Document:

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                               INDENTURE OF TRUST

                                 by and between

                        NELNET STUDENT LOAN TRUST ______________

                                       and

                         __________________________BANK
                     as Trustee and Eligible Lender Trustee

                            Dated as of _____, 200__

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                       NELNET STUDENT LOAN TRUST ________

         Reconciliation and tie between Trust Indenture Act of 1939 and
Indenture of Trust dated as of ___________, 200__.

         TRUST INDENTURE ACT SECTION              INDENTURE SECTION

Section 310(a)(1)                                       7.23
310(a)(2)                                               7.23
310(b)                                                  7.23, 7.09
Section 311(a)                                          7.08
311(b)                                                  7.08
Section 312(b)                                          9.17
312(c)                                                  9.17
Section 313(a)                                          4.15
313(b)                                                  4.15
313(c)                                                  4.15, 8.04
Section 314(a)(1)                                       4.16
314(a)(2)                                               4.16
314(a)(3)                                               4.16
314(a)(4)                                               4.16
314(c)                                                  2.02, 5.06, 9.01
314(d)(1)                                               5.06, 9.01
Section 315(b)                                          8.04
Section 317(a)(1)                                       4.17
317(a)(2)                                               7.24
Section 318(a)                                          9.10
318(c)                                                  9.10

--------------------
NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of the Indenture.

         Attention should also be directed to Section 318(c) of the 1939 Act,
which provides that the provisions of Sections 310 to and including 317 of the
1939 Act are a part of and govern every qualified indenture, whether or not
physically contained therein.

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                                TABLE OF CONTENTS

         (This Table of Contents is for convenience of reference only and is not
intended to define, limit or describe the purpose or intent of any provisions of
this Indenture of Trust.)

                                    ARTICLE I

DEFINITIONS AND USE OF PHRASES................................................3

                                   ARTICLE II

  NOTE DETAILS, FORM OF NOTES, REDEMPTION OF NOTES AND USE OF PROCEEDS OF NOTES

Section 2.01.         Note Details............................................21
Section 2.02.         Execution, Authentication and Delivery of Notes.........22
Section 2.03.         Registration, Transfer and Exchange of Notes;
                      Persons Treated as Registered Owners....................22
Section 2.04.         Lost, Stolen, Destroyed and Mutilated Notes.............23
Section 2.05.         Trustee's Authentication Certificate....................24
Section 2.06.         Cancellation and Destruction of Notes by the Trustee....24
Section 2.07.         Temporary Notes.........................................24
Section 2.08.         Issuance of Notes.......................................24
Section 2.09.         Definitive Notes........................................24
Section 2.10.         Payment of Principal and Interest.......................25

                                   ARTICLE III

     PARITY AND PRIORITY OF LIEN; OTHER OBLIGATIONS; AND DERIVATIVE PRODUCTS

Section 3.01.         Parity and Priority of Lien.............................26
Section 3.02.         Other Obligations.......................................26
Section 3.03.         Derivative Products; Counterparty Payments;
                      Issuer Derivative Payments..............................27

                                   ARTICLE IV

            PROVISIONS APPLICABLE TO THE NOTES; DUTIES OF THE ISSUER

Section 4.01.         Payment of Principal and Interest.......................27
Section 4.02.         Covenants as to Additional Conveyances..................27
Section 4.03.         Further Covenants of the Issuer.........................27
Section 4.04.         Enforcement of Servicing Agreements.....................29
Section 4.05.         Procedures for Transfer of Funds........................30

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Section 4.06.         Additional Covenants with Respect to the Act............30
Section 4.07.         Financed Eligible Loans; Collections Thereof;
                      Assignment Thereof......................................31
Section 4.08.         Appointment of Agents, Etc..............................31
Section 4.09.         Capacity to Sue.........................................32
Section 4.10.         Continued Existence; Successor to Issuer................32
Section 4.11.         Amendment of Student Loan Purchase Agreements...........32
Section 4.12.         Representations; Negative Covenants.....................32
Section 4.13.         Additional Covenants....................................38
Section 4.14.         Providing of Notice.....................................39
Section 4.15.         Certain Reports.........................................39
Section 4.16.         Statement as to Compliance..............................40
Section 4.17.         Representations of the Issuer Regarding the Trustee's
                      Security Interest.......................................40
Section 4.18.         Further Covenants of the Issuer Regarding the Trustee's
                      Security Interest.......................................41

                                    ARTICLE V

                                      FUNDS

Section 5.01.         Creation and Continuation of Funds and Accounts.........42
Section 5.02.         Acquisition Fund........................................42
Section 5.03.         Collection Fund.........................................43
Section 5.04.         Reserve Fund............................................45
Section 5.05.         Investment of Funds Held by Trustee.....................46
Section 5.06.         Release.................................................47

                                   ARTICLE VI

                              DEFAULTS AND REMEDIES

Section 6.01.         Events of Default Defined...............................48
Section 6.02.         Remedy on Default; Possession of Trust Estate...........49
Section 6.03.         Remedies on Default; Advice of Counsel..................50
Section 6.04.         Remedies on Default; Sale of Trust Estate...............50
Section 6.05.         Appointment of Receiver.................................50
Section 6.06.         Restoration of Position.................................51
Section 6.07.         Purchase of Properties by Trustee or Registered Owners..51
Section 6.08.         Application of Sale Proceeds............................51
Section 6.09.         Acceleration of Maturity; Rescission and Annulment......51
Section 6.10.         Remedies Not Exclusive..................................52
Section 6.11.         Collection of Indebtedness and Suits for
                      Enforcement by Trustee..................................52
Section 6.12.         Direction of Trustee....................................53
Section 6.13.         Right to Enforce in Trustee.............................53
Section 6.14.         Physical Possession of Obligations Not Required.........54
Section 6.15.         Waivers of Events of Default............................54

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                                   ARTICLE VII

                                   THE TRUSTEE

Section 7.01.         Acceptance of Trust.....................................54
Section 7.02.         Recitals of Others......................................55
Section 7.03.         As to Filing of Indenture...............................55
Section 7.04.         Trustee May Act Through Agents..........................56
Section 7.05.         Indemnification of Trustee..............................56
Section 7.06.         Trustee's Right to Reliance.............................57
Section 7.07.         Compensation of Trustee.................................57
Section 7.08.         Trustee May Own Notes...................................58
Section 7.09.         Resignation of Trustee..................................58
Section 7.10.         Removal of Trustee......................................58
Section 7.11.         Successor Trustee.......................................59
Section 7.12.         Manner of Vesting Title in Trustee......................59
Section 7.13.         Additional Covenants by the Trustee to Conform
                      to the Act..............................................60
Section 7.14.         Right of Inspection.....................................60
Section 7.15.         Limitation with Respect to Examination of Reports.......60
Section 7.16.         Servicing Agreement.....................................60
Section 7.17.         Additional Covenants of Trustee.........................60
Section 7.18.         Duty of Trustee with Respect to Rating Agencies.........60
Section 7.19.         Merger of the Trustee...................................61
Section 7.20.         Receipt of Funds from Servicer..........................61
Section 7.21.         Special Circumstances Leading to Resignation of Trustee.61
Section 7.22.         Survival of Trustee's Rights to Receive Compensation,
                      Reimbursement and Indemnification.......................62
Section 7.23.         Corporate Trustee Required; Eligibility;
                      Conflicting Interests...................................62
Section 7.24.         Trustee May File Proofs of Claim........................62

                                  ARTICLE VIII

                             SUPPLEMENTAL INDENTURES

Section 8.01.         Supplemental Indentures Not Requiring Consent of
                      Registered Owners.......................................63
Section 8.02.         Supplemental Indentures Requiring Consent of
                      Registered Owners.......................................64
Section 8.03.         Additional Limitation on Modification of Indenture......65
Section 8.04.         Notice of Defaults......................................65
Section 8.05.         Conformity with the Trust Indenture Act.................65

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                                   ARTICLE IX

                               GENERAL PROVISIONS

Section 9.01.         Notices.................................................68
Section 9.02.         Covenants Bind Issuer...................................69
Section 9.03.         Lien Created............................................69
Section 9.04.         Severability of Lien....................................69
Section 9.05.         Consent of Registered Owners Binds Successors...........69
Section 9.06.         Nonliability of Persons; No General Obligation..........69
Section 9.07.         Nonpresentment of Notes or Interest Checks..............70
Section 9.08.         Security Agreement......................................70
Section 9.09.         Laws Governing..........................................70
Section 9.10.         Severability............................................70
Section 9.11.         Exhibits................................................70
Section 9.12.         Non-Business Days.......................................70
Section 9.13.         Parties Interested Herein...............................70
Section 9.14.         Obligations Are Limited Obligations.....................71
Section 9.15.         Counterparty Rights.....................................71
Section 9.16.         Disclosure of Names and Addresses of Registered Owners..71
Section 9.17.         Aggregate Principal Amount of Obligations...............71
Section 9.18.         Financed Eligible Loans.................................71
Section 9.19.         Concerning the Delaware Trustee.........................71

                                    ARTICLE X

         PAYMENT AND CANCELLATION OF NOTES AND SATISFACTION OF INDENTURE

Section 10.01.        Trust Irrevocable.......................................72
Section 10.02.        Satisfaction of Indenture...............................72
Section 10.03.        Optional Purchase of All Financed Eligible Loans........74
Section 10.04.        Auction of Financed Eligible Loans......................74
Section 10.05.        Cancellation of Paid Notes..............................75

EXHIBIT A ELIGIBLE LOAN ACQUISITION CERTIFICATE
EXHIBIT B-1 [FORM OF CLASS A-1 NOTE]
EXHIBIT B-2 [FORM OF CLASS A-2 NOTE]
EXHIBIT B-3 [FORM OF CLASS B NOTE]

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                               INDENTURE OF TRUST

         THIS INDENTURE OF TRUST, dated as of _______, 200__ (this "Indenture"),
is by and between NELNET STUDENT LOAN TRUST-_________ (the "Issuer"), a business
trust duly organized and existing under the laws of the State of Delaware (the
"State"), and ________________________ BANK, a national banking association duly
organized and operating under the laws of the United States of America (together
with its successors, the "Trustee"), as trustee and eligible lender trustee
hereunder (all capitalized terms used in these preambles, recitals and granting
clauses shall have the same meanings assigned thereto in Article I hereof);

                              W I T N E S S E T H :

         WHEREAS, the Issuer represents that it is duly created as a business
trust under the laws of the State and that by proper action has duly authorized
the execution and delivery of this Indenture, which Indenture provides for the
payment of student loan asset-backed notes (the "Notes") and the payments to any
Counterparty (as defined herein); and

         WHEREAS, this Indenture is subject to the provisions of the Trust
Indenture Act of 1939, as amended (the "Trust Indenture Act" or "TIA"), that are
deemed to be incorporated into this Indenture and shall, to the extent
applicable, be governed by such provisions; and

         WHEREAS, the Trustee has agreed to accept the trusts herein created
upon the terms herein set forth; and

         WHEREAS, it is hereby agreed between the parties hereto, the Registered
Owners of any Notes (the Registered Owners evidencing their consent by their
acceptance of the Notes) and any Counterparty (the Counterparty evidencing its
consent by its execution and delivery of a Derivative Product (as defined
herein)) that in the performance of any of the agreements of the Issuer herein
contained, any obligation it may thereby incur for the payment of money shall
not be general debt on its part, but shall be secured by and payable solely from
the Trust Estate, payable in such order of preference and priority as provided
herein;

         NOW, THEREFORE, the Issuer, in consideration of the premises and
acceptance by the Trustee of the trusts herein created, of the purchase and
acceptance of the Notes by the Registered Owners thereof, of the execution and
delivery of any Derivative Product by a Counterparty and the Issuer and the
acknowledgement thereof by the Trustee, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
does hereby GRANT, CONVEY, PLEDGE, TRANSFER, ASSIGN AND DELIVER to the Trustee,
for the benefit of the Registered Owners of the Notes, any Counterparty (to
secure the payment of any and all amounts which may from time to time become due
and owing to a Counterparty pursuant to any Derivative Product), all of the
moneys, rights, and properties described in the granting clauses A through F
below (the "Trust Estate"), as follows:

<PAGE>

                                GRANTING CLAUSE A

         The Revenues (other than Revenues released from the lien of the Trust
Estate as provided herein);

                                GRANTING CLAUSE B

         All moneys and investments held in the Funds and Accounts created under
Section 5.01 hereof, including all proceeds thereof and all income thereon;

                                GRANTING CLAUSE C

         The Financed Eligible Loans and all obligations of the obligors
thereunder including all moneys accrued and paid thereunder on or after the
Cutoff Date;

                                GRANTING CLAUSE D

         The rights of the Issuer in and to the Servicing Agreement, the Student
Loan Purchase Agreements, the Administrative Services Agreement, the Custodian
Agreements and the Guarantee Agreements as the same relate to Financed Eligible
Loans;

                                GRANTING CLAUSE E

         The rights of the Issuer in and to any Derivative Product and any
Counterparty Guarantee; provided, however, that this Granting Clause E shall not
be for the benefit of a Counterparty with respect to its Derivative Product; and

                                GRANTING CLAUSE F

         Any and all other property, rights and interests of every kind or
description that from time to time hereafter is granted, conveyed, pledged,
transferred, assigned or delivered to the Trustee as additional security
hereunder.

         TO HAVE AND TO HOLD the Trust Estate, whether now owned or held or
hereafter acquired, unto the Trustee and its successors or assigns;

         IN TRUST NEVERTHELESS, upon the terms and trusts herein set forth for
the equal and proportionate benefit and security of all present and future
Registered Owners of the Notes, without preference of any Note over any other,
except as provided herein, and for enforcement of the payment of the Notes in
accordance with their terms, and all other sums payable hereunder (including
payments due and payable to any Counterparty) or on the Notes, and for the
performance of and compliance with the obligations, covenants, and conditions of
this Indenture, as if all the Notes and other Obligations (as defined herein) at
any time Outstanding had been executed and delivered simultaneously with the
execution and delivery of this Indenture;

                                       2
<PAGE>

         PROVIDED, HOWEVER, that if the Issuer, its successors or assigns, shall
well and truly pay, or cause to be paid, the principal of the Notes and the
interest due and to become due thereon, or provide fully for payment thereof as
herein provided, at the times and in the manner mentioned in the Notes according
to the true intent and meaning thereof, and shall make all required payments
into the Funds as required under Article V hereof, or shall provide, as
permitted hereby, for the payment thereof by depositing with the Trustee sums
sufficient to pay or to provide for payment of the entire amount due and to
become so due as herein provided (including payments due and payable to any
Counterparty), then this Indenture (other than Sections 4.13, 4.14 (for a period
of 90 days) and 7.05 hereof) and the rights hereby granted shall cease,
terminate and be void; otherwise, this Indenture shall be and remain in full
force and effect;

         NOW, THEREFORE, it is mutually covenanted and agreed as follows:

                                   ARTICLE I

                         DEFINITIONS AND USE OF PHRASES

         The following terms have the following meanings unless the context
clearly requires otherwise:

         "ACCOUNT" shall mean any of the accounts created and established within
any Fund by this Indenture.

         "ACCRUAL PERIOD" shall mean, with respect to a Distribution Date, the
period from and including the immediately preceding Distribution Date, or in the
case of the initial such period the Closing Date, to but excluding such current
Distribution Date.

         "ACQUISITION FUND" shall mean the Fund by that name created in Section
5.01(a)(i) hereof and further described in Section 5.02 hereof, including any
Accounts and Subaccounts created therein.

         "ACT" shall mean the Higher Education Act of 1965, as amended or
supplemented from time to time, or any successor federal act and all
regulations, directives, bulletins, and guidelines promulgated from time to time
thereunder.

         "ADJUSTED POOL BALANCE" shall mean, for any Distribution Date, (a) if
the Pool Balance as of the last day of the related Collection Period is greater
than 40% of the Initial Pool Balance, the sum of such Pool Balance, the
Specified Reserve Fund Balance for that Distribution Date; or (b) if the Pool
Balance as of the last day of the related Collection Period is less than or
equal to 40% of the Initial Pool Balance, that Pool Balance.

                                       3
<PAGE>

         "ADMINISTRATIVE SERVICES AGREEMENT" shall mean the Administrative
Services Agreement dated as of ____________, 200__, among the Issuer, the
Administrator and the Delaware Trustee, as supplemented and amended.

         "ADMINISTRATOR" shall mean NELnet, Inc. in its capacity as
administrator of the Trust and the Financed Eligible Loans, or any successor
thereto in accordance with the Trust Agreement.

         "ADMINISTRATION FEE" shall mean an amount equal to _____% per annum.

         "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.

         "AGENT MEMBER" shall mean a member of, or participant in, the
Securities Depository.

         "AUTHORIZED OFFICER" means with respect to the Trust, any officer of
the Delaware Trustee who is authorized to act for the Delaware Trustee in
matters relating to the Trust pursuant to the Basic Documents and who is
identified on the list of Authorized Officers delivered by the Delaware Trustee
to the Trustee on the Date of Issuance (as such list may be modified or
supplemented from time to time thereafter); (b) 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
Trust 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 Trustee on the Date of Issuance (as such list may be
modified or supplemented from time to time thereafter); (c) 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 Trustee on the Date of Issuance (as such
list may be modified or supplemented from time to time thereafter); and (d) with
respect to the Servicer, any officer of the Servicer who is authorized to act
for the Servicer in matters relating to or to be acted upon by the Servicer
pursuant to the Basic Documents and who is identified on the list of Authorized
Officers delivered by the Servicer to the Trustee on the Date of Issuance (as
such list may be modified or supplemented from time to time thereafter).

         "AUTHORIZED REPRESENTATIVE" shall mean, when used with reference to the
Issuer, any Person duly authorized by the Trust Agreement to act on the Issuer's
behalf.

         "AVAILABLE FUNDS" shall mean, with respect to a Distribution Date or
any related Monthly Servicing Payment Date, the sum of the following amounts
received with respect to the related Collection Period (or, in the case of a
Monthly Servicing Payment Date, the applicable portion thereof) to the extent
not previously distributed: (a) all collections received by the Servicer on the
Financed Eligible Loans (including payments from any Guaranty Agency received

                                       4
<PAGE>

with respect to the Financed Eligible Loans but net of (i) any collections in
respect of principal on the Financed Eligible Loans applied by the Issuer to
repurchase guaranteed loans from the Guaranty Agencies in accordance with the
Guarantee Agreements; (ii) amounts required by the Act to be paid to the
Department (including, but not limited to, rebate fees owed with respect to
consolidation loans) or to be repaid to borrowers (whether or not in the form of
a principal reduction of the applicable Financed Eligible Loan), with respect to
the Financed Eligible Loans for such Collection Period; and (iii) after the
Pre-Funding Period, any proceeds used to purchase Eligible Loans which
constitute "add-on consolidation loans"); (b) any Interest Benefit Payments and
Special Allowance Payments received by the Trustee during such Collection Period
with respect to Financed Eligible Loans; (c) all Liquidation Proceeds from any
Financed Eligible Loans which became Liquidated Financed Eligible Loans during
such Collection Period in accordance with the Servicer's customary servicing
procedures, and all other moneys collected with respect to any Liquidated
Financed Eligible Loan which was written off in prior Collection Periods or
during the current Collection Period, net of the sum of any amounts expended by
the Servicer in connection with such liquidation and any amounts required by law
to be remitted to the obligor on such Liquidated Financed Eligible Loan; (d) the
aggregate Purchase Amounts received during such Collection Period for Financed
Eligible Loans repurchased by the Seller or purchased by the Servicer or for
serial loans sold to another eligible lender pursuant to the Servicing
Agreement; (e) the aggregate amounts, if any, received from the Seller or the
Servicer, as the case may be, as reimbursement of non-guaranteed interest
amounts, or lost Interest Benefit Payments and Special Allowance Payments, with
respect to the Financed Eligible Loans pursuant to the Student Loan Purchase
Agreement or the Servicing Agreement, respectively; (f) other amounts received
by the Servicer pursuant to its role as Servicer under the Servicing Agreement
and payable to the Issuer during such Collection Period in connection therewith;
and (g) any payments received under the Derivative Products from the
Counterparties in respect of such Distribution Date; provided, however, that if
with respect to any Distribution Date or Monthly Servicing Payment Date there
would not be sufficient funds, after application of Available Funds and amounts
available from the Reserve Fund, to pay any of the items specified in 5.03(b)
and 5.03(c)(i) through (c)(xi), then Available Funds for such Distribution Date
or Monthly Servicing Payment Date shall include amounts on deposit in the
Collection Fund on the related Determination Date which would have constituted
Available Funds for the Distribution Date or Monthly Servicing Payment Date
succeeding such Distribution Date or Monthly Servicing Payment Date, up to the
amount necessary to pay such items, and the Available Funds for such succeeding
Distribution Date or Monthly Servicing Payment Date shall be adjusted
accordingly.

         "BASIC DOCUMENTS" shall mean the Trust Agreement, this Indenture, the
Servicing Agreement, the Administrative Services Agreement, the Student Loan
Purchase Agreements, the Custodian Agreements, the Guarantee Agreements, the
Derivative Products and other documents and certificates delivered in connection
with any thereof.

         "BUSINESS DAY" shall mean (a) with respect to calculating Three-Month
LIBOR, One Month-LIBOR or Two-Month LIBOR, any day on which banks in New York,
New York and London, England are open for the transaction of international
business; and (b) for all other purposes, any day other than a Saturday, a
Sunday or a day on which banking institutions or trust companies in New York,
New York, or _____________________ are authorized or obligated by law,
regulation or executive order to remain closed.

                                       5
<PAGE>

         "CAPITALIZED INTEREST ACCOUNT" shall mean the Account by such name
created in the Collection Fund.

         "CAPITALIZED INTEREST PERIOD" shall mean the period beginning on the
Date of Issuance and ending on _______________.

         "CARRYOVER SERVICING FEE" shall have such meaning as defined in the
Servicing Agreement.

         "CERTIFICATE OF INSURANCE" shall mean any Certificate evidencing that a
Financed Eligible Loan is Insured pursuant to a Contract of Insurance.

         "CERTIFICATE OF TRUST" shall mean the certificate filed with the
Secretary of State of the State establishing the Issuer under Delaware law.

         "CLASS A NOTE INTEREST SHORTFALL" shall mean, with respect to any
Distribution Date, the excess of (a) the Class A Noteholders' Interest
Distribution Amount on the preceding Distribution Date over; (b) the amount of
interest actually distributed to the Class A Noteholders on such preceding
Distribution Date, plus interest on the amount of such excess interest due to
the Class A Noteholders, to the extent permitted by law, at the weighted average
interest rate borne by all of the Class A Notes from such preceding Distribution
Date to the current Distribution Date.

         "CLASS A NOTE PRINCIPAL SHORTFALL" shall mean, as of the close of any
Distribution Date, the excess of (a) the Class A Noteholders' Principal
Distribution Amount on such Distribution Date over (b) the amount of principal
actually distributed to the Class A Noteholders on such Distribution Date.

         "CLASS A NOTES" shall mean, collectively, the Class A-1 Notes and the
Class A-2 Notes secured on a senior priority to the Class B Obligations.

         "CLASS A OBLIGATIONS" shall mean Class A Notes and any Derivative
Product, the priority of payment of which is equal with that of Class A Notes.

         "CLASS A NOTEHOLDER" shall mean the Person in whose name a Class A Note
is registered in the Note registration books of the Trustee.

         "CLASS A NOTEHOLDERS' DISTRIBUTION AMOUNT" shall mean, with respect to
any Distribution Date, the sum of the Class A Noteholders' Interest Distribution
Amount and the Class A Noteholders' Principal Distribution Amount for such
Distribution Date.

         "CLASS A NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, with
respect to any Distribution Date, the sum of (a) the amount of interest accrued
at the Class A-1 Rate or the Class A-2 Rate, as applicable, for the related
Accrual Period on the aggregate outstanding principal balances of the respective
classes of Class A Notes on the immediately preceding Distribution Date after
giving effect to all principal distributions to the respective Class A
Noteholders on such date (or, in the case of the first Distribution Date, on the
Closing Date); and (b) the Class A Note Interest Shortfall for such Distribution
Date, as based on the actual number of days in such Accrual Period divided by
360.

                                       6
<PAGE>

         "CLASS A NOTEHOLDERS' PRINCIPAL DISTRIBUTION AMOUNT" shall mean, with
respect to any Distribution Date, the Principal Distribution Amount for such
Distribution Date plus the Class A Note Principal Shortfall as of the close of
the preceding Distribution Date; provided, however, that the Class A
Noteholders' Principal Distribution Amount shall not exceed the outstanding
principal balance of the Class A Notes. In addition, on the Class A-1 Maturity
Date or the Class A-2 Maturity Date, as the case may be, the principal required
to be distributed to the Class A Noteholders of the related class will include
the amount required to reduce the outstanding principal balance of the Class A
Notes of such class to zero.

         "CLASS A-1 MATURITY DATE" shall mean the __________ 20__ Distribution
Date.

         "CLASS A-2 MATURITY DATE" shall mean the __________ 20__ Distribution
Date.

         "CLASS A-1 NOTES" shall mean the $__________ Student Loan Asset-Backed
Notes, Class A-1 issued by the Issuer pursuant to this Indenture, substantially
in the form of Exhibit B-1 hereto.

         "CLASS A-2 NOTES" shall mean the $__________ Student Loan Asset-Backed
Notes, Class A-2 issued by the Issuer pursuant to this Indenture, substantially
in the form of Exhibit B-2 hereto.

         "CLASS A-1 RATE" shall mean, for any Accrual Period, other than the
first Accrual Period, the applicable Three-Month LIBOR, plus 0.__%, as
determined by the Administrator. For the first Accrual Period, the Class A-1
Rate shall be determined by reference to the following formula:

         x + [ __/__ * (y-x)] plus 0.__%, as determined by the Administrator.

         where:

         x = One-Month LIBOR, and

         y = Two-Month LIBOR,

         "CLASS A-2 RATE" shall mean, for any Accrual Period, other than the
first Accrual Period, the applicable Three-Month LIBOR, plus 0.__%, as
determined by the Administrator. For the first Accrual Period, the Class A-2
Rate shall be determined by reference to the following formula:

         x + [__/__ * (y-x)] plus 0.__%, as determined by the Administrator.

         where:

                                       7
<PAGE>

         x = One-Month LIBOR, and

         y = Two-Month LIBOR,

         "CLASS B MATURITY DATE" shall mean the ____________ 20__ Distribution
Date.

         "CLASS B NOTE INTEREST SHORTFALL" shall mean, with respect to any
Distribution Date, the excess of (a) the Class B Noteholders' Interest
Distribution Amount on the preceding Distribution Date; over (b) the amount of
interest actually distributed to the Class B Noteholders on such preceding
Distribution Date, plus interest on the amount of such excess interest due to
the Class B Noteholders, to the extent permitted by law, at the Class B Rate
from such preceding Distribution Date to the current Distribution Date.

         "CLASS B NOTE PRINCIPAL SHORTFALL" shall mean, as of the close of any
Distribution Date, the excess of (a) the Class B Noteholders' Principal
Distribution Amount on such Distribution Date over (b) the amount of principal
actually distributed to the Class B Noteholders on such Distribution Date.

         "CLASS B NOTES" shall mean the $______________ Student Loan
Asset-Backed Notes, Class B issued by the Issuer pursuant to this Indenture,
substantially in the form of Exhibit B-3 thereto.

         "CLASS B RATE" shall mean, for any Accrual Period, other than the first
Accrual Period, the applicable Three-Month LIBOR, plus 0.__%, as determined by
the Administrator. For the first Accrual Period, the Class B Rate shall be
determined by reference to the following formula:

         x + [ __/__ * (y-x)] plus 0.__% , as determined by the Administrator.

         where:

         x = One-Month LIBOR, and

         y = Two-Month LIBOR,

         "CLASS B OBLIGATIONS" shall mean Class B Notes and any Derivative
Product, the priority of payment of which is equal with that of Class B Notes.

         "CLASS B NOTEHOLDER" shall mean the Person in whose name a Class B Note
is registered on the Note registration books maintained by the Trustee.

         "CLASS B NOTEHOLDERS' DISTRIBUTION AMOUNT" shall mean, with respect to
any Distribution Date, the sum of the Class B Noteholders' Interest Distribution
Amount and the Class B Noteholders' Principal Distribution Amount for such
Distribution Date.

                                       8
<PAGE>

         "CLASS B NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, with
respect to any Distribution Date, the sum of (a) the amount of interest accrued
at the Class B Rate for the related Accrual Period on the outstanding principal
balance of the Class B Notes on the immediately preceding Distribution Date (or,
in the case of the first Distribution Date, on the Closing Date) after giving
effect to all principal distributions to Registered Owners on such date; and (b)
the Class B Note Interest Shortfall for such Distribution Date, as based on the
actual number of days in such Accrual Period divided by 360.

         "CLASS B NOTEHOLDERS' PRINCIPAL DISTRIBUTION AMOUNT" shall mean, with
respect to any Distribution Date, the excess of (a) the sum of (i) the Principal
Distribution Amount for such Distribution Date plus; (ii) the Class B Note
Principal Shortfall as of the close of the preceding Distribution Date; over (b)
the Class A Noteholders' Principal Distribution Amount for that Distribution
Date; provided, however, that the Class B Noteholders' Principal Distribution
Amount shall not exceed the outstanding principal balance of the Class B Notes.
In addition, on the Class B Maturity Date, the principal required to be
distributed to the Class B Noteholders will include the amount required to
reduce the outstanding principal balance of the Class B Notes to zero.

         "CLEARING AGENCY" shall mean an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act. The initial Clearing Agency
shall be The Depository Trust and Clearing Corporation and the initial nominee
for the Clearing Agency shall be Cede & Co.

         "CLEARING AGENCY PARTICIPANT" shall mean 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.

         "CODE" shall mean the Internal Revenue Code of 1986, as amended from
time to time. Each reference to a section of the Code herein shall be deemed to
include the United States Treasury Regulations, including applicable temporary
and proposed regulations, relating to such section which are applicable to the
Notes or the use of the proceeds thereof. A reference to any specific section of
the Code shall be deemed also to be a reference to the comparable provisions of
any enactment which supersedes or replaces the Code thereunder from time to
time.

         "COLLECTION FUND" shall mean the Fund by that name created in Section
5.01(b) hereof and further described in Section 5.03 hereof.

         "COLLECTION PERIOD" shall mean, with respect to the first Distribution
Date, the period beginning on the Cutoff Date and ending on ___________, 200__,
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" shall mean the Securities and Exchange Commission.

         "CONTRACT OF INSURANCE" shall mean the contract of insurance between
the Eligible Lender and the Secretary.

                                       9
<PAGE>

         "COUNTERPARTY" shall mean, any other third party which, at the time of
entering into a Derivative Product, has at least an "AA" or "A-1" rating, or
their equivalent, from a Rating Agency, and which is obligated to make
Counterparty Payments under a Derivative Product.

         "COUNTERPARTY PAYMENTS" shall mean any payment to be made to, or for
the benefit of, the Issuer under a Derivative Product.

         "CUSTODIAN AGREEMENT" shall mean, collectively, the custodian
agreements with any Servicer or other custodian or bailee related to Financed
Eligible Loans.

         "CUTOFF DATE" shall mean (i) with respect to the initial pool of
Financed Eligible Loans _________ __, 200__; and (ii) with respect to
subsequently acquired Eligible Loans, the date on which such loans are
transferred to the Trust.

         "DATE OF ISSUANCE" shall mean ________, 200__.

         "DELAWARE TRUSTEE" shall mean _______________________ a Delaware trust
company, solely in its capacity as the trustee of the Issuer under the Trust
Agreement.

         "DELAWARE TRUSTEE FEE" shall mean an amount equal to ______% per annum.

         "DEPARTMENT" shall mean the United States Department of Education, an
agency of the Federal government.

         "DERIVATIVE PAYMENT DATE" shall mean, with respect to a Derivative
Product, any date specified in the Derivative Product on which both or either of
the Issuer Derivative Payment and/or a Counterparty Payment is due and payable
under the Derivative Product.

         "DERIVATIVE PRODUCT" shall mean, any other written contract or
agreement between the Issuer and a Counterparty, which provides that the
Issuer's obligations thereunder will be conditioned on the absence of (a) a
failure by the Counterparty to make any payment required thereunder when due and
payable, or (b) a default thereunder with respect to the financial status of the
Counterparty, and:

                  (a) under which the Issuer is obligated to pay (whether on a
         net payment basis or otherwise) on one or more scheduled and specified
         Derivative Payment Dates, the Issuer Derivative Payments in exchange
         for the Counterparty's obligation to pay (whether on a net payment
         basis or otherwise), or to cause to be paid, to the Issuer,
         Counterparty Payments on one or more scheduled and specified Derivative
         Payment Dates in the amounts set forth in the Derivative Product;

                  (b) for which the Issuer's obligation to make Issuer
         Derivative Payments may be secured by a pledge of and lien on the Trust
         Estate on an equal and ratable basis with any class of the Issuer's
         Outstanding Notes and which Issuer Derivative Payments may be equal in
         priority with any priority classification of the Issuer's Outstanding
         Notes; and

                  (c) under which Counterparty Payments are to be made directly
         to the Trustee for deposit into the Collection Fund.

                                       10
<PAGE>

         "DERIVATIVE PRODUCT FEES" shall mean with respect to each Distribution
Date, the "Fixed Rate Payments" under [Trade I] to be made by the Issuer for
such date as specified in a Derivative Product.

         "DERIVATIVE PRODUCT PAYMENTS" shall mean with respect to each
Distribution Date, (i) the "Floating Rate Payments" under [Trade II] to be made
to a Counterparty by the Issuer for such date as specified in a Derivative
Product.

         "DERIVATIVE VALUE" shall mean the value of the Derivative Product, if
any, to the Counterparty, provided that such value is defined and calculated in
substantially the same manner as amounts are defined and calculated pursuant to
the applicable provisions of an ISDA Master Agreement.

         "DETERMINATION DATE" shall mean, with respect to the Collection Period
preceding any Distribution Date or the Monthly Servicing Payment Date, as
applicable, the third Business Day preceding such Distribution Date or Monthly
Servicing Payment Date.

         "DISTRIBUTION DATE" shall mean, with respect to each Collection Period,
the 30th day of March, June, September and December, or, if such day is not a
Business Day, the immediately preceding Business Day, commencing on
___________________, 200__.

         "ELIGIBLE LENDER" shall mean any "ELIGIBLE LENDER," as defined in the
Act, and which has received an eligible lender designation from the Secretary
with respect to Eligible Loans made under the Act.

         "ELIGIBLE LOAN" shall mean any loan made to finance post-secondary
education that is made under the Act.

         "ELIGIBLE LOAN ACQUISITION CERTIFICATE" shall mean a certificate signed
by an Authorized Representative of the Issuer in substantially the form attached
as Exhibit A hereto.

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

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

                                       11
<PAGE>

         "EVENT OF DEFAULT" shall have the meaning specified in Article VI
hereof.

         "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.

         "FINANCED" or "FINANCING" when used with respect to Eligible Loans,
shall mean or refer to Eligible Loans (a) acquired by the Issuer with balances
in the Acquisition Fund or otherwise deposited in or accounted for in the
Acquisition Fund or otherwise constituting a part of the Trust Estate and (b)
Eligible Loans substituted or exchanged for Financed Eligible Loans, but does
not include Eligible Loans released from the lien of this Indenture and sold or
transferred, to the extent permitted by this Indenture.

         "FISCAL YEAR" shall mean the fiscal year of the Issuer as established
from time to time.

         "FITCH" shall mean Fitch, Inc., its successors and assigns.

         "FUNDS" shall mean each of the Funds created pursuant to Section
5.01(a) and (b) hereof.

         "GUARANTEE" or "GUARANTEED" shall mean, with respect to an Eligible
Loan, the insurance or guarantee by the Guaranty Agency pursuant to such
Guaranty Agency's Guarantee Agreement of the maximum percentage of the principal
of and accrued interest on such Eligible Loan allowed by the terms of the Act
with respect to such Eligible Loan at the time it was originated and the
coverage of such Eligible Loan by the federal reimbursement contracts,
providing, among other things, for reimbursement to the Guaranty Agency for
payments made by it on defaulted Eligible Loans insured or guaranteed by the
Guaranty Agency of at least the minimum reimbursement allowed by the Act with
respect to a particular Eligible Loan.

         "GUARANTEE AGREEMENTS" shall mean a guaranty or lender agreement
between the Trustee and any Guaranty Agency, and any amendments thereto.

         "GUARANTY AGENCY" or "GUARANTOR" shall mean any entity authorized to
guarantee student loans under the Act and with which the Trustee maintains a
Guarantee Agreement.

         "HIGHEST PRIORITY OBLIGATIONS" shall mean at any time when Class A
Obligations are Outstanding, the Class A Obligations and at any time when no
Class A Obligations are Outstanding, the Class B Obligations.

                                       12
<PAGE>

         "INDENTURE" shall mean this Indenture of Trust, including all
supplements and amendments hereto.

         "INDEPENDENT" means, when used with respect to any specified Person,
that the Person (a) is in fact independent of the Trust, 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 Trust, any such other obligor, the Seller or any Affiliate of
any of the foregoing Persons; and (c) is not connected with the Trust, any such
other obligor, the Seller or any Affiliate of any of the foregoing Persons as an
officer, employee, promoter, underwriter, placement agent, trustee, partner,
director or person performing similar functions.

         "INDEPENDENT CERTIFICATE" means a certificate or opinion to be
delivered to the Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 9.01 of the Indenture,
made by an Independent appraiser or other expert appointed by an Issuer Order
and approved by the 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.

         "INITIAL POOL BALANCE" shall mean the Pool Balance as of the Cutoff
Date, which is $_______________.

         "INITIAL PRE-FUNDED AMOUNT" shall mean $________________.

         "INSURANCE" or "INSURED" or "INSURING" shall mean, with respect to an
Eligible Loan, the insuring by the Secretary (as evidenced by a Certificate of
Insurance or other document or certification issued under the provisions of the
Act) under the Act of 100% of the principal of and accrued interest on such
Eligible Loan.

         "INTEREST BENEFIT PAYMENT" shall mean an interest payment on Eligible
Loans received pursuant to the Act and an agreement with the federal government,
or any similar payments.

         "INVESTMENT AGREEMENT" shall mean, collectively, any investment
agreement approved by the Rating Agencies.

         "INVESTMENT SECURITIES" shall mean:

                  (a) direct obligations of, or obligations on which the timely
         payment of the principal of and interest on which are unconditionally
         and fully guaranteed by, the United States of America;

                  (b) interest-bearing time or demand deposits, certificates of
         deposit or other similar banking arrangements with a maturity of 12
         months or less with any bank, trust company, national banking
         association or other depository institution, including those of the
         Trustee, provided that, at the time of deposit or purchase such
         depository institution has commercial paper which is rated "A-1+" by
         S&P, "P-1" by Moody's and "F-1+" by Fitch;

                                       13
<PAGE>

                  (c) interest-bearing time or demand deposits, certificates of
         deposit or other similar banking arrangements with a maturity of 24
         months or less, but more than 12 months, with any bank, trust company,
         national banking association or other depository institution, including
         those of the Trustee and any of its affiliates, provided that, at the
         time of deposit or purchase such depository institution has senior debt
         rated "A" or higher by S&P, "P-1" or higher by Moody's and "A" or
         higher by Fitch, and, if commercial paper is outstanding, commercial
         paper which is rated "A-1+" by S&P, "P-1" by Moody's and "F-1+" by
         Fitch;

                  (d) interest-bearing time or demand deposits, certificates of
         deposit or other similar banking arrangements with a maturity of more
         than 24 months with any bank, trust company, national banking
         association or other depository institution, including those of the
         Trustee and any of its affiliates, provided that, at the time of
         deposit or purchase such depository institution has senior debt rated
         "AA" or higher by S&P, "Aa2" or higher by Moody's and "AA" or higher by
         Fitch and, if commercial paper is outstanding, commercial paper which
         is rated "A-1+" by S&P, "Aa2" by Moody's and "F-1+" by Fitch;

                  (e) bonds, debentures, notes or other evidences of
         indebtedness issued or guaranteed by any of the following agencies:
         Federal Farm Credit Banks, Federal Home Loan Mortgage Corporation; the
         Export-Import Bank of the United States; the Federal National Mortgage
         Association; the Student Loan Marketing Association; the Farmers Home
         Administration; Federal Home Loan Banks provided such obligation is
         rated "AAA" by S&P, "Aaa" by Moody's and "AAA" by Fitch; or any agency
         or instrumentality of the United States of America which shall be
         established for the purposes of acquiring the obligations of any of the
         foregoing or otherwise providing financing therefor;

                  (f) repurchase agreements and reverse repurchase agreements,
         other than overnight repurchase agreements and overnight reverse
         repurchase agreements, with banks, including the Trustee and any of its
         affiliates, which are members of the Federal Deposit Insurance
         Corporation or firms which are members of the Securities Investors
         Protection Corporation, in each case whose outstanding, unsecured debt
         securities are rated no lower than two subcategories below the highest
         rating on any series of Outstanding Notes by S&P, Moody's and Fitch
         and, if commercial paper is outstanding, commercial paper which is
         rated "A-1+" by S&P, "P-1" by Moody's and "F-1+" by Fitch;

                  (g) overnight repurchase agreements and overnight reverse
         repurchase agreements at least 101% collateralized by securities
         described in subparagraph (a) of this definition and with a
         counterparty, including the Trustee and any of its affiliates, that has
         senior debt rated "AA" or higher by S&P, "A2" or higher by Moody's, and
         "A" or higher by Fitch and, if commercial paper is outstanding,
         commercial paper which is rated "A-1+" by S&P, "P-1" by Moody's and
         "F-1+" by Fitch or a counterparty approved in writing by S&P, Moody's
         and Fitch, respectively;

                                       14
<PAGE>

                  (h) investment agreements or guaranteed investment contracts,
         which may be entered into by and among the Issuer and/or the Trustee
         and any bank, bank holding company, corporation or any other financial
         institution, including the Trustee and any of its affiliates, whose
         outstanding (i) commercial paper is rated "A-1+" by S&P, "Aa3" by
         Moody's and "F-1+" by Fitch for agreements or contracts with a maturity
         of 12 months or less; (ii) unsecured long-term debt is rated no lower
         than two subcategories below the highest rating on any series of
         Outstanding Notes by S&P, Moody's and Fitch and, if commercial paper is
         outstanding, commercial paper which is rated "A-1+" by S&P, "Aa1" by
         Moody's and "F-1+" by Fitch for agreements or contracts with a maturity
         of 24 months or less, but more than 12 months, or (iii) unsecured
         long-term debt which is rated no lower than two subcategories below the
         highest rating on any series of Outstanding Notes by S&P, Moody's and
         Fitch and, if commercial paper is outstanding, commercial paper which
         is rated "A-1+" by S&P, "Aa1" by Moody's and "F-1+" by Fitch for
         agreements or contracts with a maturity of more than 24 months, or, in
         each case, by an insurance company whose claims-paying ability is so
         rated;

                  (i) "tax exempt bonds" as defined in Section 150(a)(6) of the
         Code, other than "specified private activity bonds" as defined in
         Section 57(a)(5)(C) of the Code, that are rated in the highest category
         by S&P, Moody's and Fitch for long-term or short-term debt or shares of
         a so-called money market or mutual fund rated "AAAm/AAAm-G" or higher
         by S&P, "Aaa" or higher by Moody's, and "AA/F1+" or higher by Fitch,
         that do not constitute "investment property" within the meaning of
         Section 148(b)(2) of the Code, provided that the fund has all of its
         assets invested in obligations of such rating quality;

                  (j) commercial paper, including that of the Trustee and any of
         its affiliates, which is rated in the single highest classification,
         "A-1+" by S&P, "P-1" by Moody's and "F-1+" by Fitch, and which matures
         not more than 270 days after the date of purchase;

                  (k) investments in a money market fund rated at least "AAAm"
         or "AAAm-G" by S&P, "Aaa" by Moody's and "AA" or "F-1+" by Fitch,
         including funds for which the Trustee or an affiliate thereof acts as
         investment advisor or provides other similar services for a fee;

                  (l) any Investment Agreement; and

                  (m) any other investment with a Rating Confirmation from each
         Rating Agency.

