Document:

Exhibit 4.11

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                               INDENTURE OF TRUST

                                  by and among

                       NELNET EDUCATION LOAN FUNDING, INC.

                                       and

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
                              as Indenture Trustee

                                       and

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
                           as Eligible Lender Trustee

                           Dated as of January 1, 2004

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<PAGE>

                                                                    Exhibit 4.11

                                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.)

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                    <C>                                                                                      <C>

                                                     ARTICLE I

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

                                                    ARTICLE II
                                              THE SERIES 2004-1 NOTES

Section 2.01.         Series 2004-1 Note Details................................................................24
Section 2.02.         Execution of Series 2004-1 Notes..........................................................27
Section 2.03.         Registration, Transfer and Exchange of Series 2004-1 Notes; Persons Treated as
                      Registered Owners.........................................................................27
Section 2.04.         Lost, Stolen, Destroyed and Mutilated Series 2004-1 Notes.................................31
Section 2.05.         Forms of Series 2004-1 Notes..............................................................31
Section 2.06.         Indenture Trustee's Authentication Certificate............................................31
Section 2.07.         Cancellation and Destruction of Series 2004-1 Notes by the Indenture Trustee..............32
Section 2.08.         Temporary Series 2004-1 Notes.............................................................32
Section 2.09.         Redemption of and Principal Reduction Payments on the Series 2004-1 Notes.................32
Section 2.10.         Delivery of Series 2004-1 Notes...........................................................36
Section 2.11.         Deposit of Series 2004-1 Note Proceeds....................................................37

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

Section 3.01.         Parity and Priority of Lien...............................................................37
Section 3.02.         Other Obligations.........................................................................37
Section 3.03.         Derivative Products; Counterparty Payments; Issuer Derivative Payments....................38

                                                    ARTICLE IV
                             PROVISIONS APPLICABLE TO THE NOTES; DUTIES OF THE ISSUER

Section 4.01.         Payment of Principal, Interest and Premium................................................39
Section 4.02.         Representations and Warranties of the Issuer..............................................39
Section 4.03.         Covenants as to Additional Conveyances....................................................39
Section 4.04.         Further Covenants of the Issuer...........................................................39
Section 4.05.         Enforcement of Servicing Agreements.......................................................41
Section 4.06.         Procedures for Transfer of Funds..........................................................41
Section 4.07.         Additional Covenants with Respect to the Higher Education Act.............................42
Section 4.08.         Financed Eligible Loans; Collections Thereof; Assignment Thereof..........................43
Section 4.09.         Appointment of Agents, Etc................................................................43
Section 4.10.         Capacity to Sue...........................................................................43
</TABLE>

<PAGE>

                                                                    Exhibit 4.11

<TABLE>
<S>                   <C>                                                                                       <C>
Section 4.11.         Continued Existence; Successor to Issuer..................................................44
Section 4.12.         Amendment of Student Loan Purchase Agreements.............................................44
Section 4.13.         Representations; Negative Covenants.......................................................44
Section 4.14.         Additional Covenants......................................................................50
Section 4.15.         Providing of Notice.......................................................................51
Section 4.16.         Statement as to Compliance................................................................51
Section 4.17.         Collection of Indebtedness and Suits for Enforcement by Indenture Trustee.................51
Section 4.18.         Representations of the Issuer Regarding the Indenture Trustee's Security Interest.........52
Section 4.19.         Covenants of the Issuer Regarding the Indenture Trustee's Security Interest...............53
Section 4.20.         Tax Treatment.............................................................................53
Section 4.21.         Opinions as to Indenture Trust Estate.....................................................54
Section 4.22.         Borrower Incentive Programs...............................................................54

                                                     ARTICLE V
                                                       FUNDS

Section 5.01.         Creation and Continuation of Funds and Accounts...........................................55
Section 5.02.         Acquisition Fund..........................................................................55
Section 5.03.         Class B Supplemental Reserve Fund.........................................................58
Section 5.04.         Collection Fund...........................................................................59
Section 5.05.         Note Payment Fund.........................................................................64
Section 5.06.         Remarketing Fee Fund......................................................................67
Section 5.07.         Reserve Fund..............................................................................68
Section 5.08.         Supplemental Interest Fund................................................................68
Section 5.09.         Transfers to Issuer.......................................................................69
Section 5.10.         Investment of Funds Held by Indenture Trustee.............................................69
Section 5.11.         Investment Securities.....................................................................70
Section 5.12.         Release; Sale of Financed Eligible Loans..................................................72

                                                    ARTICLE VI
                                               DEFAULTS AND REMEDIES

Section 6.01.         Events of Default Defined.................................................................73
Section 6.02.         Remedy on Default; Possession of Trust Estate.............................................74
Section 6.03.         Remedies on Default; Advice of Counsel....................................................75
Section 6.04.         Remedies on Default; Sale of Trust Estate.................................................75
Section 6.05.         Appointment of Receiver...................................................................76
Section 6.06.         Restoration of Position...................................................................76
Section 6.07.         Purchase of Properties by Indenture Trustee or Registered Owners..........................76
Section 6.08.         Application of Sale Proceeds..............................................................77
Section 6.09.         Accelerated Maturity......................................................................77
Section 6.10.         Remedies Not Exclusive....................................................................77
Section 6.11.         Direction of Indenture Trustee............................................................77
Section 6.12.         Right to Enforce in Indenture Trustee.....................................................78
Section 6.13.         Physical Possession of Obligations not Required...........................................78
Section 6.14.         Waivers of Events of Default..............................................................79
</TABLE>

                                       ii
<PAGE>

                                                                    Exhibit 4.11

<TABLE>
<S>                   <C>                                                                                       <C>
Section 6.15.         Notice of Defaults........................................................................79

                                                    ARTICLE VII
                                               THE INDENTURE TRUSTEE

Section 7.01.         Acceptance of Trust.......................................................................79
Section 7.02.         Recitals of Others........................................................................80
Section 7.03.         As to Filing of Indenture.................................................................80
Section 7.04.         Indenture Trustee May Act Through Agents..................................................80
Section 7.05.         Indemnification of Indenture Trustee......................................................81
Section 7.06.         Indenture Trustee's Right to Reliance.....................................................82
Section 7.07.         Compensation of Indenture Trustee.........................................................82
Section 7.08.         Indenture Trustee May Own Series 2004-1 Notes.............................................83
Section 7.09.         Resignation of Indenture Trustee..........................................................83
Section 7.10.         Removal of Indenture Trustee..............................................................83
Section 7.11.         Successor Indenture Trustee...............................................................84
Section 7.12.         Manner of Vesting Title in Indenture Trustee..............................................84
Section 7.13.         Additional Covenants by the Indenture Trustee to Conform to the Higher Education
                      Act.......................................................................................85
Section 7.14.         Right of Inspection.......................................................................85
Section 7.15.         Limitation with Respect to Examination of Reports.........................................85
Section 7.16.         Servicing Agreement.......................................................................85
Section 7.17.         Additional Covenants of Indenture Trustee.................................................85
Section 7.18.         Duty of Indenture Trustee with Respect to Rating Agencies.................................86
Section 7.19.         Merger of the Indenture Trustee...........................................................86
Section 7.20.         Receipt of Funds from Servicers...........................................................87
Section 7.21.         Special Circumstances Leading to Resignation of Indenture Trustee.........................87
Section 7.22.         Survival of Indenture Trustee's Rights to Receive Compensation, Reimbursement and
                      Indemnification...........................................................................87
Section 7.23.         Indenture Trustee May File Proofs of Claim................................................87
Section 7.24.         Payment of Taxes and Other Governmental Charges...........................................88

                                                   ARTICLE VIII
                                              SUPPLEMENTAL INDENTURES

Section 8.01.         Supplemental Indentures Not Requiring Consent of Registered Owners........................88
Section 8.02.         Supplemental Indentures Requiring Consent of Registered Owners............................90
Section 8.03.         Additional Limitation on Modification of Indenture........................................91

                                                    ARTICLE IX
                                                GENERAL PROVISIONS

Section 9.01.         Notices...................................................................................91
Section 9.02.         Covenants Bind Issuer.....................................................................92
Section 9.03.         Lien Created..............................................................................92
Section 9.04.         Severability of Lien......................................................................92
Section 9.05.         Consent of Registered Owners Binds Successors.............................................92
Section 9.06.         Nonliability of Directors; No General Obligation..........................................93
Section 9.07.         Nonpresentment of Series 2004-1 Notes or Interest Checks..................................93
Section 9.08.         Security Agreement........................................................................93
</TABLE>

                                      iii
<PAGE>

                                                                    Exhibit 4.11

<TABLE>
<S>                   <C>                                                                                       <C>
Section 9.09.         Laws Governing............................................................................93
Section 9.10.         Severability..............................................................................93
Section 9.11.         Exhibits..................................................................................93
Section 9.12.         Non-Business Days.........................................................................94
Section 9.13.         Parties Interested Herein.................................................................94
Section 9.14.         Obligations Are Limited Obligations.......................................................94
Section 9.15.         Counterparty Rights.......................................................................94
Section 9.16.         Aggregate Principal Amount of Obligations.................................................94
Section 9.17.         Financed Eligible Loans...................................................................94
Section 9.18.         No Petition; Subordination................................................................94

                                                     ARTICLE X
                          PAYMENT AND CANCELLATION OF NOTES AND SATISFACTION OF INDENTURE

Section 10.01.        Trust Irrevocable.........................................................................95
Section 10.02.        Satisfaction of Indenture.................................................................95
Section 10.03.        Cancellation of Paid Series 2004-1 Notes..................................................96

                                                    ARTICLE XI
                                                    TERMINATION

Section 11.01.        Termination of the Trust..................................................................96
Section 11.02.        Notice....................................................................................97

                                                    ARTICLE XII
                                              REPORTING REQUIREMENTS

Section 12.01.        Annual Statement as to Compliance.........................................................97
Section 12.02.        Annual Independent Public Accountants' Servicing Report...................................98
Section 12.03.        Administrator's Certificate...............................................................98
Section 12.04.        Statements to Registered Owners...........................................................98

APPENDIX A CERTAIN TERMS AND PROVISIONS OF THE Reset RATE NOTES................................................A-1

APPENDIX B CERTAIN TERMS AND PROVISIONS OF THE AUCTION RATE NOTES..............................................B-1

EXHIBIT A FORM OF RESET RATE NOTES.............................................................................A-1

EXHIBIT B FORM OF AUCTION RATE NOTES...........................................................................B-1

EXHIBIT C NOTICE OF PAYMENT DEFAULT............................................................................C-1

EXHIBIT D NOTICE OF CURE OF PAYMENT DEFAULT....................................................................D-1

EXHIBIT E NOTICE OF PROPOSED CHANGE IN LENGTH OF ONE OR MORE AUCTION PERIODS...................................E-1

EXHIBIT F NOTICE ESTABLISHING CHANGE IN LENGTH OF ONE OR MORE AUCTION PERIODS..................................F-1

EXHIBIT G NOTICE OF CHANGE IN AUCTION DATE.....................................................................G-1

EXHIBIT H ELIGIBLE LOAN ACQUISITION CERTIFICATE................................................................H-1

EXHIBIT I FORM OF ADMINISTRATOR'S MONTHLY SERVICING PAYMENT DATE CERTIFICATE...................................I-1
</TABLE>

                                       iv
<PAGE>

                                                                    Exhibit 4.11

<TABLE>
<S>                                                                                                            <C>
EXHIBIT J FORM OF ADMINISTRATOR'S DISTRIBUTION DATE CERTIFICATE................................................J-1

EXHIBIT K FORM OF STUDENT LOAN PURCHASE AGREEMENT..............................................................K-1
</TABLE>

                                       v
<PAGE>

                                                                    Exhibit 4.11

                               INDENTURE OF TRUST

         THIS   INDENTURE   OF  TRUST,   dated  as  of  January  1,  2004  (this
"Indenture"), is by and among NELNET EDUCATION LOAN FUNDING, INC., a corporation
duly  organized  and  existing  under  the laws of the  State of  Nebraska  (the
"Issuer"), WELLS FARGO BANK MINNESOTA,  NATIONAL ASSOCIATION, a national banking
association  duly organized and operating under the laws of the United States of
America,  as indenture  trustee  hereunder  (together with its  successors,  the
"Indenture Trustee"), and WELLS FARGO BANK MINNESOTA,  National Association,  as
eligible lender trustee hereunder  (together with its successors,  the "Eligible
Lender  Trustee") (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 corporation
under the laws of the State and that by proper action of its  governing  body it
has  duly  authorized  the  execution  and  delivery  of this  Indenture,  which
Indenture  provides  for the  payment of student  loan  asset-backed  notes (the
"Series 2004-1 Notes") and the payments to any Counterparty; and

         WHEREAS,  the Indenture  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 the  Series  2004-1  Notes (the  Registered  Owners  evidencing  their
consent by their  acceptance of the Series  2004-1  Notes) and any  Counterparty
(the  Counterparty  evidencing  its consent by its  execution  and delivery of a
Derivative  Product)  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 and, with respect to the legal title to the
Financed  Eligible Loans,  the Eligible Lender Trustee,  in consideration of the
premises and acceptance by the Indenture  Trustee of the trusts herein  created,
of the  purchase and  acceptance  of the Series  2004-1 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  Indenture
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 Indenture  Trustee,  for the benefit of the
Registered Owners of the Series 2004-1 Notes and 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 their right, title
and  interest in and to the moneys,  rights,  and  properties  described  in the
granting clauses A through F below (the "Trust Estate"), as follows:

                                GRANTING CLAUSE A

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

<PAGE>

                                                                    Exhibit 4.11

                                GRANTING CLAUSE B

         All  moneys  and  investments  held in the Funds and  Accounts  created
pursuant to Section 5.01 hereof;

                                GRANTING CLAUSE C

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

                                GRANTING CLAUSE D

         The Servicing  Agreements,  the  Administration  Agreement,  the Escrow
Reserve  Agreement,   the  Assignment  Agreement,   the  Student  Loan  Purchase
Agreements,  the Custodian  Agreements and the Guarantee  Agreements as the same
relate to Financed Eligible Loans;

                                GRANTING CLAUSE E

         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 or any related  Counterparty
Guarantee; 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  Indenture  Trustee as  additional
security hereunder.

         TO HAVE AND TO HOLD the  Trust  Estate,  whether  now  owned or held or
hereafter acquired, unto the Indenture 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 Series 2004-1 Notes,  without  preference of any Series
2004-1 Note over any other,  except as provided  herein,  and for enforcement of
the payment of the Series 2004-1 Notes in accordance  with their terms,  and all
other  sums  payable  hereunder  (including  payments  due  and  payable  to any
Counterparty)  or on the Series 2004-1  Notes,  and for the  performance  of and
compliance with the obligations, covenants, and conditions of this Indenture, as
if all  the  Series  2004-1  Notes  and  any  Derivative  Products  at any  time
Outstanding  had been executed and delivered  simultaneously  with the execution
and delivery of this Indenture;

         PROVIDED, HOWEVER, that if the Issuer, its successors or assigns, shall
well and truly pay,  or cause to be paid,  the  principal  of the Series  2004-1
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 Series 2004-1 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 Indenture  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

                                       2
<PAGE>

                                                                    Exhibit 4.11

Indenture  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  (certain  additional  terms relating to the Series
2004-1 Notes are defined in Appendices A and B hereto):

         "Account" shall mean any of the accounts created and established within
any Fund pursuant to this Indenture.

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

         "Add-on Consolidation Loan" shall mean an Eligible Loan included in the
Trust  Estate,   the  principal  balance  of  which  is  added  to  an  existing
Consolidation Loan during the Add-on Period, as required by the Higher Education
Act.

         "Add-on  Period"  shall  mean the  period of 180 days after the date of
origination of any Consolidation Loan financed by the Issuer.

         "Administration  Agreement"  shall  mean  the  Administrative  Services
Agreement, dated as of January 1, 2004, among the Issuer, the Indenture Trustee,
the Eligible  Lender  Trustee and National  Education  Loan  Network,  Inc.,  as
administrator,  and any other Administration  Agreement entered into between the
Issuer and an entity that will provide  administrative  services for the Issuer,
each as amended and supplemented pursuant to the terms and provisions thereof.

         "Administration  Fee"  shall  mean an amount  equal to 0.18% per annum,
based on the aggregate  principal  amount of the Financed  Eligible Loans within
the Trust Estate at any time, as determined by the Administrator.

         "Administrator" shall mean National Education Loan Network, Inc. in its
capacity as administrator of the Issuer and the Financed Eligible Loans, and any
successor thereto in accordance with the Administration Agreement.

         "Administrator's   Distribution   Date   Certificate"   shall   mean  a
certificate  signed by the  Administrator in substantially  the form attached as
Exhibit J hereto.

         "Administrator's Monthly Servicing Payment Date Certificate" shall mean
a certificate  signed by the Administrator in substantially the form attached as
Exhibit I hereto.

         "Agent Member" shall mean a member of, or participant  in, a Securities
Depository.

                                       3
<PAGE>

                                                                    Exhibit 4.11

         "Aggregate  Quarterly  Funding  Amount"  shall mean,  for any Quarterly
Distribution  Date, the sum of the Quarterly  Funding Amounts for that Quarterly
Distribution Date; provided, however, that if the aggregate amount on deposit in
the Remarketing Fee Fund on any Quarterly Distribution Date, after giving effect
to  any  remarketing  fee  payments  therefrom  in  respect  of  that  Quarterly
Distribution  Date,  exceeds the sum of the Reset Period Target Amounts for that
Quarterly  Distribution  Date, such excess will be transferred to the Collection
Fund pursuant to Section 5.06 of the Indenture.

         "Aggregate  Value"  shall mean on any  calculation  date the sum of the
Values of all assets of the Trust Estate.

         "Asset  Release Test" shall have the meaning  described in Section 5.09
hereof.

         "Assignment  Agreement"  shall mean the Partial  Assignment  Agreement,
dated as of January  1, 2004,  between  the  Issuer  and the  Indenture  Trustee
assigning to the Indenture Trustee certain rights of the Issuer under certain of
its  loan  purchase  agreements  and  servicing   agreements,   as  amended  and
supplemented pursuant to the terms and provisions thereof.

         "Auction Rate Distribution Date" shall mean, with respect to each Class
of the Auction  Rate Notes,  (a) so long as such Class of the Auction Rate Notes
bear interest at an Auction Rate Notes  Interest  Rate for an Auction  Period of
not greater than 90 days, the Business Day immediately  following the expiration
of the Initial  Period for such  Auction Rate Notes,  and each  related  Auction
Period thereafter, commencing on March 4, 2004 for the Class B-1 Notes and March
11,  2004 for the Class B-2  Notes;  and (b) if and for so long as such Class of
the Auction Rate Notes bear interest at an Auction Rate Notes  Interest Rate for
an Auction Period of greater than 90 days,  the 25th day of each February,  May,
August and November and the Business Day immediately following the expiration of
the related  Auction  Period.  On any Auction Rate  Distribution  Date that is a
designated  calendar  date  (such as  described  in clause  (b)  above),  if the
designated  date is not a Business  Day,  interest  shall be payable on the next
succeeding  Business Day in the amount  accrued to but excluding the  designated
calendar date and no interest shall accrue on the payment so deferred during the
intervening  period.  On  any  Auction  Rate  Distribution  Date  that  is not a
designated calendar date (such as described in clause (a) above), interest shall
be payable in the amount  accrued to but excluding the date on which interest is
actually paid.

         "Auction Rate Notes" shall mean, collectively,  the Class B-1 Notes and
the Class B-2 Notes.

         "Auction Rate Notes Carry-over  Amount" shall have the meaning ascribed
to such term in Appendix B hereto.

         "Authorized Denominations" shall mean (a) with respect to each Class of
the Reset Rate Notes,  $100,000  and any  integral  multiple of $1,000 in excess
thereof,  and (b) with  respect  to the  Auction  Rate  Notes,  $50,000  and any
integral multiple thereof.

         "Authorized  Officer"  shall  mean,  when  used with  reference  to the
Issuer, its Chairman,  President,  any Vice President or Secretary, or any other
officer or board member  authorized  in writing by the Board of Directors to act
on behalf of the Issuer.

                                       4
<PAGE>

                                                                    Exhibit 4.11

         "Authorized Representative" shall mean, when used with reference to the
Issuer, (a) an Authorized  Officer,  (b) the Administrator or (c) any officer or
board member of any  affiliate  organization  or other entity  authorized by the
Board of Directors to act on the Issuer's behalf.

         "Board of Directors" shall mean the Board of Directors of the Issuer.

         "Business  Day"  shall  have  the  meanings  ascribed  to such  term in
Appendices A and B hereto.

         "Certificate  of  Insurance"  shall mean any  certificate  evidencing a
Financed Eligible Loan is Insured pursuant to a Contract of Insurance.

         "Class" shall mean,  (a) with the respect to the Reset Rate Notes,  any
or all of the Class A-1A Notes,  the Class A-1B  Notes,  the Class A-2 Notes and
the Class A-3 Notes and (b) with the respect to the Auction  Rate Notes,  either
or both of the Class B-1 Notes and the Class B-2 Notes.

         "Class A Notes"  shall mean,  collectively,  the Class A-1A Notes,  the
Class A-1B Notes, the Class A-2 Notes and the Class A-3 Notes.

         "Class  A-1A  Interest  Account"  shall  mean the  Account by that name
created by Section  5.01(d)  hereof  within the Note  Payment  Fund and  further
described in Section 5.05 hereof, including any Subaccounts created therein.

         "Class A-1A Notes" shall mean the  $267,700,000  Nelnet  Education Loan
Funding, Inc., Student Loan Asset-Backed Notes, Senior Class 2004A-1A Reset Rate
Notes.

         "Class A-1A Notes  Interest  Distribution  Amount" shall mean, for each
Quarterly  Distribution  Date, the sum of (a) the amount of interest  accrued at
the  Class  A-1A  Notes  Interest  Rate for the  related  Accrual  Period on the
Outstanding  Amount of the Class A-1A Notes  immediately prior to such Quarterly
Distribution  Date;  and (b) the Class A-1A Notes  Interest  Shortfall  for such
Quarterly  Distribution  Date, as based on the  appropriate  Day Count Basis and
rounding the resultant  figure to the fifth decimal place,  as determined by the
Administrator.

         "Class A-1A Notes Interest  Shortfall"  shall mean, with respect to any
Quarterly  Distribution  Date,  the excess,  if any, of (a) the Class A-1A Notes
Interest Distribution Amount on the immediately preceding Quarterly Distribution
Date over (b) the amount of  interest  actually  distributed  to the  Registered
Owners of the Class A-1A Notes on such preceding  Quarterly  Distribution  Date,
plus interest on the amount of such excess interest due to the Registered Owners
of the Class A-1A Notes,  to the extent  permitted by law, at the interest  rate
borne  by the  Class  A-1A  Notes  from  such  immediately  preceding  Quarterly
Distribution Date to the current Quarterly  Distribution  Date, as determined by
the Administrator.

         "Class  A-1A  Redemption  Account"  shall mean the Account by that name
created by Section  5.01(d)  hereof  within the Note  Payment  Fund and  further
described in Section 5.05 hereof, including any Subaccounts created therein.

                                       5
<PAGE>

                                                                    Exhibit 4.11

         "Class A-1A  Supplemental  Interest  Account" shall mean the Account by
that name created by Section  5.01(g)  hereof within the  Supplemental  Interest
Fund and further  described in Section 5.08 hereof,  including  any  Subaccounts
created therein.

         "Class  A-1B  Interest  Account"  shall  mean the  Account by that name
created by Section  5.01(d)  hereof  within the Note  Payment  Fund and  further
described in Section 5.05 hereof, including any Subaccounts created therein.

         "Class A-1B Notes" shall mean the  $210,000,000  Nelnet  Education Loan
Funding, Inc., Student Loan Asset-Backed Notes, Senior Class 2004A-1B Reset Rate
Notes.

         "Class A-1B Notes  Interest  Distribution  Amount" shall mean, for each
Quarterly  Distribution  Date, the sum of (a) the amount of interest  accrued at
the  Class  A-1B  Notes  Interest  Rate for the  related  Accrual  Period on the
Outstanding  Amount of the Class A-1B Notes  immediately prior to such Quarterly
Distribution  Date;  and (b) the Class A-1B Notes  Interest  Shortfall  for such
Quarterly  Distribution  Date, as based on the  appropriate  Day Count Basis and
rounding the resultant  figure to the fifth decimal place,  as determined by the
Administrator.

         "Class A-1B Notes Interest  Shortfall"  shall mean, with respect to any
Quarterly  Distribution  Date,  the excess,  if any, of (a) the Class A-1B Notes
Interest Distribution Amount on the immediately preceding Quarterly Distribution
Date over (b) the amount of  interest  actually  distributed  to the  Registered
Owners of the Class A-1B Notes on such preceding  Quarterly  Distribution  Date,
plus interest on the amount of such excess interest due to the Registered Owners
of the Class A-1B Notes,  to the extent  permitted by law, at the interest  rate
borne  by the  Class  A-1B  Notes  from  such  immediately  preceding  Quarterly
Distribution Date to the current Quarterly  Distribution  Date, as determined by
the Administrator.

         "Class  A-1B  Redemption  Account"  shall mean the Account by that name
created by Section  5.01(d)  hereof  within the Note  Payment  Fund and  further
described in Section 5.05 hereof, including any Subaccounts created therein.

         "Class A-1B  Supplemental  Interest  Account" shall mean the Account by
that name created by Section  5.01(g)  hereof within the  Supplemental  Interest
Fund and further  described in Section 5.08 hereof,  including  any  Subaccounts
created therein.

         "Class  A-2  Interest  Account"  shall  mean the  Account  by that name
created by Section  5.01(d)  hereof  within the Note  Payment  Fund and  further
described in Section 5.05 hereof, including any Subaccounts created therein.

         "Class A-2 Notes" shall mean the  $372,000,000  Nelnet  Education  Loan
Funding,  Inc., Student Loan Asset-Backed Notes, Senior Class 2004A-2 Reset Rate
Notes.

         "Class A-2 Notes  Interest  Distribution  Amount" shall mean,  for each
Quarterly  Distribution  Date, the sum of (a) the amount of interest  accrued at
the  Class  A-2  Notes  Interest  Rate for the  related  Accrual  Period  on the
aggregate outstanding principal balance of the Class A-2 Notes immediately prior
to such  Quarterly  Distribution  Date;  and (b) the Class  A-2  Notes  Interest
Shortfall for such Quarterly  Distribution Date, as based on the appropriate Day

                                       6
<PAGE>

                                                                    Exhibit 4.11

Count Basis and rounding the  resultant  figure to the fifth decimal  place,  as
determined by the Administrator.

         "Class A-2 Notes Interest  Shortfall"  shall mean,  with respect to any
Quarterly  Distribution  Date,  the  excess,  if any, of (a) the Class A-2 Notes
Interest Distribution Amount on the immediately preceding Quarterly Distribution
Date over (b) the amount of  interest  actually  distributed  to the  Registered
Owners of the Class A-2 Notes on such  preceding  Quarterly  Distribution  Date,
plus interest on the amount of such excess interest due to the Registered Owners
of the Class A-2 Notes,  to the extent  permitted by law, at the  interest  rate
borne  by  the  Class  A-2  Notes  from  such  immediately  preceding  Quarterly
Distribution Date to the current Quarterly  Distribution  Date, as determined by
the Administrator.

         "Class A-2  Redemption  Account"  shall  mean the  Account by that name
created by Section  5.01(d)  hereof  within the Note  Payment  Fund and  further
described in Section 5.05 hereof, including any Subaccounts created therein.

         "Class A-2  Supplemental  Interest  Account"  shall mean the Account by
that name created by Section  5.01(g)  hereof within the  Supplemental  Interest
Fund and further  described in Section 5.08 hereof,  including  any  Subaccounts
created therein.

         "Class  A-3  Interest  Account"  shall  mean the  Account  by that name
created by Section  5.01(d)  hereof  within the Note  Payment  Fund and  further
described in Section 5.05 hereof, including any Subaccounts created therein.

         "Class A-3 Notes" shall mean the  $130,000,000  Nelnet  Education  Loan
Funding,  Inc., Student Loan Asset-Backed Notes, Senior Class 2004A-3 Reset Rate
Notes.

         "Class A-3 Notes  Interest  Distribution  Amount" shall mean,  for each
Quarterly  Distribution  Date, the sum of (a) the amount of interest  accrued at
the  Class  A-3  Notes  Interest  Rate for the  related  Accrual  Period  on the
aggregate outstanding principal balance of the Class A-3 Notes immediately prior
to such  Quarterly  Distribution  Date;  and (b) the Class  A-3  Notes  Interest
Shortfall for such Quarterly  Distribution Date, as based on the appropriate Day
Count Basis and rounding the  resultant  figure to the fifth decimal  place,  as
determined by the Administrator.

         "Class A-3 Notes Interest  Shortfall"  shall mean,  with respect to any
Quarterly  Distribution  Date,  the  excess,  if any, of (a) the Class A-3 Notes
Interest Distribution Amount on the immediately preceding Quarterly Distribution
Date over (b) the amount of  interest  actually  distributed  to the  Registered
Owners of the Class A-3 Notes on such  preceding  Quarterly  Distribution  Date,
plus interest on the amount of such excess interest due to the Registered Owners
of the Class A-3 Notes,  to the extent  permitted by law, at the  interest  rate
borne  by  the  Class  A-3  Notes  from  such  immediately  preceding  Quarterly
Distribution Date to the current Quarterly  Distribution  Date, as determined by
the Administrator.

         "Class A-3  Redemption  Account"  shall  mean the  Account by that name
created by Section  5.01(d)  hereof  within the Note  Payment  Fund and  further
described in Section 5.05 hereof, including any Subaccounts created therein.

                                       7
<PAGE>

                                                                    Exhibit 4.11

         "Class A-3  Supplemental  Interest  Account"  shall mean the Account by
that name created by Section  5.01(g)  hereof within the  Supplemental  Interest
Fund and further  described in Section 5.08 hereof,  including  any  Subaccounts
created therein.

         "Class B Notes" shall mean,  collectively,  the Class B-1 Notes and the
Class B-2 Notes.

         "Class B  Supplemental  Reserve  Fund" shall mean the Fund by that name
created in Section 5.01(b) hereof and further  described in Section 5.03 hereof,
including any Accounts and Subaccounts created therein.

         "Class B Supplemental  Reserve Fund  Requirement"  shall mean an amount
equal  to 90 days'  interest  on the  Outstanding  Amount  of the  Class B Notes
calculated  at the highest  then  current  interest  rate on either Class of the
Class B Notes.

         "Class  B-1  Interest  Account"  shall  mean the  Account  by that name
created by Section  5.01(d)  hereof  within the Note  Payment  Fund and  further
described in Section 5.05 hereof, including any Subaccounts created therein.

         "Class B-1 Notes"  shall mean the  $15,150,000  Nelnet  Education  Loan
Funding,  Inc.,  Student Loan  Asset-Backed  Notes,  Subordinate  Class  2004B-1
Auction Rate Notes.

         "Class B-1 Notes  Interest  Distribution  Amount" shall mean,  for each
Auction  Rate  Distribution  Date for the  Class B-1  Notes,  the sum of (a) the
amount of interest  accrued at the Class B-1 Notes Interest Rate for the related
Accrual  Period on the  Outstanding  Amount  of the Class B-1 Notes  immediately
prior to such Auction Rate  Distribution  Date for the Class B-1 Notes;  and (b)
the Class B-1 Notes Interest  Shortfall for such Auction Rate  Distribution Date
for the Class B-1 Notes,  as based on the actual  number of days in such Accrual
Period  divided by 360 and rounding the  resultant  figure to the fifth  decimal
place, as determined by the Administrator.

         "Class B-1 Notes Interest  Shortfall"  shall mean,  with respect to any
Auction Rate  Distribution  Date for the Class B-1 Notes, the excess, if any, of
(a)  the  Class  B-1  Notes  Interest  Distribution  Amount  on the  immediately
preceding  Auction Rate  Distribution  Date for the Class B-1 Notes over (b) the
amount of interest  actually  distributed to the Registered  Owners of the Class
B-1 Notes on such  preceding  Auction Rate  Distribution  Date for the Class B-1
Notes, plus interest on the amount of such excess interest due to the Registered
Owners of the Class B-1 Notes,  to the extent  permitted by law, at the interest
rate borne by the Class B-1 Notes from such immediately  preceding  Auction Rate
Distribution  Date  for  the  Class  B-1  Notes  to  the  current  Auction  Rate
Distribution Date for the Class B-1 Notes, as determined by the Administrator.

         "Class B-1  Redemption  Account"  shall  mean the  Account by that name
created by Section  5.01(d)  hereof  within the Note  Payment  Fund and  further
described in Section 5.05 hereof, including any Subaccounts created therein.

         "Class  B-2  Interest  Account"  shall  mean the  Account  by that name
created by Section  5.01(d)  hereof  within the Note  Payment  Fund and  further
described in Section 5.05 hereof, including any Subaccounts created therein.

                                       8
<PAGE>

                                                                    Exhibit 4.11

         "Class B-2 Notes"  shall mean the  $15,150,000  Nelnet  Education  Loan
Funding,  Inc.,  Student Loan  Asset-Backed  Notes,  Subordinate  Class  2004B-2
Auction Rate Notes.

         "Class B-2 Notes  Interest  Distribution  Amount" shall mean,  for each
Auction  Rate  Distribution  Date for the  Class B-2  Notes,  the sum of (a) the
amount of interest  accrued at the Class B-2 Notes Interest Rate for the related
Accrual  Period on the  Outstanding  Amount  of the Class B-2 Notes  immediately
prior to such Auction Rate  Distribution  Date for the Class B-2 Notes;  and (b)
the Class B-2 Notes Interest  Shortfall for such Auction Rate  Distribution Date
for the Class B-2 Notes,  as based on the actual  number of days in such Accrual
Period  divided by 360 and rounding the  resultant  figure to the fifth  decimal
place, as determined by the Administrator.

         "Class B-2 Notes Interest  Shortfall"  shall mean,  with respect to any
Auction Rate  Distribution  Date for the Class B-2 Notes, the excess, if any, of
(a)  the  Class  B-2  Notes  Interest  Distribution  Amount  on the  immediately
preceding  Auction Rate  Distribution  Date for the Class B-2 Notes over (b) the
amount of interest  actually  distributed to the Registered  Owners of the Class
B-2 Notes on such  preceding  Auction Rate  Distribution  Date for the Class B-2
Notes, plus interest on the amount of such excess interest due to the Registered
Owners of the Class B-2 Notes,  to the extent  permitted by law, at the interest
rate borne by the Class B-2 Notes from such immediately  preceding  Auction Rate
Distribution  Date  for  the  Class  B-2  Notes  to  the  current  Auction  Rate
Distribution Date for the Class B-2 Notes, as determined by the Administrator.

         "Class B-2  Redemption  Account"  shall  mean the  Account by that name
created by Section  5.01(d)  hereof  within the Note  Payment  Fund and  further
described in Section 5.05 hereof, including any Subaccounts created therein.

         "Clearstream"  shall mean Clearstream  Banking,  societe anonyme or its
successor in interest.

         "Closing  Date"  shall  mean  January  30,  2004,  the date of  initial
issuance and delivery of the Series 2004-1 Notes hereunder.

         "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
Series  2004-1  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(c)  hereof and further  described  in Section 5.04  hereof,  including  any
Accounts and Subaccounts created therein.

         "Commercial  Paper Rate  Trigger"  shall mean as of the last day of any
calendar  quarter the average daily 90-Day  Financial  Commercial Paper Rate for
such calendar quarter exceeded 6.80% per annum.

                                       9
<PAGE>

                                                                    Exhibit 4.11

         "Commission" shall mean the Securities and Exchange Commission.

         "Consolidation  Fee" shall mean any federal  origination  fee,  monthly
rebate fee or similar fee payable to the Department of Education relating to the
origination or ownership of Consolidation Loans.

         "Consolidation  Loan"  shall mean an  Eligible  Loan made  pursuant  to
Section  428C  of  the  Higher  Education  Act  to  consolidate  the  borrower's
obligations  under  various  federally  authorized  student loan programs into a
single loan, as supplemented by the addition of any related Add-on Consolidation
Loan.

         "Contract of  Insurance"  shall mean the contract of insurance  between
the Eligible Lender and the Secretary.

         "Counterparty" shall mean any counterparty under a Derivative Product.

         "Counterparty  Payment  Account"  shall mean each  Account by that name
established for a Derivative  Product  pursuant to Section 5.01(d) hereof within
the Note Payment Fund for the payment of Issuer Derivative  Payments and further
described in Section 5.05 hereof, including any Subaccounts created therein.

         "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 the Custodian Agreement,  dated as of
January 1, 2004,  among the Issuer,  the Eligible Lender Trustee,  the Indenture
Trustee and Nelnet, Inc., as custodian,  and any other custodian agreements with
any  Servicer,  subservicer  or other  custodian  or bailee  related to Financed
Eligible  Loans,  each as amended  and  supplemented  pursuant  to the terms and
provisions thereof.

         "Definitive  Certificates"  shall  mean  definitive,  fully  registered
certificates  evidencing the Series 2004-1 Notes which are not registered in the
name of the nominee of a Securities Depository.

         "Department  of Education"  shall mean the United Stated  Department of
Education, or any successor thereto.

         "Derivative Product" shall mean a written contract or agreement between
the Issuer and a  Counterparty  entered into pursuant to Section 3.03 hereof for
any  interest  rate  swap,  cap,  floor,  collar or other  investment  contract,
including the Interest Rate Cap Derivative Agreement.

         "Derivative  Product  Distribution  Date" shall mean, with respect to a
Derivative  Product,  any date specified in such Derivative  Product on which an
Issuer Derivative Payment is due and payable under such 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

                                       10
<PAGE>

                                                                    Exhibit 4.11

manner  as  amounts  are  defined  and  calculated  pursuant  to the  applicable
provisions of an ISDA Master Agreement.

         "Dissolution"  shall  mean,  with  respect to Article XI hereof and the
Issuer, the occurrence of any of the events which would cause a dissolution of a
limited partnership organized under the laws of the State of Delaware,  the sole
general partner of which is the Issuer.

         "Distribution  Date" shall mean (i) each Quarterly  Distribution  Date,
(ii) each  Auction  Rate  Distribution  Date and (iii) each  Derivative  Product
Distribution Date.

         "DTC" shall mean The  Depository  Trust  Company or its  successors  in
interest.

         "Early  Amortization  Event"  shall  mean (a) an Event of  Default or a
Servicer  default  under its  Servicing  Agreement;  (b) an Event of  Bankruptcy
occurring  with  respect  to a Seller;  (c) that the Issuer  becomes  subject to
registration  as an "Investment  Company"  under the  Investment  Company Act of
1940, as amended;  (d) the Commercial Paper Rate Trigger has occurred;  (e) July
1, 2006, unless a Rating Confirmation has been obtained permitting the Financing
of Eligible Loans subsequent to July 1, 2006; (f) the Issuer  determines,  in an
Issuer  Order,  there is a change in law that  adversely  affects  the  economic
attributes  of  Consolidation  Loans;  (g) the Issuer  determines,  in an Issuer
Order, that it cannot originate  additional  Consolidation Loans on commercially
reasonable  terms or (h) the  failure to obtain a Rating  Confirmation  from the
Rating  Agencies  then rating the Series 2004-1 Notes upon any change in law, or
interpretation of the current law,  relating to Special Allowance  Payments paid
pursuant to Section 438(b)(i) and (ii) of the Higher Education Act.

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

         "Eligible  Lender  Trustee"  shall  mean Wells  Fargo  Bank  Minnesota,
National  Association,  a national  banking  association,  not in its individual
capacity but solely as Eligible Lender Trustee  hereunder and under the Eligible
Lender Trust Agreement, or its successors and assigns.

         "Eligible Lender Trustee Fee" shall mean the annual compensation to the
Eligible  Lender  Trustee for acting as eligible  lender  trustee  hereunder and
under the Eligible Lender Trust Agreement.  So long as the Indenture  Trustee is
acting as Eligible Lender Trustee  hereunder and under the Eligible Lender Trust
Agreement, there shall be no Eligible Lender Trustee Fee.

         "Eligible  Lender Trust Agreement" shall mean the Eligible Lender Trust
Agreement,  dated as of  January 1, 2004,  between  the Issuer and the  Eligible
Lender Trustee, as amended and supplemented pursuant to the terms and provisions
thereof.

         "Eligible  Loan"  shall  mean any loan made to  finance  post-secondary
education  that (a)(i) is made to an eligible  borrower in  compliance  with the
requirements  of the Higher  Education Act  (including  Consolidation  Loans and
Add-on Consolidation Loans), (ii) is guaranteed by a Guarantee Agency or Insured
by the Secretary,  (iii) bears interest at not less than the maximum  applicable
rate of interest  permitted by the Higher  Education Act at the time

                                       11
<PAGE>

                                                                    Exhibit 4.11

originated,  or any  lesser  rate of  interest  shown in the cash flow  analyses
provided to each Rating Agency on the Closing  Date;  provided that such rate of
interest may be reduced if Rating  Confirmation  is obtained,  based on new cash
flow  analyses  containing  such  assumptions  as the  Issuer  shall  reasonably
determine,  and (iv) is  eligible  for  Special  Allowance  Payments;  or (b) is
insured by the  Secretary  of Health and Human  Services  pursuant to the Public
Health Services Act;  provided,  however,  that if after any  reauthorization or
amendment of the Higher  Education Act loans authorized  thereunder,  including,
without limitation,  their benefits,  any provisions,  or the servicing thereof,
are materially  different from loans authorized prior to such reauthorization or
amendment,  such  loans  shall not  constitute  Eligible  Loans  unless a Rating
Confirmation is obtained.

         "Eligible Loan Acquisition Certificate" shall mean a certificate signed
by an Authorized Representative of the Issuer in substantially the form attached
as Exhibit H hereto.

         "Ending  Balance  Factor"  shall  mean,  for any given day,  the number
calculated by dividing the unpaid principal  balance of the appropriate Class of
the Outstanding Class A Notes (after any Principal  Reduction  Payments are made
thereto) by the original  principal  balance of such Class of the Class A Notes,
and rounding the result to nine decimal places.

         "Escrow  Reserve  Agreement"  shall mean the Escrow Reserve  Agreement,
dated as of January 1, 2004,  between the Issuer and Wells Fargo Bank Minnesota,
National  Association,  as escrow agent, as amended and supplemented pursuant to
the terms and provisions thereof.

         "Euroclear"  shall  mean  The  Euroclear  System  or its  successor  in
interest.

         "Event of Bankruptcy"  shall mean,  with respect to any Person (a) such
Person  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 such Person 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.

         "Event of  Default"  shall  have the  meaning  specified  in Article VI
hereof.

         "Financed"  or  "Financing"  when used with respect to Eligible  Loans,
shall mean or refer to Eligible  Loans (a) financed 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.

                                       12
<PAGE>

                                                                    Exhibit 4.11

         "Fiscal Year" shall mean the fiscal year of the Issuer ending  December
31, or as otherwise established from time to time.

         "Fitch"  shall  mean  Fitch,  Inc.,  also  known  as Fitch  Ratings,  a
corporation organized and existing under the laws of the State of Delaware,  its
successors and assigns.

         "Funds" shall mean each of the Funds  created  pursuant to Section 5.01
hereof.

         "Global  Certificate"  shall mean any Series 2004-1 Note  registered in
the name of a Securities  Depository or its nominee.  Each Rule 144A Certificate
or Regulation S Certificate shall constitute a "Global Certificate."

         "Guarantee"  or  "Guaranteed"  shall mean,  with respect to an Eligible
Loan, the insurance or guarantee by a 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  Higher
Education 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 a Guaranty  Agency for
payments  made by it on defaulted  Eligible  Loans  insured or  guaranteed  by a
Guaranty  Agency of at least the  minimum  reimbursement  allowed  by the Higher
Education Act with respect to a particular Eligible Loan.

         "Guarantee  Agreements"  shall  mean a  guaranty  or  lender  agreement
between the Indenture  Trustee or the Eligible  Lender  Trustee and any Guaranty
Agency, and any amendments thereto.

         "Guaranty Agency" shall mean any entity authorized to guarantee student
loans under the Higher  Education Act and with which the  Indenture  Trustee and
the Eligible Lender Trustee maintains a Guarantee Agreement.

         "Higher  Education 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.

         "Highest Priority  Obligations"  shall mean (a) at any time when Senior
Obligations are Outstanding,  the Senior Obligations and (b) at any time when no
Senior Obligations are Outstanding, the Subordinate Obligations.

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

         "Indenture  Trustee"  shall mean Wells Fargo Bank  Minnesota,  National
Association,  acting in its capacity as Indenture  Trustee under this Indenture,
or any successor trustee designated pursuant to this Indenture.

         "Indenture Trustee Fee" shall mean an amount equal to the annual amount
set in the  Trustee Fee Letter  dated  January  20,  2004.  Such fee shall be in
satisfaction of the Indenture

                                       13
<PAGE>

                                                                    Exhibit 4.11

Trustee's  compensation  as trustee  hereunder  and as eligible  lender  trustee
hereunder and under the Eligible Lender Trust Agreement.

         "Initial  Purchasers"  shall mean,  collectively,  Credit  Suisse First
Boston LLC and Deutsche Bank Securities Inc.

         "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
Higher Education Act) under the Higher Education 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 Higher  Education Act and an agreement with the
federal government, or any similar payments.

         "Interest  Rate Cap  Derivative  Agreement"  shall mean the ISDA Master
Agreement,  Schedule and Confirmation,  each dated January 30, 2004, between the
Issuer and Credit Suisse First Boston International, as amended and supplemented
pursuant to the terms and provisions thereof, which Interest Rate Cap Derivative
Agreement shall constitute a Derivative Agreement hereunder.

         "Investment  Agreement"  shall mean,  collectively,  (a) the Investment
Agreement,  dated January 30, 2004,  between the  Indenture  Trustee and Trinity
Plus Funding Company, LLC, (b) the Investment Agreement, dated January 30, 2004,
between the Indenture  Trustee and FSA Capital  Management  Services,  Inc., and
acknowledged by the Issuer and (c) any other  investment  agreement  approved by
the Rating Agencies,  each as amended and supplemented pursuant to the terms and
provisions thereof.

         "Investment  Securities" shall mean book-entry  securities,  negotiable
instruments  or securities  represented  by  instruments in bearer or registered
form, all purchased at a price not in excess of par, which evidence:

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

                  (b) demand deposits,  time deposits or certificates of deposit
         of any depository  institution or trust company  incorporated under the
         laws of the  United  States of  America  or any State (or any  domestic
         branch of a foreign bank) and subject to supervision and examination by
         federal  or  state  banking  or  depository   institution   authorities
         (including  depository receipts issued by any such institution or trust
         company as  custodian  with  respect to any  obligation  referred to in
         paragraph  (a) above or portion of such  obligation  for the benefit of
         the holders of such depository  receipts);  provided,  however, that at
         the time of the  investment  therein  (which shall be deemed to be made
         again each time funds are reinvested following each Distribution Date),
         the  commercial  paper  or  other  short-term   senior  unsecured  debt
         obligations  (other than such  obligations the rating of which is based
         on the credit of a Person  other than such  depository  institution  or
         trust  company)  thereof  shall have a credit  rating  from each of the
         Rating Agencies in the highest investment category granted thereby;

                                       14
<PAGE>

                                                                    Exhibit 4.11

                  (c) commercial  paper and auction rate securities  having,  at
         the time of the investment or contractual commitment to invest therein,
         a rating from each of the Rating  Agencies  in the  highest  investment
         category granted thereby;

                  (d)  investments  in money  market  funds having a rating from
         each of the Rating Agencies rating such fund, in the highest investment
         category  granted thereby provided at least Moody's has rated such fund
         (including  funds for which the  Indenture  Trustee,  a Servicer or the
         Eligible  Lender  Trustee  or any of  their  respective  affiliates  is
         investment  manager or  advisor);  provided,  however,  that such Fitch
         rating  shall be "AA/F1+" or higher for any money market fund which has
         the ability to maintain a stable  one-dollar  net asset value per share
         and whose shares are freely transferable on a daily basis;

                  (e) bankers' acceptances issued by any depository  institution
         or trust company referred to in clause (b) above;

                  (f) repurchase  obligations  with respect to any security that
         is a direct obligation of, or fully guaranteed by, the United States of
         America or any agency or  instrumentality  thereof the  obligations  of
         which are backed by the full  faith and credit of the United  States of
         America,  in either case entered into with a depository  institution or
         trust company (acting as principal) described in clause (b) above;

                  (g) any Investment Agreement; and

                  (h) any  other  investment  permitted  by  each of the  Rating
         Agencies  as  evidenced  by a  Rating  Confirmation  delivered  to  the
         Indenture Trustee.

Notwithstanding  the  foregoing,  for purposes of clauses (b),  (c), (e) and (f)
above,  the  provider  must  have a  Moody's  long  term  rating of "Aaa" if the
investment  is longer than 6 months,  "Aa3" if the  investment is between 90 and
180 days,  and "A1" if the  investment  is between 30 and 90 days. No obligation
will be considered to be rated in the highest  investment  category if it has an
"r" highlighter affixed to its rating.

         "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 Education Loan Funding,  Inc., a corporation
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.

         "Issuer Derivative Payment" shall mean a payment required to be made by
or on  behalf of the  Issuer  due to a  Counterparty  pursuant  to a  Derivative
Product  (including   Priority   Termination   Payments,   but  excluding  other
Termination Payments).

                                       15
<PAGE>

                                                                    Exhibit 4.11

         "Liquidated  Financed Eligible Loan" shall mean any defaulted  Financed
Eligible  Loan  liquidated  by a Servicer  (which shall not include any Financed
Eligible Loan on which payments are received from a Guaranty  Agency) or which a
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 calendar quarter in accordance with a 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  calendar  quarters or
during the current calendar quarter, net of the sum of any amounts expended by a
Servicer in connection with such  liquidation and any amounts required by law to
be remitted to the obligor on such Liquidated Financed Eligible Loan.

         "Make-whole  Premium" shall mean,  with respect to a Class of the Reset
Rate Notes  other than the Class A-1B Notes and the Class A-3 Notes,  (a) during
each Initial  Reset Period an amount equal to the product of (i) the spread over
LIBOR  applicable  to such Class of the Reset  Rate  Notes,  (ii) the  aggregate
Outstanding Amount of such Class of the Reset Rate Notes and (iii) the number of
days until the first Reset Date for that Class of the Reset Rate Notes,  divided
by 360 and (b)  during any  subsequent  Reset  Period,  the  prepayment  premium
established  by the  Remarketing  Agent with  respect to such Class of the Reset
Rate Notes in connection  with the  remarketing  of such Class of the Reset Rate
Notes  and  set  forth  in the  Remarketing  Terms  Notice.  There  shall  be no
Make-whole  Premium during the Initial Reset Periods for the Class A-1B Notes or
the Class A-3 Notes.

         "Master  Promissory  Note" shall mean a note (a) that  evidences one or
more loans made to finance post-secondary education financing and (b) that is in
the form mandated by Section  432(m)(1) of the Higher Education Act, as added by
Public Law No: 105-244, ss. 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).

         "Maturity" when used with respect to any Series 2004-1 Note, shall mean
the date on which the  principal  thereof  becomes due and payable as therein or
herein  provided,  whether at its Stated  Maturity,  by earlier  redemption,  by
declaration of acceleration, or otherwise.

         "Monthly  Servicing  Payment Date" shall mean the  twenty-fifth  day of
each  calendar  month or, if such day is not a  Business  Day,  the  immediately
following Business Day, commencing on February 25, 2004.

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

         "90-Day  Financial  Commercial  Paper  Rate"  shall  mean the 90-Day AA
Financial  Commercial  Paper rate posted on the Federal Reserve Release entitled
"Commercial  Paper Rates and  Outstandings,"  which rate may be available on the
Internet at www.federalreserve.gov/releases/cp.

                                       16
<PAGE>

                                                                    Exhibit 4.11

         "Non-amortizing  Reset  Rate  Notes"  shall mean any Class of the Reset
Rate Notes on which Principal Reduction Payments on that Class of the Reset Rate
Notes are to be paid only on the  Business  Day  succeeding  its  current  Reset
Period.

         "Non-U.S.  Person"  shall  mean a Person who is not a U.S.  Person,  as
defined in Regulation S.

         "Note  Counsel"  shall  mean  Kutak  Rock LLP or any  other  nationally
recognized  law firm which is  requested to deliver its  approving  opinion with
respect to the Series 2004-1 Notes.

         "Note Payment Fund" shall mean the Fund by that name created in Section
5.01(d)  hereof and further  described  in Section 5.05  hereof,  including  any
Accounts and Subaccounts created therein.

         "Obligations" shall mean, collectively,  the Senior Obligations and the
Subordinate Obligations.

         "Outstanding"  shall mean (a) when used in  connection  with any Series
2004-1 Note, a Series 2004-1 Note which has been executed and delivered pursuant
to this Indenture which at such time remains unpaid as to principal or interest,
unless  provision  has been made for such  payment  pursuant  to  Section  10.02
hereof,  excluding  Series  2004-1  Notes which have been  replaced  pursuant to
Section 2.03 hereof, and (b) 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.

         "Outstanding  Amount" shall mean the aggregate  principal amount of all
Series 2004-1 Notes  Outstanding at the date of determination or, if the context
so requires,  the aggregate principal amount of one or more Classes of the Class
A Notes or Class B 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.

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

         "Principal Reduction Payments" shall mean principal payments made prior
to a Stated  Maturity  from the Note  Payment  Fund on the  Class A Notes  which
reduce the principal balance of each Class A Note on a pro rata basis.

         "Priority Termination Payment" shall mean, with respect to a Derivative
Product,  any  termination  payment  payable by or on behalf of the Issuer under
such  Derivative  Product  relating to an early  termination of such  Derivative
Product by the  Counterparty,  as the  non-defaulting  party,  following (i) the
failure of the Issuer to make an Issuer  Derivative  Payment when due (after any
applicable  grace  periods),  but only if the  Issuer had  sufficient  moneys on
deposit in the  Collection  Fund (after giving effect to any required  transfers
thereto)  as of the  due  date of  such  Issuer  Derivative  Payment,  (ii)  the
occurrence of an Event of Default specified in Section 6.01(f)

                                       17
<PAGE>

                                                                    Exhibit 4.11

hereof,  (iii) the Indenture  Trustee's taking any action hereunder to liquidate
the entire Trust Estate  following an Event of Default and  acceleration  of the
Series  2004-1  Notes  pursuant  to  Section  6.09  hereof  or  (iv)  any  other
termination   payments   permitted  by  the  Rating   Agencies   with  a  Rating
Confirmation.

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

         "Program  Expenses"  shall  mean  (a)  the  fees  and  expenses  of the
Indenture Trustee and the Eligible Lender Trustee;  (b) the fees and expenses of
the  Auction  Agent  and any  Broker-Dealer;  (c) the fees and  expenses  of any
Remarketing  Agent;  (d) the fees and expenses due to any credit provider of the
Series  2004-1  Notes for which a credit  facility or  liquidity  facility is in
place;  (e) the  fees of any  Servicer  and/or  custodian  under  any  Servicing
Agreement or Custodian Agreement; (f) the fees and expenses of any Administrator
and the Issuer incurred in connection with the preparation of legal opinions and
other authorized  reports or statements  attributable to the Series 2004-1 Notes
and the Financed  Eligible  Loans;  (g) transfer fees,  loan  origination  fees,
Consolidation  Fees and all other fees due to the  Department  of  Education  on
Financed Eligible Loans; (h) fees and expenses associated with the delivery of a
credit  facility or liquidity  facility;  (i) fees and expenses  associated with
(but not payments under) Derivative  Products;  (j) the costs of remarketing any
of  the  Series  2004-1  Notes  and  (k)  expenses  incurred  for  the  Issuer's
maintenance  and  operation  of its  Program  as a  direct  consequence  of this
Indenture,  the Series 2004-1 Notes or the Financed  Eligible Loans;  including,
but not  limited to,  taxes,  the  reasonable  fees and  expenses of  attorneys,
agents,  financial advisors,  consultants,  accountants and other professionals,
attributable  to such  maintenance  and  operation,  marketing  expenses for the
Program  and a prorated  portion  of the rent,  personnel  compensation,  office
supplies  and  equipment,  travel  expenses and other  lawful  payments  made to
members of the Board of Directors.

         "Qualified  Institutional Buyer" shall mean a "qualified  institutional
buyer" within the meaning of Rule 144A.

         "Quarterly Distribution Date" shall mean the twenty-fifth (25th) day of
each February,  May, August and November,  commencing on August 25, 2004, or, if
such day is not a Business Day, the immediately following Business Day.

         "Quarterly Funding Amount" shall mean, for each Class of the Reset Rate
Notes for any Quarterly  Distribution Date (a)(i) the Reset Period Target Amount
for that Class and that Quarterly  Distribution  Date,  minus (ii) the amount on
deposit in the Remarketing Fee Fund in respect of that Class  immediately  prior
to that  Quarterly  Distribution  Date;  divided by (b) the number of  Quarterly
Distribution  Dates from and excluding that Quarterly  Distribution Date through
and including the next Reset Date for that Class.

         "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 Series 2004-1 Notes.

                                       18
<PAGE>

                                                                    Exhibit 4.11

         "Rating Agency" shall mean,  collectively,  Fitch,  Moody's and S&P and
their  successors and assigns or any other Rating Agency;  provided that in each
such case the Issuer has  requested  such Rating  Agency to maintain a Rating on
any of the Series  2004-1  Notes.  If no such  organization  or successor is any
longer  in  existence,   "Rating  Agency"  shall  be  a  nationally   recognized
statistical  rating  organization or other comparable  Person  designated by the
Issuer, notice of which designation shall be given to the Indenture Trustee.

         "Rating Agency Condition" shall mean, with respect to any action,  that
each Rating  Agency shall have been given prior notice  thereof and that each of
the Rating Agencies shall have issued a Rating Confirmation.

         "Rating  Confirmation" shall mean a letter from each Rating Agency then
providing  a Rating for any of the  Series  2004-1  Notes at the  request of the
Issuer,  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 Series 2004-1  Notes,  or cause any Rating Agency to suspend or withdraw the
Ratings then applicable to the Series 2004-1 Notes.

         "Realized  Loss"  shall  mean  the  excess  of  the  principal  balance
(including any interest that had been or had been expected to be capitalized) of
any Liquidated Financed Eligible Loan over Liquidation  Proceeds with respect to
such Financed Eligible Loan to the extent allocable to principal  (including any
interest that had been or had been expected to be capitalized).

         "Record Date" shall mean (a) with respect to the Reset Rate Notes,  the
close of  business on the  Business  Day  preceding  each  Distribution  Date or
Redemption Date and (b) with respect to the Auction Rate Notes, the Business Day
next preceding the applicable Auction Rate Distribution Date.

         "Recoveries  of  Principal"  shall  mean all  amounts  received  by the
Indenture Trustee from or on account of any Financed Eligible Loan as a recovery
of the principal  amount thereof,  including  scheduled,  delinquent and advance
payments,  payouts or  prepayments,  proceeds  from  insurance or from the sale,
assignment,  transfer,  reallocation or other disposition of a Financed Eligible
Loan  and any  payments  representing  such  principal  from  the  guarantee  or
insurance of any Financed  Eligible Loan, net of accrued  interest which will be
capitalized at a later date.

         "Redemption  Accounts"  shall  mean  one  or  more  of the  Class  A-1A
Redemption Account,  the Class A-1B Redemption Account, the Class A-2 Redemption
Account,  the Class A-3 Redemption Account, the Class B-1 Redemption Account and
the Class B-2 Redemption Account, as the context requires.

         "Registered  Owner" shall mean the Person in whose name a Series 2004-1
Note is registered on the Series 2004-1 Note  registration  books  maintained by
the Indenture Trustee, and shall also mean with respect to a Derivative Product,
any Counterparty,  unless the context otherwise requires.  All references herein
to  "Registered  Owner"  shall  reflect the rights of  beneficial  owners of the
Series  2004-1  Notes as they may  indirectly  exercise  such  rights  through a
Securities  Depository  and its Agent  Members,  except as  otherwise  specified
herein;  provided,  however,  that  the  parties  hereto  shall be  required  to
recognize as a "Registered  Owner" only the

                                       19
<PAGE>

                                                                    Exhibit 4.11

Person in whose name a Series  2004-1  Note is  registered  in the  registration
books of the Indenture Trustee.

         "Regulation S" shall mean Regulation S under the Securities Act.

         "Regulation S Certificate" shall have the meaning ascribed to such term
in Section 2.01(b) hereof.

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

         "Remarketing  Fee Fund"  shall  mean the Fund by that name  created  in
Section 5.01(e) hereof and further  described in Section 5.06 hereof,  including
any Accounts and Subaccounts created therein.

         "Reserve  Fund"  shall  mean the Fund by that name  created  in Section
5.01(f)  hereof and further  described  in Section 5.07  hereof,  including  any
Accounts and Subaccounts created therein.

         "Reserve Fund Requirement"  shall mean 0.25% of the Outstanding  Amount
of the Series 2004-1 Notes; provided, however, that so long as any Series 2004-1
Notes remain Outstanding there shall be at least 0.15% of the original principal
amount of the Series 2004-1 Notes ($1,515,000) on deposit in the Reserve Fund or
such lower  amount as may be agreed to by the Rating  Agencies as evidenced by a
Rating Confirmation.

         "Reserve Fund Surety Bond" shall mean a letter of credit,  surety bond,
insurance  policy,  agreement  guaranteeing  payment or other  undertaking  by a
financial  institution  to  ensure  that cash in an  amount  required  to meet a
Reserve Fund Requirement is available to the Indenture Trustee.

         "Reset  Period  Target  Amount"  for each Class of the Reset Rate Notes
shall mean (a) for any  Quarterly  Distribution  Date through and  including the
Initial Reset Date for that Class,  $267,700 for the Class A-1A Notes,  $210,000
for the Class A-1B Notes,  $372,000 for the Class A-2 Notes and $130,000 for the
Class A-3 Notes,  which amounts will be deposited in the Remarketing Fee Fund on
the Closing Date; and (b) for any Quarterly  Distribution  Date thereafter,  the
highest  remarketing fee payable to the Remarketing Agents for that Class of the
Reset  Rate  Notes  (not to exceed  0.10% per annum of the  maximum  Outstanding
Amount of such Class of the Reset Rate  Notes that could be  remarketed)  on the
next related Reset Date, as determined by the Administrator based on the assumed
weighted average life of such Class and the maximum remarketing fee set forth in
a schedule to the  Remarketing  Agreement,  as such schedule may be amended from
time to time.

         "Reset Rate Notes" shall mean, collectively,  the Class A-1A Notes, the
Class A-1B Notes, the Class A-2 Notes and the Class A-3 Notes.

         "Reset Rate Notes Carry-over Amount" shall have the meaning ascribed to
such term in Appendix A hereto.

                                       20
<PAGE>

                                                                    Exhibit 4.11

         "Resolution"  shall  mean a  resolution  duly  adopted  by the Board of
Directors.

         "Revenue"  or  "Revenues"  shall  mean  all  Recoveries  of  Principal,
payments,  proceeds,  charges and other income received by the Indenture 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 and 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,  Account  or  Subaccount  and all
Counterparty Payments received by the Issuer pursuant to a Derivative Product.

         "Revolving Period" shall mean, with respect to the use of Recoveries of
Principal in the Acquisition  Fund, the period beginning on the Closing Date and
ending on and  including  January  31,  2007,  unless such  Revolving  Period is
suspended  as provided in Section  5.02(b) or  terminated  on an earlier date as
provided in Section 5.02(d) hereof.

         "Rule 144A" shall mean Rule 144A promulgated under the Securities Act.

         "Rule 144A Certificate" shall have the meaning ascribed to such term in
Section 2.01(b) hereof.

         "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 Higher
Education Act.

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

         "Securities Depository" shall mean DTC, or if, (a) DTC resigns from its
functions  as   depository  of  the  Series  2004-1  Notes  or  (b)  the  Issuer
discontinues use of DTC, any other securities  depository which agrees to follow
the procedures required to be followed by a securities  depository in connection
with the  Series  2004-1  Notes and which is  selected  by the  Issuer  with the
consent of the Indenture Trustee.

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

         "Seller"  shall  mean an  Eligible  Lender  from  which  the  Issuer is
purchasing or has purchased or agreed to purchase  Eligible  Loans pursuant to a
Student Loan Purchase Agreement between the Issuer and such Eligible Lender.

         "Senior  Obligations"  shall mean the Class A Notes and any  Derivative
Product,  the priority of payment of which is equal with that of interest on the
Class A Notes.

         "Senior  Parity  Ratio"  shall  mean,  with  respect  to  any  date  of
calculation,  the percentage  equivalent of a fraction of (a) aggregate Value of
the Trust Estate, less (i) amounts on deposit in the Redemption Accounts for the
Notes,  (ii) amounts that were received  under the Interest Rate Cap  Derivative
Agreement, and (iii) amounts on deposit in the Remarketing Fee Fund over

                                       21
<PAGE>

                                                                    Exhibit 4.11

(b) the Outstanding  Amount of the Class A Notes, less amounts on deposit in the
Redemption Accounts for the Class A Notes.

         "Series 2004-1 Notes" shall mean,  collectively,  the Class A Notes and
the Class B Notes.

         "Servicer" shall mean, collectively, Nelnet, Inc., Sallie Mae Servicing
L.P., EFS Services,  Inc., ACS Educational Services,  Inc.,  Pennsylvania Higher
Education Assistance Agency, Great Lakes Educational Loan Services, Inc. and any
other  additional  Servicer,  subservicer  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.

         "Servicer's  Report" shall mean the servicer reports to be furnished to
the Issuer by a Servicer pursuant to its Servicing Agreement.

         "Servicing  Agreement"  shall  mean,  collectively,  (a) the  Servicing
Agreement,  dated as of January 1, 2004, between the Issuer and Nelnet, Inc., as
supplemented  and  amended  pursuant to its terms,  and (b) any other  servicing
agreement  or  subservicing   agreement  entered  into  with  a  Servicer  or  a
subservicer.

         "Servicing  Fee"  shall  mean the fees and  expenses  due to a Servicer
under the terms of its 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 Higher  Education
Act, or similar allowances,  if any, authorized from time to time by federal law
or regulation.

         "State" shall mean the State of Nebraska.

         "Stated  Maturity"  shall mean the date  specified in the Series 2004-1
Notes as the fixed date on which  principal  of such Series  2004-1 Notes is due
and payable.

         "Student Loan Purchase  Agreement" shall mean a loan purchase agreement
entered  into for the  purchase of Eligible  Loans into the Trust  Estate from a
third party seller, substantially in the form attached as Exhibit K hereto.

         "Subaccount" shall mean any of the subaccounts which may be created and
established within any Account pursuant to this Indenture.

         "Subordinate   Interest  Trigger"  shall  mean,  with  respect  to  any
Distribution  Date,  the  Total  Parity  Ratio is less  than  97% or such  other
percentage that satisfies the Rating Agency  Condition,  determined after giving
effect  to the  distribution  of any  amounts  in the  Collection  Fund  on such
Distribution Date.

         "Subordinate  Obligations"  shall  mean  the  Class  B  Notes  and  any
Derivative  Product,  the  priority  of  payment  of which is equal with that of
interest on the Class B Notes.

                                       22
<PAGE>

                                                                    Exhibit 4.11

         "Supplemental  Indenture" shall mean an agreement  supplemental  hereto
executed pursuant to Article VIII hereof.

         "Supplemental  Interest  Deposit  Amount" shall mean, for any Quarterly
Distribution Date and each of the Class A-1A Supplemental  Interest Account, the
Class A-1B Supplemental  Interest Account,  the Class A-2 Supplemental  Interest
Account  and the  Class A-3  Supplemental  Interest  Account,  the  amount  that
satisfies  the  Rating  Agency   Condition   obtained  in  connection  with  the
remarketing of Non-amortizing  Reset Rate Notes. For any Quarterly  Distribution
Date on which the balance in the  corresponding  Class A-1A Redemption  Account,
Class A-1B  Redemption  Account,  the Class A-2 Redemption  Account or Class A-3
Redemption  Account  is  zero  (after  taking  into  account  all  deposits  and
withdrawals to be made on such Quarterly  Distribution  Date), the corresponding
Supplemental Interest Deposit Amount will be zero.

         "Supplemental  Interest  Fund" shall mean the Fund by that name created
in Section  5.01(g)  hereof  and  further  described  in  Section  5.08  hereof,
including any Accounts and Subaccounts created therein.

         "Termination Payment" shall mean, with respect to a Derivative Product,
any  termination  payment  payable by the Issuer under such  Derivative  Product
relating to an early termination of such Derivative Product after the occurrence
of a termination event or event of default specified in such Derivative Product,
including any Priority Termination Payment.

         "Total  Parity  Ratio"  shall  mean,   with  respect  to  any  date  or
calculation,  the percentage  equivalent of a fraction of (a) aggregate Value of
the Trust Estate, less (i) amounts on deposit in the Redemption Accounts for the
Series 2004-1 Notes, (ii) amounts that were received under the Interest Rate Cap
Derivative  Agreement,  and (iii) amounts on deposit in the Remarketing Fee Fund
over (b) the  Outstanding  Amount of the Series  2004-1  Notes,  less amounts on
deposit in the Redemption Accounts for the Series 2004-1 Notes.

         "Trust  Estate"  shall  mean  the  property  described  as  such in the
granting clauses hereto.

         "U.S.  Person"  shall  have  the  meaning  assigned  to  such  term  in
Regulation S.

         "Value" on any  calculation  date when  required  under this  Indenture
shall mean the value of the Trust Estate  calculated  by the Issuer with respect
to clause (a) and by the  Indenture  Trustee with respect to clauses (b) and (c)
as follows:

                  (a) with respect to any  Eligible  Loan owned by the Issuer as
         of the calculation  date, the unpaid  principal amount thereof plus any
         accrued but unpaid  interest,  Interest  Benefit  Payments  and Special
         Allowance Payments;

                  (b) with  respect to any funds of the  Issuer  held under this
         Indenture and on deposit in any  commercial  bank or as to any banker's
         acceptance or repurchase agreement or investment  contract,  the amount
         thereof plus accrued but unpaid interest; and

                  (c) with respect to any Investment  Securities,  the par value
         thereof, plus accrued but unpaid interest.

                                       23
<PAGE>

                                                                    Exhibit 4.11

         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.

                                   ARTICLE II

                             THE SERIES 2004-1 NOTES

         Section 2.01. Series 2004-1 Note Details.

                  (a) The aggregate  principal amount of the Series 2004-1 Notes
         which may be initially  authenticated  and  delivered  pursuant to this
         Indenture is limited to  $1,010,000,000  except for Series 2004-1 Notes
         authenticated and delivered upon transfer of, or in exchange for, or in
         lieu of Series 2004-1 Notes  pursuant to Sections 2.03 and 2.04 hereof.
         The Series  2004-1  Notes shall be issued in six (6)  separate  classes
         (each a "Class")  consisting  of the Class A-1A  Notes,  the Class A-1B
         Notes,  Class A-2 Notes,  Class A-3 Notes,  the Class B-1 Notes and the
         Class B-2 Notes.  The Series  2004-1  Notes shall be  issuable  only as
         fully registered notes in Authorized  Denominations.  The Series 2004-1
         Notes of each Class  shall each be  lettered  "R" and shall be numbered
         separately  from 1 upwards,  respectively.  The Class A-1A  Notes,  the
         Class  A-1B  Notes,  the  Class  A-2  Notes  and the  Class  A-3  Notes
         (collectively,  the  "Class A  Notes")  constitute  Senior  Obligations
         hereunder   and  the   Class   B-1   Notes  and  the  Class  B-2  Notes
         (collectively,  the "Class B Notes") constitute Subordinate Obligations
         hereunder.

                  The Class A Notes (the "Reset Rate  Notes")  shall be dated as
         of the Closing  Date and shall bear  interest  from the  Closing  Date,
         payable on each  Quarterly  Distribution  Date,  except that Reset Rate
         Notes which are issued  upon  transfer,  exchange or other  replacement
         shall bear interest from the most recent Quarterly Distribution Date to
         which interest has been paid, or if no interest has been paid, from the
         Closing  Date.  The Class A-1A  Notes and the Class  A-1B  Notes  shall
         mature on the Quarterly Distribution Date in May of 2019. The Class A-2
         Notes  and  the  Class  A-3  Notes  shall   mature  on  the   Quarterly
         Distribution  Date in August of 2030.  Interest on the Reset Rate Notes
         shall be computed pursuant to the applicable Day Count Basis. The terms
         of and definitions related to the Reset Rate Notes are found in Article
         I hereof and Appendix A hereto.

                  The Class B Notes (the "Auction Rate Notes") shall be dated as
         of the Closing  Date and shall bear  interest  from the  Closing  Date,
         payable on each  corresponding  Auction Rate Distribution  Date, except
         that  Auction  Rate Notes which are issued upon  transfer,  exchange or
         other replacement shall bear interest from the most recent Auction Rate
         Distribution  Date to which  interest has been paid,  or if no interest
         has been paid,  from the Closing  Date.  The  Auction  Rate Notes shall
         mature on February 25,  2036.  Interest on the Auction Rate Notes shall
         be computed on the basis of a 360-day year and actual days elapsed. The
         terms of and definitions related to the Auction Rate Notes are found in
         Article I hereof and Appendix B hereto.

                                       24
<PAGE>
                                                                    Exhibit 4.11

                  The  principal of each Class of the Series 2004-1 Notes due at
         its Stated  Maturity  or  redemption  in whole  shall be payable at the
         Principal  Office of the Indenture  Trustee,  or such other location as
         directed by the Indenture  Trustee,  or at the Principal  Office of its
         successor  in trust upon  presentation  and  surrender of such Class of
         Series  2004-1  Notes.  Payment of interest  and  principal,  including
         Principal  Reduction  Payments,  paid  upon  a  partial  redemption  or
         reduction  of any Series  2004-1  Note shall be made to the  Registered
         Owner thereof by check or draft mailed on the  applicable  Distribution
         Date by the Indenture Trustee to the Registered Owner at his address as
         it last appears on the registration books kept by the Indenture Trustee
         at the close of business on the Record Date for such Distribution Date.
         Payment of interest and  principal to a  Securities  Depository  or its
         nominee shall,  and at the written  request  addressed to the Indenture
         Trustee  of any  other  Registered  Owner  owning  at least  $1,000,000
         principal  amount of the Series  2004-1  Notes,  payments  of  interest
         shall,  be paid by wire  transfer  within the United States to the bank
         account  number filed no later than the Record Date with the  Indenture
         Trustee for such purpose. All payments on the Series 2004-1 Notes shall
         be made in lawful money of the United States of America.

                  (b) The  Auction  Rate Notes may be  offered  and sold only to
         Qualified  Institutional  Buyers in  reliance  on Rule 144A.  Except as
         otherwise provided in this Section,  the Auction Rate Notes in the form
         of one global  note for each  Stated  Maturity  of each Class  shall be
         registered in the name of the Securities  Depository or its nominee and
         ownership  thereof  shall  be  maintained  in  book-entry  form  by the
         Securities Depository for the account of the Agent Members.  Initially,
         each Auction Rate Note shall be  registered  in the name of CEDE & Co.,
         as the  nominee of DTC.  The Reset  Rate Notes may be offered  and sold
         only to Qualified Institutional Buyers in reliance on Rule 144A or to a
         Non-U.S.  Person  outside  the United  States of America in reliance on
         Regulation  S, as  applicable.  Except as  otherwise  provided  in this
         Section, Reset Rate Notes of each Class sold to Qualified Institutional
         Buyers in reliance on Rule 144A will be  represented  by interests in a
         Rule  144A   global   registered   note   certificate   (a  "Rule  144A
         Certificate")  and Reset  Rates  Notes of each Class  sold to  Non-U.S.
         Person outside the United States of America in reliance on Regulation S
         will  be  represented  by  a  Regulation  S  global   registered   note
         certificate (a "Regulation S  Certificate")  for each Stated  Maturity.
         The Rule 144A  Certificate  will be  deposited on the Closing Date with
         the Indenture  Trustee,  as custodian for DTC (the "DTC Custodian") and
         registered  in the name of CEDE & Co. as initial  nominee for DTC.  The
         aggregate principal amount of the Rule 144A Certificate  representing a
         Class  of the  Class A Notes  may  from  time to time be  increased  or
         decreased by adjustments  made on the records of the Indenture  Trustee
         or DTC or its nominee, as the case may be, as hereinafter provided. The
         Regulation S Certificate will be deposited on the Closing Date with the
         DTC  Custodian  and  registered  in the name of CEDE & Co.  as  initial
         nominee for DTC for the accounts of Morgan  Guaranty  Trust  Company of
         New York,  Brussels,  as operator of Euroclear,  and  Clearstream.  The
         aggregate principal amount of the Regulation S Certificate representing
         a Class of the  Class A Notes  may from  time to time be  increased  or
         decreased by adjustments  made on the records of the Indenture  Trustee
         or DTC or its nominee, as the case may be, as hereinafter  provided. At
         all  times,  there  will be only  one  Rule  144A  Certificate  and one
         Regulation S Certificate for each Class of the Reset Rate Notes. At all
         times,  the entire  Outstanding  Amount of each Class of the Reset Rate
         Notes will be

                                       25
<PAGE>

                                                                    Exhibit 4.11

         allocated   between  the   corresponding   Rule  144A  Certificate  and
         Regulation  S  Certificate.  Ownership of the Reset Rate Notes shall be
         maintained  in book-entry  form by the  Securities  Depository  for the
         account of the Agent  Members.  Except as provided in subsection (d) of
         this Section, the Series 2004-1 Notes may be transferred,  in whole but
         not in part,  only to the  Securities  Depository  or a nominee of such
         Securities  Depository or to a successor Securities Depository selected
         or approved by the Issuer or to a nominee of such successor  Securities
         Depository.  Each global note shall bear a legend  substantially to the
         following effect: "Except as otherwise provided in the Indenture,  this
         global  note  may be  transferred,  in whole  but not in part,  only to
         another  nominee  of  the  Securities  Depository  or  to  a  successor
         Securities  Depository  or  to  a  nominee  of a  successor  Securities
         Depository."

