<PAGE>

                                                                    Exhibit 99.1

                         [LETTERHEAD OF EIDE BAILLY LLP]

                       INDEPENDENT ACCOUNTANT'S REPORT ON
                         APPLYING AGREED-UPON PROCEDURES
--------------------------------------------------------------------------------

To the Board of Directors
Student Loan Finance Corporation
Education Loans Incorporated
Aberdeen, South Dakota

We have audited, in accordance with auditing standards generally accepted in the
United States of America, the consolidated balance sheet of Student Loan Finance
Corporation (SLFC) and wholly-owned subsidiaries, Education Loans Incorporated
(EDLinc), Surety Loan Funding Company, and Goal Funding, Incorporated as of
December 31, 2002 and the related consolidated statements of income,
stockholder's equity, and cash flows for the year then ended, and have issued
our report thereon dated March 6, 2003.

Our audit, referred to in the preceding paragraph, included procedures applied
to the documents and records relating to SLFC's servicing agreement with
Education Loans Incorporated regarding the acquisition process, due diligence,
and the servicing of student loans. These procedures were determined on the
basis of our objective to issue an opinion on the financial statements referred
to above taken as a whole. Because the procedures referred to in this paragraph
and described below do not constitute an audit of the documents and records
relating to the servicing of student loans or other information relating to the
Corporation's student loan portfolio, we do not express an opinion on those
documents or records.

The procedures we performed on these documents and records as part of our audit
of the financial statements of the Corporation were as follows:

1.    Read the servicing agreement between Education Loans Incorporated,
      beneficial owner of the student loan receivables, and Student Loan Finance
      Corporation, servicer of the student loan receivables. Recalculated and
      analyzed the reasonableness of the annual service fee expense.

2.    To satisfy ourselves as to the validity of the outstanding balance of
      student loans, we sent confirmation requests directly to 400 borrowers
      requesting they confirm the terms and outstanding balance of their loans
      if they disagreed with the confirmation details. There were no unresolved
      discrepancies noted as a result of the confirmations, which were selected
      by cumulative monetary sampling techniques.

3.    Determined the reasonableness of fluctuations of student loan receivable
      balances and related accounts for the year ended December 31, 2002.

4.    Agreed the receivable subsidiary records to the general ledger.

5.    Analyzed the reserve for loan loss account for reasonableness based on
      historical default rates, claim rates, uninsured percentages, and average
      loan lives.

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 2

6.   Calculated the income earned (special allowance, government interest, and
     borrower interest) as a percentage of average monthly balance of student
     loans outstanding during the years ended December 31, 2002 and 2001 and
     compared the two years for reasonableness.

7.   Selected 25 daily statistical reports (ACT 400) and recalculated the daily
     accrual for government interest and borrower interest for one bond code
     category for each date. We traced the daily accrual into the general ledger
     for the bond code selected.

8.   Agreed the net amounts of government interest, special allowance, loan
     origination fees, and lender fees received for the quarters ended March 31,
     2002 and September 30, 2002 as reported on ED Form 799s prepared by SLFC to
     Lender Search Reports provided directly from the Department of Education.

9.   Agreed the amounts of government interest, special allowance, loan
     origination fees, and lender fees due from/to the Department of Education
     at December 31, 2002 to subsequent receipt and the Department of
     Education's letter of notification of payment scheduled by EFT.

10.  SLFC has contracted with Educational Assistance Service Company, Inc.
     (EASCI), ACS Education Services (ACS) (formerly AFSA Data Corporation) and
     Great Lakes Higher Education Servicing Corporation (Great Lakes) to service
     a portion of the student loan receivables. With respect to this portion of
     the portfolio, we:

     a)   Obtained and read EASCI's, ACS's and Great Lakes' audit/attestation
          reports prepared in accordance with the U.S. Department of Education's
          audit guide "Compliance Audits (Attestation Engagements) for Lenders
          and Lender Servicers Participating in the Federal Family Education
          Loan Program" and noted no instances of noncompliance at either
          servicer. This audit examines the servicer management's assertions
          about the servicer's compliance and internal control over compliance
          with specified U.S. Department of Education FFEL Program requirements.

     b)   Confirmed the student loan receivable balances with EASCI, ACS and
          Great Lakes as of November 30, 2002. Determined the reasonableness of
          fluctuations of student loan receivable balances from November 30,
          2002 to December 31, 2002.

