Document:

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                                                                     EXHIBIT 4.2
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                      THIRD SUPPLEMENTAL INDENTURE OF TRUST

                                     between

                          EDUCATION LOANS INCORPORATED

                                       and

                         U.S. BANK NATIONAL ASSOCIATION

                                   as Trustee

                                   ----------

                            Dated as of July 1, 2001

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                                TABLE OF CONTENTS
                                                                           Page
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PARTIES......................................................................1
RECITALS.....................................................................1

Section 1.   Definitions.....................................................1
Section 2.   Authorization and Terms of Series 2001-1 Notes.................11
Section 3.   Interest Payable on Series 2001-1 Notes........................13
Section 4.   Determining the Series 2001-1 Note Auction Rate................16
Section 5.   Determination of Payment Defaults and Payment of
             Auction Agent and Broker-Dealer Fees...........................25
Section 6.   Calculation of Maximum Auction Rate, All Hold
             Rate, Net Loan Rate, One-Month LIBOR,Three-Month
             LIBOR and Non-Payment Rate.....................................25
Section 7.   Notification of Rates, Amounts and Payment Dates...............26
Section 8.   Auction Agent..................................................27
Section 9.   Broker-Dealers.................................................28
Section 10.  Changes in Auction Period or Periods...........................28
Section 11.  Changes in the Auction Date....................................29
Section 12.  Additional Provisions Regarding the Series 2001-1
             Note Interest Rate.............................................29
Section 13.  Qualifications of Market Agent.................................30
Section 14.  Purposes of Issuance of Series 2001-1 Notes....................31
Section 15.  Deposit of Series 2001-1 Note Proceeds.........................31
Section 16.  Redemption of Series 2001-1 Notes..............................31
Section 17.  Book-Entry Series 2001-1 Notes.................................34
Section 18.  Series 2001-1 Accounts and Subaccounts.........................36
Section 19.  Series 2001-1 Capitalized Interest Account.....................37
Section 20.  Purchase or Origination of Eligible Loans From Series
             2001-1 Acquisition Account and Series 2001-1 Surplus
             Subaccount.....................................................37
Section 21.  Limitation on Costs of Issuance, Administrative Expenses
             and Note Fees..................................................40
Section 22.  Proceeds of Sales of Certain Student Loans To Be
             Deposited in the Acquisition Fund..............................41
Section 23.  Certain Findings, Determinations and Designations..............41
Section 24.  Amendment of Granting Clause First of the Indenture............42
Section 25.  Amendment of Section 5.04 of the Indenture.....................42
Section 26.  Consent of Series 2001-1 Noteholders to Amendments
             to Indenture...................................................43
Section 27.  Governing Law..................................................43
Section 28.  Section Headings; Table of Contents............................43
Section 29.  Severability...................................................43
Section 30.  Counterparts...................................................43
Section 31.  Effect of Third Supplemental Indenture.........................43

SIGNATURES..................................................................45

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Exhibit A--Form of Series 2001-1 Senior Notes..............................A-1
Exhibit B--Form of Series 2001-1C Notes....................................B-1
Exhibit C--Form of Notice of A Payment Default.............................C-1
Exhibit D--Form of Notice of Cure of Payment Default.......................D-1
Exhibit E--Form of Notice of Proposed Auction Period Adjustment............E-1
Exhibit F--Form of Notice Establishing Auction Period Adjustment...........F-1
Exhibit G--Form of Notice of Change in Auction Date........................G-1
Exhibit H-1--List of EdLinc Student Loan Purchase Agreements  ...........H-1-1
Exhibit H-2--List of GOAL Funding Student Loan Purchase Agreements  .....H-2-1

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     THIS THIRD SUPPLEMENTAL INDENTURE OF TRUST, dated as of July 1, 2001,
between EDUCATION LOANS INCORPORATED, a corporation duly organized and existing
under the laws of the State of Delaware (the "Corporation"), and U.S. BANK
NATIONAL ASSOCIATION, a national banking association duly established, existing
and authorized to accept and execute trusts of the character herein set out
under and by virtue of the laws of the United States (the "Trustee");

                              W I T N E S S E T H:

     WHEREAS, the Corporation and the Trustee, as trustee, have heretofore
executed and delivered an Indenture of Trust (the "Original Indenture") and a
First Supplemental Indenture of Trust (the "First Supplemental Indenture"), each
dated as of December 1, 1999, and a Second Supplemental Indenture of Trust (the
"Second Supplemental Indenture"), dated as of December 1, 2000; and

     WHEREAS, the Original Indenture prescribes the terms and conditions upon
which the Corporation may from time to time authorize and issue series of Notes
(as defined in the Original Indenture); and

     WHEREAS, the Corporation has, by proper action of its Board, authorized and
determined to issue three series of Notes in the respective aggregate principal
amounts of $79,000,000 (the "Series 2001-1A Notes") and $79,000,000 (the "Series
2001-1B Notes"), each of which will be a series of Class A Notes, and
$23,800,000 (the "Series 2001-1C Notes," and, together with the Series 2001-1A
Notes and the Series 2001-1B Notes, the "Series 2001-1 Notes"), which will be a
series of Class B Notes; and

     WHEREAS, the Corporation desires by this Third Supplemental Indenture to
prescribe the terms and provisions of the Series 2001-1 Notes, all as more fully
set forth herein; and

     WHEREAS, the Corporation also desires, at this time, to amend certain
provisions of the Indenture in conjunction with the issuance of the Series
2001-1 Notes; and

     WHEREAS, the execution and delivery of this Third Supplemental Indenture
and the issuance of the Series 2001-1 Notes have been in all respects duly and
validly authorized by the Corporation;

     NOW, THEREFORE, THIS THIRD SUPPLEMENTAL INDENTURE WITNESSETH:

     Section 1. Definitions. In this Third Supplemental Indenture, the terms
defined in the Original Indenture, the First Supplemental Indenture and the
Second Supplemental Indenture shall, except as otherwise provided in this
Section 1, have the same meaning when used herein unless the context or use
thereof indicates another or different meaning or intent. In addition, the
following terms shall have the following respective meanings unless the context
hereof clearly requires otherwise:

     "Administrative Cost and Note Fee Rate" shall mean a rate per annum equal
to the sum of (i) 1.05%, (ii) the Auction Agent Fee Rate and (iii) the
Broker-Dealer Fee Rate.

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     "All Hold Rate" shall mean (i) for Auction Periods of thirty-five (35) days
or less, 85% of One-Month LIBOR, and (ii) for Auction Periods of greater than
thirty-five (35) days, 85% of Three-Month LIBOR.

     "Alternative Loan Program" shall mean each of the following programs for
the making of Student Loans other than FFELP Loans the Alternative Loans under
which are eligible to be Financed under the Indenture: (i) the Great
Opportunities Academic Loan and Great Opportunities Academic Loan II Programs
offered by U.S. Bank National Association; (ii) the Choice Loan, Pathway,
Partner and MEFC Loan Programs offered by Marquette Bank, N.A.; (iii) the Quest
Loan, Independence, Bremer Education and BrainBucks Loan Programs offered by
Surety Loan Funding Company; and (iv) such other programs upon receipt by the
Trustee of written notice thereof by an Authorized Officer of the Corporation
and confirmation from each Rating Agency that financing of loans under such
programs under the Indenture will not cause the withdrawal or downgrade of any
rating of any series of Notes any of which are Outstanding.

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

     "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" shall have the meaning ascribed to such term in the
Auction Agent Agreement.

     "Auction Agent Fee Rate" shall have the meaning ascribed to such term in
the Auction Agent Agreement.

     "Auction Date" shall mean, initially, (i) with respect to the Series
2001-1A Notes and the Series 2001-1C Notes, August 29, 2001, and (ii) with
respect to the Series 2001-1B Notes, September 5, 2001, and, thereafter, with
respect to each such series of Series 2001-1 Notes, the Business Day immediately
preceding the first day of each Auction Period for such series, other than:

     (A)  an Auction Period commencing after the ownership of such series is no
          longer maintained in Book-Entry Form by the Securities Depository;

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

     (C)  an Auction Period commencing less than two (2) Business Days after the
          cure of a Payment Default.

Notwithstanding the foregoing, the Auction Date for one or more Auction Periods
may be changed pursuant to Section 11 of this Third Supplemental Indenture.

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     "Auction Period" shall mean the Interest Period applicable to the Series
2001-1A Notes, the Series 2001-1B Notes and the Series 2001-1C Notes, which
Auction Period (after the Initial Interest Period for each such series)
initially shall consist generally of twenty-eight (28) days, as the same may be
adjusted pursuant to Section 3 or Section 10 hereof.

     "Auction Period Adjustment" shall mean an adjustment to the Auction Period
as provided in Section 10 hereof.

     "Auction Procedures" shall mean the procedures set forth in Sections 4
through 11 hereof 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 4(c)(ii) hereof.

     "Authorized Denominations" shall mean, with respect to the Series 2001-1
Notes, $50,000 and any integral multiple thereof.

     "Available Series 2001-1 Notes" shall have the meaning ascribed to such
term in Section 4(c)(i)(A) hereof.

     "Bid" shall have the meaning ascribed to such term in Section 4(a)(i)
hereof.

     "Bid Auction Rate" shall have the meaning ascribed to such term in Section
4(c)(i) hereof.

     "Bidder" shall have the meaning ascribed to such term in Section 4(a)(i)
hereof.

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

     "Broker-Dealer" shall mean Salomon Smith Barney Inc., or any other 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 Corporation pursuant to Section 9 hereof and (c) has entered into a
Broker-Dealer Agreement with respect to one or more series of the Series 2001-1
Notes that is in effect on the date of reference.

     "Broker-Dealer Agreement" shall mean each agreement between the Auction
Agent and a Broker-Dealer, and approved by the Corporation, 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-

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Dealer Agreement, dated as of July 1, 2001, between Bankers Trust Company, as
Auction Agent, and Salomon Smith Barney Inc., as Broker-Dealer.

     "Broker-Dealer Fee" shall have the meaning ascribed to such term in the
Auction Agent Agreement.

     "Broker-Dealer Fee Rate" shall have the meaning ascribed to such term in
the Auction Agent Agreement.

     "Business Day" shall mean a day of the year on which (i) banks located in
the city in which the Principal Office of the Trustee is located are not
required or authorized to remain closed, (ii) banks located in the city in which
the Principal Office of the Auction Agent, as set forth in and for purposes of
the Auction Agent Agreement, is located are not required or authorized to remain
closed and (iii) The New York Stock Exchange is not closed. The Trustee shall
provide to the Auction Agent on the Closing Date, and on each December 1
thereafter, a list of all legal holidays in the state in which the Principal
Office of the Trustee is located during the ensuing twelve-month period.

     "Carry-Over Amount" shall mean, with respect to a Series 2001-1 Note, the
excess, if any, of (a) the amount of interest on such Note that would have
accrued with respect to the related Interest Period at the lesser of the Auction
Rate and the Series 2001-1 Note Auction Rate Limitation over (b) the amount of
interest on such Note actually accrued with respect to such Interest Period
based on the Net Loan Rate, together with the unpaid portion of any such excess
from prior Interest Periods; provided that any reference to "principal" or
"interest" in this Third Supplemental Indenture, in the Indenture and in the
Series 2001-1 Notes shall not include, within the meanings of such words, any
Carry-Over Amount or any interest accrued on any Carry-Over Amount.

     "Closing Cash Flow Projection" shall mean the Cash Flow Projection
delivered in conjunction with the issuance of the Series 2001-1 Notes.

     "Closing Date" shall mean, with respect to the Series 2001-1 Notes, July
30, 2001, the date of initial issuance and delivery of the Series 2001-1 Notes
hereunder.

     "Deposit Agent" shall mean, with respect to the Revenue Fund, Wells Fargo
Bank South Dakota, N.A., and its successor or successors and any other bank or
banking association having trust powers or trust company at any time substituted
in its place pursuant to the Indenture.

     "Effective Interest Rate" shall mean, with respect to any Financed Student
Loan, the interest rate per annum borne by such Financed Student Loan after
giving effect to all applicable interest subsidy payments, Special Allowance
Payments, rebate fees on Consolidation Loans and reductions pursuant to borrower
incentives. For this purpose, the Special Allowance Payment rate shall be
computed based upon the average of the bond equivalent rates of 91-day United
States Treasury Bills, or other appropriate rates, auctioned or otherwise
determined during that portion of the then current calendar quarter which ends
on the date as of which the "Effective Interest Rate" is determined.

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     "Eligible Carry-Over Make-Up Amount" shall mean, with respect to each
Interest Period relating to a series of Series 2001-1 Notes as to which, as of
the first day of such Interest Period, there is any unpaid Carry-Over Amount, an
amount equal to the lesser of (a) interest computed on the principal balance of
such series in respect of such Interest Period at a per annum rate equal to the
excess, if any, of the Net Loan Rate over the Series 2001-1 Note Auction Rate,
and (b) the aggregate Carry-Over Amount remaining unpaid as of the first day of
such Interest Period together with interest accrued and unpaid thereon through
the end of such Interest Period. The Eligible Carry-Over Make-Up Amount shall be
$0.00 for any Interest Period with respect to which the Series 2001-1 Note
Auction Rate equals or exceeds the Net Loan Rate.

     "Existing Holder" shall mean (i) 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 Holder Registry at the close of business on
the Business Day immediately preceding such Auction and (ii) 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 Series 2001-1 Notes.

     "Existing Holder Registry" shall mean the registry of Persons who are
owners of the Series 2001-1 Notes, maintained by the Auction Agent as provided
in the Auction Agent Agreement.

     "First Supplemental Indenture" shall mean the First Supplemental Indenture
of Trust, dated as of December 1, 1999, as amended or supplemented in accordance
with the terms thereof and of the Indenture.

     "Hold Order" shall have the meaning ascribed to such term in Section
4(a)(i) hereof.

     "Initial Auction Agent" shall mean Bankers Trust Company, a New York
banking corporation, its successors and assigns.

     "Initial Auction Agent Agreement" shall mean the Auction Agent Agreement,
dated as of July 1, 2001, by and among the Corporation, the Trustee and the
Initial Auction Agent, including any amendment thereof or supplement thereto.

     "Initial Interest Period" shall mean, as to a series of Series 2001-1
Notes, the period commencing on the Closing Date and continuing through the day
immediately preceding the Initial Interest Rate Adjustment Date for such series.

     "Initial Interest Rate Adjustment Date" shall mean, (i) with respect to the
Series 2001-1A Notes and the Series 2001-1C Notes, August 30, 2001, and (ii)
with respect to the Series 2001-1B Notes, September 6, 2001.

     "Interest Payment Date" shall mean (i) each regularly scheduled interest
payment date on the Series 2001-1 Notes, which shall be the Business Day
immediately following the expiration of the Initial Interest Period for such
series and each related Auction Period thereafter; or (ii) with respect to the
payment of interest upon redemption or acceleration of a Series 2001-1 Note or
the payment of Defaulted Interest, such date on which such interest is payable
under the Indenture.

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     "Interest Period" shall mean, with respect to a series of Series 2001-1
Notes, the Initial Interest Period and each period commencing on an Interest
Rate Adjustment Date for such series and ending on the last day before (i) the
next Interest Rate Adjustment Date for such series or (ii) the Stated Maturity
of such series, as applicable.

     "Interest Rate Adjustment Date" shall mean, with respect to a series of
Series 2001-1 Notes, the date on which a Series 2001-1 Note Interest Rate for
such series is effective, which shall be the date of commencement of each
Auction Period.

     "Interest Rate Determination Date" shall mean, with respect to a series of
Series 2001-1 Notes, the Auction Date, or, if no Auction Date is applicable to
such series, the Business Day immediately preceding the date of commencement of
an Auction Period.

     "London Business Day" shall mean any business day on which dealings in
deposits in United States dollars are transacted in the London interbank market.

     "Market Agent" shall mean Salomon Smith Barney Inc., New York, New York, in
such capacity hereunder, or any successor to it in such capacity hereunder.

     "Maximum Auction Rate" shall mean:(A) Auction Periods of thirty-five (35)
days or less, either (a) One-Month LIBOR plus 1.5% (if the ratings assigned by
Moody's and Fitch to the Series 2001-1 Senior Notes are at least "Aa3" and
"AA-," respectively), (b) One-Month LIBOR plus 2.5% (if any one of the ratings
assigned by Moody's and Fitch to the Series 2001-1 Senior Notes is less than
"Aa3" or "AA-," respectively, but is at least "A") or (c) One-Month LIBOR plus
3.5% (if any one of the ratings assigned by Moody's and Fitch to the Series
2001-1 Senior Notes is less than "A"); or (ii) for Auction Periods of greater
than thirty-five (35) days, either (a) the greater of One-Month LIBOR or
Three-Month LIBOR, plus, in either case, 1.5% (if the ratings assigned by
Moody's and Fitch to the Series 2001-1 Senior Notes are at least "Aa3" and
"AA-," respectively), (b) the greater of One-Month LIBOR or Three-Month LIBOR,
plus, in either case, 2.5% (if any one of the ratings assigned by Moody's and
Fitch to the Series 2001-1 Senior Notes is less than "Aa3" or "AA-,"
respectively, but is at least "A") or (c) the greater of One-Month LIBOR or
Three-Month LIBOR, plus, in either case, 3.5% (if any one of the ratings
assigned by Moody's and Fitch to the Series 2001-1 Senior Notes is less than
"A"); and

          (B) with respect to the Series 2001-1C Notes: (i) for Auction Periods
     of thirty-five (35) days or less, either (a) One-Month LIBOR plus 2.5% (if
     the ratings assigned by Moody's and Fitch to the Series 2001-1C Notes are
     at least "A2" and "A," respectively), or (b) One-Month LIBOR plus 3.5% (if
     any one of the ratings assigned by Moody's and Fitch to the Series 2001-1C
     Notes is less than "A2" or "A," respectively); or (ii) for Auction Periods
     of greater than thirty-five (35) days, either (a) the greater of One-Month
     LIBOR or Three-Month LIBOR, plus, in either case, 2.5% (if the ratings
     assigned by Moody's and Fitch to the Series 2001-1C Notes are at least "A2"
     and "A," respectively), or (b) the greater of One-Month LIBOR or
     Three-Month LIBOR, plus, in either case, 3.5% (if any one of the ratings
     assigned by Moody's and Fitch to the Series 2001-1C Notes is less than "A2"
     or "A," respectively).

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For purposes of the Auction Agent and the Auction Procedures, the ratings
referred to in this definition shall be the last ratings of which the Auction
Agent shall have been given notice pursuant to the Auction Agent Agreement.

     "Net Loan Rate" shall mean, with respect to any Interest Period for a
series of the Series 2001-1 Notes commencing during a given calendar month, the
highest rate of interest per annum, rounded to the next highest .01%, which
would not cause the weighted average of the Auction Rates for such Interest
Period and (except in the case of a series of the Series 2001-1 Notes having
Interest Periods longer than forty-five (45) days) the Series 2001-1 Note
Auction Rate for the two (2) preceding Interest Periods to exceed (1) the
average of the weighted average Effective Interest Rate of the Financed Student
Loans, determined as of the last day of the second, third and fourth preceding
months, less (ii) the Administrative Cost and Note Fee Rate with respect to the
Series 2001-1 Notes.

     "Non-Payment Rate" shall mean the lesser of (i) One-Month LIBOR plus 1.5%,
and (ii) 18%.

     "Note Registrar" shall mean, with respect to the Series 2001-1 Notes, the
Trustee.

     "Notice of Fee Rate Change" shall mean a notice of a change in the Auction
Agent Fee Rate or the Broker-Dealer Fee Rate substantially in the form of
Exhibit E to the Auction Agent Agreement.

     "One-Month LIBOR" shall mean, with respect to a series of Series 2001-1
Notes, the rate of interest per annum equal to the rate per annum at which
United States dollar deposits having a maturity of one month 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 applicable
Interest Rate Determination Date. If at least two such quotations appear,
One-Month LIBOR will be the arithmetic mean (rounded upwards, if necessary, to
the nearest .01%) of such offered rates. If fewer than two such quotes appear,
One-Month LIBOR will be determined at approximately 11:00 a.m., London time, on
the applicable Interest Rate Determination Date on the basis of the rate at
which deposits in United States dollars having a maturity of one month are
offered to prime banks in the London interbank market by four major banks in the
London interbank market selected by (i) the Auction Agent after consultation
with the Trustee or (ii) the 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 Trustee, as
applicable, will request the principal London office of each such bank to
provide a quotation of its rate. If at least two quotations are provided,
One-Month LIBOR will be the arithmetic mean (rounded upwards, if necessary, to
the nearest .01%) of such offered rates. If fewer than two quotations are
provided, One-Month LIBOR will be the arithmetic mean (rounded upwards, if
necessary, to the nearest .01%) of the rates quoted at approximately 11:00 a.m.,
New York City time, on the applicable Interest Rate Determination Date by three
major banks in New York, New York, selected by (x) the Auction Agent after
consultation with the Trustee or (y) the Trustee, as applicable, for loans in
United States dollars to leading European banks having a maturity of one month
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

                                      -7-
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mentioned in this sentence, One-Month LIBOR will be the One-Month LIBOR in
effect for the immediately preceding Interest Period.

     "Order" shall have the meaning ascribed to such term in Section 4(a)(i)
hereof.

     "Original Indenture" shall mean the Indenture of Trust, dated as of
December 1, 1999, between the Corporation and the Trustee, as originally
executed.

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

     "Payment Default" shall mean, with respect to a series of Series 2001-1
Notes, (i) a default in the due and punctual payment of any installment of
interest on such series, or (ii) a default in the due and punctual payment of
any interest on and principal of such series at Maturity.

     "Paying Agent" shall mean, with respect to the Series 2001-1 Notes, the
Trustee and its successor or successors or any other commercial bank designated
in accordance herewith as a place at which principal of, premium, if any, or
interest on the Series 2001-1 Notes is payable.

     "Potential Holder" shall mean any Person (including an Existing Holder that
is (i) a Broker-Dealer when dealing with the Auction Agent and (ii) a potential
beneficial owner when dealing with a Broker-Dealer) who may be interested in
acquiring Series 2001-1 Notes (or, in the case of an Existing Holder thereof, an
additional principal amount of Series 2001-1 Notes).

     "Regular Record Date" shall mean with respect to any regularly scheduled
Interest Payment Date occurring with respect to a series of Series 2001-1 Notes,
the last Business Day preceding such Interest Payment Date.

     "Reuters Screen LIBOR Page" shall mean the display designated as page
"LIBOR" on the Reuters Monitor Money Rates Service (or such other page as may
replace the LIBOR page for the purposes of displaying London interbank offered
rates of major banks).

     "Second Supplemental Indenture" shall mean the Second Supplemental
Indenture of Trust, dated as of December 1, 2000, as amended or supplemented in
accordance with the terms thereof and of the Indenture.

     "Securities Depository" shall mean The Depository Trust Company, New York,
New York, and its successors and assigns, or, if (i) the then-existing
Securities Depository resigns from its functions as depository of the Series
2001-1 Notes or (ii) the Corporation discontinues use of the Securities
Depository pursuant to Section 17(c) hereof, then any other securities
depository which agrees to follow the procedures required to be followed by a
securities depository in connection with the Series 2001-1 Notes and which is
selected by the Corporation with the consent of the Trustee.

     "Sell Order" shall have the meaning ascribed to such term in Section
4(a)(i) hereof.

     "Series 1999-1 Notes" shall mean the Series 1999-1A Notes, the Series
1999-1B Notes and the Series 1999-1C Notes.

                                      -8-
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     "Series 1999-1A Notes" shall mean the Notes created and issued under the
First Supplemental Indenture in the original principal amount of $78,000,000 and
designated as the "Student Loan Asset-Backed Notes, Senior Series 1999-1A."

     "Series 1999-1B Notes" shall mean the Notes created and issued under the
First Supplemental Indenture in the original principal amount of $39,000,000 and
designated as the "Student Loan Asset-Backed Notes, Senior Series 1999-1B."

     "Series 1999-1C Notes" shall mean the Notes created and issued under the
First Supplemental Indenture in the original principal amount of $9,300,000 and
designated as the "Student Loan Asset-Backed Notes, Subordinate Series 1999-1C."

     "Series 2000-1 Notes" shall mean the Series 2000-1A Notes, the Series
2000-1B Notes and the Series 2000-1C Notes.

     "Series 2000-1A Notes" shall mean the Notes created and issued under the
Second Supplemental Indenture in the original principal amount of $54,100,000
and designated as the "Student Loan Asset-Backed Notes, Senior Series 2000-1A."

     "Series 2000-1B Notes" shall mean the Notes created and issued under the
Second Supplemental Indenture in the original principal amount of $54,100,000
and designated as the "Student Loan Asset-Backed Notes, Senior Series 2000-1B."

     "Series 2000-1C Notes" shall mean the Notes created and issued under the
Second Supplemental Indenture in the original principal amount of $22,000,000
and designated as the "Student Loan Asset-Backed Notes, Subordinate Series
2000-1C."

     "Series 2001-1 Capitalized Interest Account" shall mean the Account by that
name created in the Acquisition Fund pursuant to Section 18 of this Third
Supplemental Indenture.

     "Series 2001-1 Cost of Issuance Account" shall mean the Account by that
name created in the Administration Fund pursuant to Section 18 of this Third
Supplemental Indenture.

     "Series 2001-1 Notes" shall mean the Series 2001-1A Notes, the Series
2001-1B Notes and the Series 2001-1C Notes.

     "Series 2001-1 Note Auction Rate" shall mean the rate of interest per annum
borne by a series of the Series 2001-1 Notes for each Auction Period and
determined in accordance with the provisions of Sections 4 through 12 hereof;
provided, however, that in the event of a Payment Default, the Series 2001-1
Note Auction Rate shall equal the Non-Payment Rate; and provided, further, that
such Series 2001-1 Note Auction Rate shall in no event exceed the Series 2001-1
Note Auction Rate Limitation.

