Document:

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                                                                   Exhibit 10.11

               AMENDED AND RESTATED CONTINUING GUARANTY AGREEMENT

     THIS AMENDED AND RESTATED CONTINUING GUARANTY AGREEMENT (the "Guaranty")
made as of the 26/th/ day of March, 2002, by and between DIRECT III MARKETING,
INC., a Delaware corporation doing business as Education Lending Group, Inc.
("Guarantor"), and FIFTH THIRD BANK, an Ohio banking corporation, for itself and
as agent for any affiliate of Fifth Third Bancorp ("Beneficiary").

                              W I T N E S S E T H:

     WHEREAS, Beneficiary has agreed to extend credit and financial
accommodations to Grad Partners, INC., a Delaware corporation ("Grad Partners"),
and to STUDENT LOAN XPRESS, INC., a Delaware corporation ("Xpress") (each of
Grad Partners and Xpress hereinafter, from time to time, a "Borrower", and
collectively, from time to time, the "Borrowers") pursuant to that certain
Second Amended and Restated Credit Agreement, dated of even date herewith, by
and among Grad Partners, Xpress, and Beneficiary, together with the Revolving
Notes, dated of even date herewith, executed by Grad Partners and Xpress, each
for a maximum principal amount of $15,000,000, less the amount borrowed by the
other Borrower, and each made payable to the order of Beneficiary (the "Notes"),
and all agreements, instruments and documents executed or delivered in
connection with any of the foregoing or otherwise related thereto (together with
any amendments, modifications, or restatements thereof, the "Loan Documents");

     WHEREAS, Guarantor is affiliated with each Borrower and, as such, shall be
benefited directly by the transaction contemplated by the Loan Documents, and
shall execute this Guaranty in order to induce Beneficiary to enter into such
transaction;

     WHEREAS, Guarantor has executed that certain Continuing Guaranty Agreement,
dated September 17, 2001, by and between Guarantor and Beneficiary, guaranteeing
the full and prompt payment and performance when due of the Obligations of Grad
Partners; and

     WHEREAS, Guarantor now desires to guarantee the Obligations of Xpress, in
addition to the Obligations of Grad Partners.

NOW, THEREFORE, in consideration of the foregoing premises and other good and
valuable consideration, Guarantor hereby guarantees, promises and undertakes as
follows:

     1.   GUARANTY.

          (a)  Guarantor hereby unconditionally, absolutely and irrevocably
guarantees to Beneficiary the full and prompt payment and performance when due
(whether at maturity by acceleration or otherwise) of any and all loans,
advances, indebtedness and each and every other

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obligation or liability of each Borrower owed to Beneficiary and any affiliate
of Fifth Third Bancorp, however created, of every kind and description, whether
now existing or hereafter arising and whether direct or indirect, primary or as
guarantor or surety, absolute or contingent, due or to become due, liquidated or
unliquidated, matured or unmatured, participated in whole or in part, created by
trust agreement, lease, overdraft, agreement, or otherwise, whether or not
secured by additional collateral, whether originated with Beneficiary or owed to
others and acquired by Beneficiary by purchase, assignment or otherwise, and
including, without limitation, all loans, advances, indebtedness and each and
every other obligation or liability arising under the Loan Documents, letters of
credit now or hereafter issued by Beneficiary or any affiliate of Fifth Third
Bancorp for the benefit of or at the request of either Borrower, all obligations
to perform or forbear from performing acts, and all agreements, instruments and
documents evidencing, guarantying, securing or otherwise executed in connection
with any of the foregoing, together with any amendments, modifications, and
restatements thereof, and all expenses and attorneys' fees incurred or other
sums disbursed by Beneficiary or any affiliate of Fifth Third Bancorp under this
Guaranty or any other document, instrument or agreement related to any of the
foregoing (collectively, the "Obligations").

          (b)  This Guaranty is a continuing guaranty of payment, and not merely
of collection, that shall remain in full force and effect until expressly
terminated in writing by Beneficiary, notwithstanding the fact that no
Obligations may be outstanding from time to time. Such termination by
Beneficiary shall be applicable only to transactions having their inception
after the effective date thereof, and shall not affect the enforceability of
this Guaranty with regard to any Obligations arising out of transactions having
their inception prior to such effective date, even if such Obligations shall
have been modified, renewed, compromised, extended, otherwise amended or
performed by Beneficiary subsequent to such termination. In the absence of any
termination of this Guaranty as provided above, Guarantor agrees that
Guarantor's obligations hereunder shall not be deemed discharged or satisfied
until the Obligations are fully paid and performed, and no such payments or
performance with regard to the Obligations is subject to any right on the part
of any person whomsoever, including but not limited to any trustee in
bankruptcy, to recover any of such payments. If any such payments are so set
aside or settled without litigation, all of which is within Beneficiary's
discretion, Guarantor shall be liable for the full amount Beneficiary is
required to repay, plus costs, interest, reasonable attorneys' fees and any and
all expenses that Beneficiary paid or incurred in connection therewith. A
successor of either Borrower, including either Borrower in its capacity as
debtor in a bankruptcy reorganization case, shall not be considered to be a
different person than such Borrower; and this Guaranty shall apply to all
Obligations incurred by such successor.