         "ISDA MASTER AGREEMENT" shall mean the ISDA Interest Rate and Currency
Exchange Agreement, copyright 1992, as amended from time to time, and as in
effect with respect to any Derivative Product.

         "ISSUER" shall mean Nelnet Student Loan Trust ______, a business trust
organized and existing under the laws of the State, and any successor thereto.

         "ISSUER ORDER" shall mean a written order signed in the name of the
Issuer by an Authorized Representative.

                                       15
<PAGE>

         "ISSUER DERIVATIVE PAYMENT" shall mean, collectively the Derivative
Product Fees and the Derivative Product Payments required to be made by or on
behalf of the Issuer due to a Counterparty pursuant to a Derivative Product.

         "LIBOR DETERMINATION DATE" shall mean, for each Accrual Period, the
second business day before the beginning of that Accrual Period.

         "LIQUIDATED FINANCED ELIGIBLE LOAN" shall mean any defaulted Financed
Eligible Loan liquidated by the Servicer (which shall not include any Financed
Eligible Loan on which payments are received from a Guaranty Agency) or which
the Servicer has, after using all reasonable efforts to realize upon such
Financed Eligible Loan, determined to charge off.

         "LIQUIDATION PROCEEDS" shall mean, with respect to any Liquidated
Financed Eligible Loan which became a Liquidated Financed Eligible Loan during
the current Collection Period in accordance with the Servicer's customary
servicing procedures, the moneys collected in respect of the liquidation thereof
from whatever source, other than moneys collected with respect to any Liquidated
Financed Eligible Loan which was written off in prior Collection Periods or
during the current Collection Period, net of the sum of any amounts expended by
the Servicer in connection with such liquidation and any amounts required by law
to be remitted to the obligor on such Liquidated Financed Eligible Loan.

         "MASTER PROMISSORY NOTE" shall mean a Master Promissory Note in the
form mandated by Section 432(m)(1) of the Higher Education Act, as added by Pub.
L. 105-244ss.427, 112 Stat. 1702 (1998), as amended by Public Law No: 106-554
(enacted December 21, 2000) and as codified in 20 U.S.C.ss.1082(m)(1).

         "MPN LOAN" shall mean a loan originated pursuant to the Federal Family
Education Loan Program and the Act and evidenced by a Master Promissory Note.

         "MATURITY" when used with respect to any Note, shall mean the date on
which the principal thereof becomes due and payable as therein or herein
provided, whether at its Note Final Maturity Date, by earlier redemption, by
declaration of acceleration, or otherwise.

         "MINIMUM PURCHASE AMOUNT" shall mean, on any Distribution Date, an
amount that would be sufficient to (a) reduce the Outstanding Amount of each
class of Notes on such Distribution Date to zero; and (b) pay to the respective
Registered Owners the Class A Noteholders' Interest Distribution Amount and the
Class B Noteholders' Interest Distribution Amount payable on such Distribution
Date.

                                       16
<PAGE>

         "MONTHLY SERVICING PAYMENT DATE" shall mean the thirtieth day of each
calendar month (except for the month of February, in which case it shall mean
the twenty-eighth day of such month) or, if such day is not a Business Day, the
immediately preceding Business Day, commencing on May 30, 2002.

         "MOODY'S" shall mean Moody's Investors Service, its successors and
assigns.

         "NOTEHOLDER" shall mean, (i) 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); and (ii) with respect to Notes held in definitive form pursuant to
Section 2.09 hereof, the Person in whose name a Note is registered in the Note
registration books of the Trustee..

         "NOTE FINAL MATURITY DATE" for a class of Notes shall mean the Class
A-1 Maturity Date, the Class A-2 Maturity Date or the Class B Maturity Date, as
applicable.

         "NOTE POOL FACTOR" as of the close of business on a Distribution Date
means a seven-digit decimal figure equal to the outstanding principal balance of
a class of Notes divided by the original outstanding principal balance of such
class of Notes. The Note Pool Factor for each class will be 1.0000000 as of the
Closing Date; thereafter, the Note Pool Factor for each class will decline to
reflect reductions in the outstanding principal balance of that class of Notes.

         "NOTE RATES" shall mean, with respect to any Accrual Period, the Class
A-1 Rate, the Class A-2 Rate and the Class B Rate for such Accrual Period,
respectively.

         "NOTES" shall mean, collectively, the Class A Notes and the Class B
Notes.

         "OBLIGATIONS" shall mean Class A Obligations and Class B Obligations.

         "OFFICERS' CERTIFICATE" means (a) in the case of the Trust, a
certificate signed by any two Authorized Officers of the Delaware Trustee, under
the circumstances described in, and otherwise complying with, the applicable
requirements of Section 9.01 of the Indenture; and (b) in the case of the
Seller, the Administrator or the Servicer, a certificate signed by any two
Authorized Officers of the Seller, the Administrator or the Servicer, as
applicable.

         "ONE-MONTH LIBOR."  See "Three-Month LIBOR," below.

         "OPINION OF COUNSEL" means (a) with respect to the Trust, one or more
written opinions of counsel who may, except as otherwise expressly provided in
the Indenture, be employees of or counsel to the Delaware Trustee, the Trust,
the Seller or an Affiliate of the Seller and who shall be satisfactory to the
Trustee, and which opinion or opinions shall be addressed to the Trustee as
Trustee, shall comply with any applicable requirements of Section 9.01 of this
Indenture and shall be in form and substance satisfactory to the Trustee; and
(b) with respect to the Seller, the Administrator or the Servicer, one or more
written opinions of counsel who may be an employee of or counsel to the Seller,
the Administrator or the Servicer, which counsel shall be acceptable to the
Trustee and the Delaware Trustee.

                                       17
<PAGE>

         "OUTSTANDING" shall mean, when used in connection with any Note, a Note
which has been executed and delivered pursuant to this Indenture which at such
time remains unpaid as to principal or interest, when used in connection with a
Derivative Product, a Derivative Product which has not expired or been
terminated, unless provision has been made for such payment pursuant to Section
10.02 hereof, excluding Notes which have been replaced pursuant to Section 2.03
hereof.

         "OUTSTANDING AMOUNT" shall mean the aggregate principal amount of all
Notes Outstanding at the date of determination.

         "PERSON" shall mean an individual, corporation, partnership, joint
venture, association, joint stock company, trust, limited liability company,
unincorporated organization, or government or agency or political subdivision
thereof.

         "POOL BALANCE" shall mean as of any date the aggregate principal
balance of the Financed Eligible Loans on such date (including accrued interest
thereon to the extent such interest is expected to be capitalized), after giving
effect to the following, without duplication: (a) all payments received by the
Issuer through such date from or on behalf of obligors on such Financed Eligible
Loans; (b) the balance in the Pre-Funding Account, if any; (c) all Purchase
Amounts on Financed Eligible Loans received by the Issuer through such date from
the Seller or the Servicer; (d) all Liquidation Proceeds and Realized Losses on
Financed Eligible Loans liquidated through such date; (e) the aggregate amount
of adjustments to balances of Financed Eligible Loans permitted to be effected
by the Servicer under the Servicing Agreement, if any, recorded through such
date; and (f) the aggregate amount by which reimbursements by Guarantors of the
unpaid principal balance of defaulted Financed Eligible Loans through such date
are reduced from 100% to 98% or other applicable percentage, as required by the
risk sharing provisions of the Act. The Pool Balance shall be calculated by the
Administrator and certified to the Trustee, upon which the Trustee may
conclusively rely with no duty to further examine or determine such information.

         "PRE-FUNDING ACCOUNT" shall mean the Account by such name created in
the Acquisition Fund.

         "PRE-FUNDING PERIOD" shall mean the period beginning on the Date of
Issuance and ending on __________, 200__ or such earlier date as the Issuer may
determine by Issuer Order.

         "PRINCIPAL DISTRIBUTION AMOUNT" shall mean, (a) with respect to the
initial Distribution Date, the amount by which the sum of the Outstanding Amount
of the Notes exceeds the Adjusted Pool Balance as of the last day of the related
Collection Period; and (b) with respect to each subsequent Distribution Date,
the Adjusted Pool Balance as of the last day of the Collection Period preceding
the related Collection Period less the Adjusted Pool Balance as of the last day
of the related Collection Period.

         "PRINCIPAL OFFICE" shall mean the principal office of the party
indicated, as set forth in Section 9.01 hereof or elsewhere in this Indenture.

                                       18
<PAGE>

         "PROGRAM" shall mean the Sponsor's program for the origination and the
purchase of Eligible Loans, as the same may be modified from time to time.

         "PURCHASE AMOUNT" with respect to any Financed Eligible Loan shall mean
the amount required to prepay in full such Financed Eligible Loan under the
terms thereof including all accrued interest thereon.

         "RATING" shall mean one of the rating categories of Fitch, Moody's and
S&P or any other Rating Agency, provided Fitch, Moody's and S&P or any other
Rating Agency, as the case may be, is currently rating the Notes.

         "RATING AGENCY" shall mean, collectively, Fitch, Moody's and S&P and
their successors and assigns or any other Rating Agency requested by the Issuer
to maintain a Rating on any of the Notes.

         "RATING CONFIRMATION" shall mean a letter from each Rating Agency then
providing a Rating for any of the Notes, confirming that the action proposed to
be taken by the Issuer will not, in and of itself, result in a downgrade of any
of the Ratings then applicable to the Notes, or cause any Rating Agency to
suspend or withdraw the Ratings then applicable to the Notes.

         "RECORD DATE" shall mean, with respect to a Distribution Date, the
close of business on the day preceding such Distribution Date.

         "REFERENCE BANKS" shall mean four major banks in the London interbank
market selected by the Administrator.

         "REGISTERED OWNER" shall mean any Noteholder, and, with respect to a
Derivative Product, any Counterparty, unless the context otherwise requires.

         "REGULATIONS" shall mean the Regulations promulgated from time to time
by the Secretary or any Guaranty Agency guaranteeing Financed Eligible Loans.

         "RESERVE FUND" shall mean the Fund by that name created in Section
5.01(c) hereof and further described in Section 5.04 hereof, including any
Accounts and Subaccounts created therein.

         "REVENUE" or "REVENUES" shall mean all payments, proceeds, charges,
Liquidation Proceeds and other amount received by the Trustee or the Issuer from
or on account of any Financed Eligible Loan (including scheduled, delinquent and
advance payments of and any insurance proceeds with respect to, interest,
including Interest Benefit Payments, on any Financed Eligible Loan and any
Special Allowance Payment received by the Issuer with respect to any Financed
Eligible Loan) and all interest earned or gain realized from the investment of
amounts in any Fund or Account and all payments received by the Issuer pursuant
to a Derivative Product.

         "S&P" shall mean Standard & Poor's Ratings Group, a Division of The
McGraw-Hill Companies, Inc., its successors and assigns.

         "SECRETARY" shall mean the Secretary of the United States Department of
Education or any successor to the pertinent functions thereof under the Act.

                                       19
<PAGE>

         "SECURITIES ACT" shall mean the Securities Act of 1933, as amended.

         "SECURITIES DEPOSITORY" or "DEPOSITORY" shall mean The Depository Trust
and Clearing Corporation and its successors and assigns or if, (a) the then
Securities Depository resigns from its functions as depository of the Notes or
(b) the Issuer discontinues use of the Securities Depository, any other
securities depository which agrees to follow the procedures required to be
followed by a securities depository in connection with the Notes and which is
selected by the Issuer with the consent of the Trustee.

         "SELLER" shall mean Nelnet Student Loan Funding, LLC, and its
successors and assigns.

         "SERVICER" shall mean NELnet, Inc. and any other additional servicer or
successor servicer or subservicer selected by the Issuer, including an affiliate
of the Issuer, so long as the Issuer obtains a Rating Confirmation as to each
such other servicer or subservicer.

         "SERVICING AGREEMENT" shall mean the Servicing Agreement dated as of
________, 200__, by and among the Issuer, the Servicer and Administrator.

         "SERVICING FEE" shall mean the fees and expenses due to the Servicer
under the terms of the Servicing Agreement and the fees and expenses due to any
custodian under the terms of a Custodian Agreement.

         "SPECIAL ALLOWANCE PAYMENTS" shall mean the special allowance payments
authorized to be made by the Secretary by Section 438 of the Act, or similar
allowances, if any, authorized from time to time by federal law or regulation.

         "SPECIFIED RESERVE FUND BALANCE" shall mean, with respect to any
Distribution Date, the greater of (a) 0.25% of the Pool Balance as of the close
of business on the last day of the related Collection Period; and (b)
$_______________; provided that in no event will such balance exceed the sum of
the outstanding principal amount of the Notes.

         "SPONSOR" shall mean Nelnet Student Loan Funding, LLC, and its
successors and assigns and any other Person or Persons as may become a Sponsor
pursuant to the terms of the Trust Agreement.

         "STATE" shall mean the State of Delaware.

         "STUDENT LOAN PURCHASE AGREEMENT" shall mean, collectively, (i) the
Student Loan Purchase Agreement dated as of _________, 200__ between the Issuer
and the Seller and (ii) each additional student loan purchase agreement entered
into between the Issuer and the Seller for the purchase of Eligible Loans during
the Pre-Funding Period.

         "SUBACCOUNT" shall mean any of the subaccounts which may be created and
established within any Account by this Indenture.

         "SUPPLEMENTAL INDENTURE" shall mean an agreement supplemental hereto
executed pursuant to Article VIII hereof.

                                       20
<PAGE>

         "TELERATE PAGE 3750" shall mean the display page so designated on the
Telerate Service (or such other page as may replace that page on that service
for the purpose of displaying comparable rates or prices).

         "THREE-MONTH LIBOR," "ONE-MONTH LIBOR" and "TWO-MONTH LIBOR" shall
mean, with respect to any Accrual Period, the London interbank offered rate for
deposits in U.S. dollars having the Index Maturity which appears on Telerate
Page 3750 as of 11:00 a.m., London time, on the related LIBOR Determination
Date. If this 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 that 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 Reference Bank to provide a quotation of its rate. If the Reference Banks
provide at least two quotations, the rate for that day will be the arithmetic
mean of the quotations. If the Reference Banks provide fewer than two
quotations, 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 time, on that LIBOR Determination Date, for
loans in U.S. dollars to leading European banks having the Index Maturity and in
a principal amount of not less than U.S. $1,000,000. If the banks selected as
described above are not providing quotations, Three-Month LIBOR in effect for
the applicable Accrual Period will be Three-Month LIBOR in effect for the
previous Accrual Period.

         "TRUST" shall mean the Nelnet Student Loan Trust __________.

         "TRUST ESTATE" shall mean the property described as such in the
granting clauses hereto.

         "TRUST AGREEMENT" shall mean the Trust Agreement dated as of _________,
200__ by and between the Sponsor and the Delaware Trustee, as may be amended
pursuant to the terms thereof.

         "TRUST INDENTURE ACT" or "TIA" shall mean the Trust Indenture Act of
1939, as amended, and as in force at the date as of which this Indenture was
executed, except as provided in Section 8.05.

         "TRUSTEE" shall mean ____________________________, acting in its
capacity as Trustee and eligible lender trustee under this Indenture, or any
successor trustee designated pursuant to this Indenture.

         "TRUSTEE FEE" shall mean an amount equal to ____% per annum.

         "TWO-MONTH LIBOR."  See "Three-Month LIBOR" above.

         Words importing the masculine gender include the feminine gender, and
words importing the feminine gender include the masculine gender. Words
importing persons include firms, associations and corporations. Words importing
the singular number include the plural number and vice versa. Additional terms
are defined in the body of this Indenture.

                                       21
<PAGE>

                                   ARTICLE II

                NOTE DETAILS, FORM OF NOTES, REDEMPTION OF NOTES
                          AND USE OF PROCEEDS OF NOTES

SECTION 2.01. NOTE DETAILS. The Notes, together with the Trustee's certificate
of authentication, shall be in substantially the forms set forth in Exhibit B,
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture and may have such letters,
numbers or other marks of identification and such legends or endorsements placed
thereon as may, consistently herewith, be determined by the officers executing
the Notes, as evidenced by their execution of the Notes. Any portion of the text
of any Note may be set forth on the reverse thereof, with an appropriate
reference thereto on the face of the Note.

         The definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the Authorized Representatives executing
such Notes, as evidenced by their execution of such Notes.

         Each Note shall be dated the date of its authentication. The terms of
the Notes set forth in Exhibit B are part of the terms of this Indenture.

         SECTION 2.02. EXECUTION, AUTHENTICATION AND DELIVERY OF NOTES. The
Notes shall be executed in the name and on behalf of the Issuer by the manual or
facsimile signature of an Authorized Representative. Any Note may be signed
(manually or by facsimile) or attested on behalf of the Issuer by any Person
who, at the date of such act, shall hold the proper office or position ,
notwithstanding that at the date of authentication, issuance or delivery, such
person may have ceased to hold such office or position.

         The Trustee shall upon Issuer Order authenticate and deliver Notes for
original issue in an aggregate principal amount of $_______________. The
aggregate principal amount of Notes outstanding at any time may not exceed such
amount except as provided in Section 2.04 hereof. The Trustee shall furnish an
Officer's Certificate of the Trust complying with the requirements of Section
9.01 of this Indenture, stating that all conditions precedent provided in this
Indenture relating to the authentication and delivery of the Notes have been
complied with, and any other statements therein required by a person signing an
Officer's Certificate by TIA Section 314(c).

         Each Note shall be dated the date of its authentication. The Notes
shall be issuable as registered Notes in the minimum denomination of $1,000 and
in integral multiples of $1,000 in excess thereof.

         No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form provided for in Section
2.05 hereof.

                                       22
<PAGE>

         SECTION 2.03. REGISTRATION, TRANSFER AND EXCHANGE OF NOTES; PERSONS
TREATED AS REGISTERED OWNERS. The Issuer shall cause books for the registration
and for the transfer of the Notes as provided in this Indenture to be kept by
the Trustee which is hereby appointed the transfer agent of the Issuer for the
Notes. Notwithstanding such appointment and with the prior written consent of
the Issuer, the Trustee is hereby authorized to make any arrangements with other
institutions which it deems necessary or desirable in order that such
institutions may perform the duties of transfer agent for the Notes. Upon
surrender for transfer of any Note at the Principal Office of the Trustee, duly
endorsed for transfer or accompanied by an assignment duly executed by the
Registered Owner or his attorney duly authorized in writing, the Issuer shall
execute and the Trustee shall authenticate and deliver in the name of the
transferee or transferees a new fully registered Note or Notes of the same
interest rate and for a like series, subseries, if any, and aggregate principal
amount of the same maturity.

         Notes may be exchanged at the Principal Office of the Trustee for a
like aggregate principal amount of fully registered Notes of the same series,
subseries, if any, interest rate and maturity in authorized denominations. The
Issuer shall execute and the Trustee shall authenticate and deliver Notes which
the Registered Owner making the exchange is entitled to receive, bearing numbers
not contemporaneously outstanding. The execution by the Issuer of any fully
registered Note of any authorized denomination shall constitute full and due
authorization of such denomination and the Trustee shall thereby be authorized
to authenticate and deliver such fully registered Note.

         The Trustee shall not be required to transfer or exchange any Note
during the period of 15 business days next preceding the mailing of notice of
redemption as herein provided. After the giving of such notice of redemption,
the Trustee shall not be required to transfer or exchange any Note, which Note
or portion thereof has been called for redemption.

         As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as hereinabove
provided. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

         Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan or (b) (i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

         The Trustee shall require the payment by any Registered Owner
requesting exchange or transfer of any tax or other governmental charge required
to be paid with respect to such exchange or transfer. The applicant for any such
transfer or exchange may be required to pay all taxes and governmental charges
in connection with such transfer or exchange, other than exchanges pursuant to
Section 2.07 hereof.

                                       23
<PAGE>

         SECTION 2.04. LOST, STOLEN, DESTROYED AND MUTILATED NOTES. Upon receipt
by the Trustee of evidence satisfactory to it of the ownership of and the loss,
theft, destruction or mutilation of any Note and, in the case of a lost, stolen
or destroyed Note, of indemnity satisfactory to it, and upon surrender and
cancellation of the Note, if mutilated, (a) the Issuer shall execute, and the
Trustee shall authenticate and deliver, a replacement Note of the same interest
rate, maturity and denomination in lieu of such lost, stolen, destroyed or
mutilated Note or (b) if such lost, stolen, destroyed or mutilated Note shall
have matured or have been called for redemption or shall within 15 days be due
and payable, in lieu of executing and delivering a new Note as aforesaid, the
Issuer may pay such Note. Any such new Note shall bear a number not
contemporaneously outstanding. The applicant for any such new Note may be
required to pay all taxes and governmental charges and all expenses and charges
of the Issuer and of the Trustee in connection with the issuance of such Note.
All Notes shall be held and owned upon the express condition that, to the extent
permitted by law, the foregoing conditions are exclusive with respect to the
replacement and payment of mutilated, destroyed, lost or stolen Notes,
negotiable instruments or other securities.

         SECTION 2.05. TRUSTEE'S AUTHENTICATION CERTIFICATE. The Trustee's
authentication certificate upon any Notes shall be substantially in the form
attached to the Notes. No Note shall be secured hereby or entitled to the
benefit hereof, or shall be valid or obligatory for any purpose, unless a
certificate of authentication, substantially in such form, has been duly
executed by the Trustee; and such certificate of the Trustee upon any Note shall
be conclusive evidence and the only competent evidence that such Note has been
authenticated and delivered hereunder. The Trustee's certificate of
authentication shall be deemed to have been duly executed by it if manually
signed by an authorized officer or signatory of the Trustee, but it shall not be
necessary that the same person sign the certificate of authentication on all of
the Notes issued hereunder.

         SECTION 2.06. CANCELLATION AND DESTRUCTION OF NOTES BY THE TRUSTEE.
Whenever any Outstanding Notes shall be delivered to the Trustee for the
cancellation thereof pursuant to this Indenture, upon payment of the principal
amount and interest represented thereby, or for replacement pursuant to Section
2.03 hereof, such Notes shall be promptly cancelled and, within a reasonable
time, cremated or otherwise destroyed by the Trustee and counterparts of a
certificate of destruction evidencing such cremation or other destruction shall
be furnished by the Trustee to the Issuer.

         SECTION 2.07. TEMPORARY NOTES. Pending the preparation of definitive
Notes, the Issuer may execute and the Trustee shall authenticate and deliver
temporary Notes. Temporary Notes shall be issuable as fully registered Notes
without coupons, of any denomination, and substantially in the form of the
definitive Notes but with such omissions, insertions and variations as may be
appropriate for temporary Notes, all as may be determined by the Issuer. Every
temporary Note shall be executed by the Issuer and be authenticated by the
Trustee upon the same conditions and in substantially the same manner, and with
like effect, as the definitive Notes. As promptly as practicable the Issuer
shall execute and shall furnish definitive Notes and thereupon temporary Notes
may be surrendered in exchange therefor without charge at the principal office
of the Trustee, and the Trustee shall authenticate and deliver in exchange for
such temporary Notes a like aggregate principal amount of definitive Notes.
Until so exchanged the temporary Notes shall be entitled to the same benefits
under this Indenture as definitive Notes.

                                       24
<PAGE>

         SECTION 2.08. ISSUANCE OF NOTES. The Issuer shall have the authority,
upon complying with the provisions of this Section, to issue and deliver the
Notes which shall be secured by the Trust Estate. In addition, the Issuer may
enter into any Derivative Products it deems necessary or desirable with respect
to any or all of the Notes.

         SECTION 2.09. DEFINITIVE NOTES. If (a) the Administrator advises the
Trustee in writing that the Clearing Agency is no longer willing or able to
discharge its responsibilities with respect to the Notes, and the Administrator
is unable to locate a successor; (b) the Administrator at its option advises the
Trustee in writing that it elects to terminate the book-entry system through the
Clearing Agency; or (c) after the occurrence of an Event of Default, or a
default by the Servicer or the Administrator under the Servicing Agreement or
the Administrative Services Agreement, respectively, Noteholders representing
beneficial interests aggregating at least a majority of the Outstanding Amount
of the Notes advise the Clearing Agency (which shall then notify the Trustee) in
writing that the continuation of a book-entry system through the Clearing Agency
is no longer in the best interests of the Noteholders, then the Trustee shall
cause the Clearing Agency to notify all Noteholders, through the Clearing
Agency, of the occurrence of any such event and of the availability of
definitive Notes to Noteholders requesting the same. Upon surrender to the
Trustee of the typewritten Notes representing the book-entry Notes by the
Clearing Agency, accompanied by registration instructions, the Issuer shall
execute and the Trustee shall authenticate the definitive Notes in accordance
with the instructions of the Clearing Agency. None of the Issuer, the Note
Registrar or the Trustee shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be protected in relying on,
such instructions. Upon the issuance of definitive Notes, the Trustee shall
recognize the holders of the definitive Notes as Registered Owners.

         SECTION 2.10. PAYMENT OF PRINCIPAL AND INTEREST.

                  (a) The Notes shall accrue interest as provided in the forms
         of Notes set forth in Exhibit B, and such interest shall be payable on
         each Distribution Date as specified therein, subject to Section 4.01
         hereof. Any installment of interest or principal, if any, payable on
         any Note which is punctually paid or duly provided for by the Issuer on
         the applicable Distribution Date shall be paid to the Person in whose
         name such Note is registered on the Record Date by check mailed
         first-class, postage prepaid to such Person's address as it appears on
         the records of the Trustee on such Record Date, except that, unless
         definitive Notes have been issued pursuant to Section 2.09, with
         respect to Notes registered on the Record Date in the name of the
         nominee of the Clearing Agency (initially, such nominee to be Cede &
         Co.), payment shall be made by wire transfer in immediately available
         funds to the account designated by such nominee and except for the
         final installment of principal payable with respect to such Note on a
         Distribution Date or on the Note Final Maturity Date for such Note
         which shall be payable as provided below.

                  (b) The principal of each Note shall be payable in
         installments on each Distribution Date as provided in the forms of Note
         set forth in Exhibit B. Notwithstanding the foregoing, the entire
         unpaid principal amount of each class of the Notes shall be due and
         payable, if not previously paid, on the Note Final Maturity Date for
         such class of Notes and on the date on which an Event of Default shall
         have occurred and be continuing if the Trustee or the Registered Owners

                                       25
<PAGE>

         of the Notes representing not less than a majority of the Outstanding
         Amount of the Notes have declared the Notes to be immediately due and
         payable in the manner provided in Section 6.02. All principal payments
         on the Notes shall be made pro rata to the Registered Owners entitled
         thereto, subject, however, to the last paragraph of Section 5.03
         hereof. The Trustee shall notify the Person in whose name a Note is
         registered at the close of business on the Record Date preceding the
         Distribution Date on which the Issuer expects that the final
         installment of principal of and interest on such Note will be paid.
         Such notice shall be mailed or transmitted by facsimile prior to such
         final Distribution Date and shall specify that such final installment
         will be payable only upon presentation and surrender of such Note and
         shall specify the place where such Note may be presented and
         surrendered for payment of such installment.

                                  ARTICLE III

                 PARITY AND PRIORITY OF LIEN; OTHER OBLIGATIONS;
                             AND DERIVATIVE PRODUCTS

         SECTION 3.01. PARITY AND PRIORITY OF LIEN. The provisions, covenants
and agreements herein set forth to be performed by or on behalf of the Issuer
shall be for the equal benefit, protection and security of the Registered Owners
of any and all of the Obligations, all of which, shall be of equal rank without
preference, priority or distinction of any of the Obligations over any other
thereof, except as expressly provided in this Indenture with respect to certain
payment and other priorities.

         SECTION 3.02. OTHER OBLIGATIONS. The Revenues and other moneys,
Financed Eligible Loans, securities, evidences of indebtedness, interests,
rights and properties pledged under this Indenture are and will be owned by the
Issuer free and clear of any pledge, lien, charge or encumbrance thereon or with
respect thereto prior to, of equal rank with or subordinate to the respective
pledges created by this Indenture, except as otherwise expressly provided
herein, and all action on the part of the Issuer to that end has been duly and
validly taken. If any Financed Eligible Loan is found to have been subject to a
lien at the time such Financed Eligible Loan was acquired, the Issuer shall

                                       26
<PAGE>

cause such lien to be released, shall purchase such Financed Eligible Loan from
the Trust Estate for a purchase price equal to its principal amount plus any
unamortized premium, if any, and interest accrued thereon or shall replace such
Financed Eligible Loan with another Eligible Loan with substantially identical
characteristics which replacement Eligible Loan shall be free and clear of liens
at the time of such replacement. Except as otherwise provided herein, the Issuer
shall not create or voluntarily permit to be created any debt, lien, or charge
on the Financed Eligible Loans which would be on a parity with, subordinate to,
or prior to the lien of this Indenture; shall not do or omit to do or suffer to
be done or omitted to be done any matter or things whatsoever whereby the lien
of this Indenture or the priority of such lien for the Obligations hereby
secured might or could be lost or impaired; and will pay or cause to be paid or
will make adequate provisions for the satisfaction and discharge of all lawful
claims and demands which if unpaid might by law be given precedence to or any
equality with this Indenture as a lien or charge upon the Financed Eligible
Loans; provided, however, that nothing in this subsection (c) shall require the
Issuer to pay, discharge, or make provision for any such lien, charge, claim, or
demand so long as the validity thereof shall be by it in good faith contested,
unless thereby, in the opinion of the Trustee, the same will endanger the
security for the Obligations; and provided further that any subordinate lien
hereon (i.e., subordinate to the lien securing the Class A Obligations and the
Class B Obligations) shall be entitled to no payment from the Trust Estate, nor
may any remedy be exercised with respect to such subordinate lien against the
Trust Estate until all Obligations have been paid or deemed paid hereunder.

         SECTION 3.03. DERIVATIVE PRODUCTS; COUNTERPARTY PAYMENTS; ISSUER
DERIVATIVE PAYMENTS. The Issuer hereby authorizes and directs the Trustee to
acknowledge and agree to any Derivative Product hereafter entered into by the
Issuer and a Counterparty under which (a) the Issuer may be required to make,
from time to time, Issuer Derivative Payments and (b) the Trustee may receive,
from time to time, Counterparty Payments for the account of the Issuer. No
Derivative Product shall be entered into unless the Trustee shall have received
a Rating Confirmation from each Rating Agency that such Derivative Product will
not adversely affect the Rating on any of the Notes.

                                   ARTICLE IV

                       PROVISIONS APPLICABLE TO THE NOTES;
                              DUTIES OF THE ISSUER

         SECTION 4.01. PAYMENT OF PRINCIPAL AND INTEREST. The Issuer covenants
that it will promptly pay, but solely from the Trust Estate, the principal of
and interest, if any, on each and every Obligation issued under the provisions
of this Indenture at the places, on the dates and in the manner specified herein
and in said Obligations according to the true intent and meaning thereof. The
Obligations shall be and are hereby declared to be payable from and equally
secured by an irrevocable first lien on and pledge of the properties
constituting the Trust Estate, subject to the application thereof as permitted
by this Indenture, but in no event shall the Registered Owners or any
Counterparty have any right to possession or control of any Financed Eligible
Loans, which shall be held only by the Trustee or its agent or bailee.

                                       27
<PAGE>

         SECTION 4.02. COVENANTS AS TO ADDITIONAL CONVEYANCES. At any and all
times, the Issuer will duly execute, acknowledge, and deliver, or will cause to
be done, executed, and delivered, all and every such further acts, conveyances,
transfers, and assurances in law as the Trustee shall reasonably require for the
better conveying, transferring, and pledging and confirming unto the Trustee,
all and singular, the properties constituting the Trust Estate hereby
transferred and pledged, or intended so to be transferred and pledged.

         SECTION 4.03. FURTHER COVENANTS OF THE ISSUER

                  (a) The Issuer will cause financing statements and
         continuation statements with respect thereto at all times to be filed
         in the office of the Secretary of State of the State and any other
         jurisdiction necessary to perfect and maintain the security interest
         granted by the Issuer hereunder.

                  (b) The Issuer will duly and punctually keep, observe and
         perform each and every term, covenant, and condition on its part to be
         kept, observed, and performed, contained in this Indenture and the
         other agreements to which the Issuer is a party pursuant to the
         transactions contemplated herein, including but not limited to the
         Basic Documents, and will punctually perform all duties required by the
         Trust Agreement and the laws of the State.

                  (c) The Issuer shall be operated on the basis of its Fiscal
         Year.

                  (d) The Issuer shall cause to be kept full and proper books of
         records and accounts, in which full, true, and proper entries will be
         made of all dealings, business, and affairs of the Issuer which relate
         to the Notes and any Derivative Product.

                  (e) The Issuer, upon written request of the Trustee, will
         permit at all reasonable times the Trustee or its agents, accountants,
         and attorneys, to examine and inspect the property, books of account,
         records, reports, and other data relating to the Financed Eligible
         Loans, and will furnish the Trustee such other information as it may
         reasonably request. The Trustee shall be under no duty to make any such
         examination unless requested in writing to do so by the Registered
         Owners of 66% in collective aggregate principal amount of the Notes at
         the time Outstanding, and unless such Registered Owners shall have
         offered the Trustee security and indemnity satisfactory to it against
         any costs, expenses and liabilities which might be incurred thereby.

                  (f) The Issuer shall cause an annual audit to be made by an
         independent auditing firm of national reputation and file one copy
         thereof with the Trustee and each Rating Agency within 150 days of the
         close of each Fiscal Year. The Trustee shall be under no obligation to
         review or otherwise analyze such audit.

                  (g) The Issuer covenants that all Financed Eligible Loans upon
         receipt thereof shall be delivered to the Trustee or its agent or
         bailee to be held pursuant to this Indenture and pursuant to the
         Servicing Agreement or a Custodian Agreement.

                                       28
<PAGE>

                  (h) Notwithstanding anything to the contrary contained herein,
         except upon the occurrence and during the continuance of an Event of
         Default hereunder, the Issuer hereby expressly reserves and retains the
         privilege to receive and, subject to the terms and provisions of this
         Indenture, to keep or dispose of, claim, bring suits upon or otherwise
         exercise, enforce or realize upon its rights and interest in and to the
         Financed Eligible Loans and the proceeds and collections therefrom, and
         neither the Trustee nor any Registered Owner shall in any manner be or
         be deemed to be an indispensable party to the exercise of any such
         privilege, claim or suit and the Trustee shall be under no obligation
         whatsoever to exercise any such privilege, claim or suit; provided,
         however, that the Trustee shall have and retain possession or control
         of the Financed Eligible Loans pursuant to Section 5.02 hereof (which
         Financed Eligible Loans may be held by the Trustee's agent or bailee)
         so long as such loans are subject to the lien of this Indenture.

                  (i) The Issuer shall notify the Trustee and each Rating Agency
         in writing prior to entering into any Derivative Product.

         SECTION 4.04. ENFORCEMENT OF SERVICING AGREEMENTS. The Issuer shall
comply with and shall require the Servicer to comply with the following whether
or not the Issuer is otherwise in default under this Indenture:

                  (a) cause to be diligently enforced and taken all reasonable
         steps, actions and proceedings necessary for the enforcement of all
         terms, covenants and conditions of all Servicing Agreements, including
         the prompt payment of all amounts due the Issuer thereunder, including
         without limitation all principal and interest payments, and Guarantee
         payments which relate to any Financed Eligible Loans and cause the
         Servicer to specify whether payments received by it represent principal
         or interest;

                  (b) not permit the release of the obligations of any Servicer
         under any Servicing Agreement except in conjunction with amendments or
         modifications permitted by (h) below;

                  (c) at all times, to the extent permitted by law, cause to be
         defended, enforced, preserved and protected the rights and privileges
         of the Issuer and of the Registered Owners under or with respect to
         each Servicing Agreement;

                  (d) at its own expense, the Issuer shall duly and punctually
         perform and observe each of its obligations to the Servicer under the
         Servicing Agreement in accordance with the terms thereof;

                  (e) the Issuer agrees to give the Trustee prompt written
         notice of each default on the part of the Servicer of its obligations
         under the Servicing Agreement coming to the Issuer's attention;

                  (f) the Issuer shall not waive any default by the Servicer
         under the Servicing Agreement without the written consent of the
         Trustee;

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                  (g) the Issuer shall cause the Servicer to deliver to the
         Trustee and the Issuer, on or before June 30 of each year, beginning
         with _______, 200__, a certificate stating that (i) a review of the
         activities of the Servicer during the preceding calendar year and of
         its performance under the Servicing Agreement has been made under the
         supervision of the officer signing such certificate and (ii) to the
         best of such officers' knowledge, based on such review, the Servicer
         has fulfilled all its obligations under the Servicing Agreement
         throughout such year, or, there has been a default in the fulfillment
         of any such obligation, specifying each such default known to such
         officer and the nature and statue thereof. The Issuer shall send copies
         of such annual certificate of the Servicer to each Rating Agency; and

                  (h) not consent or agree to or permit any amendment or
         modification of any Servicing Agreement which will in any manner
         materially adversely affect the rights or security of the Registered
         Owners. The Issuer shall be entitled to receive and rely upon an
         opinion of its counsel that any such amendment or modification will not
         materially adversely affect the rights or security of the Registered
         Owners.

         SECTION 4.05. PROCEDURES FOR TRANSFER OF FUNDS. In any instance where
this Indenture requires a transfer of funds or money from one Fund to another, a
transfer of ownership in investments or an undivided interest therein may be
made in any manner agreeable to the Issuer and the Trustee, and in the
calculation of the amount transferred, interest on the investment which has or
will accrue before the date the money is needed in the fund to which the
transfer is made shall not be taken into account or considered as money on hand
at the time of such transfer.

         SECTION 4.06. ADDITIONAL COVENANTS WITH RESPECT TO THE ACT. The Issuer
covenants that it will cause the Trustee to be, or replace the Trustee with, an
Eligible Lender under the Act, that it will acquire or cause to be acquired
Eligible Loans originated and held only by an Eligible Lender and that it will
not dispose of or deliver any Financed Eligible Loans or any security interest
in any such Financed Eligible Loans to any party who is not an Eligible Lender
so long as the Act or Regulations adopted thereunder require an Eligible Lender
to be the owner or holder of Guaranteed Eligible Loans; provided, however, that
nothing above shall prevent the Issuer from delivering the Eligible Loans to the
Servicer or the Guarantee Agency. The Registered Owners of the Notes shall not
in any circumstances be deemed to be the owner or holder of the Guaranteed
Eligible Loans.

         The Issuer, or the Administrator on behalf of the Issuer, shall be
responsible for each of the following actions with respect to the Act:

                  (a) the Issuer, or the Administrator on behalf of the Issuer,
         shall be responsible for dealing with the Secretary with respect to the
         rights, benefits and obligations under the Certificates of Insurance
         and the Contract of Insurance, and the Issuer shall be responsible for
         dealing with the Guarantee Agencies with respect to the rights,
         benefits and obligations under the Guarantee Agreements with respect to
         the Financed Eligible Loans;

                  (b) the Issuer, or the Administrator on behalf of the Issuer,
         shall cause to be diligently enforced, and shall cause to be taken all
         reasonable steps, actions and proceedings necessary or appropriate for
         the enforcement of all terms, covenants and conditions of all Financed
         Eligible Loans and agreements in connection therewith, including the
         prompt payment of all principal and interest payments and all other
         amounts due thereunder;

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<PAGE>

                  (c) the Issuer, or the Administrator on behalf of the Issuer,
         shall cause the Financed Eligible loans to be serviced by entering into
         the Servicing Agreement or other agreement with the Servicer for the
         collection of payments made for, and the administration of the accounts
         of, the Financed Eligible Loans;

                  (d) the Issuer, or the Administrator on behalf of the Issuer,
         shall comply, and shall cause all of its officers, directors, employees
         and agents to comply, with the provisions of the Act and any
         regulations or rulings thereunder, with respect to the Financed
         Eligible Loans;

                  (e) the Issuer, or the Administrator on behalf of the Issuer,
         shall cause the benefits of the Guarantee Agreements, the Interest
         Subsidy Payments and the Special Allowance Payments to flow to the
         Trustee. The Trustee shall have no liability for actions taken at the
         direction of the Issuer or the Administrator, except for negligence or
         willful misconduct in the performance of its express duties hereunder.
         The Trustee shall have no obligation to administer, service or collect
         the loans in the Trust Estate or to maintain or monitor the
         administration, servicing or collection of such loans; and

                  (f) the Issuer, or the Administrator on behalf of the Issuer,
         shall cause each Financed Eligible Loan evidenced by a Master
         Promissory Note in the form mandated by Section 432(m)(1) of the Act to
         be acquired pursuant to a Student Loan Purchase Agreement with a Seller
         containing language similar to the following:

                           "The Seller hereby represents and warrants that the
                  Seller is transferring all of its right title and interest in
                  the MPN Loan to the Trustee, that it has not assigned any
                  interest in such MPN Loan (other than security interests that
                  have been released or ownership interests that the Seller has
                  reacquired) to any person other than the Trustee, and that no
                  prior holder of the MPN Loan has assigned any interest in such
                  MPN Loan (other than security interests that have been
                  released or ownership interests that such prior holder has
                  reacquired) to any person other than a predecessor in title to
                  the Seller. The Seller hereby covenants that the Seller shall
                  not attempt to transfer to any other person any interest in
                  any MPN Loan assigned hereunder. The Seller hereby authorizes
                  the Trustee to file a UCC-1 financing statement identifying
                  the Seller as debtor and the Trustee as secured party and
                  describing the MPN Loan sold pursuant to this Agreement. The
                  preparation or filing of such UCC-1 financing statement is
                  solely for additional protection of the Trustee's interest in
                  the MPN Loans and shall not be deemed to contradict the
                  express intent of the Seller and the Trustee that the transfer
                  of MPN Loans under this Agreement is an absolute assignment of
                  such MPN Loans and is not a transfer of such MPN Loans as
                  security for a debt."

         The Trustee shall not be deemed to be the designated agent for the
purposes of this Section 4.06 unless it has agreed in writing to be such agent.

                                       31
<PAGE>

         SECTION 4.07. FINANCED ELIGIBLE LOANS; COLLECTIONS THEREOF; ASSIGNMENT
THEREOF. The Issuer, through the Servicer, shall diligently collect all
principal and interest payments on all Financed Eligible Loans, and all Interest
Benefit Payments, insurance, guarantee and default claims and Special Allowance
Payments which relate to such Financed Eligible Loans. The Issuer shall cause
the filing and assignment of such claims (prior to the timely filing deadline
for such claims under the Regulations) by the Servicer. The Issuer will comply
with the Act and Regulations which apply to the Program and to such Financed
Eligible Loans.

         SECTION 4.08. APPOINTMENT OF AGENTS, ETC. The Issuer shall employ and
appoint all employees, agents, consultants and attorneys which it may consider
necessary. No member of the board of directors or officer of the Administrator,
neither singly or collectively, shall be personally liable for any act or
omission not willfully fraudulent or mala fide.

         SECTION 4.09. CAPACITY TO SUE. The Issuer shall have the power and
capacity to sue and to be sued on matters arising out of or relating to the
financing of the Financed Eligible Loans.

         SECTION 4.10. CONTINUED EXISTENCE; SUCCESSOR TO ISSUER. The Issuer
agrees that it will do or cause to be done all things necessary to preserve and
keep in full force and effect its existence, rights and franchises as a Delaware
business trust, except as otherwise permitted by this Section 4.10. The Issuer
further agrees that it will not (a) sell, transfer or otherwise dispose of all
or substantially all, of its assets (except Financed Eligible Loans if such
sale, transfer or disposition will discharge this Indenture in accordance with
Article X hereof); (b) consolidate with or merge into another entity; or (c)
permit one or more other entities to consolidate with or merge into it. The
preceding restrictions in (a), (b) and (c) shall not apply to a transaction if
the transferee or the surviving or resulting entity, if other than the Issuer,
by proper written instrument for the benefit of the Trustee, irrevocably and
unconditionally assumes the obligation to perform and observe the agreements and
obligations of the Issuer under this Indenture.