     "Series 2001-1 Note Auction Rate Limitation" shall mean a rate per annum
equal to 18% or, if less than such rate, the highest rate the Corporation may
legally pay, from time to time, as interest on the Series 2001-1 Notes.

                                      -9-
<PAGE>

     "Series 2001-1 Note Initial Interest Rate" shall mean 3.80% for the Series
2001-1A Notes, 3.80% for the Series 2001-1B Notes and 3.90% for the Series
2001-1C Notes.

     "Series 2001-1 Note Interest Rate" shall mean the rate of interest per
annum borne by a series of Series 2001-1 Notes, as of the time referred to,
including, without limitation, the Series 2001-1 Note Initial Interest Rate and
the Series 2001-1 Note Auction Rate.

     "Series 2001-1 Senior Notes" shall mean the Series 2001-1A Notes and the
Series 2001-1B Notes.

     "Series 2001-1 Transfer Agreement" shall mean the Transfer Agreement, dated
as of July 1, 2001, among the Corporation, the Trustee, GOAL Funding and the
trustee for GOAL Funding, as from time to time amended or supplemented.

     "Series 2001-1A Notes" shall mean the Notes created and to be issued under
this Third Supplemental Indenture in the original principal amount of
$79,000,000 and designated as the "Student Loan Asset-Backed Notes, Senior
Series 2001-1A."

     "Series 2001-1B Notes" shall mean the Notes created and to be issued under
this Third Supplemental Indenture in the original principal amount of
$79,000,000 and designated as the "Student Loan Asset-Backed Notes, Senior
Series 2001-1B."

     "Series 2001-1C Notes" shall mean the Notes created and to be issued under
this Third Supplemental Indenture in the original principal amount of
$23,800,000 and designated as the "Student Loan Asset-Backed Notes, Subordinate
Series 2001-1C."

     "Special Redemption and Prepayment Account Requirement" shall mean an
amount, as of any Monthly Payment Date, with respect to the Series 2001-1 Notes,
equal to $0.00.

     "Submission Deadline" shall mean 12:30 p.m., New York City 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" shall have the meaning ascribed to such term in Section
4(c)(i) hereof.

     "Submitted Hold Order" shall have the meaning ascribed to such term in
Section 4(c)(i) hereof.

     "Submitted Order" shall have the meaning ascribed to such term in Section
4(c)(i) hereof.

     "Submitted Sell Order" shall have the meaning ascribed to such term in
Section 4(c)(i) hereof.

     "Substitute Auction Agent" shall mean the Person with whom the Trustee
enters 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

                                      -10-
<PAGE>

Person having the qualifications required by Section 8 of this Third
Supplemental Indenture agrees with the Trustee and the Corporation to perform
the duties of the Auction Agent under this Third Supplemental Indenture.

     "Sufficient Bids" shall have the meaning ascribed to such term in Section
4(c)(i) hereof.

     "Third Supplemental Indenture" shall mean this Third Supplemental Indenture
of Trust, as amended or supplemented in accordance with the terms hereof and of
the Indenture.

     "Three-Month LIBOR" shall mean, with respect to a series of Series 2001-1
Notes, the rate of interest per annum equal to the rate per annum at which
United States dollar deposits having a maturity of three months 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 applicable
Interest Rate Determination Date. If at least two such quotations appear,
Three-Month LIBOR will be the arithmetic mean (rounded upwards, if necessary, to
the nearest .01%) of such offered rates. If fewer than two such quotes appear,
Three-Month LIBOR will be determined at approximately 11:00 a.m., London time,
on the applicable Interest Rate Determination Date on the basis of the rate at
which deposits in United States dollars having a maturity of three months are
offered to prime banks in the London interbank market by four major banks in the
London interbank market selected by (i) the Auction Agent after consultation
with the Trustee or (ii) the 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 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,
Three-Month LIBOR will be the arithmetic mean (rounded upwards, if necessary, to
the nearest .01%) of such offered rates. If fewer than two quotations are
provided, Three-Month LIBOR will be the arithmetic mean (rounded upwards, if
necessary, to the nearest .01%) of the rates quoted at approximately 11:00 a.m.,
New York City time on the applicable Interest Rate Determination Date by three
major banks in New York, New York, selected by (x) the Auction Agent after
consultation with the Trustee or (y) the Trustee, as applicable, for loans in
United States dollars to leading European banks having a maturity of three
months 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, Three-Month LIBOR will be the Three-Month
LIBOR in effect for the immediately preceding Interest Period.

     Section 2. Authorization and Terms of Series 2001-1 Notes. There is hereby
created and there shall be (1) a series of Class A Notes entitled "Student Loan
Asset-Backed Notes, Senior Series 2001-1A," (2) a series of Class A Notes
entitled "Student Loan Asset-Backed Notes, Senior Series 2001-1B," and (3) a
series of Class B Notes entitled "Student Loan Asset-Backed Notes, Subordinate
Series 2001-1C." The aggregate principal amount of the Series 2001-1A Notes that
may be authenticated and delivered and Outstanding under the Indenture is
limited to and shall not exceed $79,000,000. The aggregate principal amount of
the Series 2001-1B Notes that may be authenticated and delivered and Outstanding
under the Indenture is limited to and shall not exceed $79,000,000. The
aggregate principal amount of the Series 2001-1C Notes that may be

                                      -11-
<PAGE>

authenticated and delivered and Outstanding under the Indenture is limited to
and shall not exceed $23,800,000.

     The Series 2001-1A Notes shall consist of Term Notes with a Stated Maturity
on December 1, 2035.

     The Series 2001-1B Notes shall consist of Term Notes with a Stated Maturity
on December 1, 2035.

     The Series 2001-1C Notes shall consist of Term Notes with a Stated Maturity
on December 1, 2035.

     Each series of Series 2001-1 Notes shall bear interest at a rate per annum
equal to the applicable Series 2001-1 Note Interest Rate (which, after the
Initial Interest Period, shall be the Series 2001-1 Note Auction Rate), and at
the same rate per annum (to the extent that the payment of such interest shall
be legally enforceable) on overdue installments of interest.

     The Series 2001-1 Notes shall be issued as fully registered Notes without
coupons in Authorized Denominations.

     The Series 2001-1 Notes shall be dated as provided in Section 3.9 of the
Indenture and shall bear interest from their date until payment of principal has
been made or duly provided for. The date of original issue of the Series 2001-1
Notes shall be the Closing Date. The Series 2001-1 Notes of each series shall be
numbered in such manner as the Note Registrar shall determine.

     Interest on each series of Series 2001-1 Notes shall be computed on the
basis of actual days elapsed and accrue daily from the date thereof (on the
basis of a 360-day year), and shall be payable on each regularly scheduled
Interest Payment Date with respect to such series prior to the Maturity thereof
and at the Maturity thereof. The interest payable on each Interest Payment Date
for each series of the Series 2001-1 Notes shall be that interest which has
accrued through the last day of the last complete Interest Period immediately
preceding the Interest Payment Date or, in the case of the Maturity of such
series, the last day preceding the date of such Maturity. The applicable Series
2001-1 Note Interest Rate shall be effective as of and on the first day (whether
or not a Business Day) of the applicable Interest Period and be in effect
thereafter through the end of such Interest Period.

     The principal of and premium, if any, on the Series 2001-1 Notes, together
with interest payable on the Series 2001-1 Notes at the Maturity thereof if the
date of such Maturity is not a regularly scheduled Interest Payment Date, shall
be payable in lawful money of the United States of America upon, except as
otherwise provided in Section 17 hereof, presentation and surrender of such
Series 2001-1 Notes at the Principal Office of the Trustee, as Paying Agent with
respect to the Series 2001-1 Notes, or a duly appointed successor Paying Agent.
Interest on the Series 2001-1 Notes shall be payable on each regularly scheduled
Interest Payment Date, except as otherwise provided in Section 17 hereof, by
check or draft drawn upon the Paying Agent and mailed to the person who is the
Holder thereof as of 5:00 p.m. in the city in which the Principal Office of the
Note Registrar is located on the Regular Record Date for such Interest Payment
Date at the address of such Holder as it appears on the Note Register, or, in
the case of any Series 2001-1 Note the Holder of which is the Holder of Series
2001-1 Notes in the aggregate principal

                                      -12-
<PAGE>

amount of $1,000,000 or more, at the direction of such Holder received by the
Paying Agent by 5:00 p.m. in the city in which the Principal Office of the
Paying Agent is located on the last Business Day preceding the applicable
Regular Record Date, by electronic transfer by the Paying Agent in immediately
available funds to an account designated by such Holder. Any interest not so
timely paid or duly provided for (herein referred to as "Defaulted Interest")
shall cease to be payable to the person who is the Holder thereof at the close
of business on the Regular Record Date and shall be payable to the person who is
the Holder thereof at the close of business on a Special Record Date for the
payment of any such Defaulted Interest. Such Special Record Date shall be fixed
by the Trustee whenever moneys become available for payment of the Defaulted
Interest, and notice of the Special Record Date shall be given to the Holders of
the Series 2001-1 Notes not less than ten (10) days prior thereto by first-class
mail to each such Holder as shown on the Note Register on a date selected by the
Trustee, stating the date of the Special Record Date and the date fixed for the
payment of such Defaulted Interest. All payments of principal of and interest on
the Series 2001-1 Notes shall be made in lawful money of the United States of
America.

     The Series 2001-1 Notes are subject to redemption prior to their Stated
Maturities upon the terms and conditions and at the Redemption Prices specified
in Section 16 hereof.

     Subject to the provisions of the Indenture, the Series 2001-1 Senior Notes
shall be in substantially the form set forth in Exhibit A hereto, with such
variations, omissions and insertions as may be required by the circumstances, be
required or permitted by the Indenture, or be consistent with the Indenture and
necessary or appropriate to conform to the rules and requirements of any
governmental authority or any usage or requirement of law with respect thereto.

     Subject to the provisions of the Indenture, the Series 2001-1C Notes shall
be in substantially the form set forth in Exhibit B hereto, with such
variations, omissions and insertions as may be required by the circumstances, be
required or permitted by the Indenture, or be consistent with the Indenture and
necessary or appropriate to conform to the rules and requirements of any
governmental authority or any usage or requirement of law with respect thereto.

     Section 3. Interest Payable on Series 2001-1 Notes. The Initial Interest
Rate Adjustment Dates for each series of Series 2001-1 Notes shall be (i) with
respect to the Series 2001-1A Notes and the Series 2001-1C Notes, August 30,
2001, and (ii) with respect to the Series 2001-1B Notes, September 6, 2001.

     During the Initial Interest Period, each series of Series 2001-1 Notes
shall bear interest at the Series 2001-1 Note Initial Interest Rate for such
series. Thereafter, except with respect to an Auction Period Adjustment, the
Series 2001-1 Notes shall bear interest at a Series 2001-1 Note Auction Rate
based on a 28-day Auction Period, as determined pursuant to this Section 3 and
Sections 4 through 12 hereof.

     The Series 2001-1 Note Auction Rate to be borne by each series of Series
2001-1 Notes after such Initial Interest Period for each Auction Period until an
Auction Period Adjustment, if any, shall be determined as hereinbelow described.
Each such Auction Period shall commence

                                      -13-
<PAGE>

on and include the Thursday (or, if such Thursday is not a Business Day, the
next succeeding Business Day) following the expiration of the immediately
preceding Auction Period and terminate on and include the last day immediately
preceding the Thursday (or, if such Thursday is not a Business Day, the next
succeeding Business Day) of the fourth following week; provided, however, that
in the case of the Auction Period that immediately follows the Initial Interest
Period for a series of Series 2001-1 Notes, such Auction Period shall commence
on the Initial Interest Rate Adjustment Date for such series. The Series 2001-1
Note Auction Rate on each series of Series 2001-1 Notes for each Auction Period
shall be the lesser of (i) the Net Loan Rate in effect for such Auction Period,
and (ii) the Auction Rate in effect for such Auction Period as determined in
accordance with Section 4 hereof; provided that if, on any Interest Rate
Determination Date, an Auction is not held for any reason, then the Series
2001-1 Note Auction Rate on such series for the next succeeding Auction Period
shall equal the lesser of (a) the Maximum Auction Rate and (b) the Net Loan
Rate.

     Notwithstanding the foregoing:

          (a) if the ownership of a series of Series 2001-1 Notes is no longer
     maintained in Book-Entry Form, the Series 2001-1 Note Auction Rate on such
     series for any Interest Period commencing after the delivery of definitive
     notes representing such series pursuant to Section 17 hereof shall equal
     the lesser of (i) the Maximum Auction Rate and (ii) the Net Loan Rate on
     the Business Day immediately preceding the first day of such subsequent
     Interest Period; or

          (b) if a Payment Default shall have occurred with respect to a series
     of Series 2001-1 Notes, the Series 2001-1 Note Auction Rate on such series
     for the Interest Period commencing on or immediately after such Payment
     Default, and for each Interest Period thereafter, to and including the
     Interest Period, if any, during which, or commencing less than two (2)
     Business Days after, such Payment Default is cured, shall equal the
     Non-Payment Rate on the first day of each such Interest Period.

     In accordance with Section 4(c)(iii) hereof, the Auction Agent shall
promptly give written notice to the Trustee and the Corporation of each Series
2001-1 Note Auction Rate (unless the Series 2001-1 Note Auction Rate is the
Non-Payment Rate or the ownership of such series is no longer maintained in
Book-Entry Form) and either the Auction Rate or the Net Loan Rate, as the case
may be, when such rate is not the Series 2001-1 Note Auction Rate, applicable to
each series of Series 2001-1 Notes. The Trustee shall notify the Holders of
Series 2001-1 Notes of the Series 2001-1 Note Auction Rate applicable to each
such series for each Auction Period on the second Business Day of such Auction
Period.

     In the event that the last Business Day immediately preceding what would
otherwise be the commencement date of an Auction Period for a series of Series
2001-1 Notes is more than five days prior to such date, the Interest Rate
Determination Date and commencement date for such Auction Period, as well as the
expiration date for the preceding Auction Period, may be adjusted to fall on
such dates as the Market Agent, with the consent of the Corporation, may
determine to be appropriate under such circumstances. The Market Agent shall
promptly notify the Trustee and the Auction Agent in writing of any such
determination. The Trustee, upon

                                      -14-
<PAGE>

receipt of such notice, shall immediately give written notification of such
determination to the Holders of such series of Series 2001-1 Notes.

     Notwithstanding any other provision of the Series 2001-1 Notes or this
Third Supplemental Indenture, and except for the occurrence of a Payment
Default, interest payable on each series of the Series 2001-1 Notes for an
Auction Period shall never exceed for such Auction Period the amount of interest
payable at the Net Loan Rate (subject to the Series 2001-1 Note Auction Rate
Limitation) in effect for such Auction Period.

     If the Auction Rate for a series of Series 2001-1 Notes is greater than the
Net Loan Rate, then the Series 2001-1 Note Auction Rate applicable to such
series for that Interest Period will be the Net Loan Rate. If the Series 2001-1
Note Auction Rate for a series of Series 2001-1 Notes for any Interest Period is
the Net Loan Rate, the Trustee shall determine the Carry-Over Amount, if any,
with respect to such series for such Interest Period. Such determination of the
Carry-Over Amount shall be made separately for each series of Series 2001-1
Notes. Each Carry-Over Amount shall bear interest calculated at a rate equal to
One-Month LIBOR (as determined by the Auction Agent, provided the Trustee has
received notice of One-Month LIBOR from the Auction Agent, and, if the Trustee
shall not have received such notice from the Auction Agent, then as determined
by the Trustee) from the Interest Payment Date for the Interest Period with
respect to which such Carry-Over Amount was calculated, until paid. Any payment
in respect of Carry-Over Amount shall be applied, first, to any accrued interest
payable thereon and, thereafter, in reduction of such Carry-Over Amount. For
purposes of this Third Supplemental Indenture, the Indenture and the Series
2001-1 Notes, any reference to "principal" or "interest" herein and therein
shall not include, within the meaning of such words, Carry-Over Amount or any
interest accrued on any such Carry-Over Amount. Such Carry-Over Amount shall be
separately calculated for each Series 2001-1 Note of such series by the Trustee
during such Interest Period in sufficient time for the Trustee to give notice to
each Holder of such Carry-Over Amount as required in the next succeeding
sentence. On the Interest Payment Date for an Interest Period with respect to
which such Carry-Over Amount has been calculated by the Trustee, the Trustee
shall give written notice to each Holder of the Carry-Over Amount applicable to
such Holder's Series 2001-1 Note, which written notice may accompany the payment
of interest by check made to each such Holder on such Interest Payment Date or
otherwise shall be mailed on such Interest Payment Date by first-class mail,
postage prepaid, to each such Holder at such Holder's address as it appears on
the registration books maintained by the Note Registrar. Such notice shall
state, in addition to such Carry-Over Amount, that, unless and until a Series
2001-1 Note has been redeemed or has been deemed no longer Outstanding under the
Indenture (after which all accrued Carry-Over Amount with respect to such Series
2001-1 Note (and all accrued interest thereon) that remains unpaid shall be
cancelled and no Carry-Over Amount (or interest accrued thereon) shall be paid
with respect to such Series 2001-1 Note), (i) the Carry-Over Amount (and
interest accrued thereon) shall be paid by the Trustee on such Series 2001-1
Note on the first occurring Interest Payment Date for a subsequent Interest
Period if and to the extent that (l) the Eligible Carry-Over Make-Up Amount with
respect to such Interest Period is greater than zero, and (2) moneys are
available pursuant to the terms of this Third Supplemental Indenture to pay such
Carry-Over Amount (and interest accrued thereon), and (ii) interest shall accrue
on the Carry-Over Amount at a per annum rate equal to One-Month LIBOR until such
Carry-Over Amount is paid in full or is cancelled.

                                      -15-
<PAGE>

     The Carry-Over Amount (and interest accrued thereon) for a series of Series
2001-1 Notes shall be paid by the Trustee on Outstanding Series 2001-1 Notes of
such series on the first occurring Interest Payment Date for a subsequent
Interest Period if and to the extent that (i) the Eligible Carry-Over Make-Up
Amount with respect to such Interest Period is greater than zero, and (ii)
moneys in the Surplus Account are available on such Interest Payment Date for
transfer to the Interest Account for such purpose in accordance with the second
paragraph of Section 4.8 of the Indenture, after taking into account all other
amounts payable from the Surplus Fund in accordance with such paragraph on such
Interest Payment Date. Any Carry-Over Amount (and any interest accrued thereon)
with respect to any Series 2001-1 Note which is unpaid as of an Interest Payment
Date, which Series 2001-1 Note is to be redeemed or deemed no longer Outstanding
under this Third Supplemental Indenture on such Interest Payment Date, shall be
paid to the Holder thereof on such Interest Payment Date to the extent that
moneys are available therefor in accordance with the provisions of the preceding
clause (ii); provided, however, that any Carry-Over Amount (and any interest
accrued thereon) which is not so paid on such Interest Payment Date shall be
cancelled with respect to such Series 2001-1 Note on such Interest Payment Date
and shall not be paid on any succeeding Interest Payment Date. To the extent
that any portion of the 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 by the Trustee
on the next occurring Interest Payment Date or Dates, as necessary, for a
subsequent Interest Period or Periods, if and to the extent that the conditions
in the first sentence of this paragraph are satisfied. On any Interest Payment
Date on which the Trustee pays less than all of the Carry-Over Amount (and any
interest accrued thereon) with respect to a Series 2001-1 Note, the Trustee
shall give written notice in the manner set forth in the immediately preceding
paragraph to the Holder of such Series 2001-1 Note of the Carry-Over Amount
remaining unpaid on such Series 2001-1 Note.

     The Interest Payment Date on which any Carry-Over Amount (or any interest
accrued thereon) for a series of Series 2001-1 Notes shall be paid shall be
determined by the Trustee in accordance with the provisions of the immediately
preceding paragraph, and the Trustee shall make payment of the 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 Series 2001-1 Notes on an Interest
Payment Date.

     In the event that the Auction Agent no longer determines, or fails to
determine, when required, the Series 2001-1 Note Auction Rate with respect to a
series of Series 2001-1 Notes, or, if for any reason, such manner of
determination shall be held to be invalid or unenforceable, the Series 2001-1
Note Auction Rate for the next succeeding Interest Period (which Interest Period
shall be an Auction Period for such series of Series 2001-1 Notes) shall be the
Net Loan Rate. The Net Loan Rate with respect to each Interest Rate
Determination Date shall be determined and communicated to the Auction Agent and
the Trustee in accordance with Section 6 hereof.

     Section 4. Determining the Series 2001-1 Note Auction Rate. By purchasing
Series 2001-1 Notes, whether in an Auction or otherwise, each purchaser of the
Series 2001-1 Notes, or its Broker-Dealer, must agree and shall be deemed by
such purchase to have agreed (i) to participate in Auctions on the terms
described herein, (ii) to have its beneficial ownership of the Series 2001-1
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,

                                      -16-
<PAGE>

and (iii) 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 a series of Series 2001-1 Notes is maintained
in Book-Entry Form by the Securities Depository, an Existing Holder may sell,
transfer or otherwise dispose of Series 2001-1 Notes of such series only
pursuant to a Bid or Sell Order placed in an Auction or otherwise sell, transfer
or dispose of Series 2001-1 Notes through a Broker-Dealer, provided that, in the
case of all transfers other than pursuant to Auctions, such Existing Holder, 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 (such procedures to be applicable
separately to each series of the Series 2001-1 Notes):

          (a) (i) Prior to the Submission Deadline on each Auction Date;

                    (A) each Existing Holder of Series 2001-1 Notes may submit
               to a Broker-Dealer by telephone or otherwise any information as
               to:

                         (1) the principal amount of Outstanding Series 2001-1
                    Notes, if any, owned by such Existing Holder which such
                    Existing Holder desires to continue to own without regard to
                    the Auction Rate for the next succeeding Auction Period;

                         (2) the principal amount of Outstanding Series 2001-1
                    Notes, if any, which such Existing Holder offers to sell if
                    the Auction Rate for the next succeeding Auction Period
                    shall be less than the rate per annum specified by such
                    Existing Holder; and/or

                         (3) the principal amount of Outstanding Series 2001-1
                    Notes, if any, owned by such Existing Holder which such
                    Existing Holder offers to sell without regard to the Auction
                    Rate for the next succeeding Auction Period; and

                    (B) one or more Broker-Dealers may contact Potential Holders
               to determine the principal amount of Series 2001-1 Notes which
               each Potential Holder offers to purchase, if the Auction Rate for
               the next succeeding Auction Period shall not be less than the
               rate per annum specified by such Potential Holder.

                    The statement of an Existing Holder or a Potential Holder
               referred to in (A) or (B) of this paragraph (i) is herein
               referred to as an "Order," and each Existing Holder and each
               Potential Holder placing an Order is herein referred to as a
               "Bidder"; an Order described in clause (A)(1) is herein referred
               to as a "Hold Order"; an Order described in clauses (A)(2) and
               (B) is herein referred to as a "Bid"; and an Order described in
               clause (A)(3) is herein referred to as a "Sell Order."

               (ii) (A) Subject to the provisions of Section 4(b) hereof, a Bid
          by an Existing Holder shall constitute an irrevocable offer to sell:

                    (1) the principal amount of Outstanding Series 2001-1 Notes
               specified in such Bid if the Auction Rate determined as provided
               in this Section 4 shall be less than the rate specified therein;
               or

                                      -17-
<PAGE>

                    (2) such principal amount, or a lesser principal amount of
               Outstanding Series 2001-1 Notes to be determined as set forth in
               Section 4(d)(i)(D) hereof, if the Auction Rate determined as
               provided in this Section 4 shall be equal to the rate specified
               therein; or

                    (3) such principal amount, or a lesser principal amount of
               Outstanding Series 2001-1 Notes to be determined as set forth in
               Section 4(d)(ii)(C) hereof, if the rate specified therein shall
               be higher than the Maximum Auction Rate and Sufficient Bids have
               not been made.

               (B) Subject to the provisions of Section 4(b) hereof, a Sell
          Order by an Existing Holder shall constitute an irrevocable offer to
          sell:

                    (1) the principal amount of Outstanding Series 2001-1 Notes
               specified in such Sell Order; or

                    (2) such principal amount, or a lesser principal amount, of
               Outstanding Series 2001-1 Notes set forth in Section 4(d)(ii)(C)
               hereof, if Sufficient Bids have not been made.

               (C) Subject to the provisions of Section 4(b) hereof, a Bid by a
          Potential Holder shall constitute an irrevocable offer to purchase:

                    (1) the principal amount of Outstanding Series 2001-1 Notes
               specified in such Bid if the Auction Rate determined as provided
               in this Section 4 shall be higher than the rate specified in such
               Bid; or

                    (2) such principal amount, or a lesser principal amount of
               Outstanding Series 2001-1 Notes set forth in Section 4(d)(i)(E)
               hereof, if the Auction Rate determined as provided in this
               Section 4 shall be equal to the rate specified in such Bid.

          (b) (i) Each Broker-Dealer shall submit in writing to the Auction
     Agent prior to the Submission Deadline on each Auction Date all Orders
     obtained by such Broker-Dealer and shall specify with respect to each such
     Order:

               (A) the name of the Bidder placing such Order;

               (B) the aggregate principal amount of Series 2001-1 Notes that
          are the subject of such Order;

               (C) to the extent that such Bidder is an Existing Holder:

                    (1) the principal amount of Series 2001-1 Notes, if any,
               subject to any Hold Order placed by such Existing Holder;

                                      -18-
<PAGE>

                    (2) the principal amount of Series 2001-1 Notes, if any,
               subject to any Bid placed by such Existing Holder and the rate
               specified in such Bid; and

                    (3) the principal amount of Series 2001-1 Notes, if any,
               subject to any Sell Order placed by such Existing Holder; and

               (D) to the extent such Bidder is a Potential Holder, the rate
          specified in such Potential Holder's Bid.

          (ii) 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 .001%.