                  (c) Except as otherwise  provided  herein,  the Issuer and the
         Indenture  Trustee  shall have no  responsibility  or  obligation  with
         respect to (i) the accuracy of the records of any Securities Depository
         or any Agent Member with respect to any beneficial  ownership  interest
         in the Series  2004-1  Notes,  (ii) the  delivery to any Agent  Member,
         beneficial owner of the Series 2004-1 Notes or other Person, other than
         the  Securities  Depository,  of any notice with  respect to the Series
         2004-1 Notes or (iii) the payment to any Agent Member, beneficial owner
         of the Series 2004-1 Notes or other Person,  other than the  Securities
         Depository,  of any amount with respect to the principal of or interest
         on the Series 2004-1 Notes. So long as the  certificates for the Series
         2004-1  Notes issued under this  Indenture  are not issued  pursuant to
         subsection  (d) of this Section,  the Issuer and the Indenture  Trustee
         may  treat  the  Securities  Depository  as,  and deem  the  Securities
         Depository to be, the absolute owner of the Series 2004-1 Notes for all
         purposes whatsoever,  including, without limitation, (A) the payment of
         principal  of and  interest on such  Series  2004-1  Notes,  (B) giving
         notices of  redemption  and other  matters  with respect to such Series
         2004-1 Notes and (C) registering  transfers with respect to such Series
         2004-1 Notes. In connection with any notice or other  communication  to
         be provided to the Registered  Owners pursuant to this Indenture by the
         Issuer or the  Indenture  Trustee  with respect to any consent or other
         action  to be  taken  by  the  Registered  Owners,  the  Issuer  or the
         Indenture  Trustee,  as the case may be, shall  establish a record date
         for such  consent or other  action  and, if the  Securities  Depository
         shall  hold  all  of the  Series  2004-1  Notes,  give  the  Securities
         Depository notice of such record date not less than 15 calendar days in
         advance of such record date to the extent possible.  Such notice to the
         Securities   Depository   shall  be  given  only  when  the  Securities
         Depository is the sole Registered Owner.

                  (d) If at any  time the  Securities  Depository  notifies  the
         Issuer and the  Indenture  Trustee  that it is  unwilling  or unable to
         continue as  Securities  Depository  with  respect to any or all of the
         Series 2004-1 Notes or if at any time the Securities  Depository  shall
         no longer  be  registered  or in good  standing  under  the  Securities
         Exchange Act or other applicable  statute or regulation and a successor
         Securities  Depository  is not  appointed by the Issuer  within 90 days
         after the Issuer receives notice or becomes aware of such condition, as
         the  case  may be,  subsections  (b) and (c) of this  Section  shall no
         longer be  applicable  and the Issuer shall  execute and the  Indenture
         Trustee shall  authenticate and deliver  certificates  representing the
         Series  2004-1 Notes as provided  below.  In  addition,  the Issuer may
         determine  at any time that the Series  2004-1 Notes

                                       26
<PAGE>

                                                                    Exhibit 4.11

         shall no longer be  represented  by  Global  Certificates  and that the
         provisions of  subsections  (b) and (c) of this Section shall no longer
         apply to the Series  2004-1  Notes.  In such  event,  the Issuer  shall
         execute  and the  Indenture  Trustee  shall  authenticate  and  deliver
         certificates  representing  the Series 2004-1 Notes as provided  below.
         Certificates  for the Series  2004-1  Notes  issued in  exchange  for a
         Global Certificate  pursuant to this subsection (d) shall be registered
         in  such  names  and   Authorized   Denominations   as  the  Securities
         Depository,   pursuant  to  instructions  from  the  Agent  Members  or
         otherwise,  shall  instruct in writing to the Issuer and the  Indenture
         Trustee,  and upon which written instructions the Indenture Trustee may
         rely  without  investigation.  The  Indenture  Trustee  shall  promptly
         deliver such  certificates  representing the Series 2004-1 Notes to the
         Persons in whose names such Series 2004-1 Notes are so registered.

                  (e) Any Series 2004-1 Notes issued to Qualified  Institutional
         Buyers  who are  U.S.  Persons  and are not  affiliates  of the  Issuer
         pursuant  to Rule 144A will be  issued as Rule 144A  Certificates.  Any
         Reset Rate Notes issued to Non-U.S.  Persons  pursuant to  Regulation S
         will be issued as Regulation S Certificate.

         Section 2.02. Execution of Series 2004-1 Notes. The Series 2004-1 Notes
shall be  executed  in the name and on  behalf of the  Issuer  by the  manual or
facsimile  signature of any of its Authorized  Officers.  Any Series 2004-1 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,
notwithstanding that at the date of authentication,  issuance or delivery,  such
person may have ceased to hold such office.  The  Indenture  Trustee  shall upon
Issuer Order authenticate and deliver the Series 2004-1 Notes for original issue
in an aggregate  principal  amount of  $1,010,000,000.  The aggregate  principal
amount of the Series  2004-1 Notes  Outstanding  at any time may not exceed such
amount.  Each Series 2004-1 Note shall be dated the date of its  authentication.
On each  Spread  Determination  Date,  upon  receipt  of an  Issuer  Order,  the
Indenture Trustee shall deliver a revised Schedule A for the Reset Rate Notes to
the DTC Custodian.

         Section  2.03.  Registration,  Transfer and  Exchange of Series  2004-1
Notes; Persons Treated as Registered Owners.

                  (a) The Issuer shall cause books for the  registration and for
         the transfer of the Series  2004-1 Notes as provided in this  Indenture
         to be kept by the  Indenture  Trustee  which is  hereby  appointed  the
         registrar and transfer agent of the Issuer for the Series 2004-1 Notes.
         Notwithstanding  such appointment and with the prior written consent of
         the Issuer,  the  Indenture  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
         registrar  and  transfer  agent  for  the  Series  2004-1  Notes.  Upon
         surrender  for  transfer of any Series  2004-1  Note at the  designated
         corporate  trust office of the  Indenture  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 Indenture Trustee shall  authenticate and deliver
         in the name of the  transferee or  transferees  a new fully  registered
         Series 2004-1 Note or Series 2004-1 Notes of the same interest rate and
         for a like  Class

                                       27
<PAGE>

                                                                    Exhibit 4.11

         and  aggregate  principal  amount  of the  same  Stated  Maturity.  The
         transfer of each Series 2004 Note shall be subject to the  restrictions
         set forth in Appendix C hereto.

                  Series  2004-1  Notes  may  be  exchanged  at  the  designated
         corporate  trust office of the Indenture  Trustee for a like  aggregate
         principal  amount of fully  registered  Series 2004-1 Notes of the same
         Class,  interest rate and Stated Maturity in Authorized  Denominations.
         The Issuer shall execute and the Indenture  Trustee shall  authenticate
         and deliver Series 2004-1 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 Series
         2004-1 Note of any authorized  denomination  shall  constitute full and
         due  authorization of such denomination and the Indenture Trustee shall
         thereby be authorized to authenticate and deliver such fully registered
         Series 2004-1 Note.

                  The  Indenture  Trustee  shall not be  required to transfer or
         exchange any Series  2004-1 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 Indenture  Trustee
         shall not be required to transfer or exchange  any Series  2004-1 Note,
         which  Series  2004-1  Note or  portion  thereof  has been  called  for
         redemption.

                  As to any  Series  2004-1  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  Series 2004-1 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 Series 2004-1 Note to the
         extent of the sum or sums paid.

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

                  For  so  long  as  any  Class  of  Series   2004-1  Notes  are
         "restricted  securities"  within the meaning of Rule  144(a)(3)  of the
         Securities  Act,  (i) the  Administrator  will  provide  or cause to be
         provided to any holder of such Series 2004-1 Notes and any  prospective
         purchaser thereof designated by such a holder, upon the request of such
         holder  or  prospective  purchaser,  the  information  required  to  be
         provided to such holder or  prospective  purchaser  by Rule  144A(d)(4)
         under the Securities Act; and (ii) the Administrator  shall update such
         information from time to time in order to prevent such information from
         becoming  false and  misleading and will take such other actions as are
         necessary   to  ensure  that  the  safe  harbor   exemption   from  the
         registration  requirements of the Securities Act under Rule 144A is and
         will be available for resales of such Series 2004-1 Notes  conducted in
         accordance with Rule 144A.

                                       28
<PAGE>

                                                                    Exhibit 4.11

                  (b)  Notwithstanding  any provision to the contrary herein, so
         long as a Global  Certificate is held by or on behalf of DTC, transfers
         of a Global  Certificate,  in whole or in part,  shall  only be made in
         accordance with Section 2.01(b) and this subsection (b).

                           (i) Global  Certificates.  Subject  to clauses  (ii),
                  (iii) and (iv) of this subsection  (b),  transfers of a Global
                  Certificate  shall be limited to transfers of such Global Note
                  in  whole,  but  not  in  part,  to  nominees  of  DTC or to a
                  successor of DTC or such successor's nominee.

                           (ii)   Rule  144A   Certificate   to   Regulation   S
                  Certificate.  If a holder of a  beneficial  interest in a Rule
                  144A  Certificate  representing the Reset Rate Notes wishes at
                  any  time  to  exchange   its   interest  in  such  Rule  144A
                  Certificate for an interest in the corresponding  Regulation S
                  Certificate,  or to  transfer  its  interest in such Rule 144A
                  Certificate to a Person who wishes to take delivery thereof in
                  the form of an  interest  in the  corresponding  Regulation  S
                  Certificate,  such  holder  may,  subject  to the  immediately
                  succeeding sentence and the rules and procedures of Euroclear,
                  Clearstream  or DTC, as the case may be,  exchange or transfer
                  or cause the  exchange  or transfer  of such  interest  for an
                  equivalent   beneficial   interest   in   the   Regulation   S
                  Certificate.   Upon  receipt  by  the  Indenture  Trustee,  as
                  registrar, of:

                                    (A)  instructions  given in accordance  with
                           Euroclear,  Clearstream or DTC's  procedures,  as the
                           case may be, from an Agent  Member to instruct DTC to
                           cause to be  credited a  beneficial  interest  in the
                           Regulation  S  Certificate  in an amount equal to the
                           beneficial  interest in the Rule 144A  Certificate to
                           be exchanged or transferred; and

                                    (B) a written order given in accordance with
                           DTC's procedures containing information regarding the
                           participant  account  of DTC  and the  Euroclear  and
                           Clearstream   account  to  be   credited   with  such
                           increase,

                  then the Indenture Trustee, as registrar, will instruct DTC to
                  (1) reduce the principal  amount of the Rule 144A  Certificate
                  and  increase  the  principal   amount  of  the  Regulation  S
                  Certificate   by  the  aggregate   principal   amount  of  the
                  beneficial  interest  in  the  Rule  144A  Certificate  to  be
                  exchanged  or  transferred,  and (2)  credit  or  cause  to be
                  credited  to the  account  of the  Person  specified  in  such
                  instructions  a  beneficial   interest  in  the  Regulation  S
                  Certificate  equal to the reduction in the principal amount of
                  the Rule 144A Certificate.

                           (iii)   Regulation   S   Certificate   to  Rule  144A
                  Certificate.  If  a  holder  of  a  beneficial  interest  in a
                  Regulation  S  Certificate  representing  the Reset Rate Notes
                  wishes at any time to exchange its interest in such Regulation
                  S Certificate for an interest in a Rule 144A Certificate or to
                  transfer its interest in such  Regulation S  Certificate  to a
                  Person who wishes to take  delivery  thereof in the form of an
                  interest  in the  corresponding  Rule 144A  Certificate,  such
                  holder may, subject to the immediately succeeding sentence and
                  the rules and procedures of Euroclear and  Clearstream or DTC,
                  as the case may be, exchange or transfer or cause the

                                       29
<PAGE>

                                                                    Exhibit 4.11

                  exchange  or  transfer  of  such  interest  for an  equivalent
                  beneficial interest in the Rule 144A Certificate. Upon receipt
                  by the Indenture Trustee, as registrar, of:

                                    (A)  instructions  given in accordance  with
                           DTC's  procedure  from an Agent  Member  to  instruct
                           Euroclear  or  Clearstream  to cause to be credited a
                           beneficial  interest  in the  Rule  144A  Certificate
                           equal to the beneficial  interest in the Regulation S
                           Certificate to be exchanged or transferred, and

                                    (B) a written order given in accordance with
                           DTC's procedures containing information regarding the
                           participant account with DTC to be credited with such
                           increase,

                  then  Euroclear or Clearstream  or the Indenture  Trustee,  as
                  registrar, as the case may be, will instruct DTC to (i) reduce
                  the Regulation S Certificate and increase the principal amount
                  of the Rule 144A Certificate by the aggregate principal amount
                  of the beneficial  interest in the Regulation S Certificate to
                  be  transferred  or exchanged,  and (ii) credit or cause to be
                  credited  to the  account  of the  Person  specified  in  such
                  instructions   a   beneficial   interest   in  the  Rule  144A
                  Certificate  equal to the reduction in the principal amount of
                  the Regulation S Certificate.

                           (iv)  Certificated  Securities.  In the event  that a
                  Global Certificate is exchanged for the Series 2004-1 Notes in
                  definitive registered form without interest coupons,  pursuant
                  to Section  2.01(d)  hereof  such Series  2004-1  Notes may be
                  exchanged  for  one  another  only  in  accordance  with  such
                  procedures and restrictions as are substantially consistent as
                  determined by the Issuer and the  Indenture  Trustee to insure
                  that such transfers comply with Rule 144A, or, with respect to
                  the Reset Rate  Notes,  are to Non-U.S.  Persons and  non-U.S.
                  residents  (as  determined  for  purposes  of  the  Investment
                  Company  Act), or otherwise  comply with  Regulation S, as the
                  case may be.

                           (v) Transfer of Interests in the Global  Certificate.
                  Notwithstanding anything herein to the contrary,  transfers of
                  interests  in  a  Global   Certificate  may  be  made  (A)  by
                  book-entry   transfer  of  beneficial   interests  within  the
                  relevant  Securities  Depository  or  (B)(1)  in the  case  of
                  transfers  of  interests  in  a  Rule  144A  Certificate,   in
                  accordance with  subsection  (b)(ii) of this Section or (2) in
                  the  case  of   transfers   of  interest  in  a  Regulation  S
                  Certificate,  in accordance with subsection (b)(iii); provided
                  that in the case of any such transfer of interests pursuant to
                  clause (A) or (B) above,  such  transfer is made in accordance
                  with subsection (vi) below.

                           (vi) Restrictions on Transfers.

                                    (A) Transfers of interests in a Regulation S
                           Certificate to a U.S.  Person or a U.S.  resident (as
                           determined  for  purposes of the  Investment  Company
                           Act) shall be made by  delivery  of an  interest in a
                           Rule  144A   Certificate  and  shall  be  limited  to
                           transfers   made   pursuant  to  the

                                       30
<PAGE>

                                                                    Exhibit 4.11

                           provisions  of  subsection  (b)(iii) of this Section.
                           Beneficial  interests in a  Regulation S  Certificate
                           may only be held through Euroclear and Clearstream.

                                    (B) Any  transfer  of an  interest in a Rule
                           144A Certificate to a U.S. Person or a U.S.  resident
                           (as determined for purposes of the Investment Company
                           Act)  that  is not a  Qualified  Institutional  Buyer
                           shall be null and void and shall not be given  effect
                           for any purpose hereunder,  and the Indenture Trustee
                           shall  hold  any  funds   conveyed  by  the  intended
                           transferee   of  such  interest  in  such  Rule  144A
                           Certificate  in trust  for the  transferor  and shall
                           promptly  reconvey  such  funds  to  such  Person  in
                           accordance  with  the  written  instructions  thereof
                           delivered  to the  Indenture  Trustee at its  address
                           listed in Section 9.01 hereof

         Section 2.04.  Lost,  Stolen,  Destroyed  and  Mutilated  Series 2004-1
Notes. Upon receipt by the Indenture  Trustee of evidence  satisfactory to it of
the ownership of and the loss,  theft,  destruction  or mutilation of any Series
2004-1 Note and, in the case of a lost,  stolen or destroyed Series 2004-1 Note,
of indemnity  satisfactory  to it, and upon  surrender and  cancellation  of the
Series  2004-1  Note,  if  mutilated,  (a) the  Issuer  shall  execute,  and the
Indenture  Trustee shall  authenticate and deliver,  a new Series 2004-1 Note of
the same Class,  interest rate,  Stated Maturity and Authorized  Denomination in
lieu of such lost,  stolen,  destroyed or mutilated Series 2004-1 Note or (b) if
such lost, stolen,  destroyed or mutilated Series 2004-1 Note shall have matured
or have been called for  redemption,  in lieu of executing and  delivering a new
Series 2004-1 Note as aforesaid, the Issuer may pay such Series 2004-1 Note. Any
such  new  Series  2004-1  Note  shall  bear  a  number  not   contemporaneously
outstanding.  The  Registered  Owner for any such new Series  2004-1 Note may be
required to pay all taxes and governmental  charges and all expenses and charges
of the Issuer and of the Indenture  Trustee in  connection  with the issuance of
such Series  2004-1 Note.  All Series  2004-1 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 Series 2004-1 Notes, negotiable instruments
or other securities.

         Section 2.05.  Forms of Series 2004-1 Notes. The Class A Notes shall be
in  substantially  the form set  forth in  Exhibit  A  hereto,  each  with  such
variations,  omissions and  insertions  as may be  necessary.  The Class B Notes
shall be in  substantially  the form set forth in  Exhibit  B hereto,  with such
variations, omissions and insertions as may be necessary.

         Section  2.06.  Indenture  Trustee's  Authentication  Certificate.  The
Indenture  Trustee's  authentication  certificate  upon the Series  2004-1 Notes
shall be  substantially  in the  forms  provided  in  Exhibits  A and B  hereto,
respectively.  No Series 2004-1 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 Indenture Trustee; and such certificate of the Indenture Trustee
upon any Series 2004-1 Note shall be conclusive  evidence and the only competent
evidence  that such Series  2004-1  Note has been  authenticated  and  delivered
hereunder. The Indenture Trustee's certificate of authentication shall be deemed
to have been duly executed by it if manually signed by an authorized  officer of
the

                                       31
<PAGE>

                                                                    Exhibit 4.11

Indenture  Trustee,  but it shall not be necessary that the same person sign the
certificate  of  authentication  on  all  of  the  Series  2004-1  Notes  issued
hereunder.

         Section 2.07.  Cancellation  and  Destruction of Series 2004-1 Notes by
the Indenture  Trustee.  Whenever any  Outstanding  Series 2004-1 Notes shall be
delivered to the Indenture 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 Series 2004-1
Notes shall be promptly  cancelled and,  within a reasonable  time,  cremated or
otherwise  destroyed by the Indenture  Trustee and counterparts of a certificate
of destruction evidencing such cremation or other destruction shall be furnished
by the Indenture Trustee to the Issuer upon request.

         Section 2.08. Temporary Series 2004-1 Notes. Pending the preparation of
definitive Series 2004-1 Notes, the Issuer may execute and the Indenture Trustee
shall  authenticate and deliver temporary Series 2004-1 Notes.  Temporary Series
2004-1 Notes shall be issuable as fully registered notes without coupons, of any
denomination,  and  substantially  in the form of the  definitive  Series 2004-1
Notes but with such  omissions,  insertions and variations as may be appropriate
for temporary Series 2004-1 Notes, all as may be determined by the Issuer. Every
temporary   Series   2004-1  Note  shall  be  executed  by  the  Issuer  and  be
authenticated  by  the  Indenture  Trustee  upon  the  same  conditions  and  in
substantially  the same manner,  and with like effect,  as the definitive Series
2004-1  Notes.  As promptly as  practicable  the Issuer shall  execute and shall
furnish  definitive  Series 2004-1 Notes and thereupon  temporary  Series 2004-1
Notes may be surrendered in exchange  therefor  without charge at the designated
corporate trust office of the Indenture Trustee, and the Indenture Trustee shall
authenticate  and deliver in exchange for such  temporary  Series 2004-1 Notes a
like  aggregate  principal  amount of definitive  Series 2004-1 Notes.  Until so
exchanged  the  temporary  Series  2004-1  Notes  shall be  entitled to the same
benefits under this Indenture as definitive Series 2004-1 Notes.

         Section 2.09.  Redemption of and  Principal  Reduction  Payments on the
Series 2004-1 Notes.

                  (a) Optional Redemption of the Reset Rate Notes. Each Class of
         the Reset Rate Notes is subject to optional redemption,  in whole only,
         at the option of the Issuer, from any source of funds on any Reset Date
         for such Class of the Reset Rate Notes on or after August 1, 2005, at a
         redemption  price equal to the principal amount thereof being redeemed,
         plus  accrued  interest,  if any,  and any Reset Rate Notes  Carry-over
         Amounts  (and any  accrued  interest  thereon)  due and payable on such
         Class of the Reset Rate Notes (as  described  in  Appendix A hereto) to
         such Reset Date.

                  (b)  Optional  Redemption  of Reset  Rate  Notes Upon a Failed
         Remarketing. Upon a sale of a Pro rata Portion of the Financed Eligible
         Loans after the declaration of a Failed  Remarketing for a Class of the
         Reset Rate Notes as provided in Section  2.05(c) or 2.07(a) of Appendix
         A hereto,  such Class of the Reset Rate Notes is subject to redemption,
         in whole  only,  on any Reset  Date on or after  August 1,  2005,  at a
         redemption  price equal to the principal amount thereof being redeemed,
         plus  accrued  interest,  if any,  and any Reset Rate Notes  Carry-over
         Amounts  (and any  accrued  interest  thereon)  due

                                       32
<PAGE>

                                                                    Exhibit 4.11

         and  payable on such Class of the Reset  Rate  Notes (as  described  in
         Appendix A hereto) to such Reset Date.

                  (c) Optional Redemption of Auction Rate Notes.  Subject to the
         provisions of subsection (j) of this Section, each Class of the Auction
         Rate Notes is subject to redemption  at the option of the Issuer,  from
         any  source  of  funds,  in  whole  or in  part,  on any  Auction  Rate
         Distribution  Date  for such  Class of the  Auction  Rate  Notes,  at a
         redemption  price equal to the principal amount thereof being redeemed,
         plus accrued  interest,  if any, and any Auction Rate Notes  Carry-over
         Amounts  (and any  accrued  interest  thereon)  due and payable on such
         Class of the Auction Rate Notes (as  described in Appendix B hereto) to
         such Auction Rate Distribution Date.

                  (d)  Mandatory  Principal  Reduction  Payments  on Reset  Rate
         Notes. The Registered  Owners of the Class A-1A Notes shall receive pro
         rata reductions of principal  pursuant to Principal  Reduction Payments
         to be made on  Quarterly  Distribution  Dates  (or on  Reset  Dates  as
         provided  in Section  5.05(b)  hereof)  from  amounts on deposit in the
         Class  A-1A  Redemption  Account  of the  Note  Payment  Fund  for such
         purpose,  the  Registered  Owners of the Class A-1B Notes shall receive
         pro rata  reductions  of  principal  pursuant  to  Principal  Reduction
         Payments to be made on Quarterly  Distribution Dates (or on Reset Dates
         as provided in Section  5.05(b)  hereof) from amounts on deposit in the
         Class  A-1B  Redemption  Account  of the  Note  Payment  Fund  for such
         purpose, the Registered Owners of the Class A-2 Notes shall receive pro
         rata reductions of principal  pursuant to Principal  Reduction Payments
         to be made on  Quarterly  Distribution  Dates  (or on  Reset  Dates  as
         provided  in Section  5.05(b)  hereof)  from  amounts on deposit in the
         Class A-2 Redemption  Account of the Note Payment Fund for such purpose
         and the Registered Owners of the Class A-3 Notes shall receive pro rata
         reductions of principal pursuant to Principal  Reduction Payments to be
         made on Quarterly  Distribution Dates (or on Reset Dates as provided in
         Section   5.05(b)   hereof)  from  amounts  on  deposit  in  the  Class
         A-3Redemption Account of the Note Payment Fund for such purpose, on any
         Quarterly  Distribution  Date (or on any  Reset  Dates as  provided  in
         Section  5.05(b)  hereof) from amounts  transferred to the Note Payment
         Fund  representing  Recoveries of Principal  (other than  Recoveries of
         Principal as a result of the voluntary sale of Financed Eligible Loans)
         or representing  amounts  transferred from the Collection Fund pursuant
         to Section  5.04(c)(xviii)  hereof.  Such amounts are  allocated to the
         Class A-1A Redemption Account,  the Class A-1B Redemption Account,  the
         Class A-2  Redemption  Account  and the Class  A-3  Redemption  Account
         pursuant to Section 5.05(a) hereof.

                                       33
<PAGE>

                                                                    Exhibit 4.11

                  (e) Mandatory  Redemption of the Reset Rate Notes. Upon a sale
         of the Financed  Eligible Loans after the Commercial Paper Rate Trigger
         has  occurred  as  provided  in Section  2.07(b) or 2.13 of  Appendix A
         hereto,  the Reset Rate Notes are subject to mandatory  redemption,  in
         whole only,  on any Quarterly  Distribution  Date on or after August 1,
         2005, at a redemption price equal to the principal amount thereof being
         redeemed,  plus accrued  interest,  if any (but not including any Reset
         Rate Notes Carry-over  Amounts, if any, except to the extent such Reset
         Rate Notes Carry-over Amounts is payable on such Quarterly Distribution
         Date  pursuant  to  Section   5.04(c)   hereof),   to  such   Quarterly
         Distribution Date, and a Make-whole Premium, if applicable.

                  (f) Mandatory Redemption of Auction Rate Notes.

                           (i) Subject to the  provisions of  subsection  (j) of
                  this  Section,  the Class B-1 Notes are  subject to  mandatory
                  redemption,  in whole or in part,  from  amounts on deposit in
                  the Class B-1 Redemption  Account of the Note Payment Fund for
                  such  purpose and the Class B-2 Notes are subject to mandatory
                  redemption,  in whole or in part,  from  amounts on deposit in
                  the Class B-2 Redemption  Account of the Note Payment Fund for
                  such purpose,  on any Auction Rate  Distribution Date for such
                  Class of the  Auction  Rate Notes and for which  notice can be
                  given  pursuant to subsection  (g) of this Section,  each at a
                  redemption price equal to the principal balance being redeemed
                  plus accrued  interest,  if any (but not including any Auction
                  Rate Notes  Carry-over  Amounts,  if any, except to the extent
                  such Auction Rate Notes Carry-over  Amounts is payable on such
                  Auction Rate  Distribution  Date  pursuant to Section  5.04(c)
                  hereof),  to such Auction Rate  Distribution Date from amounts
                  transferred to the Class B-1 Redemption  Account and the Class
                  B-2   Redemption   Account  of  the  Note  Payment   Fund,  as
                  appropriate,  representing Recoveries of Principal (other than
                  Recoveries of Principal as a result of the  voluntary  sale of
                  Financed Eligible Loans) or representing  amounts  transferred
                  from the  Collection  Fund pursuant to Section  5.04(c)(xviii)
                  hereof.  Recoveries of Principal  generated as a result of the
                  voluntary  sale of  Financed  Eligible  Loans shall be used to
                  redeem  Auction Rate Notes  pursuant to subsection (c) of this
                  Section.  Redemptions made pursuant to this subsection  (f)(i)
                  shall  be made on a pro rata  basis  (based  upon  Outstanding
                  Amounts) between the Classes of the Auction Rate Notes.

                           (ii) Upon a sale of the Financed Eligible Loans after
                  the Commercial  Paper Rate Trigger has occurred as provided in
                  Section 2.07(b) or 2.13 of Appendix A hereto, the Auction Rate
                  Notes are subject to mandatory  redemption,  in whole only, on
                  any Auction Rate Distribution Date for such Auction Rate Notes
                  and for which notice can be given  pursuant to subsection  (g)
                  of this Section,  at a redemption price equal to the principal
                  amount thereof being redeemed,  plus accrued interest,  if any
                  (but not including any Auction Rate Notes Carry-over  Amounts,
                  if  any,   except  to  the  extent  such  Auction  Rate  Notes
                  Carry-over   Amounts   is  payable   on  such   Auction   Rate
                  Distribution Date pursuant to Section 5.04(c) hereof), to such
                  Auction Rate Distribution Date.

                                       34
<PAGE>

                                                                    Exhibit 4.11

                  (g) Notice of Redemption and Principal Reduction Payments. The
         Indenture  Trustee shall cause notice of any redemption of Auction Rate
         Notes to be given by mailing a copy of the notice by  first-class  mail
         to the Auction  Agent and to the  Registered  Owner of the Auction Rate
         Notes  designated  for redemption in whole or in part, at their address
         as the same shall last appear upon the registration books, in each case
         not less than 10 days prior to the redemption date; provided,  however,
         that  failure to give such  notice,  or any defect  therein,  shall not
         affect the  validity  of any  proceedings  for the  redemption  of such
         Auction  Rate  Notes  for  which  no such  failure  or  defect  occurs.
         Preferably  five,  but not less than two  Business  Days  prior to each
         Quarterly  Distribution Date on which Principal Reduction Payments will
         be made on the Class A Notes or on which the Reset Rate Notes are to be
         redeemed,  the  Indenture  Trustee  shall cause notice of any reduction
         pursuant to subsection (d) of this Section or any  redemption  pursuant
         to  subsection  (a),  (b),  (e) or (i) of this  Section  to be given by
         mailing a copy of the notice by first  class mail to the  Administrator
         and Registered  Owners of the Class of the Class A Notes designated for
         reduction,  in whole or in part,  or redemption at their address as the
         same  shall  last  appear  upon the  registration  books on such  date;
         provided,  however,  that  failure to give such  notice,  or any defect
         therein,  shall not  affect the  validity  of any  proceedings  for the
         reduction or redemption of such Class A Notes.

                  In addition,  preferably  five, but not less than two Business
         Days prior to each Quarterly  Distribution  Date, the Indenture Trustee
         shall send the Securities Depository written notice with respect to the
         dollar amount per $1,000 original  principal amount of the Class of the
         Class A  Notes  that  the  Indenture  Trustee  will  be  paying  to the
         Securities Depository on the Quarterly Distribution Date. The Indenture
         Trustee may, to the extent  necessary to avoid  payments of  fractional
         cents,  reduce scheduled  payments by up to $1,000 for each Class. Such
         notices,  which shall  clearly  indicate that they relate to a pro rata
         reduction  of  principal  of such  Class of the  Class A  Notes,  shall
         contain the Ending Balance Factor and the Indenture  Trustee  contact's
         name and  telephone  number,  shall be sent by facsimile (or such other
         method  designated  by the  Securities  Depository)  to the  Securities
         Depository's Dividend Department at (212) 855-4555.

                  (h) Partial Redemption.

                           (i) If less than all of a Class of the  Auction  Rate
                  Notes are to be redeemed  pursuant to subsection (c) or (f) of
                  this Section,  such Auction Rate Notes to be redeemed shall be
                  selected by lot in Authorized  Denominations in such manner as
                  the Indenture Trustee shall determine.

                           (ii)  In  case  an   Auction   Rate   Note  is  of  a
                  denomination larger than an Authorized Denomination, a portion
                  of such Auction Rate Note (in an Authorized  Denomination) may
                  be  redeemed.  Upon  surrender  of any  Auction  Rate Note for
                  redemption  in part only,  the Issuer  shall  execute  and the
                  Indenture  Trustee  shall  authenticate  and  deliver  to  the
                  Registered  Owner thereof,  the cost of which shall be paid by
                  the Issuer,  a new Auction  Rate Note or Auction Rate Notes of
                  the same Class in  Authorized  Denominations  in an  aggregate
                  principal  amount  equal  to  the  unredeemed  portion  of the
                  Auction Rate Note surrendered.

                                       35
<PAGE>

                                                                    Exhibit 4.11

                  (i) Extraordinary  Optional Redemption of Series 2004-1 Notes.
         The Series  2004-1 Notes are subject to redemption at the option of the
         Issuer  exercised  by an Issuer  Order  (which  Issuer  Order  shall be
         received by the  Indenture  Trustee not less than 16 days prior to such
         redemption or such lesser  period agreed to by the Indenture  Trustee),
         in whole only, on any Distribution  Date on which the aggregate current
         principal  balance of the Series  2004-1 Notes is less than or equal to
         10% of the initial  aggregate  principal  balance of the Series  2004-1
         Notes on the  Closing  Date,  at a  redemption  price  equal to (A) the
         principal   balance  plus  accrued  interest  to  the  date  fixed  for
         redemption and (B) any applicable Reset Rate Notes  Carry-over  Amount,
         Auction Rate Notes Carry-over Amount and interest accrued on such Reset
         Rate Notes Carry-over  Amount and Auction Rate Notes Carry-over  Amount
         to the date fixed for  redemption,  from the proceeds of funds received
         by the Indenture Trustee and deposited in the Note Payment Fund and the
         Reserve Fund,  and the Issuer shall deposit or cause to be deposited in
         or transferred to the Note Payment Fund an amount  sufficient to redeem
         all of the Series 2004-1 Notes,  less amounts on deposit in the Reserve
         Fund.  On such  redemption  date the Indenture  Trustee shall  transfer
         amounts in the  Reserve  Fund to the Note  Payment  Fund and effect the
         redemption of all the Series 2004-1 Notes.

                  (j)  Restrictions on the Redemption of Auction Rate Notes. All
         of the Reset Rate Notes shall be redeemed  prior to  redemption  of any
         Auction Rate Notes;  provided,  however,  upon the Indenture  Trustee's
         receipt of an Issuer Order  certifying  that (A) the Total Parity Ratio
         exceeds 101% and (B) the Senior  Parity  Ratio  exceeds  104%,  or such
         other  percentages  that  satisfy  the  Rating  Agency  Condition,  the
         Indenture  Trustee may redeem Auction Rate Notes while Reset Rate Notes
         remain Outstanding until the Aggregate Value of the Trust Estate to the
         Outstanding  Amount of the Series  2004-1 Notes  equals the  percentage
         described  in  this  sentence  after  giving  effect  to  the  proposed
         redemption   of  Auction  Rate  Notes.   The   Indenture   Trustee  may
         conclusively  rely  upon  such  certification  without  duty  to  know,
         determine or further examine such Issuer Order.

         Section 2.10.  Delivery of Series 2004-1 Notes.  Upon the execution and
delivery  of this  Indenture,  the  Issuer  shall  execute  and  deliver  to the
Indenture Trustee and the Indenture Trustee shall authenticate the Series 2004-1
Notes and deliver them to appropriate Securities Depositories and as hereinafter
in this Section provided.

         Prior to the  delivery  by the  Indenture  Trustee of any of the Series
2004-1  Notes,  there shall have been filed with or delivered  to the  Indenture
Trustee the following:

                  (a) A resolution duly adopted by the Issuer,  certified by the
         Secretary  or  other  Authorized   Officer  thereof,   authorizing  the
         execution and delivery of this Indenture, the Assignment Agreement, the
         Escrow Reserve  Agreement,  the Eligible  Lender Trust  Agreement,  the
         Auction Agent Agreement,  each Broker-Dealer Agreement, the Remarketing
         Agreement,  the initial  Custodian  Agreement,  the  initial  Servicing
         Agreement,   the  Administration   Agreement,  the  initial  Investment
         Agreement and the issuance of the Series 2004-1 Notes.

                  (b) Duly executed copies of the documents listed in subsection
         (a) of this Section.

                                       36
<PAGE>

                                                                    Exhibit 4.11

                  (c) Rating  letters from each Rating  Agency  stating (i) that
         the Class A Notes have been  rated  "AAA" by Fitch and S&P and "Aaa" by
         Moody's;  and (ii) that the Class B Notes have been rated "AA" by Fitch
         "AA-" by S&P and "Aa" by Moody's.

                  (d) Upon the issuance of the Series  2004-1  Notes,  an amount
         equal to the Reserve Fund Requirement shall be deposited in the Reserve
         Fund.

                  (e) The Indenture  Trustee shall have received a written order
         from the Issuer to authenticate and deliver the Series 2004-1 Notes.

         Section 2.11. Deposit of Series 2004-1 Note Proceeds. Upon the issuance
and delivery of the Series 2004-1 Notes, the Indenture Trustee shall deposit the
net  proceeds  thereof  (i.e.,  net of an initial  issue  discount of $2,415) as
follows:

                  (a) an amount equal to  $14,571,928  shall be deposited to the
         Collection Fund;

                  (b) an amount  equal to  $2,057,370  shall be deposited to the
         Remarketing Fee Fund;

                  (c) an amount  equal to  $2,525,000  shall be deposited to the
         Reserve Fund; and

                  (d) the  remainder  ($990,843,287)  shall be  deposited to the
         Acquisition Fund.

                                  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, regardless of the time or times
of their  issuance  or  maturity,  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.

                  (a) The  Issuer  reserves  the right to issue  other  notes or
         obligations  which do not  constitute  or  create  a lien on the  Trust
         Estate, subject to receipt of a Rating Confirmation.

                  (b) The Issuer shall not  commingle the Funds  established  by
         this Indenture with funds,  proceeds,  or investments of funds relating
         to other  issues or series of notes  heretofore  or  hereafter  issued,
         except to the extent  such  permitted  commingling  is  required by the
         Indenture  Trustee  for  ease  in  administration  of  its  duties  and
         responsibilities;  provided, however, that should the Indenture Trustee
         require such permitted  commingling,  it shall keep complete records in
         order that the funds, proceeds,

                                       37
<PAGE>
                                                                    Exhibit 4.11

         or  investments  under this Indenture may at all times be identified by
         source and application, and if necessary, separated.

                  (c) 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 (or
         the Eligible Lender Trustee) 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 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 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 Indenture 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 Senior Obligations and the Subordinate  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 Indenture
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 Indenture
Trustee may receive, from time to time, Counterparty Payments for the account of
the Issuer.  No  Derivative  Product  shall be entered into unless the Indenture
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
Series 2004-1 Notes.

                                       38
<PAGE>
                                                                    Exhibit 4.11

                                   ARTICLE IV

                       PROVISIONS APPLICABLE TO THE NOTES;
                              DUTIES OF THE ISSUER

         Section 4.01.  Payment of Principal,  Interest and Premium.  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  and any  premium  required  for the
retirement of said  Obligations by purchase or redemption  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 of any Financed Eligible
Loans, which shall be held only by the Indenture Trustee or its agent or bailee.

         Section 4.02.  Representations and Warranties of the Issuer. The Issuer
represents and warrants that it is duly  authorized  under the laws of the State
to create and issue the Series  2004-1  Notes and to execute  and  deliver  this
Indenture  and any  Derivative  Product and to make the pledge to the payment of
Series  2004-1  Notes and any Issuer  Derivative  Payments  hereunder,  that all
necessary  action on the part of the Issuer and the Board of  Directors  for the
creation and issuance of the Series  2004-1 Notes and the execution and delivery
of this  Indenture  and any  Derivative  Product  has been duly and  effectively
taken;  and that the Series 2004-1 Notes in the hands of the  Registered  Owners
thereof and the Issuer Derivative Payments are and will be valid and enforceable
special limited obligations of the Issuer secured by and payable solely from the
Trust Estate.

         Section 4.03.  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 Indenture  Trustee  shall  reasonably
require for the better conveying, transferring, and pledging and confirming unto
the Indenture Trustee, all and singular,  the properties  constituting the Trust
Estate hereby  transferred  and pledged,  or intended so to be  transferred  and
pledged.

         Section 4.04. 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, and will provide the Indenture Trustee
         with copies of all such statements.

                  (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,  and will  punctually  perform  all
         duties

                                       39
<PAGE>
                                                                    Exhibit 4.11

         required by the Articles of Incorporation  and Bylaws of the Issuer 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 Series 2004-1 Notes and any Derivative Product.

                  (e) The Issuer, upon written request of the Indenture Trustee,
         will  permit at all  reasonable  times  the  Indenture  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 Indenture Trustee
         such other  information  as it may  reasonably  request.  The Indenture
         Trustee  shall be under  no duty to make  any such  examination  unless
         requested in writing to do so by the Registered Owners of not less than
         a majority of the  principal  amount of the Series  2004-1  Notes,  and
         unless such Registered  Owners shall have offered the Indenture 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  Indenture  Trustee and each Rating  Agency within 150
         days of the close of each Fiscal Year.  The Indenture  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  Indenture  Trustee or its
         agent or bailee to be held pursuant to this Indenture and pursuant to a
         Servicing Agreement or a Custodian Agreement.

                  (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  Indenture  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 Indenture  Trustee shall be
         under no obligation whatsoever to exercise any such privilege, claim or
         suit;  provided,  however,  that the  Indenture  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
         Indenture Trustee's agent or bailee pursuant to a Custodian  Agreement)
         so long as such loans are subject to the lien of this Indenture.

                  (i) The Issuer  shall  notify the  Indenture  Trustee and each
         Rating Agency in writing prior to entering into any Derivative  Product
         and shall not enter into any  Derivative  Product  unless the Indenture
         Trustee has received a Rating Confirmation.

                                       40
<PAGE>
                                                                    Exhibit 4.11

         Section 4.05.  Enforcement  of Servicing  Agreements.  The Issuer shall
comply with and shall require each 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 each
         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 subsection (h) of this Section;

                  (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 each Servicer under its
         Servicing Agreement in accordance with the terms thereof;

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

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

                  (g) the Issuer  shall  cause each  Servicer  to deliver to the
         Indenture  Trustee and the Issuer,  on or before April 30 of each year,
         beginning with April 30, 2005, a certificate  stating that (i) a review
         of the activities of such Servicer  during the preceding  calendar year
         and of its  performance  under its  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,  such
         Servicer  has  fulfilled  all  its  obligations   under  its  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; 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 4.06.  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

                                       41
<PAGE>
                                                                    Exhibit 4.11

investments or an undivided interest therein may be made in any manner agreeable
to the Issuer and the Indenture  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 4.07. Additional Covenants with Respect to the Higher Education
Act. The Issuer  covenants that it will cause each of the Indenture  Trustee and
the  Eligible  Lender  Trustee to be, or replace the  Indenture  Trustee and the
Eligible Lender Trustee with, an Eligible Lender under the Higher Education 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 Higher Education
Act or Regulations adopted thereunder require an Eligible Lender to be the owner
or holder of such Eligible Loans;  provided,  however,  that nothing above shall
prevent  the Issuer  from  delivering  the  Eligible  Loans to a  Servicer  or a
Guaranty Agency.  The Registered  Owners of the Series 2004-1 Notes shall not in
any circumstances be deemed to be the owner or holder of the Eligible Loans.

         The Issuer, or its designated  agent,  shall be responsible for each of
the following actions with respect to the Higher Education Act:

                  (a) the Issuer, through its Authorized  Representative,  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, through its Authorized  Representative,  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;

                  (c) the Issuer, through its Authorized  Representative,  shall
         cause the Financed  Eligible  Loans to be serviced by entering into one
         or more Servicing Agreements or other agreement with a Servicer for the
         collection of payments made for, and the administration of the accounts
         of, the Financed Eligible Loans;

                  (d) the Issuer, through its Authorized  Representative,  shall
         comply, and shall cause all of its officers,  directors,  employees and
         agents to comply,  with the provisions of the Higher  Education Act and
         any  regulations  or rulings  thereunder,  with respect to the Financed
         Eligible Loans;

                  (e) the Issuer, through its Authorized  Representative,  shall
         cause the benefits of the Guarantee  Agreements,  the Interest  Subsidy
         Payments and the Special  Allowance

                                       42
<PAGE>
                                                                    Exhibit 4.11

         Payments to flow to the Indenture Trustee.  The Indenture Trustee shall
         have no  liability  for actions  taken at the  direction of the Issuer,
         except for negligence or willful  misconduct in the  performance of its
         express  duties   hereunder.   The  Indenture  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, through its Authorized  Representative,  shall
         cause each Financed Eligible Loan evidenced by a Master Promissory Note
         in the form mandated by Section  432(m)(1) of the Higher  Education Act
         to be acquired pursuant to a Student Loan Purchase Agreement 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  Indenture  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
                  Indenture  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
                  Indenture   Trustee  to  file  a  UCC-1  financing   statement
                  identifying  the [Seller] as debtor and the Indenture  Trustee
                  as secured  party and  describing  the Loans sold  pursuant to
                  this  Agreement.  The  preparation  or  filing  of such  UCC-1
                  financing statement is solely for additional protection of the
                  Indenture Trustee's interest in the MPN Loans and shall not be
                  deemed to  contradict  the express  intent of the [Seller] and
                  the  Indenture  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."]

         Section 4.08. Financed Eligible Loans; Collections Thereof;  Assignment
Thereof. The Issuer, through one or more Servicers, 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 appropriate  Servicer.  The Issuer
will comply with the Higher  Education  Act and  Regulations  which apply to the
Program and to such Financed Eligible Loans.

         Section 4.09.  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, neither singly nor collectively,
shall be personally liable for any act or omission not willfully fraudulent.

         Section  4.10.  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.

                                       43
<PAGE>
                                                                    Exhibit 4.11

         Section  4.11.  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 Nebraska
corporation,  except as otherwise permitted by this Section.  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 corporation or entity; or
(c) permit one or more other  corporations  or entities to  consolidate  with or
merge into it. The preceding  restrictions in clauses (a), (b) and (c) shall not
apply  to a  transaction  if  the  transferee  or  the  surviving  or  resulting
corporation or entity,  if other than the Issuer,  by proper written  instrument
for the  benefit  of the  Indenture  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 4.12. Amendment of Student Loan Purchase Agreements. The Issuer
shall  notify  the  Indenture  Trustee  in  writing  of  any  proposed  material
amendments  to any existing  Student Loan Purchase  Agreement.  No such material
amendment shall become effective unless and until the Indenture Trustee consents
thereto  in  writing.  The  consent  of  the  Indenture  Trustee  shall  not  be
unreasonably  withheld  and  shall  not be  withheld  if the  Indenture  Trustee
receives  an opinion of counsel  acceptable  to them that such an  amendment  is
required by the Higher  Education Act and is not  materially  prejudicial to the
Registered Owners. Notwithstanding the foregoing, however, the Indenture 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 Indenture Trustee
may rely on an opinion of counsel to such effect.

         Section 4.13. Representations; Negative Covenants.

                  (a) The Issuer hereby makes the following  representations and
         warranties  to the  Indenture  Trustee on which the  Indenture  Trustee
         relies  in  authenticating  the  Series  2004-1  Notes and on which the
         Registered  Owners have relied in  purchasing  the Series 2004-1 Notes.
         Such  representations  and  warranties  shall  survive the grant of the
         Trust Estate to the Indenture Trustee pursuant to this Indenture.

                           (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.

                                       44
<PAGE>
                                                                    Exhibit 4.11

                           (iii)  Authorization.   The  Issuer  has  the  power,
                  authority and legal right to execute, deliver and perform this
                  Indenture  and to grant  the  Trust  Estate  to the  Indenture
                  Trustee and the  execution,  delivery and  performance of this
                  Indenture  and  grant of the  Trust  Estate  to the  Indenture
                  Trustee  have  been  duly  authorized  by  the  Issuer  by all
                  necessary corporate action.

                           (iv) Binding Obligation. This Indenture, assuming due
                  authorization,   execution   and  delivery  by  the  Indenture
                  Trustee,  constitutes a legal, valid and binding obligation of
                  the Issuer  enforceable  against the Issuer in accordance with
                  its 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)
                  asserting  the  invalidity of this  Indenture,  (B) seeking to
                  prevent  the  issuance  of  any  Series  2004-1  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 Closing Date.

                                       45
<PAGE>
                                                                    Exhibit 4.11

                           (viii)  Place  of  Business.  The  Issuer's  place of
                  business  and chief  executive  office is 121 South 13 Street,
                  Suite 201, Lincoln, NE 68508.

                           (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 thereof
                  for federal income tax and financial  accounting  purposes and
                  the Issuer  (through  the  Eligible  Lender  Trustee)  will be
                  treated as the owner of the  Financed  Eligible  Loans for all
                  purposes.  The  Issuer  further  intends  to treat the  Series
                  2004-1 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.  The  Issuer  has taken all steps  necessary  to
                  ensure  that it is  eligible  to file a  consolidated  federal
                  income tax return with National  Education Loan Network,  Inc.
                  and such returns will be filed for all taxable  years in which
                  the Series 2004-1 Notes are  Outstanding.  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  Education  Loan  Funding,  Inc.,"  formerly  known as
                  NEBHELP, Inc. and Nebraska Higher Education Loan Program, Inc.

                           (xii) Business Purpose. The Issuer has (i) originated
                  or (ii)  previously  acquired  or will  acquire  the  Financed
                  Eligible  Loans  conveyed to it under  student  loan  purchase
                  agreements  substantially  in the  form  of the  Student  Loan
                  Purchase  Agreement  attached  hereto as  Exhibit K 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 corporate formalities with
                  respect to its operations.

                           (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  Indenture
                  Trustee  without any intent to hinder,

                                       46
<PAGE>
                                                                    Exhibit 4.11

                  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  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 any  Seller.  The
                  Issuer  is not and  will  not be  involved  in the  day-to-day
                  management  of  any  Seller  or  the  Issuer's  parent  or any
                  affiliate.

                           (xvi) No Intercorporate  Transfers with any Seller or
                  Affiliates. Other than the transfer of assets and the transfer
                  of any Series  2004-1 Notes  pursuant to this  Indenture,  the
                  Issuer  does  not  engage  in  and  will  not  engage  in  any
                  intercorporate transactions with any Seller or its affiliates,
                  except as provided herein with respect to Program Expenses and
                  the  Administration  Agreement  or the payment of dividends 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 Sellers.

                  (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  Series  2004-1  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 Indenture  Trustee,  and to

                                       47
<PAGE>
                                                                    Exhibit 4.11

                  the extent Series 2004-1 Notes remain Outstanding, approval of
                  the Registered Owners and a Rating Confirmation;

                           (iv)  permit the  validity or  effectiveness  of this
                  Indenture,  any Supplemental  Indenture 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)  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
                  Series 2004-1 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  parent  or any  other  affiliate  and its  separate
                  corporate  existence  disregarded  in  any  federal  or  state
                  proceeding;

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

                           (x) other than certain  indemnifications  provided to
                  it by its parent,  the Issuer will not 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

                                       48
<PAGE>
                                                                    Exhibit 4.11

                  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  Indenture
         Trustee  hereunder on such date, on which the Indenture  Trustee relies
         in accepting  the Trust Estate.  Such  representations  and  warranties
         shall  survive the grant of the Trust Estate to the  Indenture  Trustee
         pursuant to this Indenture:

                           (i) Financed  Eligible Loans.  Each Financed Eligible
                  Loan financed by the Issuer shall  constitute an Eligible Loan
                  and  contain  the  characteristics  found  in a  Student  Loan
                  Purchase Agreement.

                           (ii)  Schedule  of  Financed   Eligible  Loans.   The
                  information  set forth in each  schedule of Financed  Eligible
                  Loans to the  Student  Loan  Purchase  Agreements  is true and
                  correct in all material respects as of the opening of business
                  on the Closing Date.

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

                           (iv)  All  Filings  Made.  All  filings   (including,
                  without limitation, UCC filings) necessary in any jurisdiction
                  to give  the  Indenture  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
                  Closing  Date  and  copies  of  the   file-stamped   financing
                  statements shall be delivered to the Indenture  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  promissory  notes  relating  to the  Financed
                  Eligible  Loans (other than the security  interest  created in
                  favor of the Indenture Trustee) to be created.

                           (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.

                           (vii) Not an Investment Company. The Issuer is not an
                  "investment  company"  within the  meaning  of the  Investment
                  Company  Act of  1940,  as

                                       49
<PAGE>
                                                                    Exhibit 4.11

                  amended,  or is exempt from all  provisions of the  Investment
                  Company Act of 1940, as amended.

                           (viii)  Binding  Obligations.   This  Indenture,  the
                  Series 2004-1 Notes and each Obligation constitutes the legal,
                  valid  and  binding  obligation  of  the  Issuer,  enforceable
                  against the Issuer in accordance with its terms, except (A) as
                  such  enforceability may be limited by applicable  bankruptcy,
                  insolvency,  reorganization,  moratorium or other similar laws
                  now or  hereafter  in effect,  affecting  the  enforcement  of
                  creditors' rights in general;  and (B) as such  enforceability
                  may be  limited  by  general  principles  of  equity  (whether
                  considered in a suit at law or in equity).

                           (ix) Valid Security Interest.  This Indenture creates
                  a valid and  continuing  security  interest (as defined in the
                  Uniform Commercial Code as in effect in the State of Nebraska)
                  in the  Financed  Eligible  Loans in  favor  of the  Indenture
                  Trustee,  and is  enforceable as such against any creditors of
                  the Issuer.

         Section 4.14. Additional Covenants. So long as any of the Series 2004-1
Notes are Outstanding:

                  (a) The Issuer  shall not engage in any  business  or activity
         other  than in  connection  with  the  activities  contemplated  by its
         Articles of Incorporation.

                  (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 act  solely in its own name and  through
         its duly Authorized  Representative 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.

                  (f) 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 board of trustees or in the bylaws
         of the Issuer.

                  (g)  All  actions  of the  Issuer  shall  be  taken  by a duly
         Authorized Representative of the Issuer.

                                       50
<PAGE>
                                                                    Exhibit 4.11

                  (h) The Issuer  shall not amend,  alter,  change or repeal any
         provision  contained  in this  Section  without  (i) the prior  written
         consent of the Indenture Trustee and (ii) a Rating Confirmation (a copy
         of which shall be provided to the Indenture Trustee).

                  (i) The Issuer shall not amend its  Articles of  Incorporation
         without  first  obtaining  the prior  written  consent  of each  Rating
         Agency.

                  (j) 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.

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

                  (l) The Issuer will maintain an arm's length relationship with
         each 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,
         the Administration  Agreement or a Servicing Agreement, the Issuer will
         not hold itself out to be responsible for the debts of any Seller,  the
         parent or the decisions or actions  respecting  the daily  business and
         affairs of any Seller or parent.

         Section  4.15.  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 a
Student Loan Purchase  Agreements,  or of any failure on the part of a Seller to
observe or perform in any  material  respect  any  covenant,  representation  or
warranty of a Seller set forth in its Student  Loan  Purchase  Agreement,  shall
promptly notify the Indenture Trustee,  the appropriate Servicer and each Rating
Agency of such failure.

         Section 4.16.  Statement as to  Compliance.  The Issuer will deliver to
the Indenture Trustee, within 75 days after the end of each fiscal year, a brief
certificate  from an  Authorized  Officer  including  (i) a current  list of the
officers and directors of the Issuer and a list of  Authorized  Representatives,
and  (ii) a  statement  of the  Issuer's  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,  such compliance shall be determined  without regard to any period
of grace or requirement of notice under this Indenture.

         Section 4.17.  Collection of Indebtedness  and Suits for Enforcement by
Indenture Trustee. The Issuer covenants that if:

                                       51
<PAGE>
                                                                    Exhibit 4.11

                  (a)  default  is made in the  payment  of any  installment  of
         interest, if any, on any Series 2004-1 Notes when such interest becomes
         due and payable and such default continues for a period of 5 days; or

                  (b)  default is made in the payment of the  principal  of (and
         premium, if any, on) any Series 2004-1 Notes at its Maturity,

then the Issuer will, upon demand of the Indenture Trustee, pay to the Indenture
Trustee, for the benefit of the Registered Owners, the whole amount then due and
payable on such Series  2004-1 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 Series 2004-1 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 Indenture Trustee and its agents and counsel.

         If the Issuer fails to pay such amounts forthwith upon such demand, the
Indenture  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 Series 2004-1
Notes of such Class 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 Series 2004-1 Notes, wherever situated.

         If an Event of Default with  respect to the Series  2004-1 Notes occurs
and is continuing,  the Indenture  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  Series  2004-1  Notes  by such
appropriate  judicial  proceedings  as the  Indenture  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  4.18.  Representations  of the Issuer  Regarding the Indenture
Trustee's Security  Interest.  The Issuer hereby represents and warrants for the
benefit of the Indenture Trustee and the Registered Owners as follows:

                  (a) This  Indenture  creates a valid and  continuing  security
         interest  (as  defined in the  applicable  Uniform  Commercial  Code in
         effect in the State of  Nebraska)  in the  Financed  Eligible  Loans in
         favor of the Indenture 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 the Issuer.

                  (b) The Higher Education Act deems the Financed Eligible Loans
         to constitute  accounts  within the meaning of the applicable UCC as in
         effect  in the State of  Nebraska  for the  purposes  of  perfecting  a
         security interest in the Financed Eligible Loans.

                                       52
<PAGE>
                                                                    Exhibit 4.11

                  (c) The Issuer (or the  Eligible  Lender  Trustee on behalf of
         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.

                  (d) The Issuer has caused or will have caused, within 10 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 Indenture Trustee hereunder.

                  (e)  All  executed   copies  of  each   promissory  note  that
         constitute or evidence the Financed  Eligible Loans have been delivered
         to either the Indenture Trustee or a custodian  pursuant to a Custodian
         Agreement.

                  (f) The Issuer has received a written acknowledgment from each
         custodian  pursuant to a Custodian  Agreement  that such  custodian  is
         holding the promissory  notes that  constitute or evidence the Financed
         Eligible  Loans  solely on behalf and for the benefit of the  Indenture
         Trustee.

                  (g) Other than the security  interest granted to the Indenture
         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 Indenture  Trustee  hereunder or that
         has been  terminated.  The Issuer is not aware of any  judgment  or tax
         lien filings against the Issuer.

         Section 4.19. Covenants of the Issuer Regarding the Indenture Trustee's
Security Interest.  The Issuer hereby covenants for the benefit of the Indenture
Trustee and the Registered Owners as follows:

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

                  (b)  The  Indenture   Trustee  shall  not  waive  any  of  the
         representations and warranties set forth in Section 4.18 hereof.

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

         Section  4.20.  Tax  Treatment.   The  Issuer  has  entered  into  this
Indenture,  and the Series 2004-1 Notes will be issued, with the intention that,
for federal,  state and local income,  business and franchise tax purposes,  the
Series 2004-1 Notes will qualify as indebtedness of the Issuer.  The Issuer,  by
entering into this Indenture,  and each  Registered  Owner, by its acceptance of
its Series  2004-1  Note,  agrees to treat the Series  2004-1 Notes for federal,
state and local income,  business and franchise tax purposes as  indebtedness of
the Issuer.

                                       53
<PAGE>
                                                                    Exhibit 4.11

         Section 4.21. Opinions as to Indenture Trust Estate.

                  (a) On the  Closing  Date,  the  Issuer  shall  furnish to the
         Indenture  Trustee an Opinion of Counsel  either  stating  that, in the
         opinion of such counsel, such action has been taken with respect to the
         recording and filing of this  Indenture,  any  Supplemental  Indentures
         hereto,  and any other  requisite  documents,  and with  respect to the
         execution  and  filing of any  financing  statements  and  continuation
         statements, as are necessary to perfect and make effective the lien and
         security  interest of this  Indenture  and reciting the details of such
         action, or stating that, in the opinion of such counsel, no such action
         is necessary to make such lien and security interest effective.

                  (b) On or before March 31, in each calendar year, beginning on
         March 31, 2005,  the Issuer shall furnish to the  Indenture  Trustee an
         Opinion of Counsel either stating that, in the opinion of such counsel,
         such  action  has been taken with  respect  to the  recording,  filing,
         re-recording   and  refiling  of  this  Indenture,   any   Supplemental
         Indentures hereto and any other requisite documents and with respect to
         the execution and filing of any financing  statements and  continuation
         statements as are necessary to maintain the lien and security  interest
         created by this  Indenture  and  reciting the details of such action or
         stating that in the opinion of such counsel no such action is necessary
         to maintain  such lien and security  interest.  Such Opinion of Counsel
         shall also describe the recording, filing, re-recording and refiling of
         this  Indenture,  any  Supplemental  Indentures  hereto  and any  other
         requisite  documents  and the  execution  and  filing of any  financing
         statements  and  continuation  statements  that will, in the opinion of
         such counsel, be required to maintain the lien and security interest of
         this Indenture until March 31, in the following calendar year.

         Section 4.22. Borrower Incentive Programs.  The Issuer presently offers
borrower incentive programs for Consolidation Loans originated by the Issuer and
its  affiliates  that  provide  for  (a) a 0.25%  interest  rate  reduction  for
borrowers  that  make  payments  on their  loans  electronically  and (b) a 1.0%
interest rate  reduction for borrowers  that make a specified  number of on-time
payments.  If any such  incentive  programs,  or any  other  borrower  incentive
programs  offered  by the  Issuer in the future  which are not  required  by the
Higher  Education  Act,  are in effect for any  Financed  Eligible  Loans on any
Distribution  Date on which the Total Parity Ratio is below 101%,  or such other
percentage that satisfies the Rating Agency  Condition,  the Issuer shall either
(i) contribute  funds to the Collection  Fund in an amount  sufficient to offset
the effective yield reductions caused by such borrower  incentive programs since
the  preceding  Distribution  Date or (ii) notify each Servicer to terminate the
borrower  incentive programs for those Financed Eligible Loans. If a Servicer is
notified by the Issuer to  terminate  the  borrower  incentive  programs for the
Financed  Eligible  Loans being  serviced by such  Servicer,  such  Servicer may
choose to contribute  funds to the  Collection  Fund in an amount  sufficient to
offset the effective yield reductions caused by the borrower  incentive programs
on the  Financed  Eligible  Loans  being  serviced  by such  Servicer in lieu of
terminating the borrower incentive programs for those Financed Eligible Loans.

                                       54
<PAGE>
                                                                    Exhibit 4.11

                                   ARTICLE V

                                      FUNDS

         Section 5.01.  Creation and  Continuation of Funds and Accounts.  There
are hereby created and  established  the following Funds and Accounts to be held
and maintained by the Indenture Trustee for the benefit of the Registered Owners
(and the Remarketing Agents with respect to the Remarketing Fee Fund):

                  (a) Acquisition Fund;

                  (b) Class B Supplemental Reserve Fund;

                  (c) Collection Fund;

                  (d)  Note  Payment  Fund,  including  a  Class  A-1A  Interest
         Account,  a  Class  A-1A  Redemption  Account,  a Class  A-1B  Interest
         Account, a Class A-1B Redemption Account, a Class A-2 Interest Account,
         a Class A-2 Redemption  Account,  a Class A-3 Interest Account, a Class
         A-3  Redemption  Account,  a Class B-1  Interest  Account,  a Class B-1
         Redemption   Account,  a  Class  B-2  Interest  Account,  a  Class  B-2
         Redemption  Account  and  a  Counterparty   Payment  Account  for  each
         Derivative  Product (if Issuer  Derivative  Payments are required to be
         paid thereunder) therein;

                  (e) Remarketing Fee Fund;

                  (f) Reserve Fund; and

                  (g)  Supplemental   Interest  Fund,  including  a  Class  A-1A
         Supplemental  Interest  Account,  a Class  A-1B  Supplemental  Interest
         Account,  a Class A-2  Supplemental  Interest  Account  and a Class A-3
         Supplemental Interest Account therein.

         The  Indenture   Trustee  is  hereby  authorized  for  the  purpose  of
facilitating the  administration of the Trust Estate and for the  administration
of any Series  2004-1  Notes  issued  hereunder  to create  further  Accounts or
Subaccounts in any of the various Funds and Accounts established hereunder or as
are otherwise deemed necessary or desirable.

         Section 5.02. Acquisition Fund.

                  (a) Deposits to the Acquisition Fund. There shall be deposited
         into the  Acquisition  Fund the proceeds of the Series 2004-1 Notes set
         forth in Section 2.11(d) hereof,  all Recoveries of Principal  received
         by the Indenture  Trustee  during the  Revolving  Period and all moneys
         transferred  thereto  from the  Collection  Fund  pursuant  to  Section
         5.04(a) and (c)(xviii) hereof. Financed Eligible Loans shall be held by
         the Indenture Trustee or its agent or bailee (including a Servicer) and
         shall be pledged to the Trust Estate and accounted for as a part of the
         Acquisition Fund.

                  (b) Uses of Moneys in the Acquisition  Fund. Moneys on deposit
         in the Acquisition  Fund shall be used,  upon Issuer Order,  (i) to pay
         costs of issuing the

                                       55
<PAGE>
                                                                    Exhibit 4.11

         Series 2004-1 Notes and (ii) upon receipt by the  Indenture  Trustee of
         an  Eligible  Loan  Acquisition  Certificate  in the form of  Exhibit H
         hereto,  to acquire Eligible Loans  (including  serial loans and Add-on
         Consolidation  Loans)  during  the  Revolving  Period at a price of not
         greater than the par amount of the Eligible Loan, plus accrued interest
         thereon,  and which  would  permit the  results  of cash flow  analyses
         provided to each Rating  Agency on the Closing  Date to be sustained as
         certified to the  Indenture  Trustee on the Eligible  Loan  Acquisition
         Certificate;  provided  that such  price may be  increased  if a Rating
         Confirmation  is obtained,  based on new cash flow analyses  containing
         such  assumptions as the Issuer shall reasonably  determine;  provided,
         however,  that during the  Revolving  Period,  (A) the Issuer  shall be
         obligated to acquire Consolidation Loans with amounts on deposit in the
         Acquisition  Fund to the  extent  that  the  Issuer  does  not use such
         amounts to acquire  other  Eligible  Loans and (B) no more than 20% (by
         original  principal  balance) of the Eligible Loans Financed during the
         Revolving  Period may be  attributable  to Eligible  Loans  (other than
         Consolidation Loans) the proceeds of which funded tuition for a student
         attending  a   for-profit   vocational   school  that  does  not  offer
         baccalaureate   degrees.   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.  Moneys in the  Acquisition  Fund  shall be used to  acquire
         Eligible Loans on a first-in  first-out  basis.  The Issuer,  by Issuer
         Order,  shall direct the Indenture  Trustee to deposit any moneys which
         have  remained on deposit in the  Acquisition  Fund for a period of six
         months to the Note Payment Fund;  provided,  however,  the Issuer shall
         not instruct the  Indenture  Trustee to transfer any such moneys unless
         the aggregate amount thereof is at least $5,000,000.  At the end of the
         Revolving  Period,  the Indenture  Trustee shall transfer all remaining
         amounts on deposit in the Acquisition Fund to the Note Payment Fund.

                  Notwithstanding  the foregoing,  if on any  Distribution  Date
         there are not sufficient  moneys on deposit in the  Collection  Fund to
         make the transfers  required by Section 5.04(c)(i) through (ix) hereof,
         then, any cash or Investment  Securities in an amount equal to any such
         deficiency  shall be transferred  directly from the Acquisition Fund to
         the Collection  Fund. In the event that any moneys are transferred from
         the Acquisition Fund to the Collection Fund pursuant to this subsection
         (b), the Revolving  Period will be suspended until the later of (i) the
         second  subsequent  Quarterly  Distribution  Date  and (ii) the date on
         which $10,000,000 is on deposit in the Acquisition Fund.

                  (c) Ownership and Sale of Financed  Eligible Loans.  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  Eligible  Lender  Trustee  will be the
         legal owner  thereof  and the  Indenture  Trustee  will have a security
         interest  in the  Financed  Eligible  Loans  for and on  behalf  of the
         Registered  Owners.  The notes representing the Financed Eligible Loans
         will be held in the name of the Eligible Lender Trustee for the account
         of the Issuer and for the benefit of the Registered Owners.

                  Financed   Eligible  Loans  shall  be  sold,   transferred  or
         otherwise disposed of (other than for  consolidation,  serialization or
         transfer to a Guaranty  Agency or a Servicer,  which sales or transfers
         may be made without  limitation) by the Indenture Trustee free from the

                                       56
<PAGE>
                                                                    Exhibit 4.11

         lien of this  Indenture at any time  pursuant to an Issuer Order (other
         than to the  Seller  from  which the  Issuer  originally  acquired  the
         Financed  Eligible Loans) and if the Indenture Trustee is provided with
         the following:

                           (i) an  Issuer  Order  stating  the  sale  price  and
                  directing that Financed Eligible Loans be sold, transferred or
                  otherwise disposed of and delivered to:

                                    (A) if the Eligible Loan is originated under
                           the Higher Education Act and the Higher Education Act
                           requires any such Eligible Loan to be held only by an
                           Eligible Lender,  an Eligible Lender under the Higher
                           Education Act whose name shall be specified; or

                                    (B)  the  trustee  under  another  indenture
                           securing notes issued by the Issuer; and

                           (ii) an Issuer Order stating to the effect:

                                    (A) that the disposition  price is (x) equal
                           to or in excess of the  greater  of (I) the  purchase
                           price paid by the Issuer for such  Financed  Eligible
                           Loan (less principal amounts received with respect to
                           such Financed  Eligible Loan plus a pro rata share of
                           such Financed  Eligible  Loan's cost of issuance) and
                           (II) 101% of the  principal  amount of such  Financed
                           Eligible Loan, plus accrued  interest thereon and (y)
                           reasonably  equal  to the fair  market  value of such
                           Financed Eligible Loan; or

                                    (B)  if  a  Financed  Eligible  Loan  is  in
                           default or  otherwise  deemed by the Issuer to not be
                           performing in accordance  with the  expectations  set
                           forth in the closing cashflows,  that the disposition
                           price is lower  than the  purchase  price paid by the
                           Issuer  for  such   Financed   Eligible   Loan  (less
                           principal  amounts  received  with  respect  to  such
                           Financed  Eligible Loan plus a pro rata share of such
                           Financed  Eligible Loan's cost of issuance),  and (I)
                           the Issuer reasonably believes that the present value
                           of the Revenues expected to be received (after giving
                           effect to such  disposition)  would be at least equal
                           to the Revenues  expected to be received  assuming no
                           such sale, transfer or other disposition occurred, or
                           (II) the Issuer shall remain able to pay debt service
                           on the Series  2004-1  Notes and make  payment on any
                           other  Obligations  on a timely basis  (after  giving
                           effect to such sale,  transfer or other  disposition)
                           whereas  it would  not have  been  able to do so on a
                           timely  basis  if it had  not  sold,  transferred  or
                           disposed  of  such  Financed  Eligible  Loan  at such
                           discounted  amount,  or (III) the Aggregate  Value of
                           the Trust Estate  (after  giving effect to such sale,
                           transfer or other disposition) will be at least equal
                           to  100% of the  aggregate  principal  amount  of the
                           Obligations plus accrued interest.

         Notwithstanding the foregoing,  if the proposed sale, transfer or other
         disposition of such Eligible Loans shall cause the aggregate  principal
         amount of all Financed  Eligible  Loans sold,  transferred or otherwise
         disposed of (other than for consolidation, serialization or

                                       57
<PAGE>
                                                                    Exhibit 4.11

         transfer to a Guaranty  Agency or a Servicer,  which sales or transfers
         may be made without  limitation)  since the Closing Date to exceed five
         percent (5%) of the  principal  amount of the Financed  Eligible  Loans
         within the Trust Estate on the Closing Date, or the principal amount of
         the  Financed  Eligible  Loans  proposed  to be  sold,  transferred  or
         otherwise disposed of (other than for  consolidation,  serialization or
         transfer to a Guaranty  Agency or a Servicer,  which sales or transfers
         may be made without  limitation)  exceeds ten percent (10%) of the then
         current  principal  amount of the  Financed  Eligible  Loans within the
         Trust Estate,  the Issuer shall  provide the  Indenture  Trustee with a
         Rating   Confirmation.   In  connection   with  providing  such  Rating
         Confirmation, any Rating Agency may request a new cash flow analysis of
         the Trust Estate be prepared,  and the Issuer shall cause such new cash
         flow analysis to be prepared and provided to such Rating Agency.

                  Further,   Financed   Eligible   Loans  shall  also  be  sold,
         transferred or otherwise  disposed of by the Indenture Trustee pursuant
         to an Issuer  Order  (other  than to the  Seller  from which the Issuer
         originally   acquired  the  Financed  Eligible  Loans)  if  the  Issuer
         determines  that such  disposition of Financed  Eligible Loans from the
         Trust Estate is necessary in order to avoid the  occurrence of an Event
         of Default hereunder or to avoid any default in the payment obligations
         of the Issuer under any reimbursement  agreement, in such amount and at
         such times and prices as may be  specified  in such Issuer  Order.  The
         Indenture Trustee,  following receipt of the foregoing and of an Issuer
         Order  indicating  that  such  purchaser  or  transferee  is one of the
         entities described in clause (i) of this subsection (c), if applicable,
         shall deliver such Financed  Eligible  Loans free from the lien of this
         Indenture  upon the  receipt  of the  purchase  price or  consideration
         specified in the Issuer Order,  in compliance  with the foregoing.  The
         proceeds  to be  received  upon any  disposition  may  consist of cash,
         Investment Securities and/or Eligible Loans.

                  The selection and sale of Financed Eligible Loans which are to
         be sold for the purpose of optionally  redeeming Class A Notes pursuant
         to Section 2.09(a) hereof shall be performed solely on a pro rata basis
         in the manner described in Section 2.07(a) of Appendix A hereto.

                  (d) Early Termination of the Revolving  Period.  The Revolving
         Period shall be  terminated,  prior to January 31, 2007, on any date on
         which an Early Amortization Event has occurred.

         Section 5.03. Class B Supplemental Reserve Fund.

                  (a) Deposits to the Class B Supplemental  Reserve Fund. On the
         first  Distribution Date on which the Total Parity Ratio is equal to or
         greater than 101%, or such other  percentage  that satisfies the Rating
         Agency Condition,  the Indenture Trustee shall transfer an amount equal
         to the Class B  Supplemental  Reserve Fund  Requirement  to the Class B
         Supplemental  Reserve Fund pursuant to Section 5.04(c)(xvi) hereof. If,
         on any  Distribution  Date,  the  amount  on  deposit  in the  Class  B
         Supplemental Reserve Fund is less than the Class B Supplemental Reserve
         Fund  Requirement,  the  Indenture  Trustee  shall  restore the Class B
         Supplemental  Reserve  Fund to the Class B  Supplemental  Reserve  Fund
         Requirement  by  transfers  from  the  Collection   Fund  on  the  next

                                       58
<PAGE>
                                                                    Exhibit 4.11

         Distribution Date pursuant to Section  5.04(c)(xvi)  hereof;  provided,
         that such transfer shall only be made if the Total Parity Ratio on such
         Distribution  Date is equal to or  greater  than  101%,  or such  other
         percentage  that  satisfies  the Rating Agency  Condition.  If the full
         amount  required to initially  fund or restore the Class B Supplemental
         Reserve Fund to the Class B  Supplemental  Reserve Fund  Requirement is
         not  available  in  the  Collection   Fund  on  such  next   succeeding
         Distribution  Date on  which  the  Total  Parity  Ratio  is equal to or
         greater than 101%,  the Indenture  Trustee  shall  continue to transfer
         funds from the  Collection  Fund as they become  available  pursuant to
         Section  5.04(c)(xvi)  hereof and in  accordance  with the  restriction
         contained in this  subsection  (a) until the  deficiency in the Class B
         Supplemental Reserve Fund has been eliminated.