          (c)  Guarantor agrees that Guarantor is directly and primarily liable
to Beneficiary and that the Obligations hereunder are independent of the
Obligations of Borrower, or of any other guarantor. The liability of Guarantor
hereunder shall survive discharge or compromise of any Obligation of either
Borrower in bankruptcy or otherwise. Beneficiary shall not be required to
prosecute or seek to enforce any remedies against either Borrower or any other
party liable to Beneficiary on account of the Obligations, or to seek to enforce
or resort to any remedies with respect to any collateral granted to Beneficiary
by either Borrower or any other party on account of the Obligations, as a
condition to payment or performance by Guarantor under this Guaranty.

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          (d)  Beneficiary may, without notice or demand and without affecting
its rights hereunder, from time to time: (i) renew, extend, accelerate or
otherwise change the amount of, the time for payment of, or other terms relating
to, any or all of the Obligations, or otherwise modify, amend or change the
terms of the Loan Documents or any other document or instrument evidencing,
securing or otherwise relating to the Obligations, (ii) take and hold collateral
for the payment of the Obligations guaranteed hereby, and exchange, enforce,
waive, and release any such collateral, and apply such collateral and direct the
order or manner of sale thereof as Beneficiary in its discretion may determine.
Accordingly, Guarantor hereby waives notice of any and all of the foregoing.

          (e)  Guarantor hereby waives all defenses, counterclaims and off-sets
of any kind or nature, whether legal or equitable, that may arise: (i) directly
or indirectly from the present or future lack of validity, binding effect or
enforceability of the Loan Documents or any other document or instrument
evidencing, securing or otherwise relating to the Obligations, (ii) from
Beneficiary's impairment of any collateral, including the failure to record or
perfect the Beneficiary's interest in the collateral, or (iii) by reason of any
claim or defense based upon an election of remedies by Beneficiary in the event
such election may, in any manner, impair, affect, reduce, release, destroy or
extinguish any right of contribution or reimbursement of Guarantor, or any other
rights of the Guarantor to proceed against any other guarantor, or against any
other person or any collateral.

          (f)  Guarantor hereby waives all presentments, demands for performance
or payment, notices of nonperformance, protests, notices of protest, notices of
dishonor, notices of default or nonpayment, notice of acceptance of this
Guaranty, and notices of the existence, creation, or incurring of new or
additional Obligations, and all other notices or formalities to which Guarantor
may be entitled, and Guarantor hereby waives all suretyship defenses, including
but not limited to all defenses set forth in the Uniform Commercial Code as in
effect as of the date hereof in the State of Ohio, (the "Ohio Uniform Commercial
Code") to the full extent such a waiver is permitted thereby.

          (g)  Guarantor hereby irrevocably waives all legal and equitable
rights to recover from either Borrower or both Borrowers any sums paid by the
Guarantor under the terms of this Guaranty, including without limitation all
rights of subrogation and all other rights that would result in Guarantor being
deemed a creditor of either Borrower or both Borrowers under the federal
Bankruptcy Code or any other law, and Guarantor hereby waives any right to
assert in any manner against Beneficiary any claim, defense, counterclaim and
off-set of any kind or nature, whether legal or equitable, that Guarantor may
now or at any time hereafter have against either Borrower or both Borrowers or
against any other party liable to Beneficiary.

     2.   REPRESENTATIONS, WARRANTIES AND COVENANTS. Guarantor hereby
represents, warrants and covenants as follows:

          (a)  Guarantor is duly organized, validly existing and in good
standing under the laws of the state of its organization, has the power and
authority to carry on its business and

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to enter into and perform this Guaranty, and is qualified and licensed to do
business in each jurisdiction in which such qualification or licensing is
required.

          (b)  The execution, delivery and performance by Guarantor of this
Guaranty have been duly authorized by all necessary company action, and shall
not violate any provision of law or regulation applicable to Guarantor, or the
articles of organization or operating agreement of Guarantor, or any writ or
decree of any court or governmental instrumentality, or any instrument or
agreement to which Guarantor is a party or by which Guarantor may be bound; this
Guaranty is a legal, valid and binding obligation of said Guarantor, enforceable
in accordance with its terms; and there is no action or proceeding before any
court or governmental body or agency now pending that may materially adversely
affect the condition (financial or otherwise) of Guarantor.