          (iii) If an Order or Orders covering all Outstanding Series 2001-1
     Notes owned by an Existing Holder 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 Holder covering the
     principal amount of Outstanding Series 2001-1 Notes owned by such Existing
     Holder and not subject to an Order submitted to the Auction Agent.

          (iv) Neither the Corporation, the Trustee nor 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 Holder or Potential Holder.

          (v) If any Existing Holder submits through a Broker-Dealer to the
     Auction Agent one or more Orders covering in the aggregate more than the
     principal amount of Outstanding Series 2001-1 Notes owned by such Existing
     Holder, such Orders shall be considered valid as follows and in the
     following order of priority:

               (A) All Hold Orders shall be considered valid, but only up to the
          aggregate principal amount of Outstanding Series 2001-1 Notes owned by
          such Existing Holder, and if the aggregate principal amount of Series
          2001-1 Notes subject to such Hold Orders exceeds the aggregate
          principal amount of Series 2001-1 Notes owned by such Existing Holder,
          the aggregate principal amount of Series 2001-1 Notes subject to each
          such Hold Order shall be reduced pro rata so that the aggregate
          principal amount of Series 2001-1 Notes subject to such Hold Order
          equals the aggregate principal amount of Outstanding Series 2001-1
          Notes owned by such Existing Holder.

               (B) (1) any Bid shall be considered valid up to an amount equal
          to the excess of the principal amount of Outstanding Series 2001-1
          Notes owned by such Existing Holder over the aggregate principal
          amount of Series 2001-1 Notes subject to any Hold Order referred to in
          clause (A) of this paragraph (v);

                    (2) subject to subclause (1) of this clause (B), if more
               than one Bid with the same rate is submitted on behalf of such
               Existing Holder and

                                      -19-
<PAGE>

               the aggregate principal amount of Outstanding Series 2001-1 Notes
               subject to such Bids is greater than such excess, such Bids shall
               be considered valid up to an amount equal to such excess;

                    (3) 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 Holder, 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

                    (4) in any such event, the amount of Outstanding Series
               2001-1 Notes, if any, subject to Bids not valid under this clause
               (B) shall be treated as the subject of a Bid by a Potential
               Holder at the rate therein specified; and

               (C) All Sell Orders shall be considered valid up to an amount
          equal to the excess of the principal amount of Outstanding Series
          2001-1 Notes owned by such Existing Holder over the aggregate
          principal amount of Series 2001-1 Notes subject to Hold Orders
          referred to in clause (A) of this paragraph (v) and valid Bids
          referred to in clause (B) of this paragraph (v).

          (vi) If more than one Bid for Series 2001-1 Notes is submitted on
     behalf of any Potential Holder, each Bid submitted shall be a separate Bid
     with the rate and principal amount therein specified.

          (vii) An Existing Holder that offers to purchase additional Series
     2001-1 Notes is, for purposes of such offer, treated as a Potential Holder.

          (viii) Any Bid or Sell Order submitted by an Existing Holder covering
     an aggregate principal amount of Series 2001-1 Notes not equal to an
     Authorized Denomination shall be rejected and shall be deemed a Hold Order.
     Any Bid submitted by a Potential Holder covering an aggregate principal
     amount of Series 2001-1 Notes not equal to an Authorized Denomination shall
     be rejected.

          (ix) Any Bid specifying a rate higher than the Maximum Auction Rate
     will (a) be treated as a Sell Order if submitted by an Existing Holder and
     (b) not be accepted if submitted by a Potential Holder.

          (x) 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.

          (c) (i) 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:

                                      -20-
<PAGE>

               (A) the excess of the total principal amount of Outstanding
          Series 2001-1 Notes over the sum of the aggregate principal amount of
          Outstanding Series 2001-1 Notes subject to Submitted Hold Orders (such
          excess being herein referred to as the "Available Series 2001-1
          Notes"), and

               (B) from the Submitted Orders whether:

                    (1) the aggregate principal amount of Outstanding Series
               2001-1 Notes subject to Submitted Bids by Potential Holders
               specifying one or more rates equal to or lower than the Maximum
               Auction Rate;

               exceeds or is equal to the sum of:

                    (2) the aggregate principal amount of Outstanding Series
               2001-1 Notes subject to Submitted Bids by Existing Holders
               specifying one or more rates higher than the Maximum Auction
               Rate; and

                    (3) the aggregate principal amount of Outstanding Series
               2001-1 Notes subject to Submitted Sell Orders;

               (in the event such excess or such equality exists, other than
               because all of the Outstanding Series 2001-1 Notes are subject to
               Submitted Hold Orders, such Submitted Bids described in subclause
               (1) above shall be referred to collectively as "Sufficient
               Bids"); and

               (C) if Sufficient Bids exist, the Bid Auction Rate, which shall
          be the lowest rate specified in such Submitted Bids such that if:

                    (1) (x) each such Submitted Bid from Existing Holders
               specifying such lowest rate and (y) all other Submitted Bids from
               Existing Holders specifying lower rates were rejected, thus
               entitling such Existing Holders to continue to own the principal
               amount of Series 2001-1 Notes subject to such Submitted Bids; and

                    (2) (x) each such Submitted Bid from Potential Holders
               specifying such lowest rate and (y) all other Submitted Bids from
               Potential Holders specifying lower rates were accepted;

               the result would be that such Existing Holders described in
               subclause (1) above would continue to own an aggregate principal
               amount of Outstanding Series 2001-1 Notes which, when added to
               the aggregate principal amount of Outstanding Series 2001-1 Notes
               to be purchased by such Potential Holders described in subclause
               (2) above, would equal not less than the Available Series 2001-1
               Notes.

          (ii) Promptly after the Auction Agent has made the determinations
     pursuant to Section 4(c)(i) hereof, the Auction Agent shall advise the
     Trustee, the Broker-Dealers and the Corporation of the Net Loan Rate, the
     Maximum Auction Rate and the All Hold Rate

                                      -21-
<PAGE>

     and the components thereof on the Auction Date and, based on such
     determinations, the Auction Rate for the next succeeding Interest Period as
     follows:

               (A) if Sufficient Bids exist, that the Auction Rate for the next
          succeeding Interest Period shall be equal to the Bid Auction Rate so
          determined;

               (B) if Sufficient Bids do not exist (other than because all of
          the Outstanding Series 2001-1 Notes are subject to Submitted Hold
          Orders), that the Auction Rate for the next succeeding Interest Period
          shall be equal to the Maximum Auction Rate; or

               (C) if all Outstanding Series 2001-1 Notes are subject to
          Submitted Hold Orders, that the Auction Rate for the next succeeding
          Interest Period shall be equal to the All Hold Rate.

          (iii) Promptly after the Auction Agent has determined the Auction
     Rate, the Auction Agent shall determine and advise the Trustee of the
     Series 2001-1 Note Auction Rate, which rate shall be the lesser of (a) the
     Auction Rate and (b) the Net Loan Rate; provided, however, that in no event
     shall the Series 2001-1 Note Auction Rate exceed the Series 2001-1 Note
     Auction Rate Limitation.

     (d) Existing Holders shall continue to own the principal amount of Series
2001-1 Notes that are subject to Submitted Hold Orders. If Sufficient Bids have
been received by the Auction Agent, the Bid Auction Rate will be the Auction
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 (i).

     If the Auction Agent has not received Sufficient Bids (other than because
all of the Outstanding Series 2001-1 Notes are subject to Submitted Hold
Orders), the Auction Rate will be the Maximum Auction Rate, and Submitted Orders
will be accepted or rejected and the Auction Agent will take such other action
as described below in subparagraph (ii).

          (i) if Sufficient Bids have been made, all Submitted Sell Orders shall
     be accepted and, subject to the provisions of paragraphs (iv) and (v) of
     this Section 4(d), Submitted Bids shall be accepted or rejected as follows
     in the following order of priority, and all other Submitted Bids shall be
     rejected:

               (A) Existing Holders' Submitted Bids specifying any rate that is
          higher than the Bid Auction Rate shall be accepted, thus requiring
          each such Existing Holder to sell the aggregate principal amount of
          Series 2001-1 Notes subject to such Submitted Bids;

               (B) Existing Holders' Submitted Bids specifying any rate that is
          lower than the Bid Auction Rate shall be rejected, thus entitling each
          such Existing Holder to continue to own the aggregate principal amount
          of Series 2001-1 Notes subject to such Submitted Bids;

                                      -22-
<PAGE>

               (C) Potential Holders' Submitted Bids specifying any rate that is
          lower than the Bid Auction Rate shall be accepted;

               (D) Each Existing Holders' Submitted Bid specifying a rate that
          is equal to the Bid Auction Rate shall be rejected, thus entitling
          such Existing Holder to continue to own the aggregate principal amount
          of Series 2001-1 Notes subject to such Submitted Bid, unless the
          aggregate principal amount of Outstanding Series 2001-1 Notes subject
          to all such Submitted Bids shall be greater than the principal amount
          of Series 2001-1 Notes (the "remaining principal amount") equal to the
          excess of the Available Series 2001-1 Notes over the aggregate
          principal amount of Series 2001-1 Notes subject to Submitted Bids
          described in clauses (B) and (C) of this Section 4(d)(i), in which
          event such Submitted Bid of such Existing Holder shall be rejected in
          part, and such Existing Holder shall be entitled to continue to own
          the principal amount of Series 2001-1 Notes subject to such Submitted
          Bid, but only in an amount equal to the aggregate principal amount of
          Series 2001-1 Notes obtained by multiplying the remaining principal
          amount by a fraction, the numerator of which shall be the principal
          amount of Outstanding Series 2001-1 Notes owned by such Existing
          Holder subject to such Submitted Bid and the denominator of which
          shall be the sum of the principal amount of Outstanding Series 2001-1
          Notes subject to such Submitted Bids made by all such Existing Holders
          that specified a rate equal to the Bid Auction Rate; and

               (E) Each Potential Holder's Submitted Bid specifying a rate that
          is equal to the Bid Auction Rate shall be accepted, but only in an
          amount equal to the principal amount of Series 2001-1 Notes obtained
          by multiplying the excess of the aggregate principal amount of
          Available Series 2001-1 Notes over the aggregate principal amount of
          Series 2001-1 Notes subject to Submitted Bids described in clauses
          (B), (C) and (D) of this Section 4(d)(i) by a fraction the numerator
          of which shall be the aggregate principal amount of Outstanding Series
          2001-1 Notes subject to such Submitted Bid and the denominator of
          which shall be the sum of the principal amount of Outstanding Series
          2001-1 Notes subject to Submitted Bids made by all such Potential
          Holders that specified a rate equal to the Bid Auction Rate.

          (ii) If Sufficient Bids have not been made (other than because all of
     the Outstanding Series 2001-1 Notes are subject to Submitted Hold Orders),
     subject to the provisions of Section 4(d)(iv) hereof, Submitted Orders
     shall be accepted or rejected as follows in the following order of priority
     and all other Submitted Bids shall be rejected:

               (A) Existing Holders' Submitted Bids specifying any rate that is
          equal to or lower than the Maximum Auction Rate shall be rejected,
          thus entitling such Existing Holders to continue to own the aggregate
          principal amount of Series 2001-1 Notes subject to such Submitted
          Bids;

                                      -23-
<PAGE>

               (B) Potential Holders' Submitted Bids specifying (1) any rate
          that is equal to or lower than the Maximum Auction Rate shall be
          accepted and (2) any rate that is higher than the Maximum Auction Rate
          shall be rejected; and

               (C) each Existing Holder's Submitted Bid specifying any rate that
          is higher than the Maximum Auction Rate and the Submitted Sell Order
          of each Existing Holder shall be accepted, thus entitling each
          Existing Holder that submitted any such Submitted Bid or Submitted
          Sell Order to sell the Series 2001-1 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 Series 2001-1 Notes obtained by
          multiplying the aggregate principal amount of Series 2001-1 Notes
          subject to Submitted Bids described in clause (B)(1) of this Section
          4(d)(ii) by a fraction the numerator of which shall be the aggregate
          principal amount of Outstanding Series 2001-1 Notes owned by such
          Existing Holder subject to such Submitted Bid or Submitted Sell Order
          and the denominator of which shall be the aggregate principal amount
          of Outstanding Series 2001-1 Notes subject to all such Submitted Bids
          and Submitted Sell Orders.

          (iii) If all Outstanding Series 2001-1 Notes are subject to Submitted
     Hold Orders, all Submitted Bids shall be rejected.

          (iv) If, as a result of the procedures described in paragraph (i) or
     (ii) of this Section 4(d), any Existing Holder would be entitled or
     required to sell, or any Potential Holder would be entitled or required to
     purchase, a principal amount of Series 2001-1 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 Series 2001-1 Notes to be purchased or sold by any Existing Holder or
     Potential Holder so that the principal amount of Series 2001-1 Notes
     purchased or sold by each Existing Holder or Potential Holder shall be
     equal to an Authorized Denomination.

          (v) If, as a result of the procedures described in paragraph (i) of
     this Section 4(d), any Potential Holder would be entitled or required to
     purchase less than an Authorized Denomination of Series 2001-1 Notes, the
     Auction Agent shall, in such manner as in its sole discretion it shall
     determine, allocate Series 2001-1 Notes for purchase among Potential
     Holders so that only Series 2001-1 Notes in Authorized Denominations are
     purchased by any Potential Holder, even if such allocation results in one
     or more of such Potential Holders not purchasing any Series 2001-1 Notes.

     (e) Based on the result of each Auction, the Auction Agent shall determine
the aggregate principal amount of Series 2001-1 Notes to be purchased and the
aggregate principal amount of Series 2001-1 Notes to be sold by Potential
Holders and Existing Holders 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 Series 2001-1 Notes to be sold differs from such
aggregate principal amount of Series 2001-1 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, Series 2001-1 Notes.

                                      -24-
<PAGE>

     (f) Any calculation by the Auction Agent, the Corporation or the Trustee,
as applicable, of the Series 2001-1 Note Auction Rate, One-Month LIBOR,
Three-Month LIBOR, Maximum Auction Rate, All Hold Rate and Non-Payment Rate, and
any calculation by or on behalf of the Corporation of the Net Loan Rate, shall,
in the absence of manifest error, be binding on all other parties.

     (g) Notwithstanding anything in this Third Supplemental Indenture to the
contrary notwithstanding, no Auction will be held on any Auction Date hereunder
during the continuance of a Payment Default.

     Section 5. Determination of Payment Defaults and Payment of Auction Agent
and Broker-Dealer Fees.

          (a) The Trustee shall determine, not later than 2:00 p.m., New York
     City time, on the Business Day next succeeding each Interest Payment Date
     relating to a series of Series 2001-1 Notes, whether a Payment Default has
     occurred with respect to such series. If a Payment Default has occurred,
     the Trustee shall, not later than 2:15 p.m., New York City 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 Trustee shall immediately send a notice
     in substantially the form of Exhibit D attached hereto to the Auction Agent
     by telecopy or similar means.

          (b) Not later than 12:00 noon, New York City time, on each Interest
     Payment Date relating to a series of Series 2001-1 Notes, the Corporation
     shall pay to the Auction Agent, in immediately available funds out of
     amounts available therefor in the Administration Fund, an amount equal to
     the Auction Agent Fee and the Broker-Dealer Fee as calculated in accordance
     with the Auction Agent Agreement. The Corporation shall, from time to time
     at the request of the Auction Agent, reimburse the Auction Agent for its
     reasonable expenses as provided in the Auction Agent Agreement, such
     expenses to be paid out of amounts available therefor in the Administration
     Fund.

     Section 6. Calculation of Maximum Auction Rate, All Hold Rate, Net Loan
Rate, One-Month LIBOR, Three-Month LIBOR and Non-Payment Rate. The Auction Agent
shall calculate the Maximum Auction Rate, the All Hold Rate and One-Month LIBOR
or Three-Month LIBOR, as the case may be, on each Auction Date and shall notify
the Trustee and the Broker-Dealers of the Maximum Auction Rate, the All Hold
Rate and One-Month LIBOR or Three-Month LIBOR, as the case may be, as provided
in the Auction Agent Agreement. If the ownership of the Series 2001-1 Notes is
no longer maintained in Book-Entry Form by the Securities Depository, the
Trustee shall calculate the Maximum Auction Rate on the Business Day immediately
preceding each Interest Payment Date after the delivery of definitive Series
2001-1 Notes pursuant to Section 17 hereof. If a Payment Default shall have
occurred, the Trustee shall calculate the Non-Payment Rate on the Interest Rate
Determination Date for (i) each Interest Period commencing after the occurrence
and during the continuance of such Payment Default and (ii) any Interest Period
commencing less than two Business Days after the cure of any Payment Default.
The Auction Agent shall determine One-Month LIBOR or Three-Month LIBOR, as
applicable, for each Interest Period other than the first Interest Period;

                                      -25-
<PAGE>

provided that if the ownership of the Series 2001-1 Notes is no longer
maintained in Book-Entry Form, or if a Payment Default has occurred, then the
Trustee shall determine One-Month LIBOR or Three-Month LIBOR, as applicable, for
each such Interest Period. The determination by the Trustee or the Auction
Agent, as the case may be, of One-Month LIBOR or Three-Month LIBOR, as
applicable, 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 Trustee of One-Month LIBOR or Three-Month LIBOR, as
applicable.

     The Net Loan Rate with respect to each Interest Rate Determination Date
shall be determined by or on behalf of the Corporation and written notice
thereof given to the Auction Agent and the Trustee on or prior to the
twenty-fifth day (or, if such twenty-fifth day is not a Business Day, the next
succeeding Business Day) of the calendar month preceding such Interest Rate
Determination Date. If the Corporation shall fail or refuse to determine the Net
Loan Rate, the Net Loan Rate shall be the Net Loan Rate last determined and
communicated to the Auction Agent and the Trustee in accordance with this
paragraph. The determination by or on behalf of the Corporation of the Net Loan
Rate shall (in the absence of manifest error) be final and binding upon all
parties.

     Section 7. Notification of Rates, Amounts and Payment Dates.

          (a) By 10:00 a.m., New York City time, on each Regular Record Date
     with respect to the Series 2001-1 Notes, the Trustee shall determine the
     aggregate amounts of interest distributable on the next succeeding Interest
     Payment Date to the beneficial owners of each series thereof.

          (b) As soon as practicable prior to each Interest Payment Date with
     respect to the Series 2001-1 Notes, the Trustee shall:

               (i) confirm with the Auction Agent, so long as no Payment Default
          has occurred and is continuing and the ownership of each series of
          Series 2001-1 Notes is maintained in Book-Entry Form by the Securities
          Depository, (1) the date of such next Interest Payment Date and (2)
          the amount payable to the Auction Agent on such Interest Payment Date
          pursuant to Section 5(b) hereof;

               (ii) pursuant to Section 3 hereof, advise the Holders of each
          series of Series 2001-1 Notes of any Carry-Over Amount accruing on
          such Series 2001-1 Notes; and

               (iii) advise the Securities Depository, so long as the ownership
          of each series of Series 2001-1 Notes is maintained in Book-Entry Form
          by the Securities Depository, upon request, of the Series 2001-1 Note
          Interest Rate payable on such series of Series 2001-1 Notes and the
          interest amount.

          If any day scheduled to be an Interest Payment Date with respect to a
     series of Series 2001-1 Notes shall be changed after the Trustee shall have
     given the notice or confirmation referred to in clause (i) of the preceding
     sentence, the Trustee shall, not later than 9:15 a.m., New York City time,
     on the Business Day next preceding the earlier of the new Interest Payment
     Date or the old Interest Payment Date, by such means as the Trustee deems
     practicable, give notice of

                                      -26-
<PAGE>

     such change to the Auction Agent, so long as no Payment Default has
     occurred and is continuing and the ownership of the Series 2001-1 Notes is
     maintained in Book-Entry Form by the Securities Depository.

     Section 8. Auction Agent.

          (a) Bankers Trust Company is hereby appointed as Initial Auction Agent
     to serve as agent for the Corporation in connection with Auctions. The
     Trustee and the Corporation will, and the Trustee is hereby directed to,
     enter into the Initial Auction Agent Agreement with Bankers Trust Company,
     as the Initial Auction Agent. Any Substitute Auction Agent shall be (i) a
     bank, national banking association or trust company duly organized under
     the laws of the United States of America or any state or territory thereof
     having its principal place of business in the Borough of Manhattan, New
     York, or such other location as approved by the Trustee in writing and
     having a combined capital stock or surplus of at least $50,000,000, or (ii)
     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 Third Supplemental
     Indenture by giving at least ninety (90) days' notice to the Trustee, the
     Market Agent and the Corporation. The Auction Agent may be removed at any
     time by the Trustee upon the written direction of an Authorized Officer of
     the Corporation or the Holders of 66-2/3% of the aggregate principal amount
     of the Series 2001-1 Senior Notes then Outstanding (or, if no Series 2001-1
     Senior Notes are then Outstanding, the Holders of 66-2/3% of the aggregate
     principal amount of the Series 2001-1C Notes then Outstanding), and, if by
     such Holders, by an instrument signed by such Holders or their attorneys
     and filed with the Auction Agent, the Corporation and the Trustee upon at
     least ninety (90) days' notice. Neither resignation nor removal of the
     Auction Agent pursuant to the preceding two sentences shall be effective
     unless and until a Substitute Auction Agent has been appointed and has
     accepted such appointment. However, if a successor Auction Agent shall not
     have been appointed within sixty (60) days from the date of a notice of
     resignation, the resigning Auction Agent may petition any court of
     competent jurisdiction for the appointment of a successor Auction Agent. If
     required by the Corporation, 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 twenty-five (25) days after notifying the Trustee, the Market Agent
     and the Corporation 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.

          (b) 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 Trustee at the
     direction of an Authorized Officer of the Corporation, shall use its best
     efforts to appoint a Substitute Auction Agent.

          (c) The Auction Agent is acting as agent for the Corporation 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

                                      -27-
<PAGE>

     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.

          (d) In the event of a change in the Auction Agent Fee Rate pursuant to
     Section 6.4(b) of the Auction Agent Agreement, the Auction Agent shall give
     a Notice of Fee Rate Change to the Trustee in accordance with the Auction
     Agent Agreement.

     Section 9. Broker-Dealers.

          (a) The Auction Agent will enter into a Broker-Dealer Agreement with
     Salomon Smith Barney Inc., as the sole initial Broker-Dealer with respect
     to the Series 2001-1 Notes. An Authorized Officer of the Corporation may,
     from time to time, approve one or more additional persons to serve as
     Broker-Dealers under Broker-Dealer Agreements and shall be responsible for
     providing such Broker-Dealer Agreements to the Trustee and the Auction
     Agent; provided, however, that while Salomon Smith Barney Inc. is serving
     as a Broker-Dealer with respect to a series of the Series 2001-1 Notes,
     Salomon Smith Barney Inc. shall have the right to consent to the approval
     of any additional Broker-Dealers with respect to such series, which consent
     will not be unreasonably withheld.

          (b) Any Broker-Dealer may be removed at any time, at the request of an
     Authorized Officer of the Corporation, but there shall, at all times, be at
     least one Broker-Dealer appointed and acting as such.

     Section 10. Changes in Auction Period or Periods.

          (a) While any of the Series 2001-1 Notes are Outstanding, the
     Corporation may, from time to time, convert the length of one or more
     Auction Periods (an "Auction Period Adjustment"), 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 Series 2001-1 Note Interest
     Rate borne by the Series 2001-1 Notes. The Corporation shall not initiate
     an Auction Period Adjustment unless it shall have received, not less than
     three (3) days nor more than twenty (20) days prior to the Auction Period
     Adjustment, (i) the written consent of the Market Agent, which consent
     shall not be unreasonably withheld and (ii) written confirmation from each
     of the Rating Agencies then rating the Series 2001-1 Notes that such
     Auction Period Adjustment will not adversely affect its ratings then
     applicable to any of the Series 2001-1 Notes. The Corporation shall
     initiate the Auction Period Adjustment by giving written notice by
     Corporation Order to the Trustee, the Auction Agent, the Market Agent and
     the Securities Depository in substantially the form of, or containing
     substantially the information contained in, Exhibit E to this Third
     Supplemental Indenture at least ten (10) days prior to the Auction Date for
     such Auction Period.

          (b) Any such adjusted Auction Period shall not be less than seven (7)
     days nor more than ninety-one (91) days. If any such adjusted Auction
     Period will be less than twenty-eight (28) days, the notice described above
     will be effective only if it is accompanied by a written statement of the
     Trustee, the Auction Agent and the Securities Depository to the effect that
     they are capable of performing their duties, if any, under this Third
     Supplemental Indenture, the

                                      -28-
<PAGE>

     Auction Agent Agreement and any Broker-Dealer Agreement with respect to
     such changed Auction Period.

          (c) An Auction Period Adjustment shall take effect only (A) if the
     Trustee and the Auction Agent receive, by 11:00 a.m., New York City time,
     on the Business Day before the Auction Date for the first such Auction
     Period, a Corporation Certificate in substantially the form attached as, or
     containing substantially the same information contained in, Exhibit F to
     this Third Supplemental Indenture, authorizing the Auction Period
     Adjustment specified in such certificate along with a copy of the consent
     of the Market Agent and the Rating Agency confirmations described in
     subparagraph (a) above and, if applicable, the written statement of the
     Trustee, the Auction Agent and the Securities Depository described in
     subparagraph (b) above, 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 Series 2001-1 Note Interest Rate for the
     next Auction Period shall be determined pursuant to the provisions of
     Sections 4 through 9 hereof 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 Series 2001-1 Note Auction Rate for the next Auction Period
     shall be the lesser of the Maximum Auction Rate and the Net Loan 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 2.5 of the Auction Agent Agreement.

