The MPN Holder shall not agree to any modification, waiver,
forbearance or amendment of any term of any Transferred MPN Loan other than as
provided in Section 4.01 of this Agreement. The MPN Holder shall make no
subsequent advances to a borrower under the related Master Note except pursuant
to a separate MPN Loan. The MPN Holder shall not provide to any person other
than an MPN Loan Holder any copy of a Master Note except to the Master Servicer
or a Sub-Servicer for administrative purposes or for the MPN Holder’s
internal administrative purposes.

	 
	          
(E)  Access to Information. The MPN Holder shall furnish to the
Securities Insurer or the Indenture Trustee from time to time upon written
request of the Securities Insurer or the Indenture Trustee (i) a list of
the names and addresses of all MPN Loan Holders, (ii) a list containing the
names and social security numbers of the borrowers under the related Master
Notes, (iii) access to inspect the Master Notes and related records upon
reasonable advance notice, and (iv) such other information with respect to the
Master Notes which is reasonably requested by the Securities Insurer or the
Indenture Trustee.

	 
	          
(F)  Resignation or Removal of MPN Holder. The MPN Holder may
at any time resign by giving written notice thereof to the Securities Insurer
and the Indenture Trustee and delivering all related Master Notes to a successor
MPN Holder, which agrees to the terms of this Agreement, or to the Indenture
Trustee. If at any time the MPN Holder shall fail to perform its duties
hereunder, or shall be adjudged bankrupt or insolvent, then the Securities
Insurer may remove the MPN Holder and appoint a successor MPN Holder, which
agrees to the terms of this Agreement by written instrument, a copy of which
instrument shall be delivered to the MPN Holder so removed, or may require the
MPN Holder to deliver the related Master Notes to the Indenture Trustee.

	 
	          
(G)  MPN Holder Other Than Seller. So long as the Seller has
not transferred all of its right, title and interest in a related Master Note,
if the Seller is not the MPN Holder, the Seller shall cause such other MPN
Holder to perform all covenants of the MPN Holder set forth in this Agreement.

	 
	          
(H)  Financing Statements and Further Assurances. The Seller
will cause to be filed all necessary financing statements or other instruments,
and any amendments or continuation statements relating thereto, necessary to be
kept and filed in such manner and in such places as may be required by law to
give to and maintain (i) with the Eligible Lender Trustee, on behalf of the
Issuer, a first priority perfected ownership interest in such MPN Loans, and
(ii) with the Indenture Trustee, for the benefit of the Noteholders, a
first priority perfected security interest in such MPN Loans. The Seller shall,
upon the request of the Securities Insurer, from time to time, execute,
acknowledge and deliver, or cause to be executed, acknowledged and delivered,
within 10 days of such request, such amendments to the Basic Documents and such
further instruments and take such further action as may be reasonably necessary
to maintain such first priority perfected ownership and security interests.

ARTICLE III

The Financed Student Loans

          
SECTION 3.01.  Representations and Warranties of Seller with
Respect to the Financed Student Loans.  The Seller makes the
following representations and warranties as to the Financed Student Loans on
which the Issuer is deemed to have relied in acquiring (through the Eligible
Lender Trustee) the Financed Student Loans. Such representations and warranties
speak as of the execution and delivery of this Agreement and as of the Closing
Date, in the case of the Initial Financed Student Loans and the Subsequent Pool
Student Loans, and as of the applicable Transfer Date, in the case of the Other
Subsequent Student Loans, but shall survive the sale, transfer and assignment of
the Financed Student Loans to the Eligible Lender Trustee on behalf of the
Issuer and the pledge thereof to the Indenture Trustee pursuant to the
Indenture.

          
(i)  Characteristics of Financed Student Loans.  Each
Financed Student Loan (A) was originated in the United States of America, its
territories, its possessions or other areas subject to its jurisdiction by the
Seller (or originated by another lender in the United States of America and
purchased by the Seller) in the ordinary course of its business to an eligible
borrower under applicable law and agreements and was fully and properly executed
by the parties thereto and (B) provides or, when the payment schedule with
respect thereto is determined, will provide for payments on a periodic basis
that fully amortize the principal amount of such Financed Student Loan by its
maturity and yield interest at the rate applicable thereto, as such maturity may
be modified in accordance with any applicable deferral or forbearance periods
granted in accordance with applicable laws and restrictions, including those of
the Higher Education Act, any Guarantee Agreement or the Programs. Each Financed
Student Loan that is a Financed Federal Loan qualifies the holder thereof to
receive Interest Subsidy Payments (other than SLS Loans, unsubsidized Stafford
Loans and certain Consolidation Loans) and Special Allowance Payments from the
Department and Guarantee Payments from the applicable Guarantor and qualifies
the applicable Guarantor to receive reinsurance payments thereon from the
Department. Each Financed Student Loan that is a Financed Guaranteed Private
Loan qualifies the holder thereof to receive Guarantee Payments from the
applicable Guarantor pursuant to the related Guarantee Agreement.

          
(ii)  Schedules of Financed Student Loans.  The
information set forth in Schedules A and B to this Agreement and Schedule A to
the related Transfer Agreement is true and correct in all material respects as
of the opening of business on the Cutoff Date (with respect to Schedules A and B
to this Agreement) or each applicable Subsequent Cutoff Date, as applicable, and
no selection procedures believed to be adverse to the holders of Notes, the
Securities Insurer or the Swap Counterparty were utilized in selecting the
Initial Financed Student Loans or the Additional Student Loans, as applicable.
The computer tape regarding the Initial Financed Student Loans and the
Subsequent Pool Student Loans made available to the Issuer, its assigns, the
Securities Insurer and Swap Counterparty is true and correct in all respects as
of the Cutoff Date. There will be no material changes made to either Schedule A
or Schedule B to this Agreement (with respect to the Initial Financed Student
Loans or the Subsequent Pool Student Loans) prior to the Special Determination
Date without the acknowledgement of the Rating Agencies that such material
change will not affect the ratings assigned to any Class of the Notes (without
regard to the Securities Guaranty Insurance Policy).

          
(iii)  Compliance with Law.  Each Financed Student Loan complied
at the time it was originated or made and at the execution of this Agreement or
the applicable Transfer Agreement, as the case may be, complies, and the Seller
and its agents, with respect to each such Financed Student Loan, have at all
times complied, in all material respects with all requirements of applicable
Federal, state and local laws and regulations thereunder, including the Higher
Education Act, usury law, the Federal Truth-in-Lending Act, the Equal Credit
Opportunity Act, the Federal Reserve Board’s Regulation B and other
consumer credit laws and equal credit opportunity and disclosure laws and all
applicable requirements of any Guarantee Agreements.

          
(iv)  Binding Obligation.  Each Financed Student Loan
represents the genuine, legal, valid and binding payment obligation in writing
of the borrower thereof, enforceable by or on behalf of the holder thereof in
accordance with its terms, and no Financed Student Loan has been satisfied,
subordinated or rescinded, subject to clause (xiii) below.

          
(v)  No Defenses.  No right of rescission, setoff,
counterclaim or defense has been asserted or threatened or exists with respect
to any Financed Student Loan.

          
(vi)  No Default.  No Initial Financed Student Loan
or Subsequent Pool Student Loan has a payment that is more than 180 days overdue
as of the Cutoff Date or, with respect to the Other Subsequent Student Loans,
more than 90 days overdue as of the applicable Subsequent Cutoff Date, as the
case may be, and, except as permitted in this paragraph, no default, breach,
violation or event permitting acceleration under the terms of any Financed
Student Loan has occurred; and, except for payment defaults continuing for a
period of not more than 150 days or 90 days, as applicable, no continuing
condition that with notice or the lapse of time or both would constitute a
default, breach, violation or event permitting acceleration under the terms of
any Financed Student Loan has arisen; and the Seller has not waived and shall
not waive any of the foregoing other than as permitted by the Basic
Documents.

          
(vii)  Title.  It is the intention of the Seller that
the transfer and assignment herein contemplated constitute a sale of the
Financed Student Loans from the Seller to the Eligible Lender Trustee on behalf
of the Issuer and that the beneficial interest in and title to such Financed
Student Loans not be part of the debtor’s estate in the event of the
appointment of a receiver with respect to the Seller. No Financed Student Loan
has been sold, transferred, assigned or pledged by the Seller to any Person
other than the Eligible Lender Trustee on behalf of the Issuer. Immediately
prior to the transfer and assignment herein contemplated, the Seller had good
title to each Financed Student Loan, free and clear of all Liens and,
immediately upon the transfer thereof, the Eligible Lender Trustee on behalf of
the Issuer shall have good title to each such Financed Student Loan, free and
clear of all Liens or the transfer shall have been perfected under the UCC.

          
(viii)  Lawful Assignment.  No Financed Student Loan
has been originated in, or is subject to the laws of, any jurisdiction under
which the sale, transfer and assignment of such Financed Student Loan or any
Financed Student Loan under this Agreement, each Transfer Agreement or the
Indenture is unlawful, void or voidable.

          
(ix)  Security Interest Perfected; Delivery of Loan
Files.  All filings (including UCC filings) and/or delivery
requirements necessary in any jurisdiction to give the Eligible Lender Trustee
on behalf of the Issuer a first perfected ownership interest in the Financed
Student Loans, and to give the Indenture Trustee a first perfected security
interest therein, have been made or satisfied, as the case may be. A Financed
Student Loan File has been delivered to the Master Servicer (or a Sub-Servicer)
for each Financed Student Loan and each such file contains the original fully
executed note (or a copy of a fully executed master promissory note) evidencing
such Financed Student Loan.

          
(x)  One Original.  There is only one original executed copy
of the promissory note evidencing each Financed Student Loan.

          
(xi)  Principal Balance.  The aggregate principal
balance of the Initial Financed Student Loans, plus accrued interest to be
capitalized with respect thereto, as of the Statistical Cutoff Date, is
$548,653,496, and the aggregate principal balance of the Subsequent Pool Student
Loans, plus accrued interest to be capitalized with respect thereto, as of the
Statistical Cutoff Date, is $38,055,411.

          
(xii)  No Claims.  As of the Cutoff Date, no claim
for payment with respect to an Initial Financed Student Loan has been made to a
Guarantor, and as of the related Subsequent Cutoff Date no claim for payment
with respect to an Additional Student Loan will have been made.

          
(xiii)  No Bankruptcies or Deaths.  No borrower of
any Financed Student Loan as of September 1, 2000 (in the case of the Initial
Financed Student Loans), or the applicable Subsequent Cutoff Date (in the case
of Additional Student Loans) was noted in the related Financed Student Loan File
as being currently involved in a bankruptcy proceeding or as having died.

          
(xiv)  Interest Accruing.  Each Financed Student Loan
is accruing interest (whether or not such interest is being paid currently, by
the borrower or by the Department, or is being capitalized), except as otherwise
expressly permitted by the Basic Documents.

          
(xv)  No Government Borrower.  No borrower of a
Financed Student Loan is the United States of America or any State or any
agency, department, subdivision or instrumentality thereof.

          
(xvi)  Origination.  Each Financed Student Loan was
originated in the United States of America, its territories, its possessions or
other areas subject to its jurisdiction, and was originated or purchased for
value by the Seller thereof in the ordinary course of its business. The Seller
had all necessary licenses and permits to originate or purchase the Financed
Student Loan at the time of its origination or purchase of such Financed Student
Loan.

          
(xvii)  Origination Practices.  The origination
practices used by the originator or the Seller with respect to the Financed
Student Loans have been in all respects in compliance with all applicable laws
and regulations.

          
(xviii)  Conformance with Underwriting
Guidelines.  Each Financed Student Loan constituting a Financed
Private Loan was underwritten in accordance with the guidelines in existence as
of the Closing Date and made available to the Underwriters, the Securities
Insurer and the Rating Agencies.

          
(xix)  No Sub-Prime Student Loans.  The Financed
Student Loans do not and will not include any Financed Student Loans originated
to individuals who have previously defaulted on their student loans.

          
(xx)  No Non-Performing Loans.  No Financed Student
Loan, as of the Statistical Cutoff Date, is in default nor does the Seller
expect to write-off any amount thereof as a loss.

          
(xxi)  Cohort Default Rates.  With respect to the
Initial Financed Student Loans and the Subsequent Pool Student Loans only, and
based on the most recently published Cohort Default Rates available on the
Closing Date, no Financed Student Loans made to borrowers attending educational
institutions with published Cohort Default Rates greater than twenty percent
(20%) have been sold by the Seller to the Issuer if, and to the extent that,
such acquisition would cause the aggregate principal amount of Financed Student
Loans included in the Trust Estate made to borrowers attending educational
institutions with published Cohort Default Rates greater than twenty percent
(20%) to exceed eight percent (8%) of the aggregate principal amount of Financed
Student Loans sold to the Issuer pursuant to this Agreement.

          
(xxii)  Instrument.  Each promissory note executed by
a borrower evidencing a Financed Student Loan (other than any master promissory
note) constitutes an "instrument" within the meaning of the UCC as in effect in
the states in which each such borrower resides at origination.

          
(xxiii)  Seller's Representations.  The representations and
warranties of the Seller contained in Section 6.01 hereof are true and correct.

          
(xxiv)  MPN Loans.  With respect to each Financed
Student Loan that is also an MPN Loan, the representations and warranties of the
Seller contained in Section 2.06 hereof are true and correct, and the Seller
will adhere to the covenants set forth in Section 2.06 with respect to such
Transferred MPN Loans.

          SECTION
3.02.  Repurchase upon Breach; Reimbursement.  The
Seller, the Master Servicer or the Eligible Lender Trustee, as the case may be,
shall inform the other parties to this Agreement, the Securities Insurer, the
Swap Counterparty, and the Indenture Trustee promptly, in writing, upon the
discovery of any breach of the Seller’s representations, warranties or
covenants made pursuant to Section 3.01 or Section 6.01. Unless any such
breach shall have been cured within 60 days following the discovery thereof
by the Eligible Lender Trustee or receipt by the Eligible Lender Trustee of
written notice from the Seller, the Securities Insurer or the Master Servicer of
such breach, the Seller shall be obligated to repurchase any Financed Student
Loan in which the interests of the holders of Notes, the Swap Counterparty or
the Securities Insurer are materially and adversely affected (in each case
unless a Securities Insurer Default has occurred and is continuing) as
determined by the Securities Insurer, by any such breach as of the first day
succeeding the end of such 60-day period that is the last day of a Collection
Period; provided that it is understood that any such breach that does not affect
any Guarantor’s obligation to guarantee payment of each Financed Student
Loan that is a Financed Guaranteed Loan to the Eligible Lender Trustee in
accordance with the related Guarantee Agreements will not be considered to have
a material adverse effect for this purpose. In consideration of and
simultaneously with the repurchase of the Financed Student Loan, the Seller
shall remit the Purchase Amount, in the manner specified in Section 5.04, and
the Issuer shall execute such assignments and other documents reasonably
requested by the Seller in order to effect such transfer. Upon any such transfer
of a Financed Student Loan, legal title to, and beneficial ownership and control
of, the related Financed Student Loan File will thereafter belong to the Seller.
In addition, if any such breach by the Seller does not trigger such a repurchase
obligation but does result in the refusal by a Federal Guarantor to guarantee
all or a portion of the accrued interest, or the loss (including any obligation
of the Issuer to repay to the Department) of certain Interest Subsidy Payments
and Special Allowance Payments, with respect to a Financed Federal Loan, then,
unless such breach, if curable, is cured within 60 days, the Seller shall
reimburse the Issuer by remitting an amount equal to the sum of all such
non-guaranteed interest amounts and such forfeited Interest Subsidy Payments and
Special Allowance Payments in the manner specified in Section 5.04. Subject
to the provisions of Section 6.03 hereof, and Section 3.04(b) of the
Insurance Agreement, the sole remedy of the Issuer, the Eligible Lender Trustee,
the Indenture Trustee, the holders of Notes, the Securities Insurer and Swap
Counterparty with respect to a breach of representations and warranties pursuant
to Section 3.01 and the agreement contained in this Section shall be to
require the Seller to repurchase Financed Student Loans or to reimburse the
Issuer as provided above pursuant to this Section, subject to the conditions
contained herein. 

          
SECTION 3.03.  Custody of Financed Student Loan
Files.  To assure uniform quality in servicing the Financed
Student Loans and to reduce administrative costs, the Issuer hereby appoints the
Master Servicer, and the Master Servicer hereby accepts such appointment, to act
for the benefit of the Issuer and the Indenture Trustee as custodian of the
following documents or instruments related to the Financed Student Loans (as set
forth in Schedules A and B hereto), which are also hereby constructively
delivered to the Indenture Trustee, as pledgee of the Issuer (or, in the case of
the Additional Student Loans, will be, as of the applicable Transfer Date,
constructively delivered to the Indenture Trustee, as pledgee of the Issuer)
with respect to each Financed Student Loan:

          
(a)  the original fully executed copy of the note (or a copy of a
fully executed master promissory note) evidencing the Financed Student Loan;

          
(b)  the original loan application fully executed by the borrower;
and

          (c)  any
and all other documents and computerized records that any of the Master Servicer
(or a Sub-Servicer on behalf of the Master Servicer), the Administrator or the
Seller shall keep on file, in accordance with its customary procedures, relating
to such Financed Student Loan or any Obligor with respect thereto. 

          Notwithstanding
the foregoing, and without releasing the Master Servicer from its duties and
obligations hereunder, for so long as Key Bank USA, National Association, or an
affiliate thereof, is the Master Servicer hereunder, the Master Servicer shall
(and in all other cases, may) appoint one or more Sub-Servicers to act as
“custodian” on behalf of the Issuer and the Indenture Trustee (but at
the direction of the Master Servicer) with respect to the Financed Student Loans
such Sub-Servicer is servicing, in each case consistent with the terms of this
Article III, and all references to the Master Servicer, as custodian shall be
read to apply to such Sub-Servicer acting as custodian pursuant to this
Agreement and the related subservicing agreement; and, provided, further, that
if Key Bank USA, National Association is the Master Servicer, the Master
Servicer shall not replace such Sub-Servicer unless and until a successor
Sub-Servicer assumes the role of “custodian” on behalf of the Issuer
and the Indenture Trustee with respect to all the Financed Student Loans it will
be servicing. Notwithstanding the foregoing, the Master Servicer shall be
responsible hereunder for any breaches by any Sub-Servicer of its obligations as
custodian hereunder. 

          The appointment
of the Master Servicer or any Sub-Servicer as custodian hereunder is for
administrative purposes only and does not, and is not intended to, transfer any
of the Issuer’s or the Indenture Trustee’s right, title or interest in
or to the Initial Financed Student Loans (or Additional Student Loans) to the
Master Servicer or such Sub-Servicer and the Master Servicer hereby acknowledges
(and each Sub-Servicer in the related subservicing agreement acknowledges) that
it has not and will not obtain any such right, title or interest in or to such
Initial Financed Student Loans (or Additional Student Loans). The Master
Servicer (so long as it is Key Bank USA, National Association) hereby
acknowledges that it does not currently have possession, and agrees that it will
not at any time in the future take physical possession, of any Financed Student
Loan Files. 

          
SECTION 3.04.  Duties of Master Servicer as
Custodian.  (a)  Safekeeping. The Master Servicer, as
custodian, shall (or shall cause the applicable Sub-Servicers to) hold the
Financed Student Loan Files for the benefit of the Issuer and the Indenture
Trustee and maintain such accurate and complete accounts, records and computer
systems pertaining to each Financed Student Loan File as shall enable the Issuer
to comply with this Agreement. In performing its duties as custodian the Master
Servicer shall (or shall cause the applicable Sub-Servicers to) act with
reasonable care, using that degree of skill and attention that the Master
Servicer (or such Sub-Servicer) exercises with respect to the student loan files
relating to all comparable student loans that the Master Servicer (or such
Sub-Servicer) services and shall ensure that it complies fully and completely
with all applicable Federal and State laws, including the Higher Education Act,
with respect thereto. The Master Servicer shall (or shall cause the applicable
Sub-Servicers to) conduct, or cause to be conducted, periodic audits of the
Financed Student Loan Files held by it under this Agreement and of the related
accounts, records and computer systems, in such a manner as shall enable the
Issuer or the Indenture Trustee to verify the accuracy of the Master Servicer's
(or such Sub-Servicer's) record keeping. The Master Servicer shall (or shall
cause the applicable Sub-Servicers to) promptly report to the Issuer and the
Indenture Trustee any failure on its part (or on the part of a Sub-Servicer) to
hold the Financed Student Loan Files and maintain its accounts, records and
computer systems as herein provided and promptly take appropriate action to
remedy any such failure. The Master Servicer shall (or shall cause each
Sub-Servicer) to deliver the Trust Receipts to the Issuer, the Indenture
Trustee, the Securities Insurer and the Swap Counterparty on the Closing Date.
Nothing herein shall be deemed to require any periodic review by the Issuer, the
Eligible Lender Trustee or the Indenture Trustee of the Financed Student Loan
Files.

          
(b)  Maintenance of and Access to Records.  The
Master Servicer, as custodian, shall (or shall cause the applicable
Sub-Servicers to) maintain each Financed Student Loan File at one of its offices
(or the offices of the applicable Sub-Servicer) specified in Schedule C to this
Agreement or at such other office as shall be specified by written notice to the
Issuer, the Securities Insurer and the Indenture Trustee not later than 60 days
prior to any change in location. Upon reasonable prior notice, the Master
Servicer shall (or shall cause the applicable Sub-Servicers to) make available
to the Issuer, the Securities Insurer and the Indenture Trustee or their
respective duly authorized representatives, attorneys or auditors a list of
locations of the Financed Student Loan Files and the related accounts, records
and computer systems maintained by the Master Servicer (or such Sub-Servicer) at
such times during normal business hours as the Issuer or the Indenture Trustee
shall instruct.

          
(c)  Release of Documents.  Upon instruction from the
Indenture Trustee, the Master Servicer, as custodian, shall (or shall cause the
applicable Sub-Servicers to) release any Financed Student Loan File to the
Indenture Trustee, the Indenture Trustee's agent, or the Indenture Trustee's
designee, as the case may be, at such place or places as the Indenture Trustee
may designate, as soon as practicable.

          
SECTION 3.05.  Instructions; Authority To Act.  The
Master Servicer, as custodian, shall be deemed to have received proper
instructions with respect to the Financed Student Loan Files upon its receipt of
written instructions signed by a Responsible Officer of the Indenture Trustee.

          
SECTION 3.06.  Custodian's Indemnification.  The
Master Servicer as custodian shall pay for any loss, liability or expense,
including reasonable attorney's fees, that may be imposed on, incurred by or
asserted against the Issuer, the Eligible Lender Trustee, the Securities Insurer
or the Indenture Trustee or any of their officers, directors, employees and
agents as the result of any improper act or omission in any way relating to the
maintenance and custody by the Master Servicer (or any Sub-Servicer) as
custodian of the Financed Student Loan Files where the final determination that
any such improper act or omission by the Master Servicer resulted in such loss,
liability or expense is established by a court of law, by an arbitrator or by
way of settlement agreed to by the Master Servicer; provided, however, that the
Master Servicer shall not be liable to the Eligible Lender Trustee for any
portion of any such amount resulting from the willful misfeasance, bad faith or
negligence of the Eligible Lender Trustee and the Master Servicer shall not be
liable to the Indenture Trustee for any portion of any such amount resulting
from the willful misfeasance, bad faith or negligence of the Indenture Trustee.

          
SECTION 3.07.  Effective Period and Termination.  The
appointment of the Master Servicer as custodian shall become effective as of the
Closing Date and shall continue in full force and effect for so long as the
Master Servicer shall remain the Master Servicer hereunder, subject to the
requirements of Section 3.03 hereof. If the Master Servicer or any successor
Master Servicer shall resign as Master Servicer in accordance with the
provisions of this Agreement or if all the rights and obligations of the Master
Servicer or any such successor Master Servicer shall have been terminated under
Section 8.01, the appointment of the Master Servicer or such successor Master
Servicer as custodian shall be terminated simultaneously with the effectiveness
of such termination. As soon as practicable on or after any termination of such
appointment (and in any event within (i) 10 Business Days, with respect to that
portion of the Financed Student Loan Files it holds consisting of electronic
records and information, and (ii) 40 Business Days, with respect to the
remaining portion of the Financed Student Loan Files it holds), the Master
Servicer shall (or shall cause the applicable Sub-Servicers to) deliver the
Financed Student Loan Files it holds to the Indenture Trustee or the Indenture
Trustee's agent at such place or places as the Indenture Trustee may reasonably
designate; provided, however, that until such time as such Financed Student Loan
Files have been delivered, the Master Servicer shall continue to be responsible
for the custody of such Financed Student Loan Files.

          
SECTION 3.08.  Schedule of Financed Student
Loans.  Schedules A and B hereto shall indicate by name any
Sub-Servicer who has been appointed by the Master Servicer to service, on behalf
of the Master Servicer, each Financed Student Loan. Such indication may be
amended by the Master Servicer, from time to time, to replace the name of the
applicable Sub-Servicer, in accordance with the provisions of this Agreement
relating to the servicing of the Financed Student Loans.

ARTICLE IV

Administration and Servicing of Financed Student Loans

          
SECTION 4.01.  Duties of Master Servicer.  The Master
Servicer, for the benefit of the Issuer (to the extent provided herein), shall
(or shall cause the applicable Sub-Servicer to) manage, service, administer and
make collections on the Financed Student Loans with reasonable care, using that
degree of skill and attention that the Master Servicer (or such Sub-Servicer)
exercises with respect to all comparable student loans that it services but in
any event, in accordance with customary and usual standards of practice of
prudent lenders and loan servicers administering similar student loans. Without
limiting the generality of the foregoing or of any other provision set forth in
this Agreement and notwithstanding any other provision to the contrary set forth
herein, the Master Servicer shall (or shall cause the applicable Sub-Servicer
to) manage, service, administer and make collections with respect to the
Financed Student Loans (other than collection of any Interest Subsidy Payments
and Special Allowance Payments, which the Eligible Lender Trustee will perform
on behalf of the Trust) in accordance with, and otherwise comply with, all
applicable Federal and state laws, including all applicable standards,
guidelines and requirements of the Higher Education Act (in the case of the
Financed Federal Loans) and any Guarantee Agreement (in the case of the Financed
Guaranteed Loans), the failure to comply with which would adversely affect the
eligibility of one or more of the Financed Federal Loans for federal reinsurance
or Interest Subsidy Payments or Special Allowance Payments or one or more of the
Financed Guaranteed Loans for receipt of Guarantee Payments or would have an
adverse effect on the holders of Notes. The Master Servicer also hereby
acknowledges that its obligation to service (or to cause the applicable
Sub-Servicer to sub-service on its behalf) the Financed Student Loans includes
those Additional Student Loans conveyed by the Seller to the Eligible Lender
Trustee on behalf of the Trust pursuant to Section 2.02 and the related Transfer
Agreement, a copy of which shall be delivered to the Master Servicer by the
Seller promptly upon execution thereof; provided that any failure by the Seller
to so deliver a Transfer Agreement shall not affect the Master Servicer's
obligations hereunder to service (or to cause the applicable Sub-Servicer to
sub-service on its behalf) all the Financed Student Loans.

          The Master
Servicer’s duties (or the duties of the applicable Sub-Servicers on behalf
of the Master Servicer) shall include collection and posting of all payments,
responding to inquiries of borrowers on such Financed Student Loans, monitoring
borrowers’ status, making required disclosures to borrowers, investigating
delinquencies, sending payment coupons to borrowers and otherwise establishing
repayment terms, reporting tax information to borrowers, if applicable,
accounting for collections and furnishing monthly and annual statements with
respect thereto to the Administrator. Subject to the provisions of Section 4.02
and the first paragraph of this Section 4.01, the Master Servicer shall (or
shall cause the applicable Sub-Servicer to) follow its customary standards,
policies and procedures in performing its duties as Master Servicer (or
Sub-Servicer, as the case may be). Without limiting the generality of the
foregoing, the Master Servicer is authorized and empowered to execute and
deliver (and may cause the applicable Sub-Servicer to execute and deliver), on
behalf of itself, the Issuer, the Eligible Lender Trustee, the Indenture
Trustee, the Securities Insurer, the Swap Counterparty and the holders of Notes
or any of them, instruments of satisfaction or cancellation, or partial or full
release or discharge, and all other comparable instruments, with respect to such
Financed Student Loans; provided, however, that the Master
Servicer agrees that it will not (nor will it permit a Sub-Servicer to) (a)
permit any rescission or cancellation of a Financed Student Loan except as
ordered by a court of competent jurisdiction or governmental authority or as
otherwise consented to in writing by the Eligible Lender Trustee, the Securities
Insurer (provided that no Securities Insurer Default has occurred and is
continuing) and the Indenture Trustee or (b) reschedule, revise, defer or
otherwise compromise with respect to payments due on any Financed Student Loan
except pursuant to any applicable deferral or forbearance periods or otherwise
in accordance with all applicable standards, guidelines and requirements of the
Higher Education Act, any Guarantee Agreement or the Programs with respect to
the servicing of the Financed Student Loans and except as otherwise permitted in
accordance with Section 4.14; provided further, however, that
the Master Servicer shall not agree (nor shall it permit any Sub-Servicer to
agree) to any decrease of the interest rate on, or the principal amount payable
with respect to, any Financed Student Loan except in accordance with the
applicable standards, guidelines and requirements of the Higher Education Act,
any Guarantee Agreement or the Programs and as otherwise permitted in accordance
with Section 4.14. The Eligible Lender Trustee on behalf of the Issuer
hereby grants a power of attorney and all necessary authorization to the Master
Servicer to (or to cause the applicable Sub-Servicer to) maintain any and all
collection procedures with respect to the Financed Student Loans it services (or
sub-services), including filing, pursuing and recovering claims against the
Guarantors for Guarantee Payments and taking any steps to enforce such Financed
Student Loan such as commencing a legal proceeding to enforce a Financed Student
Loan in the name of the Issuer, the Eligible Lender Trustee, the Indenture
Trustee, the Securities Insurer, the Swap Counterparty or the holders of Notes.
The Eligible Lender Trustee or the Indenture Trustee shall upon the written
request of the Master Servicer or the Administrator furnish the Master Servicer
or the Administrator (or at written the direction of the Master Servicer or the
Administrator, the related Sub-Servicer) with any other powers of attorney and
other documents reasonably necessary or appropriate to enable the Master
Servicer or the Administrator (or related Sub-Servicer) to carry out their
servicing and administrative duties hereunder (or under the related
Sub-Servicing Agreement). 

          Notwithstanding
the foregoing, and without releasing the Master Servicer from its duties and
obligations hereunder, the Master Servicer has appointed Great Lakes and PHEAA
as Sub-Servicers and may appoint one or more additional Sub-Servicers to act as
“sub-servicer” on its behalf with respect to the Financed Student
Loans such Sub-Servicer is sub-servicing, in each case consistent with the terms
of this Article IV and any other provision of this Agreement, and all references
to the Master Servicer shall be read to apply to such Sub-Servicer acting on
behalf of the Master Servicer. In addition, the Master Servicer may, in the
event that a Sub-Servicer has been terminated or is no longer servicing the
Financed Student Loans, perform the servicing functions required hereunder for
up to 180 days, or a longer period of time if consented to by the Securities
Insurer. 

          In addition,
neither the Seller nor the Master Servicer shall make any change to a Program
that affects any Financed Student Loan, if such change would have a material
adverse effect on the interests of the Noteholders or the Securities Insurer
without the consent of the Securities Insurer (provided that no Securities
Insurer Default has occurred and is continuing). The Master Servicer or the
Seller shall deliver to the Securities Insurer a copy of each change to a
Program that materially affects any of the Financed Student Loans. 

          
SECTION 4.02.  Collection of Financed Student Loan Payments.  (a)  The Master
Servicer shall (or shall cause the applicable Sub-Servicer to) make reasonable
efforts (including all efforts that may be specified under the Higher Education
Act or any Guarantee Agreement) to collect all payments called for under the
terms and provisions of the Financed Student Loans as and when the same shall
become due and shall follow such collection procedures as it follows with
respect to all comparable student loans that it services. The Master Servicer
shall (or shall cause the applicable Sub-Servicer to) allocate collections with
respect to the Financed Student Loans between principal and interest in
accordance with Section 5.03. With the written consent of the Administrator, the
Master Servicer (or at the direction of the Master Servicer, the related
Sub-Servicer) may in its discretion waive any charge or any other fee that may
be collected in the ordinary course of servicing a Financed Student Loan. The
Master Servicer shall (or shall cause the applicable Sub-Servicers to) remit all
collections relating to the Financed Student Loans to the Demand Deposit Account
for deposit therein no later than the close of business on the second Business
Day after receipt thereof in accordance with Section 5.02.

          (b)  The
Master Servicer shall (or shall cause the applicable Sub-Servicer to) make
reasonable efforts to claim, pursue and collect all Guarantee Payments from the
Guarantors pursuant to the Guarantee Agreements with respect to any of the
Financed Guaranteed Loans as and when the same shall become due and payable,
shall comply with all applicable laws and agreements with respect to claiming,
pursuing and collecting such payments and shall follow such practices and
procedures as it follows with respect to all comparable guarantee agreements and
student loans that it services. In connection therewith, the Master Servicer is
hereby authorized and empowered (or at the direction of the Master Servicer, the
related Sub-Servicer is authorized and empowered) to convey to any Guarantor the
note and the related Financed Student Loan File representing any Financed
Guaranteed Loan in connection with submitting a claim to such Guarantor for a
Guarantee Payment in accordance with the terms of the applicable Guarantee
Agreement. 

          (c)  The
Eligible Lender Trustee shall, with the assistance of the Administrator as set
forth below and on behalf of the Issuer, make reasonable efforts to claim,
pursue and collect all Interest Subsidy Payments and Special Allowance Payments
from the Department with respect to any of the Financed Federal Loans as and
when the same shall become due and payable, shall comply with all applicable
laws and agreements with respect to claiming, pursuing and collecting such
payments and shall follow such practices and procedures as the Administrator
follows with respect to its own student loans. All amounts so collected by the
Eligible Lender Trustee shall constitute Available Funds for the applicable
Collection Period and shall be deposited into the Collection Account in
accordance with Section 5.02. In connection therewith, the Administrator
shall prepare and file with the Department on a timely basis all claims forms
and other documents and filings necessary or appropriate in connection with the
claiming of Interest Subsidy Payments and Special Allowance Payments on behalf
of the Eligible Lender Trustee and shall otherwise assist the Eligible Lender
Trustee in pursuing and collecting such Interest Subsidy Payments and Special
Allowance Payments from the Department. The Eligible Lender Trustee shall upon
the written request of the Administrator furnish the Administrator with any
power of attorney and other documents reasonably necessary or appropriate to
enable the Administrator to prepare and file such claims forms and other
documents and filings. 

          The
Eligible Lender Trustee may permit trusts, other than the Trust, established by
the Seller to securitize student loans to use the Department lender
identification number applicable to the Trust. In such event, the Eligible
Lender Trustee may claim and collect Interest Subsidy Payments and Special
Allowance Payments with respect to Financed Student Loans in the Trust and
student loans in such other trusts using such common lender identification
number. Notwithstanding anything herein or in the Basic Documents to the
contrary, any amounts assessed against payments (including, but not limited to,
Interest Subsidy Payments and Special Allowance Payments) due from the
Department or any Federal Guarantor to any such other trust using such common
lender identification number as a result of amounts (including, but not limited
to, the Federal Consolidation Loan Rebate) owing to the Department or any
Federal Guarantor from the Trust will be deemed for all purposes hereof and of
the Basic Documents (including for purposes of determining amounts paid by the
Department or any Federal Guarantor with respect to the student loans in the
Trust and such other trust) to have been assessed against the Trust and shall be
deducted by the Eligible Lender Trustee or the Master Servicer and paid to such
other trust from any collections made by them which would otherwise have been
payable to the Collection Account, for the Trust. If so specified in the
servicing agreement applicable to any such other trust, any amounts assessed
against payments due from the Department or any Federal Guarantor to the Trust
as a result of amounts owing to the Department or any Federal Guarantor from
such other trust using such common lender identification number will be deemed
to have been assessed against such other trust and will be deducted by the
Eligible Lender Trustee or the Master Servicer from any collections made by them
which would otherwise be payable to the collection account for such other trust
and paid to the Trust. 

          
SECTION 4.03.  Realization upon Financed Student
Loans.  For the benefit of the Issuer, the Master Servicer shall
(or shall cause the applicable Sub-Servicer to) use reasonable efforts
consistent with its customary servicing practices and procedures and including
all efforts that may be specified under the Higher Education Act or any
applicable Guarantee Agreement in its servicing (or sub-servicing) of any
delinquent Financed Student Loans.

          
SECTION 4.04.  Computation of Note Interest Rate.  Prior to each Determination
Date, the Administrator shall determine each Note Interest Rate that will be
applicable to the Distribution Date following such Determination Date, in
compliance with its obligation to prepare and deliver an Administrator's
Certificate on such Determination Date pursuant to Section 4.08. In connection
therewith, the Administrator shall calculate the T-Bill Rate in accordance with
the definition thereof calculate Three-Month LIBOR in accordance with the
definition thereof and shall also determine the Student Loan Rate with respect
to such Distribution Date.

          
SECTION 4.05.  No Impairment.  The Master Servicer
shall not (nor shall it permit the applicable Sub-Servicer to) impair the rights
of the Issuer, the Eligible Lender Trustee, the Indenture Trustee, the ecurities
Insurer, the Swap Counterparty or the holders of Notes in such Financed Student
Loans.

          SECTION
4.06.  Purchase of Financed Student Loans; Reimbursement.  The Eligible
Lender Trustee or the Master Servicer (or the applicable Sub-Servicer on its
behalf) shall inform the other party as well as the Indenture Trustee, the
Securities Insurer, the Swap Counterparty and the Seller promptly, in writing,
upon the discovery of any breach pursuant to Section 4.01, 4.02, 4.03 or 4.05.
Unless the breach shall have been cured within 60 days following such discovery
(or, at the Master Servicer’s election, the last day of the first month
following such discovery), the Master Servicer shall purchase any Financed
Student Loan in which the interests of the Securities Insurer, the Swap
Counterparty or the holders of Notes are materially and adversely affected (in
each case unless a Securities Insurer Default has occurred and is continuing) as
determined by the Securities Insurer by such breach as of the first day
succeeding the end of such 60-day period that is the last day of a Collection
Period (it being understood that any such breach that does not affect any
Guarantor’s obligation to guarantee payment of such Financed Student Loan
in accordance with Guarantee Agreements will not be considered to have a
material adverse effect for this purpose). If the Master Servicer takes any
action or fails to take any action (including, without limitation, all actions
taken or not taken by a Sub-Servicer on its behalf) during any Collection Period
pursuant to the sections referred to above that impairs the rights of the
Issuer, the Indenture Trustee, the Eligible Lender Trustee, the Securities
Insurer, the Swap Counterparty or the holders of Notes in any Financed Student
Loan or otherwise than as provided in such sections, the Master Servicer shall
purchase such Financed Student Loan as of the last day of such Collection
Period. In consideration of the purchase of any such Financed Student Loan
pursuant to either of the two preceding sentences, the Master Servicer shall
remit the Purchase Amount in the manner specified in Section 5.04. In
addition, if any such breach by the Master Servicer (or a Sub-Servicer acting on
its behalf) does not trigger such a purchase obligation but does result in the
refusal by a Federal Guarantor to guarantee all or a portion of the accrued
interest, or the loss (including any obligation of the Issuer to repay to the
Department) of certain Interest Subsidy Payments and Special Allowance Payments,
with respect to a Financed Federal Loan, then, unless such breach, if curable,
is cured within 60 days, the Master Servicer shall reimburse the Issuer by
remitting an amount equal to the sum of all such non-guaranteed interest amounts
and such forfeited Interest Subsidy Payments and Special Allowance Payments in
the manner specified in Section 5.04. Subject to Section 7.02, the
sole remedy of the Issuer, the Eligible Lender Trustee, the Indenture Trustee,
the Securities Insurer, Swap Counterparty and the holders of Notes with respect
to a breach pursuant to Section 4.01, 4.02, 4.03 or 4.05 shall be to
require the Master Servicer to purchase Financed Student Loans or to reimburse
the Issuer as provided above pursuant to this Section. The Eligible Lender
Trustee shall have no duty to conduct any affirmative investigation as to the
occurrence of any condition requiring the purchase of any Financed Student Loan
or the reimbursement for any interest penalty pursuant to this Section 4.06.
Notwithstanding the foregoing, the Master Servicer, at its option, may permit or
cause a Sub-Servicer to purchase a Financed Student Loan from the Trust in its
stead, in the manner and for the reasons set forth above. 

          
SECTION 4.07.  Master Servicing Fee.  The Master
Servicing Fee for each calendar month payable on each Monthly Servicing Payment
Date shall be equal to the amounts determined by reference to the schedule of
fees as set forth in the Servicing Fee Schedule, attached hereto as Schedule E.

          
SECTION 4.08.  Administrator's Certificate; Servicer's
Report.  (a)  On or before (i) the seventh day of each
month (or, if any such day is not a Business Day, on the next succeeding
Business Day), the Master Servicer shall (or shall cause each Sub-Servicer to)
deliver to the Seller a Servicer's Report with respect to the preceding calendar
month containing all information necessary for the preparation of the applicable
Transfer Agreement (including Schedule A), and (ii) the Closing Date or the
fifteenth day of each month (or, if any such day is not a Business Day, on the
next succeeding Business Day) or any other Transfer Date, the Master Servicer
shall (or shall cause each Sub-Servicer to) deliver to the Administrator a
Servicer's Report with respect to the preceding calendar month containing all
information necessary for the Administrator's preparation of the Administrator's
Officer's Certificate and the Administrator's Certificate covering such calendar
month referred to in paragraphs (b) and (c) below.

          (b)  On
each Determination Date prior to a Monthly Servicing Payment Date that is not a
Distribution Date, the Administrator shall deliver to the Eligible Lender
Trustee, the Indenture Trustee, the Securities Insurer, the Swap Counterparty
and (if the Seller is not the Administrator) the Seller, an Officer’s
Certificate of the Administrator containing all information necessary to pay the
Master Servicer the Master Servicing Fee due on such Monthly Servicing Payment
Date pursuant to Sections 5.05(b) and 5.06. In addition, on the Business
Day preceding each Transfer Date during the Funding Period, the Administrator
shall deliver to the Eligible Lender Trustee, the Indenture Trustee, the
Securities Insurer and (if the Seller is not the Administrator) the Seller, an
Officer’s Certificate of the Administrator containing all information
necessary to make the transfers from the Escrow Account and the Pre-Funding
Account on such Transfer Date pursuant to Section 5.08. 

          (c)  On
each Determination Date prior to a Distribution Date, the Administrator shall
deliver to the Eligible Lender Trustee, the Indenture Trustee, the Securities
Insurer, the Swap Counterparty and (if the Seller is not the Administrator) the
Seller, with a copy to the Rating Agencies, an Administrator’s Certificate
containing all information necessary to make the distributions pursuant to
Sections 5.05, 5.06 and 5.08(c) and (d), if applicable, for the Collection
Period preceding the date of such Administrator’s Certificate, as well as
(x) the amount of the Net Trust Swap Payment or the Net Trust Swap Receipt (and
the related Net Payment or Net Receipt, as applicable), (y) the amount of any
Class A-1 Cap Payment and Class A-2 Cap Payment for such Distribution Date, and
(z) the amount of any Deficiency Amount and any Preference Amounts, as
applicable. In addition, the Administrator shall prepare and deliver to the
Indenture Trustee any required Securities Guaranty Insurance Policy Notice to
permit the Indenture Trustee to make a claim for an Insured Payment with respect
to such Distribution Date under the Securities Guaranty Insurance Policy.
Financed Student Loans to be repurchased by the Seller (whether pursuant to
Section 2.03 or 3.02), purchased by the Master Servicer (or a Sub-Servicer on
its behalf) or acquired by any Guarantor shall be identified by the
Administrator by type of loan and borrower social security number with respect
to such Financed Student Loan (as specified in Schedule A). 

          
SECTION 4.09.  Annual Statement as to Compliance; Notice of
Default.  (a)  Each of the Administrator and the Master
Servicer shall (and the Master Servicer shall cause each Sub-Servicer to)
deliver to the Seller, the Eligible Lender Trustee, the Securities Insurer, the
Swap Counterparty, and the Indenture Trustee, on or before March 31 of each year
beginning March 31, 2001, an Officers' Certificate of the Administrator or
Master Servicer (and each Sub-Servicer) as the case may be, dated as of December
31 of the preceding year, stating that (i) a review of the activities of the
Administrator or the Master Servicer (and each Sub-Servicer on its behalf), as
the case may be, during the preceding 12-month period (or, in the case of the
first such certificate, during the period from the Closing Date to December 31,
2000) and of its performance under this Agreement (or the related Sub-Servicing
Agreement, as applicable) has been made under such officers' supervision and
(ii) to the best of such officers' knowledge, based on such review, the
Administrator or the Master Servicer (or such Sub-Servicer), as the case may be,
has fulfilled all its obligations under this Agreement and the Administration
Agreement (or the related Sub-Servicing Agreement), as applicable, throughout
such year or, if there has been a default in the fulfillment of any such
obligation, specifying each such default known to such officers and the nature
and status thereof. The Indenture Trustee shall send a copy of each such
Officers' Certificate and each report referred to in Section 4.10 to the Rating
Agencies. A copy of each such Officers' Certificate and each report referred to
in Section 4.10 may be obtained by any holder of Notes or Note Owner by a
request in writing to the Eligible Lender Trustee addressed to its Corporate
Trust Office, together with evidence satisfactory to the Eligible Lender Trustee
that such Person is one of the foregoing parties. Upon the telephone request of
the Eligible Lender Trustee, the Indenture Trustee will promptly furnish the
Eligible Lender Trustee a list of holders of Notes as of the date specified by
the Eligible Lender Trustee.

          (b)  The
Master Servicer shall deliver to the Eligible Lender Trustee, the Indenture
Trustee, the Seller, the Securities Insurer, the Swap Counterparty and the
Rating Agencies, promptly after having obtained knowledge thereof, but in no
event later than five Business Days thereafter, written notice in an
Officers’ Certificate of the Master Servicer of any event which with the
giving of notice or lapse of time, or both, would become a Master Servicer
Default under Section 8.01(a)(1) or (2) or would cause Key Bank USA, National
Association, to fail to meet the definition of an Eligible Institution.

          (c)  The
Administrator shall deliver to the Eligible Lender Trustee, the Indenture
Trustee, the Master Servicer, the Securities Insurer, the Swap Counterparty and
the Rating Agencies, promptly after having obtained knowledge thereof, but in no
event later than five Business Days thereafter, written notice in an
Officers’ Certificate of the Administrator of any event which with the
giving of notice or lapse of time, or both, would become an Administrator
Default under Section 8.01(b)(1) or (2) or would cause Key Bank USA,
National Association, to fail to meet the definition of an Eligible Institution. 