     3.   EVENTS OF DEFAULT. Any of the following occurrences shall constitute
an "Event of Default" under this Guaranty:

          (a)  An Event of Default occurs under the terms of the Loan Documents
or any other document or instrument evidencing, securing or otherwise relating
to the Obligations, as "Event of Default" shall be defined therein.

          (b)  Guarantor shall fail to observe or perform any covenant,
condition, or agreement under this Guaranty for a period of thirty (30) days
after date of such breach, or any representation or warranty of Guarantor set
forth in this Guaranty shall be materially inaccurate or misleading when made or
delivered.

          (c)  The death, legal incompetence or dissolution of Guarantor, of the
general partner thereof, or of any endorser or other guarantor of the
Obligations, or the merger or consolidation of any of the foregoing with a third
party, or the lease, sale or other conveyance of a material part of the assets
or business of any of the foregoing to a third party outside the ordinary course
of its business, or the lease, purchase or other acquisition of a material part
of the assets or business of a third party by any of the foregoing.

          (d)  The default by Guarantor under the terms of any indebtedness of
Guarantor now or hereafter existing, which default has not been cured within any
time period permitted pursuant to the terms and conditions of such indebtedness
or the occurrence of an event which gives any creditor the right to accelerate
the maturity of any such indebtedness.

          (e)  The commencement by Guarantor of a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect; or the entry of a decree or order for relief in respect of Guarantor in
a case under any such law or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator (or other similar official) of Guarantor or for
any substantial part of Guarantor's property, or ordering the wind-up or
liquidation of Guarantor's affairs; or the filing and pendency for 30 days
without dismissal of a petition initiating an involuntary case under any such
bankruptcy, insolvency or similar law; or the making by Guarantor of any general
assignment for the benefit of creditors; or the failure of

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Guarantor generally to pay Guarantor's debts as such debts become due; or the
taking of action by Guarantor in furtherance of any of the foregoing.

          (f)  The revocation or attempted revocation of this Guaranty by
Guarantor before the termination of this Guaranty in accordance with its terms,
or the assignment or attempted assignment of this Guaranty by Guarantor.

     4.   REMEDIES.

          (a)  Whenever any Event of Default as defined herein shall have
happened, Beneficiary, in its sole discretion, may take any remedial action
permitted by law or in equity or by the Loan Documents or any other document or
instrument evidencing, securing or otherwise relating to the Obligations,
including demanding payment in full of all sums guaranteed hereby, plus any
accrued interest or other expenses.

          (b)  If Beneficiary should employ attorneys or incur other expenses
for the enforcement of this Guaranty, Guarantor, on demand therefor, shall
reimburse the reasonable fees of such attorneys and such other expenses to the
extent permitted by law.

          (c)  No remedy set forth herein is exclusive of any other available
remedy or remedies, but each is cumulative and in addition to every other remedy
given under this Guaranty or now or hereafter existing at law or in equity or by
statute. No delay or omission on the part of Beneficiary to exercise any right
or remedy shall be construed to be a waiver thereof, but any such right or
remedy may be exercised from time to time and as often as may be deemed
expedient thereby, and a waiver on any one occasion shall be limited to that
particular occasion.

     5.   FINANCIAL CONDITION OF BORROWER. Guarantor is presently informed of
the financial condition of each Borrower and of all other circumstances that a
diligent inquiry would reveal and which would bear upon the risk of nonpayment
of any of the Obligations. Guarantor hereby covenants that Guarantor shall
continue to keep informed of such matters, and hereby waives Guarantor's right,
if any, to require Beneficiary to disclose any present or future information
concerning such matters including, but not limited to, the release of or
revocation by any other guarantor.

     6.   SUBORDINATION. All indebtedness and liability now or hereafter owing
by either Borrower or both Borrowers to Guarantor is hereby postponed and
subordinated to the Obligations owing to Beneficiary; and such indebtedness and
liability to Guarantor, if Beneficiary so requests, shall be collected, enforced
and received by Guarantor as trustee for Beneficiary and be paid over to
Beneficiary on account of the Obligations.

     7.   NOTICES. Any notices under or pursuant to this Guaranty shall be
deemed duly sent when delivered in hand or when mailed by registered or
certified mail, return receipt requested, addressed as follows:

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          To Guarantor:      DIRECT III MARKETING, INC.
                             dba Education Lending Group, Inc.
                             12760 High Bluff Drive
                             Suite 210
                             San Diego, California 92130
                             Attention: Robert deRose

          To Beneficiary:    FIFTH THIRD BANK
                             38 Fountain Square Plaza
                             Cincinnati, Ohio 45263
                             Attention: Andrew Hauck

     Either party may change such address by sending notice of the change to the
other party.