     Section 11. Changes in the Auction Date. The Market Agent, with the written
consent of an Authorized Officer of the Corporation, 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 of this Third Supplemental Indenture
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 Series 2001-1 Note Interest
Rate borne by the Series 2001-1 Notes. The Market Agent shall deliver a written
request for consent to such change in the Auction Date to the Corporation not
less than three days nor more than twenty (20) days prior to the effective date
of such change. The Market Agent 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 ten (10) days prior to the proposed changed
Auction Date to the Trustee, the Auction Agent, the Corporation and the
Securities Depository. Such notice shall be substantially in the form of, or
contain substantially the information contained in, Exhibit G to this Third
Supplemental Indenture.

     In connection with any change described in this Section 11, the Auction
Agent shall provide such further notice to such parties as is specified in
Section 2.5 of the Auction Agent Agreement.

     Section 12. Additional Provisions Regarding the Series 2001-1 Note Interest
Rate. The determination of a Series 2001-1 Note Interest Rate by the Auction
Agent or any other

                                      -29-
<PAGE>

Person pursuant to the provisions of the applicable Section
of this Third Supplemental Indenture shall be conclusive and binding on the
Holders of the series of Series 2001-1 Notes to which such Series 2001-1 Note
Interest Rate applies, and the Corporation and the Trustee may rely thereon for
all purposes.

     In no event shall the cumulative amount of interest paid or payable on a
series of Series 2001-1 Notes (including interest calculated as provided herein,
plus any other amounts that constitute interest on the Series 2001-1 Notes of
such series under applicable law, which are contracted for, charged, reserved,
taken or received pursuant to the Series 2001-1 Notes of such series or related
documents) calculated from the date of issuance of such series through any
subsequent day during the term of such series or otherwise prior to payment in
full of the Series 2001-1 Notes of such series 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 Series 2001-1 Notes of a series
or related documents or otherwise contracted for, charged, reserved, taken or
received in connection with the Series 2001-1 Notes of such series, or if the
redemption or acceleration of the maturity of the Series 2001-1 Notes of such
series results in payment to or receipt by the Holder or any former Holder of
the Series 2001-1 Notes of such series of any interest in excess of that
permitted by applicable law, then, notwithstanding any provision of the Series
2001-1 Notes of such series or related documents to the contrary, all excess
amounts theretofore paid or received with respect to the Series 2001-1 Notes of
such series shall be credited on the principal balance of the Series 2001-1
Notes of such series (or, if the Series 2001-1 Notes of such series have been
paid or would thereby be paid in full, refunded by the recipient thereof), and
the provisions of the Series 2001-1 Notes of such series and related documents
shall automatically and immediately be deemed reformed and the amounts
thereafter collectible hereunder and thereunder reduced, 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 Series 2001-1 Notes of such series and under the related documents.

     Section 13. Qualifications of Market Agent. The Market Agent shall be a
member of the National Association of Securities Dealers, Inc., have a
capitalization of at least $50,000,000 and be authorized by law to perform all
the duties imposed upon it by this Third Supplemental Indenture. The Market
Agent may resign and be discharged of the duties and obligations created by this
Third Supplemental Indenture by giving at least thirty (30) days notice to the
Corporation and the Trustee, provided that such resignation shall not be
effective until the appointment of a successor market agent by the Corporation
and the acceptance of such appointment by such successor market agent. The
Market Agent may be replaced at the direction of the Corporation, by an
instrument signed by an Authorized Officer of the Corporation filed with the
Market Agent and the Trustee at least thirty (30) days before the effective date
of such replacement, provided that such replacement shall not be effective until
the appointment of a successor market agent by the Corporation and the
acceptance of such appointment by such successor market agent.

     In the event that the Market Agent shall be removed or be dissolved, or if
the property or affairs of the Market 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, and there is no Market Agent, and the
Corporation shall not have appointed its successor as Market Agent, the

                                      -30-
<PAGE>

Trustee, notwithstanding the provisions of the first paragraph of this Section
13, shall be deemed to be the Market Agent for all purposes of this Third
Supplemental Indenture until the appointment by the Corporation of the successor
Market Agent. Nothing in this Section 13 shall be construed as conferring on the
Trustee additional duties other than as set forth herein.

     Section 14. Purposes of Issuance of Series 2001-1 Notes. The Series 2001-1
Notes are being issued to provide funds to be used to (a) acquire student loan
notes incurred under the Higher Education Act and under the Alternative Loan
Programs, (b) fund the Reserve Fund, (c) pay a portion of the interest coming
due on the Series 2001-1 Notes and (d) pay Costs of Issuance of the Series
2001-1 Notes.

     Section 15. Deposit of Series 2001-1 Note Proceeds. From the proceeds
derived from the sale of the Series 2001-1 Notes, there shall be deposited with
the Trustee:

          (A) for credit to the Series 2001-1 Reserve Account, an amount equal
     to $2,727,000;

          (B) for credit to the Series 2001-1 Capitalized Interest Account, an
     amount equal to $250,000;

          (C) for credit to the Series 2001-1 Cost of Issuance Account, an
     amount equal to $400,000; and

          (D) for credit to the Series 2001-1 Acquisition Account, the
     remainder, to remain in the Series 2001-1 Acquisition Account until applied
     for the acquisition or origination of Eligible Loans, including the
     acquisition of Eligible Loans pursuant to the Series 2001-1 Transfer
     Agreement (which Eligible Loans were either originated by GOAL Funding or
     purchased by GOAL Funding pursuant to the Student Loan Purchase Agreements
     identified in Exhibit H-2 hereto) and pursuant to the Student Loan Purchase
     Agreements identified in Exhibit H-1 hereto (as such Exhibit H-1 may be
     amended or supplemented from time to time).

     Upon the acquisition of Eligible Loans pursuant to the Series 2001-1
Transfer Agreement, the Trustee shall deposit to the credit of the Series 2001-1
Alternative Loan Guarantee Account cash in the amount of $840,159.10 received
from the trustee for GOAL Funding in connection with such acquisition.
Thereafter, upon the acquisition of any Alternative Loan with amounts from the
Series 2001-1 Acquisition Account or the Series 2001-1 Surplus Account, the
Trustee shall, as a condition of such acquisition, receive and deposit to the
credit of the Series 2001-1 Alternative Loan Guarantee Account cash in the
amount of the origination fee, if any, paid in connection with the origination
of such Alternative Loan.

     Section 16. Redemption of Series 2001-1 Notes. The Series 2001-1 Notes are
subject to redemption as provided in this Section 16.

          (A) Redemption From Unexpended Proceeds. Subject to compliance with
     Section 10.2 of the Indenture, Outstanding Series 2001-1 Notes shall be
     redeemed, in part, on the first regularly scheduled Interest Payment Date
     occurring after November 25, 2001, for which notice can be given in
     accordance with subsection (E) of this Section 16, at a Redemption Price
     equal to

                                      -31-
<PAGE>

     100% of the principal amount of Series 2001-1 Notes so redeemed, from
     proceeds of the Series 2001-1 Notes constituting that portion of the
     Balance of the Series 2001-1 Acquisition Account that have not been used to
     acquire Eligible Loans by November 25, 2001, and from that portion of the
     Reserve Fund which, if left in the Reserve Fund upon such redemption, would
     cause the Balance in the Reserve Fund to exceed the Reserve Fund
     Requirement, calculated after giving effect to such redemption. The Trustee
     shall transfer any such moneys to the credit of the Series 2001-1
     Retirement Subaccount for such purpose without any further authorization or
     direction.

          (B) Redemption from Surplus Account. Subject to compliance with
     Section 10.2 of the Indenture, Outstanding Series 2001-1 Notes shall be
     redeemed on any regularly scheduled Interest Payment Date with respect
     thereto, in whole or in part, at a Redemption Price equal to 100% of the
     principal amount thereof to be redeemed, from that portion of the Balance
     of the Series 2001-1 Surplus Subaccount transferred to the Series 2001-1
     Retirement Account in accordance with this subsection (B). If there are any
     amounts in the Series 2001-1 Surplus Subaccount which have been on deposit
     therein for at least twelve (12) months and have not been used to acquire
     Student Loans, and if there are no deficiencies in any of the
     Indemnification Fund, the Note Fund, the Reserve Fund or the Special
     Redemption and Prepayment Account, the Trustee shall give written notice to
     the Corporation that such moneys will be transferred to the Series 2001-1
     Retirement Account and applied to the redemption of Series 2001-1 Notes in
     accordance with this subsection (B) unless the Corporation, within ten (10)
     Business Days of receipt of such notice, delivers to the Trustee a
     Corporation Certificate to the effect that some or all of such amounts are
     reasonably expected to be necessary to pay Debt Service on the Outstanding
     Notes or on Outstanding Other Obligations, Carry-Over Amounts, including
     accrued interest thereon, with respect to Outstanding Notes, Administrative
     Expenses or Note Fees or to make required deposits to the Indemnification
     Fund. Any amounts so certified by the Corporation will remain in the Series
     2001-1 Surplus Subaccount and will not be applied to the redemption of
     Series 2001-1 Notes pursuant to this subsection (B).

          (C) Optional Redemption. Subject to compliance with Section 10.2 of
     the Indenture, Outstanding Series 2001-1 Notes may, at the option of the
     Corporation and from amounts credited to the Retirement Account for such
     purpose, be redeemed on any regularly scheduled Interest Payment Date with
     respect thereto, in whole or in part, at a Redemption Price equal to 100%
     of the principal amount of Series 2001-1 Notes to be so redeemed.

          Notwithstanding the foregoing, no Series 2001-1 Notes shall be
     redeemed pursuant to this subsection (C) unless the Trustee receives, at
     least forty-five (45) days prior to the proposed Redemption Date (unless a
     shorter notice is satisfactory to the Trustee), a Corporation Certificate
     certifying that, based on a Cash Flow Projection, such redemption of such
     Series 2001-1 Notes will not materially adversely affect the Corporation's
     ability to pay Debt Service on the Outstanding Notes and Outstanding Other
     Obligations, Carry-Over Amounts (including accrued interest thereon) with
     respect to Outstanding Notes, Administrative Expenses or Note Fees or to
     make required deposits to the Indemnification Fund.

          (D) Selection of Series 2001-1 Notes for Redemption. If less than all
     Outstanding Series 2001-1 Notes are to be redeemed pursuant to subsections
     (A), (B) or (C) of this Section 16, the principal amounts of each series of
     Series 2001-1 Notes to be redeemed shall be selected as follows: to the
     extent that the provisions of Section 10.2 of the Indenture will not be
     violated

                                      -32-
<PAGE>

     thereby, either (i) that principal amount of Series 2001-1C Notes shall be
     redeemed which bears, as nearly as practicable, the same (but no greater)
     proportion to the aggregate principal amount of all Outstanding Series
     2001-1 Notes to be redeemed as the aggregate principal amount of
     Outstanding Series 2001-1C Notes bears to the aggregate principal amount of
     all Outstanding Series 2001-1 Notes or (ii) if the Trustee receives, at
     least forty-five (45) days prior to the Redemption Date (unless a shorter
     notice is satisfactory to the Trustee), a Corporation Certificate
     certifying that, based on a Cash Flow Projection, a different proportion of
     Series 2001-1C Notes to be redeemed will not materially adversely affect
     the Corporation's ability to pay Debt Service on the Outstanding Notes and
     on Outstanding Other Obligations, Carry-Over Amounts (including accrued
     interest thereon) with respect to Outstanding Notes, Administrative
     Expenses or Note Fees or to make required deposits to the Indemnification
     Fund, Series 2001-1C Notes shall be redeemed in such principal amount as is
     designated by the Corporation in such certificate. The remaining Series
     2001-1 Notes to be redeemed shall be selected from each series of the
     Series 2001-1 Senior Notes in, as nearly as practicable, the same
     proportion to the aggregate principal amount of all Outstanding Series
     2001-1 Senior Notes to be redeemed as the aggregate principal amount of
     Outstanding Series 2001-1 Senior Notes of such series bears to the
     aggregate principal amount of all Outstanding Series 2001-1 Senior Notes.

          Notwithstanding the foregoing provisions of this Section 16, to the
     extent Series 2001-1C Notes cannot be redeemed due to the application of
     Section 10.2 of the Indenture, but Series 2001-1 Senior Notes may be
     redeemed without violating the provisions of said Section 10.2, the
     particular Series 2001-1 Notes to be redeemed shall be selected from the
     Series 2001-1 Senior Notes in the manner described in the preceding
     paragraph.

          If less than all of the Outstanding Series 2001-1 Notes of a given
     series are to be redeemed pursuant to this Section 16, the particular
     Series 2001-1 Notes to be redeemed shall be selected by the Trustee by lot
     in such manner as the Trustee shall deem fair and appropriate and which may
     provide for the selection for redemption of portions of the principal of
     Series 2001-1 Notes in an Authorized Denomination.

          The Trustee shall promptly notify the Note Registrar and any Paying
     Agent for the Series 2001-1 Notes (in each case, if other than the Trustee)
     in writing of the Series 2001-1 Notes selected for redemption and, in the
     case of any Series 2001-1 Note selected for partial redemption, the
     principal amount thereof to be redeemed.

          For all purposes of the Indenture, unless the context otherwise
     requires, all provisions relating to the redemption of Series 2001-1 Notes
     shall relate, in the case of any Series 2001-1 Note redeemed or to be
     redeemed only in part, to the portion of the principal of such Series
     2001-1 Note which has been or is to be redeemed.

          (E) Notice of Redemption. Notice of redemption of Series 2001-1 Notes
     pursuant to this Section 16 shall be given not less than fifteen (15) days
     prior to the Redemption Date in accordance with the provisions of Section
     10.4 of the Indenture.

                                      -33-
<PAGE>

     Section 17. Book-Entry Series 2001-1 Notes.

          (a) The registered Holder of all Series 2001-1 Notes shall be the
     Securities Depository and the Series 2001-1 Notes shall be registered in
     the name of the nominee for the Securities Depository. The "Series 2001-1
     Notes" referred to in this subsection (a) shall refer to the Series 2001-1
     Notes registered in the name of the Securities Depository.

          (b) The Series 2001-1 Notes shall be initially issued in the form of
     separate, single, authenticated fully-registered Series 2001-1 Notes for
     each series thereof in the amount of such series. Upon initial issuance,
     the ownership of each such Series 2001-1 Note shall be registered in the
     registration books kept by the Note Registrar in the name of the nominee of
     the Securities Depository. The Trustee and the Corporation may treat the
     Securities Depository (or its nominee) as the sole and exclusive owner of
     the Series 2001-1 Notes registered in its name for the purposes of (1)
     payment of the principal or Redemption Price of, interest on or Carry-Over
     Amount (including any accrued interest thereon) with respect to the Series
     2001-1 Notes, (2) selecting the Series 2001-1 Notes or portions thereof to
     be redeemed, (3) giving any notice permitted or required to be given to
     Holders under the Indenture, (4) registering the transfer of Series 2001-1
     Notes, and (5) obtaining any consent or other action to be taken by Holders
     and for all other purposes whatsoever, and neither the Trustee nor the
     Corporation shall be affected by any notice to the contrary (except as
     provided in subsection (c) below). Neither the Trustee nor the Corporation
     shall have any responsibility or obligation to any Participant, any
     Beneficial Owner or any other Person claiming a beneficial ownership
     interest in the Series 2001-1 Notes under or through the Securities
     Depository or any Participant, or any other Person which is not shown on
     the registration books of the Note Registrar as being a Holder, with
     respect to the accuracy of any records maintained by the Securities
     Depository or any Participant, the payment to the Securities Depository of
     any amount in respect of the principal or Redemption Price of, interest on
     or Carry-Over Amount (including any accrued interest thereon) with respect
     to the Series 2001-1 Notes; any notice which is permitted or required to be
     given to Holders under the Indenture; the selection by the Securities
     Depository or any Participant of any Person to receive payment in the event
     of a partial redemption of the Series 2001-1 Notes; or any consent given or
     other action taken by the Securities Depository as Holder. The Trustee
     shall pay all principal and Redemption Price of, interest on and Carry-Over
     Amount (including any accrued interest thereon) with respect to the Series
     2001-1 Notes only "to or upon the order of" the Securities Depository (as
     that phrase is used in the Uniform Commercial Code as adopted in the State
     of South Dakota), and all such payments shall be valid and effective to
     fully satisfy and discharge the Corporation's obligations with respect to
     the principal, purchase price or Redemption Price of, interest on and
     Carry-Over Amount (including any accrued interest thereon) with respect to
     the Series 2001-1 Notes to the extent of the sum or sums so paid. Except as
     provided in subsection(c) below, no Person other than the Securities
     Depository shall receive an authenticated Series 2001-1 Note evidencing the
     obligation of the Corporation to make payments of principal or Redemption
     Price, interest and Carry-Over Amount (including any accrued interest
     thereon) pursuant to this Indenture. Upon delivery by the Securities
     Depository to the Trustee of written notice to the effect that the
     Securities Depository has determined to substitute a new nominee in place
     of the preceding nominee, the Series 2001-1 Notes will be transferable to
     such new nominee in accordance with subsection (f) below.

                                      -34-
<PAGE>

          (c) Except with respect to any Series 2001-1 Notes during such time as
     they bear interest at the Auction Rate, in the event the Corporation
     determines that it is in the best interest of the Corporation not to
     continue the book-entry system of transfer or that the interest of the
     Holders might be adversely affected if the book-entry system of transfer is
     continued, the Corporation may so notify the Securities Depository and the
     Trustee, whereupon the Securities Depository will notify the Participants
     of the availability through the Securities Depository of definitive Series
     2001-1 Notes. In such event, the Trustee shall authenticate, transfer and
     exchange definitive Series 2001-1 Notes as requested by the Securities
     Depository in appropriate amounts in accordance with subsection (f) below.
     The Securities Depository may determine to discontinue providing its
     services with respect to the Series 2001-1 Notes at any time by giving
     notice to the Corporation and the Trustee and discharging its
     responsibilities with respect thereto under applicable law, or the
     Corporation may determine that the Securities Depository is incapable of
     discharging its responsibilities and may so advise the Securities
     Depository. In either such event, the Corporation shall either establish
     its own book-entry system or use reasonable efforts to locate another
     securities depository. Under such circumstances (if there is no successor
     Securities Depository), the Corporation and the Trustee shall be obligated
     to deliver definitive Series 2001-1 Notes as described in this Indenture
     and in accordance with subsection (f) below. In the event definitive Series
     2001-1 Notes are issued, the provisions of this Indenture shall apply to
     such definitive Series 2001-1 Notes in all respects, including, among other
     things, the transfer and exchange of such Series 2001-1 Notes and the
     method of payment of principal or Redemption Price of, interest on and
     Carry-Over Amount (including any accrued interest thereon) with respect to
     such Series 2001-1 Notes. Whenever the Securities Depository requests the
     Corporation and the Trustee to do so, the Trustee and the Corporation will
     cooperate with the Securities Depository in taking appropriate action after
     reasonable notice (A) to make available one or more separate definitive
     Series 2001-1 Notes to any Participant having Series 2001-1 Notes credited
     to its account with the Securities Depository or (B) to arrange for another
     securities depository to maintain custody of definitive Series 2001-1
     Notes.

          (d) Notwithstanding any other provision of the Indenture to the
     contrary, so long as any Series 2001-1 Note is registered in the name of
     the nominee of the Securities Depository, all payments with respect to the
     principal or Redemption Price of, interest on and Carry-Over Amount
     (including any accrued interest thereon) with respect to such Series 2001-1
     Note and all notices with respect to such Series 2001-1 Note shall be made
     and given, respectively, to the Securities Depository as provided in its
     letter of representations.

          (e) In connection with any notice or other communication to be
     provided to Holders pursuant to the Indenture by the Corporation or the
     Trustee or with respect to any consent or other action to be taken by
     Holders, the Corporation or the Trustee, as the case may be, shall
     establish a record date for such consent or other action and give the
     Securities Depository notice of such record date not less than fifteen (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 Holder.

          (f) In the event that any transfer or exchange of Series 2001-1 Notes
     is permitted under subsection (b) or (c) of this Section 17, such transfer
     or exchange shall be accomplished upon receipt by the Trustee from the
     registered Holder thereof of the Series 2001-1 Notes to be transferred or
     exchanged and appropriate instruments of transfer to the permitted
     transferee, all

                                      -35-
<PAGE>

     in accordance with the applicable provisions of the Indenture. In the event
     definitive Series 2001-1 Notes are issued to Holders other than the nominee
     of the Securities Depository, or another securities depository as Holder of
     all the Series 2001-1 Notes, the provisions of the Indenture shall also
     apply to, among other things, the printing of such definitive Series 2001-1
     Notes and the methods of payment of principal or Redemption Price of,
     interest on and Carry-Over Amount (including any accrued interest thereon)
     with respect to such Series 2001-1 Notes.

          (g) Notwithstanding any provision of Article Ten of the Indenture to
     the contrary, in connection with any redemption of Series 2001-1 Notes
     while The Depository Trust Company, New York, New York ("DTC"), is the sole
     Holder, the Corporation shall give notice of such redemption to the Trustee
     at least thirty (30) days prior to the date fixed for redemption with
     respect to the Series 2001-1 Notes, and the Trustee shall give notice of
     redemption to DTC as Holder of such Series 2001-1 Notes pursuant to Section
     10.4 of the Indenture at least fifteen (15) days and not more than thirty
     (30) days prior to the date fixed for redemption of Series 2001-1 Notes.

     Section 18. Series 2001-1 Accounts and Subaccounts. So long as any Series
2001-1 Notes are Outstanding, the following Accounts and Subaccounts, which are
hereby established, shall be maintained by the Trustee or the Deposit Agent, as
the case may be: in the Acquisition Fund, an Account to be known as the "Series
2001-1 Acquisition Account" and an Account to be known as the "Series 2001-1
Capitalized Interest Account"; in the Administration Fund, an Account to be
known as the "Series 2001-1 Administration Account" and an Account to be known
as the "Series 2001-1 Cost of Issuance Account"; in the Reserve Fund, an Account
to be known as the "Series 2001-1 Reserve Account"; in the Interest Account, a
Subaccount to be known as the "Series 2001-1 Interest Subaccount"; in the
Principal Account, a Subaccount to be known as the "Series 2001-1 Principal
Subaccount"; in the Retirement Account, a Subaccount to be known as the "Series
2001-1 Retirement Subaccount"; in the Alternative Loan Guarantee Fund, an
Account to be known as the "Series 2001-1 Alternative Loan Guarantee Account";
and in the Surplus Account, a Subaccount to be known as the "Series 2001-1
Surplus Subaccount."

     All amounts transferred to the Acquisition Fund, the Administration Fund,
the Reserve Fund, the Interest Account, the Principal Account, the Retirement
Account, the Alternative Loan Guarantee Fund and the Surplus Account from any
other Fund or Account pursuant to the requirements of the Indenture with respect
to the Series 2001-1 Notes or the Student Loans Financed with the proceeds
thereof shall be deposited to the credit of the Series 2001-1 Acquisition
Account, the Series 2001-1 Administration Account, the Series 2001-1 Reserve
Account, the Series 2001-1 Interest Subaccount, the Series 2001-1 Principal
Subaccount, the Series 2001-1 Retirement Subaccount, the Series 2001-1
Alternative Loan Guarantee Account or the Series 2001-1 Surplus Subaccount,
respectively, and as appropriate.

     Except as heretofore provided in this Section 18, nothing herein shall be
deemed to prohibit (1) the Trustee from using Balances of any Account or
Subaccount established by this Section 18 to remedy deficiencies for which
Balances of the Fund or Account in which such Account or Subaccount is
established are subject to use under the Indenture, or (2) the application of
Balances of any Account or Subaccount established by this Section 18 for any

                                      -36-
<PAGE>

purpose for which Balances of the Fund or Account in which such Account or
Subaccount is established are authorized to be applied by the Indenture.

     When there shall be no Series 2001-1 Notes Outstanding, the Series 2001-1
Acquisition Account and the Series 2001-1 Capitalized Interest Account shall
each terminate and any Balance thereof at such time shall be used as other
Balances of the Acquisition Fund, and the Series 2001-1 Administration Account
and the Series 2001-1 Cost of Issuance Account shall each terminate and any
Balance thereof at such time shall be used as other Balances of the
Administration Fund. When there shall be no Series 2001-1 Notes Outstanding, the
Series 2001-1 Interest Account shall terminate and any Balance thereof at such
time shall be used as other Balances of the Interest Account, the Series 2001-1
Principal Account shall terminate and any Balance thereof at such time shall be
used as other Balances of the Principal Account, the Series 2001-1 Retirement
Account shall terminate and any Balance thereof at such time shall be used as
other Balances of the Retirement Account, the Series 2001-1 Reserve Account
shall terminate and any Balance thereof at such time shall be used as other
Balances of the Reserve Fund, the Series 2001-1 Alternative Loan Guarantee
Account shall terminate and any Balance thereof at such time shall be used as
other Balances of the Reserve Fund and the Series 2001-1 Surplus Subaccount
shall terminate and any Balance thereof at such time shall be used as other
Balances of the Surplus Account.

     Section 19. Series 2001-1 Capitalized Interest Account. A deposit shall be
made to the credit of the Series 2001-1 Capitalized Interest Account pursuant to
Section 15 of this Third Supplemental Indenture. Notwithstanding the provisions
of Section 4.2 of the Indenture, amounts in the Series 2001-1 Capitalized
Interest Account, the Series 1999-1 Capitalized Interest Account or the Series
2000-1 Capitalized Interest Account shall be transferred to the Series 2001-1
Interest Subaccount on any Monthly Payment Date to the extent necessary to
remedy any deficiency therein after any required transfers thereto from the
Revenue Fund and the Series 2001-1 Surplus Subaccount. The Corporation may, at
any time prior to November 25, 2001, by Corporation Order, direct that all or a
portion of the Balance in the Series 2001-1 Capitalized Interest Account be
transferred to the Series 2001-1 Acquisition Subaccount and thereafter applied
in the same manner as those amounts originally deposited to the credit of the
Series 2001-1 Acquisition Subaccount pursuant to Section 15 of this Third
Supplemental Indenture, provided (i) that the Corporation has certified in such
Corporation Order that, based on a Cash Flow Projection, any such amount is not
reasonably expected to be needed to remedy a deficiency in the Series 2001-1
Interest Subaccount as described above, and (ii) such transfer and application
will not result in the reduction or withdrawal of the outstanding rating
assigned by any Rating Agency to the Series 2001-1 Notes, as evidenced in
writing to the Trustee by each such Rating Agency. Any amounts remaining in the
Series 2001-1 Capitalized Interest Account as of July 1, 2003, shall be
transferred by the Trustee to the Series 2001-1 Retirement Account and
thereafter applied to the redemption of Series 2001-1 Notes pursuant to Section
16(C) hereof.