          
SECTION 4.10.  Annual Independent Certified Public Accountants'
Report.  Each of the Administrator and the Master Servicer shall
(or the Master Servicer shall cause each Sub-Servicer to) cause a firm of
independent certified public accountants, which may also render other services
to the Administrator or the Master Servicer (or such Sub-Servicer), as the case
may be, to deliver to the Seller, the Eligible Lender Trustee, the Securities
Insurer, the Swap Counterparty and the Indenture Trustee on or before March 31
of each year beginning March 31, 2002, (a) a report expressing a summary of
findings based upon a comparison of the mathematical calculations of certain
amounts set forth in the Servicer's Reports during the preceding calendar year
(or, in the case of the first such report, the period from the Closing Date to
December 31, 2001) with the Master Servicer's (or such Sub-Servicer's) computer
reports that were the source of such amounts and a report with regard to the
assertions by the Master Servicer's (or such Sub-Servicer's) management about
the Master Servicer's (or such Sub-Servicer's) compliance with the provisions of
this Agreement set forth on Schedule D hereto during the preceding calendar year
(or, in the case of the first such report, the period from the Closing Date to
December 31, 2001); provided that such firm will perform its examination in
accordance with the Audit Guide, Compliance Audits (Attestation Engagements) for
Lenders and Lender Servicers Participating in the Federal Family Education Loan
Program (Audit Guide), issued by the U.S. Department of Education, Office of
Inspector General, dated October 1996 or as subsequently revised; and (b) a
report addressed to the Master Servicer (and the related Sub-Servicer), the
Seller, the Eligible Lender Trustee, the Indenture Trustee, the Securities
Insurer, the Swap Counterparty and each Rating Agency to the effect that (i)
such accountants have relied upon the assertions by the Master Servicer's (or
such Sub-Servicer's) management about the Master Servicer's (or such
Sub-Servicer's) compliance with this Agreement (or the related Sub-Servicing
Agreement) during the preceding calendar year (or, in the case of the first such
report, during the period from the Closing Date to December 31, 2001) and (ii)
in such accountants' opinion, such assertions are fairly stated in all material
respects, except for such exceptions as such firm shall believe to be immaterial
and such other exceptions as shall be set forth in such report. In the event
such firm requires the Indenture Trustee and the Eligible Lender Trustee to
agree to the procedures performed by such firm, the Master Servicer shall direct
the Indenture Trustee in writing to so agree; it being understood and agreed
that the Indenture Trustee and the Eligible Lender Trustee will deliver such
letter of agreement in conclusive reliance upon the direction of the Master
Servicer, and the Indenture Trustee and the Eligible Lender Trustee make no
independent inquiry or investigation as to, and shall have no obligation or
liability in respect of, the sufficiency, validity or correctness of such
procedures.

          
Such report will also indicate that the firm is independent of the Administrator
or the Master Servicer (or such Sub-Servicer), as the case may be, within the
meaning of the Code of Professional Ethics of the American Institute of
Certified Public Accountants.

          
SECTION 4.11.  Access to Certain Documentation and Information
Regarding Financed Student Loans.  Upon reasonable prior notice,
the Master Servicer shall (or shall cause the Sub-Servicers to) provide to the
Securities Insurer, the Swap Counterparty and the holders of Notes access to the
Financed Student Loan Files in such cases where the Securities Insurer, the Swap
Counterparty or the holders of Notes shall be required by applicable statutes or
regulations to review such documentation, as demonstrated by evidence
satisfactory to the Master Servicer (and the applicable Sub-Servicer under the
related Sub-Servicing Agreement) in its (or their) reasonable judgment. Access
shall be afforded without charge, but only upon reasonable request and during
the normal business hours at the respective offices of the Master Servicer (or
the applicable Sub-Servicer). Nothing in this Section shall affect the
obligation of the Master Servicer (or the applicable Sub-Servicer on its behalf)
to observe any applicable law prohibiting disclosure of information regarding
the Obligors and the failure of the Master Servicer (or the applicable
Sub-Servicer) to provide access to information as a result of such obligation
shall not constitute a breach of this Section.

          
SECTION 4.12.  Master Servicer and Administrator
Expenses.  The Master Servicer and the Administrator shall be
severally required to pay or cause to be paid all expenses incurred by it (or
its agents acting on its behalf) in connection with its activities hereunder,
including fees and disbursements of independent accountants, taxes imposed on
the Master Servicer or the Administrator, as the case may be, and expenses
incurred in connection with distributions and reports to the Administrator, the
Securities Insurer, the Swap Counterparty, the Eligible Lender Trustee, or to
the holders of Notes, as the case may be.

          SECTION
4.13.  Appointment of Sub-Servicers.  The Master
Servicer may at any time, (i) upon the written consent of the Administrator and
(provided that no Securities Insurer Default has occurred and is continuing) the
Securities Insurer, appoint one or more Sub-Servicers to perform all or any
portion of its obligations as Master Servicer hereunder, provided, that the
Rating Agency Condition shall have been satisfied in connection therewith, and
(ii) without notice or consent, delegate specific duties to sub-contractors who
are in the business of performing such duties; provided, however,
that the Master Servicer shall remain obligated and be liable to the Issuer, the
Eligible Lender Trustee, the Indenture Trustee, the Securities Insurer and the
holders of Notes for the servicing and administering of the Financed Student
Loans, in accordance with the provisions hereof without diminution of such
obligation and liability by virtue of the appointment of such Sub-Servicer or
other delegation of such duties and to the same extent and under the same terms
and conditions as if the Master Servicer alone were servicing and administering
the Financed Student Loans. The fees and expenses of each Sub-Servicer (and any
such sub-contractors) shall be as agreed between the Master Servicer and the
applicable Sub-Servicer or a sub-contractor from time to time and none of the
Issuer, the Eligible Lender Trustee, the Indenture Trustee, the Securities
Insurer, the Swap Counterparty or the holders of Notes shall have any
responsibility therefor. The parties hereto and the Securities Insurer hereby
acknowledge and consent to the appointment of PHEAA and Great Lakes as the
initial Sub-Servicers (and custodians of the Financed Student Loans each such
Sub-Servicer is servicing) pursuant to the PHEAA Sub-Servicing Agreement and the
Great Lakes Sub-Servicing Agreement, respectively, and acknowledge that the
requirements of this Section 4.13 are deemed to have been met with respect to
PHEAA and Great Lakes. The Master Servicer hereby agrees to obtain the approval
of the Securities Insurer with the respect to the appointment of any additional
or replacement Sub-Servicer, to the extent the identity of such proposed new
Sub-Servicer has not been included in the letter agreement, dated the Closing
Date, between the Master Servicer and the Securities Insurer (provided that no
Securities Insurer Default has occurred and is continuing). In addition, the
prior written consent of the Securities Insurer (provided that no Securities
Insurer Default has occurred and is continuing) is required for any
sub-servicing agreement not substantially in the form of either the Great Lakes
Sub-Servicing Agreement or the PHEAA Sub-Servicing Agreement. 

          
SECTION 4.14.  Special Programs.  The Master Servicer
may at its option, but is under no obligation to, offer (and may permit the
Sub-Servicers to offer) borrowers of the Financed Student Loans certain special
incentive programs, whether or not in existence as of the date of this
Agreement, generally offered to the obligors of comparable loans owned by the
Seller; provided, however, that to the extent such programs are:
(a) not in existence as of the date of this Agreement and are not required by
the Higher Education Act (in the case of the Financed Federal Loans), or (b) not
part of the special incentive program designated as the "Keys2Repay Program" by
the Seller, and have the effect of reducing the yield on the Financed Student
Loans (either by reducing borrower payments or reducing principal balance), such
special programs shall be applied to borrowers of Financed Student Loans only if
and to the extent the Issuer receives payment from the Seller in an amount
sufficient to offset such reduction of yield netted against any payments owed by
the Trust to the Seller pursuant to this Agreement.

          
SECTION 4.15.  Maintenance of Fidelity Bond and Errors and Omission
Policy.  The Master Servicer shall maintain in full force and
effect, at such time as its long-term debt is rated less than A- by Fitch, A- by
S&P or A3 by Moody's, a policy or policies of insurance covering errors and
omissions and a fidelity bond in respect of its officers, employees and agents.
Such policy or policies and such fidelity bond shall be in such form and amounts
as is generally customary among Persons that service a portfolio of student
loans having an aggregate principal amount of $100,000,000 or more and that are
generally regarded as servicers acceptable to institutional investors.

ARTICLE V

Distributions; Accounts;

Statements to Noteholders

          
SECTION 5.01.  Establishment of Trust
Accounts.  (a)  (i) The Administrator, for the benefit
of the Issuer, shall establish and maintain in the name of the Indenture Trustee
an Eligible Deposit Account (the "Collection Account"), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of
the Issuer, the Securities Insurer and the Swap Counterparty. The Collection
Account will initially be established as a segregated trust account at KeyBank
National Association in the name of the Indenture Trustee. The Seller will make
an initial deposit into the Collection Account on the Closing Date of cash or
certain Eligible Investments equal to $7,448,861.

	 
	          
(ii)  The Administrator, for the benefit of the Issuer, shall
establish and maintain in the name of the Indenture Trustee an Eligible Deposit
Account (the “Reserve Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Issuer, the Securities Insurer and the Swap Counterparty. The Reserve Account
will initially be established as a segregated trust account at KeyBank National
Association in the name of the Indenture Trustee.

	 
	          
(iii)  The Administrator, for the benefit of the Issuer, shall
establish and maintain in the name of the Indenture Trustee an Eligible Deposit
Account (the “Pre-Funding Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Issuer, the Swap Counterparty and the Securities Insurer. The Pre-Funding
Account will initially be established as a segregated trust account at KeyBank
National Association in the name of the Indenture Trustee.

	 
	          
(iv)  The Administrator, for the benefit of the Issuer, shall
establish and maintain in the name of the Indenture Trustee an Eligible Deposit
Account (the “Escrow Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Issuer, the Swap Counterparty and the Securities Insurer. The Escrow Account
will initially be established as a segregated trust account at KeyBank National
Association in the name of the Indenture Trustee.

	 
	          (v)  The Administrator, for the benefit of the Issuer, shall
establish and maintain in the name of the Indenture Trustee an Eligible Deposit
Account (the “Cap Account”), bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the Issuer, the
Swap Counterparty and the Securities Insurer. The Cap Account will initially be
established as a segregated trust account at KeyBank National Association in the
name of the Indenture Trustee.

	 
	          
(vi)  The Administrator, for the benefit of the Issuer, shall
establish and maintain in the name of the Indenture Trustee an Eligible Deposit
Account (the “Demand Deposit Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Issuer, the Swap Counterparty and the Securities Insurer. The Demand Deposit
Account will initially be established as a segregated trust account at KeyBank
National Association in the name of the Indenture Trustee.

          (b)  
Funds on deposit in the Collection Account, the Reserve Account, the Pre-Funding
Account, the Cap Account, the Demand Deposit Account and the Escrow Account
(collectively, the “Trust Accounts”) shall be invested by the
Indenture Trustee (or any custodian or designated agent with respect to any
amounts on deposit in such accounts) in Eligible Investments pursuant to written
instructions by the Administrator; provided, however, it is
understood and agreed that neither the Administrator nor the Indenture Trustee
shall be liable for any loss arising from such investment in Eligible
Investments. All such Eligible Investments shall be held by (or by any custodian
on behalf of) the Indenture Trustee for the benefit of the Issuer; provided that
on the Business Day preceding each Distribution Date all interest and other
investment income (net of losses and investment expenses) on funds on deposit
therein shall be deposited into the Collection Account and shall constitute a
portion of the Available Funds for such Distribution Date. Other than as
described in the following proviso or as otherwise permitted by the Rating
Agencies, funds on deposit in the Trust Accounts shall be invested in Eligible
Investments that will mature so that such funds will be available at the close
of business on the Business Day preceding the following Distribution Date;
provided, however, that funds on deposit in Trust Accounts may,
and all funds on deposit in the Cap Account shall, be invested in Eligible
Investments of the Indenture Trustee which may mature so that such funds will be
available on such Distribution Date. Funds deposited in a Trust Account on a
Business Day which immediately precedes a Distribution Date upon the maturity of
any Eligible Investments are not required to be invested overnight. 

          (c)  (i)
The Indenture Trustee, on behalf of the Noteholders, the Securities Insurer and
the Swap Counterparty, shall possess all right, title and interest in all funds
on deposit from time to time in the Trust Accounts and in all proceeds thereof
(including all income thereon) and all such funds, investments, proceeds and
income shall be part of the Indenture Trust Estate. Subject to the
Administrator’s power to instruct the Indenture Trustee pursuant to
paragraph (b) above and paragraph (c)(iii) below, the Trust Accounts shall
be under the sole dominion and control of the Indenture Trustee for the benefit
of the Noteholders, the Securities Insurer and the Swap Counterparty. If, at any
time, any of the Trust Accounts ceases to be an Eligible Deposit Account, the
Indenture Trustee (or the Administrator on its behalf) agrees, by its acceptance
hereto, that it shall within 5 Business Days (or such longer period, not to
exceed 30 calendar days, as to which each Rating Agency and the Securities
Insurer (provided that no Securities Insurer Default has occurred and is
continuing) may consent) establish a new Trust Account as an Eligible Deposit
Account and shall transfer any cash and/or any investments to such new Trust
Account. In connection with the foregoing, the Administrator agrees that, in the
event that any of the Trust Accounts are not accounts with the Indenture
Trustee, the Administrator shall notify the Indenture Trustee, the Securities
Insurer and the Swap Counterparty, in writing, promptly upon any of such Trust
Accounts ceasing to be an Eligible Deposit Account. In the event that Key Bank
USA National Association is no longer the Administrator and the Master Servicer,
the Indenture Trustee shall, at the written direction of the Securities Insurer
(provided that no Securities Insurer Default has occurred and is continuing),
establish new Trust Accounts at an institution other than Key Bank USA National
Association. 

	 
	          
(ii)  With respect to the Trust Account Property, the Indenture
Trustee agrees, by its acceptance hereof, that:

	 
	          
(A)  any Trust Account Property that is held in deposit accounts
shall be held solely in Eligible Deposit Accounts, subject to the last sentence
of Section 5.01(c)(i); and, subject to Section 5.01(b), each such
Eligible Deposit Account shall be subject to the exclusive custody and control
of the Indenture Trustee, and the Indenture Trustee shall have sole signature
authority with respect thereto;

	 
	          
(B)  any Trust Account Property shall be Delivered to the Indenture
Trustee in accordance with the definition of “Delivery” and shall be
held, pending maturity or disposition, solely by the Indenture Trustee or such
other Person acting solely for the Indenture Trustee as required for Delivery;

	 
	          
(C)  In the event that the Indenture Trustee, in its capacity as
securities intermediary has or subsequently obtains by agreement, operation of
law or otherwise a security interest in the Trust Accounts or any security
entitlement credited thereto, the Indenture Trustee, in its capacity as
securities intermediary hereby agrees that such security interest shall be
subordinate to the security interest of the Indenture Trustee. The financial
assets and other items deposited to the Trust Accounts will not be subject to
deduction, set-off, banker’s lien, or any other right in favor of any
person other than the Indenture Trustee (except that the Indenture Trustee, in
its capacity as securities intermediary may set off (i) the face amount of any
checks which have been credited to the Trust Accounts but are subsequently
returned unpaid because of uncollected or insufficient funds, and (ii) provided
that a Securities Insurer Default has occurred and is continuing or the
Securities Insurer has been removed pursuant to Section 8A.5 of the Indenture,
all amounts due to it in respect of its customary fees and expenses for the
routine maintenance and operation of the Trust Accounts.

	 
	          
(iii)  The Administrator shall have the power, revocable for cause or
upon the occurrence and during the continuance of an Administrator Default by
the Indenture Trustee or the Securities Insurer or by the Eligible Lender
Trustee with the consent of the Indenture Trustee and the Securities Insurer, to
instruct the Indenture Trustee to make withdrawals and payments from the Trust
Accounts for the purpose of permitting the Master Servicer, the Administrator or
the Eligible Lender Trustee to carry out its respective duties hereunder or
permitting the Indenture Trustee to carry out its duties under the Indenture.

          
SECTION 5.02.  Collections.  The Master Servicer
shall (or shall cause the applicable Sub-Servicers to) remit within two Business
Days of receipt thereof to the Demand Deposit Account all payments by or on
behalf of the Obligors with respect to the Financed Student Loans (other than
Purchased Student Loans), and all Liquidation Proceeds and Recoveries, as
collected during the Collection Period and the Administrator shall instruct the
Indenture Trustee in writing to transfer all Available Funds on deposit in the
Demand Deposit Account into the Collection Account on the Business Day
immediately prior to the next following Distribution Date; provided,
however, that, notwithstanding the foregoing, on or before the Business
Day preceding each Monthly Servicing Payment Date that is not a Distribution
Date, the Administrator shall instruct the Indenture Trustee in writing to
deposit into the Collection Account from the Demand Deposit Account (i)
Guarantee Payments made by TERI in excess of the Maximum TERI Payments Amount
and (ii) that portion of such amounts received by it that is equal to the Master
Servicing Fee payable on such date. For purposes of this Article V, the phrase
"payments by or on behalf of Obligors" shall mean payments made with respect to
the Financed Student Loans by or on behalf of borrowers thereof and the
Guarantors (but excluding the Department).

          
SECTION 5.03.  Application of Collections.  (a)  With respect to each Financed Student
Loan, all collections (including all Guarantee Payments, but subject to the
Maximum TERI Payments Amount with respect to TERI Guarantee Payments) with
respect thereto for the Collection Period shall be applied to interest and
principal on such Financed Student Loan by the Master Servicer (or the
applicable Sub-Servicer on its behalf) in accordance with its customary practice
by allocating to interest the portion of such collection equal to the product of
(A) the applicable interest rate on such Financed Student Loan, (B) the unpaid
principal balance of such Financed Student Loan and (C) the period of time
elapsed since the preceding payment of interest on such Financed Student Loan
was made (over the actual number of days in a year) ("Interest Collections") and
by allocating the remainder of such collection to principal.

          
(b)  All Liquidation Proceeds shall be applied to the related Financed Student
Loan.

          
SECTION 5.04.  Additional Deposits.  (a)  Within two Business Days after receipt
thereof, the Eligible Lender Trustee shall deposit in the Demand Deposit Account
the aggregate amount of Interest Subsidy Payments and Special Allowance Payments
received by it with respect to the Financed Federal Loans. The Master Servicer
shall (or shall cause the applicable Sub-Servicers to) deposit in the Demand
Deposit Account the aggregate Purchase Amount with respect to Purchased Student
Loans and all other amounts to be paid by the Master Servicer under Section 4.06
when such amounts are due, and the Seller shall deposit or cause to be deposited
therein the aggregate Purchase Amount with respect to Purchased Student Loans
and all other amounts to be paid by the Seller under Sections 3.02 and 9.01 when
such amounts are due.

          
(b)  The Indenture Trustee shall remit to the Collection Account all
Insured Payments delivered pursuant to a Securities Guaranty Insurance Policy
Notice on the date of receipt thereof from the Securities Insurer; provided that
all Insured Payments shall be distributed only to the Noteholders in accordance
with the terms of the Securities Guaranty Insurance Policy and such amounts may
not be applied in any other manner.

          (c)  (i)
On the Determination Date preceding each Distribution Date prior to the
termination of the Cap Agreement, the Administrator, in its capacity as
calculation agent under the Cap Agreement, shall determine the amount, if any,
of the Class A-1 Cap Payment and Class A-2 Cap Payment for such Distribution
Date and shall instruct the Cap Provider to deposit such amounts into the Cap
Account on the Business Day prior to such Distribution Date. In addition, upon
the occurrence of an event of default under the Cap Agreement or an early
termination of the Cap Agreement, the Administrator shall instruct the Cap
Provider to deposit the amount of any termination payment into the Cap Account. 

          (ii)  On
the Determination Date preceding each Distribution Date prior to the termination
of the Interest Rate Swap, the Administrator, in its capacity as calculation
agent under the Interest Rate Swap, shall determine the amount, if any, of the
Net Trust Swap Payment, the Net Trust Swap Payment Carryover Shortfall, the Net
Trust Swap Receipt and the Net Trust Swap Receipt Carryover Shortfall for such
Distribution Date. The Administrator on the related Determination Date shall
either (I) instruct the Indenture Trustee, on behalf of the Trust, to make a
distribution to the Swap Counterparty on the related Distribution Date, in an
amount equal to the excess of the amount of the Trust Swap Payment Amount over
amount of the Trust Swap Receipt Amount (the “Net Payment”), in the
priority set forth in Section 5.05(c)(v) below, or (II) instruct the Swap
Counterparty to deposit an amount equal to the excess of the amount of the Trust
Swap Receipt Amount over amount of the Trust Swap Payment Amount (the “Net
Receipt”) into the Collection Account on each Distribution Date. In
addition, upon the occurrence of an event of default under the Interest Rate
Swap or an early termination of the Interest Rate Swap, the Administrator shall
either instruct the Swap Counterparty to deposit the amount of any Termination
Payment owed to the Trust into the Collection Account or instruct the Indenture
Trustee to make any Termination Payment owed to the Swap Counterparty, in the
priority set forth in either Section 5.05(c)(v) or 5.05(c)(xi), as applicable. 

          
SECTION 5.05.  Distributions.  (a)  On each
Determination Date, the Administrator shall calculate all amounts required to
determine the amounts to be transferred from the Demand Deposit Account and the
other Trust Accounts into the Collection Account, the amounts to be distributed
therefrom on the related Monthly Servicing Payment Date or Distribution Date,
the Class A-1 Cap Payment, Class A-2 Cap Payment and Class A Cap Funds, if any,
and the amounts owed under the Interest Rate Swap, pursuant to Section
5.04(c)(ii) above. The Administrator, in its capacity as calculation agent under
the Administration Agreement, shall instruct the Indenture Trustee in writing
(based on the information contained in the Administrator's Certificate delivered
pursuant to Section 4.08(a)), to withdraw from the Cap Account the amount of any
Class A Cap Funds and to distribute such amounts to the Noteholders on the
related Distribution Date as provided in Section 5.05(c).

          (b)  On
each Monthly Servicing Payment Date that is not a Distribution Date, the
Administrator shall instruct the Indenture Trustee in writing (based on the
information contained in the Administrator’s Officer’s Certificate and
each related Servicer’s Report delivered pursuant to Section 4.08(a)
and (b)) to distribute (i) to the Seller any amounts on deposit in the
Collection Account which consist of Guarantee Payments made by TERI in excess of
the Maximum TERI Payments Amount and (ii) to the Master Servicer by 11:00 a.m.
(New York time), from and to the extent of the Available Funds on deposit in the
Collection Account the Master Servicing Fee due with respect to the preceding
calendar month and all unpaid Master Servicing Fees from prior months, and the
Indenture Trustee shall comply with such instructions. 

          (c)  On
each Distribution Date, the Administrator shall instruct the Indenture Trustee
in writing (based on the information contained in the Administrator’s
Certificate and each related Servicer’s Report delivered pursuant to
Section 4.08(a) and (c)) to make the following deposits and distributions to the
Persons or to the account specified below by 11:00 a.m. (New York time), to
the extent of the amount of Available Funds in the Collection Account, in the
following order of priority and the Indenture Trustee shall comply with such
instructions: 

	 
	          
(i)  to the Seller, any amounts on deposit in the Collection Account which
consist of Guarantee Payments made by TERI in excess of the Maximum TERI
Payments Amount;

	 
	          
(ii)  to the Master Servicer, the Master Servicing Fee due with respect to the
preceding calendar month and all unpaid Master Servicing Fees from prior months;

	 
	          
(iii)  to the Administrator, from the amount of Available Funds
remaining after the application of clauses (i) and (ii), the Administration
Fee and all unpaid Administration Fees from prior Collection Periods;

	 
	          
(iv)  to the Securities Insurer, from the amount of Available Funds
remaining after application of clauses (i), (ii) and (iii) and provided that a
Securities Insurer Default has not occurred and is continuing, the Insurer
Premium and all unpaid Insurer Premiums from prior collection periods;

	 
	          
(v)  from the amount of Available Funds remaining after the
application of clauses (i) through (iv), (x) to the holders of the Class A
Notes, the Noteholders’ Interest Distribution Amount for the Class A-1
Notes and Class A-2 Notes pursuant to Section 8.02(c)(i) of the Indenture, and
(y) and to the Swap Counterparty, the Net Payment, if any, for such Distribution
Date, and the remainder of any Termination Payment resulting from an Event of
Default (as defined in the Interest Rate Swap) to the extent that the Trust is
the Defaulting Party (as defined in the Interest Rate Swap) (other than an Event
of Default specified in Section 5(a)(i) of the Interest Rate Swap), pro
rata, based on the ratio of each such amount to the total of such
amounts; 

	 
	          
(vi)  to the Securities Insurer, from the amount of Available Funds
remaining after application of clauses (i) through (v), and provided that a
Securities Insurer Default has not occurred and is continuing, reimbursement for
all amounts owed pursuant to draws with respect to any payments of interest
under the Securities Guaranty Insurance Policy, plus interest thereon as
determined in accordance with the Insurance Agreement;

	 
	          
(vii)  to the Reserve Account from the amount of Available Funds
remaining after the application of clauses (i) through (vi), an
amount, up to the amount, if any, necessary to reinstate the balance of the
Reserve Account up to the Specified Reserve Account Balance;

	 
	          
(viii)  from the amount of Available Funds remaining after the
application of clauses (i) through (vii), sequentially in the following order:
first, to the holders of the Class A-1 Notes, the Noteholders’ Principal
Distribution Amount as set forth in Section 8.02(c)(ii) of the Indenture, until
their outstanding principal balance has been reduced to zero, second, to the
Securities Insurer, provided that a Securities Insurer Default has not occurred
and is continuing, reimbursement for all amounts owed pursuant to draws with
respect to any payments of principal under the Securities Guaranty Insurance
Policy made to the holders of the Class A-1 Notes, plus interest thereon in
accordance with the Insurance Agreement, third, to the holders of the Class A-2
Notes, the Noteholders’ Principal Distribution Amount as set forth in
Section 8.02(c)(ii) of the Indenture, until their outstanding principal balance
has been reduced to zero, and fourth, to the Securities Insurer, provided that a
Securities Insurer Default has not occurred and is continuing, reimbursement for
all amounts owed pursuant to draws with respect to any payments of principal
under the Securities Guaranty Insurance Policy made to the holders of the Class
A-2 Notes, plus interest thereon in accordance with the Insurance Agreement;

	 
	          
(ix)  to the Securities Insurer, from the amount of Available Funds
remaining after application of clauses (i) through (viii), an amount equal to
all unreimbursed Insured Payments made on prior Distribution Dates, together
with accrued interest thereon, to the extent not previously reimbursed above,
and all other amounts owed to the Securities Insurer under the Insurance
Agreement;

	 
	          
(x)  to the holders of the Class A Notes on a pro rata basis, based on
the amount of Noteholders' Interest Index Carryover owing on each class of Class
A Notes, from (1) the amount of Available Funds remaining after the application
of clauses (i) through (ix) and (2) the Class A Cap Funds, if any, the aggregate
unpaid amount of Noteholders' Interest Index Carryover, if any, with respect to
the Class A Notes;

	 
	          (xi)  to the Swap Counterparty, from the amount of Available Funds
remaining after the application of clauses (i) through (x), all Termination
Payments and other amounts due to the Swap Counterparty under the Interest Rate
Swap, to the extent not paid pursuant to clause (v) above;

	 
	          
(xii)  to the Cap Provider, from the amount of Available Funds
remaining after the application of clauses (i) through (xi), an amount
sufficient to reimburse the Cap Provider for all Class A-1 Cap Payments and
Class A-2 Cap Payments made by the Cap Provider under the Cap Agreement and not
previously reimbursed; and

	 
	          
(xiii)  the Eligible Lender Trustee on behalf of the holders of
Certificates, the amount of Available Funds remaining after the application of
clauses (i) through (xii).

          
(d)  On the Special Redemption Date the Indenture Trustee shall
distribute the amounts remaining on deposit in the Subsequent Pool Prefunding
Subaccount to the Class A-1 and/or Class A-2 Noteholders in accordance with the
priorities set forth in Section 5.08(c)(i)(x) or (y), as applicable.

          
SECTION 5.06.  Reserve Account.  (a) On the Closing
Date, the Seller shall deposit the Reserve Account Initial Deposit into the
Reserve Account. On the Closing Date, the Reserve Account Initial Deposit will
equal the Specified Reserve Account Balance as of the Closing Date.

          (b)  (i)
In the event that the Master Servicing Fee for any Monthly Servicing Payment
Date or Distribution Date exceeds the amount distributed to the Master Servicer
pursuant to Sections 5.05(b)(ii) and 5.05(c)(ii) on such Monthly Servicing
Payment Date or Distribution Date, the Administrator shall instruct the
Indenture Trustee in writing to withdraw from the Reserve Account on such
Monthly Servicing Payment Date or Distribution Date an amount equal to such
excess, to the extent of funds available therein, and to distribute such amount
to the Master Servicer. 

	 
	          
(ii)   In the event that the Administration Fee for any Distribution
Date exceeds the amount distributed to the Administrator pursuant to
Section 5.05(c)(iii) on such Distribution Date, the Administrator shall
instruct the Indenture Trustee in writing to withdraw from the Reserve Account
on each Distribution Date an amount equal to such excess, to the extent of funds
available therein after giving effect to paragraph (b)(i) above, and to
distribute such amount to the Administrator.

	 
	          
(iii)   In the event that the amounts due to the Securities Insurer
for the Insurer Premium for any Distribution Date exceeds the amount distributed
to the Securities Insurer pursuant to Section 5.05(c)(iv) on such
Distribution Date, the Administrator shall instruct the Indenture Trustee in
writing to withdraw from the Reserve Account on each Distribution Date (provided
that no Securities Insurer Default has occurred and is continuing) an amount
equal to such excess, to the extent of funds available therein after giving
effect to paragraphs (b)(i) and b(ii) above, and to distribute such amount
to the Securities Insurer.

	 
	          
(iv)  [RESERVED]

	 
	          
(v)   In the event that the Noteholders’ Interest Distribution
Amount with respect to the Class A Notes or the Net Payment (and the remainder
of any Termination Payment resulting from an Event of Default (as defined in the
Interest Rate Swap) to the extent that the Trust is the Defaulting Party (as
defined in the Interest Rate Swap) (other than an Event of Default specified in
Section 5(a)(i) of the Interest Rate Swap)), if any, due the Swap Counterparty,
for a Distribution Date exceeds the amount distributed to the holders of the
Class A Notes and the Swap Counterparty, as applicable, pursuant to
Section 5.05(c)(v) on such Distribution Date, the Administrator shall
instruct the Indenture Trustee in writing to withdraw from the Reserve Account
on such Distribution Date an amount equal to such excess, to the extent of funds
available therein after giving effect to paragraph (b)(i), b(ii) and b(iii)
above, and to distribute such amount pro rata (based on the amount of such
excess allocable to the holders of the Class A Notes on the one hand and the
Swap Counterparty on the other hand) to (x) the holders of Notes entitled
thereto in the same order and priority as is set forth in
Section 5.05(c)(v), and (y) to the Swap Counterparty; provided,
however, that, amounts on deposit in the Reserve Account will not be
available to cover any unpaid Noteholders’ Interest Index Carryover with
respect to the Class A Notes. 

	 
	          
(vi)   In the event and to the extent that on any Distribution Date,
there is a Realized Loss Amount, the Administrator shall instruct the Indenture
Trustee in writing on such date to withdraw from the Reserve Account on such
date an amount equal to such Realized Loss Amount, to the extent of funds
available therein, after giving effect to paragraphs (b)(i) through (b)(v)
above, and to distribute such amounts, in the order of priority set forth in
Section 5.05(c)(viii).

	 
	          
(vii)  In the event that on the Final Maturity Date for the Class A-1
Notes, the outstanding principal balance of the Class A-1 Notes (prior to giving
effect to any distribution of principal thereon on such date) exceeds the amount
of principal distributed to the holders of the Class A-1 Notes on such date
pursuant to Section 5.05(c)(viii), the Administrator shall instruct the
Indenture Trustee in writing on such date to withdraw from the Reserve Account
on such date an amount equal to such excess, to the extent of funds available
therein, after giving effect to paragraphs (b)(i) through (b)(vi) above and to
distribute such amount to the holders of the Class A-1 Notes, in the same order
and priority as is set forth in Section 5.05(c)(viii).

	 
	          
(viii)  In the event that on the Final Maturity Date for the Class
A-2 Notes the outstanding principal balance of the Class A-2 Notes (prior to
giving effect to any distribution of principal thereon on such date), exceeds
the amount of principal distributed to the holders of the Class A-2 Notes on
such date pursuant to Section 5.05(c)(viii), the Administrator shall instruct
the Indenture Trustee in writing on such date to withdraw from the Reserve
Account on such date an amount equal to such excess, to the extent of funds
available therein, after giving effect to paragraphs (b)(i) through (b)(vii)
above, and to distribute such amount to the holders of the Class A-2 Notes, in
the same order and priority as set forth in Section 5.05(c)(viii).

          
(c)  [RESERVED]

          (d) If
the amount on deposit in the Reserve Account on any Distribution Date (without
giving effect to all deposits or withdrawals therefrom on such Distribution
Date) is greater than the Specified Reserve Account Balance for such
Distribution Date, the Administrator shall instruct the Indenture Trustee in
writing to deposit the amount of such excess into the Collection Account for
distribution on such Distribution Date. 

          (e)
Following the payment in full of the aggregate outstanding principal balance of
the Notes and of all other amounts owing or to be distributed hereunder or under
the Indenture or the Trust Agreement to holders of Notes, the Securities
Insurer, the Swap Counterparty, the Master Servicer or the Administrator
(including any Noteholders’ Interest Index Carryover), or under the
Insurance Agreement to the Securities Insurer, or under the Interest Rate Swap
to the Swap Counterparty and the termination of the Trust, any amount remaining
on deposit in the Reserve Account shall be distributed to the Seller. The Seller
shall in no event be required to refund any amounts properly distributed
pursuant to this Section 5.06(e). 

          
SECTION 5.07.  Statements to Noteholders.  On each
Determination Date preceding a Distribution Date, the Administrator shall
provide to the Indenture Trustee (with a copy to the Securities Insurer, the
Swap Counterparty, the Eligible Lender Trustee and the Rating Agencies) for the
Indenture Trustee to forward on such succeeding Distribution Date to each holder
of record of the Notes a statement substantially in the form of Exhibit A,
setting forth at least the following information as to the Notes, to the extent
applicable:

	 
	          
(i)  the amount of the distribution allocable to principal of each of
the Class A-1 Notes and the Class A-2 Notes;

	 
	          
(ii)   the amount of the distribution allocable to interest on each of
the Class A-1 Notes and the Class A-2 Notes, together with the interest rates
applicable with respect thereto (indicating whether such interest rates are
based on (x) the T-Bill Rate, in the case of T-Bill Indexed Securities or
Three-Month LIBOR in the case of LIBOR Indexed Securities or (y) the Student
Loan Rate and specifying what each such interest rate would have been if it had
been calculated using the alternate basis;

	 
	          (iii)   the amount of (A) any Class A-1 Cap Payment and Class A-2 Cap
Payment on such Distribution Date and (B) the distribution, if any, allocable to
any Noteholders’ Interest Index Carryover with respect to each Class of
Notes together with the outstanding amount, if any, of each thereof after giving
effect to any such distribution;

	 
	          (iv)  the Pool Balance as of the close of business on the last day of the
preceding Collection Period, after giving effect to payments allocated to
principal reported as described in clause (i) above;

	 
	          (v)  the aggregate outstanding principal balance of each class of Notes, and each
Pool Factor as of such Distribution Date, after giving effect to payments
allocated to principal reported under clause (i) above;

	 
	          
(vi)  the amount of (a) the Master Servicing Fee paid to the Master
Servicer, (b) the amount of the Administration Fee paid to the Administrator,
and (c) the Insurer Premium paid to the Securities Insurer, respectively, with
respect to such Collection Period;

	 
	          
(vii)  the amount of the aggregate Realized Losses, if any, for such
Collection Period and the balance of Financed Student Loans that are delinquent
in each delinquency period as of the end of such Collection Period;

	 
	          
(viii)  the amounts of any Insured Payments made under the Securities
Guaranty Insurance Policy;

	 
	          
(ix)  the balance of the Reserve Account on such Distribution Date,
after giving effect to changes therein on such Distribution Date and the amount
of any Interest and Expense Draw, any Realized Loss Draw on such Distribution
Date;

	 
	          
(x)  the amount of any payments received or made by the Trust under
the Interest Rate Swap on such Distribution Date, and the aggregate amount, if
any, either owed to or owed by the Swap Counterparty with respect to amounts not
paid or received by the Trust on previous Distribution Dates, including, any
Termination Payments, if applicable; and

	 
	          
(xi)  the amount, if any, paid to the Securities Insurer, as
reimbursement for any Insured Payments and accrued interest thereon, or
otherwise pursuant to the Insurance Agreement;

	 
	          
(xii)  for Distribution Dates during the Funding Period, the remaining
Pre-Funded Amount on such Distribution Date, after giving effect to changes
therein during the related Collection Period;

	 
	          
(xiii)   for the Special Redemption Date, the Subsequent Pool
Pre-Funded Amount, if any, remaining in the Subsequent Pool Pre-Funding
Subaccount that has not been used to acquire Subsequent Pool Student Loans and
is being paid out to the holders of the Notes; and

	 
	          
(xiv)   for the first Distribution Date on or following the end of the
Funding Period, the amount of any remaining Pre-Funded Amount that has not been
used to make Additional Fundings and is being paid out to the holders of the
Notes.

Each amount set forth pursuant to clauses (i), (ii), (iii),
(v) and (vi) above shall be expressed as a dollar amount per $1,000 of original
principal balance of a Note. A copy of the statements referred to above may be
obtained by any Note Owner by a written request to the Indenture Trustee,
respectively, addressed to the respective Corporate Trust Office. 

          
SECTION 5.08.  Pre-Funding Account.  (a)  On the Closing Date, the Seller will
deposit in the Pre-Funding Account $73,055,411 from the net proceeds of the sale
of the Notes. A portion of the amount on deposit in the Pre-Funding Account
equal to $38,055,411 (the "Subsequent Pool Pre-Funded Amount") will be credited
on the Closing Date to a designated subaccount maintained by the Indenture
Trustee within the Pre-Funding Account (the "Subsequent Pool Pre-Funding
Subaccount"). The remainder of the amount on deposit in the Pre-Funding Account
equal to $35,000,000 will be credited on the Closing Date to a designated
subaccount maintained by the Indenture Trustee within the Pre-Funding Account
(the "Other Additional Pre-Funding Subaccount"). No funds in the Other
Additional Pre-Funding Subaccount may be used to purchase Subsequent Pool
Student Loans until the Subsequent Pool Pre-Funded Amount has been reduced to
zero. On each Transfer Date during the Funding Period on which Subsequent Pool
Student Loans are to be conveyed to the Eligible Lender Trustee on behalf of the
Issuer, the Administrator shall instruct the Indenture Trustee in writing to
withdraw an amount equal to 100% of the sum of (x) the principal balance of,
plus (y) to the extent capitalized or to be capitalized, accrued interest on,
such Subsequent Pool Student Loans, first from the Subsequent Pool Pre-Funding
Subaccount until the Subsequent Pool Pre-Funded Amount has been reduced to zero
and then any remainder from the Other Additional Pre-Funding Subaccount. On each
Transfer Date during the Funding Period on which Other Subsequent Student Loans
are to be conveyed to the Eligible Lender Trustee on behalf of the Issuer, the
Administrator shall instruct the Indenture Trustee in writing to withdraw an
amount equal to 100.00% of the sum of (x) the principal balance of, plus (y) to
the extent capitalized or to be capitalized, accrued interest on, such Other
Subsequent Student Loans (each sum of clauses (x) and (y) set forth in this
sentence and the previous sentence being, a "Transferred Balance"), first from
the Escrow Account until all amounts deposited therein during the calendar month
immediately preceding the Transfer Date have been reduced to zero and then any
remainder from the Other Additional Pre-Funding Subaccount. The Administrator
shall instruct the Indenture Trustee in writing to distribute any Transferred
Balance to or upon the order of the Seller upon satisfaction of the conditions
set forth in Section 2.02(b) with respect to such transfer. On each Transfer
Date on which Guarantee Fee Advances are to be conveyed to the Eligible Lender
Trustee on behalf of the Issuer, the Administrator shall instruct the Indenture
Trustee in writing to withdraw from the Other Additional Pre-Funding Subaccount
an amount equal to the principal balance of such Guarantee Fee Advances and to
distribute such amount to or upon the order of the Seller upon satisfaction of
the conditions set forth in Section 2.02(b) with respect to such transfer of
Guarantee Fee Advances.

          
(b)  In the event that any funds deposited in the Escrow Account
during the calendar month immediately preceding any Transfer Date remain on
deposit therein on such Transfer Date, after giving effect to all Additional
Fundings to be made with respect to such Transfer Date pursuant to paragraph (a)
above, the Indenture Trustee shall transfer such remaining funds from the Escrow
Account to the Collection Account and such funds shall be considered collections
with respect to the Financed Student Loans.

	 
	          
(c)  (i)  If as of the Special Determination Date (after
giving effect to all Additional Fundings on such date) the Subsequent Pool
Pre-Funded Amount has not been reduced to zero, the Administrator shall instruct
the Indenture Trustee in writing pursuant to Section 4.08(c) to withdraw from
the Subsequent Pool Pre-Funding Subaccount on the Special Redemption Date the
remaining Subsequent Pool Pre-Funded Amount on deposit in such subaccount and,
(x) if such amount is greater than $10,000,000, distribute the applicable
Noteholders’ Percentage of such amount to the holders of Class A-1 Notes
and Class A-2 Notes, on a pro rata basis based on the aggregate initial
principal amounts of the Class A-1 Notes and the Class A-2 Notes, as a payment
of principal, and (y) if such amount is $10,000,000 or less, distribute such
amount to the holders of Class A-1 Notes as a payment of principal in the same
manner as the Noteholders’ Principal Distribution Amount is distributed.

	 
	          
(ii)  If (x) the Pre-Funded Amount has not been reduced to zero
on the Distribution Date on which the Funding Period ends (or, if the Funding
Period does not end on a Distribution Date, on the first Distribution Date
following the end of the Funding Period) after giving effect to any reductions
in the Pre-Funded Amount on such Distribution Date pursuant to
paragraph (a) above, the Administrator shall instruct the Indenture Trustee
in writing pursuant to Section 4.08(c) to withdraw from the Pre-Funding
Account on such Distribution Date an amount equal to the Pre-Funded Amount and
shall transfer such remaining funds from the Pre-Funding Account to the
Collection Account and such funds shall be considered collections with respect
to the Financed Student Loans for the related Collection Period.

	 
	          
(d)  (i)  In the event that the Master Servicing Fee for any
Monthly Servicing Payment Date or Distribution Date during the Funding Period
exceeds the amount distributed to the Master Servicer pursuant to
Sections 5.05(b)(ii), 5.05(c)(ii) and 5.06(b)(i) on such Monthly Servicing
Payment Date or Distribution Date, the Administrator shall instruct the
Indenture Trustee in writing to withdraw from the Other Additional Pre-Funding
Subaccount on such Monthly Servicing Payment Date or Distribution Date an amount
equal to such excess, to the extent of funds available therein, and to
distribute such amount to the Master Servicer.

	 
	          
(ii)  In the event that the Administration Fee for any Distribution
Date during the Funding Period exceeds the amount distributed to the
Administrator pursuant to Sections 5.05(c)(iii) and 5.06(b)(ii) on such
Distribution Date, the Administrator shall instruct the Indenture Trustee in
writing to withdraw from the Other Additional Pre-Funding Subaccount on such
Distribution Date an amount equal to such excess, to the extent of funds
available therein after giving effect to paragraph (d)(i) above, and to
distribute such amount to the Administrator.

	 
	          
(iii)   In the event that the Insurer Premium due to the Securities
Insurer for any Distribution Date during the Funding Period exceeds the amount
distributed to the Securities Insurer pursuant to Sections 5.05(c)(iv) and
5.06(b)(iii) on such Distribution Date, the Administrator shall instruct the
Indenture Trustee in writing to withdraw from the Other Additional Pre-Funding
Subaccount on each Distribution Date (provided that no Securities Insurer
Default has occurred and is continuing) an amount equal to such excess, to the
extent of funds available therein after giving effect to paragraphs (d)(i)
and (ii) above, and to distribute such amount to the Securities Insurer.

	 
	          
(iv)   In the event that the Noteholders’ Interest Distribution
Amount with respect to the Class A Notes or the Net Payment (and the remainder
of any Termination Payment resulting from an Event of Default (as defined in the
Interest Rate Swap) to the extent that the Trust is the Defaulting Party (as
defined in the Interest Rate Swap) (other than an Event of Default specified in
Section 5(a)(i) of the Interest Rate Swap)), if any, due the Swap Counterparty,
for a Distribution Date exceeds the amount distributed to the holders of the
Class A Notes or the Swap Counterparty, as applicable, pursuant to
Section 5.05(c)(v) and Section 5.06(b)(v) on such Distribution Date, the
Administrator shall instruct the Indenture Trustee in writing to withdraw from
the Other Additional Pre-Funding Subaccount on such Distribution Date an amount
equal to such excess, to the extent of funds available therein after giving
effect to paragraph (d)(i), d(ii) and d(iii) above, and to distribute such
amount pro rata (based on the amount of such excess allocable to the holders of
the Class A Notes on the one hand and the Swap Counterparty on the other hand)
to (x) the holders of Notes entitled thereto in the same order and priority as
is set forth in Section 5.05(c)(v), and (y) to the Swap Counterparty;
provided, however, that amounts on deposit in the Other Additional
Pre-Funding Subaccount will not be available to cover any unpaid
Noteholders’ Interest Index Carryover with respect to the Class A Notes. 

	 
	          
(v)   In the event the Realized Loss Amount for any Distribution Date
exceeds the amount withdrawn from the Reserve Account pursuant to Section
5.06(b)(vi), the Administrator shall instruct the Indenture Trustee in writing
on such Distribution Date to withdraw from the Other Additional Pre-Funding
Subaccount on such Distribution Date an amount equal to such excess to the
extent of funds available therein after giving effect to paragraphs (d)(i)
through (d)(iv) above, and to distribute such amount in the same order of
priority as if such amount had been withdrawn from the Reserve Account pursuant
to Section 5.06(b)(vi) on such Distribution Date.

          SECTION 5.09.
Seller Optional Deposit. On or prior to any Distribution Date, the Seller
may, but shall not be obligated to, make an optional deposit (each, a
“Seller Optional Deposit”) to the Reserve Account from funds to be
released to the Seller pursuant to Section 5.05(c)(xiii) on such Distribution
Date or otherwise. Any Seller Optional Deposit shall be applied on the related
Distribution Date in the same manner as other funds on deposit in the Reserve
Account on the related Distribution Date in accordance with Section 5.06. 

ARTICLE VI

The Seller and the Administrator

          
SECTION 6.01.  Representations of Seller and
Administrator.  Key Bank USA, National Association, as Seller and
Administrator, makes the following representations on which the Issuer is deemed
to have relied in acquiring the Financed Student Loans. The representations
speak as of the execution and delivery of this Agreement and the Administration
Agreement and as of the Closing Date, in the case of the Initial Financed
Student Loans, and as of the applicable Transfer Date, in the case of the
Additional Student Loans, and shall survive the sale of the Financed Student
Loans to the Eligible Lender Trustee on behalf of the Issuer and the pledge
thereof to the Indenture Trustee pursuant to the Indenture. As used below,
references to Key Bank USA, National Association shall mean Key Bank USA,
National Association in its capacity as both the Seller and the Administrator.