                  (b) Use of Moneys in the Class B Supplemental Reserve Fund. If
         on any Distribution  Date there are not sufficient moneys on deposit in
         the  Collection  Fund  to  make  the  transfers   required  by  Section
         5.04(c)(v) or (vi) hereof, then, an amount equal to any such deficiency
         shall be  transferred  directly from the Class B  Supplemental  Reserve
         Fund to the Collection  Fund to make the transfers  required by Section
         5.04(c)(v)  or (vi) hereof to the extent such  deficiency  has not been
         paid from the  Acquisition  Fund,  the Note Payment Fund or the Reserve
         Fund.  If on any  Distribution  Date  there  are  sufficient  moneys on
         deposit  in the  Collection  Fund to make  the  transfers  required  by
         Section  5.04(c)(v)  hereof,  but the Issuer is prohibited  from making
         such transfers due to the occurrence or continuation of the Subordinate
         Interest  Trigger on such  Distribution  Date, then, an amount equal to
         any such  deficiency  shall be  transferred  directly  from the Class B
         Supplemental  Reserve Fund to the Collection Fund to make the transfers
         required by Section 5.04(c)(v) hereof. On the date of redemption of all
         of the Class B Notes, the Indenture  Trustee shall transfer all amounts
         in the Class B  Supplemental  Reserve Fund to the Note Payment Fund for
         the redemption of the Class B Notes. On any Distribution  Date that the
         amount in the Class B  Supplemental  Reserve  Fund  exceeds the Class B
         Supplemental   Reserve  Fund  Requirement  with  respect  thereto,  the
         Indenture Trustee,  at the direction of the Issuer,  shall transfer the
         excess to the Collection Fund. Upon an Event of Default and liquidation
         of the Trust  Estate,  amount on  deposit  in the Class B  Supplemental
         Reserve Fund shall be disbursed pursuant to Section 6.02 hereof.

         Section 5.04. Collection Fund.

                  (a) Deposits to the  Collection  Fund.  The Indenture  Trustee
         shall  deposit  into the  Collection  Fund the  proceeds  of the Series
         2004-1 Notes set forth in Section 2.11(a) hereof,  all Revenues derived
         from Financed Eligible Loans financed by the Issuer,  all other Revenue
         derived  from  moneys or assets on  deposit  in the Funds and  Accounts
         established  hereunder  (including any amounts received  pursuant to an
         Investment  Agreement),  all amounts transferred to the Collection Fund
         from the Acquisition  Fund, the Class B Supplemental  Reserve Fund, the
         Note Payment Fund, the Reserve Fund and the Supplemental  Interest Fund
         pursuant to the terms hereof,  all Counterparty  Payments,  any amounts
         deposited thereto pursuant to Section 4.22 hereof and any other amounts
         deposited thereto upon receipt of an Issuer Order. During the Revolving
         Period,  all  Recoveries  of  Principal  constituting  a portion of the
         Revenue  deposited  in the  Collection  Fund and so  identified  to the
         Indenture  Trustee by the  Issuer  shall be  transferred,  on a monthly
         basis,  to the  Acquisition  Fund.  After  the  Revolving  Period,  all
         Recoveries of

                                       59
<PAGE>

                                                                    Exhibit 4.11

         Principal  constituting  a  portion  of the  Revenue  deposited  in the
         Collection  Fund and so  identified  to the  Indenture  Trustee  by the
         Issuer shall be  transferred,  on a monthly basis,  to the Note Payment
         Fund.

                  (b)  Payments  on  Monthly   Servicing   Payment  Dates.   The
         Administrator  shall instruct the Indenture Trustee in writing no later
         than the second Business Day preceding each Monthly  Servicing  Payment
         Date  that  is  not a  Distribution  Date  (based  on  the  information
         contained  in  the  Administrator's   Monthly  Servicing  Payment  Date
         Certificate  and the related  Servicer's  Report) to  distribute to the
         appropriate  Servicer, on such Monthly Servicing Payment Date, from and
         to the extent of the Revenues on deposit in the  Collection  Fund,  the
         Servicing Fee due such Servicer with respect to the preceding  calendar
         month, and the Indenture Trustee shall comply with such instructions.

                  (c) Payments on Distribution  Dates.  The Issuer shall provide
         the  Indenture  Trustee with an Issuer Order with respect to all Issuer
         Derivative Payments, Reset Rate Notes Carry-over Amounts (including any
         interest thereon) and Auction Rate Notes Carry-over  Amounts (including
         any interest  thereon),  which Issuer Order the  Indenture  Trustee may
         conclusively  rely on. The  Administrator  shall instruct the Indenture
         Trustee in writing no later than the second Business Day preceding each
         Distribution   Date  (based  on  the   information   contained  in  the
         Administrator's   Distribution   Date   Certificate   and  the  related
         Servicer's  Report) to make the  following  deposits and  distributions
         from the  Collection  Fund to the  Persons  or to the  Fund or  Account
         specified  below on such  Distribution  Date, in the following order of
         priority, and the Indenture Trustee shall comply with such instructions
         (any money not so transferred or paid to remain in the Collection  Fund
         until subsequently applied pursuant to this subsection (c)):

                           (i) on each Quarterly  Distribution Date (and on each
                  Auction  Rate  Distribution  Date with  respect to the Auction
                  Agent and each  Broker-Dealer),  to pay to each Servicer,  the
                  Indenture Trustee, the Auction Agent, each Broker-Dealer, each
                  Remarketing Agent (to the extent not paid from the Remarketing
                  Fee Fund) and any other  Person that is due  Program  Expenses
                  hereunder and to make a deposit to the Remarketing Fee Fund as
                  provided in Section  5.06 hereof,  pro rata,  based on amounts
                  owed to each such party or  required  to be  deposited  to the
                  Remarketing  Fee Fund,  without  preference or priority of any
                  kind,  the  Servicing  Fee (to  the  extent  remaining  unpaid
                  following the Monthly  Servicing  Payment Date), the Indenture
                  Trustee  Fee,  the  Eligible  Lender  Trustee Fee, the Auction
                  Agent Fee, the  Broker-Dealer  Fees, the Remarketing  Fees (to
                  the extent not paid from the Remarketing Fee Fund), such other
                  Program  Expenses  that are due and payable and the  Quarterly
                  Funding   Amount,   respectively,   due  on   such   Quarterly
                  Distribution  Date,  in each  case,  together  with  such fees
                  remaining unpaid from prior Quarterly Distribution Dates (and,
                  in the case of the  Servicing  Fee,  prior  Monthly  Servicing
                  Payment Dates and in the case of the Auction Agent Fee and the
                  Broker-Dealer Fees, prior Auction Rate Distribution Dates);

                                       60
<PAGE>
                                                                    Exhibit 4.11

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

                           (iii) to (A)  transfer  to the  Class  A-1A  Interest
                  Account,  an amount  equal to the Class  A-1A  Notes  Interest
                  Distribution   Amount  which  has  accrued   since  the  prior
                  Distribution  Date,  (B)  transfer to the Class A-1B  Interest
                  Account,  an amount  equal to the Class  A-1B  Notes  Interest
                  Distribution   Amount  which  has  accrued   since  the  prior
                  Distribution  Date,  (C)  transfer  to the Class A-2  Interest
                  Account,   an  amount   equal  to  the   Class  A-2   Interest
                  Distribution   Amount  which  has  accrued   since  the  prior
                  Distribution  Date,  (D)  transfer  to the Class A-3  Interest
                  Account,   an  amount   equal  to  the   Class  A-3   Interest
                  Distribution   Amount  which  has  accrued   since  the  prior
                  Distribution  Date  and  (E)  transfer  to  each  Counterparty
                  Payment Account, any Issuer Derivative Payments which are paid
                  on a parity  with  interest  on the Class A Notes owed to such
                  Counterparty   which  have  accrued  on  such   Counterparty's
                  Derivative  Product  since the prior  Distribution  Date,  pro
                  rata,  based on amounts  required  to be  transferred  to each
                  Account, without preference or priority of any kind;

                           (iv) to (A)  transfer  to the Class  A-1A  Redemption
                  Account,  on the Stated  Maturity of the Class A-1A Notes,  an
                  amount  equal to the  Outstanding  Amount  of the  Class  A-1A
                  Notes,  less any amounts  already on deposit in the Class A-1A
                  Redemption Account,  (B) transfer to the Class A-1B Redemption
                  Account,  on the Stated  Maturity of the Class A-1B Notes,  an
                  amount  equal to the  Outstanding  Amount  of the  Class  A-1B
                  Notes,  less any amounts  already on deposit in the Class A-1B
                  Redemption  Account,  (C) transfer to the Class A-2 Redemption
                  Account,  on the Stated  Maturity  of the Class A-2 Notes,  an
                  amount equal to the Outstanding  Amount of the Class A-2 Notes
                  and (D) transfer to the Class A-3 Redemption  Account,  on the
                  Stated Maturity of the Class A-3 Notes, an amount equal to the
                  Outstanding  Amount of the Class A-3 Notes,  less any  amounts
                  already on deposit in the Class A-3  Redemption  Account,  pro
                  rata,  based on amounts  required  to be  transferred  to each
                  Account, without preference or priority of any kind;

                           (v)  Unless  the  Subordinate  Interest  Trigger  has
                  occurred or is  continuing on such  Distribution  Date, to (A)
                  transfer to the Class B-1 Interest Account, an amount equal to
                  the Class B-1 Notes  Interest  Distribution  Amount  which has
                  accrued since the prior Distribution Date, (B) transfer to the
                  Class B-2 Interest  Account,  an amount equal to the Class B-2
                  Notes Interest Distribution Amount which has accrued since the
                  prior Distribution Date, and (C) transfer to each Counterparty
                  Payment Account, any Issuer Derivative Payments which are paid
                  on a parity  with  interest  on the Class B Notes owed to such
                  Counterparty   which  have  accrued  on  such   Counterparty's
                  Derivative  Product  since the prior  Distribution  Date,  pro
                  rata,  based on amounts  required  to be  transferred  to each
                  Account, without preference or priority of any kind;

                                       61
<PAGE>
                                                                    Exhibit 4.11

                           (vi) to (A)  transfer  to the  Class  B-1  Redemption
                  Account,  on the Stated  Maturity  of the Class B-1 Notes,  an
                  amount equal to the Outstanding Amount of the Class B-1 Notes,
                  less  any  amounts   already  on  deposit  in  the  Class  B-1
                  Redemption   Account  and  (B)   transfer  to  the  Class  B-2
                  Redemption  Account,  on the Stated  Maturity of the Class B-2
                  Notes, an amount equal to the Outstanding  Amount of the Class
                  B-2 Notes,  less any  amounts  already on deposit in the Class
                  B-2 Redemption Account, pro rata, based on amounts required to
                  be transferred to each Account, without preference or priority
                  of any kind;

                           (vii)  to  the  Administrator  for  transfer  to  the
                  appropriate  Seller or trust  estate  from which the  Eligible
                  Loan was  purchased  or  transferred,  an amount  equal to the
                  unpaid  interest  accrued on the Eligible  Loans Financed with
                  the  proceeds of the Series  2004-1  Notes  subsequent  to the
                  cut-off date for such Eligible  Loans but prior to the Closing
                  Date, until such amount has been paid in full;

                           (viii)  on each  Quarterly  Distribution  Date to (A)
                  transfer to the Class A-1A Supplemental  Interest Account,  an
                  amount  equal  to the  Supplemental  Interest  Deposit  Amount
                  corresponding  to  the  Class  A-1A  Redemption  Account,  (B)
                  transfer to the Class A-1B Supplemental  Interest Account,  an
                  amount  equal  to the  Supplemental  Interest  Deposit  Amount
                  corresponding  to  the  Class  A-1B  Redemption  Account,  (C)
                  transfer to the Class A-2 Supplemental  Interest  Account,  an
                  amount  equal  to the  Supplemental  Interest  Deposit  Amount
                  corresponding  to the Class  A-2  Redemption  Account  and (D)
                  transfer to the Class A-3 Supplemental  Interest  Account,  an
                  amount  equal  to the  Supplemental  Interest  Deposit  Amount
                  corresponding to the Class A-3 Redemption  Account,  pro rata,
                  based on amounts  required to be  transferred to each Account,
                  without preference or priority of any kind;

                           (ix) to the Reserve Fund the amount, if any, required
                  by Section 5.07(a) hereof;

                           (x) upon receipt of an Issuer Order,  to (A) transfer
                  to the Class A-1A  Interest  Account,  an amount  equal to any
                  Reset Rate Notes  Carry-over  Amount (and any accrued interest
                  thereon)  due and payable on the Class A-1A Notes (as provided
                  in Appendix A hereto), (B) transfer to the Class A-1B Interest
                  Account,  an amount  equal to any Reset Rate Notes  Carry-over
                  Amount (and any accrued  interest  thereon) due and payable on
                  the Class A-1B Notes (as  provided in Appendix A hereto),  (C)
                  transfer to the Class A-2 Interest Account, an amount equal to
                  any  Reset  Rate  Notes  Carry-over  Amount  (and any  accrued
                  interest  thereon)  due and payable on the Class A-2 Notes (as
                  provided in Appendix A  hereto)and  (D)  transfer to the Class
                  A-3 Interest Account,  an amount equal to any Reset Rate Notes
                  Carry-over  Amount (and any accrued interest  thereon) due and
                  payable  on the Class A-3 Notes (as  provided  in  Appendix  A
                  hereto), pro rata, based on amounts required to be transferred
                  to each Account, without preference or priority of any kind;

                                       62
<PAGE>
                                                                    Exhibit 4.11

                           (xi)  unless the  Subordinate  Interest  Trigger  has
                  occurred or is  continuing  on such  Distribution  Date,  upon
                  receipt of an Issuer  Order,  to (A) transfer to the Class B-1
                  Interest  Account,  an amount  equal to any Auction Rate Notes
                  Carry-over  Amount (and any accrued interest  thereon) due and
                  payable  on the Class B-1 Notes (as  provided  in  Appendix  B
                  hereto) and (B) transfer to the Class B-2 Interest Account, an
                  amount equal to any Auction Rate Notes Carry-over  Amount (and
                  any accrued interest thereon) due and payable on the Class B-2
                  Notes (as provided in Appendix B hereto),  pro rata,  based on
                  the  amounts  required  to be  transferred  to  each  Account,
                  without preference or priority of any kind;

                           (xii) upon receipt of an Issuer Order, to transfer to
                  the  corresponding  Counterparty  Payment  Account,  an amount
                  equal to any unpaid amounts  (including any unpaid Termination
                  Payments) due on the Derivative Product Distribution Date with
                  respect to a  Derivative  Product on which  Issuer  Derivative
                  Payments  are paid on a parity  with  interest  on the Class A
                  Notes,   pro  rata,  based  on  the  amounts  required  to  be
                  transferred to each Account, without preference or priority of
                  any kind;

                           (xiii) upon receipt of an Issuer  Order,  to transfer
                  to the corresponding  Counterparty  Payment Account, an amount
                  equal to any unpaid amounts  (including any unpaid Termination
                  Payments) due on the Derivative Product Distribution Date with
                  respect to a  Derivative  Product on which  Issuer  Derivative
                  Payments on which the Issuer  Derivative  Payments  thereunder
                  are paid on a parity with  interest on the Class B Notes,  pro
                  rata,  based on the amounts required to be transferred to each
                  Account, without preference or priority of any kind;

                           (xiv)  on any  Quarterly  Distribution  Date,  to the
                  Administrator  to reimburse it for any payments  made by it to
                  the Remarketing Agents pursuant to the Remarketing Agreement;

                           (xv) to the Servicer,  to repurchase  Eligible  Loans
                  that the Issuer is required to repurchase from the Servicer in
                  accordance with the terms of the Servicing Agreement;

                           (xvi)  if the  Total  Parity  Ratio  is  equal  to or
                  greater than 101%, to the Class B  Supplemental  Reserve Fund,
                  the amount, if any, required by Section 5.03(a) hereof;

                           (xvii) on any Quarterly Distribution Date, unless the
                  Commercial Paper Rate Trigger has occurred,  to the extent the
                  Indenture permits payments to the Issuer free from the lien of
                  the Indenture  pursuant to Section 5.09 hereof,  at the option
                  of the Issuer and upon Issuer  Order to exercise  such option,
                  the  amount  permitted  to be  paid  to the  Issuer  from  the
                  Collection Fund on such Quarterly Distribution Date may be (A)
                  paid  to the  Issuer  or (B)  transferred  to  the  Class  B-1
                  Redemption Account or the Class B-2 Redemption Account for the
                  optional  redemption  of  Class B Notes  pursuant  to  Section
                  2.09(c) hereof; and

                                       63
<PAGE>
                                                                    Exhibit 4.11

                           (xviii)  on  any  Quarterly  Distribution  Date,  any
                  amounts  remaining in the Collection Fund shall be transferred
                  (A) during the Revolving  Period,  to the Acquisition Fund and
                  (B) after Revolving Period, to the Note Payment Fund.

         If a Derivative Product has been entered into with respect to any Class
         of the Series 2004-1 Notes, the Indenture  Trustee,  the Issuer and the
         Administrator  may  assume for  purposes  of making  the  deposits  and
         transfers  with  respect  to such  Class  of the  Series  2004-1  Notes
         required by this  subsection  (c) that the  Counterparty  Payment  with
         respect  to  such  Derivative  Product  will  be  timely  received  and
         therefore  any  amounts  expected  to be paid  from  such  Counterparty
         Payment  need not be deposited  to the  appropriate  Funds and Accounts
         until such Counterparty Payment has been received. If such Counterparty
         Payment  is not  timely  received,  the Funds and  Accounts  which were
         expected to be funded by such  Counterparty  Payment shall be funded in
         an  amount   equal  to  the  expected   Counterparty   Payment  on  the
         Distribution  Date  on  which  such  Counterparty  Payment  was due and
         payable pursuant to this subsection (c).

                  (d) Other Payments from the Collection  Fund.  Upon receipt of
         an Issuer Order directing the same, moneys in the Collection Fund shall
         be used on any date to pay, when due, fees and expenses  insofar as the
         same relate to Financed Eligible Loans and other fees and expenses with
         respect  to the Trust  Estate  the  payment  of which is not  otherwise
         provided  for in  subsection  (c) of this  Section,  including  amounts
         required by the Higher  Education  Act to be paid to the  Department of
         Education (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. Upon receipt of an
         Issuer Order directing the same, moneys in the Collection Fund shall be
         used, on any date, to fund the acquisition of (i) Add-on  Consolidation
         Loans during the related  Add-on Period and (ii)  Eligible  Loans which
         constitute  serial  loans,  to the  extent  moneys  are  not  otherwise
         available therefor in the Acquisition Fund, subject to the restrictions
         of Section 5.02(b) hereof.

         Section 5.05. Note Payment Fund.

                  (a)  Deposits  to  the  Note  Payment  Fund.  There  shall  be
         deposited  into the Note  Payment  Fund,  all  Recoveries  of Principal
         received by the Indenture  Trustee  after the Revolving  Period and any
         moneys  transferred  thereto  from the  Acquisition  Fund  pursuant  to
         Section 5.02 hereof,  from the Collection Fund pursuant to Section 5.04
         hereof and from the  Reserve  Fund  pursuant  to Section  5.07  hereof.
         Amounts transferred to the Note Payment Fund (i) representing any Class
         A-1A  Notes  Interest  Distribution  Amount  and any Reset  Rate  Notes
         Carry-over  Amount (and interest thereon) on the Class A-1A Notes shall
         be deposited to the Class A-1A Interest Account,  (ii) representing any
         Class A-1B Notes Interest  Distribution Amount and any Reset Rate Notes
         Carry-over  Amount (and interest thereon) on the Class A-1B Notes shall
         be deposited to the Class A-1B Interest Account, (iii) representing any
         Class A-2 Notes Interest  Distribution  Amount and any Reset Rate Notes
         Carry-over  Amount (and interest  thereon) on the Class A-2 Notes shall
         be deposited to the Class A-2 Interest  Account,  (iv) representing any
         Class A-3 Notes Interest  Distribution  Amount and any Reset Rate Notes
         Carry-over

                                       64
<PAGE>
                                                                    Exhibit 4.11

         Amount (and interest thereon) on the Class A-3 Notes shall be deposited
         to the Class A-3 Interest Account, (v) representing any Class B-1 Notes
         Interest  Distribution  Amount and any  Auction  Rate Notes  Carry-over
         Amount (and interest thereon) on the Class B-1 Notes shall be deposited
         to the Class B-1 Interest  Account and (vi)  representing any Class B-2
         Notes  Interest   Distribution   Amount  and  any  Auction  Rate  Notes
         Carry-over  Amount (and interest  thereon) on the Class B-2 Notes shall
         be deposited to the Class B-2 Interest Account.  Amounts transferred to
         the Note Payment Fund  representing  Recoveries  of  Principal,  excess
         Revenues  transferred  from the  Collection  Fund  pursuant  to Section
         5.04(c)(xviii)  hereof  and  any  other  amount  to be  used to pay the
         principal of the Series  2004-1 Notes shall be deposited,  first,  on a
         pro rata basis  (based  upon  Outstanding  Amounts),  to the Class A-1A
         Redemption  Account  and the Class A-1B  Redemption  Account  until the
         amount on  deposit in the  respective  Redemption  Accounts  equals the
         Outstanding  Amount of the Class A-1A  Notes and the Class A-1B  Notes,
         second, to the Class A-2 Redemption Account until the amount on deposit
         therein  equals  the  Outstanding  Amount of the  Class A-2 Notes  and,
         third, to the Class A-3 Redemption  Account until the amount on deposit
         therein equals the Outstanding Amount of the Class A-3 Notes; provided,
         however,  upon the  Indenture  Trustee's  receipt  of an  Issuer  Order
         certifying  that the Senior  Parity Ratio  exceeds  104%, or such other
         percentage that satisfies the Rating Agency  Condition,  the Issuer may
         request,  in such Issuer  Order,  that the Indenture  Trustee  transfer
         excess  Revenues  transferred  from the  Collection  Fund  pursuant  to
         Section  5.04(c)(xviii)  hereof to the Class B-1 Redemption  Account to
         redeem  Class B-1 Notes and to the  Class  B-2  Redemption  Account  to
         redeem Class B-2 Notes, pro rata, based upon the Outstanding Amounts of
         each Class of the Class B Notes,  without preference or priority of any
         kind, until the Senior Parity Ratio equals the percentage  described in
         this sentence after giving effect to the proposed redemption of Class B
         Notes.  The  Indenture   Trustee  may   conclusively   rely  upon  such
         certification  without duty to know,  determine or further examine such
         Issuer  Order.  Once  the  Class  A  Notes  are no  longer  Outstanding
         hereunder,  amounts  transferred to the Note Payment Fund  representing
         Recoveries  of  Principal,   excess  Revenues   transferred   from  the
         Collection Fund pursuant to Section 5.04(c)(xviii) hereof and any other
         amount to be used to pay the principal of the Series 2004-1 Notes shall
         be  deposited to the Class B-1  Redemption  Account to redeem Class B-1
         Notes and to the  Class  B-2  Redemption  Account  to redeem  Class B-2
         Notes,  pro rata,  based upon the Outstanding  Amounts of each Class of
         the Class B Notes, without preference or priority of any kind.

                  (b) Use of Moneys in the Note Payment Fund. Amounts on deposit
         (i) in the Class A-1A  Interest  Account shall be used to pay the Class
         A-1A  Notes  Interest  Distribution  Amount  and any Reset  Rate  Notes
         Carry-over  Amount (and interest  thereon) due and payable on the Class
         A-1A Notes on each Quarterly  Distribution Date, (ii) in the Class A-1B
         Interest  Account  shall be used to pay the Class A-1B  Notes  Interest
         Distribution  Amount and any Reset Rate Notes  Carry-over  Amount  (and
         interest  thereon)  due and  payable  on the Class  A-1B  Notes on each
         Quarterly  Distribution  Date,  (iii) in the Class A-2 Interest Account
         shall be used to pay the Class A-2 Notes Interest  Distribution  Amount
         and any Reset Rate Notes Carry-over  Amount (and interest  thereon) due
         and payable on the Class A-2 Notes on each Quarterly Distribution Date,
         (iv) in the Class A-3 Interest  Account  shall be used to pay the Class
         A-3  Notes  Interest  Distribution  Amount  and any  Reset  Rate  Notes
         Carry-over  Amount (and interest  thereon) due and payable on

                                       65
<PAGE>
                                                                    Exhibit 4.11

         the Class A-3 Notes on each  Quarterly  Distribution  Date,  (v) in the
         Class  B-1  Interest  Account  shall be used to pay the Class B-1 Notes
         Interest  Distribution  Amount and any  Auction  Rate Notes  Carry-over
         Amount (and interest thereon) due and payable on the Class B-1 Notes on
         each corresponding Auction Rate Distribution Date and (vi) in the Class
         B-2 Interest  Account shall be used to pay the Class B-2 Notes Interest
         Distribution  Amount and any Auction Rate Notes Carry-over  Amount (and
         interest  thereon)  due and  payable  on the  Class  B-2  Notes on each
         corresponding Auction Rate Distribution Date. Amounts on deposit in the
         Class A-1A Redemption Account shall be used to make Principal Reduction
         Payments  on the  Class  A-1A  Notes on the next  succeeding  Quarterly
         Distribution  Date and to pay the  principal  amount of the Class  A-1A
         Notes upon their  Stated  Maturity  or upon their  redemption  in full;
         provided,   however,   that  if  the  Class   A-1A   Notes   constitute
         Non-Amortizing  Reset Rate  Notes,  then the amounts  deposited  to the
         Class A-1A  Redemption  Account  shall be retained  therein and used to
         make Principal Reduction Payments on the next succeeding Reset Date for
         the Class A-1A Notes.  Amounts on deposit in the Class A-1B  Redemption
         Account shall be used to make Principal Reduction Payments on the Class
         A-1B Notes on the next succeeding  Quarterly  Distribution  Date and to
         pay the  principal  amount of the Class A-1B  Notes  upon their  Stated
         Maturity or upon their redemption in full; provided,  however,  that if
         the Class A-1B Notes constitute  Non-Amortizing  Reset Rate Notes, then
         the amounts  deposited to the Class A-1B  Redemption  Account  shall be
         retained therein and used to make Principal  Reduction  Payments on the
         next succeeding Reset Date for the Class A-1B Notes. Amounts on deposit
         in the Class A-2  Redemption  Account  shall be used to make  Principal
         Reduction  Payments  on the  Class  A-2  Notes on the  next  succeeding
         Quarterly  Distribution  Date and to pay the  principal  amount  of the
         Class A-2 Notes upon their Stated Maturity or upon their  redemption in
         full;  provided,  however,  that  if the  Class  A-2  Notes  constitute
         Non-Amortizing  Reset Rate  Notes,  then the amounts  deposited  to the
         Class A-2 Redemption Account shall be retained therein and used to make
         Principal  Reduction Payments on the next succeeding Reset Date for the
         Class A-2 Notes. Amounts on deposit in the Class A-3 Redemption Account
         shall be used to make  Principal  Reduction  Payments  on the Class A-3
         Notes on the next succeeding Quarterly Distribution Date and to pay the
         principal  amount of the Class A-3 Notes upon their Stated  Maturity or
         upon their redemption in full; provided, however, that if the Class A-3
         Notes  constitute  Non-Amortizing  Reset Rate  Notes,  then the amounts
         deposited to the Class A-3 Redemption Account shall be retained therein
         and used to make Principal  Reduction  Payments on the next  succeeding
         Reset Date for the Class A-3 Notes. Amounts on deposit in the Class B-1
         Redemption  Account  shall be used to make  principal  payments  on the
         Class B-1 Notes upon their Stated Maturity or upon redemption, in whole
         or in part.  Amounts  on deposit  in the Class B-2  Redemption  Account
         shall be used to make  principal  payments  on the Class B-2 Notes upon
         their Stated Maturity or upon redemption, in whole or in part.

                  Notwithstanding  the foregoing,  if on any  Distribution  Date
         there are not sufficient  moneys on deposit in the  Collection  Fund to
         make the transfers  required by Section 5.04(c)(i) through (ix) hereof,
         then, any cash or Investment  Securities in an amount equal to any such
         deficiency shall be transferred  directly from the Accounts in the Note
         Payment Fund to the Collection  Fund to the extent such  deficiency has
         not  been  paid  from the  Acquisition  Fund.  Any  cash or  Investment
         Securities  required to be

                                       66
<PAGE>
                                                                    Exhibit 4.11

         transferred  from the Note Payment Fund shall be  transferred  from the
         Accounts  established  therein in the  following  order of  preference:
         First, on a pro rata basis,  from the Class B-1 Redemption  Account and
         the Class B-2 Redemption Account, second, on a pro rata basis, from the
         Class B-1 Interest Account and the Class B-2 Interest  Account;  third,
         from  the  Class  A-3  Redemption  Account  (but  solely  from  amounts
         deposited  therein since the preceding  Quarterly  Distribution  Date),
         fourth,  from the Class A-3 Redemption Account (but solely from amounts
         deposited  therein since the preceding  Quarterly  Distribution  Date),
         fifth, on a pro rata basis, from the Class A-1A Redemption  Account and
         the Class A-1B  Redemption  Account (but solely from amounts  deposited
         therein since the preceding Quarterly Distribution Date) and, sixth, on
         a pro rata basis, from the Class A-1A Interest Account,  the Class A-1B
         Interest  Account,  the Class A-2  Interest  Account  and the Class A-3
         Interest Account; provided,  however, cash or Investment Securities may
         not be removed from the Class B-1  Redemption  Account or the Class B-2
         Redemption  Account if such cash or Investment  Securities are required
         to redeem  Auction Rate Notes for which a notice of redemption has been
         given pursuant to Section 2.09(g) hereof. In addition,  (I) any amounts
         on  deposit  in the Class A-1A  Redemption  Account  may be used to pay
         Issuer Derivative Payments (including any Termination  Payments) on any
         Derivative Products corresponding to the Class A-1A Notes to the extent
         such payments have not been  previously paid from amounts on deposit in
         the  Collection  Fund or the  Acquisition  Fund;  (II) any  amounts  on
         deposit in the Class A-1B Redemption  Account may be used to pay Issuer
         Derivative  Payments  (including  any  Termination   Payments)  on  any
         Derivative Products corresponding to the Class A-1B Notes to the extent
         such payments have not been  previously paid from amounts on deposit in
         the  Collection  Fund or the  Acquisition  Fund;  (III) any  amounts on
         deposit in the Class A-2  Redemption  Account may be used to pay Issuer
         Derivative  Payments  (including  any  Termination   Payments)  on  any
         Derivative Products  corresponding to the Class A-2 Notes to the extent
         such payments have not been  previously paid from amounts on deposit in
         the Collection  Fund or the  Acquisition  Fund; and (IV) any amounts on
         deposit in the Class A-3  Redemption  Account may be used to pay Issuer
         Derivative  Payments  (including  any  Termination   Payments)  on  any
         Derivative Products  corresponding to the Class A-3 Notes to the extent
         such payments have not been  previously paid from amounts on deposit in
         the Collection Fund or the Acquisition Fund.

         Section 5.06. Remarketing Fee Fund.

                  (a)  Deposits  to the  Remarketing  Fee Fund.  There  shall be
         deposited  into the  Remarketing  Fee Fund the  proceeds  of the Series
         2004-1  Notes set  forth in  Section  2.11(b)  hereof  and all  amounts
         transferred  thereto  from the  Collection  Fund  pursuant  to  Section
         5.04(c)(i) hereof. On each Quarterly Distribution Date, an amount up to
         the  Aggregate  Quarterly  Funding  Amount  shall be  deposited  to the
         Remarketing Fee Fund pursuant to Section 5.04(c)(i) hereof.

                  (b) Use of Moneys in the  Remarketing  Fee  Fund.  Amounts  on
         deposit  in  the  Remarketing  Fee  Fund  shall  be  used  to  pay  the
         Remarketing  Fees  due on any  Class  of the  Reset  Rate  Notes on its
         corresponding  Reset Date. If the amount on deposit in the  Remarketing
         Fee Fund on any Quarterly  Distribution  Date, after the payment of any
         Remarketing Fees due on such Quarterly  Distribution  Date, exceeds the
         sum of the Reset

                                       67
<PAGE>
                                                                    Exhibit 4.11

         Period  Target  Amounts  for each  Class of the Reset Rate  Notes,  the
         Issuer may direct the Indenture  Trustee to transfer such excess to the
         Collection Fund on such Quarterly Distribution Date.

         Section 5.07. Reserve Fund.

                  (a) Deposits to the Reserve Fund. The Indenture  Trustee shall
         deposit to the Reserve Fund the proceeds of the Series 2004-1 Notes set
         forth in Section  2.11(c)  hereof.  If the Reserve Fund is used for the
         purposes  described  in  subsection  (b) this  Section,  the  Indenture
         Trustee shall restore the Reserve Fund to the Reserve Fund  Requirement
         with respect  thereto by transfers from the Collection Fund on the next
         Distribution Date pursuant to Section  5.04(c)(ix)  hereof. If the full
         amount  required  to  restore  the  Reserve  Fund to the  Reserve  Fund
         Requirement  is not  available  in the  Collection  Fund on  such  next
         succeeding  Distribution  Date, the Indenture Trustee shall continue to
         transfer funds from the Collection Fund as they become available and in
         accordance with Section  5.04(c)(ix) hereof until the deficiency in the
         Reserve Fund has been eliminated.

                  (b) Use of Moneys in the Reserve  Fund.  On each  Distribution
         Date,  to the extent there are  insufficient  moneys in the  Collection
         Fund to make the transfers required by Sections 5.04(c)(i) through (vi)
         hereof, then, the amount of such deficiency shall be paid directly from
         the Reserve Fund to the extent such  deficiency  has not been paid from
         the  Acquisition  Fund or the Note Payment  Fund.  Money in the Reserve
         Fund may be used to pay  principal on the Series  2004-1 Notes only (i)
         on the date of their Stated Maturity, (ii) upon a redemption in full of
         the Series 2004-1 Notes or (iii) in connection  with the  defeasance of
         this  Indenture in  accordance  with  Article X hereof.  On the date of
         redemption  of all of the Series 2004-1  Notes,  the Indenture  Trustee
         shall  transfer  all  amounts in the Reserve  Fund to the Note  Payment
         Fund.  On any  Distribution  Date that the amount in the  Reserve  Fund
         exceeds  the  Reserve  Fund  Requirement  with  respect  thereto,   the
         Indenture Trustee,  at the direction of the Issuer,  shall transfer the
         excess to the Collection Fund.

                  (c)  Substitution  of Reserve Fund Surety Bond. The Issuer may
         substitute  for  some  or  all  of  the  cash  deposit  required  to be
         maintained  in the  Reserve  Fund for a Reserve  Fund  Surety Bond upon
         receipt of a Rating Confirmation with respect to such substitution. Any
         such  Reserve  Fund Surety  Bond shall be  delivered  to the  Indenture
         Trustee who shall draw upon the Reserve Fund Surety Bond in  accordance
         with its terms and in the manner provided in a Supplemental  Indenture.
         Notwithstanding  any of the  foregoing,  amounts  available  under  any
         Reserve  Fund Surety Bond shall not be used to make any  payments  with
         respect to any Derivative Product.

         Section 5.08. Supplemental Interest Fund.

                  (a)  Deposits  to  the  Supplemental  Interest  Fund.  Amounts
         transferred from the Collection Fund to the Supplemental  Interest Fund
         pursuant   to  Section   5.04(c)(viii)   hereof  (i)   representing   a
         Supplemental  Interest  Deposit  Amount  corresponding  to  amounts  on
         deposit in the Class A-1A Redemption  Account shall be deposited to the
         Class  A-1A  Supplemental   Interest   Account,   (ii)  representing  a
         Supplemental  Interest

                                       68
<PAGE>
                                                                    Exhibit 4.11

         Deposit  Amount  corresponding  to amounts on deposit in the Class A-1B
         Redemption  Account  shall be deposited to the Class A-1B  Supplemental
         Interest Account,  (iii)  representing a Supplemental  Interest Deposit
         Amount  corresponding to amounts on deposit in the Class A-2 Redemption
         Account  shall be  deposited  to the  Class A-2  Supplemental  Interest
         Account  and(iv)  representing a Supplemental  Interest  Deposit Amount
         corresponding to amounts on deposit in the Class A-3 Redemption Account
         shall be deposited to the Class A-3 Supplemental Interest Account.

                  (b) Use of  Moneys  in the  Supplemental  Interest  Fund.  All
         amounts on deposit in any  Account of the  Supplemental  Interest  Fund
         shall  be  transferred  to  the  Collection   Fund  on  each  Quarterly
         Distribution Date.

         Section 5.09.  Transfers to Issuer.  Transfers from the Collection Fund
to the Issuer  may be made in  accordance  with  Section  5.04(c)(xvii)  hereof;
provided,  however,  that no transfer  of assets to the Issuer  shall be made if
there is not on  deposit  in the  Reserve  Fund an amount  equal to at least the
Reserve Fund Requirement;  and further provided,  that no transfer shall be made
to the Issuer unless the Issuer  certifies  that  immediately  after taking into
account any such  transfer,  the Total  Parity Ratio will be equal to or greater
than 101% (the "Asset Release Test").  The Asset Release Test may be modified at
any time upon receipt by the Indenture Trustee of a Rating Confirmation.

         Section  5.10.  Investment  of Funds  Held by  Indenture  Trustee.  The
Indenture Trustee shall invest money held for the credit of any Fund, Account or
Subaccount  held by the Indenture  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  Indenture  Trustee  shall  invest  amounts  held
hereunder  in  those  Investment  Securities  described  in  clause  (d)  of the
definition  of the  Investment  Securities.  All  income  and  earning  on  such
investments  shall be transferred  monthly to the Collection Fund. The Indenture
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 Indenture Trustee with respect to any
discretionary  acts  required or permitted of the  Indenture  Trustee  under any
Investment   Securities   and  the   Indenture   Trustee  shall  not  take  such
discretionary acts without such written direction.

         The  Investment  Securities  purchased  shall be held by the  Indenture
Trustee  and shall be deemed at all times to be part of such  Fund,  Account  or
Subaccount or combination  thereof,  and the Indenture  Trustee shall inform the
Issuer of the details of all such investments. Upon direction in writing from an
Authorized  Representative  of the Issuer,  the Indenture  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, Account
or Subaccount.  The Indenture 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

                                       69
<PAGE>
                                                                    Exhibit 4.11

Fund,  Account  and  Subaccount  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.

         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 Indenture Trustee and its affiliates may
act as principal or agent in the  acquisition  or  disposition of any Investment
Securities.

         Notwithstanding  the  foregoing,  the  Indenture  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,  subject to the terms and conditions of
Article VII hereof.

         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  5.11.  Investment  Securities.  Any  investment  of  funds  in
Investment  Securities  shall be held by a financial  institution  in accordance
with the following requirements:

                  (a) all Investment Securities shall be held in an account with
         such financial institution in the name of the Indenture Trustee;

                  (b) all  Investment  Securities  held in such account shall be
         delivered to the Indenture Trustee in the following manner:

                           (i) with respect to bankers' acceptances,  commercial
                  paper,   negotiable   certificates   of   deposit   and  other
                  obligations that constitute  "instruments"  within the meaning
                  of Section  9-102(a)(47)  of the UCC (other than  certificated
                  securities)   and  are   susceptible  of  physical   delivery,
                  transferred to the Indenture  Trustee by physical  delivery to
                  the Indenture Trustee,  endorsed to, or registered in the name
                  of, the Indenture Trustee or its nominee or endorsed in blank;
                  or such additional or alternative  procedures as may hereafter
                  become   appropriate  to  effect  the  complete   transfer  of
                  ownership of any such  Investment  Securities to the Indenture
                  Trustee free of any adverse claims, consistent with changes in
                  applicable law or regulations or the interpretation thereof;

                           (ii) with respect to a  "certificated  security"  (as
                  defined in Section 8-102(a)(4) of the UCC), transferred:

                                    (A)   by    physical    delivery   of   such
                           certificated   security  to  the  Indenture  Trustee,
                           provided  that  if the  certificated  security  is in
                           registered   form,   it  shall  be  endorsed  to,  or
                           registered in the name of, the  Indenture  Trustee or
                           endorsed in blank;

                                    (B)   by    physical    delivery   of   such
                           certificated   security  in  registered   form  to  a
                           "securities  intermediary"  (as  defined  in

                                       70
<PAGE>
                                                                    Exhibit 4.11

                           Section  8-102(a)(14) of the UCC) acting on behalf of
                           the Indenture  Trustee if the  certificated  security
                           has been specially  endorsed to the Indenture Trustee
                           by an effective endorsement;

                           (iii) with respect to any security issued by the U.S.
                  Treasury, the Federal Home Loan Mortgage Corporation or by the
                  Federal  National  Mortgage  Association  that is a book entry
                  security held through the Federal  Reserve System  pursuant to
                  Federal book entry regulations,  the following procedures, all
                  in  accordance  with  applicable  law,  including   applicable
                  federal  regulations  and  Articles  8 and 9 of the UCC:  book
                  entry  registration  of such property to an  appropriate  book
                  entry  account  maintained  with a Federal  Reserve  Bank by a
                  securities  intermediary which is also a "depositary" pursuant
                  to  applicable  federal   regulations  and  issuance  by  such
                  securities  intermediary  of a deposit advice or other written
                  confirmation of such book entry  registration to the Indenture
                  Trustee of the  purchase  by the  securities  intermediary  on
                  behalf of the Indenture  Trustee of such book entry  security;
                  the making by such  securities  intermediary of entries in its
                  books and records  identifying  such book entry  security held
                  through the Federal  Reserve  System  pursuant to Federal book
                  entry  regulations  as belonging to the Indenture  Trustee and
                  indicating that such securities  intermediary  holds such book
                  entry security solely as agent for the Indenture  Trustee;  or
                  such  additional  or  alternative  procedures as may hereafter
                  become appropriate to effect complete transfer of ownership of
                  any such Investment  Securities to the Indenture  Trustee free
                  of any adverse  claims,  consistent with changes in applicable
                  law or regulations or the interpretation thereof;

                           (iv) with  respect to any  "uncertificated  security"
                  (as  defined in Section  8-102(a)(18)  of the UCC) that is not
                  governed by clause (iii) above, transferred:

                                    (A)  (1) by  registration  to the  Indenture
                           Trustee as the registered owner thereof, on the books
                           and records of the issuer thereof; or

                                         (2)  by  registration to another Person
                                    (not a securities  intermediary) that either
                                    becomes   the   registered   owner   of  the
                                    uncertificated  security  on  behalf  of the
                                    Indenture  Trustee  or,  having  become  the
                                    registered owner, acknowledges that it holds
                                    for the Indenture Trustee; or

                                    (B) by the issuer thereof having agreed that
                           it will comply with  instructions  originated  by the
                           Indenture  Trustee  without  further  consent  of the
                           registered owner thereof;

                           (v) with respect to any  "security  entitlement"  (as
                  defined in Section 8-102(a)(17) of the UCC):

                                       71
<PAGE>
                                                                    Exhibit 4.11

                                    (A) if a securities intermediary

                                             (1)  indicates by book entry that a
                                    "financial  asset"  (as  defined  in Section
                                    8-102(a)(9) of the UCC) has been credited to
                                    the Indenture Trustee's "securities account"
                                    (as defined in Section 8-501(a) of the UCC);

                                             (2) receives a financial  asset (as
                                    so defined)  from the  Indenture  Trustee or
                                    acquires a financial asset for the Indenture
                                    Trustee, and, in either case, accepts it for
                                    credit to the Indenture Trustee's securities
                                    account (as so defined);

                                             (3) becomes  obligated  under other
                                    law,   regulation   or  rule  to   credit  a
                                    financial  asset to the Indenture  Trustee's
                                    securities account; or

                                             (4) has agreed  that it will comply
                                    with  "entitlement  orders"  (as  defined in
                                    Section  8-102(a)(8) of the UCC)  originated
                                    by the Indenture  Trustee,  without  further
                                    consent  by  the  "entitlement  holder"  (as
                                    defined in Section  8-102(a)(7) of the UCC);
                                    and

                                    (B)  such  financial  asset  either  is such
                           Investment   Security   or  a  security   entitlement
                           evidencing a claim thereto; and

                           (vi) in each case of delivery  contemplated  pursuant
                  to clauses (i) through (v) above, the Indenture  Trustee shall
                  make appropriate notations on its records, and shall cause the
                  same to be made on the  records  of its  nominees,  indicating
                  that such Investment Security is held in trust pursuant to and
                  as provided in this Indenture.

         Any cash held by the Indenture Trustee shall be considered a "financial
asset" for purposes of this paragraph.  Subject to the other provisions  hereof,
the Indenture  Trustee shall have sole control over each such investment and the
income  thereon,  and any  certificate or other  instrument  evidencing any such
investment,  if any, shall be delivered directly to the Indenture Trustee or its
agent,  together with each document of transfer,  if any,  necessary to transfer
title to such  investment  to the Indenture  Trustee in a manner which  complies
with this paragraph.

         The Indenture  Trustee agrees that it has no security interest or other
adverse  claim  to  the  Funds,  Accounts  and  Subaccounts  or  the  Investment
Securities therein that are part of the Trust Estate other than pursuant to this
Indenture  and that it will not enter  into any  agreement  that  would give any
Person or entity other than the Indenture  Trustee the right to give entitlement
orders with respect to such  Investment  Securities  or the Funds,  Accounts and
Subaccounts.

         Section 5.12. Release; Sale of Financed Eligible Loans.

                  (a) The Indenture Trustee shall, upon Issuer Order and subject
         to the  provisions  of this  Indenture,  take  all  actions  reasonably
         necessary to effect the release of

                                       72
<PAGE>
                                                                    Exhibit 4.11

         any  Financed  Eligible  Loans from the lien of this  Indenture  to the
         extent required by the Higher Education Act or other applicable laws.

                  (b) Subject to the payment of its fees and  expenses  pursuant
         to Sections 7.05 and 7.07 hereof,  the Indenture  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
         Indenture  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
         Indenture  Trustee  as  provided  in this  Article  shall  be  bound to
         ascertain  the  Indenture   Trustee's   authority,   inquire  into  the
         satisfaction  of any conditions  precedent or see to the application of
         any moneys.

                  (c) The Indenture  Trustee shall, at such time as there are no
         Series 2004-1 Notes  Outstanding and all sums due the Indenture Trustee
         pursuant  to Sections  7.05 and 7.07 hereof and all amounts  payable to
         any Servicer, the Administrator, the Auction Agent, the Broker-Dealers,
         the Remarketing Agents and the  Counterparties  have been paid, release
         any  remaining  portion of the Trust  Estate  that  secured  the Series
         2004-1 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 Indenture  Trustee shall release property from
         the lien of this  Indenture  pursuant to this  subsection (c) only upon
         receipt of an Issuer Order.

                                   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 the interest on
         any of the Class A Notes when 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
         on any of the Class A Notes when due and payable or failure to make any
         payment  due under  any other  Senior  Obligations  hereunder  when due
         (other than the failure to make Principal Reduction Payments);

                  (c)  if  no  Senior  Obligations  are  Outstanding  hereunder,
         default in the due and  punctual  payment of the interest on any of the
         Class B Notes when due and payable, and such default shall continue for
         a period of five (5) days;

                  (d)  if  no  Senior  Obligations  are  Outstanding  hereunder,
         default in the due and punctual  payment of the principal on any of the
         Class B Notes when due and  payable or failure to make any  payment due
         under any other Subordinate Obligations when due;

                  (e) 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

                                       73
<PAGE>
                                                                    Exhibit 4.11

         contained  in  this  Indenture  or in  the  Series  2004-1  Notes,  and
         continuation  of such  default  for a period of 90 days  after  written
         notice thereof by the Indenture Trustee to the Issuer; and

                  (f) the  occurrence of an Event of Bankruptcy  with respect to
         the Issuer.

Failure to pay any Reset Rate Notes  Carry-over  Amount,  any Auction Rate Notes
Carry-over  Amount or any interest on such Reset Rate Notes Carry-over Amount or
Auction Rate Notes Carry-over Amount shall not constitute an Event of Default.

         Any notice  herein  provided to be given to the Issuer with  respect to
any default shall be deemed  sufficiently  given if sent by certified  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 hereof or such other address as may
hereafter  be given as the  principal  office of the  Issuer in  writing  to the
Indenture Trustee by an Authorized  Representative of the Issuer.  The Indenture
Trustee  shall  give  such  notice  if  requested  to do so in  writing  by  the
Registered  Owners of at least a majority of the 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  Indenture  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 Program 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 Indenture  Trustee shall apply the
rest of the money received by the Indenture  Trustee as follows:  first,  to the
payment  of the  interest  in  default  on the  Class  A Notes  and  all  Issuer
Derivative  Payments  (excluding  all  Termination  Payments other than Priority
Termination  Payments)  which are paid on a parity with  interest on the Class A
Notes then due, in the order of the maturity of the installments  thereof,  with
interest on overdue  installments  thereof at the same rates,  respectively,  as
were borne by the Class A Notes on which such  interest  shall be in default and
with respect to such Issuer Derivative Payments then due as provided in the ISDA
Master  Agreement,  as the case may be, such  payments to be made ratably to the
parties entitled thereto without  discrimination  or preference,  second, to the
payment of the principal of all Class A Notes then due, such payments to be made
ratably to the parties  entitled thereto without  discrimination  or preference,
third,  to the  payment of the  interest in default on the Class B Notes and all
Issuer  Derivative  Payments  (excluding  all  Termination  Payments  other than
Priority  Termination  Payments) which are paid on a parity with interest on the
Class B Notes then due, in the order of the maturity of the installments thereof
with interest on overdue installments  thereof at the same rates,  respectively,
as were  borne by the Class B Notes on which such  interest  shall be in default

                                       74
<PAGE>
                                                                    Exhibit 4.11

and with respect to such Issuer Derivative  Payments then due as provided in the
ISDA Master  Agreement,  as the case may be, such payments to be made ratably to
the parties entitled thereto without  discrimination  or preference,  fourth, to
the payment of the  principal of all Class B Notes then due, such payments to be
made  ratably  to  the  parties  entitled  thereto  without   discrimination  or
preference,  fifth, to pay Reset Rate Notes Carry-over  Amounts (and any accrued
interest  thereon) on the Class A Notes, such payments to be made ratably to the
parties entitled  thereto without  discrimination  or preference,  sixth, to pay
Auction Rate Notes Carry-over  Amounts (and any accrued interest thereon) on the
Class B Notes,  such payments to be made ratably to the parties entitled thereto
without discrimination or preference,  seventh, to pay unpaid amounts (including
Termination  Payments) under a Derivative Product on which the Issuer Derivative
Payments  thereunder  are paid on a parity  with  interest on the Class A Notes,
such  payments  to be made  ratably  to the  parties  entitled  thereto  without
discrimination  or  preference,   eighth,  to  pay  unpaid  amounts   (including
Termination  Payments) under a Derivative Product on which the Issuer Derivative
Payments  thereunder  are paid on a parity  with  interest on the Class B Notes,
such  payments  to be made  ratably  to the  parties  entitled  thereto  without
discrimination or preference, and, ninth, to the Administrator,  to reimburse it
for any amounts paid by it to the Remarketing Agents pursuant to the Remarketing
Agreement.

         Section  6.03.  Remedies  on  Default;  Advice  of  Counsel.  Upon  the
happening of any Event of Default,  the Indenture Trustee may proceed to protect
and enforce the rights of the  Indenture  Trustee and the  Registered  Owners in
such manner as counsel  for the  Indenture  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  Indenture  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  Indenture  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
Indenture  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  Indenture
Trustee,  shall ratify and confirm any sale or sales by executing and delivering
to the Indenture Trustee or to such purchaser or purchasers all such instruments
as may be necessary, or in the judgment of the Indenture Trustee, proper for the
purpose  which may be designated  in such  request.  In addition,  the Indenture
Trustee may proceed to protect and enforce the rights of the  Indenture  Trustee
and the Registered  Owners of the  Obligations in such manner as counsel for the
Indenture  Trustee  may  advise,  whether for the

                                       75
<PAGE>
                                                                    Exhibit 4.11

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 may in the
opinion of such  counsel,  be more  effectual  to protect and enforce the rights
aforesaid.  The  Indenture  Trustee  shall  take any such  action or  actions if
requested to do so in writing by the Registered Owners of at least a majority of
the  principal  amount  of  the  Highest   Priority   Obligations  at  the  time
Outstanding.

         Notwithstanding the foregoing, the Indenture Trustee is prohibited from
selling the Financed Eligible Loans following an Event of Default,  other than a
default in the payment of any  principal or interest on any Series  2004-1 Note,
unless:

                  (a)  The  Registered  Owners  of all of the  Highest  Priority
         Obligations at the time Outstanding consent to such a sale;

                  (b)  The  proceeds  of  such  a sale  will  be  sufficient  to
         discharge all the Outstanding  Obligations pursuant to Article X hereof
         at the date of such a sale; or

                  (c) The  Administrator  determines that the collections on the
         Financed  Eligible Loans would not be sufficient on an ongoing basis to
         make all  payments  on such  Obligations  as such  payments  would have
         become due if such  Obligations  had not been declared due and payable,
         and the Indenture  Trustee obtains the consent of the Registered Owners
         of at least  66-2/3% of the aggregate  principal  amount of the Highest
         Priority Obligations at the time Outstanding.

         Such a sale shall also require the consent of all the Registered Owners
of the  Subordinate  Obligations  unless  the  proceeds  of such a sale would be
sufficient to discharge the Subordinate Obligations pursuant to Article X hereof
at the date of such a sale.

         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 Indenture  Trustee or of the Registered Owners under this Indenture
or otherwise, then as a matter of right, the Indenture 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 Indenture  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 Indenture  Trustee,  then and in every such case to
the extent not inconsistent with such adverse decree,  the Issuer, the Indenture
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  Indenture  Trustee and of the  Registered
Owners shall continue as though no such proceeding had been taken.

         Section 6.07. Purchase of Properties by Indenture 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 Indenture  Trustee,
may bid for and purchase  such

                                       76
<PAGE>
                                                                    Exhibit 4.11

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  Indenture
Trustee  and not  otherwise  appropriated,  shall be  applied  by the  Indenture
Trustee  as set  forth  in  Section  6.02  hereof,  and  then to the  Issuer  or
whomsoever shall be lawfully entitled thereto.

         Section 6.09.  Accelerated  Maturity. If an Event of Default shall have
occurred and be  continuing,  the  Indenture  Trustee may  declare,  or upon the
written  direction  by the  Registered  Owners of at least 66% of the  principal
amount of the Highest Priority Obligations then Outstanding,  shall declare, the
principal of all Obligations then Outstanding,  and the interest thereon, if not
previously due, immediately due and payable, anything in the Obligations or this
Indenture  to  the  contrary  notwithstanding;  provided,  however,  that  for a
declaration of  acceleration  upon a default  pursuant to Section 6.01(e) hereof
shall  require  the  consent  of a  majority  of the  Registered  Owners  of the
principal amount of the Highest Priority Obligations then Outstanding.

         Section 6.10.  Remedies Not Exclusive.  The remedies  herein  conferred
upon  or  reserved  to  the  Indenture  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  Indenture  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 Indenture 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. Direction of Indenture Trustee. Upon the happening of any
Event of Default,  the Registered Owners of at least a majority of the principal
amount of the Highest  Priority  Obligations  then  Outstanding,  shall have the
right by an  instrument  or  instruments  in writing  delivered to the Indenture
Trustee to direct and control the  Indenture  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 Indenture  Trustee to take any proceedings which in
the Indenture  Trustee's opinion would be unjustly  prejudicial to non-assenting
Registered Owners of Obligations, but the Indenture Trustee shall be entitled to
assume that the action requested by the Registered Owners of at least a majority
of the principal

                                       77
<PAGE>
                                                                    Exhibit 4.11

amount  of  the  Highest  Priority  Obligations  then  Outstanding  will  not be
prejudicial to any non-assenting  Registered Owners unless the Registered Owners
of at least a majority of the principal amount of the  non-assenting  Registered
Owners of such Obligations, in writing, show the Indenture Trustee how they will
be prejudiced.  Anything in this Indenture to the contrary notwithstanding,  the
Registered  Owners of at least a majority of the 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  Indenture  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 shall be
expressly subject to the provisions of Sections 7.01(c) and 7.05 hereof.

         Section  6.12.  Right to Enforce in Indenture  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 Indenture  Trustee,  unless and
until the  Indenture  Trustee fails to institute an action or suit after (a) the
Registered  Owners  of at  least  25% of the  Series  2004-1  Notes  shall  have
previously given to the Indenture Trustee written notice of a default hereunder,
and of the continuance thereof; (b) the Registered Owners of at least 25% of the
Series 2004-1 Notes shall have made written  request upon the Indenture  Trustee
and the Indenture  Trustee shall have been afforded  reasonable  opportunity  to
institute such action, suit or proceeding in its own name; and (c) the Indenture
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 Indenture Trustee to take any such action  hereunder,  and
the Indenture 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.

         The Indenture Trustee, solely in its capacity as trustee hereunder, and
the Registered  Owners covenant that they will not at any time institute against
the Issuer any bankruptcy,  reorganization or other proceeding under any federal
or state bankruptcy or similar law.

         Section 6.13. Physical  Possession of Obligations not Required.  In any
suit or action by the Indenture  Trustee  arising under this Indenture or on all
or any of the  Obligations  issued  hereunder,  or any  supplement  hereto,  the
Indenture 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.

                                       78
<PAGE>
                                                                    Exhibit 4.11

         Section 6.14.  Waivers of Events of Default.  The Indenture 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 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
or redemption 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  premium,  if any, and all
fees,  expenses of the Indenture 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  Indenture  Trustee  on  account of any such
default shall have been discontinued or abandoned or determined adversely to the
Indenture Trustee, then and in every such case the Issuer, the Indenture 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.

         Section 6.15.  Notice of Defaults.  Within 90 days after the occurrence
of any default  hereunder with respect to the Series 2004-1 Notes, the Indenture
Trustee shall transmit  notice of such default  hereunder to which an authorized
officer of the  Indenture  Trustee  has actual  knowledge  or is in receipt of a
written notice thereof in accordance  with the terms of this  Indenture,  unless
such default shall have been cured or 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 Series  2004-1  Note,  or in the  payment of any
sinking fund  installment with respect to the Series 2004-1 Notes, the Indenture
Trustee  shall be  protected  in  withholding  such  notice if and so long as an
authorized  officer of the Indenture  Trustee in good faith  determines that the
withholding  of such notice is in the interest of the  Registered  Owners of the
Series 2004-1 Notes.  For the purpose of this Section,  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 Series 2004-1 Notes.

                                  ARTICLE VII

                              THE INDENTURE TRUSTEE

         Section 7.01. Acceptance of Trust. The Indenture 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 Indenture 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 Indenture Trustee; and

                           (ii) in the  absence  of bad faith on its  part,  the
                  Indenture  Trustee may  conclusively  rely, as to the truth of
                  the statements and the  correctness of the

                                       79
<PAGE>
                                                                    Exhibit 4.11

                  opinions  expressed  therein,  upon  certificates  or opinions
                  furnished  to the  Indenture  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  Indenture
                  Trustee,  the  Indenture  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 Indenture 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 corporate  indenture trustee would
         exercise or use under the circumstances.

                  (c) Before taking any action hereunder requested by Registered
         Owners,  the  Indenture  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 Series  2004-1 Notes shall be taken
as  the  statements  of  the  Issuer,  and  the  Indenture  Trustee  assumes  no
responsibility  for the correctness of the same. The Indenture  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 Series 2004-1 Notes issued hereunder, and the Indenture
Trustee shall incur no responsibility in respect of such matters.

         Section 7.03. As to Filing of Indenture. The Indenture 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
maintenance  of the lien or  security  hereof,  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 Indenture  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 Indenture 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.

         Section 7.04.  Indenture Trustee May Act Through Agents.  The Indenture
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  Indenture  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.

                                       80
<PAGE>
                                                                    Exhibit 4.11

         Section 7.05.  Indemnification  of Indenture  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 Indenture
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 Indenture Trustee shall not be required
to take  notice,  or be deemed to have  knowledge,  of any  default  or Event of
Default of the Issuer or the Board of Directors  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)  through (d) 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 Indenture 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
Indenture Trustee,  without assurance of reimbursement or indemnity, and in such
case the Indenture  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
Indenture  Trustee.  In furtherance  and not in limitation of this Section,  the
Indenture  Trustee  shall not be liable for,  and shall be held  harmless by the
Issuer from,  following any Orders,  instructions or other directions upon which
the Indenture  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
Indenture  Trustee may reimburse  itself from any money in its possession  under
the  provisions  of  this  Indenture,  subject  only  to the  prior  lien of the
Obligations  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
Indenture  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 Indenture  Trustee for, and to hold
it harmless against,  any loss,  liability or expenses incurred by the Indenture
Trustee  on,   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,  unless  such  losses,  liabilities  and  expenses  are
adjudicated  to have resulted from the  negligence or willful  misconduct of the
Indenture  Trustee.  The  Issuer  agrees  to  indemnify  and hold  harmless  the
Indenture 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

                                       81
<PAGE>
                                                                    Exhibit 4.11

fact  contained in any offering  document  distributed  in  connection  with the
issuance  of the  Series  2004-1  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.  Indenture  Trustee's  Right to Reliance.  The Indenture
Trustee  shall be  protected  in acting  upon any notice,  resolution,  request,
consent, order, certificate,  report, appraisal,  opinion, report or document of
the Issuer or a 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
Indenture  Trustee may consult  with  experts and with counsel (who may but need
not be counsel for the Issuer, the Indenture Trustee,  or for a Registered Owner
or who may be Note  Counsel),  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  Indenture  Trustee  shall
reasonably  deem it desirable  that a matter be proved or  established  prior to
taking,  suffering,  or omitting any action  hereunder,  the  Indenture  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 Servicer.

         The  Indenture  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  Indenture  Trustee  shall be liable  for its  negligence  or
willful misconduct in taking such action, subject to the terms and conditions of
this Article.

         The Indenture Trustee is authorized,  under this Indenture,  subject to
Section 5.02 hereof, to sell, assign, transfer or convey Financed Eligible Loans
in  accordance  with  an  Issuer  Order.  If such  Financed  Eligible  Loan  was
originated  under the Higher Education Act, such Issuer Order shall certify that
the Person to whom such Financed Eligible Loan is sold,  assigned,  transferred,
or conveyed is an Eligible  Lender  unless not required by the Higher  Education
Act. The Indenture  Trustee is further  authorized to enter into agreements with
other Persons,  in its capacity as Indenture  Trustee,  in order to carry out or
implement the terms and provisions of this Indenture.

         The  Indenture  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  Series 2004-1 Notes relating to the time,
method and place of conducting any  proceeding  for any remedy  available to the
Indenture Trustee, or exercising any trust or power conferred upon the Indenture
Trustee, under this Indenture or any other transaction document.

         Section 7.07.  Compensation of Indenture  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  Indenture  Trustee  in

                                       82
<PAGE>
                                                                    Exhibit 4.11

and about the  execution  and  administration  of the trust  hereby  created and
reasonable  compensation  to the  Indenture  Trustee  for  its  services  in the
premises shall be paid by the Issuer.  The compensation of the Indenture Trustee
shall not be limited to or by any provision of law in regard to the compensation
of  trustees  of an express  trust.  If not paid by the  Issuer,  the  Indenture
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  Indenture  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 Indenture Trustee).

         Section  7.08.  Indenture  Trustee  May Own Series  2004-1  Notes.  The
Indenture  Trustee  hereunder,  or  any  successor  Indenture  Trustee,  in  its
individual or other  capacity,  may become the owner or pledgee of Series 2004-1
Notes and may otherwise deal with the Issuer, with the same rights it would have
if it  were  not  the  Indenture  Trustee.  The  Indenture  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 Series 2004-1 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 Indenture Trustee.  The Indenture Trustee
and any successor to the Indenture 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  Indenture  Trustee  shall  have been
appointed  pursuant to Section 7.11 hereof (and is qualified to be the Indenture
Trustee  under  the  requirements  of  Section  7.11  hereof).  If no  successor
Indenture 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 Indenture Trustee may (a) appoint a temporary  successor  Indenture
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 notice by the court,  or (ii) appoint a Indenture  Trustee having
the  qualifications  provided  in  Section  7.11  hereof.  In no  event  may the
resignation of the Indenture  Trustee be effective  until a qualified  successor
Indenture  Trustee  shall  have  been  selected  and  appointed.  In the event a
temporary successor Indenture Trustee is appointed pursuant to clause (a) above,
the Board of Directors may remove such temporary successor Indenture Trustee and
appoint a successor thereto pursuant to Section 7.11 hereof.

         Section 7.10.  Removal of Indenture  Trustee.  The Indenture Trustee or
any successor Indenture 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 (c) by the
Issuer  without  cause so long as no Event of Default as

                                       83
<PAGE>
                                                                    Exhibit 4.11

described in Sections 6.01(a), (b), (c), (d) or (f) exists or has existed within
the last 30 days, in each case upon payment to the Indenture  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  President  of the Issuer and the other with
the Indenture Trustee so removed.

         In the event an Indenture Trustee (or successor  Indenture  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 Indenture  Trustee  removed have appointed a successor  Indenture
Trustee or otherwise  the Issuer shall have  appointed a successor,  and (b) the
successor Indenture Trustee has accepted appointment as such.

         Section  7.11.  Successor  Indenture  Trustee.  In case at any time the
Indenture Trustee or any successor Indenture Trustee shall resign, be dissolved,
or otherwise shall be disqualified to act or be incapable of acting,  or in case
control of the Indenture Trustee or of any successor Indenture Trustee or of its
officers  shall be taken over by any public  officer or  officers,  a  successor
Indenture Trustee may be appointed by the Board of Directors by an instrument in
writing duly  authorized by resolution.  In the case of any such  appointment by
the Board of  Directors of a successor to the  Indenture  Trustee,  the Board of
Directors  shall  forthwith  cause notice thereof to be mailed to the Registered
Owners of the  Series  2004-1  Notes at the  address  of each  Registered  Owner
appearing on the note registration books maintained by the Indenture Trustee.

         Every successor  Indenture Trustee appointed by the Registered  Owners,
by a court of competent  jurisdiction,  or by the Board of Directors  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
Higher  Education  Act with respect to the Financed  Eligible  Loans  originated
under the Higher Education Act.

         Section  7.12.  Manner  of  Vesting  Title in  Indenture  Trustee.  Any
successor Indenture Trustee appointed hereunder shall execute,  acknowledge, and
deliver  to its  predecessor  Indenture  Trustee,  and  also to the  Issuer,  an
instrument  accepting such appointment  hereunder,  and thereupon such successor
Indenture  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   Indenture   Trustee  shall   continue  to  have  the  benefits  to
indemnification  hereunder together with the successor Indenture Trustee),  with
like  effect  as if  originally  named  as  Indenture  Trustee  herein;  but the
Indenture Trustee ceasing to act shall  nevertheless,  on the written request of
an Authorized  Representative  of the Issuer,  or an  authorized  officer of the
successor Indenture 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  Indenture Trustee all the right, title, and interest of the Indenture
Trustee which it

                                       84
<PAGE>
                                                                    Exhibit 4.11

succeeds, in and to pledged Revenue and Funds and such rights,  powers,  trusts,
duties,  and  obligations,  and the Indenture  Trustee ceasing to act also, upon
like request,  pay over, assign, and deliver to the successor  Indenture 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
Indenture Trustee for more fully and certainly vesting in and confirming to such
new Indenture 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 Series  2004-1  Notes to be issued  hereunder  shall
have been authenticated but not delivered,  any successor  Indenture Trustee may
adopt the  certificate  of  authentication  of the  Indenture  Trustee or of any
successor to the Indenture  Trustee;  and in case any of the Series 2004-1 Notes
shall not have been  authenticated,  any successor to the Indenture  Trustee may
authenticate  such Series  2004-1  Notes in its own name;  and in all such cases
such  certificate  shall have the full force which it has anywhere in the Series
2004-1 Notes or in this Indenture.

         Section 7.13.  Additional Covenants by the Indenture Trustee to Conform
to the Higher Education Act. The Indenture Trustee covenants that it will at all
times be an  Eligible  Lender  under the  Higher  Education  Act so long as such
designation  is  necessary,  as  determined  by  the  Issuer,  to  maintain  the
guarantees and federal  benefits under the Higher  Education Act with respect to
the Financed  Eligible  Loans,  that it will acquire  Eligible Loans  originated
under the Higher Education Act in its capacity as an Eligible Lender and that it
will not dispose of or deliver any Financed  Eligible Loans originated under the
Higher  Education  Act or any security  interest in any such  Financed  Eligible
Loans to any party who is not an Eligible Lender so long as the Higher Education
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 Indenture  Trustee from  delivering  the Eligible  Loans to a
Servicer or a 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 Indenture  Trustee to examine at
the  designated  corporate  trust office of the Indenture  Trustee a copy of any
report or instrument  theretofore  filed with the Indenture  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 Indenture  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 Indenture Trustee acknowledges
the receipt of a copy of the Servicing  Agreement,  dated as of January 1, 2004,
between the Issuer and Nelnet, Inc.

         Section 7.17.  Additional Covenants of Indenture Trustee. The Indenture
Trustee, by the execution hereof, covenants, represents and agrees that:

                                       85
<PAGE>
                                                                    Exhibit 4.11

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

         Section  7.18.  Duty  of  Indenture  Trustee  with  Respect  to  Rating
Agencies.  It shall be the duty of the  Indenture  Trustee to notify each Rating
Agency then rating any of the Series  2004-1  Notes (but the  Indenture  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 any or all  the  Series  2004-1  Notes,  (c)  any  change  in the
Indenture  Trustee  or (d) any  other  information  reasonably  requested  to be
reported  to each Rating  Agency;  provided,  however,  the  provisions  of this
Section do not apply when such documents have been  previously  supplied to such
Rating Agency and the Indenture  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 Services
                           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  Indenture  Trustee  also  acknowledges  that each Rating  Agency's
periodic  review for  maintenance  of a Rating on any Class of the Series 2004-1
Notes may  involve  discussions  and/or  meetings  with  representatives  of the
Indenture Trustee at mutually agreeable times and places.

         Section 7.19.  Merger of the Indenture  Trustee.  Any corporation  into
which the Indenture  Trustee may be merged or with which it may be consolidated,
or any  corporation  resulting  from any  merger or  consolidation  to which the
Indenture  Trustee  shall be a party,  or any  corporation  succeeding to all or
substantially  all of the corporate  trust  business of the  Indenture  Trustee,
shall  be the  successor  of the  Indenture  Trustee  hereunder,  provided  such

                                       86
<PAGE>
                                                                    Exhibit 4.11

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.

         Section 7.20.  Receipt of Funds from Servicers.  The Indenture  Trustee
shall not be accountable or responsible in any manner  whatsoever for any action
of the Issuer,  the  depository  bank of any funds of the Issuer,  or a Servicer
while such Servicer is acting as bailee or agent of the  Indenture  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 Indenture Trustee,  or for the application
of funds or moneys by such Servicer until such time as funds are received by the
Indenture Trustee.

         Section 7.21. Special Circumstances Leading to Resignation of Indenture
Trustee.   Because  the  Indenture  Trustee  serves  as  trustee  hereunder  for
Obligations of different priorities, it is possible that circumstances may arise
which will cause the  Indenture  Trustee to resign from its  position as trustee
for one or more of the  Obligations.  In the event  that the  Indenture  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
Indenture 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  Indenture  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  Indenture  Trustee's  Rights  to  Receive
Compensation,  Reimbursement and Indemnification. The Indenture Trustee's rights
to indemnity  and to receive  compensation  and  reimbursement  of money due and
owing to the Indenture Trustee  hereunder shall survive the Indenture  Trustee's
resignation or removal,  and the  termination and discharge of the trust created
by this Indenture.

         Section 7.23.  Indenture  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 Series  2004-1
Notes or the property of the Issuer or of such other obligor or their creditors,
the  Indenture  Trustee  (irrespective  of whether the  principal  of the Series
2004-1 Notes of any Class shall then be due and payable as therein  expressed or
by declaration or otherwise and  irrespective  of whether the Indenture  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:

                  (a) to file and prove a claim for the  whole  amount,  or such
         lesser  amount as may be provided for in the Series  2004-1  Notes,  of
         principal (and premium, if any) and interest,  if any, owing and unpaid
         in respect of the Series  2004-1 Notes and to file such other papers or
         documents  as may be necessary or advisable in order to have the claims
         of the  Indenture  Trustee  (including  any  claim  for the  reasonable
         compensation,  expenses,  disbursements  and advances of the  Indenture
         Trustee  and its  agents  and  counsel)  and of the  Registered  Owners
         allowed in such judicial proceeding; and

                                       87
<PAGE>
                                                                    Exhibit 4.11

                  (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 Series 2004-1 Notes to make such
         payments to the Indenture  Trustee,  and if the Indenture Trustee shall
         consent  to the  making of such  payments  directly  to the  Registered
         Owners,  to pay to the  Indenture  Trustee any amount due to it for the
         reasonable  compensation,  expenses,  disbursements and advances of the
         Indenture Trustee and any predecessor  Indenture Trustee,  their agents
         and counsel,  and any other  amounts due the  Indenture  Trustee or any
         predecessor Indenture Trustee.

         Nothing  herein  contained  shall be deemed to authorize  the Indenture
Trustee  to  authorize  or  consent  to or  accept  or  adopt on  behalf  of any
Registered   Owner  of  a  Series  2004-1  Note  any  plan  of   reorganization,
arrangement,  adjustment or composition affecting the Series 2004-1 Notes or the
rights of any Registered Owner thereof, or to authorize the Indenture Trustee to
vote in respect of the claim of any Registered  Owner of a Series 2004-1 Note in
any such proceeding.

         In any  proceedings  brought  by the  Indenture  Trustee  (and also any
proceedings  involving the  interpretation of any provision of this Indenture to
which the Indenture  Trustee shall be a party),  the Indenture  Trustee shall be
held to represent all the Registered  Owners of the Series 2004-1 Notes,  and it
shall not be necessary to make any Registered  Owners of the Series 2004-1 Notes
parties to any such proceedings.

         Section  7.24.  Payment of Taxes and Other  Governmental  Charges.  The
Indenture  Trustee  shall  request,  and  Register  Owners  shall  provide,  all
appropriate tax  certifications  and forms necessary to enable the Issuer or its
agents,  to determine their duties and liabilities  with respect to any taxes or
other charges that they may be required to pay, deduct or withhold in respect of
the Series  2004-1  Notes under any present or future law or  regulation  of the
United  States or any  present  or future  law or  regulation  of any  political
subdivision  thereof or taxing authority therein or to comply with any reporting
or  other  requirements  under  any law or  regulation,  and to pay,  deduct  or
withhold  any such  taxes or  charges  and  remit  them to the  relevant  taxing
authorities as required under law.

                                  ARTICLE VIII

                             SUPPLEMENTAL INDENTURES

         Section  8.01.   Supplemental   Indentures  Not  Requiring  Consent  of
Registered Owners. The Issuer and the Indenture 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  defect  or  omission  in this
         Indenture;

                  (b) to grant to or confer upon the  Indenture  Trustee for the
         benefit of the  Registered  Owners  any  additional  benefits,  rights,
         remedies,  powers or  authorities  that

                                       88
<PAGE>
                                                                    Exhibit 4.11

         may lawfully be granted to or conferred upon the  Registered  Owners or
         the Indenture Trustee;

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

                  (d) to  modify,  amend or  supplement  this  Indenture  or any
         Supplemental   Indenture  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 Series 2004-1 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  Supplemental  Indenture  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-Indenture
         Trustee or a co-registrar  or transfer agent or the succession of a new
         Indenture 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 Higher Education
         Act if along  with such  Supplemental  Indenture  there is filed a Note
         Counsel's  opinion 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 Series  2004-1 Notes an  investment
         grade  Rating  from  a  nationally  recognized  rating  service,  which
         changes,  in  the  opinion  of the  Indenture  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 Higher
         Education  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 and Article V hereof
         with respect to any particular Derivative Product;

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

                  (k) to amend  the  Indenture  to allow for any  Series  2004-1
         Notes to be supported  by a letter of credit or  insurance  policy or a
         liquidity agreement,  including amendments with respect to repayment to
         such a provider on a parity with any Series  2004-1 Notes or Derivative
         Product and  providing  rights to such provider  under this  Indenture,
         including with respect to defaults and remedies;

                  (l) to amend the Indenture to provide for use of a surety bond
         or  other  financial  guaranty   instrument  in  lieu  of  cash  and/or
         Investment  Securities  in all or any

                                       89
<PAGE>
                                                                    Exhibit 4.11

         portion of the Reserve Fund, so long as such action shall not adversely
         affect the Ratings on any of the Series 2004-1 Notes;

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

                  (n) to make any other  change  which,  in the  judgment of the
         Indenture  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 Indenture  Trustee  without the prior written
approval  of the  Indenture  Trustee,  which  approval  shall  be  evidenced  by
execution of a  Supplemental  Indenture.  The Issuer  shall  provide each Rating
Agency with prior written notice of any Supplemental Indenture.