         If a transfer is made as provided in this Section, the provisions of
this Section shall continue in full force and effect and no further transfer
shall be made except in compliance with the provisions of this Section.

         SECTION 4.11. AMENDMENT OF STUDENT LOAN PURCHASE AGREEMENTS. The Issuer
shall notify the Trustee in writing of any proposed amendments to any existing
Student Loan Purchase Agreement. No such amendment shall become effective unless
and until the Trustee consents thereto in writing. The consent of the Trustee
shall not be unreasonably withheld and shall not be withheld if the Trustee
receives an opinion of counsel acceptable to them that such an amendment is
required by the Act and is not materially prejudicial to the Registered Owners.
Notwithstanding the foregoing, however, the Trustee shall consent to an
amendment from time to time so long as it is not materially prejudicial to the
interests of the Registered Owners, and the Trustee may rely on an opinion of
counsel to such effect.

         SECTION 4.12. REPRESENTATIONS; NEGATIVE COVENANTS.

                  (a) The Issuer hereby makes the following representations and
         warranties to the Trustee on which the Trustee relies in authenticating
         the Notes and on which the Registered Owners have relied in purchasing
         the Notes. Such representations and warranties shall survive the
         transfer and assignment of the Trust Estate to the Trustee.

                                       32
<PAGE>

                           (i) ORGANIZATION AND GOOD STANDING. The Issuer is
                  duly organized and validly existing under the laws of the
                  State, and has the power to own its assets and to transact the
                  business in which it presently engages.

                           (ii) DUE QUALIFICATION. The Issuer is duly qualified
                  to do business and is in good standing, and has obtained all
                  material necessary licenses and approvals, in all
                  jurisdictions where the failure to be so qualified, have such
                  good standing or have such licenses or approvals would have a
                  material adverse effect on the Issuer's business and
                  operations or in which the actions as required by this
                  Indenture require or will require such qualification.

                           (iii) AUTHORIZATION. The Issuer has the power,
                  authority and legal right to create and issue the Notes, to
                  execute, deliver and perform this Indenture and to grant the
                  Trust Estate to the Trustee and the creation and issuance of
                  the Notes, execution, delivery and performance of this
                  Indenture and grant of the Trust Estate to the Trustee have
                  been duly authorized by the Issuer by all necessary business
                  trust action.

                           (iv) BINDING OBLIGATION. This Indenture, assuming due
                  authorization, execution and delivery by the Trustee, the
                  Notes in the hands of the Registered Owners thereof and the
                  Issuer Derivative Payments constitute legal, valid and binding
                  obligations of the Issuer enforceable against the Issuer in
                  accordance with their terms, except that (A) such enforcement
                  may be subject to bankruptcy, insolvency, reorganization,
                  moratorium or other similar laws (whether statutory,
                  regulatory or decisional) now or hereafter in effect relating
                  to creditors' rights generally and (B) the remedy of specific
                  performance and injunctive and other forms of equitable relief
                  may be subject to certain equitable defenses and to the
                  discretion of the court before which any proceeding therefor
                  may be brought, whether a proceeding at law or in equity.

                           (v) NO VIOLATION. The consummation of the
                  transactions contemplated by this Indenture and the
                  fulfillment of the terms hereof does not conflict with, result
                  in any breach of any of the terms and provisions of or
                  constitute (with or without notice, lapse of time or both) a
                  default under the organizational documents of the Issuer, or
                  any material indenture, agreement, mortgage, deed of trust or
                  other instrument to which the Issuer is a party or by which it
                  is bound, or result in the creation or imposition of any lien
                  upon any of its material properties pursuant to the terms of
                  any such indenture, agreement, mortgage, deed of trust or
                  other instrument, other than this Indenture, nor violate any
                  law or any order, rule or regulation applicable to the Issuer
                  of any court or of any federal or state regulatory body,
                  administrative agency, or other governmental instrumentality
                  having jurisdiction over the Issuer or any of its properties.

                           (vi) NO PROCEEDINGS. There are no proceedings,
                  injunctions, writs, restraining orders or investigations to
                  which the Issuer or any of such entity's affiliates is a party
                  pending, or, to the best of such entity's knowledge,
                  threatened, before any court, regulatory body, administrative
                  agency, or other tribunal or governmental instrumentality (A)

                                       33
<PAGE>

                  asserting the invalidity of this Indenture, (B) seeking to
                  prevent the issuance of any Notes or the consummation of any
                  of the transactions contemplated by this Indenture or (C)
                  seeking any determination or ruling that might materially and
                  adversely affect the performance by the Issuer of its
                  obligations under, or the validity or enforceability of this
                  Indenture.

                           (vii) APPROVALS. All approvals, authorizations,
                  consents, orders or other actions of any person, corporation
                  or other organization, or of any court, governmental agency or
                  body or official, required on the part of the Issuer in
                  connection with the execution and delivery of this Indenture
                  have been taken or obtained on or prior to the Date of
                  Issuance.

                           (viii) PLACE OF BUSINESS. The Issuer's place of
                  business and chief executive office is located in Wilmington,
                  Delaware and the Issuer has had no other chief executive
                  office.

                           (ix) TAX AND ACCOUNTING TREATMENT. The Issuer intends
                  to treat the transactions contemplated by the Student Loan
                  Purchase Agreements as an absolute transfer rather than as a
                  pledge of the Financed Eligible Loans from the Seller for
                  federal income tax and financial accounting purposes and the
                  Issuer will be treated as the owner of the Financed Eligible
                  Loans for all purposes. The Issuer further intends to treat
                  the Notes as its indebtedness for federal income tax and
                  financial accounting purposes.

                           (x) TAXES. The Issuer has filed (or caused to be
                  filed) all federal, state, county, local and foreign income,
                  franchise and other tax returns required to be filed by it
                  through the date hereof, and has paid all taxes reflected as
                  due thereon. There is no pending dispute with any taxing
                  authority that, if determined adversely to the Issuer, would
                  result in the assertion by any taxing authority of any
                  material tax deficiency, and the Issuer has no knowledge of a
                  proposed liability for any tax year to be imposed upon such
                  entity's properties or assets for which there is not an
                  adequate reserve reflected in such entity's current financial
                  statements.

                           (xi) LEGAL NAME. The legal name of the Issuer is
                  "Nelnet Student Loan Trust ________" and has not changed since
                  its inception. The Issuer has no trade names, fictitious
                  names, assumed names or "dba's" under which it conducts its
                  business and has made no filing in respect of any such name.

                           (xii) BUSINESS PURPOSE. The Issuer has acquired the
                  Financed Eligible Loans conveyed to it under a Student Loan
                  Purchase Agreement for a bona fide business purpose and has
                  undertaken the transactions contemplated herein as principal
                  rather than as an agent of any other person. The Issuer has no
                  subsidiaries, has adopted and operated consistently with all
                  requirements for business trusts under the laws of the State
                  with respect to its operations and has engaged in no other
                  activities other than those specified in this Indenture and
                  the Student Loan Purchase Agreements and in accordance with
                  the transactions contemplated herein and therein.

                                       34
<PAGE>

                           (xiii) COMPLIANCE WITH LAWS. The Issuer is in
                  compliance with all applicable laws and regulations with
                  respect to the conduct of its business and has obtained and
                  maintains all permits, licenses and other approvals as are
                  necessary for the conduct of its operations.

                           (xiv) VALID BUSINESS REASONS; NO FRAUDULENT
                  TRANSFERS. The transactions contemplated by this Indenture are
                  in the ordinary course of the Issuer's business and the Issuer
                  has valid business reasons for granting the Trust Estate
                  pursuant to this Indenture. At the time of each such grant:
                  (A) the Issuer granted the Trust Estate to the Trustee without
                  any intent to hinder, delay, or defraud any current or future
                  creditor of the Issuer; (B) the Issuer was not insolvent and
                  did not become insolvent as a result of any such grant; (C)
                  the Issuer was not engaged and was not about to engage in any
                  business or transaction for which any property remaining with
                  such entity was an unreasonably small capital or for which the
                  remaining assets of such entity are unreasonably small in
                  relation to the business of such entity or the transaction;
                  (D) the Issuer did not intend to incur, and did not believe or
                  should not have reasonably believed, that it would incur,
                  debts beyond its ability to pay as they become due; and (E)
                  the consideration paid received by the Issuer for the grant of
                  the Trust Estate was reasonably equivalent to the value of the
                  related grant.

                           (xv) NO MANAGEMENT OF AFFAIRS OF SELLER. The Issuer
                  is not and will not be involved in the day-to-day management
                  of the Seller, the Administrator, the Sponsor or any
                  affiliate.

                           (xvi) NO TRANSFERS WITH SELLER OR AFFILIATES. Other
                  than the acquisition of assets and the transfer of any Notes
                  pursuant to this Indenture, the Issuer does not engage in and
                  will not engage in any transactions with the Seller and
                  affiliates, except as provided herein with respect to the
                  Administrative Services Agreement or the payment of dividends
                  or distributions to the Issuer's parent.

                           (xvii) ABILITY TO PERFORM. There has been no material
                  impairment in the ability of the Issuer to perform its
                  obligations under this Indenture.

                           (xviii) FINANCIAL CONDITION. No material adverse
                  change has occurred in the Issuer's financial status since the
                  date of its formation.

                           (xix) EVENT OF DEFAULT. No Event of Default has
                  occurred and no event has occurred that, with the giving of
                  notice, the passage of time, or both, would become an Event of
                  Default.

                           (xx) ACQUISITION OF FINANCED ELIGIBLE LOANS LEGAL.
                  The Issuer has complied with all applicable federal, state and
                  local laws and regulations in connection with its acquisition
                  of the Financed Eligible Loans from the Seller.

                                       35
<PAGE>

                           (xxi) NO MATERIAL MISSTATEMENTS OR OMISSIONS. No
                  information, certificate of an officer, statement furnished in
                  writing or report delivered to the Trustee, the Servicer or
                  any Registered Owner by the Issuer contains any untrue
                  statement of a material fact or omits a material fact
                  necessary to make such information, certificate, statement or
                  report not misleading.

         (b) The Issuer will not:

                           (i) sell, transfer, exchange or otherwise dispose of
                  any portion of the Trust Estate except as expressly permitted
                  by this Indenture;

                           (ii) claim any credit on, or make any deduction from,
                  the principal amount of any of the Notes by reason of the
                  payment of any taxes levied or assessed upon any portion of
                  the Trust Estate;

                           (iii) except as otherwise provided herein, dissolve
                  or liquidate in whole or in part, except with the prior
                  written consent of the Trustee, and to the extent Notes remain
                  Outstanding, approval of the Registered Owners and a Rating
                  Confirmation;

                           (iv) permit the validity or effectiveness of this
                  Indenture, any Supplement or any grant hereunder to be
                  impaired, or permit the lien of this Indenture to be amended,
                  hypothecated, subordinated, terminated or discharged, or
                  permit any Person to be released from any covenants or
                  obligations under this Indenture, except as may be expressly
                  permitted hereby;

                           (v) except as otherwise provided herein, permit any
                  lien, charge, security interest, mortgage or other encumbrance
                  (other than the lien of this Indenture) to be created on or
                  extend to or otherwise arise upon or burden the Trust Estate
                  or any part thereof or any interest therein or the proceeds
                  thereof;

                           (vi) permit the lien of this Indenture not to
                  constitute a valid first priority, perfected security interest
                  in the Trust Estate;

                           (vii) incur or assume any indebtedness or guarantee
                  any indebtedness of any Person whether secured by any Financed
                  Eligible Loans under this Indenture or otherwise, except for
                  such obligations as may be incurred by the Issuer in
                  connection with the issuance of the Notes pursuant to this
                  Indenture and unsecured trade payables in the ordinary course
                  of its business;

                           (viii) operate such that it would be consolidated
                  with its Sponsor or any other affiliate and its separate
                  existence disregarded in any federal or state proceeding;

                           (ix) act as agent of any Seller or, except as
                  provided in the Servicing Agreement, allow the Seller to act
                  as its agent;

                                       36
<PAGE>

                           (x) allow the Seller or its parent or any other
                  affiliate to pay its expenses, guarantee its obligations or
                  advance funds to it for payment of expenses; or

                           (xi) consent to the appointment of a conservator or
                  receiver or liquidator in any insolvency, readjustment of
                  debt, marshalling of assets and liabilities or similar
                  proceedings of or relating to the Issuer or of or relating to
                  all or substantially all of its property, or a decree or order
                  of a court or agency or supervisory authority having
                  jurisdiction in the premises for the appointment of a
                  conservator or receiver or liquidator 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; or
                  the Issuer shall not consent to the appointment of a receiver,
                  conservator or liquidator in any insolvency, readjustment of
                  debt, marshalling of assets and liabilities, voluntary
                  liquidation or similar proceedings of or relating to the
                  Issuer or of or relating to all or substantially all of its
                  property; or admit in writing its inability to pay its debts
                  generally as they become due, file a petition to take
                  advantage of any applicable insolvency, bankruptcy or
                  reorganization statute, make an assignment for the benefit of
                  its creditors or voluntarily suspend payment of its
                  obligations.

                  (c) The Issuer makes the following representations and
         warranties as to the Trust Estate which is granted to the Trustee
         hereunder on such date, on which the Trustee relies in accepting the
         Trust Estate. Such representations and warranties shall survive the
         grant of the Trust Estate to the Trustee pursuant to this Indenture:

                           (i) FINANCED ELIGIBLE LOANS. Each Financed Eligible
                  Loan acquired by the Issuer shall constitute an Eligible Loan
                  and contain the characteristics found in a Student Loan
                  Purchase Agreement. Notwithstanding the definition of
                  "Eligible Loans" herein, the Issuer covenants that no more
                  than 20% of each purchase of Eligible Loans will be made up of
                  Eligible Loans delinquent by more than 30 days.

                           (ii) SCHEDULE OF FINANCED ELIGIBLE LOANS. The
                  information set forth in each Schedule of Financed Eligible
                  Loans is true and correct in all material respects as of the
                  opening of business on the Date of Issuance.

                           (iii) GRANT. It is the intention of the Issuer that
                  the transfer herein contemplated constitutes a grant of the
                  Financed Eligible Loans to the Trustee.

                           (iv) ALL FILINGS MADE. All filings (including,
                  without limitation, UCC filings) necessary in any jurisdiction
                  to give the Trustee a first priority perfected ownership and
                  security interest in the Trust Estate, including the Financed
                  Eligible Loans, have been made no later than the Date of
                  Issuance and copies of the file-stamped financing statements
                  shall be delivered to the Trustee within five Business Days of
                  receipt by the Issuer or its agent from the appropriate
                  secretary of state. The Issuer has not caused, suffered or
                  permitted any lien, pledges, offsets, defenses, claims,
                  counterclaims, charges or security interest with respect to
                  the Financed Eligible Loans (other than the security interest
                  created in favor of the Trustee) to be created.

                                       37
<PAGE>

                           (v) TRANSFER NOT SUBJECT TO BULK TRANSFER ACT. Each
                  grant of the Financed Eligible Loans by the Issuer pursuant to
                  this Indenture is not subject to the bulk transfer act or any
                  similar statutory provisions in effect in any applicable
                  jurisdiction.

                           (vi) NO TRANSFER TAXES DUE. Each grant of the
                  Financed Eligible Loans (including all payments due or to
                  become due thereunder) by the Issuer pursuant to this
                  Indenture is not subject to and will not result in any tax,
                  fee or governmental charge payable by the Issuer or the Seller
                  to any federal, state or local government.

         SECTION 4.13. ADDITIONAL COVENANTS. So long as any of the Notes are
Outstanding:

                  (a) The Issuer shall not engage in any business or activity
         other than in connection with the activities contemplated hereby and in
         the Student Loan Purchase Agreements, and in connection with the
         issuance of Notes.

                  (b) The Issuer shall not consolidate or merge with or into any
         other entity or convey or transfer its properties and assets
         substantially as an entirety to any entity except as otherwise provided
         herein.

                  (c) The funds and other assets of the Issuer shall not be
         commingled with those of any other individual, corporation, estate,
         partnership, joint venture, association, joint stock company, trust,
         unincorporated organization, or government or any agency or political
         subdivision thereof.

                  (d) The Issuer shall not be, become or hold itself out as
         being liable for the debts of any other party.

                  (e) The Issuer shall not form, or cause to be formed, any
         subsidiaries.

                  (f) The Issuer shall act solely in its own name and through
         its duly authorized officers or agents in the conduct of its business,
         and shall conduct its business so as not to mislead others as to the
         identity of the entity with which they are concerned.

                  (g) The Issuer shall maintain its records and books of account
         and shall not commingle its records and books of account with the
         records and books of account of any other Person. The books of the
         Issuer may be kept (subject to any provision contained in the statutes)
         inside or outside the State at such place or places as may be
         designated from time to time by the provisions of the Trust Agreement.

                  (h) All actions of the Issuer shall be taken by an Authorized
         Representative.

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<PAGE>

                  (i) The Issuer shall not amend, alter, change or repeal any
         provision contained in this Section 4.13 without (i) the prior written
         consent of the Trustee and (ii) a Rating Confirmation from each Rating
         Agency rating any Notes Outstanding (a copy of which shall be provided
         to the Trustee) that such amendment, alteration, change or repeal will
         have no adverse effect on the rating assigned to the Notes.

                  (j) The Issuer shall not amend its Certificate of Trust or its
         Trust Agreement without first obtaining the prior written consent of
         each Rating Agency.

                  (k) All audited financial statements of the Issuer that are
         consolidated with those of any affiliate thereof will contain detailed
         notes clearly stating that (i) all of the Issuer's assets are owned by
         the Issuer, and (ii) the Issuer is a separate entity with creditors who
         have received ownership and/or security interests in the Issuer's
         assets.

                  (l) The Issuer will strictly observe legal formalities in its
         dealings with the Seller, the Sponsor or any affiliate thereof, and
         funds or other assets of the Issuer will not be commingled with those
         of the Seller, the Sponsor or any other affiliate thereof. The Issuer
         shall not maintain joint bank accounts or other depository accounts to
         which the Seller, the Sponsor or any other affiliate has independent
         access. None of the Issuer's funds will at any time be pooled with any
         funds of the Seller, the Sponsor or any other affiliate.

                  (m) The Issuer will maintain an arm's length relationship with
         the Seller (and any affiliate). Any Person that renders or otherwise
         furnishes services to the Issuer will be compensated by the Issuer at
         market rates for such services it renders or otherwise furnishes to the
         Issuer except as otherwise provided in this Indenture. Except as
         contemplated in this Indenture, the Student Loan Purchase Agreements or
         the Servicing Agreement, the Issuer will not hold itself out to be
         responsible for the debts of the Seller, the parent or the decisions or
         actions respecting the daily business and affairs of the Seller or
         parent.

         SECTION 4.14. PROVIDING OF NOTICE. The Issuer, upon learning of any
failure on its part to observe or perform in any material respect any covenant,
representation or warranty of the Issuer set forth in this Indenture or the
Student Loan Purchase Agreements, or of any failure on the part of the Seller to
observe or perform in any material respect any covenant, representation or
warranty of the Seller set forth in the Student Loan Purchase Agreements, shall
promptly notify the Trustee, the Servicer and each Rating Agency of such
failure.

         SECTION 4.15. CERTAIN REPORTS.

                  (a) The Issuer will:

                                    (i) file with the Trustee, within 15 days
                           after the Issuer is required to file the same with
                           the Commission, copies of the annual reports and of
                           the information, documents and other reports (or
                           copies of such portions of any of the foregoing as
                           the Commission may from time to time by rules and
                           regulations prescribe) which the Issuer may be
                           required to file with the Commission pursuant to
                           Section 13 or Section 15(d) of the Exchange Act;

                                       39
<PAGE>

                                    (ii) file with the Trustee and the
                           Commission, in accordance with rules and regulations
                           prescribed from time to time by the Commission, such
                           additional information, documents and reports with
                           respect to compliance by the Issuer with the
                           conditions and covenants of this Indenture as may be
                           required from time to time by such rules and
                           regulations; and

                                    (iii) transmit by mail to the Registered
                           Owners of Notes, within 30 days after the filing
                           thereof with the Trustee, in the manner and to the
                           extent provided in TIA Section 313(c), such summaries
                           of any information, documents and reports required to
                           be filed by the Issuer pursuant to clauses (a) and
                           (b) of this Section 4.15 as may be required by rules
                           and regulations prescribed from time to time by the
                           Commission.

                  (b) The Trustee will:

                                    (i) Within 60 days after each December 31
                           beginning with the December 31 following the date of
                           this Indenture, the Trustee shall mail to each
                           Registered Owner a brief report as of such December
                           31 that complies with TIA Section 313(a) if required
                           by said section. The Trustee shall also comply with
                           TIA Section 313(b). A copy of each such report
                           required pursuant to TIA Section 313(a) or (b) shall,
                           at the time of such transaction to Registered Owners,
                           be filed by the Trustee with the Commission and with
                           each securities exchange, if any, upon which the
                           Notes are listed, provided that the Issuer has
                           previously notified the Trustee of such listing.

         The Trustee may conclusively rely and accept such reports from the
Issuer as fulfilling the requirements of this Section 4.15, with no further duty
to know, determine or examine such reports or comply with the prescribed rules
and regulations of the Commission.

         SECTION 4.16. STATEMENT AS TO COMPLIANCE. The Issuer will deliver to
the Trustee, within 120 days after the end of each fiscal year, a brief
certificate from an Authorized Representative including (i) a current list of
the Authorized Representatives, and (ii) a statement indicating whether or not
to the knowledge of the signers thereof the Issuer is in compliance with all
conditions and covenants under this Indenture and, in the event of any
noncompliance, specifying such noncompliance and the nature and status thereof.
For purposes of this Section 4.16, such compliance shall be determined without
regard to any period of grace or requirement of notice under this Indenture.

         SECTION 4.17. REPRESENTATIONS OF THE ISSUER REGARDING THE TRUSTEE'S
SECURITY INTEREST. The Issuer hereby represents and warrants for the benefit of
the Trustee and the Registered Owners as follows:

                                       40
<PAGE>

                  (a) This Indenture creates a valid and continuing security
         interest (as defined in the applicable Uniform Commercial Code in
         effect in the States of Delaware, Nebraska and Colorado) in the
         Financed Eligible Loans in favor of the Trustee, which security
         interest is prior to all other liens, charges, security interests,
         mortgages or other encumbrances, and is enforceable as such as against
         creditors of and purchasers from Issuer.

                  (b) The Financed Eligible Loans constitute "accounts" within
         the meaning of the applicable UCC.

                  (c) The Issuer owns and has good and marketable title to the
         Financed Eligible Loans free and clear of any lien, charge, security
         interest, mortgage or other encumbrance, claim or encumbrance of any
         Person, other that those granted pursuant to this Indenture.

                  (d) For sale of loan participations, swaps and other "payment
         intangibles" (within the meaning of the applicable UCC), the Issuer has
         received all consents and approvals required by the terms of the
         Financed Eligible Loans to the sale of the Financed Eligible Loans
         hereunder to the Trustee.

                  (e) The Issuer has caused or will have caused, within ten
         days, the filing of all appropriate financing statements in the proper
         filing office in the appropriate jurisdictions under applicable law in
         order to perfect the security interest in the Financed Eligible Loans
         granted to the Trustee hereunder.

                  (f) All executed copies of each promissory note and master
         promissory note that constitute or evidence the Financed Eligible Loans
         have been delivered to either the Trustee or the Servicer (as custodian
         for the Trustee).

                  (g) The Issuer has received a written acknowledgment from the
         Servicer (as custodian for the Trustee) that the Servicer is holding
         the promissory notes that constitute or evidence the Financed Eligible
         Loans solely on behalf and for the benefit of the Trustee.

                  (h) Other than the security interest granted to the Trustee
         pursuant to this Indenture, the Issuer has not pledged, assigned, sold,
         granted a security interest in, or otherwise conveyed any of the
         Financed Eligible Loans. The Issuer has not authorized the filing of
         and is not aware of any financing statements against the Issuer that
         include a description of collateral covering the Financed Eligible
         Loans other than any financing statement relating to the security
         interest granted to the Trustee hereunder or that has been terminated.
         The Issuer is not aware of any judgment or tax lien filings against the
         Issuer.

         SECTION 4.18. FURTHER COVENANTS OF THE ISSUER REGARDING THE TRUSTEE'S
SECURITY INTEREST. The Issuer hereby covenants for the benefit of the Trustee
and the Registered Owners as follows:

                  (a) The representations and warranties set forth in Section
         4.17 shall survive the termination of this Indenture.

                                       41
<PAGE>

                  (b) The Trustee shall not waive any of the representations and
         warranties set forth in Section 4.17 above.

                  (c) The Issuer shall take all steps necessary, and shall cause
         the Servicers and Subservicers, if any, to take all steps necessary and
         appropriate, to maintain the perfection and priority of the Trustee's
         security interest in the Financed Eligible Loans.

                                    ARTICLE V

                                      FUNDS

         SECTION 5.01. CREATION AND CONTINUATION OF FUNDS AND ACCOUNTS. There
are hereby created and established the following Funds to be held and maintained
by the Trustee for the benefit of the Registered Owners:

                  (a) Acquisition Fund (including a Pre-Funding Account
         therein);

                  (b) Collection Fund (including a Capitalized Interest Account
         therein); and

                  (c) Reserve Fund.

         The Trustee is hereby authorized for the purpose of facilitating the
administration of the Trust Estate and for the administration of any Notes
issued hereunder to create further Accounts or Subaccounts in any of the various
Funds and Accounts established hereunder which are deemed necessary or
desirable.

         SECTION 5.02. ACQUISITION FUND. There shall be deposited into the
Acquisition Fund moneys from proceeds of the Notes in an amount equal to
$_____________. The Initial Pre-Funded Amount shall be deposited in a
Pre-Funding Account to be created within the Acquisition Fund. The Trustee shall
transfer any moneys which remain on the Pre-Funding Account at the end of the
Pre-Funding Period to the Collection Fund. Financed Eligible Loans shall be held
by the Trustee or its agent or bailee (including the Servicer) and shall be
pledged to the Trust Estate and accounted for as a part of the Acquisition Fund.

         Moneys on deposit in the Acquisition Fund shall be used, upon Issuer
Order, solely to (i) pay costs of issuance of the Notes and (ii) upon receipt by
the Trustee of an Eligible Loan Acquisition Certificate, to acquire Eligible
Loans at a price not in excess of _____%. Any such Issuer Order or Eligible Loan
Acquisition Certificate shall state that such proposed use of moneys in the
Acquisition Fund is in compliance with the provisions of this Indenture. If the
Issuer determines that all or any portion of such moneys cannot be so used, then
an Authorized Representative of the Issuer may, by Issuer Order, direct the
Trustee to transfer all such moneys to the Collection Fund for use therein.
Notwithstanding the foregoing, if any funds or moneys remain in the Pre-Funding
Account upon the expiration of the Pre-Funding Period, then the Trustee shall,
without direction from or notice to the Issuer, transfer all such remaining
moneys or funds to the Collection Fund not later than the third Business Day
preceding the Distribution Date immediately succeeding the expiration of the
Pre-Funding Period.

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<PAGE>

         While the Issuer will be the beneficial owner of the Financed Eligible
Loans and the Registered Owners will have a security interest therein, it is
understood and agreed that the Trustee will be the legal owner thereof and will
have a security interest in the Financed Eligible Loans for and on behalf of the
Registered Owners. In the case of a single Financed Eligible Loan evidenced by a
separate note, each such note will be held in the name of the Trustee for the
account of the Issuer, for the benefit of the Registered Owners. In the case of
a Financed Eligible Loan evidenced by a Master Promissory Note, the Issuer shall
cause the holder of the original Master Promissory Note to indicate by book
entry on its books and records that the Issuer is the owner of the Loan and that
the Trustee has a security interest in the Financed Eligible Loan for the
benefit of the Registered Owners.

         Except as provided in Sections 5.06, 10.03 and 10.04 hereof, Financed
Eligible Loans shall not be sold, transferred or otherwise disposed of (other
than for consolidation, serialization or transfer to a Guaranty Agency) by the
Trustee free from the lien of this Indenture.

         SECTION 5.03. COLLECTION FUND.

                  (a) There shall be deposited into the Collection Fund
         $___________ from proceeds of the Notes. $__________ of such proceeds
         shall be deposited into a Capitalized Interest Account to be created
         within the Collection Fund and used to make the payments described in
         (c)(iv) and (c)(v) below during the Capitalized Interest Period to the
         extent moneys are not otherwise available in the Collection Fund. The
         Trustee shall transfer any moneys which remain in the Capitalized
         Interest Account at the end of the Capitalized Interest Period to the
         Sponsor. There shall also be deposited to the Collection Fund all
         Revenues derived from Financed Eligible Loans acquired by the Issuer,
         and all other Revenue derived from moneys or assets on deposit in the
         Collection Fund, the Reserve Fund, all Counterparty Payments and any
         other amounts deposited thereto upon receipt of an Issuer Order. Moneys
         on deposit in the Collection Fund shall be used to make the payments
         described below.

                  (b) The Administrator shall instruct the Trustee in writing no
         later than the third Business Day preceding each Monthly Servicing
         Payment Date that is not a Distribution Date (based on the information
         contained in the Administrator's Certificate (in the form set forth in
         the Administrative Services Agreement) and the related Servicer's
         Report) to distribute to the Servicer, by 1:00 p.m. (New York time) on
         such Monthly Servicing Payment Date, from and to the extent of the
         Available Funds on deposit in the Collection Fund the Servicing Fee due
         with respect to the preceding calendar month, and the Trustee shall
         comply with such instructions. The Trustee may conclusively rely on the
         written instruction of the Administrator with no further duty to
         examine or determine the information contained in any Administrator's
         Certificate.

                  (c) The Administrator shall instruct the Trustee in writing no
         later than the third Business Day preceding each Distribution Date
         (based on the information contained in the Administrator's Certificate
         and the related Servicer's Report) to make the following deposits and
         distributions to the Persons or to the account specified below by 1:00
         p.m. (New York time) on such Distribution Date, to the extent of (x)
         the amount of Available Funds in the Collection Fund and (y) the amount
         transferred from the Reserve Fund pursuant to Section 5.04(b)(i), in
         the following order of priority, and the Trustee shall comply with such
         instructions:

                                       43
<PAGE>

                           (i) to the Servicer, the Servicing Fee, and to the
                  Trustee and the Delaware Trustee, the Trustee Fee and the
                  Delaware Trustee Fee, respectively, due on such Distribution
                  Date;

                           (ii) to the Administrator, the Administration Fee due
                  on such Distribution Date and all unpaid Administration Fees
                  from prior Distribution Dates;

                           (iii) to the Counterparties, in proportion to their
                  respective entitlements under the applicable Derivative
                  Products without preference or priority, the Derivative
                  Product Fees due on such Distribution Date and all unpaid
                  Derivative Product Fees from prior Distribution Dates;

                           (iv) to the Class A-1 Noteholders and Class A-2
                  Noteholders, from the amount of Available Funds remaining
                  after the application of clauses (i) through (iii) above (x)
                  during the Capitalized Interest Period, first from the
                  Collection Fund and then from the Capitalized Interest Account
                  and (y) after the Capitalized Interest Period or if no moneys
                  are available in the Capitalized Interest Account, from the
                  Collection Fund, the Class A Noteholders' Interest
                  Distribution Amount, ratably, without preference or priority
                  of any kind, according to the amounts payable on the Class A
                  Notes in respect of Class A Noteholders' Interest Distribution
                  Amount;

                           (v) to the Class B Noteholders, from the amount of
                  Available Funds remaining after the application of clauses (i)
                  through (iv) above (x) during the Capitalized Interest Period,
                  first from the Collection Fund and then from the Capitalized
                  Interest Account and (y) after the Capitalized Interest Period
                  or if no moneys are available in the Capitalized Interest
                  Account, from the Collection Fund, the Class B Noteholders'
                  Interest Distribution Amount, ratably, without preference or
                  priority of any kind, according to the amounts payable in
                  respect of Class B Noteholders' Interest Distribution Amount;

                           (vi) to the Class A-1 Noteholders, the Class A
                  Noteholders' Principal Distribution Amount;

                           (vii) on each Distribution Date on and after which
                  the Class A-1 Notes have been paid in full, to the Class A-2
                  Noteholders, the Class A Noteholders' Principal Distribution
                  Amount;

                           (viii) on each Distribution Date on and after the
                  date on which the Class A Notes have been paid in full, to the
                  Class B Noteholders, the Class B Noteholders' Principal
                  Distribution Amount;

                           (ix) to the Reserve Fund, the amount, if any,
                  necessary to reinstate the balance of the Reserve Fund up to
                  the Specified Reserve Fund Balance;

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<PAGE>

                           (x) to the Counterparties, in proportion to their
                  respective entitlements under the applicable Derivative
                  Product without preference or priority, the aggregate unpaid
                  amount of any Derivative Product Payments owing to such
                  Counterparties, plus accrued interest, if any;

                           (xi) to the Servicer, the aggregate unpaid amount of
                  the Carryover Servicing Fee, if any;

                           (xii) in the event the Financed Eligible Loans are
                  not sold pursuant to Section 10.03, to pay as an accelerated
                  payment of principal balance of the Notes, first to the Class
                  A Noteholders in the same order and priority as is set forth
                  in Sections 5.03(c)(vi) and (c)(vii) until the principal
                  amount of the Class A Notes is paid in full and then to the
                  Class B Noteholders until the principal balance of the Class B
                  Notes is reduced to zero, provided that the amount of such
                  distribution shall not exceed the outstanding principal
                  balance of the Class A Notes or the Class B Notes, as
                  applicable, after giving effect to all other payments in
                  respect of principal of Class A Notes and Class B Notes to be
                  made on such date; and

                           (xiii)  to the Sponsor, any remaining portion
                  thereof. Amounts properly distributed to the Sponsor pursuant
                  to this paragraph (xiii) shall be deemed released from the
                  Trust Estate and the security interest therein granted to the
                  Trustee, and the Sponsor shall in no event thereafter be
                  required to refund any such distributed amounts.

         SECTION 5.04. RESERVE FUND.

                  (a) On the Date of Issuance, the Trustee shall deposit
         $___________ into the Reserve Fund. Thereafter, the Trustee shall
         transfer to the Reserve Fund from the Collection Fund all amounts
         designated for transfer thereto pursuant to Section 5.03(c)(ix) hereof.

                  (b)(i)On each Monthly Servicing Payment Date or Distribution
         Date, to the extent there are insufficient Available Funds in the
         Collection Fund to make one or more of the transfers required by
         Sections 5.03(b) and 5.03(c)(i) through (c)(v), then, the Administrator
         shall instruct the Trustee in writing to withdraw from the Reserve Fund
         on such Monthly Servicing Payment Date or Distribution Date, as the
         case may be, an amount equal to such deficiency and to deposit such
         amount in the Collection Fund. Additionally, if on the Note Final
         Maturity Date for a class of Notes, and after giving effect to the
         distribution of the Available Funds on such Note Final Maturity Date,
         the principal amount of such class of Notes will not be reduced to
         zero, the Administrator shall instruct the Trustee in writing to
         withdraw from the Reserve Fund on such Note Final Maturity Date an
         amount equal to the amount needed to reduce the principal amount of
         such class of Notes to zero and to deposit such amount in the
         Collection Fund.

                  (ii) After giving effect to Section 5.04(b)(i) above, if the
         amount on deposit in the Reserve Fund on any Distribution Date (after
         giving effect to all deposits or withdrawals therefrom on such
         Distribution Date other than pursuant to this clause (ii)) is greater
         than the Specified Reserve Fund Balance for such Distribution Date, the
         Administrator shall instruct the Trustee in writing:

                           (A) to pay to the Class A Noteholders out of such
                  excess in the Reserve Fund an amount equal to the Class A Note
                  Principal Shortfall, if any; and

                           (B) to pay to the Class B Noteholders out of such
                  excess in the Reserve Fund an amount equal to the Class B
                  Note Principal Shortfall, if any.

                                       45
<PAGE>

                  (c) In the event of a termination of a Derivative Product that
         requires the Issuer to make a termination payment to the applicable
         Counterparty, such termination payment shall be paid in the same order
         of priority as the Derivative Product Fee in Sections 5.03(c)(iii) and
         the Derivative Product Payment in Sections 5.03(c)(x), as the case may
         be; provided, however, that in the event that the Issuer is required to
         make a termination payment to a Counterparty as a result of (i) an
         Event of Default (as such term is defined in the Derivative Product)
         where the Counterparty is the Defaulting Party (as such term is defined
         in the Derivative Product) or (ii) a Termination Event (as such term is
         defined in the Derivative Product), such termination payment will be
         subordinate in priority to the right of the Class A Noteholders to
         receive the Class A Noteholders' Distribution Amount and to the Class B
         Noteholders to receive the Class B Noteholders' Distribution Amount
         and, if necessary, to the reinstatement of the balance of the Reserve
         Fund up to the Specified Reserve Fund Balance. In the event of a
         termination of a Derivative Product that requires the Issuer to make a
         termination payment to the applicable Counterparty except as described
         in the proviso above, the Administrator promptly shall notify the
         Rating Agencies of such requirement and, within thirty (30) days of
         such termination payment, shall provide to the Rating Agencies cash
         flows and such other financial information with respect to the Issuer
         as the Rating Agencies may reasonably request.

                  (d) On the final Distribution Date upon termination of the
         Trust and following the payment in full of the aggregate outstanding
         principal balance of the Notes and of all other amounts (other than
         Derivative Product Payments and Carryover Servicing Fees) owing or to
         be distributed hereunder or under the Indenture to Noteholders, the
         Trustee, the Servicer, the Administrator or the Counterparties, to the
         extent that Available Funds on such date are insufficient to make the
         following payments, amounts remaining in the Reserve Fund shall be used
         first to pay any unpaid Derivative Product Payments and second to pay
         any Carryover Servicing Fees. Any amount remaining on deposit in the
         Reserve Fund after such payments have been made shall be distributed to
         the Sponsor. The Sponsor shall in no event be required to refund any
         amounts properly distributed pursuant to this Section 5.04(d).

                  (e) Anything in this Section 5.04 to the contrary
         notwithstanding, if the market value of securities and cash in the
         Reserve Fund is on any Distribution Date sufficient to pay the
         remaining principal amount of and interest accrued on the Notes, and to
         pay any unpaid Derivative Product Payments and Carryover Servicing Fee,
         such amount will be so applied on such Distribution Date and the
         Administrator shall instruct the Trustee in writing to make such
         payments.

         SECTION 5.05. INVESTMENT OF FUNDS HELD BY TRUSTEE. The Trustee shall
invest money held for the credit of any Fund or Account or Subaccount held by
the Trustee hereunder as directed in writing (or orally, confirmed in writing)
by an Authorized Representative of the Issuer, to the fullest extent practicable
and reasonable, in Investment Securities which shall mature or be redeemed at
the option of the holder prior to the respective dates when the money held for
the credit of such Fund or Account will be required for the purposes intended.
In the absence of any such direction and to the extent practicable, the Trustee
shall invest amounts held hereunder in those Investment Securities described in

                                       46
<PAGE>

clause (a) of the definition of the Investment Securities. All such investments
shall be held by (or by any custodian on behalf of) the 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
Fund and shall be deemed to constitute a portion of the Available Funds for such
Distribution Date. The Trustee and the Issuer hereby agree that unless an Event
of Default shall have occurred hereunder, the Issuer acting by and through an
Authorized Representative shall be entitled to, and shall, provide written
direction or oral direction confirmed in writing to the Trustee with respect to
any discretionary acts required or permitted of the Trustee under any Investment
Securities and the Trustee shall not take such discretionary acts without such
written direction.

         The Investment Securities purchased shall be held by the Trustee and
shall be deemed at all times to be part of such Fund or Account or Subaccounts
or combination thereof, and the Trustee shall inform the Issuer of the details
of all such investments. Upon direction in writing (or orally, confirmed in
writing) from an Authorized Representative of the Issuer, the Trustee shall use
its best efforts to sell at the best price obtainable, or present for
redemption, any Investment Securities purchased by it as an investment whenever
it shall be necessary to provide money to meet any payment from the applicable
Fund. The Trustee shall advise the Issuer in writing, on or before the fifteenth
day of each calendar month (or such later date as reasonably consented to by the
Issuer), of all investments held for the credit of each Fund in its custody
under the provisions of this Indenture as of the end of the preceding month and
the value thereof, and shall list any investments which were sold or liquidated
for less than the par value thereof, plus accrued but unpaid interest at the
time thereof.

         Money in any Fund constituting a part of the Trust Estate may be pooled
for the purpose of making investments and may be used to pay accrued interest on
Investment Securities purchased. The Trustee and its affiliates may act as
principal or agent in the acquisition or disposition of any Investment
Securities.

         Notwithstanding the foregoing, the Trustee shall not be responsible or
liable for any losses on investments made by it hereunder or for keeping all
Funds held by it, fully invested at all times, its only responsibility being to
comply with the investment instructions of the Issuer or its designee in a
non-negligent manner.

         The Issuer acknowledges that to the extent the regulations of the
Comptroller of the Currency or other applicable regulatory agency grant the
Issuer the right to receive brokerage confirmations of security transactions,
the Issuer waives receipt of such confirmations.

         SECTION 5.06. RELEASE.

                  (a) The Trustee shall, upon Issuer Order and subject to the
         provisions of this Indenture, take all actions reasonably necessary to
         effect the release of any Financed Eligible Loans from the lien of this
         Indenture to the extent the terms hereof permit the sale, disposition
         or transfer of such Financed Eligible Loans.

                                       47
<PAGE>

                  (b) Subject to the payment of its fees and expenses pursuant
         to Section 7.05 and 7.07, the Trustee may, and when required by the
         provisions of this Indenture shall, execute instruments to release
         property from the lien of this Indenture, or convey the Trustee's
         interest in the same, in a manner and under circumstances that are not
         inconsistent with the provisions of this Indenture. No party relying
         upon an instrument executed by the Trustee as provided in this Article
         V shall be bound to ascertain the Trustee's authority, inquire into the
         satisfaction of any conditions precedent or see to the application of
         any moneys.

                  (c) The Trustee shall, at such time as there are no Notes
         Outstanding and all sums due the Trustee pursuant to Section 7.05 and
         7.07 have been paid, release any remaining portion of the Trust Estate
         that secured the Notes from the lien of this Indenture and release to
         the Issuer or any other Person entitled thereto any funds then on
         deposit in the Funds and Accounts. The Trustee shall release property
         from the lien of this Indenture pursuant to this Section 5.06(c) only
         upon receipt of an Issuer Order accompanied by an Officers' Certificate
         of the Issuer, an Opinion of Counsel and (if required by the TIA)
         Independent Certificates in accordance with TIA Sections 314(c) and
         314(d)(1) meeting the applicable requirements of Section 9.01.

                  (d) Subject to the provisions of this Indenture, including
         without limitation Section 9.01, the Trustee shall release property
         from the lien of this Indenture only upon receipt of an Issuer Order
         accompanied by an Officers' Certificate of the Issuer, an Opinion of
         Counsel and Independent Certificates in accordance with TIA Sections
         314(c) and 314(d)(1) or an Opinion of Counsel in lieu of such
         Independent Certificates to the effect that the TIA does not require
         any such Independent Certificates.

                  (e) Each Registered Owner, by the acceptance of a Note,
         acknowledges that from time to time the Trustee shall release the lien
         of this Indenture on any Financed Eligible Loan to be sold to (i) the
         Seller in accordance with the applicable Student Loan Purchase
         Agreement; (ii) to the Servicer in accordance with the Servicing
         Agreement; and (iii) to another eligible lender holding one or more
         serial loans with respect to such Financed Eligible Loan, in accordance
         with the Servicing Agreement, and each Registered Owner, by the
         acceptance of a Note, consents to any such release.