          
(a)  Organization and Good Standing.  Key Bank USA,
National Association is duly organized and validly existing as a national
banking association in good standing under the laws of the United States of
America, with the power and authority to own its properties and to conduct its
business as such properties are currently owned and such business is presently
conducted, and had at all relevant times, and has, the power, authority and
legal right to acquire and own the Financed Student Loans.

          
(b)  Power and Authority of the Seller.  The Seller has the
corporate power and authority to execute and deliver this Agreement and to carry
out its terms; the Seller has full corporate power and authority to sell and
assign the property to be sold and assigned to and deposited with the Issuer (or
with the Eligible Lender Trustee on behalf of the Issuer) and the Seller has
duly authorized such sale and assignment to the Issuer (or to the Eligible
Lender Trustee on behalf of the Issuer) by all necessary corporate action; and
the execution, delivery and performance of this Agreement have been duly
authorized by the Seller by all necessary corporate action.

          
(c)  Power and Authority of the Administrator.  The
Administrator has the corporate power and authority to execute and deliver this
Agreement and the Administration Agreement and to carry out their terms, and the
execution, delivery and performance of this Agreement and the Administration
Agreement have been duly authorized by the Administrator by all necessary
corporate action.

          
(d)  Binding Obligation.  This Agreement constitutes
a legal, valid and binding obligation of Key Bank USA, National Association and
the Administration Agreement constitutes a legal, valid and binding obligation
of the Administrator, in each case enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization and similar laws
relating to creditors' rights generally or the rights of creditors of banks the
deposit accounts of which are insured by the FDIC and subject to general
principles of equity.

          
(e)  No Violation.  The consummation of the
transactions contemplated by this Agreement or the Administration Agreement and
the fulfillment of the terms hereof or thereof do not conflict with, result in
any breach of any of the terms and provisions of, nor constitute (with or
without notice or lapse of time or both) a default under, the articles of
association or by-laws of Key Bank USA, National Association, or any indenture,
agreement or other instrument to which Key Bank USA, National Association is a
party or by which it shall be bound, which breach or default would reasonably be
expected to have a material adverse effect on the condition of Key Bank USA,
National Association, financial or otherwise, or adversely affect the
transactions contemplated by this Agreement or the Administration Agreement; nor
result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument
(other than pursuant to the Basic Documents); nor violate any law or, to the
knowledge of Key Bank USA, National Association, any order, rule or regulation
applicable to Key Bank USA, National Association of any court or of any Federal
or state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over Key Bank USA, National Association or
its properties.

          
(f)  No Proceedings.  There are no proceedings or, to its best knowledge,
investigations pending against Key Bank USA, National Association or, to its
best knowledge, threatened against Key Bank USA, National Association before any
court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over Key Bank USA, National Association or
its properties: (i) asserting the invalidity of this Agreement, the Indenture or
any of the other Basic Documents or the Notes, (ii) seeking to prevent the
issuance of the Notes or the consummation of any of the transactions
contemplated by this Agreement, the Indenture or any of the other Basic
Documents, (iii) seeking any determination or ruling that could reasonably be
expected to have a material and adverse effect on the performance by Key Bank
USA, National Association of its obligations under, or the validity or
enforceability of, this Agreement, the Indenture, any of the other Basic
Documents or the Notes or (iv) seeking to affect adversely the Federal or state
income tax attributes of the Issuer or the Notes.

          
(g)  All Consents.  All authorizations, consents,
orders or approvals of or registrations or declarations with any court,
regulatory body, administrative agency or other government instrumentality
required to be obtained, effected or given by Key Bank USA, National Association
in connection with the execution and delivery by Key Bank USA, National
Association of this Agreement and the performance by Key Bank USA, National
Association of the transactions contemplated by this Agreement, and in
connection with the execution and delivery by the Administrator of the
Administration Agreement and the performance by the Administrator of its duties
thereunder, have in each case been duly obtained, effected or given and are in
full force and effect.

          
(h)  Resolutions.  The resolutions of the Board of
Directors of Key Bank USA, National Association approving this Agreement and the
Trust Agreement and all documents relating thereto are and shall be continuously
reflected in the minutes of the Board of Directors of Key Bank USA, National
Association. This Agreement and the Trust Agreement and all documents relating
thereto are and shall be, continuously from the time of their respective
execution by Key Bank USA, National Association, official records of Key Bank
USA, National Association.

          
SECTION 6.02.  Existence.  During the term of this
Agreement, the Seller will keep in full force and effect its existence, rights
and franchises as a national banking association under the laws of the
jurisdiction of its organization, subject, however, to Section 6.05 hereof.

          
SECTION 6.03.  Liability of Seller; Indemnities.  The Seller shall be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Seller under this Agreement.

          
(a)  The Seller shall indemnify, defend and hold harmless the Issuer, the
Eligible Lender Trustee, the Securities Insurer, the Swap Counterparty, the
Delaware Trustee and the Indenture Trustee and their officers, directors,
employees and agents from and against any taxes that may at any time be asserted
against any such Person with respect to the transactions contemplated herein and
in the other Basic Documents (except any such income taxes arising out of fees
paid to the Eligible Lender Trustee or the Indenture Trustee), including any
sales, gross receipts, general corporation, tangible personal property,
privilege or license taxes (but, in the case of the Issuer, not including any
taxes asserted with respect to, and as of the date of, the sale of the Financed
Student Loans to the Eligible Lender Trustee on behalf of the Issuer or the
issuance and original sale of the Notes, or asserted with respect to ownership
of the Financed Student Loans or Federal or other income taxes arising out of
distributions on the Notes) and costs and expenses in defending against the
same.

          
(b)  The Seller shall indemnify, defend and hold harmless the Issuer, the
Eligible Lender Trustee, the Delaware Trustee, the Securities Insurer, the Swap
Counterparty, the Indenture Trustee, the Master Servicer and the holders of
Notes and the officers, directors, employees and agents of the Issuer, the
Eligible Lender Trustee, the Delaware Trustee, the Securities Insurer, the Swap
Counterparty, the Indenture Trustee and the Master Servicer from and against any
and all costs, expenses, losses, claims, damages and liabilities arising out of,
or imposed upon such Person through, (i) the Seller's willful misfeasance, bad
faith or negligence in the performance of its duties under this Agreement, or by
reason of reckless disregard of its obligations and duties under this Agreement
and (ii) the Seller's or the Issuer's violation of Federal or state securities
laws in connection with the offering and sale of the Notes.

          
(c)  The Seller shall be liable as primary obligor for, and shall indemnify,
defend and hold harmless the Eligible Lender Trustee, the Delaware Trustee and
their respective officers, directors, employees and agents from and against, all
costs, expenses, losses, claims, damages, obligations and liabilities arising
out of, incurred in connection with or relating to the Trust Agreement, the
other Basic Documents, the Trust Estate, the acceptance or performance of the
trusts and duties set forth herein and in the Trust Agreement or the action or
the inaction of the Eligible Lender Trustee hereunder and of the Eligible Lender
Trustee and the Delaware Trustee under the Trust Agreement, except to the extent
that such cost, expense, loss, claim, damage, obligation or liability: (i) shall
be due to the willful misfeasance, bad faith or negligence (except for errors in
judgment) of the Eligible Lender Trustee or the Delaware Trustee, as applicable,
(ii) shall arise from any breach by the Eligible Lender Trustee of its covenants
under any of the Basic Documents or the Delaware Trustee under the Trust
Agreement; or (iii) shall arise from the breach by the Eligible Lender Trustee
of any of its representations or warranties set forth in Section 7.03 of the
Trust Agreement. In the event of any claim, action or proceeding for which
indemnity will be sought pursuant to this paragraph, the Eligible Lender
Trustee's or the Delaware Trustee's, as applicable, choice of legal counsel
shall be subject to the approval of the Seller, which approval shall not be
unreasonably withheld.

          
(d)  The Seller shall pay any and all taxes levied or assessed upon all or any
part of the Trust Estate (other than those taxes expressly excluded from the
Seller's responsibilities pursuant to Section 6.03(a) above).

          
Indemnification under this Section shall survive the resignation or removal of
the Eligible Lender Trustee, Delaware Trustee or the Indenture Trustee and the
termination of this Agreement or the Indenture or the Trust Agreement, as
applicable, and shall include reasonable fees and expenses of counsel and
expenses of litigation. If the Seller shall have made any indemnity payments
pursuant to this Section and the Person to or on behalf of whom such payments
are made thereafter shall collect any of such amounts from others, such Person
shall promptly repay such amounts to the Seller, without interest.

          
SECTION 6.04.  Liability of Administrator;
Indemnities.  The Administrator shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the
Administrator under this Agreement or the Administration Agreement.

          
The Administrator shall indemnify, defend and hold harmless the Issuer, the
Eligible Lender Trustee, the Delaware Trustee, the Securities Insurer, the
Indenture Trustee, the Master Servicer, the holders of Notes and any of the
officers, directors, employees and agents of the Issuer, the Eligible Lender
Trustee, the Delaware Trustee, the Securities Insurer, the Swap Counterparty,
the Indenture Trustee and the Master Servicer from and against any and all
costs, expenses, losses, claims, damages and liabilities to the extent that such
cost, expense, loss, claim, damage or liability arose out of, or was imposed
upon any such Person through, the negligence, willful misfeasance or bad faith
of the Administrator in the performance of its duties under this Agreement or
the Administration Agreement or by reason of reckless disregard of its
obligations and duties hereunder or thereunder.

          
The Administrator shall pay reasonable compensation to the Indenture Trustee and
shall reimburse the Indenture Trustee for all reasonable expenses, disbursements
and advances, and indemnify, defend and hold harmless the Indenture Trustee and
its officers, directors, employees and agents from and against all costs,
expenses, losses, claims, damages and liabilities, to the extent and in the
manner provided in, and subject to the limitations of, Section 6.07 of the
Indenture.

          
For purposes of this Section, in the event of the termination of the rights and
obligations of the Administrator (or any successor thereto pursuant to Section
6.05) as Administrator pursuant to Section 8.01(b), or a resignation by such
Administrator pursuant to this Agreement, such Administrator shall be deemed to
be the Administrator pending appointment of a successor Administrator pursuant
to Section 8.02.

          
Indemnification under this Section shall survive the resignation or removal of
the Eligible Lender Trustee, Delaware Trustee or the Indenture Trustee or the
termination of this Agreement and the Administration Agreement and shall include
reasonable fees and expenses of counsel and expenses of litigation. If the
Administrator shall have made any indemnity payments pursuant to this Section
and the Person to or on behalf of whom such payments are made thereafter
collects any of such amounts from others, such Person shall promptly repay such
amounts to the Administrator, without interest.

          
SECTION 6.05.  Merger or Consolidation of, or Assumption of the
Obligations of, Seller or Administrator.  Any Person (a) into
which the Seller or the Administrator, as the case may be, may be merged or
consolidated, (b) which may result from any merger or consolidation to which the
Seller or the Administrator, as the case may be, shall be a party or (c) which
may succeed to the properties and assets of the Seller or the Administrator, as
the case may be, substantially as a whole, shall be the successor to the Seller
or the Administrator, as the case may be, without the execution or filing of any
document or any further act by any of the parties to this Agreement or to the
Administration Agreement; provided, however, that each of the
Seller and the Administrator hereby covenant that it will not consummate any of
the foregoing transactions except upon satisfaction of the following: (i) the
surviving Seller or Administrator, as the case may be, if other than Key Bank
USA, National Association (or affiliate thereof), executes an agreement of
assumption to perform every obligation of the Seller under this Agreement or the
Administrator under this Agreement and the Administration Agreement, as the case
may be, (ii) immediately after giving effect to such transaction, no
representation or warranty made pursuant to Section 3.01 or 6.01 shall have been
breached and no Administrator Default, and no event that, after notice or lapse
of time, or both, would become an Administrator Default shall have occurred and
be continuing, (iii) the surviving Seller or Administrator, as the case may be,
if other than Key Bank USA, National Association (or affiliate thereof), shall
have delivered to the Securities Insurer, the Swap Counterparty, Eligible Lender
Trustee and the Indenture Trustee an Officers' Certificate and an Opinion of
Counsel each stating that such consolidation, merger or succession and such
agreement of assumption comply with this Section and that all conditions
precedent, if any, provided for in this Agreement relating to such transaction
have been complied with, and that the Rating Agency Condition shall have been
satisfied with respect to such transaction, (iv) the surviving Seller or
Administrator, as the case may be, shall have a consolidated net worth at least
equal to that of the predecessor Seller or Administrator, as the case may be,
(v) such transaction will not result in a material adverse Federal or state tax
consequence to the Issuer or the holders of Notes and (vi) unless Key Bank USA,
National Association (or affiliate thereof) is the surviving entity, the Seller
or the Administrator, as the case may be, shall have delivered to the Securities
Insurer, the Swap Counterparty, the Eligible Lender Trustee and the Indenture
Trustee an Opinion of Counsel either (A) stating that, in the opinion of such
counsel, all financing statements and continuation statements and amendments
thereto have been executed and filed that are necessary fully to preserve and
protect the interest of the Eligible Lender Trustee and Indenture Trustee,
respectively, in the Financed Student Loans and reciting the details of such
filings, or (B) stating that, in the opinion of such counsel, no such action
shall be necessary to preserve and protect such interests.

          
SECTION 6.06.  Limitation on Liability of Seller, Administrator and Others.  (a)
The Seller and any director or officer or employee or agent of the Seller may
rely in good faith on the advice of counsel or on any document of any kind,
prima facie properly executed and submitted by any Person respecting any matters
arising hereunder (provided that such reliance shall not limit in any way the
Seller's obligations under Section 3.02). The Seller shall not be under any
obligation to appear in, prosecute or defend any legal action that shall not be
incidental to its obligations under this Agreement, and that in its opinion may
involve it in any expense or liability.

          
(b)  Neither the Administrator nor any of its directors, officers,
employees or agents shall be under any liability to the Issuer, the Securities
Insurer, the Swap Counterparty, the holders of Notes, the Indenture Trustee or
the Eligible Lender Trustee except as provided under this Agreement or the
Administration Agreement, for any action taken or for refraining from the taking
of any action pursuant to this Agreement or the Administration Agreement or for
errors in judgment; provided, however, that this provision shall
not protect the Administrator or any such person against any liability that
would otherwise be imposed by reason of willful misfeasance, bad faith or
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties under this Agreement or under the Administration
Agreement. The Administrator and any of its directors, officers, employees or
agents may rely in good faith on the advice of counsel or on any document of any
kind, prima facie properly executed and submitted by any Person respecting any
matters arising hereunder or under the Administration Agreement.

          
Except as provided in this Agreement or the Administration Agreement, the
Administrator shall not be under any obligation to appear in, prosecute or
defend any legal action that shall not be incidental to its duties to administer
the Financed Student Loans and the Trust in accordance with this Agreement and
the Administration Agreement, and that in its opinion may involve it in any
expense or liability; provided, however, that the Administrator
may undertake any reasonable action that it may deem necessary or desirable in
respect of this Agreement and the other Basic Documents and the rights and
duties of the parties to this Agreement and the other Basic Documents and the
interests of the holders of Notes under the Indenture.

          
SECTION 6.07.  Ownership by the Seller and
Affiliates.  (a)  None of the Seller, any insider, nor
any Affiliate thereof may in its individual or any other capacity become the
owner or pledgee of Notes; provided, however, that (i) an
Affiliate of the Seller may become a pledgee of Notes (or an owner as a result
of executing on any such pledge) in the ordinary course of its business, (ii) an
Affiliate of the Seller may become the owner of Notes in the ordinary course of
its market-making activities, (iii) the Seller or an Affiliate of the Seller may
hold Notes (A) in a fiduciary capacity in connection with its discretionary and
non-discretionary investment management activities or (B) in connection with its
mutual fund management activities, in each case with the same rights as it would
have if it were not the Seller or an Affiliate thereof, except as otherwise
expressly provided herein or in any other Basic Document or the Securities
Guaranty Insurance Policy.

          
(b)  The Seller or an Affiliate thereof (to the extent permitted under the Trust
Agreement) shall own the Certificate, with the same rights as it would have if
it were not the Seller or an Affiliate thereof, except as otherwise expressly
provided herein or in any other Basic Document or the Securities Guaranty
Insurance Policy.

          
SECTION 6.08.  Key Bank USA, National Association Not To Resign as Administrator.  
Subject to the provisions of Section 6.05, Key Bank USA, National Association
shall not resign from the obligations and duties imposed on it as Administrator
under this Agreement and under the Administration Agreement except upon
determination that the performance of its duties under this Agreement and under
the Administration Agreement shall no longer be permissible under applicable law
or shall violate any final order of a court or administrative agency with
jurisdiction over Key Bank USA, National Association or its properties. Notice
of any such determination permitting the resignation of Key Bank USA, National
Association shall be communicated to the Eligible Lender Trustee, the Securities
Insurer and the Indenture Trustee at the earliest practicable time (and, if such
communication is not in writing, shall be confirmed in writing at the earliest
practicable time) and any such determination shall be evidenced by an Opinion of
Counsel to such effect delivered to the Eligible Lender Trustee, the Securities
Insurer, the Swap Counterparty and the Indenture Trustee concurrently with or
promptly after such notice. No such resignation shall become effective until the
Indenture Trustee or a successor Administrator shall have assumed the
responsibilities and obligations of Key Bank USA, National Association in
accordance with Section 8.02.

ARTICLE VII

The Master Servicer

          
SECTION 7.01.  Representations of Master
Servicer.  The Master Servicer makes the following representations
on which the Issuer is deemed to have relied in acquiring (through the Eligible
Lender Trustee) the Financed Student Loans and appointing the Master Servicer as
master servicer hereunder. The representations speak as of the execution and
delivery of this Agreement and as of the Closing Date, in the case of the
Initial Financed Student Loans, and as of the applicable Transfer Date, in the
case of the Additional Student Loans, but shall survive the sale, transfer and
assignment of the Financed Student Loans to the Eligible Lender Trustee on
behalf of the Issuer and the pledge thereof to the Indenture Trustee pursuant to
the Indenture.

          
(a)  Organization and Good Standing.  The Master
Servicer is duly organized and validly existing as a national banking
association in good standing under the laws of the United States of America,
with the power and authority to own its properties and to conduct its business
as such properties are currently owned and such business is presently conducted,
and had at all relevant times, and has, the power, authority and legal right to
master service the Financed Student Loans and to hold the Financed Student Loan
Files as custodian.

          
(b)  Due Qualification.  The Master Servicer is duly
qualified to do business and has obtained all necessary licenses and approvals
in all jurisdictions in which the ownership or lease of property or the conduct
of its business (including the master servicing of the Financed Student Loans as
required by this Agreement) shall require such qualifications.

          
(c)  Power and Authority of the Master Servicer.  The
Master Servicer has the corporate power and authority to execute and deliver
this Agreement and to carry out its terms; and the execution, delivery and
performance of this Agreement have been duly authorized by the Master Servicer
by all necessary corporate action.

          
(d)  Binding Obligation.  This Agreement constitutes
a legal, valid and binding obligation of the Master Servicer enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization and similar laws relating to creditors' rights generally or the
rights of creditors of banks the deposit accounts of which are insured by the
FDIC and subject to general principles of equity.

          
(e)  No Violation.  The consummation of the
transactions contemplated by this Agreement and the fulfillment of the terms
hereof shall not conflict with, result in any breach of any of the terms and
provisions of, nor constitute (with or without notice or lapse of time or both)
a default under the articles of association or by-laws of the Master Servicer,
or any indenture, agreement or other instrument to which the Master Servicer is
a party or by which it shall be bound nor result in the creation or imposition
of any Lien upon any of its properties pursuant to the terms of any such
indenture, agreement or other instrument (other than this Agreement); which
breach or default would reasonably be expected to have a material adverse effect
on the condition of the Master Servicer, financial or otherwise, or adversely
affect the transactions contemplated by this Agreement; nor violate any law or,
to the knowledge of the Master Servicer, any order, rule or regulation
applicable to the Master Servicer of any court or of any Federal or state
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Master Servicer or its properties.

          
(f)  No Proceedings.  There are no proceedings, or,
to the Master Servicer's best knowledge, investigations pending, or, to the
Master Servicer's best knowledge, threatened against the Master Servicer, before
any court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Master Servicer or its properties:
(i) asserting the invalidity of this Agreement, the Indenture, any of the other
Basic Documents, the Notes, (ii) seeking to prevent the issuance of the Notes or
the consummation of any of the transactions contemplated by this Agreement, the
Indenture or any of the other Basic Documents, (iii) seeking any determination
or ruling that could reasonably be expected to have a material and adverse
effect on the performance by the Master Servicer of its obligations under, or
the validity or enforceability of, this Agreement, the Indenture, any of the
other Basic Documents or the Notes or (iv) relating to the Master Servicer and
which might adversely affect the Federal or state income tax attributes of the
Notes.

          
(g)  No Amendment or Waiver.  No provision of a Financed Student Loan has been
waived, altered or modified in any respect, except pursuant to a document,
instrument or writing included in the Financed Student Loan File, and no such
amendment, waiver, alteration or modification causes such Financed Student Loan
not to conform to the other warranties contained in this Section or those of the
Seller contained in Section 3.01.

          
(h)  Collection Practices.  The servicing and collection
practices used by the Master Servicer (or each Sub-Servicer on its behalf) with
respect to the Financed Student Loan have been in all respects in compliance
with Accepted Servicing Procedures, and all applicable laws and regulations.

          
(i)  Location of Financed Student Loan Files.  The Financed Student Loan Files are
kept in the offices of the applicable Sub-Servicer on behalf of the Master
Servicer specified in Schedule C hereto, or at such other office specified in
accordance with Section 3.04(b), and all Financed Student Loan Files have been
delivered to and are in the possession of the applicable Sub-Servicer.

          
SECTION 7.02. Indemnities of Master Servicer. The Master Servicer shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Master Servicer under this Agreement.

          
The Master Servicer shall pay for any loss, liability or expense, including
reasonable attorney's fees, that may be imposed on, incurred by or asserted
against the Issuer, the Eligible Lender Trustee, the Indenture Trustee, the
Securities Insurer, the Swap Counterparty, the Seller, the Administrator or the
holders of Notes or any of the officers, directors, employees and agents of the
Issuer, the Eligible Lender Trustee, the Indenture Trustee, the Securities
Insurer, the Swap Counterparty, the Administrator or the Seller to the extent
that such loss, liability or expense arose out of, or was imposed upon any such
Person through, the negligence, willful misfeasance or bad faith of the Master
Servicer (or any Sub-Servicer acting on its behalf) in the performance of its
obligations and duties under this Agreement or by reason of the reckless
disregard of its obligations and duties (of those of any Sub-Servicer acting on
its behalf) under this Agreement, where the final determination that any such
loss, liability or expense arose out of, or was imposed upon any such Person
through, any such negligence, willful misfeasance, bad faith or recklessness on
the part of the Master Servicer (or such Sub-Servicer acting on its behalf) is
established by a court of law, by an arbitrator or by way of settlement agreed
to by the Master Servicer. Notwithstanding the foregoing, if the Master Servicer
is rendered unable, in whole or in part, by a force outside the control of the
parties hereto (including acts of God, acts of war, fires, earthquakes and other
disasters) to satisfy its obligations under this Agreement, the Master Servicer
shall not be deemed to have breached any such obligation upon delivery of
written notice of such event to the other parties hereto, for so long as the
Master Servicer remains unable to perform such obligation as a result of such
event.

          
For purposes of this Section, in the event of the termination of the rights and
obligations of the Master Servicer (or any successor thereto pursuant to Section
7.03) as Master Servicer pursuant to Section 8.01(a), or a resignation by such
Master Servicer pursuant to this Agreement, the Master Servicer shall be deemed
to be the Master Servicer pending appointment of a successor Master Servicer
pursuant to Section 8.02.

          
Liability of the Master Servicer under this Section shall survive the
resignation or removal of the Eligible Lender Trustee or the Indenture Trustee
or the termination of this Agreement. If the Master Servicer shall have made any
payments pursuant to this Section and the Person to or on behalf of whom such
payments are made thereafter collects any of such amounts from others, such
Person shall promptly repay such amounts to the Master Servicer, without
interest.

          
SECTION 7.03. Merger or Consolidation of, or Assumption of the Obligations
of, Master Servicer. Any Person (a) into which the Master Servicer may be
merged or consolidated, (b) which may result from any merger or consolidation to
which the Master Servicer shall be a party or (c) which may succeed to the
properties and assets of the Master Servicer substantially as a whole, shall be
the successor to the Master Servicer without the execution or filing of any
document or any further act by any of the parties to this Agreement;
provided, however, that the Master Servicer hereby covenants that
it will not consummate any of the foregoing transactions except upon
satisfaction of the following: (i) the surviving Master Servicer, if other than
Key Bank USA, National Association (or affiliate thereof), executes an agreement
of assumption to perform every obligation of the Master Servicer under this
Agreement, (ii) immediately after giving effect to such transaction, no
representation or warranty made pursuant to Section 7.01 shall have been
breached and no event that, after notice or lapse of time, or both, would become
a Master Servicer Default shall have occurred and be continuing, (iii) the
surviving Master Servicer, if other than Key Bank USA, National Association (or
affiliate thereof), shall have delivered to the Eligible Lender Trustee, the
Securities Insurer, the Swap Counterparty and the Indenture Trustee an Officers'
Certificate and an Opinion of Counsel each stating that such consolidation,
merger or succession and such agreement of assumption comply with this Section
and that all conditions precedent, if any, provided for in this Agreement
relating to such transaction have been complied with, and that the Rating Agency
Condition shall have been satisfied with respect to such transaction, (iv) the
surviving Master Servicer shall have a consolidated net worth at least equal to
that of the predecessor Master Servicer, (v) unless Key Bank USA, National
Association (or affiliate thereof) is the surviving entity, such transaction
will not result in a material adverse Federal or state tax consequence to the
Issuer or the holders of Notes and (vi) unless Key Bank USA, National
Association (or affiliate thereof) is the surviving entity, the Master Servicer
shall have delivered to the Eligible Lender Trustee , the Securities Insurer,
the Swap Counterparty, and the Indenture Trustee an Opinion of Counsel either
(A) stating that, in the opinion of such counsel, all financing statements and
continuation statements and amendments thereto have been executed and filed that
are necessary fully to preserve and protect the interest of the Eligible Lender
Trustee and Indenture Trustee, respectively, in the Financed Student Loans and
reciting the details of such filings, or (B) stating that, in the opinion of
such counsel, no such action shall be necessary to preserve and protect such
interests.

          
SECTION 7.04. Limitation on Liability of Master Servicer and Others.
Neither the Master Servicer nor any of the directors, officers, employees or
agents of the Master Servicer shall be under any liability to the Issuer, the
Securities Insurer, the Swap Counterparty or the holders of Notes, except as
provided under this Agreement, for any action taken or for refraining from the
taking of any action pursuant to this Agreement or for errors in judgment;
provided, however, that this provision shall not protect the Master Servicer or
any such person against any liability that would otherwise be imposed by reason
of willful misfeasance, bad faith or negligence in the performance of duties or
by reason of reckless disregard of obligations and duties under this Agreement.
The Master Servicer and any director, officer, employee or agent of the Master
Servicer may rely in good faith on the advice of counsel or on any document of
any kind prima facie properly executed and submitted by any person respecting
any matters arising under this Agreement
.

          
Except as provided in this Agreement, the Master Servicer shall not be under any
obligation to appear in, prosecute or defend any legal action that shall not be
incidental to its duties to service the Financed Student Loans in accordance
with this Agreement, and that in its opinion may involve it in any expense or
liability; provided, however, that the Master Servicer may
undertake any reasonable action that it may deem necessary or desirable in
respect of this Agreement and the other Basic Documents and the rights and
duties of the parties to this Agreement and the other Basic Documents and the
interests of the holders of Notes under the Indenture.

          
SECTION 7.05. Key Bank USA, National Association, Not To Resign as Master
Servicer. Subject to the provisions of Section 7.03, Key Bank USA, National
Association, shall not resign from the obligations and duties hereby imposed on
it as Master Servicer under this Agreement except upon determination that the
performance of its duties under this Agreement shall no longer be permissible
under applicable law. Notice of any such determination permitting the
resignation of Key Bank USA, National Association, as Master Servicer shall be
communicated to the Eligible Lender Trustee, the Securities Insurer and the
Indenture Trustee at the earliest practicable time (and, if such communication
is not in writing, shall be confirmed in writing at the earliest practicable
time) and any such determination shall be evidenced by an Opinion of Counsel to
such effect delivered to the Eligible Lender Trustee, the Securities Insurer,
the Swap Counterparty and the Indenture Trustee concurrently with or promptly
after such notice. No such resignation shall become effective until the
Indenture Trustee or a Successor Master Servicer shall have assumed the
responsibilities and obligations of Key Bank USA, National Association, as
Master Servicer in accordance with Section 8.02.

ARTICLE VIII

Default

          
SECTION 8.01. Master Servicer Default; Administrator Default. (a) Master
Servicer Default. If any one of the following events (a "Master Servicer
Default") shall occur and be continuing:

          
(1) any failure by the Master Servicer to deliver (or cause to be delivered) to
the Administrator or the Indenture Trustee, as applicable, for deposit in any of
the Trust Accounts any payment required by the Basic Documents, which failure
continues unremedied for three Business Days after written notice of such
failure is received by the Master Servicer from the Eligible Lender Trustee, the
Indenture Trustee, the Securities Insurer or the Administrator or after
discovery of such failure by an officer of the Master Servicer; or

          
(2) any failure by the Master Servicer duly to observe or to perform (or to
cause to be observed or performed) in any material respect any other covenants
or agreements of the Master Servicer set forth in this Agreement or any other
Basic Document, which failure shall (i) materially and adversely affect the
rights of the holders of Notes or (provided that no Securities Insurer Default
has occurred and is continuing) the Securities Insurer (in each case as
determined by the Securities Insurer) and (ii) continues unremedied for a period
of 60 days after the date on which written notice of such failure, requiring the
same to be remedied, shall have been given (A) to the Master Servicer by the
Indenture Trustee, the Eligible Lender Trustee, or the Administrator or (B) to
the Master Servicer, and to the Indenture Trustee and the Eligible Lender
Trustee by the Securities Insurer (unless a Securities Insurer Default shall
have occurred and is continuing, and then by the holders of Notes, representing
not less than 25% of the Outstanding Amount of the Notes);

          
(3) an Insolvency Event occurs with respect to the Master Servicer; or

          
(4) any failure by the Master Servicer to comply with any applicable
requirements under the Higher Education Act resulting in a loss of its
eligibility, if applicable, as a third-party servicer (or the failure of the
Master Servicer to replace promptly any Sub-Servicer that has lost its
eligibility as a third-party servicer);

then, and in each and every case, so long as the Master Servicer
Default shall not have been remedied, either the Indenture Trustee with the
consent of the Securities Insurer, or the Securities Insurer (in either case,
unless a Securities Insurer Default shall have occurred and is continuing, and
then by the holders of Notes evidencing not less than 25% of the Outstanding
Amount of the Notes), by notice then given in writing to the Master Servicer
(and to the Indenture Trustee and the Eligible Lender Trustee if given by the
Securities Insurer or the holders of Notes) may terminate all the rights and
obligations (other than the obligations set forth in Section 7.02 and Section
3.07 hereof) of the Master Servicer under this Agreement. On or after the
receipt by the Master Servicer of such written notice, all authority and power
of the Master Servicer under this Agreement, whether with respect to the Notes
or the Financed Student Loans or otherwise, shall, without further action, pass
to and be vested in the Indenture Trustee or such successor Master Servicer as
may be appointed under Section 8.02; and, without limitation, the Indenture
Trustee and the Eligible Lender Trustee are hereby authorized and empowered to
execute and deliver, for the benefit of the predecessor Master Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments, and
to do or accomplish all other acts or things necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement of the Financed Student Loans and related documents, or otherwise.
The predecessor Master Servicer shall cooperate with the successor Master
Servicer, the Indenture Trustee and the Eligible Lender Trustee in effecting the
termination of the responsibilities and rights of the predecessor Master
Servicer under this Agreement and all Sub-Servicing Agreements, including the
transfer to the successor Master Servicer of its rights under all existing
Sub-Servicing Agreements and for administration by it of all cash amounts that
shall at the time be held by the predecessor Master Servicer for deposit, or
shall thereafter be received by it with respect to a Financed Student Loan. All
reasonable costs and expenses (including attorneys’ fees) incurred in
connection with transferring the Financed Student Loan Files to the successor
Master Servicer and amending this Agreement, the Sub-Servicing Agreements and
any other Basic Documents to reflect such succession as Master Servicer pursuant
to this Section shall be paid by the predecessor Master Servicer upon
presentation of reasonable documentation of such costs and expenses. Upon
receipt of notice of the occurrence of a Master Servicer Default, the Eligible
Lender Trustee shall give notice thereof to the Rating Agencies, the Swap
Counterparty and the Securities Insurer. Notwithstanding the foregoing, the
successor Master Servicer shall have the option to assume the rights of the
predecessor Master Servicer under each Sub-Servicing Agreement, or to enter into
new Sub-Servicing Agreements with the existing or other replacement
Sub-Servicers; provided, however, that unless the existing
Sub-Servicer is in breach of its Sub-Servicing Agreement, any and all
contractual damages, costs and expenses owed to any Sub-Servicer under the
existing Sub-Servicing Agreements by reason of such cancellation, shall be borne
by the successor Master Servicer.

          
(b) Administrator Default. If any one of the following events (an
"Administrator Default") shall occur and be continuing:

          
(1) any failure by the Administrator to direct the Indenture Trustee in writing
to make the required transfers of amounts on deposit in any of the Trust
Accounts to the Collection Account, on or before the Business Day immediately
preceding any Monthly Servicing Payment Date or Distribution Date, as
applicable, or any failure by the Administrator to direct the Indenture Trustee
in writing to make any required distributions from the Collection Account on any
Monthly Servicing Payment Date or Distribution Date, as applicable, which
failure continues unremedied for three Business Days after written notice of
such failure is received by the Administrator from the Indenture Trustee, the
Securities Insurer or the Eligible Lender Trustee or after discovery of such
failure by an officer of the Administrator; or

          
(2) any failure by the Administrator duly to observe or to perform in any
material respect any other covenants or agreements of the Administrator set
forth in this Agreement, the Administration Agreement or any other Basic
Document, which failure shall (i) materially and adversely affect the rights of
the holders of Notes or the Securities Insurer (in each case (provided that no
Securities Insurer Default has occurred and is continuing), as determined by the
Securities Insurer) and (ii) continues unremedied for a period of 60 days after
the date on which written notice of such failure, requiring the same to be
remedied, shall have been given (A) to the Administrator by the Indenture
Trustee or the Eligible Lender Trustee or (B) to the Administrator and to the
Indenture Trustee and the Eligible Lender Trustee by the Securities Insurer
(unless a Securities Insurer Default shall have occurred and is continuing, and
then by the holders of Notes, representing not less than 25% of the Outstanding
Amount of the Notes); or

          
(3) an Insolvency Event occurs with respect to the Administrator;

then, and in each and every case, so long as the Administrator
Default shall not have been remedied, either the Indenture Trustee with the
consent of the Securities Insurer (provided that no Securities Insurer Default
has occurred and is continuing), or the Securities Insurer (unless a Securities
Insurer Default shall have occurred and is continuing, and then by the holders
of Notes evidencing not less than 25% of the Outstanding Amount of the Notes),
by notice then given in writing to the Administrator (and to the Indenture
Trustee, the Securities Insurer, the Swap Counterparty and the Eligible Lender
Trustee if given by the holders of Notes) may terminate all the rights and
obligations (other than the obligations set forth in Section 6.04 hereof)
of the Administrator under this Agreement and the Administration Agreement. On
or after the receipt by the Administrator of such written notice, all authority
and power of the Administrator under this Agreement and the Administration
Agreement, whether with respect to Notes or the Financed Student Loans or
otherwise, shall, without further action, pass to and be vested in the Indenture
Trustee or such successor Administrator as may be appointed under
Section 8.02; and, without limitation, the Indenture Trustee and the
Eligible Lender Trustee are hereby authorized and empowered to execute and
deliver, for the benefit of the predecessor Administrator, as attorney-in-fact
or otherwise, any and all documents and other instruments, and to do or
accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination. The predecessor Administrator shall
cooperate with the successor Administrator, the Indenture Trustee and the
Eligible Lender Trustee in effecting the termination of the responsibilities and
rights of the predecessor Administrator under this Agreement and the
Administration Agreement. All reasonable costs and expenses (including
attorneys’ fees) incurred in connection with amending this Agreement and
the Administration Agreement to reflect such succession as Administrator
pursuant to this Section shall be paid by the predecessor Administrator upon
presentation of reasonable documentation of such costs and expenses. Upon
receipt of notice of the occurrence of a Administrator Default, the Eligible
Lender Trustee shall give notice thereof to the Rating Agencies, the Securities
Insurer and the Swap Counterparty.

          
SECTION 8.02. Appointment of Successor. (a) Upon receipt by the Master Servicer
or the Administrator, as the case may be, of notice of termination pursuant to
Section 8.01, or the resignation by the Master Servicer or the Administrator, as
the case may be, in accordance with the terms of this Agreement, the predecessor
Master Servicer or Administrator, as the case may be, shall continue to perform
its functions as Master Servicer or Administrator, as the case may be, under
this Agreement or under this Agreement and the Administration Agreement, as the
case may be, in the case of termination, only until the date specified in such
termination notice or, if no such date is specified in a notice of termination,
until receipt of such notice and, in the case of resignation, until the later of
(x) the date 120 days from the delivery to the Eligible Lender Trustee and the
Indenture Trustee of written notice of such resignation (or written confirmation
of such notice) in accordance with the terms of this Agreement and (y) the date
upon which the predecessor Master Servicer or Administrator, as the case may be,
shall become unable to act as Master Servicer or Administrator, as the case may
be, as specified in the notice of resignation and accompanying Opinion of
Counsel. In the event of the termination hereunder of a Master Servicer or the
Administrator, as the case may be, the Issuer shall appoint, with the consent of
the Securities Insurer (provided that no Securities Insurer Default has occurred
and is continuing), a successor Master Servicer or Administrator, as the case
may be, acceptable to the Indenture Trustee, and the successor Master Servicer
or Administrator, as the case may be, shall accept its appointment by a written
assumption in form acceptable to the Indenture Trustee. In the event that a
successor Master Servicer or Administrator, as the case may be, has not been
appointed at the time when the predecessor Master Servicer or Administrator, as
the case may be, has ceased to act as Master Servicer or Administrator in
accordance with this Section, the Indenture Trustee without further action shall
automatically be appointed the successor Master Servicer or Administrator, as
the case may be, and the Indenture Trustee shall be entitled to the applicable
portion of the Master Servicing Fee or the Administration Fee, as the case may
be. Notwithstanding the above, the Indenture Trustee shall, if it shall be
unwilling or legally unable so to act, appoint or petition a court of competent
jurisdiction to appoint, in each case with the consent of the Securities Insurer
which consent shall not be unreasonably withheld, any established institution
whose regular business shall include the servicing of student loans, as the
successor to a Master Servicer under this Agreement or to the Administrator
under this Agreement and the Administration Agreement; provided,
however, that such right to appoint or to petition for the appointment of
any such successor Master Servicer shall in no event relieve the Indenture
Trustee from any obligations otherwise imposed on it under the Basic Documents
until such successor has in fact assumed such appointment.

          
(b) Upon appointment, the successor Master Servicer or Administrator, as the
case may be (including the Indenture Trustee acting as successor Master Servicer
or Administrator, as the case may be), shall be the successor in all respects to
the predecessor Master Servicer or Administrator, as the case may be, and shall
be subject to all the responsibilities, duties and liabilities placed on the
predecessor Master Servicer or Administrator, as the case may be, that arise
thereafter or are related thereto and shall be entitled to an amount agreed to
by such successor Master Servicer or Administrator (which shall not exceed the
applicable portion of the Master Servicing Fee or the Administration Fee, as the
case may be, unless such compensation arrangements have been consented to by the
Securities Insurer (provided that no Securities Insurer Default has occurred and
is continuing) will not result in a downgrading of the Notes by any Rating
Agency) and all the rights granted to the predecessor Master Servicer or
Administrator, as the case may be, by the terms and provisions of this
Agreement.

          
(c) Neither the Master Servicer nor the Administrator may resign unless it is
prohibited from serving as such by law as evidenced by an Opinion of Counsel to
such effect delivered to the Indenture Trustee, the Securities Insurer, the Swap
Counterparty and the Eligible Lender Trustee. Notwithstanding the foregoing or
anything to the contrary herein or in the other Basic Documents, the Indenture
Trustee, to the extent it is acting as successor Master Servicer or
Administrator pursuant hereto and thereto, shall be entitled to resign to the
extent a qualified successor Master Servicer or Administrator has been appointed
and has assumed all the obligations of the Master Servicer or the Administrator,
as the case may be, in accordance with the terms of this Agreement and the other
Basic Documents.

          
SECTION 8.03. Notification to Noteholders. Upon any termination of, or
appointment of a successor to, the Master Servicer or the Administrator, as the
case may be, pursuant to this Article VIII, the Indenture Trustee shall give
prompt written notice thereof to holders of Notes, the Securities Insurer and
the Rating Agencies (which, in the case of any such appointment of a successor,
shall consist of prior written notice thereof to the Securities Insurer and the
Rating Agencies).

          
SECTION 8.04. Waiver of Past Defaults. The Securities Insurer (unless a
Securities Insurer Default shall have occurred and is continuing, and then the
holders of Notes evidencing not less than a majority of the Outstanding Amount
of the Notes) may waive in writing any default by the Master Servicer in the
performance of its obligations hereunder, and any default by the Administrator
in the performance of its obligations hereunder and under the Administration
Agreement, and any consequences thereof, except a default in making any required
deposits to or payments from any of the Trust Accounts (or giving instructions
regarding the same) in accordance with this Agreement. Upon any such waiver of a
past default, such default shall cease to exist, and any Master Servicer Default
or Administrator Default arising therefrom shall be deemed to have been remedied
for every purpose of this Agreement and the Administration Agreement. No such
waiver shall extend to any subsequent or other default or impair any right
consequent thereto.

ARTICLE IX

Termination

          
SECTION 9.01. Termination. (a) Optional Purchase of All Financed
Student Loans. As of the last day of any Collection Period immediately
preceding a Distribution Date as of which the sum of the then outstanding Pool
Balance is 5% or less of the Adjusted Initial Pool Balance, the Master Servicer
shall have the option to purchase the Trust Estate, other than the Trust
Accounts; provided, however, that, unless each Rating Agency
agrees otherwise, the Master Servicer may not effect any such purchase so long
as the rating on its long-term debt obligations is less than Baa3 by Moody's,
BBB by S&P and, if rated by Fitch, BBB by Fitch, unless the Administrator shall
have given notice to each of the Rating Agencies and the Eligible Lender
Trustee, the Securities Insurer, the Swap Counterparty and the Indenture Trustee
shall have received an Opinion of Counsel to the effect that such purchase would
not constitute a fraudulent conveyance. To exercise such option, the Master
Servicer shall deposit pursuant to Section 5.04 in the Collection Account an
amount equal to the aggregate Purchase Amount for the Financed Student Loans and
the related rights with respect thereto, plus the appraised value of any such
other property held by the Trust other than the Trust Accounts, such value to be
determined by an appraiser mutually agreed upon by the Master Servicer and the
Eligible Lender Trustee, and shall succeed to all interests in and to the Trust;
provided, however, that the Master Servicer may not effect such purchase if the
aggregate Purchase Amount to be so deposited in the Collection Account does not
equal or exceed an amount equal to the sum of (i) the unpaid principal amount of
the Notes then outstanding plus accrued and unpaid interest thereon at the
applicable Note Interest Rates to the date of exercise including the amount of
unpaid all Noteholders' Interest Index Carryover with respect thereto, (ii) all
amounts then owed to each of the Securities Insurer, the Swap Counterparty and
the Cap Provider, if any.

          
(b) [RESERVED]

          
(c) Auction of Financed Student Loans. Any Financed Student Loans remaining in
the Trust as of the end of the Collection Period immediately preceding the
October 2010 Distribution Date will be offered for sale in the aggregate by the
Indenture Trustee as either a single pool (a "Single Pool Sale") or in two
separate pools (a "Two Pool Sale") as determined by the Administrator in its
sole discretion; provided, however, that if a Coordination Agreement requires
the offering of the Access Loans to PHEAA, TERI and/or LAI, the Indenture
Trustee shall, in accordance with Section 10.06(a) of this Agreement, offer for
sale the Financed Student Loans that are Access Loans as a single pool as part
of a Two Pool Sale. KeyCorp, its affiliates, and unrelated third parties may
offer bids to purchase such Financed Student Loans on such Distribution Date;
provided, however, that KeyCorp and its affiliates may not bid more than an
amount determined by KeyCorp in good faith to be equal to the fair market value
of such Financed Student Loans as of the end of the Collection Period
immediately preceding such Distribution Date. If at least two bids are received,
with respect to a Single Pool Sale, the Indenture Trustee will solicit and
resolicit bids from all participating bidders until only one bid remains for
such Financed Student Loans or the remaining bidders decline to resubmit bids
and, with respect to a Two Pool Sale, if at least two bids are received for
either pool of Financed Student Loans, the Indenture Trustee will solicit and
resolicit bids from all participating bidders until only one bid remains with
respect to each pool of Financed Student Loans, or the remaining bidders decline
to resubmit bids. The Indenture Trustee shall, with respect to a Single Pool
Sale, accept the highest of such remaining bids from a single bidder if it is
equal to or in excess of the Minimum Purchase Amount, and with respect to a Two
Pool Sale, accept the highest of such remaining bids for each pool of Financed
Student Loans, if the sum of the such two bids is equal to or in excess of the
Minimum Purchase Amount. If (i) at least two bids are not received with respect
to a Single Pool Sale (or at least two bids for each pool of Financed Student
Loans with respect to a Two Pool Sale), or (ii) the highest bid (with respect to
a Single Pool Sale) or the combination of the highest two bids (with respect to
a Two Pool Sale), as the case may be, after the resolicitation process is
completed is not equal to or in excess of the Minimum Purchase Amount, the
Indenture Trustee will not consummate such sale. In connection with the
determination of the Minimum Purchase Amount, the Indenture Trustee may consult,
and, at the direction of the Seller, shall consult, with a financial advisor
(which may be the Administrator) to determine if the fair market value of the
Financed Student Loans has been offered. The proceeds of any such sale will be
applied in the order of priority set forth in Section 5.04(b) of the Indenture.
If the sale is not consummated in accordance with the foregoing, the Indenture
Trustee may, but shall not be under any obligation to, solicit bids to purchase
the Financed Student Loans on future Distribution Dates upon terms similar to
those described above. In addition, the Indenture Trustee, the Securities
Insurer, the Swap Counterparty, the Eligible Lender Trustee and each Rating
Agency shall be provided with an opinion of counsel that any such sale of the
Financed Student Loans would not constitute a fraudulent conveyance.

          
(d) Notice. As described in Article IX of the Trust Agreement, notice of any
termination of the Trust shall be given by the Administrator to the Eligible
Lender Trustee, the Securities Insurer and the Indenture Trustee as soon as
practicable after the Administrator has received notice thereof.