         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 principal
amount  of each  Class  of  affected  Series  2004-1  Notes  and  each  affected
Derivative  Product then Outstanding shall have the right, from time to time, to
consent to and approve the execution by the Issuer and the Indenture  Trustee of
such  other  indenture  or  indentures  supplemental  hereto  as shall be deemed
necessary and desirable by the Issuer and/or  Indenture  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 each affected Series 2004-1 Note and any additional  consent  required
pursuant to any  Derivative  Product then  Outstanding,  (i) an extension of the
maturity  date of the  principal  of or the interest on any  Obligation,  (ii) a
reduction  in the  principal  amount of any  Obligation  or the rate of interest
thereon, (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 a Supplemental  Indenture,  (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
Indenture  Trustee without the prior written approval of the Indenture  Trustee.
The Issuer shall  provide each Rating  Agency with prior  written  notice of any
Supplemental Indenture.

         If at any time the Issuer  shall  request  that the  Indenture  Trustee
enter  into any such  Supplemental  Indenture  for any of the  purposes  of this
Section, the Indenture 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 designated  corporate  trust office
of the Indenture 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
principal

                                       90
<PAGE>
                                                                    Exhibit 4.11

amount  of each  Class  of  affected  Series  2004-1  Notes  and  each  affected
Derivative  Product then  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  Indenture  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 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
Higher  Education Act or granting of a security  interest  therein to any Person
other than an Eligible Lender or a Servicer,  unless the Higher Education Act or
Regulations are hereafter modified so as to permit the same.

                                   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 Indenture 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 Indenture 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 Series  2004-1  Notes held by any person  executing  such
instrument as a Registered  Owner of Series  2004-1 Notes and the fact,  amount,
and numbers of the Series  2004-1  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
Indenture Trustee, showing that at the date therein mentioned such person had on
deposit  with  such  depository  the  Series  2004-1  Notes  described  in  such
certificate;  provided,  however,  that at all times the  Indenture  Trustee may
require the actual  deposit of such Series  2004-1 Note or Series  2004-1  Notes
with the Indenture 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:

                                       91
<PAGE>
                                                                    Exhibit 4.11

         If intended for the Issuer:

                  Nelnet Education Loan Funding, Inc.
                  Suite 201
                  121 South 13 Street
                  Lincoln, Nebraska  68508
                  Attention: Terry Heimes
                  Telephone:  (402) 458-2303
                  Telecopier:  (402) 458-2399

                  If intended for the Indenture Trustee:

                  Wells Fargo Bank Minnesota, National Association
                  6th and Marquette, N9303-110
                  Minneapolis, Minnesota  55479
                  Attn: Corporate Trust Department
                  Telephone:  (612) 667-4802
                  Facsimile:  (612) 667-2149

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.

         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

                                       92
<PAGE>
                                                                    Exhibit 4.11

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 Indenture Trustee in pursuance of
such request or consent.

         Section 9.06. Nonliability of Directors;  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 Series 2004-1
Notes do not and shall never  constitute or give rise to a personal or pecuniary
liability or charge against the incorporators,  officers,  employees, agents, or
directors 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 Series 2004-1 Notes or Interest Checks.
Should any of the Series  2004-1 Notes or interest  checks not be presented  for
payment when due, the Indenture  Trustee shall retain from any money transferred
to it for the purpose of paying the Series  2004-1  Notes or interest  checks so
due, for the benefit of the Registered Owners thereof, a sum of money sufficient
to pay such Series  2004-1 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
Series 2004-1 Notes or interest checks and all rights of such Registered  Owners
against the Issuer  under the Series  2004-1  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 Series 2004-1
Note or interest  check shall not be presented for payment  within the period of
two years following its payment or redemption date, the Indenture  Trustee shall
return to the Issuer the money theretofore held by it for payment of such Series
2004-1 Note or interest  check,  and such Series  2004-1 Note or interest  check
shall  (subject  to  the  defense  of  any  applicable  statute  of  limitation)
thereafter  be an unsecured  obligation of the Issuer.  The Indenture  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  Nebraska  Uniform
Commercial Code.

         Section 9.09.  Laws  Governing.  It is the intent of the parties hereto
that this Indenture  shall be construed in accordance with the laws of the State
of Nebraska without reference to its conflict of law provisions.

         Section 9.10. Severability. If 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 Exhibits, if any, attached to
this Indenture are incorporated herein in all particulars.

                                       93
<PAGE>
                                                                    Exhibit 4.11

         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 Series
2004-1 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  Indenture  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 Indenture  Trustee,  the paying agent, if any, and
the Registered Owners of the Obligations.

         Section 9.14.  Obligations Are Limited  Obligations.  The Series 2004-1
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 Series
2004-1  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.  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
Series 2004-1 Notes and the Derivative Value of any Derivative Product.

         Section 9.17.  Financed Eligible Loans. The Issuer expects to originate
or  acquire  Eligible  Loans and to  transfer  Eligible  Loans to the  Indenture
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 9.18. No Petition; Subordination. Each of the Indenture Trustee
(solely in its capacity as trustee  hereunder) and the Registered  Owners hereby
covenants  and agrees that prior to the date which is one year and one day after
the  payment  in full of all  outstanding  Obligations,  it will  not  institute
against or join any other person or entity in instituting against the Issuer any
bankruptcy,  reorganization,  arrangement, insolvency or liquidation proceedings
or other similar  proceeding under the laws of the United States or any state of
the United  States.  Each of the  Indenture  Trustee and the  Registered  Owners
hereby  covenants  and agrees  that to the extent the Issuer  enters  into other
financing  transactions pursuant to which it pledges or otherwise conveys any of
its assets  (or  interests  therein)  (other  than the Trust  Estate) to another
person or Persons in

                                       94
<PAGE>
                                                                    Exhibit 4.11

connection  therewith ("Other Assets"),  then any interest,  claim or benefit in
such Other Assets is and shall be  expressly  subordinated  to the  indefeasible
payments in full of all obligations  and liabilities of the Issuer which,  under
the terms of the  relevant  documents  relating to the  financing  of such Other
Assets, are entitled to be paid from,  entitled to the benefits of, or otherwise
secured by such Other Assets, including the payment of post-petition interest on
such  other  obligations  and  liabilities.  This  Indenture  shall be  deemed a
subordination  agreement  within the meaning of Section 510(a) of the Bankruptcy
Code.

                                   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 Series 2004-1 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  Series
         2004-1 Notes, the principal of and interest on the Series 2004-1 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  Series  2004-1  Notes  shall  thereupon  cease,
         terminate,  and become void and be discharged  and  satisfied.  In such
         event,  the  Indenture  Trustee shall execute and deliver to the Issuer
         all such instruments as may be desirable to evidence such discharge and
         satisfaction,  and the Indenture  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.

                  (b) Series 2004-1 Notes and any other Obligations issued under
         this  Indenture will be considered to have been paid if money for their
         payment or redemption  has been set aside and is being held in trust by
         the  Indenture  Trustee.  Any  Outstanding  Series  2004-1 Note will be
         considered  to  have  been  paid  if the  Series  2004-1  Note is to be
         redeemed  on any date  prior  to its  stated  maturity  and  notice  of
         redemption  has been given as  provided in this  Indenture  and on said
         date there shall have been deposited with the Indenture  Trustee either
         money  or  Investment  Securities  described  in  clause  (a)  of  such
         definition,  the  principal  of and the interest on which when due will
         provide money sufficient to pay the principal of and interest to become
         due on the Series 2004-1 Note.

                  (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.

                                       95
<PAGE>
                                                                    Exhibit 4.11

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

         Section  10.03.  Cancellation  of Paid Series 2004-1 Notes.  Any Series
2004-1 Notes which have been paid by the Issuer,  mutilated  Series 2004-1 Notes
replaced by new Series  2004-1 Notes,  and any temporary  Series 2004-1 Note for
which definitive Series 2004-1 Notes have been delivered shall (unless otherwise
directed by the Issuer by Issuer Order)  forthwith be cancelled by the Indenture
Trustee and, except for temporary Series 2004-1 Notes, returned to the Issuer.

                                   ARTICLE XI

                                   TERMINATION

         Section 11.01. Termination of the Trust.

                  (a) The trust created by this  Indenture  (the "Trust")  shall
         terminate  upon the  earlier  of (i) the  later of (A)  payment  to the
         Registered  Owners and to the Indenture Trustee of all amounts required
         to be paid to them  pursuant  to this  Indenture  and any  Supplemental
         Indenture and the disposition of all property held as part of the Trust
         Estate or (B) the day  following  the date on which  all  reimbursement
         obligations to the Counterparties,  if any, and any other Person as may
         be provided for in any  Supplemental  Indenture have been paid in full,
         (ii) the  expiration of 21 years from the death of the last survivor of
         the descendants of Joseph P. Kennedy (the late ambassador of the United
         States to the Court of St. James) living on the date of this  Indenture
         or (iii) subject to subsection (d) of this Section, upon the occurrence
         of a  Liquidation  Event (as  hereinafter  defined).  The Issuer  shall
         promptly notify the Indenture  Trustee of any  prospective  termination
         pursuant to this Section.

                  (b)  Notice of any  prospective  termination,  specifying  the
         Distribution Date for payment of the final  distribution and requesting
         the  surrender of the Series  2004-1 Notes for  cancellation,  shall be
         given promptly by the Indenture  Trustee by letter to Registered Owners
         mailed not less than 10 nor more than 15 days  preceding  the specified
         Distribution  Date stating (i) the  Distribution  Date upon which final
         payment of the Series  2004-1  Notes shall be made,  (ii) the amount of
         any such final  payment,  and (iii) the location for  presentation  and
         surrender of the Series 2004-1 Notes. Payment of the final distribution
         which shall be made only upon  presentation and surrender of the Series
         2004-1 Notes at the  corporate  trust office of the  Indenture  Trustee
         specified in the notice.

                  (c) A  "Liquidation  Event" shall be deemed to have  occurred,
         subject to subsection  (d) of this  Section,  upon  Dissolution  of the
         Issuer.

                  (d) The Issuer  shall not  voluntarily  take any  action  that
         would  cause it to be  deemed  dissolved  within  the  meaning  of this
         Article.

                                       96
<PAGE>
                                                                    Exhibit 4.11

                  In the event of the  Dissolution  of the  Issuer or any action
         that would cause the Issuer to cease being deemed a general  partner of
         the Trust if the Trust were deemed a limited  partnership  formed under
         the Delaware Revised Uniform Limited  Partnership Act, and the Issuer's
         interest were deemed to represent the sole general partnership interest
         in such a partnership, the Trust shall terminate 90 days after the date
         of such event and its assets  liquidated in accordance  with subsection
         (e) of this Section unless both of the following occur:

                           (i) the  Registered  Owners  representing  Registered
                  Owner Approval,  as defined in Section 6.01 hereof, inform the
                  Indenture  Trustee  in  writing  before the end of such 90 day
                  period that they  disapprove of the  liquidation of the assets
                  of the Trust; and

                           (ii)  the  Issuer,  the  Indenture  Trustee  and  the
                  Counterparties, if any, shall receive an opinion of counsel to
                  the effect that the  continuation of the Trust shall not cause
                  the  Trust  to be  treated  as  an  association  taxable  as a
                  corporation for federal income tax purposes.

                  (e) Upon receipt by the  Indenture  Trustee from the Issuer of
         notice  of  the  occurrence  of a  Liquidation  Event  (as  defined  in
         subsection (c) of this Section),  the Indenture Trustee shall,  subject
         to the direction of the Registered Owners constituting Registered Owner
         Approval (provided that, if Registered Owners  constituting  Registered
         Owner  Approval shall not have provided such direction to the Indenture
         Trustee  within 30 days of the Indenture  Trustee having sent a written
         request for such  direction to the  Registered  Owners,  the  Indenture
         Trustee shall proceed without such direction) sell the remaining assets
         of  the  Trust  Estate,  if  any,  at  public  or  private  sale,  in a
         commercially  reasonable  manner and on commercially  reasonable terms.
         The Issuer agrees to cooperate with the Indenture Trustee to affect any
         such sale,  including by executing  such  instruments  of conveyance or
         assignment as shall be necessary or required by the purchaser. Proceeds
         of sale, net of expenses, shall be treated as collections on the assets
         of the Trust and shall be deposited  into the  Collection  Fund. On the
         next  Distribution Date the Indenture Trustee shall cause to be paid to
         Registered  Owners  and  the  Issuer  amounts   distributable  on  such
         Distribution   Date  pursuant  to  Article  V  hereof.   Following  the
         termination of the Trust,  all right,  title and interest in and to the
         Financed  Eligible  Loans  and  other  property  and funds in the Trust
         Estate (other than funds on deposit in certain accounts for the payment
         of expenses) shall be conveyed and transferred to the Issuer.

         Section  11.02.  Notice.  The  Indenture  Trustee  shall give notice of
termination of the Trust to the Issuer and each Rating Agency.

                                  ARTICLE XII

                             REPORTING REQUIREMENTS

         Section 12.01. Annual Statement as to Compliance. The Issuer will cause
each Servicer to deliver to the Administrator, each Rating Agency, the Indenture
Trustee and the

                                       97
<PAGE>
                                                                    Exhibit 4.11

Issuer,  on or before  March 15 of each year,  beginning  with March 15, 2004, a
certificate  dated as of December 31 of the  preceding  year  stating that (a) a
review of the  activities  of such Servicer  during the preceding  calendar year
(or,  in the case of the first such  certificate,  during  the  period  from the
Closing Date to December 31, 2004) and of its  performance  under its  Servicing
Agreement  has been made  under the  supervision  of the  officer  signing  such
certificate;  and (b) to the  best of such  officers'  knowledge,  based on such
review,  such  Servicer has fulfilled  all its  obligations  under its 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.

         Section 12.02. Annual Independent Public Accountants' Servicing Report.
Within  75  days  of  the  end  of  each  Servicer's   regular   fiscal-year  or
calendar-year  audit  period,  the  Issuer  shall  cause each  Servicer,  at its
expense,  to  cause  a firm of  independent  public  accountants  to  furnish  a
statement to the Administrator, each Rating Agency, the Issuer and the Indenture
Trustee to the effect that such firm has examined certain  documents and records
relating to the servicing of the Financed  Eligible  Loans (during the preceding
year) in  compliance  with  the  standards  for  Compliance  Audits  Attestation
Engagements for Lenders and Lender Servicers Participating in the Federal Family
Education  Loan  Program  and  that,  on the  basis  of such  examination,  such
servicing has been conducted in compliance with such servicing agreements except
for such  significant  exceptions  or errors in records  that, in the opinion of
such firm, requires it to report and which are set forth in such report.

         Section 12.03. Administrator's Certificate.  Each month, not later than
the 15th day of each month,  the  Administrator  shall  deliver to the Indenture
Trustee,  an  Officer's  Certificate  certifying  to the accuracy of the monthly
statement contemplated by Section 12.04 hereof.

         Section  12.04.  Statements  to  Registered  Owners.  On or before  the
fifteenth day of each month,  the Issuer shall provide to the Indenture  Trustee
(with a copy to the Rating Agencies) for the Indenture Trustee to forward within
five days of  receipt  to each  Registered  Owner,  a  statement  setting  forth
information with respect to the Series 2004-1 Notes and Financed  Eligible Loans
as of the end of the preceding month, the following to the extent applicable;

                  (a) the  amount of  payments  with  respect  to each  Class of
         Series 2004-1 Notes paid with respect to principal during the preceding
         month;

                  (b) the  amount of  payments  with  respect  to each  Class of
         Series 2004-1 Notes paid with respect to interest  during the preceding
         month;

                  (c) the amount of the  payments  allocable  to any  Registered
         Owners'  interest  carry-over,  if any,  together  with  any  remaining
         outstanding amount of each thereof;

                  (d) the principal balance of Financed Eligible Loans as of the
         close of business on the last day of the preceding month;

                  (e) the  aggregate  Outstanding  Amount of the  Series  2004-1
         Notes of each Class as of the close of  business on the last day of the
         preceding month, after giving effect to payments allocated to principal
         reported under clause (a) above;

                                       98
<PAGE>
                                                                    Exhibit 4.11

                  (f) the  interest  rate for any Class of variable  rate Series
         2004-1 Notes, indicating how such interest rate is calculated;

                  (g)  the  amount  of the  servicing  fees  allocated  to  each
         Servicer as of the close of  business on the last day of the  preceding
         month;

                  (h) the amount of the Program Expenses,  Realized Losses,  any
         Auction  Agent  fees,   Broker-Dealer  fees,  Remarketing  Agent  fees,
         Administrator  fees, Eligible Lender Trustee fees and Indenture Trustee
         fees, if any,  allocated as of the close of business on the last day of
         the preceding month;

                  (i) the amount of the  Recoveries  of  Principal  and interest
         received  during the  preceding  month  relating to  Financed  Eligible
         Loans;

                  (j) the amount of the payment  attributable  to amounts in the
         Reserve Fund, the amount of any other withdrawals from the Reserve Fund
         and the balance of the Reserve  Fund as of the close of business on the
         last day of the preceding month;

                  (k) the  portion,  if any,  of the  payments  attributable  to
         amounts on deposit in the  Acquisition  Fund,  the Class B Supplemental
         Reserve Fund and the Reserve Fund;

                  (l)  the  aggregate  amount,  if any,  paid  by the  Indenture
         Trustee  to  acquire  Eligible  Loans  from  amounts  on deposit in the
         Acquisition Fund during the preceding month;

                  (m) the amount  remaining in the Acquisition Fund that has not
         been used to acquire  Eligible  Loans and is being  transferred  to the
         Collection Fund, if any;

                  (n) the aggregate  amount,  if any, paid for Financed Eligible
         Loans purchased from the Issuer during the preceding month;

                  (o) the  number  and  principal  amount of  Financed  Eligible
         Loans,  as of the close of  business  on the last day of the  preceding
         month,  that  are  (i) 30 to 60  days  delinquent,  (ii)  61 to 90 days
         delinquent, (iii) 91 to 120 days delinquent, (iv) greater than 120 days
         delinquent   and  (v)  for  which  claims  have  been  filed  with  the
         appropriate Guaranty Agency and which are awaiting payment;

                  (p)  the   Aggregate   Value  of  the  Trust  Estate  and  the
         Outstanding  Amount  of the  Series  2004-1  Notes  as of the  close of
         business on the last day of the preceding month; and

                  (q) the number and percentage by dollar amount of (i) rejected
         federal reimbursement claims for Financed Eligible Loans, (ii) Financed
         Eligible Loans in  forbearance,  and (iii)  Financed  Eligible Loans in
         deferment.

         A copy of the  statements  referred  to above  may be  obtained  by any
Registered Owner by a written request to the Indenture Trustee, addressed to its
designated corporate trust office.

                                       99
<PAGE>
                                                                    Exhibit 4.11

         IN WITNESS  WHEREOF,  the Issuer,  the Eligible  Lender Trustee and the
Indenture  Trustee  have  caused  this  Indenture  to be duly  executed by their
respective Authorized Officers, thereunto duly authorized and duly attested, all
as of the day and year first above written.

                      NELNET EDUCATION LOAN FUNDING, INC.

                      By /s/ Terry J. Heimes
                         ------------------------------------------------------
                          Terry J. Heimes, President

                      WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, as
                      Indenture Trustee

                      By /s/ Scott E. Ulven
                         ------------------------------------------------------
                          Scott E. Ulven, Corporate Trust Officer

                      Acknowledged and accepted as to clause "C" of the Granting
                      Clauses as of the day and year first written above:

                      WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, as
                      Eligible Lender Trustee

                      By /s/ Scott E. Ulven
                         ------------------------------------------------------
                          Scott E. Ulven, Corporate Trust Officer

                                      100
<PAGE>
                                                                    Exhibit 4.11

                                   APPENDIX A

                         CERTAIN TERMS AND PROVISIONS OF
                              THE Reset RATE NOTES

                                    ARTICLE I

                                   DEFINITIONS

         Except as provided  below in this Section,  all terms which are defined
in Article I of the Indenture  shall have the same  meanings,  respectively,  in
this  Appendix  A as such  terms are given in  Article  I of the  Indenture.  In
addition, the following terms shall have the following respective meanings:

         "Accrual Period"` shall mean, with respect to a Quarterly  Distribution
Date and (a) a Class of the Reset Rate Notes that bears  interest  at a floating
rate of  interest,  the period  from and  including  the  immediately  preceding
Quarterly  Distribution  Date for such Class of the Reset Rate Notes,  or in the
case of the initial such period the Closing Date, to but excluding  such current
Quarterly  Distribution  Date;  provided  that,  if more than one Interest  Rate
Change  Date  occurs  for any Class of the Reset  Rate  Notes  within  any given
Accrual Period, the related rate of interest for the entire Accrual Period shall
be the weighted  average of the interest  rates  applicable on such Class of the
Reset Rate Notes for each day during such Accrual Period; and (b) a Class of the
Reset Rate  Notes  that bears  interest  at a fixed  rate,  the period  from and
including  the  immediately  preceding  Quarterly   Distribution  Date,  to  but
excluding the current Quarterly Distribution Date.

         "Actual/360" shall mean that interest is calculated on the basis of the
actual number of days elapsed in a year of 360 days.

         "Actual/365  (fixed)"  shall mean that  interest is  calculated  on the
basis of the actual number of days elapsed in a year of 365 days,  regardless of
whether accrual or payment occurs in a leap year.

         "Actual/Actual  (accrual basis)" shall mean that interest is calculated
on the basis of the actual  number of days elapsed in a year of 365 days, or 366
days for every day in a leap year.

         "Actual/Actual  (payment basis)" shall mean that interest is calculated
on the basis of the actual  number of days  elapsed in a year of 365 days if the
interest period ends in a non-leap year, or 366 days if the interest period ends
in a leap year, as the case may be.

         "All Hold Rate"  shall mean,  for a Class of the Reset Rate Notes,  the
applicable  Index plus or minus the related  Spread (with  respect to a Class of
the Reset  Rate  Notes  that  will  bear  interest  at a  floating  rate) or the
applicable  fixed  rate,  which  may be  expressed  as the  fixed  rate  pricing
benchmark  plus or minus a spread  (with  respect  to a Class of the Reset  Rate
Notes that will bear interest at a fixed rate), that the Remarketing  Agents, in
consultation  with the  Administrator,  determine will be in effect,  unless the
related Call Option is exercised,  in the event that 100% of

<PAGE>
                                                                    Exhibit 4.11

the  holders of that Class of the Reset  Rate Notes  choose to hold their  Reset
Rate Notes for the upcoming Reset Period. The All Hold Rate shall be a rate that
the Remarketing  Agents, in consultation with the  Administrator,  in their good
faith  determination,  believe  would  result in the  remarketing  of the entire
applicable  Class  of the  Reset  Rate  Notes  at a price  equal  to 100% of the
Outstanding  Amount  thereof;  provided,  however,  the All Hold Rate  shall not
exceed Three-Month LIBOR plus 0.75%.

         "Business  Day" shall mean,  with respect to the Reset Rate Notes,  (a)
with respect to calculating One-Month,  Two-Month and Three-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  Minneapolis,  Minnesota  are  authorized or
obligated by law, regulation or executive order to remain closed.

         "Call Option" shall mean, the option  described in Section 2.06 of this
Appendix A owned by  Nelnet,  Inc.  or one of its  subsidiaries  as a  permitted
transferee  (provided,  that no such subsidiary shall possess the Call Option if
it at any time  owned an  interest  in any of the  Financed  Eligible  Loans) to
purchase  100% of a Class of the Reset Rate Notes on each  related  Reset  Date,
exercisable  at a price equal to 100% of the  Outstanding  Amount of such Class,
less all amounts  distributed to the  Registered  Owners of the related Class of
the  Reset  Rate  Notes as a  payment  of  principal  on the  related  Quarterly
Distribution  Date,  plus any accrued and unpaid  interest  and Reset Rate Notes
Carry-over Amount not paid by the Issuer on the related  Quarterly  Distribution
Date,  and pursuant to the terms and conditions set forth in the Reset Rate Note
Procedures.

         "Call Rate" shall mean, for a Class of the Reset Rate Notes for which a
Call Option has been exercised, the rate of interest that is either: (a) if that
Class did not have at least one related  Derivative Product in effect during the
previous  Reset  Period,  the rate  applicable  for the most recent Reset Period
during which the Failed Remarketing Rate was not in effect; or (b) if that Class
had one or more related Derivative  Products in effect during the previous Reset
Period,  the weighted average of the floating rates of interest that were due to
the related  Counterparties from the Issuer during the previous Reset Period for
that Class.  This rate will  continue to apply for each Reset  Period  while the
holder of the Call Option retains that Class of the Reset Rate Notes.

         "Class A-1A Notes  Interest  Rate" shall mean,  for any Accrual  Period
after the initial Accrual Period, Three-Month LIBOR as determined on the related
LIBOR Determination Date, plus 0.07%, based on an Actual/360 accrual method. For
the initial Accrual Period, the Class A-1A Rate shall mean 1.25992%, based on an
Actual/360  accrual method. The Class A-1A Rate shall be changed on each related
Reset Date to the interest rate (which shall not exceed  Three-Month  LIBOR plus
0.75%) and Day Count  Basis that will be set forth in the notice  required to be
delivered by the  Administrator  and/or the  Remarketing  Agents on each related
Remarketing  Terms   Determination  Date  and  Spread   Determination  Date,  as
applicable,  pursuant  to the  procedures  set  forth  in the  Reset  Rate  Note
Procedures.

         "Class A-1B Notes  Interest  Rate" shall mean,  for any Accrual  Period
until and including  the Initial Reset Date for the Class A-1B Notes,  1.84% per
annum based on a 30/360 year,  except for the initial  Accrual Period which will
consist of 207 days.  The Class A-1B Rate shall be changed on each related Reset
Date to the interest rate (which shall not exceed  Three-Month

                                      A-2
<PAGE>
                                                                    Exhibit 4.11

LIBOR  plus  0.75%)  and Day Count  Basis  that will be set forth in the  notice
required to be delivered by the Administrator  and/or the Remarketing  Agents on
each related Remarketing Terms Determination Date and Spread Determination Date,
as  applicable,  pursuant  to the  procedures  set forth in the Reset  Rate Note
Procedures.

         "Class A-2 Notes  Interest  Rate"  shall mean,  for any Accrual  Period
after the initial Accrual Period, Three-Month LIBOR as determined on the related
LIBOR Determination Date, plus 0.11%, based on an Actual/360 accrual method. For
the initial Accrual Period, the Class A-2 Rate shall mean 1.29992%,  based on an
Actual/360  accrual method.  The Class A-2 Rate shall be changed on each related
Reset Date to the interest rate (which shall not exceed  Three-Month  LIBOR plus
0.75%) and Day Count  Basis that will be set forth in the notice  required to be
delivered by the  Administrator  and/or the  Remarketing  Agents on each related
Remarketing  Terms   Determination  Date  and  Spread   Determination  Date,  as
applicable,  pursuant  to the  procedures  set  forth  in the  Reset  Rate  Note
Procedures.

         "Class A-3 Notes  Interest  Rate"  shall mean,  for any Accrual  Period
after the initial Accrual Period, Three-Month LIBOR as determined on the related
LIBOR Determination Date, plus 0.15%, based on an Actual/360 accrual method. For
the initial Accrual Period, the Class A-3 Rate shall mean 1.33992%,  based on an
Actual/360  accrual method.  The Class A-3 Rate shall be changed on each related
Reset Date to the interest rate (which shall not exceed  Three-Month  LIBOR plus
0.75%) and Day Count  Basis that will be set forth in the notice  required to be
delivered by the  Administrator  and/or the  Remarketing  Agents on each related
Remarketing  Terms   Determination  Date  and  Spread   Determination  Date,  as
applicable,  pursuant  to the  procedures  set  forth  in the  Reset  Rate  Note
Procedures.

         "CMT Rate" shall mean,  for any relevant  Interest  Rate  Determination
Date prior to each related  Interest Rate Change Date, the rate displayed on the
applicable  Designated CMT Moneyline Telerate Page shown below by 3:00 p.m., New
York City time, on that Interest Rate  Determination Date under the caption ". .
.. Treasury  Constant  Maturities . . . Federal  Reserve  Board Release H.15. . .
..Mondays  Approximately  3:45 p.m.," under the column for: (a) if the Designated
CMT  Moneyline   Telerate  Page  is  7051,   the  rate  on  that  Interest  Rate
Determination  Date; or (b) if the  Designated  CMT  Moneyline  Telerate Page is
7052,  the average for the week,  the month or the quarter,  as specified on the
Remarketing Terms Determination Date, ended immediately before the week in which
the related Interest Rate Determination  Date occurs.  The following  procedures
will apply if the CMT Rate cannot be determined as described  above:  (i) if the
rate  described  above is not displayed on the relevant  page by 3:00 p.m.,  New
York City time on that Interest Rate Determination  Date, unless the calculation
is made earlier and the rate is available  from that source at that time on that
Interest  Rate  Determination  Date,  then  the CMT  Rate  will be the  Treasury
constant  maturity rate having the designated  index  maturity,  as published in
H.15(519) or another recognized  electronic source for displaying the rate; (ii)
if the applicable  rate described above is not published in H.15(519) or another
recognized  electronic  source for  displaying  such rate by 3:00 p.m., New York
City time on that Interest Rate  Determination  Date,  unless the calculation is
made earlier and the rate is available  from one of those  sources at that time,
then the CMT Rate will be the Treasury  constant  maturity rate, or other United
States  Treasury rate, for the index maturity and with reference to the relevant
Interest  Rate  Determination  Date,  that is  published  by either the Board of
Governors of the Federal  Reserve System or the United States  Department of the
Treasury and that the

                                      A-3
<PAGE>
                                                                    Exhibit 4.11

Administrator  determines to be comparable to the rate formerly displayed on the
Designated  CMT Moneyline  Telerate Page shown above and published in H.15(519);
(iii) if the rate described in the prior  paragraph  cannot be determined,  then
the Administrator will determine the CMT Rate to be a yield to maturity based on
the average of the secondary  market closing  offered rates as of  approximately
3:30 p.m., New York City time, on the relevant Interest Rate  Determination Date
reported,  according to their written records,  by leading primary United States
government  securities  dealers in New York City. The Administrator  will select
five  such  securities  dealers  and  will  eliminate  the  highest  and  lowest
quotations  or,  in  the  event  of  equality,  one of the  highest  and  lowest
quotations,   for  the  most  recently  issued  direct  noncallable  fixed  rate
obligations of the United States  Treasury  ("Treasury  Notes") with an original
maturity of approximately  the designated index maturity and a remaining term to
maturity  of not less than the  designated  index  maturity  minus one year in a
representative  amount;  (iv) if the Administrator  cannot obtain three Treasury
Note quotations of the kind described in clause (iii) above,  the  Administrator
will  determine the CMT Rate to be the yield to maturity based on the average of
the  secondary  market bid rates for  Treasury  Notes with an original  maturity
longer than the  designated  CMT index  maturity  which have a remaining term to
maturity  closest to the designated  CMT index maturity and in a  representative
amount,  as of  approximately  3:30 p.m.,  New York City time,  on the  relevant
Interest Rate  Determination  Date of leading  primary United States  government
securities  dealers in New York City.  In selecting  these  offered  rates,  the
Administrator will request quotations from at least five such securities dealers
and will  disregard the highest  quotation (or if there is equality,  one of the
highest) and the lowest quotation (or if there is equality,  one of the lowest).
If two Treasury Notes with an original  maturity  longer than the designated CMT
index  maturity have  remaining  terms to maturity that are equally close to the
designated CMT index maturity,  the Administrator will obtain quotations for the
Treasury Note with the shorter remaining term to maturity;  (v) if three or four
but not five leading  primary United States  government  securities  dealers are
quoting as described in the prior paragraph,  then the CMT Rate for the relevant
Interest Rate  Determination  Date will be based on the average of the bid rates
obtained  and neither the  highest  nor the lowest of those  quotations  will be
eliminated; or (vi) if fewer than three leading primary United States government
securities  dealers  selected by the  Administrator  are quoting as described in
clause (v) above,  the CMT Rate will  remain the CMT Rate then in effect on that
Interest Rate Determination Date.

         "Commercial  Paper Rate" shall mean,  for any  relevant  Interest  Rate
Determination  Date prior to each related  Interest  Rate Change Date,  the Bond
Equivalent Yield (as defined below) of the rate for 90-day  commercial paper, as
published in H.15(519)  prior to 3:00 p.m., New York City time, on that Interest
Rate Determination Date under the heading "Commercial  Paper--Financial." If the
rate  described  above is not published in H.15(519) by 3:00 p.m., New York City
time, on that Interest Rate  Determination  Date, unless the calculation is made
earlier  and the rate was  available  from that  source at that  time,  then the
Commercial  Paper  Rate  will be the  Bond  Equivalent  Yield of the rate on the
relevant Interest Rate Determination Date, for commercial paper having the index
maturity specified on the Remarketing Terms  Determination Date, as published in
H.15 Daily Update or any other recognized  electronic source used for displaying
that rate under the heading "Commercial  Paper--Financial." For purposes of this
definition  of  "Commercial  Paper  Rate," the "Bond  Equivalent  Yield"  equals
[(NxD)/[360(Dx90)] times 100], where "D" refers to the per annum rate determined
as set forth above,  quoted on a bank discount  basis and expressed as a decimal
and "N" refers to 365 or 366,  as the case may be. If the rate  described  above
cannot be determined, the Commercial Paper

                                      A-4
<PAGE>
                                                                    Exhibit 4.11

Rate will remain the commercial  paper rate then in effect on that Interest Rate
Determination Date.

         "Commercial  Paper Rate Minimum Purchase Amount" shall have the meaning
ascribed to such term in Section 2.07(b) of this Appendix A.

         "Day  Count  Basis"  means  30/360,  Actual/360,   Actual/365  (fixed),
Actual/Actual (accrual basis) or Actual/Actual (payment basis), as applicable.

         "Eligible  Counterparty"  shall  mean  any  entity,  which  may  be  an
affiliate  of a  Remarketing  Agent,  engaged in the  business of entering  into
derivative instrument contracts that satisfies the Rating Agency Condition.

         "Eligible Reset Rate Notes Carry-over  Make-Up Amount" shall mean, with
respect to each Accrual Period relating to a Class of the Reset Rate Notes as to
which,  as of the first day of such  Accrual  Period,  there is any unpaid Reset
Rate Notes  Carry-over  Amount,  an amount  equal to the lesser of (a)  interest
computed  on the  principal  balance  of such  Class of the Reset  Rate Notes in
respect to such Accrual Period at a per annum rate equal to the excess,  if any,
of the Net Loan Rate over the Class A-1A  Notes  Interest  Rate,  the Class A-1B
Notes  Interest  Rate,  the Class A-2 Notes Interest Rate or the Class A-3 Notes
Interest Rate, as applicable,  and (b) the aggregate Reset Rate Notes Carry-over
Amount remaining unpaid as of the first day of such Accrual Period together with
interest accrued and unpaid thereon through the end of such Accrual Period.

         "Failed  Remarketing"  shall mean, with respect to a Class of the Reset
Rate Notes and each related Reset Date, the situation  where (a) the Remarketing
Agents, in consultation with the Administrator,  cannot establish one or more of
the terms required to be set on the Remarketing  Terms  Determination  Date, (b)
the Remarketing  Agents are unable to establish the related Spread or fixed rate
of  interest  on the  Spread  Determination  Date or the Spread or fixed rate of
interest would exceed  three-month LIBOR plus 0.75%, (c) the Remarketing  Agents
are  unable to  remarket  some or all of the  tendered  Reset  Rate Notes at the
Spread or fixed rate of interest  established on the Spread  Determination  Date
and, in their sole discretion, elect not to purchase those Reset Rate Notes, (d)
any  failure of the Issuer to redeem a Class of Reset Rate Notes on a Reset Date
following the delivery of a notice of redemption or any failure of Nelnet, Inc.,
or one of its designated affiliates, to purchase a Class of the Reset Rate Notes
on a Reset  Date  following  the  exercise  of the Call  Option,  (e) any of the
conditions  specified in Section 8 of the  Remarketing  Agreement  have not been
satisfied or (f) any applicable Rating Agency Condition has not been satisfied.

         "Failed  Remarketing  Rate" shall mean, for any applicable Reset Period
and any Class of the Reset Rate Notes, Three-Month LIBOR plus 0.75%.

         "Federal  Funds  Rate"  shall  mean,  for any  relevant  Interest  Rate
Determination Date prior to each related Interest Rate Change Date, the rate set
forth for such day  opposite  the caption  "Federal  Funds  (effective)"  in the
weekly statistical release designated H.15(519),  or any successor  publication,
published by the Board of Governors of the Federal Reserve System.  If such rate
is not  published in the relevant  H.15(519)  for any day, the rate for such day
shall be the

                                      A-5
<PAGE>
                                                                    Exhibit 4.11

arithmetic mean of the rates for the last transaction in overnight Federal Funds
arranged  prior to 9:00 a.m.,  New York City  time,  on that day by each of four
leading  brokers in such  transactions  located in New York City selected by the
Administrator.  The Federal  Funds Rate for each Saturday and Sunday and for any
other  that is not a  Business  Day  shall  be the  Federal  Funds  Rate for the
preceding Business Day as determined above.

         "H.15(519)"  shall mean the weekly  statistical  release  designated as
such, or any successor  publication,  published by the Board of Governors of the
United States Federal Reserve System.

         "H.15  Daily  Update"  shall  mean  the  daily  update  for  H.15(519),
available  through  the  World  Wide Web site of the Board of  Governors  of the
Federal Reserve System at http://www.federalreserve.gov/releases/h15/update,  or
any successor site or publications.

         "Hold  Notice"  shall mean a written  statement  (or an oral  statement
confirmed  in  writing,  which  may  be by  e-mail)  by a  Registered  Owner  or
beneficial  owner of a Reset Rate Note  delivered to a  Remarketing  Agent on or
before the Notice Date that such Registered Owner or beneficial owner desires to
hold its Reset Rate Notes for the upcoming Reset Period and affirmatively agrees
to  receive a rate of  interest  of not less than the  applicable  All Hold Rate
commencing on the related Reset Date.

         "Index" or "Indices" shall mean LIBOR, a Commercial Paper Rate, the CMT
Rate, the Federal Funds Rate, the 91-day Treasury Bill Rate and the Prime Rate.

         "Index  Maturity" shall mean,  with respect to any Accrual Period,  the
interval  between  Interest Rate Change Dates for each  applicable  Index during
such Accrual Period, commencing on the first day of that Accrual Period.

         "Initial  Reset Date" shall mean,  for the Class A-1A Notes,  the Class
A-1B  Notes,  the  Class  A-2 Notes  and the  Class  A-3  Notes,  the  Quarterly
Distribution  Date in  August  of 2005,  August  of 2005,  November  of 2006 and
November of 2008, respectively.

         "Initial  Remarketing  Agency  Agreement"  shall  mean each  agreement,
substantially  in the form of  Appendix  A to the  Remarketing  Agreement  to be
entered  into on each  Remarketing  Terms  Determination  Date  (unless the Call
Option has been exercised) among the Remarketing  Agents,  the Administrator and
the Issuer.

         "Interest  Rate Change  Date" shall mean for each Accrual  Period,  the
date or dates,  based on the applicable Index, on which the rate of interest for
any Class of the Reset Rate Notes  bearing  interest at a floating rate is to be
reset.

         "Interest Rate Determination Date" shall mean, for each Accrual Period,
and (a) for any Class of the Reset  Rate  Notes  that bear  interest  at a LIBOR
based rate, the related LIBOR  Determination  Date; or (b) for each Class of the
Reset Rate Notes that bear  interest at a floating rate that is not LIBOR based,
the applicable date or dates set forth in the related  Remarketing Terms Notice,
on which the applicable  rate of interest to be in effect as of the next related
Interest Rate Change Date will be determined by the Administrator.

                                      A-6
<PAGE>
                                                                    Exhibit 4.11

         "LIBOR" shall mean One-Month  LIBOR,  Two-Month  LIBOR and  Three-Month
LIBOR, as applicable

         "LIBOR  Determination  Date" shall mean, for each Accrual  Period,  the
second Business Day before the beginning of that Accrual Period.

         "Nelnet  Eligible  Purchaser"  shall mean  Nelnet,  Inc.  or any of its
affiliates; provided that any such affiliate has at no time owned an interest in
any of the Financed Eligible Loans.

         "Net  Loan  Rate"  shall  mean,  with  respect  to any  Accrual  Period
applicable to a Class of the Reset Rate Notes,  the weighted  average  return on
the Financed  Eligible Loans,  including all Revenues derived from such Financed
Eligible  Loans,  less all Program  Expenses  expressed as a  percentage  of the
average  outstanding  principal balance of such Financed  Eligible Loans,  which
percentage  shall be calculated by the Issuer on a quarterly  basis,  in arrears
and provided to the Indenture Trustee and the Remarketing  Agents. In making the
determination  of the Net Loan Rate,  the Issuer  shall  take into  account  any
Counterparty Payments received and/or any Issuer Derivative Payments made.

         "91-day  Treasury Bill Rate" shall mean for any relevant  Interest Rate
Determination  Date,  prior to each related  Interest Rate Change Date, the rate
equal to the  weighted  average per annum  discount  rate  (expressed  as a bond
equivalent  yield and applied on a daily  basis) for direct  obligations  of the
United States with a maturity of thirteen weeks ("91-day  Treasury  Bills") sold
at the  applicable  91-day  Treasury Bill auction,  as published in H.15(519) or
otherwise or as reported by the U.S.  Department of the  Treasury.  In the event
that the results of the auctions of 91-day  Treasury Bills cease to be published
or reported as provided  above,  or that no 91-day Treasury Bill auction is held
in a particular  week,  then the 91-day Treasury Bill Rate in effect as a result
of the last such publication or report will remain in effect until such time, if
any,  as the  results  of  auctions  of 91-day  Treasury  Bills will again be so
published or reported or such auction is held, as the case may be.

         "Notice Date" shall mean, for each Class of the Reset Rate Notes, 12:00
noon,  New York City time, on the sixth  Business Day prior to the related Reset
Date.

         "One-Month LIBOR" see definition of "Three-Month LIBOR."

         "Prime Rate" shall mean, for any relevant  Interest Rate  Determination
Date prior to each related  Interest  Rate Change  Date,  the prime rate or base
lending rate on that date,  as published in H.15(519),  prior to 3:00 p.m.,  New
York City time, on that Interest Rate Determination Date under the heading "Bank
Prime Loan." The  Administrator  will observe the  following  procedures  if the
Prime Rate cannot be determined as described  above:  (a) if the rate  described
above is not published in H.15(519)  prior to 3:00 p.m.,  New York City time, on
the relevant  Interest Rate  Determination  Date unless the  calculation is made
earlier and the rate was available from that source at that time, then the Prime
Rate will be the rate for that Interest Rate Determination Date, as published in
H.15 Daily Update or another  recognized  electronic  source for displaying such
rate  opposite  the  caption  "Bank  Prime  Loan";  (b) if the above rate is not
published  in  either  H.15(519),   H.15  Daily  Update  or  another  recognized
electronic  source for displaying such rate by 3:00 p.m., New York City time, on
the relevant  Interest Rate  Determination  Date,  then the

                                      A-7
<PAGE>
                                                                    Exhibit 4.11

Administrator  will  determine  the Prime Rate to be the average of the rates of
interest  publicly  announced  by each bank that  appears on the Reuters  screen
designated  as  "USPRIME1"  as that bank's prime rate or base lending rate as in
effect on that Interest Rate  Determination  Date;  (c) if fewer than four rates
appear  on the  Reuters  screen  USPRIME1  page on the  relevant  Interest  Rate
Determination  Date,  then the Prime Rate will be the average of the prime rates
or base lending rates  quoted,  on the basis of the actual number of days in the
year  divided by a 360-day  year,  as of the close of business on that  Interest
Rate  Determination  Date by three major banks in New York City  selected by the
Administrator; or (d) if the banks selected by the Administrator are not quoting
as mentioned  above, the Prime Rate will remain the prime rate then in effect on
that Interest Rate Determination Date.

         "Pro rata Portion"  shall mean a percentage  determined by dividing the
Outstanding  Amount of a Class of the Reset Rate Notes  (less any amounts in the
redemption  account of the Note Payment Fund corresponding the such Class of the
Reset Rate Notes that were  deposited  therein prior to the preceding  Quarterly
Payment Date) by the Outstanding  Amount of all of the Series 2004-1 Notes (less
any  amounts  in the  redemption  accounts  of the Note  Payment  Fund that were
deposited therein prior to the preceding Quarterly Payment Date).

         "Pro rata Minimum  Purchase  Amount" shall have the meaning ascribed to
such term in Section 2.05(c) of this Appendix A.

         "Purchase  Option" shall mean the options  described in Section 2.07(a)
and (b) of this Appendix A owned by Nelnet, Inc. or one of its subsidiaries as a
permitted  transferee  (provided,  that no such  subsidiary  shall  possess  the
Purchase  Option  if it at any time  owned an  interest  in any of the  Financed
Eligible Loans) to purchase Financed Eligible Loans.

         "Reference  Banks" shall mean, four major banks in the London interbank
market selected by the Administrator.

         "Remarketing  Agency Agreement" shall mean the collective  reference to
an Initial Remarketing Agency Agreement and the related Supplemental Remarketing
Agency Agreement.

         "Remarketing Agents" shall mean, initially,  Credit Suisse First Boston
LLC or Deutsche Bank Securities Inc. The Administrator,  in its sole discretion,
may change any  Remarketing  Agent for any Class of the Reset Rate Notes for any
Reset Period at any time on or before a related  Remarketing Terms Determination
Date.

         "Remarketing Agreement" shall mean the Remarketing Agreement,  dated as
of January 30, 2004,  among the Issuer,  the  Administrator  and the Remarketing
Agents, as amended and supplemented pursuant to the terms thereof.

         "Remarketing Terms  Determination  Date" shall mean, for a Class of the
Reset Rate Notes,  not later than 3:00 p.m.,  New York City time,  on the eighth
Business Day prior to the applicable Reset Date.

         "Remarketing  Terms  Notice"  shall  mean the notice  delivered  by the
Remarketing  Agents to the applicable  Registered Owners of a Class of the Reset
Rate Notes,  the Indenture  Trustee

                                      A-8
<PAGE>
                                                                    Exhibit 4.11

and the Rating Agencies on each Remarketing Terms  Determination Date containing
the information set forth in the Reset Rate Note Procedures.

         "Reset Date" shall mean a Quarterly  Distribution Date on which certain
terms for any Class of the Reset Rate Notes may be  changed in  accordance  with
the Reset Rate Note Procedures.

         "Reset Period" shall mean, with respect to each Class of the Reset Rate
Notes, a period of at least three months (or any other longer duration that is a
multiple of three months) that will always end on a Quarterly Distribution Date,
which  will be the next  Reset  Date for such  Class of the  Reset  Rate  Notes;
provided,  that no Reset Period may end after the Stated  Maturity of such Class
of the Reset Rate Notes.

         "Reset Rate Note Procedures" shall mean Article II of this Appendix A.

         "Reset Rate Notes Carry-over  Amount" shall mean the excess, if any, of
(a) the amount of  interest  on a Reset Rate Note that would have  accrued  with
respect to the related  Accrual  Period at the interest rate for such Reset Rate
Note  established  pursuant to Section  2.01(b) of this  Appendix A over (b) the
amount of interest on such Reset Rate Note actually accrued with respect to such
Reset Rate Note with respect to such Accrual  Period based on the Net Loan Rate,
together  with the  unreduced  portion of any such  excess  from  prior  Accrual
Periods;  provided  that any  reference  to  "principal"  or  "interest"  in the
Indenture  and in this  Appendix A and the Reset Rate  Notes  shall not  include
within the meanings of such words any Reset Rate Notes Carry-over  Amount or any
interest accrued on any Reset Rate Notes Carry-over Amount.

         "Schedule  Replacement  Order"  shall  mean an Issuer  Order  replacing
Schedule A to the  related  Class of the Reset Rate Notes to be  delivered  with
respect to the related Reset Date.

         "Spread" shall mean the percentage determined by the Remarketing Agents
on the related Spread  Determination  Date, with respect to a Class of the Reset
Rate Notes that is to bear a floating  rate of  interest,  in excess of or below
the  applicable  Index that will be in effect with  respect to such Class of the
Reset Rate Notes during any Reset Period after the initial Reset Period so as to
result in a rate that, in the reasonable opinion of the Remarketing Agents, will
enable  all of the  tendered  Reset  Rate  Notes of the  applicable  Class to be
remarketed by the Remarketing  Agents at 100% of the Outstanding  Amount of such
Reset Rate Notes.

         "Spread  Determination  Date" shall  mean,  for each Class of the Reset
Rate Notes,  3:00 p.m.,  New York City time, on the third  Business Day prior to
the related Reset Date.

         "Spread  Determination  Notice" shall mean the notice  delivered by the
Remarketing  Agents to the Registered  Owners or beneficial owners of a Class of
the Reset Rate Notes,  the  Indenture  Trustee  and the Rating  Agencies on each
related Spread  Determination  Date  containing the information set forth in the
Reset Rate Note Procedures.

         "Supplemental  Remarketing Agency Agreement" shall mean each agreement,
substantially  in the form of  Appendix  B to the  Remarketing  Agreement  to be
entered into on each Spread  Determination Date (unless the Call Option has been
exercised  or a Failed

                                      A-9
<PAGE>
                                                                    Exhibit 4.11

Remarketing has been declared) among the Remarketing  Agents,  the Administrator
and the Issuer.

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

         "30/360"  shall  mean that  interest  is  calculated  on the basis of a
360-day year consisting of twelve 30-day months

         "Three-Month LIBOR," "Two-Month LIBOR" and "One-Month LIBOR" 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, Two-Month LIBOR and One-Month LIBOR in effect for
the applicable  Accrual Period will be Three-Month  LIBOR,  Two-Month  LIBOR and
One-Month LIBOR, as applicable, in effect for the previous Accrual Period.

         "Trust  Auction  Date" shall have the meaning  ascribed to such term in
Section 2.05(c) of this Appendix A.

         "Two-Month LIBOR" see definition of "Three-Month LIBOR."

                                   ARTICLE II

                           RESET RATE NOTE PROCEDURES

         Section 2.01.  Interest  Rates;  Principal  Payments;  Reset Rate Notes
Carry-over Amount.

                  (a) The Class A-1A Notes,  the Class A-1B Notes, the Class A-2
         Notes and Class A-3 Notes  will bear  interest  from the  Closing  Date
         through and including the related  Initial Reset Date,  payable on each
         Quarterly  Distribution  Date, at the rate set forth in the definitions
         of Class A-1A Notes  Interest  Rate,  Class A-1B Notes  Interest  Rate,
         Class A-2 Notes  Interest  Rate and  Class  A-3  Notes  Interest  Rate,
         respectively.  The applicable  interest rate for each subsequent  Reset
         Period  will be set forth on  Schedule A

                                      A-10
<PAGE>
                                                                    Exhibit 4.11

         to the  applicable  Reset Rate Note and  determined as set forth below.
         Interest on any Class of the Reset Rate Notes  after the initial  Reset
         Period may be reset to bear either a fixed or floating rate of interest
         at the  option of the  Remarketing  Agents,  in  consultation  with the
         Administrator,  but shall not  exceed  Three-Month  LIBOR  plus  0.75%.
         Interest  on each Class of the Reset  Rate Notes  shall be paid on each
         Quarterly  Distribution Date at the priority level set forth in Section
         5.04(c) of the Indenture.

                  (b) The interest  rate, or the mechanism for  calculating  the
         interest  rate,  on the Reset Rate Notes will be reset as of each Reset
         Date as determined by (i) the Remarketing  Agents, in consultation with
         the Administrator,  with respect to (A) the length of the Reset Period,
         (B) whether the rate is (1) fixed, and if fixed, the applicable pricing
         benchmark and Day Count Basis,  or (2) floating  and, if floating,  the
         applicable Index and Day Count Basis, (C) the applicable  Interest Rate
         Determination  Dates  within  each  Accrual  Period,  (D) the  interval
         between  Interest  Rate Change Dates during each  Accrual  Period,  (E)
         whether  the Reset  Rate  Notes  constitute  Non-amortizing  Reset Rate
         Notes,  and (F) the  related  All Hold Rate;  and (ii) the  Remarketing
         Agents, in their sole determination, with respect to the setting of the
         applicable  (A) fixed  rate of  interest,  or (B)  Spread to the chosen
         Index, as applicable.

                  (c) In the event that a Class of the Reset Rate Notes is reset
         to bear (or  continues  to bear) a fixed rate of interest or a floating
         rate of  interest  based on an Index  other than LIBOR or a  Commercial
         Paper Rate,  the  Administrator,  if required  pursuant to Section 2.10
         hereof, will be responsible for arranging,  on behalf of the Issuer and
         the  Trust  Estate,  one or  more  Derivative  Products  to  hedge  the
         floating/fixed rate of interest risk and, together with the Remarketing
         Agents, for selecting the Counterparties thereto in accordance with the
         procedures set forth in Section 2.10(d) of this Appendix A. No Class of
         the Reset Rate Notes will be reset (or  continue) to bear interest at a
         fixed rate or a floating  rate based on an Index  other than LIBOR or a
         Commercial  Paper Rate or shall  constitute  Non-Amortizing  Reset Rate
         Notes unless the Rating Agency Condition has been satisfied.

                  (d) Each Class of the Reset Rate Notes  shall be  entitled  to
         receive  Principal  Reduction  Payments on each Quarterly  Distribution
         Date,   unless   such  Class  of  the  Reset  Rate  Notes   constitutes
         Non-amortizing Reset Rate Notes, all as provided in Section 5.05 of the
         Indenture.

                  (e) If (A) the Commercial Paper Rate Trigger has occurred, (B)
         the  Class  A-1A  Notes  have  not  been   redeemed  on  the  Quarterly
         Distribution   Date  immediately   succeeding  the  occurrence  of  the
         Commercial  Paper  Trigger Rate and (C) the interest rate for the Class
         A-1A Notes  established  pursuant to Section 2.01(b) of this Appendix A
         is greater than the Net Loan Rate,  then the Class A-1A Notes  Interest
         Rate for that  Accrual  Period  will be the Net Loan  Rate.  If (A) the
         Commercial  Paper Rate Trigger has  occurred,  (B) the Class A-1B Notes
         have not been redeemed on the Quarterly  Distribution  Date immediately
         succeeding the occurrence of the Commercial  Paper Trigger Rate and (C)
         the  interest  rate for the Class A-1B Notes  established  pursuant  to
         Section  2.01(b) of this  Appendix A is greater than the Net Loan Rate,
         then the Class A-1B Notes Interest Rate for that Accrual Period will be
         the Net  Loan  Rate.  If

                                      A-11
<PAGE>
                                                                    Exhibit 4.11

         (A) the  Commercial  Paper Rate  Trigger has occurred (B) the Class A-2
         Notes  have  not  been  redeemed  on the  Quarterly  Distribution  Date
         immediately  succeeding the occurrence of the Commercial  Paper Trigger
         Rate and (C) the  interest  rate for the Class  A-2  Notes  established
         pursuant to Section  2.01(b) of this Appendix A is greater than the Net
         Loan  Rate,  then the Class A-2 Notes  Interest  Rate for that  Accrual
         Period  will be the Net Loan  Rate.  If (A) the  Commercial  Paper Rate
         Trigger has occurred (B) the Class A-3 Notes have not been  redeemed on
         the Quarterly  Distribution Date immediately  succeeding the occurrence
         of the Commercial  Paper Trigger Rate and (C) the interest rate for the
         Class  A-3  Notes  established  pursuant  to  Section  2.01(b)  of this
         Appendix A is greater than the Net Loan Rate,  then the Class A-3 Notes
         Interest Rate for that Accrual Period will be the Net Loan Rate. If the
         interest rate  applicable to such Class of the Reset Rate Notes for any
         Accrual  Period  is the Net Loan  Rate,  the  Indenture  Trustee  shall
         determine the Reset Rate Notes Carry-over  Amount, if any, with respect
         to such Reset Rate Notes for such Accrual Period. Such Reset Rate Notes
         Carry-over  Amount shall bear  interest  calculated  at a rate equal to
         One-Month  LIBOR (as  determined  by the  Administrator,  provided  the
         Indenture  Trustee  has  received  notice of  One-Month  LIBOR from the
         Administrator,  and if the  Indenture  Trustee  shall not have received
         such notice from the Administrator, then as determined by the Indenture
         Trustee) from the Quarterly  Distribution  Date for the Accrual  Period
         with  respect to which such  Reset  Rate  Notes  Carry-over  Amount was
         calculated,  until  paid.  Any  payment  in respect of Reset Rate Notes
         Carry-over  Amount  shall be applied,  first,  to any accrued  interest
         payable  thereon  and,  second,  in  reduction of such Reset Rate Notes
         Carry-over  Amount.  For purposes of the Indenture and this Appendix A,
         any reference to  "principal"  or  "interest"  herein shall not include
         within the meaning of such words Reset Rate Notes Carry-over  Amount or
         any interest  accrued on any such Reset Rate Notes  Carry-over  Amount.
         Such Reset Rate Notes Carry-over Amount shall be separately  calculated
         for each Reset Rate Note by the Indenture  Trustee  during such Accrual
         Period in sufficient  time for the Indenture  Trustee to give notice to
         each  Registered  Owner of such Reset Rate Notes  Carry-over  Amount as
         required  in the next  succeeding  sentence.  Not less  than  four days
         before  the  Quarterly  Distribution  Date for an Accrual  Period  with
         respect  to which such  Reset  Rate  Notes  Carry-over  Amount has been
         calculated by the Indenture  Trustee,  the Indenture Trustee shall give
         written notice to each Registered Owner, the Remarketing Agents and the
         Issuer of the Reset Rate Notes  Carry-over  Amount  applicable  to each
         Registered  Owner's Reset Rate Note, which written notice may accompany
         the  payment of  interest  made to each such  Registered  Owner on such
         Quarterly  Distribution  Date or  otherwise  shall  be  mailed  on such
         Quarterly  Distribution Date by first-class mail,  postage prepaid,  to
         each such  Registered  Owner at such  Registered  Owner's address as it
         appears  on  the  registration  records  maintained  by  the  Indenture
         Trustee.  In addition to such Reset Rate Notes Carry-over Amount,  such
         notice shall state,  that,  unless and until a Reset Rate Note has been
         redeemed (other than by optional  redemption),  after which  redemption
         all  accrued  Reset  Rate Notes  Carry-over  Amounts  (and all  accrued
         interest  thereon)  that remain  unpaid  shall be canceled and no Reset
         Rate Notes  Carry-over  Amount (or interest  accrued  thereon) shall be
         paid with respect to any redeemed  Reset Rate Note,  (a) the Reset Rate
         Notes Carry-over  Amount (and interest accrued thereon  calculated at a
         rate  equal  to  One-Month  LIBOR)  shall  be  paid  or,  in  case of a
         defeasance,  provided for by the Indenture Trustee on a Reset Rate

                                      A-12
<PAGE>
                                                                    Exhibit 4.11

         Note  on the  earliest  of (i)  the  date  of  defeasance  or  optional
         redemption  of the  Reset  Rate  Notes,  or (ii)  the  first  occurring
         Quarterly  Distribution Date if and to the extent that (x) the Eligible
         Reset  Rate  Notes  Carry-over  Make-Up  Amount  with  respect  to such
         subsequent  Accrual  Period is greater  than  zero,  and (y) moneys are
         available  pursuant  to  the  terms  of  the  Indenture  in  an  amount
         sufficient to pay all or a portion of such Reset Rate Notes  Carry-over
         Amount (and interest accrued thereon); and (b) interest shall accrue on
         the Reset Rate  Notes  Carry-over  Amount at a rate equal to  One-Month
         LIBOR until such Reset Rate Notes Carry-over  Amount is paid in full or
         is cancelled.

                  The Reset Rate Notes  Carry-over  Amount (and interest accrued
         thereon)  for  Reset  Rate  Notes  shall  be  paid  or,  in  case  of a
         defeasance,  provided for by the Indenture Trustee on Outstanding Reset
         Rate Notes on the  earliest of (a) the date of  defeasance  or optional
         redemption  of any of the Reset Rate  Notes or (b) the first  occurring
         Quarterly  Distribution Date if and to the extent that (i) the Eligible
         Reset Rate Notes Carry-over Make-Up Amount with respect to such Accrual
         Period is greater than zero,  and (ii) on such  Quarterly  Distribution
         Date  there are  sufficient  moneys in the  Collection  Fund to pay all
         interest  due on the Reset  Rate Notes on such  Quarterly  Distribution
         Date. Any Reset Rate Notes Carry-over  Amount (and any interest accrued
         thereon) on any Reset Rate Note which is due and payable on a Quarterly
         Distribution  Date,  when such  Class of the  Reset  Rate Note is to be
         redeemed  (other  than by  optional  redemption),  shall be paid to the
         Registered  Owner thereof on said  Quarterly  Distribution  Date to the
         extent  that  moneys are  available  therefor  in  accordance  with the
         provisions of this Appendix A; provided,  however,  that any Reset Rate
         Notes Carry-over Amount (and any interest accrued thereon) which is not
         yet due and  payable  on said  Quarterly  Distribution  Date  shall  be
         cancelled  with  respect to said Reset Rate Note that is to be redeemed
         (other than by optional redemption) on said Quarterly Distribution Date
         and shall not be paid on any succeeding Quarterly Distribution Date. To
         the extent that any portion of the Reset Rate Notes  Carry-over  Amount
         (and any interest  accrued  thereon)  remains unpaid after payment of a
         portion thereof,  such unpaid portion shall be paid in whole or in part
         as required  hereunder  until  fully paid or, in case of a  defeasance,
         provided for by the  Indenture  Trustee on the earliest of (a) the date
         of defeasance or optional  redemption of any of the Reset Rate Notes or
         (b)  the  next  occurring  Quarterly  Distribution  Date or  Dates,  as
         necessary,  if and to the  extent  that the  conditions  in the  second
         preceding sentence are satisfied. On any Quarterly Distribution Date on
         which the Indenture Trustee pays only a portion of the Reset Rate Notes
         Carry-over  Amount  (and any  interest  accrued  thereon) on Reset Rate
         Notes,  the Indenture  Trustee shall give written  notice in the manner
         set forth in the  immediately  preceding  paragraph  to the  Registered
         Owner of such Reset Rate Note  receiving  such  partial  payment of the
         Reset Rate Notes Carry-over  Amount remaining unpaid on such Reset Rate
         Note.

                  The  Quarterly  Distribution  Date or other date on which such
         Reset Rate Notes  Carry-over  Amount (or any interest  accrued thereon)
         for Reset Rate Notes shall be paid shall be determined by the Indenture
         Trustee in accordance with the provisions of the immediately  preceding
         paragraph,  and the  Indenture  Trustee shall make payment of the Reset
         Rate Notes Carry-over  Amount (and any interest accrued thereon) in the
         same manner as, and from the same Account from which,  it pays interest
         on the Reset Rate Notes on a Quarterly  Distribution  Date. Any payment
         of Reset Rate Notes  Carry-over

                                      A-13
<PAGE>
                                                                    Exhibit 4.11

         Amounts  (and  interest  accrued  thereon)  shall  reduce the amount of
         Eligible Reset Rate Notes Carry-over Make-Up Amount.

         Section 2.02.  End of Reset Period Notice.

                  (a) Unless  notice of the  exercise of the related Call Option
         as described in Section 2.06(c) of this Appendix A has been given,  the
         Administrator, not less than 15 nor more than 30 calendar days prior to
         any Remarketing Terms  Determination Date, will (i) give written notice
         (which may  include  facsimile  or other  electronic  transmission,  if
         permitted  pursuant  to the  recipient's  standard  procedures)  to the
         Securities Depository,  with a copy to the Indenture Trustee, notifying
         them of the upcoming  Reset Date and that the  applicable  Class of the
         Reset  Rate  Notes is subject  to  mandatory,  automatic  tender on the
         related Reset Date unless the applicable Registered Owner elects not to
         tender by the timely  delivery of a Hold Notice;  and (ii) request that
         the Securities  Depository  notify its  participants of the contents of
         that notice given to the Securities  Depository,  the Remarketing Terms
         Notice to be given on the Remarketing Terms Determination Date pursuant
         to Section 2.03(c) of this Appendix A, the Spread  Determination Notice
         to be  given on the  Spread  Determination  Date  pursuant  to  Section
         2.09(d) of this Appendix A, and the  procedures  concerning  the timely
         delivery of a Hold Notice  pursuant to Section 2.08 of this  Appendix A
         that must be  followed  if any  beneficial  owner of a Reset  Rate Note
         wishes to retain its Reset Rate Notes.

                  (b) The Administrator  will also include the names and contact
         information of any applicable Remarketing Agents confirmed or appointed
         by the Administrator on or before the date the notice given pursuant to
         subsection (a) of this Section,  or if no Remarketing  Agents have then
         been  so  chosen,  the  Administrator  will  provide  adequate  contact
         information for Registered Owners to receive information  regarding the
         upcoming Reset Date.

                  (c) If the Securities  Depository or its respective nominee is
         no longer the holder of record of the  related  Class of the Reset Rate
         Notes, the Administrator, or the Remarketing Agents on its behalf, will
         send the  Registered  Owners of those Reset Rate Notes,  with a copy to
         the  Indenture   Trustee,   the  required   notice  setting  forth  the
         information in subsections (a) and (b) of this Section not less than 15
         nor  more  than  30  calendar  days  prior  to  any  Remarketing  Terms
         Determination   Date.  In  addition,   in  the  event  that  Definitive
         Certificates evidencing an interest in the Reset Rate Notes are issued,
         the  Administrator  shall  cause the  Indenture  Trustee to provide any
         additional procedures applicable to such Reset Date while in definitive
         form to the related Registered Owners.

         Section 2.03. Remarketing Terms Determination Date.

                  (a) Subject to the  provisions of the  Remarketing  Agreement,
         prior to the  Remarketing  Terms  Determination  Date,  and  unless the
         related Call Option has been exercised, the Purchase Option pursuant to
         Section  2.07(b) of this Appendix A has been  exercised or the Financed
         Eligible  Loans have been  auctioned  pursuant to Section  2.13 of this
         Appendix A, the  Administrator  shall  re-affirm the  capability of the
         initial

                                      A-14
<PAGE>
                                                                    Exhibit 4.11

         Remarketing Agents to perform under the Remarketing Agreement, or enter
         into new remarketing  agreements  with other or additional  remarketing
         agents,  who shall function as the  Remarketing  Agents with respect to
         the related Reset Date. On each Remarketing Terms  Determination  Date,
         the Issuer,  the  Administrator  and the Remarketing  Agents will enter
         into an Initial Remarketing Agency Agreement for the remarketing of the
         related Class of the Reset Rate Notes.

                  (b) Unless the  related  Call Option has been  exercised,  the
         Purchase  Option  pursuant to Section 2.07 of this  Appendix A has been
         exercised or the Financed  Eligible Loans have been auctioned  pursuant
         to  Section  2.13  of this  Appendix  A,  the  Remarketing  Agents,  in
         consultation with the Administrator, will establish the following terms
         for the  applicable  Class of the Reset Rate  Notes by the  Remarketing
         Terms Determination Date:

                           (i) the expected  weighted average life of that Class
                  of the  Reset  Rate  Notes,  based  on  prepayment  and  other
                  assumptions customary for comparable securities;

                           (ii)  the  name  and  contact   information   of  the
                  Remarketing Agents;

                           (iii) the next  Reset  Date and  length of such Reset
                  Period;

                           (iv) the  interest  rate mode  (i.e.,  fixed  rate or
                  floating rate);

                           (v) if in floating rate mode, the applicable Index;

                           (vi) if in floating rate mode,  the interval  between
                  Interest Rate Change Dates;

                           (vii)  if  in  floating  rate  mode,  the  applicable
                  Interest Rate Determination Dates;

                           (viii) if in fixed rate mode,  the  applicable  fixed
                  rate pricing benchmark;

                           (ix) if in fixed rate mode,  whether  there will be a
                  related  Derivative  Product and, if so, the identities of the
                  Eligible  Counterparties from which bids will be solicited, if
                  any;

                           (x) if in floating rate mode, based on an Index other
                  than LIBOR or a Commercial Paper Rate, whether there will be a
                  related  Derivative  Product and, if so, the identities of the
                  Eligible  Counterparties from which bids will be solicited, if
                  any;

                           (xi) the  applicable  Accrual  Period  and Day  Count
                  Basis;

                           (xii) the related All Hold Rate;

                           (xiii)  whether  such  Class of the Reset  Rate Notes
                  will constitute Non-amortizing Reset Rate Notes;

                                      A-15
<PAGE>
                                                                    Exhibit 4.11

                           (xiv) the  formula  for  calculating  the  Make-whole
                  Premium, if any,

                           (xv) if Definitive Certificates are to be issued, the
                  procedures  for delivery and exchange  thereof and for dealing
                  with lost or mutilated Reset Rate Notes; and

                           (xvi)  any  other  relevant  terms  (other  than  the
                  related  Spread  or fixed  rate of  interest,  as  applicable)
                  incidental to the foregoing for the next Reset Period;

         provided, that any interest rate mode, other than a floating rate based
         on LIBOR or the  Commercial  Paper Rate,  will  require that the Rating
         Agency  Condition  be  satisfied  prior to the  delivery of the related
         Remarketing Terms Notice.

                  (c)  The  Remarketing  Agents  will  communicate  all  of  the
         information  established  in  subsection  (b) of  this  Section  in the
         Remarketing  Terms  Notice  required to be given in writing  (which may
         include  facsimile or other  electronic  transmission  if in accordance
         with the Securities Depository's standard procedures) to the Securities
         Depository or the Registered Owners (if not the Securities  Depository)
         of the applicable  Class of the Reset Rate Notes,  as  applicable,  the
         Indenture  Trustee and the Rating  Agencies on the related  Remarketing
         Terms Determination Date.

                  (d) In addition,  prior to the Remarketing Terms Determination
         Date, the Administrator shall cause the Schedule Replacement Order with
         respect  to the  Reset  Rate  Notes to be  delivered  to the  Indenture
         Trustee and the Securities Depository.

         Section 2.04. All Hold Rate. On each  Remarketing  Terms  Determination
Date, the Remarketing  Agents,  in  consultation  with the  Administrator,  will
establish the related All Hold Rate. If 100% of the Registered Owners of a Class
of the Reset Rate Notes deliver  timely Hold Notices  wherein they elect to hold
their Reset Rate Notes for the next Reset Period,  the related interest rate for
that Class during the  immediately  following  Reset Period will be the All Hold
Rate.  The All Hold  Rate  will be the  minimum  rate of  interest  that will be
effective for the upcoming Reset Period. If any of the related Registered Owners
are deemed to have tendered  their Class of the Reset Rate Notes and the rate of
interest  using the Spread or fixed rate of interest  established  on the Spread
Determination  Date is higher than the All Hold Rate, all Registered  Owners who
delivered a Hold Notice agreeing to be subject to the All Hold Rate instead will
be entitled to the higher rate of interest for the upcoming Reset Period.

         Section 2.05. Failed Remarketing.

                  (a) With  respect  to each  Reset Date for which the holder of
         the Call Option does not timely deliver written notice of its intention
         to  exercise  the Call  Option  pursuant  to  Section  2.06(a)  of this
         Appendix A or the holder of the Purchase Option does not timely deliver
         written  notice  of its  intention  to  exercise  its  Purchase  Option
         pursuant to Section  2.07(a) or (b) of this Appendix A and the Financed
         Eligible Loans have not been auctioned pursuant to Section 2.13 of this
         Appendix A and if any of the  conditions set forth in the definition of
         "Failed  Remarketing"  are  applicable,  a Failed  Remarketing  will be
         declared by the  Remarketing  Agents and the provisions of this Section
         will  apply.   In  order  to  prevent  the   declaration  of  a  Failed
         Remarketing,  the Remarketing  Agents will

                                      A-16
<PAGE>
                                                                    Exhibit 4.11

         have the option,  but not the  obligation,  to purchase  any Reset Rate
         Notes  tendered  that they are not  otherwise  able to remarket or with
         respect  to which a  committed  purchaser  defaults  on their  purchase
         obligations. If at any time a Failed Remarketing is declared on a Class
         of the Reset Rate Notes on the related Spread  Determination  Date, (i)
         all Reset  Rate Notes of such Class will be deemed to have been held by
         the applicable  Registered Owners on the related Reset Date, regardless
         of any  deemed  tenders  made to  Remarketing  Agents;  (ii)  except as
         provided in Section 2.01(e) of this Appendix A, the Failed  Remarketing
         Rate for such Class of the Reset Rate  Notes  will  apply;  and (iii) a
         Reset Period of three months will be established for such Class.

                  (b) If there is a Failed  Remarketing  of a Class of the Reset
         Rate  Notes,  Registered  Owners of that Class shall not be entitled to
         exercise  any remedies as a result of the failure of their Class of the
         Reset Rate Notes to be remarketed on the related Reset Date.

                  (c) If a Class of the Reset Rate Notes  bears  interest at the
         Failed  Remarketing Rate and the holder of the Purchase Option does not
         timely deliver written notice of its intention to exercise its Purchase
         Option  pursuant  to  Section  2.07(a) or (b) of this  Appendix  A, the
         Indenture  Trustee  (or its  designated  agent),  if  requested  by the
         Administrator,  shall offer for sale a Pro rata Portion of the Financed
         Eligible Loans held in the Trust Estate.  Any portfolio of the Financed
         Eligible  Loans  sold  pursuant  to the  Purchase  Option  set forth in
         Section  2.07(a)  of  this  Appendix  A  or  pursuant  to  the  auction
         procedures  described in this subsection (c) shall have  representative
         characteristics  substantially  equivalent  to  the  portfolio  of  all
         Financed   Eligible   Loans   including,   without   limitation,   such
         characteristics as average borrower indebtedness,  mix of type of loans
         (Stafford, PLUS, consolidation,  subsidized, unsubsidized), delinquency
         and default rate, loans in claim status,  maturity, type of educational
         institution  for which the loan funded costs of attendance  (four year,
         two  year,  proprietary  and  nonproprietary),  identity  of  Guarantee
         Agency,  and other  similar  characteristics  which may impact upon the
         value  of  such  Financed  Eligible  Loans.  Any  such  sale  shall  be
         consummated  at least two  Business  Days  prior to the next Reset Date
         (the "Trust Auction Date"). The Indenture Trustee shall provide written
         notice to the Issuer of any such offer for sale at least three Business
         Days in  advance  of the  Trust  Auction  Date.  If the  holder  of the
         Purchase  Option does not deliver  notice of its  intention to exercise
         the Purchase  Option and deliver an amount equal to the purchase  price
         within  25 days  following  a Reset  Date on which a Class of the Reset
         Rate  Notes  bears  interest  at  the  Failed   Remarketing  Rate,  the
         Administrator  may  instruct the  Indenture  Trustee to auction the Pro
         rata  Portion of the  Financed  Eligible  Loans.  Any  Nelnet  Eligible
         Purchaser may bid at any such auction. If at least two independent bids
         are received,  the Indenture  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 Indenture  Trustee shall accept the highest of such  remaining bids
         if it is at least equal to the Pro rata Minimum Purchase Amount. In the
         event  that only one or more  Nelnet  Eligible  Purchasers  bid at such
         auction and fewer than two independent bids are received, the Indenture
         Trustee  shall  accept the highest of such  remaining  bids if it is at
         least equal to the Pro rata Minimum Purchase Amount and the fair market
         value of such Financed Eligible Loans as of the Quarterly  Distribution
         Date  immediately  preceding  the Trust  Auction  Date.  If the highest

                                      A-17
<PAGE>
                                                                    Exhibit 4.11

         remaining bid is not equal to or in excess of the higher of the amounts
         described in the preceding two sentences,  the Indenture  Trustee shall
         not consummate  such sale. The Pro rata Minimum  Purchase  Amount means
         that amount, together with any amount on deposit in any related Account
         of the  Note  Payment  Fund,  the  Supplemental  Interest  Fund  or the
         Remarketing  Fee Fund  corresponding  to such  Class of the Reset  Rate
         Notes and a Pro rata  Portion of the  amounts on deposit in the Reserve
         Fund and the  Acquisition  Fund (other than Financed  Eligible  Loans),
         each after the  distribution  of  amounts on deposit in the  Collection
         Fund on the  most  recent  Distribution  Date,  which is equal to or in
         excess of the  amount  necessary  to redeem the Class of the Reset Rate
         Notes bearing  interest at the Failed  Remarketing Rate pursuant to the
         redemption  provisions of Section 2.09(b) of the Indenture,  to pay all
         amounts due  (including any Issuer  Derivative  Payments and applicable
         Termination  Payments) on any Derivative Product  corresponding to such
         Class of the  Reset  Rate  Notes and to pay a Pro rata  Portion  of any
         Program  Expenses to such  redemption  date. The Indenture  Trustee may
         consult,  and, at the direction of the Issuer,  shall  consult,  with a
         financial advisor,  including an Initial Purchaser, a Remarketing Agent
         or the  Administrator,  to  determine  if the fair market  value of the
         Financed  Eligible  Loans  has  been  offered  by any  Nelnet  Eligible
         Purchaser. From the proceeds of the sale of the Financed Eligible Loans
         and the amounts on deposit in the Funds and Accounts  described in this
         subsection (c), the Indenture Trustee shall deposit amounts  sufficient
         to  redeem  the  related  Class  of the  Reset  Rate  Notes on the next
         succeeding Reset Date pursuant to the mandatory  redemption  provisions
         of Section  2.09(b) of the Indenture  and to pay any Issuer  Derivative
         Payments  corresponding  to such  Class of the Reset  Rate  Notes  into
         separate Accounts  established by the Indenture Trustee within the Note
         Payment Fund and shall deposit the remainder to the Collection  Fund to
         pay the Pro rata  Portion of the  Program  Expenses to such Reset Date.
         The  Indenture  Trustee  shall  use the  amounts  on  deposit  in those
         Accounts to redeem such Class of the Reset Rate Notes on the applicable
         Reset Date and to pay all amounts due (including any Issuer  Derivative
         Payments  and  applicable   Termination   Payments)   pursuant  to  the
         corresponding  Derivative  Product.  If an auction is not completed and
         the Class of the Reset Rate Notes  continues  to bear  interest  at the
         Failed  Remarketing  Rate, the  Administrator may request the Indenture
         Trustee to solicit bids for the Financed Eligible Loans with respect to
         any  Quarterly  Distribution  Date for which the holder of the Purchase
         Option  described  in  Section  2.05(a)  of  this  Appendix  A has  not
         delivered  timely  notice of its  intention  to exercise  its  Purchase
         Option  or  delivered  an  amount  equal to the  purchase  price by the
         specified  date upon terms similar to those  described  above,  and the
         Indenture  Trustee  shall be  obligated to make such  solicitations  if
         requested to do so by the Administrator.