     8.   MISCELLANEOUS.

          (a)  This Guaranty 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.

          (b)  This Guaranty is the complete agreement of the parties hereto and
supersedes all previous understandings and agreements relating to the subject
matter hereof. Neither this Guaranty nor any of the terms hereof may be
terminated, amended, supplemented, waived or modified orally, but only by an
instrument in writing signed by the party against whom enforcement of the
termination, amendment, supplement, waiver or modification is sought.

          (c)  As the context herein requires, the singular shall include the
plural and one gender shall include one or both other genders.

          (d)  This Guaranty shall inure to the benefit of Beneficiary's
successors and assigns and shall be binding upon the heirs, executors,
administrators and successors of Guarantor. This Guaranty is not assignable by
Guarantor.

          (e)  If any provision of this Guaranty or the application thereof to
any person or circumstance is held invalid, the remainder of this Guaranty and
the application thereof to other persons or circumstances shall not be affected
thereby.

          (f)  This Guaranty shall be governed by and construed in accordance
with the law of the State of Ohio. Guarantor agrees that the state and federal
courts for the County in which the Beneficiary is located or any other court in
which Beneficiary initiates proceedings have exclusive jurisdiction over all
matters arising out of this Guaranty.

          (g)  GUARANTOR AND BENEFICIARY HEREBY WAIVE THE RIGHT TO TRIAL BY JURY
OF ANY MATTERS ARISING IN CONNECTION WITH THIS GUARANTY OR THE TRANSACTIONS
RELATED THERETO.

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          (h)  This Guaranty 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. This Guaranty is the complete agreement of the parties hereto and
supersedes all previous understandings and agreements relating to the subject
matter hereof; neither this Guaranty nor any of the terms hereof may be
terminated, amended, supplemented, waived or modified orally, but only by an
instrument in writing signed by the party against whom enforcement of the
termination, amendment, supplement, waiver or modification is sought. As the
context requires, the singular shall include the plural and one gender shall
include one or both other genders. This Guaranty shall inure to the benefit of
the Beneficiary's successors and assigns and shall be binding upon the heirs,
executors, administrators and successors of the Guarantor. This Guaranty is
nonassignable by the Guarantor. If any provision of this Guaranty or the
application thereof to any person or circumstance is held invalid, the remainder
of this Guaranty and the application thereof to other persons or circumstances
shall not be affected thereby. This Guaranty shall be governed by and construed
in accordance with the law of the State of Ohio. Guarantor agrees that the state
and federal courts in Hamilton County, Ohio or any other court in which
Beneficiary initiates proceedings have exclusive jurisdiction over all matters
arising out of this Guaranty. GUARANTOR AND BENEFICIARY HEREBY WAIVE THE RIGHT
TO TRIAL BY JURY OF ANY MATTERS ARISING IN CONNECTION WITH THIS GUARANTY OR THE
TRANSACTIONS RELATED THERETO.

          (i)  Guarantor authorizes any attorney of record to appear for it in
any court of record in the State of Ohio, after an Obligation becomes due and
payable whether by its terms or upon default, waive the issuance and service of
process, and release all errors, and confess a judgment against it in favor of
the holder of such Obligation, for the principal amount of such Obligation plus
interest thereon, together with court costs and attorneys' fees. Stay of
execution and all exemptions are hereby waived. If an Obligation is referred to
an attorney for collection, and the payment is obtained without the entry of a
judgment, the obligors shall pay to the holder of such obligation its attorneys'
fees. GUARANTOR AGREES THAT AN ATTORNEY WHO IS COUNSEL TO BENEFICIARY OR ANY
OTHER HOLDER OF SUCH OBLIGATION MAY ALSO ACT AS ATTORNEY OF RECORD FOR GUARANTOR
WHEN TAKING THE ACTIONS DESCRIBED ABOVE IN THIS PARAGRAPH. GUARANTOR AGREES THAT
ANY ATTORNEY TAKING SUCH ACTIONS MAY BE PAID FOR THOSE SERVICES BY BENEFICIARY
OR THE HOLDER OF SUCH OBLIGATION. GUARANTOR WAIVES ANY CONFLICT OF INTEREST THAT
MAY BE CREATED BECAUSE THE ATTORNEY WHO ACTS FOR GUARANTOR PURSUANT TO THIS
PARAGRAPH IS ALSO REPRESENTING BENEFICIARY OR THE HOLDER OF SUCH OBLIGATION, OR
BECAUSE SUCH ATTORNEY IS BEING PAID BY BENEFICIARY OR THE HOLDER OF SUCH
OBLIGATION.