We also performed the procedures enumerated below, which were agreed to by the
Board of Directors and management of SLFC as servicer for EDLinc, solely to
assist the users in evaluating management's assertion about compliance and
operational performance as it relates to the documents and records relating to
the acquisition process, due diligence, and the servicing of student loans.
Management has represented in a letter dated March 6, 2003 that the procedures
with respect to loan servicing have been designed to assure loans are processed
in a manner which conforms to federal regulations and requirements. SLFC's
management is responsible for ensuring loans are processed and serviced in a
manner that conforms to federal regulations and requirements. This agreed-upon
procedures engagement was performed in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The
sufficiency of these procedures is solely the responsibility of the specified
users of this letter. Consequently, we make no representation regarding the
sufficiency of the procedures described below either for the purpose for which
this letter has been requested or for any other purpose.

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 3

The procedures that follow were performed for the period January 1, 2002 to
December 31, 2002 (hereafter referred to as the year ended December 31, 2002),
unless otherwise indicated, and relate only to the student loan receivables
serviced by SLFC, on behalf of Education Loans Incorporated.

We selected a statistical based sample of 85 FFELP and 16 alternative loans
(hereafter referred to as "initial sample"). The procedures we performed on
these and other documents and records are as follows:

Acquisition Process and Origination Process

1.   FFELP Acquisition Process and Loan Data

     We inquired and documented the procedures used during the acquisition
     process and selected 25 FFELP loans purchased during the year ended
     December 31, 2002. We traced the selected purchase into the daily monetary
     transaction journal (MTJ), which listed all transactions for each lender.
     We then traced the total daily purchase amount for each lender to the
     transaction breakdown report, which summarizes the MTJ by bond issue and is
     used to post to the general ledger.

     For the same 25 loans noted above, we agreed the total daily purchase
     amount for each lender to the eligible loan acquisition certificates unless
     a loan acquisition certificate was not needed because of loan volume. For
     10 of the 25 loans, summaries of the acquisition certificates were then
     traced to the trustee reports.

     We recalculated the premium and transfer fee for all 25 loans. For 5 of the
     25 loans, we verified that the correct premium level indicator was used on
     the system in accordance with Company policies and lender agreements.

     One exception was noted during our recalculation of the premiums. Due to
     the various factors involved in the calculation of premiums and the impact
     of borrower information on the calculation, it is difficult to manually
     recalculate premiums for this lender. To obtain the exact recalculation,
     management determined the purchase would need to be regenerated. However,
     because management was able to manually recalculate the premium of
     $24,867.75 to within approximately $400 of the actual amount paid, it was
     deemed unnecessary to regenerate the purchase due to time commitments
     already in place for IT staff. No other exceptions were noted.

2.   National Credit Bureau Reporting

     For 25 FFELP loans purchased from October 1, 2001 through September 30,
     2002, we traced the purchase to the tape history of information reported to
     the credit bureau to ensure that the national credit bureaus were notified
     of the total amount of loans the lender has made to each borrower within 90
     days of each acquisition and that other information as required by 34 CFR
     (S)682.208(b) was reported as required.

     No exceptions were noted.

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 4

3.   Alternative Loan Origination Process

     We inquired and documented the procedures used during the alternative loan
     origination process and selected 25 alternative loans originated during the
     year ended December 31, 2002. We traced the disbursement to CMSI system to
     determine whether the truth-in-lending disclosure statement was generated
     and sent prior to first disbursement.

     For the 25 loans selected, we recalculated the origination fee based on the
     alternative loan program the borrower is participating in and the
     borrower's credit score. We compared the borrower's application for their
     alternative loan to the program in which they were participating to ensure,
     based on the note level indicator, the borrower was in the program for
     which they applied. We traced the borrower's school to the program
     eligibility report that lists which schools can participate in which
     alternative loan programs.

     For 5 of the 25 loans, we traced the originated loan amount from the check
     disbursement listing to the alternative loan ACH processing sheets. For the
     same loans, we traced the total daily disbursement amount from the
     processing sheets to the bank statement and general ledger.

     Two exceptions were noted where the truth-in-lending disclosure was not
     generated or sent to the borrower. No other exceptions were noted.
     Subsequent to our discovery of the exceptions, the Company has made system
     modifications and implemented a review process to ensure all future
     disclosures are generated and mailed as required.

4.   Alternative Loan Rejections

     We obtained a report of all alternative loan application rejections for the
     period from January 1, 2002 through December 16, 2002. For 25 rejections,
     we compared the loan application information to the Company's credit
     policies to ensure that denial of the loan application was in accordance
     with the Company's credit policies.

     No exceptions were noted.

Servicing and Due Diligence

1.   Borrower File Review

     Our procedures were designed to ensure that borrower files were complete
     and included all documentation required by the Higher Education Act of
     1965, as amended and that administrative procedures included all applicable
     due diligence relating to the servicing and collection of student loans in
     accordance with current federal regulations.

     Accordingly, for the FFELP loans included in our initial sample, our
     procedures included ensuring the original application, notice of guarantee
     and disclosure statements, evidence of disbursement, promissory notes, loan
     type, evidence of meeting aggregate loan limits, enrollment status, loan
     status conversions, repayment history, collection history and other
     documents or administrative procedures required by current federal
     regulations were present in the file and/or on the loan servicing system.