         Section 2.06. Call Option.

                  (a) With  respect to each Reset Date,  Nelnet,  Inc. is hereby
         granted a Call  Option for the  purchase  of not less than 100% of that
         Class of the Reset Rate Notes,  exercisable at a price equal to 100% of
         the Outstanding  Amount of that Class, less all amounts  distributed to
         the related  Registered  Owners of the Reset Rate Notes as a payment of
         principal on the related Quarterly  Distribution Date, plus any accrued
         and unpaid interest not paid by the Issuer on the applicable Reset Date
         and any Reset Rate

                                      A-18
<PAGE>
                                                                    Exhibit 4.11

         Notes  Carry-over  Amounts (and any accrued  interest  thereon) due and
         payable on such Class of the Reset Rate Notes (as described in Appendix
         A hereto).

                  (b) Nelnet,  Inc. may transfer ownership of the Call Option at
         any time to any Nelnet Eligible Purchaser.

                  (c) The Call Option may be  exercised  at any time on or prior
         to the Spread  Determination Date or before the declaration of a Failed
         Remarketing,  as  applicable,  by the holder  thereof by  delivering  a
         written  notice  stating its desire to exercise  the Call Option on the
         Reset Date to the Securities  Depository,  the Indenture  Trustee,  the
         Remarketing  Agents and the  Rating  Agencies;  provided  that the Call
         Option may not be exercised before the day following the last Quarterly
         Distribution Date immediately preceding the next applicable Reset Date.
         Once written  notice of the exercise of the Call Option is given,  such
         exercise  may  not be  rescinded.  All  amounts  due  and  owed  to the
         applicable Registered Owners shall be remitted on or before the related
         Reset  Date by the  holder of the Call  Option in  accordance  with the
         standard  procedures  established  by  the  Securities  Depository  for
         transfer  of  securities  to  ensure  timely  payment  to  the  related
         Registered Owners of the Reset Rate Notes.

                  (d) If the Call Option is exercised  with respect to any Class
         of the Reset Rate Notes,  (i) the  interest  rate on that Class will be
         the  Call  Rate;  and  (ii) a Reset  Period  of  three  months  will be
         established. At the end of such three month Reset Period, the holder of
         the  Call  Option  may  either  remarket  that  Class  pursuant  to the
         remarketing  procedures  set  forth  in  this  Appendix  A and  in  the
         Remarketing  Agreement or retain that Class for one or more  successive
         three-month  Reset Periods at the then existing Call Rate. In the event
         the holder of the Call  Option  chooses to  remarket  that Class of the
         Reset Rate Notes, such holder shall be solely responsible for all costs
         and expenses  relating to the preparation of any new offering  document
         and  any  other  related  costs  and  expenses   associated  with  such
         remarketing,  other than the fees of the  Remarketing  Agents,  as more
         fully set forth in Section 3 of the Remarketing Agreement.

                  (e) If notice  that the Call  Option is going to be  exercised
         with  respect to a Class of the Reset Rate Notes is given  pursuant  to
         subsection (c) of this Section,  but such Class of the Reset Rate Notes
         is not  purchased  on the Reset  Date,  a Failed  Remarketing  shall be
         deemed to have  occurred  and such Class of the Reset Rate Notes  shall
         bear interest at the Failed Remarketing Rate.

                  (f)  Other  than in  connection  with the  exercise  of a Call
         Option,  none of Nelnet,  Inc.,  the Issuer or any of their  affiliates
         shall have the ability to purchase any Reset Rate Notes tendered to the
         Remarketing Agents.

         Section 2.07. Purchase Options.

                  (a) Nelnet, Inc. is hereby granted an option to purchase a Pro
         rata Portion of Financed  Eligible  Loans held in the Trust Estate at a
         purchase  price equal to the greater of the Pro rata  Minimum  Purchase
         Amount and the fair market value of such Financed  Eligible Loans as of
         the Quarterly  Distribution Date immediately preceding the date of

                                      A-19
<PAGE>
                                                                    Exhibit 4.11

         sale for the purpose of redeeming  any Class of the Reset Rate Notes on
         any Reset Date  pursuant  to  Section  2.09(a)  of the  Indenture.  Any
         portfolio of Financed  Eligible Loans sold pursuant to this  subsection
         (a) shall have representative  characteristics substantially equivalent
         to the  portfolio of all Financed  Eligible  Loans  including,  without
         limitation, such characteristics as average borrower indebtedness,  mix
         of  type  of  loans   (Stafford,   PLUS,   consolidation,   subsidized,
         unsubsidized),  delinquency  and default  rate,  loans in claim status,
         maturity,  type of  educational  institution  for which the loan funded
         costs  of   attendance   (four   year,   two  year,   proprietary   and
         nonproprietary),  identity  of  Guarantee  Agency,  and  other  similar
         characteristics  which  may  impact  upon the  value  of such  Financed
         Eligible  Loans.  The holder of the Purchase Option shall exercise such
         option by  delivering a written  notice  stating its desire to exercise
         this option to the Securities  Depository,  the Indenture Trustee,  the
         Remarketing Agents and the Rating Agencies on the Spread  Determination
         Date for such Class of the Reset Rate Notes that it intends to exercise
         its  Purchase  Option and by  delivering  to the  Indenture  Trustee an
         amount equal to the purchase  price of such Financed  Eligible Loans on
         or before  the  second  Business  Day prior to the Reset  Date for such
         Class of the Reset Rate  Notes.  If the holder of the  Purchase  Option
         fails to provide the required notice or purchase  price,  such Class of
         the Reset Rate Notes shall bear interest at the Failed Remarketing Rate
         during the following Reset Period.  The Indenture  Trustee may consult,
         and, at the direction of the Issuer,  shall  consult,  with a financial
         advisor,  including an  underwriter  of the Series  2004-1 Notes or the
         Administrator,  to  determine  if the fair market value of the Financed
         Eligible Loans has been offered by any Nelnet Eligible Purchaser.  From
         the proceeds of the sale of the Financed Eligible Loans and the amounts
         on deposit in the Funds and Accounts  described in this subsection (a),
         the Indenture  Trustee shall deposit  amounts  sufficient to redeem the
         related Class of the Reset Rate Notes on the next succeeding  Quarterly
         Distribution  Date  occurring  after  August  1, 2005  pursuant  to the
         mandatory redemption provisions of Section 2.09(a) of the Indenture and
         to pay any Issuer  Derivative  Payments  corresponding to such Class of
         the  Reset  Rate  Notes  into  separate  Accounts  established  by  the
         Indenture  Trustee  within the Note Payment Fund and shall  deposit the
         remainder to the Collection  Fund. The Indenture  Trustee shall use the
         amounts on deposit in those  Accounts to redeem such Class of the Reset
         Rate  Notes on the  applicable  Reset  Date and to pay any such  Issuer
         Derivative Payments pursuant to the corresponding Derivative Product.

                  (b) If the Commercial Paper Rate Trigger has occurred, Nelnet,
         Inc.  is  hereby  granted  an option to  purchase  all of the  Financed
         Eligible  Loans held in the Trust  Estate at a purchase  price equal to
         the greater of the fair market value of such Financed Eligible Loans or
         the Commercial Paper Rate Minimum Purchase Amount. The Commercial Paper
         Rate  Minimum  Purchase  Amount  means the  amount,  together  with any
         amounts on deposit in the Funds established  pursuant to the Indenture,
         that is sufficient  to redeem the Series  2004-1 Notes  pursuant to the
         redemption  provisions of Section 2.09(e) and (f)(ii) of the Indenture,
         to pay all amounts due  (including any Issuer  Derivative  Payments and
         applicable  Termination  Payments) on any Derivative Product and to pay
         any Program  Expenses to the final redemption date of the Series 2004-1
         Notes.  The holder of the Purchase Option shall exercise such option by
         delivering written notice stating its desire to exercise this option to
         the  Securities  Depository,  the Indenture  Trustee,  the  Remarketing
         Agents and the Rating  Agencies at least  thirty (30) days prior to the
         next succeeding Quarterly Distribution Date that it intends to exercise
         its  Purchase  Option and by  delivering  to the  Indenture  Trustee an
         amount equal to the purchase  price  determined  as described  above at
         least  thirty  (30)  days  prior  to  the  next

                                      A-20
<PAGE>
                                                                    Exhibit 4.11

         succeeding  Quarterly  Distribution Date. If the holder of the Purchase
         Option fails to provide the required notice or an amount  sufficient to
         redeem the Series 2004-1  Notes,  the Trustee shall attempt to sell the
         Financed Loans held within the Trust Estate pursuant to Section 2.13 of
         this  Appendix  A. The  Indenture  Trustee  may  consult,  and,  at the
         direction  of the Issuer,  shall  consult,  with a  financial  advisor,
         including  an  initial  purchaser  or  remarketing  agent of the Series
         2004-1  Notes or the  Administrator,  to  determine  if the fair market
         value of the  Financed  Eligible  Loans has been  offered by any Nelnet
         Eligible  Purchaser.  From the  proceeds  of the  sale of the  Financed
         Eligible  Loans and the  amounts on  deposit in the Funds and  Accounts
         described in this subsection  (b), the Indenture  Trustee shall deposit
         amounts  sufficient  to redeem each Class of the Series 2004-1 Notes on
         the next succeeding  Quarterly  Distribution Date occurring on or after
         August 1, 2005 or  Auction  Rate  Distribution  Date,  as  appropriate,
         pursuant to the mandatory redemption  provisions of Section 2.09(e) and
         (f)(ii) of the  Indenture  and to pay all  amounts due  (including  any
         Issuer Derivative Payments and applicable  Termination Payments) on any
         Derivative Product into separate Accounts  established by the Indenture
         Trustee within the Note Payment Fund and shall deposit the remainder to
         the Collection Fund to pay the remaining  Program Expenses to the final
         redemption date of the Series 2004-1 Notes. The Indenture Trustee shall
         use the  amounts  on  deposit  in those  Accounts  to redeem the Series
         2004-1  Notes on their  Quarterly  Distribution  Date or  Auction  Rate
         Distribution  Date, as  appropriate,  and to pay any Issuer  Derivative
         Payments  (including all applicable  Termination  Payments) pursuant to
         the corresponding Derivative Product.

                  (c) Nelnet,  Inc. may transfer  ownership of either or both of
         the  Purchase  Options  described  in this  Section  at any time to any
         Nelnet Eligible Purchaser.

         Section  2.08.  Hold  Notice.  At any time on or after the  Remarketing
Terms  Determination  Date,  but on or prior to the Notice Date,  the Registered
Owners of the applicable Reset Rate Notes will have the option to deliver a Hold
Notice to any  Remarketing  Agent setting forth their desire to hold their Reset
Rate Notes for the next Reset Period at a rate of interest not less than the All
Hold Rate and on the terms set forth in the Remarketing Terms Notice.  Such Hold
Notice  may be  delivered  as an  oral  statement  to a  Remarketing  Agent,  if
subsequently  confirmed in writing within 24 hours, which confirmation may be in
the form of an e-mail if timely received by the applicable Remarketing Agent. If
a Registered Owner does not timely deliver a Hold Notice to a Remarketing  Agent
(and such Hold Notice will not be considered  delivered until actually  received
by such  Remarketing  Agent),  100% of that Registered  Owner's Reset Rate Notes
will be deemed to have been tendered for  remarketing.  Any duly  delivered Hold
Notice will be  irrevocable,  but will be subject to a  mandatory  tender of the
applicable Reset Rate Notes pursuant to any exercise of the related Call Option.
All of the Reset Rate Notes of an  applicable  Class,  whether or not  tendered,
will bear interest during any Reset Period on the same terms.

                                      A-21
<PAGE>
                                                                    Exhibit 4.11

         Section 2.09.  Spread Determination Date.

                  (a)  On  each  Spread  Determination  Date,  unless  a  Failed
         Remarketing  has been  declared  or the  related  Call  Option has been
         exercised,  the  Administrator,  the Issuer and the Remarketing  Agents
         will enter into a Supplemental Remarketing Agency Agreement.

                  (b)  If  pursuant  to  the  Remarketing   Terms  Notice,   the
         Remarketing  Agents,  in  consultation  with  the  Administrator,  have
         determined  that a Class of the Reset Rate Notes is to be reset to bear
         a fixed rate of interest,  then the  applicable  fixed rate of interest
         for the  corresponding  Reset Period will be  determined  on the Spread
         Determination Date by adding (i) the applicable spread as determined by
         the Remarketing Agents on the Spread  Determination  Date; and (ii) the
         yield to maturity on the Spread  Determination  Date of the  applicable
         fixed rate pricing  benchmark,  selected by the Remarketing  Agents, as
         having an expected weighted average life based on a scheduled  maturity
         at the  next  Reset  Date,  which  would  be  used in  accordance  with
         customary  financial  practice  in pricing  new issues of  asset-backed
         securities of comparable average life; provided that such fixed rate of
         interest will in no event be lower than the related All Hold Rate.  The
         Remarketing  Agents  shall  determine  the  applicable  fixed  rate  of
         interest  for such Class of the Reset Rate Notes (by  reference  to the
         applicable  fixed  rate  pricing  benchmark  plus or minus  the  spread
         determined on the Remarketing Terms  Determination Date) on each Spread
         Determination Date irrespective of whether no remarketing will occur as
         the result of the application of the All Hold Rate.

                  (c)  If  pursuant  to  the  Remarketing   Terms  Notice,   the
         Remarketing  Agents,  in  consultation  with  the  Administrator,  have
         determined  that a Class of the Reset Rate Notes is to be reset to bear
         a floating rate of interest,  then, on the related Spread Determination
         Date, the Remarketing Agents will establish the applicable Spread to be
         added or  subtracted  from the  applicable  Index;  provided  that such
         floating  rate of  interest  will in no event be lower than the related
         All Hold Rate.

                  (d) On or immediately following the Spread Determination Date,
         the Remarketing  Agents will communicate in writing the contents of the
         Spread  Determination  Notice to the Securities  Depository  (which may
         include  facsimile or other  electronic  transmission  if in accordance
         with  the  recipient's   standard   procedures)  with  instructions  to
         distribute  such  notice its  related  participants  or the  Registered
         Owners of the applicable  Class of the Reset Rate Notes, as applicable,
         the Indenture Trustee and the Rating Agencies. The Spread Determination
         Notice  will  contain:  (i) the  determined  Spread  or  fixed  rate of
         interest,  as the case may be, or, if applicable,  a statement that the
         All Hold Rate or the Failed Remarketing Rate will be in effect; (ii) if
         applicable,    the   identity   of   any   selected   Counterparty   or
         Counterparties;  (iii) if  applicable,  the floating rate (or rates) of
         interest to be due to each selected  Counterparty on each  Distribution
         Date during the upcoming Reset Period;  and (iv) any other  information
         that the Administrator or the Remarketing Agents deem applicable.

                                      A-22
<PAGE>
                                                                    Exhibit 4.11

         Section 2.10. Derivative Products.

                  (a)  If the  Remarketing  Agents,  in  consultation  with  the
         Administrator,  (i) have  determined that the interest rate for a Class
         of the Reset Rate Notes for the next Reset  Period  will be based on an
         Index other than LIBOR or a Commercial  Paper Rate;  and (ii) determine
         that entering  into a Derivative  Product with respect to such Class of
         the Reset Rate Notes would be in the best  interest of the Trust Estate
         based  on  existing  market  conditions,   then  on  or  prior  to  the
         Remarketing Terms  Determination  Date, the Administrator  will arrange
         for, and, on the related  Reset Date,  will enter into (not for its own
         account  but  solely as  Administrator  on behalf of the Issuer and the
         Trust Estate) or will instruct the Indenture Trustee to enter into (not
         in its individual capacity but solely as Indenture Trustee) one or more
         Derivative  Products with one or more Eligible  Counterparties  for the
         next Reset Period to hedge against some or all of the basis risk.

                  (b)  If the  Remarketing  Agents,  in  consultation  with  the
         Administrator,  (i) have  determined that the interest rate for a Class
         of the Reset Rate Notes for the next Reset  Period will be a fixed rate
         and (ii) determine that entering into a Derivative Product with respect
         to such Class of the Reset Rate Notes would be in the best  interest of
         the Trust Estate based on existing market conditions,  then on or prior
         to the Remarketing Terms  Determination  Date, the  Administrator  will
         arrange for, and, on the related  Reset Date,  will enter into (not for
         its own account but solely as Administrator on behalf of the Issuer and
         the Trust Estate) or will instruct the Indenture  Trustee to enter into
         (not in its individual capacity but solely as Indenture Trustee) one or
         more Derivative  Products with one or more Eligible  Counterparties for
         the next Reset Period to  facilitate  the  Issuer's  ability to pay the
         applicable Class of the Reset Rate Notes interest at its fixed rate.

                  (c) In  exchange  for  providing  to the  Issuer  the  related
         Counterparty  Payment, each Counterparty will be entitled to receive on
         each Distribution Date from the Issuer an Issuer Derivative  Payment in
         the priority set forth in Section 5.04(c) of the Indenture.

                  (d) The Administrator and the applicable  Remarketing  Agents,
         in determining  the  Counterparty to the required  Derivative  Product,
         will solicit bids from at least three Eligible  Counterparties and will
         select the lowest of these bids to provide the Derivative  Product.  If
         the lowest  bidder  specifies  a notional  amount that is less than the
         Outstanding  Amount of the related  Class of the Reset Rate Notes,  the
         Administrator  and the  applicable  Remarketing  Agents may select more
         than one  Eligible  Counterparty,  but  only to the  extent  that  such
         additional  Eligible  Counterparties  have  provided  the  next  lowest
         received bid or bids, and enter into more than one  Derivative  Product
         that  result in the Rating  Agency  Condition  being  satisfied.  On or
         before  the  Spread  Determination  Date,  the  Administrator  and  the
         Remarketing  Agents will select the Counterparty or Counterparties  and
         the  Administrator  shall  cause the Issuer to enter into the  required
         Derivative  Products on the related  Reset Date for the upcoming  Reset
         Period.

                  (e) It is a condition  precedent to the  entering  into of any
         Derivative  Product  and the  setting  of the  amount to be paid to the
         related Counterparty that the Rating Agency Condition is satisfied.  No
         Derivative  Product  will be  entered  into by the Issuer for any Reset
         Period  where  either the related  Call Option has been  exercised or a
         Failed

                                      A-23
<PAGE>
                                                                    Exhibit 4.11

         Remarketing  has been  declared.  Each such  Derivative  Product,  will
         terminate at the earlier to occur of the next  related  Reset Date or a
         specified  termination  event  set  forth  in  the  related  Derivative
         Product.

         Section 2.11.  Payment of Principal on the Reset Rate Notes. If, on any
Quarterly  Distribution Date, Principal Reduction Payments would be payable to a
Class of Non-Amortizing  Reset Rate Notes,  those Principal  Reduction  Payments
will be allocated  to that Class and  deposited  into the Class A-1A  Redemption
Account,  the Class A-1B Redemption Account, the Class A-2 Redemption Account or
the Class A-3 Redemption Account of the Note Payment Fund, as appropriate, where
it will remain  until the next Reset Date for that Class of the Reset Rate Notes
as  provided  in Section  5.05(b) of the  Indenture,  unless  such  amounts  are
required to be transferred to the Collection Fund pursuant to Section 5.05(b) or
an Event of  Default  under  the  Indenture  has  occurred  (in  which  case the
Indenture  Trustee will distribute all sums on deposit therein to the Registered
Owners of the Reset Rate Notes in accordance with the provisions of Section 6.02
of the Indenture).  On each Reset Date for a Class of the Reset Rate Notes which
constituted  Non-Amortizing  Reset Rate Notes during the preceding Reset Period,
all sums, if any, then on deposit in the related Class A-1A Redemption  Account,
Class A-1B  Redemption  Account,  Class A-2 Redemption  Account or the Class A-3
Redemption  Account  of the Note  Payment  Fund,  including  any  allocation  of
principal made on the same date will be distributed by the Indenture Trustee, at
the  direction  of the  Administrator,  as set  forth  in  Section  5.05  of the
Indenture, to the Registered Owners of that Class of the Reset Rate Notes, as of
the related  Record Date,  in  reduction  of principal of such Class;  provided,
that, in the event on any Quarterly  Distribution  Date the amount on deposit in
the related Class A-1A Redemption Account,  Class A-1B Redemption Account, Class
A-2 Redemption  Account or the Class A-3 Redemption  Account of the Note Payment
Fund would equal the  Outstanding  Amount of that Class,  no additional  amounts
will be deposited  into the related Class A-1A  Redemption  Account,  Class A-1B
Redemption  Account,  Class A-2  Redemption  Account or the Class A-3 Redemption
Account of the Note Payment Fund and all amounts  therein will be distributed by
the Indenture Trustee,  at the direction of the  Administrator,  as set forth in
Section 5.05 of the  Indenture,  on the next  related  Reset Date to the related
Registered  Owners,  and on such  Reset  Date that Class of the Reset Rate Notes
will no longer be Outstanding.

         Section 2.12. Remarketing Agents; Remarketing Fee Fund.

                  (a) The initial Remarketing Agents,  appointed pursuant to the
         terms of the  Remarketing  Agreement are Credit Suisse First Boston LLC
         and  Deutsche  Bank  Securities  Inc. The terms and  conditions  of the
         Remarketing  Agreement  will govern the duties and  obligations  of the
         Remarketing  Agents. The Administrator,  the Issuer and the Remarketing
         Agents  will  enter  into  on  each  related  (i)   Remarketing   Terms
         Determination Date, an Initial Remarketing Agency Agreement, unless (A)
         a Failed  Remarketing  is declared,  or (B) the related Call Option has
         been exercised on or prior to such date; and (ii) Spread  Determination
         Date, a Supplemental Remarketing Agency Agreement,  unless (A) a Failed
         Remarketing  is  declared,   (B)  the  related  Call  Option  has  been
         exercised,  or (C) 100% of the  related  Registered  Owners have timely
         delivered  a Hold  Notice and the All Hold Rate will apply for the next
         related Reset Period.

                                      A-24
<PAGE>
                                                                    Exhibit 4.11

                  (b)  Excluding  all  Reset  Rate  Notes of a Class for which a
         Remarketing  Agent has received a timely  delivered  Hold Notice (or if
         the related Call Option has been exercised or a Failed  Remarketing has
         been  declared),  on the Reset Date that  commences  each Reset Period,
         each related Reset Rate Note will be automatically  tendered, or deemed
         tendered,  to the relevant  Remarketing  Agent for  remarketing by such
         Remarketing  Agent  on the  Reset  Date  at  100%  of  its  Outstanding
         principal  amount. If the related Class of the Reset Rate Notes is held
         in book-entry form, subject to subsection (c) of this Section,  100% of
         the  Outstanding  Amount of such  Reset  Rate Notes will be paid by the
         Remarketing  Agents on the related  Reset Date in  accordance  with the
         standard procedures of the Securities Depository.

                  (c) The  Remarketing  Agents  will  attempt,  on a  reasonable
         efforts  basis and in accordance  with the terms and  conditions of the
         Remarketing Agreement and the related Remarketing Agency Agreement,  to
         remarket the  tendered  Reset Rate Notes of the  applicable  Class at a
         price equal to 100% of the  Outstanding  principal  amount so tendered.
         Purchasers  of the  Reset  Rate  Notes  will  be  credited  with  their
         positions on the Reset Date with respect to positions  held through DTC
         or on the next  Business  Day with  respect to  positions  held through
         Euroclear or Clearstream.

                  (d) Each of the Remarketing  Agents,  in its individual or any
         other capacity, may buy, sell, hold and deal in any class of the Series
         2004-1 Notes,  including,  but not limited to,  purchasing any tendered
         Reset Rate Notes as part of the  remarketing  process.  Any Remarketing
         Agent that owns a Reset Rate Note may  exercise any vote or join in any
         action which any  beneficial  owner of any Class of Series 2004-1 Notes
         may be  entitled  to exercise or take with like effect as if it did not
         act in  any  capacity  under  the  Remarketing  Agency  Agreement.  Any
         Remarketing Agent, in its individual  capacity,  either as principal or
         agent, may also engage in or have an interest in any financial or other
         transaction with the Issuer,  each Servicer,  the Indenture Trustee (in
         its  individual   capacity),   the  Eligible  Lender  Trustee  (in  its
         individual  capacity) or the  Administrator  as freely as if it did not
         act in any capacity under the Remarketing  Agreement or any Remarketing
         Agency Agreement.  No Registered Owner or beneficial owner of any Reset
         Rate Note will have any rights or claims against any Remarketing  Agent
         as a result of such  Remarketing  Agent's not  purchasing  any tendered
         Reset  Rate  Note,  which  results  in  the  declaration  of  a  Failed
         Remarketing.

                  (e) Each of the Remarketing Agents will be entitled to receive
         a fee in connection  with their services  rendered for each  successful
         remarketing  of a Class of the Reset Rate Notes in the amount set forth
         in  the  Remarketing  Agreement  and  the  related  Remarketing  Agency
         Agreement.  Subject  to the  terms  and  conditions  set  forth  in the
         Remarketing Agreement, the Administrator,  in its sole discretion,  may
         change the Remarketing Agents for any Class of the Reset Rate Notes for
         any Reset Period at any time on or before the related Remarketing Terms
         Determination Date. Furthermore,  a Remarketing Agent may resign at any
         time;  provided that no resignation may become effective on a date that
         is  later  than  15  Business  Days  prior  to  a   Remarketing   Terms
         Determination Date.

                                      A-25
<PAGE>
                                                                    Exhibit 4.11

                  (f) In accordance  with Section  2.11(b) of the Indenture,  on
         the Closing Date, the Issuer,  a portion of the proceeds  received from
         the  sale of the  Series  2004-1  Notes  will  be  deposited  into  the
         Remarketing Fee Fund,  which will be held by the Indenture  Trustee for
         the  benefit  of the  Issuer  and  the  Remarketing  Agents.  The  fees
         associated with each successful remarketing will be payable directly to
         the Remarketing Agents from amounts on deposit from time to time in the
         Remarketing Fee Account. On each Quarterly  Distribution Date, Revenues
         will be deposited into the Remarketing Fee Account, in the priority set
         forth in  Section  5.04(c)  of the  Indenture,  in an  amount up to the
         Aggregate  Quarterly Funding Amount. In the event that the fees owed to
         any  Remarketing  Agent on a Reset  Date  exceeds  the  amount  then on
         deposit (after giving effect to distributions  made on such Reset Date)
         in the Remarketing  Fee Account,  such shortfall shall be paid from the
         Collection Fund on future Quarterly  Distribution Dates in the priority
         set forth in Section 5.04(c) of the Indenture. The Issuer shall also be
         responsible  for certain  remarketing  costs and expenses to the extent
         set forth in Section 3 of the  Remarketing  Agreement,  which  shall be
         paid on each Quarterly  Distribution  Date from the Collection  Fund at
         the priority set forth in Section 5.04(c) of the Indenture.

         Section 2.13.  Auction of Financed Eligible Loans upon Commercial Paper
Rate Trigger.  If the Commercial  Paper Rate Trigger has occurred and the holder
of the Purchase Option has not exercised its Purchase Option pursuant to Section
2.07(b) of this  Appendix A, the  Indenture  Trustee (or its  designated  agent)
shall offer for sale all of the  Financed  Eligible  Loans held within the Trust
Estate.  Any such sale shall be consummated on or before the Trust Auction Date.
The Indenture  Trustee shall  provide  written  notice to the Issuer of any such
offer for sale at least  three  Business  Days in advance  of the Trust  Auction
Date. Any Nelnet Eligible Purchaser is permitted to bid at any such auction.  If
at least two  independent  bids are  received,  the  Indenture  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 Indenture  Trustee shall accept the highest of such remaining bids if
it is at least equal to the Commercial  Paper Rate Minimum  Purchase  Amount (as
defined below).  In the event that only one or more Nelnet  Eligible  Purchasers
bid at such  auction  and fewer  than two  independent  bids are  received,  the
Indenture  Trustee shall accept the highest of such  remaining  bids if it is at
least equal to the Commercial  Paper Rate Minimum  Purchase  Amount and the fair
market value of such Financed  Eligible  Loans as of the Quarterly  Distribution
Date immediately  preceding the Trust Auction Date. The Indenture  Trustee shall
accept the highest of such remaining bids if it is, together with any amounts on
deposit  in the Funds  established  pursuant  to the  Indenture,  equal to or in
excess of the  Commercial  Paper Rate Minimum  Purchase  Amount.  If the highest
remaining  bid  is not  equal  to or in  excess  of the  higher  of the  amounts
described  in the two  preceding  sentences,  the  Indenture  Trustee  shall not
consummate such sale. The Indenture  Trustee may consult,  and, at the direction
of the Issuer,  shall consult,  with a financial  advisor,  including an initial
purchaser or remarketing agent of the Series 2004-1 Notes or the  Administrator,
to determine if the fair market  value of the Financed  Eligible  Loans has been
offered  by any  Nelnet  Eligible  Purchaser.  The  proceeds  of any such  sale,
together  with any amounts on deposit in the Funds  established  pursuant to the
Indenture,  will be applied to the redemption of all Notes Outstanding  pursuant
to the mandatory redemption  provisions of Section 2.09(e)(i) and (f)(ii) of the
Indenture,  to  pay  any  required  Issuer  Derivative  Payment  (including  all
applicable  Termination  Payments)  and to pay the  remaining  Program  Expenses
through the final redemption date of the Series 2004-1 Notes. If the sale is not
completed,  the

                                      A-26
<PAGE>
                                                                    Exhibit 4.11

Indenture  Trustee  shall  solicit  bids for the  Financed  Eligible  Loans with
respect to every other future Quarterly  Distribution  Date for which the holder
of the Purchase  Option  described in Section 2.05(b) of this Appendix A has not
delivered  timely  notice of its  intention to exercise  its Purchase  Option or
delivered an amount equal to the purchase price by the specified date upon terms
similar to those described above.

         Section 2.14.  Execution of Documents.  The Indenture Trustee is hereby
authorized and directed to execute and deliver,  not in its individual capacity,
but  solely  as  Indenture  Trustee  on behalf of the  Issuer,  the  Remarketing
Agreement, any Derivative Products, and all Remarketing Agency Agreements as the
Administrator,  in writing and from time to time,  shall  instruct the Indenture
Trustee. The Indenture Trustee shall not be liable to any party, any third party
or any Registered Owner for any such actions taken at the written instruction of
the  Administrator.  Notwithstanding  the  foregoing,  in  the  event  that  the
Indenture  Trustee  declines or fails to execute or deliver  any such  document,
instrument,  certificate  or agreement as instructed by the  Administrator,  the
Administrator  is hereby  authorized,  in its sole  discretion,  to execute  and
deliver, not in its individual capacity but solely as Administrator on behalf of
the  Issuer,  all  such  required  documents,   instruments,   certificates  and
agreements.  The  foregoing  authorization  shall  represent a limited  power of
attorney granted by the Issuer to the Administrator to act on its behalf and the
Administrator  shall  not be  liable  to  any  party,  any  third  party  or any
Registered Owner for any such actions taken in good faith and in accordance with
these Reset Rate Note Procedures.

                                      A-27
<PAGE>
                                                                    Exhibit 4.11

                                   APPENDIX B

                         CERTAIN TERMS AND PROVISIONS OF
                             THE AUCTION RATE NOTES

                                    ARTICLE I

                                   DEFINITIONS

         Except as provided  below in this Section,  all terms which are defined
in Article I of the Indenture  shall have the same  meanings,  respectively,  in
this  Appendix B as such terms are given in the Article I of the  Indenture.  In
addition, the following terms shall have the following respective meanings:

         "Accrual  Period" shall mean, with respect to each Class of the Auction
Rate Notes,  the Initial  Period and each period  commencing  on an Auction Rate
Distribution  Date for such  Class of the  Auction  Rate Notes and ending on but
shall exclude (a) the next succeeding  Auction Rate  Distribution  Date for such
Class of the Auction Rate Notes or (b) the Stated  Maturity of such Class of the
Auction Rate Notes, as applicable.

         "All-Hold Rate" shall mean, on any date of determination,  the interest
rate per annum equal to 90% of the Applicable LIBOR Rate, rounded to the nearest
one thousandth of one percent; provided that in no event shall the All-Hold Rate
be more than the Interest Rate Limitation or less than zero.

         "Applicable  CP Spread," on any date of  determination,  shall mean the
following  percentages,  based on the lowest rating assigned to the Auction Rate
Notes:

                                  Credit Rating

                                                                    Applicable
      S&P                Moody's               Fitch                 CP Spread

    "AAA"                 "Aaa"                "AAA"                    0.75%
"AA-" to "AA+"        "Aa3" to Aa1"        "AA-" to AA+"                0.75
 "A-" to "A+"          "A3" to "A1"         "A-" to "A+"                0.75
"BBB-" to BBB+"      "Baa3" to "Baa1"     "BBB-" to "BBB+"              1.00
 Below "BBB-"          Below "Baa3"         Below "BBB-"                1.50

         "Applicable  LIBOR Rate" shall mean,  with  respect to the Auction Rate
Notes (a) for  Auction  Periods  of 28 days or less,  One-Month  LIBOR;  (b) for
Auction Periods of more than 28 days but less than 91 days,  Three-Month  LIBOR;
(c) for Auction  Periods of more than 90 days but less than 181 days,  Six-Month
LIBOR;  and (d) for Auction  Periods of more than 180 days,  One-Year  LIBOR. As
used in this  definition  and otherwise  herein,  the terms  "One-Month  LIBOR,"
"Three-Month  LIBOR,"  "Six-Month  LIBOR" or  "One-Year  LIBOR" mean the rate of
interest  per annum equal to the rate per annum at which  United  States  dollar
deposits having a

<PAGE>
                                                                    Exhibit 4.11

maturity of one month, three months, six months or one year,  respectively,  are
offered  to prime  banks in the  London  interbank  market  which  appear on the
Reuters Screen LIBOR Page as of  approximately  11:00 a.m.,  London time, on the
Interest  Rate  Determination  Date.  If at least  two such  quotations  appear,
One-Month  LIBOR,   Three-Month  LIBOR,   Six-Month  LIBOR  or  One-Year  LIBOR,
respectively, will be the arithmetic mean (rounded upwards, if necessary, to the
nearest one hundredth of one percent) of such offered  rates.  If fewer than two
such quotes appear,  One-Month  LIBOR,  Three-Month  LIBOR,  Six-Month  LIBOR or
One-Year  LIBOR,  respectively,  with  respect to such  Auction  Period  will be
determined  at  approximately  11:00 a.m.,  London time,  on such  Interest Rate
Determination  Date on the basis of the rate at which  deposits in United States
dollars  having a maturity of one month,  three months,  six months or one year,
respectively,  are offered to prime banks in the London interbank market by four
major banks in the London  interbank market selected by the Auction Agent or the
Indenture  Trustee,  as applicable,  and in a principal  amount of not less than
U.S.  $1,000,000  and that is  representative  for a single  transaction in such
market at such time. The Auction Agent or the Indenture Trustee,  as applicable,
will  request  the  principal  London  office of each of such banks to provide a
quotation of its rate. If at least two quotations are provided, One-Month LIBOR,
Three-Month LIBOR, Six-Month LIBOR or One-Year LIBOR, respectively,  will be the
arithmetic mean (rounded upwards, if necessary,  to the nearest one hundredth of
one percent) of such offered  rates.  If fewer than two quotations are provided,
One-Month  LIBOR,   Three-Month  LIBOR,   Six-Month  LIBOR  or  One-Year  LIBOR,
respectively,  with respect to such Auction Period will be the  arithmetic  mean
(rounded upwards, if necessary,  to the nearest one hundredth of one percent) of
the  rates  quoted  at  approximately  11:00  a.m.,  New York  City time on such
Interest  Rate  Determination  Date by three major  banks in New York,  New York
selected by the Auction Agent or the Indenture Trustee, as applicable, for loans
in United  States  dollars to leading  European  banks  having a maturity of one
month,  three months, six months or one year,  respectively,  and in a principal
amount  equal  to an  amount  of not  less  than  U.S.  $1,000,000  and  that is
representative for a single  transaction in such market at such time;  provided,
however, that if the banks selected as aforesaid are not quoting as mentioned in
this sentence,  One-Month LIBOR,  Three-Month LIBOR, Six-Month LIBOR or One-Year
LIBOR,  respectively,  in  effect  for the  applicable  Auction  Period  will be
One-Month  LIBOR,   Three-Month  LIBOR,   Six-Month  LIBOR  or  One-Year  LIBOR,
respectively, in effect for the immediately preceding Auction Period.

         "Applicable  T-Bill  Spread" shall mean, on any date of  determination,
the following  percentages,  based on the lowest rating  assigned to the Auction
Rate Notes as of such date:

                                  Credit Rating

<TABLE>
<CAPTION>
Standard & Poor's      Moody's Investors Service     Fitch, Inc.    Applicable T-Bill Spread

<S>                         <C>                     <C>                        <C>
      "AAA"                      "Aaa"                  "AAA"                  1.25%
 "AA-" to "AA+"             "Aa3" to "Aa1"          "AA-" to "AA+"             1.25
  "A-" to "A+"               "A3" to "A1"            "A-" to "A+"              1.25
"BBB-" to "BBB+"           "Baa3" to "Baa1"        "BBB-" to "BBB+"            1.50
  Below "BBB-"               Below "Baa3"            Below "BBB-"              2.00
</TABLE>

         "Auction" shall mean the implementation of the Auction Procedures on an
Auction Date.

                                      B-2
<PAGE>

                                                                    Exhibit 4.11

         "Auction  Agent" shall mean the Initial Auction Agent under the Initial
Auction Agent  Agreement  unless and until a Substitute  Auction Agent Agreement
becomes effective, after which "Auction Agent" shall mean the Substitute Auction
Agent.

         "Auction  Agent   Agreement"  shall  mean  the  Initial  Auction  Agent
Agreement unless and until a Substitute Auction Agent Agreement is entered into,
after which "Auction Agent Agreement"  shall mean such Substitute  Auction Agent
Agreement.

         "Auction  Agent Fee" has the  meaning  set forth in the  Auction  Agent
Agreement.

         "Auction Date" shall mean,  initially,  March 3, 2004 for the Class B-1
Notes and March 10, 2004 for the Class B-2 Notes;  and thereafter,  the Business
Day  immediately  preceding the first day of each Auction Period for such Class,
other than:

                  (a) each Auction Period  commencing after the ownership of the
         applicable  Auction Rate Notes is no longer  maintained  in  Book-entry
         Form by the Securities Depository;

                  (b) each  Auction  Period  commencing  after  and  during  the
         continuance of a Payment Default; or

                  (c) each Auction Period commencing less than two Business Days
         after the cure or waiver of a Payment Default.

Notwithstanding the foregoing, the Auction Date for one or more Auction  Periods
may be changed pursuant to Section 2.02(h) of this Appendix B.

         "Auction Period" shall mean the period  applicable to each Class of the
Auction Rate Notes during which time the interest rate is determined pursuant to
Section  2.02(a) of this  Appendix B, which  Auction  Period  (after the Initial
Period for such Class)  initially  shall  consist  generally of 28 days for each
Class  of the  Auction  Rate  Notes,  as the same may be  adjusted  pursuant  to
Sections 2.01 and 2.02(g) of this Appendix B.

         "Auction  Period  Adjustment"  shall mean an  adjustment to the Auction
Period as provided in Section 2.02(g) of this Appendix B.

         "Auction  Procedures"  shall mean the  procedures  set forth in Section
2.02(a) of this Appendix B by which the Auction Rate is determined.

         "Auction  Rate" shall mean the rate of interest  per annum that results
from  implementation of the Auction Procedures and is determined as described in
Section 2.02(a)(iii)(B) of this Appendix B.

         "Auction Rate Notes" shall mean the Class B Notes.

         "Auction Rate Notes  Carry-over  Amount" shall mean, (a) during the Net
Loan Rate  Period,  the  excess,  if any,  of (i) the amount of  interest  on an
Auction Rate Note that would have  accrued  with respect to the related  Accrual
Period at the least of the applicable  Auction Rate and

                                      B-3
<PAGE>

                                                                    Exhibit 4.11

the components  included in the Maximum Rate over (ii) the amount of interest on
such Auction Rate Note  actually  accrued with respect to such Auction Rate Note
with respect to such Accrual  Period based on the Net Loan Rate,  together  with
the  unreduced  portion of any such  excess from prior  Accrual  Periods and (b)
during any period during which the Subordinate Interest Trigger has occurred and
is continuing,  the interest which would have been paid on the Auction Rate Note
with respect to the related Accrual Period,  together with the unreduced portion
of any such  unpaid  interest  from prior  Accrual  Periods;  provided  that any
reference to  "principal"  or "interest" in the Indenture and in this Appendix B
and the Auction  Rate Notes shall not include  within the meanings of such words
any Auction Rate Notes Carry-over  Amount or any interest accrued on any Auction
Rate Notes Carry-over  Amount.  Auction Rate Notes Carry-over Amount shall apply
only  during  the Net Loan  Rate  Period  or  during a period  during  which the
Subordinate Interest Trigger has occurred and is continuing.

         "Auction  Rate Notes  Interest  Rate" shall mean each  variable rate of
interest  per  annum  borne  by a Class  of the  Auction  Rate  Notes  for  each
respective  Auction Period and  determined in accordance  with the provisions of
Sections 2.01 and 2.02 of this Appendix B.

         "Available Auction Rate Notes" has the meaning set forth in Section
2.02(a)(iii)(A)(1) of this Appendix B.

         "Bid" has the meaning set forth in Section 2.02(a)(i)(A) of this
Appendix B.

         "Bid Auction Rate" has the meaning set forth in Section
2.02(a)(iii)(A)(3) of this Appendix B.

         "Bidder" has the meaning set forth in Section 2.02(a)(i)(A) of this
Appendix B.

         "Bond Equivalent  Yield" shall mean with respect to any security with a
maturity  of six months or less the rate for which is quoted in The Wall  Street
Journal on a bank discount basis, a yield (expressed as a percentage) calculated
in  accordance  with  the  following  formula  and  rounded  up to  the  nearest
one-hundredth of one percent:

         Bond Equivalent Yield =             Q x N      x 100
                                         ------------
                                         360 - (T x Q)

where "Q" refers to the per annum  interest  rate for the  security  quoted on a
bank discount basis and expressed as a decimal, "N" refers to 365 or 366 (days),
as the case may be, and "T" refers to the number of days to maturity.

         "Book-entry  Form" or  "Book-entry  System" shall mean a form or system
under  which  (a)  the  beneficial  right  to  principal  and  interest  may  be
transferred  only through a book entry,  (b) physical  securities  in registered
form are issued only to a  Securities  Depository  or its nominee as  registered
owner,  with the  securities  "immobilized"  to the  custody  of the  Securities
Depository,  and (c) the book entry is the record that  identifies the owners of
beneficial interests in that principal and interest.

         "Broker-Dealer"  shall mean Deutsche Bank  Securities Inc. with respect
to the Class B-1 Notes and Credit  Suisse  First  Boston LLC with respect to the
Class  B-2  Notes,  or any  other

                                      B-4
<PAGE>
                                                                    Exhibit 4.11

broker or dealer (each as defined in the  Securities  Exchange  Act of 1934,  as
amended),  commercial  bank or other  entity  permitted  by law to  perform  the
functions  required of a Broker-Dealer set forth in the Auction  Procedures that
(a) is a Participant (or an affiliate of a Participant),  (b) has been appointed
as such by the Issuer  pursuant to Section  2.02(f) of this  Appendix B, and (c)
has  entered  into a  Broker-Dealer  Agreement  that is in effect on the date of
reference.

         "Broker-Dealer Agreement" shall mean each agreement between the Auction
Agent  and a  Broker-Dealer,  pursuant  to which  the  Broker-Dealer  agrees  to
participate in Auctions as set forth in the Auction Procedures,  as from time to
time  amended  or  supplemented.   Each  Broker-Dealer  Agreement  shall  be  in
substantially the form of the Broker-Dealer Agreements, each dated as of January
1, 2004,  among the Issuer,  Deutsche  Bank Trust Company  Americas,  as Auction
Agent, and the Broker-Dealers.

         "Broker-Dealer  Fee" has the  meaning  set forth in the  Auction  Agent
Agreement.

         "Broker-Dealer Fee Rate" has the meaning set forth in the Auction Agent
Agreement.

         "Business  Day"  shall  mean any day  other  than a  Saturday,  Sunday,
holiday or other day on which the New York Stock  Exchange  or banks  located in
New  York,  New  York,  or in the  city in which  the  principal  office  of the
Indenture  Trustee or the Auction Agent is located,  are authorized or permitted
by law or executive order to close;  provided that with respect to Auction Dates
such term shall  exclude  April 14 and 15 and  December 30 and 31 and such other
dates as may be agreed to in writing by the Auction  Agent,  the  Broker-Dealers
and the Issuer.

         "Class  B-1 Notes  Interest  Rate"  shall mean the  Auction  Rate Notes
Interest Rate on the Class B-1 Notes.

         "Class  B-2 Notes  Interest  Rate"  shall mean the  Auction  Rate Notes
Interest Rate on the Class B-2 Notes.

         "CP Cap"  shall  mean,  for any  Auction  Date,  the rate (for the then
current  Auction)  at which  the  Quarterly  Average  Auction  Rate  equals  the
Quarterly  Average  CP Rate  plus the  Applicable  CP  Spread,  such  rate to be
determined by the formula:

                                N x (C + S) - R,

Where N is the number of Auction Dates which precede the current Auction Date by
91 days or less,  including the current Auction Date; C is the Quarterly Average
CP Rate; S is the  Applicable CP Spread;  and, R is the sum of the Auction Rates
for  Auction  Dates  preceding  the  current  Auction  Date by 91 days or  less,
excluding the current Auction.

         "Eligible Auction Rate Notes Carry-over Make-Up Amount" shall mean, (a)
with  respect to each  Accrual  Period  relating to a Class of the Auction  Rate
Notes as to  which,  as of the first day of such  Accrual  Period,  there is any
unpaid Auction Rate Notes Carry-over  Amount due to the occurrence of a Net Loan
Rate  Period,  an amount  equal to the lesser of (i)  interest  computed  on the
principal  balance  of such Class of the  Auction  Rate Notes in respect to such
Accrual Period at a per annum rate equal to the excess,  if any, of the Net Loan
Rate over the Auction

                                      B-5
<PAGE>
                                                                    Exhibit 4.11

Rate and (ii) the  aggregate  Auction  Rate Notes  Carry-over  Amount  remaining
unpaid as of the first day of such Accrual Period together with interest accrued
and unpaid  thereon  through the end of such Accrual Period and (b) with respect
to with respect to each Accrual  Period  relating to a Class of the Auction Rate
Notes as to  which,  as of the first day of such  Accrual  Period,  there is any
unpaid  Auction  Rate  Notes  Carry-over   Amount  due  to  the  occurrence  and
continuation of the Subordinate  Interest  Trigger and the Subordinate  Interest
Trigger is no longer  continuing,  an amount  equal to such unpaid  Auction Rate
Notes Carry-over Amount.

         "Existing  Owner" shall mean (a) with respect to and for the purpose of
dealing with the Auction Agent in connection with an Auction,  a Person who is a
Broker-Dealer  listed in the Existing Owner Registry at the close of business on
the Business Day immediately preceding the Auction Date for such Auction and (b)
with  respect  to and for the  purpose  of  dealing  with the  Broker-Dealer  in
connection with an Auction,  a Person who is a beneficial  owner of Auction Rate
Notes.

         "Existing  Owner  Registry"  shall mean the registry of Persons who are
owners of the Auction Rate Notes, maintained by the Auction Agent as provided in
the Auction Agent Agreement.

         "Hold Order" has the meaning set forth in Section 2.02(a)(i)(A) of this
Appendix B.

         "Initial   Auction  Agent"  shall  mean  Deutsche  Bank  Trust  Company
Americas, a New York banking corporation, its successors and assigns.

         "Initial Auction Agent Agreement" shall mean, collectively, the Auction
Agent  Agreement  dated as of  January  1, 2004,  by and among the  Issuer,  the
Indenture Trustee and the Initial Auction Agent, including any amendment thereof
or supplement thereto.

         "Initial  Period"  shall  mean,  as to each Class of the  Auction  Rate
Notes, the period commencing on the Closing Date and continuing  through the day
immediately  preceding  the Initial  Rate  Adjustment  Date for the Auction Rate
Notes.

         "Initial  Rate"  shall mean 1.17% per annum for the Class B-1 Notes and
1.17% per annum for the Class B-2 Notes.

         "Initial Rate  Adjustment  Date" shall mean March 4, 2004 for the Class
B-2 Notes and March 11, 2004 for the Class B-2 Notes.

         "Interest  Rate  Adjustment  Date"  shall mean (a) with  respect to the
Class  B-1  Notes,  the  date on  which  an Class  B-1  Notes  Interest  Rate is
effective,  and shall  mean,  with  respect to the Class B-1 Notes,  the date of
commencement of each Auction Period for the Class B-1 Notes and (b) with respect
to the Class B-2 Notes,  the date on which an Class B-1 Notes  Interest  Rate is
effective,  and shall  mean,  with  respect to the Class B-2 Notes,  the date of
commencement of each Auction Period for the Class B-2 Notes.

         "Interest  Rate  Determination  Date" shall mean,  with respect to each
Class of

                                      B-6
<PAGE>
                                                                    Exhibit 4.11

the Auction Rate Notes,  the Auction Date for such Class,  or if no Auction Date
is  applicable  to such  Class of the  Auction  Rate  Notes,  the  Business  Day
immediately  preceding the date of  commencement  of an Auction  Period for such
Class.

         "Interest Rate  Limitation"  shall mean, on any date of  determination,
the lesser of (a) the highest  rate the Issuer may legally pay from time to time
or (b) 17%.

         "Maximum Rate" on any date of determination shall mean the least of:

                  (a) the Applicable LIBOR Rate plus 1.00%;

                  (b) the Interest Rate Limitation;

                  (c) for Auctions  after the initial  Auction Date,  the T-Bill
         Cap;

                  (d) for Auctions  after the initial  Auction Date, the CP Cap;
         and

                  (e) during the Net Loan Rate Period, the Net Loan Rate.

         "90-Day  Financial  Commercial  Paper  Rate"  shall  mean the 90-Day AA
Financial  Commercial  Paper rate posted on the Federal Reserve Release entitled
"Commercial  Paper Rates and  Outstandings,"  which rate may be available on the
Internet at www.federalreserve.gov/releases/cp.

         "Net  Loan  Rate"  shall  mean,  with  respect  to any  Accrual  Period
applicable to the Class of the Auction Rate Notes,  the weighted  average return
on the  Financed  Eligible  Loans,  including  all  Revenues  derived  from such
Financed Eligible Loans, less all Program Expenses  expressed as a percentage of
the average outstanding principal balance of such Financed Eligible Loans, which
percentage  shall be calculated by the Issuer on a quarterly  basis,  in arrears
and  provided to the  Indenture  Trustee and the  Auction  Agent.  In making the
determination  of the Net Loan Rate,  the Issuer  shall  take into  account  any
Counterparty Payments received and/or any Issuer Derivative Payments made.

         "Net Loan Rate  Period"  shall  mean,  with  respect  to a Class of the
Auction Rate Notes, the period  commencing on the Net Loan Rate Trigger Date for
such Class of the Auction Rate Notes and  continuing  until all of such Class of
the Auction Rate Notes have been paid in full;  provided that such Net Loan Rate
Period may be suspended with a Rating Confirmation.

         "Net Loan Rate Trigger Date" shall mean, with respect to a Class of the
Auction  Rate  Notes,  the first day of an Auction  Period for such Class  which
immediately  follows six consecutive Auction Dates for such Class of the Auction
Rate Notes where the Auction Rate established on each such Auction Date for such
Class exceeded the Net Loan Rate.

         "Non-Payment Rate" shall mean One-Month LIBOR plus 1.50%.

         "One-Month LIBOR,"  "Three-Month LIBOR," "Six-Month LIBOR" or "One-Year
LIBOR,"  shall mean the offered  rate,  as  determined  by the Auction  Agent or
Indenture Trustee, as applicable, of the Applicable LIBOR Rate for United States
dollar  deposits  which  appears on Telerate Page 3750, as reported by Bloomberg
Financial  Markets  Commodities News (or such

                                      B-7
<PAGE>
                                                                    Exhibit 4.11

other page as may  replace  Telerate  Page 3750 for the  purpose  of  displaying
comparable  rates) as of  approximately  11:00 a.m.,  London time,  on the LIBOR
Determination Date;  provided,  that if on any calculation date, no rate appears
on Telerate  Page 3750 as specified  above,  the Auction  Agent or the Indenture
Trustee,  as  applicable,  shall  determine the  arithmetic  mean of the offered
quotations of four major banks in the London interbank  market,  for deposits in
United States dollars for the respective periods specified above to the banks in
the London interbank market as of approximately 11:00 a.m., London time, on such
calculation  date and in a principal  amount of not less than $1,000,000 that is
representative  of a single  transaction in such market and at such time, unless
fewer than two such quotations are provided, in which case, the Applicable LIBOR
Rate shall be the arithmetic  mean of the offered  quotations that leading banks
in New York City  selected by the Auction  Agent or the  Indenture  Trustee,  as
applicable,  are quoting on the relevant LIBOR  Determination  Date for loans in
United States  dollars to leading  European  banks in a principal  amount of not
less than  $1,000,000  that is  representative  of a single  transaction in such
market at such time. All percentages  resulting from such calculations  shall be
rounded upwards, if necessary, to the nearest one-hundredth of one percent.

         "Order"  has the  meaning  set forth in Section  2.02(a)(i)(A)  of this
Appendix B.

         "Payment  Default" shall mean,  with respect to the Auction Rate Notes,
(a) a default in the due and punctual  payment of any installment of interest on
such  Auction  Rate  Notes,  other  than  as  a  result  of  the  occurrence  or
continuation of the Subordinate  Interest  Trigger,  or (b) a default in the due
and punctual payment of any interest on and principal of such Auction Rate Notes
at their maturity.

         "Potential  Owner" shall mean any Person  (including an Existing  Owner
that is (a) a  Broker-Dealer  when  dealing  with the  Auction  Agent  and (b) a
potential  beneficial  owner  when  dealing  with a  Broker-Dealer)  who  may be
interested in acquiring Auction Rate Notes (or, in the case of an Existing Owner
thereof, an additional principal amount of Auction Rate Notes).

         "PSA" shall mean the Public Securities Association,  its successors and
assigns.

         "Quarterly  Average  Auction Rate" shall mean the simple average of the
Auction Rates for Auction Dates preceding the current Auction Date by 91 days or
less, including the current Auction Date.

         "Quarterly  Average CP Rate" shall mean the simple  average of the Bond
Equivalent  Yield of 90-Day  Financial  Commercial  Paper  Rates for the 91 days
preceding (but not including) the current Auction Date.

         "Quarterly  Average  T-Bill Rate" shall mean the simple  average of the
Bond  Equivalent  Yield  of  91-day  Treasury  bills  auctioned  in the 91  days
preceding (but not including) the current Auction Date.

         "Record Date" shall mean,  with respect to the Auction Rate Notes,  the
Business Day next preceding the applicable Auction Rate Distribution Date.

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

                                      B-8
<PAGE>
                                                                    Exhibit 4.11

         "Sell Order" has the meaning set forth in Section 2.02(a)(i)(A) of this
Appendix B.

         "Submission  Deadline"  shall  mean 1:00  p.m.,  eastern  time,  on any
Auction Date or such other time on any Auction Date by which  Broker-Dealers are
required to submit Orders to the Auction Agent as specified by the Auction Agent
from time to time.

         "Submitted Bid" has the meaning set forth in Section 2.02(a)(iii)(A) of
this Appendix B.

         "Submitted   Hold   Order"  has  the   meaning  set  forth  in  Section
2.02(a)(iii)(A) of this Appendix B.

         "Submitted Order" has the meaning set forth in Section  2.02(a)(iii)(A)
of this Appendix B.

         "Submitted   Sell   Order"  has  the   meaning  set  forth  in  Section
2.02(a)(iii)(A) of this Appendix B.

         "Substitute  Auction  Agent" shall mean the Person with whom the Issuer
and the Indenture Trustee enter into a Substitute Auction Agent Agreement.

         "Substitute  Auction  Agent  Agreement"  shall  mean an  auction  agent
agreement  containing  terms  substantially  similar to the terms of the Initial
Auction Agent Agreement,  whereby a Person having the qualifications required by
Section  2.02(e) of this  Appendix B agrees with the  Indenture  Trustee and the
Issuer to perform the duties of the Auction Agent under this Appendix B.

         "Sufficient Bids" has the meaning set forth in Section  2.02(a)(iii)(A)
of this Appendix B.

         "T-Bill Cap" shall mean,  for any Auction Date,  the rate (for the then
current  auction)  at which  the  Quarterly  Average  Auction  Rate  equals  the
Quarterly Average T-Bill Rate plus the Applicable T-Bill Spread, such rate to be
determined by the formula:

                                 N x (T+S) - R,

where N is the number of Auction Dates which precede the current Auction Date by
91 days or less,  including the current Auction Date; T is the Quarterly Average
T-Bill Rate; S is the Applicable T-Bill Spread;  and R is the sum of the Auction
Rates for Auction Dates  preceding the current  Auction Date by 91 days or less,
excluding the current Auction.

                                   ARTICLE II

                               TERMS AND ISSUANCE

         Section 2.01.  Auction Rate Notes  Interest Rate and Auction Rate Notes
Carry-over Amounts. During the Initial Period, the Auction Rate Notes shall bear
interest at the Initial Rate for such Class. Thereafter, and except with respect
to an Auction Period  Adjustment,  the Auction Rate Notes shall bear interest at
an Auction Rate Notes  Interest  Rate based on a 28-day

                                      B-9
<PAGE>
                                                                    Exhibit 4.11

Auction  Period for the  Auction  Rate  Notes,  as  determined  pursuant to this
Section and Section 2.02 of this Appendix B.

         For the Auction Rate Notes  during the Initial  Period and each Auction
Period  thereafter,  interest at the applicable Auction Rate Notes Interest Rate
shall accrue  daily and shall be computed for the actual  number of days elapsed
on the basis of a year consisting of 360 days.

         The Auction  Rate Notes  Interest  Rate to be borne by the Auction Rate
Notes after such Initial  Period for each Auction Period until an Auction Period
Adjustment,  if any, shall be determined as described  below.  Unless  otherwise
specified in an Issuer Order,  each such Auction Period after the Initial Period
shall  commence  on  and  include  the  day  following  the  expiration  of  the
immediately  preceding Auction Period and terminate on and include the Wednesday
(unless  such day is not  followed by a Business  Day, in which case on the next
succeeding day that is followed by a Business Day) of the following fourth week;
provided,  however,  that in the case of the  Auction  Period  that  immediately
follows the Initial Period for the Auction Rate Notes, such Auction Period shall
commence on the Initial Rate  Adjustment  Date.  The Auction Rate Notes Interest
Rate on the Auction Rate Notes for each Auction Period shall be the Auction Rate
in effect for such  Auction  Period as  determined  in  accordance  with Section
2.02(a) of this Appendix B. By way of example,  if an Auction Period  ordinarily
would end on a Wednesday,  but the following Thursday is not a Business Day, the
Auction  Period will end on that Thursday and the new Auction  Period will begin
on Friday.

         Notwithstanding the foregoing,  unless otherwise specified in an Issuer
Order, if an Auction is scheduled to occur for the next Auction Period on a date
that was  reasonably  expected to be a Business  Day,  but such Auction does not
occur  because  such date is later not  considered  to be a  Business  Day,  the
Auction  shall  nevertheless  be deemed  to have  occurred,  and the  applicable
Auction Rate Notes  Interest Rate in effect for the next Auction  Period will be
the Auction Rate Notes Interest Rate in effect for the preceding  Auction Period
and such Auction Period will generally be 28 days in duration,  beginning on the
calendar  day  following  the date of the  deemed  Auction  and  ending  on (and
including)  the  applicable  Wednesday  (unless  such day is not  followed  by a
Business  Day,  in which case on the next  succeeding  day that is followed by a
Business Day) of the following fourth week. If the preceding  Auction Period was
other than  generally 28 days in duration,  the Auction Rate Notes Interest Rate
for the deemed  Auction will instead be the rate of interest  determined  by the
applicable  Broker-Dealer  on  equivalently  rated  auction  securities  with  a
comparable length of auction period.

         Notwithstanding the foregoing:

                  (a) if the  ownership  of an  Auction  Rate  Note is no longer
         maintained in Book-entry  Form, the Auction Rate Notes Interest Rate on
         the Auction  Rate Notes for any  Accrual  Period  commencing  after the
         delivery of  certificates  representing  Auction Rate Notes pursuant to
         the  Indenture  shall  equal  the  Maximum  Rate  on the  Business  Day
         immediately  preceding the first day of such subsequent Accrual Period;
         or

                  (b) if a Payment Default shall have occurred, the Auction Rate
         Notes  Interest  Rate on the Auction Rate Notes for the Accrual  Period
         commencing on or immediately  after such Payment Default,  and for each
         Accrual Period thereafter, to and including the

                                      B-10
<PAGE>
                                                                    Exhibit 4.11

         Accrual  Period,  if any,  during which,  or  commencing  less than two
         Business  Days after,  such Payment  Default is cured,  shall equal the
         applicable  Non-Payment  Rate on the  first  day of each  such  Accrual
         Period.

         In accordance with Section  2.02(a)(iii)(B) and (C) of this Appendix B,
the Auction Agent shall  promptly give written  notice to the Indenture  Trustee
and the Issuer of each Auction Rate Notes Interest Rate (unless the Auction Rate
Notes  Interest Rate is the  applicable  Non-Payment  Rate) and the Maximum Rate
when such rate is not the Auction Rate Notes  Interest  Rate,  applicable to the
Class of the  Auction  Rate  Notes.  The  Indenture  Trustee  shall  notify  the
Registered Owners and the Issuer of Auction Rate Notes of the applicable Auction
Rate Notes Interest Rate  applicable to such Auction Rate Notes for each Auction
Period  not  later  than  the  third  Business  Day  of  such  Auction   Period.
Notwithstanding  any other  provision of the Auction Rate Notes or the Indenture
and except for the  occurrence  of a Payment  Default,  interest  payable on the
Auction  Rate Notes for an Auction  Period  shall never  exceed for such Auction
Period the amount of interest  payable at the applicable  Maximum Rate in effect
for such Auction Period.

         If the Auction  Rate for a Class of the  Auction  Rate Notes is greater
than the Maximum Rate,  then the Auction Rate Notes Interest Rate for such Class
for that  Accrual  Period will be the Maximum  Rate.  If the Auction  Rate Notes
Interest Rate applicable to such Class of the Auction Rate Notes for any Accrual
Period is the Net Loan Rate, the Indenture  Trustee shall  determine the Auction
Rate Notes Carry-over  Amount, if any, with respect to such Class of the Auction
Rate Notes for such Accrual  Period.  If interest on a Class of the Auction Rate
Notes for any Accrual Period is not paid due to the occurrence and  continuation
of the Subordinate  Interest Trigger,  the Indenture Trustee shall determine the
Auction Rate Notes Carry-over  Amount, if any, with respect to such Class of the
Auction Rate Notes for such Accrual Period.  Such Auction Rate Notes  Carry-over
Amount shall bear  interest  calculated  at a rate equal to One-Month  LIBOR (as
determined by the Auction  Agent,  provided the  Indenture  Trustee has received
notice of One-Month LIBOR from the Auction Agent,  and if the Indenture  Trustee
shall not have received such notice from the Auction  Agent,  then as determined
by the  Indenture  Trustee)  from the  Auction  Rate  Distribution  Date for the
Accrual Period with respect to which such Auction Rate Notes  Carry-over  Amount
was  calculated,  until  paid.  Any  payment in  respect  of Auction  Rate Notes
Carry-over  Amount  shall be applied,  first,  to any accrued  interest  payable
thereon and, second, in reduction of such Auction Rate Notes Carry-over  Amount.
For purposes of the Indenture and this Appendix B, any reference to  "principal"
or "interest"  herein shall not include within the meaning of such words Auction
Rate Notes  Carry-over  Amount or any interest  accrued on any such Auction Rate
Notes  Carry-over  Amount.  Such Auction Rate Notes  Carry-over  Amount shall be
separately calculated for each Auction Rate Note by the Indenture Trustee during
such Accrual Period in sufficient time for the Indenture  Trustee to give notice
to each  Registered  Owner of such  Auction  Rate  Notes  Carry-over  Amount  as
required  in the next  succeeding  sentence.  Not less than four days before the
Auction Rate  Distribution  Date for such Class of the Auction Rate Notes for an
Accrual Period with respect to which such Auction Rate Notes  Carry-over  Amount
has been calculated by the Indenture  Trustee,  the Indenture Trustee shall give
written notice to each Registered Owner, the Auction Agent and the Issuer of the
Auction Rate Notes  Carry-over  Amount  applicable  to each  Registered  Owner's
Auction Rate Note,  which  written  notice may accompany the payment of interest
made to each such  Registered  Owner on such Auction Rate  Distribution  Date or
otherwise shall be mailed on such Auction Rate  Distribution Date by first-class
mail, postage prepaid,  to each such Registered

                                      B-11
<PAGE>
                                                                    Exhibit 4.11

Owner at such  Registered  Owner's  address as it  appears  on the  registration
records  maintained by the Indenture  Trustee.  In addition to such Auction Rate
Notes  Carry-over  Amount,  such notice shall state,  that,  unless and until an
Auction Rate Note has been redeemed (other than by optional  redemption),  after
which  redemption  all accrued  Auction Rate Notes  Carry-over  Amounts (and all
accrued  interest  thereon)  that remain unpaid shall be canceled and no Auction
Rate Notes  Carry-over  Amount (or interest  accrued thereon) shall be paid with
respect to any redeemed Auction Rate Note, (a) the Auction Rate Notes Carry-over
Amount (and  interest  accrued  thereon  calculated at a rate equal to One-Month
LIBOR) shall be paid or, in case of a defeasance,  provided for by the Indenture
Trustee on an Auction Rate Note on the earliest of (i) the date of defeasance or
optional  redemption  of the  Auction  Rate Notes,  or (ii) the first  occurring
Auction Rate  Distribution  Date for such Class of the Auction Rate Notes if and
to the extent that (x) the Eligible Auction Rate Notes Carry-over Make-Up Amount
with respect to such  subsequent  Accrual  Period is greater than zero,  and (y)
moneys  are  available  pursuant  to the  terms of the  Indenture  in an  amount
sufficient to pay all or a portion of such Auction Rate Notes Carry-over  Amount
(and interest  accrued  thereon);  and (b) interest  shall accrue on the Auction
Rate Notes  Carry-over  Amount at a rate  equal to  One-Month  LIBOR  until such
Auction Rate Notes Carry-over Amount is paid in full or is cancelled.

         The Auction Rate Notes Carry-over Amount (and interest accrued thereon)
for Auction Rate Notes shall be paid or, in case of a  defeasance,  provided for
by the Indenture  Trustee on  Outstanding  Auction Rate Notes on the earliest of
(a) the date of  defeasance  or optional  redemption  of any of the Auction Rate
Notes or (b) the first occurring  Auction Rate  Distribution Date for such Class
of the  Auction  Rate Notes if and to the extent that (i) the  Eligible  Auction
Rate Notes  Carry-over  Make-Up  Amount with respect to such  Accrual  Period is
greater than zero,  and (ii) on such Auction  Rate  Distribution  Date there are
sufficient  moneys in the Collection Fund to pay all interest due on the Auction
Rate Notes on such  Auction  Rate  Distribution  Date.  Any  Auction  Rate Notes
Carry-over  Amount (and any interest  accrued  thereon) on any Auction Rate Note
which is due and payable on an Auction Rate  Distribution  Date,  which  Auction
Rate Note is to be redeemed (other than by optional  redemption) on said Auction
Rate  Distribution  Date,  shall be paid to the Registered Owner thereof on said
Auction Rate Distribution Date to the extent that moneys are available  therefor
in accordance  with the provisions of this Appendix B; provided,  however,  that
any Auction  Rate Notes  Carry-over  Amount (and any interest  accrued  thereon)
which is not yet due and payable on said Auction Rate Distribution Date shall be
cancelled  with respect to said Auction Rate Note that is to be redeemed  (other
than by optional  redemption) on said Auction Rate  Distribution  Date and shall
not be paid on any succeeding Auction Rate Distribution Date. To the extent that
any  portion of the  Auction  Rate Notes  Carry-over  Amount  (and any  interest
accrued thereon) remains unpaid after payment of a portion thereof,  such unpaid
portion shall be paid in whole or in part as required hereunder until fully paid
or,  in case of a  defeasance,  provided  for by the  Indenture  Trustee  on the
earliest  of (a) the date of  defeasance  or optional  redemption  of any of the
Auction Rate Notes or (b) the next occurring  Auction Rate  Distribution Date or
Dates,  as  necessary,  if and to the extent that the  conditions  in the second
preceding sentence are satisfied. On any Auction Rate Distribution Date on which
the Indenture  Trustee pays only a portion of the Auction Rate Notes  Carry-over
Amount (and any interest  accrued  thereon) on Auction Rate Notes, the Indenture
Trustee  shall give  written  notice in the manner set forth in the  immediately
preceding  paragraph to the Registered Owner of such Auction Rate Note receiving
such  partial

                                      B-12
<PAGE>
                                                                    Exhibit 4.11

payment of the Auction Rate Notes  Carry-over  Amount  remaining  unpaid on such
Auction Rate Note.

         The Auction  Rate  Distribution  Date for a Class of the  Auction  Rate
Notes or other date on which such Auction Rate Notes  Carry-over  Amount (or any
interest  accrued  thereon)  for  Auction  Rate  Notes  shall  be paid  shall be
determined by the Indenture  Trustee in  accordance  with the  provisions of the
immediately preceding paragraph, and the Indenture Trustee shall make payment of
the Auction Rate Notes  Carry-over  Amount (and any interest accrued thereon) in
the same manner as, and from the same  Account from which,  it pays  interest on
the Auction Rate Notes on an Auction Rate  Distribution Date for the appropriate
Class of the Auction Rate Notes.  Any payment of Auction  Rate Notes  Carry-over
Amounts  (and  interest  accrued  thereon)  shall  reduce the amount of Eligible
Auction Rate Notes Carry-over Make-Up Amount.

         In the event that the Auction Agent no longer  determines,  or fails to
determine,  when required,  the Auction Rate Notes Interest Rate with respect to
Auction Rate Notes, or, if for any reason such manner of determination  shall be
held to be invalid or  unenforceable,  the Auction Rate Notes  Interest Rate for
the next  succeeding  Accrual  Period,  which Accrual Period shall be an Auction
Period,  for Auction Rate Notes shall be the Maximum Rate as  determined  by the
Auction Agent for such next succeeding  Auction Period, and if the Auction Agent
shall fail or refuse to determine  the Maximum  Rate,  the Maximum Rate shall be
determined by the  securities  dealer  appointed by the Issuer capable of making
such a  determination  in accordance  with the provisions of this Appendix B and
written notice of such determination shall be given by such securities dealer to
the Indenture Trustee.

         Section 2.02.  Auction Rate.

                  (a) Determining  the Auction Rate. By purchasing  Auction Rate
         Notes,  whether in an  Auction  or  otherwise,  each  purchaser  of the
         Auction  Rate  Notes,  or its  Broker-Dealer,  must  agree and shall be
         deemed by such purchase to have agreed (x) to  participate  in Auctions
         on the terms described herein, (y) to have its beneficial  ownership of
         the Auction Rate Notes  maintained at all times in Book-entry  Form for
         the account of its Participant,  which in turn will maintain records of
         such  beneficial  ownership and (z) to authorize  such  Participant  to
         disclose to the Auction  Agent such  information  with  respect to such
         beneficial ownership as the Auction Agent may request.

                  So long as the  ownership of Auction Rate Notes is  maintained
         in Book-entry Form by the Securities Depository,  an Existing Owner may
         sell, transfer or otherwise dispose of Auction Rate Notes only pursuant
         to a Bid or Sell Order placed in an Auction or otherwise sell, transfer
         or dispose of Auction  Rate  Notes  through a  Broker-Dealer,  provided
         that,  in the case of all  transfers  other than  pursuant to Auctions,
         such Existing Owner, its  Broker-Dealer or its Participant  advises the
         Auction  Agent of such  transfer.  Auctions  shall be conducted on each
         Auction Date, if there is an Auction Agent on such Auction Date, in the
         following  manner  (the  Auction  Rate Notes  Interest  Rates  shall be
         determined separately for each Class of the Auction Rate Notes):

                                      B-13
<PAGE>
                                                                    Exhibit 4.11

                                    (i) (A) Prior to the Submission  Deadline on
                           each Auction Date;

                                             (1) each Existing  Owner of Auction
                                    Rate Notes may submit to a Broker-Dealer  by
                                    telephone or otherwise  any  information  as
                                    to:

                                                      a. the principal amount of
                                             Outstanding  Auction Rate Notes, if
                                             any,  owned by such Existing  Owner
                                             which such  Existing  Owner desires
                                             to continue  to own without  regard
                                             to the Auction Rate Notes  Interest
                                             Rate   for  the   next   succeeding
                                             Auction Period;

                                                      b. the principal amount of
                                             Outstanding  Auction Rate Notes, if
                                             any,   which  such  Existing  Owner
                                             offers to sell if the Auction  Rate
                                             Notes  Interest  Rate  for the next
                                             succeeding  Auction Period shall be
                                             less   than  the  rate  per   annum
                                             specified by such  Existing  Owner;
                                             and/or

                                                      c. the principal amount of
                                             Outstanding  Auction Rate Notes, if
                                             any,  owned by such Existing  Owner
                                             which such Existing Owner offers to
                                             sell without  regard to the Auction
                                             Rate  Notes  Interest  Rate for the
                                             next succeeding Auction Period;

                                             and

                                             (2) one or more  Broker-Dealers may
                                    contact  Potential  Owners to determine  the
                                    principal amount of Auction Rate Notes which
                                    each Potential Owner offers to purchase,  if
                                    the Auction Rate Notes Interest Rate for the
                                    next succeeding  Auction Period shall not be
                                    less  than the rate per annum  specified  by
                                    such Potential Owner.