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     WARNING - BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT,
OR ANY OTHER CAUSE.

     IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed as of
the date first above written.

                                        GUARANTOR:

                                               DIRECT III MARKETING, INC.
                                               dba Education Lending Group, Inc.

                                        By: /s/ Perry D. Moore
                                            --------------------------------
                                        Title: Senior VP/Finance
                                               -----------------------------

     Accepted this 26th day of March, 2002.

                                        BENEFICIARY:

                                               FIFTH THIRD BANK

                                        By:  /s/ Andrew Hauck
                                            --------------------------------
                                        Title: Senior Vice President
                                               -----------------------------

                          [Signature page to Guaranty]

                                       8<PAGE>

                                                                   Exhibit 10.12

                               SECURITY AGREEMENT

     THIS SECURITY AGREEMENT is entered into as of the 26/th/ day of March,
2002, by and between STUDENT LOAN XPRESS, INC., a Delaware corporation (the
"Borrower"), FIFTH THIRD BANK, not in its individual capacity but solely as
eligible lender trustee on behalf of Student Loan Xpress, Inc. (the "Borrower
ELT") and FIFTH THIRD BANK, an Ohio banking corporation (the "Lender").

Section 1.  Definitions:

       1.1  Specific Definitions.  The following definitions shall apply:

       (a)  "Collateral" has the meaning set forth in Section 2.1 hereof.

       (b)  "Guarantee Payment" means any payment by a Student Loan Guarantor
with respect to a Student Loan.

       (c)  "Higher Education Act" has the meaning set forth in Section 2.4
hereof.

       (d)  "Lien" means any security interest, mortgage, pledge, assignment,
lien or other encumbrance of any kind, including interests of vendors or lessors
under conditional sale contracts or capital leases.

       (e)  "Loan and Security Agreement" means a Loan and Security Agreement
among Borrower, Borrower ELT and a LSA Debtor pursuant to which the LSA Debtor
has granted a security interest to Borrower in certain Student Loans originated
by or on behalf of such LSA Debtor with funds provided by Borrower.

       (f)  "LSA Debtor" means any graduate school or other student loan
originator who is a party to a Loan and Security Agreement.

       (g)  "Servicer" means each such servicer as approved in writing by
Lender.

       (h)  "Student Loan Debtor" means the obligor of a Student Loan.

       (i)  "Student Loan Guarantor" means any guarantee agency that guarantees
the payment of any Student Loan included in the Collateral.

       1.2  Other Definitions. Capitalized terms not defined herein have the
meanings set forth in the Second Amended and Restated Credit Agreement of even
date herewith between Borrower, Grad Partners, Inc., a Delaware corporation, and
Lender (the "Credit Agreement"). All other undefined terms shall have the
meaning given to them in the Ohio Uniform Commercial Code.

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Section 2.  Security.

       2.1  Security Interest of Lender. To induce Lender to make the Loans, and
as security for all Obligations, Borrower (and Borrower ELT in its capacity as
title holder to the Student Loans that are part of the Collateral) hereby
assigns to Lender as collateral and grants to Lender a continuing first priority
pledge and security interest in the following property of Borrower (the
"Collateral"), whether now owned or existing or hereafter acquired or arising
and regardless of where it is located:

       (a)  all of Borrower's and the Borrower ELT's right, title and interest
in each Student Loan owned by Borrower, including all instruments, chattel
paper, documents, securities, money, cash, promissory notes, loan applications
and cash proceeds and payments related thereto but excluding (i) any such
Student Loan and the instruments, chattel paper, documents, securities, money,
cash, promissory note, loan application and proceeds relating thereto, that is
sold and transferred to Education Funding Resources, LLC (formerly known as Grad
Partners Premier, LLC) (and Fifth Third Bank as eligible lender trustee on its
behalf) or that is sold and transferred to Student Loan Marketing Association
(SLMA) pursuant to the Exportss Agreement dated as of March 1, 2002 among SLMA,
Borrower and Fifth Third Bank as eligible lender trustee on behalf of Borrower
(the "SLMA Agreement") and the proceeds of such sales are delivered to Lender,
and (ii) any such Student Loan and the instruments, chattel paper, documents,
securities, money, cash, promissory note, loan application and proceeds relating
thereto, in which a Participation Interest (as defined in the SLMA Agreement) is
sold and transferred to SLMA pursuant to the SLMA Agreement, provided, however
that with respect to each partially disbursed Student Loan in which SLMA owns a
Participation Interest and the Borrower borrows a Revolving Loan to fund any
subsequent disbursement under such Student Loan, then the Collateral shall
include such Student Loan until a new Participation Interest is sold and
transferred to SLMA, and the proceeds of such sales are delivered to Lender.