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 5

     For the alternative loans included in our initial sample, our procedures
     included ensuring borrower files were complete and included the original
     application, disclosure statements, evidence of disbursement, promissory
     notes, enrollment status information, loan conversion information, and a
     complete repayment history.

     No exceptions were noted.

2.   Delinquent Accounts

     Obtained a recent delinquency report, selected 25 FFELP borrowers and
     compared SLFC's due diligence activities for the period hereafter defined
     to lender due diligence activities required by 34 CFR (S)682.411. From the
     same delinquency report, we selected 5 alternative loan borrowers and
     compared SLFC's due diligence activities for the period hereafter defined
     to the lender due diligence activities required by the Company's
     alternative loan collection policy. The due diligence period was from
     October 1, 2001 to the date of the procedure unless the borrower was
     delinquent, in which case the period for due diligence began April 1, 2001.

     For each of the 30 borrowers noted above, we also selected one telephone
     call made to borrowers as documented on the student loan servicing system
     collection history and traced them to actual telephone bills to ensure
     contacts were made as indicated.

     No exceptions were noted.

3.   Deferment and Forbearance

     Procedures and documentation concerning forbearance and deferment is
     designed to determine the eligibility for such classification and the
     proper completion of all required forms and documents.

     Accordingly, for the loans included in our initial sample which were in
     deferment or forbearance status at any time during the due diligence period
     defined in #2 above, we examined the file for signed requests, evidence of
     default, agreed terms, which included the beginning and ending dates of the
     change in status, and whether only authorized circumstances for deferment
     are allowed. Less than 10 deferments were processed during the period from
     January 1, 2002 through the date of our procedures from our initial sample,
     therefore, additional borrowers were selected from our negative
     confirmation listing who had deferments granted during the period from
     October 1, 2001 to September 30, 2002 so that the total number was 10.
     These deferments were examined for the same items noted in the first
     sentence.

     No exceptions were noted.

4.   Return Mail

     We selected 5 dates at random. For each of the 5 dates, we selected 5
     pieces of return mail from workflow, to determine if the return mail
     processing was initiated within the 10-day requirement.

     No exceptions were noted.

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 6

5.   Payments

     Our procedures are designed to ensure payments received on student loans
     are appropriately applied in accordance with the terms of the various loan
     programs and, if applicable, late charges are appropriately calculated.

     Accordingly, for 25 FFELP and 5 alternative loans, we recalculated the
     application of principal, interest, and late fees for a payment received on
     the borrowers account between October 1, 2001 and September 30, 2002.

     For the 30 payments described above, if the payment was received from
     October 2001 through January 2002, we traced the individual payments to a
     detailed payment report (the RPIS). We traced the total daily payment
     amount per the RPIS to the monetary transaction journal (MTJ). We then
     traced the total amount per the MTJ to the transaction breakdown report,
     which summarizes the MTJ by bond issue and is used to post to the general
     ledger. For payments beginning in February 2002, we traced individual
     payments to the appropriate daily compact disk (CD) received from US Bank
     that has support for borrower payments. We agreed the total payment amount
     per the CD to the transaction breakdown report. For all payments selected,
     we traced the transaction breakdown totals to the general ledger.

     No exceptions were noted.

6.   Special Allowance and Interest Subsidies

     Our procedures are designed to examine the classification and coding of
     loans, as to eligibility for special allowance and interest subsidies,
     based on applicable criteria, including the date of disbursement.

     Accordingly, for the loans included in our initial sample, we compared the
     interest rate on the servicing system to the federal regulation
     requirements for FFELP loans and Company interest rate schedules for
     alternative loans to ensure that the correct interest rate was assigned to
     each loan.

     For all loans for all borrowers selected for negative confirmation, we used
     computer aided audit techniques (CAATS) to ensure the correct special
     allowance code was assigned to each loan.

     A significant amount of the Corporation's accounting and statistical data
     is generated by electronic data processing systems. Amounts billed to the
     Department of Education for interest subsidy and special allowance are
     generated from such programs. For the quarters ended March 31, 2002 and
     September 30, 2002, we used CAATS to reperform certain calculations and
     routines, which are an integral part of generating the information used in
     preparing the government billings (ED Form 799s).

     The results of those procedures indicated that the information generated by
     electronic data processing systems in preparation of government billings
     was reliable.

     One exception relating to special allowance code assignment was noted.
     While an incorrect code was assigned to the loan, it was a non-subsidized
     loan thereby having no affect on special allowance billed to ED. No other
     exceptions were noted.