                                    The  statement  of an  Existing  Owner  or a
                           Potential  Owner  referred  to in (1) or (2) of  this
                           paragraph  (A) is herein  referred  to as an "Order,"
                           and each  Existing  Owner  and each  Potential  Owner
                           placing an Order is herein referred to as a "Bidder";
                           an Order  described in clause (1)a is herein referred
                           to as a "Hold Order";  an Order  described in clauses
                           (1)b and (2) is herein referred to as a "Bid"; and an
                           Order  described in clause (1)c is herein referred to
                           as a "Sell Order."

                                    (B) (1) Subject to the provisions of Section
                                    2.02(a)(ii)  of this Appendix B, a Bid by an
                                    Existing    Owner   shall    constitute   an
                                    irrevocable offer to sell:

                                                      a. the principal amount of
                                             Outstanding   Auction   Rate  Notes
                                             specified   in  such   Bid  if  the
                                             Auction  Rate Notes

                                      B-14
<PAGE>
                                                                    Exhibit 4.11

                                             Interest    Rate    determined   as
                                             provided  in this  Section  2.02(a)
                                             shall   be  less   than   the  rate
                                             specified therein; or

                                                      b. such principal  amount,
                                             or a  lesser  principal  amount  of
                                             Outstanding  Auction  Rate Notes to
                                             be   determined  as  set  forth  in
                                             Section  2.02(a)(iv)(A)(4)  of this
                                             Appendix  B,  if the  Auction  Rate
                                             Notes  Interest Rate  determined as
                                             provided  in this  Section  2.02(a)
                                             shall   be   equal   to  the   rate
                                             specified therein; or

                                                      c. such principal  amount,
                                             or a  lesser  principal  amount  of
                                             Outstanding  Auction  Rate Notes to
                                             be   determined  as  set  forth  in
                                             Section  2.02(a)(iv)(B)(3)  of this
                                             Appendix  B, if the rate  specified
                                             therein  shall be  higher  than the
                                             applicable    Maximum    Rate   and
                                             Sufficient Bids have not been made.

                                             (2)  Subject to the  provisions  of
                                     Section  2.02(a)(ii)  of this Appendix B, a
                                     Sell  Order  by  an  Existing  Owner  shall
                                     constitute an irrevocable offer to sell:

                                                      a. the principal amount of
                                             Outstanding   Auction   Rate  Notes
                                             specified in such Sell Order; or

                                                      b. such principal  amount,
                                             or a  lesser  principal  amount  of
                                             Outstanding  Auction Rate Notes set
                                             forth in Section  2.02(a)(iv)(B)(3)
                                             of this  Appendix B, if  Sufficient
                                             Bids have not been made.

                                             (3)  Subject to the  provisions  of
                                     Section  2.02(a)(ii)  of this Appendix B, a
                                     Bid by a Potential  Owner shall  constitute
                                     an irrevocable offer to purchase:

                                                      a. the principal amount of
                                             Outstanding   Auction   Rate  Notes
                                             specified   in  such   Bid  if  the
                                             Auction  Rate Notes  Interest  Rate
                                             determined   as  provided  in  this
                                             Section  2.02(a)  shall  be  higher
                                             than  the  rate  specified  in such
                                             Bid; or

                                                      b. such principal  amount,
                                             or a  lesser  principal  amount  of
                                             Outstanding  Auction Rate Notes set
                                             forth in Section  2.02(a)(iv)(A)(5)
                                             of this  Appendix B, if the Auction
                                             Rate Notes Interest Rate determined
                                             as provided in this Section 2.02(a)
                                             shall   be   equal   to  the   rate
                                             specified in such Bid.

                           (ii) (A) Each  Broker-Dealer  shall submit in writing
                           to the Auction Agent prior to the Submission Deadline
                           on each  Auction  Date all  Orders

                                      B-15
<PAGE>
                                                                    Exhibit 4.11

                           obtained by such Broker-Dealer and shall specify with
                           respect to each such Order:

                                             (1) the name of the Bidder  placing
                                    such Order;

                                             (2) the aggregate  principal amount
                                    of Auction  Rate Notes that are the  subject
                                    of such Order;

                                             (3) to the extent  that such Bidder
                                    is an Existing Owner:

                                                      a. the principal amount of
                                             Auction Rate Notes, if any, subject
                                             to any Hold  Order  placed  by such
                                             Existing Owner;

                                                      b. the principal amount of
                                             Auction Rate Notes, if any, subject
                                             to any Bid placed by such  Existing
                                             Owner  and the  rate  specified  in
                                             such Bid; and

                                                      c. the principal amount of
                                             Auction Rate Notes, if any, subject
                                             to any Sell  Order  placed  by such
                                             Existing Owner;

                                    and

                                             (4) to the extent  such Bidder is a
                                    Potential  Owner, the rate specified in such
                                    Potential Owner's Bid.

                                    (B)  If  any  rate   specified  in  any  Bid
                           contains  more than three figures to the right of the
                           decimal  point,  the  Auction  Agent shall round such
                           rate up to the next higher one thousandth of 1%.

                                    (C)  If an  Order  or  Orders  covering  all
                           Outstanding  Auction  Rate Notes owned by an Existing
                           Owner is not  submitted to the Auction Agent prior to
                           the Submission Deadline, the Auction Agent shall deem
                           a Hold Order to have been submitted on behalf of such
                           Existing  Owner  covering  the  principal  amount  of
                           Outstanding Auction Rate Notes owned by such Existing
                           Owner and not  subject to an Order  submitted  to the
                           Auction Agent.

                                    (D)  None  of  the  Issuer,   the  Indenture
                           Trustee or the Auction Agent shall be responsible for
                           any failure of a Broker-Dealer  to submit an Order to
                           the Auction Agent on behalf of any Existing  Owner or
                           Potential Owner.

                                    (E) If any Existing Owner submits  through a
                           Broker-Dealer to the Auction Agent one or more Orders
                           covering  in the  aggregate  more than the  principal
                           amount of  Outstanding  Auction  Rate Notes  owned by

                                      B-16
<PAGE>
                                                                    Exhibit 4.11

                           such Existing Owner,  such Orders shall be considered
                           valid  as  follows  and in  the  following  order  of
                           priority:

                                             (1)  All  Hold   Orders   shall  be
                                    considered   valid,   but  only  up  to  the
                                    aggregate  principal  amount of  Outstanding
                                    Auction  Rate Notes  owned by such  Existing
                                    Owner, and if the aggregate principal amount
                                    of Auction  Rate Notes  subject to such Hold
                                    Orders   exceeds  the  aggregate   principal
                                    amount of Auction  Rate Notes  owned by such
                                    Existing  Owner,  the  aggregate   principal
                                    amount of Auction Rate Notes subject to each
                                    such Hold Order shall be reduced pro rata so
                                    that  the  aggregate   principal  amount  of
                                    Auction  Rate  Notes  subject  to such  Hold
                                    Order equals the aggregate  principal amount
                                    of  Outstanding  Auction Rate Notes owned by
                                    such Existing Owner.

                                             (2) a. Any Bid shall be  considered
                                             valid up to an amount  equal to the
                                             excess of the  principal  amount of
                                             Outstanding   Auction   Rate  Notes
                                             owned by such  Existing  Owner over
                                             the aggregate  principal  amount of
                                             Auction  Rate Notes  subject to any
                                             Hold  Order  referred  to in clause
                                             (A) of this paragraph (v);

                                                      b.  subject  to  subclause
                                             (1) of  this  clause  (B),  if more
                                             than one Bid with the same  rate is
                                             submitted   on   behalf   of   such
                                             Existing  Owner  and the  aggregate
                                             principal   amount  of  Outstanding
                                             Auction Rate Notes  subject to such
                                             Bids is greater  than such  excess,
                                             such Bids shall be considered valid
                                             up  to  an  amount  equal  to  such
                                             excess;

                                                      c.  subject to  subclauses
                                             (1) and (2) of this  clause (B), if
                                             more  than one Bid  with  different
                                             rates  are  submitted  on behalf of
                                             such  Existing  Owner,   such  Bids
                                             shall be considered  valid first in
                                             the   ascending   order   of  their
                                             respective  rates until the highest
                                             rate  is   reached  at  which  such
                                             excess exists and then at such rate
                                             up to the  amount  of such  excess;
                                             and

                                                      d. in any such event,  the
                                             amount of Outstanding  Auction Rate
                                             Notes, if any,  subject to Bids not
                                             valid  under this  clause (B) shall
                                             be treated as the  subject of a Bid
                                             by a  Potential  Owner  at the rate
                                             therein specified; and

                                             (3)  All  Sell   Orders   shall  be
                                    considered  valid up to an  amount  equal to
                                    the  excess  of  the  principal   amount  of
                                    Outstanding Auction Rate Notes owned by such
                                    Existing Owner over the aggregate  principal
                                    amount of Auction Rate Notes subject to Hold

                                      B-17
<PAGE>
                                                                    Exhibit 4.11

                                    Orders  referred  to in  clause  (1) of this
                                    paragraph  (v) and valid Bids referred to in
                                    clause (2) of this paragraph (E).

                                    (F) If more  than one Bid for  Auction  Rate
                           Notes is submitted on behalf of any Potential  Owner,
                           each Bid  submitted  shall be a separate Bid with the
                           rate and principal amount therein specified.

                                    (G)  An   Existing   Owner  that  offers  to
                           purchase   additional  Auction  Rate  Notes  is,  for
                           purposes of such offer, treated as a Potential Owner.

                                    (H) Any Bid or Sell  Order  submitted  by an
                           Existing Owner covering an aggregate principal amount
                           of  Auction  Rate  Notes not  equal to an  Authorized
                           Denomination  shall be rejected and shall be deemed a
                           Hold Order.  Any Bid  submitted by a Potential  Owner
                           covering  an  aggregate  principal  amount of Auction
                           Rate  Notes not equal to an  Authorized  Denomination
                           shall be rejected.

                                    (I) Any Bid  specifying  a rate  higher than
                           the applicable  Maximum Rate will (1) be treated as a
                           Sell Order if submitted by an Existing  Owner and (2)
                           not be accepted if submitted by a Potential Owner.

                                    (J) Any Order  submitted  in an Auction by a
                           Broker-Dealer  to  the  Auction  Agent  prior  to the
                           Submission  Deadline  on any  Auction  Date  shall be
                           irrevocable.

                           (iii) (A) Not earlier than the Submission Deadline on
                           each Auction Date,  the Auction Agent shall  assemble
                           all valid Orders  submitted or deemed submitted to it
                           by the  Broker-Dealers  (each such Order as submitted
                           or deemed  submitted by a Broker-Dealer  being herein
                           referred to individually as a "Submitted Hold Order,"
                           a "Submitted Bid" or a "Submitted Sell Order," as the
                           case  may  be,  or  as  a   "Submitted   Order,"  and
                           collectively as "Submitted  Hold Orders,"  "Submitted
                           Bids" or "Submitted Sell Orders," as the case may be,
                           or as "Submitted Orders") and shall determine:

                                             (1)  the   excess   of  the   total
                                    principal amount of Outstanding Auction Rate
                                    Notes   over   the  sum  of  the   aggregate
                                    principal amount of Outstanding Auction Rate
                                    Notes subject to Submitted Hold Orders (such
                                    excess  being  herein  referred  to  as  the
                                    "Available Auction Rate Notes"), and

                                             (2)  from  the   Submitted   Orders
                                    whether:

                                                      a. the aggregate principal
                                             amount of Outstanding  Auction Rate
                                             Notes subject to Submitted  Bids by
                                             Potential Owners  specifying one or
                                             more  rates  equal to or lower than
                                             the applicable Maximum Rate;

                                      B-18
<PAGE>
                                                                    Exhibit 4.11

                                             exceeds or is equal to the sum of:

                                                      b. the aggregate principal
                                             amount of Outstanding  Auction Rate
                                             Notes subject to Submitted  Bids by
                                             Existing  Owners  specifying one or
                                             more   rates    higher   than   the
                                             applicable Maximum Rate; and

                                                      c. the aggregate principal
                                             amount of Outstanding  Auction Rate
                                             Notes  subject  to  Submitted  Sell
                                             Orders;

                                    (in the event such  excess or such  equality
                                    exists,   other  than  because  all  of  the
                                    Outstanding  Auction  Rate Notes are subject
                                    to  Submitted  Hold Orders,  such  Submitted
                                    Bids  described  in subclause a. above shall
                                    be referred to  collectively  as "Sufficient
                                    Bids"); and

                                             (3) if Sufficient  Bids exist,  the
                                    Bid Auction Rate,  which shall be the lowest
                                    rate  specified in such  Submitted Bids such
                                    that if:

                                                      a. (x) each  Submitted Bid
                                             from  Existing  Owners   specifying
                                             such  lowest rate and (y) all other
                                             Submitted Bids from Existing Owners
                                             specifying    lower    rates   were
                                             rejected,   thus   entitling   such
                                             Existing  Owners to continue to own
                                             the  principal  amount  of  Auction
                                             Rate   Notes    subject   to   such
                                             Submitted Bids; and

                                                      b. (x) each such Submitted
                                             Bid    from    Potential     Owners
                                             specifying such lowest rate and (y)
                                             all  other   Submitted   Bids  from
                                             Potential  Owners  specifying lower
                                             rates were accepted;

                                    the  result  would  be  that  such  Existing
                                    Owners described in subclause a. above would
                                    continue  to  own  an  aggregate   principal
                                    amount of  Outstanding  Auction  Rate  Notes
                                    which, when added to the aggregate principal
                                    amount of Outstanding  Auction Rate Notes to
                                    be  purchased  by  such   Potential   Owners
                                    described in subclause b. above, would equal
                                    not less  than the  Available  Auction  Rate
                                    Notes.

                                    (B)  Promptly  after the  Auction  Agent has
                           made   the   determinations   pursuant   to   Section
                           2.02(a)(iii)(A) of this Appendix B, the Auction Agent
                           shall    advise   the    Indenture    Trustee,    the
                           Broker-Dealers and the Issuer of the Maximum Rate and
                           the All-Hold Rate and the  components  thereof on the
                           Auction Date and, based on such  determinations,  the
                           Auction Rate for the next  succeeding  Accrual Period
                           as follows:

                                      B-19
<PAGE>
                                                                    Exhibit 4.11

                                             (1) if Sufficient Bids exist,  that
                                    the  Auction  Rate for the  next  succeeding
                                    Accrual  Period  shall  be  equal to the Bid
                                    Auction Rate so determined;

                                             (2) if Sufficient Bids do not exist
                                    (other than  because all of the  Outstanding
                                    Auction  Rate Notes are subject to Submitted
                                    Hold Orders),  that the Auction Rate for the
                                    next  succeeding  Accrual  Period  shall  be
                                    equal to the applicable Maximum Rate; or

                                             (3) if all Outstanding Auction Rate
                                    Notes are subject to Submitted  Hold Orders,
                                    that   the   Auction   Rate   for  the  next
                                    succeeding  Accrual Period shall be equal to
                                    the applicable All-Hold Rate.

                                    (C)  Promptly  after the  Auction  Agent has
                           determined  the Auction Rate, the Auction Agent shall
                           determine  and  advise the  Indenture  Trustee of the
                           Auction Rate Notes Interest Rate.

                           (iv)  Existing  Owners  shall  continue  to  own  the
                  principal  amount of Auction  Rate  Notes that are  subject to
                  Submitted  Hold  Orders.  If the  Maximum  Rate is equal to or
                  greater than the Bid Auction Rate and if Sufficient  Bids have
                  been received by the Auction Agent,  the Bid Auction Rate will
                  be the Auction Rate Notes  Interest  Rate,  and Submitted Bids
                  and Submitted Sell Orders will be accepted or rejected and the
                  Auction  Agent will take such other action as described  below
                  in subparagraph (A).

                           If the Maximum  Rate is less than the  Auction  Rate,
                  the  Auction  Rate Notes  Interest  Rate shall be the  Maximum
                  Rate.  If the Auction Agent has not received  Sufficient  Bids
                  (other than because all of the Outstanding  Auction Rate Notes
                  are subject to Submitted Hold Orders),  the Auction Rate Notes
                  Interest  Rate will be the Maximum  Rate.  In any of the cases
                  described above, Submitted Orders will be accepted or rejected
                  and the Auction Agent will take such other action as described
                  below in subparagraph (B).

                                    (A) If  Sufficient  Bids  have been made and
                           the Maximum  Rate is equal to or greater than the Bid
                           Auction Rate,  and if the Maximum Rate does not apply
                           (in which case the Auction Rate Notes  Interest  Rate
                           shall be the Bid Auction  Rate),  all Submitted  Sell
                           Orders  shall  be  accepted   and,   subject  to  the
                           provisions  of  clauses  (4) and (5) of this  Section
                           2.02(a)(iv),  Submitted  Bids  shall be  accepted  or
                           rejected  as  follows  in  the  following   order  of
                           priority,  and all  other  Submitted  Bids  shall  be
                           rejected:

                                             (1) Existing Owners' Submitted Bids
                                    specifying  any rate that is higher than the
                                    Auction  Rate Notes  Interest  Rate shall be
                                    accepted,  thus requiring each such Existing
                                    Owner to sell the aggregate principal amount
                                    of  Auction  Rate  Notes   subject  to  such
                                    Submitted Bids;

                                      B-20
<PAGE>
                                                                    Exhibit 4.11

                                             (2) Existing Owners' Submitted Bids
                                    specifying  any rate that is lower  than the
                                    Auction  Rate Notes  Interest  Rate shall be
                                    rejected,  thus entitling each such Existing
                                    Owner  to  continue  to  own  the  aggregate
                                    principal   amount  of  Auction  Rate  Notes
                                    subject to such Submitted Bids;

                                             (3)  Potential   Owners'  Submitted
                                    Bids  specifying any rate that is lower than
                                    the Auction Rate Notes  Interest  Rate shall
                                    be accepted;

                                             (4) Each Existing Owners' Submitted
                                    Bid  specifying  a rate that is equal to the
                                    Auction  Rate Notes  Interest  Rate shall be
                                    rejected, thus entitling such Existing Owner
                                    to continue to own the  aggregate  principal
                                    amount of Auction Rate Notes subject to such
                                    Submitted   Bid,    unless   the   aggregate
                                    principal amount of Outstanding Auction Rate
                                    Notes  subject  to all such  Submitted  Bids
                                    shall be greater than the  principal  amount
                                    of  Auction   Rate  Notes  (the   "remaining
                                    principal  amount")  equal to the  excess of
                                    the  Available  Auction  Rate Notes over the
                                    aggregate  principal  amount of Auction Rate
                                    Notes subject to Submitted Bids described in
                                    clauses   (2)  and   (3)  of  this   Section
                                    2.02(a)(iv)(A),    in   which   event   such
                                    Submitted Bid of such  Existing  Owner shall
                                    be rejected in part, and such Existing Owner
                                    shall be  entitled  to  continue  to own the
                                    principal   amount  of  Auction  Rate  Notes
                                    subject to such  Submitted  Bid, but only in
                                    an amount equal to the  aggregate  principal
                                    amount of  Auction  Rate Notes  obtained  by
                                    multiplying the remaining  principal  amount
                                    by a fraction,  the numerator of which shall
                                    be  the  principal   amount  of  Outstanding
                                    Auction  Rate Notes  owned by such  Existing
                                    Owner subject to such  Submitted Bid and the
                                    denominator of which shall be the sum of the
                                    principal amount of Outstanding Auction Rate
                                    Notes subject to such Submitted Bids made by
                                    all such  Existing  Owners that  specified a
                                    rate  equal  to  the   Auction   Rate  Notes
                                    Interest Rate,  subject to the provisions of
                                    Section  2.02(a)(iv)(D)  of this Appendix B;
                                    and

                                             (5)    Each    Potential    Owner's
                                    Submitted  Bid  specifying  a rate  that  is
                                    equal to the  Auction  Rate  Notes  Interest
                                    Rate  shall  be  accepted,  but  only  in an
                                    amount  equal  to the  principal  amount  of
                                    Auction Rate Notes  obtained by  multiplying
                                    the excess of the aggregate principal amount
                                    of  Available  Auction  Rate  Notes over the
                                    aggregate  principal  amount of Auction Rate
                                    Notes subject to Submitted Bids described in
                                    clauses  (2),  (3) and  (4) of this  Section
                                    2.02(a)(iv)(A)  by a fraction the  numerator
                                    of which  shall be the  aggregate  principal
                                    amount of  Outstanding  Auction  Rate  Notes
                                    subject  to  such   Submitted  Bid  and  the
                                    denominator of which shall be the sum of the
                                    principal amount of Outstanding Auction Rate
                                    Notes subject to Submitted  Bids made by all
                                    such Potential

                                      B-21
<PAGE>
                                                                    Exhibit 4.11

                                    Owners  that  specified  a rate equal to the
                                    Auction Rate Notes Interest Rate, subject to
                                    the provisions of Section  2.02(a)(iv)(D) of
                                    this Appendix B.

                                    (B) If  Sufficient  Bids  have not been made
                           (other than  because all of the  Outstanding  Auction
                           Rate Notes are subject to Submitted Hold Orders),  or
                           if the Maximum Rate is less than the Bid Auction Rate
                           (in which case the Auction Rate Notes  Interest  Rate
                           shall be the Maximum Rate), subject to the provisions
                           of  Section   2.02(a)(iv)(D)   of  this  Appendix  B,
                           Submitted  Orders  shall be  accepted  or rejected as
                           follows in the  following  order of priority  and all
                           other Submitted Bids shall be rejected:

                                             (1) Existing Owners' Submitted Bids
                                    specifying  any  rate  that is  equal  to or
                                    lower than the Auction  Rate Notes  Interest
                                    Rate shall be rejected,  thus entitling such
                                    Existing  Owners  to  continue  to  own  the
                                    aggregate  principal  amount of Auction Rate
                                    Notes subject to such Submitted Bids;

                                             (2)  Potential   Owners'  Submitted
                                    Bids  specifying  (x) any rate that is equal
                                    to or lower  than  the  Auction  Rate  Notes
                                    Interest  Rate shall be accepted and (y) any
                                    rate that is higher  than the  Auction  Rate
                                    Notes Interest Rate shall be rejected; and

                                             (3) each Existing Owner's Submitted
                                    Bid  specifying any rate that is higher than
                                    the Auction Rate Notes Interest Rate and the
                                    Submitted  Sell Order of each Existing Owner
                                    shall  be  accepted,   thus  entitling  each
                                    Existing   Owner  that  submitted  any  such
                                    Submitted  Bid or  Submitted  Sell  Order to
                                    sell the Auction Rate Notes  subject to such
                                    Submitted Bid or Submitted  Sell Order,  but
                                    in both cases only in an amount equal to the
                                    aggregate  principal  amount of Auction Rate
                                    Notes obtained by multiplying  the aggregate
                                    principal   amount  of  Auction  Rate  Notes
                                    subject  to  Submitted   Bids  described  in
                                    clause (2)(x) of this Section 2.02(a)(iv)(B)
                                    by a fraction,  the numerator of which shall
                                    be  the   aggregate   principal   amount  of
                                    Outstanding Auction Rate Notes owned by such
                                    Existing Owner subject to such Submitted Bid
                                    or Submitted Sell Order and the  denominator
                                    of which  shall be the  aggregate  principal
                                    amount of  Outstanding  Auction  Rate  Notes
                                    subject  to  all  such  Submitted  Bids  and
                                    Submitted Sell Orders.

                                    (C) If all Auction Rate Notes are subject to
                           Submitted  Hold Orders,  all Submitted  Bids shall be
                           rejected.

                                    (D)  If,  as  a  result  of  the  procedures
                           described  in  paragraph  (A) or (B) of this  Section
                           2.02(a)(iv),  any Existing Owner would be entitled or
                           required  to sell,  or any  Potential  Owner would be
                           entitled or required to

                                      B-22
<PAGE>
                                                                    Exhibit 4.11

                           purchase,  a principal  amount of Auction  Rate Notes
                           that is not equal to an Authorized Denomination,  the
                           Auction  Agent  shall,  in such manner as in its sole
                           discretion it shall  determine,  round up or down the
                           principal   amount  of  Auction   Rate  Notes  to  be
                           purchased or sold by any Existing  Owner or Potential
                           Owner so that the  principal  amount of Auction  Rate
                           Notes  purchased  or sold by each  Existing  Owner or
                           Potential  Owner  shall  be  equal  to an  Authorized
                           Denomination.

                                    (E)  If,  as  a  result  of  the  procedures
                           described   in   paragraph   (B)  of   this   Section
                           2.02(a)(iv), any Potential Owner would be entitled or
                           required   to  purchase   less  than  an   Authorized
                           Denomination of Auction Rate Notes, the Auction Agent
                           shall,  in such manner as in its sole  discretion  it
                           shall  determine,  allocate  Auction  Rate  Notes for
                           purchase among Potential  Owners so that only Auction
                           Rate Notes in Authorized  Denominations are purchased
                           by any  Potential  Owner,  even  if  such  allocation
                           results in one or more of such  Potential  Owners not
                           purchasing any Auction Rate Notes.

                           (v) Based on the result of each Auction,  the Auction
                  Agent  shall  determine  the  aggregate  principal  amount  of
                  Auction Rate Notes to be purchased and the aggregate principal
                  amount of Auction  Rate Notes to be sold by  Potential  Owners
                  and  Existing  Owners  on  whose  behalf  each   Broker-Dealer
                  submitted  Bids or  Sell  Orders  and,  with  respect  to each
                  Broker-Dealer,  to the extent  that such  aggregate  principal
                  amount of  Auction  Rate  Notes to be sold  differs  from such
                  aggregate  principal  amount  of  Auction  Rate  Notes  to  be
                  purchased,   determine   to  which  other   Broker-Dealer   or
                  Broker-Dealers   acting  for  one  or  more   purchasers  such
                  Broker-Dealer shall deliver, or from which other Broker-Dealer
                  or  Broker-Dealers   acting  for  one  or  more  sellers  such
                  Broker-Dealer  shall receive, as the case may be, Auction Rate
                  Notes.

                           (vi)  Any  calculation  by the  Auction  Agent or the
                  Indenture  Trustee,  as applicable,  of the Auction Rate Notes
                  Interest  Rate,  the Maximum  Rate,  the All-Hold Rate and the
                  Non-Payment  Rate shall,  in the absence of manifest error, be
                  binding on all other parties.

                           (vii) Notwithstanding  anything in this Appendix B to
                  the contrary, (A) no Auction for the Auction Rate Notes for an
                  Auction  Period  of less  than  180  days  will be held on any
                  Auction Date hereunder on which there are insufficient  moneys
                  in the  Collection  Fund  to  pay,  or  otherwise  held by the
                  Indenture  Trustee  under the  Indenture and available to pay,
                  the principal of and interest due on the Auction Rate Notes on
                  the Auction Rate  Distribution  Date for the appropriate Class
                  of the Auction Rate Notes  immediately  following such Auction
                  Date,  and (B) no  Auction  will be held on any  Auction  Date
                  hereunder  during the  continuance of a Payment  Default.  The
                  Indenture  Trustee shall promptly  notify the Auction Agent of
                  any such occurrence.

                                      B-23
<PAGE>
                                                                    Exhibit 4.11

                  (b)  Application  of Interest  Payments  for the Auction  Rate
         Notes.

                           (i) The Indenture  Trustee shall  determine not later
                  than  2:00  p.m.,  eastern  time,  on the  Business  Day  next
                  succeeding  an  Auction  Rate  Distribution  Date,  whether  a
                  Payment  Default  has  occurred.  If  a  Payment  Default  has
                  occurred,  the Indenture  Trustee  shall,  not later than 2:15
                  p.m.,  eastern  time,  on such  Business  Day,  send a  notice
                  thereof in substantially the form of Exhibit C attached hereto
                  to the Auction Agent by telecopy or similar means and, if such
                  Payment  Default  is  cured,   the  Indenture   Trustee  shall
                  immediately send a notice in substantially the form of Exhibit
                  D attached  hereto to the Auction Agent by telecopy or similar
                  means.

                           (ii) Not later than 2:00 p.m.,  eastern time, on each
                  anniversary of the Closing Date,  the Indenture  Trustee shall
                  pay to the Auction Agent,  in immediately  available funds out
                  of  amounts in the  Collection  Fund,  an amount  equal to the
                  Auction Agent Fee as set forth in the Auction Agent Agreement.
                  Not later than 2:00 p.m.,  eastern time, on each Auction Date,
                  the  Indenture  Trustee  shall pay to the  Auction  Agent,  in
                  immediately  available  funds out of amounts in the Collection
                  Fund, an amount equal to the  Broker-Dealer  Fee as calculated
                  in the Broker-Dealer  Agreement.  The Indenture Trustee shall,
                  from time to time at the request of the  Auction  Agent and at
                  the direction of an Authorized Officer,  reimburse the Auction
                  Agent for its  reasonable  expenses as provided in the Auction
                  Agent  Agreement,  such  expenses to be paid out of amounts in
                  the Collection Fund.

                  (c)  Calculation of Maximum Rate,  All-Hold  Rate,  Applicable
         LIBOR Rate, and Non-Payment Rate. The Auction Agent shall calculate the
         Maximum Rate, Applicable LIBOR Rate, and All-Hold Rate, as the case may
         be, on each Auction Date and shall notify the Indenture Trustee and the
         Broker-Dealers of the Maximum Rate,  Applicable LIBOR Rate and All-Hold
         Rate, as the case may be, as provided in the Auction  Agent  Agreement;
         provided,  that if the ownership of the Auction Rate Notes is no longer
         maintained  in Book-entry  Form, or if a Payment  Default has occurred,
         then the Indenture Trustee shall determine the Maximum Rate, Applicable
         LIBOR Rate,  All-Hold Rate and  Non-Payment  Rate for each such Accrual
         Period.  If the  ownership  of the  Auction  Rate  Notes  is no  longer
         maintained  in  Book-entry  Form  by  the  Securities  Depository,  the
         Indenture  Trustee shall calculate the Maximum Rate on the Business Day
         immediately  preceding  the first day of each Accrual  Period after the
         delivery of certificates  representing  the Auction Rate Notes pursuant
         to the  Indenture.  If a  Payment  Default  shall  have  occurred,  the
         Indenture  Trustee shall calculate the Non-Payment Rate on the Interest
         Rate  Determination  Date for (i) each Accrual Period  commencing after
         the occurrence and during the  continuance of such Payment  Default and
         (ii) any Accrual  Period  commencing  less than two Business Days after
         the cure of any Payment  Default.  The  determination  by the Indenture
         Trustee or the Auction Agent,  as the case may be, of the Maximum Rate,
         Applicable LIBOR Rate, All-Hold Rate and Non-Payment Rate shall (in the
         absence of manifest  error) be final and binding upon all  parties.  If
         calculated or determined by the Auction Agent,  the Auction Agent shall
         promptly advise the Indenture  Trustee of the Maximum Rate,  Applicable
         LIBOR Rate and All-Hold Rate.

                                      B-24
<PAGE>
                                                                    Exhibit 4.11

                  (d)   Notification   of  Rates,   Amounts  and  Auction   Rate
         Distribution Dates.

                           (i) By 12:00 noon,  eastern time, on the Business Day
                  following  each  Record  Date,  the  Indenture  Trustee  shall
                  determine the aggregate  amounts of interest  distributable on
                  the next succeeding  Auction Rate  Distribution  Date for each
                  Class of the Auction  Rate Notes to the  beneficial  owners of
                  Auction Rate Notes.

                           (ii) At least  four days  prior to any  Auction  Rate
                  Distribution Date, the Indenture Trustee shall:

                                    (A) confirm with the Auction Agent,  so long
                           as no Payment  Default has occurred and is continuing
                           and  the  ownership  of the  Auction  Rate  Notes  is
                           maintained  in  Book-entry  Form  by  the  Securities
                           Depository,  (1) the date of such next  Auction  Rate
                           Distribution  Date for such Class of the Auction Rate
                           Notes and (2) the amount payable to the Auction Agent
                           on the Auction Date  pursuant to Section  2.02(b)(ii)
                           of this Appendix B;

                                    (B)   pursuant  to  Section   2.01  of  this
                           Appendix  B,  advise  the  Registered  Owners of each
                           Class of the Auction  Rate Notes of any Auction  Rate
                           Notes Carry-over Amount accruing on such Class of the
                           Auction Rate Notes; and

                                    (C) advise  the  Securities  Depository,  so
                           long as the  ownership  of the Auction  Rate Notes is
                           maintained  in  Book-entry  Form  by  the  Securities
                           Depository,  upon request, of the aggregate amount of
                           interest  distributable  on such  next  Auction  Rate
                           Distribution  Date for such Class of the Auction Rate
                           Notes to the beneficial owners thereof.

                  If any day scheduled to be an Auction Rate  Distribution  Date
         shall be  changed  after the  Indenture  Trustee  shall  have given the
         notice  or  confirmation  referred  to in clause  (i) of the  preceding
         sentence,  the  Indenture  Trustee  shall,  not later than 11:15  a.m.,
         eastern time, on the Business Day next preceding the earlier of the new
         Auction Rate  Distribution  Date or the old Auction  Rate  Distribution
         Date, by such means as the Indenture  Trustee deems  practicable,  give
         notice  of such  change to the  Auction  Agent,  so long as no  Payment
         Default has occurred and is continuing and the ownership of the Auction
         Rate  Notes  is  maintained  in  Book-entry   Form  by  the  Securities
         Depository.

                  (e) Auction Agent.

                           (i) Deutsche  Bank Trust  Company  Americas is hereby
                  appointed as Initial  Auction  Agent to serve as agent for the
                  Issuer in connection with Auctions.  The Indenture Trustee and
                  the Issuer will, and the Indenture  Trustee is hereby directed
                  to,  enter  into the  Initial  Auction  Agent  Agreement  with
                  Deutsche Bank Trust Company  Americas,  as the Initial Auction
                  Agent.  Any  Substitute  Auction  Agent  shall  be (A) a bank,
                  national  banking  association or trust company duly organized
                  under the laws of the United States of America or any state or
                  territory

                                      B-25
<PAGE>
                                                                    Exhibit 4.11

                  thereof having its principal  place of business in the Borough
                  of Manhattan,  New York, or such other location as approved by
                  the Indenture Trustee in writing and having a combined capital
                  stock or surplus of at least  $50,000,000,  or (B) a member of
                  the National Association of Securities Dealers, Inc., having a
                  capitalization of at least  $50,000,000,  and, in either case,
                  authorized  by law to perform all the duties  imposed  upon it
                  hereunder and under the Auction Agent  Agreement.  The Auction
                  Agent may at any time resign and be  discharged  of the duties
                  and obligations  created by this Appendix B by giving at least
                  90 days' notice to the Indenture  Trustee,  each Broker-Dealer
                  and the Issuer.  The Auction  Agent may be removed at any time
                  by the  Indenture  Trustee  upon the written  direction  of an
                  Authorized  Officer  or the  Registered  Owners  of 51% of the
                  aggregate  principal  amount of the  Auction  Rate  Notes then
                  Outstanding,   and  if  by  such  Registered   Owners,  by  an
                  instrument signed by such Registered Owners or their attorneys
                  and filed with the Auction Agent, the Issuer and the Indenture
                  Trustee  upon  at  least  90  days'  written  notice.  Neither
                  resignation  nor removal of the Auction Agent  pursuant to the
                  preceding two sentences  shall be effective until and unless a
                  Substitute  Auction Agent has been  appointed and has accepted
                  such  appointment.  If required by the  Issuer,  a  Substitute
                  Auction  Agent   Agreement   shall  be  entered  into  with  a
                  Substitute Auction Agent.  Notwithstanding the foregoing,  the
                  Auction Agent may  terminate  the Auction Agent  Agreement if,
                  within 25 days after  notifying  the Indenture  Trustee,  each
                  Broker-Dealer  and  the  Issuer  in  writing  that  it has not
                  received payment of any Auction Agent Fee due it in accordance
                  with the terms of the  Auction  Agent  Agreement,  the Auction
                  Agent does not receive such payment.

                           (ii) If the Auction  Agent shall resign or be removed
                  or be dissolved,  or if the property or affairs of the Auction
                  Agent shall be taken under the control of any state or federal
                  court  or   administrative   body  because  of  bankruptcy  or
                  insolvency,  or for any other reason, the Indenture Trustee at
                  the  direction of an  Authorized  Officer,  shall use its best
                  efforts to appoint a Substitute Auction Agent.

                           (iii)  The  Auction  Agent is acting as agent for the
                  Issuer in  connection  with  Auctions.  In the  absence of bad
                  faith, negligent failure to act or negligence on its part, the
                  Auction  Agent  shall  not be  liable  for any  action  taken,
                  suffered or omitted or any error of judgment made by it in the
                  performance  of its duties under the Auction  Agent  Agreement
                  and shall not be liable for any error of judgment made in good
                  faith  unless the Auction  Agent shall have been  negligent in
                  ascertaining (or failing to ascertain) the pertinent facts.

                  (f) Broker-Dealers.

                           (i) The Auction  Agent will enter into  Broker-Dealer
                  Agreements  with Credit  Suisse  First Boston LLC and Deutsche
                  Bank  Securities  Inc.  as  the  initial  Broker-Dealers.   An
                  Authorized Officer may, from time to time, approve one or more
                  additional   persons   to   serve  as   Broker-Dealers   under
                  Broker-Dealer

                                      B-26
<PAGE>
                                                                    Exhibit 4.11

                  Agreements  and  shall  be  responsible   for  providing  such
                  Broker-Dealer  Agreements  to the  Indenture  Trustee  and the
                  Auction Agent.

                           (ii) Any Broker-Dealer may be removed at any time, at
                  the request of an Authorized Officer,  but there shall, at all
                  times, be at least one  Broker-Dealer  appointed and acting as
                  such.

                  (g)   Changes  in  Auction   Period  or  Periods  and  Certain
         Percentages.

                           (i)  While  any  of  the   Auction   Rate  Notes  are
                  Outstanding,  the Issuer  may,  from time to time,  change the
                  length of one or more  Auction  Periods  (an  "Auction  Period
                  Adjustment")  for a Class of the Auction Rate Notes,  in order
                  to conform with then current  market  practice with respect to
                  similar  securities or to  accommodate  economic and financial
                  factors  that may affect or be  relevant  to the length of the
                  Auction Period and the interest rate borne by the Auction Rate
                  Notes.  The  Issuer  shall  not  initiate  an  Auction  Period
                  Adjustment  unless it shall have received the written  consent
                  of the  applicable  Broker-Dealer,  which consent shall not be
                  unreasonably  withheld,  not later than nine days prior to the
                  Auction  Date  for  such  Auction  Period.  The  Issuer  shall
                  initiate  the  Auction  Period  Adjustment  by giving  written
                  notice by Issuer Order to the Indenture  Trustee,  the Auction
                  Agent,  the applicable  Broker-Dealer,  each Rating Agency and
                  the  Securities  Depository in  substantially  the form of, or
                  containing substantially the information contained in, Exhibit
                  E attached  hereto at least 10 days prior to the Auction  Date
                  for such Auction Period.

                           (ii) Any such  adjusted  Auction  Period shall not be
                  less than 7 days.

                           (iii) An Auction Period  Adjustment shall take effect
                  only if (A)  the  Indenture  Trustee  and  the  Auction  Agent
                  receive,  by 11:00 a.m.,  eastern  time,  on the  Business Day
                  before the Auction Date for the first such Auction Period,  an
                  Issuer  Certificate in substantially  the form attached as, or
                  containing  substantially  the same information  contained in,
                  Exhibit F attached  hereto,  authorizing  the  Auction  Period
                  Adjustment  specified in such certificate along with a copy of
                  the written consent of the applicable  Broker-Dealer  and, (B)
                  Sufficient  Bids exist as of the Auction on the  Auction  Date
                  for such first Auction Period. If the condition referred to in
                  (A)  above is not  met,  the  applicable  Auction  Rate  Notes
                  Interest Rate for the next Auction  Period shall be determined
                  pursuant  to the  above  provisions  of this  Section  and the
                  Auction Period shall be the Auction Period determined  without
                  reference to the proposed change. If the condition referred to
                  in (A) is met but the  condition  referred in (B) above is not
                  met, the  applicable  Auction Rate Notes Interest Rate for the
                  next Auction  Period shall be the Maximum Rate and the Auction
                  Period  shall  be  the  Auction  Period   determined   without
                  reference to the proposed change.

                           In connection with any Auction Period Adjustment, the
                  Auction  Agent  shall  provide  such  further  notice  to such
                  parties as is specified  in Section 2.06 of the Auction  Agent
                  Agreement.

                                      B-27
<PAGE>
                                                                    Exhibit 4.11

                  (h) Changes in the Auction Date. The applicable Broker-Dealer,
         with the  written  consent of an  Authorized  Officer,  may  specify an
         earlier  Auction  Date (but in no event  more than five  Business  Days
         earlier)  than the Auction Date that would  otherwise be  determined in
         accordance  with the  definition  of "Auction  Date" in Section 1.01 of
         this Appendix B with respect to one or more specified  Auction  Periods
         in order to conform with then current  market  practice with respect to
         similar  securities or to  accommodate  economic and financial  factors
         that may affect or be relevant to the day of the week  constituting  an
         Auction Date and the interest rate borne on the Auction Rate Notes. The
         applicable Broker-Dealer shall deliver a written request for consent to
         such change in the length of the Auction Date to the Issuer at least 14
         days prior to the  effective  date of such change.  If the Issuer shall
         have  delivered such written  consent to the applicable  Broker-Dealer,
         such Broker-Dealer shall provide notice of its determination to specify
         an earlier  Auction Date for one or more Auction  Periods by means of a
         written notice delivered at least 10 days prior to the proposed changed
         Auction Date to the Indenture  Trustee,  the Auction Agent, the Issuer,
         each Rating Agency and the Securities Depository.  Such notice shall be
         substantially in the form of, or contain  substantially the information
         contained in, Exhibit G attached hereto.

                  In  connection  with any change  described in this  subsection
         (h),  the  Auction  Agent shall  provide  such  further  notice to such
         parties as is specified in Section 2.06 of the Auction Agent Agreement.

         Section 2.03. Additional Provisions Regarding the Interest Rates on the
Auction Rate Notes. The  determination of an Auction Rate Notes Interest Rate by
the  Auction  Agent  or any  other  Person  pursuant  to the  provisions  of the
applicable  Section of this  Article II shall be  conclusive  and binding on the
Registered  Owners of the Auction  Rate Notes to which such  Auction  Rate Notes
Interest Rate applies, and the Issuer and the Indenture Trustee may rely thereon
for all purposes.

         In no event shall the cumulative  amount of interest paid or payable on
the Auction Rate Notes (including  interest  calculated as provided herein, plus
any other  amounts  that  constitute  interest on the  Auction  Rate Notes under
applicable law, which are contracted for, charged,  reserved,  taken or received
pursuant to the Auction  Rate Notes or related  documents)  calculated  from the
Date of Closing of the Auction Rate Notes through any  subsequent day during the
term of the  Auction  Rate  Notes or  otherwise  prior to payment in full of the
Auction  Rate Notes  exceed the  amount  permitted  by  applicable  law.  If the
applicable  law is ever  judicially  interpreted  so as to render  usurious  any
amount called for under the Auction Rate Notes or related documents or otherwise
contracted  for,  charged,  reserved,  taken or received in connection  with the
Auction Rate Notes,  or if the redemption or acceleration of the maturity of the
Auction Rate Notes results in payment to or receipt by the  Registered  Owner or
any former  Registered Owner of the Auction Rate Notes of any interest in excess
of that permitted by applicable law, then,  notwithstanding any provision of the
Auction Rate Notes or related  documents  to the  contrary,  all excess  amounts
theretofore  paid or received  with  respect to the Auction  Rate Notes shall be
credited on the principal  balance of the Auction Rate Notes (or, if the Auction
Rate Notes  have been paid or would  thereby  be paid in full,  refunded  by the
recipient  thereof),  and the  provisions  of the Auction Rate Notes and related
documents shall automatically and immediately be deemed reformed and the amounts
thereafter  collectible hereunder and thereunder reduced,

                                      B-28
<PAGE>
                                                                    Exhibit 4.11

without the necessity of the execution of any new document, so as to comply with
the  applicable  law,  but so as to permit the  recovery of the  fullest  amount
otherwise  called  for  under the  Auction  Rate  Notes  and  under the  related
documents.

                                      B-29
<PAGE>

                                                                    Exhibit 4.11

                                   APPENDIX C

                            TRANSFER RESTRICTIONS FOR
                             THE SERIES 2004-1 NOTES

         1. Except as otherwise specified herein or as the context may otherwise
require, capitalized terms used but not otherwise defined in this Appendix C are
defined in the  Indenture,  which also contains  rules as to usage that shall be
applicable herein.

         2. The  Indenture  Trustee,  as registrar  for the Series 2004-1 Notes,
shall provide for the  registration  of the Series 2004-1 Notes and of transfers
and  exchanges  of the Series  2004-1  Notes  pursuant  to  Section  2.03 of the
Indenture.

         3. The Series 2004-1 Notes will be initially  represented by registered
notes of such  Class in global  form and shall be issued in the manner set forth
in  Section  2.01  of the  Indenture.  The  global  notes  may be  reissued  and
represented by Series 2004-1 Notes of such Class in definitive  form pursuant to
Section 2.01(d) of the Indenture.

         4. Any transfer  made in violation of Section 2.03 of the  Indenture or
this  Appendix C of Reset Rate Notes that  represent a beneficial  interest in a
Rule  144A  Certificate  such  that  the  beneficial  interest  is then  held in
Regulation  S  Certificate,  or vice  versa,  shall  be null  and void and of no
effect.

         5.  Each  purchaser  of  the  Series  2004-1  Notes  that  represent  a
beneficial  interest in a Global  Certificate will be deemed to have represented
and agreed,  and each purchaser of a Definitive  Certificate will be required to
certify in writing, that:

                  (i) in  connection  with the  purchase  of the  Series  2004-1
         Notes,  (1) none of the  Issuer,  the  Indenture  Trustee,  the Initial
         Purchasers  or  any of  their  respective  affiliates  is  acting  as a
         fiduciary or financial or investment advisor for such beneficial owner;
         (2) such  beneficial  owner is not relying (for  purposes of making any
         investment   decision  or  otherwise)  upon  any  advice,   counsel  or
         representations  (whether written or oral) of the Issuer, the Indenture
         Trustee or the Initial Purchasers or any of their respective affiliates
         other than any  statements in the final  offering  memorandum  for such
         notes,  and such beneficial  owner has read and understands  such final
         offering circular; (3) such beneficial owner has consulted with its own
         legal, regulatory, tax, business, investment,  financial and accounting
         advisors  to the  extent it has deemed  necessary  and has made its own
         investment  decisions (including decisions regarding the suitability of
         any transaction  pursuant to the indenture) based upon its own judgment
         and upon any advice from such  advisors as it has deemed  necessary and
         not upon any view expressed by the Issuer,  the Indenture  Trustee,  or
         the  Initial  Purchasers  or any of their  respective  affiliates;  and
         (4)(A)  the  purchaser  is  a  Qualified  Institutional  Buyer  and  is
         acquiring  such  Series  2004-1  Notes  for  its  own  account  or as a
         fiduciary  or agent for others  (which  others  also must be  Qualified
         Institutional Buyers), for investment purposes and not for distribution
         in violation of the Securities Act, and it is able to bear the economic
         risk of an investment in the Series 2004-1 Notes and has such knowledge
         and  experience in

<PAGE>
                                                                    Exhibit 4.11

         financial  and  business  matters as to be capable  of  evaluating  the
         merits  and risks of  purchasing  the Series  2004-1  Notes or (B) with
         respect to the Reset Rate Notes,  the  purchaser  is a Non-U.S.  Person
         outside the United  States of America,  acquiring  the Reset Rate Notes
         pursuant to an exemption from  registration in accordance with Rule 903
         or Rule 904 of Regulation S;

                  (ii) the  purchaser  understands  that the Series 2004-1 Notes
         are  being  offered  only  in  a  transaction  that  does  not  require
         registration under the Securities Act and, if such purchaser decides to
         resell or otherwise  transfer such Series 2004-1 Notes,  then it agrees
         that it will resell or transfer  such Series  2004-1  Notes only (A) so
         long as such Series  2004-1 Notes are  eligible for resale  pursuant to
         Rule  144A,  to a  person  whom the  seller  reasonably  believes  is a
         Qualified Institutional Buyer acquiring the Series 2004-1 Notes for its
         own account or as a fiduciary  or agent for others  (which  others must
         also be  Qualified  Institutional  Buyers) to whom notice is given that
         the resale or other  transfer  is being made in  reliance on Rule 144A,
         (B)  pursuant  to  an  effective   registration   statement  under  the
         Securities  Act,  or (C) with  respect  to the Reset Rate  Notes,  to a
         purchaser  who is a  Non-U.S.  Person  outside  the  United  States  of
         America,  acquiring the Reset Rate Notes  pursuant to an exemption from
         registration  under the Securities  Act in accordance  with Rule 903 or
         Rule  904 of  Regulation  S,  in  each  case  in  accordance  with  any
         applicable  United  States state  securities  or "blue sky" laws or any
         securities laws of any other jurisdiction;

                  (iii)  unless  the  relevant  legend  set out  below  has been
         removed from the Series 2004-1 Notes such  purchaser  shall notify each
         transferee of the Series 2004-1 Notes that (A) such Series 2004-1 Notes
         have not been  registered  under the Securities  Act, (B) the holder of
         such Series 2004-1 Notes is subject to the  restrictions  on the resale
         or other transfer  thereof  described in paragraph (ii) above, (C) such
         transferee  shall be deemed to have represented (1) as to its status as
         a  Qualified  Institutional  Buyer or,  with  respect to the Reset Rate
         Notes,  a  purchaser  acquiring  the Reset  Rate  Notes in an  offshore
         transaction  pursuant to the  requirements of Regulation S, as the case
         may be, (2) if such transferee is a Qualified Institutional Buyer, that
         such  transferee  is  acquiring  the  Series  2004-1  Notes for its own
         account or as a fiduciary or agent for others  (which  others also must
         be  Qualified   Institutional  Buyers)  (or  that  such  transferee  is
         acquiring   such  Series   2004-1   Notes   pursuant  to  an  effective
         registration   statement  under  the  Securities   Act),  (3)  if  such
         transferee is a Non-U.S.  Person  outside the United States of America,
         that such  transferee is acquiring the Reset Rate Notes  pursuant to an
         exemption from registration under the Securities Act in accordance with
         the requirements of Rule 903 or Rule 904 of Regulation S, (4) that such
         transferee is not an underwriter within the meaning of Section 2(11) of
         the  Securities  Act, and (5) that such  transferee  shall be deemed to
         have agreed to notify its subsequent transferees as to the foregoing;

                  (iv) the  acquisition or purchase by an employee  benefit plan
         or other retirement  arrangements ("Plan") of a Series 2004-1 Note will
         not  constitute  or  otherwise  result  in:  (A) in the  case of a Plan
         subject to Section 406 of Employee  Retirement  Income  Security Act of
         1974,  as amended  ("ERISA")  or Section 4975 of the Code, a non-exempt
         prohibited  transaction in violation of Section 406 of ERISA or Section
         4975 of the Code which is not  covered  by a class or other  applicable
         exemption  and (B) in the

                                      C-2
<PAGE>
                                                                    Exhibit 4.11

         case of a Plan subject to a substantially similar federal, state, local
         or  foreign  law  ("Similar  Law"),  a  non-exempt  violation  of  such
         substantially Similar Law; and

                  (v) it is aware  that,  except as  otherwise  provided  in the
         indenture,  any Series  2004-1  Notes  being sold to it in  reliance on
         Regulation  S  will  be  represented  by  one  or  more   Regulation  S
         Certificates  and that  beneficial  interests  therein may be held only
         through DTC for the respective accounts of Euroclear or Clearstream.

         6. By acceptance of a Series 2004-1 Note, whether upon original
issuance or subsequent transfer, each Registered Owner of such Series 2004-1
Note (or a beneficial interest therein), acknowledges or is deemed to
acknowledge, as the case may be, the restrictions on the transfer of such Series
2004-1 Notes and that the following securities legend (the "Securities Legend")
shall be affixed to each Rule 144A Certificate, each Regulation S Certificate
and each Definitive Certificate unless determined otherwise in accordance with
applicable law:

                  THIS  [RESET RATE NOTE]  [AUCTION  RATE NOTE] HAS NOT BEEN AND
         WILL NOT BE REGISTERED UNDER THE UNITED STATES  SECURITIES ACT OF 1933,
         AS AMENDED (THE  "SECURITIES  ACT"), ANY UNITED STATES STATE SECURITIES
         OR "BLUE SKY" LAWS OR ANY  SECURITIES  LAWS OF ANY OTHER  JURISDICTION,
         AND, AS A MATTER OF U.S.  LAW,  MAY NOT BE OFFERED OR SOLD IN VIOLATION
         OF THE SECURITIES ACT OR SUCH OTHER LAWS.  THIS NOTE MAY BE TRANSFERRED
         ONLY IN  MINIMUM  DENOMINATIONS  OF NOT  LESS  THAN  [$100,000  AND ANY
         INTEGRAL  MULTIPLE  OF  $1,000  IN  EXCESS  THEREOF]  [$50,000  AND ANY
         INTEGRAL  MULTIPLE  THEREOF].  THE  HOLDER  HEREOF,  BY  PURCHASING  OR
         ACCEPTING  THIS [RESET RATE NOTE]  [AUCTION RATE NOTE] IS HEREBY DEEMED
         TO HAVE AGREED FOR THE BENEFIT OF THE ISSUER AND THE INITIAL PURCHASERS
         THAT IT WILL  RESELL,  PLEDGE OR  OTHERWISE  TRANSFER  THIS NOTE,  AS A
         MATTER OF U.S.  LAW,  ONLY (A)(1) SO LONG AS THIS NOTE IS ELIGIBLE  FOR
         RESALE,  PURSUANT TO RULE 144A  PROMULGATED  UNDER THE  SECURITIES  ACT
         ("RULE  144A"),  TO A PERSON WHOM THE SELLER  REASONABLY  BELIEVES IS A
         QUALIFIED  INSTITUTIONAL  BUYER,  AS DEFINED IN RULE 144A (A "QUALIFIED
         INSTITUTIONAL  BUYER"),  THAT  IS  ACQUIRING  THIS  [RESET  RATE  NOTE]
         [AUCTION  RATE NOTE] FOR ITS OWN ACCOUNT OR AS A FIDUCIARY OR AGENT FOR
         OTHERS  (WHICH OTHERS MUST ALSO BE QUALIFIED  INSTITUTIONAL  BUYERS) TO
         WHOM NOTICE IS GIVEN THAT THE RESALE OR OTHER TRANSFER IS BEING MADE IN
         RELIANCE  ON RULE 144A,  [(2) TO A PERSON WHO IS NOT A U.S.  PERSON (AS
         DEFINED IN REGULATION S PROMULGATED  UNDER THE SECURITIES ACT ) OUTSIDE
         THE  UNITED  STATES  OF  AMERICA  ACQUIRING  THIS  RESET  RATE  NOTE IN
         ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S PROMULGATED  UNDER
         THE  SECURITIES  ACT]  OR (3)  PURSUANT  TO AN  EFFECTIVE  REGISTRATION
         STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY
         UNITED  STATES STATE  SECURITIES  OR "BLUE SKY" LAWS OR ANY  SECURITIES
         LAWS OF ANY OTHER JURISDICTION.

                                      C-3
<PAGE>
                                                                    Exhibit 4.11

                  UPON  ACQUISITION  OR  TRANSFER  OF [A RESET  RATE  NOTE]  [AN
         AUCTION RATE NOTE] OR A BENEFICIAL  INTEREST IN [A RESET RATE NOTE] [AN
         AUCTION RATE NOTE],  AS THE CASE MAY BE, BY, FOR OR WITH THE ASSETS OF,
         AN EMPLOYEE  BENEFIT PLAN OR OTHER  RETIREMENT  ARRANGEMENT (A "PLAN"),
         SUCH  [RESET  RATE NOTE]  [AUCTION  RATE NOTE] OWNER SHALL BE DEEMED TO
         HAVE  REPRESENTED THAT SUCH ACQUISITION OR PURCHASE WILL NOT CONSTITUTE
         OR  OTHERWISE  RESULT IN: (I) IN THE CASE OF A PLAN  SUBJECT TO SECTION
         406 OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
         ("ERISA"),  OR SECTION  4975 OF THE INTERNAL  REVENUE CODE OF 1986,  AS
         AMENDED (THE "CODE"), A NON-EXEMPT PROHIBITED  TRANSACTION IN VIOLATION
         OF  SECTION  406 OF ERISA  OR  SECTION  4975 OF THE  CODE  WHICH IS NOT
         COVERED BY A CLASS OR OTHER  APPLICABLE  EXEMPTION AND (II) IN THE CASE
         OF A PLAN SUBJECT TO A SUBSTANTIALLY  SIMILAR FEDERAL,  STATE, LOCAL OR
         FOREIGN  LAW   ("SIMILAR   LAW"),   A  NON-EXEMPT   VIOLATION  OF  SUCH
         SUBSTANTIALLY  SIMILAR  LAW.  ANY  TRANSFER  FOUND TO HAVE BEEN MADE IN
         VIOLATION OF SUCH DEEMED  REPRESENTATION  SHALL BE NULL AND VOID AND OF
         NO EFFECT.

                  THIS  [RESET  RATE  NOTE]  [AUCTION  RATE  NOTE]  AND  RELATED
         DOCUMENTATION  MAY BE  AMENDED  OR  SUPPLEMENTED  FROM  TIME TO TIME TO
         MODIFY THE RESTRICTIONS ON AND PROCEDURES  UNDERTAKEN OR REPRESENTED BY
         THE HOLDER,  FOR RESALES AND OTHER  TRANSFERS OF THIS [RESET RATE NOTE]
         [AUCTION  RATE  NOTE],  TO  REFLECT  ANY CHANGE IN  APPLICABLE  LAWS OR
         REGULATIONS (OR THE INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO
         RESALES OR OTHER  TRANSFERS OF  RESTRICTED  SECURITIES  GENERALLY.  THE
         HOLDER OF THIS NOTE AND ANY  BENEFICIAL  OWNER OF ANY INTEREST  THEREIN
         SHALL BE DEEMED,  BY ITS ACCEPTANCE OR PURCHASE HEREOF,  TO HAVE AGREED
         TO ANY SUCH AMENDMENT OR SUPPLEMENT  (EACH OF WHICH SHALL BE CONCLUSIVE
         AND BINDING ON THE HOLDER HEREOF AND ALL FUTURE  HOLDERS OF THIS [RESET
         RATE NOTE]  [AUCTION RATE NOTE] AND ANY [RESET RATE NOTE] [AUCTION RATE
         NOTE] ISSUED IN EXCHANGE OR  SUBSTITUTION  HEREFOR,  WHETHER OR NOT ANY
         NOTATION  THEREOF IS MADE  HEREON) AND AGREES TO  TRANSFER  THIS [RESET
         RATE  NOTE]  [AUCTION  RATE  NOTE]  ONLY IN  ACCORDANCE  WITH  ANY SUCH
         AMENDMENT OR SUPPLEMENT IN ACCORDANCE  WITH APPLICABLE LAW IN EFFECT AT
         THE DATE OF SUCH TRANSFER.

         Upon the transfer,  exchange or replacement of a Rule 144A  Certificate
or a  Regulation  S  Certificate  bearing  the legend set forth  above,  or upon
specific request for removal of the legends, the Issuer or the Indenture Trustee
will  deliver  only   replacement   Rule  144A   Certificates  or  Regulation  S
Certificates,  as the case may be, that bear such  applicable  legends,  or will
refuse to remove such  applicable  legends,  unless  there is  delivered  to the
Issuer and the Indenture Trustee such satisfactory evidence (which may include a
legal  opinion) as may  reasonably  be  required by the Trust and the  Indenture
Trustee that neither the applicable legends nor the

                                      C-4
<PAGE>
                                                                    Exhibit 4.11

restrictions  on transfer set forth  therein are  required to ensure  compliance
with the provisions of the Securities Act.

         Whenever  a  Global  Certificate  is to  be  exchanged  for  Definitive
Certificates,  such Definitive  Certificates will be issued within five business
days of delivery to the Indenture  Trustee of the  information  and any required
certification  described in the preceding paragraph against the surrender of the
relevant Global  Certificate at the specified  office of the Indenture  Trustee.
Such exchange shall be effected in accordance  with the  regulations  concerning
the transfer and  registration  from time to time  relating to the Series 2004-1
Notes and shall be effected  without  charge,  but against such indemnity as the
Indenture  Trustee may require in respect of any tax or other duty of whatsoever
nature which may be levied or imposed in connection with such exchange.

         Each Registered  Owner of such Series 2004-1 Note, by its acceptance of
a Series 2004-1 Note or a beneficial interest therein, respectively, also agrees
that it will transfer such Series 2004-1 Note or beneficial interest therein, as
the case may be, only as provided in this Appendix C and in accordance  with the
Indenture.  In addition,  by  acceptance of any Series 2004-1 Note or beneficial
interest  therein,  as applicable,  each proposed  transferee  thereof is hereby
deemed to have agreed with the conditions set forth in the Securities Legend and
agreed,  by virtue of its  acceptance  of such Series  2004-1 Note or beneficial
interest  therein,  as the case may be,  to  indemnify  the  Administrator,  the
Servicer,  the Indenture  Trustee the Eligible Lender  Trustee,  the Remarketing
Agents (in the event such transfer is made pursuant to a successful  remarketing
on a Reset Date) and the Issuer against any and all liability that may result if
such transfer is not made in a manner consistent with the restrictions set forth
in the  Securities  Legend.  In addition to any applicable  restrictions  in the
Indenture,  with  respect to the transfer  and  registration  of transfer of any
Series 2004-1 Note  registered in the name of a Registered  Owner other than DTC
or its nominee,  to a transferee that takes delivery in the form of a Definitive
Certificate,  in a transaction other than pursuant to an effective  registration
statement  under the  Securities  Act, the Indenture  Trustee shall register the
transfer of such  Definitive  Certificate  if (i)(A) the  requested  transfer is
being made to a  transferee  who has  provided  the  Indenture  Trustee  and the
Administrator with a Rule 144A and Related Matters Certificate, substantially in
the form  attached  as Annex 1 to this  Appendix  C,  (B)  such  transferee  has
provided comparable evidence as to its Qualified  Institutional Buyer status, or
(C) such  transfer  is  being  made in  compliance  with  Regulation  S and such
transferee  has  provided the  Indenture  Trustee and the  Administrator  with a
Regulation S and Related Matters Certificate, substantially in the form attached
as Annex 2 to this Appendix C, and (ii) the  applicable  transferor has provided
the  Indenture  Trustee  and  the  Administrator   with  a  Transferor   Letter,
substantially in the form of Annex 3 to this Appendix C.

                                      C-5
<PAGE>
                                                                    Exhibit 4.11

                              ANNEX 1 TO APPENDIX C

                FORM OF RULE 144A AND RELATED MATTERS CERTIFICATE

                                     [Date]

Wells Fargo Bank Minnesota, National Association,
 as Indenture Trustee
Sixth and Marquette, N9303-110
Minneapolis, Minnesota  55479
Attention:  Corporate Trust Department

National Education Loan Network, Inc.,
 as Administrator
121 South 13th Street, Suite 201
Lincoln, Nebraska  68508

         Re:      Nelnet Education Loan Funding, Inc., Student Loan Asset-Backed
                  Notes [Class  2004A-1A Reset Rate Notes] [Class 2004A-1B Reset
                  Rate Notes] [Class  2004A-2  Reset Rate Notes] [Class  2004A-3
                  Reset Rate Notes]  [Class  2004B-1  Auction Rate Notes] [Class
                  2004B-2 Auction Rate Notes].

Ladies and Gentlemen:

         In connection with our purchase of the [Reset Rate Notes] [Auction Rate
Notes] of the above-referenced  series, the undersigned certifies to each of the
parties to whom this letter is  addressed  that it is a Qualified  Institutional
Buyer (as defined in Rule 144A under the Securities Act of 1933, as amended (the
"Act")) as follows:

         (A)      It owned and/or  invested on a  discretionary  basis  eligible
                  securities  (excluding  affiliate's  securities,  bank deposit
                  notes and CD's, loan  participations,  repurchase  agreements,
                  securities  owned but subject to a  repurchase  agreement  and
                  swaps), as described below:

         Date:  ______________,  20__ (must be on or after the close of its most
         recent fiscal year)

         Amount: $_________________; and

         (B) The dollar amount set forth above is:

         1. [ ] greater  than $100  million  and the  undersigned  is one of the
following entities:

                  [ ]      an insurance  company as defined in Section  2(13) of
                           the Securities Act; or

                                     C-A-1-1
<PAGE>
                                                                    Exhibit 4.11

                  [ ]      an investment company registered under the Investment
                           Company Act or any  business  development  company as
                           defined in Section 2(a)(48) of the Investment Company
                           Act of 1940; or

                  [ ]      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; or

                  [ ]      a plan (i) established and maintained by a state, its
                           political    subdivisions,    or   any    agency   or
                           instrumentality   of  a   state   or  its   political
                           subdivisions,  the laws of which  permit the purchase
                           of  securities  of this type,  for the benefit of its
                           employees   and   (ii)   the   governing   investment
                           guidelines of which permit the purchase of securities
                           of this type; or

                  [ ]      a business  development company as defined in Section
                           202(a)(22) of the Investment Advisers Act of 1940; or

                  [ ]      a corporation  (other than a U.S.  bank,  savings and
                           loan association or equivalent foreign  institution),
                           partnership, Massachusetts or similar business trust,
                           or an organization  described in Section 501(c)(3) of
                           the Internal Revenue Code; or

                  [ ]      a  U.S.  bank,   savings  and  loan   association  or
                           equivalent foreign institution,  which has an audited
                           net worth of at least $25 million as  demonstrated in
                           its latest annual financial statements; or

                  [ ]      an investment adviser registered under the Investment
                           Advisers Act; or

         2. [ ] greater than $10 million, and the undersigned is a broker-dealer
registered with the SEC; or

         3. [ ] less than $10 million,  and the  undersigned is a  broker-dealer
registered  with  the SEC  and  will  only  purchase  Rule  144A  securities  in
transactions in which it acts as a riskless principal (as defined in Rule 144A);
or

         4. [ ] less than $100  million,  and the  undersigned  is an investment
company  registered under the Investment  Company Act of 1940,  which,  together
with  one  or  more  registered  investment  companies  having  the  same  or an
affiliated   investment  adviser,   owns  at  least  $100  million  of  eligible
securities; or

         5. [ ] less than $100 million,  and the  undersigned is an entity,  all
the equity owners of which are Qualified Institutional Buyers.

         The  undersigned  further  certifies  that it is purchasing  the Series
2004-1 Notes for its own account or for the account of others that independently
qualify  as  "Qualified  Institutional  Buyers"  as  defined  in  Rule  144A  (a
"Qualified Institutional Buyer"). It is aware that the sale of

                                     C-A-1-2
<PAGE>
                                                                    Exhibit 4.11

the Series  2004-1 Notes is being made in reliance on its  continued  compliance
with Rule 144A. It is aware that the  transferor  may rely on the exemption from
the  provisions of Section 5 of the  Securities  Act provided by Rule 144A.  The
undersigned understands that the Series 2004-1 Notes may transferred only (A) so
long as such Reset Rate Notes are eligible for resale  pursuant to Rule 144A, to
a person whom the seller reasonably believes is a Qualified  Institutional Buyer
acquiring  the Reset Rate Notes for its own account or as a  fiduciary  or agent
for others  (which others must also be Qualified  Institutional  Buyers) to whom
notice is given that the  transfer is being made in  reliance on Rule 144A,  (B)
pursuant to an effective registration statement under the Securities Act, or (C)
with respect to Reset Rate Notes,  to a purchaser  who is a Non-U.S.  Person (as
defined in  Regulation  S) outside the United  States of America,  acquiring the
Reset Rate Notes pursuant to an exemption from registration under the Securities
Act in  accordance  with Rule 903 or Rule 904 of  Regulation  S, in each case in
accordance with any applicable United States state securities or "blue sky" laws
or any securities laws of any other jurisdiction.

         The undersigned agrees that if at some future time it wishes to dispose
of or exchange any of the Series 2004-1 Notes,  it will not transfer or exchange
any of the Series 2004-1 Notes unless:  (1) the sale is to an Eligible Purchaser
(as defined below), (2) all offers or solicitations in connection with the sale,
whether directly or through any agent acting on our behalf,  are limited only to
Eligible  Purchasers  and  are  not  made  by  means  of  any  form  of  general
solicitation or general  advertising  whatsoever,  and (3) such transferee shall
deliver a Rule 144A and Related Matters  Certificate to  substantially  the same
effect as this letter to the  addressees  hereof or a  Regulation  S and Related
Matters  Certificate  substantially in the same form as Annex 2 to Appendix C to
the  Indenture,  or such other  evidence as may be reasonably  acceptable to the
Administrator.

         The undersigned  hereby represents and warrants that the undersigned is
accepting   ownership  of  the  Series  2004-1  Notes  in  compliance  with  the
restrictions  set forth in Section 5 of  Appendix C to the  Indenture  of Trust,
dated as of January  1, 2004 (the  "Indenture"),  among  Nelnet  Education  Loan
Funding,  Inc., Wells Fargo Bank Minnesota,  National  Association,  as eligible
lender  trustee,  and Wells  Fargo  Bank  Minnesota,  National  Association,  as
indenture trustee,  and acknowledges that the Series 2004-1 Notes will be issued
with the legends set forth in Section 6 of Appendix C to the Indenture.

         "Eligible  Purchaser" means a corporation,  partnership or other entity
which we have  reasonable  grounds  to believe  and do  believe  (A)(i) can make
representations  with respect to itself to substantially  the same effect as the
representations set forth herein, and (ii) is a Qualified Institutional Buyer as
defined under Rule 144A of the  Securities Act or any entity in which all of the
equity owners come within such  paragraphs,  (B) can make  representations  with
respect to itself to substantially  the same effect as the  representations  set
forth in the  Regulation S and Related  Matters  Certificate in the same form as
Annex 2 to Appendix C to the Indenture,  or (C)(i) can make representations with
respect to itself  substantially to the same effect as the  representations  set
forth herein (other than to its status as a Qualified  Institutional Buyer), and
(ii) is  acquiring  such Series  2004-1 Notes in reliance on an exemption to the
Securities  Act other than Rule 144A in accordance  with any  applicable  United
States state securities or "Blue Sky" laws.

                                     C-A-1-3
<PAGE>
                                                                    Exhibit 4.11

         If the Purchaser proposes that its Series 2004-1 Notes be registered in
the name of a nominee on its behalf, the Purchaser has identified such nominee
below, and has caused such nominee to complete the Nominee Acknowledgment at the
end of this letter.

         Name of Nominee (if any): _____________________

         IN WITNESS WHEREOF,  this document has been executed by the undersigned
who  is  duly  authorized  to do so  on  behalf  of  the  undersigned  Qualified
Institutional Buyer on the ____ day of ___________, 20__.

                                    Name of Institution

                                    ____________________________________________
                                    Signature

                                    ____________________________________________
                                    Name

                                    ____________________________________________
                                    Title

                             Nominee Acknowledgment

         The undersigned hereby acknowledges and agrees that as to the Series
2004-1 Notes being registered in its name, the sole beneficial owner thereof is
and shall be the Purchaser identified above, for whom the undersigned is acting
as nominee.

                                     By:
                                          --------------------------------------
                                                        Duly Authorized

                                    C-A-1-4

<PAGE>
                                                                    Exhibit 4.11

                              ANNEX 2 TO APPENDIX C

              FORM OF REGULATION S AND RELATED MATTERS CERTIFICATE

                                     [Date]

Wells Fargo Bank Minnesota, National Association,
 as Indenture Trustee
Sixth and Marquette, N9303-110
Minneapolis, Minnesota  55479
Attention:  Corporate Trust Department

National Education Loan Network, Inc.,
 as Administrator
121 South 13th Street, Suite 201
Lincoln, Nebraska  68508

         Re:      Nelnet Education Loan Funding, Inc., Student Loan Asset-Backed
                  Notes [Class  2004A-1A Reset Rate Notes] [Class 2004A-1B Reset
                  Rate Notes] [Class  2004A-2  Reset Rate Notes] [Class  2004A-3
                  Reset Rate Notes]

Ladies and Gentlemen:

         In  connection  with  our  purchase  of the  Reset  Rate  Notes  of the
above-referenced  series,  the  undersigned  certifies to each of the parties to
whom this  letter is  addressed  that it is a  Non-U.S.  Person  (as  defined in
Regulation  S) outside the United  States of America,  acquiring  the Reset Rate
Notes pursuant to an exemption from  registration in accordance with Rule 903 or
Rule 904 of Regulation S.

         The undersigned  further certifies that it is purchasing the Reset Rate
Notes  for its own  account  or for the  account  of others  that  independently
qualify as  Non-U.S.  Persons (as  defined in  Regulation  S) outside the United
States of  America.  It is aware  that the sale of the Reset Rate Notes is being
made in  reliance  on its  continued  compliance  with  Rule  903 or Rule 904 of
Regulation S. The undersigned  understands  that the Reset Rate Notes may resold
or transferred only (A) so long as such Reset Rate Notes are eligible for resale
pursuant  to Rule 144A,  to a person  whom the seller  reasonably  believes is a
Qualified Institutional Buyer acquiring the Reset Rate Notes for its own account
or as a  fiduciary  or agent for others  (which  others  must also be  Qualified
Institutional  Buyers) to whom notice is given that the resale or other transfer
is  being  made  in  reliance  on  Rule  144A,  (B)  pursuant  to  an  effective
registration  statement under the Securities Act, or (C) to a purchaser who is a
Non-U.S.  Person (as  defined in  Regulation  S)  outside  the United  States of
America,   acquiring  the  Reset  Rate  Notes  pursuant  to  an  exemption  from
registration under the Securities Act in accordance with Rule 903 or Rule 904 of
Regulation S, in each case in accordance with any applicable United States state
securities or "blue sky" laws or any securities laws of any other jurisdiction.

         The undersigned agrees that if at some future time it wishes to dispose
of or exchange any of the Reset Rate Notes, it will not transfer or exchange any
of the Reset Rate Notes  unless:

                                     C-A-2-1
<PAGE>
                                                                    Exhibit 4.11

(1) the sale is to an Eligible  Purchaser (as defined below),  (2) all offers or
solicitations in connection with the sale, whether directly or through any agent
acting on our behalf,  are limited only to Eligible  Purchasers and are not made
by means of any form of general solicitation or general advertising  whatsoever,
and  (3)  such  transferee  shall  deliver  a  Rule  144A  and  Related  Matters
Certificate  substantially  in the  same  form as Annex 1 to  Appendix  C to the
Indenture,  or a Regulation S and Related Matters  Certificate to  substantially
the same effect as this letter to the  addressees  hereof or such other evidence
as may be reasonably acceptable to the Administrator and the Indenture Trustee.

         The undersigned  hereby represents and warrants that the undersigned is
accepting  ownership of the Reset Rate Notes in compliance with the restrictions
set forth in Section 5 of  Appendix  C to the  Indenture  of Trust,  dated as of
January 1, 2004 (the  "Indenture"),  among Nelnet Education Loan Funding,  Inc.,
Wells Fargo Bank Minnesota,  National  Association,  as eligible lender trustee,
and Wells Fargo Bank Minnesota,  National Association, as indenture trustee, and
acknowledges that the Reset Rate Notes will be issued with the legends set forth
in Section 6 to Appendix C to the Indenture.

         "Eligible  Purchaser" means a corporation,  partnership or other entity
which we have  reasonable  grounds  to believe  and do  believe  (A)(i) can make
representations  with respect to itself to substantially  the same effect as the
representations set forth herein, and (ii) is a Qualified Institutional Buyer as
defined under Rule 144A of the  Securities Act or any entity in which all of the
equity owners come within such paragraphs,  (B)(i) can make representations with
respect to itself to substantially  the same effect as the  representations  set
forth in the  Regulation S and Related  Matters  Certificate in the same form as
Annex 2 to Appendix C to the  Indenture,  and (ii) is acquiring  such Reset Rate
Notes pursuant to an exemption from  registration in accordance with Rule 903 or
Rule 904 of  Regulation  S, or (C)(i) can make  representations  with respect to
itself  substantially to the same effect as the representations set forth herein
(other  than to its  status as a  Qualified  Institutional  Buyer),  and (ii) is
acquiring  such Reset Rate Notes in reliance on an exemption  to the  Securities
Act other than Rule 144A in accordance  with any applicable  United States state
securities or "Blue Sky" laws.