                                   ARTICLE VI

                              DEFAULTS AND REMEDIES

         SECTION 6.01. EVENTS OF DEFAULT DEFINED. For the purpose of this
Indenture, the following events are hereby defined as, and are declared to be,
"Events of Default":

                  (a) default in the due and punctual payment of any interest on
         any Note when the same becomes due and payable, and such default shall
         continue for a period of five (5) days;

                  (b) default in the due and punctual payment of the principal
         of any Note when the same becomes due and payable on the related Noted
         Final Maturity Date;

                                       48
<PAGE>

                  (c) default in the performance or observance of any other of
         the covenants, agreements, or conditions on the part of the Issuer to
         be kept, observed, and performed contained in this Indenture or in the
         Notes, and continuation of such default for a period of 90 days after
         written notice thereof by the Trustee to the Issuer; and

                  (d) the occurrence of an Event of Bankruptcy.

         Any notice herein provided to be given to the Issuer with respect to
any default shall be deemed sufficiently given if sent by registered mail with
postage prepaid to the Person to be notified, addressed to such Person at the
post office address as shown in Section 9.01 of this Indenture or such other
address as may hereafter be given as the principal office of the Issuer in
writing to the Trustee by an Authorized Representative of the Issuer. The
Trustee may give any such notice in its discretion and shall give such notice if
requested to do so in writing by the Registered Owners of at least 51% of the
collective aggregate principal amount of the Highest Priority Obligations at the
time Outstanding ("Registered Owner Approval").

         SECTION 6.02. REMEDY ON DEFAULT; POSSESSION OF TRUST ESTATE. Subject to
Section 6.09 hereof, upon the happening and continuance of any Event of Default,
the Trustee personally or by its attorneys or agents may enter into and upon and
take possession of such portion of the Trust Estate as shall be in the custody
of others, and all property comprising the Trust Estate, and each and every part
thereof, and exclude the Issuer and its agents, servants, and employees wholly
therefrom, and have, hold, use, operate, manage, and control the same and each
and every part thereof, and in the name of the Issuer or otherwise, as they
shall deem best, conduct the business thereof and exercise the privileges
pertaining thereto and all the rights and powers of the Issuer and use all of
the then existing Trust Estate for that purpose, and collect and receive all
charges, income and Revenue of the same and of every part thereof, and after
deducting therefrom all expenses incurred hereunder and all other proper outlays
herein authorized, and all payments which may be made as just and reasonable
compensation for its own services, and for the services of its attorneys,
agents, and assistants, the Trustee shall apply the rest and residue of the
money received by the Trustee as follows:

                           FIRST, to the Trustee and the Delaware Trustee, any
                  Trustee Fee and any Delaware Trustee Fee, respectively due and
                  owing;

                           SECOND, to the Servicer for due and unpaid Servicing
                  Fees;

                           THIRD, to the Counterparties, in proportion to their
                  respective entitlements under the applicable Derivative
                  Products without preference or priority, for any due and
                  unpaid Derivative Product Fees;

                           FOURTH, to the Class A Noteholders for amounts due
                  and unpaid on the Class A Notes for interest, ratably, without
                  preference or priority of any kind, according to the amounts
                  due and payable on the Class A Notes for such interest;

                           FIFTH, to Class A Noteholders for amounts due and
                  unpaid on the Class A Notes for principal, ratably, without
                  preference or priority of any kind, according to the amounts
                  due and payable on the Notes for principal;

                           SIXTH, to the Class B Noteholders for amounts due and
                  unpaid on the Class B Notes for interest;

                                       49
<PAGE>

                           SEVENTH, to the Class B Noteholders for amounts due
                  and unpaid on the Class B Notes for principal, ratably without
                  preference or priority of any kind, according to the amounts
                  due and payable on the Class B Notes for principal;

                           EIGHTH, to the Counterparties, in proportion to the
                  respective entitlements under the applicable Derivative
                  Products without preference or priority, for any due and
                  unpaid Derivative Product Payments;

                           NINTH, to the Servicer, for any unpaid Carryover
                  Servicing Fees; and

                           TENTH, to the Issuer, for distribution in accordance
                  with the terms of the Administrative Services Agreement and
                  the Trust Agreement.

         The Trustee may fix a record date and payment date for any payment to
Registered Owners pursuant to this Section 6.02. At least 15 days before such
record date, the Trustee shall mail to each Registered Owner and the Issuer a
notice that states the record date, the payment date and the amount to be paid.

         SECTION 6.03. REMEDIES ON DEFAULT; ADVICE OF COUNSEL. Upon the
happening of any Event of Default, the Trustee may proceed to protect and
enforce the rights of the Trustee and the Registered Owners in such manner as
counsel for the Trustee may advise, whether for the specific performance of any
covenant, condition, agreement or undertaking herein contained, or in aid of the
execution of any power herein granted, or for the enforcement of such other
appropriate legal or equitable remedies as, in the opinion of such counsel, may
be more effectual to protect and enforce the rights aforesaid.

         SECTION 6.04. REMEDIES ON DEFAULT; SALE OF TRUST ESTATE. Upon the
happening of any Event of Default and if the principal of all of the Outstanding
Obligations shall have been declared due and payable, then and in every such
case, and irrespective of whether other remedies authorized shall have been
pursued in whole or in part, the Trustee may sell, with or without entry, to the
highest bidder the Trust Estate, and all right, title, interest, claim and
demand thereto and the right of redemption thereof, at any such place or places,
and at such time or times and upon such notice and terms as may be required by
law. Upon such sale the Trustee may make and deliver to the purchaser or
purchasers a good and sufficient assignment or conveyance for the same, which
sale shall be a perpetual bar both at law and in equity against the Issuer and
all Persons claiming such properties. No purchaser at any sale shall be bound to
see to the application of the purchase money or to inquire as to the
authorization, necessity, expediency or regularity of any such sale. The Trustee
is hereby irrevocably appointed the true and lawful attorney-in-fact of the
Issuer, in its name and stead, to make and execute all bills of sale,
instruments of assignment and transfer and such other documents of transfer as
may be necessary or advisable in connection with a sale of all or part of the
Trust Estate, but the Issuer, if so requested by the Trustee, shall ratify and
confirm any sale or sales by executing and delivering to the Trustee or to such
purchaser or purchasers all such instruments as may be necessary, or in the
judgment of the Trustee, proper for the purpose which may be designated in such
request. In addition, the Trustee may proceed to protect and enforce the rights
of the Trustee and the Registered Owners of the Obligations in such manner as
counsel for the Trustee may advise, whether for the specific performance of any
covenant, condition, agreement or undertaking herein contained, or in aid of the

                                       50
<PAGE>

execution of any power herein granted, or for the enforcement of such other
appropriate legal or equitable remedies as may in the opinion of such counsel,
be more effectual to protect and enforce the rights aforesaid. The Trustee shall
take any such action or actions if requested to do so in writing by the
Registered Owners of at least 51% of the collective aggregate principal amount
of the Highest Priority Obligations at the time Outstanding.

         SECTION 6.05. APPOINTMENT OF RECEIVER. In case an Event of Default
occurs, and if all of the Outstanding Obligations shall have been declared due
and payable and in case any judicial proceedings are commenced to enforce any
right of the Trustee or of the Registered Owners under this Indenture or
otherwise, then as a matter of right, the Trustee shall be entitled to the
appointment of a receiver of the Trust Estate and of the earnings, income or
Revenue, rents, issues and profits thereof with such powers as the court making
such appointments may confer.

         SECTION 6.06. RESTORATION OF POSITION. In case the Trustee shall have
proceeded to enforce any rights under this Indenture by sale or otherwise, and
such proceedings shall have been discontinued, or shall have been determined
adversely to the Trustee, then and in every such case to the extent not
inconsistent with such adverse decree, the Issuer, the Trustee and the
Registered Owners shall be restored to their former respective positions and the
rights hereunder in respect to the Trust Estate, and all rights, remedies, and
powers of the Trustee and of the Registered Owners shall continue as though no
such proceeding had been taken.

         SECTION 6.07. PURCHASE OF PROPERTIES BY TRUSTEE OR REGISTERED OWNERS.
In case of any such sale of the Trust Estate, any Registered Owner or Registered
Owners or committee of Registered Owners or the Trustee, may bid for and
purchase such property and upon compliance with the terms of sale may hold,
retain possession, and dispose of such property as the absolute right of the
purchaser or purchasers without further accountability and shall be entitled,
for the purpose of making any settlement or payment for the property purchased,
to use and apply any Obligations hereby secured and any interest thereon due and
unpaid, by presenting such Obligations in order that there may be credited
thereon the sum apportionable and applicable thereto out of the net proceeds of
such sale, and thereupon such purchaser or purchasers shall be credited on
account of such purchase price payable to him or them with the sum apportionable
and applicable out of such net proceeds to the payment of or as a credit on the
Obligations so presented.

         SECTION 6.08. APPLICATION OF SALE PROCEEDS. The proceeds of any sale of
the Trust Estate, together with any funds at the time held by the Trustee and
not otherwise appropriated, shall be applied by the Trustee as set forth in
Section 6.02 hereof, and then to the Issuer or whomsoever shall be lawfully
entitled thereto.

         SECTION 6.09. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an
Event of Default should occur and be continuing, then and in every such case the
Trustee or the Registered Owners of Obligations representing not less than a
majority of the Outstanding Amount of the Obligations may declare all the
Obligations to be immediately due and payable, by a notice in writing to the
Issuer (and to the Trustee if given by Registered Owners), and upon any such
declaration the unpaid principal amount of such Obligations, together with
accrued and unpaid interest thereon through the date of acceleration, shall
become immediately due and payable, subject, however, to Section 6.04 of this
Indenture.

                                       51
<PAGE>

         At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Article VI provided, the
Registered Owners of Obligations representing a majority of the collective
aggregate principal amount of Obligations then Outstanding, by written notice to
the Issuer and the Trustee, may rescind and annul such declaration and its
consequences if:

                  (a) the Issuer has paid or deposited with the Trustee a sum
         sufficient to pay:

                           (i) all payments of principal of and interest on all
                  Obligations and all other amounts that would then be due
                  hereunder or upon such Obligations if the Event of Default
                  giving rise to such acceleration had not occurred; and

                           (ii) all sums paid or advanced by the Trustee
                  hereunder and the reasonable compensation, expenses,
                  disbursements and advances of the Trustee and its agents and
                  counsel; and

                  (b) all Events of Default, other than the nonpayment of the
         principal of the Obligations that has become due solely by such
         acceleration, have been cured or waived as provided in Section 6.15
         hereof.

         No such rescission shall affect any subsequent default or impair any
right consequent thereto.

         SECTION 6.10. REMEDIES NOT EXCLUSIVE. The remedies herein conferred
upon or reserved to the Trustee or the Registered Owners of Obligations are not
intended to be exclusive of any other remedy, but each remedy herein provided
shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing, and every power and remedy hereby given
to the Trustee or to the Registered Owners of Obligations, or any supplement
hereto, may be exercised from time to time as often as may be deemed expedient.
No delay or omission of the Trustee or of any Registered Owner of Obligations to
exercise any power or right arising from any default hereunder shall impair any
such right or power or shall be construed to be a waiver of any such default or
to be acquiescence therein.

         SECTION 6.11. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE. The Issuer covenants that if:

                  (a) default is made in the payment of any installment of
         interest, if any, on any Notes when such interest becomes due and
         payable and such default continues for a period of five (5) days; or

                  (b) default is made in the payment of the principal of (or
         premium, if any, on) any Notes at its Note Final Maturity Date,

                                       52
<PAGE>

then the Issuer will, upon demand of the Trustee, pay to the Trustee, for the
benefit of the Registered Owners, the whole amount then due and payable on such
Notes for principal (and premium, if any) and interest, with interest upon any
overdue principal (and premium, if any) and, to the extent that payment of such
interest shall be legally enforceable, upon any overdue installments of
interest, if any, at the rate or rates borne by or provided for in such Notes,
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee and its agents and counsel.

         If the Issuer fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as Trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, may
prosecute such proceeding to judgment or final decree, and may enforce the same
against the Issuer or any other obligor upon such Notes of such series and
collect the moneys adjudged or decreed to be payable in the manner provided by
law out of the property of the Issuer or any other obligor upon such Notes,
wherever situated.

         If an Event of Default with respect to Notes occurs and is continuing,
the Trustee may, after being indemnified to its satisfaction and in its
discretion, proceed to protect and enforce its rights and the rights of the
Registered Owners of Notes and any related coupons by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any
such rights, whether for the specific enforcement of any covenant or agreement
in this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy.

         SECTION 6.12. DIRECTION OF TRUSTEE. Upon the happening of any Event of
Default, the Registered Owners of at least 51% of the collective aggregate
principal amount of the Highest Priority Obligations then Outstanding, shall
have the right by an instrument or instruments in writing delivered to the
Trustee to direct and control the Trustee as to the method of taking any and all
proceedings for any sale of any or all of the Trust Estate, or for the
appointment of a receiver, if permitted by law, and may at any time cause any
proceedings authorized by the terms hereof to be so taken or to be discontinued
or delayed; provided, however, that such Registered Owners shall not be entitled
to cause the Trustee to take any proceedings which in the Trustee's opinion
would be unjustly prejudicial to non-assenting Registered Owners of Obligations,
but the Trustee shall be entitled to assume that the action requested by the
Registered Owners of at least 51% of the collective aggregate principal amount
of the Highest Priority Obligations then Outstanding will not be prejudicial to
any non-assenting Registered Owners unless the Registered Owners of more than
50% of the collective aggregate principal amount of the non-assenting Registered
Owners of such Obligations, in writing, show the Trustee how they will be
prejudiced. Provided, however, that anything in this Indenture to the contrary
notwithstanding, the Registered Owners of a majority of the collective aggregate
principal amount of the Highest Priority Obligations then Outstanding together
with the Registered Owners of a majority of the collective aggregate principal
amount of all other Obligations then Outstanding shall have the right, at any
time, by an instrument or instruments in writing executed and delivered to the
Trustee, to direct the method and place of conducting all proceedings to be
taken in connection with the enforcement of the terms and conditions of this
Indenture, or for the appointment of a receiver or any other proceedings
hereunder, provided that such direction shall not be otherwise than in
accordance with the provisions of law and of this Indenture. The provisions of
this Section 6.12 shall be expressly subject to the provisions of Sections
7.01(c) and 7.05 hereof. 53
<PAGE>

         SECTION 6.13. RIGHT TO ENFORCE IN TRUSTEE. No Registered Owner of any
Obligation shall have any right as such Registered Owner to institute any suit,
action, or proceedings for the enforcement of the provisions of this Indenture
or for the execution of any trust hereunder or for the appointment of a receiver
or for any other remedy hereunder, all rights of action hereunder being vested
exclusively in the Trustee, unless and until such Registered Owner shall have
previously given to the Trustee written notice of a default hereunder, and of
the continuance thereof, and also unless the Registered Owners of the requisite
principal amount of the Obligations then Outstanding shall have made written
request upon the Trustee and the Trustee shall have been afforded reasonable
opportunity to institute such action, suit or proceeding in its own name, and
unless the Trustee shall have been offered indemnity and security satisfactory
to it against the costs, expenses, and liabilities to be incurred therein or
thereby, which offer of indemnity shall be an express condition precedent
hereunder to any obligation of the Trustee to take any such action hereunder,
and the Trustee for 30 days after receipt of such notification, request, and
offer of indemnity, shall have failed to institute any such action, suit or
proceeding. It is understood and intended that no one or more Registered Owners
of the Obligations shall have the right in any manner whatever by his or their
action to affect, disturb, or prejudice the lien of this Indenture or to enforce
any right hereunder except in the manner herein provided and for the equal
benefit of the Registered Owners of not less than a majority of the collective
aggregate principal amount of the Obligations then Outstanding.

         SECTION 6.14. PHYSICAL POSSESSION OF OBLIGATIONS NOT REQUIRED. In any
suit or action by the Trustee arising under this Indenture or on all or any of
the Obligations issued hereunder, or any supplement hereto, the Trustee shall
not be required to produce such Obligations, but shall be entitled in all things
to maintain such suit or action without their production.

         SECTION 6.15. WAIVERS OF EVENTS OF DEFAULT. The Trustee may in its
discretion waive any Event of Default hereunder and its consequences and rescind
any declaration of acceleration of Obligations, and shall do so upon the written
request of the Registered Owners of at least a majority of the collective
aggregate principal amount of the Highest Priority Obligations then Outstanding;
provided, however, that there shall not be waived (a) any Event of Default in
the payment of the principal of or premium on any Outstanding Obligations at the
date of maturity thereof, or any default in the payment when due of the interest
on any such Obligations, unless prior to such waiver or rescission, all arrears
of interest or all arrears of payments of principal and all expenses of the
Trustee, in connection with such default shall have been paid or provided for or
(b) any default in the payment of amounts set forth in Section 7.05 hereof. In
case of any such waiver or rescission, or in case any proceedings taken by the
Trustee on account of any such default shall have been discontinued or abandoned
or determined adversely to the Trustee, then and in every such case the Issuer,
the Trustee and the Registered Owners of Obligations shall be restored to their
former positions and rights hereunder respectively, but no such waiver or
rescission shall extend to or affect any subsequent or other default, or impair
any rights or remedies consequent thereon.

                                       54
<PAGE>

                                   ARTICLE VII

                                   THE TRUSTEE

         SECTION 7.01. ACCEPTANCE OF TRUST. The Trustee hereby accepts the
trusts imposed upon it by this Indenture, and agrees to perform said trusts, but
only upon and subject to the following terms and conditions:

                  (a) Except during the continuance of an Event of Default,

                           (i) the Trustee undertakes to perform such duties and
                  only such duties as are specifically set forth in this
                  Indenture, and no implied covenants or obligations shall be
                  read into this Indenture against the Trustee; and

                           (ii) in the absence of bad faith on its part, the
                  Trustee may conclusively rely, as to the truth of the
                  statements and the correctness of the opinions expressed
                  therein, upon certificates or opinions furnished to the
                  Trustee and conforming to the requirements of this Indenture;
                  but in the case of any such certificates or opinions which by
                  any provisions hereof are specifically required to be
                  furnished to the Trustee, the Trustee shall be under a duty to
                  examine the same to determine whether or not they conform as
                  to form with the requirements of this Indenture and whether or
                  not they contain the statements required under this Indenture.

                  (b) In case an Event of Default has occurred and is
         continuing, the Trustee, in exercising the rights and powers vested in
         it by this Indenture, shall use the same degree of care and skill in
         their exercise as a prudent person would exercise or use under the
         circumstances in the conduct of his or her own affairs.

                  (c) Before taking any action hereunder requested by Registered
         Owners, the Trustee may require that it be furnished an indemnity bond
         or other indemnity and security satisfactory to it by the Registered
         Owners, as applicable, for the reimbursement of all expenses to which
         it may be put and to protect it against all liability.

         SECTION 7.02. RECITALS OF OTHERS. The recitals, statements and
representations set forth herein and in the Notes shall be taken as the
statements of the Issuer, and the Trustee assumes no responsibility for the
correctness of the same. The Trustee makes no representations as to the title of
the Issuer in the Trust Estate or as to the security afforded thereby and
hereby, or as to the validity or sufficiency of this Indenture or of the Notes
issued hereunder, and the Trustee shall incur no responsibility in respect of
such matters.

         SECTION 7.03. AS TO FILING OF INDENTURE. The Trustee shall be under no
duty (a) to file or record, or cause to be filed or recorded, this Indenture or
any instrument supplemental hereto, (b) or to procure any further order or
additional instruments of further assurance, (c) to see to the delivery to it of
any personal property intended to be mortgaged or pledged hereunder or
thereunder, (d) or to do any act which may be suitable to be done for the better

                                       55
<PAGE>

maintenance of the lien or security hereof (other than the filing of any
continuation (but not initial) statements), or (e) for giving notice of the
existence of such lien, or for extending or supplementing the same or to see
that any rights to Revenue and Funds intended now or hereafter to be transferred
in trust hereunder are subject to the lien hereof. The Trustee shall not be
liable for failure of the Issuer to pay any tax or taxes in respect of such
property, or any part thereof, or the income therefrom or otherwise, nor shall
the Trustee be under any duty in respect of any tax which may be assessed
against it or the Registered Owners in respect of such property or pledged
Revenue and Funds. The Trustee agrees to prepare, request that the Issuer
execute (if such execution is necessary for any such filing) and file in a
timely manner (if received from the Issuer in a timely manner) with any
necessary execution by the Issuer, the continuation statements referred to
herein; provided, that the Trustee shall have no responsibility for the
sufficiency, adequacy or priority of any initial filing and in the absence of
written notice to the contrary by the Issuer or other Authorized Representative,
may rely and shall be protected in relying on all information and exhibits in
such initial filings for the purposes of any continuation statements.

         SECTION 7.04. TRUSTEE MAY ACT THROUGH AGENTS. The Trustee may execute
any of the trusts or powers hereof and perform any duty hereunder, either itself
or by or through its attorneys, agents, or employees, and it shall not be
answerable or accountable for any default, neglect, or misconduct of any such
attorneys, agents, or employees, if reasonable care has been exercised in the
appointment, supervision, and monitoring of the work performed. All reasonable
costs incurred by the Trustee and all reasonable compensation to all such
persons as may reasonably be employed in connection with the trusts hereof shall
be paid by the Issuer.

         SECTION 7.05. INDEMNIFICATION OF TRUSTEE. Other than with respect to
its duties to make payment on the Obligations when due, and its duty to pursue
the remedy of acceleration as provided in Section 6.02 hereof, for each of which
no additional security or indemnity may be required, the Trustee shall be under
no obligation or duty to perform any act at the request of Registered Owners or
to institute or defend any suit in respect thereof unless properly indemnified
and provided with security to its satisfaction as provided in Section 7.01(c)
hereof. The Trustee shall not be required to take notice, or be deemed to have
knowledge, of any default or Event of Default of the Issuer hereunder and may
conclusively assume that there has been no such default or Event of Default
(other than an Event of Default described in Sections 6.01(a), (b) or (c)
hereof) unless and until it shall have been specifically notified in writing at
the address in Section 9.01 hereof of such default or Event of Default by (a)
the Registered Owners of the required percentages in principal amount of the
Obligations then Outstanding hereinabove specified or (b) an Authorized
Representative of the Issuer. However, the Trustee may begin suit, or appear in
and defend suit, execute any of the trusts hereby created, enforce any of its
rights or powers hereunder, or do anything else in its judgment proper to be
done by it as Trustee, without assurance of reimbursement or indemnity, and in
such case the Trustee shall be reimbursed or indemnified by the Registered
Owners requesting such action, if any, or the Issuer in all other cases, for all
fees, costs and expenses, liabilities, outlays and counsel fees and other
reasonable disbursements properly incurred in connection therewith, unless such
costs and expenses, liabilities, outlays and attorneys' fees and other
reasonable disbursements properly incurred in connection therewith are
adjudicated to have resulted from the negligence or willful misconduct of the
Trustee. In furtherance and not in limitation of this Section 7.05, the Trustee
shall not be liable for, and shall be held harmless by the Issuer from,
following any Issuer Orders, instructions or other directions upon which the
Trustee is authorized to rely pursuant to this Indenture or any other agreement
to which it is a party. If the Issuer or the Registered Owners, as appropriate,
shall fail to make such reimbursement or indemnification, the Trustee may

                                       56
<PAGE>

reimburse itself from any money in its possession under the provisions of this
Indenture, subject only to the prior lien of the Notes for the payment of the
principal thereof, premium, if any, and interest thereon from the Collection
Fund. None of the provisions contained in this Indenture or any other Agreement
to which it is a party shall require the Trustee to act or to expend or risk its
own funds or otherwise incur individual financial liability in the performance
of any of its duties or in the exercise of any of its rights or powers if the
Registered Owners shall not have offered security and indemnity acceptable to it
or if it shall have reasonable grounds for believing that prompt repayment of
such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

         The Issuer agrees to indemnify the Trustee for, and to hold it harmless
against, any loss, liability or expenses incurred without negligence or bad
faith on its part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and
expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder arising
from the Trust Estate. The Issuer agrees to indemnify and hold harmless the
Trustee against any and all claims, demands, suits, actions or other proceedings
and all liabilities, costs and expenses whatsoever caused by any untrue
statement or misleading statement or alleged untrue statement or alleged
misleading statement of a material fact contained in any offering document
distributed in connection with the issuance of the Notes or caused by any
omission or alleged omission from such offering document of any material fact
required to be stated therein or necessary in order to make the statements made
therein in the light of the circumstances under which they were made, not
misleading.

         SECTION 7.06. TRUSTEE'S RIGHT TO RELIANCE. The Trustee shall be
protected in acting upon any notice, resolution, request, consent, order,
certificate, report, appraisal, opinion, report or document of the Issuer or the
Servicer or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties. The Trustee may consult
with experts and with counsel (who may but need not be counsel for the Issuer,
the Trustee, or for a Registered Owner), and the opinion of such counsel shall
be full and complete authorization and protection in respect of any action taken
or suffered, and in respect of any determination made by it hereunder in good
faith and in accordance with the opinion of such counsel.

         Whenever in the administration hereof the Trustee shall reasonably deem
it desirable that a matter be proved or established prior to taking, suffering,
or omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, rely upon
a certificate signed by an Authorized Representative of the Issuer or an
authorized officer of the Administrator or the Servicer.

         The Trustee shall not be liable for any action taken, suffered, or
omitted by it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it hereby; provided, however, that
the Trustee shall be liable for its negligence or willful misconduct in taking
such action.

                                       57
<PAGE>

         The Trustee is authorized to enter into agreements with other Persons,
in its capacity as Trustee, in order to carry out or implement the terms and
provisions of this Indenture. The Trustee shall not be liable with respect to
any action taken, suffered or omitted to be taken in good faith in accordance
with this Indenture or any other transaction document or at the direction of the
Registered Owners evidencing the appropriate percentage of the aggregate
principal amount of the Outstanding Notes relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture
or any other transaction document.

         SECTION 7.07. COMPENSATION OF TRUSTEE. Except as otherwise expressly
provided herein, all advances, counsel fees (including without limitation
allocated fees of in-house counsel) and other expenses reasonably made or
incurred by the Trustee in and about the execution and administration of the
trust hereby created and reasonable compensation to the Trustee for its services
in the premises shall be paid by the Issuer. The compensation of the Trustee
shall not be limited to or by any provision of law in regard to the compensation
of trustees of an express trust. The Trustee shall not change the amount of its
annual compensation without giving the Issuer at least 90 days' written notice
prior to the beginning of a Fiscal Year. If not paid by the Issuer, the Trustee
shall have a lien against all money held pursuant to this Indenture, subject
only to the prior lien of the Obligations against the money and investments in
the Collection Fund for the payment of the principal thereof, premium, if any,
and interest thereon, for such reasonable compensation, expenses, advances and
counsel fees incurred in and about the execution of the trusts hereby created
and the exercise and performance of the powers and duties of the Trustee
hereunder and the cost and expense incurred in defending against any liability
in the premises of any character whatsoever (unless such liability is
adjudicated to have resulted from the negligence or willful misconduct of the
Trustee).

SECTION 7.08. TRUSTEE MAY OWN NOTES. The Trustee shall comply with TIA Section
311(a), excluding any creditor relationship listed in TIA Section 311(b). A
Trustee who has resigned or been removed shall be subject to TIA Section 311(a)
to the extent indicated therein. The Trustee hereunder, or any successor
Trustee, in its individual or other capacity, may become the owner or pledgee of
Notes and may otherwise deal with the Issuer, with the same rights it would have
if it were not the Trustee. The Trustee may act as depository for, and permit
any of its officers or directors to act as a member of, or act in any other
capacity in respect to, any committee formed to protect the rights of the
Registered Owners or to effect or aid in any reorganization growing out of the
enforcement of the Notes or of this Indenture, whether or not any such committee
shall represent the Registered Owners of more than 60% of the collective
aggregate principal amount of the Outstanding Obligations.

         SECTION 7.09. RESIGNATION OF TRUSTEE. The Trustee and any successor to
the Trustee may resign and be discharged from the trust created by this
Indenture by giving to the Issuer notice in writing which notice shall specify
the date on which such resignation is to take effect; provided, however, that
such resignation shall only take effect on the day specified in such notice if a
successor Trustee shall have been appointed pursuant to Section 7.11 hereof (and
is qualified to be the Trustee under the requirements of Section 7.11 hereof).
If no successor Trustee has been appointed by the date specified or within a
period of 90 days from the receipt of the notice by the Issuer, whichever period
is the longer, the Trustee may (a) appoint a temporary successor Trustee having
the qualifications provided in Section 7.11 hereof or (b) request a court of
competent jurisdiction to (i) require the Issuer to appoint a successor, as
provided in Section 7.11 hereof, within three days of the receipt of citation or

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notice by the court, or (ii) appoint a Trustee having the qualifications
provided in Section 7.11 hereof. In no event may the resignation of the Trustee
be effective until a qualified successor Trustee shall have been selected and
appointed. In the event a temporary successor Trustee is appointed pursuant to
(a) above, the Issuer may remove such temporary successor Trustee and appoint a
successor thereto pursuant to Section 7.11 hereof.

         SECTION 7.10. REMOVAL OF TRUSTEE. The Trustee or any successor Trustee
may be removed (a) at any time by the Registered Owners of a majority of the
collective aggregate principal amount of the Highest Priority Obligations then
Outstanding, (b) by the Issuer for cause or upon the sale or other disposition
of the Trustee or its corporate trust functions or (c) by the Issuer without
cause so long as no Event of Default exists or has existed within the last 30
days, upon payment to the Trustee so removed of all money then due to it
hereunder and appointment of a successor thereto by the Issuer and acceptance
thereof by said successor. One copy of any such order of removal shall be filed
with the Delaware Trustee and the other with the Trustee so removed.

         In the event a Trustee (or successor Trustee) is removed, by any person
or for any reason permitted hereunder, such removal shall not become effective
until (a) in the case of removal by the Registered Owners, such Registered
Owners by instrument or concurrent instruments in writing (signed and
acknowledged by such Registered Owners or their attorneys-in-fact) filed with
the Trustee removed have appointed a successor Trustee or otherwise the Issuer
shall have appointed a successor, and (b) the successor Trustee has accepted
appointment as such.

         SECTION 7.11. SUCCESSOR TRUSTEE. In case at any time the Trustee or any
successor Trustee shall resign, be dissolved, or otherwise shall be disqualified
to act or be incapable of acting, or in case control of the Trustee or of any
successor Trustee or of its officers shall be taken over by any public officer
or officers, a successor Trustee may be appointed by the Issuer by an instrument
in writing duly authorized by the Issuer. In the case of any such appointment by
the Issuer of a successor to the Trustee, the Issuer shall forthwith cause
notice thereof to be mailed to the Registered Owners of the Notes at the address
of each Registered Owner appearing on the note registration books maintained by
the Registrar.

         Every successor Trustee appointed by the Registered Owners, by a court
of competent jurisdiction, or by the Issuer shall be a bank or trust company in
good standing, organized and doing business under the laws of the United States
or of a state therein, which has a reported capital and surplus of not less than
$50,000,000, be authorized under the law to exercise corporate trust powers, be
subject to supervision or examination by a federal or state authority, and be an
Eligible Lender so long as such designation is necessary to maintain guarantees
and federal benefits under the Act with respect to the Financed Eligible Loans
originated under the Act.

         SECTION 7.12. MANNER OF VESTING TITLE IN TRUSTEE. Any successor Trustee
appointed hereunder shall execute, acknowledge, and deliver to its predecessor
Trustee, and also to the Issuer, an instrument accepting such appointment
hereunder, and thereupon such successor Trustee, without any further act, deed,
or conveyance shall become fully vested with all the estate, properties, rights,
powers, trusts, duties, and obligations of its predecessors in trust hereunder
(except that the predecessor Trustee shall continue to have the benefits to

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<PAGE>

indemnification hereunder together with the successor Trustee), with like effect
as if originally named as Trustee herein; but the Trustee ceasing to act shall
nevertheless, on the written request of an Authorized Representative of the
Issuer, or an authorized officer of the successor Trustee, execute, acknowledge,
and deliver such instruments of conveyance and further assurance and do such
other things as may reasonably be required for more fully and certainly vesting
and confirming in such successor Trustee all the right, title, and interest of
the Trustee which it succeeds, in and to pledged Revenue and Funds and such
rights, powers, trusts, duties, and obligations, and the Trustee ceasing to act
also, upon like request, pay over, assign, and deliver to the successor Trustee
any money or other property or rights subject to the lien of this Indenture,
including any pledged securities which may then be in its possession. Should any
deed or instrument in writing from the Issuer be required by the successor
Trustee for more fully and certainly vesting in and confirming to such new
Trustee such estate, properties, rights, powers, and duties, any and all such
deeds and instruments in writing shall on request be executed, acknowledged and
delivered by the Issuer.

         In case any of the Notes to be issued hereunder shall have been
authenticated but not delivered, any successor Trustee may adopt the certificate
of authentication of the Trustee or of any successor to the Trustee; and in case
any of the Notes shall not have been authenticated, any successor to the Trustee
may authenticate such Notes in its own name; and in all such cases such
certificate shall have the full force which it has anywhere in the Notes or in
this Indenture.

         SECTION 7.13. ADDITIONAL COVENANTS BY THE TRUSTEE TO CONFORM TO THE
ACT. The Trustee covenants that it will at all times be an Eligible Lender under
the Act so long as such designation is necessary, as determined by the Issuer,
to maintain the guarantees and federal benefits under the Act with respect to
the Financed Eligible Loans, that it will acquire Eligible Loans originated
under the Act in its capacity as an Eligible Lender and that it will not dispose
of or deliver any Financed Eligible Loans originated under the Act or any
security interest in any such Financed Eligible Loans to any party who is not an
Eligible Lender so long as the Act or Regulations adopted thereunder require an
Eligible Lender to be the owner or holder of such Financed Eligible Loans;
provided, however, that nothing above shall prevent the Trustee from delivering
the Eligible Loans to the Servicer or the Guaranty Agency.

         SECTION 7.14. RIGHT OF INSPECTION. A Registered Owner shall be
permitted at reasonable times during regular business hours and in accordance
with reasonable regulations prescribed by the Trustee to examine at the
principal office of the Trustee a copy of any report or instrument theretofore
filed with the Trustee relating to the condition of the Trust Estate.

         SECTION 7.15. LIMITATION WITH RESPECT TO EXAMINATION OF REPORTS. Except
as provided in this Indenture, the Trustee shall be under no duty to examine any
report or statement or other document required or permitted to be filed with it
by the Issuer.

         SECTION 7.16. SERVICING AGREEMENT. The Trustee acknowledges the receipt
of a copy of the Servicing Agreement described in Section 4.05 hereof.

         SECTION 7.17. ADDITIONAL COVENANTS OF TRUSTEE. The Trustee, by the
execution hereof, covenants, represents and agrees that:

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<PAGE>

                  (a) it will not exercise any of the rights, duties, or
         privileges under this Indenture in such manner as would cause the
         Eligible Loans held or acquired under the terms hereof to be
         transferred, assigned, or pledged as security to any person or entity
         other than as permitted by this Indenture; and

                  (b) it will comply with the Act and the Regulations and will,
         upon written notice from an Authorized Representative of the Issuer,
         the Secretary, or the Guaranty Agency, use its reasonable efforts to
         cause this Indenture to be amended (in accordance with Section 8.01
         hereof) if the Act or Regulations are hereafter amended so as to be
         contrary to the terms of this Indenture.

         SECTION 7.18. DUTY OF TRUSTEE WITH RESPECT TO RATING AGENCIES. It shall
be the duty of the Trustee to notify each Rating Agency then rating any of the
Notes (but the Trustee shall incur no liability for any failure to do so) of (a)
any change, expiration, extension, or renewal of this Indenture, (b) redemption
or defeasance of all the Notes, (c) any change in the Trustee or (d) any other
information reasonably required to be reported to each Rating Agency under any
Supplemental Indenture; provided, however, the provisions of this Section do not
apply when such documents have been previously supplied to such Rating Agency
and the Trustee has received written evidence to such effect, all as may be
required by this Indenture. All notices required to be forwarded to the Rating
Agencies under this Section shall be sent in writing at the following addresses:

                           Standard & Poor's Ratings Group
                           55 Water Street
                           New York, New York  10041
                           Attention:     Asset-Backed Surveillance Group

                           Fitch, Inc.
                           One State Street Plaza
                           New York, New York  10004
                           Attention:     Structured Finance

                           Moody's Investors Service
                           99 Church Street
                           New York, New York  10007
                           Attention:     ABS Monitoring Group

         The Trustee also acknowledges that each Rating Agency's periodic review
for maintenance of a Rating on any series of the Notes may involve discussions
and/or meetings with representatives of the Trustee at mutually agreeable times
and places.

         SECTION 7.19. MERGER OF THE TRUSTEE. Any corporation into which the
Trustee may be merged or with which it may be consolidated, or any corporation
resulting from any merger or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder, provided such corporation shall be otherwise qualified and eligible
under this Indenture, without the execution or filing of any paper of any
further act on the part of any other parties hereto.

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<PAGE>

         SECTION 7.20. RECEIPT OF FUNDS FROM SERVICER. The Trustee shall not be
accountable or responsible in any manner whatsoever for any action of the
Issuer, the Administrator, the depository bank of any funds of the Issuer, or
the Servicer while the Servicer is acting as bailee or agent of the Trustee with
respect to the Eligible Loans except, to the extent provided in any Servicing
Agreement or custodian agreement, for actions taken in compliance with any
instruction or direction given to the Trustee, or for the application of funds
or moneys by the Servicer until such time as funds are received by the Trustee.

         SECTION 7.21. SPECIAL CIRCUMSTANCES LEADING TO RESIGNATION OF TRUSTEE.
Because the Trustee serves as trustee hereunder for Obligations of different
priorities, it is possible that circumstances may arise which will cause the
Trustee to resign from its position as trustee for one or more of the
Obligations. In the event that the Trustee makes a determination that it should
so resign, due to the occurrence of an Event of Default or potential default
hereunder, or otherwise, the Issuer may permit such resignation as to one or
more of the Obligations or request the Trustee's resignation as to all
Obligations, as the Issuer may elect. If the Issuer should determine that a
conflict of interest has arisen as to the trusteeship of any of the Obligations,
it may authorize and execute a Supplemental Indenture with one or more successor
Trustees, under which the administration of certain of the Obligations would be
separated from the administration of the other Obligations.

         SECTION 7.22. SURVIVAL OF TRUSTEE'S RIGHTS TO RECEIVE COMPENSATION,
REIMBURSEMENT AND INDEMNIFICATION. The Trustee's rights to receive compensation,
reimbursement and indemnification of money due and owing hereunder at the time
of the Trustee's resignation or removal shall survive the Trustee's resignation
or removal.

         SECTION 7.23. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY; CONFLICTING
INTERESTS. There shall at all times be a Trustee hereunder which shall be
eligible to act as Trustee under TIA Section 310(a)(1) and shall have a combined
capital and surplus of at least $50,000,000. If such corporation publishes
reports of condition at least annually, pursuant to law or the requirements of
federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section 7.23, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 7.23, it shall resign immediately in the manner and
with the effect hereinafter specified in this Article VII. Neither the Issuer
nor any Person directly or indirectly controlling or controlled by, or under
common control with, the Issuer shall serve as Trustee.

         SECTION 7.24. TRUSTEE MAY FILE PROOFS OF CLAIM. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Issuer or any other obligor upon the Notes or the property of the Issuer or
of such other obligor or their creditors, the Trustee (irrespective of whether
the principal of the Notes of any series shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether the
Trustee shall have made any demand on the Issuer for the payment of overdue
principal, premium, if any, or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise:

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<PAGE>

                  (a) to file and prove a claim for the whole amount, or such
         lesser amount as may be provided for in the Notes, of principal (and
         premium, if any) and interest, if any, owing and unpaid in respect of
         the Notes and to file such other papers or documents as may be
         necessary or advisable in order to have the claims of the Trustee
         (including any claim for the reasonable compensation, expenses,
         disbursements and advances of the Trustee and its agents and counsel)
         and of the Registered Owners allowed in such judicial proceeding; and

                  (b) to collect and receive any money or other property payable
         or deliverable on any such claims and to distribute the same; and any
         custodian, receiver, assignee, trustee, liquidator, sequestrator (or
         other similar official) in any such judicial proceeding is hereby
         authorized by each Registered Owner of Notes to make such payments to
         the Trustee, and if the Trustee shall consent to the making of such
         payments directly to the Registered Owners, to pay to the Trustee any
         amount due to it for the reasonable compensation, expenses,
         disbursements and advances of the Trustee and any predecessor Trustee,
         their agents and counsel, and any other amounts due the Trustee or any
         predecessor Trustee.

         Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Registered Owner of
a Note any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Registered Owner thereof, or to
authorize the Trustee to vote in respect of the claim of any Registered Owner of
a Note in any such proceeding.

         In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party), the Trustee shall be held to represent all the
Registered Owners of the Notes, and it shall not be necessary to make any
Registered Owners of the Notes parties to any such proceedings.

                                  ARTICLE VIII

                             SUPPLEMENTAL INDENTURES

         SECTION 8.01. SUPPLEMENTAL INDENTURES NOT REQUIRING CONSENT OF
REGISTERED OWNERS. The Issuer and the Trustee may, without the consent of or
notice to any of the Registered Owners of any Obligations enter into any
indenture or indentures supplemental to this Indenture for any one or more of
the following purposes:

                  (a) to cure any ambiguity or formal defect or omission in this
         Indenture;

                  (b) to grant to or confer upon the Trustee for the benefit of
         the Registered Owners any additional benefits, rights, remedies, powers
         or authorities that may lawfully be granted to or conferred upon the
         Registered Owners or the Trustee;

                  (c) to subject to this Indenture additional revenues,
         properties or collateral;

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<PAGE>

                  (d) to modify, amend or supplement this Indenture or any
         indenture supplemental hereto in such manner as to permit the
         qualification hereof and thereof under the Trust Indenture Act of 1939
         or any similar federal statute hereafter in effect or to permit the
         qualification of the Notes for sale under the securities laws of the
         United States of America or of any of the states of the United States
         of America, and, if they so determine, to add to this Indenture or any
         indenture supplemental hereto such other terms, conditions and
         provisions as may be permitted by said Trust Indenture Act of 1939 or
         similar federal statute;

                  (e) to evidence the appointment of a separate or co-Trustee or
         a co-registrar or transfer agent or the succession of a new Trustee
         hereunder, or any additional or substitute Guaranty Agency or Servicer;

                  (f) to add such provisions to or to amend such provisions of
         this Indenture as may be necessary or desirable to assure
         implementation of the Program in conformance with the Act if along with
         such Supplemental Indenture there is filed an opinion of counsel to the
         effect that the addition or amendment of such provisions will in no way
         impair the existing security of the Registered Owners of any
         Outstanding Obligations;

                  (g) to make any change as shall be necessary in order to
         obtain and maintain for any of the Notes an investment grade Rating
         from a nationally recognized rating service, which changes, in the
         opinion of the Trustee are not to the prejudice of the Registered Owner
         of any of the Obligations;

                  (h) to make any changes necessary to comply with the Act, the
         Regulations or the Code and the regulations promulgated thereunder;

                  (i) to make the terms and provisions of this Indenture,
         including the lien and security interest granted herein, applicable to
         a Derivative Product, and to modify Section 3.03 hereof with respect to
         any particular Derivative Product;

                  (j) to create any additional Funds or Accounts or Subaccounts
         under this Indenture deemed by the Trustee to be necessary or
         desirable;

                  (k) to make any other change with a Rating Confirmation; or

                  (l) to make any other change which, in the judgment of the
         Trustee is not to the material prejudice of the Registered Owners of
         any Obligations;

provided, however, that nothing in this Section shall permit, or be construed as
permitting, any modification of the trusts, powers, rights, duties, remedies,
immunities and privileges of the Trustee without the prior written approval of
the Trustee, which approval shall be evidenced by execution of a Supplemental
Indenture.
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<PAGE>

         SECTION 8.02. SUPPLEMENTAL INDENTURES REQUIRING CONSENT OF REGISTERED
OWNERS. Exclusive of Supplemental Indentures covered by Section 8.01 hereof and
subject to the terms and provisions contained in this Section, and not
otherwise, the Registered Owners of not less than a majority of the collective
aggregate principal amount of the Obligations then Outstanding shall have the
right, from time to time, to consent to and approve the execution by the Issuer
and the Trustee of such other indenture or indentures supplemental hereto as
shall be deemed necessary and desirable by the Trustee for the purpose of
modifying, altering, amending, adding to or rescinding, in any particular, any
of the terms or provisions contained in this Indenture or in any Supplemental
Indenture; provided, however, that nothing in this Section shall permit, or be
construed as permitting (a) without the consent of the Registered Owners of all
then Outstanding Obligations, (i) an extension of the maturity date of the
principal of or the interest on any Obligation, or (ii) a reduction in the
principal amount of any Obligation or the rate of interest thereon, or (iii) a
privilege or priority of any Obligation or Obligations over any other Obligation
or Obligations except as otherwise provided herein, or (iv) a reduction in the
aggregate principal amount of the Obligations required for consent to such
Supplemental Indenture, or (v) the creation of any lien other than a lien
ratably securing all of the Obligations at any time Outstanding hereunder except
as otherwise provided herein; or (b) any modification of the trusts, powers,
rights, obligations, duties, remedies, immunities and privileges of the Trustee
without the prior written approval of the Trustee.