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 7

7.   Timely Claim Filings

     Our procedures are designed to examine the processing of claims for payment
     of death, disability, closed schools, false certification, bankruptcy and
     default claims to assure claims are filed within applicable time frames and
     in accordance with specific requirements for reimbursement by the guarantee
     agencies.

     Accordingly, we selected 25 loans from the claims transmittal sheets filed
     for the period of October 1, 2001 through September 30, 2002, which
     included three bankruptcy claims, two death claims, three disability
     claims, and seventeen default claims. For the disability, death and
     bankruptcy claims, we recomputed the number of days from receipt of
     required documents to the date the claim was filed. For default claims, we
     recomputed the number of days delinquent and compared it to the date the
     claim was filed to ensure compliance. We scanned the loan delinquency
     report as of November 18, 2002 and found no eligible loans delinquent for a
     period exceeding the claim filing deadline.

     In addition, we selected 25 of the 108 claims that were rejected during the
     period of October 1, 2001 through September 30, 2002. Of the 25 claims,
     eight were resubmitted and subsequently paid, eleven were transferred back
     to repayment status, one was paid in full through federal direct
     consolidation, one was resubmitted but has not yet been paid, and three
     were reclassified as unguaranteed loans and transferred to a collection
     agency.

     No exceptions were noted.

8.   ED Form 799s

     We traced all information reported on Education Loans Incorporated's ED
     Form 799s for the quarters ended March 31, 2002 and September 30, 2002 to
     supporting documentation to ensure that information reported to the
     Department of Education is supported by Corporation books and records.

     We recalculated 25 borrower loans for prior quarter special allowance
     adjustments reported on ED Form 799s. We agreed the adjustment to
     appropriate documentation and determined the propriety of the adjustment.

     We recalculated 25 borrower loans for prior quarter government interest
     adjustments reported on ED Form 799s. We agreed the adjustment to
     appropriate documentation and determined the propriety of the adjustment.

     We recalculated 25 borrower loans for prior quarter origination fee
     adjustments reported on ED Form 799s. We agreed the adjustment to
     appropriate documentation and determine the propriety of the adjustment.

     We recalculate borrower consolidated loans for current quarter origination
     fees reported on ED Form 799.

     We noted no exceptions.

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 8

9.   Loan Classification and Status

     Our procedures relating to the loan classification and status are based on
     examining file documentation to ascertain the loan is properly classified
     in accordance with information and data contained in the borrower file.

     Accordingly, we selected 20 status changes from the student status
     confirmation reports sent to and received from schools, whose loans are not
     guaranteed by Education Assistance Corporation (EAC) or Pennsylvania Higher
     Education Assistance Agency (PHEAA), to ensure the changes were made to the
     student loan servicing system. For loans guaranteed by EAC and PHEAA where
     EAC performs the status confirmation process with the schools, we selected
     10 status changes from reports received from EAC to ensure that the changes
     were made to the system.

     We noted no exceptions.

10.  Cures

     There was only one cure reported on the ED Form 799s submitted during the
     year ended December 31, 2002. For the loan cured, we examined the student
     loan servicing records to determine that the required cure procedures were
     performed.

     No exceptions were noted.

We also performed the procedures enumerated below, which were agreed to by the
Board of Directors and management of Student Loan Finance Corporation, as
servicer for Education Loans Incorporated, solely to assist the users in
evaluating management's assertion regarding the accuracy of the 2002 Servicing
Reports (Indenture 1999-1) and the loan information which collateralizes the
Student Loan Asset-Based Notes, Series 1999-1, 2000-1, 2001-1 and 2002-1, as of
December 31, 2002 and for the year then ended. SLFC's management is responsible
for ensuring the 2002 servicing reports are accurate. This agreed-upon
procedures engagement was performed in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The
sufficiency of these procedures is solely the responsibility of the specified
users of this letter. Consequently, we make no representation regarding the
sufficiency of the procedures described below either for the purpose for which
this letter has been requested or for any other purpose.

Our procedures and findings are as follows:

1.   We have read the following, set forth in the applicable monthly 2002
     Servicing Reports for the 1999-1 Indenture on the indicated pages, and have
     performed the additional procedures stated below with respect to such
     information which were applied as indicated with respect to the references
     explained below:

<TABLE>
<CAPTION>
                                                                                   Procedures
                                                                                   performed
                                                                                (see explanation
Item     Page                         Description                                  in item 2)
----     ----    ----------------------------------------------------------       ------------
<S>        <C>    <C>                                                             <C>
I-C        1     "PRINCIPAL OUTSTANDING - DECEMBER, 2002."
                 The balance outstanding at the beginning of the month and
                 the balance outstanding at the end of the month.                      a
</TABLE>