         If the  Purchaser  proposes  that its Reset Rate Notes be registered in
the name of a nominee on its behalf,  the Purchaser has identified  such nominee
below, and has caused such nominee to complete the Nominee Acknowledgment at the
end of this letter.

         Name of Nominee (if any): _____________________

         IN WITNESS WHEREOF,  this document has been executed by the undersigned
who  is  duly  authorized  to do so  on  behalf  of  the  undersigned  Qualified
Institutional Buyer on the ____ day of ___________, 20__.

                                    Name of Institution

                                    ____________________________________________
                                    Signature

                                    ____________________________________________
                                    Name

                                    ____________________________________________
                                    Title

                                    C-A-1-2

<PAGE>
                                                                    Exhibit 4.11

         Nominee Acknowledgment

                             Nominee Acknowledgment

         The undersigned hereby acknowledges and agrees that as to the Reset
Rate Notes being registered in its name, the sole beneficial owner thereof is
and shall be the Purchaser identified above, for whom the undersigned is acting
as nominee.

                                By:
                                     -------------------------------------------
                                                   Duly Authorized

                                    C-A-1-3
<PAGE>

                                                                    Exhibit 4.11

                              ANNEX 3 TO APPENDIX C

                            FORM OF TRANSFEROR LETTER

                                     [Date]

Wells Fargo Bank Minnesota, National Association,
 as Indenture Trustee
Sixth and Marquette, N9303-110
Minneapolis, Minnesota  55479
Attention:  Corporate Trust Department

National Education Loan Network, Inc.,
 as Administrator
121 South 13th Street, Suite 201
Lincoln, Nebraska  68508

         Re:      Nelnet Education Loan Funding, Inc., Student Loan Asset-Backed
                  Notes [Class  2004A-1A Reset Rate Notes] [Class 2004A-1B Reset
                  Rate Notes] [Class  2004A-2  Reset Rate Notes] [Class  2004A-3
                  Reset Rate Notes]  [Class  2004B-1  Auction Rate Notes] [Class
                  2004B-2 Auction Rate Notes].

Ladies and Gentlemen:

         In connection  with our  disposition  of the Series 2004-1 Notes of the
above-referenced  class owned by us, we certify that (a) we understand  that the
Series 2004-1 Notes have not been  registered  under the Securities Act of 1933,
as amended (the "Securities Act"), and are being disposed by us in a transaction
that is exempt from the registration requirements of the Securities Act, and (b)
we have not offered or sold any Series  2004-1 Notes to, or solicited  offers to
buy any Series  2004-1  Notes  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 would result in, a violation of Section 5 of
the Securities Act.

                                   Very truly yours,

                                   _____________________________________________
                                   Print Name of Transferor

                                   By:
                                        ----------------------------------------
                                            Authorized Officer

                                    C-A-3-1
<PAGE>
                                                                    Exhibit 4.11

                                    EXHIBIT A

                            FORM OF RESET RATE NOTES

                  THIS RESET  RATE NOTE HAS NOT BEEN AND WILL NOT BE  REGISTERED
         UNDER  THE  UNITED  STATES  SECURITIES  ACT OF 1933,  AS  AMENDED  (THE
         "SECURITIES  ACT"),  ANY UNITED  STATES STATE  SECURITIES OR "BLUE SKY"
         LAWS OR ANY SECURITIES LAWS OF ANY OTHER JURISDICTION, AND, AS A MATTER
         OF U.S. LAW, MAY NOT BE OFFERED OR SOLD IN VIOLATION OF THE  SECURITIES
         ACT OR SUCH OTHER LAWS.  THIS NOTE MAY BE  TRANSFERRED  ONLY IN MINIMUM
         DENOMINATIONS  OF NOT LESS THAN  $100,000 AND ANY INTEGRAL  MULTIPLE OF
         $1,000 IN EXCESS THEREOF. THE HOLDER HEREOF, BY PURCHASING OR ACCEPTING
         THIS RESET RATE NOTE IS HEREBY DEEMED TO HAVE AGREED FOR THE BENEFIT OF
         THE ISSUER AND THE INITIAL  PURCHASERS  THAT IT WILL RESELL,  PLEDGE OR
         OTHERWISE  TRANSFER  THIS NOTE, AS A MATTER OF U.S. LAW, ONLY (A)(1) SO
         LONG AS  THIS  NOTE IS  ELIGIBLE  FOR  RESALE,  PURSUANT  TO RULE  144A
         PROMULGATED  UNDER THE SECURITIES  ACT ("RULE 144A"),  TO A PERSON WHOM
         THE SELLER REASONABLY BELIEVES IS A QUALIFIED  INSTITUTIONAL  BUYER, AS
         DEFINED  IN RULE  144A (A  "QUALIFIED  INSTITUTIONAL  BUYER"),  THAT IS
         ACQUIRING THIS RESET RATE NOTE FOR ITS OWN ACCOUNT OR AS A FIDUCIARY OR
         AGENT FOR OTHERS  (WHICH  OTHERS MUST ALSO BE  QUALIFIED  INSTITUTIONAL
         BUYERS) TO WHOM  NOTICE IS GIVEN THAT THE RESALE OR OTHER  TRANSFER  IS
         BEING MADE IN RELIANCE ON RULE 144A,  (2) TO A PERSON WHO IS NOT A U.S.
         PERSON (AS DEFINED IN REGULATION S PROMULGATED UNDER THE SECURITIES ACT
         ) OUTSIDE THE UNITED STATES OF AMERICA  ACQUIRING  THIS RESET RATE NOTE
         IN  ACCORDANCE  WITH RULE 903 OR RULE 904 OF  REGULATION S  PROMULGATED
         UNDER THE SECURITIES  ACT OR (3) PURSUANT TO AN EFFECTIVE  REGISTRATION
         STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY
         UNITED  STATES STATE  SECURITIES  OR "BLUE SKY" LAWS OR ANY  SECURITIES
         LAWS OF ANY OTHER JURISDICTION.

                  UPON  ACQUISITION  OR  TRANSFER  OF A  RESET  RATE  NOTE  OR A
         BENEFICIAL  INTEREST IN A RESET RATE NOTE,  AS THE CASE MAY BE, BY, FOR
         OR WITH THE ASSETS OF, AN  EMPLOYEE  BENEFIT  PLAN OR OTHER  RETIREMENT
         ARRANGEMENT  (A "PLAN"),  SUCH RESET RATE NOTE OWNER SHALL BE DEEMED TO
         HAVE  REPRESENTED THAT SUCH ACQUISITION OR PURCHASE WILL NOT CONSTITUTE
         OR  OTHERWISE  RESULT IN: (I) IN THE CASE OF A PLAN  SUBJECT TO SECTION
         406 OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
         ("ERISA"),  OR SECTION  4975 OF THE INTERNAL  REVENUE CODE OF 1986,  AS
         AMENDED (THE "CODE"), A NON-EXEMPT PROHIBITED  TRANSACTION IN VIOLATION
         OF  SECTION  406 OF ERISA  OR  SECTION  4975 OF THE  CODE  WHICH IS NOT

                                      A-1
<PAGE>
                                                                    Exhibit 4.11

         COVERED BY A CLASS OR OTHER  APPLICABLE  EXEMPTION AND (II) IN THE CASE
         OF A PLAN SUBJECT TO A SUBSTANTIALLY  SIMILAR FEDERAL,  STATE, LOCAL OR
         FOREIGN  LAW   ("SIMILAR   LAW"),   A  NON-EXEMPT   VIOLATION  OF  SUCH
         SUBSTANTIALLY  SIMILAR  LAW.  ANY  TRANSFER  FOUND TO HAVE BEEN MADE IN
         VIOLATION OF SUCH DEEMED  REPRESENTATION  SHALL BE NULL AND VOID AND OF
         NO EFFECT.

                  THIS RESET RATE NOTE AND RELATED  DOCUMENTATION MAY BE AMENDED
         OR  SUPPLEMENTED  FROM TIME TO TIME TO MODIFY THE  RESTRICTIONS  ON AND
         PROCEDURES  UNDERTAKEN OR  REPRESENTED  BY THE HOLDER,  FOR RESALES AND
         OTHER  TRANSFERS  OF THIS  RESET RATE  NOTE,  TO REFLECT  ANY CHANGE IN
         APPLICABLE  LAWS OR REGULATIONS (OR THE  INTERPRETATION  THEREOF) OR IN
         PRACTICES   RELATING  TO  RESALES  OR  OTHER  TRANSFERS  OF  RESTRICTED
         SECURITIES GENERALLY.  THE HOLDER OF THIS NOTE AND ANY BENEFICIAL OWNER
         OF ANY INTEREST THEREIN SHALL BE DEEMED,  BY ITS ACCEPTANCE OR PURCHASE
         HEREOF,  TO HAVE AGREED TO ANY SUCH  AMENDMENT OR  SUPPLEMENT  (EACH OF
         WHICH  SHALL BE  CONCLUSIVE  AND  BINDING ON THE HOLDER  HEREOF AND ALL
         FUTURE  HOLDERS OF THIS RESET RATE NOTE AND ANY RESET RATE NOTE  ISSUED
         IN  EXCHANGE  OR  SUBSTITUTION  HEREFOR,  WHETHER  OR NOT ANY  NOTATION
         THEREOF IS MADE  HEREON)  AND AGREES TO  TRANSFER  THIS RESET RATE NOTE
         ONLY IN ACCORDANCE  WITH ANY SUCH AMENDMENT OR SUPPLEMENT IN ACCORDANCE
         WITH APPLICABLE LAW IN EFFECT AT THE DATE OF SUCH TRANSFER.

                       NELNET EDUCATION LOAN FUNDING, INC.
                         STUDENT LOAN ASSET-BACKED NOTE
                      SENIOR CLASS 2004A[-1A][A-1B][-2][-3]
                                RESET RATE NOTES

REGISTERED NO. R-__                                 REGISTERED $________________

<TABLE>
<CAPTION>
           Maturity Date                 Interest Rate           Original Issue Date               CUSIP No.

<S>                                         <C>                   <C>                              <C>
Quarterly Distribution Date in ____         Variable              January 30, 2004                 _________
</TABLE>

PRINCIPAL SUM:  _______________________________________ AND 00/100 DOLLARS

REGISTERED OWNER:  CEDE & CO.

         NELNET EDUCATION LOAN FUNDING,  INC., a corporation organized under the
corporation laws of the State of Nebraska (the "Issuer," which term includes any
successor  corporation under the Indenture of Trust, dated as of January 1, 2004
(the  "Indenture"),  among the  Issuer,  Wells  Fargo Bank  Minnesota,  National
Association,  as  eligible  lender  trustee,  and Wells  Fargo  Bank  Minnesota,
National  Association,  as trustee (the "Indenture Trustee," which

                                      A-2
<PAGE>
                                                                    Exhibit 4.11

term includes any successor  trustee under the  Indenture))  for value received,
hereby  promises to pay to the  Registered  Owner  (stated  above) or registered
assigns,  the  Principal  Sum hereof  (payable on each  Distribution  Date in an
amount equal to the result  obtained by multiplying (i) a fraction the numerator
of which is the  Principal  Sum hereof (as modified by Annex 2 attached  hereto)
and  denominator of which is $__________ by (ii) the aggregate  amount,  if any,
payable on the Class  A[-1A][-1B][-2][-3]  Notes on such Quarterly  Distribution
Date in  accordance  with the  Indenture),  but  solely  from the  revenues  and
receipts hereinafter specified and not otherwise, on the Maturity Date specified
above (subject to the right of prior redemption hereinafter  described),  at the
designated  corporate  trust office of the Indenture  Trustee,  as paying agent,
trustee,  authenticating  agent and registrar for the Series 2004-1 Notes,  or a
duly appointed  successor  paying agent,  and to pay interest in arrears on said
Principal Sum, but solely from the revenues and receipts  hereinafter  specified
and not otherwise, to the Registered Owner hereof from the most recent Quarterly
Distribution  Date to which interest has been paid hereon,  until the payment of
said principal sum in full.

         Any capitalized words and terms used as defined words and terms in this
note and not otherwise  defined herein shall have the meanings given them in the
Indenture.

         The  Issuer  shall pay  interest  on this note at the rate set forth in
Annex 1, on each Quarterly 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 Quarterly Distribution Date (after giving effect to
all payments of principal made on the preceding  Quarterly  Distribution  Date).
Interest on this note shall accrue from and including  the  preceding  Quarterly
Distribution  Date (or,  in the case of the first  Accrual  Period,  the Closing
Date) to but  excluding  the  following  Quarterly  Distribution  Date  (each an
"Accrual Period") as set forth in Annex 1.

         The  principal of and interest on this note are payable in lawful money
of the  United  States of  America.  If the  specified  date for any  payment of
principal or interest accrued to such specified date shall be a day other than a
Business Day then such payment may be made on the next succeeding  Business Day,
with the same force and effect as if made on the specified date for such payment
without additional interest.

         Principal of the Class  A[-1A][-1B][-2][-3] Notes shall be allocable on
each  Quarterly  Distribution  Date and  payable  as set forth in Annex 1 to the
extent moneys have been allocated  therefor pursuant to the Indenture and as set
froth in Annex 1. "Distribution Date" means the 25th day of each February,  May,
August and November , commencing  August 25, 2004, or, if any such date is not a
Business Day, the next succeeding Business Day.

         If during any Reset Period  (including  the initial  Reset  Period) the
Class  A[-1A][-1B][-2][-3]  Notes constitute Non-Amortizing Reset Rate Notes (as
defined in the Indenture and as set forh),  the  registered  owners of the Class
A[-1A][-1B][-2][-3]  Notes will not be paid  principal on any related  Quarterly
Distribution  Date when principal is allocated to the Class  A[-1A][-1B][-2][-3]
Notes.  All such  allocated  principal  will be deposited into the related Class
A[-1A][-1B][-2][-3]    Redemption    Account    for   payment   on   the   Class
A[-1A][-1B][-2][-3]  Notes,  generally,  on  the  next  related  Reset  Date  in
accordance  with the procedures  set forth in Appendix A to the  Indenture.  All
principal payments on the Class A[-1A][-1B][-2][-3] Notes shall be made pro rata
to the registered owners thereof.

                                      A-3
<PAGE>
                                                                    Exhibit 4.11

         Interest  on the Class  A[-1A][-1B][-2][-3]  Notes  shall be payable on
each  Quarterly  Distribution  Date on the principal  amount  outstanding of the
Class  A[-1A][-1B][-2][-3]  Notes until the principal  amount thereof is paid in
full, at a rate per annum equal to the Class  A[-1A][-1B][-2][-3] Notes Interest
Rate.  The Class  A[-1A][-1B][-2][-3]  Notes Interest Rate will be reset on each
related  Reset Date set forth in Annex 1 in  accordance  with the  provisions of
Appendix  A  to  the   Indenture.   The   initial   Reset  Date  for  the  Class
A[-1A][-1B][-2][-3]  Notes is the Quarterly  Distribution  Date in __________ of
____.  [The "Class  A[-1A][-2][-3]  Notes Interest Rate" for each Accrual Period
during the initial Reset Period, shall be equal to an annual rate of Three-Month
LIBOR + ____%,  calculated on the basis of the actual number of days elapsed and
a 360 day year.] [The "Class A-1B Notes  Interest  Rate" for each Accrual Period
during the  initial  Reset  Period,  shall be equal to an annual  rate of ____%,
calculated on the basis of a 360 day year consisting of twelve 30-day months.]

         On  each  Reset  Date  for the  Class  A[-1A][-1B][-2][-3]  Notes,  the
Indenture Trustee,  in its capacity as DTC Custodian,  will attach (or will send
to the  Registered  Owner of this  note if not then held in  book-entry  form) a
revised  Annex 1 setting  forth the reset  terms of this note and  copies of the
related Remarketing Terms Notice and Spread Determination Notice, which shall be
considered  an integral  part of this note  applicable  during the related Reset
Period.

         This note is one of a class of notes of the Issuer  designated  Student
Loan  Asset-Backed  Notes,  Senior Class  A[-1A][-1B][-2][-3]  Reset Rate Notes,
dated the Original  Issue Date, in the aggregate  original  principal  amount of
$_______________  (the  "Class  A[-1A][-1B][-2][-3]   Notes")  which  have  been
authorized  by the Issuer under a certain  resolution,  and issued by the Issuer
pursuant  to the  Indenture.  The  Issuer  is,  simultaneously  with  the  Class
A[-1A][-1B][-2][-3]   Notes,  issuing   $_______________  of  its  Student  Loan
Asset-Backed  Notes, Senior Class  2004A[-1A][-1B][-2][-3]  Notes (together with
the Class A[-1A][-1B][-2][-3] Notes, the "Class A Notes") and $30,300,000 of its
Student Loan Asset-Backed Notes, Subordinate Class 2004B Auction Rate Notes in 2
classes (the "Class B Notes," and together  with the Class A Notes,  the "Series
2004-1  Notes").  The  proceeds  of such  notes  have been  used by the  Issuer,
together with other moneys of the Issuer,  for the purpose of providing funds to
finance the acquisition of student loans, fund a reserve fund and to pay certain
costs and expenses in connection with such notes.

         Optional and Mandatory  Principal  Reduction Payments and Extraordinary
Redemption. This note is subject to optional and mandatory redemption, mandatory
Principal Reduction Payments and extraordinary  redemption,  all as described in
the Indenture.

         Notice of Redemption or Principal Reduction Payments. All Series 2004-1
Notes called for  redemption  will cease to bear  interest  after the  specified
redemption or purchase date,  provided funds for their payment are on deposit at
the  place of  payment  at the  time.  Preferably  five,  but not less  than two
Business  Days  prior to each  Quarterly  Distribution  Date on which  Principal
Reduction  Payments will be made on the Class A Notes or on which the Reset Rate
Notes are to be  redeemed,  the  Indenture  Trustee  shall  cause  notice of any
Principal  Reduction Payments or redemption to be given by mailing a copy of the
notice by first class mail to the  Administrator  and  registered  owners of the
Class of the Class A Notes designated for reduction or redemption in whole or in
part, at their address as the same shall last appear upon the registration books
on such date; provided, however, that failure to give such notice, or any defect

                                      A-4
<PAGE>
                                                                    Exhibit 4.11

therein,  shall not affect the validity of any  proceedings for the reduction or
redemption of such Class A Notes.

         In addition, preferably five, but not less than two Business Days prior
to each  Quarterly  Distribution  Date,  the  Indenture  Trustee  shall send the
Securities  Depository  written  notice  with  respect to the dollar  amount per
$1,000  original  principal  amount of the  Class of the Class A Notes  that the
Indenture  Trustee will be paying to the Securities  Depository on the Quarterly
Distribution  Date. The Indenture  Trustee may, to the extent necessary to avoid
payments of fractional cents, reduce scheduled payments by up to $1,000 for each
Class.

         The  Indenture  provides  that the Issuer  may enter into a  derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest  rate  hedge  agreement  between  the  Issuer  and a  Counterparty,  as
originally  executed  and  as  amended  or  supplemented.   Payments  due  to  a
Counterparty from the Issuer pursuant to the applicable  Derivative  Product are
referred to herein as "Issuer Derivative  Payments," and may be paid on a parity
with interest on any class of Series 2004-1 Notes.

         The  principal  of and  interest  on the Class A Notes  and any  Issuer
Derivative  Payments  which are paid on a parity  with  interest  on the Class A
Notes are payable on a superior  basis to such payments on the Class B Notes and
any Issuer  Derivative  Payments which are paid on a parity with interest on the
Class B Notes;  provided,  however,  that current  principal and interest may be
paid on the Class B Notes and any Issuer Derivative Payments which are paid on a
parity with interest on the Class B Notes if all principal and interest payments
due and  owing  at such  time on the  Class A Notes  and any  Issuer  Derivative
Payments which are paid on a parity with interest on the Class A Notes have been
previously  made  or  provided  for  as  provided  in the  Indenture.  Principal
allocated to pay the Class A Notes will be use to provide for payment,  on a pro
rata basis, of the Class A-1A and Class A-1B notes,  then to provide for payment
of the Class A-2 notes and then to provide for payment of the Class A-3 notes

         Reference is hereby made to the Indenture,  copies of which are on file
at the designated corporate trust office of the Indenture Trustee, and to all of
the  provisions  of which any  Registered  Owner of this note by his  acceptance
hereof hereby  assents,  for  definitions of terms;  the  description of and the
nature and extent of the  security  for the Series  2004-1  Notes;  the Issuer's
student loan origination and acquisition  program;  the revenues and other money
pledged to the payment of the  principal  of and  interest on the Series  2004-1
Notes;  the  nature and extent and  manner of  enforcement  of the  pledge;  the
conditions  upon which the  Indenture  may be amended  or  supplemented  with or
without the consent of the Registered  Owners of the Series 2004-1 Notes and any
Counterparty;  the rights and  remedies  of the  Registered  Owner  hereof  with
respect  hereto  and  thereto,  including  the  limitations  upon the right of a
Registered Owner hereof to institute any suit,  action,  or proceeding in equity
or at law with respect hereto and thereto;  the rights,  duties, and obligations
of the Issuer and the Indenture  Trustee  thereunder;  the terms and  provisions
upon which the liens, pledges,  charges,  trusts, and covenants made therein may
be discharged at or prior to the stated  maturity or earlier  redemption of this
note, and this note thereafter shall no longer be secured by the Indenture or be
deemed to be Outstanding,  as defined in the Indenture,  thereunder; and for the
other terms and provisions thereof.

                                      A-5
<PAGE>
                                                                    Exhibit 4.11

         THE NOTES ARE LIMITED  OBLIGATIONS OF THE ISSUER,  PAYABLE SOLELY FROM,
AND FURTHER SECURED BY, THE TRUST ESTATE, AS DEFINED IN THE INDENTURE.

         No  recourse,  either  directly  or  indirectly,  shall  be had for the
payment of the  principal of and interest on this note or any claim based hereon
or in respect hereof or of the Indenture,  against the Indenture Trustee, or any
incorporator,  director,  officer, employee, or agent of the Issuer, nor against
the State of Nebraska,  or any official  thereof,  but the obligation to pay all
amounts  required by the Indenture  securing this note and the  obligation to do
and perform the  covenants  and acts  required of the Issuer  therein and herein
shall be and remain the responsibility and obligation of said Issuer, limited as
herein set forth.

         Subject to the  restrictions  specified in the Indenture,  this note is
transferable  on the  note  register  kept  for that  purpose  by the  Indenture
Trustee,  as  registrar,  upon  surrender  of  this  note  for  transfer  at the
designated corporate trust office of the Indenture Trustee, duly endorsed by, or
accompanied by a written  instrument of transfer,  including Annex 1 and Annex 3
to Appendix C to the Indenture,  in form  satisfactory to the Indenture  Trustee
duly executed by, the Registered Owner hereof or his attorney duly authorized in
writing,  and  thereupon  one or more new Series 2004-1 Notes of the same class,
Stated Maturity, of authorized denominations, bearing interest at the same rate,
and for the same  aggregate  principal  amount will be issued to the  designated
transferee or  transferees.  At the option of the Registered  Owner,  any Series
2004-1  Note may be  exchanged  for  other  Series  2004-1  Notes in  authorized
denominations  upon  surrender of the Series  2004-1 Note to be exchanged at the
designated  corporate  trust  office  of the  Indenture  Trustee.  Upon any such
presentation  for  exchange,  one or more new  Series  2004-1  Notes of the same
class,  Stated Maturity,  in authorized  denominations,  bearing interest at the
same rate, and for the same aggregate principal amount as the Series 2004-1 Note
or Series 2004-1 Notes so surrendered  will be issued to the Registered Owner of
the Series  2004-1 Note or Series  2004-1 Notes so  surrendered;  and the Series
2004-1 Note or Series 2004-1 Notes so surrendered  shall  thereupon be cancelled
by the Indenture Trustee.

         The  Class  A[-1A][-1B][-2][-3]  Notes  have  not  been  registered  or
qualified under the Securities Act of 1933, as amended (the  "Securities  Act"),
or any state securities law. No transfer,  sale,  pledge or other disposition of
any Class  A[-1A][-1B][-2][-3]  Note,  or any  interest  therein,  shall be made
unless the  transfer is made  pursuant to an  effective  registration  statement
under the Securities Act, or  qualification  under  applicable  state securities
laws, or is made in a transaction  which does not require such  registration  or
qualification.  In the event that a transfer  is made  without  registration  or
qualification,   the  Indenture  Trustee  shall  require,  in  order  to  assure
compliance with such laws,  that the prospective  transferor and transferee each
certify to the  Administrator  and the  Indenture  Trustee in writing  the facts
surrounding the transfer.  Such  certifications  shall be  substantially  in the
forms of Annex 1 and Annex 3 to Appendix C to the Indenture. Such certifications
shall be deemed to have been made by the transferor and transferee  with respect
to any  transfer of an interest in a Class  A[-1A][-1B][-2][-3]  Note that is in
book-entry  form.  None of the Issuer,  the  Administrator,  the Eligible Lender
Trustee or the  Indenture  Trustee is obligated to register or qualify the Class
A[-1A][-1B][-2][-3]  Notes under the Securities Act or any other  securities law
or to take any action not otherwise  required  under the Indenture to permit the
transfer of Class  A[-1A][-1B][-2][-3]  Notes,  or  interests  therein,  without
registration   or    qualification.    Any   registered   owner   of   a   Class
A[-1A][-1B][-2][-3]  Note

                                      A-6
<PAGE>
                                                                    Exhibit 4.11

desiring  to effect  such  transfer  is hereby  deemed to have  indemnified  the
Issuer, the Administrator, the Eligible Lender Trustee and the Indenture Trustee
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such applicable federal or state laws.

         Notwithstanding  the foregoing,  so long as the ownership of the Series
2004-1 Notes is maintained in book-entry  form by The  Depository  Trust Company
(the "Securities Depository") or a nominee thereof, this note may be transferred
in whole but not in part only to the Securities  Depository or a nominee thereof
or to a successor Securities Depository or its nominee.

         The  Issuer,  the  Indenture  Trustee,  and any agent of either of them
shall treat the Person in whose name this note is registered  as the  Registered
Owner hereof (a) on the record date for purposes of receiving  timely payment of
interest  hereon,  and (b) on the date of surrender of this note for purposes of
receiving  payment of  principal  hereof at its stated  maturity and (c) for all
other purposes, whether or not this note is overdue, and none of the Issuer, the
Indenture  Trustee,  or any  such  agent  shall be  affected  by  notice  to the
contrary.

         To the extent permitted by the Indenture,  modifications or alterations
of the Indenture and any supplemental  indenture may be made with the consent of
less  than  all  of the  Registered  Owners  of the  Series  2004-1  Notes  then
outstanding or without the consent of any of such  Registered  Owners (by reason
of a change in the Higher  Education Act or Regulation or to cure ambiguities or
conflicts),  but such  modification or alteration is not permitted to affect the
maturity date, Stated Maturity,  amount, Quarterly Distribution Date, or rate of
interest  on any  outstanding  Series  2004-1  Notes or affect the rights of the
Registered Owners of less than all of the Series 2004-1 Notes outstanding.

         The Registered  Owner hereof shall not have the right to demand payment
of this  note or any  interest  hereon  out of funds  raised  or to be raised by
taxation.

         Any capitalized term used herein and not otherwise defined herein shall
have the same  meaning  ascribed  to such term in the herein  defined  Indenture
unless the context shall clearly indicate otherwise.

         It is hereby certified and recited that all acts and things required by
the laws of the State of Nebraska to happen,  exist, and be performed  precedent
to and in the issuance of this note, and the passage of said  resolution and the
execution of said Indenture,  have happened, exist and have been performed as so
required.

                                      A-7
<PAGE>
                                                                    Exhibit 4.11

         IN TESTIMONY  WHEREOF,  the Board of Directors of NELNET EDUCATION LOAN
FUNDING,  INC.  has caused this note to be  executed by the manual or  facsimile
signatures  of the  President and Secretary of the Issuer all as of the Original
Issue Date.

                             NELNET EDUCATION LOAN FUNDING, INC.

                             By
                                ------------------------------------------------
                                   President

                             By
                                ------------------------------------------------
                                   Secretary

                                      A-8
<PAGE>
                                                                    Exhibit 4.11

                          CERTIFICATE OF AUTHENTICATION

         This note is one of the Class 2004A[-1A][-1B][-2][-3] Notes designated
therein and described in the within-mentioned Indenture.

                                 WELLS FARGO BANK MINNESOTA,
                                 NATIONAL ASSOCIATION, as Indenture Trustee

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

Authentication Date:

--------------------
                                      A-9
<PAGE>
                                                                    Exhibit 4.11

                                   ASSIGNMENT

         FOR  VALUE  RECEIVED,   the  undersigned  hereby  sells,  assigns,  and
transfers  unto  __________   (Social  Security  or  other  identifying   number
__________)  the within note and all rights  thereunder  and hereby  irrevocably
appoints  __________  attorney to transfer the within note on the books kept for
registration thereof, with full power of substitution in the premises.

Dated:                              SIGNED:
       ---------------------               -------------------------------------
                                    NOTICE:  The  signature  on this  Assignment
                                    must   correspond   with  the  name  of  the
                                    Registered  Owner as it  appears on the face
                                    of the within note in every particular.

Signature Guaranteed by:

------------------------------
Signature(s)      must      be
guaranteed   by  an   eligible
guarantor institution pursuant
to  Securities   and  Exchange
Commission  Rule  17Ad-15 that
is   a   participant    in   a
signature   guarantor  program
recognized  by  the  Indenture
Trustee

                                      A-10
<PAGE>
                                                                    Exhibit 4.11

                                     ANNEX 1

                          REMARKETING TERMS NOTICE AND
                           SPREAD DETERMINATION NOTICE

                                      A-11
<PAGE>
                                                                    Exhibit 4.11

                                     ANNEX 2

                      SCHEDULE OF EXCHANGES IN GLOBAL NOTE

         The following exchanges of a part of this Global Certificate have been
made:

<TABLE>
<CAPTION>
<S>              <C>                        <C>                      <C>                         <C>
---------------- -------------------------- ------------------------ -------------------------- ----------------------
                                                                     Principal  Amount of this
                   Amount of Decrease in     Amount of Increase in      Global Certificate          Signature of
    Date of      Principal Amount of this     Principal Amount of     following such Decrease     Authorized Officer
   Exchange         Global Certificate       this Global Certificate      (or Increase)          of Indenture Trustee
---------------- -------------------------- ------------------------ -------------------------- ----------------------
</TABLE>

                                      A-12
<PAGE>

                                                                    Exhibit 4.11

                                    EXHIBIT B

                           FORM OF AUCTION RATE NOTES

                  THIS AUCTION RATE NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED
         UNDER  THE  UNITED  STATES  SECURITIES  ACT OF 1933,  AS  AMENDED  (THE
         "SECURITIES  ACT"),  ANY UNITED  STATES STATE  SECURITIES OR "BLUE SKY"
         LAWS OR ANY SECURITIES LAWS OF ANY OTHER JURISDICTION, AND, AS A MATTER
         OF U.S. LAW, MAY NOT BE OFFERED OR SOLD IN VIOLATION OF THE  SECURITIES
         ACT OR SUCH OTHER LAWS.  THIS NOTE MAY BE  TRANSFERRED  ONLY IN MINIMUM
         DENOMINATIONS  OF NOT  LESS  THAN  $50,000  AND ANY  INTEGRAL  MULTIPLE
         THEREOF.  THE HOLDER  HEREOF,  BY PURCHASING OR ACCEPTING  THIS AUCTION
         RATE NOTE IS HEREBY DEEMED TO HAVE AGREED FOR THE BENEFIT OF THE ISSUER
         AND THE INITIAL  PURCHASERS  THAT IT WILL  RESELL,  PLEDGE OR OTHERWISE
         TRANSFER  THIS NOTE,  AS A MATTER OF U.S.  LAW,  ONLY (A)(1) SO LONG AS
         THIS NOTE IS  ELIGIBLE  FOR RESALE,  PURSUANT TO RULE 144A  PROMULGATED
         UNDER THE  SECURITIES  ACT ("RULE  144A"),  TO A PERSON WHOM THE SELLER
         REASONABLY BELIEVES IS A QUALIFIED  INSTITUTIONAL  BUYER, AS DEFINED IN
         RULE 144A (A "QUALIFIED  INSTITUTIONAL  BUYER"), THAT IS ACQUIRING THIS
         AUCTION  RATE NOTE FOR ITS OWN ACCOUNT OR AS A  FIDUCIARY  OR AGENT FOR
         OTHERS  (WHICH OTHERS MUST ALSO BE QUALIFIED  INSTITUTIONAL  BUYERS) TO
         WHOM NOTICE IS GIVEN THAT THE RESALE OR OTHER TRANSFER IS BEING MADE IN
         RELIANCE  ON RULE 144A OR (2)  PURSUANT  TO AN  EFFECTIVE  REGISTRATION
         STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY
         UNITED  STATES STATE  SECURITIES  OR "BLUE SKY" LAWS OR ANY  SECURITIES
         LAWS OF ANY OTHER JURISDICTION.

                  UPON  ACQUISITION  OR  TRANSFER  OF AN AUCTION  RATE NOTE OR A
         BENEFICIAL  INTEREST IN AN AUCTION  RATE NOTE,  AS THE CASE MAY BE, BY,
         FOR OR WITH THE ASSETS OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
         ARRANGEMENT (A "PLAN"), SUCH AUCTION RATE NOTE OWNER SHALL BE DEEMED TO
         HAVE  REPRESENTED THAT SUCH ACQUISITION OR PURCHASE WILL NOT CONSTITUTE
         OR  OTHERWISE  RESULT IN: (I) IN THE CASE OF A PLAN  SUBJECT TO SECTION
         406 OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
         ("ERISA"),  OR SECTION  4975 OF THE INTERNAL  REVENUE CODE OF 1986,  AS
         AMENDED (THE "CODE"), A NON-EXEMPT PROHIBITED  TRANSACTION IN VIOLATION
         OF  SECTION  406 OF ERISA  OR  SECTION  4975 OF THE  CODE  WHICH IS NOT
         COVERED BY A CLASS OR OTHER  APPLICABLE  EXEMPTION AND (II) IN THE CASE
         OF A PLAN SUBJECT TO A SUBSTANTIALLY  SIMILAR FEDERAL,  STATE, LOCAL OR
         FOREIGN  LAW   ("SIMILAR   LAW"),   A  NON-EXEMPT   VIOLATION  OF  SUCH
         SUBSTANTIALLY  SIMILAR  LAW.  ANY

<PAGE>
                                                                    Exhibit 4.11

         TRANSFER   FOUND  TO  HAVE  BEEN  MADE  IN  VIOLATION  OF  SUCH  DEEMED
         REPRESENTATION SHALL BE NULL AND VOID AND OF NO EFFECT.

                  THIS  AUCTION  RATE  NOTE  AND  RELATED  DOCUMENTATION  MAY BE
         AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON
         AND PROCEDURES UNDERTAKEN OR REPRESENTED BY THE HOLDER, FOR RESALES AND
         OTHER  TRANSFERS OF THIS  AUCTION  RATE NOTE,  TO REFLECT ANY CHANGE IN
         APPLICABLE  LAWS OR REGULATIONS (OR THE  INTERPRETATION  THEREOF) OR IN
         PRACTICES   RELATING  TO  RESALES  OR  OTHER  TRANSFERS  OF  RESTRICTED
         SECURITIES GENERALLY.  THE HOLDER OF THIS NOTE AND ANY BENEFICIAL OWNER
         OF ANY INTEREST THEREIN SHALL BE DEEMED,  BY ITS ACCEPTANCE OR PURCHASE
         HEREOF,  TO HAVE AGREED TO ANY SUCH  AMENDMENT OR  SUPPLEMENT  (EACH OF
         WHICH  SHALL BE  CONCLUSIVE  AND  BINDING ON THE HOLDER  HEREOF AND ALL
         FUTURE  HOLDERS OF THIS  AUCTION  RATE NOTE AND ANY  AUCTION  RATE NOTE
         ISSUED IN EXCHANGE OR SUBSTITUTION HEREFOR, WHETHER OR NOT ANY NOTATION
         THEREOF IS MADE  HEREON) AND AGREES TO TRANSFER  THIS AUCTION RATE NOTE
         ONLY IN ACCORDANCE  WITH ANY SUCH AMENDMENT OR SUPPLEMENT IN ACCORDANCE
         WITH APPLICABLE LAW IN EFFECT AT THE DATE OF SUCH TRANSFER.

                       NELNET EDUCATION LOAN FUNDING, INC.
                         STUDENT LOAN ASSET-BACKED NOTE
                         SUBORDINATE CLASS 2004B[-1][-2]
                               AUCTION RATE NOTES

REGISTERED NO. R-__                                       REGISTERED $15,150,000

<TABLE>
<CAPTION>
        Maturity Date                  Interest Rate             Original Issue Date               CUSIP No.

<S>                                      <C>                      <C>                              <C>
      February 25, 2036                  Variable                 January 30, 2004                 _________
</TABLE>

PRINCIPAL  SUM:  **FIFTEEN  MILLION ONE HUNDRED  AND FIFTY  THOUSAND  AND 00/100
DOLLARS**

REGISTERED OWNER: CEDE & CO.

         NELNET EDUCATION LOAN FUNDING,  INC., a corporation organized under the
corporation laws of the State of Nebraska (the "Issuer," which term includes any
successor  corporation under the Indenture of Trust, dated as of January 1, 2004
(the  "Indenture"),  among the  Issuer,  Wells  Fargo Bank  Minnesota,  National
Association,  as  eligible  lender  trustee,  and Wells  Fargo  Bank  Minnesota,
National  Association,  as trustee (the "Indenture Trustee," which term includes
any successor trustee under the Indenture)) for value received,  hereby promises
to pay to the  Registered  Owner  (stated  above)  or  registered  assigns,  the
Principal  Sum  (stated  above),  but  solely  from the  revenues  and  receipts
hereinafter  specified and not otherwise,  on the Maturity Date specified  above
(subject  to  the  right  of  prior  redemption  hereinafter  described),

                                      B-2
<PAGE>
                                                                    Exhibit 4.11

upon  presentation and surrender of this note at the designated  corporate trust
office of the Indenture Trustee, as paying agent, trustee,  authenticating agent
and registrar for the Series 2004-1 Notes, or a duly appointed  successor paying
agent, and to pay interest in arrears on said Principal Sum, but solely from the
revenues and receipts hereinafter specified and not otherwise, to the Registered
Owner  hereof  from the most  recent  Auction  Rate  Distribution  Date to which
interest has been paid hereon, until the payment of said principal sum in full.

         Any capitalized words and terms used as defined words and terms in this
note and not otherwise  defined herein shall have the meanings given them in the
Indenture.

         This note shall bear interest at an Auction Rate,  all as determined in
Appendix B to the Indenture.

         The  principal of and interest on this note are payable in lawful money
of the  United  States of  America.  If the  specified  date for any  payment of
principal or interest accrued to such specified date shall be a day other than a
Business Day then such payment may be made on the next succeeding  Business Day,
with the same force and effect as if made on the specified date for such payment
without additional interest.

         Interest  payable on this note shall be computed on the assumption that
each year contains 360 days and actual days elapsed.

         This note is one of a class of notes of the Issuer  designated  Student
Loan Asset-Backed  Notes,  Subordinate Class  2004B[-1][-2]  Auction Rate Notes,
dated the Original  Issue Date, in the aggregate  original  principal  amount of
$15,150,000  (the "Class  B[-1][-2]  Notes")  which have been  authorized by the
Issuer  under a certain  resolution,  and issued by the Issuer  pursuant  to the
Indenture. The Issuer is, simultaneously with the Class B[-1][-2] Notes, issuing
$15,150,000  of  its  Student  Loan   Asset-Backed   Notes,   Subordinate  Class
2004B[-1][-2]  Auction Rate Notes (the "Class B[-1][-2] Notes, and together with
the Class B[-1][-2]  Notes, the "Class B Notes") and $979,700,000 of its Student
Loan  Asset-Backed  Notes,  Senior  Class  2004A  Reset  Rate Notes in 4 classes
(collectively,  the "Class A Notes," and  together  with the Class B Notes,  the
"Series 2004-1 Notes"). The proceeds of such notes have been used by the Issuer,
together with other moneys of the Issuer,  for the purpose of providing funds to
finance the acquisition of student loans, fund a reserve fund and to pay certain
costs and expenses in connection with such notes.

         Optional,  Mandatory and Extraordinary Redemption. This note is subject
to optional,  mandatory and  extraordinary  redemption,  all as described in the
Indenture.

         Notice of Redemption.  Notice of the call for redemption shall be given
by the Indenture  Trustee by mailing a copy of the notice at least 10 days prior
to the  redemption  date to the  Registered  Owners  of the  Class B Notes to be
redeemed  in whole  or in part at the  address  of such  Registered  Owner  last
showing on the  registration  books.  Failure to give such  notice or any defect
therein shall not affect the validity of any  proceedings  for the redemption of
such Class B Notes for which no such failure or defect occurs. All Class B Notes
called for redemption will cease to bear interest after the specified redemption
date, provided funds for their payment are on

                                      B-3
<PAGE>
                                                                    Exhibit 4.11

deposit at the place of payment at the time.  If less than all Class B Notes are
to be redeemed,  Class B Notes shall be selected for  redemption  or purchase as
provided in the Indenture.

         The  Indenture  provides  that the Issuer  may enter into a  derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest  rate  hedge  agreement  between  the  Issuer  and a  Counterparty,  as
originally  executed  and  as  amended  or  supplemented.   Payments  due  to  a
Counterparty from the Issuer pursuant to the applicable  Derivative  Product are
referred to herein as "Issuer Derivative  Payments," and may be paid on a parity
with interest on any class of Series 2004-1 Notes.

         The  principal  of and  interest  on the Class A Notes  and any  Issuer
Derivative  Payments  which are paid on a parity  with  interest  on the Class A
Notes are payable on a superior  basis to such payments on the Class B Notes and
any Issuer  Derivative  Payments which are paid on a parity with interest on the
Class B Notes;  provided,  however,  that current  principal and interest may be
paid on the Class B Notes and any Issuer Derivative Payments which are paid on a
parity with interest on the Class B Notes if all principal and interest payments
due and  owing  at such  time on the  Class A Notes  and any  Issuer  Derivative
Payments which are paid on a parity with interest on the Class A Notes have been
previously made or provided for as provided in the Indenture. Except as provided
in the Indenture, principal allocated to pay the Series 2004-1 Notes will be use
to provide for  payment,  on a pro rata basis,  of the Class A-1A and Class A-1B
notes,  then to provide for payment of the Class A-2 notes,  then to provide for
payment of the Class A-3 notes and then to provide  for  payment,  on a pro rata
basis, of the Class B notes.

         Reference is hereby made to the Indenture,  copies of which are on file
at the designated corporate trust office of the Indenture Trustee, and to all of
the  provisions  of which any  Registered  Owner of this note by his  acceptance
hereof hereby  assents,  for  definitions of terms;  the  description of and the
nature and extent of the  security  for the Series  2004-1  Notes;  the Issuer's
student loan origination and acquisition  program;  the revenues and other money
pledged to the payment of the  principal  of and  interest on the Series  2004-1
Notes;  the  nature and extent and  manner of  enforcement  of the  pledge;  the
conditions  upon which the  Indenture  may be amended  or  supplemented  with or
without the consent of the Registered  Owners of the Series 2004-1 Notes and any
Counterparty;  the rights and  remedies  of the  Registered  Owner  hereof  with
respect  hereto  and  thereto,  including  the  limitations  upon the right of a
Registered Owner hereof to institute any suit,  action,  or proceeding in equity
or at law with respect hereto and thereto;  the rights,  duties, and obligations
of the Issuer and the Indenture  Trustee  thereunder;  the terms and  provisions
upon which the liens, pledges,  charges,  trusts, and covenants made therein may
be discharged at or prior to the stated  maturity or earlier  redemption of this
note, and this note thereafter shall no longer be secured by the Indenture or be
deemed to be Outstanding,  as defined in the Indenture,  thereunder; and for the
other terms and provisions thereof.

         THE NOTES ARE LIMITED  OBLIGATIONS OF THE ISSUER,  PAYABLE SOLELY FROM,
AND FURTHER SECURED BY, THE TRUST ESTATE, AS DEFINED IN THE INDENTURE.

         No  recourse,  either  directly  or  indirectly,  shall  be had for the
payment of the  principal of and interest on this note or any claim based hereon
or in respect hereof or of the Indenture,

                                      B-4
<PAGE>
                                                                    Exhibit 4.11

against the Indenture Trustee, or any incorporator, director, officer, employee,
or agent of the  Issuer,  nor  against the State of  Nebraska,  or any  official
thereof,  but  the  obligation  to pay all  amounts  required  by the  Indenture
securing  this note and the  obligation to do and perform the covenants and acts
required of the Issuer therein and herein shall be and remain the responsibility
and obligation of said Issuer, limited as herein set forth.

         Subject to the  restrictions  specified in the Indenture,  this note is
transferable  on the  note  register  kept  for that  purpose  by the  Indenture
Trustee,  as  registrar,  upon  surrender  of  this  note  for  transfer  at the
designated corporate trust office of the Indenture Trustee, duly endorsed by, or
accompanied by a written  instrument of transfer,  including Annex 1 and Annex 3
to Appendix C to the Indenture,  in form  satisfactory to the Indenture  Trustee
duly executed by, the Registered Owner hereof or his attorney duly authorized in
writing,  and  thereupon  one or more new Series 2004-1 Notes of the same class,
Stated Maturity, of authorized denominations, bearing interest at the same rate,
and for the same  aggregate  principal  amount will be issued to the  designated
transferee or  transferees.  At the option of the Registered  Owner,  any Series
2004-1  Note may be  exchanged  for  other  Series  2004-1  Notes in  authorized
denominations  upon  surrender of the Series  2004-1 Note to be exchanged at the
designated  corporate  trust  office  of the  Indenture  Trustee.  Upon any such
presentation  for  exchange,  one or more new  Series  2004-1  Notes of the same
class,  Stated Maturity,  in authorized  denominations,  bearing interest at the
same rate, and for the same aggregate principal amount as the Series 2004-1 Note
or Series 2004-1 Notes so surrendered  will be issued to the Registered Owner of
the Series  2004-1 Note or Series  2004-1 Notes so  surrendered;  and the Series
2004-1 Note or Series 2004-1 Notes so surrendered  shall  thereupon be cancelled
by the Indenture Trustee.

         The  Class  B  Notes  have  not  been  registered  or  qualified  under
Securities  Act of  1933,  as  amended  (the  "Securities  Act"),  or any  state
securities law. No transfer,  sale,  pledge or other  disposition of any Class B
Note,  or any  interest  therein,  shall be made  unless  the  transfer  is made
pursuant to an effective  registration  statement  under the Securities  Act, or
qualification   under  applicable  state  securities  laws,  or  is  made  in  a
transaction which does not require such  registration or  qualification.  In the
event  that a  transfer  is made  without  registration  or  qualification,  the
Indenture  Trustee shall require,  in order to assure compliance with such laws,
that the prospective transferor and transferee each certify to the Administrator
and the Indenture  Trustee in writing the facts  surrounding the transfer.  Such
certifications  shall be  substantially  in the  forms of Annex 1 and Annex 3 to
Appendix C to the Indenture.  Such  certifications  shall be deemed to have been
made by the  transferor  and  transferee  with  respect  to any  transfer  of an
interest in a Class B Note that is in book-entry  form. None of the Issuer,  the
Administrator, the Eligible Lender Trustee or the Indenture Trustee is obligated
to register or qualify the Class B Notes under the  Securities  Act or any other
securities law or to take any action not otherwise  required under the Indenture
to  permit  the  transfer  of  Class B  Notes,  or  interests  therein,  without
registration or  qualification.  Any registered owner of a Class B Note desiring
to effect such transfer is hereby  deemed to have  indemnified  the Issuer,  the
Administrator, the Eligible Lender Trustee and the Indenture Trustee against any
liability  that may  result if the  transfer  is not so exempt or is not made in
accordance with such applicable federal or state laws.

         Notwithstanding  the foregoing,  so long as the ownership of the Series
2004-1 Notes is maintained in book-entry  form by The  Depository  Trust Company
(the "Securities Depository")

                                      B-5
<PAGE>
                                                                    Exhibit 4.11

or a nominee thereof, this note may be transferred in whole but not in part only
to the Securities  Depository or a nominee thereof or to a successor  Securities
Depository or its nominee.

         The  Issuer,  the  Indenture  Trustee,  and any agent of either of them
shall treat the Person in whose name this note is registered  as the  Registered
Owner hereof (a) on the record date for purposes of receiving  timely payment of
interest  hereon,  and (b) on the date of surrender of this note for purposes of
receiving  payment of  principal  hereof at its stated  maturity and (c) for all
other purposes, whether or not this note is overdue, and none of the Issuer, the
Indenture  Trustee,  or any  such  agent  shall be  affected  by  notice  to the
contrary.

         To the extent permitted by the Indenture,  modifications or alterations
of the Indenture and any supplemental  indenture may be made with the consent of
less  than  all  of the  Registered  Owners  of the  Series  2004-1  Notes  then
outstanding or without the consent of any of such  Registered  Owners (by reason
of a change in the Higher  Education Act or Regulation or to cure ambiguities or
conflicts),  but such  modification or alteration is not permitted to affect the
maturity date, Stated Maturity,  amount, Auction Rate Distribution Date, or rate
of interest on any  outstanding  Series 2004-1 Notes or affect the rights of the
Registered Owners of less than all of the Series 2004-1 Notes outstanding.

         The Registered  Owner hereof shall not have the right to demand payment
of this  note or any  interest  hereon  out of funds  raised  or to be raised by
taxation.

         Any capitalized term used herein and not otherwise defined herein shall
have the same  meaning  ascribed  to such term in the herein  defined  Indenture
unless the context shall clearly indicate otherwise.

         It is hereby certified and recited that all acts and things required by
the laws of the State of Nebraska to happen,  exist, and be performed  precedent
to and in the issuance of this note, and the passage of said  resolution and the
execution of said Indenture,  have happened, exist and have been performed as so
required.

                                      B-6
<PAGE>
                                                                    Exhibit 4.11

         IN TESTIMONY  WHEREOF,  the Board of Directors of NELNET EDUCATION LOAN
FUNDING,  INC.  has caused this note to be  executed by the manual or  facsimile
signatures  of the  President and Secretary of the Issuer all as of the Original
Issue Date.

                                NELNET EDUCATION LOAN FUNDING, INC.

                                By
                                   ---------------------------------------------
                                      President

                                By
                                   ---------------------------------------------
                                      Secretary

                                      B-7
<PAGE>
                                                                    Exhibit 4.11

                          CERTIFICATE OF AUTHENTICATION

         This note is one of the Series 2004B[-1][-2] Notes designated therein
and described in the within-mentioned Indenture.

                                WELLS FARGO BANK MINNESOTA,
                                NATIONAL ASSOCIATION, as Indenture Trustee

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

Authentication Date:

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

                                      B-8
<PAGE>
                                                                    Exhibit 4.11

                                   ASSIGNMENT

         FOR  VALUE  RECEIVED,   the  undersigned  hereby  sells,  assigns,  and
transfers  unto  __________   (Social  Security  or  other  identifying   number
__________)  the within note and all rights  thereunder  and hereby  irrevocably
appoints  __________  attorney to transfer the within note on the books kept for
registration thereof, with full power of substitution in the premises.

Dated:                             SIGNED:
       -----------------------            --------------------------------------
                                   NOTICE: The signature on this Assignment must
                                   correspond  with the  name of the  Registered
                                   Owner as it appears on the face of the within
                                   note in every particular.

Signature Guaranteed by:

------------------------------
Signature(s)      must      be
guaranteed   by  an   eligible
guarantor institution pursuant
to  Securities   and  Exchange
Commission  Rule  17Ad-15 that
is   a   participant    in   a
signature   guarantor  program
recognized  by  the  Indenture
Trustee

                                      B-9
<PAGE>
                                                                    Exhibit 4.11

                                    EXHIBIT C

                            NOTICE OF PAYMENT DEFAULT

                       NELNET EDUCATION LOAN FUNDING, INC.
                         STUDENT LOAN ASSET-BACKED NOTES
                         SUBORDINATE CLASS 2004B[-1][-2]
                               AUCTION RATE NOTES

         NOTICE IS HEREBY  GIVEN  that a Payment  Default  has  occurred  and is
continuing  with respect to the Auction Rate Notes  identified  above.  The next
Auction for the Auction  Rate Notes will not be held.  The Auction  Rate for the
Auction  Rate  Notes  for  the  next  succeeding  Accrual  Period  shall  be the
Non-Payment Rate.

                                    WELLS FARGO BANK MINNESOTA,
                                    NATIONAL ASSOCIATION, as Indenture Trustee

Dated: _______________________      By _______________________________________

<PAGE>

                                                                    Exhibit 4.11

                                    EXHIBIT D

                        NOTICE OF CURE OF PAYMENT DEFAULT

                       NELNET EDUCATION LOAN FUNDING, INC.
                         STUDENT LOAN ASSET-BACKED NOTES
                         SUBORDINATE CLASS 2004B[-1][-2]
                               AUCTION RATE NOTES

         NOTICE IS HEREBY  GIVEN  that a Payment  Default  with  respect  to the
Auction Rate Notes  identified  above has been waived or cured. The next Auction
Rate  Distribution  Date is  __________________________  and the Auction Date is
__________________________.

                                   WELLS FARGO BANK MINNESOTA,
                                   NATIONAL ASSOCIATION, as Indenture Trustee

Dated: ________________            By __________________________________________

<PAGE>
                                                                    Exhibit 4.11

                                    EXHIBIT E

                       NOTICE OF PROPOSED CHANGE IN LENGTH
                         OF ONE OR MORE AUCTION PERIODS

                       NELNET EDUCATION LOAN FUNDING, INC.
                         STUDENT LOAN ASSET-BACKED NOTES
                         SUBORDINATE CLASS 2004B[-1][-2]
                               AUCTION RATE NOTES

         Notice is hereby given that the Issuer proposes to change the length of
one or more Auction Periods  pursuant to the Indenture of Trust, as amended (the
"Indenture") as follows:

         1. The change shall take effect on  _______________,  the Interest Rate
Adjustment Date for the next Auction Period (the "Effective Date").

         2. The Auction  Period  Adjustment in Paragraph 1 shall take place only
if (a) the  Indenture  Trustee and the  Auction  Agent  receive,  by 11:00 a.m.,
eastern time, on the Business Day before the Auction Date for the Auction Period
commencing on the Effective Date, a certificate from the Issuer,  as required by
the Indenture  authorizing  the change in length of one or more Auction  Periods
and (b)  Sufficient  Bids  exist  on the  Auction  Date for the  Auction  Period
commencing on the Effective Date.

         3. If the  condition  referred to in (a) above is not met,  the Auction
Rate for the Auction Period  commencing on the Effective Date will be determined
pursuant to the Auction  Procedures  and the Auction Period shall be the Auction
Period  determined  without  reference to the proposed change.  If the condition
referred to in (a) is met but the condition referred to in (b) above is not met,
the Auction Rate for the Auction  Period  commencing on the Effective Date shall
be the  Maximum  Rate  and  the  Auction  Period  shall  be the  Auction  Period
determined without reference to the proposed change.

         4. It is hereby  represented,  upon advice of the Auction Agent for the
Class  2004B[-1][-2] Notes described herein, that there were Sufficient Bids for
such Class 2004B[-1][-2] Notes at the Auction immediately  preceding the date of
this Notice.

         5. Terms not defined in this Notice  shall have the  meanings set forth
in the Indenture entered into in connection with the Class 2004B[-1][-2] Notes.

                                      NELNET EDUCATION LOAN FUNDING, INC.

Dated: __________________             By _________________________________

<PAGE>
                                                                    Exhibit 4.11

                                    EXHIBIT F

                      NOTICE ESTABLISHING CHANGE IN LENGTH
                         OF ONE OR MORE AUCTION PERIODS

                       NELNET EDUCATION LOAN FUNDING, INC.
                         STUDENT LOAN ASSET-BACKED NOTES
                         SUBORDINATE CLASS 2004B[-1][-2]
                               AUCTION RATE NOTES

         Notice is hereby given that the Issuer hereby  establishes  new lengths
for one or more Auction Periods pursuant to the Indenture of Trust, as amended:

         1. The change shall take effect on  _______________,  the Interest Rate
Adjustment Date for the next Auction Period (the "Effective Date").

         2.  For the  Auction  Period  commencing  on the  Effective  Date,  the
Interest Rate Adjustment Date shall be  _______________,  or the next succeeding
Business Day if such date is not a Business Day.

         3. For Auction Periods occurring after the Auction Period commencing on
the   Effective   Date,   the   Interest   Rate   Adjustment   Date   shall   be
[_______________(date)  and every  ______________(number)  ______________(day of
week)  thereafter]  [every  ______________(number)  ______________(day  of week)
after the date set forth in paragraph 2 above],  or the next Business Day if any
such day is not a Business Day; provided, however, that the length of subsequent
Auction Periods shall be subject to further change  hereafter as provided in the
Indenture of Trust.

         4. The changes  described in  paragraphs 2 and 3 above shall take place
only upon delivery of this Notice and the  satisfaction of other  conditions set
forth in the  Indenture  of Trust and our  prior  notice  dated  _______________
regarding the proposed change.

         5. Terms not defined in this Notice  shall have the  meanings set forth
in the Indenture of Trust relating to the Class 2004B[-1][-2] Notes.

                                      NELNET EDUCATION LOAN FUNDING, INC.

Dated:                                By
      ------------------------           ---------------------------------------

<PAGE>

                                                                    Exhibit 4.11

                                    EXHIBIT G

                        NOTICE OF CHANGE IN AUCTION DATE

                       NELNET EDUCATION LOAN FUNDING, INC.
                         STUDENT LOAN ASSET-BACKED NOTES
                         SUBORDINATE CLASS 2004B[-1][-2]
                               AUCTION RATE NOTES

         Notice is hereby  given by [ ], as  Broker-Dealer  for the Auction Rate
Notes,  that with respect to the Auction Rate Notes,  the Auction Date is hereby
changed as follows:

         1.  With  respect  to Class  2004B[-1][-2]  Notes,  the  definition  of
"Auction Date" shall be deemed amended by substituting  "_______________(number)
Business    Day"   in   the   second   line   thereof   and   by    substituting
"_______________(number)  Business  Days" for "two Business  Days" in subsection
(d) thereof.

         2. This change shall take effect on _______________  which shall be the
Auction Date for the Auction Period commencing on _______________.

         3. The Auction Date for the Class  2004B[-1][-2] Notes shall be subject
to further change hereafter as provided in the Indenture of Trust.

         4. Terms not defined in this Notice shall have the meaning set forth in
the Indenture of Trust, as amended, relating to the Class 2004B[-1][-2] Notes.

                                 [BROKER-DEALER], as Broker-Dealer

Dated:                           By
      -------------------           --------------------------------------------

<PAGE>
                                                                    Exhibit 4.11

                                    EXHIBIT H

                      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 January 1,
2004, as amended (the "Indenture"), among Nelnet Student Loan Funding, Inc. (the
"Issuer"),  Wells  Fargo Bank  Minnesota,  National  Association,  as  indenture
trustee (the  "Indenture  Trustee"),  and Wells Fargo Bank  Minnesota,  National
Association,  as eligible  lender 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 and the Student Loan Purchase Agreement.  In your
capacity as  Indenture  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 such  Eligible  Loans to be
acquired, the Issuer hereby certifies as follows:

         1. The Eligible Loans 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 (or, if a Financed
Eligible Loan is being pledged or sold in exchange for an Acquired Eligible Loan
under the  Indenture,  the  aggregate  unpaid  principal  amount of, and accrued
interest on, such Financed Eligible Loan does not exceed the amount permitted by
Section 5.02 of the  Indenture)  and is being  acquired at a price which permits
the  results of the cash flow  analysis  provided  to each  Rating  Agency to be
sustained.

         3. Each Acquired  Eligible  Loan is an Eligible  Loan  authorized to be
acquired by and is in compliance with the provisions of the Indenture.

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

                  (a)  a  copy  of  the  Student  Loan  Purchase  Agreement,  if
         applicable,  between the Issuer and the Eligible Lender with respect to
         the Acquired Eligible Loans;

                  (b) a request for and release of lien from an eligible  lender
         trustee and  evidence of pledge to the  Indenture,  if  applicable,  as
         attached hereto as Annex A;

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

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

                                      H-1
<PAGE>
                                                                    Exhibit 4.11

                  (e) 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  Indenture  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);

                  (f) 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  corresponding
         Guarantee Agreement is in effect with respect thereto; (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; (iv) the acquisition of the
         Acquired  Eligible  Loans does not contravene the provisions of Section
         5.02 of the Indenture; and (v) the purchase price paid for the Acquired
         Eligible  Loans is  reasonably  equal to the fair market  value of such
         Acquired Eligible Loans.

                  (g) evidence that the promissory notes evidencing the Acquired
         Eligible   Loans  have  had   stamped   thereon   or  affixed   thereto
         (individually or by blanket  endorsement) a notice specifying that they
         have  been  assigned  to  the  Indenture  Trustee  with  all  necessary
         endorsements; and

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

         5. The  Issuer  is not,  on the  date  hereof,  in  default  under  the
Indenture  or, if  applicable,  in the  performance  of any of its covenants and
agreements made in the Student Loan Purchase  Agreement relating 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(e) hereof.

         6. If applicable,  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 or pledged in exchange for
an Acquired  Eligible Loan such sale and exchange shall not adversely affect the
ability of the Trust Estate to make timely  principal  and interest  payments on
its Obligations.

                                      H-2
<PAGE>
                                                                    Exhibit 4.11

         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 corresponding 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.

         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 Closing
Date to be sustained.

         WITNESS my hand this _____ day of ___________.

                                       NELNET EDUCATION LOAN FUNDING, INC.

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

                                      H-3
<PAGE>
                                                                    Exhibit 4.11

                                   SCHEDULE A

                          ELIGIBLE Loans To Be Acquired

                                      H-4
<PAGE>
                                                                    Exhibit 4.11

                                     ANNEX A

              REQUEST FOR AND NOTICE OF RELEASE OF PREVIOUS PLEDGE
                        AND ACKNOWLEDGMENT OF NEW PLEDGE

         Reference  is made to the  Indenture  of Trust,  dated as of January 1,
2004 (as amended, the "Indenture"), among Nelnet Education Loan Funding, Inc. as
issuer (the "Issuer"),  Wells Fargo Bank  Minnesota,  National  Association,  as
indenture  trustee (the  "Indenture  Trustee")  and Wells Fargo Bank  Minnesota,
National   Association,   as  eligible  lender  trustee  (the  "Eligible  Lender
Trustee").  Capitalized  terms used but not otherwise  defined herein shall have
the meanings assigned to them in the Indenture.

         By delivery of the Eligible Loan  Acquisition  Certificate,  the Issuer
has directed the Indenture  Trustee to finance the Eligible Loans  identified in
Schedule A to the Eligible Loan Acquisition  Certificate (the "Acquired Eligible
Loans"). The Issuer hereby directs the Indenture Trustee to release the Acquired
Eligible Loans from the security  interest  granted by the Issuer to Wells Fargo
Bank Minnesota,  National  Association  pursuant to that certain [DESCRIPTION OF
FINANCING DOCUMENT] dated as of ____________ (the "Prior Financing") between the
Issuer,  as issuer under the Prior  Financing,  and Wells Fargo Bank  Minnesota,
National Association, as trustee under the Prior Financing (the "Prior Financing
Trustee").  The Issuer has satisfied the  applicable  conditions  for release of
such Eligible Loans from the Prior Financing. The Prior Financing Trustee hereby
releases the Acquired  Eligible Loans from the pledge of the Prior  Financing as
of the date specified below.

         By delivery of the Eligible Loan  Acquisition  Certificate,  the Issuer
has also directed the Indenture  Trustee to acquire the Acquired  Eligible Loans
as Financed  Eligible  Loans  pursuant to the Indenture  immediately  upon their
release from the Prior Financing. The Indenture Trustee hereby acknowledges that
such  Acquired  Eligible  Loans have been pledged by the Issuer as a part of the
Trust  Estate from and after the date  specified  below to secure the payment of
Series 2004-1 Notes issued under the Indenture.

                                      H-5
<PAGE>
                                                                    Exhibit 4.11

         IN WITNESS  WHEREOF,  the undersigned  have caused this Request for and
Notice of Release of  Previous  Pledge  and  Acknowledgment  of New Pledge to be
executed by their duly authorized offices as of the date specified below.

                                 NELNET EDUCATION LOAN FUNDING, INC.,
                                 as issuer under the
                                 Prior Financing and as
                                 Issuer under the Indenture

                                 By:
                                     ------------------------------------------
                                 Title:
                                        ---------------------------------------

                                 WELLS FARGO BANK MINNESOTA,
                                 NATIONAL ASSOCIATION, as the Prior
                                 Financing Trustee under the
                                 Prior Financing and as Indenture Trustee
                                 under the Indenture

                                 By:
                                     ------------------------------------------
                                 Title:
                                        ---------------------------------------

Date:
      --------------------------------------

                                      H-6
<PAGE>
                                                                    Exhibit 4.11

                                    EXHIBIT I

                         FORM OF ADMINISTRATOR'S MONTHLY
                       SERVICING PAYMENT DATE CERTIFICATE

         This  Administrator's  Monthly Servicing Payment Date Certificate (this
"Certificate")  is being provided by National  Education Loan Network,  Inc., as
Administrator (the  "Administrator") to Nelnet Education Loan Funding, Inc. (the
"Issuer")  pursuant to Section  5.04(b) of the  Indenture of Trust,  dated as of
January 1, 2004 (the "Indenture"), among the Issuer, Wells Fargo Bank Minnesota,
National  Association,   as  eligible  lender  trustee,  and  Wells  Fargo  Bank
Minnesota,  National  Association,  as trustee (the  "Indenture  Trustee").  All
capitalized  terms used in this Certificate and not otherwise defined shall have
the same meanings as assigned to such terms in the Indenture.

         Pursuant to this  Certificate,  the  Administrator  hereby  directs the
Indenture Trustee to distribute to ____________________,  by 1:00 p.m. (New York
time) on __________, __________ (the "Monthly Servicing Payment Date"), from and
to the extent of the Revenues on deposit in the Collection Fund, the $__________
Servicing Fee due with respect to the preceding calendar month.

         The  Revenues  available  to pay  the  Servicing  Fee on  this  Monthly
Servicing Payment Date are equal to $----------.

         The Administrator  hereby certifies that the information herein is true
and  accurate  in all  material  respects  and that the  Indenture  Trustee  may
conclusively  rely on  this  Certificate  with no  further  duty to  examine  or
determine the information contained herein.

         IN WITNESS WHEREOF, the Administrator has caused this Certificate to be
duly executed and delivered as of the date written below.

                               NATIONAL EDUCATION LOAN
                               NETWORK, INC., as Administrator

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

[DATE]

<PAGE>
                                                                    Exhibit 4.11

                                    EXHIBIT J

              FORM OF ADMINISTRATOR'S DISTRIBUTION DATE CERTIFICATE

         This Administrator's Distribution Date Certificate (this "Certificate")
is being  provided by National  Education Loan Network,  Inc., as  Administrator
(the  "Administrator")  to Nelnet  Education  Loan Funding,  Inc. (the "Issuer")
pursuant to Section  5.04(c) of the  Indenture of Trust,  dated as of January 1,
2004 (the "Indenture"),  among the Issuer, Wells Fargo Bank Minnesota,  National
Association,  as  eligible  lender  trustee,  and Wells  Fargo  Bank  Minnesota,
National  Association,  as trustee (the  "Indenture  Trustee").  All capitalized
terms used in this  Certificate  and not  otherwise  defined shall have the same
meanings as assigned to such terms in the Indenture.

         Pursuant to this  Certificate,  the  Administrator  hereby  directs the
Indenture  Trustee  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
__________ __, _____ (the "Distribution  Date"), to the extent of (1) the amount
of Revenues in the  Collection  Fund,  (2) the  amount,  if any,  required to be
transferred  to the Collection  Fund from the Class B Supplemental  Reserve Fund
pursuant to Section 5.03(b) of the Indenture (3) the amount, if any, required to
be  transferred  to the Collection  Fund from the  Acquisition  Fund pursuant to
Section  5.02(b) of the  Indenture  and (4) the amount,  if any,  required to be
transferred  to the  Collection  Fund from the Note  Payment  Fund  pursuant  to
Section  5.05(b) of the  Indenture  and (5) the amount,  if any,  required to be
transferred  to the  Collection  Fund from the Reserve Fund  pursuant to Section
5.07(b)  of the  Indenture.  The  Indenture  Trustee  shall  make the  following
deposits and distributions in the following order of priority, and the Indenture
Trustee shall comply with such instructions:

<TABLE>
<CAPTION>
<S>                                                                                               <C>
(i)      (a)  The Servicing Fee to the Servicer,                                                  $      -
                                                                                                  ---------------
         (b)  The Indenture Trustee Fee to the Indenture Trustee,                                 $      -
                                                                                                  ---------------
         (c)  The Eligible Lender Trustee Fee to the Eligible Lender Trustee,                     $      -
                                                                                                  ---------------
         (d)  The Auction Agent Fee to the Auction Agent,                                         $      -
                                                                                                  ---------------
         (e)  The Broker-Dealer Fees to the Broker-Dealers,                                       $      -
                                                                                                  ---------------
         (f)  The Remarketing Fees to the Remarketing Agents;                                     $      -
                                                                                                  ---------------
         (g)  Other  Program  Expenses to the Person due such Program  Expenses;                  $      -
              and                                                                                 ---------------

         (h)  The Quarterly Funding Amount to the Remarketing Fee Fund;                           $      -
                                                                                                  ---------------
(ii)     (a)  The Administration Fee to the Administrator; and                                    $      -
                                                                                                  ---------------
         (b)  Any unpaid  Administration  Fees,  if any,  from  prior  Quarterly                  $      -
              Distribution  Dates  to the  Administrator  due  on the  Quarterly                  ---------------
              Distribution Date;
</TABLE>

<PAGE>
                                                                    Exhibit 4.11
<TABLE>
<CAPTION>
<S>                                                                                               <C>

(iii)    (a)  The Class A-1A Notes  Interest  Distribution  Amount accrued since                  $      -
              the prior Distribution Date to the Class A-1A Interest Account,                     ---------------

         (b)  The Class A-1B Notes  Interest  Distribution  Amount accrued since                  $      -
              the prior  Distribution  Date to the Class A-1B Interest  Account,                  ---------------
              and

         (c)  The Class A-2 Notes Interest Distribution Amount accrued since the                  $      -
              prior Distribution Date to the Class A-2 Interest Account, and                      ---------------

         (d)  The Class A-3 Notes Interest Distribution Amount accrued since the                  $      -
              prior Distribution Date to the Class A-3 Interest Account, and                      ---------------

         (e)  The Issuer  Derivative  Payments  which are paid on a parity  with                  $      -
              interest  on  the  Class  A  Notes  which  have  accrued  on  each                  ---------------
              Derivative  Product  since  the  prior  Distribution  Date  to the
              corresponding Counterparty Payment Account;

(iv)     (a)  The  Outstanding  Amount of the Class A-1A Notes to the Class A-1A                  $      -
              Redemption Account,                                                                 ---------------

         (b)  The  Outstanding  Amount of the Class A-1B Notes to the Class A-1B                  $      -
              Redemption Account;                                                                 ---------------

         (c)  The  Outstanding  Amount  of the  Class A-2 Notes to the Class A-2                  $      -
              Redemption Account;                                                                 ---------------

         (d)  The  Outstanding  Amount  of the  Class A-3 Notes to the Class A-3                  $      -
              Redemption Account;                                                                 ---------------

(v)      (a)  The Class B-1 Notes Interest Distribution Amount accrued since the                  $      -
              prior Distribution Date to the Class B-1 Interest Account,                          ---------------

         (b)  The Class B-2 Notes Interest Distribution Amount accrued since the                  $      -
              prior Distribution Date to the Class B-2 Interest Account, and                      ---------------

         (c)  The Issuer  Derivative  Payments  which are paid on a parity  with                  $      -
              interest  on  the  Class  B  Notes  which  have  accrued  on  each                  ---------------
              Derivative  Product  since  the  prior  Distribution  Date  to the
              corresponding Counterparty Payment Account;

(vi)     (a)  The  Outstanding  Amount  of the  Class B-1 Notes to the Class B-1                  $      -
              Redemption Account, and                                                             ---------------

         (b)  The  Outstanding  Amount  of the  Class B-2 Notes to the Class B-2                  $      -
              Redemption Account; and                                                             ---------------

(vii)    The amount to be distributed to the  Administrator  for transfer to the                  $      -
         appropriate  Seller or trust  estate  from  which  Eligible  Loans were                  ---------------
         purchased  or  transferred,  an  amount  equal to the  unpaid  interest
         accrued on such Eligible Loans Financed with the proceeds of the Series
         2004-1 Notes subsequent to the cut off date for such Eligible Loans but
         prior to the Closing Date, until such amount has been paid in full.

(viii)   (a)  The  Supplemental  Interest  Deposit  Amount  to  the  Class  A-1A                  $      -
              Supplemental Interest Account,                                                      ---------------

         (b)  The  Supplemental  Interest  Deposit  Amount  to  the  Class  A-1B                  $      -
              Supplemental Interest Account;                                                      ---------------
</TABLE>

                                      J-2
<PAGE>
                                                                    Exhibit 4.11

<TABLE>
<CAPTION>
<S>                                                                                               <C>
         (c)  The  Supplemental   Interest  Deposit  Amount  to  the  Class  A-2                  $      -
              Supplemental Interest Account;                                                      ---------------

         (d)  The  Supplemental   Interest  Deposit  Amount  to  the  Class  A-3                  $      -
              Supplemental Interest Account;                                                      ---------------

(ix)     Amounts to be deposited to the Reserve Fund (if  necessary to reinstate                  $      -
         the balance of the Reserve Fund up to the Reserve Fund Requirement);                     ---------------

(x)      (a)  The Reset Rate Notes  Carry-over  Amount (and any accrued interest                  $      -
              thereon) due and payable on the Class A-1A Notes to the Class A-1A                  ---------------
              Interest Account,

         (b)  The Reset Rate Notes  Carry-over  Amount (and any accrued interest                  $      -
              thereon) due and payable on the Class A-1B Notes to the Class A-1B                  ---------------
              Interest Account;

         (c)  The Reset Rate Notes  Carry-over  Amount (and any accrued interest                  $      -
              thereon)  due and  payable on the Class A-2 Notes to the Class A-2                  ---------------
              Interest Account;

         (d)  The Reset Rate Notes  Carry-over  Amount (and any accrued interest                  $      -
              thereon)  due and  payable on the Class A-3 Notes to the Class A-3                  ---------------
              Interest Account;

(xi)     (a)  The Auction Rate Notes Carry-over Amount (and any accrued interest                  $      -
              thereon)  due and  payable on the Class B-1 Notes to the Class B-1                  ---------------
              Interest Account, and

         (b)  The Auction Rate Notes Carry-over Amount (and any accrued interest                  $      -
              thereon) due   and payable on the Class B-2 Notes to the Class B-2                  ---------------
              Interest Account;

(xii)    The unpaid  amounts  (including  any  Termination  Payments) due on any                  $      -
         Derivative  Products on which Issuer Derivative  Payments are paid on a                  ---------------
         parity with interest on the Class A Notes Amounts to the  corresponding
         Counterparty Payment Account;

(xiii)   The unpaid  amounts  (including  any  Termination  Payments) due on any                  $      -
         Derivative  Products on which Issuer Derivative  Payments are paid on a                  ---------------
         parity with interest on the Class B Notes Amounts to the  corresponding
         Counterparty Payment Account;

(xiv)    The amount to be distributed to the  Administrator  to reimburse it for                  $      -
         any  payments  made by it to the  Remarketing  Agents  pursuant  to the                  ---------------
         Remarketing Agreement.