         If at any time the Issuer shall request the Trustee to enter into any
such Supplemental Indenture for any of the purposes of this Section, the Trustee
shall, upon being satisfactorily indemnified with respect to expenses, cause
notice of the proposed execution of such Supplemental Indenture to be mailed by
registered or certified mail to each Registered Owner of an Obligation at the
address shown on the registration books or listed in any Derivative Product.
Such notice (which shall be prepared by the Issuer) shall briefly set forth the
nature of the proposed Supplemental Indenture and shall state that copies
thereof are on file at the principal corporate trust office of the Trustee for
inspection by all Registered Owners. If, within 60 days, or such longer period
as shall be prescribed by the Issuer, following the mailing of such notice, the
Registered Owners of not less than a majority of the collective aggregate
principal amount of the Obligations Outstanding at the time of the execution of
any such Supplemental Indenture shall have consented in writing to and approved
the execution thereof as herein provided, no Registered Owner of any Obligation
shall have any right to object to any of the terms and provisions contained
therein, or the operation thereof, or in any manner to question the propriety of
the execution thereof, or to enjoin or restrain the Trustee or the Issuer from
executing the same or from taking any action pursuant to the provisions thereof.
Upon the execution of any such Supplemental Indenture as in this Section 8.02
permitted and provided, this Indenture shall be and be deemed to be modified and
amended in accordance therewith.

         SECTION 8.03. ADDITIONAL LIMITATION ON MODIFICATION OF INDENTURE. None
of the provisions of this Indenture (including Sections 8.01 and 8.02 hereof)
shall permit an amendment to the provisions of the Indenture which permits the
transfer of all or part of the Financed Eligible Loans originated under the Act
or granting of a security interest therein to any Person other than an Eligible
Lender or the Servicer, unless the Act or Regulations are hereafter modified so
as to permit the same. The Trustee may request an opinion of counsel to the
effect that an amendment to this Indenture was adopted in conformance with this
Indenture.

         SECTION 8.04. NOTICE OF DEFAULTS. Within 90 days after the occurrence
of any default hereunder with respect to the Notes, the Trustee shall transmit
in the manner and to the extent provided in TIA Section 313(c), notice of such
default hereunder known to the Trustee, unless such default shall have been
cured or

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<PAGE>

waived; provided, however, that, except in the case of a default in the payment
of the principal of (or premium, if any) or interest with respect to any Note,
or in the payment of any sinking fund installment with respect to the Notes, the
Trustee shall be protected in withholding such notice if and so long as an
authorized officer of the Trustee in good faith determine that the withholding
of such notice is in the interest of the Registered Owners of the Notes. For the
purpose of this Section 8.04, the term "default" means any event which is, or
after notice or lapse of time or both would become, an Event of Default with
respect to the Notes.

         SECTION 8.05. CONFORMITY WITH THE TRUST INDENTURE ACT. Every
supplemental indenture executed pursuant to this Article VIII shall conform to
the requirements of the Trust Indenture Act as then in effect.

                                   ARTICLE IX

                               GENERAL PROVISIONS

         SECTION 9.01. NOTICES. Any notice, request or other instrument required
by this Indenture to be signed or executed by the Registered Owners of
Obligations may be executed by the execution of any number of concurrent
instruments of similar tenor, and may be signed or executed by such Registered
Owners of Obligations in person or by agent appointed in writing. As a condition
for acting thereunder the Trustee may demand proof of the execution of any such
instrument and of the fact that any person claiming to be the owner of any of
said Obligations is such owner and may further require the actual deposit of
such Obligation or Obligations with the Trustee. The fact and date of the
execution of such instrument may be proved by the certificate of any officer in
any jurisdiction who by the laws thereof is authorized to take acknowledgments
of deeds within such jurisdiction, that the person signing such instrument
acknowledged before him the execution thereof, or may be proved by any affidavit
of a witness to such execution sworn to before such officer.

         The amount of Notes held by any person executing such instrument as a
Registered Owner of Notes and the fact, amount, and numbers of the Notes held by
such person and the date of his holding the same may be proved by a certificate
executed by any responsible trust company, bank, banker, or other depository in
a form approved by the Trustee, showing that at the date therein mentioned such
person had on deposit with such depository the Notes described in such
certificate; provided, however, that at all times the Trustee may require the
actual deposit of such Note or Notes with the Trustee.

         All notices, requests and other communications to any party hereunder
shall be in writing (including bank wire, telex, telecopy or facsimile or
similar writing) at the following addresses, and each address shall constitute
each party's respective "Principal Office" for purposes of the Indenture:

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<PAGE>

         If intended for the Issuer:

                  Nelnet Student Loan Trust
                  c/o

                  Attention:
                  Telephone:
                  Facsimile:

                  With a copy to the Administrator:

                  NELnet, Inc.
                  121 South 13th Street, Suite 301
                  Lincoln, NE  68505
                  Attention:
                              --------------------------------
                  Telephone:
                              --------------------------------
                  Facsimile:
                              --------------------------------

         If intended for the Trustee:

                  Attention:
                  Telephone:
                  Facsimile:

         Any party may change the address to which subsequent notices to such
party are to be sent, or of its Principal Office, by notice to the others,
delivered by hand or received by telex or facsimile or registered first-class
mail, postage prepaid. Each such notice, request or other communication shall be
effective when delivered by hand or received by telex or facsimile or registered
first-class mail, postage prepaid.

         SECTION 9.02. COVENANTS BIND ISSUER. The covenants, agreements,
conditions, promises, and undertakings in this Indenture shall extend to and be
binding upon the successors and assigns of the Issuer, and all of the covenants
hereof shall bind such successors and assigns, and each of them, jointly and
severally. All the covenants, conditions, and provisions hereof shall be held to
be for the sole and exclusive benefit of the parties hereto and their successors
and assigns and of the Registered Owners from time to time of the Obligations.

         No extension of time of payment of any of the Obligations shall operate
to release or discharge the Issuer, it being agreed that the liability of the
Issuer, to the extent permitted by law, shall continue until all of the
Obligations are paid in full, notwithstanding any transfer of Financed Eligible
Loans or extension of time for payment.

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         SECTION 9.03. LIEN CREATED. This Indenture shall operate effectually as
(a) a grant of lien on and security interest in, and (b) an assignment of, the
Trust Estate.

         SECTION 9.04. SEVERABILITY OF LIEN. If the lien of this Indenture shall
be or shall ever become ineffectual, invalid, or unenforceable against any part
of the Trust Estate, which is not subject to the lien, because of want of power
or title in the Issuer, the inclusion of any such part shall not in any way
affect or invalidate the pledge and lien hereof against such part of the Trust
Estate as to which the Issuer in fact had the right to pledge.

         SECTION 9.05. CONSENT OF REGISTERED OWNERS BINDS SUCCESSORS. Any
request or consent of the Registered Owner of any Obligations given for any of
the purposes of this Indenture shall bind all future Registered Owners of the
same Obligation or any Obligations issued in exchange therefor or in
substitution thereof in respect of anything done or suffered by the Issuer or
the Trustee in pursuance of such request or consent.

         SECTION 9.06. NONLIABILITY OF PERSONS; NO GENERAL OBLIGATION. It is
hereby expressly made a condition of this Indenture that any agreements,
covenants, or representations herein contained or contained in the Notes do not
and shall never constitute or give rise to a personal or pecuniary liability or
charge against the organizers, officers, employees, agents, or trustees or the
Administrator of the Issuer, or against the general credit of the Issuer, and in
the event of a breach of any such agreement, covenant, or representation, no
personal or pecuniary liability or charge payable directly or indirectly from
the general revenues of the Issuer shall arise therefrom. Nothing contained in
this Section, however, shall relieve the Issuer from the observance and
performance of the several covenants and agreements on its part herein
contained.

         SECTION 9.07. NONPRESENTMENT OF NOTES OR INTEREST CHECKS. Should any of
the Notes or interest checks not be presented for payment when due, the Trustee
shall retain from any money transferred to it for the purpose of paying the
Notes or interest checks so due, for the benefit of the Registered Owners
thereof, a sum of money sufficient to pay such Notes or interest checks when the
same are presented by the Registered Owners thereof for payment. Such money
shall not be required to be invested. All liability of the Issuer to the
Registered Owners of such Notes or interest checks and all rights of such
Registered Owners against the Issuer under the Notes or interest checks or under
this Indenture shall thereupon cease and determine, and the sole right of such
Registered Owners shall thereafter be against such deposit. If any Note or
interest check shall not be presented for payment within the period of two years
following its payment or redemption date, the Trustee shall return to the Issuer
the money theretofore held by it for payment of such Note or interest check, and
such Note or interest check shall (subject to the defense of any applicable
statute of limitation) thereafter be an unsecured obligation of the Issuer. The
Trustee's responsibility for any such money shall cease upon remittance thereof
to the Issuer.

         SECTION 9.08. SECURITY AGREEMENT. This Indenture constitutes a
Financing Statement and a Security Agreement under the Delaware Uniform
Commercial Code.

         SECTION 9.09. LAWS GOVERNING. It is the intent of the parties hereto
that this Indenture shall in all respects be governed by the laws of the State
of [New York]. This Indenture is subject to the provisions of the TIA that are
required to be part of this Indenture and shall, to the extent applicable, be
governed by such provisions.

                                       68
<PAGE>

         SECTION 9.10. SEVERABILITY. Of any covenant, agreement, waiver, or part
thereof in this Indenture contained be forbidden by any pertinent law or under
any pertinent law be effective to render this Indenture invalid or unenforceable
or to impair the lien hereof, then each such covenant, agreement, waiver, or
part thereof shall itself be and is hereby declared to be wholly ineffective,
and this Indenture shall be construed as if the same were not included herein.

         SECTION 9.11. EXHIBITS. The terms of the Schedules and Exhibits, if
any, attached to this Indenture are incorporated herein in all particulars.

         SECTION 9.12. NON-BUSINESS DAYS. Except as may otherwise be provided
herein, if the date for making payment of any amount hereunder or on any Note,
or if the date for taking any action hereunder, is not a Business Day, then such
payment can be made without accruing further interest or action can be taken on
the next succeeding Business Day, with the same force and effect as if such
payment were made when due or action taken on such required date.

         SECTION 9.13. PARTIES INTERESTED HEREIN. Nothing in this Indenture
expressed or implied is intended or shall be construed to confer upon, or to
give to, any person or entity, other than the Trustee, the paying agent, if any,
and the Registered Owners of the Obligations, any right, remedy or claim under
or by reason of this Indenture or any covenant, condition or stipulation hereof,
and all covenants, stipulations, promises and agreements in this Indenture
contained by and on behalf of the Issuer shall be for the sole and exclusive
benefit of the Trustee, the paying agent, if any, and the Registered Owners of
the Obligations.

         SECTION 9.14. OBLIGATIONS ARE LIMITED OBLIGATIONS. The Notes and the
obligations of the Issuer contained in this Indenture are special, limited
obligations of the Issuer, secured by and payable solely from the Trust Estate
herein provided. The Issuer shall not be obligated to pay the Notes, the
interest thereon, or any other obligation created by or arising from this
Indenture from any other source.

         SECTION 9.15. COUNTERPARTY RIGHTS. Notwithstanding any provision of
this Indenture, no Counterparty which shall be in default under any Derivative
Product with the Issuer shall have any of the rights granted to a Counterparty
or as the Registered Owner of an Obligation hereunder.

         SECTION 9.16. DISCLOSURE OF NAMES AND ADDRESSES OF REGISTERED OWNERS.
Registered Owners of Notes, by receiving and holding the same, agree with the
Issuer and the Trustee that neither the Issuer nor the Trustee nor any
Securities Depository shall be held accountable by reason of the disclosure of
any information as to the names and addresses of the Registered Owners of Notes
in accordance with TIA Section 312, regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under TIA Section
312(b).

                                       69
<PAGE>

         SECTION 9.17. AGGREGATE PRINCIPAL AMOUNT OF OBLIGATIONS. Whenever in
this Indenture reference is made to the aggregate principal amount of any
Obligations, such phrase shall mean, at any time, the principal amount of any
Notes and the Derivative Value of any Derivative Product.

         SECTION 9.18. FINANCED ELIGIBLE LOANS. The Issuer expects to acquire
Eligible Loans and to transfer Eligible Loans to the Trustee, in accordance with
this Indenture, which Eligible Loans, upon becoming subject to the lien of this
Indenture, constitute Financed Eligible Loans, as defined herein. If for any
reason a Financed Eligible Loan does not constitute an Eligible Loan, or ceases
to constitute an Eligible Loan, such loan shall continue to be subject to the
lien of this Indenture as a Financed Eligible Loan.

         SECTION 9.19. CONCERNING THE DELAWARE TRUSTEE. It is expressly
understood and agreed by the parties to this Indenture and the Registered Owners
that (a) this Indenture is executed and delivered by the Delaware Trustee not in
its individual or personal capacity but solely in its capacity as Delaware
Trustee under the Trust Agreement on behalf of the Issuer, in the exercise of
the powers and authority conferred and vested in it as Delaware Trustee under
the Trust Agreement, subject to the protections, indemnities and limitations
from liability afforded to the Delaware Trustee thereunder, (B) the
representations, warranties, covenants, undertakings, agreements and obligations
by the Delaware Trustee are made and intended not as personal representations,
warranties, covenants, undertakings, agreements and obligations by the Delaware
Trustee, but are made and intended for the purpose of only binding the Trust
Estate, as defined in the Trust Agreement, and the Issuer (c) nothing contained
herein shall be construed as creating any liability on the Delaware Trustee
individually or personally, to perform any expressed or implied covenant, duty
or obligation of any kind whatsoever contained herein, and (d) under no
circumstances shall the Delaware Trustee be personally liable for the payment of
any fees, costs, indebtedness or expenses of any kind whatsoever or be
personally liable for the breach or failure of any obligation, representation,
agreement, warranty or covenant whatsoever made or undertaken by the Delaware
Trustee or Issuer hereunder.

                                   ARTICLE X

                        PAYMENT AND CANCELLATION OF NOTES
                          AND SATISFACTION OF INDENTURE

         SECTION 10.01. TRUST IRREVOCABLE. The trust created by the terms and
provisions of this Indenture is irrevocable until the indebtedness secured
hereby (the Notes and interest thereon) and all Issuer Derivative Payments are
fully paid or provision made for its payment as provided in this Article.

         SECTION 10.02. SATISFACTION OF INDENTURE.

                  (a) If the Issuer shall pay, or cause to be paid, or there
         shall otherwise be paid (i) to the Registered Owners of the Notes, the
         principal of and interest on the Notes, at the times and in the manner
         stipulated in this Indenture and (ii) to each Counterparty, all Issuer
         Derivative Payments then due, then the pledge of the Trust Estate which
         is not pledged hereunder, and all covenants, agreements, and other
         obligations of the Issuer to the Registered Owners of Notes shall
         thereupon cease, terminate, and become void and be discharged and
         satisfied. In such event, the Trustee shall execute and deliver to the

                                       70
<PAGE>

         Issuer all such instruments as may be desirable to evidence such
         discharge and satisfaction, and the Trustee shall pay over or deliver
         all money held by it under this Indenture to the party entitled to
         receive the same under this Indenture. If the Issuer shall pay or cause
         to be paid, or there shall otherwise be paid, to the Registered Owners
         of any Outstanding Notes the principal of and interest on such Notes
         and to each Counterparty all Counterparty Payments then due, at the
         times and in the manner stipulated in this Indenture and in the
         Derivative Product, such Notes and each Counterparty shall cease to be
         entitled to any lien, benefit, or security under this Indenture, and
         all covenants, agreements, and obligations of the Issuer to the
         Registered Owners thereof and each Counterparty shall thereupon cease,
         terminate, and become void and be discharged and satisfied.

                  (b) Notes or interest installments shall be deemed to have
         been paid within the meaning of Section 10.02(a) hereof if money for
         the payment or redemption thereof has been set aside and is being held
         in trust by the Trustee at the Note Final Maturity Date or earlier
         redemption date thereof. Any Outstanding Note shall, prior to the Note
         Final Maturity Date or earlier redemption thereof, be deemed to have
         been paid within the meaning and with the effect expressed in Section
         10.02(a) hereof if (i) such Note is to be redeemed on any date prior to
         its Note Final Maturity Date and (ii) the Issuer shall have given
         notice of redemption as provided herein on said date, there shall have
         been deposited with the Trustee either money (fully insured by the
         Federal Deposit Insurance Issuer or fully collateralized by
         Governmental Obligations) in an amount which shall be sufficient, or
         Governmental Obligations (including any Governmental Obligations issued
         or held in book-entry form on the books of the Department of Treasury
         of the United States of America) the principal of and the interest on
         which when due will provide money which, together with the money, if
         any, deposited with the Trustee at the same time, shall be sufficient,
         to pay when due the principal of and interest to become due on such
         Note on and prior to the redemption date or Note Final Maturity Date
         thereof, as the case may be. Notwithstanding anything herein to the
         contrary, however, no such deposit shall have the effect specified in
         this subsection (b) if made during the existence of an Event of
         Default, unless made with respect to all of the Notes then Outstanding.
         Neither Governmental Obligations nor money deposited with the Trustee
         pursuant to this subsection (b) nor principal or interest payments on
         any such Governmental Obligations shall be withdrawn or used for any
         purpose other than, and shall be held irrevocably in trust in an escrow
         account for, the payment of the principal of and interest on such
         Notes. Any cash received from such principal of and interest on such
         Governmental Obligations deposited with the Trustee, if not needed for
         such purpose, shall, to the extent practicable, be reinvested in
         Governmental Obligations maturing at times and in amounts sufficient to
         pay when due the principal of and interest on such Notes on and prior
         to such redemption date or Note Final Maturity Date thereof, as the
         case may be, and interest earned from such reinvestments shall be paid
         over to the Issuer, as received by the Trustee, free and clear of any
         trust, lien, or pledge. Any payment for Governmental Obligations
         purchased for the purpose of reinvesting cash as aforesaid shall be
         made only against delivery of such Governmental Obligations. For the
         purposes of this Section, "Governmental Obligations" shall mean and
         include only non-callable direct obligations of the Department of the
         Treasury of the United States of America or portions thereof (including
         interest or principal portions thereof), and such Governmental
         Obligations shall be of such amounts, maturities, and interest payment
         dates and bear such interest as will, without further investment or

                                       71
<PAGE>

         reinvestment of either the principal amount thereof or the interest
         earnings therefrom, be sufficient to make the payments required herein,
         and which obligations have been deposited in an escrow account which is
         irrevocably pledged as security for the Notes. Such term shall not
         include mutual funds and unit investment trusts.

                  (c) Any Issuer Derivative Payments are deemed to have been
         paid and the applicable Derivative Product terminated when payment of
         all Issuer Derivative Payments due and payable to each Counterparty
         under its respective Derivative Product have been made or duly provided
         for to the satisfaction of each Counterparty and the respective
         Derivative Product has been terminated.

                  (d) In no event shall the Trustee deliver over to the Issuer
         any Financed Eligible Loans originated under the Act unless the Issuer
         is an Eligible Lender, if the Act or Regulations then in effect require
         the owner or holder of such Financed Eligible Loans to be an Eligible
         Lender.

                  (e) The provisions of this Section are applicable to the Notes
         and the Issuer Derivative Payments.

         SECTION 10.03. OPTIONAL PURCHASE OF ALL FINANCED ELIGIBLE LOANS. The
Administrator shall notify the Sponsor and the Trustee in writing, within 15
days after the last Business Day of any Collection Period as of which the then
outstanding Pool Balance is 12% or less of the sum of the Initial Pool Balance
and the Initial Pre-Funded Amount, of the percentage that the then outstanding
Pool Balance bears to such sum. As of the last Business Day of any Collection
Period immediately preceding a Distribution Date as of which the then
outstanding Pool Balance is 10% or less of the Initial Pool Balance, the Trustee
on behalf and at the written direction of the Sponsor, or any other "eligible
lender" (within the meaning of the Higher Education Act) designated by the
Sponsor in writing to the Trustee, shall have the option to purchase the
Financed Eligible Loans. To exercise such option, the Sponsor shall deposit, not
later than the first Business Day following the end of the next succeeding
Collection Period, in the Collection Fund an amount equal to the aggregate
Purchase Amount for the Financed Eligible Loans and the related rights with
respect thereto, plus the appraised value of any such other property held by the
Trust other than the Funds and Accounts, such value to be determined by an
appraiser mutually agreed upon by the Sponsor and the Trustee; provided,
however, that the Sponsor may not effect such purchase if such aggregate
Purchase Amounts do not equal or exceed the Minimum Purchase Amount plus any
Carryover Servicing Fees. In the event the Sponsor fails to notify the Trustee
in writing prior to the acceptance by the Trustee of a bid to purchase the Trust
Estate pursuant to Section 10.04 hereof that the Sponsor intends to exercise its
option to purchase the Trust Estate, the Sponsor shall be deemed to have waived
its option to purchase the Trust Estate as long as the Sponsor has received five
(5) Business Days' notice from the Trustee as provided in Section 10.04, below.

         SECTION 10.04. AUCTION OF FINANCED ELIGIBLE LOANS. Any Financed
Eligible Loans remaining in the Acquisition Fund as of the end of the Collection
Period immediately preceding the earliest Distribution Date on which the
outstanding Pool Balance is equal to 10% or less of the sum of the initial Pool
Balance and

                                       72
<PAGE>

the Initial Pre-Funded Amount three Business Days prior to such Distribution
Date (the "Trust Auction Date") shall be offered for sale by the Trustee (or its
designated agent) unless the Sponsor has exercised its option to purchase the
Financed Eligible Loans as described in Section 10.03 hereof with respect to
such Distribution Date. The Trustee shall provide written notice to the Sponsor
of any such offer for sale at least five Business Days in advance of the Trust
Auction Date. If at least two bids are received, the Trustee (or its designated
agent) shall solicit and resolicit new bids from all participating bidders until
only one bid remains or the remaining bidders decline to resubmit bids. The
Trustee shall accept the highest of such remaining bids if it is equal to or in
excess of both the Minimum Purchase Amount and the fair market value of such
Financed Eligible Loans as of the end of the Collection Period immediately
preceding the Trust Auction Date. If at least two bids are not received or the
highest bid after the resolicitation process is completed is not equal to or in
excess of the higher of the Minimum Purchase Amount and the fair market value of
the Financed Eligible Loans, the Trustee shall not consummate such sale. The
Trustee may consult, and, at the direction of the Sponsor, shall consult, with a
financial advisor, including an underwriter of the Notes or the Administrator,
to determine if the fair market value of the Financed Eligible Loans has been
offered. The proceeds of any such sale will be applied in the order of priority
set forth in Section 6.02 hereof. If the sale is not consummated in accordance
with the foregoing, the Trustee may, but shall not be under any obligation to,
solicit bids for sale of the Financed Eligible Loans with respect to future
Distribution Dates upon terms similar to those described above, including the
Sponsor's waiver of its option to purchase the Trust Estate in accordance with
Section 10.03 hereof with respect to each such future Distribution Date.

         SECTION 10.05. CANCELLATION OF PAID NOTES. Any Notes which have been
paid or purchased by the Issuer, mutilated Notes replaced by new Notes, and any
temporary Note for which definitive Notes have been delivered shall (unless
otherwise directed by the Issuer by Issuer Order) forthwith be cancelled by the
Trustee and, except for temporary Notes, returned to the Issuer.

                                       73
<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this Indenture to be executed
in its organizational name and behalf by its Delaware Trustee, and the Trustee,
to evidence its acceptance of the trusts hereby created, has caused this
Indenture to be executed in its organizational name and behalf, all in multiple
counterparts, each of which shall be deemed an original, and the Issuer and the
Trustee have caused this Indenture to be dated as of the date herein above first
shown.

                        NELNET STUDENT LOAN TRUST_______________, a Delaware
                        business trust

                        By: _____________________________ not in its individual
                             capacity or personal capacity but solely in its
                             capacity as Delaware Trustee

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

                          _____________________________, as Trustee

                        By
                           -----------------------------------------------------
                            Vice President

                                       74
<PAGE>

                                    EXHIBIT A

                      ELIGIBLE LOAN ACQUISITION CERTIFICATE

         This Eligible Loan Acquisition Certificate is submitted pursuant to the
provisions of Section 5.02 of the Indenture of Trust, dated as of __________,
200__,  as  amended (the "Indenture"),  between  Nelnet  Student  Loan  Trust
_______________(the "Issuer") and _______________, as Trustee. All capitalized
terms used in this Certificate and not otherwise defined herein shall have the
same meanings given to such terms in the Indenture. In your capacity as Trustee,
you are hereby authorized and requested to disburse to _________________ (the
"Lender") the sum of $____________ (or, in the case of an exchange, the Eligible
Loans listed in Exhibit A hereto) for the acquisition of Eligible Loans. With
respect to the Eligible Loans so to be acquired, the Issuer hereby certifies as
follows:

         1. The Eligible Loans to be acquired are those specified in Schedule A
attached hereto (the "Acquired Eligible Loans"). The remaining unpaid principal
amount of each Acquired Eligible Loan is as shown on such Schedule A.

         2. The amount to be disbursed pursuant to this Certificate does not
exceed the amount permitted by Section 5.02 of the Indenture, including a
premium of not to exceed ___%.

         3. Each Acquired Eligible Loan is an Eligible Loan authorized so to be
acquired by the Indenture.

         4. You have been previously, or are herewith, provided with the
following items (the items listed in (a), (b), (c), (d) and (f) have been
received and are being retained, on your behalf, by the Issuer or the Servicer):

                  (a) a copy of the Student Loan Purchase Agreement between the
         Issuer and the Eligible Lender with respect to the Acquired Eligible
         Loans (original copy maintained on file with the Issuer on behalf of
         the Trustee);

                  (b) with respect to each Insured Loan included among the
         Acquired Eligible Loans, the Certificate of Insurance relating thereto;

                  (c) with respect to each Guaranteed Loan included among the
         Acquired Eligible Loans, a certified copy of the Guarantee Agreement
         relating thereto;

                  (d) an opinion of counsel to the Issuer specifying each action
         necessary to perfect a security interest in all Eligible Loans to be
         acquired by the Issuer pursuant to the Student Loan Purchase Agreements
         in favor of the Trustee in the manner provided for by the provisions of
         20 U.S.C. ss. 1087-2(d)(3) or 20 U.S.C. ss. 1082(m)(1)(D)(iv), as
         applicable, (you are authorized to rely on the advice of a single
         blanket opinion of counsel to the Issuer until such time as the Issuer
         shall provide any amended opinion to you);

<PAGE>

                  (e) a certificate of an Authorized Representative of the
         Issuer to the effect that (i) the Issuer is not in default in the
         performance of any of its covenants and agreements made in the Student
         Loan Purchase Agreement relating to the Acquired Eligible Loans; (ii)
         with respect to all Acquired Eligible Loans which are Insured,
         Insurance is in effect with respect thereto, and with respect to all
         Acquired Eligible Loans which are Guaranteed, the Guarantee Agreement
         is in effect with respect thereto; and (iii) the Issuer is not in
         default in the performance of any of its covenants and agreements made
         in any Contract of Insurance or the Guarantee Agreement applicable to
         the Acquired Eligible Loans; and

                  (f) instruments duly assigning the Acquired Eligible Loans to
         the Trustee.

         5. The Issuer is not, on the date hereof, in default under the
Indenture or in the performance of any of its covenants and agreements made in
the Student Loan Purchase Agreement relating to the Acquired Eligible Loans,
and, to the best knowledge of the Issuer, the Eligible Lender is not in default
under the Student Loan Purchase Agreement applicable to the Acquired Eligible
Loans. The Issuer is not aware of any default existing on the date hereof under
any of the other documents referred to in paragraph 4 hereof, nor of any
circumstances which would reasonably prevent reliance upon the opinion of
counsel referred to in paragraphs 4(d) hereof.

         6. All of the conditions specified in the Student Loan Purchase
Agreement applicable to the Acquired Eligible Loans and the Indenture for the
acquisition of the Acquired Eligible Loans and the disbursement hereby
authorized and requested have been satisfied; provided that the Issuer may waive
the requirement of receiving an opinion of counsel from the counsel to the
Lender.

         7. If a Financed Eligible Loan is being sold in exchange for an
Acquired Eligible Loan, the final expected maturity date of such Acquired
Eligible Loan shall be substantially similar to that of the Financed Eligible
Loan being sold and such sale and exchange shall not adversely affect the
ability of the Trust Estate to make timely principal and interest payments on
its Obligations.

         8. With respect to all Acquired Eligible Loans which are Insured,
Insurance is in effect with respect thereto, and with respect to all Acquired
Eligible Loans which are Guaranteed, the Guarantee Agreement is in effect with
respect thereto.

         9. The Issuer is not in default in the performance of any of its
covenants and agreements made in any Contract of Insurance or the Guarantee
Agreement applicable to the Acquired Eligible Loans.

         10. The proposed use of moneys in the Acquisition Fund is in compliance
with the provisions of the Indenture.

         11. The undersigned is authorized to sign and submit this Certificate
on behalf of the Issuer.

                                       A-2
<PAGE>

         12. Eligible Loans are being acquired at a price which permits the
results of the cash flow analyses provided to the Rating Agencies on the Date of
Issuance to be sustained.

         WITNESS my hand this _____ day of ___________.

                                         NELNET STUDENT LOAN TRUST_____________

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

                                     A-3
<PAGE>

                                   EXHIBIT B-1

                            [FORM OF CLASS A-1 NOTE]

                      [See reverse for certain definitions]

         Unless this Note is presented by an authorized representative of The
Depository Trust and Clearing Corporation, a New York corporation ("DTC"), to
the Issuer (as defined below) or its agent for registration of transfer,
exchange or payment, and any Note issued is registered in the name of Cede & Co.
or in such other name as is requested by an authorized representative of DTC
(and any payment is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.

         THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH
HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. THIS NOTE IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST _______
                         STUDENT LOAN ASSET-BACKED NOTES
                                    CLASS A-1

REGISTERED NO. R-1                                     REGISTERED $___________

     ORIGINAL ISSUE DATE               MATURITY DATE                  CUSIP NO.

                                     __________, 20__

PRINCIPAL SUM:    ___________ AND 00/100 DOLLARS
REGISTERED OWNER:          CEDE & CO.

         Nelnet Student Loan Trust ________, a business trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal sum of [Note Face Amount] DOLLARS payable on
each Distribution Date in an amount equal to the result obtained by multiplying
(a) a fraction the numerator of which is [Note Face Amount] and the denominator
of which is [Total Class A-1 Note Amount] by (b) the aggregate amount, if any,
payable to Class A-1 Noteholders on such Distribution Date in respect of
principal of the Notes pursuant to the Indenture dated as of _______ 200__,
among the Issuer (by _______________, in its capacity as Delaware Trustee) and
____________________, a national banking association, as eligible lender trustee
and trustee (the "Trustee") (capitalized terms used but not defined herein being
defined in Article I of the Indenture, which also contains rules as to usage
that shall be applicable herein); provided, however, that the entire unpaid
principal amount of this Note shall be due and payable on the [Final Class A-1
Distribution Date] (the "Class A-1 Maturity Date").

         The Issuer shall pay interest on this Note at the rate per annum equal
to the Class A-1 Rate (as defined on the reverse hereof), on each Distribution
Date until the principal of this Note is paid or made available for payment, on
the principal amount of this Note outstanding on the preceding Distribution Date
(after giving effect to all payments of principal made on the preceding
Distribution Date), subject to certain limitations contained in the Indenture.
Interest on this Note shall accrue from and including the preceding Distribution
Date (or, in the case of the first Accrual Period, the Closing Date) to but
excluding the following Distribution Date (each an "Accrual Period"). Interest
shall be calculated on the basis of the actual number of days elapsed in each
Accrual Period divided by 360. Such principal of and interest on this Note shall
be paid in the manner specified on the reverse hereof.

         The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

         Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

         Unless the certificate of authentication hereon has been executed by
the Trustee whose name appears below by manual signature, this Note shall not be
entitled to any benefit under the Indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

                                      B-1-1
<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                           NELNET STUDENT LOAN TRUST____________

                                           By
                                                --------------------------------
                                           Name
                                                --------------------------------
                                           Title
                                                --------------------------------
                                           By  ________________________, not in
                                               its individual capacity but
                                               solely as Delaware Trustee under
                                               the Trust Agreement,

                                           By
                                             -----------------------------------
                                              Authorized Signatory

Date: [Closing Date]

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                    ___________________________, not in its
                                    individual capacity but solely as Trustee,

                                    By
                                       ----------------------------------------
                                       Authorized Signatory
Date: [Closing Date]

                                      B-2-2
<PAGE>

                                [REVERSE OF NOTE]

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan-Backed Notes, Class A-1 (the "Class A-1 Notes"),
which, together with the Issuer's Student Loan-Backed Notes, Class A-2 (the
"Class A-2 Notes") and the Issuer's Student Loan-Backed Notes, Class B (the
"Class B Notes" and, together with the Class A-1 Notes and the Class A-2 Notes
the "Notes"), are issued under and secured by the Indenture, to which Indenture
and all indentures supplemental thereto reference is hereby made for a statement
of the respective rights and obligations thereunder of the Issuer, the Trustee
and the Registered Owners. The Notes are subject to all terms of the Indenture.

         The Class A-1 Notes are and will be equally and ratably secured by the
Trust Estate pledged as security therefor as provided in the Indenture. The
Class A-1 Notes are prior in order of principal payment to the Class A-2 Notes
and Class B Notes and senior to the Class B Notes as and to the extent provided
in the Indenture.

         Principal of the Class A-1 Notes shall be payable on each Distribution
Date in an amount described on the face hereof. "Distribution Date" means the
thirtieth day of each March, June, September and December or, if any such date
is not a Business Day, the immediately preceding Business Day, commencing
_______, 200__.

         As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-1 Maturity Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable on the date on which (a) an Event of Default shall have
occurred and be continuing and (b) the Trustee or the Registered Owners of
Obligations representing not less than a majority of the Outstanding Amount of
the Obligations shall have declared the Notes to be immediately due and payable
in the manner provided in the Indenture. All principal payments on the Class A-1
Notes shall be made pro rata to the Registered Owners entitled thereto.

         Interest on the Class A-1 Notes shall be payable on each Distribution
Date on the principal amount outstanding of the Class A-1 Notes until the
principal amount thereof is paid in full, at a rate per annum equal to the Class
A-1 Rate. The "Class A-1 Rate" for each Accrual Period, other than the first
Accrual Period, shall be equal to the applicable Three-Month LIBOR, plus 0.__%.
The "Class A-1 Rate" for the first Accrual Period shall be determined by
reference to the following formula: x + [ __/__ * (y-x)] (where: x = One-Month
LIBOR, and y = Two-Month LIBOR), plus 0.__% , as determined by the
Administrator.

         Payments of interest on this Note on each Distribution Date, together
with the installment of principal, if any, to the extent not in full payment of
this Note, shall be paid to the Person in whose name such Note is registered on
the Record Date by check mailed first-class, postage prepaid to such Person's
address as it appears on the records of the Trustee on such Record Date, except
that, unless definitive Notes have been issued pursuant to the Indenture, with
respect to Notes registered on the Record Date in the name of the nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payment shall be
made by wire transfer in immediately available funds to the account designated
by such nominee. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Note on a Distribution Date, then the Trustee shall notify the Person in
whose name a Note is registered at the close of business on the Record Date
preceding the Distribution Date on which the Issuer expects that the final
installment of principal of and interest on such Note will be paid. Such notice
shall be mailed or transmitted by facsimile prior to such final Distribution
Date and shall specify that such final installment will be payable only upon
presentation and surrender of such Note and shall specify the place where such
Note may be presented and surrendered for payment of such installment.

                                      B-1-3
<PAGE>

         The Issuer shall pay interest on overdue installments of interest on
this Note at the Class A-1 Rate to the extent lawful.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like series, subseries, if any, and
aggregate principal amount of the same maturity.

         The Trustee shall not be required to transfer or exchange any Note
during the period of 15 business days next preceding the mailing of notice of
redemption as provided in the Indenture. After the giving of such notice of
redemption, the Trustee shall not be required to transfer or exchange any Note,
which Note or portion thereof has been called for redemption.

         As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

         Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan or (b) (i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

         The Trustee shall require the payment by any Registered Owner
requesting exchange or transfer of any tax or other governmental charge required
to be paid with respect to such exchange or transfer. The applicant for any such
transfer or exchange may be required to pay all taxes and governmental charges
in connection with such transfer or exchange, other than exchanges pursuant to
the Indenture.

         Each Registered Owner, by acceptance of a Note or a beneficial interest
in the Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer or the Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (a) the Trustee in its individual capacity; (b)
any owner of a beneficial interest in the Issuer; or (c) any partner, owner,
beneficiary, agent, officer, director or employee of the Trustee in its
individual capacity, any holder or owner of a beneficial interest in the Issuer
or the Trustee or of any successor or assign thereof in its individual capacity,
except as any such Person may have expressly agreed (it being understood that
the Trustee has no such obligations in its individual capacity) and except that
any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity.
                                      B-1-4
<PAGE>

         Each Registered Owner, by acceptance of a Note or a beneficial interest
in a Note, covenants and agrees that by accepting the benefits of the Indenture
such Registered Owner will not at any time institute against the Seller or the
Issuer, or join in any institution against the Seller or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency, receivership or liquidation
proceedings or other proceedings under any United States Federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the other Basic Documents.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note (as of the day of determination or as of such
other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes whether or not this Note be overdue, and neither the
Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Registered Owners under the Indenture at any time
by the Issuer with the consent of the Registered Owners representing not less
than a majority of the collective aggregate principal amount of Obligations then
Outstanding. The Indenture also contains provisions permitting the Registered
Owners of a majority of the collective aggregate principal amount of Obligations
then Outstanding, to waive compliance by the Issuer with certain provisions of
the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the holder of this Note shall be
conclusive and binding upon such holder and upon all future holders of this Note
and of any Note issued upon registration of transfer hereof or in exchange
hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Trustee to amend or waive
certain terms and conditions set forth in the Indenture without the consent of
the Registered Owners.

         The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

         The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

         This Note 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 and thereunder shall
be determined in accordance with such laws.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency, herein prescribed.

                                     B-1-5
<PAGE>

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither __________________ in its individual
capacity, any owner of a beneficial interest in the Issuer, nor any of their
respective partners, beneficiaries, agents, officers, directors, employees or
successors or assigns shall be personally liable for, nor shall recourse be had
to any of them for, the payment of principal of or interest on, or performance
of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture; it being expressly
understood that said covenants, obligations and indemnifications have been made
by the Trustee for the sole purposes of binding the interests of the Trustee in
the assets of the Issuer. The Registered Owner of this Note by the acceptance
hereof agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture, the Registered Owner shall have
no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to
prevent recourse to, and enforcement against, the assets of the Issuer for any
and all liabilities, obligations and undertakings contained in the Indenture or
in this Note.

                                      B-1-6
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

         (name and address of assignee) the within Note and all rights
thereunder, and hereby irrevocably constitutes and appoints

         attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises.

Dated:
       ---------------------------
                                     By                *
                                        ----------------------------------------
                                     Name
                                          --------------------------------------
                                     Title
                                           -------------------------------------

                                    Signature Guaranteed:
                                    By * *NOTICE: The signature to this
                                    assignment must correspond with the name of
                                    the registered owner as it appears on the
                                    face of the within Note in every particular,
                                    without alteration, enlargement or any
                                    change whatever. Such signature must be
                                    guaranteed by an "eligible guarantor
                                    institution" meeting the requirements of the
                                    Note Registrar, which requirements include
                                    membership or participation in STAMP or such
                                    other "signature guarantee program" as may
                                    be determined by the Trustee in addition to,
                                    or in substitution for, STAMP, all in
                                    accordance with the Securities Exchange Act
                                    of 1934, as amended.

                                      B-1-7
<PAGE>

                                   EXHIBIT B-2

                            [FORM OF CLASS A-2 NOTE]

                      [See reverse for certain definitions]

         Unless this Note is presented by an authorized representative of The
Depository Trust and Clearing Corporation, a New York corporation ("DTC"), to
the Issuer (as defined below) or its agent for registration of transfer,
exchange or payment, and any Note issued is registered in the name of Cede & Co.
or in such other name as is requested by an authorized representative of DTC
(and any payment is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.

         THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH
HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. THIS NOTE IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST _______
                         STUDENT LOAN ASSET-BACKED NOTES
                                    CLASS A-2

REGISTERED NO. R-1                                    REGISTERED $___________

     ORIGINAL ISSUE DATE               MATURITY DATE                  CUSIP NO.

                                     __________, 20__

PRINCIPAL SUM:    ___________ AND 00/100 DOLLARS
REGISTERED OWNER:          CEDE & CO.

         Nelnet Student Loan Trust ___________, a business trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal sum of [Note Face Amount] DOLLARS payable on
each Distribution Date in an amount equal to the result obtained by multiplying
(a) a fraction the numerator of which is [Note Face Amount] and the denominator
of which is [Total Class A-2 Note Amount] by (b) the aggregate amount, if any,
payable to Class A-2 Noteholders on such Distribution Date in respect of
principal of the Notes pursuant to the Indenture dated as of _____ 200__, among
the Issuer (by _________________, in its capacity as Delaware Trustee) and
________________, a national banking association, as eligible lender trustee and
trustee (the "Trustee") (capitalized terms used but not defined herein being
defined in Article I of the Indenture, which also contains rules as to usage
that shall be applicable herein); provided, however, that the entire unpaid
principal amount of this Note shall be due and payable on the [Final Class A-2
Distribution Date] (the "Class A-2 Maturity Date").

         The Issuer shall pay interest on this Note at the rate per annum equal
to the Class A-2 Rate (as defined on the reverse hereof), on each Distribution
Date until the principal of this Note is paid or made available for payment, on
the principal amount of this Note outstanding on the preceding Distribution Date
(after giving effect to all payments of principal made on the preceding
Distribution Date), subject to certain limitations contained in the Indenture.
Interest on this Note shall accrue from and including the preceding Distribution
Date (or, in the case of the first Accrual Period, the Closing Date) to but
excluding the following Distribution Date (each an "Accrual Period"). Interest
shall be calculated on the basis of the actual number of days elapsed in each
Accrual Period divided by 360. Such principal of and interest on this Note shall
be paid in the manner specified on the reverse hereof.

         The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

         Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

         Unless the certificate of authentication hereon has been executed by
the Trustee whose name appears below by manual signature, this Note shall not be
entitled to any benefit under the Indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                             NELNET STUDENT LOAN TRUST__________

                                           By
                                                --------------------------------
                                           Name
                                                --------------------------------
                                           Title
                                                --------------------------------
                                            _______________________, not in its
                                            individual capacity but solely as
                                            Delaware Trustee under the Trust
                                            Agreement,

                                            By
                                               ---------------------------------
                                                Authorized Signatory

Date: [Closing Date]

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                     __________________________ not in its
                                     individual capacity but solely as Trustee,

                                     By
                                       -------------------------------------
                                       Authorized Signatory
Date: [Closing Date]

                                      B-2-2
<PAGE>

                                [REVERSE OF NOTE]

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan-Backed Notes, Class A-2 (the "Class A-2 Notes"),
which, together with the Issuer's Student Loan-Backed Notes, Class A-1 (the
"Class A-1 Notes") and the Issuer's Student Loan-Backed Notes, Class B (the
"Class B Notes" and, together with the Class A-2 Notes and the Class A-1 Notes
the "Notes"), are issued under and secured by the Indenture, to which Indenture
and all indentures supplemental thereto reference is hereby made for a statement
of the respective rights and obligations thereunder of the Issuer, the Trustee
and the Registered Owners. The Notes are subject to all terms of the Indenture.