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 9

<TABLE>
<CAPTION>
                                                                                               Procedures
                                                                                               performed
                                                                                            (see explanation
Item        Page                                 Description                                    in item 2)
----        ----       -----------------------------------------------------------------       ------------
<S>         <C>        <C>                                                                     <C>
I-D           2        "INTEREST RATE AS OF END OF MONTH."  The percentage
                       at which each bond issue is accruing interest, as reported in the
                       December 2002 Servicing Report.                                                    b

I-D           2        "ACCRUED INTEREST OUTSTANDING - DECEMBER,
                       2002."  The dollar amount of accrued interest outstanding
                       as of the end of the month.                                                        c

I-E           2        "NET LOAN RATES FOR NEXT INTEREST PERIOD."
                       The net loan rates for the next interest period for Series 1999-1,
                       2000-1, 2001-1 and 2002-1 Notes.                                                   d

II-A          4        "RESERVE FUNDS - DECEMBER, 2002."  The dollar amount
                       as of the start of the month, the change during the month, and the
                       balance at the end of the month.                                                   e

II-B          4        "CAPITALIZED INTEREST ACCOUNTS - DECEMBER, 2002."
                       The dollar amount as of the start of the month, the change during
                       the month, and the balance at the end of the month.                                e

II-C          4        "ACQUISITION ACCOUNTS - DECEMBER, 2002."  The dollar
                       amount as of the start of the month, the changes during the
                       month, and the balance at the end of the month.                                    e

II-D          4        "ALTERNATIVE LOAN GUARANTEE ACCOUNTS -
                       DECEMBER, 2002."  The dollar amount as of the start of
                       the month, the changes during the month, and the balance
                       at the end of the month.                                                           e

III-A         5        "STUDENT LOAN PRINCIPAL OUTSTANDING -
                       DECEMBER, 2002."  The dollar amount as of the start of
                       the month, the changes during the month, and the balance at
                       the end of the month.                                                              f

III-B                  5 "COMPOSITION OF STUDENT LOAN PORTFOLIO AS OF DECEMBER
                       31, 2002." The aggregate outstanding principal balance,
                       number of borrowers, average outstanding principal
                       balance per borrower, number of loans (promissory notes),
                       average outstanding principal balance per loan, and
                       weighted average interest rate.                                                    g

III-C         5        "DISTRIBUTION OF STUDENT LOAN PORTFOLIO BY
                       LOAN TYPE AS OF DECEMBER 31, 2002."  The
                       outstanding principal balance detailed by loan type and the
                       relative percentage to the total.                                                  h
</TABLE>

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 10

<TABLE>
<CAPTION>
                                                                                                    Procedures
                                                                                                    performed
                                                                                                (see explanation
Item          Page                             Description                                          in item 2)
----          ----     -----------------------------------------------------------                 ------------
<S>           <C>      <C>                                                                        <C>
III-D         5        "DISTRIBUTION OF STUDENT LOAN PORTFOLIO BY
                       INTEREST RATE AS OF DECEMBER 31, 2002."  The
                       outstanding principal balance detailed by interest rate and
                       the relative percentage to the total.                                              h

III-E         6        "DISTRIBUTION OF STUDENT LOAN PORTFOLIO BY
                       BORROWER PAYMENT STATUS AS OF DECEMBER 31,
                       2002."  The outstanding principal balance detailed by
                       borrower payment status and the relative percentage to the
                       total.                                                                             h

III-F         6        "DISTRIBUTION OF STUDENT LOAN PORTFOLIO BY
                       DELINQUENCY STATUS AS OF DECEMBER 31, 2002."
                       The outstanding principal balance detailed by delinquency
                       status and the relative percentage to the total.                                   h

III-G         6        "DISTRIBUTION OF STUDENT LOAN PORTFOLIO BY
                       GUARANTEE STATUS AS OF DECEMBER 31, 2002."
                       The outstanding principal balance detailed by guarantee
                       status and the relative percentage to the total.                                   h

III-H         6        "DISTRIBUTION OF STUDENT LOAN PORTFOLIO BY
                       GUARANTEE AGENCY AS OF DECEMBER 31, 2002."
                       The outstanding principal balance detailed by guarantee
                       agency and the relative percentage to the total.                                   h

III-I         7        "FEES AND EXPENSES ACCRUED FOR/THROUGH
                       DECEMBER 2002."  The dollar amount of fees incurred
                       for the one month and twelve months ended December 31,
                       2002.                                                                              i

III-J         7        "RATIO OF ASSETS TO LIABILITIES AS OF DECEMBER 31,
                       2002."  The dollar amounts representing total indenture
                       assets and liabilities and the ratio thereto.                                      j

III-K         7        "SENIOR AND SUBORDINATE PERCENTAGES AS OF DECEMBER 31, 2002."
                       The dollar amounts of assets included in calculation of
                       dividend prerequisite, dollar amounts of senior and
                       subordinate debt and the relative percentages of assets to
                       liabilities.                                                                       k