     Section 20. Purchase or Origination of Eligible Loans From Series 2001-1
Acquisition Account and Series 2001-1 Surplus Subaccount. The price paid to
purchase an Eligible Loan from the Balances in the Series 2001-1 Acquisition
Account (other than the Eligible Loans to be purchased pursuant to the Series
2001-1 Transfer Agreement, the

                                      -37-
<PAGE>

purchase price for which is set forth in such agreement) or the Series 2001-1
Surplus Subaccount shall not exceed 100% of the remaining unpaid principal
amount of such Eligible Loan, plus accrued Special Allowance Payments and
noncapitalized borrower interest thereon, if any, to the date of purchase,
reasonable transfer, origination and assignment fees, if applicable, and, in the
case of FFELP Loans only, a premium which would not cause the weighted average
of the premiums paid on all FFELP Loans Financed from the Series 2001-1
Acquisition Account and the Series 2001-1 Surplus Subaccount to exceed 1.75% (or
such greater premium the payment of which will not materially adversely affect
the Corporation's ability to pay Debt Service on the Outstanding Notes, Other
Indenture Obligations, Carry-Over Amounts (including accrued interest thereon)
with respect to Outstanding Notes, Administrative Expenses or Note Fees or to
make required transfers to the Indemnification Fund, as shown in a subsequent
Cash Flow Projection received by the Trustee, and which will not result in the
reduction or withdrawal of the outstanding rating assigned by any Rating Agency
to the Series 2001-1 Notes, as evidenced in writing to the Trustee by each such
Rating Agency), and as otherwise authorized by Section 4.2 of the Indenture.

     After the purchase of Eligible Loans pursuant to the Series 2001-1 Transfer
Agreement, any remaining amounts in the Series 2001-1 Acquisition Account shall
be applied to the purchase or origination of Eligible Loans in accordance with
the following restrictions:

          (1) No more than $3,000,000 aggregate Principal Balance of Alternative
     Loans may be so purchased or originated, of which no more than (a)
     $1,650,000 may be "credit ready" Alternative Loans, and (b) $450,000 may be
     Alternative Loans made with respect to students attending schools of less
     than four (4) years;

          (2) No more than $8,000,000 aggregate Principal Balance of
     Consolidation Loans may be so purchased or originated; and

          (3) All FFELP Loans so purchased must be from Lenders located in
     states in the midwestern portion of the United States;

provided that the foregoing restrictions may be exceeded if action will not
materially adversely affect the Corporation's ability to pay Debt Service on the
Outstanding Notes, Other Indenture Obligations, Carry-Over Amounts (including
accrued interest thereon) with respect to Outstanding Notes, Administrative
Expenses or Note Fees or to make required transfers to the Indemnification Fund,
as shown in a subsequent Cash Flow Projection received by the Trustee, and which
will not result in the reduction or withdrawal of the outstanding rating
assigned by any Rating Agency to the Series 2001-1 Notes, as evidenced in
writing to the Trustee by each such Rating Agency.

     The Corporation shall not purchase or originate any Financed Student Loans
which are subject to any interest rate reduction or other program that would
reduce the yield thereon (I) if such yield reduction (a) is more than 2.0% per
annum plus (provided there are no delinquencies in the first 24 months) return
of some or all of the origination fee in excess of $250, (b) may commence if any
of the first forty-eight (48) consecutive payments have not been received in a
timely fashion or (c) may continue if any payments are not received in a timely
fashion, or (II)

                                      -38-
<PAGE>

from Balances in the Series 2001-1 Acquisition Account and the Series 2001-1
Surplus Subaccount if, as a result of such purchase or origination, the
aggregate of the amounts applied from such Balances to the purchase or
origination of Student Loans subject to such programs would exceed 50% of the
aggregate of the amounts applied from such Balances to the purchase or
origination of all Student Loans, unless the Corporation delivers to the Trustee
(i) a Corporation Certificate certifying that, based on a Cash Flow Projection,
the purchase or origination of such Student Loan will not materially adversely
affect the Corporation's ability to pay Debt Service on the Outstanding Notes
and on Outstanding Other Obligations, to pay Carry-Over Amounts (including
accrued interest thereon) with respect to Outstanding Notes or to make required
deposits to the Indemnification Fund, and (ii) written confirmation from each
Rating Agency then rating the Series 2001-1 Notes that the purchase or
origination of such Student Loan will not result in a reduction or withdrawal of
the rating of the Series 2001-1 Notes; provided that the foregoing restrictions
shall not apply to the purchase or origination of any Student Loan subject to a
yield reduction program which the Corporation may, at its option, discontinue at
any time and which would not reduce the yield thereon by more than .25% per
annum.

     The Corporation shall not agree to, or permit any Servicer to agree to, any
discount or other reduction in the yield on any Student Loan Financed from
Balances in the Series 2001-1 Acquisition Account or the Series 2001-1 Surplus
Subaccount (other than any such reduction that existed at the time such Student
Loan was so Financed) if, as a result thereof, the yield on such Student Loan
would be reduced by more than .25% per annum, unless the Corporation delivers to
the Trustee (1) a Corporation Certificate certifying that, based on a Cash Flow
Projection, such reduction will not materially adversely affect the
Corporation's ability to pay Debt Service on the Outstanding Notes and on
Outstanding Other Obligations, to pay Carry-Over Amounts (including accrued
interest thereon) with respect to Outstanding Notes or to make required deposits
to the Indemnification Fund, and (2) written confirmation from each Rating
Agency then rating the Series 2001-1 Notes that such reduction will not result
in a reduction or withdrawal of the rating of the Series 2001-1 Notes.

     The Corporation shall not purchase or originate any Student Loan from the
Balance in the Series 2001-1 Surplus Subaccount:

          (A)(i) after August 31, 2002, or (ii) if such Student Loan is an
     Alternative Loan and the purchase or origination thereof would cause either
     (a) the aggregate of the principal balances of Alternative Loans purchased
     or originated from Balances in the Series 1999-1 Surplus Subaccount, the
     Series 2000-1 Surplus Subaccount and the Series 2001-1 Surplus Subaccount
     to exceed one-half of the aggregate of the principal balances of FFELP
     Loans purchased or originated from such Balances during the period from the
     Closing Date through August 31, 2002, or (b) the aggregate of the principal
     balances of "credit worthy" Alternative Loans purchased or originated from
     Balances in the Series 1999-1 Surplus Subaccount, the Series 2000-1 Surplus
     Subaccount and the Series 2001-1 Surplus Subaccount to be less than 45% of
     the aggregate of the principal balances of all Alternative Loans purchased
     or originated from such Balances during the period from the Closing Date
     through August 31, 2002, in any such case unless the Corporation delivers
     to the Trustee:

                                      -39-
<PAGE>

               (1) a Corporation Certificate certifying that, based on a Cash
          Flow Projection, the purchase or origination of such Student Loan will
          not materially adversely affect the Corporation's ability to pay Debt
          Service on the Outstanding Notes and on Outstanding Other Obligations,
          to pay Carry-Over Amounts (including accrued interest thereon) with
          respect to Outstanding Notes or to make required deposits to the
          Indemnification Fund, and

               (2) written confirmation from each Rating Agency then rating the
          Series 2001-1 Notes that the purchase or origination of such Student
          Loan will not result in a reduction or withdrawal of the rating of the
          Series 2001-1 Notes, or

          (B) if such Student Loan is a FFELP Loan from a Lender located in a
     state outside the midwestern portion of the United States, unless the
     Corporation delivers to the Trustee written confirmation from each Rating
     Agency then rating the Series 2001-1 Notes that the purchase of such
     Student Loan will not result in a reduction or withdrawal of the rating of
     the Series 2001-1 Notes.

     The Corporation shall not purchase or originate (A) any FFELP Loan from the
Balances in the Series 2001-1 Acquisition Account or the Series 2001-1 Surplus
Subaccount if, as a result of an amendment to the Higher Education Act after the
date of this Third Supplemental Indenture (other than an amendment contained in
a bill currently pending in Congress and subsequently enacted into law), such
FFELP Loan bears a rate of interest that is lower than the rate of interest such
FFELP Loan would have borne under the Higher Education Act as it currently
exists, or (B) any Consolidation Loan from the Balances in the Series 2001-1
Acquisition Account or the Series 2001-1 Surplus Subaccount that has a final
payment date beyond November 30, 2035, unless the Corporation delivers to the
Trustee (1) a Corporation Certificate certifying that, based on a Cash Flow
Projection, the purchase or origination of such FFELP Loan or Consolidation Loan
will not materially adversely affect the Corporation's ability to pay Debt
Service on the Outstanding Notes and on Outstanding Other Obligations, to pay
Carry-Over Amounts (including accrued interest thereon) with respect to
Outstanding Notes or to make required deposits to the Indemnification Fund, and
(2) written confirmation from each Rating Agency then rating the Series 2001-1
Notes that the purchase or origination of such FFELP Loan or Consolidation Loan
will not result in a reduction or withdrawal of the rating of the Series 2001-1
Notes.

     If the Corporation purchases any Student Loans from Balances in the Series
2001-1 Surplus Subaccount that do not constitute Eligible Loans, it shall give
written notice of such purchase to each Rating Agency then rating the Series
2001-1 Notes.

     Any Student Loans Financed from Balances in the Series 2001-1 Surplus
Subaccount prior to November 25, 2001, and constituting Eligible Loans shall,
upon the financing thereof, be credited to, and included in the Balance of, the
Series 2001-1 Acquisition Account, and shall not be deemed to have been Financed
with moneys in the Surplus Account but to have been Financed with moneys in the
Acquisition Fund.

     Section 21. Limitation on Costs of Issuance, Administrative Expenses and
Note Fees. The Corporation covenants and agrees that the Costs of Issuance,
Administrative

                                      -40-
<PAGE>

Expenses and Note Fees to be paid, or reimbursed to the Corporation, from the
Administration Fund shall not exceed the aggregate amount thereof specified in
the Closing Cash Flow Projection, unless the Corporation delivers to the Trustee
(i) a Corporation Certificate certifying that, based on a Cash Flow Projection,
the payment or reimbursement of a greater amount of Costs of Issuance,
Administrative Expenses and Note Fees from the Administration Fund will not
materially adversely affect the Corporation's ability to pay Debt Service on the
Outstanding Notes and on Outstanding Other Obligations, to pay Carry-Over
Amounts (including accrued interest thereon) with respect to Outstanding Notes
or to make required deposits to the Indemnification Fund and (ii) written
confirmation from each of the Rating Agencies then rating the Series 2001-1
Notes to the effect that payment or reimbursement of such additional Costs of
Issuance, Administrative Expenses or Note Fees will not result in a reduction or
withdrawal of the rating of the Series 2001-1 Notes.

     Section 22. Proceeds of Sales of Certain Student Loans To Be Deposited in
the Acquisition Fund. The Trustee shall deposit in the Acquisition Fund the
proceeds of the resale to a Lender of any Student Loans Financed with proceeds
of the Series 2001-1 Notes pursuant to such Lender's repurchase obligation under
the applicable Student Loan Purchase Agreement upon receipt thereof from the
Corporation, to the extent directed in a Corporation Order and received by the
Trustee prior to November 25, 2001. Any such proceeds received by the Trustee
after such date shall be deposited in the Revenue Fund.

     Section 23. Certain Findings, Determinations and Designations. The
Corporation hereby finds and determines as follows:

          (A) The Original Indenture, except as provided in the First
     Supplemental Indenture and the Second Supplemental Indenture, has not been
     amended, supplemented or repealed since the execution thereof. This Third
     Supplemental Indenture amends and supplements the Indenture, constitutes
     and is a "Supplemental Indenture" within the meaning of such term as
     defined and used in the Indenture and is executed under and pursuant to the
     Indenture.

          (B) No Note, other than the Series 1999-1 Notes and the Series 2000-1
     Notes, have heretofore been issued under the Indenture. The Series 2001-1A
     Notes and the Series 2001-1B Notes constitute, and are hereby designated
     as, "Class A Notes" within the meaning of the term as defined and used in
     the Indenture, and the Series 2001-1C Notes constitute, and are hereby
     designated as, "Class B Notes" within the meaning of the term as defined
     and used in the Indenture.

          (C) Upon receipt of the proceeds of the sale of the Series 2001-1
     Notes: (1) the Trust Estate pledged under the Indenture will not be
     encumbered by any lien or charge thereon or pledge thereof, other than the
     lien and charge thereon and pledge thereof created by the Indenture for the
     payment and security of the Notes; and (2) there will not be outstanding
     any bonds, notes or other evidences of indebtedness payable from and
     secured by a lien on or pledge or charge upon the Trust Estate pledged
     under the Indenture other than the Series 2001-1 Notes.

                                      -41-
<PAGE>

          (D) There does not exist an "Event of Default," within the meaning of
     such term as defined in the Indenture, which is continuing, nor does there
     exist any condition which, after the passage of time, would constitute such
     an "Event of Default."

     Section 24. Amendment of Granting Clause First of the Indenture. Granting
Clause First of the Indenture is hereby amended as follows:

                              GRANTING CLAUSE FIRST

          All rights, title, interest and privileges of the Corporation (1) with
     respect to Financed Student Loans, in, to and under the Federal
     Reimbursement Contracts, any Servicing Agreement, the Student Loan Purchase
     Agreements (including, but not limited to, those agreements described in
     Exhibits H-1 and H-2 to the First Supplemental Indenture, in Exhibits
     H-1 and H-2 to the Second Supplemental Indenture and in Exhibits H-1 and
     H-2 to the Third Supplemental Indenture), the Transfer Agreements, any
     Non-Delivery Fees and the Guarantee Agreements, (2) in, to and under all
     Financed Student Loans (including the evidences of indebtedness thereof and
     related documentation), the proceeds of the sale of the Notes (until
     expended for the purpose for which the Notes were issued) and the revenues,
     moneys, evidences of indebtedness , instruments, securities and other
     financial assets (including any earnings thereon) in and payable into the
     Acquisition Fund, Note Fund, Revenue Fund, Reserve Fund, Administration
     Fund, Indemnification Fund, Alternative Loan Guarantee Fund and Surplus
     Fund, and any deposit accounts or securities accounts to which such
     Financed Student Loans, proceeds, revenues, moneys, evidences of
     indebtedness, instruments, securities and other financial assets may be
     credited, including, without limitation, the Acquisition Fund, Note Fund,
     Revenue Fund, Reserve Fund, Administration Fund, Indemnification Fund,
     Alternative Loan Guarantee Fund and Surplus Fund and any Accounts or
     Subaccounts therein, in the manner and subject to the prior applications
     provided in Article Four hereof, and (3) in, to and under any Credit
     Enhancement Facility, any Demand Purchase Agreement, any Swap Agreement,
     any Swap Counterparty Guarantee, any Depositary Agreement, any Remarketing
     Agreement, any Auction Agent Agreement and any Broker-Dealer Agreement, all
     as hereinbefore and hereinafter defined, including any contract, any
     payment intangible, any general intangible or any evidence of indebtedness
     or other rights of the Corporation to receive any of the same whether now
     existing or hereafter coming into existence, and whether now or hereafter
     acquired;

     Section 25. Amendment of Section 5.04 of the Indenture. Subject to
subsection (B) below, Section 5.04 of the Indenture is hereby amended as
follows:

          Section 5.04. Trustee to Hold Alternative Loan Notes To the extent
     necessary, based upon an Opinion of Counsel, to perfect the security
     interest granted in each Financed Student Loan under this Indenture, the
     Trustee shall hold the original of each promissory note delivered in
     connection with the acquisition of such Financed Alternative Loan. The
     Trustee shall not release custody of any such promissory note except upon
     the sale thereof or to the Servicer as necessary in connection with the
     servicing of the related Financed Alternative Loan under the Servicing
     Agreement. Any

                                      -42-
<PAGE>

     such promissory note so released to the custody of the Servicer shall,
     except in the case of the liquidation thereof, be promptly returned to the
     Trustee. The Trustee shall maintain a record of all such promissory notes
     held by the Trustee and any releases thereof to the custody of the
     Servicer.

          (B) The amendments to Section 5.04 of the Indenture contained in
     subsection (A) of this Section 25 shall not take effect until such time as
     such amendments have either been consented to by the requisite percentage
     of Noteholders under Section 8.2 of the Indenture or met the requirements
     of Section 8.1 of the Indenture or a combination thereof.

     Section 26. Consent of Series 2001-1 Noteholders to Amendments to
Indenture. Each Holder of Series 2001-1 Notes, by his acceptance thereof, shall
be deemed to have consented to each of the amendments to the Indenture contained
in Sections 24 and 25 of this Third Supplemental Indenture.

     Section 27. Governing Law. This Third Supplemental Indenture shall be
governed by and be construed in accordance with the laws of the State without
giving effect to the conflicts-of-laws principles thereof; provided that those
provisions of this Third Supplemental Indenture relating to the rights and
duties of the Auction Agent shall be governed by and be construed in accordance
with the laws of the State of New York.

     Section 28. Section Headings; Table of Contents. The headings or titles of
the several sections hereof shall be solely for convenience of reference and
shall not affect the meaning or construction, interpretation or effect of this
Third Supplemental Indenture.

     Section 29. Severability. If any provision of this Third Supplemental
Indenture shall be held or deemed to be or shall, in fact, be inoperative or
unenforceable as applied in any particular case in any jurisdiction or
jurisdictions or in all jurisdictions or in all cases because it conflicts with
any provisions of any constitution or statute or rule of public policy, or for
any other reason, such circumstances shall not have the effect of rendering the
provision in question inoperative or unenforceable in any other case or
circumstance, or of rendering any other provision or provisions herein contained
invalid, inoperative or unenforceable to any extent whatever.

     The invalidity of any one or more phrases, sentences, clauses or paragraphs
in this Third Supplemental Indenture contained shall not affect the remaining
portions of this Third Supplemental Indenture or part thereof.

     Section 30. Counterparts. This Third Supplemental Indenture 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.

     Section 31. Effect of Third Supplemental Indenture. Upon the execution and
delivery of this Third Supplemental Indenture, the Indenture shall be amended
and supplemented in accordance herewith, and this Third Supplemental Indenture
shall form a part of the Indenture for all purposes and every Holder of Notes
hereafter authenticated and delivered and Other Beneficiary under the Indenture
shall be bound hereby.

                                      -43-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental
Indenture to be duly executed all as of the day and year first above written.

                                       EDUCATION LOANS INCORPORATED

                                       By
                                           -------------------------------------
                                                    President

Attest:

-----------------------------
Secretary

                                       U.S. BANK NATIONAL ASSOCIATION,
                                       as Trustee

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

Attest:

-----------------------------
Trust Officer

                                      -44-
<PAGE>

                                    EXHIBIT A
                                    ---------

                       FORM OF SERIES 2001-1 SENIOR NOTES
                       ----------------------------------

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

                          EDUCATION LOANS INCORPORATED

                         STUDENT LOAN ASSET-BACKED NOTE
                            SENIOR SERIES 2001-1A [B]
                                     CLASS A

No. R_____                                                             $________

          Stated            Date of Original         Interest
       Maturity Date              Issue                Rate            CUSIP
       -------------              -----                ----            -----

     December 1, 2035         July 30, 2001          Variable         ______

REGISTERED HOLDER:         CEDE & CO.

PRINCIPAL AMOUNT:

     FOR VALUE RECEIVED, EDUCATION LOANS INCORPORATED, a corporation organized
under the laws of the State of Delaware (the "Corporation," which term includes
any successor corporation under the Indenture hereinafter referred to),
acknowledges itself indebted and hereby promises to pay to the registered holder
specified above, or registered assigns (the "Registered Holder"), but solely
from the revenues and receipts hereinafter specified and not otherwise, the
Principal Amount specified above on the Stated Maturity Date specified above
(subject to the right of prior redemption hereinafter mentioned), upon
presentation and surrender of this Note at the Principal Office of the Trustee
(as hereinafter defined), as Paying Agent for the Series 2001-1 Notes (as
hereinafter defined), or a duly appointed successor Paying Agent, and to pay
interest on said Principal Amount, but solely from the revenues and receipts
hereinafter specified and not otherwise, to the Registered Holder hereof from
the date hereof until the payment of said Principal Amount has been made or duly
provided for, payable on each Interest Payment Date and at Maturity, at the
Series 2001-1 Note Interest Rate (as hereinafter

                                      A-1
<PAGE>

described), and at the same rate per annum (to the extent that the payment of
such interest shall be legally enforceable) on overdue installments of interest.
Payment of interest on this Note on each regularly scheduled Interest Payment
Date shall be made by check or draft drawn upon the Paying Agent and mailed to
the person who is the Registered Holder hereof as of 5:00 p.m. in the city in
which the Principal Office of the Note Registrar is located on the applicable
Regular Record Date at the address of such Registered Holder as it appears on
the Note Register maintained by the Note Registrar, or, if the Registered Holder
of this Note is the Registered Holder of Series 2001-1 Notes in the aggregate
principal amount of $1,000,000 or more, at the direction of such Registered
Holder received by the Paying Agent by 5:00 p.m. in the city in which the
Principal Office of the Paying Agent is located on the last Business Day
preceding the applicable Regular Record Date, by electronic transfer by the
Paying Agent in immediately available funds to an account designated by such
Registered Holder. In addition, premium, if any, and interest on this Note are
payable at the Maturity hereof in the same manner as the principal hereof,
unless the date of such maturity is a regularly scheduled Interest Payment Date,
in which event interest is payable in the manner set forth in the preceding
sentence. Any interest not so timely paid or duly provided for shall cease to be
payable to the person who is the Registered Holder hereof at the close of
business on the Regular Record Date and shall be payable to the person who is
the Registered Holder hereof at the close of business on a special record date
for the payment of any such defaulted interest. Such special record date shall
be fixed by the Trustee whenever moneys become available for payment of the
defaulted interest, and notice of the special record date shall be given to the
Registered Holder hereof not less than ten days prior thereto by first-class
mail to such Registered Holder as shown on the Note Register on a date selected
by the Trustee, stating the date of the special record date and the date fixed
for the payment of such defaulted interest. The principal of, premium, if any,
and interest on this Note are payable in lawful money of the United States of
America.

     This Note is one of an authorized issue of Notes (the "Notes"), issued and
to be issued by the Corporation in one or more series pursuant to an Indenture
of Trust, dated as of December 1, 1999 (as supplemented and amended, the
"Indenture"), as amended and supplemented by a First Supplemental Indenture of
Trust, dated as of December 1, 1999, a Second Supplemental Indenture of Trust,
dated as of December 1, 2000, and a Third Supplemental Indenture of Trust, dated
as of July 1, 2001 (the "Third Supplemental Indenture"), each between the
Corporation and U.S. Bank National Association, in Minneapolis, Minnesota, as
Trustee (the "Trustee," which term includes any successor trustee under the
Indenture). As provided in the Indenture, the Notes are issuable in series which
may vary as in the Indenture provided or permitted. This Note is one of a series
issued in an aggregate principal amount of $79,000,000 (the "Series 2001-1A [B]
Notes"). The Series 2001-1A [B] Notes are issued simultaneously with one other
series of Class A Notes issued in the aggregate principal amount of $79,000,000
(the "Series 2001-1B [A] Notes" and, together with the Series 2001-1A [B] Notes,
collectively referred to herein as the "Series 2001-1 Senior Notes"), and a
series of Class B Notes issued in the aggregate principal amount of $23,800,000
(the "Series 2001-1C Notes" and, together with the Series 2001-1 Senior Notes,
collectively referred to herein as the "Series 2001-1 Notes"). The proceeds of
the Series 2001-1 Notes will be used by the Corporation to (a) acquire student
loan notes incurred under the Higher Education Act and under certain Alternative
Loan Programs, (b) fund the Reserve Fund, (c) pay a portion of the interest
coming due on the Series 2001-1 Notes and (d) pay Costs of Issuance of the
Series 2001-1 Notes. The Series 2001-1 Senior Notes are being issued on a
parity, and are equally and ratably secured under the Indenture, with the
Corporation's Student

                                      A-2
<PAGE>

Loan Asset-Backed Notes, Senior Series 1999-A and 1999-B, issued under the
Indenture as Class A Notes in the original aggregate principal amount of
$117,000,000, and the Corporation's Student Loan Asset-Backed Notes, Senior
Series 2000-A and 2000-B, issued under the Indenture as Class A Notes in the
original aggregate principal amount of $108,200,000, and the Series 2001-1C
Notes are being issued on a parity, and are equally and ratably secured under
the Indenture, with the Corporation's Student Loan Asset-Backed Notes,
Subordinate Series 1999-1C, issued under the Indenture as Class B Notes in the
original principal amount of $9,300,000, and the Corporation's Student Loan
Asset-Backed Notes, Subordinate Series 2000-1C, issued under the Indenture as
Class B Notes in the original principal amount of $22,000,000 .