(xv)     The amount to be  distributed to the Servicer,  to repurchase  Eligible                  $      -
         Loans that the Issuer is required to  repurchase  from the  Servicer in                  ---------------
         accordance with the terms of the Servicing Agreement;
</TABLE>

                                      J-3
<PAGE>
                                                                    Exhibit 4.11
<TABLE>
<CAPTION>
<S>                                                                                               <C>

(xvi)    Amounts to be deposited to the Class B  Supplemental  Reserve Fund, the                  $      -
         amount, if any, required by Section 5.03(a) hereof;                                      ---------------

(xvii)   The amount to be distributed to the Issuer  pursuant to Section 5.09 of                  $      -
         the Indenture.                                                                           ---------------

(xviii)  The amount to be transferred to the Acquisition  Fund (Prior to the end                  $      -
         of the Revolving  Period) or the Note Payment Fund  (Subsequent  to the                  ---------------
         end of the Revolving Period).

         Total Distributions                                                                      $      -
                                                                                                  ===============
         Amount on deposit in the Collection Fund on this Distribution Date.                      $      -
                                                                                                  ===============
</TABLE>

         Pursuant to this Certificate,  if applicable, the Administrator further
hereby  directs  the  Indenture  Trustee  to  withdraw  (a)  from  the  Class  B
Supplemental Reserve Fund for deposit to the Collection Fund pursuant to Section
5.03(b) of the Indenture an amount equal to $__________, representing the amount
of  insufficient  Revenues  in the  Collection  Account  to make  the  transfers
required  by  Section  5.04(c)(v)  and (x),  (b) from the  Acquisition  Fund for
deposit to the Collection  Fund pursuant to Section  5.02(b) of the Indenture an
amount equal to $__________, representing the amount of insufficient Revenues in
the  Collection  Account to make the  transfers  required by Section  5.04(c)(i)
though (ix) (c) from the Note  Payment Fund for deposit to the  Collection  Fund
pursuant to Section  5.05(b) of the  Indenture an amount  equal to  $__________,
representing  the amount of insufficient  Revenues in the Collection  Account to
make the transfers  required by Section  5.04(c)(i) though (ix) and (d) from the
Reserve Fund for deposit to the Collection  Fund pursuant to Section  5.07(b) of
the  Indenture  an  amount  equal to  $__________,  representing  the  amount of
insufficient  Revenues in the Collection  Account to make the transfers required
by Section 5.04(c)(i) though (vi).

         The Administrator  hereby certifies that the information herein is true
and  accurate  in all  material  respects  and that the  Indenture  Trustee  may
conclusively  rely on  this  Certificate  with no  further  duty to  examine  or
determine the information contained herein.

         IN WITNESS WHEREOF, the Administrator has caused this Certificate to be
duly executed and delivered as of the date written below.

                                     NATIONAL EDUCATION LOAN
                                     NETWORK, INC., as Administrator

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

                                      J-4
<PAGE>
                                                                    Exhibit 4.11

                                    EXHIBIT K

                     FORM OF STUDENT LOAN PURCHASE AGREEMENT

================================================================================

                             LOAN PURCHASE AGREEMENT

                                 by and between

                       NELNET EDUCATION LOAN FUNDING, INC.

                                       and

                                    [SELLER],

                           Dated _____________________

================================================================================

<PAGE>
                                                                    Exhibit 4.11

<TABLE>
<CAPTION>

<S>                   <C>                                                                                        <C>
Section 1.            Definitions.................................................................................1
Section 2.            Purchase of FFELP Loans.....................................................................5
Section 3.            Representations, Warranties, Covenants and Agreements of the Seller.........................6
Section 4.            Conditions of Purchase......................................................................7
Section 5.            Rejection of FFELP Loans....................................................................9
Section 6.            Repurchase Obligation.......................................................................9
Section 7.            Notification to Borrowers..................................................................10
Section 8.            Obligations To Forward Payments and Communications.........................................10
Section 9.            Payment of Expenses and Taxes..............................................................11
Section 10.           Indemnification............................................................................11
Section 11.           Special Provisions Relating to MPN Loans...................................................11
Section 12.           Other Provisions...........................................................................12
Section 13.           Security Interest..........................................................................15
Section 14.           Information and Reporting..................................................................16

EXHIBIT A             LOAN TRANSFER ADDENDUM
EXHIBIT B             SELLER'S CLOSING CERTIFICATE
EXHIBIT C             BLANKET ENDORSEMENT OF STUDENT LOAN PROMISSORY NOTES
EXHIBIT D             BILL OF SALE
EXHIBIT E             REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS OF SELLER
EXHIBIT F             ACKNOWLEDGMENT
</TABLE>

                                      K-2
<PAGE>
                                                                    Exhibit 4.11

                             LOAN PURCHASE AGREEMENT

         THIS LOAN PURCHASE  AGREEMENT (the "Loan Purchase  Agreement") made and
entered  into as of this  _____ day of  _______________,  20__,  by and  between
NELNET EDUCATION LOAN FUNDING, INC., formerly known as NEBHELP, INC., a Nebraska
corporation  (the  "Corporation")   acting  by  and  through  WELLS  FARGO  BANK
MINNESOTA, NATIONAL ASSOCIATION, not individually but as Eligible Lender Trustee
(the "Eligible  Lender  Trustee")  under the Trust  Agreement or Eligible Lender
Trust  Agreement,  as  applicable  from  time to time (as  defined  herein)  and
[SELLER],  a  ____________________________  corporation,  organized and existing
under the laws of the State of  Nevada,  and  having  its  principal  offices at
______________________ (the "Seller").

                              W I T N E S S E T H :

         WHEREAS,  the Corporation,  by and through the Eligible Lender Trustee,
desires to purchase from the Seller certain FFELP Loans,  title to which will be
held by the Eligible Lender Trustee  pursuant to the applicable  Trust Agreement
or Eligible Lender Trust  Agreement (as defined below),  as applicable from time
to time, and the Seller desires to sell certain FFELP Loans to the  Corporation,
title to which will be held by and  through  the  Eligible  Lender  Trustee,  in
accordance with the terms and conditions of this Loan Purchase Agreement; and

         WHEREAS,  the  Corporation  expects  to  finance  from time to time its
purchase  and  ownership  of the FFELP  Loans  purchased  hereunder  through the
funding made available under one or more of the Financing Agreements.

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

         Section 1. Definitions.

         "Borrower" means the student or parent obligor under an Eligible Loan.

         "Certificate  of  Insurance"   means  a  certificate  of  federal  loan
insurance  issued with respect to an Eligible Loan by the Secretary of Education
pursuant to the provisions of the Higher Education Act.

         "Contract of  Insurance"  means an agreement  between the  Secretary of
Education and either the Eligible Lender Trustee or the Seller providing for the
insurance by the Secretary of Education of the principal of and accrued interest
on a FFELP Loan to the maximum extent permitted under the Higher Education Act.

         "Corporation" means Nelnet Education Loan Funding, Inc., f/k/a NEBHELP,
INC., a Nebraska corporation.

         "Eligible  Lender  Trust  Agreement"  means the  Eligible  Lender Trust
Agreement,  dated as of January 1, 2004, between the Eligible Lender Trustee and
the Corporation, as amended and supplemented pursuant to the terms thereof.

                                      K-3
<PAGE>
                                                                    Exhibit 4.11

         "Eligible  Lender Trustee" means Wells Fargo Bank  Minnesota,  National
Association,  acting in its capacity as eligible  lender trustee under the Trust
Agreement or Eligible  Lender Trust  Agreement,  as  applicable,  and not in its
individual capacity.

         "Eligible  Loan"  means a FFELP Loan  authorized  to be acquired by the
Corporation by and through the Indenture  Trustee which (a) is either Insured or
Guaranteed;  (b) if such FFELP Loan is a subsidized Stafford loan, qualifies the
holder  thereof to receive  Interest  Subsidy  Payments  and  Special  Allowance
Payments;  if such FFELP Loan is a consolidation  loan authorized  under Section
428C of the  Higher  Education  Act,  qualifies  the  holder  thereof to receive
Interest  Subsidy  Payments  and  Special  Allowance   Payments  to  the  extent
applicable;  and if such FFELP Loan is a PLUS loan authorized under Section 428B
of the Higher  Education  Act, a SLS loan  authorized  under Section 428A of the
Higher Education Act, or an unsubsidized  Stafford loan authorized under Section
428H of the Higher  Education  Act, such FFELP Loan qualifies the holder thereof
to receive Special Allowance Payments; (c) complies with each representation and
warranty with respect thereto contained herein; and (d) meets the other criteria
set forth in the Loan Purchase  Regulations  and is eligible for purchase  under
the terms of the applicable Financing Agreement.

         "Federal  Contracts" means all agreements between a Guaranty Agency and
the  Secretary  of  Education  providing  for the  payment by the  Secretary  of
Education of amounts authorized to be paid pursuant to the Higher Education Act,
including,  but not limited to,  reimbursement  of amounts  paid or payable upon
defaulted  Eligible  Loans and other  student loans insured or guaranteed by any
Guaranty  Agency and federal  interest  subsidy  payments and Special  Allowance
Payments,  if applicable,  to holders of qualifying  student loans guaranteed by
any Guaranty Agency.

         "FFELP  Loans"  means those  specific  loans  acquired by the  Eligible
Lender Trustee,  on behalf of the Corporation,  from the Seller pursuant to this
Loan Purchase Agreement, inclusive of the promissory notes evidencing such loans
and the  related  documentation  in  connection  with each  thereof,  which were
originated  under the Higher Education Act or insured by the Secretary of Health
and Human Services pursuant to the Public Health Services Act.

         "Financing  Agreement"  means,   collectively  and  individually,   the
following:  (a) the Amended and Restated  Warehouse Loan and Security  Agreement
dated as of April 28,  2003,  by and  among the  Eligible  Lender  Trustee,  the
Corporation  as  Borrower,  NELnet  Student  Loan  Warehouse  Corporation-1,  as
original borrower,  Zions First National Bank as trustee,  Royal Bank of Canada,
as Alternate  Lender and Facility Agent, and Thunder Bay Funding Inc., as Lender
(the "RBC  Warehouse  Loan  Agreement");  (b) the  Warehouse  Note  Purchase and
Security Agreement, dated as of May 1, 2003, among the Corporation, as Borrower,
the Eligible  Lender Trustee,  as eligible lender trustee and indenture  trustee
thereunder,  YC SUSI  Trust,  as  Conduit  Lender,  Bank of  America,  N.A.,  as
Alternate  Lender and Facility Agent,  Gemini  Securitization  Corp., as Conduit
Lender,  Deutsche  Bank AG, New York Branch,  as  Alternate  Lender and Facility
Agent,  Barton Capital  Corporation,  as Conduit Lender,  Societe  Generale,  as
Alternate   Lender  and  Facility   Agent,   and  Bank  of  America,   N.A.,  as
Administrative  Agent; (c) the Trust Indenture between NEBHELP, INC. as assignee
and Wells  Fargo  Bank  Minnesota,  National  Association,  f/k/a  Norwest  Bank
Minnesota,  National Association,  as successor trustee, dated as of December 1,
1986; (d) the Trust Indenture dated as of June 1, 1993, between

                                      K-4
<PAGE>
                                                                    Exhibit 4.11

NEBHELP, INC. as assignee and Wells Fargo Bank Minnesota,  National Association,
f/k/a  Norwest  Bank  Minnesota,  National  Association,  as trustee;  (e) Trust
Indenture  between  NEBHELP,  INC. as assignee  and Wells Fargo Bank  Minnesota,
National Association,  f/k/a Norwest Bank Minnesota,  National  Association,  as
successor  trustee,  dated as of November 15, 1985; (f) Trust Indenture  between
NEBHELP, INC. as assignee and Wells Fargo Bank Minnesota,  National Association,
f/k/a Norwest Bank Minnesota,  National Association, as successor trustee, dated
as of July 1, 1988; (g) Trust Indenture  between  NEBHELP,  INC. as assignee and
Wells Fargo Bank Minnesota, National Association,  f/k/a Norwest Bank Minnesota,
National  Association,  as trustee,  dated as of  September  1, 1993;  (h) Trust
Indenture  between  NEBHELP,  INC. as assignee  and Wells Fargo Bank  Minnesota,
National Association,  f/k/a Norwest Bank Minnesota,  National  Association,  as
trustee,  dated as of May 1, 1997;  and (i) the Indenture of Trust,  dated as of
June 1,  2003,  among the  Corporation,  Wells  Fargo Bank  Minnesota,  National
Association,  as indenture  trustee,  and Wells Fargo Bank  Minnesota,  National
Association,  as eligible lender trustee; as the same may be amended,  modified,
supplemented,  restated or otherwise altered, which is utilized to finance, from
time to time,  the  Corporation's  purchase  of the FFELP  Loans under this Loan
Purchase Agreement.

         "Guarantee" or  "Guaranteed"  means,  with respect to a FFELP Loan, the
guarantee by a Guaranty  Agency,  in accordance with the terms and conditions of
the  Guaranty  Agency's  Guarantee  Agreement,  of the  principal of and accrued
interest  on the FFELP Loan to the  maximum  extent  permitted  under the Higher
Education  Act on FFELP Loans which have been  originated,  held and serviced in
full  compliance  with the Higher  Education  Act, and the coverage of the FFELP
Loan by the Federal Contracts  providing,  among other things, for reimbursement
to a Guaranty  Agency for losses  incurred  by it on  defaulted  Eligible  Loans
guaranteed  by it to the  extent of the  maximum  reimbursement  allowed  by the
Federal Contracts.

         "Guaranty   Agency"  means  a  state  agency  or  a  private  nonprofit
institution or organization which administers a Guarantee Program within a State
or any  successors and assignees  thereof  administering  the Guarantee  Program
which has entered into a Guarantee Agreement with the Eligible Lender Trustee on
behalf of the Corporation.

         "Guarantee Agreement" means the Federal Contracts, an agreement between
a Guaranty Agency and either the Eligible Lender Trustee or the Seller providing
for the  Guarantee  by such  Guaranty  Agency of the  principal  of and  accrued
interest on Eligible Loans to Borrowers, made or acquired by the Eligible Lender
Trustee or the Seller  from time to time,  and any other  similar  guarantee  or
agreement  issued by a Guaranty Agency to the Corporation or the Eligible Lender
Trustee pertaining to Financed Eligible Loans.

         "Guaranteed Loans" means FFELP Loans that are Guaranteed.

         "Guarantee  Program"  means a Guaranty  Agency's  student loan guaranty
program  pursuant to which such Guaranty  Agency  guarantees or insures  student
loans.

         "Higher  Education  Act" shall mean Title IV,  Parts B, F and G, of the
Higher Education Act of 1965, as amended or supplemented and in effect from time
to time, or any successor  enactment  thereto,  and all regulations  promulgated
thereunder and any directives issued by the Secretary of Education.

                                      K-5
<PAGE>
                                                                    Exhibit 4.11

         "Insurance" or "Insured" or "Insuring"  means,  with respect to a FFELP
Loan,  the insuring by the Secretary of Education (as evidenced by a Certificate
of Insurance or other document or  certification  issued under the provisions of
the Higher Education Act) under the Higher Education Act of the principal of and
accrued  interest on such FFELP Loan to the maximum extent  permitted  under the
Higher  Education  Act for FFELP  Loans  originated,  held and  serviced in full
compliance with the Higher Education Act.

         "Insured Loans" means FFELP Loans which are Insured.

         "Interest  Subsidy  Payments" means interest subsidy payments  received
from the Secretary of Education  pursuant to Section 428 of the Higher Education
Act or similar payments authorized by federal law or regulation.

         "Loan Purchase  Agreement" means this Loan Purchase Agreement including
all exhibits and schedules  attached  hereto,  and any addenda,  supplements  or
amendments hereto.

         "Loan  Purchase  Date"  means the date as  described  in  Section  2(b)
hereof.

         "Loan  Purchase  Regulations"  means the rules and  regulations  of the
Corporation,  as may be adopted by the  Corporation  from time to time (with the
consent of any  persons  required  under the terms of the  applicable  Financing
Agreement),   which  pertain  to  the  Program,   which  shall  incorporate  all
requirements  specified in any  indentures or other  financing  arrangements  to
which the Corporation is subject.

         "Loan Transfer Schedule" means a written schedule on a form provided by
the  Corporation or its servicing  agent  identifying  the Borrower on the FFELP
Loans to be purchased hereunder.

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

         "MPN Loan" means a FFELP Loan evidenced by a Master Note.

         "Program" means the  Corporation's  Eligible Loan  acquisition  program
under which the Eligible  Lender Trustee has acquired and will acquire  Eligible
Loans to assist students in obtaining a post secondary education.

         "Secretary of Education"  means the  Commissioner  of Education and the
Secretary of the United  States  Department of Education  (who  succeeded to the
functions  of the  Commissioner  of  Education  pursuant  to the  Department  of
Education  Organization Act), or any officer,  board, body, commission or agency
succeeding to the functions thereof under the Higher Education Act.

         "Seller" means  [SELLER],  a _____________  [corporation],  which is an
"eligible  lender" under the criteria  established  by the Higher  Education Act
that has received an eligible  lender  designation by the Secretary of Education
with  respect  to  Insured  Loans or from a  Guaranty

                                      K-6
<PAGE>
                                                                    Exhibit 4.11

Agency with respect to Guaranteed Loans,  identified in the introduction to this
Loan  Purchase  Agreement,  which  has sold and is  selling  FFELP  Loans to the
Corporation  hereunder  or, if Seller is not  designated  as an eligible  lender
under the Higher Education Act, Seller holds beneficial ownership of FFELP Loans
through its  eligible  lender  trustee,  which is an eligible  lender  under the
Higher Education Act.

         "Special   Allowance   Payments"  means  special   allowance   payments
authorized to be made by the  Secretary of Education  pursuant to Section 438 of
the Higher Education Act or similar  allowances  authorized from time to time by
federal law or regulation.

         "Trust  Agreement" means one of the following,  as applicable:  (a) the
Amended and Restated Warehouse Loan and Security Agreement dated as of April 28,
2003, by and among the Eligible  Lender  Trustee,  the  Corporation as Borrower,
NELnet Student Loan Warehouse  Corporation 1, as original borrower,  Zions First
National Bank as trustee, Royal Bank of Canada, as Alternate Lender and Facility
Agent,  and  Thunder  Bay  Funding  Inc.,  as Lender  (the "RBC  Warehouse  Loan
Agreement");  (b) the Warehouse Note Purchase and Security Agreement dated as of
May 1, 2003, among the Corporation, as Borrower, the Eligible Lender Trustee, as
eligible  lender  trustee  and  indenture  trustee  thereunder,  Quincy  Capital
Corporation,  as Conduit Lender, Bank of America,  N.A., as Alternate Lender and
Facility Agent, Gemini  Securitization  Corp., as Conduit Lender,  Deutsche Bank
AG, New York Branch,  as Alternate  Lender and Facility  Agent,  Barton  Capital
Corporation,  as Conduit  Lender,  Societe  Generale,  as  Alternate  Lender and
Facility Agent,  and Bank of America,  N.A., as  Administrative  Agent;  (c) the
Trust  Indenture  between  NEBHELP,  INC.  as  assignee  and  Wells  Fargo  Bank
Minnesota,   National  Association,   f/k/a  Norwest  Bank  Minnesota,  National
Association,  as successor trustee,  dated as of December 1, 1986; (d) the Trust
Indenture dated as of June 1, 1993, between NEBHELP,  INC. as assignee and Wells
Fargo Bank  Minnesota,  National  Association,  f/k/a  Norwest  Bank  Minnesota,
National  Association,  as trustee; (e) Trust Indenture between NEBHELP, INC. as
assignee and Wells Fargo Bank  Minnesota,  National  Association,  f/k/a Norwest
Bank Minnesota, National Association, as successor trustee, dated as of November
15, 1985; (f) Trust Indenture between NEBHELP,  INC. as assignee and Wells Fargo
Bank Minnesota,  National  Association,  f/k/a Norwest Bank Minnesota,  National
Association, as successor trustee, dated as of July 1, 1988; (g) Trust Indenture
between  NEBHELP,  INC. as assignee  and Wells  Fargo Bank  Minnesota,  National
Association,  f/k/a Norwest Bank Minnesota,  National  Association,  as trustee,
dated as of September 1, 1993;  (h) Trust  Indenture  between  NEBHELP,  INC. as
assignee and Wells Fargo Bank  Minnesota,  National  Association,  f/k/a Norwest
Bank Minnesota,  National Association,  as trustee, dated as of May 1, 1997; and
(i) the  Indenture of Trust,  dated as of June 1, 2003,  among the  Corporation,
Wells Fargo Bank Minnesota,  National  Association,  as indenture  trustee,  and
Wells Fargo Bank Minnesota, National Association, as eligible lender trustee.

         Section 2. Purchase of FFELP Loans.

                  (a) Subject to the terms and  conditions  and in reliance upon
         the  representations,  warranties and agreements set forth herein,  the
         Seller (i) has sold to the Eligible Lender Trustee, acting on behalf of
         the  Corporation,  and  the  Corporation,  acting  by and  through  the
         Eligible  Lender  Trustee  under  the  applicable  Trust  Agreement  or
         Eligible Loan Trust Agreement,  has purchased from the Seller the FFELP
         Loans which

                                      K-7
<PAGE>
                                                                    Exhibit 4.11

         are  Eligible  Loans and  specified  in Annex I to this  Loan  Purchase
         Agreement;  and (ii)  agrees to sell to the  Eligible  Lender  Trustee,
         acting on behalf of the Corporation, and the Corporation, acting by and
         through  the  Eligible  Lender  Trustee  under the Trust  Agreement  or
         Eligible  Lender  Trust  Agreement,  as  applicable,  on  behalf of the
         Corporation,  agrees to buy from the Seller, a portfolio of FFELP Loans
         which are Eligible Loans in the aggregate  unpaid  principal  amount as
         set  forth  in the Loan  Transfer  Addendum  in the  form set  forth in
         Exhibit A hereto. Additional portfolios of FFELP Loans may be purchased
         from  the  Seller  hereunder  by the  Corporation  by and  through  the
         Eligible Lender Trustee from time to time in the future, if the parties
         hereto execute and deliver a subsequent Loan Transfer Addendum for each
         such purchase of a portfolio in the form set forth in Exhibit A hereto,
         reflecting  the aggregate  unpaid  principal  balance of Eligible Loans
         contained in such  portfolio  and the Loan  Purchase  Date,  and if the
         Seller executes and delivers to the Corporation all documents  required
         under Section 4 hereof as of the  applicable  Loan Purchase  Date.  Any
         subsequent purchase of an additional  portfolio of FFELP Loans shall be
         governed in all respects by this Loan Purchase  Agreement together with
         the Loan Transfer  Addendum  pertaining to such  portfolio.  The Seller
         shall deliver a Loan  Transfer  Schedule to the  Corporation,  not less
         than 30 days prior to the applicable  Loan Purchase Date.  Consummation
         of the sale of each FFELP Loan shall require  execution and delivery to
         the  Corporation  of the Seller's  Closing  Certificate  in the form of
         Exhibit B hereto (and delivery of the documents  described in Exhibit B
         hereto),  the blanket endorsement and bill of sale as well as execution
         and  delivery  by the Seller in the forms set forth in Exhibits C and D
         hereto,  respectively.  It is the  intention  of the  Seller  that  the
         transfer  from the Seller to the Eligible  Lender  Trustee on behalf of
         the  Corporation  constitutes a true sale of the FFELP Loans  hereunder
         and that  neither  the  interest  in nor title to the FFELP Loans shall
         become  or be deemed  property  of the  Seller  for any  purpose  under
         applicable law.

                  (b)  Delivery and payment for the FFELP Loans shall take place
         at a location and on a date (the "Loan Purchase  Date") to be specified
         by  the  Corporation  in  the  related  Loan  Transfer  Addendum.   The
         applicable  Loan  Purchase  Date  shall not be later  than the date set
         forth in the Loan Transfer Addendum pertaining to such FFELP Loans.

                  (c) Subject to the terms and  conditions of this Loan Purchase
         Agreement,  the  Corporation  agrees to purchase the FFELP Loans by and
         through the Eligible  Lender  Trustee at a price equal to _____% of the
         outstanding  unpaid  principal amount thereof on the Loan Purchase Date
         with proceeds  from the  obligations  issued  pursuant to the Financing
         Agreement,  or such other amount  agreed upon and specified in the Loan
         Transfer Addendum as set forth in Exhibit A hereto. The Seller shall be
         responsible  for  reporting  to the  Secretary  of  Education  and,  if
         required by the  provisions  of the Higher  Education  Act,  offsetting
         against Interest Subsidy Payments and Special  Allowance  Payments made
         to the Seller by the  Secretary of Education  the entire  amount of any
         origination  fee  which  is  authorized  to be  charged  by the  Higher
         Education  Act  with  respect  to  the  FFELP  Loans  sold   hereunder.
         Additionally,  the Seller shall,  as a condition to the purchase by the
         Corporation of any FFELP Loan, be required to pay to the Corporation on
         the Loan Purchase Date the amount of any such origination fee which has
         not at that time been used to offset such Special Allowance Payments or
         Interest  Subsidy  Payments,  to the extent that the Special  Allowance
         Payments or Interest Subsidy

                                      K-8
<PAGE>
                                                                    Exhibit 4.11

         Payments  received by the Eligible  Lender  Trustee in connection  with
         such FFELP Loans shall be affected. Seller shall continue due diligence
         servicing  in  compliance  with the Higher  Education  Act, at Seller's
         cost, up to the applicable  Loan Purchase Date;  thereafter,  servicing
         shall  be  paid  for  by,  and  shall  be the  responsibility  of,  the
         Corporation.

                  (d) Subject to the terms and  conditions of this Loan Purchase
         Agreement,  Seller  shall sell to the  Corporation,  by and through the
         Eligible  Lender   Trustee,   all  Eligible  Loans  made  to  the  same
         Borrower(s) which are held by or on behalf of Seller (serial loans).

                  (e) If Seller  originates or purchases a FFELP Loan which is a
         consolidation  loan under Section 428C of the Higher Education Act, and
         the proceeds of such consolidation loan are used to repay the principal
         and  interest  due on a FFELP  Loan sold by  Seller to the  Corporation
         hereunder,   then  Seller  shall  rebate  the  premiums   paid  by  the
         Corporation  to Seller in  connection  with the  purchase of said FFELP
         Loan  by  paying  to the  Corporation  an  amount  equal  to  the  same
         percentage of the principal balance of said FFELP Loan then outstanding
         as was originally paid by the Corporation therefor.

         Section 3. Representations, Warranties, Covenants and Agreements of the
Seller.

                  (a) With respect to FFELP Loans sold on a Loan Purchase  Date,
         the Seller hereby makes the representations and warranties set forth in
         Exhibit E hereto as of such Loan Purchase  Date.  Each  representation,
         warranty, certification,  covenant and agreement contained in this Loan
         Purchase Agreement shall survive the applicable Loan Purchase Date.

                  (b)  The  Seller  shall  not  organize  under  the  law of any
         jurisdiction other than the State under which it is organized as of the
         date hereof  (whether  changing its  jurisdiction  of  organization  or
         organizing  under an additional  jurisdiction)  without  giving 30 days
         prior  written  notice  of  such  action  to  the  Corporation.  Before
         effecting  such  change,  the  Seller  shall  prepare  and  file in the
         appropriate filing office any financing  statements or other statements
         necessary to continue the perfection of the Corporation's  interests in
         the FFELP Loans.

         Section 4.  Conditions  of Purchase.  The  Corporation's  obligation to
purchase  and pay for the FFELP Loans  hereunder  by and  through  the  Eligible
Lender Trustee as of the date hereof and any applicable Loan Purchase Date shall
be subject to each of the following conditions precedent:

                  (a) All  representations,  warranties  and statements by or on
         behalf of the Seller contained in this Loan Purchase Agreement shall be
         true on the date hereof and the applicable Loan Purchase Date.

                  (b)  Any  notification  to or  approval  by the  Secretary  of
         Education or a Guaranty Agency required by the Higher  Education Act or
         a Guarantee  Agreement  as a condition to the  assignment  of the FFELP
         Loans shall have been made or received and evidence  thereof  delivered
         to the Corporation.

                                      K-9
<PAGE>
                                                                    Exhibit 4.11

                  (c) The entire interest of the Seller in each FFELP Loan shall
         have been duly assigned by endorsement in the form set forth in Exhibit
         C hereto, such endorsement to be without recourse except as provided in
         Section 6 hereof.

                  (d)  Physical  custody  and  possession  of  the  FFELP  Loans
         (including all information and documentation  which is described in the
         Seller's Closing Certificate as specified in Exhibit B hereto) shall be
         transferred in the manner directed by the Corporation.

                  (e) The  Corporation  shall receive an opinion of the Seller's
         counsel, dated as of the date hereof covering each sale of FFELP Loans,
         in form and substance  satisfactory to the Corporation and the Eligible
         Lender  Trustee  with  respect to the Trust  Agreement  or Zions  First
         National  Bank as  Eligible  Lender  Trustee  with  respect  to the RBC
         Warehouse Loan  Agreement,  as applicable,  to the effect that (i) this
         Loan  Purchase  Agreement  has  been  duly  authorized,   executed  and
         delivered by the Seller and constitutes the legal,  valid,  binding and
         enforceable  obligation of the Seller; (ii) the blanket endorsement and
         bill of sale  required by this Loan Purchase  Agreement  have been duly
         authorized, executed and delivered by the Seller; (iii) with respect to
         all Insured Loans being acquired,  the applicable Contract of Insurance
         has been duly  authorized,  executed and delivered by the Seller;  (iv)
         with respect to all  Guaranteed  Loans being  acquired,  the applicable
         Guarantee Agreement has been duly authorized, executed and delivered by
         the Seller;  (v) assuming the due execution and delivery thereof,  each
         FFELP Loan constitutes the legal,  valid and binding  obligation of the
         Borrower  (and  of  each  endorser,  if any)  thereof,  enforceable  in
         accordance  with  its  terms;  (vi) to the  knowledge  of the  Seller's
         counsel,  the execution  and delivery of this Loan Purchase  Agreement,
         the   consummation  of  the  transactions   therein   contemplated  and
         compliance  with the  terms,  conditions  and  provisions  of this Loan
         Purchase  Agreement  do not and will not  conflict  with or result in a
         breach of any of the terms,  conditions  or  provisions of the charter,
         articles  or bylaws of the Seller or any  agreement  or  instrument  to
         which  the  Seller is a party or by which it is bound or  constitute  a
         default thereunder; (vii) to the knowledge of the Seller's counsel, the
         Seller is not a party to or bound by any  agreement  or  instrument  or
         subject to any charter or other  corporation  restriction  or judgment,
         order,  writ,  injunction,  decree,  law, rule or regulation  which may
         materially  and  adversely  affect the ability of the Seller to perform
         its obligations under this Loan Purchase Agreement;  (viii) no consent,
         approval or  authorization  of any  government  or  governmental  body,
         including,   without   limitation,   the  Federal   Deposit   Insurance
         Corporation  ("FDIC"),  the  Comptroller of the Currency,  the Board of
         Governors of the Federal  Reserve  System or any state bank  regulatory
         agency,  is  required  in  connection  with  the  consummation  of  the
         transactions  contemplated in this Loan Purchase  Agreement;  (ix) this
         Loan Purchase  Agreement  shall  constitute a security  agreement under
         Nebraska  law and  shall  be  effective  to  create,  in  favor  of the
         Corporation,  a perfected  valid  security  interest in the FFELP Loans
         subject to no prior liens;  (x) if the  Corporation  and the Seller are
         affiliates,  that (A) if the  Seller  became a debtor  under the United
         States  Bankruptcy Code, 11 U.S.C.  ss.ss. 101 et seq., as amended (the
         "Bankruptcy  Code"), (1) Section 541(a)(1) of the Bankruptcy Code would
         not apply to deem the FFELP sold by the Seller to the  Corporation  and
         the  proceeds  therefrom  as property of the  bankruptcy  estate of the
         Seller; and, therefore, (2) Section 362(a) of the bankruptcy Code would
         not apply to stay payment to the

                                      K-10
<PAGE>
                                                                    Exhibit 4.11

         Corporation  or its  assignees;  and (B) if the Seller  became a debtor
         under the  Bankruptcy  Code, a court would not  disregard  the separate
         identity of the  Corporation  so that the assets of the Seller would be
         consolidated with and become a part of the Seller's  bankruptcy estate;
         and (xi) if the Seller is a bank or savings association the deposits of
         which are insured by the FDIC (a "Bank") and the FDIC were appointed as
         receiver or conservator of such Bank, a court would not  recharacterize
         the  transfer  and  assignment  of the FFELP Loans to the Borrower as a
         pledge to secure a borrowing rather than a sale of the FFELP Loans.

                  (f) Delivery by the Seller to the Corporation on or before the
         date  hereof  of  the   following   documentation:   Seller's   Closing
         Certificate in the form of Exhibit B hereto; blanket endorsement in the
         form of Exhibit C hereto; bill of sale in the form of Exhibit D hereto;
         UCC 1 Financing  Statements  evidencing the transfer from the Seller to
         the  Corporation  and the  Eligible  Lender  Trustee  on  behalf of the
         Corporation,  and UCC lien searches sufficiently in advance of the date
         hereof  so as to  permit  review  thereof  by  the  Corporation  to its
         satisfaction,  if either or both are requested by the  Corporation or a
         party to the Financing  Agreement;  and UCC  termination  statements or
         releases, if any, releasing any security interest granted by the Seller
         in any FFELP Loan.

                  (g)  Delivery by the Seller to the  Corporation,  (i) prior to
         the  date  hereof,  of a  complete  Annex I  listing  the  FFELP  Loans
         previously transferred by the Seller to the Corporation; and (ii) prior
         to the Loan  Purchase  Date,  of a fully  executed and  completed  Loan
         Transfer  Addendum  substantially  in the form of Exhibit A hereto with
         respect to FFELP Loans referred to in the bill of sale, and delivery of
         a Loan Transfer Schedule as required in Section 2(a) hereof.

                  (h) Adequate  funds are available to the  Corporation  from an
         indenture, Trust Agreement or other Financing Agreement relating to the
         Corporation's borrowings which will finance the purchase of FFELP Loans
         under this Loan Purchase Agreement.

                  (i) Delivery by the Seller of a closing  certificate  dated as
         of  the  date  hereof  in  form  and  substance   satisfactory  to  the
         Corporation  and the Eligible  Lender Trustee with respect to the Trust
         Agreement or Zions First  National  Bank as trustee with respect to the
         RBC Warehouse Loan Agreement, as applicable, and a certificate dated as
         of the date hereof of the a certificate in the form attached as Annex A
         to the true  sale/non  consolidation  opinion  of Kutak  Rock LLP dated
         January 30, 2004.

         Section 5.  Rejection of FFELP Loans.

                  (a) If (i)  the  Seller  is  unable  to make  or  furnish  the
         representations  and warranties  required to be made or furnished by it
         pursuant to this Loan Purchase  Agreement as to a FFELP Loan;  (ii) the
         Corporation determines that the Seller is unable to fulfill one or more
         covenants or conditions  of this Loan Purchase  Agreement as to a FFELP
         Loan; (iii) the Corporation,  in its reasonable judgment,  deems that a
         FFELP Loan does not comply with the terms and  conditions  of this Loan
         Purchase  Agreement or is not being  delivered in compliance  with such
         terms  and  conditions;  or (iv)  the  Corporation,  in its  reasonable
         judgment deems that a FFELP Loan is for any reason  unacceptable to it,

                                      K-11
<PAGE>
                                                                    Exhibit 4.11

         then the  Corporation,  within 30 days of the Loan Purchase  Date,  may
         refuse to accept and pay for such FFELP Loan (or any  substitute  FFELP
         Loan offered by the Seller in lieu thereof).

                  (b) If the  Corporation  rejects a FFELP Loan,  any such FFELP
         Loan shall be  repurchased  by the Seller and returned to the Seller by
         registered  mail (for  repurchase  pursuant  to Section 6 hereof if the
         student  loan  has  previously  been  purchased  by  the  Corporation),
         together with a letter identifying each returned FFELP Loan and stating
         the basis for its return.  The  Corporation  shall cause any FFELP Loan
         returned to the Seller which has been  endorsed to the Eligible  Lender
         Trustee to be endorsed by the Eligible  Lender Trustee to the Seller in
         the form set forth in Exhibit F hereto.

         The  liability of the  Corporation  in  connection  with the loss of or
damage to any FFELP Loan to be returned to the Seller is limited to such loss or
damage  occurring as a result of its gross  negligence or willful  misconduct in
handling or safekeeping FFELP Loans.

         Section 6.  Repurchase Obligation.  If:

                  (a) any  representation  or warranty  made or furnished by the
         Seller in or pursuant to this Loan  Purchase  Agreement  shall prove to
         have been materially incorrect;

                  (b) the  Secretary of Education or a Guaranty  Agency,  as the
         case may be, refuses to honor all or part of a claim filed with respect
         to a FFELP Loan  (including  any claim for Interest  Subsidy  Payments,
         Special  Allowance  Payments,   Insurance,   reinsurance  or  Guarantee
         payments) on account of any  circumstance  or event that occurred prior
         to the sale of such FFELP Loan to the  Corporation  by and  through the
         Eligible Lender Trustee;

                  (c) on account  of any  circumstance  or event  that  occurred
         prior to the sale of a FFELP Loan to the  Corporation,  by and  through
         the Eligible  Lender  Trustee,  a defense is asserted by a Borrower (or
         endorser,  if  any)  of the  FFELP  Loan  with  respect  to  Borrower's
         obligation  to  pay  all  or  any  part  of the  FFELP  Loan,  and  the
         Corporation,  in good faith, believes that the facts reported, if true,
         raise a reasonable doubt as to the legal  enforceability  of such FFELP
         Loan;

                  (d) a FFELP Loan is  required  to be  repurchased  pursuant to
         Section 5(b) hereof; or

                  (e) the instrument which Seller purports to be a FFELP Loan is
         not, in fact, a FFELP Loan;

then the Seller shall  repurchase  such FFELP Loan or purported  FFELP Loan upon
the request of the Corporation by paying to the Corporation the then outstanding
principal  balance of such FFELP Loan or purported  FFELP Loan multiplied by the
percentage used to calculate the purchase price specified in the applicable Loan
Transfer  Addendum,  or otherwise (or such greater amount as may be necessary to
make the  Corporation  and the  Eligible  Lender  Trustee  whole in light of the
purchase price originally paid by the Corporation for such loan),  plus interest
and  applicable  Special  Allowance  Payments with respect to such FFELP Loan or

                                      K-12
<PAGE>
                                                                    Exhibit 4.11

purported  FFELP Loan from the Loan  Purchase  Date to and including the date of
repurchase,  plus any amounts owed to the Secretary of Education with respect to
the repurchased  FFELP Loan or purported  FFELP Loan, plus any attorneys'  fees,
legal expenses,  court costs,  servicing fees or other expenses  incurred by the
Corporation  and the Eligible  Lender Trustee in connection with such FFELP Loan
or purported FFELP Loan.

         Section 7. Notification to Borrowers.  The servicing agent on behalf of
the Seller  shall  notify  Borrowers  under the FFELP  Loans as  required by the
Higher  Education  Act of the  assignment  and transfer to the  Eligible  Lender
Trustee of the Seller's interest in such FFELP Loans and the Seller shall direct
each Borrower to make all payments  thereon directly to the Corporation or as it
may otherwise designate.

         Section 8.  Obligations To Forward Payments and Communications.

                  (a) The Seller shall promptly  remit, or cause to be remitted,
         to  the  Corporation  all  funds  received  by  the  Seller  after  the
         applicable Loan Purchase Date which constitute payments of principal or
         interest  (including  Interest Subsidy  Payments) or Special  Allowance
         Payments  accrued after the applicable  Loan Purchase Date with respect
         to any FFELP Loan.

                  (b) The Seller shall  immediately  transmit to the Corporation
         any  communication  received by the Seller  after the  applicable  Loan
         Purchase Date with respect to a FFELP Loan or the Borrower under such a
         FFELP Loan. Such  communication  shall include,  but not be limited to,
         letters, notices of death or disability, adjudication of bankruptcy and
         similar  documents and forms requesting  deferment of repayment or loan
         cancellations.

         Section 9.  Payment  of  Expenses  and  Taxes.  Each party to this Loan
Purchase  Agreement  shall pay its own expenses  incurred in connection with the
preparation,  execution  and delivery of this Loan  Purchase  Agreement  and the
transactions herein  contemplated,  including,  but not limited to, the fees and
disbursements of counsel; provided,  however, that Seller shall pay any transfer
or other taxes and recording or filing fees payable in connection  with the sale
and purchase of the FFELP Loans.

         Section 10. Indemnification.  The Seller specifically acknowledges that
the Corporation,  in obtaining  financing,  will be making  representations  and
warranties  regarding  the  FFELP  Loans  based in part on the  accuracy  of the
Seller's  representations  and warranties in this Loan Purchase  Agreement.  The
Seller  agrees  to  indemnify  and  save  the  Eligible  Lender   Trustee,   the
Corporation,  the parties to the Financing  Agreement and noteholders  under the
Financing  Agreement  (together  with  each  of  their  respective   successors,
assignees,  officers,  directors,  agents and  employees)  harmless of, from and
against  any and  all  loss,  liability,  cost,  damage  or  expense,  including
reasonable  attorneys'  fees and costs of litigation,  incurred by reason of any
breach of the Seller's warranties, representations or covenants hereunder or any
false or misleading representations of the Seller or any failure to disclose any
matter which makes the warranties and  representations  herein misleading or any
inaccuracy in any information furnished by the Seller in connection herewith.

                                      K-13
<PAGE>
                                                                    Exhibit 4.11

         Section 11.  Special Provisions Relating to MPN Loans.

                  (a) The Seller hereby  represents and warrants that the Seller
         is transferring all of its right title and interest in the MPN Loans to
         the  Corporation,  that it has not  assigned  any  interest in such MPN
         Loans  (other  than  security  interests  that  have been  released  or
         ownership interests that the Seller has reacquired) to any person other
         than the  Corporation,  and that no prior  holder  of the MPN Loans has
         assigned any interest in such MPN Loans (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.

                  (b) The Seller hereby  authorizes  the  Corporation  to file a
         UCC-1  financing  statement  identifying  the  Seller as debtor and the
         Corporation as secured party and describing the MPN Loans sold pursuant
         to this Loan  Purchase  Agreement.  The  preparation  or filing of such
         UCC-1  financing  statement is solely for additional  protection of the
         Corporation's  interest  in the MPN  Loans  and  shall not be deemed to
         contradict  the express intent of the Seller and the  Corporation  that
         the  transfer of MPN Loans  under this Loan  Purchase  Agreement  is an
         absolute assignment of such MPN Loans and is not a transfer of such MPN
         Loans as security for a debt.

         Section 12.  Other Provisions.

                  (a)  The  Seller  shall,  at  its  expense,   furnish  to  the
         Corporation such additional information concerning the Seller's student
         loan portfolio as the Corporation may reasonably request.

                  (b) The  Seller  shall,  at its  expense,  execute  all  other
         documents  and  take  all  other  steps  as  may  be  requested  by the
         Corporation or the Eligible  Lender Trustee from time to time to effect
         the sale hereunder of the FFELP Loans.

                  (c) The provisions of this Loan Purchase  Agreement  cannot be
         waived or modified unless such waiver or modification is in writing and
         signed by the  parties  hereto.  Inaction  or failure to demand  strict
         performance shall not be deemed a waiver.

                  (d) This Loan Purchase Agreement shall be governed by the laws
         of the State of Nebraska.

                  (e) All covenants and agreements herein contained shall extend
         to and be  obligatory  upon all  successors of the  respective  parties
         hereto.

                  (f)  This  Loan  Purchase   Agreement  may  be  simultaneously
         executed  in several  counterparts,  each of which shall be an original
         and all of which shall constitute but one and the same instrument.

                  (g) If any provision of this Loan Purchase  Agreement shall be
         held,  deemed to be or shall, in fact, be inoperative or  unenforceable
         as applied in any particular  situation,  such circumstances  shall not
         have the effect of rendering the provision in question

                                      K-14
<PAGE>
                                                                    Exhibit 4.11

         inoperative or unenforceable in any other situation or of rendering any
         other provision or provisions herein contained invalid,  inoperative or
         unenforceable  to any extent  whatsoever.  The invalidity of any one or
         more phrases,  sentences,  clauses or paragraphs herein contained shall
         not affect the remaining  portions of this Loan  Purchase  Agreement or
         any part hereof.

                  (h) All notices,  requests, demands or other instruments which
         may or are  required to be given by either  party to the other shall be
         in writing,  and each shall be deemed to have been properly  given when
         served  personally  on an officer  of the party to whom such  notice is
         given or upon  expiration  of a period  of 48 hours  from and after the
         postmark  thereof  when  mailed,  postage  prepaid,  by  registered  or
         certified mail,  requesting return receipt, by overnight courier, or by
         facsimile, addressed as follows:

<TABLE>
<CAPTION>
<S>                                                         <C>
                       If to the Corporation:               Nelnet Education Loan Funding, Inc.
                                                            121 South 13th Street, Suite 201
                                                            Lincoln, NE  68508
                                                            Attention:  Terry J. Heimes
                                                            Telephone:  (402) 458 2301
                                                            Facsimile:  (402) 458 2399

                       with a copy to the Eligible
                       Lender Trustee at:                   Wells Fargo Bank Minnesota, National
                                                               Association
                                                            Corporate Trust Services
                                                            6th and Marquette, N9303 110
                                                            Minneapolis, MN  55479
                                                            Attention:  Corporate Trust Department
                                                            Telephone:  (612) 667 4802
                                                            Facsimile:  (612) 667 2149
</TABLE>

         If to the  Seller,  addressed  in the  manner as set forth in the first
paragraph of this Loan Purchase Agreement.

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

                  (i) This Loan  Purchase  Agreement  may not be  terminated  by
         either  party  hereto  except in the manner and with the effect  herein
         specifically provided for.

                  (j) Time is of the essence in this Loan Purchase Agreement.

                  (k) This Loan  Purchase  Agreement  shall not be assignable by
         the Seller,  in whole or in part,  without the prior written consent of
         the Corporation.

                  (l) No remedy by the  terms of this  Loan  Purchase  Agreement
         conferred  upon  or  reserved  to the  Corporation  is  intended  to be
         exclusive of any other remedy,  but each and every such remedy shall be
         cumulative  and in addition to every other remedy given

                                      K-15
<PAGE>
                                                                    Exhibit 4.11

         under this Loan  Purchase  Agreement  or  existing  at law or in equity
         (including,  without limitation,  the right to such equitable relief by
         way of  injunction)  or by  statute  on or after  the date of this Loan
         Purchase Agreement.

                  (m)  Acts to be  taken  by the  Corporation  with  respect  to
         acquiring and holding title to FFELP Loans  hereunder shall be taken by
         the  Eligible  Lender  Trustee as  directed by the  Corporation,  which
         qualifies as an "eligible  lender"  trustee under the Higher  Education
         Act, and all references  herein to the Corporation shall incorporate by
         this  reference  the fact  that the  Eligible  Lender  Trustee  will be
         acquiring   and  holding   title  to  FFELP  Loans  on  behalf  of  the
         Corporation, all as required under the Higher Education Act.

                  (n) The parties hereto  acknowledge  that the Eligible  Lender
         Trustee  with respect to the Trust  Agreement  or Zions First  National
         Bank as trustee with respect to the RBC Warehouse  Loan  Agreement,  as
         applicable,  and other  parties to the  Financing  Agreement,  shall be
         third party  beneficiaries  of this Loan  Purchase  Agreement  with the
         power and right to enforce the  provisions  thereof,  and the  Eligible
         Lender  Trustee  with  respect to the Trust  Agreement  or Zions  First
         National  Bank  as  trustee  with  respect  to the RBC  Warehouse  Loan
         Agreement,  as applicable,  and any such credit providers may become an
         assignee of the Corporation.  The foregoing  creates a permissive right
         on the part of such third  party  beneficiaries,  and such third  party
         beneficiaries shall be under no duties or obligations hereunder.

                  (o) This Loan  Purchase  Agreement  has been made and  entered
         into not only for the  benefit of the  Corporation  and Seller but also
         for the benefit of the  Eligible  Lender  Trustee  with  respect to the
         Trust Agreement or Zions First National Bank as trustee with respect to
         the RBC Warehouse Loan Agreement, as applicable, in connection with the
         financing  of  Eligible  Loans as  defined  in the RBC  Warehouse  Loan
         Agreement,  and upon  assignment  by the  Corporation  to the  Eligible
         Lender  Trustee  with  respect to the Trust  Agreement  or Zions  First
         National  Bank  as  trustee  with  respect  to the RBC  Warehouse  Loan
         Agreement,  as  applicable,  its provisions may be enforced not only by
         the parties to this Loan Purchase  Agreement but by the Eligible Lender
         Trustee  with respect to the Trust  Agreement  or Zions First  National
         Bank as trustee with respect to the RBC Warehouse  Loan  Agreement,  as
         applicable.  The foregoing  creates a permissive right on behalf of the
         Eligible  Lender  Trustee with respect to the Trust  Agreement or Zions
         First  National Bank as trustee with respect to the RBC Warehouse  Loan
         Agreement,  as  applicable,  and  neither  shall be under any duties or
         obligations hereunder.

         This Loan Purchase Agreement shall inure to the benefit of the Eligible
Lender  Trustee with respect to the Eligible  Lender Trust  Agreement  and Zions
First National Bank, as trustee with respect to the RBC Warehouse Loan Agreement
and  its  successors  and  assigns.  Without  limiting  the  generality  of  the
foregoing,  all representations,  covenants and agreements in this Loan Purchase
Agreement  which  expressly  confer rights upon the Eligible Lender Trustee with
respect to the Eligible Lender Trust Agreement and Zions First National Bank, as
trustee  with  respect  to the RBC  Warehouse  Loan  Agreement  shall be for the
benefit of and run directly to, the Eligible  Lender Trustee with respect to the
Eligible  Lender Trust  Agreement and Zions First National Bank, as trustee with
respect to the RBC Warehouse  Loan  Agreement,  and the Eligible

                                      K-16
<PAGE>
                                                                    Exhibit 4.11

Lender  Trustee with respect to the Eligible  Lender Trust  Agreement  and Zions
First National Bank, as trustee with respect to the RBC Warehouse Loan Agreement
shall be entitled to rely on and enforce  such  representations,  covenants  and
agreements  to the  same  extent  as if it were a party  hereto.  The  foregoing
creates a permissive right on behalf of the Eligible Lender Trustee with respect
to the Eligible Lender Trust Agreement and Zions First National Bank, as trustee
with  respect to the RBC  Warehouse  Loan  Agreement,  and neither the  Eligible
Lender  Trustee with respect to the Eligible  Lender Trust  Agreement  nor Zions
First National Bank, as trustee with respect to the RBC Warehouse Loan Agreement
shall be under any duties or obligations hereunder.

         Section  13.  Security  Interest.  The  parties  to this Loan  Purchase
Agreement  intend that the conveyance of the Seller's right,  title and interest
in and to the FFELP Loans sold  pursuant to this Loan  Purchase  Agreement  (the
"Student  Loans") shall  constitute an absolute sale,  conveying good title free
and clear of any liens, claims, encumbrances or rights of others from the Seller
to the Corporation.  The parties to this Loan Purchase Agreement intend that the
arrangements  with respect to the Student Loans shall  constitute a purchase and
sale of such Student Loans and not a loan. In the event,  however,  that it were
determined by a court of competent  jurisdiction that the transactions evidenced
by this Loan Purchase  Agreement shall  constitute a loan and not a purchase and
sale,  the  parties  hereto  intend  that this  Loan  Purchase  Agreement  would
constitute a security  agreement under  applicable law and that the Seller shall
be deemed to have  granted,  and hereby  does grant  (subject  to the  condition
above),  to the  Corporation  (and the Eligible Lender Trustee) a first priority
perfected  security  interest in all of the Seller's right,  title and interest,
whether now owned or hereafter acquired, in, to and under all accounts,  general
intangibles, chattel paper, instruments,  documents, goods, investment property,
money, deposit accounts,  certificates of deposit, letters of credit, advices of
credit  and  other  property  consisting  of,  arising  from or  related  to the
following  collateral to secure the rights of the Corporation  hereunder and the
obligations of the Seller hereunder (collectively, the "Pledged Collateral"):

                  (a) all Student Loans;

                  (b) all revenues  and  recoveries  of  principal  from Student
         Loans,  including all borrower payments and reimbursements of principal
         and  accrued  interest on default  claims  received  from any  Guaranty
         Agency;

                  (c)  any  other  revenues  and  recoveries  of  principal  and
         interest and other payments and reimbursements of principal and accrued
         interest  received  with  respect  to any  Student  Loan and any  other
         collection  of cash with respect to such Student Loan  (including,  but
         not limited to, Interest Subsidy Payments,  Special Allowance Payments,
         finance charges and payments representing the repurchase of any Student
         Loan or rebate  of  premium  thereon  pursuant  to this  Loan  Purchase
         Agreement)  received or deemed to have been received and all other cash
         collections,  tax  refunds  and  other  cash  proceeds  of the  Pledged
         Collateral  held in various funds and accounts  created under this Loan
         Purchase Agreement;

                  (d) all other security interests or liens and property subject
         thereto from time to time, if any, purporting to secure payment of such
         Student Loans, whether pursuant to the contract related to such Student
         Loans or otherwise;

                                      K-17
<PAGE>
                                                                    Exhibit 4.11

                  (e)  all  documents,  books,  records  and  other  information
         (including, without limitation,  computer programs, tapes, disks, punch
         cards,  data  processing  software  and  related  property  and rights)
         maintained  with respect to Student  Loans  otherwise in respect of the
         Pledged Collateral; and

                  (f) all proceeds of the foregoing  (including,  but not by way
         of limitation, all cash proceeds, accounts, accounts receivable, notes,
         drafts, acceptances, chattel paper, checks, deposit accounts, insurance
         proceeds, condemnation awards, rights to payment of any and every kind,
         and other forms of  obligations  and  receivables  or other  liquidated
         property  which at any time  constitute  all or part or are included in
         the proceeds of any of the foregoing property).

         The  Seller  agrees  that from time to time,  at its  expense,  it will
properly execute and deliver all further  instruments and documents  (including,
without limitation, UCC-1 financing statements and Custodian Agreements with the
Servicer),  and take all further action that Corporation may reasonably  request
in order to perfect,  protect or more fully evidence the Corporation's  interest
in the Pledged  Collateral or to enable the  Corporation  to exercise or enforce
any of its rights hereunder.

         Section 14.  Information  and  Reporting.  Seller shall  furnish to the
Corporation: (a) upon execution of this Agreement,  Seller's most recent audited
financial  statement prepared in accordance with generally  accepted  accounting
principles and duly  certified by nationally  recognized  independent  certified
public accountants selected by Seller, as well as Seller's most recent unaudited
financial statement and balance sheet; (b) as soon as available and in any event
within 90 days  after the end of each  fiscal  year of the  Seller,  an  updated
audited  financial  statement  prepared in accordance  with  generally  accepted
accounting  principles and duly certified by nationally  recognized  independent
certified public  accountants  selected by Seller;  and (c) such other financial
information as the Corporation may reasonably  request from time to time. Seller
shall verify and reconcile  Eligible Loan  disbursements  and  cancellations  of
Eligible Loans sold hereunder,  in such manner as the Corporation may reasonably
request from time to time. Seller shall furnish to the Corporation a certificate
of good  standing  and a certified  copy of  resolutions  of  Seller's  board of
directors approving and authorizing  execution and performance of this Agreement
and  all  ancillary   documents  with  respect  thereto  in  a  form  reasonably
satisfactory to the Corporation.

                                      K-18
<PAGE>
                                                                    Exhibit 4.11

         IN WITNESS WHEREOF, the parties have hereunto set their hands as of the
day and year first above written.

                              [SELLER]

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

                              NELNET EDUCATION LOAN FUNDING,
                              INC., F/K/A NEBHELP, INC.

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

                                      K-19
<PAGE>
                                                                    Exhibit 4.11

                             EXHIBIT A TO EXHIBIT K

                             LOAN TRANSFER ADDENDUM

         This Loan Transfer  Addendum (the  "Addendum") is made and entered into
as of the ___ day of ___________,  _____,  by and between Nelnet  Education Loan
Funding,  Inc., f/k/a NEBHELP, INC. (the "Corporation") and _______________ (the
"Seller").

         WHEREAS,  the parties hereto entered into that Loan Purchase  Agreement
dated as of ________________,  ______, (the "Loan Purchase Agreement"),  and the
Seller  wishes to sell a  portfolio  of  Eligible  Loans (as defined in the Loan
Purchase  Agreement) to the Corporation,  pursuant to and in accordance with the
terms and conditions of the Loan Purchase Agreement.

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

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

         Section  2.  Purchase  of  Eligible  Loans.  Subject  to the  terms and
conditions   of  the  Loan   Purchase   Agreement   and  in  reliance  upon  the
representations,  warranties  and  covenants  as set forth in the Loan  Purchase
Agreement, the Seller agrees to sell to the Eligible Lender Trustee, as eligible
lender trustee under the [Trust]  [Eligible Lender Trust] Agreement on behalf of
the  Corporation,  a portfolio of Eligible Loans identified in the Loan Transfer
Schedule attached hereto,  having an aggregate  outstanding principal balance of
approximately $______________ (the "Current Purchase Portfolio").

         Section 3. Purchase  Price.  Subject to the terms and conditions of the
Loan Purchase  Agreement,  the Corporation agrees to purchase the Eligible Loans
in the Current  Purchase  Portfolio  at a purchase  price equal to _____% of the
aggregate unpaid  principal  balance thereon plus 100% of the accrued and unpaid
interest  thereon,  each as of the Loan  Purchase  Date set  forth in  Section 4
hereof.

         Section 4. Loan Purchase Date. The Loan Purchase Date shall be no later
than _____________, _____.

         Section 5. Representations and Warranties. The Seller hereby reconfirms
all the  representations and warranties set forth in the Loan Purchase Agreement
as of the Loan Purchase Date set forth in Section 4 hereof.

         Section 6. Effect on Loan Purchase Agreement.  This Addendum sets forth
the terms of  purchase  and sale solely  with  respect to the  Current  Purchase
Portfolio. This Addendum shall have no effect upon any other sale or purchase of
any  Eligible  Loans  consummated  or  contemplated  prior to or after  the Loan
Purchase Date, and all other terms,  conditions and agreements  contained in the
Loan  Purchase  Agreement  shall  remain  in full  force

                                      K-20
<PAGE>
                                                                    Exhibit 4.11

and effect. Prior or subsequent purchases and sales of Eligible Loans shall each
be governed by a separate Loan Transfer Addendum.

         Section 7. Special Terms. [Reserved].

                                [SELLER]

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

                                NELNET EDUCATION LOAN FUNDING,
                                INC., F/K/A NEBHELP, INC.

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

                                      K-21
<PAGE>
                                                                    Exhibit 4.11

                             EXHIBIT B TO EXHIBIT K

                          SELLER'S CLOSING CERTIFICATE

         (DO  NOT  COMPLETE)   (the  "Seller")  does  hereby  certify  that  all
representations,  warranties  and  statements  by or on  behalf  of  the  Seller
contained  in a certain  Loan  Purchase  Agreement  dated  ____________________,
________ (the "Agreement"),  by and between the Seller and Nelnet Education Loan
Funding, Inc., f/k/a NEBHELP, INC. (the "Corporation"),  are true and correct on
and as of the Loan Purchase Date, without exception or qualification whatsoever;

         FURTHERMORE,   the  Seller  does  hereby  certify  that  the  following
documents,  where  applicable  to each FFELP Loan (as defined in the  Agreement)
acquired under the Agreement,  have heretofore been furnished to the Corporation
or are simultaneously  herewith delivered in accordance with the instructions of
the Corporation, pursuant to Section 4(d) of the Agreement:

                  (a)  Department of Education  application  or Guaranty  Agency
         application, as supplemented;

                  (b)  Interim  note(s)  for each  Loan  that is not an MPN Loan
         Payout note(s) for each Loan that is not an MPN Loan;

                  (c) Disclosure and Loan information statement;

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

                  (e) Guarantee  Agreement,  Agreement for  Participation in the
         Guaranteed Loan Program and Notification of Loan;

                  (f)  Approval  by the  Guaranty  Agency  with  respect to each
         Guaranteed Loan (or certified copy thereof);

                  (g) Any other documentation held by the Seller relating to the
         history of such Eligible Loan;

                  (h) Secretary of Education  and Guaranty  Agency Loan Transfer
         Statements;

                  (i)  Uniform  Commercial  Code  financing  statement,  if any,
         securing  any  interest  in an  Eligible  Loan to be  Financed,  and an
         executed termination statement related thereto; and

                  (j) Evidence of Loan  disbursement Any other document required
         to be submitted with a claim to the Guaranty Agency.

                                      K-22
<PAGE>
                                                                    Exhibit 4.11

         IN WITNESS  WHEREOF,  the undersigned has caused this Certificate to be
executed and  delivered by an officer  hereunto  duly  authorized as of the Loan
Purchase Date, __________.

                               NAME OF SELLER
                               [DO NOT COMPLETE]

                               By
                                  ----------------------------------------------
                                     [DO NOT SIGN]
                               Title
                                     -------------------------------------------
                                     [DO NOT SIGN]

                                      K-23
<PAGE>
                                                                    Exhibit 4.11

                             EXHIBIT C TO EXHIBIT K

                             BLANKET ENDORSEMENT OF
                          STUDENT LOAN PROMISSORY NOTES

         Pursuant  to  the  Loan  Purchase   Agreement  dated  __________,   the
undersigned  ("Seller"),  by execution of this  instrument,  hereby endorses all
promissory notes purchased by Wells Fargo Bank Minnesota,  National Association,
as  eligible  lender  trustee  (the  "Eligible  Lender  Trustee")  under  [Trust
Agreement between the Eligible Lender Trustee and Nelnet Education Loan Funding,
Inc., f/k/a NEBHELP,  INC. (the  "Corporation")].  This endorsement is in blank,
unrestricted  form.  This  endorsement is without  recourse,  except as provided
under the terms of the Loan Purchase  Agreement.  All right, title, and interest
of Seller in and to the promissory notes and related documentation identified in
the attached loan ledger are transferred and assigned to Eligible Lender Trustee
on behalf of the Corporation.

         This endorsement may be further manifested by attaching this instrument
or a  facsimile  hereof  to  each or any of the  Promissory  Notes  and  related
documentation  acquired  by  the  Eligible  Lender  Trustee  on  behalf  of  the
Corporation  from Seller,  or by attaching  this  instrument  to the loan ledger
schedule, as the Corporation may require or deem necessary.

         Dated this ___ day of ______________, _____.

                                      NAME OF SELLER
                                      [DO NOT COMPLETE]

                                      By
                                         ---------------------------------------
                                          [DO NOT SIGN] [SIGNATURE OF
                                          AUTHORIZED OFFICER OF SELLER]

                                      K-24
<PAGE>
                                                                    Exhibit 4.11

                             EXHIBIT D TO EXHIBIT K

                                  BILL OF SALE

         FOR VALUE RECEIVED,  ________________________  (the "Seller"), pursuant
to the terms and conditions of that certain Loan Purchase  Agreement dated as of
___________,  _____ (the  "Agreement")  between the Seller and Nelnet  Education
Loan Funding,  Inc., f/k/a NEBHELP,  INC. (the "Corporation") does hereby grant,
sell,  assign,  transfer  and  convey to Wells  Fargo Bank  Minnesota,  National
Association,  solely in its capacity as eligible  lender  trustee (the "Eligible
Lender  Trustee") on behalf of the  Corporation  and its successors and assigns,
all right, title and interest of the Seller in and to the following:

         1. The  loans  described  in Annex I  attached  hereto  (the  "Loans"),
including the guarantee of the Loans issued by a Guaranty Agency pursuant to the
Federal Family Education Loan Program (20 U.S.C. ss. 1071 et seq.);

         2. All  promissory  notes  and  related  documentation  evidencing  the
indebtedness represented by such Loans; and

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

         TO HAVE AND TO HOLD the same unto the Eligible Lender Trustee on behalf
of the Corporation,  its successors and assigns,  forever.  This Bill of Sale is
made pursuant to and is subject to the terms and  provisions  of the  Agreement,
and is without recourse, except as provided in the Agreement.

         IN  WITNESS  WHEREOF,  the  Seller has  caused  this  instrument  to be
executed by one of its officers  duly  authorized to be effective as of the ____
day of ______, _____.

                             [NAME OF SELLER]

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

                                      K-25
<PAGE>
                                                                    Exhibit 4.11

                             EXHIBIT E TO EXHIBIT K

                          REPRESENTATIONS, WARRANTIES,
                       COVENANTS AND AGREEMENTS OF SELLER

         1. Any information  furnished by the Seller to the Corporation,  or the
Corporation's  agents with respect to a FFELP Loan,  including the Loan Transfer
Schedule attached to the Loan Transfer Addendum, is true, complete and correct.

         2. The amount of the unpaid principal balance of each FFELP Loan is due
and owing, and no counterclaim,  offset,  defense or right to rescission  exists
with  respect to any FFELP Loan which can be asserted and  maintained  or which,
with notice,  lapse of time or the  occurrence or failure to occur of any act or
event could be asserted  and  maintained  by the  Borrower  against the Eligible
Lender  Trustee or the  Corporation as assignee  thereof.  The Seller shall have
taken all reasonable  actions to assure that no maker of a FFELP Loan has or may
acquire a defense to the payment  thereof.  No payment of  principal or interest
with  respect  to any FFELP  Loan is, as of the date  hereof,  more than 60 days
delinquent  and no  applicable  payment of principal or interest with respect to
any FFELP Loan will, at the applicable  Loan Purchase Date, be more than 60 days
delinquent. No FFELP Loan carries a rate of interest less than, or in excess of,
the  applicable  rate of interest  required by the Higher  Education Act. If the
Higher  Education  Act permits  Sellers to charge an interest rate less than the
applicable rate of interest, no FFELP Loan purchased hereunder bears interest at
a rate lower than the applicable rate of interest;  provided,  however, that the
Corporation may approve, in its sole discretion, in writing, interest reductions
which are part of a borrower repayment incentive program of Seller, the terms of
which have been fully described in detail and in writing to the Corporation.

         3. Each FFELP Loan has been duly executed and delivered and constitutes
the legal, valid and binding obligations of the maker (and the endorser, if any)
thereof, enforceable in accordance with its terms.

         4. Each FFELP Loan  complies in all respects with the  requirements  of
the Higher  Education Act and the Loan Purchase  Regulations  and is an Eligible
Loan, as that term is defined in the Loan Purchase Agreement.

         5. The Seller or Seller's  eligible  lender trustee has applied for and
received the Secretary of Education's or a Guaranty Agency's designation, as the
case may be, as an "Eligible  Lender"  under the Higher  Education  Act, and the
Seller  has  entered  into  all  agreements  required  to be  entered  into  for
participation  in the Federal  Family  Education  Loan Program  under the Higher
Education Act.

         6. The Seller and the  Seller's  eligible  lender  trustee on behalf of
Seller is the sole  owner and  holder of each  FFELP Loan and has full right and
authority  to sell and assign  the same free and clear of all liens,  pledges or
encumbrances;  no FFELP Loan has been pledged or assigned  for any purpose;  and
each FFELP Loan is free of any and all liens, charges, encumbrances and security
interests of any  description.  The  Corporation has a valid and perfected first
priority security interest in the Pledged Collateral.

                                      K-26
<PAGE>
                                                                    Exhibit 4.11

         7. Each FFELP Loan is either Insured or  Guaranteed;  such Insurance or
Guarantee,  as the  case  may  be,  is in  full  force  and  effect,  is  freely
transferable  as an incident to the sale of each FFELP Loan; all amounts due and
payable to the Secretary of Education or a Guaranty Agency,  as the case may be,
have been or will be paid in full by the Seller, and none of the FFELP Loans has
at any time been  tendered to either the  Secretary of Education or any Guaranty
Agency for payment.

         8. There are no  circumstances  or conditions with respect to any FFELP
Loan,  the Borrower  thereunder  or the  creditworthiness  of said Borrower that
would  reasonably  cause  prudent  private  investors to regard any of the FFELP
Loans  as  an  unacceptable  investment,   or  adversely  affect  the  value  or
marketability thereof, the insurance thereof and any applicable Guarantee.

         9. Each FFELP Loan was made in compliance  with all  applicable  local,
State and federal laws, rules and regulations,  including,  without  limitation,
all applicable  nondiscrimination,  truth in lending,  consumer credit and usury
laws.

         10. The Seller has  carefully  reviewed the Loan  Purchase  Regulations
supplied by the Corporation and has complied with the Loan Purchase Regulations.

         11. The FFELP Loans  pursuant  to the  Agreement  include all  Eligible
Loans of any one Borrower held by the Seller.

         12. The Seller has,  and its officers  acting on its behalf have,  full
legal authority to engage in the transactions  contemplated by the Loan Purchase
Agreement;  the  execution  and  delivery of the Loan  Purchase  Agreement,  the
consummation of the  transactions  herein  contemplated  and compliance with the
terms,  conditions and provisions of the Loan Purchase Agreement do not and will
not  conflict  with or  result in a breach of any of the  terms,  conditions  or
provisions of the charter,  articles or bylaws of the Seller or any agreement or
instrument  to which the Seller is a party or by which it is bound or constitute
a default thereunder;  the Seller is not a party to or bound by any agreement or
instrument  or  subject  to any  charter  or other  corporation  restriction  or
judgment,  order, writ,  injunction,  decree,  law, rule or regulation which may
materially  and  adversely  affect the  ability  of the  Seller to  perform  its
obligations  under the Loan Purchase  Agreement and the Loan Purchase  Agreement
constitutes a valid and binding obligation of the Seller enforceable  against it
in accordance with its terms,  and no consent,  approval or authorization of any
government or governmental  body,  including,  without  limitation,  the Federal
Savings  and  Loan  Insurance   Corporation,   the  Federal  Deposit   Insurance
Corporation,  the  Comptroller  of the  Currency,  the Board of Governors of the
Federal  Reserve  System or any state bank  regulatory  agency,  is  required in
connection with the consummation of the transactions herein contemplated.

         13. The Seller is duly organized, validly existing and in good standing
under the laws of its applicable jurisdiction and has the power and authority to
own its assets and carry on its business as now being conducted.

         14. The Seller and any  independent  servicer  have each  exercised due
diligence and reasonable care in making, administering, servicing and collecting
the FFELP  Loans,  and the

                                      K-27
<PAGE>
                                                                    Exhibit 4.11

Seller has conducted a reasonable  investigation of sufficient scope and content
to enable it duly to make the representations  and warranties  contained in this
Exhibit E. The Seller shall be solely  responsible  for the payment of the costs
and  expenses  incident  to  origination  of FFELP  Loans,  without any right of
reimbursement therefor from the Corporation.

         15.  With  respect  to  all  Insured  Eligible  Loans  being  acquired,
Insurance  is in effect  with  respect  thereto;  the  applicable  Contract  and
Certificates  of Insurance are valid and binding upon the parties thereto in all
respects  material to the  security  for any bonds  and/or  notes  issued by the
Corporation;  and the Seller is not in default in the  performance of any of its
covenants and agreements made in respect thereof.

         16. With respect to all  Guaranteed  Eligible Loans being  acquired,  a
Guarantee  Agreement is in effect with respect  thereto and is valid and binding
upon the parties  thereto in all respects  material to the security of the bonds
and/or  notes  issued by the  Corporation  to finance the FFELP  Loans;  and the
Seller  is not  in  default  in the  performance  of  any of its  covenants  and
agreements made in such Guarantee Agreement.

         17. The Seller does not (a) discriminate by pattern or practice against
any particular class or category of students by requiring, as a condition to the
receipt of a student  loan,  that a student  or his  family  maintain a business
relationship with the Seller,  except as may be permitted under applicable laws;
or (b) discriminate on the basis of race, sex, color, creed or national origin.

         18. The FFELP Loans are a  representative  sample of all student  loans
held by the Seller with respect to the educational  institution  attended by, or
the age, sex,  race,  national  origin or place of residence of, the Borrower to
whom  such  loans  were  made,   or  with  respect  to  any  other   identifying
characteristic of such Borrowers.

         19.  Each  instrument  transferred  to the  Corporation  under the Loan
Purchase Agreement is a FFELP Loan which constitutes an Eligible Loan.

         20. No promissory  note  evidencing an Eligible Loan bears any apparent
evidence of forgery or  alteration or is otherwise so irregular or incomplete as
to call into question its authenticity.

         21. Except as may have been  disclosed by the UCC lien search  required
by  Section  4(f)  hereof  for the  Seller,  no other  financing  statements  or
assignment  filings naming the Seller as debtor or assignor under its legal name
or trade names has been filed.

         22. The fair salable  value of the assets on a going  concern  basis of
the Seller and its subsidiaries, on a consolidated basis, as of the time of each
sale of  FFELP  Loans  hereunder  is in  excess  of the  total  amount  of their
liabilities.

                                      K-28
<PAGE>

                                                                    Exhibit 4.11

                             EXHIBIT F TO EXHIBIT K

                                 ACKNOWLEDGMENT

         The assignment of the within  promissory note and related  documents to
(DO NOT COMPLETE) under a Loan Purchase  Agreement between  ____________________
and  ____________________,  dated  as of  ____________________,  _____,  did not
become  effective  thereunder,  and no rights  in the same  have  been  conveyed
thereby.

         Dated:  [DO NOT COMPLETE]
                 ---------------------------------------------

                                      K-29Exhibit 10.56

                                February 20, 2004

Deutsche Bank AG, New York Branch
60 Wall Street, 19th Floor
New York, NY 10005

Ladies and Gentlemen:

         Pursuant to Section 2.03 of the  Warehouse  Note  Purchase and Security
Agreement, dated as of May 1, 2003 (as amended, the "Warehouse Note Purchase and
Security   Agreement"),   among  Nelnet   Education  Loan  Funding,   Inc.  (the
"Borrower"), Wells Fargo Bank Minnesota, National Association, as trustee, Wells
Fargo Bank Minnesota,  National Association, as eligible lender trustee, YC SUSI
Trust,  as a conduit lender,  Bank of America,  N.A., as a facility agent and an
alternate lender,  Gemini  Securitization  Corp., as a conduit lender,  Deutsche
Bank AG, New York Branch,  as a facility agent and an alternate  lender,  Barton
Capital Corporation,  as a conduit lender, Societe Generale, as a facility agent
and an alternate lender, and Bank of America, N.A., as administrative agent, the
Borrower  hereby  request that the Deutsche  Bank  Facility  Group  increase its
Commitment  under the  Warehouse  Note  Purchase  and  Security  Agreement  from
$350,000,000 to $600,000,000 effective on March 1, 2004. Please acknowledge your
acceptance,  as the Deutsche Bank Facility  Agent on behalf of the Deutsche Bank
Facility Group, of this increase in the Commitment of Deutsche Bank AG, New York
Branch, as Alternate  Lender,  for the Deutsche Bank Facility Group by executing
and returning this letter to us. Your execution of this letter shall  constitute
the  written  evidence  that the  Deutsche  Bank  Facility  Group has  agreed to
increase its Commitment  pursuant to Section 2.03 of the Warehouse Note Purchase
and Security Agreement.

         On the  effective  date of such  increase,  being  March 1,  2004,  the
Borrower will provide  Deutsche  Bank AG, New York Branch,  as the Deutsche Bank
Facility Agent,  with a replacement  Senior Note in the maximum principal amount
of  $570,000,000  and a replacement  Subordinate  Note in the maximum  principal
amount of $30,000,000 in exchange for the existing  Senior Note and  Subordinate
Note issued to the Deutsche Bank Facility Group.
<PAGE>

         Capitalized terms used in this letter and not defined herein shall have
the meanings  assigned to such terms in the Warehouse Note Purchase and Security
Agreement.

                                      Very truly yours,

                                      NELNET EDUCATION LOAN FUNDING, INC.

                                      By  /s/ Terry J. Heimes
                                          ----------------------------------
                                          Terry J. Heimes, President

ACCEPTED AND AGREED TO:

DEUTSCHE BANK AG, NEW YORK BRANCH,
as Deutsche Bank Facility Agent

By /s/ David McCollum
  --------------------------------

Title:  /s/ Managing Director
        --------------------------

By /s/ Stanley Chao
   -------------------------------

Title:  /s/ Vice President
        --------------------------

cc:      Wells Fargo Bank Minnesota, National Association
         6th and Marquette Avenue
         Minneapolis, Minnesota  55479-0069
         Attn: Corporate Trust Department

                                       2

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