I-C           1        "PRINCIPAL OUTSTANDING - JANUARY, 2002."
                       The balance outstanding at the beginning of the month and
                       the balance outstanding at the end of the month.                                   l
</TABLE>

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 11

<TABLE>
<CAPTION>
                                                                                                   Procedures
                                                                                                   performed
                                                                                               (see explanation
Item        Page                                   Description                                     in item 2)
----        ----       --------------------------------------------------------------------       ------------
<S>         <C>        <C>                                                                        <C>
I-D           2        "INTEREST RATE AS OF END OF MONTH - JULY, 2002."
                       The percentage at which each bond issue is accruing interest.                      m

I-D           2        "ACCRUED INTEREST OUTSTANDING - MAY,
                       2002."  The dollar amount of accrued interest outstanding
                       as of the end of the month.                                                        n

I-E           2        "NET LOAN RATES FOR NEXT INTEREST PERIOD -
                       MARCH, 2002."  The net loan rates for the next interest
                       period for Series 1999-1, 2000-1, and 2001-1 Notes.                                o

II-A          3        "RESERVE FUNDS - MAY, 2002."  The dollar amount
                       as of the start of the month, the change during the month, and the
                       balance at the end of the month.                                                   p

II-B          4        "CAPITALIZED INTEREST ACCOUNTS - SEPTEMBER, 2002."
                       The dollar amount as of the start of the month, the change during
                       the month, and the balance at the end of the month.                                q

II-C          4        "ACQUISITION ACCOUNTS - NOVEMBER, 2002."  The dollar
                       amount as of the start of the month, the changes during the
                       month, and the balance at the end of the month.                                    r

II-D          3        "ALTERNATIVE LOAN GUARANTEE ACCOUNTS -
                       APRIL, 2002."  The dollar amount as of the start of
                       the month, the changes during the month, and the balance
                       at the end of the month.                                                           s

III-A         5        "STUDENT LOAN PRINCIPAL OUTSTANDING -
                       OCTOBER, 2002."  The dollar amount as of the start of the
                       month, the changes during the month, and the balance at
                       the end of the month.                                                              t

III-B                  4 "COMPOSITION OF STUDENT LOAN PORTFOLIO AS OF AUGUST 31,
                       2002." The aggregate outstanding principal balance,
                       number of borrowers, average outstanding principal
                       balance per borrower, number of loans (promissory notes),
                       average outstanding principal balance per loan, and
                       weighted average interest rate.                                                    u

III-C         4        "DISTRIBUTION OF STUDENT LOAN PORTFOLIO BY
                       LOAN TYPE AS OF FEBRUARY 28, 2002."  The
                       outstanding principal balance detailed by loan type and the
                       relative percentage to the total.                                                  v
</TABLE>

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 12

<TABLE>
<CAPTION>
                                                                                                     Procedures
                                                                                                     performed
                                                                                                 (see explanation
Item          Page                                Description                                        in item 2)
----          ----     -----------------------------------------------------------------            ------------
<S>           <C>      <C>                                                                          <C>
III-D         4        "DISTRIBUTION OF STUDENT LOAN PORTFOLIO BY
                       INTEREST RATE AS OF JUNE 30, 2002."  The
                       outstanding principal balance detailed by interest rate and
                       the relative percentage to the total.                                              v

III-E         5        "DISTRIBUTION OF STUDENT LOAN PORTFOLIO BY
                       BORROWER PAYMENT STATUS AS OF MARCH 31,
                       2002."  The outstanding principal balance detailed by
                       borrower payment status and the relative percentage to the
                       total.                                                                             v

III-F         5        "DISTRIBUTION OF STUDENT LOAN PORTFOLIO BY
                       DELINQUENCY STATUS AS OF JULY 31, 2002."
                       The outstanding principal balance detailed by delinquency
                       status and the relative percentage to the total.                                   v

III-G         6        "DISTRIBUTION OF STUDENT LOAN PORTFOLIO BY
                       GUARANTEE STATUS AS OF OCTOBER 31, 2002."
                       The outstanding principal balance detailed by guarantee
                       status and the relative percentage to the total.                                   v

III-H         5        "DISTRIBUTION OF STUDENT LOAN PORTFOLIO BY
                       GUARANTEE AGENCY AS OF APRIL 30, 2002."
                       The outstanding principal balance detailed by guarantee
                       agency and the relative percentage to the total.                                   v

III-I         6        "FEES AND EXPENSES ACCRUED FOR/THROUGH
                       FEBRUARY, 2002."  The dollar amount of fees incurred
                       for the one month and two months ended February 28,
                       2002.                                                                              w