       (b)  all of Borrower's right, title and interest in each Loan and
Security Agreement listed on Exhibit A attached hereto, as such exhibit may be
amended from time to time, and all of the Borrower's and the Borrower Eligible
Lender Trustee's right, title and interest under such Loan and Security
Agreement in each Student Loan financed under such Loan and Security Agreement,
including all instruments, general intangibles, accounts, investment property,
securities, money, cash, promissory notes, loan applications and cash proceeds
and payments relating thereto but excluding any such Student Loan and the
instruments, chattel paper, documents, securities, money, cash, promissory note,
loan application and proceeds relating thereto, that is sold and transferred to
Education Funding Resources, LLC (formerly known as Grad Partners Premier, LLC)
(and Fifth Third Bank as eligible lender trustee on its behalf).

       (c)  all proceeds and products of Collateral and all additions and
accessions to, replacements of, insurance or condemnation proceeds of, and
documents covering Collateral.

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       2.2  Items Not Included in Collateral. The Lender hereby expressly
acknowledges that the Borrower may sell Student Loans to Education Funding
Resources, LLC, a Delaware limited liability company (formerly known as Grad
Partners Premier LLC), and to SLMA, and may sell Participation Interests in
Student Loans to SLMA pursuant to the SLMA Agreement, and that the proceeds of
such sales shall be used to repay amounts owed by Borrower to Lender under the
Credit Agreement. Lender further expressly acknowledges that it does not have,
and if necessary will immediately release, any Lien on or security interest in,
any Student Loans, and the instruments, chattel paper, documents, securities,
money, cash, promissory notes, loan applications and proceeds relating thereto,
that are sold and transferred to Education Funding Resources, LLC (formerly
known as Grad Partners Premier, LLC) (and Fifth Third Bank, as eligible lender
trustee on its behalf) or to SLMA, or Student Loans in which Participation
Interests are sold to SLMA, and for which the proceeds of such sales have been
delivered to Lender; provided, however that with respect to each partially
disbursed Student Loan in which SLMA owns a Participation Interest and the
Borrower borrows a Revolving Loan to fund any subsequent disbursement under such
Student Loan, then the Collateral shall include such Student Loan until a new
Participation Interest is sold and transferred to SLMA, and the proceeds of such
sales are delivered to Lender.

       2.3  Representations in Schedule I. The representations and warranties in
Schedule I attached hereto entitled the Specific Representation Schedule are
true and correct in all material respects. Except as otherwise permitted
hereunder, Borrower shall not change its name, transfer executive offices or
maintain records with respect to Collateral at any location other than the
present locations specified in that schedule.

       2.4  Provisions Concerning the Collateral. (a) Borrower represents and
warrants that each Student Loan and Loan and Security Agreement contained in the
Collateral reflected on each Collateral report submitted to Lender is, or at the
time it arises shall be owned by Borrower free and clear of all Liens in favor
of any third party, shall be a bona fide existing obligation and shall not be
subject to any known deduction, offset, counterclaim, return privilege or other
condition, except as applicable under the Federal Family Education Loan Program
as authorized by the Higher Education Act of 1965 and all regulations
promulgated thereunder, each as amended from time to time (the "Higher Education
Act") or on Collateral reports delivered to Lender.

       (b)  Any officer, employee or agent of Lender shall have the right, at
any time or times hereafter, in the name of Lender or its nominee (including
Borrower), to verify the validity, amount or any other matter relating to any
Student Loan or any Loan and Security Agreement by mail, telephone, or
otherwise. Lender or its designee may at any time notify LSA Debtors or any
Student Loan Debtor that a security interest has been granted in the Loan and
Security Agreements and the Student Loans to Lender and after default by
Borrower hereunder collect the same directly and charge all collection costs and
expenses to Borrower's account.

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       (c)  If Borrower becomes aware that a LSA Debtor or a Student Loan Debtor
disputes liability or makes any claim with respect to a Loan and Security
Agreement in excess of $10,000 or that a receivership petition or petition under
any chapter of the federal bankruptcy act is filed by or against a LSA Debtor or
a Student Loan Debtor, or that a LSA Debtor or a Student Loan Debtor dissolves,
makes an assignment for the benefit of creditors, becomes insolvent, fails or
goes out of business, or that any other event occurs which adversely affects the
value of any Loan and Security Agreement owed by a LSA Debtor or any Student
Loan owed by a Student Loan Debtor, Borrower shall immediately notify Lender of
each such event where such event is material in nature. After default by
Borrower hereunder, Borrower shall not grant any discounts, credit or allowances
to any LSA Debtor, or to any Student Loan Debtor except as required by the
Higher Education Act. After default by Borrower, Lender may settle disputes and
claims directly with LSA Debtors and Student Loan Debtors, and in such cases,
Lender shall credit Borrower's account with the net amounts collected from such
disputed Loan and Security Agreements or Student Loans, after expenses of
collection.