         The Class A-2 Notes are and will be equally and ratably secured by the
Trust Estate pledged as security therefor as provided in the Indenture. The
Class A-1 Notes are prior in order of principal payment to the Class A-2 Notes.
The Class A-2 Notes are senior to the Class B Notes as and to the extent
provided in the Indenture.

         Principal of the Class A-2 Notes shall be payable on each Distribution
Date in an amount described on the face hereof. "Distribution Date" means the
thirtieth day of each March, June, September and December or, if any such date
is not a Business Day, the immediately preceding Business Day, commencing June
28, 2002.
                                      B-2-3
<PAGE>

         As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-2 Maturity Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable on the date on which (a) an Event of Default shall have
occurred and be continuing and (b) the Trustee or the Registered Owners of
Obligations representing not less than a majority of the Outstanding Amount of
the Obligations shall have declared the Notes to be immediately due and payable
in the manner provided in the Indenture. All principal payments on the Class A-2
Notes shall be made pro rata to the Registered Owners entitled thereto.

         Interest on the Class A-2 Notes shall be payable on each Distribution
Date on the principal amount outstanding of the Class A-2 Notes until the
principal amount thereof is paid in full, at a rate per annum equal to the Class
A-2 Rate. The "Class A-2 Rate" for each Accrual Period, other than the first
Accrual Period, shall be equal to the applicable Three-Month LIBOR, plus 0.__%.
The "Class A-2 Rate" for the first Accrual Period shall be determined by
reference to the following formula: x + [ __/__ * (y-x)] (where: x = One-Month
LIBOR, and y = Two-Month LIBOR), plus 0.__% , as determined by the
Administrator.

         Payments of interest on this Note on each Distribution Date, together
with the installment of principal, if any, to the extent not in full payment of
this Note, shall be paid to the Person in whose name such Note is registered on
the Record Date by check mailed first-class, postage prepaid to such Person's
address as it appears on the records of the Trustee on such Record Date, except
that, unless definitive Notes have been issued pursuant to the Indenture, with
respect to Notes registered on the Record Date in the name of the nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payment shall be
made by wire transfer in immediately available funds to the account designated
by such nominee. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Note on a Distribution Date, then the Trustee shall notify the Person in
whose name a Note is registered at the close of business on the Record Date
preceding the Distribution Date on which the Issuer expects that the final
installment of principal of and interest on such Note will be paid. Such notice
shall be mailed or transmitted by facsimile prior to such final Distribution
Date and shall specify that such final installment will be payable only upon
presentation and surrender of such Note and shall specify the place where such
Note may be presented and surrendered for payment of such installment.

         The Issuer shall pay interest on overdue installments of interest on
this Note at the Class A-2 Rate to the extent lawful.

                                      B-2-4
<PAGE>

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like series, subseries, if any, and
aggregate principal amount of the same maturity.

         The Trustee shall not be required to transfer or exchange any Note
during the period of 15 business days next preceding the mailing of notice of
redemption as provided in the Indenture. After the giving of such notice of
redemption, the Trustee shall not be required to transfer or exchange any Note,
which Note or portion thereof has been called for redemption.

         As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

         Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan or (b) (i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

         The Trustee shall require the payment by any Registered Owner
requesting exchange or transfer of any tax or other governmental charge required
to be paid with respect to such exchange or transfer. The applicant for any such
transfer or exchange may be required to pay all taxes and governmental charges
in connection with such transfer or exchange, other than exchanges pursuant to
the Indenture.
                                      B-2-5
<PAGE>

         Each Registered Owner, by acceptance of a Note or a beneficial interest
in the Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer or the Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (a) the Trustee in its individual capacity; (b)
any owner of a beneficial interest in the Issuer; or (c) any partner, owner,
beneficiary, agent, officer, director or employee of the Trustee in its
individual capacity, any holder or owner of a beneficial interest in the Issuer
or the Trustee or of any successor or assign thereof in its individual capacity,
except as any such Person may have expressly agreed (it being understood that
the Trustee has no such obligations in its individual capacity) and except that
any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity.

         Each Registered Owner, by acceptance of a Note or a beneficial interest
in a Note, covenants and agrees that by accepting the benefits of the Indenture
such Registered Owner will not at any time institute against the Seller or the
Issuer, or join in any institution against the Seller or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency, receivership or liquidation
proceedings or other proceedings under any United States Federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the other Basic Documents.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note (as of the day of determination or as of such
other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes whether or not this Note be overdue, and neither the
Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Registered Owners under the Indenture at any time
by the Issuer with the consent of the Registered Owners representing not less
than a majority of the collective aggregate principal amount of Obligations then
Outstanding. The Indenture also contains provisions permitting the Registered
Owners of a majority of the collective aggregate principal amount of Obligations
then Outstanding, to waive compliance by the Issuer with certain provisions of
the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the holder of this Note shall be
conclusive and binding upon such holder and upon all future holders of this Note
and of any Note issued upon registration of transfer hereof or in exchange
hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Trustee to amend or waive
certain terms and conditions set forth in the Indenture without the consent of
the Registered Owners.
                                      B-2-6
<PAGE>

         The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

         The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

         This Note 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 and thereunder shall
be determined in accordance with such laws.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency, herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither _______________________ in its
individual capacity, any owner of a beneficial interest in the Issuer, nor any
of their respective partners, beneficiaries, agents, officers, directors,
employees or successors or assigns shall be personally liable for, nor shall
recourse be had to any of them for, the payment of principal of or interest on,
or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture; it being expressly
understood that said covenants, obligations and indemnifications have been made
by the Trustee for the sole purposes of binding the interests of the Trustee in
the assets of the Issuer. The Registered Owner of this Note by the acceptance
hereof agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture, the Registered Owner shall have
no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to
prevent recourse to, and enforcement against, the assets of the Issuer for any
and all liabilities, obligations and undertakings contained in the Indenture or
in this Note.

                                      B-2-7
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

                         (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints

attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

Dated:
       -----------------------
                                    By                       *
                                       -----------------------------------------
                                    Name
                                         ---------------------------------------
                                    Title
                                          --------------------------------------

                                    Signature Guaranteed:

By * *NOTICE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Trustee in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

                                     B-2-8

<PAGE>

                                  EXHIBIT B-3

                             [FORM OF CLASS B NOTE]

                      [See reverse for certain definitions]

         Unless this Note is presented by an authorized representative of The
Depository Trust and Clearing Corporation, a New York corporation ("DTC"), to
the Issuer (as defined below) or its agent for registration of transfer,
exchange or payment, and any Note issued is registered in the name of Cede & Co.
or in such other name as is requested by an authorized representative of DTC
(and any payment is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.

         THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH
HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. THIS NOTE IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY.

                       NELNET STUDENT LOAN TRUST ________
                         STUDENT LOAN ASSET-BACKED NOTES
                                     CLASS B

REGISTERED NO. R-1                                    REGISTERED $___________

     ORIGINAL ISSUE DATE               MATURITY DATE                  CUSIP NO.

                                     __________, 20__

PRINCIPAL SUM:    ___________ AND 00/100 DOLLARS
REGISTERED OWNER:          CEDE & CO.

         Nelnet Student Loan Trust ________, a business trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal sum of [Note Face Amount] DOLLARS payable on
each Distribution Date in an amount equal to the result obtained by multiplying
(a) a fraction the numerator of which is [Note Face Amount] and the denominator
of which is [Total Class B Note Amount] by (b) the aggregate amount, if any,
payable to Class B Noteholders on such Distribution Date in respect of principal
of the Notes pursuant to the Indenture dated as of _________, 200__, among the
Issuer (by _________________, in its capacity as Delaware Trustee) and
_____________________, a national banking association, as eligible lender
trustee and trustee (the "Trustee") (capitalized terms used but not defined
herein being defined in Article I of the Indenture, which also contains rules as
to usage that shall be applicable herein); provided, however, that the entire
unpaid principal amount of this Note shall be due and payable on the [Final
Class B Distribution Date] (the "Class B Maturity Date").

         The Issuer shall pay interest on this Note at the rate per annum equal
to the Class B Rate (as defined on the reverse hereof), on each Distribution
Date until the principal of this Note is paid or made available for payment, on
the principal amount of this Note outstanding on the preceding Distribution Date
(after giving effect to all payments of principal made on the preceding
Distribution Date), subject to certain limitations contained in the Indenture.
Interest on this Note shall accrue from and including the preceding Distribution
Date (or, in the case of the first Accrual Period, the Closing Date) to but
excluding the following Distribution Date (each an "Accrual Period"). Interest
shall be calculated on the basis of the actual number of days elapsed in each
Accrual Period divided by 360. Such principal of and interest on this Note shall
be paid in the manner specified on the reverse hereof.

         The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

         Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

         Unless the certificate of authentication hereon has been executed by
the Trustee whose name appears below by manual signature, this Note shall not be
entitled to any benefit under the Indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

                                      B-3-1
<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                           NELNET STUDENT LOAN TRUST

                                           By
                                                --------------------------------
                                           Name
                                                --------------------------------
                                           Title
                                                --------------------------------
                                           By  WILMINGTON TRUST COMPANY, not in
                                               its individual capacity but
                                               solely as Delaware Trustee under
                                               the Trust Agreement,

                                           By
                                              ----------------------------------
                                               Authorized Signatory

Date: [Closing Date]

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                      _____________________________, not in its
                                      individual capacity but solely as Trustee,

                                      By
                                         ---------------------------------------
                                          Authorized Signatory
Date: [Closing Date]

                                      B-3-2
<PAGE>

                                [REVERSE OF NOTE]

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan-Backed Notes, Class B (the "Class B Notes"),
which, together with the Issuer's Student Loan-Backed Notes, Class A-1 (the
"Class A-1 Notes") and the Issuer's Student Loan-Backed Notes, Class A-2 (the
"Class A-2 Notes" and, together with the Class B Notes and the Class A-1 Notes
the "Notes"), are issued under and secured by the Indenture, to which Indenture
and all indentures supplemental thereto reference is hereby made for a statement
of the respective rights and obligations thereunder of the Issuer, the Trustee
and the Registered Owners. The Notes are subject to all terms of the Indenture.

         The Class B Notes are and will be equally and ratably secured by the
Trust Estate pledged as security therefor as provided in the Indenture. The
Class A-1 Notes and Class A-2 Notes are prior in order of principal payment, and
are senior, to the Class B Notes as and to the extent provided in the Indenture.

         Principal of the Class B Notes shall be payable on each Distribution
Date in an amount described on the face hereof. "Distribution Date" means the
thirtieth day of each March, June, September and December or, if any such date
is not a Business Day, the immediately preceding Business Day, commencing
________, 200__.

         As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class B Maturity Date. Notwithstanding
the foregoing, the entire unpaid principal amount of the Notes shall be due and
payable on the date on which (a) an Event of Default shall have occurred and be
continuing and (b) the Trustee or the Registered Owners of Obligations
representing not less than a majority of the Outstanding Amount of the
Obligations shall have declared the Notes to be immediately due and payable in
the manner provided in the Indenture. All principal payments on the Class B
Notes shall be made pro rata to the Registered Owners entitled thereto.

         Interest on the Class B Notes shall be payable on each Distribution
Date on the principal amount outstanding of the Class B Notes until the
principal amount thereof is paid in full, at a rate per annum equal to the Class
B Rate. The "Class B Rate" for each Accrual Period, other than the first Accrual
Period, shall be equal to the applicable Three-Month LIBOR, plus 0.__%. The
"Class B Rate" for the first Accrual Period shall be determined by reference to
the following formula: x + [ __/__ * (y-x)] (where: x = One-Month LIBOR, and y =
Two-Month LIBOR), plus 0.__% , as determined by the Administrator.

                                      B-3-3
<PAGE>

         Payments of interest on this Note on each Distribution Date, together
with the installment of principal, if any, to the extent not in full payment of
this Note, shall be paid to the Person in whose name such Note is registered on
the Record Date by check mailed first-class, postage prepaid to such Person's
address as it appears on the records of the Trustee on such Record Date, except
that, unless definitive Notes have been issued pursuant to the Indenture, with
respect to Notes registered on the Record Date in the name of the nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payment shall be
made by wire transfer in immediately available funds to the account designated
by such nominee. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Note on a Distribution Date, then the Trustee shall notify the Person in
whose name a Note is registered at the close of business on the Record Date
preceding the Distribution Date on which the Issuer expects that the final
installment of principal of and interest on such Note will be paid. Such notice
shall be mailed or transmitted by facsimile prior to such final Distribution
Date and shall specify that such final installment will be payable only upon
presentation and surrender of such Note and shall specify the place where such
Note may be presented and surrendered for payment of such installment.

         The Issuer shall pay interest on overdue installments of interest on
this Note at the Class B Rate to the extent lawful.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like series, subseries, if any, and
aggregate principal amount of the same maturity.

         The Trustee shall not be required to transfer or exchange any Note
during the period of 15 business days next preceding the mailing of notice of
redemption as provided in the Indenture. After the giving of such notice of
redemption, the Trustee shall not be required to transfer or exchange any Note,
which Note or portion thereof has been called for redemption.

                                      B-3-4
<PAGE>

         As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

         Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan or (b) (i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

         The Trustee shall require the payment by any Registered Owner
requesting exchange or transfer of any tax or other governmental charge required
to be paid with respect to such exchange or transfer. The applicant for any such
transfer or exchange may be required to pay all taxes and governmental charges
in connection with such transfer or exchange, other than exchanges pursuant to
the Indenture.

         Each Registered Owner, by acceptance of a Note or a beneficial interest
in the Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer or the Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (a) the Trustee in its individual capacity; (b)
any owner of a beneficial interest in the Issuer; or (c) any partner, owner,
beneficiary, agent, officer, director or employee of the Trustee in its
individual capacity, any holder or owner of a beneficial interest in the Issuer
or the Trustee or of any successor or assign thereof in its individual capacity,
except as any such Person may have expressly agreed (it being understood that
the Trustee has no such obligations in its individual capacity) and except that
any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity.

                                      B-3-5
<PAGE>

         Each Registered Owner, by acceptance of a Note or a beneficial interest
in a Note, covenants and agrees that by accepting the benefits of the Indenture
such Registered Owner will not at any time institute against the Seller or the
Issuer, or join in any institution against the Seller or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency, receivership or liquidation
proceedings or other proceedings under any United States Federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the other Basic Documents.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note (as of the day of determination or as of such
other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes whether or not this Note be overdue, and neither the
Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Registered Owners under the Indenture at any time
by the Issuer with the consent of the Registered Owners representing not less
than a majority of the collective aggregate principal amount of Obligations then
Outstanding. The Indenture also contains provisions permitting the Registered
Owners of a majority of the collective aggregate principal amount of Obligations
then Outstanding, to waive compliance by the Issuer with certain provisions of
the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the holder of this Note shall be
conclusive and binding upon such holder and upon all future holders of this Note
and of any Note issued upon registration of transfer hereof or in exchange
hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Trustee to amend or waive
certain terms and conditions set forth in the Indenture without the consent of
the Registered Owners.

         The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

                                      B-3-6

<PAGE>

         The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

         This Note 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 and thereunder shall
be determined in accordance with such laws.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency, herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither ____________________ in its individual
capacity, any owner of a beneficial interest in the Issuer, nor any of their
respective partners, beneficiaries, agents, officers, directors, employees or
successors or assigns shall be personally liable for, nor shall recourse be had
to any of them for, the payment of principal of or interest on, or performance
of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture; it being expressly
understood that said covenants, obligations and indemnifications have been made
by the Trustee for the sole purposes of binding the interests of the Trustee in
the assets of the Issuer. The Registered Owner of this Note by the acceptance
hereof agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture, the Registered Owner shall have
no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to
prevent recourse to, and enforcement against, the assets of the Issuer for any
and all liabilities, obligations and undertakings contained in the Indenture or
in this Note.

                                      B-3-7
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

                         (name and address of assignee)
         the within Note and all rights thereunder, and hereby irrevocably
constitutes and appoints

attorney, to transfer said Note on the books kept for registration thereof, with
full power of substitution in the premises.

Dated:
       --------------------------
                                    By                   *
                                       -----------------------------------------
                                    Name
                                         ---------------------------------------
                                    Title
                                          --------------------------------------

                                    Signature Guaranteed:
                                    By * *NOTICE: The signature to this
                                    assignment must correspond with the name of
                                    the registered owner as it appears on the
                                    face of the within Note in every particular,
                                    without alteration, enlargement or any
                                    change whatever. Such signature must be
                                    guaranteed by an "eligible guarantor
                                    institution" meeting the requirements of the
                                    Note Registrar, which requirements include
                                    membership or participation in STAMP or such
                                    other "signature guarantee program" as may
                                    be determined by the Trustee in addition to,
                                    or in substitution for, STAMP, all in
                                    accordance with the Securities Exchange Act
                                    of 1934, as amended.

                                      B-3-8--------------------------------------------------------------------------------

                        [NELNET STUDENT LOAN TRUST - ___]

                                 TRUST AGREEMENT

                                 BY AND BETWEEN

                        NELNET STUDENT LOAN FUNDING, LLC,
                    AS INITIAL CERTIFICATEHOLDER AND SPONSOR,

                                       AND

                           [_________________________]
                               AS DELAWARE TRUSTEE

                           DATED AS OF _________, 200__

--------------------------------------------------------------------------------

<PAGE>

                                    Article I

                                   DEFINITIONS

Section 1.01.         Definitions.............................................2
Section 1.02.         Other References........................................4

                                   Article II

               ORGANIZATION OF THE TRUST; AUTHORITY TO EXECUTE AND
       PERFORM VARIOUS DOCUMENTS; DECLARATION OF TRUST BY DELAWARE TRUSTEE

Section 2.01.         Establishment of the Trust..............................5
Section 2.02.         Name....................................................6
Section 2.03.         Office and Situs of Trust...............................6
Section 2.04.         Authority...............................................6
Section 2.05.         Powers and Authority....................................6
Section 2.06.         Declaration of Trust by Delaware Trustee................8
Section 2.07.         The Indenture...........................................8
Section 2.08.         Title to Trust Estate...................................8
Section 2.09.         Agreements Not to Institute Bankruptcy Proceedings;
                      Covenants...............................................9
Section 2.10.         Appointment of Delaware Trustee.........................11
Section 2.11.         Federal Income Tax Allocations..........................11
Section 2.12.         Limitations on Certificateholders.......................11
Section 2.13.         Administration..........................................12
Section 2.14.         Additional Contributions................................12
Section 2.15.         Principal Place of Business.............................12
Section 2.16.         Liability of the Certificateholders and the
                      Delaware Trustee........................................12

                                   Article III

                  TRUST CERTIFICATES AND TRANSFER OF INTERESTS

Section 3.01.         Initial Beneficial Ownership............................12
Section 3.02.         The Certificates........................................12
Section 3.03.         Authentication of Certificates..........................13
Section 3.04.         Registration of Transfer and Exchange of Certificates...13
Section 3.05.         Mutilated, Destroyed, Lost or Stolen Certificates.......15
Section 3.06.         Persons Deemed Owners...................................16
Section 3.07.         Access to List of Certificateholders' Names and
                      Addresses...............................................16
Section 3.08.         Maintenance of Office or Agency.........................16
Section 3.09.         Terms of Certificates Binding...........................16

<PAGE>

                                   Article IV

                           DISTRIBUTIONS AND PAYMENTS

Section 4.01.         Distribution of Payments................................17
Section 4.02.         Payments From Trust Estate Only.........................18
Section 4.03.         Method of Payment.......................................18
Section 4.04.         Trust Payment Date Statement............................18

                                    Article V

                           DUTIES OF DELAWARE TRUSTEE

Section 5.01.         Notice of Default.......................................19
Section 5.02.         Action Upon Instruction.................................19
Section 5.03.         Indemnification.........................................20
Section 5.04.         No Duties Except as Specified in Transaction Documents..21
Section 5.05.         No Action Except Under Specified Documents or
                      Instructions............................................21
Section 5.06.         Action by Sponsor with Respect to Bankruptcy............21
Section 5.07.         Discharge of Liens......................................21

                                   Article VI

                                DELAWARE TRUSTEE

Section 6.01.         Acceptance of Trusts and Duties.........................21
Section 6.02.         Furnishing of Documents.................................24
Section 6.03.         No Representations or Warranties as to Trust Estate.....24
Section 6.04.         No Segregation of Moneys; No Interest...................24
Section 6.05.         Reliance; Advice of Counsel.............................24
Section 6.06.         Not Acting in Individual Capacity.......................25
Section 6.07.         Books and Records.......................................25
Section 6.08.         Tax Returns.............................................25

                                   Article VII

            ASSUMPTION OF LIABILITY AND PAYMENT FOR DELAWARE TRUSTEE

Section 7.01.         Compensation and Expenses...............................26
Section 7.02.         Certificateholders To Assume Liability..................26

                                       ii
<PAGE>

                                  Article VIII

                            TERMINATION OF INDENTURE

Section 8.01.         Termination in General..................................27
Section 8.02.         Termination at Option of Certificateholders.............27
Section 8.03.         Termination.............................................27

                                   Article IX

              SUCCESSOR DELAWARE TRUSTEES, CO-DELAWARE TRUSTEES AND
                           SEPARATE DELAWARE TRUSTEES

Section 9.01.         Resignation and Successors..............................28
Section 9.02.         Co-Delaware Trustees and Separate Delaware Trustees.....29
Section 9.03.         Changes in Identity of a Delaware Trustee...............29

                                    Article X

                                  MISCELLANEOUS

Section 10.01.        Amendment...............................................29
Section 10.02.        No Title to Trust Estate, Etc...........................30
Section 10.03.        Sale of the Trust Estate by Delaware Trustee is Binding.31
Section 10.04.        Limitations on Rights of Others.........................31
Section 10.05.        Notices, Etc............................................31
Section 10.06.        Severability............................................32
Section 10.07.        Separate Counterparts...................................32
Section 10.08.        Successors and Assigns..................................32
Section 10.09.        Governing Law...........................................32
Section 10.10.        No Liability of Certificateholders......................32
Section 10.11.        Actions by the Certificateholders.......................32

EXHIBIT A.........CERTIFICATEHOLDERS' CAPITAL CONTRIBUTIONS
EXHIBIT B.........FORM OF BUSINESS TRUST PAYMENT DATE STATEMENT
EXHIBIT C.........FORM OF CERTIFICATE
EXHIBIT D.........FORM OF TRANSFEROR LETTER
EXHIBIT E.........FORM OF INVESTMENT LETTER
EXHIBIT F.........FORM OF RULE 144A LETTER

                                      iii
<PAGE>

                                 TRUST AGREEMENT

         This TRUST AGREEMENT, dated as of _______ ___, 200__ (as may be amended
from time to time), by and among NELNET STUDENT LOAN FUNDING, LLC, a Delaware
limited liability company, as the Initial Certificateholder and Sponsor, and
[______________________] (when referred to herein in its individual capacity,
the "Trust Company," and when referred to herein solely in its capacity as
trustee hereunder, the "Delaware Trustee"), is being entered into in order to
establish a Delaware business trust to be known as ["Nelnet Student Loan
Trust-__."]

                              W I T N E S S E T H:

         WHEREAS, the Trust Company and the Sponsor have mutually agreed, as set
forth herein, to create the Trust;

         In consideration of the mutual agreements herein contained and other
good and valuable consideration, the receipt and legal sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

         SECTION 1.01 DEFINITIONS. All capitalized terms used in this Trust
Agreement shall have the meanings set forth below and, if not defined herein,
shall have the respective meanings assigned to them in the Indenture:

         "ADMINISTRATION AGREEMENT" means that certain Administration Agreement
dated as of [________] by and between the Trust and the Administrator.

         "ADMINISTRATION FEE" means the fee, if any, from time to time payable
to the Administrator pursuant to the Administration Agreement..

         "ADMINISTRATOR" means NELnet, Inc., a Nevada Corporation, and its
successors and assigns.

         "AUTHORIZED OFFICER" means, with respect to an entity, the Chairman of
the Board, the President, Chief Operating Officer, any Senior Vice President,
Secretary, Treasurer, any Vice President or any Assistant Vice President
thereof.

         "BUSINESS DAY" means any day other than (a) a Saturday or a Sunday or
(b) a day on which banking or savings and loan institutions in the principal
business location of the Delaware Trustee or the Administrator are authorized or
obligated by law or executive order to be closed.

         "CERTIFICATE" means a certificate issued by the Trust evidencing the
ownership interests in the Trust as set forth thereon.

                                       2
<PAGE>

         "CERTIFICATEHOLDER" means the Persons or Person in whose name a
Certificate is registered in the Register on the applicable date.

         "DELAWARE TRUSTEE" means [Wilmington Trust Company], not in its
individual capacity but solely in its capacity as trustee of the Trust under the
Trust Agreement, and its successors in interest.

         "INDENTURE" means the Indenture of Trust dated as of _______ 1, 200__
by and between [Nelnet Student Loan Trust- __] and [____________], as trustee,
as supplemented or amended from time to time.

         "INDEPENDENT TRUSTEE" means a Person that (i) is independent and is not
a stockholder or other securityholder (whether direct, indirect or beneficial),
customer or supplier of the Trust or any of its affiliates; (ii) is not a
director, officer, employee, affiliate, member, manager or associate of the
Trust or any of its affiliates (other than in its capacity as the Delaware
Trustee for the Trust); (iii) is not related to any Person referred to in
clauses (i) or (ii); (iv) is not a trustee, conservator or receiver for the
Trust or any of its affiliates (other than in its capacity as Delaware Trustee
for the Trust); and (v) in the ordinary course of its business, acts as a
business trustee for other special purpose business trusts similar to the Trust
and is otherwise independent from the Trust and its affiliates (except as
provided above); provided that affiliates as used in this sentence does not
include the interests of the Delaware Trustee and its affiliates in each other.

         "MOODY'S" means Moody's Investors Service, Inc., and its successors and
assigns.

         "NOTES" shall have the meaning set forth in the Indenture.

         "NOTICES" has the meaning specified in Section 10.05.

         "OPINION OF COUNSEL" a written opinion of counsel, who may be counsel
for a Certificateholder, which opinion is reasonably acceptable to the Delaware
Trustee

         "PAYMENTS" has the meaning specified in Section 4.01(b).

         "PERCENTAGE INTEREST" means with respect to any Certificate the
percentage interest set forth on the face of such Certificate.

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

         "PTCE 95-60" shall have the meaning set forth in Section 3.04(c)
hereof.

         "REGISTER" means a register kept by the Registrar in which, subject to
such reasonable regulations as it may prescribe, the Registrar shall provide for
the registration of the Certificates and the registration of transfers of the
Certificates.

         "REGISTRAR" means the Delaware Trustee, or its designee, as Registrar
hereunder.

                                       3
<PAGE>

         "REGISTERED OWNER" shall have the meaning set forth in the Indenture.

         "REQUIRED CERTIFICATEHOLDERS" means the approval of or direction by the
Certificateholders holding a majority of the Percentage Interests.

         "RULE 144A LETTER" has the meaning set forth in Section 3.04(b).

         "SECURITIES ACT" means the Securities Act of 1933, as amended.

         "SPONSOR" means Nelnet Student Loan Funding, LLC, a Delaware limited
liability company.

         "STANDARD & POOR'S" Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, and its successors and assigns.

         "TRANSACTION DOCUMENTS" has the meaning specified in Section
2.05(a)(i).

         "TRUST" means the [Nelnet Student Loan Trust-__] established pursuant
to the Trust Agreement.

         "TRUST AGREEMENT" means this Trust Agreement dated as of ________ by
and between Nelnet Student Loan Funding, LLC, as Initial Certificateholder and
Sponsor, and [_____________________], as Delaware Trustee.

         "TRUST COMPANY" means [___________________], in its individual
capacity.

         "TRUST ESTATE" means all of the assets, property, and security
interests related thereto contributed, sold, assigned or otherwise transferred
to or acquired by the Trust together with all other assets subject hereto,
constituting the Trust created hereby and to be administered hereunder,
including without limitation, the earnings thereon and products and proceeds
thereof.

         "TRUST PAYMENT DATE STATEMENT" has the meaning set forth in Section
4.04 hereof.

         "TRUST STATUTE" means Chapter 38 of Title 12 of the Delaware Code, 12
Del. Code ss. 3801 et seq., as the same may be amended from time to time.

         "UCC FINANCING STATEMENT" shall have the meaning set forth in Section
2.05 (c) hereof.

         SECTION 1.02 OTHER REFERENCES.

                  (a) As used in this Trust Agreement and in any certificate or
         other document made or delivered pursuant hereto or thereto, accounting
         terms not defined in this Trust Agreement or in any such certificate or
         other document, and accounting terms partly defined in this Trust
         Agreement or in any such certificate or other document, to the extent
         not defined, shall have the respective meanings given to them under
         generally accepted accounting principles. To the extent that the
         definitions of accounting terms in this Trust Agreement or in any such
         certificate or other document are inconsistent with the meanings of
         such terms under generally accepted accounting principles, the
         definitions contained in this Trust Agreement or in any such
         certificate or other document shall control.

                                       4
<PAGE>

                  (b) The definitions contained in this Trust Agreement are
         applicable to the singular as well as the plural, the past, the
         present, the future, the active and the passive forms of such terms and
         to the masculine as well as the feminine and neuter genders of such
         terms.

                  (c) Any agreement, instrument or statute defined or referred
         to herein or in any instrument or certificate delivered in connection
         herewith means such agreement, instrument or statute as from time to
         time amended, modified or supplemented 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.

                  (d) The terms "hereof," "herein," "hereby," "hereof" or
         "hereunder," unless otherwise modified by more specific reference,
         shall refer to this Trust Agreement in its entirety as amended from
         time to time. Unless otherwise indicated in context, the terms
         "Article," "Section," "Schedule," or "Exhibit" shall refer to an
         Article or Section of, or Schedule or Exhibit to, this Trust Agreement.
         The headings of sections and paragraphs and the Table of Contents
         contained in this Trust Agreement are provided for convenience only.
         They form no part of this Trust Agreement and shall not affect its
         construction or interpretation.

                                   ARTICLE II

                           ORGANIZATION OF THE TRUST;
               AUTHORITY TO EXECUTE AND PERFORM VARIOUS DOCUMENTS;
                    DECLARATION OF TRUST BY DELAWARE TRUSTEE

         SECTION 2.01. ESTABLISHMENT OF THE TRUST. The Sponsor and the Delaware
Trustee hereby establish a Delaware business trust pursuant to the Trust Statute
to be known as ["Nelnet Student Loan Trust - __."] Simultaneously with the
execution hereof, the Sponsor shall make a contribution to the Trust as the
Sponsor's initial contribution, as described more fully in Exhibit A hereto, and
thereafter may transfer and assign the property described in the granting
clauses of the Indenture to the Trust under the terms of Loan Purchase
Agreements and other assignment agreements by and between the Sponsor, as seller
or assignor, and the Trust, as purchaser or assignee, and may assume certain
obligations under and in accordance with the Transaction Documents. Upon the
making of such contribution, the Delaware Trustee shall record the amount
thereof on the books of the Trust and the investment of the Sponsor therein. It
is the intention of the parties hereto that the Trust shall constitute a
business trust under the Trust Statute, that this Trust Agreement shall
constitute the governing instrument of such Trust and that the
Certificateholders shall hold all of the beneficial interests in the Trust. The
rights of the Certificateholders shall be determined herein and the relationship
between the parties hereto created by this Trust Agreement shall not constitute
indebtedness for any purpose. Subject to Section 2.08, it is the intention of
the parties hereto that, solely for purposes of federal income taxes, state and
local income and franchise taxes, and any other taxes imposed on, measured by or
based upon gross or net income, (i) if there is only one Certificateholder, the
Trust shall be treated as a disregarded entity separate from its owner pursuant
to Treasury Regulation 301.7701-2(c)(2) and (ii) if there is more than one

                                       5
<PAGE>

Certificateholders, the Trust shall be treated as a partnership, and that the
provisions of this Trust Agreement shall be construed in accordance with such
intent. The parties hereto agree to take no action inconsistent with such
treatment, unless required otherwise by applicable law. The Delaware Trustee is
hereby authorized to file the certificate required under Section 3810 et seq. of
the Trust Statute in connection with the formation of the Trust under the Trust
Statute.

         SECTION 2.02. NAME. The name of the Trust shall be [Nelnet Student Loan
Trust - __], in which name the Delaware Trustee solely in such capacity on
behalf of the Trust may, subject to the terms hereof and the other Transaction
Documents, conduct business, make and execute loans, contracts, security
instruments and other instruments, acquire, pledge, convey and transfer property
and sue or be sued.

         SECTION 2.03. OFFICE AND SITUS OF TRUST. The Trust shall be located and
administered in the State of Delaware. All Trust Company accounts on behalf of
the Trust shall be located in the State of Delaware. The Trust shall not have
any employees in any state other than Delaware; provided, however, that nothing
herein shall restrict or prohibit the Trust Company (in its individual capacity
but not as Delaware Trustee) from having employees within or without the State
of Delaware. The only office of the Trust shall be the corporate trust office of
the Delaware Trustee in Delaware.

         SECTION 2.04. AUTHORITY. Effective as of the date hereof, the Delaware
Trustee shall have all of the rights, powers and duties set forth herein, and to
the extent not inconsistent herewith, in the Trust Statute with respect to
accomplishing the purposes of the Trust.

         SECTION 2.05. POWERS AND AUTHORITY.

                  (a) Subject to Section 2.09, the Trust has been created for
         the purpose of purchasing and owning student loans, issuing Notices
         from time to time, pledging its interest in student loans and other
         collateral under the terms of the Indenture to secure the Notes and
         performing activities that are necessary, suitable or convenient to
         accomplish those purposes, including without limitation, the following:

                           (i) execute and deliver the Indenture, the
                  Administration Agreement and one or more loan purchase
                  agreements, note purchase agreements, servicing agreements,
                  sub-servicing agreements, eligible lender trust agreements,
                  guaranty agreements, custodial agreements, Investment
                  Agreements, Derivative Products [__________], and such other
                  documents relating to the transactions contemplated by the
                  Indenture and hereby, as the Required Certificateholders or
                  the Administrator may from time to time direct in writing
                  (collectively, the "Transaction Documents"), in each case in
                  the respective forms in which the same may be delivered by or
                  on behalf of the Certificateholders or the Administrator to
                  the Delaware Trustee from time to time for execution and
                  delivery, and accept any document that is not signed by the
                  Delaware Trustee, the delivery of which is provided for under
                  any of the preceding agreements;

                                       6
<PAGE>

                           (ii) execute and deliver all other documents,
                  certificates, instruments and agreements that are provided to
                  it and are contemplated to be executed and delivered by the
                  Delaware Trustee or the Trust, as applicable, by the documents
                  referred to in clause (i) above;

                           (iii) to originate and acquire Eligible Loans;

                           (iv) to deposit and apply the proceeds of the sale of
                  the Notes pursuant to any agreement supplemental to the
                  Indenture executed pursuant to the Indenture;

                           (v) to assign, grant, transfer, pledge, mortgage and
                  convey all or any portion of the Trust Estate pursuant to the
                  Indenture and to hold, manage and distribute to the
                  Certificateholders pursuant to the terms of this Trust
                  Agreement any portion of the Trust Estate released from the
                  lien of, and remitted to the Trust pursuant to, the Indenture;

                           (vi) execute and deliver assignments and assumptions
                  with respect to certain rights and responsibilities under the
                  Transaction Documents;

                           (vii) upon the direction of the Required
                  Certificateholders or the Administrator take whatever action
                  shall be required to be taken by the Delaware Trustee by the
                  terms of, and to exercise its rights and perform its duties
                  under, each of the documents referred to in clauses (i)
                  through (vi) above as set forth therein;

                           (viii) upon a Certificateholder making or causing to
                  be made available to the Delaware Trustee the contributions
                  referred to in Section 2.01 hereof, record the amount thereof
                  on the books of the Trust as the investment of the
                  Certificateholder therein;

                           (ix) upon a Certificateholder making available to the
                  Delaware Trustee the amounts necessary to pay the expenses
                  arising with respect to the Transaction Documents to the
                  extent not paid by a Certificateholders or pursuant to the
                  Transaction Documents, to pay such expenses as directed by the
                  Certificateholder or the Administrator and to note such
                  payment on the books of the Trust;

                           (x) pay, remit and distribute monies received by the
                  Trust pursuant to Section 4.01 hereof;

                           (xi) subject to the terms of this Trust Agreement and
                  the Transaction Documents, to engage in such other activities
                  as may be required in connection with the conservation of the
                  Trust Estate, payment of the Notes and making distributions to
                  the Certificateholders;

                           (xii) issue, execute and deliver the Certificates in
                  the respective form attached hereto;

                                       7
<PAGE>

                           (xiii) take such other actions as are specified
                  herein or are incidental to the foregoing; and

                           (xiv) subject to the terms of this Trust Agreement,
                  take such other action in connection with the foregoing as the
                  Required Certificateholders or the Administrator may from time
                  to time direct.

                  (b) Notwithstanding anything herein to the contrary, the Trust
         is neither authorized nor empowered to engage in any activity other
         than exercising its rights, powers and authority and performing its
         obligations in accordance with the express provisions of Section
         2.05(a) hereof. The Delaware Trustee may establish such trust accounts
         on its records (or through the Trust Company) in its discretion as it
         may deem desirable or appropriate for the deposit and disbursement of
         any monies delivered to it hereunder.

                  (c) Notwithstanding anything in this Trust Agreement or in any
         other Transaction Document to the contrary, the Trust is hereby
         authorized to execute, deliver and perform the Indenture, each Student
         Loan Purchase Agreement and such financing statements (UCC-1 and UCC-3)
         evidencing the security interests granted by the Trust (the "UCC
         Financing Statement") pursuant to any of the foregoing agreements
         and/or the assignment of the Trust's interests in collateral pledged or
         assigned to the Trust pursuant to any of the foregoing documents, and
         the Delaware Trustee is hereby authorized to execute and deliver such
         documents on behalf of the Trust without any approval, consent or other
         action by any party hereto, and such execution, delivery and
         performance do not and shall be deemed not to conflict with or violate
         any provision of this Trust Agreement or any duty or restriction
         hereunder of any party hereto.

         SECTION 2.06. DECLARATION OF TRUST BY DELAWARE TRUSTEE. The Delaware
Trustee hereby declares that it will hold the Trust Estate upon the trusts set
forth herein for the use and benefit of the Certificateholders and as Delaware
Trustee for the Certificateholders hereunder.

         SECTION 2.07. THE INDENTURE. The Certificateholders and the Delaware
Trustee hereby acknowledge that, when executed and delivered, the Indenture
shall create a lien on the Trust Estate, subject to the limitations set forth in
such agreements.

         SECTION 2.08. TITLE TO TRUST ESTATE.

                  (a) Subject to the lien of the Indenture, title to all of the
         Trust Estate at all times shall be vested in the Trust as a separate
         legal entity except (i) where applicable law in any jurisdiction
         requires title to any part of the Trust Estate to be vested in a
         trustee or trustees, in which case title to that part of the Trust
         Estate shall be vested in the Delaware Trustee, a co-trustee and/or a
         separate trustee, as the case may be, and except that record title to
         Eligible Loans that are part of the Trust Estate shall be held by an
         eligible lender trustee pursuant to the terms of the Indenture and the
         Trust Estate shall have a beneficial interest therein.

                                       8
<PAGE>

                  (b) The Certificateholders shall not have legal title to any
         part of the Trust Estate. No transfer by operation of law or otherwise
         of any interest of a Certificateholder shall operate to terminate this
         Trust Agreement or the trust hereunder or entitle any transferee to an
         accounting or to the transfer to it of any part of the Trust Estate.

         SECTION 2.09. AGREEMENTS NOT TO INSTITUTE BANKRUPTCY PROCEEDINGS;
COVENANTS.

                  (a) Notwithstanding any other provision to the contrary of
         this Trust Agreement or any other agreement, document or instrument
         executed by the Trust and notwithstanding any prior termination of this
         Trust Agreement, the Sponsor shall not institute any proceedings to
         adjudicate the Trust a bankrupt or insolvent, consent to the
         institution of bankruptcy or insolvency proceedings against the Trust,
         file a petition seeking or consenting to reorganization or relief under
         any applicable federal or state law relating to bankruptcy, consent to
         the appointment of a receiver, liquidator, assignee, trustee,
         sequestrator (or other similar official) of the Trust or a substantial
         part of its property or admit its inability to pay its debts generally
         as they become due or authorize any of the foregoing to be done or
         taken on behalf of the Trust.

                  (b) So long as the Indenture is in effect, and except as
         otherwise provided in the Indenture and the Transaction Documents:

                           (i) The Trust shall not engage in any business or
                  activity other than in connection with or relating to the
                  purchase or acquisition and ownership of the Trust Estate, the
                  grant of such Trust Estate to the Trustee and the activities
                  specified in Section 2.05.

                           (ii) The Trust shall not consolidate or merge with or
                  into any other entity or convey or transfer its properties and
                  assets substantially as an entirety to any entity, or pledge
                  its assets to any other entity except as provided in the
                  Transaction Documents.

                           (iii) The Trust shall not dissolve or liquidate, in
                  whole or in part.

                           (iv) The Trust shall not be, become or hold itself
                  out as being liable for the debts of any other party, or hold
                  out its credit as being available to satisfy the obligation of
                  others, and the Trust and the Sponsor will not act as agents
                  for each other.

                           (v) The Trust shall not form, or cause to be formed,
                  any subsidiaries.

                           (vi) The Trust shall act solely in its Trust name and
                  through its duly Authorized Officers or agents in the conduct
                  of its business, shall prepare all Trust correspondence in the
                  Trust name, shall hold itself out as a separate entity, shall
                  conduct its business so as not to mislead others as to the
                  identity of the entity with which they are concerned and shall
                  correct any known misunderstanding regarding its separate
                  identity.

                                       9
<PAGE>

                           (vii) The Trust shall maintain business trust
                  records, accounts and books of account and shall not commingle
                  its business trust records, accounts and books of account with
                  the organizational or other records, accounts and books of
                  account of any other corporation or entity and such records,
                  accounts and books of account shall reflect the separate
                  existence of the Trust. The books of the Trust may be kept
                  (subject to any provision contained in any applicable
                  statutes) inside or outside the State of Delaware at such
                  place or places as may be designated from time to time by the
                  Trust.

                           (viii) The Trust shall take such actions as may be
                  necessary to authorize all of its actions as may be required
                  by law.

                           (ix) This Section 2.09 shall not be amended, altered,
                  changed or repealed, except as may be permitted pursuant to
                  the Transaction Documents.

                           (x) The Trust shall not amend this Trust Agreement,
                  except as may be permitted pursuant to the Transaction
                  Documents.

                           (xi) The Trust shall (1) conduct its business in an
                  office separate from that of the Certificateholders, (2)
                  maintain stationery, invoices and checks separate from that of
                  the Certificateholders, (3) pay all of its own expenses and
                  liabilities from its own funds to the extent available, (4)
                  observe all statutory formalities, (5) pay the salaries of its
                  own employees and maintain a sufficient number of employees in
                  light of its contemplated business operations, (6) maintain an
                  arm's length relationship with its affiliates and (7) maintain
                  separate financial statements. The Trust shall not (A) pledge
                  (except pursuant to the Transaction Documents), lend or
                  advance any moneys to, or make an investment in, any Person
                  (B) make any capital expenditures, (C)(1) commence any case,
                  proceeding or other action under any existing or future
                  bankruptcy, insolvency or similar law seeking to have an order
                  for relief entered with respect to it, or seeking
                  reorganization, arrangement, adjustment, wind-up, liquidation,
                  dissolution, composition or other relief with respect to it or
                  its debts, (2) seek appointment of a receiver, trustee,
                  custodian or other similar official for it or any part of its
                  assets, (3) make a general assignment for the benefit of
                  creditors, or (4) take any action in furtherance of, or
                  consenting or acquiescing in, any of the foregoing, or (D)
                  guarantee (directly or indirectly), endorse or otherwise
                  become contingently liable (directly or indirectly) for the
                  obligations of, or own or purchase any stock, obligations or
                  securities of or any other interest in, or make any capital
                  contribution to, any other Person.

