Fitch Rates Education Loans Incorporated -EdLinc- $239.5MM Issuance

Business Wire, April 28, 2003

Business Editors

NEW YORK--(BUSINESS WIRE)--April 28, 2003

Fitch Ratings assigns ratings to the following student loan asset-backed notes issued by Education Loans Incorporated (EdLinc):

Ratings for new issuance:

-- $70,000,000 Student Loan Asset-Backed Notes, Senior Series

2003-1A, 'AAA';

-- $70,000,000 Student Loan Asset-Backed Notes, Senior Series

2003-1B, 'AAA';

-- $69,000,000 Student Loan Asset-Backed Notes, Senior Series

2003-1C, 'AAA';

-- $30,500,000 Student Loan Asset-Backed Notes, Subordinate

Series 2003-1D, 'A'.

Ratings for existing debt:

-- $82,700,000 Student Loan Asset-Backed Notes, Senior Series

2002-1A, 'AAA';

-- $82,700,000 Student Loan Asset-Backed Notes, Senior Series

2002-1B, 'AAA';

-- $24,500,000 Student Loan Asset-Backed Notes, Subordinate

Series 2002-1C, 'A';

-- $79,000,000 Student Loan Asset-Backed Notes, Senior Series

2001-1A, 'AAA';

-- $79,000,000 Student Loan Asset-Backed Notes, Senior Series

2001-1B, 'AAA';

-- $23,800,000 Student Loan Asset-Backed Notes, Subordinate

Series 2001-1C, 'A'

-- $54,100,000 Student Loan Asset-Backed Notes, Senior Series

2000-1A, 'AAA';

-- $54,100,000 Student Loan Asset-Backed Notes, Senior Series

2000-1B, 'AAA';

-- $22,000,000 Student Loan Asset-Backed Notes, Subordinate

Series 2000-1C, 'A';

-- $78,000,000 Student Loan Asset-Backed Notes, Senior Series

1999-1A, 'AAA';

-- $39,000,000 Student Loan Asset-Backed Notes, Senior Series

1999-1B, 'AAA';

-- $9,300,000 Student Loan Asset-Backed Notes, Subordinate Series

1999-1C, 'A'.

The ratings are based on the quality of the student loan portfolio; the credit enhancement provided; and the sound legal structure. The collateral consists of Federal Family Education Loan Program (FFELP) student loans and self-insured, credit tested, private student loans sponsored by Student Loan Finance Corp. (SLFC). In addition, the ratings on the senior notes benefit from the subordination provided by the subordinate notes.

The ratings address the ability of the trust to redeem the notes at maturity and pay timely interest. The ratings do not address any carryover amounts that may accrue on the notes nor do they address the ability of auction rate noteholders to successfully redeem their notes at an auction now or in the future.

The series 2003-1 notes are issued under the fifth supplemental indenture dated as of April 1, 2003 to the trust indenture dated as of Dec. 1, 1999. The series 2003-1 note proceeds will be used to acquire or originate eligible loans at closing; purchase or originate student loans during the acquisition period through August 2003; fund the reserve fund; and pay issuance costs. After issuance, 100% of the debt held within the trust will be taxable, with interest based on the 28-day auction rate.

The series 2003-1 notes are 28-day auction rate securities. Interest is payable on the first business day following the end of each interest period. The legal final maturity dates for the series 2003-1 notes is December 1, 2035.

At closing, the collateral securing the notes consists of FFELP and private student loans, 76.7% and 23.3% of the initial portfolio, respectively. The FFELP loans are guaranteed 98% or 100% by an eligible guarantor and re-insured by the U.S. Department of Education (ED) depending on their origination date.

For the private student loans, Student Loan Finance Corporation (SLFC) is responsible for the application and origination process, including loan underwriting and disbursement. There are three private loan underwriting standards: Credit Ready, Credit Worthy, and Credit Able. The private loans included in the trust are primarily from students attending 4-year institutions. These loans are considered defaulted after being delinquent for 180 days and are reimbursed within the trust by the Alternative Loan Guarantee Fund and borrower recoveries. The Alternative Loan Guarantee Fund holds the guarantee fees paid by borrowers upon disbursement.

SLFC is the servicer for both the FFELP and private student loans, with AFSA, Great Lakes Higher Education Servicing Corporation, and Educational Assistance Service Corporation, Inc. acting as sub-servicers for a portion of the FFELP loans.

The lead underwriter on this transaction is Citigroup.

EdLinc is a taxable, bankruptcy-remote subsidiary of SLFC governed under the laws of Delaware. SLFC is a South Dakota corporation organized in 1997 and is the servicer for student loans held by its subsidiaries, EdLinc and GOAL Funding.