III-J         7        "RATIO OF ASSETS TO LIABILITIES AS OF NOVEMBER 30,
                       2002."  The dollar amounts representing total indenture
                       assets and liabilities and the ratio thereto.                                      x

III-K         7        "SENIOR AND SUBORDINATE PERCENTAGES AS OF
                       OCTOBER 31, 2002." The dollar amounts of assets included
                       in calculation of dividend prerequisite, dollar amounts of
                       senior and subordinate debt and the relative percentages
                       of assets to liabilities.                                                          y
</TABLE>

2.   We have performed the following procedures, which were applied, as
     indicated, to the items enumerated above:

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 13

     Item
     In 1.  Procedures and Findings

     a.     We agreed the principal balance outstanding at the beginning of
            December 2002 to the Corporation's general ledger without exception.
            We agreed the balance outstanding at the end of the month to the
            Corporation's general ledger without exception.

     b.     We obtained copies of the auction rate notifications received by the
            Corporation which state the interest rates applicable as of December
            31, 2002 on the Series 1999-1, Series 2000-1, Series 2001-1, and
            Series 2002-1 Notes and agreed the rates to those used in the
            calculation of accrued interest without exception.

     c.     We obtained the accrued interest payable worksheet prepared by the
            Corporation and agreed the outstanding principal balance to the
            amounts from 2.a. above and agreed the interest rates to 2.b. above.
            The accrued interest amount as of December 31, 2002 was recalculated
            and agreed to the Corporation's general ledger without exception.

     d.     We obtained the worksheet prepared by the Corporation to determine
            the Net Loan Rate Calculation for the next interest period for the
            Series 1999-1, 2000-1, 2001-1, and 2002-1 Notes. We recalculated the
            net loan rate for the Series 1999-1, 2000-1, 2001-1, and 2002-1
            Notes without exception.

     e.     We obtained the December 2002 U.S. Bank National Association trustee
            statements for the Reserve Funds, Capitalized Interest Accounts,
            Acquisition Accounts, and the Alternative Loan Guarantee Accounts
            and agreed the activity for the month of December 2002 to the
            Corporation's general ledger without exception.

     f.     We agreed the change in the student loan principal balance for the
            month of December 2002 to the December certifications from the
            Corporation to U.S. Bank National Association Trust Department
            without exception.

     g.     We obtained the loan portfolio information from each loan servicer
            (Student Loan Finance Corporation, Educational Assistance Service
            Company, Inc., ACS Education Services, and Great Lakes Higher
            Education Servicing Corporation) and verified the mathematical
            accuracy of the number of borrowers and number of loans (promissory
            notes). We noted the following exceptions outlined below:

<TABLE>
<CAPTION>
                                                                       Reported      Our Count
                                                                       --------      ---------
            <S>                                                          <C>           <C>
            Number of Borrowers                                          81,403        82,299
            Average Outstanding Principal Balance Per Borrower         $  7,083      $  7,006
            Number of Loans (Promissory Notes)                          173,861       174,936
            Average Outstanding Principal Balance Per Loan             $  3,316      $  3,296
</TABLE>

            The average outstanding principal balance per borrower and per loan
            was recalculated based on the aggregate outstanding principal
            balance at December 31, 2002 from in 2.f. above. The exceptions are
            noted above.

            We agreed the weighted-average interest rate to the worksheet
            referred to in 2.h. below. No exceptions were noted.

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 14

     Item
     In 1.  Procedures and Findings

     h.     We obtained a copy of the worksheet prepared by the Corporation
            accumulating loan portfolio information by loan type, interest rate,
            borrower payment status, delinquency status, guarantee status, and
            guarantee agency from reports that have been obtained from each loan
            servicer (Student Loan Finance Corporation, Educational Assistance
            Service Company, Inc., ACS Education Services, and Great Lakes
            Higher Education Servicing Corporation). We compared the outstanding
            principal balances for each servicer to the worksheet, verified the
            mathematical accuracy of the total, and recalculated the respective
            percentages without exception.

     i.     We obtained the general ledger detail of fees and expenses incurred
            during the month and year ended December 31, 2002 and agreed the
            amounts to the December Servicing Report without exception.

     j.     We obtained the December 31, 2002 trial balance of the Indenture,
            verified the mathematical accuracy of the Indenture Asset and
            Liability calculations, and agreed the amounts to the December
            Servicing Report without exception. The ratio of assets to
            liabilities was recalculated without exception.

     k.     We obtained the worksheet prepared by the Corporation and agreed the
            aggregate value of assets (all assets less provision for loan loss),
            senior notes outstanding plus accrued interest, and all notes
            outstanding plus accrued interest to the trial balance as of
            December 31, 2002. We also recalculated the senior and subordinate
            percentages.