          
(e) Succession. Following the satisfaction and discharge of the Indenture and
the payment in full of the principal of and interest on the Notes, and all
amounts due and owing to the Securities Insurer and the Swap Counterparty, the
holders of Certificates will succeed to the rights of the holders of Notes
hereunder and the Eligible Lender Trustee will succeed to the rights of (except
for the rights of the Indenture Trustee which have accrued prior to the
satisfaction and discharge of the Indenture and the payment in full of the
principal of an interest on the Notes), and assume the obligations of, the
Indenture Trustee pursuant to this Agreement and any other Basic Documents.

ARTICLE X

Additional Provisions Regarding Financed Student Loans

          
SECTION 10.01. Periodic Reports. No later than the fifteenth day of each month,
and for so long as the Eligible Lender Trustee on behalf of the Trust shall own
the Financed Student Loans, the Trust shall furnish to LAI or cause to be
furnished in an electronic form suitable to LAI, a record of all Financed
Student Loans which are Access Loans (the "Record"), as of the last day of the
preceding month. The Master Servicer shall (or shall cause the applicable
Sub-Servicers to) furnish the Record to LAI on behalf of the Trust (or on behalf
of the Indenture Trustee in the event that the Indenture Trustee becomes the
owner of the Financed Student Loans) as required by this Section 10.01. The
Master Servicer, acting on behalf of the Trust, shall honor LAI's reasonable
request for additional Records, at LAI's expense. The Record shall be on a
borrower level, by loan, and shall include, but need not be limited to, the
information required to be delivered by the Seller to LAI pursuant to the second
paragraph of Section 10.7 of the 1996-1998 Coordination Agreement. The Master
Servicer acknowledges and agrees that the costs and expenses to produce and
distribute (or to cause the applicable Sub-Servicers to produce and distribute)
the Record are part of the data transfer fee payable to it pursuant to the
Servicing Fee Schedule, attached as Schedule E to this Agreement and agrees that
no additional fees will be payable by the Trust or the Administrator to produce
and deliver the Record.

          
In addition to the foregoing Record, the parties hereto acknowledge and agree
that LAI may obtain from the Master Servicer (or the applicable Sub-Servicers)
at the sole cost and expense of LAI such additional information as LAI may
reasonably request concerning the Financed Student Loans which are Access Loans,
including, but not limited to, information on defaults, average principal
balance, and complaints. Any such request shall be made in writing to the
Administrator, with a copy to the Eligible Lender Trustee and the Master
Servicer. The Trust shall not be obligated to incur or pay any costs or expenses
associated with the production or delivery of such additional information,
except that, if the additional information requested by LAI is contained in any
monthly or other periodic report produced by the Master Servicer (or a
Sub-Servicer acting on its behalf) and delivered to the Trust (or to the
Administrator on behalf of the Trust) pursuant to this Agreement, the Trust
shall provide a copy of such report, or excerpts therefrom, to LAI and the
Administrator shall bear all photocopying and postage charges for producing and
mailing such copy.

          
The Indenture Trustee agrees to assume and perform the obligations of the Trust
under this Section 10.01 in the event that the Indenture Trustee forecloses upon
its security interest in and becomes the owner of the Financed Student
Loans.

          
SECTION 10.02. Cooperation. With regard to the Financed Student Loans which are
Access Loans, the Trust, the Indenture Trustee, the Eligible Lender Trustee, the
Master Servicer and the Administrator each agree to cooperate with each other,
with each applicable Sub-Servicer and LAI, with the other parties to the
Coordination Agreements and with each of their internal or external auditors, or
governmental examiners, at the expense of the party requesting such cooperation,
and to provide any information regarding origination, disbursement, servicing,
and data collection relating to such loans as reasonably requested by the other
parties, their auditors, or governmental examiners as necessary or desirable for
the performance of an audit or examination. In that regard, each party shall
make available any necessary supporting records to each other party and shall
resolve any discrepancy claimed to exist in such records to the reasonable
satisfaction of the other party within 30 days of the date that the other party
has claimed that a discrepancy exists. Notwithstanding the foregoing, the
parties acknowledge that audit reviews conducted during heavy processing periods
may disrupt such operations. Accordingly, unless a party has reason to believe
that another party is in material breach of the performance of its obligations
under this Agreement, the Administration Agreement, the Trust Agreement or the
Indenture, reviews by internal or external auditors shall only be scheduled
during the months of January, February, April, May, June, September, October,
November or December.

          
SECTION 10.03. Confidentiality. Each party to this Agreement and the Indenture
Trustee agrees to maintain the confidentiality of all data, materials and
information relating to The Access GroupSM Loan Program and the Financed Student
Loans entrusted to it by another party hereto or any party to any of the
Coordination Agreements. Each party also agrees not to use such data, materials
and information for any purpose other than the limited purpose of performing its
obligations under this Agreement, the Administration Agreement, the Indenture,
the Trust Agreement or the Coordination Agreements. This section shall not be
deemed to preclude the disclosure of (i) information relating to the historical
performance of the Financed Student Loans (including, but not limited to,
statistical information relating to defaults, prepayments, consolidations,
deferrals and forbearances) by the Seller or the Administrator or, with the
consent of the Administrator, by the Eligible Lender Trustee or Indenture
Trustee, (ii) such information as in any of the Master Servicer's (or any
Sub-Servicer's acting on behalf of the Master Servicer), Administrator's,
Eligible Lender Trustee's or Indenture Trustee's discretion may be required
under any of this Agreement, the Trust Agreement, the Indenture or the
Administration Agreement to be disclosed to holders of the Notes, (iii) such
information as may be required to be disclosed under applicable laws, rules,
regulations or governmental orders, (iv) information obtained by the Indenture
Trustee in the performance of its obligations as Indenture Trustee, provided
that the Indenture Trustee shall maintain the confidentiality of all account
level and borrower level information, including without limitation, the
borrower's name, address and social security number and the account balance and
account history or (v) disclosure by LAI of information in the Record or other
information received by LAI pursuant to Section 10.01 of this Agreement.

          
SECTION 10.04. Future Purchases. The Trust, the Eligible Lender Trustee and the
Indenture Trustee each hereby agree that, in the event of any sale or other
transfer of any Financed Student Loans that are Access Loans to any third party,
the Trust, the Eligible Lender Trustee or the Indenture Trustee, as the case may
be, as seller, or the Administrator acting on their behalf, (i) shall use
reasonable efforts to obtain from the purchaser or transferee of such Access
Loans an agreement in form and substance satisfactory to LAI pursuant to which
such purchaser or transferee agrees to observe and comply with the obligations
of the parties to this Agreement under Sections 10.02 and 10.03 hereof and the
obligations of the Trust, the Eligible Lender Trustee or the Indenture Trustee,
as the case may be, as seller, or the Administrator acting on its behalf, under
this clause (i) of Section 10.04 hereof and (ii) shall obtain from any such
purchaser or transferee an agreement to provide LAI with prior notice of any
future sale of such Access Loans, or portion thereof, acquired by such purchaser
or transferee and an agreement to comply with the obligations of the Trust under
Section 10.01 and the obligations of the seller under this clause (ii) of
Section 10.04 and under the last sentence of Section 10.06(a) of this Agreement
(provided, however, that if the purchaser or transferee does not retain the
Master Servicer (or the related Sub-Servicer) as servicer, the obligation to
deliver "Reports" shall be construed as an obligation to deliver reports
containing information substantially similar to the information contained in
Reports).

          
SECTION 10.05. Private Guarantee Fee. The Seller acknowledges and agrees that,
with respect to the Access Loans that are "Privately Guaranteed Loans" (as
defined in the 1992, 1993-1995 and 1996-1998 Coordination Agreements) that have
not yet entered repayment and are Financed Student Loans, the Seller retains the
obligation, pursuant to Section 9.2 of the 1992, 1993-1995 and 1996-1998
Coordination Agreements, to advance to the borrower an additional private
guarantee fee equal to 2% of the original principal amount of any such Privately
Guaranteed Loan made to a student since the commencement of the 1992-1993 Law
Access(R)Program through the 1995-1996 Access Group Loan Program, and,
commencing with the 1996-1998 Access Group Loan Program a fee of 4% of the
original principal amount of each LAL Loan, 3% of each GAL Loan and BEL Loan and
2% for each MAL Loan, DAL Loan and REL Loan (each such term as defined in the
1992, 1993-1995 and 1996-1998 Coordination Agreements). The proceeds of such
advances shall be remitted in accordance with the 1992, 1993-1995 and 1996-1998
Coordination Agreements and Assigned Agreements.

          
SECTION 10.06. Bids/First Refusal Rights. (a) If required pursuant to a
Coordination Agreement (and only to the extent required thereunder), in
connection with any contemplated sale of any Financed Student Loans pursuant to
Section 9.02(c) of this Agreement, the Indenture Trustee, on behalf of the
Trust, shall notify PHEAA, ASA, LAI and TERI of any proposed solicitation of
bids or offers to purchase the pool of Access Loans offered for sale as part of
Two Pool Sale, such notice to be delivered not less than thirty (30) days prior
to the date upon which bids or offers are to be received by the Indenture
Trustee. Each of PHEAA, TERI and LAI shall be given an opportunity to submit a
bid or offer to purchase all such Access Loans being offered for sale within
such thirty (30) day period and if no other bid exceeds PHEAA's, TERI's or LAI's
bid and if PHEAA's, TERI's or LAI's bid, in combination with the highest bid for
the other pool of Financed Student Loans being sold, is equal to or in excess of
the Minimum Purchase Amount the Indenture Trustee, on behalf of the Trust, shall
convey such pool of Access Loans offered for sale to whichever of PHEAA, TERI or
LAI, as the case may be, submitted the highest bid. If no combination of bids
that are received pursuant to any solicitation process in connection with a Two
Pool Sale are equal to or in excess of the Minimum Purchase Amount, the
Indenture Trustee will not consummate a sale of such Financed Student Loans. The
Indenture Trustee, on behalf of the Trust, shall require any purchaser or
transferee who acquires Financed Student Loans that are Access Loans to acquire
all Financed Student Loans of a borrower owned by the Trust and not in default,
except that, with regard thereto, the Indenture Trustee, on behalf of the Trust,
may sell or transfer to a purchaser or transferee all Financed Federal Loans of
a borrower and sell or transfer to a different purchaser or transferee all
Financed Guaranteed Private Loans of the same borrower.

          
(b) The provisions of this Section 10.06 shall not apply to any sale or other
transfer of any Financed Student Loans to the Seller, the Administrator or the
Master Servicer (or a Sub-Servicer acting in its stead) as may be required or
permitted under this Agreement or any Guarantor in connection with the
enforcement of any applicable Guarantee Agreement. Key Bank USA, National
Association, acknowledges that if any Financed Student Loan that is an Access
Loan is reacquired by it, such Financed Student Loan shall from the time of such
reacquisition become subject to the restrictions and requirements on sale or
transfer of loans by Key Bank USA, National Association, under the applicable
Coordination Agreement.

          
SECTION 10.07. Consolidation Loans. The parties to this Agreement, to the extent
applicable, hereby acknowledge and agree that, solely for purposes of allocating
consolidation loans that relate to Access Loans among lenders, pursuant to
Section 8.1 of the 1996-1998 Coordination Agreement, Section 8.1 of the
1993-1995 Coordination Agreement, Section 8.1 of the 1992 Coordination Agreement
and any similar provision in any similar Coordination Agreement with respect to
subsequent academic years, Key Bank USA, National Association, shall be deemed
to be the owner of, and lender on, all Financed Student Loans.

ARTICLE XI

Miscellaneous

          
SECTION 11.01. Amendment. This Agreement may be amended by the Seller, the
Master Servicer, the Administrator and the Eligible Lender Trustee, with the
consent of the Indenture Trustee and (provided that no Securities Insurer
Default has occurred and is continuing) the Securities Insurer, but without the
consent of the Swap Counterparty or any of the holders of Notes, to cure any
ambiguity, to correct or supplement any provisions in this Agreement or for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions in this Agreement or of modifying in any manner the rights of
the holders of Notes; provided, however, that such action shall not, as
evidenced by an Opinion of Counsel delivered to the Eligible Lender Trustee, the
Securities Insurer, the Swap Counterparty and the Indenture Trustee, adversely
affect in any material respect the interests of any holder of Notes, the
Securities Insurer or the Swap Counterparty.

          
This Agreement may also be amended from time to time by the Seller, the Master
Servicer, the Administrator and the Eligible Lender Trustee, with the consent of
the Indenture Trustee, the consent of the Securities Insurer and the Swap
Counterparty (which shall not be unreasonably withheld) (and, in the event a
Securities Insurer Default shall have occurred and is continuing, the consent of
holders of Notes representing not less than a majority of the Outstanding Amount
of the Notes), for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the holders of any Class of Notes; provided, however,
that no such amendment shall (a) increase or reduce in any manner the amount of,
or accelerate or delay the timing of, collections of payments with respect to
Financed Student Loans or distributions that shall be required to be made for
the benefit of the holders of Notes or (b) reduce the aforesaid percentage of
the Outstanding Amount of the Notes, which are required to consent to any such
amendment, without the consent of all outstanding holders of all Classes of
Notes (notwithstanding anything to the contrary contained in the Indenture or
the Trust Agreement, such rights of consent granted to the holders of the Notes
contained in clauses (a) and (b) of this proviso shall not be exercisable by the
Securities Insurer on behalf of the holders of the Notes).

          
Promptly after the execution of any such amendment or consent (or, in the case
of the Rating Agencies, five Business Days prior thereto), the Eligible Lender
Trustee shall furnish written notification of the substance of such amendment or
consent to each holder of Certificates, the Indenture Trustee, the Securities
Insurer, the Swap Counterparty and each of the Rating Agencies.

          
It shall not be necessary for the consent of holders of Notes pursuant to this
Section to approve the particular form of any proposed amendment or consent, but
it shall be sufficient if such consent shall approve the substance thereof.

          
Prior to the execution of any amendment to this Agreement, the Eligible Lender
Trustee and the Indenture Trustee shall be entitled to receive and rely upon an
Opinion of Counsel stating that the execution of such amendment is authorized or
permitted by this Agreement and the Opinion of Counsel referred to in Section
11.02(i)(1). The Eligible Lender Trustee and the Indenture Trustee may, but
shall not be obligated to, enter into any such amendment which affects the
Eligible Lender Trustee's or the Indenture Trustee's, as applicable, own rights,
duties or immunities under this Agreement or otherwise.

          
SECTION 11.02. Protection of Interests in Trust. (a) The Seller shall execute
and file such financing statements and cause to be executed and filed such
continuation statements, all in such manner and in such places as may be
required by law fully to preserve, maintain, and protect the interest of the
Issuer, the Eligible Lender Trustee, the Securities Insurer, the Swap
Counterparty and the Indenture Trustee in the Financed Student Loans and in the
proceeds thereof. The Seller shall deliver (or cause to be delivered) to the
Eligible Lender Trustee, the Securities Insurer, the Swap Counterparty and the
Indenture Trustee file-stamped copies of, or filing receipts for, any document
filed as provided above, as soon as available following such filing.

          
(b) Neither the Seller nor the Master Servicer shall (nor shall the Master
Servicer permit a Sub-Servicer to) change its name, identity or corporate
structure in any manner that would, could or might make any financing statement
or continuation statement filed in accordance with paragraph (a) above seriously
misleading within the meaning of Section 9-402(7) of the UCC, unless it shall
have given the Eligible Lender Trustee, the Securities Insurer, the Swap
Counterparty and the Indenture Trustee at least five days' prior written notice
thereof and shall have promptly filed (or cause to be filed) appropriate
amendments to all previously filed financing statements or continuation
statements.

          
(c) The Seller and the Master Servicer shall have an obligation (and the Master
Servicer shall cause each Sub-Servicer) to give the Eligible Lender Trustee, the
Securities Insurer, the Swap Counterparty and the Indenture Trustee at least 60
days' prior written notice of any relocation of its principal executive office
if, as a result of such relocation, the applicable provisions of the UCC would
require the filing of any amendment of any previously filed financing or
continuation statement or of any new financing statement and shall promptly file
(or cause to be filed) any such amendment. The Master Servicer shall (and shall
cause each Sub-Servicer to) at all times maintain each office from which it
shall service Financed Student Loans, and its principal executive office, within
the United States of America.

          
(d) The Master Servicer shall (and shall cause the applicable Sub-Servicer to)
maintain accounts and records as to each Financed Student Loan accurately and in
sufficient detail to permit (i) the reader thereof to know at any time the
status of such Financed Student Loan, including payments and recoveries made and
payments owing (and the nature of each) and (ii) reconciliation between payments
or recoveries on (or with respect to) each Financed Student Loan and the amounts
from time to time deposited in the Collection Account in respect of such
Financed Student Loan.

          
(e) The Master Servicer shall (and shall cause the applicable Sub-Servicer to)
maintain its computer systems so that, from and after the time of sale under
this Agreement of the Financed Student Loans, the Master Servicer's (or the
related Sub-Servicer's) master computer records (including any backup archives)
that refer to a Financed Student Loan shall indicate clearly the interest of the
Issuer, the Eligible Lender Trustee and the Indenture Trustee in such Financed
Student Loan and that such Financed Student Loan is owned by the Eligible Lender
Trustee on behalf of the Issuer and has been pledged to the Indenture Trustee
for the benefit of the Noteholders, the Swap Counterparty and the Securities
Insurer. Indication of the Issuer's, the Eligible Lender Trustee's and the
Indenture Trustee's interest in a Financed Student Loan shall be deleted from or
modified on the Master Servicer's (or the related Sub-Servicer's) computer
systems when, and only when, the related Financed Student Loan shall have been
paid in full or repurchased.

          
(f) If at any time the Seller or the Administrator shall propose to sell, grant
a security interest in, or otherwise transfer any interest in student loans to
any prospective purchaser, lender or other transferee, the Master Servicer shall
(or shall cause the applicable Sub-Servicer to) give to such prospective
purchaser, lender or other transferee computer tapes, records or printouts
(including any restored from backup archives) that, if they shall refer in any
manner whatsoever to any Financed Student Loan, shall indicate clearly that such
Financed Student Loan has been sold and is owned by the Eligible Lender Trustee
on behalf of the Issuer and has been pledged to the Indenture Trustee for the
benefit of the Noteholders, the Swap Counterparty and the Securities Insurer.

          
(g) Upon reasonable notice, the Master Servicer shall (and shall cause the
applicable Sub-Servicer to) permit the Indenture Trustee and the Securities
Insurer, the Swap Counterparty and their agents at any time during normal
business hours to inspect, audit (subject to Section 10.02 with respect to
Financed Student Loans that are Access Loans) and make copies of and abstracts
from the Master Servicer's (or the related Sub-Servicer's) records regarding any
Financed Student Loan.

          
(h) Upon request at any time the Eligible Lender Trustee or the Indenture
Trustee shall have reasonable grounds to believe that such request would be
necessary in connection with its performance of its duties under the Basic
Documents, or (provided that no Securities Insurer Default has occurred and is
continuing) upon request of the Securities Insurer, the Master Servicer shall
(or shall cause the applicable Sub-Servicer to) furnish to the Eligible Lender
Trustee or to the Indenture Trustee and the Securities Insurer (in each case,
with a copy to the Administrator), within five Business Days, a list of all
Financed Student Loans (by borrower social security number, type of loan and
date of issuance) then held as part of the Trust, and the Administrator shall
furnish to the Eligible Lender Trustee or to the Indenture Trustee and the
Securities Insurer, within 20 Business Days thereafter, a comparison of such
list to the list of Initial Financed Student Loans set forth in Schedule A as of
the Closing Date, and, for each Financed Student Loan that has been added to or
removed from the pool of loans held by the Eligible Lender Trustee on behalf of
the Issuer, information as to the date as of which and circumstances under which
each such Financed Student Loan was so added or removed.

	 
	          
(i)  The Seller shall deliver to the Eligible Lender Trustee, the
Securities Insurer, the Swap Counterparty and the Indenture Trustee:

          
(1) promptly after the execution and delivery of this Agreement and of each
amendment thereto and on each Transfer Date, an Opinion of Counsel either
(A) stating that, in the opinion of such counsel, all financing statements and
continuation statements have been executed and filed that are necessary fully to
preserve and protect the interest of the Eligible Lender Trustee and the
Indenture Trustee in the Financed Student Loans, and reciting the details of
such filings or referring to prior Opinions of Counsel in which such details are
given, or (B) stating that, in the opinion of such counsel, no such action shall
be necessary to preserve and protect such interest; and

          
(2) within 120 days after the beginning of each calendar year commencing April
30, 2001, an Opinion of Counsel, dated as of a date during such 120-day period,
either (A) stating that, in the opinion of such counsel, all financing
statements and continuation statements have been executed and filed that are
necessary fully to preserve and protect the interest of the Eligible Lender
Trustee and the Indenture Trustee in the Financed Student Loans, and reciting
the details of such filings or referring to prior Opinions of Counsel in which
such details are given, or (B) stating that, in the opinion of such counsel, no
such action shall be necessary to preserve and protect such interest; provided
that a single Opinion of Counsel may be delivered in satisfaction of the
foregoing requirement and that of Section 3.06(b) of the Indenture.

          
Each Opinion of Counsel referred to in clause (1) or (2) above shall specify (as
of the date of such opinion and given all applicable laws as in effect on such
date) any action necessary to be taken in the following year to preserve and
protect such interest.

          
(j) The Seller shall, to the extent required by applicable law, cause the Notes
to be registered with the Commission pursuant to Section 12(b) or Section 12(g)
of the Exchange Act within the time periods specified in such sections.

          
SECTION 11.03. Notices. All demands, notices, instructions, directions
and communications upon or to the Seller, the Administrator, the Master
Servicer, the Issuer, the Eligible Lender Trustee, the Indenture Trustee, the
Securities Insurer or the Rating Agencies under this Agreement shall be in
writing, personally delivered or mailed by certified mail, return receipt
requested, (or in the form of telex or facsimile notice, followed by written
notice delivered as aforesaid) and shall be deemed to have been duly given upon
receipt (a) in the case of the Seller, the Master Servicer, the Swap
Counterparty, the Cap Provider or the Administrator, to Key Bank USA, National
Association, 800 Superior Avenue, Fourth Floor, Cleveland, Ohio 44114,
Attention: Key Education Resources, KeyCorp Student Loan Trust 2000-B
(telephone: (216) 828-9342; facsimile: (216) 828-9301), (b) in the case of the
Issuer or the Eligible Lender Trustee, at the Corporate Trust Office of the
Eligible Lender Trustee, (c) in the case of the Indenture Trustee, at its
Corporate Trust Office, (d) in the case of the Securities Insurer, to MBIA
Insurance Corporation , 113 King Street, Armonk, New York 10504, Attention:
Insured Portfolio Management-SF (telephone: (914) 765-3781; facsimile: (914)
765-3810), (e) in the case of Moody's, to Moody's Investors Service, Inc., 99
Church Street, New York, New York 10007, Attention: ABS Monitoring Department
(telephone: (212) 553-4948; facsimile: (212) 553-4600), (f) in the case of
Fitch, to Fitch, Inc., One State Street Plaza, New York, New York 10004,
(telephone: (212) 908-0500; facsimile: (212) 480-4435), and (g) in the case of
S&P to Standard & Poor's, 55 Water Street, Attention: Asset Backed Surveillance
Department (telephone (212) 438-2000; facsimile (212) 438-2649), as to each of
the foregoing, at such other address as shall be designated by written notice to
the other parties.

          
SECTION 11.04. Assignment. Notwithstanding anything to the contrary
contained herein, except as provided in Sections 6.05 and 7.03 and as provided
in the provisions of this Agreement concerning the resignation of the Master
Servicer or the Administrator, this Agreement may not be assigned by the Seller,
the Administrator or the Master Servicer. This Agreement may only be assigned by
the Eligible Lender Trustee to its permitted successor pursuant to the Trust
Agreement.

          
SECTION 11.05. Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Seller, the Master Servicer, the
Issuer and the Eligible Lender Trustee, the Indenture Trustee, the Securities
Insurer and the holders of Notes, as third party beneficiaries, and nothing in
this Agreement, whether express or implied, shall be construed to give to any
other Person any legal or equitable right, remedy or claim in the Trust Estate
or under or in respect of this Agreement or any covenants, conditions or
provisions contained herein.

          
SECTION 11.06. Severability. Any provision of this Agreement that is 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 hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

          
SECTION 11.07. Separate Counterparts. This Agreement may be executed by the
parties hereto in separate counterparts, each of which
when so executed and delivered shall be an original, but all such counterparts
shall together constitute but one and the same instrument.

          
SECTION 11.08. Headings. The headings of the various Articles and Sections
herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

          
SECTION 11.09. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

          
SECTION 11.10. Assignment to Indenture Trustee. The Seller hereby acknowledges
and consents to any mortgage, pledge, assignment and grant by the Issuer to the
Indenture Trustee pursuant to the Indenture for the benefit of the holders of
the Notes of a security interest in all right, title and interest of the Issuer
in, to and under the Financed Student Loans and/or the assignment of any or all
of the Issuer's rights and obligations hereunder to the Indenture Trustee.

          
SECTION 11.11. Nonpetition Covenants. (a) Notwithstanding any prior termination
of this Agreement, the Master Servicer, the Administrator, the Eligible Lender
Trustee and the Seller shall not, prior to the date which is one year and one
day after the termination of this Agreement with respect to the Issuer,
acquiesce, petition or otherwise invoke or cause the Issuer to invoke the
process of any court or government authority for the purpose of commencing or
sustaining a case against the Issuer under any Federal or state bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Issuer or any
substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Issuer.

          
(b) Notwithstanding any prior termination of this Agreement, the Eligible Lender
Trustee, the Master Servicer or any successor Master Servicer shall not, prior
to the date which is one year and one day after the termination of this
Agreement with respect to the Seller, acquiesce, petition or otherwise invoke or
cause the Seller to invoke the process of any court or government authority for
the purpose of commencing or sustaining a case against the Seller under any
insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Seller or any
substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Seller.

          
SECTION 11.12. Limitation of Liability of Eligible Lender Trustee and Indenture
Trustee. (a) Notwithstanding anything contained herein to the contrary, this
Agreement has been signed by Bank One, National Association, not in its
individual capacity but solely in its capacity as Eligible Lender Trustee of the
Issuer and, subject to paragraph (d) below, in no event shall Bank One, National
Association, in its individual capacity or, except as expressly provided in the
Trust Agreement, as beneficial owner of the Issuer have any liability for the
representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto as to all of which recourse shall be had solely to the assets of
the Issuer.

          
(b) [RESERVED]

          
(c) Notwithstanding anything contained herein to the contrary, this Agreement
has been accepted by Bankers Trust Company not in its individual capacity but
solely as Indenture Trustee and, except as provided in paragraph (d) below, in
no event shall Bankers Trust Company have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder
or in any of the certificates, notices or agreements delivered pursuant hereto,
as to all of which recourse shall be had solely to the assets of the Issuer.

          
(d) Notwithstanding any other provision in this Agreement or the other Basic
Documents, nothing in this Agreement or the other Basic Documents shall be
construed to limit the legal responsibility of the Eligible Lender Trustee or
the Indenture Trustee to the U.S. Secretary of Education or a Guarantor for any
violations of statutory or regulatory requirements that may occur with respect
to loans held by the Eligible Lender Trustee or the Indenture Trustee, pursuant
to, or to otherwise comply with their obligations under, the Higher Education
Act or implementing regulations, it being expressly understood that the
Indenture Trustee has no obligation or duty pursuant to this Section except in
the event of Foreclosure or pursuant to Section 8.01 as a successor Master
Servicer.

          
SECTION 11.13. Consent of the Securities Insurer. Whenever the consent or
approval of the Securities Insurer is required under this Agreement, the Great
Lakes Sub-Servicing Agreement and the PHEAA Sub-Servicing Agreement, such
consent or approval shall be reasonably given, except for consents or approvals
required under Article VIII hereof with respect to which the consent or approval
of the Securities Insurer shall be given at the sole discretion of the
Securities Insurer.

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

	 
	KEYCORP STUDENT LOAN TRUST 2000-B,

as Issuer

By:   BANK ONE, NATIONAL

        ASSOCIATION, not in its individual

        capacity but solely as Eligible Lender

        Trustee on behalf of the, Trust,

       By:     /s/ Keith R. Richardson          

                 Name:  Keith R. Richardson

                 Title:  Authorized Officer

KEY BANK USA, NATIONAL ASSOCIATION,

as Seller,

By:     /s/ Darlene H. Dimitrijevs          

          Name:  Darlene H. Dimitrijevs

          Title:  Senior Vice President

KEY BANK USA, NATIONAL ASSOCIATION,

as Master Servicer,

By:     /s/ Darlene H. Dimitrijevs          

          Name:  Darlene H. Dimitrijevs

          Title:  Senior Vice President

KEY BANK USA, NATIONAL ASSOCIATION,

as Administrator,

By:     /s/ Darlene H. Dimitrijevs          

          Name:  Darlene H. Dimitrijevs

          Title:  Senior Vice President

BANK ONE, NATIONAL ASSOCIATION,

not in its individual  capacity but solely

as Eligible Lender Trustee,

By:     /s/ Keith R. Richardson          

          Name:  Keith R. Richardson

          Title:  Authorized Officer

Acknowledged, accepted, and with

respect to Article X, agreed to,

as of the day and year

first above written:

BANKERS TRUST COMPANY,

 not in its individual capacity

but solely as Indenture Trustee,

By:   /s/ Franco B.Talavera              

        Name:   Franco B. Talavera

        Title:   Assistant Vice President

Acknowledged and accepted

as of the day and year

first above written:

BANKERS TRUST COMPANY,

not in its individual capacity

but solely in its capacity as

securities intermediary

under Section 5.01,

By:   /s/ Franco B.Talavera              

        Name:   Franco B. Talavera

        Title:   Assistant Vice President

APPENDIX A

DEFINITIONS AND USAGE

Usage

          
The following rules of construction and usage shall be applicable to any
instrument that is governed by this Appendix:

          
(a) All terms defined in this Appendix shall have the defined meanings when used
in any instrument governed hereby and in any certificate or other document made
or delivered pursuant thereto unless otherwise defined therein.

          
(b) As used herein, in any instrument governed hereby and in any certificate or
other document made or delivered pursuant thereto, accounting terms not defined
in this Appendix or in any such instrument, certificate or other document, and
accounting terms partly defined in this Appendix or in any such instrument,
certificate or other document to the extent not defined, shall have the
respective meanings given to them under generally accepted accounting principles
as in effect on the date of such instrument. To the extent that the definitions
of accounting terms in this Appendix or in any such instrument, certificate or
other document are inconsistent with the meanings of such terms under generally
accepted accounting principles, the definitions contained in this Appendix or in
any such instrument, certificate or other document shall control.

          
(c) The words "hereof," "herein," "hereunder" and words of similar import when
used in an instrument refer to such instrument as a whole and not to any
particular provision or subdivision thereof; references in an instrument to
"Article," "Section" or another subdivision or to an attachment are, unless the
context otherwise requires, to an article, section or subdivision of or an
attachment to such instrument; and the term "including" means "including without
limitation."

          
(d) The definitions contained in this Appendix are equally applicable to both
the singular and plural forms of such terms and to the masculine as well as to
the feminine and neuter genders of such terms.

          
(e) Any agreement, instrument or statute defined or referred to below or in any
agreement or instrument that is governed by this Appendix means such agreement
or instrument or statute as from time to time amended, modified or supplemented,
including (in the case of agreements or instruments) by waiver or consent and
(in the case of statutes) by succession of comparable successor statutes and
includes (in the case of agreements or instruments) references to all
attachments thereto and instruments incorporated therein. References to a Person
are also to its permitted successors and assigns.

Definitions

          
"Accepted Servicing Procedures" means that the Master Servicer shall (or
shall cause the applicable Sub-Servicer to) manage, service, administer and make
collections on the Financed Student Loans with reasonable care, using that
degree of skill and attention that the Master Servicer (or such Sub-Servicer)
exercises with respect to all comparable student loans that it services but, in
any event, in accordance with customary and usual standards of practice of
prudent lenders and loan servicers administering similar student loans. The
Master Servicer shall (or shall cause the applicable Sub-Servicer to) manage,
service, administer and make collections with respect to the Financed Student
Loans in accordance with, and otherwise comply with, all applicable Federal and
state laws, including all applicable standards, guidelines and requirements of
the Higher Education Act (in the case of the Financed Federal Loans) and any
applicable Guarantee Agreement (in the case of the Financed Guaranteed Loans).
These procedures shall include collection and posting of all payments,
responding to inquiries of borrowers on such Financed Student Loans, monitoring
borrowers' status, making required disclosures to borrowers, investigating
delinquencies, sending payment coupons to borrowers and otherwise establishing
repayment terms, reporting tax information to borrowers, if applicable,
accounting for collections and furnishing monthly and annual statements with
respect thereto to the Administrator (and upon request the Administrator shall
provide copies thereof to the Securities Insurer). The Master Servicer shall (or
shall cause the applicable Sub-Servicer to) follow its customary standards,
policies and procedures in performing its duties as Master Servicer (or
Sub-Servicer, as the case may be).

          
"Access Loans" means those Financed Student Loans that were originated under The
Law Access(R)Program or The Access GroupSM Loan Program as administered by LSAS
or LAI.

          
"Act" has the meaning specified in Section 11.03(a) of the Indenture.

          
"Additional Fundings" means the moneys transferred from the Pre-Funding
Account and the Escrow Account on Transfer Dates during the Funding Period, and
shall consist of amounts paid to the Seller to acquire Subsequent Pool Student
Loans and Other Subsequent Student Loans as of the applicable Subsequent Cut-off
Dates, to pay capitalized interest on the Financed Student Loans and to pay
Guarantee Fee Advances, as provided in Section 5.08(a) of the Sale and Servicing
Agreement.

          
"Additional Student Loans" means the Subsequent Pool Student Loans, the Other
Subsequent Student Loans, Guarantee Fee Advances and the fundings of accrued
interest to be capitalized.

          
"Adjusted Initial Pool Balance" means, the sum of the Pool Balance as of the
Cutoff Date, which is $548,653,496, plus as of each Subsequent Cutoff Date the
principal balance of each Subsequent Pool Student Loan sold to the Eligible
Lender Trustee on behalf of the Issuer on each Transfer Date during the Funding
Period (but no later than the Special Determination Date).

          
"Administration Agreement" means the Administration Agreement dated as of
September 1, 2000, among the Issuer, the Indenture Trustee and the
Administrator.

          
"Administration Fee" has the meaning specified in Section 3 of the
Administration Agreement.

          
"Administrator" means Key Bank USA, National Association, a national banking
association, in its capacity as administrator of the Issuer and the Financed
Student Loans.

          
"Administrator Default" has the meaning specified in Section 8.01(b) of the Sale
and Servicing Agreement.

          
"Administrator's Certificate" means an Officers' Certificate of the
Administrator delivered pursuant to Section 4.08(c) of the Sale and Servicing
Agreement and containing the information required by Section 4.08(c).

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

          
"Ameritrust" means Ameritrust Company National Association, predecessor in
interest to Society.

          
"Applicable Index" means (1) with respect to LIBOR Indexed Securities,
Three-Month LIBOR and (2) with respect to T-Bill Indexed Securities, the T-Bill
Rate.

          
"Applicable Note Margin" means with respect to the Class A-1 Notes, 0.12%, and
with respect to the Class A-2 Notes, 0.31%.

          
"ASA" means the Massachusetts Higher Education Assistance Corporation now doing
business as American Student Assistance Corporation, a Massachusetts non-profit
corporation.

          
"Assigned Agreements" means the following agreements, as the same may be amended
and restated from time to time, (i) the Deposit Agreement dated as of January
28, 1992, between TERI and the Seller (as successor to Ameritrust), (ii) the
Security Agreement dated as of January 28, 1992, between TERI and the Seller (as
successor to Ameritrust), (iii) the Letter Agreement dated as of January 28,
1992, between LSAS and the Seller (as successor to Ameritrust), (iv) the Trust
Agreement dated as of July 14, 1992 and restated as of July 1, 1994, among the
Seller, LSAS and First Bank (N.A.), Milwaukee, Wisconsin, as trustee, (v) the
LAL/BEL Guarantee Agreements dated as of January 28, 1992 and December 21, 1992,
between the Seller and TERI, and (vi) the Private Guarantee Agreement dated as
of March 23, 1995, among the Seller, TERI, Society National Bank, Indiana, and
Wilmington Trust Company, (vii) the Consolidated Deposit Agreement and
Consolidated Security Agreement each dated November 1, 1995 between TERI and
Society, and (viii) Alternative DEAL Surety Bond Numbers 1994-A, 1994-B, 1995-A
and 1996-A, dated February 23, 1994, October 4, 1994, July 1, 1995 and July 1,
1996, respectively, issued by HICA to KeyBank of Maine, Society, Society and
Seller, respectively; and (ix) the Pledged Collateral Account Control Agreement
dated as of January 1, 1999, among TERI, Seller and McDonald Investments Inc., a
wholly-owned subsidiary of KeyCorp, all to the extent necessary to permit the
Trust to realize its rights and benefits under the assignment of the agreements
referred to in clauses (i) through (ix) above.

          
"Assigned Rights" has the meaning specified in Section 2.01 of the Sale and
Servicing Agreement.

          
"Auction Purchase Amount" with respect to the Financed Student Loans means the
aggregate unpaid principal balance owed by the applicable borrowers thereon plus
accrued interest thereon to the date of purchase less
the amount on deposit in the Reserve Account as of such date.

          
"Authorized Officer" means (i) with respect to the Issuer, any officer of the
Eligible Lender Trustee who is authorized to act for the Eligible Lender Trustee
in matters relating to the Issuer pursuant to the Basic Documents and who is
identified on the list of Authorized Officers delivered by the Eligible Lender
Trustee to the Indenture Trustee on the Closing Date (as such list may be
modified or supplemented from time to time thereafter), (ii) with respect to the
Administrator, any officer of the Administrator or any of its Affiliates who is
authorized to act for the Administrator in matters relating to itself or to the
Issuer and to be acted upon by the Administrator pursuant to the Basic Documents
and who is identified on the list of Authorized Officers delivered by the
Administrator to the Indenture Trustee on the Closing Date (as such list may be
modified or supplemented from time to time thereafter), (iii) with respect to
the Seller, any officer of the Seller or any of its Affiliates who is authorized
to act for the Seller in matters relating to or to be acted upon by the Seller
pursuant to the Basic Documents and who is identified on the list of Authorized
Officers delivered by the Seller to the Indenture Trustee on the Closing Date
(as such list may be modified or supplemented from time to time thereafter),
(iv) with respect to the Master Servicer, any officer of the Master Servicer or
any of its Affiliates who is authorized to act for the Master Servicer in
matters relating to or to be acted upon by the Master Servicer pursuant to the
Basic Documents and who is identified on the list of Authorized Officers
delivered by the Master Servicer to the Indenture Trustee on the Closing Date
(as such list may be modified or supplemented from time to time thereafter), and
(v) with respect to any Sub-Servicer, any officer of the Sub-Servicer or any of
its Affiliates who is authorized to act for such Sub-Servicer in matters
relating to or to be acted upon by the Sub-Servicer, pursuant to the applicable
Sub-Servicing Agreement, and who is identified on the list of Authorized
Officers delivered by such Sub-Servicer to the Master Servicer on the Closing
Date (as such list may be modified or supplemented from time to time
thereafter).

          
          
"Available Funds" means, with respect to a Distribution Date or any Monthly
Servicing Payment Date, the sum of the following amounts received with respect
to the then elapsed portion of the related Collection Period to the extent not
previously distributed:

	 
 	          (i)
  all collections received by the Master Servicer (or any Sub-Servicer acting on
its behalf) on the Financed Student Loans (including any Guarantee Payments
received with respect to such Financed Student Loans), but net of (x), any
Federal Origination Fee and Federal Consolidation Loan Rebate payable to the
Department on Federal Consolidation Loans disbursed after October 1, 1993,
(y) any applicable administrative fees, late fees or similar fees received from
a borrower, and (z) any collections in respect of principal on the Financed
Student Loans applied by the Trust to repurchase guaranteed loans from the
Guarantors in accordance with the Guarantee Agreements;

	 
	          
(ii)  any Interest Subsidy Payments and Special Allowance Payments
received by the Eligible Lender Trustee during the then elapsed portion of such
Collection Period with respect to the Financed Federal Loans;

	 
	          
(iii)  all Liquidation Proceeds and all Recoveries in respect of Liquidated
Student Loans which were written off in prior Collection Periods or prior months
of such Collection Period;

	 
	          
(iv)  the aggregate Purchase Amounts received for those Financed Student Loans
repurchased by the Seller or purchased by the Master Servicer (or any
Sub-Servicer acting on its behalf) under an obligation which arose during the
elapsed portion of such Collection Period;

	 
	          
(v)  the aggregate amounts, if any, received from the Seller or the
Master Servicer (or any Sub-Servicer acting on its behalf), as the case may be,
as reimbursement of non-guaranteed interest amounts, or, lost Interest Subsidy
Payments and Special Allowance Payments, with respect to the Financed Federal
Student Loans pursuant to Section 3.02 or 4.06, respectively of the Sale and
Servicing Agreement;

	 
	          
(vi)  amounts deposited by the Seller into the Collection Account in
connection with the making of Consolidation Loans pursuant to Section 2.03 of
the Sale and Servicing Agreement;

	 
	          
(vii)  with respect to the initial Distribution Date, the amount
deposited in the Collection Account on the Closing Date pursuant to Section
5.01(a)(i) of the Sale and Servicing Agreement;

	 
	          
(viii)  Investment Earnings for such Distribution Date;

	 
	          
(ix)  amounts withdrawn from the Reserve Account in excess of the
Specified Reserve Account Balance and deposited into the Collection Account;

	 
	          
(x)  amounts withdrawn from the Escrow Account and deposited into the
Collection Account;

	 
	          
(xi)  with respect to the Distribution Date on or immediately after the end of
the Funding Period, the amount transferred from the Pre-Funding Account to the
Collection Account;

	 
	          
(xii)  (a) any Net Receipt received from the Swap Counterparty with respect to
the related Interest Period, and (b) any Termination Payment received from the
Swap Counterparty with respect to a Termination Event under the Interest Rate
Swap to the extent not paid to a substitute Swap Counterparty in accordance with
the Interest Rate Swap; and

	 
	          
(xiii)  any proceeds received in connection with the sale of the
Financed Student Loans pursuant to Section 9.01 of the Sale and Servicing
Agreement, or sums collected by the Indenture Trustee pursuant to Sections 5.03
or 5.04(a) of the Indenture.

	 
	
provided, however, that Available Funds will exclude all payments and
proceeds (including Liquidation Proceeds) of any Financed Student Loans, the
Purchase Amount of which has been included in Available Funds for a prior
Distribution Date; provided, further, that if on any Distribution Date there
would not be sufficient funds, after application of Available Funds and amounts
available from the Reserve Account and the Pre-Funding Account to pay any of the
items specified in clause (i) through (iv) of Section 5.05(c) of the Sale and
Servicing Agreement for such Distribution Date, then Available Funds for such
Distribution Date will include, in addition to the Available Funds amounts on
deposit in the Demand Deposit Account on the Determination Date relating to such
Distribution Date which would have constituted Available Funds for the
Distribution Date succeeding such Distribution Date, up to the amount necessary
to pay the items specified in clause (i) through (iv) of Section 5.05(c) of the
Sale and Servicing Agreement, and the Available Funds for such succeeding
Distribution Date will be adjusted accordingly.

          
"Basic Documents" means the Trust Agreement, the Indenture, the Sale and
Servicing Agreement, the Administration Agreement, the Note Depository
Agreement, the Guarantee Agreements, the Cap Agreement, the Interest Rate Swap,
the Insurance Agreement and other documents and certificates delivered in
connection with any thereof.

          
"Bar Exam Loan" means a Bar Examination Loan made by the Seller to an eligible
borrower pursuant to the Programs.

          
"Benefit Plan" has the meaning specified in Section 3.04 of the Trust Agreement.

          
"Book-Entry Note" means a beneficial interest in the Notes, ownership and
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 2.10 of the Indenture.

          
"Business Day" means any day other than a Saturday, a Sunday or a day on which
banking institutions or trust companies in New York, New York or Cleveland,
Ohio, are authorized or obligated by law, regulation or executive order to
remain closed.

          
"Calculated Pool Balance" means, at any time, the aggregate principal balance of
the Financed Student Loans, or specified subset thereof, at the Cutoff Date,
Subsequent Cutoff Date or Statistical Cutoff Date, as specified (including
accrued interest thereon at such date to the extent such interest will be
capitalized upon commencement of repayment).

          
"Cap Account" means the account designated as such, established and maintained
pursuant to Section 5.01(a)(v) of the Sale and Servicing Agreement.

          
"Cap Agreement" means that certain interest rate protection agreement,
between the Trust and the Cap Provider as documented according to a 1992 ISDA
Master Agreement (Multicurrency--Cross Border), including the related sole
confirmation and the related schedule, each dated as of September 15, 2000, and
each modified to reflect the terms of the Notes and the Basic
Documents.

          
"Cap Provider" means Key Bank USA, National Association in its capacity as a
party to the Cap Agreement.

          
"Certificate" means the Trust Certificate issued pursuant to the Trust
Agreement, substantially in the form of Exhibit A thereto.

          
"Certificate Paying Agent" means any paying agent or co-paying agent appointed
pursuant to Section 3.09 of the Trust Agreement, which shall initially be the
Eligible Lender Trustee.

          
"Certificate Register" and "Certificate Registrar" means the
register mentioned and the registrar appointed pursuant to Section 3.04 of the
Trust Agreement.

          
"Certificateholder" means the Person in whose name the Certificate is
registered in the Certificate Register.

          
"Class" means reference to any of the Class A-1 or Class A-2 Notes, as
applicable.

          
"Class A Cap Funds" means, with respect to any Distribution Date the lesser of
(x) the sum of the Class A-1 Cap Payment and the Class A-2 Cap Payment relating
to such Distribution Date and (y) the amount of funds on deposit in the Cap
Account on such Distribution Date.

          
"Class A-1 Cap Payment" means with respect to any Distribution Date prior to the
termination of the Cap Agreement, an amount equal to (x) the positive
difference, if any, between (1) the amount, if any, by which the amount of
interest calculated at the Formula Rate for the related Interest Period exceeds
the amount of interest calculated at the Student Loan Rate for such Interest
Period for the Class A-1 Notes minus (2) the amount of Available Funds, if any,
remaining to pay the Noteholders' Interest Index Carryover with respect to the
Class A-1 Notes on such Distribution Date pursuant to Section 5.05(c)(x)(1) of
the Sale and Servicing Agreement for the Class A-1 Notes for such Interest
Period plus (y) interest calculated at the Formula Rate for the Class A-1 Notes
on any amounts due but unpaid by the Cap Provider under clause (x) above.

          
"Class A-2 Cap Payment" means, with respect to any Distribution Date prior to
the termination of the Cap Agreement, an amount equal to (x) the positive
difference, if any, between (1) the amount, if any, by which the amount of
interest calculated at the Formula Rate for the related Interest Period exceeds
the amount of interest calculated at the Student Loan Rate for such Interest
Period for the Class A-2 Notes minus (2) the amount of Available Funds, if any,
remaining to pay the Noteholders' Interest Index Carryover with respect to the
Class A-2 Notes on such Distribution Date pursuant to Section 5.05(c)(x)(1) of
the Sale and Servicing Agreement plus (y) interest calculated at the Formula
Rate for the Class A-2 Notes due but unpaid by the Cap Provider under clause (x)
above.