                           (xii) The Trust (A) has maintained and shall maintain
                  its valid existence, rights and franchises in good standing as
                  a business trust under the laws of the State of Delaware and
                  will obtain and preserve its qualification to do business in
                  each jurisdiction in which such qualification is or shall be
                  necessary to protect the validity and enforceability of this
                  Trust Agreement; (B) has observed and shall observe all
                  procedures required by this Trust Agreement and the laws of
                  the State of Delaware; and (C) has otherwise complied and
                  shall otherwise comply with the provisions of this Trust
                  Agreement and the Trust Statute.

                                       10
<PAGE>

                           (xiii) Financial and operational services, including,
                  without limitation, maintenance of the books and records of
                  the Trust shall be performed on behalf of the Trust by
                  independent contractors. The entity performing such services
                  or incurring expenses in connection with such services shall
                  receive compensation for such services rendered or expenses
                  incurred in an amount equal to the fair value of such services
                  and expenses. To the extent that the Trust leases premises
                  from a Certificateholder or affiliates of a Certificateholder,
                  the Trust shall pay appropriate compensation or rental. The
                  Trust shall be directly responsible for the costs of its own
                  outside legal, auditing and other similar services and shall
                  provide for its own operating expenses and liabilities from
                  its own funds. The cash flow expected to be received by the
                  Trust under the Indenture is expected to be sufficient to meet
                  the fees and costs of the Delaware Trustee and the
                  Administrator for the Trust and the reasonably anticipated
                  expenses and liabilities of the Trust.

                           (xiv) The annual financial statements of the Trust
                  shall disclose the effects of these transactions in accordance
                  with generally accepted accounting principles. The
                  consolidated financial statements which consolidate the assets
                  and earnings of any Certificateholder with those of the Trust
                  shall contain a footnote stating that the assets of any of the
                  foregoing shall not be available to creditors of a
                  Certificateholder. The financial statements (if any) of the
                  Trust shall disclose that the assets of the Trust are not
                  available to pay creditors of any Certificateholder or any
                  other affiliate (other than the obligations of the
                  Certificateholder to pay the expenses of and to indemnify the
                  Delaware Trustee).

                           (xv) The Trust will not guarantee any indebtedness of
                  or make loans to a Certificateholder.

                  (c) Except for the Delaware Trustee's standard practice
         regarding maintenance of funds and assets, the funds and other assets
         of the Trust will not be commingled with those of any other Person.

         SECTION 2.10. APPOINTMENT OF DELAWARE TRUSTEE. The Certificateholders
hereby appoints the Delaware Trustee as trustee of the Trust effective as of the
date hereof, to have all of the rights, powers, authority, authorization and
duties set forth herein.

         SECTION 2.11. FEDERAL INCOME TAX ALLOCATIONS. Net income of the Trust
for any period, as determined for federal income tax purposes (and each item of
income, gain, loss and deduction entering into the computation thereof), shall
be allocated to the Certificateholders on a pro rata basis in accordance with
their respective percentages of the ownership interests in the Trust.

         SECTION 2.12. LIMITATIONS ON CERTIFICATEHOLDERS. Each Certificateholder
by accepting an interest in the Trust agrees that it will not enter into any
agreements, written or otherwise, between the Certificateholder and the Trust or
any other party (other than the obligations of the Certificateholder under
Sections 5.03, 6.08 and Article VII hereof) pursuant to which the
Certificateholder agrees to extend credit or make payment or contributions to or
for or assume, guaranty or otherwise be obligated for the payment or performance
of the Trust. This provision shall not prohibit any Certificateholder from
making any capital contributions to the Trust that such Certificateholder
determines to be in the Certificateholder's best interest.

                                       11
<PAGE>

         SECTION 2.13. ADMINISTRATION. Unless and until otherwise notified in
writing by the Required Certificateholders, the Delaware Trustee is hereby
authorized and directed to take and receive instructions from the Administrator
pursuant to the Administration Agreement with respect to matters relating to the
Trust to the same extent and with the same effect and protection as if any such
instructions were received from the Required Certificateholders subject to the
provisions hereof. The Administrator shall be entitled to the Administrator Fee
for services provided pursuant to the provisions hereof, which compensation is
hereby acknowledged as reasonable compensation by the Administrator and the
Certificateholders. The Administrator Fee shall be payable monthly as provided
herein and in the Indenture.

         SECTION 2.14. ADDITIONAL CONTRIBUTIONS. Any Certificateholder may make
an additional capital contribution (which capital contribution may be made with
funds advanced to the Certificateholder from the Administrator) to the Trust to
enable the Trust to carry out any instructions of such Certificateholder that
are permitted by the Transaction Documents, including an optional capital
contribution to enable the Trust to effect an optional purchase of Notes. If
such Certificateholder makes such a capital contribution, the Delaware Trustee
shall establish a separate trust account designated for the deposit of such
capital contributions. If a Certificateholder makes a capital contribution to
enable the Trust to take any action, any proceeds that result from such action
in an amount up to the amount of the capital contribution shall, if so directed
by the Certificateholder, be credited to such separate account and shall be
distributed to the Certificateholder that made such capital contribution.

         SECTION 2.15. PRINCIPAL PLACE OF BUSINESS. The Trust shall maintain its
principal place of business and chief executive office in the State of Delaware.

SECTION 2.16. LIABILITY OF THE CERTIFICATEHOLDERS AND THE DELAWARE TRUSTEE. To
the fullest extent permitted by law, no Certificateholder shall have any
personal liability for any liability or obligation of the Trust for any losses,
claims, damages, liabilities and expenses of the Trust. The Delaware Trustee
shall not have any liability or obligation with respect to the
Certificateholders except as otherwise provided herein.

                                  ARTICLE III

                  TRUST CERTIFICATES AND TRANSFER OF INTERESTS

         SECTION 3.01. INITIAL BENEFICIAL OWNERSHIP. Upon the formation of the
Trust by the contribution by the Sponsor pursuant to Section 2.01 and until the
issuance of Certificates, the Sponsor shall be the sole beneficial owner of the
Trust.

                                       12
<PAGE>

         SECTION 3.02. THE CERTIFICATES.

                  (a) The Certificates are issuable in fully registered form.
         Each Certificate shall be substantially in the form set forth in
         Exhibit C to this Trust Agreement. All Certificates may have set forth
         thereon such information, legends, and text as may be necessary or
         appropriate to conform to any applicable rules and regulations of any
         governmental authority or any usage or requirement of law with respect
         thereto. The Certificates shall be executed on behalf of the Trust by
         manual or facsimile signature of an Authorized Officer of the Delaware
         Trustee. Certificates bearing the manual or facsimile signatures of
         individuals who were, at the time when such signatures shall have been
         affixed, authorized to sign on behalf of the Delaware Trustee, shall be
         duly authorized, validly issued and entitled to the benefits of this
         Trust Agreement, notwithstanding that such individuals or any of them
         shall have ceased to be so authorized prior to the authentication and
         delivery of such Certificates or did not hold such offices at the date
         of authentication and delivery of such Certificates.

                  (b) A transferee of a Certificate shall become a
         Certificateholder and shall be entitled to the rights and subject to
         the obligations of a Certificateholder hereunder upon such transferee's
         acceptance of a Certificate duly registered in such transferee's name
         pursuant to Section 3.04.

         SECTION 3.03. AUTHENTICATION OF CERTIFICATES. No Certificate shall
entitle its Certificateholder to any benefit under this Trust Agreement or be
valid for any purpose unless there shall appear on such Certificate a
certificate of authentication substantially in the form set forth in Exhibit C,
executed by the Trust by manual signature of the Delaware Trustee; such
authentication shall constitute conclusive evidence that such Certificate has
been duly authenticated and delivered hereunder. All Certificates shall be dated
the date of their authentication.

         SECTION 3.04. REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES.

                  (a) The Delaware Trustee shall keep or cause to be kept, at
         the office or agency maintained pursuant to Section 3.08, a Register in
         which, subject to such reasonable regulations as it may prescribe, the
         Registrar shall provide for the registration of Certificates and of
         transfers and exchanges of Certificates as herein provided.

                  (b) The Certificates have not been and will not be registered
         under the Securities Act and will not be listed on any exchange. No
         transfer of a Certificate shall be made unless such transfer is made
         pursuant to an effective registration statement under the Securities
         Act and any applicable state securities laws or is exempt from the
         registration requirements under the Securities Act and such state
         securities laws. In the event that a transfer is to be made in reliance
         upon an exemption from the Securities Act and state securities laws, in
         order to assure compliance with the Securities Act and such laws, the
         Certificateholder desiring to effect such transfer and such
         Certificateholder's prospective transferee shall each certify to the
         Trust, the Delaware Trustee, the Administrator and the transferring
         Certificateholder in writing the facts surrounding the transfer in
         substantially the forms set forth in Exhibit D (the Transferor Letter)
         and Exhibit E (the Investment Letter) or Exhibit F (the "Rule 144A
         Letter"), as applicable. Except in the case of a transfer as to which

                                       13
<PAGE>

         the proposed transferee has provided a Rule 144A Letter with respect to
         a Rule 144A transaction, there shall also be delivered to the Trust an
         Opinion of Counsel to the effect that such transfer may be made
         pursuant to an exemption from the Securities Act, which Opinion of
         Counsel shall not be an expense of the Trust, the Delaware Trustee
         (unless it is the transferee from whom such opinion is to be obtained)
         or of the Administrator. Each Certificateholder of a Certificate
         desiring to effect such a transfer shall, and does hereby agree to,
         indemnify the Trust, the Delaware Trustee and the Administrator against
         any liability that may result if the transfer is not so exempt or is
         not made in accordance with federal and state securities laws.

                  (c) No transfer, sale, pledge or other disposition of the
         Certificate shall be made unless prior to such transfer, sale, pledge
         or other disposition, the Trust shall have received either (i) a
         representation letter from the transferee of such Certificate,
         acceptable to and in form and substance satisfactory to the Trust, to
         the effect that such a transferee (A) is not an employee benefit plan
         subject to Section 406 of ERISA or Section 4975 of the Code, or a
         person acting on behalf of any such plan, or (B) is an insurance
         company which is purchasing such Certificates with funds contained in
         an "insurance company general account" (as such term is defined in
         Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE
         95-60")) and that the purchase and holding of such Certificates are
         covered under PTCE 95-60, or (ii) in the case of any Certificate
         presented for registration in the name of an employee benefit plan
         subject to ERISA or Section 4975 of the Code (or comparable provisions
         of any subsequent enactments), or a trustee of any such plan or any
         other person acting on behalf of any such plan, an Opinion of Counsel
         satisfactory to the Trust, the Delaware Trustee and the Administrator
         to the effect that the purchase or holding of such Certificate will not
         result in the Trust or the Trust Estate being deemed to be "plan
         assets" and subject to the prohibited transaction provisions of ERISA
         and the Code and will not subject the Trust, Delaware Trustee, the
         Administrator or the transferring Certificateholder to any obligation
         in addition to those undertaken in this Trust Agreement.
         Notwithstanding anything else to the contrary herein, in the event any
         purported transfer of any Certificate is made without delivery of the
         representation letter referred to above, such representation shall be
         deemed to have been made by the transferee by its acceptance of such
         Certificate. In addition, any purported transfer of an Certificate to
         or on behalf of an employee benefit plan subject to ERISA or to the
         Code without the delivery to the Trust, the Delaware Trustee, and the
         Administrator of an Opinion of Counsel as described above shall be void
         and of no effect. Any certificate or Opinion of Counsel furnished
         pursuant to this Section 3.04 may be relied on conclusively by the
         Trust, Delaware Trustee, the Administrator and the transferring
         Certificateholder in determining whether the provisions hereof have
         been complied with.

                  (d) In addition, no transfer, sale, pledge or other
         disposition of the Certificate (except by operation of law) shall be
         permitted unless evidenced by [one or more] [an] Opinion[S] of Counsel
         to the effect that [(i)] such transfer, sale, pledge or other
         disposition, if consummated, would not cause the Trust to be
         characterized as an association or a publicly traded partnership
         taxable as a corporation by having more than 100 beneficial owners at
         any time during the taxable year of the Trust, a corporation or a
         taxable mortgage pool for federal income tax purposes [and (ii) the
         assets of the proposed transferee would not be consolidated with the
         Trust Estate in the event of such transferee's bankruptcy or
         insolvency].

                                       14
<PAGE>

                  (e) The foregoing provisions shall not prevent the assignment
         by a Certificateholder of all or any part of its right to receive
         distributions in respect of its interest in its Certificate, but such
         assignment shall effect no change in ownership of the Trust.

                  (f) The preparation and delivery of the certificate and
         opinions referred to in this Section 3.04 shall not be an expense of
         the Trust, the Delaware Trustee or the Administrator.

                  (g) Upon surrender for registration of transfer of any
         Certificate at the office or agency maintained pursuant to Section
         3.08, the Delaware Trustee shall execute, authenticate and deliver, in
         the name of the designated transferee or transferees, one or more new
         Certificates in authorized denominations stating the aggregate amount
         and Percentage Interest so transferred dated the date of authentication
         by the Delaware Trustee. At the option of a Certificateholder,
         Certificates may be exchanged for other Certificates of authorized
         Percentage Interests and denominations of a like aggregate amount upon
         surrender of the Certificates to be exchanged at the office or agency
         maintained pursuant to Section 3.08.

                  (h) Every Certificate presented or surrendered for
         registration of transfer or exchange shall be accompanied by a written
         instrument of transfer in form satisfactory to the Trust and duly
         executed by the Certificateholder or such Certificateholder's attorney
         duly authorized in writing. Each Certificate surrendered for
         registration of transfer or exchange shall be cancelled and
         subsequently disposed of by the Trust in accordance with its customary
         practice.

                  (i) No service charge shall be made for any registration of
         transfer or exchange of Certificates, but the Trust may require payment
         of a sum sufficient to cover any tax or governmental charge that may be
         imposed in connection with any transfer or exchange of Certificates.

                  (j) Notwithstanding any other provision herein or elsewhere,
         the Trust, the Delaware Trustee and the Administrator (i) shall not
         have any obligation to determine whether any transfer or exchange of a
         Certificate is permitted under or in accordance with this Trust
         Agreement; (ii) shall not have any personal liability to any person in
         connection with any transfer or exchange or proposed or purported
         transfer or exchange (and/or registration thereof) that is not
         permitted under or in accordance with this Trust Agreement; (iii) shall
         be entitled to rely (and shall be fully justified and protected in so
         relying) on the Register as to the identity of the Certificateholders
         and as to the Certificates and the Percentage Interests and
         denominations thereof evidenced thereby.

         SECTION 3.05. MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES. If (i)
any mutilated Certificate is surrendered to the Trust and the Registrar or the
Trust receives evidence to its satisfaction of the destruction, loss or theft of
the Certificate, and (ii) there is delivered to the Registrar, the Trust, the
Delaware Trustee and the Administrator such security or indemnity as may be
required by them to save each of them harmless, then, in the absence of notice
to the Registrar or the Trust that the Certificate has been acquired by a
protected purchaser, the Delaware Trustee shall execute and the Delaware Trustee
or the Registrar shall authenticate and deliver, in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of
like tenor, amount and Percentage Interest but bearing a number not

                                       15
<PAGE>

contemporaneously outstanding. Upon the issuance of any new Certificate under
this Section 3.05, the Trust may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of the Certificate and any other reasonable
expenses (including the reasonable fees and expenses of the Trust, Delaware
Trustee, the Administrator and the Registrar) connected therewith. Any duplicate
Certificate issued pursuant to this Section 3.05 shall constitute complete and
indefeasible evidence of ownership in the Trust, as if originally issued,
whether or not the lost, stolen or destroyed Certificate shall be found at any
time.

         SECTION 3.06. PERSONS DEEMED OWNERS. Prior to due presentation of a
Certificate for registration of transfer, the Trust, Delaware Trustee, the
Administrator and the Registrar may treat the Person in whose name any
Certificate is registered in the Register as the owner of such Certificate for
the purpose of receiving distributions pursuant to Section 4.01(b) and for all
other purposes whatsoever, and none of the Trust, Delaware Trustee, the
Administrator or the Registrar shall be bound by any notice to the contrary.

         SECTION 3.07. ACCESS TO LIST OF CERTIFICATEHOLDERS' NAMES AND
ADDRESSES. The Trust shall furnish or cause to be furnished to the Administrator
or a Certificateholder, within 15 days after receipt by the Delaware Trustee of
a written request therefor from the Administrator or the Certificateholder, a
list, in such form as the Administrator or the Certificateholder may reasonably
require, of the names and addresses of the Certificateholders then registered in
the Register as the owner of Certificates. Each Certificateholder, by receiving
and holding a Certificate, shall be deemed to have agreed not to hold any of the
other Certificateholders, the Trust, the Delaware Trustee, the Administrator, or
the Registrar accountable by reason of the disclosure of its name and address,
regardless of the source from which such information was derived.

         SECTION 3.08. MAINTENANCE OF OFFICE OR AGENCY. The Trust will maintain
an office or agency in Wilmington, Delaware where Certificates may be
surrendered for registration of transfer or exchange. The Trust will maintain an
office at the address stated in Section 10.05 hereof where notices and demands
to or upon the Trust, the Delaware Trustee, the Administrator, and the Registrar
in respect of this Trust Agreement may be served.

         SECTION 3.09. TERMS OF CERTIFICATES BINDING. Each Certificateholder, by
assenting to the acquisition by it of a Certificate, agrees to be bound by the
terms and conditions of the Certificates and of this Trust Agreement, including
any supplements or amendments thereto or hereto, and to perform the obligations
of a Certificateholder as set forth therein or herein, in all respects as if it
were a signatory hereto. This undertaking is made for the benefit of the Trust,
the Delaware Trustee, the Administrator, the Registrar, and all other
Certificateholders, if any.

                                       16
<PAGE>

                                   ARTICLE IV

                           DISTRIBUTIONS AND PAYMENTS

         SECTION 4.01. DISTRIBUTION OF PAYMENTS.

                  (a) Until the Trust shall have received written notice from
         the Trustee that the Indenture shall have been discharged pursuant to
         its terms, all revenues and receipts of any kind whatsoever generated
         by, remitted in respect of or relating to the Trust Estate and other
         payments and receipts of any kind with respect to the Trust Estate or
         otherwise included in the Trust Estate shall, if received directly by
         the Delaware Trustee, forthwith after receipt, be paid over by the
         Delaware Trustee to the Trustee without deduction, set-off or
         adjustment of any kind for distribution in accordance with the
         provisions of the Indenture; provided, that neither the making of such
         payments to, nor the receipt of such payments by, the Trustee or any
         other person shall ever be deemed to constitute the Trustee or any such
         person as an income beneficiary hereunder, it being understood that all
         such payments will be made pursuant to contractual obligations under
         the Indenture; and provided, further, that the Delaware Trustee shall
         not be required to turn over any such amounts received from the
         Trustee, or received on account of any amounts referred to in clause
         FIRST of Section 4.01(b) hereof or Article VII.

                  (b) Except as otherwise provided in paragraph (a) of this
         Section, (i) all payments and amounts actually received by or on behalf
         of the Delaware Trustee from Trust Estate sources pursuant to the
         Indenture and (ii) all other revenues, receipts and other payments of
         any kind whatsoever generated by, remitted or received in respect of or
         relating to the Trust Estate or otherwise included in the Trust Estate
         and not pledged or required to be pledged pursuant to the Indenture or
         released from the lien of the Indenture (all to the extent not
         previously distributed) (collectively, the "Payments"), each to the
         extent received by or on behalf of the Delaware Trustee, shall be
         distributed forthwith upon receipt by the Delaware Trustee in the
         following order of priority: FIRST, so much of such Payments as shall
         be required to pay or reimburse the Trust Company and the Delaware
         Trustee for any fees, expenses, indemnities or other amounts not
         otherwise paid or reimbursed to the Trust Company or the Delaware
         Trustee pursuant to the Indenture or otherwise as to which such Person
         is entitled to be paid or reimbursed hereunder shall be retained by the
         Delaware Trustee; SECOND, so much of the remainder of such Payments as
         shall be required to pay or reimburse the Administrator in performing
         its responsibilities hereunder and under the Administration Agreement
         for any Administration Fee, expenses, indemnities or other amounts not
         otherwise paid or reimbursed to the Administrator pursuant to the
         Indenture or otherwise as to which such Person is entitled to be paid
         or reimbursed shall be paid or reimbursed to the Administrator; and
         THIRD, the balance, if any, of such Payment or amount remaining
         thereafter shall be promptly distributed to the Certificateholders, pro
         rata based on their respective Percentage Interests, without deduction,
         set-off or adjustment of any kind; provided, that neither the making of
         such Payments to, nor the receipt of such Payments by, a
         Certificateholder or any other Person shall ever be deemed to
         constitute a Certificateholder or any such Person as an income
         beneficiary hereunder, and provided further, that the Delaware Trustee
         shall not be required to turn over any such Payment as compensation or
         reimbursement of expenses.

                                       17
<PAGE>

         SECTION 4.02. PAYMENTS FROM TRUST ESTATE ONLY. All payments to be made
by the Delaware Trustee under this Trust Agreement or by the Trust (other than
payments made pursuant to Sections 2.05(a)(ix), 2.12 and 2.14 with funds to be
provided by a Certificateholder) shall be made only from the Trust Estate and
the income and proceeds from or related to the Trust Estate and only to the
extent that Delaware Trustee shall have actually received such income or
proceeds from the Trust Estate and such proceeds are not required to be remitted
to the Trustee pursuant to Section 4.01(a) hereof or the Indenture. Each
Certificateholder agrees that it will look solely to the Trust Estate to the
extent available for payment as herein provided and that, except as specifically
provided in Section 6.01 hereof, the Trust Company shall not be liable in its
individual capacity to any Certificateholder for any amounts payable under this
Trust Agreement and shall not be subject to any liability in its individual
capacity under this Trust Agreement. This Section is intended solely to limit
the liability of the Delaware Trustee and shall have no effect on the
obligations of the Certificateholders under this Trust Agreement. This Section
4.02 does not limit the liability of the Delaware Trustee set forth in Section
6.01 hereof.

         SECTION 4.03. METHOD OF PAYMENT. Unless otherwise directed by a
Certificateholder, all amounts payable to the Certficateholder pursuant to this
Trust Agreement shall be paid to it in immediately available funds by transfer
to a banking institution with bank wire transfer facilities for the account of
the Certficateholder, as the Delaware Trustee may be instructed from time to
time in writing by the Certficateholder.

         SECTION 4.04. TRUST PAYMENT DATE STATEMENT.

                  (a) Based on the reports received by the Delaware Trustee
         pursuant to the Indenture, the Delaware Trustee, or the Administrator
         if requested by the Delaware Trustee pursuant to the Administration
         Agreement, shall prepare, or shall cause to be prepared for each
         payment or distribution made to the Delaware Trustee, Administrator, or
         Certficateholders pursuant to Section 4.01(b) a statement substantially
         in the form of Exhibit A attached hereto (the "Trust Payment Date
         Statement"). In connection with any payments or distributions to the
         Delaware Trustee, the Administrator or the Certificateholders pursuant
         to Section 4.01(b), the Delaware Trustee, or the Administrator if
         requested by the Delaware Trustee pursuant to the Administration
         Agreement, shall deliver the Trust Payment Date Statement to each
         Certficateholder or as instructed by the Certificateholder in a written
         Notice to the Delaware Trustee and the Administrator.

                  (b) The Delaware Trustee makes no representations or
         warranties as to the accuracy of the information contained in the
         reports generated by [Nelnet Student Loan Trust-_] pursuant to the
         Indenture or, to the extent that the Trust Payment Date Statement
         contains or relies upon information provided by the reports provided by
         [Nelnet Student Loan Trust-_] pursuant to the Indenture, the Trust
         Payment Date Statement. The Delaware Trustee shall not be bound to make
         any investigation as to the facts stated in the reports provided by
         [Nelnet Student Loan Trust-_] pursuant to the Indenture, and may rely
         upon each the reports provided by [Nelnet Student Loan Trust-_]
         pursuant to the Indenture delivered to it by or on behalf of the
         Trustee.

                                       18
<PAGE>

                                   ARTICLE V

                           DUTIES OF DELAWARE TRUSTEE

SECTION 5.01. NOTICE OF DEFAULT. In the event the Delaware Trustee shall have
actual knowledge of an Event of Default under the Indenture with respect to any
Class, the Delaware Trustee shall give prompt telephonic notice (to the extent
telephone numbers are on file with the Delaware Trustee) followed by, or in the
alternative, written notice by facsimile or overnight courier for receipt within
48 hours of discovery thereof to the Sponsor and the Trustee. Subject to the
terms of Section 5.03 hereof, the Delaware Trustee shall take or refrain from
taking such action as the Delaware Trustee shall be instructed in writing by the
Required Certificateholders. If the Delaware Trustee shall not have received
such instructions within 20 days after giving written notice of such event to
the Certifcateholders, the Delaware Trustee, subject to instructions
subsequently received from the Required Certificateholders pursuant to the
preceding sentence, may, but shall be under no duty to, take or refrain from
taking any action with respect thereto as the Delaware Trustee shall deem
advisable and in the best interests of the Certificateholders. For all purposes
of this Trust Agreement, in the absence of actual knowledge of an officer of the
Delaware Trustee at its address specified in Section 10.05 hereof, the Delaware
Trustee shall not be deemed to have knowledge of any event referred to in the
first sentence of this Section unless it receives written notice thereof from a
Certificateholder or the Trustee.

         SECTION 5.02. ACTION UPON INSTRUCTION.

                  (a) Whenever the Delaware Trustee is (i) unable to decide
         between alternative courses of action permitted or required by the
         terms of this trust Agreement or under any Transaction Document, (ii)
         unsure as to the application of any provision of this Trust Agreement
         or any Transaction Document or any such provision is ambiguous as to
         its application, or is, or appears to be, in conflict with any other
         applicable provision or (iii) in the event that this Trust Agreement
         permits any determination by the Delaware Trustee or is silent or is
         incomplete as to the course of action that the Delaware Trustee is
         required to take with respect to a particular set of facts, the
         Delaware Trustee may give Notice (in such form as shall be appropriate
         under the circumstances) to the Certificateholders and the
         Administrator requesting instruction and, to the extent that the
         Delaware Trustee acts or refrains from acting in good faith in
         accordance with any such instruction received from the Required
         Certificateholders or the Administrator, the Delaware Trustee shall not
         be liable, on account of such action or inaction, to any Person. If the
         Delaware Trustee shall not have received appropriate instruction within
         10 days of such notice (or within such shorter period of time as
         reasonably may be specified in such notice or may be necessary under
         the circumstances) it may, but shall be under no duty to, take or
         refrain from taking such action not inconsistent with this Agreement or
         the Transaction Documents, as it shall deem to be in the best interests
         of the Certificateholders, and shall have not liability to any Person
         for such action or inaction.

                  (b) Notwithstanding anything in this Trust Agreement to the
         contrary, neither the Delaware Trustee nor any of its respective
         agents, shall be required to take or refrain for taking any action
         under this Trust Agreement, the Transaction Documents or any other

                                       19
<PAGE>

         agreement, or exercise any of their respective rights and powers, if
         the Delaware Trustee shall reasonably determine (without any obligation
         to make any such determination), or shall have been advised by counsel,
         that such action or inaction (i) is contrary to the terms of this Trust
         Agreement, the terms of the Transaction Documents or any other
         agreement to which the Delaware Trustee or the Trust is a party, (ii)
         is likely to result in a breach of its duties hereunder or those of the
         Trust Company, (iii) to the actual knowledge of an officer of the
         Delaware Trustee that is responsible for the administration of the
         Trust, would adversely affect the tax status of the Trust, or (iv) is
         otherwise contrary to applicable law.

                  (c) The Delaware Trustee shall not be required to expend or
         risk its own funds or otherwise incur financial liability in the
         performance of any of its respective duties hereunder, or in the
         exercise of any of its respective rights or powers, if there is
         reasonable ground for believing that the repayment of such funds or
         adequate indemnity against such risk or liability is not reasonably
         assured to the Delaware Trustee and none of the provisions contained in
         this Trust Agreement shall in any event require the Delaware Trustee to
         perform, or be responsible for the manner of performance of, any of the
         obligations of any other party under this Trust Agreement.

                  (d) Subject to the terms of Sections 5.01, 5.03 and 5.06
         hereof and the Administration Agreement, the Required
         Certificateholders or the Administrator may by written instruction
         direct the Delaware Trustee in the management of the Trust. Such
         direction may be exercised at any time by written instruction of the
         Required Certificateholders or the Administrator. Prior to taking any
         action on behalf of the Trust under this Trust Agreement or the
         Transaction Documents, the Delaware Trustee may request and, if so
         requested, shall receive written instructions of the Required
         Certificateholders or the Administrator specifying the manner in which
         the Delaware Trustee shall take such action. The Delaware Trustee shall
         not be liable for any action it takes or omits to take in good faith in
         reliance on the instructions of such Required Certificateholders or the
         Administrator.

                  (e) The Certificateholders agree to not provide any direction
         to the Delaware Trustee to take any action that is contrary to the
         terms of this Trust Agreement, the Transaction Documents, any other
         agreements to which the Delaware Trustee or the Trust is a party, or is
         otherwise contrary to applicable law.

         SECTION 5.03. INDEMNIFICATION. The Delaware Trustee shall not be
required to take or refrain from taking any action under this Trust Agreement,
the Transaction Documents or any other agreement (other than the actions
specified in the first sentence of Section 5.01 hereof) if the Delaware Trustee
shall reasonably determine, or shall have been advised by counsel, that such
actions may result in personal liability of the Trust Company or require it to
risk or advance its own funds unless the Trust Company and the Delaware Trustee
shall have been indemnified by Certificateholders, in manner and form reasonably
satisfactory to the Trust Company and the Delaware Trustee, against any
liability, fee, cost or expense (including reasonable legal fees and expenses)
which may be incurred or charged in connection therewith; and if the Required
Certificateholders shall have directed the Delaware Trustee to take or refrain
from taking any such action, the Certificateholders so directing the Delaware
Trustee agree to furnish such indemnity as shall be required and, in addition,
to the extent not otherwise paid pursuant to the provisions of this Trust
Agreement, to pay the reasonable compensation of the Delaware Trustee for the
services performed or to be performed by it pursuant to such direction.

                                       20
<PAGE>

         SECTION 5.04. NO DUTIES EXCEPT AS SPECIFIED IN TRANSACTION DOCUMENTS.
The Delaware Trustee shall have no duty or obligation to manage, control, use,
make any payment in respect of, register, record, sell, dispose of or otherwise
deal with any of the Trust Estate, or otherwise to take or refrain from taking
any action as Delaware Trustee or on behalf of the Trust whatsoever under or in
connection with this Trust Agreement or the Transaction Documents except as (i)
expressly provided by the terms hereof or (ii) to the extent not so provided, as
expressly provided in written instructions received pursuant to Section 5.01 or
5.02 hereof; and no implied duties or obligations shall be read into this Trust
Agreement against the Delaware Trustee. The Delaware Trustee shall not in any
instance have any duty to inspect any of the Trust Estate or any records
pertaining thereto. SECTION 5.05. NO ACTION EXCEPT UNDER SPECIFIED DOCUMENTS OR
INSTRUCTIONS. The Delaware Trustee shall have no authority to manage, control,
use, make any payment in respect of, register, record, sell, dispose of or
otherwise deal with any part of the Trust Estate except (i) as required by the
terms of this Trust Agreement, (ii) in accordance with the powers granted to or
the authority conferred upon the Delaware Trustee pursuant to this Trust
Agreement, or (iii) in accordance with the express terms hereof or written
instructions received pursuant to Section 5.01 or 5.02 hereof.

         SECTION 5.06. ACTION BY SPONSOR WITH RESPECT TO BANKRUPTCY. The
Delaware Trustee shall not follow any direction of the Certificateholders to
commence a voluntary proceeding in bankruptcy relating to the Trust. The vote of
the Delaware Trustee shall be required prior to the commencement by the Trust of
any voluntary proceeding in bankruptcy.

         SECTION 5.07. DISCHARGE OF LIENS. Notwithstanding anything in this
Trust Agreement to the contrary, the Delaware Trustee agrees that it will, at
its own cost and expense (and not at the expense of the Trust), promptly take
all action as may be necessary to discharge any liens on any part of the Trust
Estate which are attributable to actions by or claims against the Delaware
Trustee that are not related to the ownership of the Trust Estate or the
administration of the Trust Estate or the transactions contemplated by this
Trust Agreement.

                                   ARTICLE VI

                                DELAWARE TRUSTEE

SECTION 6.01. ACCEPTANCE OF TRUSTS AND DUTIES. The Trust Company accepts the
trusts hereby created and agrees to perform the same but only upon the terms of
this Trust Agreement. The Delaware Trustee is authorized and directed to execute
and deliver the Transaction Documents to which the Trust is to be party and each
certificate or other document attached as an exhibit to or contemplated by the
Transaction Documents to which the Trust is to be a party and any amendment or
other agreement in such form as the Required Certificateholders shall approve,
as evidenced conclusively by the Delaware Trustee's execution thereof. In
addition to the foregoing, the Delaware Trustee is authorized, but shall not be
obligated, to take all actions required of the Trust pursuant to the Transaction
Documents. Subject to Sections 2.09 and 5.06, the Delaware Trustee is further
authorized from time to time to take such action as the Required
Certificateholders instructs in writing with respect to the Transaction
Documents. The Delaware Trustee declares that it shall hold ownership of the
Trust Estate, and all amounts received by it thereunder and hereunder in trust,
upon the terms herein set forth, for the use and benefit of all present and
future Certificateholders. The Delaware Trustee also agrees to receive and
disburse all money actually received by it constituting part of the Trust Estate
upon the terms hereof. Notwithstanding anything in this Trust Agreement to the
contrary, the Trust Company shall not be liable, answerable or accountable in
its individual capacity to any Person under any circumstances, except that such
limitation shall not limit the liability, if any, of the Trust Company to the

                                       21
<PAGE>

Certificateholders (i) for the Trust Company's own willful misconduct, bad
faith, negligence or reckless disregard of the duties involved in the conduct of
its offices hereunder or the willful misconduct, bad faith, negligence or
reckless disregard of the duties involved in the conduct of its offices
hereunder performed through its agent not appointed with due care, (ii) in the
case of the inaccuracy of any of the Trust Company's representations or
warranties contained in Section 6.03 hereof, (iii) for taxes, fees or other
charges on, based on or measured by any fees, commissions or compensation
received by it for acting as Delaware Trustee in connection with any of the
transactions contemplated by this Trust Agreement or any other agreement
contemplated by this Trust Agreement, or (iv) the failure to use ordinary care
to disburse in accordance with the terms hereof money actually received by it.
In particular, but not by way of limitation:

                  (a) the Trust Company shall not be liable for any error of
         judgment made in good faith by any officer of the Delaware Trustee;

                  (b) under no circumstances shall the Trust Company be
         personally liable hereunder for any indebtedness of the Trust;

                  (c) the Trust Company shall not be personally liable for the
         payment of any tax imposed on the Trust or amounts that are includable
         in the federal gross income of the Certificateholders

                  (d) no provision of this Trust Agreement shall require the
         Trust Company to expend or risk funds or otherwise incur any financial
         liability in the performance of any of the Delaware Trustee's duties or
         powers hereunder, if the Trust Company believes or is advised by its
         legal counsel that repayment of such funds or adequate indemnity
         against such risk or liability is not assured or provided to its
         reasonable satisfaction;

                  (e) under no circumstance shall the Trust Company be liable
         for any representation, warranty, covenant, or obligation or
         indebtedness of the Trust hereunder or under the Transaction Documents
         or any other agreement, document or certificate contemplated by the
         foregoing;

                  (f) the Trust Company shall not be liable with respect to any
         action taken or omitted to be taken by the Administrator and the Trust
         Company shall not be liable for performing or supervising the
         performance of any obligations or duties under this Trust Agreement,
         the Administration Agreement or the Indenture, or under any other
         document contemplated hereby or thereby, which are to be performed by
         the Administrator or any other Person under such documents;

                                       22
<PAGE>

                  (g) the Trust Company shall not be responsible for or in
         respect of the recitals herein, the validity or sufficiency of this
         Trust Agreement, or for the due execution hereof by the Sponsor or the
         Administrator or for the form, character, genuineness, sufficiency,
         value or validity of any of the Trust Estate or for or in respect of
         the validity or sufficiency of the Indenture or any other document
         contemplated thereby to which the Trust Company is not a party, and the
         Trust Company shall in no event assume or incur any liability, duty or
         obligation to the Trustee, the Certificateholders, or the Administrator
         other than is expressly provided for herein;

                  (h) notwithstanding anything contained herein or in any of the
         Transaction Documents to the contrary, neither the Trust Company nor
         the Delaware Trustee shall be required to take any action in any
         jurisdiction other than in the State of Delaware if the taking of such
         action will (i) require the consent or approval or authorization or
         order of or the giving of notice to, or the registration with or taking
         of any action in respect of, any state or other governmental authority
         or agency of any jurisdiction other than the State of Delaware; (ii)
         result in any fee, tax or other governmental charge under the laws of
         any jurisdiction or any political subdivisions thereof in existence on
         the date hereof other than the State of Delaware becoming payable by
         the Trust Company; or (iii) subject the Trust Company to personal
         jurisdiction in any jurisdiction other than the State of Delaware for
         causes of action arising from acts unrelated to the consummation of the
         transactions by the Trust Company or the Delaware Trustee, as the case
         may be, contemplated hereby;

                  (i) no provision of this Trust Agreement shall require the
         Trust Company to monitor or otherwise supervise the actions or
         inactions of or the performance by the Administrator or any
         sub-administrators;

                  (j) the Delaware Trustee shall be deemed to have discharged
         its duties and responsibilities hereunder and under the other
         Transaction Documents to the extent the Administrator or any other
         administrator has agreed in the Administration Agreement or the related
         administration agreement, as applicable, to perform any act or to
         discharge any duty of the Delaware Trustee hereunder or under any other
         Transaction Document, and the Delaware Trustee shall not be held liable
         for the default or failure of the Administrator or any other
         administrator to carry out its obligations under the Administration
         Agreement or related administration agreement, as applicable;

                  (k) the Delaware Trustee shall have no obligation to
         administer, service or collect the Financed Student Loans or to
         maintain, monitor or otherwise supervise the administration, servicing
         or collection of the Financed Student Loans; and

                  (l) notwithstanding anything contained herein to the contrary,
         any funds and assets held by the Delaware Trustee on behalf of the
         Trust hereunder may be maintained and accounted for in the
         record-keeping and asset custody systems utilized by the Trust Company
         on behalf of the Delaware Trustee.

         SECTION 6.02. FURNISHING OF DOCUMENTS. The Delaware Trustee will
furnish to the Certificateholders, promptly upon receipt, duplicates or copies
of all reports, notices, requests, demands, certificates, financial statements
and any other writings furnished to the Delaware Trustee. The Delaware Trustee
shall have no duty or obligation to examine or review such items received by it.

                                       23
<PAGE>

         SECTION 6.03. NO REPRESENTATIONS OR WARRANTIES AS TO TRUST ESTATE.
Neither the Trust Company nor the Delaware Trustee makes (i) any representation
or warranty as to the title, value or merchantability of the Trust Estate or any
other representation or warranty, express or implied, with respect to the Trust
Estate whatsoever, and (ii) any representation or warranty as to the validity or
enforceability of the Transaction Documents or any other agreement contemplated
by any of the foregoing, or as to the correctness of any statement contained in
any thereof, except that the Trust Company represents and warrants to the
Certificateholders and the Administrator that this Trust Agreement and, assuming
that this Trust Agreement has been duly authorized, executed and delivered by
the Sponsor and the Administrator, each of the Transaction Documents and each
other document which contemplates execution thereof by the Delaware Trustee on
behalf of the Trust has been or will be executed and delivered by its officers
who are or will be duly authorized to execute and deliver such document on its
behalf, and that under Delaware law (excluding Delaware securities laws), this
Trust Agreement constitutes the legal, valid and binding obligation of the Trust
Company, enforceable against the Trust Company in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium and
other similar laws affecting the enforcement of creditors' rights generally and
to general principles of equity.

         SECTION 6.04. NO SEGREGATION OF MONEYS; NO INTEREST. Except as
otherwise provided herein or in written instructions from the Required
Certificateholders, moneys received by the Delaware Trustee hereunder need not
be segregated in any manner, except to the extent required by applicable law and
Section 2.09 hereof, and may be deposited under such general conditions as may
be prescribed by law, and neither the Trust Company nor the Delaware Trustee
shall be liable for any interest thereon.

         SECTION 6.05. RELIANCE; ADVICE OF COUNSEL. The Delaware Trustee shall
not incur any liability to anyone in acting in reliance upon any signature,
instrument, notice, resolution, request, consent, order, certificate, report,
opinion, bond, direction or other document or paper believed by it to be genuine
and believed by it to be signed by the proper party or parties. The Delaware
Trustee may accept a copy of a resolution of the board of directors or other
governing body of any party, certified by the secretary or a senior officer
thereof, as conclusive evidence that such resolution has been duly adopted by
such body and that the same is in full force and effect. As to any fact or
matter the manner of ascertainment of which is not specifically prescribed
herein, the Delaware Trustee may for all purposes hereof rely on a certificate
of the relevant person as to such fact or matter, and such certificate shall
constitute full protection to the Delaware Trustee for any action taken,
suffered or omitted by it in good faith in reliance thereon. In the
administration of the trusts created hereby, the Delaware Trustee may execute
any of the trusts or powers hereof and perform any of its powers and duties,
including, if applicable, the holding of title to all or any part of the Trust
Estate, hereunder directly or through agents or attorneys and may consult with
counsel, accountants and other skilled persons to be selected and employed by
it, and the Delaware Trustee shall not be liable for anything done, suffered or
omitted in good faith by it in accordance with the advice or opinion within the
scope of such person's competence of any such counsel, accountants or other
skilled persons selected by it with due care.

                                       24
<PAGE>

         SECTION 6.06. NOT ACTING IN INDIVIDUAL CAPACITY. Except as otherwise
provided in this Article, in accepting the trusts hereby created, the Trust
Company acts solely as Delaware Trustee hereunder and not in its individual
capacity, and all persons having any claim against the Delaware Trustee by
reason of the transactions contemplated hereby and by the Indenture shall look
only to the Trust Estate (or a part thereof, as the case may be) for payment or
satisfaction thereof, but subject to the lien created by Indenture.

         SECTION 6.07. BOOKS AND RECORDS. The Delaware Trustee shall be
responsible for the keeping of all customary and appropriate books and records
relating to the receipt and disbursement of all money which it may receive
hereunder or under any agreement contemplated hereby.