     Reference is hereby made to the Indenture, copies of which are on file in
the principal corporate trust office of the Trustee, and to all of the
provisions of which any Registered Holder 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 various classes of Notes and Other Obligations
secured thereunder; the student loan acquisition program being financed by the
issuance of the Notes; the revenues and other moneys pledged to the payment of
the principal of, premium, if any, and interest on the Notes and the Other
Obligations; the nature and extent and manner of enforcement of the pledge; the
conditions upon which Notes may be issued or Other Obligations may be incurred
by the Corporation thereunder, payable from such revenues and other moneys
thereunder as Senior Obligations, Subordinate Obligations or Class C Notes; the
conditions upon which the Indenture may be amended or supplemented with or
without the consent of the Holders of the Notes; the rights and remedies of the
Registered Holder hereof with respect hereto and thereto, including the
limitations upon the right of a Registered Holder 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 Corporation and the 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 maturity or
redemption of this Note, and this Note thereafter no longer be secured by the
Indenture, or be deemed to be Outstanding thereunder; and for the other terms
and provisions thereof. Terms used with initial capital letters but not defined
in this Note have the respective meanings given such terms in the Indenture. The
Series 2001-1 Senior Notes are being issued as, and will constitute, Class A
Notes under the Indenture. The Series 2001-1C Notes are being issued as, and
will constitute, Class B Notes under the Indenture.

     The Notes and Other Obligations are limited obligations of the Corporation,
payable solely from the revenues and assets of the Corporation pledged therefor
under the Indenture, including certain notes evidencing Student Loans and the
proceeds of the Corporation's bonds, notes or other evidences of indebtedness,
if any, issued with respect to the Notes.

     Interest payable on this Note shall be computed on the basis of actual days
elapsed and accrue daily from the date hereof (on the basis of a 360-day year),
and is payable on each regularly scheduled Interest Payment Date prior to the
Maturity of this Note and at the Maturity of this Note. The interest payable on
each Interest Payment Date for this Note shall be that interest which has
accrued through the last day of the last complete Interest Period immediately
preceding the Interest Payment Date or, in the case of the Maturity of this
Note, the last day preceding the date of such Maturity. The Series 2001-1 Note
Interest Rate shall be effective as of and on the first day (whether or not a
Business Day) of the applicable Interest Period and be in effect thereafter
through the end of such Interest Period.

                                      A-3
<PAGE>

     The unpaid principal amount hereof from time to time outstanding shall bear
interest at a Series 2001-1 Note Auction Rate, as described below, payable on
each Interest Payment Date and at the Maturity hereof, such interest to accrue
from the later of the date hereof or the date through which interest has been
paid or duly provided for.

     During the Initial Interest Period, this Note shall bear interest at the
Series 2001-1 Note Initial Interest Rate. Thereafter until an Auction Period
Adjustment, if any, this Note shall bear interest at a Series 2001-1 Note
Auction Rate based on an Auction Period that shall generally consist of 28 days,
all as determined in the Third Supplemental Indenture.

     The Series 2001-1 Note Auction Rate to be borne by this Note after the
Initial Interest Period for each Auction Period until an Auction Period
Adjustment, if any, shall be the lesser of (i) the Net Loan Rate in effect for
such Auction Period, (ii) the Auction Rate determined in accordance with the
applicable provisions of the Third Supplemental Indenture and (iii) the Series
2001-1 Note Auction Rate Limitation.

     In no event shall the Series 2001-1 Note Auction Rate on this Note exceed
the Series 2001-1 Note Auction Rate Limitation.

     The Interest Period, including, without limitation, an Auction Period, the
applicable Series 2001-1 Note Auction Rate, the method of determining the
applicable Series 2001-1 Note Auction Rate on each of the Series 2001-1A [B]
Notes and the Auction Procedures related thereto, including, without limitation,
required notices thereof to the Holders or Existing Holders of the Series 2001-1
Senior Notes, an Auction Period Adjustment, a change in the Auction Date and the
Interest Payment Dates will be determined in accordance with the terms,
conditions and provisions of the Third Supplemental Indenture and the Auction
Agent Agreement, to which terms, conditions and provisions specific reference is
hereby made, and all of which terms, conditions and provisions are hereby
specifically incorporated herein by reference.

     If the Auction Rate for the Series 2001-1A [B] Notes is greater than the
Net Loan Rate, then the Series 2001-1 Note Auction Rate applicable to the Series
2001-1 Notes for that Interest Period will be the Net Loan Rate. If the Series
2001-1 Note Auction Rate applicable to the Series 2001-1A [B] Notes for any
Interest Period is the Net Loan Rate, the Trustee shall determine the Carry-Over
Amount, if any, with respect to the Series 2001-1A [B] Notes for such Interest
Period. Such Carry-Over Amount shall bear interest calculated at a rate equal to
One-Month LIBOR from the Interest Payment Date for the Interest Period with
respect to which such Carry-Over Amount was calculated until paid. For purposes
of this Note, any reference to "principal" or "interest" herein shall not
include within the meaning of such words Carry-Over Amount or any interest
accrued on any such Carry-Over Amount. Such Carry-Over Amount shall be
separately calculated for each Series 2001-1A [B] Note by the Trustee during
such Interest Period in sufficient time for the Trustee to give notice to each
Holder of such Carry-Over Amount as required in the next succeeding sentence. On
the Interest Payment Date for an Interest Period with respect to which such
Carry-Over Amount has been calculated by the Trustee, the Trustee shall give
written notice to each Holder of the Carry-Over Amount applicable to each
Holder's Series 2001-1A [B] Note, which written notice may accompany the payment
of interest by check made to each such Holder on such Interest Payment Date or
otherwise shall be mailed on such Interest Payment Date by first class mail,
postage prepaid, to

                                      A-4
<PAGE>

each such Holder at such Holder's address as it appears on the registration
books maintained by the Note Registrar. Such notice shall state, in addition to
such Carry-Over Amount, that, unless and until a Series 2001-1A [B] Note has
been redeemed or has been deemed no longer Outstanding under the Third
Supplemental Indenture (after which no Carry-Over Amount shall be paid with
respect to a Series 2001-1A [B] Note), (i) the Carry-Over Amount (and interest
accrued thereon) shall be paid by the Trustee on such Series 2001-1A [B] Note on
the first occurring Interest Payment Date for a subsequent Interest Period if
and to the extent that (l) the Eligible Carry-Over Make-Up Amount with respect
to such Interest Period is greater than zero, and (2) moneys are available
pursuant to the terms of the Third Supplemental Indenture to pay such Carry-Over
Amount (and interest accrued thereon), and (ii) interest shall accrue on the
Carry-Over Amount at a per annum rate equal to One-Month LIBOR until such
Carry-Over Amount is paid in full or is cancelled.

     The Carry-Over Amount for the Series 2001-1A [B] Notes shall be paid by the
Trustee on Outstanding Series 2001-1A [B] Notes on the first occurring Interest
Payment Date for a subsequent Interest Period if and to the extent that (i) the
Eligible Carry-Over Make-Up Amount with respect to such Interest Period is
greater than zero, and (ii) moneys in the Surplus Account are available on such
Interest Payment Date for transfer to the Interest Account for such purpose in
accordance with the applicable provisions of the Indenture, after taking into
account all other amounts payable from the Surplus Fund on such Interest Payment
Date. Any Carry-Over Amount (and any interest accrued thereon) which is unpaid
as of an Interest Payment Date with respect to any Series 2001-1A [B] Note,
which Series 2001-1A [B] Note is to be redeemed or deemed no longer Outstanding
under the Third Supplemental Indenture on such Interest Payment Date, shall be
paid to the Holder thereof on such Interest Payment Date to the extent that
moneys are available therefor in accordance with the provisions of the preceding
clause (ii); provided, however, that any Carry-Over Amount (and any interest
accrued thereon) which is not so paid on such Interest Payment Date shall be
cancelled with respect to such Series 2001-1A [B] Note on such Interest Payment
Date and shall not be paid on any succeeding Interest Payment Date. To the
extent that any portion of the 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 by the
Trustee on the next occurring Interest Payment Date or Dates, as necessary, for
a subsequent Interest Period or Periods, if and to the extent that the
conditions in the first sentence of this paragraph are satisfied. On any
Interest Payment Date on which the Trustee pays less than all of the Carry-Over
Amount (and any interest accrued thereon) with respect to a Series 2001-1A [B]
Note, the Trustee shall give written notice in the manner set forth in the
immediately preceding paragraph to the Holder of such Series 2001-1A [B] Note of
the Carry-Over Amount remaining unpaid on such Series 2001-1A [B] Note.

     The Interest Payment Date in such subsequent Interest Period on which such
Carry-Over Amount for the Series 2001-1A [B] Notes shall be paid shall be
determined by the Trustee in accordance with the provisions of the immediately
preceding paragraph, and the Trustee shall make payment of the Carry-Over Amount
in the same manner as, and from the same Account from which, it pays interest on
the Series 2001-1A [B] Notes on an Interest Payment Date.

                                      A-5
<PAGE>

     By purchasing Series 2001-1A [B] Notes, whether in an Auction or otherwise,
each purchaser of the Series 2001-1A [B] Notes, or its Broker-Dealer, must agree
and shall be deemed by such purchase to have agreed (i) to participate in
Auctions on the terms described in the Third Supplemental Indenture, (ii) to
have its beneficial ownership of the Series 2001-1A [B] 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 (iii) 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 Series 2001-1A [B] Notes is maintained in Book-Entry Form by the
Securities Depository, an Existing Holder may sell, transfer or otherwise
dispose of Series 2001-1A [B] Notes only pursuant to a Bid or Sell Order placed
in an Auction or otherwise sell, transfer or dispose of Series 2001-1A [B] Notes
through a Broker-Dealer, provided that, in the case of all transfers other than
pursuant to Auctions, such Existing Holder, its Broker-Dealer or its Participant
advises the Auction Agent of such transfer.

     The determination of a Series 2001-1 Note Interest Rate by the Auction
Agent or any other authorized Person pursuant to the provisions of the Third
Supplemental Indenture shall be conclusive and binding on the Holders of the
Series 2001-1A [B] Notes to which such Series 2001-1 Note Interest Rate applies,
and the Corporation and the Trustee may rely thereon for all purposes.

     Notwithstanding any provision of this Note to the contrary, in no event
shall the cumulative amount of interest paid or payable on this Note (including
interest calculated as provided herein, plus any other amounts that constitute
interest on this Note under applicable law, which are contracted for, charged,
reserved, taken or received pursuant to this Note or related documents)
calculated from the date of issuance of this Note through any subsequent day
during the term of this Note or otherwise prior to payment in full of this Note
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 this
Note or related documents or otherwise contracted for, charged, reserved, taken
or received in connection with this Note, or if the redemption or acceleration
of the maturity of this Note results in payment to or receipt by the Registered
Holder or any former Registered Holder hereof of any interest in excess of that
permitted by applicable law, then notwithstanding any provision of this Note or
related documents to the contrary all excess amounts theretofore paid or
received with respect to this Note shall be credited on the principal balance of
this Note (or, if this Note has been paid or would thereby be paid in full,
refunded by the recipient thereof), and the provisions of this Note and related
documents shall immediately be deemed reformed and the amounts thereafter
collectible hereunder and thereunder reduced, 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 this
Note and under the related documents.

     Subject to compliance with the provisions of the Indenture relating to
certain asset requirements, Outstanding Series 2001-1 Notes shall be redeemed,
in part, on the first regularly scheduled Interest Payment Date occurring after
November 25, 2001 for which notice can be given in accordance with the
requirements of the Third Supplemental Indenture, at a Redemption Price equal to
100% of the principal amount of Series 2001-1 Notes so redeemed, from proceeds
of the Series 2001-1 Notes constituting a portion of the Balance of the
Acquisition Fund that have not been used to acquire Eligible Loans and from that
portion of the Reserve Fund which, if

                                      A-6
<PAGE>

left in the Reserve Fund upon such redemption, would cause the Balance in the
Reserve Fund to exceed the Reserve Fund Requirement, calculated giving effect to
such redemption.

     Subject to compliance with the provisions of the Indenture relating to
certain asset requirements, Outstanding Series 2001-1A [B] Notes shall be
redeemed on any regularly scheduled Interest Payment Date, in whole or in part,
at a Redemption Price equal to 100% of the principal amount thereof to be
redeemed, from that portion of the balance of the Series 2001-1 Surplus
Subaccount that has been on deposit therein for at least 12 months, has not been
used to acquire Student Loans and as to which the Corporation has failed to
certify to the Trustee is necessary to pay debt service on the Outstanding Notes
or on Outstanding Other Obligations, Carry-Over Amounts, including accrued
interest thereon, with respect to Outstanding Notes, Administrative Expenses or
Note Fees or to make required deposits to the Indemnification Fund.

     Subject to compliance with the provisions of the Indenture relating to
certain asset requirements and certain other requirements, Outstanding Series
2001-1A [B] Notes may, at the option of the Corporation, be redeemed on any
regularly scheduled Interest Payment Date, in whole or in part, at a Redemption
Price equal to 100% of the principal amount thereof to be redeemed, from amounts
credited to the Retirement Account for such purpose.

     If not all Series 2001-1 Notes are to be redeemed, the particular Series
2001-1 Notes to be redeemed are to be selected as provided in the Indenture.

     Notice of redemption shall be given by first-class mail mailed at least 15
days before the Redemption Date to each Holder of Series 2001-1A [B] Notes to be
redeemed at his last address appearing on the Note Register; but no defect in or
failure to give such notice of redemption shall affect the validity of
proceedings for redemption of any Series 2001-1A [B] Notes not affected by such
defect or failure. All Series 2001-1A [B] Notes so called for redemption will
cease to bear interest on such Redemption Date, provided funds for their
redemption have been duly deposited, and, except for the purpose of payment,
shall no longer be protected by the Indenture and shall not be deemed
Outstanding thereunder.

     It is provided in the Indenture that Series 2001-1A [B] Notes of a
denomination larger than $50,000 may be redeemed in part ($50,000 or an integral
multiple thereof) and that upon any partial redemption of any such Series
2001-1A [B] Note the same shall be surrendered in exchange for one or more new
Notes of the same series in authorized form for the unredeemed portion of
principal.

     If provision is made for the payment of principal of, premium, if any, and
interest on this Note in accordance with the Indenture, this Note shall no
longer be deemed Outstanding under the Indenture, shall cease to be entitled to
the benefits of the Indenture and shall thereafter be payable solely from the
funds provided for such payment.

     If an Event of Default shall occur, the principal of all the Outstanding
Notes may and, under certain circumstances, shall be declared due and payable in
the manner and with the effect provided in the Indenture.

                                      A-7
<PAGE>

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Corporation and the rights of the Holders of the Notes and Other Beneficiaries
under the Indenture at any time by the Corporation with, among other things, the
consent of the Holders of two-thirds of the aggregate principal amount of Class
A Notes at the time Outstanding, if affected thereby, and the consent of the
Holders of two-thirds of the aggregate principal amount of Class B Notes at the
time Outstanding, if affected thereby. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount of
the Class A Notes at the time Outstanding or Other Senior Beneficiaries or, if
no Senior Obligations are Outstanding, the Holders of specified percentages in
aggregate principal amount of the Class B Notes at the time Outstanding or Other
Subordinate Beneficiaries, on behalf of the Holders of all the Notes, to waive
certain past defaults under the Indenture and their consequences. Any such
consent or waiver shall be conclusive and binding upon the Registered Holder of
this Note and upon all future Registered Holders hereof and of any Note issued
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Note.

     This Note is transferable by the Registered Holder hereof upon surrender of
this Note for transfer at the Principal Office of the Note Registrar (which
shall be the Trustee unless and until an Authenticating Agent becomes the Note
Registrar under the Indenture) or at the Principal Office of a duly appointed
Authenticating Agent (the "Authenticating Agent," which term includes any
successor Authenticating Agent under the Indenture), duly endorsed or
accompanied by a written instrument of transfer in form satisfactory to the Note
Registrar or such Authenticating Agent, as the case may be, and executed by the
Registered Holder hereof or his attorney duly authorized in writing, with
signature guarantees satisfactory to the Note Registrar or such Authenticating
Agent, as the case may be. Thereupon the Corporation shall execute and the
Trustee or the Authenticating Agent, as the case may be, shall authenticate and
deliver, in exchange for this Note, one or more new fully registered Notes in
the name of the transferee, of an authorized denomination, in aggregate
principal amount equal to the principal amount of this Note, of the same series
and bearing interest at the same rate. This Note may also be exchanged for one
or more other Notes of the same series upon surrender hereof at the Principal
Office of the Note Registrar or the Principal Office of an Authenticating Agent.
No Authenticating Agent will be initially appointed with respect to the Series
2001-1A [B] Notes. Notwithstanding the foregoing provisions of this paragraph,
no Series 2001-1A [B] Note shall be required to be transferred, (i) during a
period beginning at the opening of business fifteen days before any selection of
Series 2001-1A [B] Notes for redemption and ending at the close of business on
the day of such selection, or (ii) if such Series 2001-1A [B] Note has been
selected for redemption in whole or in part.

     The Corporation may require payment by the Registered Holder hereof of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of this Note, other than certain
exchanges specifically exempted under the Indenture and not involving any
transfer.

     The Corporation, the Trustee, each Paying Agent, any Authenticating Agent,
the Note Registrar and any other agent of the Corporation may treat the Person
in whose name this Note is registered on the Note Register as the absolute owner
hereof for all purposes, whether or not this

                                      A-8
<PAGE>

Note is overdue, and neither the Corporation, the Trustee, any Paying Agent, any
Authenticating Agent, the Note Registrar nor any other such agent shall be
affected by notice to the contrary.

     IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND DECLARED that all acts,
conditions and things required to have happened, to exist and to have been
performed precedent to and in the issuance of this Note have happened, do exist,
and have been performed in regular and due time, form and manner as so required.

     This Note shall not be valid or become obligatory for any purpose or be
entitled to any security or benefit under the Indenture until the Certificate of
Authentication hereon shall have been signed by the Trustee or by the
Authenticating Agent by the manual signature of one of its authorized
representatives.

                                      A-9
<PAGE>

     IN WITNESS WHEREOF, the Corporation has caused this Note to be executed in
its name by the manual signatures of its President and Secretary.

Dated: ___________________________     EDUCATION LOANS INCORPORATED

                                       -----------------------------------------
                                                       President

                                       -----------------------------------------
                                                       Secretary

                                   ----------

                          CERTIFICATE OF AUTHENTICATION

     This Note is one of the Notes of the series designated therein and issued
under the provisions of the within-mentioned Indenture.

                                       U.S. BANK NATIONAL ASSOCIATION,
                                       as Trustee

                                       By
                                           -------------------------------------
                                                    Authorized Representative

                                      A-10
<PAGE>

                                   ----------

                                   ASSIGNMENT

     FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
_____________________ the within Note and irrevocably appoints
______________________, attorney-in-fact, to transfer the within Note on the
books kept for registration thereof, with full power of substitution in the
premises.

Dated  ___________________________

PLEASE INSERT SOCIAL SECURITY           ________________________________________
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE                             NOTICE:  The signature to this
                                        assignment must correspond with the
                                        name as it appears upon the face of the
___________________________________     within Note in every particular,
                                        without any alteration whatsoever.

SIGNATURE GUARANTEED:

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

                                      A-11
<PAGE>

                                    EXHIBIT B
                                    ---------

                          FORM OF SERIES 2001-1C NOTES
                          ----------------------------

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

                          EDUCATION LOANS INCORPORATED

                         STUDENT LOAN ASSET-BACKED NOTE
                           SUBORDINATE SERIES 2001-1C
                                     CLASS B

No. R_____                                                            $________

         Stated             Date of Original       Interest
      Maturity Date               Issue              Rate            USIP
      -------------               -----              ----            ----

    December 1, 2035          July 30, 2001        Variable          ____

REGISTERED HOLDER:         CEDE & CO.

PRINCIPAL AMOUNT:

     FOR VALUE RECEIVED, EDUCATION LOANS INCORPORATED, a corporation organized
under the laws of the State of Delaware (the "Corporation," which term includes
any successor corporation under the Indenture hereinafter referred to),
acknowledges itself indebted and hereby promises to pay to the registered holder
specified above, or registered assigns (the "Registered Holder"), but solely
from the revenues and receipts hereinafter specified and not otherwise, the
Principal Amount specified above on the Stated Maturity Date specified above
(subject to the right of prior redemption hereinafter mentioned), upon
presentation and surrender of this Note at the Principal Office of the Trustee
(as hereinafter defined), as Paying Agent for the Series 2001-1 Notes (as
hereinafter defined), or a duly appointed successor Paying Agent, and to pay
interest on said Principal Amount, but solely from the revenues and receipts
hereinafter specified and not otherwise, to the Registered Holder hereof from
the date hereof until the payment of said Principal Amount has been made or duly
provided for, payable on each

                                      B-1
<PAGE>

Interest Payment Date and at Maturity, at the Series 2001-1 Note Interest Rate
(as hereinafter described), and at the same rate per annum (to the extent that
the payment of such interest shall be legally enforceable) on overdue
installments of interest. Payment of interest on this Note on each regularly
scheduled Interest Payment Date shall be made by check or draft drawn upon the
Paying Agent and mailed to the person who is the Registered Holder hereof as of
5:00 p.m. in the city in which the Principal Office of the Note Registrar is
located on the applicable Regular Record Date at the address of such Registered
Holder as it appears on the Note Register maintained by the Note Registrar, or,
if the Registered Holder of this Note is the Registered Holder of Series 2001-1
Notes in the aggregate principal amount of $1,000,000 or more, at the direction
of such Registered Holder received by the Paying Agent by 5:00 p.m. in the city
in which the Principal Office of the Paying Agent is located on the last
Business Day preceding the applicable Regular Record Date, by electronic
transfer by the Paying Agent in immediately available funds to an account
designated by such Registered Holder. In addition, premium, if any, and interest
on this Note are payable at the Maturity hereof in the same manner as the
principal hereof, unless the date of such maturity is a regularly scheduled
Interest Payment Date, in which event interest is payable in the manner set
forth in the preceding sentence. Any interest not so timely paid or duly
provided for shall cease to be payable to the person who is the Registered
Holder hereof at the close of business on the Regular Record Date and shall be
payable to the person who is the Registered Holder hereof at the close of
business on a special record date for the payment of any such defaulted
interest. Such special record date shall be fixed by the Trustee whenever moneys
become available for payment of the defaulted interest, and notice of the
special record date shall be given to the Registered Holder hereof not less than
ten days prior thereto by first-class mail to such Registered Holder as shown on
the Note Register on a date selected by the Trustee, stating the date of the
special record date and the date fixed for the payment of such defaulted
interest. The principal of, premium, if any, and interest on this Note are
payable in lawful money of the United States of America.

     This Note is one of an authorized issue of Notes (the "Notes"), issued and
to be issued by the Corporation in one or more series pursuant to an Indenture
of Trust, dated as of December 1, 1999 (as supplemented and amended, the
"Indenture"), as amended and supplemented by a First Supplemental Indenture of
Trust, dated as of December 1, 1999, a Second Supplemental Indenture of Trust,
dated as of December 1, 2000, and a Third Supplemental Indenture of Trust, dated
as of July 1, 2001 (the "Third Supplemental Indenture"), each between the
Corporation and U.S. Bank National Association, in Minneapolis, Minnesota, as
Trustee (the "Trustee," which term includes any successor trustee under the
Indenture). As provided in the Indenture, the Notes are issuable in series which
may vary as in the Indenture provided or permitted. This Note is one of a series
of Class B Notes issued in an aggregate principal amount of $23,800,000 (the
"Series 2001-1C Notes"). The Series 2001-1C Notes are issued simultaneously with
two series of Class A Notes issued in the aggregate principal amount of
$158,000,000 (the "Series 2001-1 Senior Notes" and, together with the Series
2001-1C Notes, collectively referred to herein as the "Series 2001-1 Notes").
The proceeds of the Series 2001-1 Notes will be used by the Corporation to (a)
acquire student loan notes incurred under the Higher Education Act and under
certain Alternative Loan Programs, (b) fund the Reserve Fund, (c) pay a portion
of the interest coming due on the Series 2001-1 Notes and (d) pay Costs of
Issuance of the Series 2001-1 Notes. The Series 2001-1 Senior Notes are being
issued on a parity, and are equally and ratably secured under the Indenture,
with the Corporation's Student Loan Asset-Backed Notes, Senior Series 1999-A and
1999-B, issued under the Indenture as Class A Notes in the original aggregate

                                      B-2
<PAGE>

principal amount of $117,000,000, and the Corporation's Student Loan
Asset-Backed Notes, Senior Series 2000-A and 2000-B, issued under the Indenture
as Class A Notes in the original aggregate principal amount of $108,200,000 (the
"Prior Senior Notes"), and the Series 2001-1C Notes are being issued on a
parity, and are equally and ratably secured under the Indenture, with the
Corporation's Student Loan Asset-Backed Notes, Subordinate Series 1999-1C,
issued under the Indenture as Class B Notes in the original principal amount of
$9,300,000, and the Corporation's Student Loan Asset-Backed Notes, Subordinate
Series 2000-1C, issued under the Indenture as Class B Notes in the original
principal amount of $22,000,000.

     Reference is hereby made to the Indenture, copies of which are on file in
the principal corporate trust office of the Trustee, and to all of the
provisions of which any Registered Holder 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 various classes of Notes and Other Obligations
secured thereunder; the student loan acquisition program being financed by the
issuance of the Notes; the revenues and other moneys pledged to the payment of
the principal of, premium, if any, and interest on the Notes and the Other
Obligations; the nature and extent and manner of enforcement of the pledge; the
conditions upon which Notes may be issued or Other Obligations may be incurred
by the Corporation thereunder, payable from such revenues and other moneys
thereunder as Senior Obligations, Subordinate Obligations or Class C Notes; the
conditions upon which the Indenture may be amended or supplemented with or
without the consent of the Holders of the Notes; the rights and remedies of the
Registered Holder hereof with respect hereto and thereto, including the
limitations upon the right of a Registered Holder 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 Corporation and the 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 maturity or
redemption of this Note, and this Note thereafter no longer be secured by the
Indenture, or be deemed to be Outstanding thereunder; and for the other terms
and provisions thereof. Terms used with initial capital letters but not defined
in this Note have the respective meanings given such terms in the Indenture. The
Series 2001-1 Senior Notes are being issued as, and will constitute, Class A
Notes under the Indenture. The Series 2001-1C Notes are being issued as, and
will constitute, Class B Notes under the Indenture.