          
"Class A Notes" means the Class A-1 Notes and Class A-2 Notes.

          
"Class A-1 Note" means a Floating Rate Class A-1 Asset Backed Note issued
pursuant to the Indenture, substantially in the form of Exhibit A-1 thereto.

          
"Class A-2 Note" means a Floating Rate Class A-2 Asset Backed Note issued
pursuant to the Indenture, substantially in the form of Exhibit A-2 thereto.

          
"Clearing Agency" means an organization registered as a "clearing agency"
pursuant to Section 17A of the Exchange Act.

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

          
"Closing Date" means September 15, 2000.

          
"Code" means the Internal Revenue Code of 1986, as amended from time to time,
and Treasury Regulations promulgated thereunder.

          
"Cohort Default Rate" means the percentage of an educational institution's
borrowers who enter repayment on certain Federal Family Education Loan Program
and/or William D. Ford Federal Direct Loan Program loans during a particular
fiscal year and default or meet other specified conditions before the end of the
next fiscal year, as is more specifically described in 34 C.F.R. Part 668
(including the definition of terms set forth herein).

          
"Collateral" has the meaning specified in the Granting Clause of the Indenture.

          
"Collection Account" means the account designated as such, established and
maintained pursuant to Section 5.01(a)(i) of the Sale and Servicing Agreement.

          
"Collection Period" means, with respect to the first Distribution Date, the
period beginning on the Cutoff Date with respect to the Initial Financed Student
Loans, or the Subsequent Cutoff Date with respect to Subsequent Pool Student
Loans, as applicable, and ending on December 31, 2000 and with respect to each
subsequent Distribution Date, the Collection Period means the three calendar
months immediately following the end of the previous Collection Period.

          
"Commission" means the Securities and Exchange Commission.

          
"Consolidation Loans" means Federal Consolidation Loans and Private
Consolidation Loans, collectively.

          
"Coordination Agreements" means the following agreements, as the same may be
amended and restated from time to time, (i) the Coordination Agreement, dated as
of February 15, 1990, as amended, by and among LAI (as successor to LSAS),
PHEAA, ASA, TERI and Society (as successor by merger to Ameritrust) (the "1990
Coordination Agreement"); (ii) the Coordination Agreement, dated as of January
4, 1991, as amended, by and among LAI (as successor to LSAS), PHEAA, ASA, TERI
and Society (as successor by merger to Ameritrust) (the "1991 Coordination
Agreement"); (iii) the Coordination Agreement, dated as of January 28, 1992, as
amended, by and among LAI (as successor to LSAS), PHEAA, ASA, ELSI, TERI and
Society (as successor by merger to Ameritrust) (the "1992 Coordination
Agreement"); (iv) the Coordination Agreement, dated as of December 21, 1992, as
amended, by and among LAI (as successor to LSAS), PHEAA, ASA, ELSI, TERI and
Society (the "1993-1995 Coordination Agreement"); and (v) the Coordination
Agreement, dated as of March 23, 1995, as amended, by and among LAI, PHEAA, ASA,
TERI and Society (the "1996-1998 Coordination Agreement").

          
"Corporate Trust Office" means (i) with respect to the Indenture Trustee, the
principal office of the Indenture Trustee at which at any particular time its
corporate trust business shall be administered, which office at the Closing Date
is located at Four Albany Street, 10th Floor, New York, New York 10006,
Attention: Corporate Trust and Agency Group, Structured Finance Team (telephone:
(212) 250-6595; facsimile: (212) 250-6439) or at such other address as the
Indenture Trustee may designate from time to time by notice to the Noteholders,
the Securities Insurer, the Swap Counterparty and the Seller, or the principal
corporate trust office of any successor Indenture Trustee (the address of which
the successor Indenture Trustee will notify the Noteholders, the Securities
Insurer, the Swap Counterparty and the Seller) and (ii) with respect to the
Eligible Lender Trustee, the principal corporate trust office of the Eligible
Lender Trustee located at 1 Bank One Plaza, Suite IL1-0126, Chicago, Illinois
60670, Attention: Corporate Trust Administration (telephone: (312) 407-1892;
facsimile: (312) 407-1708); or at such other address as the Eligible Lender
Trustee may designate by notice to the Certificateholder, the Securities
Insurer, the Swap Counterparty and the Seller, or the principal corporate trust
office of any successor Eligible Lender Trustee (the address of which the
successor Eligible Lender Trustee will notify the Certificateholder, the
Securities Insurer, the Swap Counterparty and the Seller).

          
"CSAC" means the California Student Aid Commission, an agency of the State of
California.

          
"CSLF" means the Connecticut Student Loan Foundation.

          
"Cutoff Date" means with respect to the Initial Pool Student Loans, September 1,
2000.

          
"Default" means any occurrence that is, or with notice or the lapse of time or
both would become, an Event of Default.

          
"Deficiency Amount" shall have the meaning given to such term in the Securities
Guaranty Insurance Policy.

          
"Definitive Notes" has the meaning specified in Section 2.10 of the Indenture.

          
"Delivery" or "Deliver" when used with respect to Trust Account
Property means the following and such additional or alternative procedures as
may hereafter become appropriate to effect the complete transfer of ownership of
any such Collateral to the Indenture Trustee, free and clear of any adverse
claims, consistent with changes in applicable law or regulations or the
interpretation thereof:

          
(a) with respect to bankers' acceptances, commercial paper, negotiable
certificates of deposit and other obligations that constitute instruments and
are susceptible of physical delivery ("Physical Property"):

	 
	          
(i)  transfer of possession thereof to the Indenture Trustee endorsed
to, or registered in the name of, the Indenture Trustee, or its nominee or
endorsed in blank;

          
(b) with respect to a certificated security:

	 
	          
(i)  delivery thereof in bearer form to the Indenture Trustee; or

	 
	          
(ii)  delivery thereof in registered form to the Indenture Trustee and

	 
	                 
(A)  the certificate is endorsed to the Indenture Trustee or in blank by
effective endorsement; or

	 
	                 
(B)  the certificate is registered in the name of the Indenture
Trustee, upon original issue or registration of transfer by the issuer;

          
(c)  with respect to an uncertificated security:

	 
	          
(i)  the delivery of the uncertificated security to the Indenture
Trustee; or

	 
	          
(ii)  the issuer has agreed that it will comply with instructions originated by
the Indenture Trustee, without further consent by the registered owner;

          
(d) with respect to any security issued by the U.S. Treasury, the Federal Home
Loan Mortgage Corporation or by the Federal National Mortgage Association that
is a book-entry security held through the Federal Reserve System pursuant to
Federal book-entry regulations:

	 
	          
(i)  a Federal Reserve Bank by book entry credits the book-entry security to the
securities account (as defined in 31 CFR Part 357) of a participant (as defined
in 31 CFR Part 357) which is also a securities intermediary; and

	 
	          
(ii)  the participant indicates by book entry that the book-entry security has
been credited to the Indenture Trustee's securities account, as applicable;

          
(e) with respect to a security entitlement:

	 
	          
(i)  the Indenture Trustee, becomes the entitlement holder; or

	 
	          
(ii)  the securities intermediary has agreed that it will comply with
entitlement orders originated by the Indenture Trustee;

          
(f) without further consent by the entitlement holder for the purpose of clauses
(b) and (c) hereof "delivery" means:

	 
	          
(i)   with respect to a certificated security:

	 
	                 
(A)  the Indenture Trustee, acquires possession thereof;

	 
	                 
(B)  another person (other than a securities intermediary) either acquires
possession thereof on behalf of the Indenture Trustee or, having previously
acquired possession thereof, acknowledges that it holds for the Indenture
Trustee; or

	 
	                 
(C)  a securities intermediary acting on behalf of the Indenture Trustee acquires
possession of thereof, only if the certificate is in registered form and has
been specially endorsed to the Indenture Trustee by an effective endorsement;

	 
	          
(ii)  with respect to an uncertificated security:

	 
	                 
(A)  the issuer registers the Indenture Trustee as the registered owner, upon
original issue or registration of transfer; or

	 
	                 
(B)  
another person (other than a securities intermediary) either becomes the
registered owner thereof on behalf of the Indenture Trustee, or, having
previously become the registered owner, acknowledges that it holds for the
Indenture Trustee;

          
(g) for purposes of this definition, except as otherwise indicated, the
following terms shall have the meaning assigned to each such term in the
UCC:

	 
	          
(i)  "certificated security"

	 
	          
(ii)  "effective endorsement"

	 
	          
(iii)  "entitlement holder"

	 
	          
(iv)  "instrument"

	 
	          
(v)  "securities account"

	 
	          
(vi)  "securities entitlement"

	 
	          
(vii)  "securities intermediary"

	 
	          
(viii)  "uncertificated security"

          
(h) in each case of Delivery contemplated herein, the Indenture Trustee shall
make appropriate notations on its records, and shall cause same to be made of
the records of its nominees, indicating that securities are held in trust
pursuant to and as provided in this Agreement.

          
"Demand Deposit Account" means the account designated as such, established and
maintained pursuant to Section 5.01(a)(vi) of the Sale and Servicing Agreement.

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

          
"Depositor" means the Seller in its capacity as Depositor under the Trust
Agreement.

          
"Depository" has the meaning specified in Section 2.04 of the Indenture.

          
"Determination Date" means, with respect to any Monthly Servicing Payment Date
or Distribution Date, as the case may be, the third Business Day preceding such
Monthly Servicing Payment Date or Distribution Date.

          
"Distribution Date" means, with respect to each Collection Period, the
twenty-fifth day of each January, April, July and October or, if such day is not
a Business Day, the immediately following Business Day, commencing on January
25, 2001.

          
"DTC" means the Depository Trust Company, a New York corporation.

          
"ELSI" means Education Loan Services, Inc., a Massachusetts corporation.

          
"Eligible Deposit Account" means either (a) a segregated account with an
Eligible Institution or (b) a segregated trust account with the corporate trust
department of a depository institution organized under the laws of the United
States of America or any one of the States (or any domestic branch of a foreign
bank), having corporate trust powers and acting as trustee for funds deposited
in such account, so long as any of the securities of such depository institution
have a credit rating from at least two nationally recognized Rating Agencies in
one of their respective generic rating categories which signifies investment
grade and is acceptable to the Securities Insurer.

          
"Eligible Institution" means a depository institution (which may be, without
limitation, the Seller or any Affiliate of the Seller (but only if all rights of
set-off have been waived), the Eligible Lender Trustee or any Affiliate of the
Eligible Lender Trustee, or the Indenture Trustee or any Affiliate of the
Indenture Trustee) organized under the banking laws of the United States of
America or any one of the States (or any domestic branch of a foreign bank), (a)
which has (i) a short-term senior unsecured debt rating of P-1 or better by
Moody's, (ii) either (A) a long term senior unsecured debt rating of AAA by S&P
or (B) a short-term senior unsecured debt rating A-1+ by S&P, and (iii) if rated
by Fitch (A) a long term senior unsecured debt rating of AAA by Fitch and (B)
short-term senior of F-1+ by Fitch, or any other long-term, short-term or
certificate of deposit rating acceptable to the Rating Agencies and the
Securities Insurer, and (b) whose deposits are insured by the FDIC. If so
qualified, the Seller or any Affiliate of the Seller, the Eligible Lender
Trustee or any Affiliate of the Eligible Lender Trustee, or Indenture Trustee or
any Affiliate of the Indenture Trustee, may be considered an Eligible
Institution.

          
"Eligible Investments" mean book-entry securities, negotiable instruments or
securities represented by instruments in bearer or registered form which
evidence:

          
(a) direct obligations of, and obligations fully guaranteed as to timely payment
by, the United States of America;

          
(b)demand
deposits, time deposits or certificates of deposit of any depository institution
or trust company incorporated under the laws of the United States of America or
any State (or any domestic branch of a foreign bank) and subject to supervision
and examination by Federal or state banking or depository institution
authorities (including depository receipts issued by any such institution or
trust company as custodian with respect to any obligation referred to in
clause (a) above or portion of such obligation for the benefit of the
holders of such depository receipts); provided, however, that (i)
each such investment has an original maturity of less than 365 days and (ii) at
the time of the investment or contractual commitment to invest therein (which
shall be deemed to be made again each time funds are reinvested following each
Distribution Date, as the case may be), the commercial paper or other short-term
senior unsecured debt obligations (other than such obligations the rating of
which is based on the credit of a Person other than such depository institution
or trust company) thereof shall have a credit rating from Moody’s and
S&P in the highest investment category granted thereby and, if rated by
Fitch, in the highest investment category granted by Fitch;

          
(c) commercial paper having an original maturity of less than 365 days and
having, at the time of the investment or contractual commitment to invest
therein, a rating from Moody’s and S&P in the highest investment
category granted thereby and, if rated by Fitch, in the highest investment
category granted by Fitch;

          
(d) investments in money market funds (including funds for which the Indenture
Trustee or the Eligible Lender Trustee or any of their respective Affiliates or
any of Seller’s Affiliates is an investment manager or advisor) that (i)
maintain a stable $1.00 net asset value per share, (ii) are freely transferable
on a daily basis, (iii) invests only in other Eligible Investments, and (iv)
have a rating from Moody’s and S&P in the highest investment category
granted thereby and, if rated by Fitch, in the highest investment category
granted by Fitch;

          
(e) bankers' acceptances having an original maturity of less than 365 days and
issued by any depository institution or trust company referred to in clause (b)
above;

          
(f) investments in the money market fund known as "The Victory Fund U.S.
Government Obligations Fund" or any comparable or successor money market fund
provided that (i) the Seller or one of its Affiliates is the investment manager
or advisor of such money market fund, (ii) such money market fund seeks to
maintain a stable $1.00 net asset value, per share, (iii) the shares of such
money market fund are freely transferable, (iv) such money market fund invests
only in Eligible Investments, and (v) such money market fund otherwise satisfies
the requirements of Rule 2a-7 of the Investment Company Act of 1940, as amended;
and

          
(g) any other investment permitted by each of the Rating Agencies and (provided
that no Securities Insurer Default has occurred and is continuing) the
Securities Insurer as set forth in writing delivered to the Indenture Trustee.

          
"Eligible Lender Trustee" means Bank One, National Association, a national
banking association, not in its individual capacity but solely as eligible
lender trustee under the Trust Agreement.

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

          
"Escrow Account" means the account designated as such, established and
maintained pursuant to Section 5.01(a)(iv) of the Sale and Servicing Agreement.

          
"Event of Default" has the meaning specified in Section 5.01 of the Indenture.

          
"Exchange Act" means the Securities Exchange Act of 1934, as amended.

          
"Executive Officer" means, with respect to any corporation, the Chief Executive
Officer, Chief Operating Officer, Chief Financial Officer, President, any
Executive Vice President, any Senior Vice President, any Vice President, the
Secretary or the Treasurer of such corporation; and with respect to any
partnership, any general partner thereof.

          
"Expected Interest Collections" means, with respect to any Collection Period,
the sum of (i) the amount of interest accrued, net of amounts required by the
Higher Education Act to be paid to the Department or to be repaid to borrowers,
with respect to the Financed Student Loans for such Collection Period (whether
or not such interest is actually paid), (ii) all Interest Subsidy Payments and
Special Allowance Payments expected to be received by the Eligible Lender
Trustee for such Collection Period (whether or not actually received) with
respect to the Financed Student Loans and (iii) Investment Earnings for such
Collection Period.

          
"Expenses" means any and all liabilities, obligations, losses, damages, taxes,
claims, actions and suits, and any and all reasonable costs, expenses and
disbursements (including reasonable legal fees and expenses) of any kind and
nature whatsoever which may at any time be imposed on, incurred by, or asserted
against the Eligible Lender Trustee or any of its officers, directors or agents
in any way relating to or arising out of the Trust Agreement, the other Basic
Documents, the Trust Estate, the administration of the Trust Estate or the
action or inaction of the Eligible Lender Trustee under the Trust Agreement or
the other Basic Documents.

          
"FDIC" means the Federal Deposit Insurance Corporation.

          
"Federal Consolidation Loan" means a loan made by the Seller to an eligible
borrower that represents the refinancing of Financed Federal Loans of such
borrower in accordance with the applicable terms and conditions of the Program
and the Higher Education Act.

          
"Federal Consolidation Loan Rebate" means the monthly fee payable to the
Department by the holder of Federal Consolidation Loans made (x) on or after
October 1, 1993, equal to 1.05% per annum, but (y) with respect to Federal
Consolidation Loans for which applications were received on or after October 1,
1998 but before February 1, 1999, equal to 0.62% per annum, in each case on the
outstanding balance of such Federal Consolidation Loan.

          
"Federal Guarantors" means, collectively, PHEAA, ASA, CSAC, CSLF, HESC, MHEAA,
NSLP and USAF.

          
"Federal Origination Fee" means the origination fee payable to the Department by
the lender with respect to any Financed Federal Loan (including Federal
Consolidation Loans) made on or after October 1, 1993, equal to 0.50% of the
initial principal balance of such loan.

          
"52 Week T-Bill Rate" means, on any date of determination, the bond equivalent
rate of 52-week Treasury bills auctioned at the final auction held prior to the
preceding September 1.

          
"Final Maturity Date" means (i) for the Class A-1 Notes, the July 2008
Distribution Date and (ii) for the Class A-2 Notes the July 2029 Distribution
Date.

          
"Final Subsequent Transfer Date" means the last Transfer Date on which
Subsequent Pool Student Loans are transferred to the Trust but no later than the
Special Determination Date.

          
"Financed Federal Loans" means those Financed Student Loans that are guaranteed
as to the payment of principal and interest by PHEAA, ASA, CSAC, CSLF, HESC,
MHEAA, NSLP or USAF and are reinsured by the Department.

          
"Financed Guaranteed Loans" means the collective reference to the Financed
Federal Loans and the Financed Guaranteed Private Loans.

          
"Financed Guaranteed Private Loans" means those Financed Student Loans that are
guaranteed as to the payment of principal and interest by TERI or HICA and are
not reinsured by the Department or any other governmental entity.

          
"Financed Private Loans" means the collective reference to Financed Guaranteed
Private Loans and Financed Unguaranteed Private Loans.

          
"Financed Student Loans" means the collective reference to the Initial Financed
Student Loans and the Additional Student Loans.

          
"Financed Student Loan Files" means the documents specified in Section 3.03 of
the Sale and Servicing Agreement.

          
"Financed Unguaranteed Private Loans" means those Financed Student Loans that
are not guaranteed as to the payment of principal or interest by any federal or
private guarantor, or by any other party or governmental agency, including,
without limitation, the Seller.

          
"Formula Rate" means for any Interest Period (1) with respect to the Class A-1
Notes, the Applicable Index plus the Applicable Note Margin and (2) with respect
to the Class A-2 Notes, the Applicable Index plus the Applicable Note Margin.

          
"Fitch" means Fitch, Inc.

          
"Funding Period" means the period beginning on the Closing Date and ending on
the first to occur of (a) the date on which an Event of Default, a Master
Servicer Default or an Administrator Default occurs, (b) the date on which an
Insolvency Event occurs with respect to the Seller, (c) the first date on which
the amounts on deposit in each Pre-Funding Account is zero, and (d) the close of
business on the last day of the Collection Period preceding the October 2002
Distribution Date.

          
"Graduate Loan Programs" means the loan programs, under which the Seller made
loans to students enrolled in or recently graduated from approved or accredited
law schools, medical schools, dental schools, graduate business schools or other
graduate level certificate or degree programs.

          
"Grant" means mortgage, pledge, bargain, sell, warrant, alienate, remise,
release, convey, assign, transfer, create, and grant a lien upon and a security
interest in and right of set-off against, deposit, set over and confirm pursuant
to the Indenture. A Grant of the Collateral or of any other agreement or
instrument shall include all rights, powers and options (but none of the
obligations) of the Granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal
and interest payments in respect of the Collateral and all other moneys payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
Proceedings in the name of the Granting party or otherwise and generally to do
and receive anything that the Granting party is or may be entitled to do or
receive thereunder or with respect thereto.

          
"Great Lakes" means Great Lakes Educational Loan Services, Inc. a Wisconsin
corporation.

          
"Great Lakes Sub-Servicing Agreement" means the Subservicing Agreement, dated as
of September 1, 2000, between Great Lakes and the Master Servicer.

          
"Great Lakes Trust Receipt" means the Trust Receipt, dated September 15,
2000, from Great Lakes acknowledging the receipt and possession of the Financed
Student Loan Files relating to the Financed Student Loans being sub-serviced by
Great Lakes.

          
"Guarantee Agreements" means (i) in the case of PHEAA, the Lender
Agreement for Guarantee of Student Loans With Federal Reinsurance and the Lender
Participation Agreement for Consolidation Loans, in each case dated as of April
26, 2000, between PHEAA and the Eligible Lender Trustee on behalf of the Issuer,
(ii) in the case of ASA, the Holder Guarantee Agreement dated as of April 26,
2000, between ASA and the Eligible Lender Trustee on behalf of the Issuer, (iii)
in the case of CSAC, the Agreement dated as of April 26, 2000, between CSAC and
the Eligible Lender Trustee on behalf of the Issuer, (iv) in the case of CSLF,
the Agreement dated as of August 28, 2000, between CSLF and the Eligible Lender
Trustee on behalf of the Issuer (v) in the case of HESC, the Loan Guarantee
Agreement dated as of April 26, 2000, between HESC and the Eligible Lender
Trustee on behalf of the Issuer, (vi) in the case of MHEAA, the Agreement to
Guarantee Loans, dated as of April 26, 2000, between MHEAA and the Eligible
Lender Trustee on behalf of the Issuer, (vii) in the case of NSLP, the Lender
Agreement for Guarantee of Student Loans With Federal Reinsurance and the Lender
Agreement for Guarantee of Federal Consolidation Loans with Federal Reinsurance,
each dated as of April 26, 2000 between NSLP and the Eligible Lender Trustee on
behalf of the Issuer, (viii) in the case of USAF, the USA Group Master Loan
Agreement dated as of April 26, 2000, between USAF and the Eligible Lender
Trustee on behalf of the Issuer, (ix) in the case of TERI, the Guarantee
Agreement dated as of April 26, 2000, among TERI, the Seller and the Eligible
Lender Trustee on behalf of the Issuer and (x) in the case of HICA, the Third
Endorsement to Alternative Dental Educational Assistance Loan Surety Bond
Numbers 1994-A, 1994-B, 1995-A and 1996-A dated as of August 28, 2000 and
executed by HICA, relative to such Surety Bonds which were assigned by the
Seller to the Eligible Lender Trustee on behalf of the Issuer.

          
"Guarantee Fee Advance" means a loan made by the Seller to a borrower of a
Financed Private Loan, at the borrower's option, at the time such borrower
commences repayment of such Financed Private Loan to finance the cost of the fee
imposed with respect to such loan at such time.

          
"Guarantee Payment" means any payment made by a Guarantor pursuant to a
Guarantee Agreement in respect of a Financed Student Loan.

          
"Guarantors" means, collectively, PHEAA, ASA, CSAC, CSLF, HESC, MHEAA, NSLP,
USAF, TERI and HICA.

          
"HESC" means the New York State Higher Education Services Corporation, an
educational corporation created by an act of the Legislature of the State of New
York.

          
"HICA" means HEMAR Insurance Corporation of America, a South Dakota
corporation.

          
"HICA Trigger Event" means, on any Distribution Date, when the cumulative
Realized Losses on any of the Guaranteed Private Loans that are guaranteed by
HICA exceeds 20% of the Initial Financed Student Loan Pool Balance consisting of
all Guaranteed Private Loans that are guaranteed by HICA; provided, however,
that a HICA Trigger Event shall not have occurred if HICA is continuing to pay
claims with respect to all Guaranteed Private Loans guaranteed by HICA.

          
"Higher Education Act" means the Higher Education Act of 1965, as amended,
together with any rules, regulations and interpretations thereunder.

          
"Indenture" means the Indenture dated as of September 1, 2000, between the
Issuer and the Indenture Trustee.

          
"Indenture Trustee" means Bankers Trust Company, a New York banking corporation,
not in its individual capacity but solely as Indenture Trustee under the
Indenture.

          
"Indenture Trust Estate" means all money, instruments, rights and other property
that are subject or intended to be subject to the lien and security interest of
the Indenture for the benefit of the Noteholders (including all property and
interests granted to the Indenture Trustee), including all proceeds thereof.

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

          
"Independent Certificate" means a certificate or opinion to be delivered to the
Indenture Trustee under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 11.01 of the Indenture, made by an
Independent appraiser or other expert appointed by an Issuer Order and approved
by the Indenture Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of "Independent"
in the Indenture and that the signer is Independent within the meaning thereof.

          
"Index Maturity" shall have the meaning set forth in the definition of
"Three-Month LIBOR".

          
"Initial Financed Student Loans" means the Initial Pool Student Loans.

          
"Initial Financed Student Loan Pool Balance" means, at any time, the Calculated
Pool Balance of the Financed Student Loans, or specified subset thereof, as of
the related Cutoff Date (in the case of the Initial Financed Student Loans, or
specified subset thereof) or the related Subsequent Cutoff Date (with respect to
Additional Student Loans or specified subset thereof).

          
"Initial Pool Student Loans" means any graduate or undergraduate student loans
listed on the Schedule of Initial Pool Student Loans on the Closing Date as set
forth in Schedule A to the Sale and Servicing Agreement (which Schedule may be
in the form of microfiche or computer tape), which student loans the Seller
shall transfer to the Eligible Lender Trustee on behalf of the Issuer pursuant
to the Sale and Servicing Agreement on the Closing Date.

          
"Insolvency Event" means, with respect to a specified Person, (a) the filing of
a decree or order for relief by a court having jurisdiction in the premises in
respect of such Person or any substantial part of its property in an involuntary
case under any applicable Federal or state bankruptcy, insolvency or other
similar law now or hereafter in effect, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator or similar official for such Person
or for any substantial part of its property, or ordering the winding-up or
liquidation of such Person's affairs, and such decree or order shall remain
unstayed and in effect for a period of 60 consecutive days; or (b) the
commencement by such Person of a voluntary case under any applicable Federal or
state bankruptcy, insolvency or other similar law now or hereafter in effect, or
the consent by such Person to the entry of an order for relief in an involuntary
case under any such law, or the consent by such Person to the appointment of or
taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of
its property, or the making by such Person of any general assignment for the
benefit of creditors, or the failure by such Person generally to pay its debts
as such debts become due, or the taking of action by such Person in furtherance
of any of the foregoing; or (c) in the case of the Securities Insurer, a court
of competent jurisdiction, the New York Department of Insurance or other
competent regulatory authority shall have entered a final and nonappealable
order, judgment or decree (i) appointing a custodian, trustee, agent or receiver
of the Securities Insurer or (ii) the taking of possession of all or any
material portion of the property of the Securities Insurer.

          
"Insurance Agreement" means the Insurance Agreement, dated as of September 1,
2000, among the Seller, the Master Servicer, the Administrator, the Depositor,
the Issuer, the Eligible Lender Trustee, the Indenture Trustee and the
Securities Insurer.

          
"Insured Payment" means, with respect to any Distribution Date, the sum of the
Deficiency Amount and any Preference Amount.

          
"Insurer Premium" means the premium due to the Securities Insurer on each
Distribution Date, which amount shall be equal to the product of the Insurer
Premium Rate and the Outstanding Amount immediately prior to such Distribution
Date.

          
"Insurer Premium Rate" means the "Premium Percentage" as defined in the
Insurance Agreement.

          
"Interest and Expense Draw" means any withdrawals from the Reserve Account
pursuant to Sections 5.06(b)(i) through (b)(v) of the Sale and Servicing
Agreement.

          
"Interest Collections" shall have the meaning specified in Section 5.03 of the
Sale and Servicing Agreement.

          
"Interest Period" means, with respect to a Distribution Date, the period
from and including the Closing Date or the most recent Distribution Date on
which interest on the Notes has been distributed to but excluding the current
Distribution Date. In the case of any LIBOR Indexed Securities and the initial
Interest Period, interest will accrue for the period from the Closing Date to
but excluding October 25, 2000 (computed on the basis of the actual number of
days elapsed in a year of 360 days) based on Three Month LIBOR as determined on
the initial LIBOR Determination Date, and interest will accrue for the period
from October 25, 2000 to but excluding January 25, 2001 (computed on the basis
of the actual number of days elapsed in a year of 360 days) based on Three Month
LIBOR as determined on the initial LIBOR Determination Date.

          
"Interest Rate Swap" means that certain interest rate swap agreement,
between the Trust and the Swap Counterparty as documented on a 1992 ISDA Master
Agreement (Multicurrency--Cross Border), including the related sole confirmation
and the related schedule, each dated as of September 15, 2000, and each modified
to reflect the terms of the Notes and the Basic Documents.

          
"Interest Subsidy Payments" means payments, designated as such, consisting of
interest subsidies by the Department in respect of the Financed Federal Loans to
the Eligible Lender Trustee on behalf of the Trust in accordance with the Higher
Education Act.

          
"Investment Earnings" means, with respect to any Distribution Date, the
investment earnings (net of losses and investment expenses) on amounts on
deposit in the Trust Accounts to be deposited into the Collection Account on or
prior to such Distribution Date pursuant to Section 5.01(b) of the Sale and
Servicing Agreement.

          
"Issuer" means KeyCorp Student Loan Trust 2000-B until a successor replaces it
and, thereafter, means the successor.

          
"Issuer Order" and "Issuer Request" means a written order or request signed in
the name of the Issuer by any one of its Authorized Officers and delivered to
the Indenture Trustee.

          
"LAI" means Law Access, Inc., a non-stock corporation organized under the laws
of the State of Delaware, and the successor in interest to LSAS.

          
"Law Loan" means a Law School Loan made by the Seller to an eligible borrower
pursuant to the Programs.

          
"LIBOR Determination Date" means (x) with respect to each Interest Period
other than the initial Interest Period, the second Business Day prior to the
commencement of each Interest Period and (y) with respect to the initial
Interest Period, as determined pursuant to clause (x) for the period from the
Closing Date to but excluding October 25, 2000, and as determined on the second
Business Day prior to October 25, 2000 for the period from October 25, 2000 to
but excluding January 25, 2001. For purposes of this definition a "Business Day"
is any day on which banks in London and New York City are open for the
transaction of business.

          
"LIBOR Indexed Securities" means the Class A-1 Notes and the Class A-2 Notes.

          
"Lien" means a security interest, lien, charge, pledge, equity or
encumbrance of any kind, other than tax liens and any other liens, if any, which
attach to the respective Financed Student Loan by operation of law as a result
of any act or omission by the related Obligor.

          
"Liquidated Student Loan" means any defaulted Financed Student Loan liquidated
by the Master Servicer (or any Sub-Servicer acting on its behalf) or which the
Master Servicer (or any Sub-Servicer acting on its behalf) has, after using all
reasonable efforts to realize upon such Financed Student Loan, determined to
charge off.

          
"Liquidation Proceeds" means, with respect to any Liquidated Student
Loan, the moneys collected in respect thereof from whatever source, other than
Recoveries or Guarantee Payments received, net of the sum of any amounts
expended by the Master Servicer (or any Sub-Servicer acting on its behalf) in
connection with such liquidation and any amounts required by law to be remitted
to the borrower on such Liquidated Student Loan.

          
"Lock-In Period" means the period of days preceding any Distribution Date during
which the Note Interest Rates in effect on the first day of such period shall
remain in effect until the end of the Interest Period related to such
Distribution Date.

          
"LSAS" means the Law School Admission Services, Inc.

          
"Master Note" means a Master Promissory Note in the form mandated by Section
432(m)(1)(D) of the Higher Education Act, as added by Pub. L. 105-244,ss. 427,
112 Stat. 1702 (1998), 20 U.S.C.§ 1082(m)(1)(D).

          
"Master Servicer" means Key Bank USA, National Association, a national banking
association.

          
"Master Servicer Default" means an event specified in Section 8.01(a) of the
Sale and Servicing Agreement.

          
"Master Servicing Fee" has the meaning specified in the Servicing Fee Schedule
attached to the Sale and Servicing Agreement as Schedule E.

          
"Maximum TERI Payments Amount" means an amount equal to 19% of the Adjusted
Initial Pool Balance.

          
"MHEAA" means the Michigan Higher Education Assistance Agency, an agency of the
State of Michigan.

          
"Minimum Purchase Amount" means the greatest of (i) the Auction Purchase
Amount, (ii) the fair market value of the Financed Student Loans as of the end
of the Collection Period immediately preceding such Distribution Date, and (iii)
the sum of (a) the aggregate unpaid principal amount of the Notes plus, accrued
and unpaid interest thereon on the related Distribution Date, (b) any amounts to
be paid pursuant to Section 5.04(b) FIRST and SECOND of the Indenture, (c) all
amounts due and owing to the Securities Insurer under the Insurance Agreement
and accrued interest thereon, (d) any unpaid Noteholders' Interest Index
Carryover, (e) all amounts owed by the Trust to the Swap Counterparty under the
Interest Rate Swap (including any unreimbursed Termination Payments), and (f)
all amounts owed by the Trust to the Cap Provider under the Cap Agreement for
unreimbursed Class A-1 Cap Payments and Class A-2 Cap Payments.

          
"Monthly Period" means each calendar month in a Collection Period commencing
with the calendar month of October 2000.

          
"Monthly Servicing Payment Date" means the twenty-fifth day of each calendar
month, or, if such day is not a Business Day, the immediately following Business
Day, commencing on October 25, 2000.

          
"Moody's" means Moody's Investors Service, Inc.

          
"MPN Holder" means the holder of an original Master Note.

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

          
"MPN Loan Holder" means any holder of an MPN Loan as shown on the records of the
MPN Holder.

          
"Net Payment" as defined in Section 5.04(c) of the Sale and Servicing
Agreement.

          
"Net Receipt" as defined in Section 5.04(c) of the Sale and Servicing
Agreement.

          
"Net Trust Swap Payment" means, with respect to each Distribution Date,
the amount the Trust will owe the Swap Counterparty under the Interest Rate Swap
(without regard to any Net Trust Swap Payment Carryover Shortfalls or
Termination Payments), equal to the sum of the following amounts for each of the
monthly periods in the related Collection Period, beginning with the Monthly
Period commencing October 1, 2000:

          
the product of:

	 
	          
(1)  the Prime Rate as determined as of the first day of the related
Monthly Period;

	 
	          
(2)  the aggregate principal balance of Prime Rate Loans as determined
as of the first day of the related Monthly Period; and

	 
	          
(3)  a fraction, the numerator of which is the actual number of days in the
related Monthly Period and the denominator of which is 360.

          
"Net Trust Swap Payment Carryover Shortfall" means, with respect to any
Distribution Date with respect to which there shall be an amount owed by the
Trust to the Swap Counterparty under the Interest
Rate Swap, the excess of (i) the
Trust Swap Payment Amount on the preceding Distribution Date over (ii) the
amount actually paid to the Swap Counterparty on such preceding Distribution
Date, plus interest on such excess from such preceding Distribution Date to the
current Distribution Date at the rate of Three Month LIBOR for the related
Interest Period.

          
"Net Trust Swap Receipt" means, with respect to each Distribution Date, the
amount the Swap Counterparty will owe the Trust under the Interest Rate Swap
(without regard to any Net Trust Swap Receipt Carryover Shortfalls or
Termination Payments), equal to the sum of the following amounts for each of the
monthly periods in the related Collection Period, beginning with the monthly
period commencing October 1, 2000:

          
the product of:

	 
	          
(1)  Three-Month LIBOR plus 2.60% calculated in the same manner and on such dates
as such index is calculated for the LIBOR Indexed Securities for the related
Interest Period;

	 
	          
(2)  the principal balance of the Prime Rate Loans as determined as of
the first of the related Monthly Period; and

	
	          
(3)  a fraction, the numerator of which is the actual number of days in the
related Monthly Period and the denominator of which is 360.

          
"Net Trust Swap Receipt Carryover Shortfall" means, with respect to any
Distribution Date with respect to which there shall be an amount owed by the
Swap Counterparty to the Trust under the Interest Rate Swap, the excess of (i)
the Trust Swap Receipt Amount on the preceding Distribution Date over (ii) the
amount actually paid by the Swap Counterparty to the Trust on such preceding
Distribution Date, plus interest on such excess from such preceding Distribution
Date to the current Distribution Date at the rate of Three Month LIBOR for the
related Interest Period.

          
"91-Day Treasury Bills" means direct obligations of the United States with a
maturity of thirteen weeks.

          
"Non-Guaranteed Graduate Private Loans" means the Financed Unguaranteed Private
Loans that have been made to graduate students.

          
"Non-Guaranteed Private Graduate Loan Trigger Event" means, on any
Distribution Date, when the cumulative Realized Losses on the Non-Guaranteed
Graduate Private Loans exceeds 20% of the Initial Financed Student Loan Pool
Balance consisting of all Non-Guaranteed Graduate Private Loans.

          
"Non-Guaranteed Private Undergraduate Loan Trigger Event" means, on any
Distribution Date, when cumulative Realized Losses net of subsequent Recoveries
with respect to the Non-Guaranteed Undergraduate Private Loans exceeds 15% of
the Initial Financed Student Loan Pool Balance with respect to all
Non-Guaranteed Undergraduate Private Loans.

          
"Non-Guaranteed Undergraduate Private Loans" means the Financed Unguaranteed
Private Loans that have been made to undergraduate students.

          
"Note Depository Agreement" means the agreement dated as of the Closing Date
relating to the Notes, among the Issuer, the Indenture Trustee, the
Administrator and The Depository Trust Company, as the initial Clearing Agency.

          
"Note Interest Rate" means, with respect to any Interest Period, (w) in the case
of any Class of Notes, the interest rate per annum equal to the lesser of (i)
the sum of (x) in the case of any Class of Notes that are T-Bill Indexed
Securities, the weighted average of the T-Bill Rates within such Interest Period
and in the case of any Class of Notes that are LIBOR Indexed Securities,
Three-Month LIBOR plus (y) the Applicable Note Margin and (ii) the Student Loan
Rate for such Interest Period. The interest rate per annum for any Class of
Notes that are T-Bill Indexed Securities will be computed on the basis of the
actual number of days elapsed in such Interest Period over a period of 365 days
(or 366 in a leap year) and in the case of any Class of Notes that are LIBOR
Indexed Securities, will be computed on the basis of the actual number of days
elapsed in the related Interest Period divided by 360. In the case of any LIBOR
Indexed Securities and the initial Interest Period, the Note Interest Rate will
equal the interest rate per annum equal to the lesser of (i) the weighted
average of (x) Three-Month LIBOR for the period from the Closing Date to but
excluding October 25, 2000 (computed on the basis of the actual number of days
elapsed in such period divided by 360) as determined on the initial LIBOR
Determination Date and (y) Three-Month LIBOR for the period from October 25,
2000 to but excluding January 25, 2001 (computed on the basis of the actual
number of days elapsed in such period divided by 360) as determined on the LIBOR
Determination Date in October 2000, in each case plus the Applicable Note Margin
and (ii) the Student Loan Rate for the initial Interest Period.

          
"Note Owner" means, with respect to a Book-Entry Note, the Person who is
the owner of such Book-Entry Note, as reflected on the books of the Clearing
Agency, or on the books of a Person maintaining an account with such Clearing
Agency (directly as a Clearing Agency Participant or as an indirect participant,
in each case in accordance with the rules of such Clearing Agency).

          
"Note Register" and "Note Registrar" have the respective meanings
specified in Section 2.04 of the Indenture.

          
"Note Underwriting Agreement" means the Note Underwriting Agreement dated
as of September 8, 2000 between the Seller and the Underwriters.

          
"Noteholder" means the Person in whose name a Note is registered in the Note
Register.

          
"Noteholders' Distribution Amount" means, with respect to any Distribution Date,
the sum of the aggregate Noteholders' Interest Distribution Amount with respect
to each Class of Notes and the Noteholders'
Principal Distribution Amount for such Distribution Date.

          
"Noteholders' Interest Carryover Shortfall" means, with respect to any
Distribution Date, the excess of (i) the sum of the Noteholders' Interest
Distribution Amount on the preceding Distribution Date over (ii) the amount of
interest actually distributed to the holders of the Notes on such preceding
Distribution Date, plus interest on the amount of such excess interest due to
the holders of the Notes, to the extent permitted by law, at the weighted
average of the Note Interest Rates for the Class A Notes from such preceding
Distribution Date to the current Distribution Date.

          
"Noteholders' Interest Distribution Amount" means, with respect to any
Distribution Date and any Class of Notes, the sum of (i) the aggregate amount of
interest accrued at the applicable Note Interest Rate for the related Interest
Period on the outstanding principal balance of such Class of Notes on the
immediately preceding Distribution Date after giving effect to all principal
distributions to such Noteholders of such class on such date (or, in the case of
the first Distribution Date, on the Closing Date) and (ii) the Noteholders'
Interest Carryover Shortfall for such class and such Distribution Date;
provided, that the Noteholders' Interest Distribution Amount will not include
any Noteholders' Interest Index Carryover for such class.

          
"Noteholders' Interest Index Carryover" means, with respect to any
Distribution Date and any Class of Notes as to which the Note Interest Rate for
such Class of Notes for such Distribution Date is based on the Student Loan
Rate, the amount equal to the excess, if any, of (a) the amount of interest on
such Class of Notes that would have accrued in respect of the related Interest
Period had interest been calculated based on the T-Bill Rate, if such Class of
Notes are T-Bill Indexed Securities or Three-Month LIBOR if such Notes are LIBOR
Indexed Securities, in each case, plus the Applicable Note Margin, over (b) the
amount of interest on such Class of Notes actually accrued in respect of such
Interest Period based on the Student Loan Rate, together with the unpaid portion
of any such excess from prior Distribution Dates (and interest accrued thereon,
to the extent permitted by law, at the applicable rate calculated based on the
T-Bill Rate, in the case of T-Bill Indexed Securities or Three-Month LIBOR, in
the case of LIBOR Indexed Securities plus the Applicable Note Margin);
provided, however, that on the Final Maturity Date for such Class
of Notes, the Noteholders' Interest Index Carryover for such Class of Notes will
be equal to the lesser of (i) the Noteholders' Interest Index Carryover for such
Class of Notes on such date determined as described above and (ii) the amount of
funds, if any, required and available to be distributed to the holders for such
Class of Notes on such date pursuant to the Sale and Servicing Agreement.

          
"Noteholders' Percentage" means a fraction, expressed as a percentage, the
numerator of which is the principal amount of the Notes issued on the Closing
Date and the denominator of which is the principal amount of the Notes issued on
the Closing Date.

          
"Noteholders' Principal Distribution Amount" means, with respect to any
Distribution Date, the Principal Distribution Amount for such Distribution Date;
provided, however, that the Noteholders' Principal Distribution Amount for the
Notes will not exceed the outstanding principal balance of the Notes. In
addition, (i) on the Final Maturity Date for each related Class of Notes, the
principal required to be distributed to such Class of Notes will include the
amount required to reduce the outstanding principal balance of such Class of
Notes to zero, and (ii) on the related Distribution Date following a sale of the
Financed Student Loans pursuant to Section 9.01(a) or (c) of the Sale and
Servicing Agreement, the principal required to be distributed to the holders of
Class A-2 Notes will include the amount required to reduce the outstanding
principal balance of the Class A-2 Notes to zero.

          
"Notes" means the Class A-1 Notes and Class A-2 Notes.

          
"NSLP" means the Nebraska Student Loan Program, a Nebraska corporation.

          
"Obligor" on a Financed Student Loan means the borrower or co-borrowers of such
Financed Student Loan and any other Person who owes payments in respect of such
Financed Student Loan, including the Guarantor thereof and, with respect to any
Interest Subsidy Payment or Special Allowance Payment, if any, thereon, the
Department.

          
"Officers' Certificate" means (i) in the case of the Issuer, a certificate
signed by any two Authorized Officers of the Eligible Lender Trustee, under the
circumstances described in, and otherwise complying with, the applicable
requirements of Section 11.01 of the Indenture, and delivered to the Indenture
Trustee, (ii) in the case of the Seller or the Administrator, a certificate
signed by any two Authorized Officers of the Seller or the Administrator, as
appropriate, (iii) in the case of the Master Servicer, a certificate signed by
any two Authorized Officers of the Master Servicer and (iv) in the case of any
Sub-Servicer, a certificate signed by any two Authorized Officers of such
Sub-Servicer.

          
"Official MPN Copy" means, with respect to each Transferred MPN Loan, the copy
of the Master Note evidencing such Transferred MPN Loans and marked as provided
in Section 2.06(A) of the Sale and Servicing Agreement.

          
"Opinion of Counsel" means (i) with respect to the Issuer, one or more written
opinions of counsel who may, except as otherwise expressly provided in the
Indenture, be employees of or counsel to the Issuer and who shall be acceptable
to the Indenture Trustee and (provided that no Securities Insurer Default has
occurred and is continuing) the Securities Insurer, and which opinion or
opinions shall be addressed to the Indenture Trustee as Indenture Trustee and
(provided that no Securities Insurer Default has occurred and is continuing) the
Securities Insurer, shall comply with any applicable requirements of Section
11.01 of the Indenture, and shall be in form and substance satisfactory to the
Indenture Trustee and (provided that no Securities Insurer Default has occurred
and is continuing) the Securities Insurer, (ii) with respect to the Seller, the
Administrator or the Master Servicer, one or more written opinions of counsel
who may be an employee of or counsel to the Seller, the Administrator or the
Master Servicer, which counsel shall be acceptable to the Indenture Trustee, the
Eligible Lender Trustee or the Rating Agencies, as applicable, and (provided
that no Securities Insurer Default has occurred and is continuing) the
Securities Insurer and (iii) with respect to the a Sub-Servicer, one or more
written opinions of counsel who may be an employee of or counsel to
Sub-Servicer, which counsel shall be acceptable to the Master Servicer and the
Securities Insurer.

          
"Other Additional Pre-Funded Amount" means, with respect to any Distribution
Date, the amount on deposit in the Other Additional Pre-Funding Subaccount.

          
"Other Additional Pre-Funding Subaccount" has the meaning set forth in Section
5.08 of the Sale and Servicing Agreement.

          
"Other Subsequent Student Loans" means the Serial Loans (including Consolidation
Loans but not including Subsequent Pool Student Loans), Guarantee Fees Advances
and the funding of accrued interest to be capitalized made by the Seller to an
eligible borrower who has one or more existing loans under the Programs that are
Financed Student Loans and are transferred or to be transferred to the Eligible
Lender Trustee on behalf of the Issuer during the Funding Period, pursuant to
Section 2.02 of the Sale and Servicing Agreement, each of which shall be
identified on Schedule A to the related Transfer Agreement (which may be in the
form of microfiche or computer tape) and each such Schedule A shall also be
deemed to be a supplement to part II of Schedule B to the Sale and Servicing
Agreement.