     l.     We agreed the principal balance outstanding at the beginning of
            January 2002 to the Corporation's general ledger without exception.
            We agreed the balance outstanding at the end of January 2002 to the
            Corporation's general ledger without exception.

     m.     We obtained copies of the auction rate notifications received by the
            Corporation which state the interest rates applicable as of July 31,
            2002 on the Series 1999-1, 2000-1, and 2001-1 Notes and agreed the
            rates to those used in the calculation of accrued interest without
            exception.

     n.     We obtained the accrued interest payable worksheet prepared by the
            Corporation as of May 31, 2002. The accrued interest amount as of
            May 31, 2002 was recalculated and agreed to the Corporation's
            general ledger without exception.

     o.     We obtained the March 2002 worksheet prepared by the Corporation to
            determine the 1999-1 Net Loan Rate Calculation for the next interest
            period for the Series 1999-1, 2000-1, and 2001-1 Notes. We
            recalculated the net loan rate for the Series 1999-1, 2000-1, and
            2001-1 Notes as reported on the March 2002 servicing report without
            exception.

     p.     We agreed the balance at the start of the month, the changes during
            the month and the balance at the end of the month for the Reserve
            Fund Accounts as reported on the May 2002 Servicing Report to the
            Corporation's general ledger without exception.

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 15

     Item
     In 1.  Procedures and Findings

     q.     We agreed the balance at the start of the month, the changes during
            the month and the balance at the end of the month for the
            Capitalized Interest Accounts as reported on the September 2002
            Servicing Report to the Corporation's general ledger without
            exception.

     r.     We agreed the balance at the start of the month, the changes during
            the month and the balance at the end of the month for the
            Acquisition Accounts as reported on the November 2002 Servicing
            Report to the Corporation's general ledger without exception.

     s.     We agreed the balance at the start of the month, the changes during
            the month and the balance at the end of the month for the
            Alternative Loan Guarantee Accounts as reported on the April 2002
            Servicing Report to the Corporation's general ledger without
            exception.

     t.     We agreed the change in the student loan principal balance for the
            month of October 2002 to the October certifications from the
            Corporation to U.S. Bank National Association Trust Department
            without exception.

     u.     We obtained the loan portfolio information from each loan servicer
            (Student Loan Finance Corporation, Educational Assistance Service
            Company, Inc., ACS Education Services, and Great Lakes Higher
            Education Servicing Corporation) and verified the mathematical
            accuracy of the number of borrowers and number of loans (promissory
            notes). The average outstanding principal balance was recalculated
            based on the aggregate outstanding principal balance at August 31,
            2002. We agreed the weighted-average interest rate to a worksheet
            prepared by the Corporation. No exceptions were noted.

     v.     We obtained a copy of the worksheet prepared by the Corporation
            accumulating loan portfolio information by loan type, interest rate,
            borrower payment status, delinquency status, guarantee status, and
            guarantee agency from reports that have been obtained from each loan
            servicer (Student Loan Finance Corporation, Educational Assistance
            Service Company, Inc., ACS Education Services, and Great Lakes
            Higher Education Servicing Corporation). We compared the outstanding
            principal balances for each servicer to the worksheet, verified the
            mathematical accuracy of the total, and recalculated the respective
            percentages without exception.

     w.     We obtained the general ledger detail of fees and expenses incurred
            during the month and two months ended February 28, 2002 and agreed
            the amounts to the February Servicing Report without exception.

     x.     We obtained the November 30, 2002 trial balance of the Indenture,
            verified the mathematical accuracy of the Indenture Asset and
            Liability calculations, and agreed the amounts to the November
            Servicing Report without exception. The ratio of assets to
            liabilities was recalculated without exception.

     y.     We obtained the worksheet prepared by the Corporation and agreed the
            aggregate values of assets (all assets less provision for loan
            loss), senior notes outstanding plus accrued interest, and all notes
            outstanding plus accrued interest to the trial balance as of October
            31, 2002. We also recalculated the senior and subordinate
            percentages without exception.

<PAGE>

Student Loan Finance Corporation
Education Loans Incorporated
Page 16

We were not engaged to, and did not perform an auditor examination, the
objective of which would be the expression of an opinion on the specified
elements, accounts or items relating to the 2002 Servicing Reports. Accordingly,
we do not express such an opinion. Had we performed additional procedures, other
matters might have come to our attention that would have been reported to you.

This report is intended solely for the information and use of the Board of
Directors, the management of Education Loans Incorporated, the management of
Student Loan Finance Corporation, Education Loans Incorporated's trustee and the
Securities and Exchange Commission and is not intended to be and should not be
used by those who have not agreed to the procedures and taken responsibility for
the sufficiency of the procedures for their purposes. However, this report is a
matter of public record and its distribution is not limited.

/s/ Eide Bailly LLP

Aberdeen, South Dakota
March 6, 2003