SECTION 6.08. TAX RETURNS. The Delaware Trustee is hereby advised that the
Certificateholders intend that as long as the Trust has a single
Certificateholder, the entity created under this Trust Agreement shall be
treated for purposes of federal income tax, state and local income and franchise
taxes, and any other taxes imposed on, measured by or based upon gross or net
income, as a disregarded entity separate from its owner. However, if there is
more than one Certificateholder, the parties hereto intend that the entity
created under this Trust Agreement shall be treated as a partnership for federal
income tax purposes. The Trust shall, at the expense of the Certificateholders
pro rata based on their respective Percentage Interests, shall cause a firm of
independent public accountants selected by the Administrator to prepare any tax
returns or other forms certified by such accounting firm to be all, to the best
of such accounting firm's knowledge, of the tax returns or forms required to be
filed by the Trust; the Delaware Trustee shall cooperate with such accounting
firm in providing any information in its possession which is necessary or
advisable in the preparation of such tax returns and shall execute such tax
returns presented to it in execution form in a timely manner to enable the
Certificateholders to timely file such tax returns. The Delaware Trustee in its
capacity as Delaware Trustee shall sign all appropriate federal returns
presented to it in execution form; provided, however, that the Trust shall send
a copy of any such return and related information to a Certificateholder at such
times as the Certificateholder may request. In no event shall the Delaware
Trustee be liable for any liabilities, costs or expenses of the Trust, the
Administrator, or the Certificateholders arising out of the application of any
tax law, including federal, state, foreign or local income or excise taxes or
any other tax imposed on or measured by income (or any interest, penalty or
addition with respect thereto or arising from a failure to comply therewith)
except for any such liability, cost or expense attributable to any act or
omission by the Delaware Trustee, as the case may be, in breach of its
obligations under this Trust Agreement. The Delaware Trustee shall keep copies
of all returns delivered to it or filed by it. Any reports, returns, records,
filings or books, other than those customary books and records or any report or
return specifically referenced in this Section 6.08, shall be the sole
responsibility and obligation of the Administrator and the Certificateholders,
and the Delaware Trustee shall have no obligation or responsibility with respect
thereto.

                                       25
<PAGE>

                                  ARTICLE VII

                       ASSUMPTION OF LIABILITY AND PAYMENT
                              FOR DELAWARE TRUSTEE

         SECTION 7.01. COMPENSATION AND EXPENSES. The Delaware Trustee shall
receive from the Trust as compensation (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust)
for its services hereunder such fees as may heretofore and from time to time
hereafter be agreed upon between the Required Certificateholders and the
Delaware Trustee. The Delaware Trustee shall be entitled to be reimbursed from
the Payments for its reasonable expenses hereunder, including, without
limitation, the reasonable compensation, expenses and disbursements of such
agents, representatives, accountants, experts and counsel as the Delaware
Trustee may employ in connection with the exercise and performance of its rights
and duties under this Trust Agreement, the Transaction Documents or any other
agreement contemplated by any of the foregoing, whether or not the transactions
contemplated hereby and thereby are consummated and to be paid as additional
reasonable compensation (which shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust) for any
extraordinary services rendered hereunder. Such compensation and reimbursement
shall be paid first from the Collection Fund created pursuant to the Indenture
to the extent and in the priority set forth in the Indenture and then from the
Payments as set forth in Section 4.01(b) hereof.

         SECTION 7.02. CERTIFICATEHOLDERS TO ASSUME LIABILITY. To the extent not
paid pursuant to Section 4.01(b), the Certificateholders, pro rata based on
their respective Percentage Interests, shall pay or cause to be paid (or
reimburse the Delaware Trustee for) all reasonable fees and expenses of the
Delaware Trustee hereunder, including, without limitation, the reasonable
compensation, expenses and disbursements of such agents, representatives,
accountants, experts and counsel as the Delaware Trustee may employ in
connection with the exercise and performance of its rights and duties under this
Trust Agreement, the Transaction Documents or any other agreement contemplated
by any of the foregoing, whether or not the transactions contemplated hereby and
thereby are consummated. The Certificatholders, jointly and severally, agree to
assume liability for, and hereby indemnify and hold harmless the Trust Company,
its officers, directors and employees and the Delaware Trustee from and against
any and all liabilities, obligations, losses, damages, taxes, claims, actions,
suits, costs, expenses and disbursements (including reasonable legal fees and
expenses) of any kind and nature whatsoever which may be imposed on, incurred by
or asserted at any time against the Trust Company, its officers, directors and
employees or the Delaware Trustee in any way relating to or arising out of the
Trust Estate, any of the properties included therein, the acceptance,
termination or administration of the Trust Estate or the Trust or any action or
inaction of the Delaware Trustee or the Trust hereunder or under the Transaction
Documents or any other agreement contemplated by any of the foregoing or any
certificate of a Certificateholder, except only that the Certificateholders
shall not be required so to assume liability for any of the matters described in
the seventh sentence of Section 6.01 hereof and provided that the
Certificateholders and the Delaware Trustee agree that such assumption of
liability for liabilities, obligations, losses, damages, taxes, claims, actions,
such costs expenses or disbursements of any kind shall be direct and primary and
not that of a guarantor. If any item assumed by the Certificateholders under

                                       26
<PAGE>

this Section 7.02 is also subject to indemnification by another party to any of
the documents specifically referenced herein, the Trust Company or the Delaware
Trustee shall first make demand on such party for indemnification of any such
item but shall not be obligated to exhaust its remedies thereunder. The
indemnities contained in this Section 7.02 shall survive the resignation or
removal of the Delaware Trustee and shall survive the termination of the Trust
and this Trust Agreement. The liabilities and indemnities contained in this
Section 7.02 are for the benefit of the Trust Company, in its individual
capacity and its officers, directors and employees and shall not be construed as
imposing any liabilities on any Certificateholder or any affiliate thereof for
any expense or liability of the Trust to third parties. Neither the
Certificateholders nor the Administrator shall have liabilities for the expenses
and liabilities of the Trust (except as otherwise provided in this Trust
Agreement with respect to the Trust Company, in its individual capacity) and all
such expenses and liabilities shall be payable solely from the Trust Estate.

                                  ARTICLE VIII

                            TERMINATION OF INDENTURE

         SECTION 8.01. TERMINATION IN GENERAL. After the termination of the
Indenture in accordance with its terms and the occurrence of the final
__________ Distribution Date thereunder, this Trust Agreement and the Trust
shall terminate and be of no further force or effect upon the final distribution
by the Delaware Trustee of all monies or other property or proceeds of the Trust
Estate in accordance with the terms of this Trust Agreement. The bankruptcy,
liquidation, dissolution, death or incapacity of any Certificateholder shall not
(a) operate to terminate this Trust Agreement or the Trust, (b) entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for partition or winding up of all or
any part of the Trust or the Trust Estate or (c) otherwise affect the rights,
obligations and liabilities of the parties hereto. Subject to Section 8.02, none
of the Certificateholders shall be entitled to revoke or terminate the Trust.

         SECTION 8.02. TERMINATION AT OPTION OF CERTIFICATEHOLDERS.
Notwithstanding Section 8.01 hereof, the Trust shall dissolve and the remaining
assets of the Trust shall be distributed to the Certificateholders pro rata in
accordance with their respective Percentage Interests and the Trust Statute, and
this Trust Agreement shall be of no further force and effect, upon the election
of all of the Certificateholders by written notice to the Delaware Trustee, if
such notice shall be accompanied by the written agreement (in form and substance
satisfactory to the Delaware Trustee) of all of the Certificateholders assuming
all the obligations of the Trust and the Delaware Trustee and releasing the
Delaware Trustee therefrom; provided, however, that until the termination of the
Indenture in accordance with its terms and the occurrence of the final
__________ Distribution Date thereunder, the Certificateholders may not so
terminate this Trust Agreement or the Trust.

         SECTION 8.03. TERMINATION. Upon the winding up of the Trust and its
termination as provided hereinabove, the Delaware Trustee shall cause such
filings to be made in Delaware as may be required under the Trust Statute and,
at the written direction of the Certificateholders, any other filings required
under applicable law, to reflect such termination.

                                       27
<PAGE>

                                   ARTICLE IX

                SUCCESSOR DELAWARE TRUSTEES, CO-DELAWARE TRUSTEES
                         AND SEPARATE DELAWARE TRUSTEES

         SECTION 9.01. RESIGNATION AND SUCCESSORS. The Delaware Trustee or any
successor may resign at any time without cause by giving at least 60 days' prior
written notice to the Certificateholders. The Required Certificateholders, may
at any time remove the Delaware Trustee without cause by written notice to the
Delaware Trustee, any such resignation or removal to be effective upon the
acceptance of appointment by a successor Delaware Trustee as hereinafter
provided. In the event of the resignation or removal of the Delaware Trustee,
the Required Certificateholders shall appoint a successor by written instrument.
If a successor Delaware Trustee shall not have been appointed within 60 days
after the giving of such notice, the Delaware Trustee or the Required
Certificateholders may apply to any court of competent jurisdiction in the
United States to appoint a successor Delaware Trustee to act until such time, if
any, as a successor shall have been appointed as provided above. Any successor
so appointed by such court shall immediately and without further act be
superseded by any successor by the Required Certificateholders. Any successor,
however appointed, shall execute and deliver to its predecessor Delaware Trustee
an instrument accepting such appointment, and thereupon such successor, without
further act, shall become vested with all the estates, properties, rights,
powers, duties and trusts of the predecessor Delaware Trustee in the trusts
hereunder with like effect as if originally named "Delaware Trustee" herein; but
upon the written request of such successor, and upon payment to the predecessor
Delaware Trustee of all amounts due to it under this Trust Agreement, such
predecessor shall execute and deliver an instrument transferring to such
successor, upon the trusts herein expressed, all the estates, properties,
rights, powers, duties and trusts of such predecessor, and such predecessor
shall duly assign, transfer, deliver and pay over to such successor all moneys
or other property then held by such predecessor upon the trusts herein
expressed. Any right of the Certificateholders against the predecessor Trust
Company Trustee, in its individual capacity, shall not be prejudiced by the
appointment of any successor Delaware Trustee and shall survive the termination
of the trusts created hereby. Any successor, however appointed, shall be a bank
or a trust company incorporated or organized and doing business within the
United States of America that is an Independent Trustee and either (a) having a
combined capital and surplus of at least $50,000,000 and being subject to
supervision or examination by federal banking authorities and (b) having (or
having its obligations hereunder guaranteed by a trust company that has) a
long-term unsecured debt rating of at least BBB- by Standard & Poor's, Baa3 by
Moody's or at least the equivalent rating from another nationally recognized
statistical rating organization, if there is such an institution willing, able
and legally qualified to perform the duties of the "Delaware Trustee" hereunder
upon reasonable or customary terms. Any corporation into which the Delaware
Trustee may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Delaware Trustee shall be a party, or any corporation to which substantially all
the corporate trust business of the Delaware Trustee may be transferred, shall,
subject to the preceding sentence, be the "Delaware Trustee" under this Trust
Agreement without further act. Any successor Delaware Trustee, however
appointed, shall be competent and qualified to (i) serve as a trustee of a

                                       28
<PAGE>

Delaware business trust, (ii) take all action required by the Delaware Trustee
pursuant to the Transaction Documents, this Trust Agreement and any other
agreement contemplated by any of the foregoing, and (iii) until termination of
the Indenture in accordance with its terms, be an Independent Trustee. There
shall be at all times at least one "Delaware Trustee" that meets the
requirements of the laws of the State of Delaware. Notwithstanding anything
herein to the contrary, the resignation or removal of the Delaware Trustee shall
not be effective unless and until the Required Certificateholders appoint a
successor Delaware Trustee meeting the requirements specified above.

         SECTION 9.02. CO-DELAWARE TRUSTEES AND SEPARATE DELAWARE TRUSTEES.
Whenever the Delaware Trustee or the Required Certificateholders shall deem it
necessary or prudent in order either to conform to any law of any jurisdiction
in which all or any part of the Trust Estate shall be situated or to make any
claim or bring any suit with respect to the Trust Estate or the Indenture, or
the Delaware Trustee or the Required Certificateholders shall be advised by
counsel satisfactory to it or them that it is so necessary or prudent, the
Delaware Trustee and the Certificateholders shall execute and deliver an
agreement supplemental hereto and all other instruments and agreements, and
shall take all other action, necessary or proper to constitute one or more
persons (and the Delaware Trustee may appoint one or more of its officers)
either as co-trustee or co-trustees jointly with the Delaware Trustee of all or
any part of the Trust Estate, or as separate trustee or separate trustees of all
or any part of the Trust Estate, and to vest in such persons, in such capacity,
such title to the Trust Estate or any part thereof and such rights or duties as
may be necessary or desirable, all for such period and under such terms and
conditions as are satisfactory to the Delaware Trustee and the Required
Certificateholders and, until the termination of the Indenture in accordance
with its terms as are reasonably satisfactory to the Trustee. In case any
co-trustee or separate trustee shall dissolve, die, become incapable of acting,
resign or be removed, the title to the Trust Estate and all rights and duties of
such co-trustee or separate trustee shall, so far as permitted by law, vest in
and be exercised by the Delaware Trustee, without the appointment of a successor
to such co-trustee or separate trustee.

         SECTION 9.03. CHANGES IN IDENTITY OF A DELAWARE TRUSTEE. Upon the
change of identity of a Delaware Trustee or the addition or deletion of a
Delaware Trustee, whose identity is required to be disclosed under applicable
law, the Delaware Trustee or Delaware Trustees shall cause such filings to be
made in Delaware if required by the Trust Statute, and, at the direction of the
Certificateholders, shall cause such filings to be made, if any, as may be
required in accordance with the provisions of other applicable law, indicating
the change with respect to such Delaware Trustee's identity or such addition or
deletion of a Delaware Trustee.

                                   ARTICLE X

                                  MISCELLANEOUS

         SECTION 10.01. AMENDMENT.

                  (a) Subject to Section 2.09(b)(ix) hereof, this Trust
         Agreement may be amended by a written instrument signed by the Delaware
         Trustee and the Certificateholders to (i) cure any ambiguity or correct
         any provision of the Trust Agreement or (ii) with the consent of each
         Certificateholder the interests of which in its Certificates or the
         Trust would be adversely affected in any material respect thereby,
         supplement, add, eliminate, or change in any manner one or more
         provisions of this Trust Agreement or modify in any manner the rights
         of the Certificateholders; provided, however, that such action, as

                                       29
<PAGE>

         evidenced by an Opinion of Counsel, shall not adversely affect in any
         material respect the interests of the Trustee, or the Registered Owners
         taken as a whole, except that no such Opinion of Counsel will be
         required if each rating agency then rating any of the Notes provides
         prior written confirmation that the proposed amendment will not result
         in the withdrawal, downgrade or qualifications of the then current
         ratings of the such obligations; provided further, if in the opinion of
         the Delaware Trustee any amendment adversely affects any right, duty or
         liability of, or immunity or indemnity in favor of, it or the Trust
         Company under this Trust Agreement, the Transaction Documents or any of
         the documents contemplated hereby or thereby to which it or the Trust
         is a party, or would cause or result in any conflict with or breach of
         or default under any terms, conditions or provisions of its charter
         documents or bylaws or any document contemplated hereby or thereby to
         which it is a party, the Delaware Trustee may in its sole discretion
         decline to enter into such amendment.

                  (b) Promptly after the execution of any such amendment or
         consent, the Trust shall furnish written notification of the substance
         of such amendment or consent to each rating agency then rating any of
         the Notes and the Certificateholders.

                  (c) It shall not be necessary for the consent of the
         Certificateholders pursuant to this Section 10.01 to approve the
         particular form of any proposed amendment or consent, but it shall be
         sufficient if such consent shall approve the substance thereof. The
         manner of obtaining such consents (and any other consents of the
         Certificateholders provided for in this Trust Agreement) and of
         evidencing the authorization of the execution thereof by the
         Certificateholders shall be subject to such reasonable requirements as
         the Delaware Trustee may prescribe.

                  (d) Nothing contained in this Section 10.01 shall be construed
         as a delegation by a the Certificateholder to the Delaware Trustee of
         the right of the Certificateholder to consent to any amendment, waiver,
         modification or supplement to the provisions of this Trust Agreement.

         SECTION 10.02. NO TITLE TO TRUST ESTATE, ETC. Notwithstanding anything
herein to the contrary, and pursuant to Section 3805 of the Trust Statute, a
Certificateholder shall have only an undivided beneficial interest in the Trust
Estate. Each Certificateholder's indirect interest in the Trust Estate shall be
limited and governed in all respects by the provisions of this Trust Agreement.
The Certificateholders shall not have title to or any other interest in any part
of the Trust Estate. The Certificateholders shall be entitled to receive
distributions with respect to its individual beneficial ownership interest
herein only in accordance with this Trust Agreement. No transfer, by operation
of law or otherwise, of any right, title or interest of a Certificateholder in
and to the Trust Estate or hereunder shall operate to terminate this Trust
Agreement, the Trust or the trusts hereunder or entitle any successor or
transferee to an accounting or to the transfer to it of legal title to any part
of the Trust Estate. Any obligation of the Delaware Trustee hereunder or of the
Trust under the Indenture or any other document contemplated hereby or thereby

                                       30
<PAGE>

may be performed, under extraordinary circumstances, by one or more of the
Certificateholders and any such performance shall not be construed as a
revocation of the trusts created hereby. The Certificateholders shall not have
any liability for the performance of this Trust Agreement except as expressly
set forth herein.

         SECTION 10.03. SALE OF THE TRUST ESTATE BY DELAWARE TRUSTEE IS BINDING.
Any sale or other conveyance of the Trust Estate or any part thereof by the
Delaware Trustee made pursuant to the terms of this Trust Agreement or the
Indenture shall bind the Certificateholders and shall be effective to transfer
or convey all right, title and interest of the Trust, the Delaware Trustee and
the Certificateholders in and to the Trust Estate or such part thereof. No
purchaser or other grantee shall be required to inquire as to the authorization,
necessity, expediency or regularity of such sale or conveyance or as to the
application of any sale or other proceeds with respect thereto by the Delaware
Trustee.

         SECTION 10.04. LIMITATIONS ON RIGHTS OF OTHERS. Except as provided in
Section 10.10, nothing in this Trust Agreement, whether express or implied,
shall be construed to give to any person other than the Trust Company, the
Delaware Trustee, the Certificateholders and the Trustee any legal or equitable
right, remedy or claim under the Trust or in respect of this Trust Agreement,
any covenants, conditions or provisions contained herein.

         SECTION 10.05. NOTICES, ETC. All notices, requests, demands, consents
and other communications ("Notices") required or contemplated by the provisions
hereof shall refer on their face to this Trust Agreement (although failure to do
so shall not make such Notice ineffective), shall, unless otherwise stated
herein, be in writing and sent by telecopy, telex, telegram, cable, mail (by
certified or registered mail, return receipt requested) or by reputable
overnight courier to the following addresses:

         if to the Delaware Trustee:        [-------------------------]
                                            [-------------------------]
                                            [-------------------------]
                                            [-------------------------]
                                            [-------------------------]
                                            [-------------------------]
                                            Phone: [_________________________]
                                            FAX: [_________________________]

         if to the Sponsor:                 [-------------------------]
                                            [-------------------------]
                                            [-------------------------]
                                            Phone: [_________________________]
                                            FAX: [_________________________]

                  With a copy to:           [-------------------------]
                                            [-------------------------]
                                            Phone: [_________________________]
                                            FAX: [_________________________]

         if to the Trustee: To such Person and at such address as may be
         specified in the Indenture.

                                       31
<PAGE>

or at such other address as shall be designated in written notice to the
Delaware Trustee by the Persons entitled to receive notices pursuant to this
Trust Agreement. All such notices shall be effective when received.

         SECTION 10.06. SEVERABILITY. Any provision of this Trust Agreement
which 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 10.07. SEPARATE COUNTERPARTS. This Trust 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 10.08. SUCCESSORS AND ASSIGNS. All covenants and agreements
contained herein shall be binding upon and inure to the benefit of the Delaware
Trustee, the Certificateholders, the Administrator and the Trustee and their
respective successors and assigns, all as herein provided. Any request, notice,
direction, consent, waiver or other writing or action by a Certificateholder
shall bind its successors and assigns.

         SECTION 10.09. GOVERNING LAW. This Trust Agreement shall be governed
by, and construed in accordance with, the substantive laws of the State of
Delaware (without regard to conflict of law provisions) applicable to contracts
to be performed entirely within such state, including all matters of
construction, validity and performance.

         SECTION 10.10. NO LIABILITY OF CERTIFICATEHOLDERS. Except as provided
in Sections 5.03, 6.07, 6.08 and Article VII, or in any other document,
agreement or instrument executed by the Certificateholders, neither the
Certificateholders nor the Administrator shall be liable for any losses, claims,
damages, liabilities and expenses of the Trust (including expenses, to the
extent not paid out of the Trust Estate).

         SECTION 10.11. ACTIONS BY THE CERTIFICATEHOLDERS. Any actions required
to be taken by the Certificateholders shall, unless otherwise specified herein,
be taken with the consent of the Certificateholders then holding a majority of
the Percentage Interests.

                           [SIGNATURE PAGE TO FOLLOW]

                                       32
<PAGE>

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

                 NELNET STUDENT LOAN FUNDING, LLC, as Sponsor

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

                 [___________________],  not in its individual  capacity but
                 solely in its capacity as Delaware Trustee

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

                                       33
<PAGE>

                                    EXHIBIT A

                    CERTIFICATEHOLDERS' CAPITAL CONTRIBUTIONS
<TABLE>
<CAPTION>

                                                  Aggregate Principal Amount of
                        Sponsor                      Underlying Certificates         Percentage Interest

<S>                                                      <C>                                 <C>
Nelnet Student Loan Funding, LLC                         $[____________]                     100%
(Aggregate principal amount of Trust Estate)
     TOTAL                                               $[____________]                     100%
</TABLE>

                                      A-1
<PAGE>

                                    EXHIBIT B

                      FORM OF TRUST PAYMENT DATE STATEMENT

                    For the Payment Date dated _____ __, ____

[Nelnet Student Loan Trust - _______________]

<TABLE>
<CAPTION>

<C>                                                                                              <C>
(1)  Amount received from the Trustee under the Indenture on the Payment Date:                   $
                                                                                                  ------------

(2)  Amount, if any, deducted pursuant to Section 4.01 of the Trust Agreement:                   $
                                                                                                  ------------

      (a)  Trust Company and Delaware Trustee
           fees and expenses:                                                   $
                                                                                 ------------
      (b)  Administrator fees and expenses:                                     $
                                                                                 ------------
                                                                                Total            $
                                                                                                  ------------

(3)  Total amount to be remitted to Sponsor
      (Item (1) minus Item (2)):                                                                 $
                                                                                                  ------------

</TABLE>

                                      B-1
<PAGE>

                                    EXHIBIT C

                               FORM OF CERTIFICATE

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND
LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF THE TRUST AGREEMENT REFERRED TO HEREIN.

         THE TRUST CERTIFICATE DOES NOT REPRESENT DEPOSITS OR OBLIGATIONS OF OR
ANY INTEREST IN THE ADMINISTRATOR OR [___________________].

         Certificate No. __________

         CUSIP No. __________

         Percentage Interest evidenced by this Certificate:%

         Initial Certificate Balance:  $_____________

                                   CERTIFICATE
                   Issued by [Nelnet Student Loan Trust - ___]

         This Certificate (the "Certificate") is not guaranteed or insured by
any governmental agency or instrumentality and does not represent deposits or
obligations of or any interest in the Administrator or [___________________].

This Certificate certifies that _______________ is the registered owner (the
"Certificateholder") of the Percentage Interest evidenced by this Certificate
specified above in the [Nelnet Student Loan Trust - ___] (the "Trust"). The
Trust was created pursuant to a Trust Agreement dated as of __________ (the
"Trust Agreement") by and between Nelnet Student Loan Funding, LLC, as Initial
Certificateholder and Sponsor, and [_________________________], as Delaware
Trustee (the "Delaware Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Trust Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Trust Agreement, to which Trust Agreement the
Certificateholder by virtue of the acceptance hereof assents and by which such
Certificateholder is bound.

                                       C-1
<PAGE>

         In addition to other restrictions on transfer set forth in the Trust
Agreement, no transfer of this Certificate shall be made to a Person or entity
unless such transfer is made pursuant to an effective registration statement
under the Securities Act and any applicable state securities laws or is exempt
from the registration requirements under the Securities Act and such laws.

         In the event that a transfer is to be made in reliance upon an
exemption from the Securities Act and state securities laws, in order to assure
compliance with the Securities Act and such laws, the Certificateholder desiring
to effect such transfer and such Certificateholder's prospective transferee
shall each certify to the Trust, Delaware Trustee, the Administrator and the
Certificateholder in writing the facts surrounding the transfer in substantially
the forms required by the Trust Agreement. Except in the case of a transfer as
to which the proposed transferee has provided a Rule 144A Letter with respect to
a Rule 144A transaction, there shall also be delivered to the Trust an Opinion
of Counsel to the effect that such transfer may be made pursuant to an exemption
from the Securities Act, which Opinion of Counsel shall not be an expense of the
Trust, the Delaware Trustee (unless it is the transferee from whom such opinion
is to be obtained) or of the Administrator. The Certificateholder desiring to
effect such a transfer shall, and does hereby agree to, indemnify the Trust, the
Delaware Trustee and the Administrator against any liability that may result if
the transfer is not so exempt or is not made in accordance with federal and
state securities laws.

         No transfer, sale, pledge or other disposition of this Certificate
shall be made unless prior to such transfer, sale, pledge or other disposition,
the Trust shall have received either (i) a representation letter from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Delaware Trustee, to the effect that such a transferee (A)
is not an employee benefit plan subject to Section 406 of ERISA or Section 4975
of the Code, or a person acting on behalf of any such plan, or (B) is an
insurance company which is purchasing such Certificates with funds contained in
an "insurance company general account" (as such term is defined in Section V(e)
of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and that the
purchase and holding of such Certificates are covered under PTCE 95-60, or (ii)
in the case of any Certificate presented for registration in the name of an
employee benefit plan subject to ERISA or Section 4975 of the Code (or
comparable provisions of any subsequent enactments), or a trustee of any such
plan or any other person acting on behalf of any such plan, an Opinion of
Counsel satisfactory to the Trust, the Delaware Trustee and the Administrator to
the effect that the purchase or holding of such Certificate will not result in
the Trust or the Trust Estate being deemed to be "plan assets" and subject to
the prohibited transaction provisions of ERISA and the Code and will not subject
the Trust, Delaware Trustee, the Administrator or the transferring
Certificateholder to any obligation in addition to those undertaken in the Trust
Agreement. Notwithstanding anything else to the contrary herein, in the event
any purported transfer of a Certificate is made without delivery of the
representation letter referred to above, such representation shall be deemed to
have been made by the transferee by its acceptance of such Certificate. In
addition, any purported transfer of a Certificate to or on behalf of an employee
benefit plan subject to ERISA or to the Code without the delivery to the Trust,
the Delaware Trustee and the Administrator of an Opinion of Counsel as described
above shall be void and of no effect.

                                       C-2
<PAGE>

         This Certificate is one of a duly authorized issue of Certificates
representing a beneficial undivided ownership interest in the Trust created by
the Trust Agreement. This Certificate shall not be entitled to any benefit under
the Trust Agreement or be valid for any purpose unless manually countersigned by
an Authorized Officer of the Delaware Trustee.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the Trust Estate for payment hereunder and that
neither the Delaware Trustee nor the Administrator is liable to the
Certificateholders for any amount distributable under this Certificate or the
Trust Agreement, except as expressly provided in the Trust Agreement.

         This Certificate does not purport to summarize the Trust Agreement and
reference is made to the Trust Agreement for the interests, rights and
limitations of rights, benefits, obligations and duties evidenced thereby, and
the rights, duties and immunities of the Delaware Trustee and the Administrator.

         Pursuant to the terms of the Trust Agreement, a distribution on all
Certificates issued by the Trust will be made as provided in the Trust Agreement
to the Person in whose name such Certificates are then registered. Such
distribution will be made pro rata to the holders based on their respective
Percentage Interests.

         Distributions on this Certificate shall be made by wire transfer to the
Certificateholder entitled thereto as its name appears on the Register. The
final distribution on the Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the office or agency of the
Trust specified in the notice to Certificateholders of such final distribution.

         As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Register upon surrender of this Certificate for registration of transfer at the
office maintained by the Trust accompanied by a written instrument of transfer
in form satisfactory to the Trust duly executed by the Certificateholder hereof
or such Certificateholder's attorney duly authorized in writing, and thereupon
one or more new Certificates in authorized denominations and evidencing the same
aggregate ownership in the Certificates are issuable only as registered
Certificates without coupons in denominations specified in the Trust Agreement.
As provided in the Trust Agreement and subject to certain limitations therein
set forth, Certificates are exchangeable for new Certificates in authorized
denominations and evidencing the same aggregate Percentage Interest, as
requested by the Certificateholder surrendering the same.

         The Trust shall keep or cause to be kept, at the office or agency
maintained pursuant to the Trust Agreement, a Register in which, subject to such
reasonable regulations as it may prescribe, the Registrar shall provide for the
registration of Certificates and of transfers and exchanges of Certificates as
herein provided.

         Prior to due presentation of a Certificate for registration of
transfer, the Trust, Delaware Trustee, the Administrator and the Registrar may
treat the Person in whose name any Certificate is registered in the Register as
the owner of such Certificate for the purpose of receiving distributions
pursuant to the Trust Agreement and for all other purposes whatsoever, and none
of the Trust, Delaware Trustee, the Administrator and the Registrar shall be
bound by any notice to the contrary.

                                       C-3
<PAGE>

         IN WITNESS WHEREOF, the Trust has caused this Certificate to be duly
executed.

         Dated: __________, _____

                     [Nelnet Student Loan Trust - ___ ]

                     By:  [______________________], not in its individual
                     capacity but solely in its capacity as Delaware Trustee of
                     the [Nelnet Student Loan Trust - ___]:

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

This is one of the Certificates referenced in the within-mentioned Trust
Agreement:

         By Authorized Signatory of [________________________], not in its
         individual capacity but solely in its capacity as Delaware Trustee of
         the [Nelnet Student Loan Trust - ___]

                                      C-4
<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto (Please print or typewrite name and address including postal
zip code of assignee)

         the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Register of the Trust.

         I (We) further direct the Delaware Trustee to issue a new Certificate
of a like denomination, to the above named assignee and deliver such Certificate
to the following address:

         Dated: __________

                                        Signature by or on behalf of assignor

                            DISTRIBUTION INSTRUCTIONS
         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to for the account of account number __________.
Applicable statements should be mailed to

This information is provided by ____________________, the assignee named above,
or ____________________, as its agent.

                                      C-5
<PAGE>

                                    EXHIBIT D

                            FORM OF TRANSFEROR LETTER

                                     [DATE]

[Name and Address of Addressees]

         Re: [Nelnet Student Loan Trust - ___] formed pursuant to the Trust
         Agreement dated as of ________ by and between Nelnet Student Loan
         Funding, LLC, as Initial Certificateholder and Sponsor, and
         [___________________], as Delaware Trustee (the "Trust Agreement")

         Transferor Certificates Number[s]:  ___
         Transferee Certificates Number[s]:  ___

Ladies and Gentlemen:

         In connection with our disposition of Certificates issued by the
above-referenced Trust, we certify that (a) we understand that such Certificates
have not been registered under the Securities Act of 1933, as amended (the
"Act"), and are being disposed by us in a transaction that is exempt from the
registration requirements of the Act, (b) the disposition of the Certificates is
subject to restrictions and requirements set forth in the Trust Agreement, and
(c) we have not transferred, pledged, offered, sold or otherwise disposed of any
Certificate or any interest in any Certificate to, or solicited offers to buy or
accept a transfer, pledge or other disposition of any Certificate or any
interest in any Certificate from, any person, or otherwise approved or
negotiated with any person with respect thereto, in a manner that would be
deemed, or taken any other action which would result in, a violation of Section
5 of the Act.

                              Very truly yours,

                              [NAME OF TRANSFEROR]

                              By
                                 -----------------------------------------------
                                      Authorized Officer

                                      D-1
<PAGE>

                                    EXHIBIT E

                            FORM OF INVESTMENT LETTER

                                     [DATE]

[Name and Address of Addressees]

         Re: [Nelnet Student Loan Trust - ___] formed pursuant to the Trust
         Agreement dated as of ________ by and between Nelnet Student Loan
         Funding, LLC, as Initial Certificateholder and Sponsor, and
         [_____________________], as Delaware Trustee (the "Trust Agreement")

         Transferor Certificates Number[s]:  ___
         Transferee Certificates Number[s]:  ___

Ladies and Gentlemen:

         In connection with our acquisition of Certificates issued by the
above-referenced Trust, we certify that (a) we understand that the Certificates
are not being, and have not been, registered under the Securities Act of 1933,
as amended (the "Act"), or any state securities laws and are being, and are
required to be , transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates and based
upon our present and projected net income and net worth, we believe that we can
bear the economic risk of an immediate or future loss of its entire investment
in the Certificates, (c) we have had the opportunity to ask questions of and
have receive answers from the Trust, the Delaware Trustee, the Administrator and
the transferring Certificateholder concerning the Trust and the purchase of the
Certificates and all matters relating thereto or any additional information
deemed necessary to our decision to purchase the Certificates, (d) we are
acquiring the Certificates for investment for our own account and not with a
view to any distribution of such Certificates (but without prejudice to our
right at all times to sell or otherwise dispose of the Certificates in
accordance with clause (h) below), (e) we have not transferred, pledged,
offered, sold or otherwise disposed of any Certificate or any interest in any
Certificate to, or solicited offers to buy or accept a transfer, pledge or other
disposition of any Certificate or any interest in any Certificate from, any
person, or otherwise approached or negotiated with any person with respect
thereto, in a manner that would be deemed, or taken any other action which would
result in, a violation of Section 5 of the Act, nor have we authorized or will
authorize any person to act in such manner with respect to any Certificate or
any interest in any Certificate (f) we are not prohibited from purchasing the
Certificates pursuant to the Trust Agreement, (g) we have reviewed and are
familiar with the form of the Certificates, including, without limitation, the

                                       E-1
<PAGE>

legends thereon, and (h) we will not sell, transfer or otherwise dispose of any
Certificates unless (i) such sale, transfer or other disposition is made
pursuant to an effective registration statement under the Act or is exempt from
such registration requirements, (ii) we have provided at our expense such
opinions of counsel (A) requested by the Delaware Trustee as are satisfactory to
the Delaware Trustee or (B) as are required by the Trust Agreement, (ii) the
purchaser or transferee of such Certificate has executed and delivered to you a
Letter to substantially the same effect as this Letter, and (iii) the purchaser
or transferee has otherwise complied with any conditions for transfer set forth
in the Trust Agreement.

         Capitalized terms used in this Letter, and not defined herein shall
have the meanings set forth in the Trust Agreement.

                                Very truly yours,

                                [NAME OF TRANSFEREE]

                                By
                                   ---------------------------------------------
                                        Authorized Officer

                                       E-2
<PAGE>

                                    EXHIBIT F

                            FORM OF RULE 144A LETTER

                                     [DATE]

[Name and Address of Addressees]

         Re: [Nelnet Student Loan Trust - ___] formed pursuant to the Trust
         Agreement dated as of ________ by and between Nelnet Student Loan
         Funding, LLC, as Initial Certificateholder and Sponsor, and
         [___________________], as Delaware Trustee (the "Trust Agreement")

         Transferor Certificates Number[s]:  ___
         Transferee Certificates Number[s]:  ___

Ladies and Gentlemen:

                  In connection with our disposition of Certificates issued by
the above referenced Trust, we certify that (a) we understand that the
Certificates are not being registered under the Securities Act of 1933, as
amended (the "Act"), or any state securities laws and are being transferred to
us in a transaction that is exempt from the registration requirements of the Act
and any such laws, (b) we have had the opportunity to ask questions of and
receive answers from the Delaware Trustee, the Administrator and the
transferring Certificateholder concerning the purchase of the Certificates and
all matters relating thereto or any additional information deemed necessary to
our decision to purchase the Certificates, (c) we are not prohited from
acquiring the Certificates pursuant to the Trust Agreement, (d) we have not, nor
has anyone acting on our behalf offered, transferred, pledged, sold or otherwise
disposed of the Certificates or any interest in the Certificates to, or
solicited any offer to buy or accept a transfer, pledge or other disposition of
the Certificates or any interest in the Certificates from, or otherwise
approached or negotiated with respect to the Certificates, any interest in the
Certificates or any other similar security with, any person in any manner, or
made any general solicitation by means of general advertising or in any other
manner, or taken any other action, that would constitute a distribution of the
Certificates under the Securities Act or that would render the disposition of
the Certificates a violation of Section 5 of the Securities Act or require
registration pursuant thereto, nor will act, nor has authorized or will
authorize any person to act, in such manner with respect to the Certificates,
(e) we are a "qualified institutional buyer" as that term is defined in Rule
144A under the Securities Act and have completed either of the forms of

                                       F-1
<PAGE>

certification to that effect attached hereto as Annex 1 or Annex 2. We are aware
that the sale to us is being made in reliance on Rule 144A. We are acquiring the
Certificates for our own account or for resale pursuant to Rule 144A and
further, understand that such Certificates may be resold, pledged or transferred
only (i) to a person reasonably believed to be a qualified institutional buyer
that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that the resale, pledge or transfer
is being made in reliance on Rule 144A, or (ii) pursuant to a registration, or
another exemption from registration, under the Securities Act and in compliance
with the requirements and restrictions set forth in the Trust Agreement.

                                 Very truly yours,

                                 [NAME OF TRANSFEREE]

                                 By:
                                    --------------------------------------------
                                      Authorized Officer

                                       F-2
<PAGE>

                              ANNEX 1 TO EXHIBIT F

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

                  The undersigned (the "Buyer") hereby certifies as follows to
the parties listed in the Rule 144A Transferee Letter to which this
certification relates with respect to the Certificates described therein:

                  i. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

                  ii. In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned
and/or invested on a discretionary basis $______1 in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A and (ii)
the Buyer satisfies the criteria in the category marked below.

                           Corporation, etc. The Buyer is a corporation (other
                  than a bank, savings and loan association or similar
                  institution), Massachusetts or similar business trust,
                  partnership, or charitable organization described in Section
                  501(c)(3) of the Internal Revenue Code of 1986, as amended.

                           Bank. The Buyer (a) is a national bank or banking
                  institution organized under the laws of any State, territory
                  or the District of Columbia, the business of which is
                  substantially confined to banking and is supervised by the
                  State or territorial banking commission or similar official or
                  is a foreign bank or equivalent institution, and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, a copy of which is
                  attached hereto.

                           Savings and Loan. The Buyer (a) is a savings and loan
                  association, building and loan association, cooperative bank,
                  homestead association or similar institution, which is
                  supervised and examined by a State or Federal authority having
                  supervision over any such institutions or is a foreign savings
                  and loan association or equivalent institution and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, a copy of which is
                  attached hereto.

                                       F-1-3
<PAGE>

                           Broker-dealer.  The  Buyer  is a  dealer  registered
                  pursuant  to  Section  15  of  the Securities Exchange Act of
                  1934.

                           Insurance Company. The Buyer is an insurance company
                  whose primary and predominant business activity is the writing
                  of insurance or the reinsuring of risks underwritten by
                  insurance companies and which is subject to supervision by the
                  insurance commissioner or a similar official or agency of a
                  State, territory or the District of Columbia.

                           State or Local Plan. The Buyer is a plan established
                  and maintained by a State, its political subdivisions, or any
                  agency or instrumentality of the State or its political
                  subdivisions, for the benefit of its employees.

                           ERISA Plan. The Buyer is an employee benefit plan
                  within the meaning of Title I of the Employee Retirement
                  Income Security Act of 1974.

                           Investment Advisor. The Buyer is an investment
                  advisor registered under the Investment Advisors Act of 1940.

                           Small Business Investment Company. Buyer is a small
                  business investment company licensed by the U. S. Small
                  Business Administration under Section 301(c) or (d) of the
                  Small Business Investment Act of 1958.

                           Business Development Company. Buyer is a business
                  development company as defined in Section 202(a)(22) of the
                  Investment Advisors Act of 1940.

                  iii. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) securities issued or guaranteed by the U. S. or any
instrumentality thereof, (iv) bank deposit notes and certificates of deposit,
(v) loan participations, (vi) repurchase agreements, (vii) securities owned but
subject to a repurchase agreement and (viii) currency, interest rate and
commodity swaps.

                  iv. For purposes of determining the aggregate amount of
securities owned and/or invested on a discretionary basis by the Buyer, the
Buyer used the cost of such securities to the Buyer and did not include any of
the securities referred to in the preceding paragraph, except (i) where the
Buyer reports its securities holdings in its financial statements on the basis
of their market value, and (ii) no current information with respect to the cost
of those securities has been published. If clause (ii) in the preceding sentence
applies, the securities may be valued at market. Further, in determining such
aggregate amount, the Buyer may have included securities owned by subsidiaries
of the Buyer, but only if such subsidiaries are consolidated with the Buyer in
its financial statements prepared in accordance with generally accepted
accounting principles and if the investments of such subsidiaries are managed
under the Buyer's direction. However, such securities were not included if the
Buyer is a majority-owned, consolidated subsidiary of another enterprise and the
Buyer is not itself a reporting company under the Securities Exchange Act of
1934, as amended.

                                       F-1-4
<PAGE>

                  v. The Buyer acknowledges that it is familiar with Rule 144A
and understands that the seller to it and other parties related to the
Certificates are relying and will continue to rely on the statements made herein
because one or more sales to the Buyer may be in reliance on Rule 144A.

                  vi. Until the date of purchase of the Rule 144A Securities,
the Buyer will notify each of the parties to which this certification is made of
any changes in the information and conclusions herein. Until such notice is
given, the Buyer's purchase of the Certificates will constitute a reaffirmation
of this certification as of the date of such purchase. In addition, if the Buyer
is a bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                       Print Name of Buyer

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

                                            Date:

                                     F-1-5
<PAGE>

                              ANNEX 2 TO EXHIBIT F
            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [For Transferees That are Registered Investment Companies]

                  The undersigned (the "Buyer") hereby certifies as follows to
the parties listed in the Rule 144A Transferee Letter to which this
certification relates with respect to the Certificates described therein:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because Buyer is part of a
Family of Investment Companies (as defined below), is such an officer of the
Adviser.

                  2. In connection with purchases by Buyer, the Buyer is a
"qualified institutional buyer" as defined in SEC Rule 144A because (i) the
Buyer is an investment company registered under the Investment Company Act of
1940, as amended and (ii) as marked below, the Buyer alone, or the Buyer's
Family of Investment Companies, owned at least $100,000,000 in securities (other
than the excluded securities referred to below) as of the end of the Buyer's
most recent fiscal year. For purposes of determining the amount of securities
owned by the Buyer or the Buyer's Family of Investment Companies, the cost of
such securities was used, except (i) where the Buyer or the Buyer's Family of
Investment Companies reports its securities holdings in its financial statements
on the basis of their market value, and (ii) no current information with respect
to the cost of those securities has been published. If clause (ii) in the
preceding sentence applies, the securities may be valued at market.

                           The Buyer owned $_______ in securities (other than
                  the excluded securities referred to below) as of the end of
                  the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

                           The Buyer is part of a Family of Investment Companies
                  which owned in the aggregate $_______ in securities (other
                  than the excluded securities referred to below) as of the end
                  of the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

                  3. The term "Family of Investment Companies" as used herein
means two or more registered investment companies (or series thereof) that have
the same investment adviser or investment advisers that are affiliated (by
virtue of being majority owned subsidiaries of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

                  4. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) securities issued or guaranteed by
the U.S. or any instrumentality thereof, (iii) bank deposit notes and
certificates of deposit, (iv) loan participations, (v) repurchase agreements,
(vi) securities owned but subject to a repurchase agreement and (vii) currency,
interest rate and commodity swaps.

                                     F-2-1
<PAGE>

                  5. The Buyer is familiar with Rule 144A and understands that
the parties listed in the Rule 144A Transferee Letter to which this
certification relates are relying and will continue to rely on the statements
made herein because one or more sales to the Buyer will be in reliance on Rule
144A. In addition, the Buyer will only purchase for the Buyer's own account.

                  6. Until the date of purchase of the Certificates, the
undersigned will notify the parties listed in the Rule 144A Transferee Letter
which this certification relates of any changes in the information and
conclusions herein. Until such notice is given, the Buyer's purchase of the
Certificates will constitute a reaffirmation of this certification by the
undersigned as of the date of such purchase.

                                       Print Name of Buyer or Adviser

                                       By:
                                           -
                                            Name:
                                            Title:

                                       IF AN ADVISER:

                                       Print Name of Buyer

Date:__________

1 Buyer must own and/or invest on a discretionary basis at least $100,000,000 in
securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
invest on a discretionary basis at least $10,000,000 in securities.

                                     F-2-2

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