          
"Outstanding" means, as of the date of determination, all Notes theretofore
authenticated and delivered under the Indenture except:

	 
	          
(i)  Notes theretofore canceled by the Note Registrar or delivered to
the Note Registrar for cancellation;

	 
	          
(ii)   Notes or portions thereof the payment for which money in the
necessary amount has been theretofore deposited with the Indenture Trustee or
any Paying Agent in trust for the Noteholders thereof (provided,
however, that if such Notes are to be redeemed, notice of such redemption
has been duly given pursuant to the Indenture); and

	 
	          
(iii)  Notes in exchange for or in lieu of other Notes which have been
authenticated and delivered pursuant to the Indenture unless proof satisfactory
to the Indenture Trustee is presented that any such Notes are held by a bona
fide purchaser;

provided that in determining whether the Noteholders of
the requisite Outstanding Amount of the Notes have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or under any other
Basic Document, Notes owned by the Issuer, any other obligor upon the Notes, the
Seller, the Administrator, the Swap Counterparty, the Cap Provider, the Master
Servicer, any Sub-Servicer or any Affiliate of any of the foregoing Persons
shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Indenture Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only
Notes that a Responsible Officer of the Indenture Trustee either actually knows
to be so owned or has received written notice thereof shall be so disregarded.
Notes so owned that have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Indenture
Trustee the pledgee’s right so to act with respect to such Notes and that
the pledgee is not the Issuer, any other obligor upon the Notes, the Seller, the
Administrator, the Swap Counterparty, the Cap Provider, the Master Servicer, any
Sub-Servicer or any Affiliate of any of the foregoing Persons.

          
"Outstanding Amount" means the aggregate principal amount of all Notes
Outstanding at the date of determination.

          
"Parity Date" means the Distribution Date on which the aggregate principal
balance of the Notes (after giving effect to all distributions pursuant to
Section 5.05(c) of the Sale and Servicing Agreement)equals the sum
of the Pool Balance and amounts on deposit in the Pre-Funding Account as of the
last day of the related Collection Period.

          
"Paying Agent" means the Indenture Trustee or any other Person that meets the
eligibility standards for the Indenture Trustee specified in Section 6.11 of the
Indenture and is authorized by the Issuer to make the payments to and
distributions from the Collection Account and payments of principal of and
interest and any other amounts owing on the Notes on behalf of the Issuer.

          
"Person" means any individual, corporation, estate, partnership, joint venture,
association, joint stock company, trust (including any beneficiary thereof),
unincorporated organization or government or any agency or political subdivision
thereof.

          
"PHEAA" means the Pennsylvania Higher Education Assistance Agency, an agency of
the Commonwealth of Pennsylvania.

          
"PHEAA Sub-Servicing Agreement" means the Subservicing Agreement, dated as of
September 1, 2000, between PHEAA and the Master Servicer.

          
"PHEAA Trust Receipt" means the Trust Receipt, dated September 15, 2000, from
PHEAA acknowledging the receipt and possession of the Financed Student Loan
Files relating to the Financed Student Loans being sub-serviced by PHEAA.

          
"Physical Property" has the meaning assigned to such term in the definition of
"Delivery" above.

          
"Pool Balance" means, at any time, the aggregate principal balance of the
Financed Student Loans at the end of the preceding Collection Period (including
accrued interest thereon for such Collection Period to the extent such interest
will be capitalized upon commencement of repayment or during deferment or
forbearance), after giving effect to the following without duplication: (i) all
payments received by the Trust related to the Financed Student Loans during such
Collection Period from or on behalf of borrowers, Guarantors and the Department,
(ii) all Purchase Amounts received by the Trust related to the Financed Student
Loans for such Collection Period from the Seller or the Master Servicer (or any
Sub-Servicer acting on its behalf), (iii) all Additional Fundings made from the
Escrow Account and the Pre-Funding Account with respect to such Collection
Period and (iv) all losses realized on Financed Student Loans liquidated during
such Collection Period.

          
"Pool Factor" means as of the close of business on a Distribution Date (i) for
the Class A-1 Notes, a seven-digit decimal figure equal to the outstanding
principal balance of the Class A-1 Notes divided by the original outstanding
principal balance of the Class A-1 Notes and (ii) for the Class A-2 Notes, a
seven-digit decimal figure equal to the outstanding principal balance of the
Class A-2 Notes divided by the original outstanding principal balance of the
Class A-2 Notes. The Pool Factor for each Class of Notes will be 1.0000000 as of
the Closing Date; thereafter, the Pool Factor for each Class of Notes will
decrease to reflect reductions in the outstanding principal balance of such
classes of Notes.

          
"Predecessor Note" means, with respect to any particular Note, every previous
Note evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purpose of this definition, any Note authenticated
and delivered under Section 2.05 of the Indenture and in lieu of a mutilated,
lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

          
"Preference Amount" shall having the meaning given to such term in the
Securities Guaranty Insurance Policy.

          
"Pre-Funded Amount" means, with respect to any Distribution Date, the amount on
deposit in the Pre-Funding Account.

          
"Pre-Funding Account" means the account designated as such, established and
maintained pursuant to Section 5.01(a)(iii) of the Sale and Servicing Agreement
(including, unless otherwise expressly stated, the Subsequent Pool Pre-Funding
Subaccount and the Other Additional Pre-Funding Subaccount).

          
"Prime Rate" means the rate published as the Prime Rate in The Wall Street
Journal in its Money Rates section, or if more than one Prime Rate is published
by The Wall Street Journal, the highest of such rates.

          
"Prime Rate Loans" means the Financed Student Loans, with an aggregate unpaid
principal balance as of the Statistical Cut-off Date of $86,306,973, that bear
interest at the Prime Rate. Interest on each Prime Rate Loan is calculated for
each calendar month using the Prime Rate for the last business day of the prior
calendar month.

          
"Principal Distribution Amount" means, with respect to any Distribution Date,
the amount by which the sum of the outstanding principal balance of the Notes
exceeds the Specified Collateral Balance for such Distribution Date.

          
"Private Consolidation Guarantee Fee" means, with respect to each Private
Consolidation Loan that is guaranteed, a fee charged to the borrower to
discharge the underlying Financed Private Loans and included in the original
principal amount of such Private Consolidation Loan.

          
"Private Consolidation Loan" means a loan made by the Seller to an eligible
borrower that represents the refinancing of Financed Private Loans of such
borrower in accordance with the terms of the Programs.

          
"Private Graduate Loan Trigger Event" means, on any Distribution Date, when: (1)
a TERI Trigger Event, (2) a HICA Trigger Event, or (3) a Non-Guaranteed Private
Graduate Loan Trigger Event shall have occurred.

          
"Private Guarantors" means, collectively, HICA and TERI.

          
"Proceeding" means any suit in equity, action at law or other judicial or
administrative proceeding.

          
"Programs" means the Graduate Loan Programs and Undergraduate Loan Programs, as
in effect from time to time.

          
"Purchase Amount" means, as of the close of business on the last day of a
Collection Period, 101.75% of the amount required to prepay in full the
respective Financed Student Loan, if such Financial Student Loan is a Financed
Federal Student Loan, and 100% of the amount required to prepay in full the
respective Financed Student Loan, if such Financed Student Loan is not a
Financed Federal Student Loan, in each case under the terms thereof including
all accrued interest thereon expected to be capitalized upon entry into
repayment and any lost Interest Subsidy Payments and Special Allowance Payments
with respect thereto.

          
"Purchased Student Loan" means a Financed Student Loan purchased as of the close
of business on the last day of a Collection Period by the Master Servicer (or
any Sub-Servicer acting on its behalf) pursuant to Section 4.06 of the Sale and
Servicing Agreement or repurchased by the Seller pursuant to Section 3.02 of the
Sale and Servicing Agreement.

          
"Rating Agency" means each of Moody's, S&P and Fitch. If any such organization
or successor is no longer in existence, "Rating Agency" shall be a nationally
recognized statistical rating organization or other comparable Person designated
by the Seller and (provided that no Securities Insurer Default has occurred and
is continuing) approved by the Securities Insurer, notice of which designation
shall be given to the Indenture Trustee, the Eligible Lender Trustee, the Master
Servicer and each Sub-Servicer.

          
"Rating Agency Condition" means, with respect to any action, that each Rating
Agency shall have been given 10 days' prior notice thereof (or such shorter
period as shall be acceptable to the Rating Agencies) and that none of the
Rating Agencies shall have notified the Seller, the Master Servicer, the
Eligible Lender Trustee, the Securities Insurer, the Swap Counterparty and the
Indenture Trustee in writing that such action will in and of itself result in a
reduction or withdrawal of the then current rating of the Notes (without regard
to the Securities Guaranty Insurance Policy).

          
"Rating Agency Downgrade" means, with respect to the Securities Insurer, that
the ratings of the Securities Insurer have been withdrawn, suspended or reduced
below A3, A- and A- by Moody's, Fitch and S&P, respectively.

          
"Realized Loss Amount" means (1) with respect to any Distribution Date prior to
the Parity Date an amount equal to the positive difference of any of (x) the sum
of the Pool Balance and amounts on deposit in the Pre-Funding Account as of the
last day of the second preceding Collection Period (or, in the case of the first
Distribution Date, as of the Cutoff Date), minus the sum of the Pool Balance and
amounts on deposit in the Pre-Funding Account as of the last day of the related
Collection Period, minus (y) the amount of Available Funds remaining to be
distributed as Noteholders' Principal Distribution Amount on such Distribution
Date pursuant to Section 5.05(c)(viii) of the Sale and Servicing Agreement and
(2) with respect to any Distribution Date on and after the Parity Date, an
amount equal to (A) the Noteholders' Principal Distribution Amount for such
Distribution Date minus (B) the amount of Available Funds remaining to be
distributed as Noteholders' Principal Distribution Amount on such Distribution
Date pursuant to Section 5.05(c)(viii) of the Sale and Servicing Agreement.

          
"Realized Loss Draw" means with respect to any Distribution Date, the amount of
any withdrawal from the Reserve Account on such Distribution Date pursuant to
Section 5.06(b)(vi) of the Sale and Servicing Agreement.

          
"Realized Losses" means the excess of the aggregate principal balance of any
Liquidated Student Loan plus accrued but unpaid interest thereon over the
related Liquidation Proceeds to the extent allocable to principal.

          
"Record Date" means, with respect to a Distribution Date or Redemption Date, the
close of business on the twenty-fourth day of the calendar month in which such
Distribution Date or Redemption Date occurs.

          
"Recoveries" means, with respect to any Liquidated Student Loan, moneys
collected in respect thereof, from whatever source, during any Collection Period
following the Collection Period in which such Financed Student Loan became a
Liquidated Student Loan, net of the sum of any amounts expended by the Master
Servicer (or any Sub-Servicer acting on its behalf) for the account of any
Obligor and any amounts required by law to be remitted to the Obligor.

          
"Redemption Date" means (a) in the case of a redemption of Notes pursuant to
Section 10.01(a) of the Indenture, the Distribution Date on which the Funding
Period ends (or the Distribution Date on or immediately following the last day
of the Funding Period, if the Funding Period does not end on a Distribution
Date) or (b) in the case of a payment to Noteholders pursuant to Section
10.01(b) of the Indenture, the Distribution Date specified by the Administrator
or the Issuer pursuant to Section 10.01(b) of the Indenture.

          
"Redemption Price" means (a) in the case of a redemption of the Notes pursuant
to Section 10.01(a) of the Indenture, an amount equal to the unpaid principal
amount of the Notes, plus accrued and unpaid interest thereon at the applicable
Note Interest Rate to but excluding the Redemption Date and the amount of the
Noteholders' Interest Index Carryover with respect thereto, or (b) in the case
of a payment made to Noteholders pursuant to Section 10.01(b) of the Indenture,
the amount to be so paid, but not in excess of the amount specified in clause
(a) above.

          
"Reference Bank" means a leading bank (i) engaged in transactions in Eurodollar
deposits in the international Eurocurrency market, (ii) not controlling,
controlled by or under common control with the Administrator and (iii) having an
established place of business in London.

          
"Remote Time-Sharing Services Program" means the various services and programs
made available by PHEAA to the Seller pursuant to the Society RT-SS Agreement.

          
"Reserve Account" means the account designated as such, established and
maintained pursuant to Section 5.01(a)(ii) of the Sale and Servicing Agreement.

          
"Reserve Account Initial Deposit" means $11,112,500.

          
"Responsible Officer" means, with respect to the Indenture Trustee, any
officer within the Corporate Trust Office of the Indenture Trustee, including
any Vice President, Assistant Vice President, Secretary, Assistant Secretary, or
any other officer of the Indenture Trustee customarily performing functions
similar to those performed by any of the above designated officers, with direct
responsibility for the administration of the Indenture and the other Basic
Documents on behalf of the Indenture Trustee and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer's knowledge of and familiarity with the particular subject.

          
"S&P" means Standard and Poor's Ratings Services, a division of The McGraw-Hill
Companies, Inc.

          
"Sale and Servicing Agreement" means the Sale and Servicing Agreement dated as
of September 1, 2000 among the Issuer, the Seller, the Administrator, the
Eligible Lender Trustee and the Master Servicer.

          
"Schedules of Financed Student Loans" means the listing of the Financed Student
Loans set forth in Schedules A and B to the Sale and Servicing Agreement and to
the Indenture (which Schedules may be in the form of microfiche or computer
tape), as amended or supplemented on each Transfer Date to reflect the sale to
the Eligible Lender Trustee on behalf of the Trust of the Additional Student
Loans.

          
"Securities" means the Class A-1 Notes and the Class A-2 Notes.

          
"Securities Guaranty Insurance Policy" means the unconditional, irrevocable note
guaranty insurance policy, number 33098, substantially in the form attached to
the Indenture as part of Exhibits A-1 and A-2..

          
"Securities Guaranty Insurance Policy Notice" means the "Notice," as defined in
the Securities Guaranty Insurance Policy, to be provided by the Indenture
Trustee to the Securities Insurer with respect to a Insured Payment.

          
"Securities Insurer" means MBIA Insurance Corporation.

          
"Securities Insurer Default" means (i) the failure of the Securities Insurer to
make a payment in accordance with the terms of the Securities Guaranty Insurance
Policy, or (ii) if an Insolvency Event with respect to the Securities Insurer
occurs.

          
"Seller" means Key Bank USA, National Association, a national banking
association.

          
"Seller Optional Deposit" has the meaning specified in Section 5.09 of the Sale
and Servicing Agreement.

          
"Serial Loans" means additional student loans, including Consolidation Loans,
which are made under the Programs to a borrower who is also a borrower under at
least one Financed Student Loan.

          
"Servicer's Report" means any report of the Master Servicer (or any Sub-Servicer
acting at the direction of the Master Servicer) delivered pursuant to Section
4.08(a) or (b) of the Sale and Servicing Agreement, substantially in the form
acceptable to the Administrator and (provided that no Securities Insurer Default
has occurred and is continuing) the Securities Insurer.

          
"SLS Loan" means a Financed Federal Loan designated as such that is made under
the Federal Supplemental Loans for Students Program pursuant to the Higher
Education Act.

          
"Society" means Society National Bank, predecessor in interest to the Seller and
successor in interest to Ameritrust.

          
"Society/PHEAA Servicing Agreement" means (i) the Servicing Agreement, dated
March 23, 1995, by and between PHEAA and Seller, as amended from time to time
and including all servicing schedules and other exhibits, or (ii) after the
expiration of the agreement described in clause (i), the then current service
agreement (including all servicing schedules) between Seller and PHEAA pursuant
to which PHEAA services student loans owned by Seller, or if no such service
agreement exists, the last such service agreement to be in existence, and any
references to specific sections of the Society/PHEAA Servicing Agreement shall
mean the sections of the agreement described in clause (i) of this definition or
the substantially similar provisions of the relevant agreement described in
clause (ii) of this definition

          
"Society RT-SS Agreement" means (i) the Remote Time-Sharing Services Agreement,
dated January 28, 1992, by and between PHEAA and Society, as amended from time
to time, relating to certain Financed Student Loans, or (ii) after the
expiration of the agreement described in clause (i), the then current agreement
relating to the provision of remote time-sharing services between PHEAA and the
Seller, or if no such agreement exists, the last such agreement to be in
existence; and any references to specific sections of the Society RT-SS
Agreement shall mean the sections of the agreement described in clause (i) of
this definition or the substantially similar provisions of the relevant
agreement described in clause (ii) of this definition.

          
"Special Allowance Payments" means payments, designated as such, consisting of
effective interest subsidies by the Department in respect of the Financed
Federal Loans to the Eligible Lender Trustee on behalf of the Trust in
accordance with the Higher Education Act.

          
"Special Determination Date" means December 31, 2000.

          
"Special Redemption Date" means January 25, 2001.

          
"Specified Collateral Balance" means, with respect to any Distribution
Date, the sum of (a) the Pool Balance as of the last day of the related
Collection Period plus (b) the Pre-Funded Amount, as of the last day of the
related Collection Period for such Distribution Date. In the event that the
Financed Student Loans are not sold pursuant to Section 9.01(c) of the Sale and
Servicing Agreement with respect to any Distribution Date occurring on or after
the October 2010 Distribution Date, the Specified Collateral Balance will be
zero. Following the occurrence and during the continuation of a Trigger Event,
the Specified Collateral Balance will be zero.

          
"Specified Reserve Account Balance" means with respect to any Distribution Date
an amount equal to the greater of (i) 1.75% of the aggregate Outstanding Amount
and (ii) $2.5 million; provided, however, that in no event will such balance
exceed the aggregate Outstanding Amount.

          
"Stafford Loan" means a Financed Federal Loan designated as such that is made
under the Federal Stafford Loan Program in accordance with the Higher Education
Act.

          
"State" means any one of the 50 States of the United States of America or the
District of Columbia.

          
"Statistical Cutoff Date" means, August 1, 2000, with respect to the Initial
Financed Student Loans and the Subsequent Pool Student Loans.

          
"Student Loan Rate" means for any Class of Securities for any Interest Period a
rate equal to the product of (a) the quotient obtained by dividing (i) 365 (or
366 in a leap year) by (ii) the actual number of days elapsed in such Interest
Period and (b) the percentage equivalent of a fraction, (i) the numerator of
which is equal to Expected Interest Collections for the Collection Period
relating to such Interest Period, plus any Net Trust Swap Receipt actually
received by the Trust with respect to the related Collection Period, less the
sum of the Master Servicing Fees, the premiums due to the Securities Insurer and
the Administration Fee payable on the related Distribution Date and any Master
Servicing Fees paid on the two preceding Monthly Servicing Payment Dates during
the related Collection Period, minus any Net Trust Swap Payment due to the Swap
Counterparty for the related Collection Period, and (ii) the denominator of
which is the outstanding principal balance of the Securities as of the first day
of such Interest Period.

          
"Subsequent Cutoff Date" means the day specified in the related Transfer
Agreement as of which principal and interest accruing with respect to an
Additional Student Loan is to be transferred to the Eligible Lender Trustee on
behalf of the Issuer pursuant to Section 2.02 of the Sale and Servicing
Agreement.

          
"Subsequent Pool Pre-Funded Amount" means, with respect to any Distribution
Date, the amount on deposit in the Subsequent Pool Pre-Funding Subaccount.

          
"Subsequent Pool Pre-Funding Subaccount" has the meaning set forth in Section
5.08 of the Sale and Servicing Agreement.

          
"Subsequent Pool Student Loans" means any graduate or undergraduate student
loans listed on the Schedule of the Subsequent Pool Student Loans on the Closing
Date as set forth in Schedule B to the Sale and Servicing Agreement (which
Schedule may be in the form of microfiche or computer tape), as such schedule
may be amended or supplemented, which student loans the Seller intends to
transfer to the Eligible Lender Trustee on behalf of the Issuer pursuant to
Section 2.02 of the Sale and Servicing Agreement, each of which shall be
identified on Schedule A to the related Transfer Agreement.

          
"Sub-Servicer" initially means each of PHEAA, in its capacity as sub-servicer of
the Financed Student Loans it services on behalf of the Master Servicer pursuant
to the PHEAA Sub-Servicing Agreement, and Great Lakes, as sub-servicer of the
Financed Student Loans it services on behalf of the Master Servicer pursuant to
the Great Lakes Sub-Servicing Agreement, as applicable, and such other
Sub-Servicers as may, from time to time, be appointed by the Master Servicer as
Sub-Servicers in accordance with the provisions of Section 4.13 of the Sale and
Servicing Agreement.

          
"Successor Administrator" has the meaning specified in Section 3.07(e) of the
Indenture.

          
"Successor Master Servicer" has the meaning specified in Section 3.07(e) of the
Indenture.

          
"Swap Counterparty" means Key Bank USA, National Association in its capacity as
the swap counterparty under the Interest Rate Swap, and any replacement swap
counterparty acceptable to the Securities Insurer (provided that no Securities
Insurer Default has occurred and is continuing) and appointed in accordance with
the terms of the Interest Rate Swap.

          
"T-Bill Indexed Securities" means none.

          
"T-Bill Rate" means, on any day, the weighted average per annum discount rate
(expressed on a bond equivalent basis and applied on a daily basis) for 91-day
Treasury Bills sold at the most recent 91-day Treasury Bill auction prior to
such date as reported by the U.S. Treasury Department. In the event that the
results of the auctions of 91-day Treasury Bills cease to be published or
reported as provided above, or that no such auction is held in a particular
week, then the "T-Bill Rate" in effect as a result of the last such publication
or report shall remain in effect until such time, if any, as the results of
auctions of 91-day Treasury Bills shall again be so published or reported or
such an auction is held, as the case may be. The T-Bill Rate shall be subject to
a Lock-In Period of six Business Days.

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

          
"TERI" means The Education Resources Institute, Inc., a Massachusetts non-profit
corporation.

          
"TERI Trigger Event" means, on any Distribution Date, when the cumulative
Realized Losses on any of the Guaranteed Private Loans that are guaranteed by
TERI exceeds 20% of the Initial Financed Student Loan Pool Balance consisting of
all Guaranteed Private Loans that are guaranteed by TERI; provided, however,
that a TERI Trigger Event shall not have occurred if TERI is continuing to pay
claims with respect to all Guaranteed Private Loans guaranteed by TERI.

          
"Termination Event" has the meaning specified in the Interest Rate Swap.

          
"Termination Payment" has the meaning specified in the Interest Rate Swap.

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

          
"TIA" means the Trust Indenture Act of 1939, as amended.

          
"Transfer Agreement" has the meaning specified in Section 2.02(b) of the Sale
and Servicing Agreement.

          
"Transfer Date" means the Closing Date, the fifteenth day (or, if such day is
not a Business Day, the next succeeding Business Day) of any month or any other
date designated by the Seller as a date on which Additional Student Loans will
be conveyed to the Eligible Lender Trustee on behalf of the Trust pursuant to
Section 2.02 of the Sale and Servicing Agreement.

          
"Transferred Balance" has the meaning assigned to such term in Section 5.08 of
the Sale and Servicing Agreement.

          
"Transferred MPN Loans" means those Financed Student Loans that are MPN Loans.

          
"Treasury Regulations" means regulations, including proposed or temporary
regulations, promulgated under the Code. References in any document or
instrument to specific provisions of proposed or temporary regulations shall
include analogous provisions of final Treasury Regulations or other successor
Treasury Regulations.

          
"Trigger Event" means, on any Distribution Date, when: (1) a Non-Guaranteed
Private Undergraduate Loan Trigger Event has occurred, or (2) a Private Graduate
Loan Trigger Event has occurred; provided, however, that if all three Ratings
Agencies and the Securities Insurer consent in writing, no Trigger Event shall
have occurred with respect to such Distribution Date.

          
"Trust" means the Issuer, established pursuant to the Trust Agreement.

          
"Trust Account Property" means the Trust Accounts, all amounts and
investments held from time to time in any Trust Account (whether in the form of
deposit accounts, Physical Property, book-entry securities, uncertificated
securities or otherwise), including the Reserve Account Initial Deposit and the
Pre-Funded Amount and all proceeds of the foregoing.

          
"Trust Accounts" has the meaning specified in Section 5.01 of the Sale and
Servicing Agreement.

          
"Trust Agreement" means the Trust Agreement, dated as of August 3, 2000, as
amended and restated by the Amended and Restated Trust Agreement, dated as of
September 1, 2000, each between the Depositor and the Eligible Lender Trustee.

          
"Trust Certificate" means a Certificate.

          
"Trust Estate" means all right, title and interest of the Trust (or the Eligible
Lender Trustee on behalf of the Trust) in and to the property and rights
assigned to the Trust pursuant to Article II of the Sale and Servicing
Agreement, all funds on deposit from time to time in the Trust Accounts and all
other property of the Trust from time to time, including any rights of the
Eligible Lender Trustee and the Trust pursuant to the Sale and Servicing
Agreement and the Administration Agreement.

          
"Trust Indenture Act" or "TIA" means the Trust Indenture Act of
1939 as in force on the date hereof, unless otherwise specifically provided.

          
"Trust Receipts" means the collective reference to the Great Lakes Trust Receipt
and the PHEAA Trust Receipt.

          
"Trust Swap Payment Amount" means, with respect to any Distribution Date, the
sum of (i) the Net Trust Swap Payment for such Distribution Date and (ii) the
Net Trust Swap Payment Carryover Shortfall for such Distribution Date; provided,
however, that Termination Payments (other than the portion thereof consisting of
amounts in clauses (i) and (ii) above) shall not be deemed to be part of the
Trust Swap Payment Amount.

          
"Trust Swap Receipt Amount" means, with respect to any Distribution Date, the
sum of (i) the Net Trust Swap Receipt for such Distribution Date and (ii) the
Net Trust Swap Receipt Carryover Shortfall for such Distribution Date.

          
"UCC" means, unless the context otherwise requires, the Uniform Commercial Code,
as in effect in the relevant jurisdiction, as amended from time to time.

          
"Undergraduate Loan Programs" means the "Key Alternative Loan Program," pursuant
to which the Seller made loans to students enrolled in approved or accredited
undergraduate institutions.

          
"USAF" means United Student Aid Fund, Inc., an Indiana corporation.

          
"Underwriters" shall mean Deutsche Bank Securities Inc. and McDonald Investments
Inc., a wholly-owned subsidiary of KeyCorp.

          
"Underwriting Agreement" shall mean the Note Underwriting Agreement.

          
"Underwriter Information" shall have the meaning given to such term in Section
2(b) of the Underwriting Agreement.

SCHEDULE A

TO THE

SALE AND SERVICING AGREEMENT

Schedule of Initial Financed Student Loans

Delivered to the Indenture Trustee.

SCHEDULE B

TO THE

SALE AND SERVICING AGREEMENT

PART I

Schedule of Subsequent Pool Student Loans

Delivered to the Indenture Trustee

PART II

Schedule of Other Subsequent Student Loans

To be included on Schedule A to each related Transfer Agreement.

SCHEDULE C

TO THE

SALE AND SERVICING AGREEMENT

Location of Financed Student Loan Files - PHEAA

          
Documents relating to the Financed Student Loans being
sub-serviced by PHEAA on behalf of the Master Servicer pursuant to the PHEAA
Sub-Servicing Agreement (including original notes) are stored at PHEAA's
facility at 1200 North 7th Street, Harrisburg, Pennsylvania 17102.

Location of Financed Student Loan Files - Great Lakes

Documents relating to the Financed Student Loans being
sub-serviced by Great Lakes on behalf of the Master Servicer pursuant to the
Great Lakes Sub-Servicing Agreement(including original notes) are stored at
Great Lakes’ facilities at 2401 International Lane, Madison, Wisconsin
53704, and, on behalf of Great Lakes, at the offices of Datakeep Inc., 2538
Daniels Street, Madison, Wisconsin 53718.

SCHEDULE D

TO THE

SALE AND SERVICING AGREEMENT

Master Servicing or Sub-Servicing Provisions to be Audited Pursuant to
Section 4.10

Sections 3.03, 3.04, 4.01, 4.02, 4.03, 4.06, 4.08, 5.02 and
5.03 of the Sale and Servicing Agreement (but only to the extent that the Master
Servicer has performed such duties) [otherwise to be included as part of the
applicable Sub-Servicer’s audit report to be provided pursuant to Section
4.10 of this Agreement and the related Sub-Servicing Agreement].

Administrative Provisions to be Audited Pursuant to Section 4.10

Sections 4.04, 4.08, 5.05, 5.06, 5.07 and 5.08 of the Sale and Servicing Agreement.

Sections 1(a)(xx), 1(b)(iii), 2 and 3 of the Administration Agreement.

SCHEDULE E

TO THE

SALE AND SERVICING AGREEMENT

          
1. Fees. The
Master Servicing Fee payable to the Master Servicer on each Monthly Servicing
Payment Date in accordance with Sections 4.07 and 5.05(b)(ii) and (c)(ii) of the
Sale and Servicing Agreement shall be equal to 0.0416666% (0.50% on an
annualized basis) (the “Master Servicing Fee Percentage”) of the Pool
Balance as of the last day of the preceding calendar month (the “Master
Servicing Fee”).

          
2.
Adjustments. If a demonstrable and significant increase occurs in the
costs incurred by the Master Servicer in providing and/or arranging for the
services to be provided under the Sale and Servicing Agreement, whether due to
changes in applicable governmental regulations, guarantor program requirements
or regulations, United States Postal Service postage rates or some other
identifiable cost increasing event, the Seller, the Eligible Lender Trustee on
behalf of the Trust and the Master Servicer shall negotiate in good faith a
reasonable increase in the Master Servicing Fee Percentage to reflect the
increased costs of the Master Servicer provided that, such increase shall be
approved by the Securities Insurer (provided that no Securities Insurer Default
has occurred and is continuing) and such consent will not be unreasonably
withheld.

EXHIBIT A

TO THE

SALE AND SERVICING AGREEMENT

Form of Noteholders' Statement

pursuant to Section 5.07 of Sale
 and Servicing Agreement (capitalized

terms used herein are defined in
 Appendix A
thereto)                                  

          Distribution
Date:            
             
         

          
(i)  Amount of principal being paid or distributed in respect of the Class A-1
Notes:___________ ($_______ per $1,000 original principal amount of Class A-1
Notes)

          
(ii)  Amount of principal being paid or distributed in respect of the Class A-2
Notes:___________ ($_______ per $1,000 original principal amount of Class A-2
Notes)

          
(iii)  Amount of interest being paid or distributed in respect of the Class A-1
Notes:___________ ($_______ per $1,000 original principal amount of Class A-1
Notes)

          
(iv)  Amount of interest being paid or distributed in respect of the Class A-2
Notes:___________ ($_______ per $1,000 original principal amount of Class A-2
Notes)

          
(v)  Amount of Noteholders' Interest Index Carryover being paid or distributed
(if any) and amount remaining (if any):

	 
	          
(1)  Distributed to Class A-1 Noteholders: _______($_______ per $1,000 original
principal amount of Class A-1 Notes)

	 
	          
(2)  Distributed to Class A-2 Noteholders: _______($_______ per $1,000
original principal amount of Class A-2 Notes)

	 
	          
(3)  Balance on Class A-1 Notes:__________ ($_______ per $1,000
original principal amount of Class A-1 Notes)

	 
	          
(4)  Balance on Class A-2 Notes:__________ ($_______ per $1,000
original principal amount of Class A-2 Notes)

          
(vi) Payments made under the Cap Agreement on such date: _______________
($______________ with respect to the Class A-1 Notes and, $___________ with
respect to Class A-2 Notes,); and the total outstanding amount owed to the Cap
Provider: $________________.

          
(vii) Pool Balance at the end of the related Collection Period:________

          
(viii) After giving effect to distributions on this Distribution Date:

	 
	(a)	(1)  outstanding principal amount of
Class A-1 Notes:____________

	 
	 	(2)  Pool Factor for the Class A-1
Notes:____________

	 
	(b)	(1)  outstanding principal amount of
Class A-2 Notes:____________

	 
	 	(2)  Pool Factor for the Class A-2
Notes:____________

          
(ix) Note Interest Rate for the Notes:

	 
	(a)  In general:

	 
	          [(1)   T-Bill
Rate for the period from the previous Distribution Date to this Distribution
Date was _____%;]

	 
	or

	 
	          
[(1)   Three-Month LIBOR for the period from the previous Distribution
Date to this Distribution Date was ___% [in the case of the initial Interest
Period Three-Month LIBOR was _____% for the period from the Closing Date to but
excluding October 25, 2000 and _____% for the period from and including October
25, 2000 to but excluding January 25, 2001 and]

	 
	          
[(2)]  the Student Loan Rate was _____%.[1][2]

          
(b) Note Interest Rate for the Class A-1 Notes: ______% (based on [T-Bill
Rate][Three-Month LIBOR][Student Loan Rate])

          
(c) Note Interest Rate for the Class A-2 Notes __% (based on [T-bill Rate]
[Three-Month LIBOR][Student Loan Rate]

          
(x) Amount of Master Servicing Fee for related Collection Period: ____________
($_______ per $1,000 original principal amount of Class A-1 Notes and $_________
per $1,000 original principal balance of Class A-2 Notes);

          
(xi) Amount of Administration Fee for related Collection Period:____________
($_______ per $1,000 original principal amount of Class A-1 Notes and $_________
per $1,000 original principal balance of Class A-2 Notes);

          
(xii) (a) Aggregate amount of Realized Losses (if any) for the related
Collection Period:

          
(b) Balance of Financed Student Loans that are delinquent in each delinquency
period as of the end of the related Collection Period:

          
[(xiii) Amount in the Pre-Funding Account:_________]1

          
[(xiv) (a) Amount remaining in the Subsequent Pool Pre-Funding Subaccount not
used to acquire Subsequent Pool Student Loans: ______;

          
(b) Amount of (a) to be paid to the holders of the Class A-1 Notes: __________]2

          
(c) Amount of (a) to be paid to the holders of the Class A-2 Notes: ________;
and

          
[(xv) Amount in the Pre-Funding Account at the end of the Funding Period to be
distributed as a payment of principal in respect of the Notes:__________]3

          
(xvi) Amount of the Insurer Premium paid to the Securities Insurer on such
Distribution Date $___________.

          
(xvii) Amount received from the Securities Insurer with respect to the
Securities Guaranty Insurance Policy $_____________.

          
(xviii) Amount paid to the Securities Insurer in reimbursement of all Insured
Payments made pursuant to the Securities Guaranty Insurance Policy
$_____________.

          
(xix) the Trust Swap Payment Amount paid to the Swap Counterparty on such
Distribution Date: $___________; the amount of any Net Trust Swap Payment
Carryover Shortfall for such Distribution Date: $___________; the Trust Swap
Receipt Amount paid to the Trust on such Distribution Date: $___________; the
Net Trust Swap Receipt Carryover Shortfall for such Distribution Date:
$___________; and the amount of any Termination Payment either paid by or made
to the Trust on such Distribution Date: $___________.

EXHIBIT B

TO THE

SALE AND SERVICING AGREEMENT

[RESERVED]

EXHIBIT C

TO THE

SALE AND SERVICING AGREEMENT

[RESERVED]

EXHIBIT D

TO THE

SALE AND SERVICING AGREEMENT

          ASSIGNMENT

          
For value received, in accordance with the Sale and Servicing Agreement (the
"Sale and Servicing Agreement") dated as of September 1, 2000, among the
undersigned, as seller (the "Seller"), as master servicer (the "Master
Servicer") and as administrator (the "Administrator"), KeyCorp Student Loan
Trust 2000-B (the "Trust"), and Bank One, National Association, not in its
individual capacity but solely as Eligible Lender Trustee (the "Eligible Lender
Trustee"), the undersigned (the Seller, as beneficial owner, and Bank One,
National Association, as eligible lender trustee on behalf of the Seller) does
hereby sell, assign, transfer and otherwise convey unto the Eligible Lender
Trustee on behalf of the Trust, without recourse (subject to the obligations set
forth in the Sale and Servicing Agreement), all right, title and interest of the
undersigned in and to (i) the Initial Financed Student Loans and all obligations
of the Obligors thereunder including all moneys paid thereunder on or after the
Cutoff Date, (ii) the Assigned Rights, (iii) all funds on deposit from time to
time in the Trust Accounts, including the Reserve Account Initial Deposit and
the Pre-Funded Amount and in all investments and proceeds thereof (including all
income thereon) and (iv) the proceeds of any and all of the foregoing (including
proceeds derived from the voluntary or involuntary conversion of any of the
Initial Financed Student Loans into cash or other liquidated property, such as
proceeds from the applicable Guarantee Agreement. The foregoing sale does not
constitute and is not intended to result in any assumption by the Eligible
Lender Trustee or the Trust of any obligation of the Seller to the Obligors with
respect to Initial Financed Student Loans or any other person in connection with
the Initial Financed Student Loans or any agreement or instrument relating to
any of them.

          
In addition, the undersigned, by execution of this instrument, hereby endorses
the promissory notes evidencing each Initial Financed Student Loan described in
Schedule A to the Sale and Servicing Agreement in favor of the Eligible Lender
Trustee on behalf of the Trust, without recourse (subject to the obligations set
forth in the Sale and Servicing Agreement) against the undersigned. This
endorsement may be effected by attaching a facsimile hereof to each or any of
such promissory notes.

          
This Assignment is made pursuant to and upon the representations, warranties and
agreements on the part of the undersigned contained in the Sale and Servicing
Agreement and is to be governed by the Sale and Servicing Agreement.

          
Capitalized terms used but not defined herein shall have the meaning assigned to
them in Appendix A to the Sale and Servicing Agreement, which also contains
rules as to usage that shall be applicable herein.

          
IN WITNESS WHEREOF, the undersigned has caused this Assignment to be duly
executed as of September 15, 2000.

	 
	
KEY BANK USA, NATIONAL

ASSOCIATION, as Seller

By:                                          
           

      Name:

      Title:

	 
	
BANK ONE, NATIONAL ASSOCIATION, as

eligible lender trustee

By:                                          
           

      Name:

      Title:

****EXHIBIT E

TO THE

SALE AND SERVICING AGREEMENT

TRANSFER AGREEMENT

          
TRANSFER No. ____ OF ADDITIONAL STUDENT LOANS dated as of ________ ___, 20___
among KEYCORP STUDENT LOAN TRUST 2000-B, a Delaware statutory business trust
(the "Issuer"), KEY BANK USA, NATIONAL ASSOCIATION, a national banking
association, as seller (the "Seller"), BANK ONE, NATIONAL ASSOCIATION, a
national banking association, not in its individual capacity but solely as
Eligible Lender Trustee of the Issuer (the "Eligible Lender Trustee"), and KEY
BANK USA, NATIONAL ASSOCIATION, a national banking association, as administrator
(the "Administrator").

W I T N E S S E T H:

          
WHEREAS the Issuer, the Seller, the Eligible Lender Trustee, the Master Servicer
and the Administrator are parties to the Sale and Servicing Agreement dated as
of September 1, 2000 (as amended or supplemented, the "Sale and Servicing
Agreement");

          
WHEREAS the Seller, as depositor, and the Eligible Lender Trustee are parties to
the Amended and Restated Trust Agreement dated as of September 1, 2000 (as
amended or supplemented, the "Trust Agreement");

          
WHEREAS pursuant to the Sale and Servicing Agreement, the Seller wishes to
convey the Additional Student Loans referred to in Section 2 of this Agreement
(the "Additional Student Loans") to the Eligible Lender Trustee on behalf of the
Issuer; and

          
WHEREAS, the Eligible Lender Trustee and the Issuer are willing to accept such
conveyance subject to the terms and conditions hereof.

          
NOW, THEREFORE, the parties hereto hereby agree as follows:

          
1. Definitions and Usage. Unless otherwise defined herein, capitalized terms
used herein shall have the meanings ascribed to them in Appendix A to the Sale
and Servicing Agreement, which also contains rules of construction and usage
that shall be applicable herein.

          
In addition, the following terms have the following meanings:

          
"Subsequent Cutoff Date" means, with respect to each Additional Student Loan,
the date specified as such on Schedule A hereto.

          
"Transfer Date" means, with respect to the Additional Student Loans,
______________, ____.

          
2. Schedules of Financed Student Loans. Attached hereto as Schedule A
is a supplement to Schedule B to the Sale and Servicing Agreement listing the
Additional Student Loans to be conveyed on the Transfer Date to the Eligible
Lender Trustee on behalf of the Issuer pursuant to this Agreement.

          
3. Conveyance of Additional Student Loans. In consideration of the
Issuer's delivery to or upon the order of the Seller of $__________, the Seller
does hereby sell, transfer, assign, set over and otherwise convey, without
recourse (except as expressly provided in the Sale and Servicing Agreement), to
the Eligible Lender Trustee on behalf of the Issuer:

	 
	          
(a)  all right, title and interest of the Seller in and to each Additional
Student Loan, and all moneys received thereon, on and after the related
Subsequent Cutoff Date; and

	 
	          
(b)  the proceeds of any and all of the foregoing.

          
4. Representations and Warranties of the Seller. The Seller hereby represents
and warrants to the Issuer as of the date of this Agreement and as of the
Transfer Date that:

	 
	          
(a)  Organization and Good Standing. The Seller is duly
organized and validly existing as a national banking association in good
standing under the laws of the United States of America, with the power and
authority to own its properties and to conduct its business as such properties
are currently owned and such business is presently conducted, and had at all
relevant times, and has, the power, authority and legal right to acquire and own
the Additional Student Loans.

	 
	          
(b)  Power and Authority. The Seller has the corporate power and authority to
execute and deliver this Agreement and to carry out its terms; the Seller has
full corporate power and corporate authority to sell and assign the property to
be sold and assigned to and deposited with the Issuer (or with the Eligible
Lender Trustee on behalf of the Issuer) and the Seller has duly authorized such
sale and assignment to the Issuer (or to the Eligible Lender Trustee on behalf
of the Issuer) by all necessary corporate action; and the execution, delivery
and performance of this Agreement have been duly authorized by the Seller by all
necessary corporate action.

	 
	          
(c)Binding Obligation. This Agreement constitutes a legal, valid and binding
obligation of the Seller enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization and similar laws relating to
creditors’ rights generally or the rights of creditors of banks the deposit
accounts of which are insured by the FDIC and subject to general principles of
equity.

	 
	          
(d)  No Violation. The consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms hereof do not conflict with, result
in any breach of any of the terms and provisions of, nor constitute (with or
without notice or lapse of time or both) a default under, the articles of
association or by-laws of the Seller, or any indenture, agreement or other
instrument to which the Seller is a party or by which it shall be bound which
breach or default would reasonably be expected to have a material adverse effect
on the condition of Key Bank USA, National Association, financial or otherwise,
or adversely affect the transactions contemplated by this Agreement or any other
Basic Document; nor result in the creation or imposition of any Lien upon any of
its properties pursuant to the terms of any such indenture, agreement or other
instrument (other than pursuant to the Basic Documents); nor violate any law or,
to the knowledge of the Seller, any order, rule or regulation applicable to the
Seller of any court or of any Federal or State regulatory body, administrative
agency or other governmental instrumentality having jurisdiction over the Seller
or its properties.

	 
	          
(e)  No Proceedings. There are no proceedings or to its best knowledge
investigations pending against the Seller or, to its best knowledge, threatened
against the Seller, before any court, regulatory body, administrative agency or
other governmental instrumentality having jurisdiction over the Seller or its
properties:  (i) asserting the invalidity of this Agreement, the
Indenture or any of the other Basic Documents or the Notes, (ii) seeking to
prevent the issuance of the Notes or the consummation of any of the transactions
contemplated by this Agreement, the Indenture or any of the other Basic
Documents, (iii) seeking any determination or ruling that could reasonably
be expected to have a material and adverse effect on the performance by the
Seller of its obligations under, or the validity or enforceability of, this
Agreement, the Indenture, any of the other Basic Documents or the Notes or (iv)
seeking to affect adversely the Federal or State income tax attributes of the
Issuer, the Notes.

	 
	          
(f)  All Consents. All authorizations, consents, orders or approvals of or
registrations or declarations with any court, regulatory body, administrative
agency or other government instrumentality required to be obtained, effected or
given by the Seller in connection with the execution and delivery by the Seller
of this Agreement and the performance by the Seller of the transactions
contemplated by this Agreement have been duly obtained, effected or given and
are in full force and effect.

	 
	          
(g)  Principal Balance. The aggregate principal balance of the
Additional Student Loans listed on Schedule A attached hereto and conveyed to
the Eligible Lender Trustee on behalf of the Issuer pursuant to this Agreement
as of their respective Subsequent Cutoff Dates is $___________.

          
5. Conditions Precedent. The obligation of the Issuer to acquire the Additional
Student Loans hereunder is subject to the satisfaction, on or prior to the
Transfer Date, of the following conditions precedent:

	 
	          
(a)  Representations and Warranties. Each of the representations and warranties
made by the Seller in Section 4 of this Agreement and in Section 3.01 of the
Sale and Servicing Agreement shall be true and
correct as of the date of this Agreement and as of the Transfer Date.

	 
	          
(b)  Sale and Servicing Agreement Conditions. Each of the
conditions set forth in Section 2.02(b) of the Sale and Servicing Agreement
shall have been satisfied.

	 
	          
(c)  Delivery of Assignment. The Seller shall have delivered an
Assignment substantially in the form of Annex A hereto.

	 
	          
(d) Additional Information. The Seller shall have delivered to the Issuer
such information as was reasonably requested by the Issuer to satisfy itself as
to (i) the accuracy of the representations and warranties set forth in
Section 4 of this Agreement and in Section 3.01 of the Sale and Servicing
Agreement and (ii) the satisfaction of the conditions set forth in this
Section 5.

          
6. Ratification of Agreement. As supplemented by this Agreement, the Sale and
Servicing Agreement is in all respects ratified and confirmed and the Sale and
Servicing Agreement as so supplemented by this
Agreement shall be read, taken and construed as one and the same instrument.

          
7. Counterparts. This Agreement may be executed in separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
together shall constitute but one and the same instrument.

          
8. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS,
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

          
9. 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.

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

	 
	
KEYCORP STUDENT LOAN TRUST 2000-B

by BANK ONE, NATIONAL ASSOCIATION,

not in its individual capacity but solely

as Eligible Lender Trustee,

By:                                          
           

      Name:

      Title:

	 
	
KEY BANK USA, NATIONAL ASSOCIATION,

Seller,

By:                                          
           

      Name:

      Title:

	 
	
KEY BANK USA, NATIONAL ASSOCIATION,

Administrator,

By:                                          
           

      Name:

      Title:

	 
	
BANK ONE, NATIONAL ASSOCIATION,

not in its individual capacity but solely as Eligible

Lender Trustee,

By:                                          
           

      Name:

      Title:

Acknowledged and accepted as

of the date first above written:

BANKERS TRUST COMPANY,

not in its individual

capacity but solely as

Indenture Trustee,

By:                                          
           

      Name:

      Title:

SCHEDULE A

TO THE

TRANSFER AGREEMENT NO. ___

[List of Additional Student Loans and their related Subsequent Cutoff Dates]

ANNEX A

TO THE TRANSFER AGREEMENT

     ASSIGNMENT

          
For value received, in accordance with the Sale and Servicing Agreement (the
"Sale and Servicing Agreement") dated as of September 1, 2000, among the
undersigned, as seller (the "Seller"),and as administrator (the
"Administrator"), KeyCorp Student Loan Trust 2000-B (the "Trust"), and Bank One,
National Association, not in its individual capacity but solely as Eligible
Lender Trustee (the "Eligible Lender Trustee"), and the Transfer Agreement No.
dated as of ___, 20___ (the "Transfer Agreement") among the Seller, the
Administrator, the Trust and the Eligible Lender Trustee, the undersigned does
hereby sell, ---- ------- assign, transfer and otherwise convey unto the
Eligible Lender Trustee on behalf of the Trust, without recourse (subject to the
obligations set forth in the Sale and Servicing Agreement), all right, title and
interest of the undersigned in and to (i) the Additional Student Loans (as such
term is defined in the Transfer Agreement) and all moneys received thereon, on
and after each applicable Subsequent Cutoff Date (as such term is defined in the
Transfer Agreement) and (ii) the proceeds of any and all of the foregoing
(including but not limited to proceeds derived from the voluntary or involuntary
conversion of any of the Additional Student Loans into cash or other liquidated
property, such as proceeds from the applicable Guarantee Agreement (as such term
is defined in the Transfer Agreement)). The foregoing sale does not constitute
and is not intended to result in any assumption by the Eligible Lender Trustee
or the Trust of any obligation of the Seller to the borrowers of such Additional
Student Loans or any other person in connection with the Additional Student
Loans or any agreement or instrument relating to any of them.