       (d)  Effective upon any Event of Default, Borrower (and Borrower ELT on
behalf of Borrower) hereby grant a power of attorney and all necessary
authorization to Lender to maintain any and all collection procedures with
respect to the Collateral, including with respect to Student Loans contained in
the Collateral, filing, pursuing and recovering claims against Student Loan
Guarantors for Guarantee Payments and taking steps to enforce such Student Loans
such as commencing a legal proceeding to enforce a Student Loan in the name of
the Borrower or the Borrower ELT.

       2.5  Liens. Borrower as to the Loan and Security Agreement, and the
Borrower ELT as to the Student Loans, has good and marketable title to its
respective Collateral, and the Liens granted to Lender in this Agreement are
enforceable, and upon (a) receipt by Lender of an Acknowledgment and Acceptance
of Bailment Notice from the Servicer as bailee on Lender's behalf, and (b) the
filing of financing statements naming the LSA Debtor, the Borrower and the
Borrower ELT have been duly filed in the appropriate offices, are fully
perfected first priority Liens in the Collateral with priority over the rights
of every person other than Borrower in the Collateral.

       2.6  Further Assurances. (a) Borrower shall execute and deliver to Lender
at Lender's request all financing statements, continuation statements and other
documents that Lender may reasonably request, in form satisfactory to Lender, to
perfect and maintain perfected Lender's security interest in the Collateral and
to fully consummate all transactions contemplated under this Agreement. Borrower
hereby irrevocably makes, constitutes and appoints Lender (and any of Lender's
officers, employees or agents designated by Lender) as Borrower's true and
lawful attorney with power to sign the name of Borrower on any such documents.

       (b)  If any Collateral, including proceeds, consists of a letter of
credit, advice of credit, instrument, money, negotiable documents, chattel paper
or similar property (collectively, "Negotiable Collateral") Borrower shall,
immediately upon receipt thereof,

                                       4

<PAGE>

deliver actual physical possession of the Negotiable Collateral to Lender with
such endorsements as may be necessary.

       (c)  Lender may inspect and verify Borrower's books and records at any
time or times hereafter, during usual business hours, in order to verify the
amount or condition of the Collateral, or any other matter relating to the
Collateral or Borrower's financial condition. Borrower shall promptly deliver to
Lender copies of all books and records requested by Lender.

       2.7  Other Amounts Deemed Loans. If Borrower fails to pay any tax,
assessment, government charge or levy or to maintain insurance within the time
permitted by this Agreement or the Credit Agreement, or to discharge any Lien
prohibited hereby, or to comply with any other obligation, Lender may, but shall
not be required to, pay, satisfy, discharge or bond the same of the account of
Borrower, and to the extent permitted by law and all monies so paid out shall be
secured by the Collateral.

       2.8  Borrower Remains Liable. Borrower shall remain liable under any
contracts and agreements included in the Collateral to perform all of its duties
and obligations thereunder to the same extent as if this Agreement had not been
executed, and Lender shall not have any obligation or liability under such
contracts and agreements by reason of this Agreement or otherwise.

Section 3   Events of Default and Remedies.

       3.1  Events of Default. Any of the following events shall be an Event of
Default:

       (a)  any representation or warranty made herein by Borrower is incorrect
in any material respect when made; or

       (b)  Borrower fails to observe or perform any covenant, condition or
agreement herein and the failure or inability of Borrower to cure such default
for a period of 30 days after the occurrence thereof, provided that such 30-day
grace period shall not apply to (i) a breach of any covenant which in Lender's
good faith judgment is incapable of cure, (ii) any failure to maintain insurance
or permit inspection of the Collateral or of the books and records of Borrower,
or (iii) any breach of any covenant which has already occurred; or

       (c)  an Event of Default occurs under the Credit Agreement, the Loan
Documents or any document or agreement evidencing or securing the Obligations.