     The Notes and Other Obligations are limited obligations of the Corporation,
payable solely from the revenues and assets of the Corporation pledged therefor
under the Indenture, including certain notes evidencing Student Loans and the
proceeds of the Corporation's bonds, notes or other evidences of indebtedness,
if any, issued with respect to the Notes.

     The Series 2001-1C Notes constitute Class B Notes under the Indenture which
are subordinated in right of payment, the direction of remedies and certain
other matters in accordance with the terms of the Indenture to the rights of the
Holders of Class A Notes issued from time to time under the Indenture
(including, without limitation, the Prior Senior Notes and the Series 2001-1
Senior Notes) and Other Senior Beneficiaries thereunder. A failure to pay
principal of, premium, if any, or interest on this Class B Note will not
constitute an Event of Default under the Indenture if any Senior Obligation is
Outstanding.

         Interest payable on this Note shall be computed on the basis of actual
days elapsed and accrue daily from the date hereof (on the basis of a 360-day
year), and is payable on each

                                      B-3
<PAGE>

regularly scheduled Interest Payment Date prior to the Maturity hereof and at
the Maturity hereof. The interest payable on each Interest Payment Date for this
Note shall be that interest which has accrued through the last day of the last
complete Interest Period immediately preceding the Interest Payment Date or, in
the case of the Maturity hereof, the last day preceding the date of such
Maturity. The Series 2001-1 Note Interest Rate shall be effective as of and on
the first day (whether or not a Business Day) of the applicable Interest Period
and be in effect thereafter through the end of such Interest Period.

     The unpaid principal amount hereof from time to time outstanding shall bear
interest at a Series 2001-1 Note Auction Rate, as described below, payable on
each Interest Payment Date and at the Maturity hereof, such interest to accrue
from the later of the date hereof or the date through which interest has been
paid or duly provided for.

     During the Initial Interest Period, this Note shall bear interest at the
Series 2001-1 Note Initial Interest Rate. Thereafter until an Auction Period
Adjustment, if any, this Note shall bear interest at a Series 2001-1 Note
Auction Rate based on an Auction Period that shall generally consist of 28 days,
all as determined in the Third Supplemental Indenture.

     The Series 2001-1 Note Auction Rate to be borne by this Note after the
Initial Interest Period for each Auction Period until an Auction Period
Adjustment, if any, shall be the lesser of (i) the Net Loan Rate in effect for
such Auction Period, (ii) the Auction Rate determined in accordance with the
applicable provisions of the Third Supplemental Indenture and (iii) the Series
2001-1 Note Auction Rate Limitation.

     In no event shall the Series 2001-1 Note Auction Rate on this Note exceed
the Series 2001-1 Note Auction Rate Limitation.

     The Interest Period, including, without limitation, an Auction Period, the
applicable Series 2001-1 Note Auction Rate, the method of determining the
applicable Series 2001-1 Note Auction Rate on each of the Series 2001-1C Notes
and the Auction Procedures related thereto, including, without limitation,
required notices thereof to the Holders or Existing Holders of the Series 2001-1
Senior Notes, an Auction Period Adjustment, a change in the Auction Date and the
Interest Payment Dates will be determined in accordance with the terms,
conditions and provisions of the Third Supplemental Indenture and the Auction
Agent Agreement, to which terms, conditions and provisions specific reference is
hereby made, and all of which terms, conditions and provisions are hereby
specifically incorporated herein by reference.

     If the Auction Rate for the Series 2001-1C Notes is greater than the Net
Loan Rate, then the Series 2001-1 Note Auction Rate applicable to the Series
2001-1 Notes for that Interest Period will be the Net Loan Rate. If the Series
2001-1 Note Auction Rate applicable to the Series 2001-1C Notes for any Interest
Period is the Net Loan Rate, the Trustee shall determine the Carry-Over Amount,
if any, with respect to the Series 2001-1C Notes for such Interest Period. Such
Carry-Over Amount shall bear interest calculated at a rate equal to One-Month
LIBOR from the Interest Payment Date for the Interest Period with respect to
which such Carry-Over Amount was calculated until paid. For purposes of this
Note, any reference to "principal" or "interest" herein shall not include within
the meaning of such words Carry-Over Amount or any interest accrued on any such
Carry-Over Amount. Such Carry-Over Amount shall be

                                      B-4
<PAGE>

separately calculated for each Series 2001-1C Note by the Trustee during such
Interest Period in sufficient time for the Trustee to give notice to each Holder
of such Carry-Over Amount as required in the next succeeding sentence. On the
Interest Payment Date for an Interest Period with respect to which such
Carry-Over Amount has been calculated by the Trustee, the Trustee shall give
written notice to each Holder of the Carry-Over Amount applicable to each
Holder's Series 2001-1C Note, which written notice may accompany the payment of
interest by check made to each such Holder on such Interest Payment Date or
otherwise shall be mailed on such Interest Payment Date by first class mail,
postage prepaid, to each such Holder at such Holder's address as it appears on
the registration books maintained by the Note Registrar. Such notice shall
state, in addition to such Carry-Over Amount, that, unless and until a Series
2001-1C Note has been redeemed or has been deemed no longer Outstanding under
the Third Supplemental Indenture (after which no Carry-Over Amount shall be paid
with respect to a Series 2001-1C Note), (i) the Carry-Over Amount (and interest
accrued thereon) shall be paid by the Trustee on such Series 2001-1C Note on the
first occurring Interest Payment Date for a subsequent Interest Period if and to
the extent that (l) the Eligible Carry-Over Make-Up Amount with respect to such
Interest Period is greater than zero, and (2) moneys are available pursuant to
the terms of the Third Supplemental Indenture to pay such Carry-Over Amount (and
interest accrued thereon), and (ii) interest shall accrue on the Carry-Over
Amount at a per annum rate equal to One-Month LIBOR until such Carry-Over Amount
is paid in full or is cancelled.

     The Carry-Over Amount for the Series 2001-1C Notes shall be paid by the
Trustee on Outstanding Series 2001-1C Notes on the first occurring Interest
Payment Date for a subsequent Interest Period if and to the extent that (i) the
Eligible Carry-Over Make-Up Amount with respect to such Interest Period is
greater than zero, and (ii) moneys in the Surplus Account are available on such
Interest Payment Date for transfer to the Interest Account for such purpose in
accordance with the applicable provisions of the Indenture, after taking into
account all other amounts payable from the Surplus Fund on such Interest Payment
Date. Any Carry-Over Amount (and any interest accrued thereon) which is unpaid
as of an Interest Payment Date with respect to any Series 2001-1C Note, which
Series 2001-1C Note is to be redeemed or deemed no longer Outstanding under the
Third Supplemental Indenture on such Interest Payment Date, shall be paid to the
Holder thereof on such Interest Payment Date to the extent that moneys are
available therefor in accordance with the provisions of the preceding clause
(ii); provided, however, that any Carry-Over Amount (and any interest accrued
thereon) which is not so paid on such Interest Payment Date shall be cancelled
with respect to such Series 2001-1C Note on such Interest Payment Date and shall
not be paid on any succeeding Interest Payment Date. To the extent that any
portion of the 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 by the Trustee on the
next occurring Interest Payment Date or Dates, as necessary, for a subsequent
Interest Period or Periods, if and to the extent that the conditions in the
first sentence of this paragraph are satisfied. On any Interest Payment Date on
which the Trustee pays less than all of the Carry-Over Amount (and any interest
accrued thereon) with respect to a Series 2001-1C Note, the Trustee shall give
written notice in the manner set forth in the immediately preceding paragraph to
the Holder of such Series 2001-1C Note of the Carry-Over Amount remaining unpaid
on such Series 2001-1C Note.

         The Interest Payment Date in such subsequent Interest Period on which
such Carry-Over Amount for the Series 2001-1C Notes shall be paid shall be
determined by the Trustee in

                                      B-5
<PAGE>

accordance with the provisions of the immediately preceding paragraph, and the
Trustee shall make payment of the Carry-Over Amount in the same manner as, and
from the same Account from which, it pays interest on the Series 2001-1C Notes
on an Interest Payment Date.

     By purchasing Series 2001-1C Notes, whether in an Auction or otherwise,
each purchaser of the Series 2001-1C Notes, or its Broker-Dealer, must agree and
shall be deemed by such purchase to have agreed (i) to participate in Auctions
on the terms described in the Third Supplemental Indenture, (ii) to have its
beneficial ownership of the Series 2001-1C 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 (iii) 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 Series
2001-1C Notes is maintained in Book-Entry Form by the Securities Depository, an
Existing Holder may sell, transfer or otherwise dispose of Series 2001-1C Notes
only pursuant to a Bid or Sell Order placed in an Auction or otherwise sell,
transfer or dispose of Series 2001-1C Notes through a Broker-Dealer, provided
that, in the case of all transfers other than pursuant to Auctions, such
Existing Holder, its Broker-Dealer or its Participant advises the Auction Agent
of such transfer.

     The determination of a Series 2001-1 Note Interest Rate by the Auction
Agent or any other authorized Person pursuant to the provisions of the Third
Supplemental Indenture shall be conclusive and binding on the Holders of the
Series 2001-1C Notes to which such Series 2001-1 Note Interest Rate applies, and
the Corporation and the Trustee may rely thereon for all purposes.

     Notwithstanding any provision of this Note to the contrary, in no event
shall the cumulative amount of interest paid or payable on this Note (including
interest calculated as provided herein, plus any other amounts that constitute
interest on this Note under applicable law, which are contracted for, charged,
reserved, taken or received pursuant to this Note or related documents)
calculated from the date of issuance of this Note through any subsequent day
during the term of this Note or otherwise prior to payment in full of this Note
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 this
Note or related documents or otherwise contracted for, charged, reserved, taken
or received in connection with this Note, or if the redemption or acceleration
of the maturity of this Note results in payment to or receipt by the Registered
Holder or any former Registered Holder hereof of any interest in excess of that
permitted by applicable law, then notwithstanding any provision of this Note or
related documents to the contrary all excess amounts theretofore paid or
received with respect to this Note shall be credited on the principal balance of
this Note (or, if this Note has been paid or would thereby be paid in full,
refunded by the recipient thereof), and the provisions of this Note and related
documents shall immediately be deemed reformed and the amounts thereafter
collectible hereunder and thereunder reduced, 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 this
Note and under the related documents.

     Subject to compliance with the provisions of the Indenture relating to
certain asset requirements, Outstanding Series 2001-1 Notes shall be redeemed,
in part, on the first regularly scheduled Interest Payment Date occurring after
November 25, 2001 for which notice can be

                                      B-6
<PAGE>

given in accordance with the requirements of the Third Supplemental Indenture,
at a Redemption Price equal to 100% of the principal amount of Series 2001-1
Notes so redeemed, from proceeds of the Series 2001-1 Notes constituting a
portion of the Balance of the Acquisition Fund that have not been used to
acquire Eligible Loans and from that portion of the Reserve Fund which, if left
in the Reserve Fund upon such redemption, would cause the Balance in the Reserve
Fund to exceed the Reserve Fund Requirement, calculated giving effect to such
redemption.

     Subject to compliance with the provisions of the Indenture relating to
certain asset requirements, Outstanding Series 2001-1C Notes shall be redeemed
on any regularly scheduled Interest Payment Date, in whole or in part, at a
Redemption Price equal to 100% of the principal amount thereof to be redeemed,
from that portion of the balance of the Series 2001-1 Surplus Subaccount that
has been on deposit therein for at least 12 months, has not been used to acquire
Student Loans and as to which the Corporation has failed to certify to the
Trustee is necessary to pay debt service on the Outstanding Notes or on
Outstanding Other Obligations, Carry-Over Amounts, including accrued interest
thereon, with respect to Outstanding Notes, Administrative Expenses or Note Fees
or to make required deposits to the Indemnification Fund.

     Subject to compliance with the provisions of the Indenture relating to
certain asset requirements and certain other requirements, Outstanding Series
2001-1C Notes may, at the option of the Corporation, be redeemed on any
regularly scheduled Interest Payment Date, in whole or in part, at a Redemption
Price equal to 100% of the principal amount thereof to be redeemed, from amounts
credited to the Retirement Account for such purpose.

     If not all Series 2001-1 Notes are to be redeemed, the particular Series
2001-1 Notes to be redeemed are to be selected as provided in the Indenture.

     Notice of redemption shall be given by first-class mail mailed at least 15
days before the Redemption Date to each Holder of Series 2001-1C Notes to be
redeemed at his last address appearing on the Note Register; but no defect in or
failure to give such notice of redemption shall affect the validity of
proceedings for redemption of any Note not affected by such defect or failure.
All Series 2001-1C Notes so called for redemption will cease to bear interest on
such Redemption Date, provided funds for their redemption have been duly
deposited, and, except for the purpose of payment, shall no longer be protected
by the Indenture and shall not be deemed Outstanding thereunder.

     It is provided in the Indenture that Series 2001-1C Notes of a denomination
larger than $50,000 may be redeemed in part ($50,000 or an integral multiple
thereof) and that upon any partial redemption of any such Series 2001-1C Note
the same shall be surrendered in exchange for one or more new Notes of the same
series in authorized form for the unredeemed portion of principal.

     If provision is made for the payment of principal of, premium, if any, and
interest on this Note in accordance with the Indenture, this Note shall no
longer be deemed Outstanding under the Indenture, shall cease to be entitled to
the benefits of the Indenture and shall thereafter be payable solely from the
funds provided for such payment.

                                      B-7
<PAGE>

     If an Event of Default shall occur, the principal of all the Outstanding
Notes may and, under certain circumstances, shall be declared due and payable in
the manner and with the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Corporation and the rights of the Holders of the Notes and Other Beneficiaries
under the Indenture at any time by the Corporation with, among other things, the
consent of the Holders of two-thirds of the aggregate principal amount of Class
A Notes at the time Outstanding, if affected thereby, and with the consent of
the Holders of two-thirds of the aggregate principal amount of Class B Notes at
the time Outstanding, if affected thereby. The Indenture also contains
provisions permitting the Holders of specified percentages in aggregate
principal amount of the Class A Notes at the time Outstanding or Other Senior
Beneficiaries or, if no Senior Obligations are Outstanding, the Holders of
specified percentages in aggregate principal amount of the Class B Notes at the
time Outstanding or Other Subordinate Beneficiaries, on behalf of the Holders of
all the Notes, to waive certain past defaults under the Indenture and their
consequences. Any such consent or waiver shall be conclusive and binding upon
the Registered Holder of this Note and upon all future Registered Holders hereof
and of any Note issued in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Note.

     This Note is transferable by the Registered Holder hereof upon surrender of
this Note for transfer at the Principal Office of the Note Registrar (which
shall be the Trustee unless and until an Authenticating Agent becomes the Note
Registrar under the Indenture) or at the Principal Office of a duly appointed
Authenticating Agent (the "Authenticating Agent," which term includes any
successor Authenticating Agent under the Indenture), duly endorsed or
accompanied by a written instrument of transfer in form satisfactory to the Note
Registrar or the Authenticating Agent, as the case may be, and executed by the
Registered Holder hereof or his attorney duly authorized in writing, with
signature guarantees satisfactory to the Note Registrar or the Authenticating
Agent, as the case may be. Thereupon the Corporation shall execute and the
Trustee or the Authenticating Agent, as the case may be, shall authenticate and
deliver, in exchange for this Note, one or more new fully registered Notes in
the name of the transferee, of an authorized denomination, in aggregate
principal amount equal to the principal amount of this Note, of the same series
and bearing interest at the same rate. This Note may also be exchanged for one
or more other Notes of the same series upon surrender hereof at the Principal
Office of the Note Registrar or the Principal Office of an Authenticating Agent.
No Authenticating Agent will be initially appointed with respect to the Series
2001-1C Notes. Notwithstanding the foregoing provisions of this paragraph, no
Series 2001-1C Note shall be required to be transferred, (i) during a period
beginning at the opening of business fifteen days before any selection of Series
2001-1C Notes for redemption and ending at the close of business on the day of
such selection, or (ii) if such Series 2001-1C Note has been selected for
redemption in whole or in part.

     The Corporation may require payment by the Registered Holder hereof of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of this Note, other than certain
exchanges specifically exempted under the Indenture and not involving any
transfer.

                                      B-8
<PAGE>

     The Corporation, the Trustee, each Paying Agent, any Authenticating Agent,
the Note Registrar and any other agent of the Corporation may treat the Person
in whose name this Note is registered on the Note Register as the absolute owner
hereof for all purposes, whether or not this Note is overdue, and neither the
Corporation, the Trustee, any Paying Agent, any Authenticating Agent, the Note
Registrar nor any other such agent shall be affected by notice to the contrary.

     IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND DECLARED that all acts,
conditions and things required to have happened, to exist and to have been
performed precedent to and in the issuance of this Note have happened, do exist,
and have been performed in regular and due time, form and manner as so required.

     This Note shall not be valid or become obligatory for any purpose or be
entitled to any security or benefit under the Indenture until the Certificate of
Authentication hereon shall have been signed by the Trustee or by the
Authenticating Agent by the manual signature of one of its authorized
representatives.

     IN WITNESS WHEREOF, the Corporation has caused this Note to be executed in
its name by the manual signatures of its President and Secretary.

Dated: ___________________________     EDUCATION LOANS INCORPORATED

                                       -----------------------------------------
                                                       President

                                       -----------------------------------------
                                                       Secretary

                                   ----------

                          CERTIFICATE OF AUTHENTICATION

     This Note is one of the Notes of the series designated therein and issued
under the provisions of the within-mentioned Indenture.

                                       U.S. BANK NATIONAL ASSOCIATION,
                                       as Trustee

                                       By
                                           -------------------------------------
                                                    Authorized Representative

                                      B-9
<PAGE>

                                   ----------

                                   ASSIGNMENT

     FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
_____________________ the within Note and irrevocably appoints
______________________, attorney-in-fact, to transfer the within Note on the
books kept for registration thereof, with full power of substitution in the
premises.

Dated  ___________________________

PLEASE INSERT SOCIAL SECURITY           ________________________________________
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE                             NOTICE:  The signature to this
                                        assignment must correspond with the
                                        name as it appears upon the face of the
___________________________________     within Note in every particular,
                                        without any alteration whatsoever.

SIGNATURE GUARANTEED:

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

                                      B-10
<PAGE>

                                    EXHIBIT C
                                    ---------

                           NOTICE OF A PAYMENT DEFAULT
                           ---------------------------

                          EDUCATION LOANS INCORPORATED
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR SERIES 2001-1A [B]
                          [SUBORDINATE SERIES 2001-1C]

     NOTICE IS HEREBY GIVEN that a Payment Default has occurred and not been
cured with respect to the Notes identified above. Determination of the Series
2001-1 Note Interest Rate pursuant to the Auction Procedures will be suspended.
The Series 2001-1 Note Interest Rate on the Series 2001-1A [B][C] Notes for each
Auction Period commencing after the date of Payment Default will equal the
Non-Payment Rate as it is determined by the Trustee on the first day of such
Auction Period.

     Terms used herein have the meanings set forth in the Third Supplemental
Indenture of Trust relating to the above-referenced Notes.

Dated: ___________________________     U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                       By
                                           -------------------------------------
                                                    Authorized Representative

                                      C-1
<PAGE>

                                    EXHIBIT D
                                    ---------

                        NOTICE OF CURE OF PAYMENT DEFAULT
                        ---------------------------------

                          EDUCATION LOANS INCORPORATED
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR SERIES 2001-1A [B]
                          [SUBORDINATE SERIES 2001-1C]

     NOTICE IS HEREBY GIVEN that a Payment Default with respect to the Notes
identified above has been waived or cured. The next Interest Payment Date is
_____________________ and the next Auction Date is ---------------------------.

     Terms used herein have the meanings set forth in the Third Supplemental
Indenture of Trust relating to the above-referenced Notes.

Dated: ___________________________       U.S. BANK NATIONAL ASSOCIATION,
                                         as Trustee

                                             By
                                                --------------------------------
                                                   Authorized Representative

                                      D-1
<PAGE>

                                    EXHIBIT E
                                    ---------

                  NOTICE OF PROPOSED AUCTION PERIOD ADJUSTMENT
                  --------------------------------------------

                          EDUCATION LOANS INCORPORATED
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR SERIES 2001-1A [B]
                          [SUBORDINATE SERIES 2001-1C]

     Notice is hereby given that EDUCATION LOANS INCORPORATED proposes to change
the length of one or more Auction Periods with respect to the Notes identified
above, pursuant to the Third Supplemental Indenture of Trust relating to such
Notes (the "Third Supplemental Indenture"), as follows:

          1. The change shall take effect on the Interest Payment Date for the
     current Auction Period and the date of commencement of the next Auction
     Period (the "Effective Date").

          2. The Auction Period Adjustment in Paragraph 1 shall take place only
     if (A) the Trustee and the Auction Agent receive, by 11:00 a.m., New York
     City time, on the Business Day before the Auction Date for the Auction
     Period commencing on the Effective Date, a certificate from the Market
     Agent, as required by the Third Supplemental 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 Auction 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
     Notes described herein, that there were Sufficient Bids for such Notes at
     the Auction immediately preceding the date of this Notice.

     Terms used herein have the meanings set forth in the Third Supplemental
Indenture.

Dated: ___________________________     EDUCATION LOANS INCORPORATED

                                       By:
                                           -------------------------------------

                                      E-1
<PAGE>

                                    EXHIBIT F
                                    ---------

                  NOTICE ESTABLISHING AUCTION PERIOD ADJUSTMENT
                  ---------------------------------------------

                          EDUCATION LOANS INCORPORATED
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR SERIES 2001-1A [B]
                          [SUBORDINATE SERIES 2001-1C]

     Notice is hereby given that EDUCATION LOANS INCORPORATED hereby establishes
new lengths for one or more Auction Periods with respect to the Notes identified
above pursuant to the Third Supplemental Indenture of Trust relating to such
Notes (the "Third Supplemental Indenture"):

          1. The change shall take effect on _____________________, the Interest
     Payment Date for the current Auction Period and the date of commencement of
     the next Auction Period (the "Effective Date").

          2. For the Auction Period commencing on the Effective Date, the
     Interest Payment 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 the Interest
     Payment Dates 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 Section 11 of the Third Supplemental Indenture.

          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 Third Supplemental Indenture and our prior notice dated
     ________________________ regarding the proposed change.

     Terms used herein have the meanings set forth in the Third Supplemental
Indenture.

Dated: ___________________________     EDUCATION LOANS INCORPORATED

                                       By
                                          --------------------------------------

                                      F-1
<PAGE>

                                    EXHIBIT G
                                    ---------

                        NOTICE OF CHANGE IN AUCTION DATE
                        --------------------------------

                          EDUCATION LOANS INCORPORATED
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR SERIES 2001-1A [B]
                          [SUBORDINATE SERIES 2001-1C]

     Notice is hereby give by Salomon Smith Barney Inc., as Market Agent for the
Notes identified above, that, with respect to such Notes, the Auction Date is
hereby changed as follows:

          1. With respect to such Notes, the definition of "Auction Date" shall
     be deemed amended by substituting "____________________ (number) Business
     Day" in the third and fourth lines thereof and by substituting
     "____________________ (number) Business Days" for "two (2) 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 such Notes shall be subject to further change
     hereafter as provided in the Third Supplemental Indenture of Trust relating
     to such Notes (the "Third Supplemental Indenture").

     Terms used herein have the meanings set forth in the Third Supplemental
Indenture.

Dated: ___________________________     SALOMON SMITH BARNEY INC., as
                                       Market Agent

                                       By
                                          --------------------------------------

                                      G-1
<PAGE>

                                   EXHIBIT H-1
                                   -----------

                [List of EdLinc Student Loan Purchase Agreements]

                                     H-1-1
<PAGE>

                                   EXHIBIT H-2
                                   -----------

             [List of GOAL Funding Student Loan Purchase Agreements]

                                     H-2-1<PAGE>

                                                                     EXHIBIT 4.3
================================================================================

                             AUCTION AGENT AGREEMENT

                                  by and among

                          EDUCATION LOANS INCORPORATED,
                                   as Issuer,

                         U.S. BANK NATIONAL ASSOCIATION,
                                   as Trustee,

                                       and

                             BANKERS TRUST COMPANY,
                                as Auction Agent

                                   ----------

                            Dated as of July 1, 2001

                                   ----------

                                   Relating to

                                  $181,800,000
                          EDUCATION LOANS INCORPORATED
                         STUDENT LOAN ASSET-BACKED NOTES
                           SENIOR SERIES 2001-1A AND B
                           SUBORDINATE SERIES 2001-1C

================================================================================
<PAGE>

                                TABLE OF CONTENTS

                                                                          Page
                                                                          ----

 Section 1.    Definitions and Rules of Construction.......................2
         1.1   Terms Defined by Reference to Third Supplemental
                 Indenture.................................................2
         1.2   Terms Defined Herein........................................2
         1.3   Rules of Construction.......................................3

 Section 2.    The Auction.................................................4
         2.1   Interest Rate on Series 2001-1 Notes; Incorporation
                 by Reference of Auction Procedures and Settlement
                 Procedures................................................4
         2.2   Preparation of Each Auction; Maintenance of Existing
                 Holder Registry...........................................4
         2.3   All Hold Rates, Maximum Auction Rates, Net Loan Rate,
                 One-Month LIBOR and Three-Month LIBOR.....................6
         2.4   Auction Schedule............................................7
         2.5   Changes in Auction Periods or Auction Date..................8
         2.6   Notice of Fee Rate Change...................................9
         2.7   Notices to Existing Holders.................................9
         2.8   Payment Default.............................................9
         2.9   Broker-Dealers..............................................9
         2.10  Access to and Maintenance of Auction Records...............10

 Section 3.    Term of Agreement..........................................10

 Section 4.    Trustee....................................................11

 Section 5.    Representations and Warranties of the Trustee..............11

 Section 6.    The Auction Agent..........................................12
         6.1   Duties and Responsibilities................................12
         6.2   Rights of the Auction Agent................................12
         6.3   Auction Agent's Disclaimer.................................13
         6.4   Compensation, Remedies and Indemnification.................13
         6.5   Compensation of the Broker-Dealers.........................14

 Section 7.    Miscellaneous..............................................15
         7.1   Governing Law..............................................15
         7.2   Communications.............................................15
         7.3   Entire Agreement...........................................16
         7.4   Benefits...................................................16
         7.5   Amendment; Waiver..........................................16
         7.6   Successors and Assigns.....................................16
         7.7   Severability...............................................17
         7.8   Execution in Counterparts..................................17

                                      -i-
<PAGE>

Exhibits
--------

Exhibit A  --List of Initial Broker-Dealers for the Series 2001-1
Exhibit B  --Broker-Dealer Agreement
Exhibit C  --Notice of Ratings
Exhibit D  --Notice of Series 2001-1 Notes Outstanding
Exhibit E  --Notice of Fee Rate Change
Exhibit F  --Notice of a Payment Default
Exhibit G  --Settlement Procedures
Exhibit H  --Notice of Continuation of Auction Period
Exhibit I  --Notice of Series 2001-1 Note Auction Rate

                                      -ii-
<PAGE>

     THIS AUCTION AGENT AGREEMENT, dated as of July 1, 2001 (this "Auction Agent
Agreement"), is being entered into by and among EDUCATION LOANS INCORPORATED, a
Delaware corporation (together with any successors or assigns, the "Issuer"),
U.S. BANK NATIONAL ASSOCIATION, Minneapolis, Minnesota, a national banking
association duly established and existing under the laws of the United States of
America, as Trustee (together with any successors or assigns, the "Trustee")
under a certain Third Supplemental Indenture of Trust, as hereinafter defined
and described, and BANKERS TRUST COMPANY, a New York banking corporation
(together with its successors and assigns, the "Auction Agent"), acting not in
its individual capacity but solely as agent for the Issuer.