          
In addition, the undersigned, by execution of this instrument, hereby endorses
the promissory notes evidencing each Additional Student Loan described in
Schedule A to the Transfer Agreement in favor of the Eligible Lender Trustee on
behalf of the Trust, without recourse (subject to the obligations set forth in
the Sale and Servicing Agreement) against the undersigned. This endorsement may
be effected by attaching a facsimile hereof to each or any of such promissory
notes.

          
This Assignment is made pursuant to and upon the representations, warranties and
agreements on the part of the undersigned contained in the Sale and Servicing
Agreement and the Transfer Agreement and is to be governed by the Sale and
Servicing Agreement and the Transfer Agreement.

          
Capitalized terms used but not defined herein shall have the meaning assigned to
them in the Transfer Agreement.

          
IN WITNESS WHEREOF, the undersigned has caused this Assignment to be duly
executed as of ___, 20___.

	 
	
KEY BANK USA, NATIONAL ASSOCIATION,

Seller,

By:                                          
           

      Name:

      Title:

____________________

	1
	
To be included for each Distribution Date during the Funding Period.

	2
	
To be included for First Distribution Date only.

	3
	
To be included for the Distribution Date on or immediately following the end of
the Funding Period.Exhibit 4.4

EXECUTION COPY

MBIA INSURANCE CORPORATION,

as Insurer

KEY BANK USA, NATIONAL ASSOCIATION,

as Master Servicer, Seller, Administrator and Depositor

KEYCORP STUDENT LOAN TRUST 2000-B,

as Issuer

BANK ONE, NATIONAL ASSOCIATION,

as Eligible Lender Trustee

and

BANKERS TRUST COMPANY,

as Indenture Trustee

INSURANCE AGREEMENT

$635,000,000

KeyCorp Student Loan Trust 2000-B

Floating Rate Asset-Backed Notes

Class A-1 and A-2

Dated as of September 1, 2000

ARTICLE I

	DEFINITIONS	 	1

ARTICLE II

REPRESENTATIONS, WARRANTIES AND COVENANTS

	Section 2.01.	Representation and Warranties of the Issuer, the Master Servicer,
the Seller, the Administrator and the Depositor	5

	Section 2.02.	Affirmative Covenants of the Issuer, the Master Servicer, the
Seller, the Administrator and the Depositor	10

	Section 2.03.	Negative Covenants of the Issuer, the Master Servicer, the Seller,
the Administrator and the Depositor	15

	Section 2.04.	Representations, Warranties and Covenants of Eligible Lender
Trustee	16

	Section 2.05.	Representations, Warranties and Covenants of Indenture
Trustee	18

ARTICLE III

THE POLICY; REIMBURSEMENT

	Section 3.01.	Issuance of the Policy	19

	Section 3.02.	Payment of Fees and Premium	21

	Section 3.03.	Reimbursement and Additional Payment Obligation	22

	Section 3.04.	Indemnification; Limitation of Liability	23

	Section 3.05.	Payment Procedure	26

	Section 3.06.	Indemnification of the Indenture Trustee; Limitation of
Liability	26

ARTICLE IV

FURTHER AGREEMENTS

	Section 4.01.	Effective Date; Term of the Insurance Agreement	27

	Section 4.02.	Further Assurances and Corrective Instruments	27

	Section 4.03.	Obligations Absolute	28

	Section 4.04.	Assignments; Reinsurance; Third-party Rights	29

	Section 4.05.	Liability of the Insurer	30

	Section 4.06.	Parties Will Not Institute Insolvency Proceedings	31

	Section 4.07.	Eligible Lender Trustee, Indenture Trustee, Depositor,
Administrator, Seller, Issuer and Master Servicer To Join in Enforcement
Action	31

	Section 4.08.	Subrogation	31

ARTICLE V

DEFAULTS; REMEDIES

	Section 5.01.	Defaults	31

	Section 5.02.	Remedies; No Remedy Exclusive	32

	Section 5.03.	Waivers	33

ARTICLE VI

MISCELLANEOUS

	Section 6.01.	Amendments, Etc.	34

	Section 6.02.	Notices	34

	Section 6.03.	Severability	36

	Section 6.04.	Governing Law	36

	Section 6.05.	Consent to Jurisdiction	36

	Section 6.06.	Consent of the Insurer	37

	Section 6.07.	Counterparts	37

	Section 6.08.	Headings	37

			

	Section 6.09.	Trial by Jury Waived	37

	Section 6.10.	Limited Liability	37

	Section 6.11.	Entire Agreement	38

INSURANCE AGREEMENT

          
THIS INSURANCE AGREEMENT (this "Insurance Agreement") dated as of September 1,
2000 by and among Key Bank USA, National Association, in its capacity as
Seller (together with its permitted successors and assigns, the "Seller"),
Key Bank USA, National Association, in its capacity as Master Servicer
(together with its permitted successors and assigns, the "Master Servicer"),
Key Bank ank USA, National Association, in its capacity as Administrator
(together with its permitted successors and assigns, the "Administrator"),
Key Bank USA, National Association, in its capacity as the Depositor
(together with its permitted successors and assigns, the "Depositor"),
KeyCorp Student Loan Trust 2000-B, as Issuer (the "Issuer"), MBIA
Insurance Corporation, in its capacity as Insurer (the "Insurer"), Bank
One, National Association, in its capacity as Eligible Lender Trustee (the
"Eligible Lender Trustee"), and Bankers Trust Company, in its capacity as
Indenture Trustee (the "Indenture Trustee").

          
WHEREAS, the Indenture dated as of September 1, 2000 (the "Indenture"), between
the Issuer and the Indenture Trustee relating to the KeyCorp Student Loan Trust
2000-B, Floating Rate Asset Backed Notes, Class A-1 and A-2 (the "Securities"),
provides for, among other things, the issuance of student loan asset-backed
notes, and the Insurer has issued its note guaranty insurance policy (the
"Policy") that guarantees certain payments due from the Issuer on the
Securities; and

          
WHEREAS, the Insurer shall be paid an insurance premium pursuant to the
Indenture, and the details of such premium are set forth herein; and

          
WHEREAS, the Issuer, the Master Servicer, the Seller, the Administrator and the
Depositor have undertaken certain obligations in consideration for the Insurer's
issuance of the Policy;

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

ARTICLE I

DEFINITIONS

          
The terms defined in this Insurance Agreement shall have the meanings provided
herein for all purposes of this Insurance Agreement, unless the context clearly
requires otherwise, in both singular and plural form, as appropriate. Unless the
context clearly requires otherwise, all capitalized terms used herein and not
otherwise defined in this Insurance Agreement shall have the meanings assigned
to them in the Indenture or the Sale and Servicing Agreement. All words used
herein shall be construed to be of such gender or number as the circumstances
require. This "Insurance Agreement" shall mean this Insurance Agreement as a
whole and as the same may, from time to time hereafter, be amended, supplemented
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Insurance Agreement as
a whole and not to any particular paragraph, clause or other subdivision hereof,
unless otherwise specifically noted.

          
"Administration Agreement" means the Administration Agreement dated as of
September 1, 2000 among the Issuer, the Administrator and the
Indenture Trustee.

          
"Assigned Agreements" shall have the meaning assigned to such term in the
Indenture.

          
"Business Day" means any day other than (i) a Saturday or a Sunday (ii) a
day on which the Insurer is closed or a day on which banking institutions in
New York City or in the city in which the corporate trust office of the
Indenture Trustee under the Indenture is located are authorized or obligated by
law or executive order to close.

          
"Cap Agreement" shall have the meaning assigned to such term in the
Indenture.

          
"Code" means the Internal Revenue Code of 1986, including, unless the
context otherwise requires, the rules and regulations thereunder, as amended
from time to time.

          
"Commission" means the Securities and Exchange Commission.

          
"Commitment" means the letter of commitment from the Insurer to the
Seller dated September 13, 2000.

          
"Coordination Agreements" shall have the meaning assigned to such term in
the Indenture.

          
"Date of Issuance" means the date on which the Policy is issued as
specified therein.

          
"Default" means any event that results, or which with the giving of
notice or the lapse of time or both would result, in an Event of Default.

          
"Eligible Lender Trustee" means Bank One, National Association, a national
banking association, as eligible lender trustee under the Trust Agreement, and
any successor to the Eligible Lender Trustee under the Trust Agreement.

          
"Event of Default" means any event of default specified in Section 5.01
hereof.

          
"Financial Statements" means, with respect to the Master Servicer
and the Seller, the quarterly call reports filed with the OCC.

          
"Fiscal Agent" means the Fiscal Agent, if any, designated pursuant to the
terms of the Policy.

          
"Fitch" means Fitch, Inc., and any successor thereto, and, if such
corporation shall for any reason no longer perform the functions of a securities
rating agency, "Fitch" shall be deemed to refer to any other nationally
recognized rating agency designated by the Insurer.

          
"Guarantee Agreements" shall have the meaning assigned to such term in
the Indenture.

          
"Indemnification Agreement" means the Indemnification Agreement dated as
of September 8, 2000 between the Insurer, the Seller, and the Underwriters, as
the same may be amended or supplemented from time to time in accordance with the
terms thereof.

          
"Indenture" means the Indenture dated as of September 1, 2000 between the
Issuer and the Indenture Trustee as the same may be amended or supplemented from
time to time in accordance with the terms thereof.

          
"Indenture Trustee" means Bankers Trust Company, a New York banking
corporation, as indenture trustee under the Indenture, and any successor to the
Indenture Trustee under the Indenture.

          
"Interest Rate Swap" shall have the meaning assigned to such term in the
Indenture.

          
"Investment Company Act" means the Investment Company Act of 1940,
including, unless the context otherwise requires, the rules and regulations
thereunder, as amended.

          
"Late Payment Rate" means, for any date of determination, the rate of
interest as it is publicly announced by Citibank, N.A. at its principal office
in New York, New York as its prime rate (any change in such prime rate of
interest to be effective on the date such change is announced by Citibank, N.A.)
plus 3%. The Late Payment Rate shall be computed on the basis of a year of 365
days, calculating the actual number of days elapsed. In no event shall the Late
Payment Rate exceed the maximum rate permissible under any applicable law
limiting interest rates.

          
"Liabilities" shall have the meaning ascribed to such term
in Section 3.04(a) hereof.

          
"Losses" means (a) any actual out-of-pocket loss paid by the Insurer or
its respective parents, subsidiaries and affiliates or any shareholder,
director, officer, employee, agent or any "controlling person" (as such term is
used in the Securities Act) of any of the foregoing, and (b) any actual
out-of-pocket costs and expenses paid by such party, including reasonable fees
and expenses of its counsel, to the extent not paid, satisfied or reimbursed
from funds provided by any other Person (provided that the foregoing shall not
create or imply any obligation to pursue recourse against any such other
Person).

          
"Material Adverse Change" means, in respect of any Person, a material
adverse change in (a) the business, financial condition, results of operations
or properties of such Person or (b) the ability of such Person to perform its
obligations under any of the Transaction Documents.

          
"Moody's" means Moody's Investors Service, Inc., a Delaware corporation,
and any successor thereto, and, if such corporation shall for any reason no
longer perform the functions of a securities rating agency, "Moody's" shall be
deemed to refer to any other nationally recognized rating agency designated by
the Insurer.

          
"Obligor" means the original obligor or obligors under each Student Loan,
and any Person who owes payments in respect of such Student Loan, including any
guarantor of such obligor and their respective successors.

          
"Offering Document" means the Prospectus dated September 8, 2000 and the
Prospectus Supplement thereto dated September 8, 2000, of the Seller in respect
of the Securities (and any amendment or supplement thereto) and any other
offering document in respect of the Securities prepared by the Issuer, the
Master Servicer, the Seller or the Depositor that makes reference to the
Policy.

          
"Opinion Facts and Assumptions" means the facts and assumptions contained
in the FDIC opinion and the non-consolidation opinion each dated September 15,
2000 by Thompson Hine & Flory LLP insofar as they relate to the Seller and
the Depositor.

          
"Owners" means registered holders of Securities.

          
"Person" means an individual, joint stock company, trust, unincorporated
association, joint venture, corporation, business or owner trust, limited
liability company, partnership or other organization or entity (whether
governmental or private).

          
"Premium" means the premium payable in accordance with Section 3.02
hereof.

          
"Premium Percentage" shall mean the per annum premium rate set forth in
paragraph 1 of the Commitment.

          
"Sale and Servicing Agreement" means the Sale and Servicing Agreement
dated as of September 1, 2000 by and among the Issuer, the Seller, the Master
Servicer, the Eligible Lender Trustee, and the Administrator.

          
"Securities" means, collectively, the Certificates and the Notes.

          
"Securities Act" means the Securities Act of 1933, including, unless the
context otherwise requires, the rules and regulations thereunder, as amended
from time to time.

          
"Securities Exchange Act" means the Securities Exchange Act of 1934,
including, unless the context otherwise requires, the rules and regulations
thereunder, as amended from time to time.

          
"S&P" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc., and any successor thereto, and, if such corporation
shall for any reason no longer perform the functions of a securities rating
agency, "S&P" shall be deemed to refer to any other nationally recognized
rating agency designated by the Insurer.

          
"Student Loans" shall have the meaning assigned to the term "Financed
Student Loan" in the Indenture.

          
"Sub-Servicer" means, collectively, Pennsylvania Higher Education
Assistance Agency and the Great Lakes Educational Loan Services, Inc. and any
substitute or additional sub-servicers appointed pursuant to the terms of the
Sale and Servicing Agreement.

          
"Sub-Servicing Agreements" means, collectively, the Sub-Servicing
Agreement dated as of September 1, 2000 between the Master Servicer and
Pennsylvania Higher Education Assistance Agency, as Sub-Servicer, as the same
may be amended or supplemented from time to time in accordance with the terms
thereof, the Sub-Servicing Agreement dated as of September 1, 2000 between the
Master Servicer and Great Lakes Educational Loan Services, Inc., as
Sub-Servicer, as the same may be amended or supplemented from time to time in
accordance with the terms thereof, and any substitute or additional
sub-servicing agreements entered into by the Master Servicer pursuant to the
terms of the Sale and Servicing Agreement.

          
"Term of the Insurance Agreement" shall be determined as provided
in Section 4.01 hereof.

          
"Transaction" means the transactions contemplated by the Transaction
Documents, including the transactions described in the Offering Document.

          
"Transaction Documents" means this Insurance Agreement, the Commitment,
the Sale and Servicing Agreement, the Trust Agreement, the Indenture, the
Offering Document, the Securities, the Indemnification Agreement, the
Sub-Servicing Agreements, the Underwriting Agreement, the Coordination
Agreements, the Assigned Agreements, the Guarantee Agreements, the Cap
Agreement, the Interest Rate Swap and Administration Agreement.

          
"Trust Agreement" means the Trust Agreement between the Seller and the
Eligible Lender Trustee dated as of August 3, 2000, as amended and restated by
the Amended and Restated Trust Agreement dated as of September 1, 2000 (as
further amended and supplemented from time to time in accordance with its
terms).

          
"Trust Indenture Act" means the Trust Indenture Act of 1939, including,
unless the context otherwise requires, the rules and regulations thereunder, as
amended from time to time.

          
"Underwriters" means Deutsche Bank Securities Inc. and McDonald
Investments, Inc..

          
"Underwriting Agreement" means the Note Underwriting Agreement between
the Underwriters and the Seller with respect to the offer and sale of the
Securities, as the same may be amended from time to time.

ARTICLE II

REPRESENTATIONS, WARRANTIES AND COVENANTS

          
Section 2.01. Representation and Warranties of the Issuer, the Master
Servicer, the Seller, the Administrator and the Depositor. The Issuer,
the Master Servicer, the Seller, the Administrator and the Depositor represent,
warrant and covenant as of the Date of Issuance, each as to those matters
relating to itself, as follows:

	 	          
(a) Due Organization and Qualification. The Master Servicer, the Seller,
the Administrator and the Depositor are each a national banking association duly
organized, validly existing and in good standing under the laws of the United
States of America. The Issuer is a Delaware business trust, duly organized,
validly existing and in good standing under the laws of its jurisdiction. Each
of the Issuer, the Master Servicer, the Seller, the Administrator and the
Depositor is duly qualified to do business, is in good standing and has obtained
all licenses, permits, charters, registrations and approvals (together,
"approvals") necessary for the conduct of its business as currently conducted
and as described in the Offering Document and the performance of its obligations
under the Transaction Documents in each jurisdiction in which the failure to be
so qualified or to obtain such approvals would render any Transaction Document
unenforceable in any respect or would have a material adverse effect upon the
Transaction, the Owners or the Insurer.

	 	          
(b) Power and Authority. Each of the Issuer, the Master Servicer, the
Seller, the Administrator and the Depositor has all necessary power and
authority corporate or otherwise to conduct its business as currently conducted
and, as described in the Offering Document, to execute, deliver and perform its
obligations under the Transaction Documents and to consummate the Transaction.

	 	          
(c) Due Authorization. The execution, delivery and performance of the
Transaction Documents by the Issuer, the Master Servicer, the Seller, the
Administrator and the Depositor have been duly authorized by all necessary
action, corporate or otherwise, and do not require any additional approvals or
consents of, or other action by or any notice to or filing with, any Person,
including, without limitation, any governmental entity or the Master Servicer's,
the Seller's, the Administrator's or the Depositor's stockholders, which have
not previously been obtained or given by the Master Servicer, the Seller, the
Administrator or the Depositor.

	 	          
(d) Noncontravention. None of the execution and delivery of the
Transaction Documents by the Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor, the consummation of the transactions
contemplated thereby or the satisfaction of the terms and conditions of the
Transaction Documents:

	 	          
(i) conflicts with or results in any breach or violation of any provision of the
articles of association, the Master Servicer, the Seller, the Administrator or
the Depositor or any provision of the Trust Agreement or the Issuer's
Certificate of Trust or any law, rule, regulation, order, writ, judgment,
injunction, decree, determination or award currently in effect having
applicability to the Issuer, the Master Servicer, the Seller, the Administrator
or the Depositor or any of their material properties, including regulations
issued by an administrative agency or other governmental authority having
supervisory powers over the Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor;

	 	          
(ii) constitutes a default by the Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor under or a breach of any provision of any loan
agreement, mortgage, indenture or other agreement or instrument to which the
Issuer, the Master Servicer, the Seller, the Administrator or the Depositor is a
party or by which any of its or their respective properties, which are
individually or in the aggregate material to the Issuer, the Master Servicer,
the Seller, the Administrator or the Depositor, is or may be bound or affected,
which default or breach would reasonably be expected to result in a Material
Adverse Change with respect to the Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor; or

	 	          
(iii) results in or requires the creation of any lien upon or in respect of any
assets of the Issuer, the Master Servicer, the Seller, the Administrator or the
Depositor, except as contemplated by the Transaction Documents.

	 	          
(e) Legal Proceedings. To the Issuer's, the Master Servicer's, the
Seller's, the Administrator's or the Depositor's knowledge after reasonable
inquiry, there is no action, proceeding or investigation by or before any court,
governmental or administrative agency or arbitrator against or affecting the
Issuer, the Master Servicer, the Seller, the Administrator, the Depositor or any
of its or their subsidiaries, or any properties or rights of the Issuer, the
Master Servicer, the Seller, the Administrator, the Depositor or any of its or
their subsidiaries, pending or threatened, which in any case could reasonably be
expected to result in a Material Adverse Change with respect to the Issuer, the
Master Servicer, the Seller, the Administrator or the Depositor.

	 	          
(f) Valid and Binding Obligations. The Securities, when executed,
authenticated and issued in accordance with the Indenture, and the Transaction
Documents (other than the Securities), when executed and delivered by the
Issuer, the Master Servicer, the Seller, the Administrator and the Depositor,
will constitute the legal, valid and binding obligations of the Issuer, the
Master Servicer, the Seller, the Depositor and the Administrator, as applicable,
enforceable in accordance with their respective terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors' rights generally and
general equitable principles and public policy considerations as to rights of
indemnification for violations of federal securities laws. None of the Issuer,
the Master Servicer, the Seller, the Administrator or the Depositor will at any
time in the future deny that the Transaction Documents constitute the legal,
valid and binding obligations of the Issuer, the Master Servicer, the Seller,
the Depositor or the Administrator, as applicable.

	 	          
(g) Financial Statements. The Financial Statements of the Seller and the
Master Servicer, copies of which have been furnished to the Insurer,
(i) are, as of the dates and for the periods referred to therein, complete
and correct in all material respects, and (ii) present fairly the financial
condition and results of operations of the Seller and the Master Servicer as of
the dates and for the periods indicated. Since the date of the most recent
Financial Statements, there has been no Material Adverse Change in respect of
the Master Servicer or the Seller. Except as disclosed in the Financial
Statements, the Master Servicer and the Seller are not subject to any contingent
liabilities or commitments that, individually or in the aggregate, have a
material possibility of causing a Material Adverse Change in respect of the
Master Servicer or the Seller.

	 	          
(h) Compliance With Law, Etc. No practice, procedure or policy employed,
or proposed to be employed, by the Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor in the conduct of its business violates any law,
regulation, judgment, agreement, order or decree applicable to any of them that,
if enforced, could reasonably be expected to result in a Material Adverse Change
with respect to the Issuer, the Master Servicer, the Seller, the Administrator
or the Depositor. None of the Issuer, the Master Servicer, the Seller, the
Administrator and the Depositor are in breach of or in default under any
applicable law or administrative regulation of its respective jurisdiction of
organization, or any department, division, agency or instrumentality thereof or
of the United States or any applicable judgment or decree or any loan agreement,
note, resolution, certificate, agreement or other instrument to which the
Issuer, the Master Servicer, the Seller, the Administrator or the Depositor is a
party or is otherwise subject which, if enforced, would have a material adverse
effect on the ability of the Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor, as the case may be, to perform its respective
obligations under the Transaction Documents.

	 	          
(i) Taxes. The Issuer, the Master Servicer, the Seller, the Administrator
and the Depositor and the Issuer's, the Master Servicer's, the Seller's, the
Administrator's and the Depositor's parent company or companies have filed prior
to the date hereof all federal and state tax returns that are required to be
filed and paid all taxes, including any assessments received by them that are
not being contested in good faith, to the extent that such taxes have become
due, except for any failures to file or pay that, individually or in the
aggregate, would not result in a Material Adverse Change with respect to the
Issuer, the Master Servicer, the Seller, the Administrator or the Depositor.

	 	          
(j) Accuracy of Information. Neither the Transaction Documents nor other
information relating to the Student Loans, the operations of the Issuer, the
Master Servicer, the Seller, the Administrator or the Depositor (including
servicing or origination of loans) or the financial condition of the Issuer, the
Master Servicer, the Seller, the Administrator or the Depositor (collectively,
the "Documents"), as amended, supplemented or superseded, furnished to the
Insurer by the Issuer, the Master Servicer, the Seller, the Administrator or the
Depositor contains any statement of a material fact by the Issuer, the Master
Servicer, the Seller, the Administrator or the Depositor which was untrue or
misleading in any material adverse respect when made. None of the Issuer, the
Master Servicer, the Seller, the Administrator or the Depositor has any
knowledge of circumstances that could reasonably be expected to cause a Material
Adverse Change with respect to the Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor. Since the furnishing of the Documents, there has
been no change or any development or event involving a prospective change known
to the Issuer, the Master Servicer, the Seller, the Administrator or the
Depositor that would render any of the Documents untrue or misleading in any
material respect.

	 	          
(k) Compliance With Securities Laws. The offer and sale of the Securities
comply in all material respects with all requirements of law, including all
registration requirements of applicable securities laws. Without limitation of
the foregoing, the Offering Document does not contain any untrue statement of a
material fact and does not omit to state a material fact necessary to make the
statements made therein, in light of the circumstances under which they were
made, not misleading; provided, however, that no representation is made with
respect to the information in the Offering Document set forth under the heading
"THE SECURITIES GUARANTY INSURANCE POLICY AND THE SECURITIES INSURER" or the
consolidated financial statements of the Insurer incorporated by reference in
the Offering Document. Neither the offer nor the sale of the Securities has been
or will be in violation of the Securities Act or any other federal or state
securities laws. The Issuer is not required to be registered as an "investment
company" under the Investment Company Act.

	 	          
(l) Transaction Documents. Each of the representations and warranties of
the Issuer, the Master Servicer, the Seller, the Administrator and the Depositor
contained in the Transaction Documents is true and correct in all material
respects, and the Issuer, the Master Servicer, the Seller, the Administrator and
the Depositor hereby make each such representation and warranty to, and for the
benefit of, the Insurer as if the same were set forth in full herein.

	 	          
(m) Solvency; Fraudulent Conveyance. The Issuer, the Master Servicer, the
Seller, the Administrator and the Depositor are solvent and will not be rendered
insolvent by the Transaction and, after giving effect to the Transaction, none
of the Issuer, the Master Servicer, the Seller, the Administrator or the
Depositor will be left with an unreasonably small amount of capital with which
to engage in its business, nor does the Issuer, the Master Servicer, the Seller,
the Administrator or the Depositor intend to incur, or believe that it has
incurred, debts beyond its ability to pay as they mature. None of the Issuer,
the Master Servicer, the Seller, the Administrator or the Depositor contemplates
the commencement of insolvency, bankruptcy, liquidation or consolidation
proceedings or the appointment of a receiver, liquidator, conservator, trustee
or similar official in respect of the Issuer, the Master Servicer, the Seller,
the Administrator or the Depositor or any of their assets. The amount of
consideration being received by the Seller upon the sale of the Securities to
the Underwriters constitutes reasonably equivalent value and fair consideration
for the interest in the Student Loans evidenced by the Securities. The Seller is
not transferring the Student Loans to the Issuer, and the Issuer is not selling
the Securities to any Underwriters, as provided in the Transaction Documents,
with any intent to hinder, delay or defraud any of the Seller's or the Issuer's
creditors.

	 	          
(n) Principal Place of Business. The principal place of business of the
Issuer is located in Chicago, Illinois, the principal place of business of the
Master Servicer is located in Cleveland, Ohio, the principal place of business
of the Seller is located in Cleveland, Ohio, the principal place of business of
the Administrator is located in Cleveland, Ohio and the principal place of
business of the Depositor is located in Cleveland, Ohio.

	 	          
(o) Opinion Facts and Assumptions. The Opinion Facts and Assumptions
insofar as they relate to the Seller are true and correct as of the Date of
Issuance.

          
Section 2.02. Affirmative Covenants of the Issuer, the Master Servicer,
the Seller, the Administrator and the Depositor. the Master Servicer,
the Seller, the Administrator and the Depositor hereby agree that during the
Term of the Insurance Agreement, unless the Insurer shall otherwise expressly
consent in writing:

	 	          
(a) Compliance With Agreements and Applicable Laws. The Issuer, the
Master Servicer, the Seller, the Administrator and the Depositor shall not be in
default under the Transaction Documents and shall comply with all material
requirements of any law, rule or regulation applicable to it. None of the
Issuer, the Master Servicer, the Seller, the Administrator or the Depositor
shall agree to any amendment to or modification of the terms of any Transaction
Documents unless the Insurer shall have given its prior written consent.

	 	          
(b) Corporate Existence. Subject to Sections 6.05 and 7.03 of the
Sale and Servicing Agreement, the Master Servicer, its successors and assigns,
the Seller, its successors and assigns, the Administrator, its successors and
assigns, and the Depositor, its successors and assigns, shall maintain their
corporate existence and shall at all times continue to be duly organized under
the laws of their respective jurisdictions of incorporation and duly qualified
and duly authorized (as described in section 2.01(a), (b) and (c) hereof) and
shall conduct its business in accordance with the terms of its articles of
association. The Issuer, and its successors and assigns, shall maintain its
existence as a Delaware business trust and shall at all times continue to be
duly organized under the laws of its jurisdiction and duly qualified and duly
authorized and shall conduct its business in accordance with the terms of its
organizational documents.

	 	          
(c) Financial Statements; Accountants' Reports; Other Information. The
Issuer, the Master Servicer, the Seller, the Administrator and the Depositor
shall keep or cause to be kept in reasonable detail books and records of account
of their assets and business, including, but not limited to, books and records
relating to the Transaction. The Master Servicer and the Seller shall furnish or
cause to be furnished to the Insurer:

	 	          
(i) Quarterly Financial Statements. As soon as available, the Financial
Statements of the Master Servicer and Seller.

	 	          
(ii) [RESERVED]

	 	          
(iii) [RESERVED]

	 	          
(iv) [RESERVED]

	 	          
(v) Other Information. Promptly upon receipt thereof, copies of all
schedules, financial information or other similar reports, and all officer's
certificates and compliance certificates, delivered by the Issuer, the Master
Servicer, the Seller, the Administrator or the Depositor pursuant to the terms
of the Sale and Servicing Agreement or the Indenture and, promptly upon request,
such other data as the Insurer may reasonably request.

	 	          
The Insurer agrees that it and its agents, accountants and attorneys shall keep
confidential all financial statements, reports and other information delivered
by the Issuer, the Master Servicer, the Seller, the Administrator or the
Depositor pursuant to this Section 2.02(c) to the extent provided in Section
2.02(e) hereof.

	 	          
(d) Compliance Certificate. The Master Servicer and the Administrator
shall deliver to the Insurer all officer's certificates and reports required to
be delivered under Sections 4.09 and 4.10 of the Sale and Servicing Agreement.

	 	          
(e) Access to Records; Discussions With Officers and Accountants. On an
annual basis, or upon the occurrence of a Material Adverse Change, the Master
Servicer, the Administrator, the Depositor and the Seller shall, upon the
reasonable request of the Insurer, permit the Insurer or its authorized agents:

	 	          
(i) to inspect the books and records of the Master Servicer, the Administrator,
the Depositor and of the Seller as they may relate to the Securities, the
obligations of the Master Servicer, the Administrator, the Depositor or of the
Seller under the Transaction Documents, and the Transaction;

	 	          
(ii) to discuss the affairs, finances and accounts of the Master Servicer, the
Administrator, the Depositor or of the Seller with the appropriate
representatives of the Master Servicer, the Administrator, the Depositor or of
the Seller, as the case may be; and

	 	          
(iii) with the Master Servicer's, the Administrator's, the Depositor's or the
Seller's consent, as applicable, which consent shall not be unreasonably
withheld, to discuss the affairs, finances and accounts of the Master Servicer,
the Administrator, the Depositor or the Seller with the Master Servicer's, the
Administrator's, the Depositor's or the Seller's independent accountants,
provided that an officer of the Master Servicer, the Administrator, the
Depositor or the Seller shall have the right to be present during such
discussions.

	 	          
Such inspections and discussions shall be conducted during normal business hours
and shall not unreasonably disrupt the business of the Master Servicer, the
Administrator, the Depositor or the Seller. The books and records of the Master
Servicer, the Seller, the Administrator and the Depositor shall be maintained at
the respective address of such party designated herein for receipt of notices,
unless such party shall otherwise advise the parties hereto in writing.

	 	          
The Insurer agrees that it and its shareholders, directors, agents, accountants
and attorneys shall keep confidential any matter of which it becomes aware
through such inspections or discussions (unless readily available from public
sources), except as may be otherwise required by regulation, law or court order
or requested by appropriate governmental authorities or as necessary to preserve
its rights or security under or to enforce the Transaction Documents, provided
that the foregoing shall not limit the right of the Insurer to make such
information available to its regulators, securities rating agencies, reinsurers,
credit and liquidity providers, counsel and accountants.

	 	          
(f) Notice of Material Events. The Issuer, the Master Servicer, the
Seller, the Administrator and the Depositor shall be obligated (which obligation
shall be satisfied as to each if performed by the Issuer, the Master Servicer,
the Seller, the Administrator or the Depositor) promptly to inform the Insurer
in writing of the occurrence of any of the following to the extent any of the
following relate to it:

	 	          
(i) the submission of any claim or the initiation or threat of any legal
process, litigation or administrative or judicial investigation or rule making
or disciplinary proceeding by or against the Issuer, the Master Servicer, the
Seller, the Administrator or the Depositor that (A) could reasonably be
expected to be required to be disclosed to the Commission or (B) could
reasonably be expected to result in a Material Adverse Change with respect to
the Issuer, the Master Servicer, the Seller, the Administrator or the Depositor,
or the promulgation of any proceeding or any proposed or final rule which would
result in a Material Adverse Change with respect to the Issuer, the Master
Servicer, the Seller, the Administrator or the Depositor;

	 	          
(ii) the submission of any claim or the initiation or threat of any legal
process, litigation or administrative or judicial investigation in any federal,
state or local court or before any arbitration board, or any such proceeding
threatened by any government agency, which, would have a material adverse effect
on the Issuer, the Owners or the Insurer;

	 	          
(iii) any change in the location of the Issuer's, the Master Servicer's, the
Seller's, the Administrator's or the Depositor's principal office or any change
in the location of the Issuer's, the Master Servicer's, the Seller's, the
Administrator's or the Depositor's books and records;

	 	          
(iv) the occurrence of any Default or Event of Default or of any Material
Adverse Change;

	 	          
(v) the commencement of any proceedings by or against the Issuer, the Master
Servicer, the Seller, the Administrator or the Depositor under any applicable
bankruptcy, reorganization, liquidation, rehabilitation, insolvency or other
similar law now or hereafter in effect or of any proceeding in which a receiver,
liquidator, conservator, trustee or similar official shall have been, or may be,
appointed or requested for the Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor or any of its or their assets; or

	 	          
(vi) the receipt of notice that (A) the Issuer, the Master Servicer, the Seller,
the Administrator or the Depositor is being placed under additional regulatory
supervision, and such additional regulatory supervision may result in a Material
Adverse Change with respect to the Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor, (B) any license, permit, charter, registration
or approval material for the conduct of the Issuer, the Master Servicer's, the
Seller's, the Administrator's or the Depositor's business is to be or may be
suspended or revoked, or (C) the Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor is to cease and desist any practice, procedure or
policy employed by the Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor in the conduct of its business, and such
cessation may result in a Material Adverse Change with respect to the Issuer,
the Master Servicer, the Seller, the Administrator or the Depositor.

	 	          
(g) Financing Statements and Further Assurances. The Master Servicer will
cause to be filed all necessary financing statements or other instruments, and
any amendments or continuation statements relating thereto, necessary to be kept
and filed in such manner and in such places as may be required by law to
preserve and protect fully the interest of the Indenture Trustee in the Trust
Estate. The Issuer, the Master Servicer, the Seller, the Administrator and the
Depositor shall, upon the request of the Insurer, from time to time, execute,
acknowledge and deliver, or cause to be executed, acknowledged and delivered,
within 10 days of such request, such amendments hereto and such further
instruments and take such further action as may be reasonably necessary to
effectuate the intention, performance and provisions of the Transaction
Documents. In addition, each of the Issuer, the Master Servicer, the Seller, the
Administrator and the Depositor agrees to cooperate with S&P, Fitch and
Moody's in connection with any review of the Transaction that may be undertaken
by S&P, Fitch or Moody's after the date hereof and to provide all
information reasonably requested by S&P, Fitch or Moody's.

	 	          
(h) Maintenance of Licenses. The Issuer, the Master Servicer, the Seller,
the Administrator and the Depositor, respectively, or any successors thereof
shall maintain or cause to be maintained all licenses, permits, charters and
registrations which are material to the conduct of its business.

	 	          
(i) Redemption of Securities. The Issuer, the Master Servicer, the
Seller, the Administrator and the Depositor shall instruct the Indenture
Trustee, upon redemption or payment of all of the Securities pursuant to the
Indenture or otherwise, to furnish to the Insurer a notice of such redemption
and, upon a redemption or payment of all of the Securities, to surrender the
Policy to the Insurer for cancellation.

	 	          
(j) Disclosure Document. Each Offering Document delivered with respect to
the Securities shall clearly disclose that the Policy is not covered by the
property/casualty insurance security fund specified in Article 76 of the New
York Insurance Law.

	 	          
(k) Servicing of Student Loans. The Master Servicer shall perform such
actions with respect to the Student Loans as are required by or provided in the
Sale and Servicing Agreement. The Master Servicer will provide the Insurer with
written notice of any change or amendment to any Transaction Document as
currently in effect.

	 	          
(l) Maintenance of Trust. On or before each April 30, beginning in 2001,
so long as any of the Securities are outstanding, the Master Servicer shall
furnish to the Insurer and the Indenture Trustee the legal opinion required
under Section 11.02(i)(2) of the Sale and Servicing Agreement. The Master
Servicer will use its best efforts to cause any necessary recordings or filings
to maintain the interest of the Indenture Trustee in the Trust Estate.

	 	          
(m) Closing Documents. The Master Servicer, the Seller and the
Administrator shall provide or cause to be provided to the Insurer a closing
transcript containing an executed original copy of each document executed in
connection with the Transaction within 60 days after the date of closing. Upon
the request of the Insurer, the Master Servicer, the Seller and the
Administrator shall provide or cause to be provided to the Insurer a copy of
each of the Transaction Documents on computer diskette, in a format acceptable
to the Insurer.

	 	          
(n) Preference Payments. With respect to any Preference Amount (as
defined in the Policy), the Master Servicer shall provide to the Insurer upon
the request of the Insurer:

	 	          
(i) a certified copy of the final nonappealable order of a court having
competent jurisdiction ordering the recovery by a trustee in bankruptcy as
voidable preference amounts included in previous distributions under
Section 5.04(a), 5.04(b) or 8.02(c) of the Indenture to any Owner
pursuant to the United States Bankruptcy Code, 11 U.S.C.
§§ 101 et seq., as amended (the "Bankruptcy Code");

	 	          
(ii) an opinion of counsel satisfactory to the Insurer, and upon which the
Insurer shall be entitled to rely, stating that such order is final and is not
subject to appeal;

	 	          
(iii) an assignment in such form as reasonably required by the Insurer,
irrevocably assigning to the Insurer all rights and claims of the Master
Servicer, the Indenture Trustee and any Owner relating to or arising under the
Student Loan against the debtor which made such preference payment or otherwise
with respect to such preference amount; and

	 	          
(iv) appropriate instruments to effect (when executed by the affected party) the
appointment of the Insurer as agent for the Indenture Trustee and any Owner in
any legal proceeding relating to such preference payment being in a form
satisfactory to the Insurer.

          
Section 2.03. Negative Covenants of the Issuer, the Master Servicer, the
Seller, the Administrator and the Depositor. The Issuer, the Master
Servicer, the Seller the Administrator and the Depositor hereby agree that
during the Term of the Insurance Agreement, unless the Insurer shall otherwise
expressly consent in writing:

	 	          
(a) Impairment of Rights. None of the Issuer, the Master Servicer, the
Seller, the Administrator or the Depositor shall take any action, or fail to
take any action, if such action or failure to take action may result in a
material adverse change as described in clause (ii) of the definition of
Material Adverse Change with respect to the Issuer, the Master Servicer, the
Seller, the Administrator or the Depositor, or may interfere with the
enforcement of any rights of the Insurer under or with respect to the
Transaction Documents. The Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor shall give the Insurer written notice of any such
action or failure to act on the earlier of (i) the date upon which any
publicly available filing or release is made with respect to such action or
failure to act or (ii) promptly prior to the date of consummation of such
action or failure to act. The Issuer, the Master Servicer, the Seller, the
Administrator and the Depositor shall furnish to the Insurer all information
requested by it that is reasonably necessary to determine compliance with this
Section (a).

	 	          
(b) Adverse Selection Procedure. The Master Servicer and the Seller shall
not use any adverse selection procedure in selecting Student Loans to be
transferred to the Eligible Lender Trustee from the outstanding Student Loans
that qualify under the Trust Agreement for inclusion in the Trust Estate.

	 	          
(c) Waiver, Amendments, Etc. None of the Issuer, the Master Servicer, the
Seller, the Administrator or the Depositor shall waive, modify or amend, or
consent to any waiver, modification or amendment of, any of the terms,
provisions or conditions of any of the Transaction Documents without the prior
written consent of the Insurer.

	 	          
(d) Student Loan Agreements; Charge-off Policy. Except as otherwise
permitted in the Sale and Servicing Agreement, the Issuer, the Master Servicer
and the Seller and the Depositor shall not alter or amend any Student Loan,
their respective collection policies or their respective charge-off policies in
a manner that materially adversely affects the Insurer unless the Insurer shall
have previously given its consent, which consent shall not be withheld
unreasonably.

          
Section 2.04. Representations, Warranties and Covenants of Eligible Lender
Trustee. The Eligible Lender Trustee represents and warrants to, as of
the Date of Issuance, and covenants with the other parties hereto as
follows:

	 	          
(a) Due Organization and Qualification. The Eligible Lender Trustee is a
national banking association duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation. The Eligible
Lender Trustee is duly qualified to do business, is in good standing and has
obtained all licenses, permits, charters, registrations and approvals (together,
"approvals") necessary for the conduct of its business as currently conducted
and as described in the Offering Document and the performance of its obligations
under the Transaction Documents in each jurisdiction in which the failure to be
so qualified or to obtain such approvals would render any Transaction Document
unenforceable in any respect or would have a material adverse effect upon the
Transaction, the Owners or the Insurer.

	 	          
(b) Due Authorization. The execution, delivery and performance of the
Transaction Documents by the Eligible Lender Trustee have been duly authorized
by all necessary corporate action and do not require any additional approvals or
consents of, or other action by or any notice to or filing with, any Person,
including, without limitation, any governmental entity or the Eligible Lender
Trustee's stockholders, which have not previously been obtained or given by the
Eligible Lender Trustee, as applicable.

	 	          
(c) Noncontravention. None of the execution and delivery of the
Transaction Documents by the Eligible Lender Trustee, the consummation of the
transactions contemplated thereby or the satisfaction of the terms and
conditions of the Transaction Documents:

	 	          
(i) conflicts with or results in any breach or violation of any provision of the
certificate or articles of incorporation or bylaws of the Eligible Lender
Trustee or any law, rule, regulation, order, writ, judgment, injunction, decree,
determination or award currently in effect having applicability to the Eligible
Lender Trustee or any of its material properties, including regulations issued
by an administrative agency or other governmental authority having supervisory
powers over the Eligible Lender Trustee;

	 	          
(ii) constitutes a default by the Eligible Lender Trustee under or a breach of
any provision of any loan agreement, mortgage, indenture or other agreement or
instrument to which the Eligible Lender Trustee is a party or by which any of
its properties, which are individually or in the aggregate material to the
Eligible Lender Trustee, is or may be bound or affected; or

	 	          
(iii) results in or requires the creation of any lien upon or in respect of any
assets of the Eligible Lender Trustee, except as contemplated by the Transaction
Documents.

	 	          
(d) Legal Proceedings. There is no action, proceeding or investigation by
or before any court, governmental or administrative agency or arbitrator against
or affecting the Eligible Lender Trustee or any of its subsidiaries, or any
properties or rights of the Eligible Lender Trustee or any of its subsidiaries,
pending or, to the Eligible Lender Trustee's knowledge after reasonable inquiry,
threatened, which in any case could reasonably be expected to result in a
Material Adverse Change with respect to the Eligible Lender Trustee.

	 	          
(e) Valid and Binding Obligations. The Transaction Documents to which it
is a party, when executed and delivered by the Eligible Lender Trustee, will
constitute the legal, valid and binding obligations of the Eligible Lender
Trustee, enforceable in accordance with their respective terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors' rights generally and
general equitable principles. The Eligible Lender Trustee will not at any time
in the future deny that the Transaction Documents constitute the legal, valid
and binding obligations of the Eligible Lender Trustee, as applicable.

	 	          
(f) Compliance With Law, Etc. No practice, procedure or policy employed,
or proposed to be employed, by the Eligible Lender Trustee in the conduct of its
business violates any law, regulation, judgment, agreement, order or decree
applicable to the Eligible Lender Trustee that, if enforced, could reasonably be
expected to result in a Material Adverse Change with respect to the Eligible
Lender Trustee. The Eligible Lender Trustee is neither in breach of nor in
default under any applicable law or administrative regulation of its respective
jurisdiction of organization, or any department, division, agency or
instrumentality thereof or of the United States or any applicable judgment or
decree or any loan agreement, note, resolution, certificate, agreement or other
instrument to which the Eligible Lender Trustee is a party or is otherwise
subject which, if enforced, would have a material adverse effect on the ability
of the Eligible Lender Trustee, as the case may be, to perform its respective
obligations under the Transaction Documents.

	 	          
(g) Transaction Documents. Each of the representations and warranties of
the Eligible Lender Trustee contained in the Transaction Documents is true and
correct in all material respects, and the Eligible Lender Trustee hereby makes
each such representation and warranty to, and for the benefit of, the Insurer as
if the same were set forth in full herein.

	 	          
(h) Compliance and Amendments. The Eligible Lender Trustee shall comply
in all material respects with the terms and conditions of the Transaction
Documents to which it is a party and the Eligible Lender Trustee shall not agree
to any amendment to or modification of the terms of any of the Transaction
Documents to which it is a party unless the Insurer shall otherwise give its
prior written consent.

          
Section 2.05. Representations, Warranties and Covenants of Indenture
Trustee. The Indenture Trustee represents and warrants to, as of the
Date of Issuance, and covenants with the other parties hereto as follows:

	 	          
(a) Due Organization and Qualification. The Indenture Trustee is a New
York banking corporation duly organized, validly existing and in good standing
under the laws of its jurisdiction of incorporation. The Indenture Trustee is
duly qualified to do business, is in good standing and has obtained all
licenses, permits, charters, registrations and approvals (together, "approvals")
necessary for the conduct of its business as currently conducted and as
described in the Offering Document and the performance of its obligations under
the Transaction Documents in each jurisdiction in which the failure to be so
qualified or to obtain such approvals would render any Transaction Document
unenforceable in any respect or would have a material adverse effect upon the
Transaction, the Owners or the Insurer.

	 	          
(b) Due Authorization. The execution, delivery and performance of the
Transaction Documents by the Indenture Trustee have been duly authorized by all
necessary corporate action and do not require any additional approvals or
consents of, or other action by or any notice to or filing with, any Person,
including, without limitation, any governmental entity or the Indenture
Trustee's stockholders, which have not previously been obtained or given by the
Indenture Trustee, as applicable.

	 	          
(c) [RESERVED]

	 	          
(d) [RESERVED]

	 	          
(e) Valid and Binding Obligations. The Securities, when executed,
authenticated and issued in accordance with the Indenture, and the Transaction
Documents (other than the Securities) to which it is a party, when executed and
delivered by the Indenture Trustee, will constitute the legal, valid and binding
obligations of the Indenture Trustee, enforceable in accordance with their
respective terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting
creditors' rights generally and general equitable principles. The Indenture
Trustee will not at any time in the future deny that the Transaction Documents
constitute the legal, valid and binding obligations of the Indenture Trustee, as
applicable.