       3.2  Remedies. If any Event of Default shall occur and be continuing, in
addition to the remedies provided in the Credit Agreement:

       (a)  Lender may resort to the rights and remedies of a Lender under the
Ohio Uniform Commercial Code including the right to enter any premises of
Borrower, with or

                                       5

<PAGE>

without legal process and take possession of the Collateral and remove it and
any records pertaining thereto and/or remain on such premises and use it for the
purpose of collecting, preparing and disposing of the Collateral;

       (b)  Borrower shall upon request of Lender assemble the Collateral and
any records pertaining thereto and make them available at a place designated by
Lender; or

       3.3  No Remedy Exclusive. No remedy set forth herein is exclusive of any
other available remedy or remedies, but each is cumulative and in addition to
every other remedy given under this Agreement or the Credit Agreement or now or
hereafter existing at law or in equity or by statute.

Section 4   Miscellaneous Provisions.

       4.1  Miscellaneous. No delay or omission to exercise any right shall
impair any such right or be a waiver thereof, and a waiver on one occasion shall
be limited to that particular occasion. This Agreement may be amended only in
writing signed by the party against whom enforcement of the amendment is sought.
This Agreement may be executed in counterparts. If any part of this Agreement is
held invalid, the remainder of this Agreement shall not be affected thereby.

       4.2  Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the respective legal representatives, successors and assigns of
the parties hereto; however, Borrower may not assign any of its rights or
delegate any of its obligations hereunder. Lender (and any subsequent assignee)
may transfer and assign this Agreement or may assign partial interests or
participation in the Loans to other persons.

       4.3  Financing Statement. Borrower hereby authorizes Lender to file a
copy of this Agreement as a Financing Statement under the Ohio Uniform
Commercial Code with appropriate county and state government authorities
necessary to perfect the Lender's security interest in the Collateral as set
forth herein.

       4.4  Notices. Any notices under or pursuant to this agreement shall be
deemed duly sent when delivered in hand or when mailed by registered or
certified mail, return receipt requested, to the addresses then provided for in
the Notices section of the Credit Agreement.

       4.6  Governing Law; Jurisdiction. This Agreement shall be governed by the
domestic laws of the State of Ohio. Borrower agrees that the state and federal
courts in Hamilton County, Ohio or any other court in which Lender initiates
proceedings have exclusive jurisdiction over all matters arising out of this
Agreement, and that service of process in any such proceeding shall be effective
if mailed to Borrower at its address described in the Notices section of the
Credit Agreement. LENDER AND BORROWER HEREBY WAIVE THE RIGHT TO TRIAL BY JURY OF
ANY MATTERS ARISING

                                       6

<PAGE>

OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                            [Signature Page Follows]

                                       7

<PAGE>

     IN WITNESS WHEREOF, Borrower, Borrower ELT and Lender have executed this
Security Agreement by their respective duly authorized officers as of the date
first above written.

                                        BORROWER:

                                        STUDENT LOAN XPRESS, INC.

                                        By:     /s/ Perry Moore
                                                -------------------------
                                        Title:  Senior VP/Finance
                                                -------------------------

                                        BORROWER ELT:

                                        FIFTH THIRD BANK, as eligible lender
                                        trustee on behalf of Student Loan
                                        Xpress, Inc.

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

                                        LENDER:

                                        FIFTH THIRD BANK

                                        By:     /s/ A. Hauck
                                                -------------------------
                                        Title:  Senior Vice President
                                                -------------------------

      [Signature page to Security Agreement for Student Loan Xpress, Inc.]

                                       8

<PAGE>

                                   SCHEDULE I

                            SPECIFIC REPRESENTATIONS

     1.   The exact legal name of Borrower is: Student Loan Xpress, Inc.

     2.   Other than to change its name from Direct III Acquisition Sub, Inc.,
Borrower has not changed its name.

     3.   Borrower does not use in its business or own any trade names.

     4.   Borrower was incorporated on November 1, 2000, under the laws of the
State of Delaware, and is in good standing under those laws.

     5.   Borrower is qualified to transact business in Delaware, Ohio and
California.

     6.   Borrower has its chief executive office and principal place of
business at 12760 High Bluff Drive, Suite 210, San Diego, California 92130.
Borrower maintains all its records with respect to the Collateral at that
address.

     7.   Borrower also has a place of business at 12770 High Bluff Drive, Suite
310, San Diego, California 92130.

     8.   In the past five (5) years, Borrower has never maintained its chief
executive office or principal place of business or records with respect to the
Collateral at any location except that set forth in paragraph 6 above.

     9.   No entity (a) has been merged into Borrower, (b) has sold
substantially all of its assets to Borrower outside the ordinary course of its
business since Borrower was incorporated.

     10.  Borrower does not have any subsidiaries, or own stock in any other
corporations, or own an interest in any partnerships or joint ventures.

     11.  Borrower is not a plaintiff or defendant in any litigation.

                                       9

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