	 	          
(f) Compliance With Law, Etc. No authorization, consent or approval of or
filing or registration with any court or governmental department, commission,
board, bureau, agency or instrumentality, domestic or foreign, is or will be
necessary for the execution and delivery of the Indenture Trustee of this
Insurance Agreement or for the performance by the Indenture Trustee of its
obligations hereunder. Neither the execution and delivery of this Insurance
Agreement nor the consummation of any of the transactions contemplated by this
Insurance Agreement shall constitute or result in a violation of any of New York
or Federal law, rule or regulation applicable to the Indenture Trustee.

	 	          
(g) Transaction Documents. Each of the representations and warranties of
the Indenture Trustee contained in the Transaction Documents is true and correct
in all material respects, and the Indenture Trustee hereby makes each such
representation and warranty to, and for the benefit of, the Insurer as if the
same were set forth in full herein.

	 	          
(h) Compliance and Amendments. The Indenture Trustee shall comply in all
material respects with the terms and conditions of the Transaction Documents to
which it is a party and the Indenture Trustee shall not agree to any amendment
to or modification of the terms of any of the Transaction Documents to which it
is a party unless the Insurer shall otherwise give its prior written consent.

ARTICLE III

THE POLICY; REIMBURSEMENT

          
Section 3.01. Issuance of the Policy. The Insurer agrees to issue
the Policy on the Closing Date subject to satisfaction of the conditions
precedent set forth below:

	 	          
(a) Payment of Initial Premium and Expenses. The Insurer shall have been
paid, by the Issuer, the Master Servicer, the Seller and the Depositor, that
portion of a nonrefundable Premium payable on the Date of Issuance, and the
Master Servicer shall agree to reimburse or pay directly other fees and expenses
identified in Section 3.02 hereof as payable.

	 	          
(b) Transaction Documents. The Insurer shall have received a fully
executed copy of the Commitment and a copy of each of the Transaction Documents,
in form and substance satisfactory to the Insurer, duly authorized, executed and
delivered by each party thereto.

	 	          
(c) Certified Documents and Resolutions. The Insurer shall have received
a copy of (i) the articles of association and bylaws of the Master Servicer, the
Seller, the Administrator and the Depositor (ii) the resolutions of the Seller's
Board of Directors authorizing the sale of the Student Loans and (iii) the
execution, delivery and performance by the Master Servicer, the Seller, the
Administrator and the Depositor of the Transaction Documents and the
transactions contemplated thereby, certified by the Secretary or an Assistant
Secretary of the Master Servicer, the Seller, the Administrator and the
Depositor (which certificate shall state that such certificate or articles of
incorporation, bylaws and resolutions are in full force and effect without
modification on the Date of Issuance).

	 	          
(d) Incumbency Certificate. The Insurer shall have received a certificate
of the Secretary or an Assistant Secretary of the Master Servicer, the Seller
and the Depositor regarding the authority of the officers of the Master
Servicer, the Seller, the Administrator and the Depositor to execute and deliver
the Transaction Documents.

	 	          
(e) The Certificate of Trust of the Issuer. The Insurer shall have
received a copy of the Certificate of Trust of the Issuer.

	 	          
(f) Representations and Warranties; Certificate. The representations and
warranties of the Issuer, the Master Servicer, the Seller, the Administrator and
the Depositor set forth or incorporated by reference in this Insurance Agreement
shall be true and correct as of the Date of Issuance as if made on the Date of
Issuance, and the Insurer shall have received a certificate of appropriate
officers of the Issuer, the Master Servicer, the Seller, the Administrator and
the Depositor to that effect.

	 	          
(g) Opinions of Counsel.

	 	          
(i) The law firm of Thompson Hine & Flory LLP shall have issued its
favorable opinion, in form and substance acceptable to the Insurer and its
counsel, regarding the corporate existence and authority of the Master Servicer,
the Seller, the Administrator and the Depositor and the validity and
enforceability of the Transaction Documents against such parties.

	 	          
(ii) The law firm of Thompson Hine & Flory LLP shall have furnished its
opinions, in form and substance acceptable to the Insurer and its counsel,
regarding the sale of the Student Loans and the tax treatment of payments on the
Securities under federal tax laws.

	 	          
(iii) The Insurer shall have received such other opinions of counsel, in form
and substance acceptable to the Insurer and its counsel, addressing such other
matters as the Insurer may reasonably request. Each opinion of counsel delivered
in connection with the Transaction shall be addressed to and delivered to the
Insurer.

	 	          
(h) Approvals, Etc. The Insurer shall have received true and correct
copies of all approvals, licenses and consents, if any, including, without
limitation, any required approval of the shareholders of the Master Servicer,
the Seller, the Administrator and the Depositor, required in connection with the
Transaction.

	 	          
(i) No Litigation, Etc. No suit, action or other proceeding,
investigation or injunction, or final judgment relating thereto, shall be
pending or threatened before any court or governmental agency in which it is
sought to restrain or prohibit or to obtain damages or other relief in
connection with the Transaction Documents or the consummation of the
Transaction.

	 	          
(j) Legality. No statute, rule, regulation or order shall have been
enacted, entered or deemed applicable by any government or governmental or
administrative agency or court that would make the transactions contemplated by
any of the Transaction Documents illegal or otherwise prevent the consummation
thereof.

	 	          
(k) Issuance of Ratings. The Insurer shall have received confirmation
that the risk secured by the Policy constitutes at least an investment grade
risk by S&P, Fitch and Moody's and that the Securities, when issued, will be
rated "AAA" by S&P, Fitch and "Aaa" by Moody's.

	 	          
(l) No Default. No Default or Event of Default shall have occurred.

	 	          
(m) Additional Items. The Insurer shall have received such other
documents, instruments, approvals or opinions requested by the Insurer or its
counsel as may be reasonably necessary to effect the Transaction, including, but
not limited to, evidence satisfactory to the Insurer and its counsel that the
conditions precedent, if any, in the Transaction Documents have been satisfied.

	 	          
(n) Conform to Documents. The Insurer and its counsel shall have
determined that all documents, certificates and opinions to be delivered in
connection with the Securities conform to the terms of the Transaction
Documents.

	 	          
(o) Compliance With Commitment. All other terms, conditions and
requirements of the Commitment shall have been satisfied.

	 	          
(p) Satisfaction of Conditions of the Underwriting Agreement. All
conditions in the Underwriting Agreement relating to the Underwriters'
obligation to purchase the Securities shall have been satisfied.

	 	          
(q) Underwriting Agreement. The Insurer shall have received copies of
each of the documents, and shall be entitled to rely on each of the documents,
required to be delivered to the Underwriters pursuant to the Underwriting
Agreement.

          
Section 3.02. Payment of Fees and Premium.

	 	          
(a) Legal and Accounting Fees. The Master Servicer, the Seller and the
Depositor shall pay or cause to be paid, on the Date of Issuance, legal fees and
disbursements incurred by the Insurer in connection with the issuance of the
Policy and any fees of the Insurer's auditors in accordance with the terms of
the Commitment. Any fees of the Insurer's auditors payable in respect of any
amendment or supplement to the Offering Document or any other Offering Document
incurred after the Date of Issuance shall be paid by the Master Servicer, the
Seller and the Depositor on demand.

	 	          
(b) Premium. In consideration of the issuance by the Insurer of the
Policy, the Insurer shall be entitled to receive the Premium as and when due in
accordance with the terms of the Commitment (i) in the case of Premium due on or
before the Date of Issuance, directly from the Issuer and (ii) in the case of
Premium due after the Date of Issuance, pursuant to the Indenture. For purposes
of the Indenture and the Sale and Servicing Agreement, the term "Premium
Percentage" shall have the meaning set forth in Article I hereof. The Premium
shall be calculated according to paragraph 1 of the Commitment for the
amount due on or before the Date of Issuance for the amount due on each
Distribution Date. The Premium paid hereunder or under the Indenture shall be
nonrefundable without regard to whether the Insurer makes any payment under the
Policy or any other circumstances relating to the Securities or provision being
made for payment of the Securities prior to maturity. The Master Servicer, the
Seller, the Depositor, and the Indenture Trustee shall make all payments of
Premium to be made by them by wire transfer to an account designated from time
to time by the Insurer by written notice to the Master Servicer, the Seller, the
Depositor, and the Indenture Trustee.

          
Section 3.03. Reimbursement and Additional Payment Obligation.

	 	          
(a) In accordance with Section 5.04 of the Indenture or Section 5.05 of the Sale
and Servicing Agreement, the Insurer shall be entitled to reimbursement for any
payment made by the Insurer under the Policy, which reimbursement shall be due
and payable on the date that any amount is to be paid pursuant to a Notice (as
defined in the Policy), in an amount equal to the amount to be so paid and all
amounts previously paid that remain unreimbursed, together with interest on any
and all amounts remaining unreimbursed (to the extent permitted by law, if in
respect of any unreimbursed amounts representing interest) from the date such
amounts became due until paid in full (after as well as before judgment), at a
rate of interest equal to the Late Payment Rate.

	 	          
(b) Notwithstanding anything in Section 3.03(a) to the contrary, the Master
Servicer and the Seller agree to reimburse the Insurer as follows: (i) from the
Seller, for payments made under the Policy arising as a result of the Seller's
failure to repurchase any Student Loan required to be repurchased pursuant to
the Sale and Servicing Agreement, together with interest on any and all amounts
remaining unreimbursed (to the extent permitted by law, if in respect of any
unreimbursed amounts representing interest) from the date such amounts became
due until paid in full (after as well as before judgment), at a rate of interest
equal to the Late Payment Rate, and (ii) from the Master Servicer, for payments
made under the Policy, arising as a result of (A) the Master Servicer's failure
to deposit into the Collection Account any amount required to be so deposited
pursuant to the Sale and Servicing Agreement or (B) the Master Servicer's
failure to repurchase any Student Loan required to be repurchased under the Sale
and Servicing Agreement, together with interest on any and all amounts remaining
unreimbursed (to the extent permitted by law, if in respect to any unreimbursed
amounts representing interest) from the date such amounts became due until paid
in full (after as well as before judgment), at a rate of interest equal to the
Late Payment Rate.

	 	          
(c) The Master Servicer and the Seller agree to pay to the Insurer as follows:
any and all charges, fees, costs and expenses that the Insurer may reasonably
pay or incur, including, but not limited to, attorneys' and accountants' fees
and expenses, in connection with (i) any accounts established to facilitate
payments under the Policy to the extent the Insurer has not been immediately
reimbursed on the date that any amount is paid by the Insurer under the Policy,
(ii) the enforcement, defense or preservation of any rights in respect of any of
the Transaction Documents, including defending, monitoring or participating in
any litigation or proceeding (including any insolvency or bankruptcy proceeding
in respect of any Transaction participant or any affiliate thereof) relating to
any of the Transaction Documents, any party to any of the Transaction Documents,
in its capacity as such a party, or the Transaction, (iii) any amendment, waiver
or other action with respect to, or related to, any Transaction Document,
whether or not executed or completed, or (iv) preparation of a closing
transcript of the Transaction documents; costs and expenses shall include a
reasonable allocation of compensation and overhead attributable to the time of
employees of the Insurer spent in connection with the actions described in
clause (ii) above, and the Insurer reserves the right to charge a reasonable fee
as a condition to executing any waiver or consent proposed in respect of any of
the Transaction Documents.

	 	          
(d) The Master Servicer, the Seller and the Depositor agree to pay to the
Insurer as follows: interest on any and all amounts described in subsections
(b), (c), (e) and (f) of this Section 3.03 from the date payable or paid by such
party until payment thereof in full, and interest on any and all amounts
described in Section 3.02 hereof from the date due until payment thereof in
full, in each case payable to the Insurer at the Late Payment Rate per annum.

	 	          
(e) The Master Servicer and the Seller agree to pay to the Insurer as follows:
any payments made by the Insurer on behalf of, or advanced to, the Issuer, the
Master Servicer, the Seller, the Administrator or the Depositor, respectively,
including, without limitation, any amounts payable by the Issuer, the Master
Servicer, the Seller, the Administrator or the Depositor pursuant to the
Securities or any other Transaction Documents.

	 	          
(f) Following termination of the Indenture after the Master Servicer exercises
its option under Section 9.01(a) of the Sale and Servicing Agreement, the Master
Servicer agrees to reimburse the Insurer for any Insured Payments required to be
made pursuant to the Policy subsequent to the date of such termination.

	 	          
All such amounts are to be immediately due and payable without demand.

          
Section 3.04. Indemnification; Limitation of Liability.

	 	          
(a) In addition to any and all rights of indemnification or any other rights of
the Insurer pursuant hereto or under law or equity, the Depositor, the Seller,
the Master Servicer and any successors thereto agree to pay, and to protect,
indemnify and save harmless, the Insurer and its officers, directors,
shareholders, employees, agents and each person, if any, who controls the
Insurer within the meaning of either Section 15 of the Securities Act or Section
20 of the Securities Exchange Act from and against any and all claims, Losses,
liabilities (including penalties), actions, suits, judgments, demands, damages,
costs or reasonable expenses (including, without limitation, reasonable fees and
expenses of attorneys, consultants and auditors and reasonable costs of
investigations) or obligations whatsoever paid by the Insurer (herein
collectively referred to as "Liabilities") of any nature arising out of or
relating to the transactions contemplated by the Transaction Documents by reason
of:

	 	          
(i) any untrue statement or alleged untrue statement of a material fact
contained in the Offering Document or in any amendment or supplement thereto or
in any preliminary offering document, or arising out of or based upon any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading,
except insofar as such Liabilities arise out of or are based upon any such
untrue statement or omission or allegation thereof based upon information set
forth in the Offering Document under the caption "THE SECURITIES GUARANTY
INSURANCE POLICY AND THE SECURITIES INSURER," or in the financial statements of
the Insurer, including any information in any amendment or supplement to the
Offering Document furnished by the Insurer in writing expressly for use therein
that amends or supplements such information (all such information being referred
to herein as "Insurer Information");

	 	          
(ii) to the extent not covered by clause (i) above, any act or omission of the
Seller, the Master Servicer or the Depositor, or the allegation thereof, in
connection with the offering, issuance, sale or delivery of the Securities other
than by reason of false or misleading information provided by the Insurer in
writing for inclusion in the Offering Document as specified in clause (i) above;

	 	          
(iii) the misfeasance or malfeasance of, or negligence or theft committed by,
any director, officer, employee or agent of the Master Servicer, the Seller or
the Depositor;

	 	          
(iv) the violation by the Depositor, the Seller or the Master Servicer of any
federal or state securities, banking or antitrust laws, rules or regulations in
connection with the issuance, offer and sale of the Securities or the
transactions contemplated by the Transaction Documents;

	 	          
(v) the violation by the Depositor, the Seller or the Master Servicer of any
federal or state laws, rules or regulations relating to the Transaction,
including without limitation the maximum amount of interest permitted to be
received on account of any loan of money or with respect to the Student Loans;

	 	          
(vi) the breach by the Depositor, the Seller or the Master Servicer of any of
its obligations under this Insurance Agreement or any of the other Transaction
Documents; and

	 	          
(vii) the breach by the Master Servicer, the Seller or the Depositor of any
representation or warranty on the part of the Master Servicer, the Seller or the
Depositor contained in the Transaction Documents or in any certificate or report
furnished or delivered to the Insurer thereunder.

	 	          
This indemnity provision shall survive the termination of this Insurance
Agreement and shall survive until the statute of limitations has run on any
causes of action which arise from one of these reasons and until all suits filed
as a result thereof have been finally concluded.

	 	          
(b) The Seller agrees to indemnify the Indenture Trustee and the Insurer for any
and all Liabilities incurred by the Issuer and the Insurer due to any claim,
counterclaim, rescission, setoff or defense asserted by an Obligor under any
Student Loan subject to the Federal Trade Commission regulations provided in 16
C.F.R. Part 433.

	 	          
(c) Any party which proposes to assert the right to be indemnified under this
Section 3.04 will, promptly after receipt of notice of commencement of any
action, suit or proceeding against such party in respect of which a claim is to
be made against the Master Servicer, the Seller or the Depositor under this
Section 3.04, notify the Master Servicer, the Seller or the Depositor of the
commencement of such action, suit or proceeding, enclosing a copy of all papers
served. In case any action, suit or proceeding shall be brought against any
indemnified party and it shall notify the Master Servicer, the Seller or the
Depositor of the commencement thereof, the Master Servicer, the Seller or the
Depositor shall be entitled to participate in, and, to the extent that it shall
wish, to assume the defense thereof, with counsel satisfactory to such
indemnified party, and after notice from the Master Servicer, the Seller or the
Depositor to such indemnified party of its election so to assume the defense
thereof, the Master Servicer, the Seller or the Depositor shall not be liable to
such indemnified party for any legal or other expenses other than reasonable
costs of investigation subsequently incurred by such indemnified party in
connection with the defense thereof. The indemnified party shall have the right
to employ its counsel in any such action the defense of which is assumed by the
Master Servicer, the Seller or the Depositor in accordance with the terms of
this subsection (c), but the fees and expenses of such counsel shall be at the
expense of such indemnified party unless the employment of counsel by such
indemnified party has been authorized by the Issuer, the Master Servicer, the
Seller or the Depositor. The Master Servicer, the Seller or the Depositor shall
not be liable for any settlement of any action or claim effected without its
consent.

	 	          
(d) In addition to any and all rights of indemnification or any other rights of
the Insurer pursuant hereto or under law or equity, the Eligible Lender Trustee
agrees to pay, and to protect, indemnify and save harmless, the Insurer and its
officers, directors, shareholders, employees, agents, including each person, if
any, who controls the Insurer within the meaning of either Section 15 of the
Securities Act of 1933, as amended, or Section 20 of the Securities and Exchange
Act of 1934, as amended, from and against any and all claims, losses,
liabilities (including penalties), actions, suits, judgments, demands, damages,
costs or reasonable expenses (including, without limitation, reasonable fees and
expenses of attorneys, consultants and auditors and reasonable costs of
investigations) or obligations whatsoever of any nature arising out of the
breach by the Eligible Lender Trustee of any of its obligations under this
Insurance Agreement or under any other Transaction Document to which it is a
party. This indemnity provision shall survive the termination of this Insurance
Agreement and shall survive until the statute of limitations has run on any
causes of action which arise from one of these reasons and until all suits filed
as a result thereof have been finally concluded.

          
Section 3.05. Payment Procedure. In the event of any payment by
the Insurer, the Eligible Lender Trustee, the Indenture Trustee, the Issuer, the
Master Servicer, the Seller, the Administrator and the Depositor agree to accept
the voucher or other evidence of payment as prima facie evidence of the
propriety thereof and the liability therefor to the Insurer. All payments to be
made to the Insurer under this Insurance Agreement shall be made to the Insurer
in lawful currency of the United States of America in immediately available
funds at the notice address for the Insurer as specified in Section 6.02 hereof
on the date when due or as the Insurer shall otherwise direct by written notice
to the other parties hereto. In the event that the date of any payment to the
Insurer or the expiration of any time period hereunder occurs on a day which is
not a Business Day, then such payment or expiration of time period shall be made
or occur on the next succeeding Business Day with the same force and effect as
if such payment was made or time period expired on the scheduled date of payment
or expiration date. Payments to be made to the Insurer under this Insurance
Agreement shall bear interest at the Late Payment Rate from the date when due to
the date paid.

          
Section 3.06. Indemnification of the Indenture Trustee; Limitation of
Liability.

	 	          
(a) Following the occurrence and during the continuation of an Event of Default
under Sections 5.01(i), 5.01(ii), 5.01(iv) or 5.01(v) of the Indenture or
following the acceleration of the Notes pursuant to Section 5.02 of the
Indenture and until such acceleration has been rescinded and annulled (in any
such case, an "Insurer Indemnification Period"), the Insurer agrees, to the
extent not otherwise paid by the Administrator pursuant to the terms of Section
6.07 of the Indenture or paid to the Indenture Trustee pursuant to clause FIRST
or SIXTH of Section 5.04(b) of the Indenture, to pay and indemnify the Indenture
Trustee from and against any and all loss, liability or reasonable expense
(including, without limitation, reasonable fees and expenses of attorneys)
arising in respect of or in connection with any action taken by the Indenture
Trustee during an Insurer Indemnification Period which action has been consented
to or directed by the Insurer. The term "action" used in the prior sentence
shall include any action not taken by the Indenture Trustee upon the direction
of the Insurer or failure of the Insurer to so direct, in each case after
consultation with the Insurer. In the event the Indenture Trustee will bear any
such loss, liability and expense, the Indenture Trustee (to the extent
reasonably practicable) shall notify the Insurer of the manner in which it
intends to address such loss, liability and expense and shall permit the Insurer
to direct the Indenture Trustee's actions in response thereto. The Insurer shall
not be liable to reimburse any expense or indemnify against any loss, liability
or expense incurred by the Indenture Trustee through the Indenture Trustee's own
willful misconduct, negligence or bad faith. This indemnity provision shall
survive the termination of this Insurance Agreement.

	 	          
(b) The provisions of this Section 3.06 are in addition to, and do not
contravene or override, the provisions of Section 6.01(g) of the Indenture.

	 	          
(c) In the event the Indenture Trustee proposes to assert the right to be
indemnified under this Section 3.06 it will, promptly after receipt of notice of
commencement of any action, suit or proceeding against it in respect of which a
claim is to be made against the Insurer under this Section 3.06, notify the
Insurer of the commencement of such action, suit or proceeding, enclosing a copy
of all papers served. In case any action, suit or proceeding shall be brought
against the Indenture Trustee and it shall notify the Insurer of the
commencement thereof, the Insurer shall be entitled to participate in, and, to
the extent that it shall wish, to assume the defense thereof, with counsel
reasonably satisfactory to the Indenture Trustee, and after notice from the
Insurer to the Indenture Trustee of its election so to assume the defense
thereof, the Insurer shall not be liable to the Indenture Trustee for any legal
or other expenses other than reasonable costs of investigation subsequently
incurred by the Indenture Trustee in connection with the defense thereof. The
Indenture Trustee shall have the right to employ its counsel in any such action
the defense of which is assumed by the Insurer in accordance with the terms of
this subsection (c), but the fees and expenses of such counsel shall be at the
expense of the Indenture Trustee unless (i) the employment of counsel by the
Indenture Trustee has been authorized by the Insurer, or (ii) the named parties
to any such action include the Indenture Trustee on the one hand and, on the
other hand, the Insurer, and representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interests between
them. The Insurer shall not be liable for any settlement of any action or claim
effected without its consent.

ARTICLE IV

FURTHER AGREEMENTS

          
Section 4.01. Effective Date; Term of the Insurance Agreement.
This Insurance Agreement shall take effect on the Date of Issuance and shall
remain in effect until the later of (a) such time as the Insurer is no longer
subject to a claim under the Policy and the Policy shall have been surrendered
to the Insurer for cancellation and (b) all amounts payable to the Insurer by
the Issuer, the Master Servicer, the Eligible Lender Trustee, the Indenture
Trustee, the Seller, the Administrator or the Depositor or from any other source
under the Transaction Documents and all amounts payable under the Securities
have been paid in full; provided, however, that the provisions of Sections 3.02,
3.03, 3.04 and 4.06 hereof shall survive any termination of this Insurance
Agreement.

          
Section 4.02. Further Assurances and Corrective Instruments.

	 	          
(a) Excepting at such times as a default in payment under the Policy shall exist
or shall have occurred, none of the Issuer, the Master Servicer, the Eligible
Lender Trustee, the Indenture Trustee, the Seller, the Administrator or the
Depositor shall grant any waiver of rights under any of the Transaction
Documents to which any of them is a party without the prior written consent of
the Insurer, and any such waiver without the prior written consent of the
Insurer shall be null and void and of no force or effect.

	 	          
(b) To the extent permitted by law, the Issuer, the Master Servicer, the
Eligible Lender Trustee, the Indenture Trustee, the Seller, the Administrator
and the Depositor agree that they will, from time to time, execute, acknowledge
and deliver, or cause to be executed, acknowledged and delivered, such
supplements hereto and such further instruments as the Insurer may request and
as may be required in the Insurer's judgment to effectuate the intention of or
facilitate the performance of this Insurance Agreement.

          
Section 4.03. Obligations Absolute.

	 	          
(a) The obligations of the Issuer, the Master Servicer, the Eligible Lender
Trustee, the Indenture Trustee, the Seller, the Administrator and the Depositor
hereunder shall be absolute and unconditional and shall be paid or performed
strictly in accordance with this Insurance Agreement under all circumstances
irrespective of:

	 	          
(i) any lack of validity or enforceability of, or any amendment or other
modifications of, or waiver with respect to any of the Transaction Documents,
the Securities or the Policy;

	 	          
(ii) any exchange or release of any other obligations hereunder;

	 	          
(iii) the existence of any claim, setoff, defense, reduction, abatement or other
right that the Issuer, the Master Servicer, the Eligible Lender Trustee, the
Indenture Trustee, the Seller, the Administrator or the Depositor may have at
any time against the Insurer or any other Person;

	 	          
(iv) any document presented in connection with the Policy proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect;

	 	          
(v) any payment by the Insurer under the Policy against presentation of a
certificate or other document that does not strictly comply with terms of the
Policy;

	 	          
(vi) any failure of the Issuer, the Master Servicer, the Eligible Lender
Trustee, the Indenture Trustee, the Seller, the Administrator or the Depositor
to receive the proceeds from the sale of the Securities; or

	 	          
(vii) any breach by the Issuer, the Master Servicer, the Eligible Lender
Trustee, the Indenture Trustee, the Seller, the Administrator or the Depositor
of any representation, warranty or covenant contained in any of the Transaction
Documents.

	 	          
(b) The Issuer, the Master Servicer, the Eligible Lender Trustee, the Indenture
Trustee, the Seller, the Administrator, the Depositor and any and all others who
are now or may become liable for all or part of the obligations of the Issuer,
the Master Servicer, the Eligible Lender Trustee, the Indenture Trustee, the
Seller, the Administrator or the Depositor under this Insurance Agreement agree
to be bound by this Insurance Agreement and (i) to the extent permitted by law,
waive and renounce any and all redemption and exemption rights and the benefit
of all valuation and appraisement privileges against the indebtedness and
obligations evidenced by any Transaction Document or by any extension or renewal
thereof; (ii) waive presentment and demand for payment, notices of nonpayment
and of dishonor, protest of dishonor and notice of protest; (iii) waive all
notices in connection with the delivery and acceptance hereof and all other
notices in connection with the performance, default or enforcement of any
payment hereunder, except as required by the Transaction Documents; (iv) waive
all rights of abatement, diminution, postponement or deduction, or any defense
other than payment, or any right of setoff or recoupment arising out of any
breach under any of the Transaction Documents by any party thereto or any
beneficiary thereof, or out of any obligation at any time owing to the Issuer,
the Master Servicer, the Eligible Lender Trustee, the Indenture Trustee, the
Seller, the Administrator or the Depositor; (v) agree that its liabilities
hereunder shall, except as otherwise expressly provided in this Section 4.03, be
unconditional and without regard to any setoff, counterclaim or the liability of
any other Person for the payment hereof; (vi) agree that any consent, waiver or
forbearance hereunder with respect to an event shall operate only for such event
and not for any subsequent event; (vii) consent to any and all extensions of
time that may be granted by the Insurer with respect to any payment hereunder or
other provisions hereof and to the release of any security at any time given for
any payment hereunder, or any part thereof, with or without substitution, and to
the release of any Person or entity liable for any such payment; and (viii)
consent to the addition of any and all other makers, endorsers, guarantors and
other obligors for any payment hereunder, and to the acceptance of any and all
other security for any payment hereunder, and agree that the addition of any
such obligors or security shall not affect the liability of the parties hereto
for any payment hereunder.

	 	          
(c) Nothing herein shall be construed as prohibiting the Issuer, the Master
Servicer, the Eligible Lender Trustee, the Indenture Trustee, the Seller, the
Administrator or the Depositor from pursuing any rights or remedies it may have
against any other Person in a separate legal proceeding.

          
Section 4.04. Assignments; Reinsurance; Third-party Rights.

	 	          
(a) This Insurance Agreement shall be a continuing obligation of the parties
hereto and shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns. None of the Issuer, the
Master Servicer, the Eligible Lender Trustee, the Indenture Trustee, the Seller,
the Administrator or the Depositor may assign its rights under this Insurance
Agreement, or delegate any of its duties hereunder, without the prior written
consent of the Insurer. Any assignment made in violation of this Insurance
Agreement shall be null and void.

	 	          
(b) The Insurer shall have the right to give participations in its rights under
this Insurance Agreement and to enter into contracts of reinsurance with respect
to the Policy upon such terms and conditions as the Insurer may in its
discretion determine; provided, however, that no such participation or
reinsurance agreement or arrangement shall relieve the Insurer of any of its
obligations hereunder or under the Policy.

	 	          
(c) In addition, the Insurer shall be entitled to assign or pledge to any bank
or other lender providing liquidity or credit with respect to the Transaction or
the obligations of the Insurer in connection therewith any rights of the Insurer
under the Transaction Documents or with respect to any real or personal property
or other interests pledged to the Insurer, or in which the Insurer has a
security interest, in connection with the Transaction.

	 	          
(d) Except as provided herein with respect to participants and reinsurers,
nothing in this Insurance Agreement shall confer any right, remedy or claim,
express or implied, upon any Person, including, particularly, any Owner, other
than the Insurer against the Issuer, the Master Servicer, the Eligible Lender
Trustee, the Indenture Trustee, the Seller, the Administrator or the Depositor,
and all the terms, covenants, conditions, promises and agreements contained
herein shall be for the sole and exclusive benefit of the parties hereto and
their successors and permitted assigns. Neither the Indenture Trustee nor any
Owner shall have any right to payment from any Premiums paid or payable
hereunder or under the Indenture or from any other amounts paid by the Issuer,
the Master Servicer, the Eligible Lender Trustee, the Indenture Trustee, the
Seller, the Administrator or the Depositor pursuant to Section 3.02, 3.03 or
3.04 hereof.

	 	          
(e) The Issuer, the Master Servicer, the Indenture Trustee, the Seller, the
Depositor, the Administrator and the Eligible Lender Trustee agree that the
Insurer shall have all rights of a third-party beneficiary in respect of the
Indenture, the Sale and Servicing Agreement and each other Transaction Document
to which it is not a signing party and hereby incorporate and restate their
representations, warranties and covenants as set forth therein for the benefit
of the Insurer.

          
Section 4.05. Liability of the Insurer. Neither the Insurer nor
any of its officers, directors or employees shall be liable or responsible for
(a) the use that may be made of the Policy by the Indenture Trustee or for any
acts or omissions of the Indenture Trustee in connection therewith or (b) the
validity, sufficiency, accuracy or genuineness of documents delivered to the
Insurer (or its Fiscal Agent) in connection with any claim under the Policy, or
of any signatures thereon, even if such documents or signatures should in fact
prove to be in any or all respects invalid, insufficient, fraudulent or forged
(unless the Insurer shall have actual knowledge thereof). In furtherance and not
in limitation of the foregoing, the Insurer (or its Fiscal Agent) may accept
documents that appear on their face to be in order, without responsibility for
further investigation.

          
Section 4.06. Parties Will Not Institute Insolvency Proceedings.
So long as this Agreement is in effect, and for one year following its
termination, none of the parties hereto will file any involuntary petition or
otherwise institute any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding or other proceedings under any federal or state
bankruptcy or similar law against the Issuer or the Depositor.

          
Section 4.07. Eligible Lender Trustee, Indenture Trustee, Depositor,
Administrator, Seller, Issuer and Master Servicer to Join in Enforcement
Action. To the extent necessary to enforce any right of the Insurer in
or remedy of the Insurer under any Student Loan, the Eligible Lender Trustee,
the Indenture Trustee, the Depositor, the Administrator, the Seller, the Issuer
and the Master Servicer agree to join in any action initiated by the Issuer or
the Insurer for the protection of such right or exercise of such remedy.

          
Section 4.08. Subrogation. To the extent of any payments under the
Policy, the Insurer shall be fully subrogated to any remedies against the
Issuer, the Depositor, the Administrator the Issuer or the Master Servicer or in
respect of the Student Loans available to the Indenture Trustee under the Sale
and Servicing Agreement and the Indenture. The Indenture Trustee acknowledges
such subrogation and, further, agrees to execute such instruments prepared by
the Insurer and to take such reasonable actions as, in the sole judgment of the
Insurer, are necessary to evidence such subrogation and to perfect the rights of
the Insurer to receive any moneys paid or payable under the Indenture and the
Sale and Servicing Agreement.

ARTICLE V

DEFAULTS; REMEDIES

          
Section 5.01. Defaults. The occurrence of any of the following
events shall constitute an Event of Default hereunder:

	 	          
(a) any representation or warranty made by the Issuer, the Master Servicer, the
Eligible Lender Trustee, the Indenture Trustee, the Seller, the Administrator or
the Depositor hereunder or under the Transaction Documents, or in any
certificate furnished hereunder or under the Transaction Documents, shall prove
to be untrue or incomplete in any material respect;

	 	          
(b)(i) the Issuer, the Master Servicer, the Eligible Lender Trustee, the Seller
or the Depositor shall fail to pay when due any amount payable by the Issuer,
the Master Servicer, the Eligible Lender Trustee, the Indenture Trustee, the
Seller, the Administrator or the Depositor hereunder or (ii) a legislative
body has enacted any law that declares or a court of competent jurisdiction
shall find or rule that any Transaction Document is not valid and binding on the
Issuer, the Master Servicer, the Eligible Lender Trustee, the Indenture Trustee,
the Seller, the Administrator or the Depositor;

	 	          
(c) the occurrence and continuance of an "Event of Default" under the Indenture,
as defined therein.

	 	          
(d) any failure on the part of the Issuer, the Master Servicer, the Eligible
Lender Trustee, the Indenture Trustee, the Seller, the Administrator or the
Depositor duly to observe or perform in any material respect any other of the
covenants or agreements on the part of the Issuer, the Master Servicer, the
Eligible Lender Trustee, the Indenture Trustee, the Seller, the Administrator or
the Depositor contained in this Insurance Agreement or in any other Transaction
Document which continues unremedied for a period of 30 days with respect to this
Insurance Agreement, or, with respect to any other Transaction Document, beyond
any cure period provided for therein, after the date on which written notice of
such failure, requiring the same to be remedied, shall have been given to the
Issuer, the Master Servicer, the Seller, the Administrator or the Depositor, as
applicable, by the Insurer (with a copy to the Eligible Lender Trustee and the
Indenture Trustee) or by the Eligible Lender Trustee or the Indenture Trustee
(with a copy to the Insurer);

	 	          
(e) decree or order of a court or agency or supervisory authority having
jurisdiction in the premises in an involuntary case under any present or future
federal or state bankruptcy, insolvency or similar law or the appointment of a
conservator or receiver or liquidator or other similar official in any
insolvency, readjustment of debt, marshalling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall
have been entered against the Issuer, the Master Servicer, the Seller, the
Administrator or the Depositor and such decree or order shall have remained in
force undischarged or unstayed for a period of 90 consecutive days;

	 	          
(f) the Issuer, the Master Servicer, the Seller, the Administrator or the
Depositor shall consent to the appointment of a conservator or receiver or
liquidator or other similar official in any insolvency, readjustment of debt,
marshalling of assets and liabilities or similar proceedings of or relating to
the Issuer, the Master Servicer, the Seller, the Administrator or the Depositor
or of or relating to all or substantially all of the property of either;

	 	          
(g) the Issuer, the Master Servicer, the Seller, the Administrator or the
Depositor shall admit in writing its inability to pay its debts generally as
they become due, file a petition to take advantage of or otherwise voluntarily
commence a case or proceeding under any applicable bankruptcy, insolvency,
reorganization or other similar statute, make an assignment for the benefit of
its creditors or voluntarily suspend payment of its obligations;

	 	          
(h) the occurrence and continuance of a "Master Servicer Default" or an
"Administrator Default" under the Sale and Servicing Agreement as defined
herein; or

	 	          
(i) the failure of the Seller to comply with, or maintain the accuracy of, the
Opinion Facts and Assumptions.

          
Section 5.02. Remedies; No Remedy Exclusive.

	 	          
(a) Upon the occurrence of an Event of Default, the Insurer may exercise any one
or more of the rights and remedies set forth below:

	 	          
(i) exercise any rights and remedies under the Transaction Documents in
accordance with the terms of the Transaction Documents or direct the Indenture
Trustee or the Eligible Lender Trustee to exercise such remedies in accordance
with the terms of the Transaction Documents; or

	 	          
(ii) take whatever action at law or in equity as may appear necessary or
desirable in its judgment to collect the amounts then due under the Transaction
Documents or to enforce performance and observance of any obligation, agreement
or covenant of the Issuer, the Master Servicer, the Eligible Lender Trustee, the
Indenture Trustee, the Seller, the Administrator or the Depositor under the
Transaction Documents.

	 	          
(b) Unless otherwise expressly provided, no remedy herein conferred upon or
reserved is intended to be exclusive of any other available remedy, but each
remedy shall be cumulative and shall be in addition to other remedies given
under the Transaction Documents or existing at law or in equity. No delay or
omission to exercise any right or power accruing under the Transaction Documents
upon the happening of any event set forth in Section 5.01 hereof shall
impair any such right or power or shall be construed to be a waiver thereof, but
any such right and power may be exercised from time to time and as often as may
be deemed expedient. In order to entitle the Insurer to exercise any remedy
reserved to the Insurer in this Article, it shall not be necessary to give any
notice other than such notice as may be required in this Article V.

          
Section 5.03. Waivers.

	 	          
(a) No failure by the Insurer to exercise, and no delay by the Insurer in
exercising, any right hereunder shall operate as a waiver thereof. The exercise
by the Insurer of any right hereunder shall not preclude the exercise of any
other right, and the remedies provided herein to the Insurer are declared in
every case to be cumulative and not exclusive of any remedies provided by law or
equity.

	 	          
(b) The Insurer shall have the right, to be exercised in its complete
discretion, to waive any Event of Default hereunder, by a writing setting forth
the terms, conditions and extent of such waiver signed by the Insurer and
delivered to the Issuer, the Master Servicer, the Eligible Lender Trustee, the
Indenture Trustee, the Seller, the Administrator and the Depositor. Unless such
writing expressly provides to the contrary, any waiver so granted shall extend
only to the specific event or occurrence which gave rise to the Event of Default
so waived and not to any other similar event or occurrence which occurs
subsequent to the date of such waiver.

ARTICLE VI

MISCELLANEOUS

          
Section 6.01. Amendments, Etc. This Insurance Agreement may be
amended, modified or terminated only by written instrument or written
instruments signed by the parties hereto. The Master Servicer agrees to promptly
provide a copy of any amendment to this Insurance Agreement to the Indenture
Trustee, the Eligible Lender Trustee, S&P, Fitch and Moody's. No act or
course of dealing shall be deemed to constitute an amendment, modification or
termination hereof.

          
Section 6.02. Notices. All demands, notices and other
communications to be given hereunder shall be in writing (except as otherwise
specifically provided herein) and shall be mailed by registered mail or
personally delivered or telecopied to the recipient as follows:

	 	(a)	To the Insurer:

MBIA Insurance Corporation

113 King Street

Armonk, NY 10504

Attention: Insured Portfolio Management-Structured Finance (IPM-SF)

                   (KeyCorp Student Loan Trust 2000-B

                   Floating Rate Asset-Backed Notes)

Telecopy No.: (914) 765-3810

Confirmation: (914) 765-3781

(in each case in which notice or other communication to the Insurer refers to an
Event of Default, a claim on the Policy or with respect to which failure on the
part of the Insurer to respond shall be deemed to constitute consent or
acceptance, then a copy of such notice or other communication should also be
sent to the attention of each of the general counsel and the Insurer and shall
be marked to indicate "URGENT MATERIAL ENCLOSED.")

	 	(b)	To the Seller:

Key Bank USA, National Association

4th Floor

800 Superior Avenue

Cleveland, OH 44114

Attention: Key Education Resources,

                    KeyCorp Student Loan Trust 2000-B

Telecopy No.: (216)828-9301

Confirmation: (212)828-9342

	 	(c)	To the Master Servicer:

Key Bank USA, National Association

4th Floor

800 Superior Avenue

Cleveland, OH 44114

Attention: Key Education Resources,

                    KeyCorp Student Loan Trust 2000-B

Telecopy No.: (216)828-9301

Confirmation: (212)828-9342

	 	(d)	To the Eligible Lender Trustee:

Bank One, National Association

Bank One Plaza

Chicago, IL 60670

Attention: Corporate Trust Administration

Telecopy No.: (312)407-1708

Confirmation: (312)407-0192

	 	(e)	To the Depositor:

Key Bank USA, National Association

4th Floor

800 Superior Avenue

Cleveland, OH 44114

Attention: Key Education Resources,

                    KeyCorp Student Loan Trust 2000-B
Telecopy No.: (216)828-9301

Confirmation: (216)828-9342

	 	(f)	To the Indenture Trustee:

Bankers Trust Company

10th Floor

4 Albany Street

New York, NY 10006

Attention: Corporate Trust and Agency Group

Telecopy No.: (212)250-6439

Confirmation: (212)250-6501

	 	(g)	To the Administrator:

Key Bank USA, National Association

4th Floor

800 Superior Avenue

Cleveland, OH 44114

Attention: Key Education Resources,

                    KeyCorp Student Loan Trust 2000-B

Telecopy No.: (216)828-9301

Confirmation: (216)828-9342

          
A party may specify an additional or different address or addresses by writing
mailed or delivered to the other parties as aforesaid. All such notices and
other communications shall be effective upon receipt.

          
Section 6.03. Severability. In the event that any provision of
this Insurance Agreement shall be held invalid or unenforceable by any court of
competent jurisdiction, the parties hereto agree that such holding shall not
invalidate or render unenforceable any other provision hereof. The parties
hereto further agree that the holding by any court of competent jurisdiction
that any remedy pursued by any party hereto is unavailable or unenforceable
shall not affect in any way the ability of such party to pursue any other remedy
available to it.

          
Section 6.04. Governing Law. THIS INSURANCE AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO CHOICE OF LAW PROVISIONS.

          
Section 6.05. Consent to Jurisdiction.

	 	          
(a) The parties hereto hereby irrevocably submit to the jurisdiction of the
United States District Court for the Southern District of New York and any court
in the State of New York located in the City and County of New York, and any
appellate court from any thereof, in any action, suit or proceeding brought
against it and to or in connection with any of the Transaction Documents or the
transactions contemplated thereunder or for recognition or enforcement of any
judgment, and the parties hereto hereby irrevocably and unconditionally agree
that all claims in respect of any such action or proceeding may be heard or
determined in such New York state court or, to the extent permitted by law, in
such federal court. The parties hereto agree that a final nonappealable judgment
in any such action, suit or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other manner provided
by law. To the extent permitted by applicable law, the parties hereto hereby
waive and agree not to assert by way of motion, as a defense or otherwise in any
such suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of such courts, that the suit, action or proceeding is brought
in an inconvenient forum, that the venue of the suit, action or proceeding is
improper or that the related documents or the subject matter thereof may not be
litigated in or by such courts.

	 	          
(b) To the extent permitted by applicable law, the parties hereto shall not seek
and hereby waive the right to any review of the judgment of any such court by
any court of any other nation or jurisdiction which may be called upon to grant
an enforcement of such judgment.

	 	          
(c) Except as provided in Section 4.06 herein, nothing contained in this
Insurance Agreement shall limit or affect the Insurer's right to serve process
in any other manner permitted by law or to start legal proceedings relating to
any of the Transaction Documents against any party hereto or its or their
property in the courts of any jurisdiction.

          
Section 6.06. Consent of the Insurer. In the event that the
consent of the Insurer is required under any of the Transaction Documents, the
Insurer shall not unreasonably withhold its consent except that the
determination whether to grant or withhold any such consent required under
Article VIII of the Sale and Servicing Agreement or Article V of the
Indenture shall be made by the Insurer in its sole discretion without any
implied duty towards any other Person.

          
Section 6.07. Counterparts. This Insurance Agreement may be
executed in counterparts by the parties hereto, and all such counterparts shall
constitute one and the same instrument.

          
Section 6.08. Headings. The headings of Articles and Sections and
the Table of Contents contained in this Insurance Agreement are provided for
convenience only. They form no part of this Insurance Agreement and shall not
affect its construction or interpretation. Unless otherwise indicated, all
references to Articles and Sections in this Insurance Agreement refer to the
corresponding Articles and Sections of this Insurance Agreement.

          
Section 6.09. Trial by Jury Waived. Each party hereto hereby
waives, to the fullest extent permitted by law, any right to a trial by jury in
respect of any litigation arising directly or indirectly out of, under or in
connection with any of the Transaction Documents or any of the transactions
contemplated thereunder. Each party hereto (a) certifies that no representative,
agent or attorney of any party hereto has represented, expressly or otherwise,
that it would not, in the event of litigation, seek to enforce the foregoing
waiver and (b) acknowledges that it has been induced to enter into the
Transaction Documents to which it is a party by, among other things, this
waiver.

          
Section 6.10. Limited Liability. No recourse under any Transaction
Document shall be had against, and no personal liability shall attach to, any
officer, employee, director, affiliate or shareholder of any party hereto, as
such, by the enforcement of any assessment or by any legal or equitable
proceeding, by virtue of any statute or otherwise in respect of any of the
Transaction Documents, the Securities or the Policy, it being expressly agreed
and understood that each Transaction Document is solely a corporate obligation
of each party hereto, and that any and all personal liability, either at common
law or in equity, or by statute or constitution, of every such officer,
employee, director, affiliate or shareholder for breaches by any party hereto of
any obligations under any Transaction Document is hereby expressly waived as a
condition of and in consideration for the execution and delivery of this
Insurance Agreement.

          
Section 6.11. Entire Agreement. The Transaction Documents and the
Policy set forth the entire agreement between the parties with respect to the
subject matter thereof, and this Insurance Agreement supersedes and replaces any
agreement or understanding that may have existed between the parties prior to
the date hereof in respect of such subject matter.

[Remainder of page intentionally blank; signature page
follows]

          
IN WITNESS WHEREOF, the parties hereto have executed this Insurance Agreement,
all as of the day and year first above mentioned.

	 	
MBIA INSURANCE CORPORATION

By /s/ Lisa A. Wilson                
             
      Assistant Secretary

	 	
KEY BANK USA, NATIONAL ASSOCIATION,
as Master Servicer

By /s/ Darlene H. Dimitrijevs        
             
      Senior Vice President

	 	
KEY BANK USA, NATIONAL ASSOCIATION,
as Seller

By /s/ Darlene H. Dimitrijevs        
             
      Senior Vice President

	 	
KEY BANK USA, NATIONAL ASSOCIATION,
as Depositor

By /s/ Darlene H. Dimitrijevs        
             
      Senior Vice President

	 	
KEY BANK USA, NATIONAL ASSOCIATION,
as Administrator

By /s/ Darlene H. Dimitrijevs        
             
      Senior Vice President

	 	
KEYCORP STUDENT LOAN TRUST 2000-B,
as Issuer

By: BANK ONE, NATIONAL ASSOCIATION, not in its individual capacity but solely as
Eligible Lender Trustee on behalf of the Issuer

By /s/ Keith R. Richardson              
         
      Authorized Officer

	 	
BANK ONE, NATIONAL ASSOCIATION,
as Eligible Lender Trustee

By /s/ Keith R. Richardson                
        
    
  Authorized Officer

	 	
BANKERS TRUST COMPANY,
as Indenture Trustee

By /s/ Franco B. Talavera               
         

      Assistant Vice President

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