                              W I T N E S S E T H:

     WHEREAS, the Issuer proposes to cause the Trustee to authenticate and
deliver $181,800,000 aggregate principal amount of its Student Loan Asset-Backed
Notes, Series 2001-1, consisting of three series designated Student Loan
Asset-Backed Notes, Senior Series 2001-1A (the "Series 2001-1A Notes"), Student
Loan Asset-Backed Notes, Senior Series 2001-1B (the "Series 2001-1B Notes"), and
Student Loan Asset-Backed Notes, Subordinate Series 2001-1C (the "Series 2001-1C
Notes" and, together with the Series 2001-1A Notes and the Series 2001-1B Notes,
the " Series 2001-1 Notes"). The Series 2001-1 Notes are being issued under the
Third Supplemental Indenture of Trust, dated as of July 1, 2001 (the "Third
Supplemental Indenture"), by and between the Issuer and the Trustee and executed
pursuant to an Indenture of Trust, dated as of December 1, 1999 (as amended and
supplemented, the "Original Indenture"), by and between the Trustee and the
Issuer; and

     WHEREAS, pursuant to Section 8 of the Third Supplemental Indenture, the
Auction Agent has been appointed to act in the capacities set forth in this
Auction Agent Agreement; and

     WHEREAS, the Trustee is entering into this Auction Agent Agreement at the
direction of the Issuer pursuant to the terms of the Third Supplemental
Indenture;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the Issuer, the Trustee and the Auction Agent agree as
follows:

                                      -1-
<PAGE>

Section 1. Definitions and Rules of Construction.

     1.1 Terms Defined by Reference to Third Supplemental Indenture. Capitalized
terms used herein and not otherwise defined herein shall have the meanings given
such terms in the Third Supplemental Indenture.

     1.2 Terms Defined Herein. As used herein and in the Settlement Procedures
(as defined below), the following terms shall have the following meanings,
unless the context otherwise requires:

     "Auction" shall have the meaning specified in Section 2.1 hereof.

     "Auction Agent Fee" shall have meaning specified in Section 6.4(b) hereof.

     "Auction Agent Fee Rate" shall mean the rate per annum determined pursuant
to Section 6.4(b) hereof, as the same may be changed from time to time in
accordance with Section 6.4(b) hereof, at which the fee to be paid to the
Auction Agent for services rendered by it hereunder and under the Broker-Dealer
Agreements accrues pursuant to Section 6.4(b) hereof.

     "Auction Procedures" shall mean the provisions that are set forth in
Sections 4 through 11, inclusive, of the Third Supplemental Indenture.

     "Authorized Auction Agent Officer" shall mean, with respect to the Auction
Agent, each Managing Director, Vice President, Assistant Vice President and
Assistant Treasurer of the Auction Agent and every other officer of the Auction
Agent assigned to its Corporate Trust and Agency Group and every other officer
or employee of the Auction Agent designated as an "Authorized Auction Agent
Officer" for purposes hereof in a communication to the Trustee and the Issuer.

     "Authorized Issuer Officer" shall mean, with respect to the Issuer, the
Chairman of the Board of Directors, the President, any Vice President or the
Secretary of the Issuer or any other person designated in writing by the Board
of Directors of the Issuer to the Auction Agent from time to time, which writing
may limit the functions which such other person may undertake as an Authorized
Issuer Officer hereunder.

     "Authorized Trustee Representative" shall mean each Vice President,
Assistant Vice President or Trust Officer in the Corporate Trust Department of
the Trustee and every other officer or employee of the Trustee designated as an
"Authorized Trustee Representative" for purposes hereof in a written
communication to the Auction Agent and the Issuer.

     "Broker-Dealer" shall mean a Person listed on Exhibit A hereto, as such
Exhibit A may be amended from time to time.

     "Broker-Dealer Agreement" shall mean each agreement between the Auction
Agent and a Broker-Dealer substantially in the form attached hereto as Exhibit
B.

     "Broker-Dealer Fee" shall have the meaning specified in Section 6.5(a)
hereof.

                                      -2-
<PAGE>

     "Broker-Dealer Fee Rate" shall have the meaning specified in Section 6.5(b)
hereof.

     "Business Day" shall mean a day of the year on which (i) banks located in
the city in which the Principal Office of the Trustee is located are not
required or authorized to remain closed, (ii) banks located in the city in which
the Principal Office of the Auction Agent, as set forth in Section 7.2 hereof,
is located are not required or authorized to remain closed, (iii) banks located
in the city in which the Principal Office of each Broker-Dealer, as set forth in
and for purposes of the applicable Broker-Dealer Agreement, is located are not
required or authorized to remain closed and (iv) The New York Stock Exchange is
not closed.

     "Existing Holder Registry" shall mean the register maintained by the
Auction Agent pursuant to Section 2.2 hereof.

     "Notice of Failure to Deliver or Make Payment" shall mean a notice
substantially in the form of Exhibit D to the Broker-Dealer Agreement.

     "Notice of Fee Rate Change" shall mean a notice substantially in the form
of Exhibit E hereof.

     "Notice of Payment Default" shall mean a notice substantially in the form
of Exhibit F hereto.

     "Notice of Ratings" shall mean a notice substantially in the form of
Exhibit C hereto.

     "Notice of Series 2001-1 Notes Outstanding" shall mean a notice
substantially in the form of Exhibit D hereto.

     "Notice of Transfer" shall mean a notice substantially in the form of
Exhibit C to the Broker-Dealer Agreement.

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

     "Settlement Procedures" shall mean the Settlement Procedures attached as
Exhibit G hereto.

     1.3 Rules of Construction. Unless the context or use indicates another or
different meaning or intent, the following rules shall apply to the construction
of this Auction Agent Agreement:

          (a) Words importing the singular number shall include the plural
     number and vice versa.

          (b) The captions and headings herein are solely for convenience of
     reference and shall not constitute a part of this Auction Agent Agreement
     nor shall they affect its meaning, construction or effect.

          (c) The words "hereof," "herein," "hereto" and other words of similar
     import refer to this Auction Agent Agreement as a whole.

                                      -3-
<PAGE>

          (d) All references herein to a particular time of day shall be to New
     York City time.

          (e) The rights and duties of the Trustee, the Auction Agent and the
     Issuer under this Auction Agent Agreement shall apply to the Series 2001-1A
     Notes, the Series 2001-1B Notes and the Series 2001-1C Notes, but
     separately in each case. References to "Series 2001-1 Notes" shall, unless
     the context clearly contemplates a reference to all the Series 2001-1
     Notes, be deemed to refer only to a particular series of Series 2001-1
     Notes.

Section 2. The Auction.

     2.1 Interest Rate on Series 2001-1 Notes; Incorporation by Reference of
Auction Procedures and Settlement Procedures.

          (a) During the Initial Interest Period, each of the Series 2001-1A
     Notes, the Series 2001-1B Notes and the Series 2001-1C Notes shall bear
     interest at the Series 2001-1 Note Initial Interest Rate for such series.
     Thereafter, the Series 2001-1 Notes shall bear interest at the Series
     2001-1 Note Interest Rate based on an Interest Period that shall be an
     Auction Period. The Series 2001-1 Note Auction Rate on each series of the
     Series 2001-1 Notes for each Auction Period shall be the lesser of (i) the
     Net Loan Rate and (ii) the Auction Rate determined in accordance with
     Sections 3 through 12 of the Third Supplemental Indenture (not to exceed
     18% per annum). Pursuant to Section 8 of the Third Supplemental Indenture,
     the Issuer has duly appointed Bankers Trust Company as Auction Agent for
     purposes of the Auction Procedures and to perform such other obligations
     and duties as are herein set forth. Bankers Trust Company hereby accepts
     such appointment and agrees that, on each Auction Date, it shall follow the
     procedures set forth in this Section 2 and the Auction Procedures for the
     purpose of, among other things, determining the Auction Rate, and
     ultimately the Series 2001-1 Note Auction Rate for each series of the
     Series 2001-1 Notes for each Auction Period other than the Initial Interest
     Period. Each periodic operation of such procedures is hereinafter referred
     to as an "Auction."

          (b) All of the provisions contained in the Auction Procedures and the
     Settlement Procedures are incorporated herein by reference in their
     entirety and shall be deemed to be a part hereof to the same extent as if
     such provisions were fully set forth herein.

     2.2 Preparation of Each Auction; Maintenance of Existing Holder Registry.

          (a) A list of Broker-Dealers with respect to the Series 2001-1 Notes
     (showing Salomon Smith Barney Inc. as the sole initial Broker-Dealer) is
     attached as Exhibit A to this Auction Agent Agreement. Not later than seven
     days prior to any Auction Date for which any change in such list of
     Broker-Dealers is to be effective, the Trustee, at the direction of an
     Authorized Issuer Officer, will notify the Auction Agent in writing of such
     change and, if any such change is the addition of a Broker-Dealer to such
     list, shall cause to be delivered to the Auction Agent for execution by the
     Auction Agent a Broker

                                      -4-
<PAGE>

     -Dealer Agreement manually signed by such Broker-Dealer. The Auction Agent
     shall have entered into a Broker-Dealer Agreement with each Broker-Dealer
     prior to the participation of any such Broker-Dealer in any Auction.

          (b) In the event that any day that is scheduled to be an Auction Date
     shall be changed after the Auction Agent shall have given the notice of
     such Auction Date pursuant to clause (vii) of paragraph (a) of the
     Settlement Procedures, the Auction Agent, by such means as the Auction
     Agent deems practicable, shall give notice of such change to the
     Broker-Dealers not later than the earlier of 9:15 a.m., New York City time,
     on the new Auction Date and 9:15 a.m., New York City time, on the old
     Auction Date.

               (c) (i) The Auction Agent shall maintain a current registry of
          Persons that are Broker-Dealers, compiled initially on the Closing
          Date as described below, and that hold Series 2001-1 Notes, for
          purposes of dealing with the Auction Agent in connection with an
          Auction (such registry being herein called the "Existing Holder
          Registry"). Such Persons shall constitute the "Existing Holders" for
          purposes of dealing with the Auction Agent in connection with an
          Auction. The Auction Agent shall indicate in the Existing Holder
          Registry for each Existing Holder the identity of the Broker-Dealer
          which submitted the most recent Order in any Auction which resulted in
          such Existing Holder continuing to hold or purchasing the Series
          2001-1 Notes. Pursuant to its Broker-Dealer Agreement, Salomon Smith
          Barney Inc., as the sole initial Broker-Dealer with respect to the
          Series 2001-1 Notes, has agreed to provide to the Auction Agent on the
          Closing Date the names and addresses of the Persons who are to be
          initially listed on the Existing Holder Registry as constituting the
          initial Existing Holders of Series 2001-1 Notes for purposes of
          dealing with the Auction Agent in connection with an Auction. The
          Auction Agent may rely upon, as evidence of the identities of the
          Existing Holders, such list, the results of each Auction and notices
          from any Existing Holder, Participant of any Existing Holder or
          Broker-Dealer of any Existing Holder as described in Section
          2.2(c)(iii) hereof.

               (ii) The Trustee shall notify the Auction Agent when any notice
          of redemption is sent to the Securities Depository as the Holder of
          Series 2001-1 Notes not later than 11:00 a.m., New York City time, on
          the date such notice is sent. Such notice with respect to a redemption
          shall be substantially in the form of Exhibit D hereto, Notice of
          Series 2001-1 Notes Outstanding. In the event the Auction Agent
          receives from the Trustee written notice of any partial redemption of
          any Series 2001-1 Notes, the Auction Agent shall, at least two
          Business Days prior to the next Auction, request each Participant to
          disclose to the Auction Agent (upon selection by such Participant of
          the Existing Holders whose Series 2001-1 Notes are to be redeemed) the
          aggregate principal amount of such Series 2001-1 Notes of each such
          Existing Holder, if any, which are to be redeemed; provided the
          Auction Agent has been furnished with the name and telephone number of
          a person or department at such Participant from which it is to request
          such information. In the absence of receiving any such information
          with respect to any Existing Holder, from such Existing Holder's
          Participant or otherwise, the Auction Agent may continue to treat such
          Existing Holder as the beneficial owner

                                      -5-
<PAGE>

          of the principal amount of Series 2001-1 Notes shown in the Existing
          Holder Registry.

               (iii) The Auction Agent shall be required to register in the
          Existing Holder Registry a transfer of Series 2001-1 Notes from an
          Existing Holder to another Person only if such transfer is made to a
          Person through a Broker-Dealer and if (A) such transfer is pursuant to
          an Auction or (B) the Auction Agent has been notified in writing (1)
          in a notice substantially in the form of a Notice of Transfer by such
          Existing Holder, by the Participant of such Existing Holder or by the
          Broker-Dealer of such Existing Holder of such transfer, or (2) in a
          notice substantially in the form of a Notice of Failure to Deliver or
          Make Payment by the Broker-Dealer of any Person that purchased or sold
          Series 2001-1 Notes in an Auction of the failure of such Series 2001-1
          Notes to be transferred as a result of the Auction. The Auction Agent
          is not required to accept any Notice of Transfer or Notice of Failure
          to Deliver or Make Payment delivered prior to an Auction unless it is
          received by the Auction Agent by 3:00 p.m., New York City time, on the
          Business Day next preceding the applicable Auction Date.

          (d) The Auction Agent may request that the Broker-Dealers, as set
     forth in the Broker-Dealer Agreements, provide the Auction Agent with the
     aggregate principal amount of Series 2001-1 Notes held by such
     Broker-Dealers for purposes of the Existing Holder Registry, as well as
     with a list of their respective customers that such Broker-Dealers believe
     are Existing Holders of the Series 2001-1 Notes and the aggregate principal
     amount of Series 2001-1 Notes beneficially owned by each such customer.
     Except as permitted by Section 2.10 hereof, the Auction Agent shall keep
     confidential any such information and shall not disclose any such
     information so provided to any person other than the relevant
     Broker-Dealer, the Issuer and the Trustee, provided that the Auction Agent
     reserves the right to disclose any such information if it is advised by its
     counsel that its failure to do so would be unlawful or would expose the
     Auction Agent to liability, claim or damage for which the Auction Agent has
     not previously received indemnity reasonably satisfactory to it. The
     Auction Agent shall notify the Issuer, the Trustee and each Broker-Dealer
     promptly upon receipt of any request or demand to disclose such information
     and shall cooperate with any party seeking a protective order or similar
     relief.

          (e) The Auction Agent shall send by telecopy or other means a copy of
     any Notice of Series 2001-1 Notes Outstanding received from the Trustee to
     each Broker-Dealer in accordance with Section 4.3 of the applicable
     Broker-Dealer Agreement.

     2.3 All Hold Rates, Maximum Auction Rates, Net Loan Rate, One-Month LIBOR
and Three-Month LIBOR.

          (a) On each Auction Date, the Auction Agent shall determine the All
     Hold Rate, the Maximum Auction Rate and One-Month LIBOR or Three-Month
     LIBOR, as the case may be. The Net Loan Rate with respect to each Auction
     Date shall be determined and written notice thereof given to the Auction
     Agent in accordance with Section 6 of the Third Supplemental Indenture. Not
     later than 9:30 a.m., New York City

                                      -6-
<PAGE>

     time, on each Auction Date, the Auction Agent shall notify the Trustee and
     the Broker-Dealers of the All Hold Rate, the Maximum Auction Rate, the Net
     Loan Rate and One-Month LIBOR or Three-Month LIBOR, as the case may be, so
     determined. On or within three Business Days after the Closing Date, the
     Issuer shall give written notice to the Auction Agent of the initial
     ratings on the Series 2001-1 Notes by Moody's and Fitch substantially in
     the form of the Notice of Ratings. Thereafter, if there is a change in one
     or both of such ratings, the Issuer shall give written notice to the
     Auction Agent substantially in the form of the Notice of Ratings within
     three Business Days of its receipt of notice of such change, but not later
     than the close of business on the Business Day immediately preceding an
     Auction Date if the Issuer has received written notice of such change in a
     rating or ratings prior to 12:00 noon, New York City time, on such Business
     Day, and the Auction Agent shall take into account such change in rating or
     ratings for purposes hereof and any Auction so long as such Notice of
     Ratings is received by the Auction Agent no later than the close of
     business on such Business Day.

               (b) (i) If, on any Auction Date for an Auction Period, an Auction
          is not held for any reason, then the Series 2001-1 Note Auction Rate
          for the next succeeding Auction Period shall be the Net Loan Rate.

               (ii) If the ownership of the Series 2001-1 Notes is no longer
          maintained in Book-Entry Form by the Securities Depository, no further
          Auctions shall be held and the Series 2001-1 Note Auction Rate for
          each Interest Period commencing after the delivery of certificated
          Series 2001-1 Notes pursuant to Section 17 of the Third Supplemental
          Indenture shall equal the lesser of the Net Loan Rate and the Maximum
          Auction Rate as determined by the Trustee on the Business Day
          immediately preceding the first day of such subsequent Interest Period
          as provided in Section 3 of the Third Supplemental Indenture.

               (iii) If a Payment Default shall have occurred with respect to a
          series of Series 2001-1 Notes, the Series 2001-1 Note Auction Rate
          with respect to such series for each Interest Period commencing on or
          immediately after the occurrence of such Payment Default, and for each
          Interest Period thereafter, to and including the Interest Period, if
          any, during which, or commencing less than two Business Days after,
          such Payment Default is cured, shall equal the Non-Payment Rate, as
          determined by the Trustee on the first day of such Interest Period as
          provided in Section 3 of the Third Supplemental Indenture. The Series
          2001-1 Note Auction Rate for each Interest Period commencing at least
          two Business Days after any cure of a Payment Default shall be
          determined through implementation of the Auction Procedures.

     2.4 Auction Schedule. The Auction Agent shall conduct Auctions on the
Auction Date in accordance with the schedule set forth below. Such schedule may
be changed by the Auction Agent with the consent of the Trustee and the Market
Agent, which consent shall not be unreasonably withheld or delayed. The Auction
Agent shall give notice pursuant to Section 4.3 of the applicable Broker-Dealer
Agreement of any such change to each Broker-Dealer. Such notice shall be given
prior to the first Auction Date on which any such change shall be effective.

                                      -7-
<PAGE>

By 9:30 a.m.             The Auction Agent advises the Trustee and the
                         Broker-Dealers of the Maximum Auction Rate, the All
                         Hold Rate, the Net Loan Rate and One-Month LIBOR or
                         Three-Month LIBOR, as the case may be, to be used in
                         determining the Auction Rate under the Auction
                         Procedures, the Third Supplemental Indenture and this
                         Auction Agent Agreement.

9:30 a.m.-12:30 p.m.     The Auction Agent assembles information communicated to
                         it by Broker-Dealers as provided in Section 4(c)(i) of
                         the Third Supplemental Indenture.  The Submission
                         Deadline is 12:30 p.m., New York City time.

Not earlier than         The Auction Agent makes the determination
12:30 p.m.               pursuant to Section 4(c)(i) of the Third Supplemental
                         Indenture. Submitted Bids and Submitted Sell Orders
                         are accepted and rejected in whole or in part and
                         principal amount of Series 2001-1 Notes is allocated
                         as provided in Section 4(d) of the Third Supplemental
                         Indenture.

By approximately         The Auction Agent advises the Trustee and the
3:00 p.m.1/ or           Broker-Dealers of the results of the Auction as
4:00 p.m.2/              provided in Section 4(c)(ii) of the Third
                         Supplemental Indenture.

----------
1/   If the Series 2001-1 Note Auction Rate is the Auction Rate.
-

2/   If the Series 2001-1 Note Auction Rate is the Net Loan Rate.
-

     The Auction Agent shall follow the notification procedures set forth in
paragraph (a) of the Settlement Procedures.

     2.5 Changes in Auction Periods or Auction Date.

          (a) Changes in Auction Period or Periods.

               (i) The Auction Agent shall mail any notice delivered to it
          pursuant to Section 10(a) of the Third Supplemental Indenture to the
          Existing Holders within two Business Days of its receipt thereof.

               (ii) The Auction Agent shall deliver any certificate delivered to
          it pursuant to Section 10(c) of the Third Supplemental Indenture to
          the Broker-Dealers not later than 3:00 p.m., New York City time, on
          the last Business Day preceding the next Auction Date by telecopy or
          similar means.

                                      -8-
<PAGE>

               (iii) If, after delivery to the Auction Agent of the notice
          referred to in Section 10(a) of the Third Supplemental Indenture, the
          Auction Agent fails to receive the certificate referred to in Section
          10(c) of the Third Supplemental Indenture by 11:00 a.m., New York City
          time, on the last Business Day preceding the next Auction Date, the
          Auction Agent shall deliver a notice of such failure in substantially
          the form of Exhibit H hereto to the Broker-Dealers not later than 3:00
          p.m., New York City time, on such Business Day by telecopy or other
          similar means.

               (iv) If, after delivery to the Auction Agent of the notice
          referred to in Section 10(a) and the certificate referred to in
          Section 10(c) of the Third Supplemental Indenture, Sufficient Bids are
          not received by the Auction Agent by the Submission Deadline, the
          Auction Agent shall notify the Broker-Dealers not later than 3:00
          p.m., New York City time, on such Auction Date by telephone confirmed
          in writing in substantially the form of Exhibit I hereto the next
          Business Day.

          (b) Changes in Auction Date. The Auction Agent shall mail any notice
     delivered to it pursuant to Section 11 of the Third Supplemental Indenture
     to the Broker-Dealers within three Business Days of its receipt thereof.

     2.6 Notice of Fee Rate Change. If the Auction Agent Fee Rate is changed
pursuant to the provisions of Section 6.4(b) hereof or the Broker-Dealer Fee
Rate is changed pursuant to the provisions of 6.5(b) hereof, the Auction Agent
shall mail a Notice of Fee Rate Change (i) to the Trustee with respect to a
change in the Auction Agent Fee Rate and the Broker-Dealer Fee Rate and (ii) to
the Broker-Dealers with respect to a change in the Broker-Dealer Fee Rate, in
each case within two Business Days of such change.

     2.7 Notices to Existing Holders. The Auction Agent shall be entitled to
rely upon the address of each Broker-Dealer as provided in Section 4.3 of the
applicable Broker-Dealer Agreement in connection with any notice to each
Broker-Dealer, as an Existing Holder, required to be given by the Auction Agent.

     2.8 Payment Default.

          (a) After delivery by the Trustee to the Auction Agent of a notice
     that a Payment Default shall have occurred, the Auction Agent shall, on the
     Business Day following its receipt of the same, deliver a Notice of Payment
     Default to the Broker-Dealers by telecopy or other similar means.

          (b) The Auction Agent shall deliver a copy of any notice received by
     it from the Trustee to the effect that a Payment Default has been cured to
     the Broker-Dealers on the Business Day following its receipt of the same by
     telecopy or other similar means.

     2.9 Broker-Dealers.

          (a) If the Auction Agent is provided with a copy of a Broker-Dealer
     Agreement, which has been manually signed, with any person listed on
     Exhibit A-1 or

                                      -9-
<PAGE>

     Exhibit A-2 hereto to which the Trustee, at the direction of an Authorized
     Issuer Officer, shall have consented, it shall enter into such
     Broker-Dealer Agreement with such person. The Issuer hereby directs the
     Trustee to consent to Salomon Smith Barney Inc. as the sole initial
     Broker-Dealer with respect to the Series 2001-1 Notes.

          (b) The Auction Agent may, at the written direction of an Authorized
     Issuer Officer, and with the approval of Salomon Smith Barney Inc., so long
     as Salomon Smith Barney Inc. is acting as a Broker-Dealer with respect to
     such series, enter into a Broker-Dealer Agreement with respect to one or
     more series of the Series 2001-1 Notes with any other person who requests
     to be selected to act as a Broker-Dealer. The Auction Agent shall have
     entered into a Broker-Dealer Agreement with each Broker-Dealer prior to the
     participation of any such Broker-Dealer in any Auction.

          (c) The Auction Agent shall terminate any Broker-Dealer Agreement as
     set forth therein at the direction of an Authorized Issuer Officer.

     2.10 Access to and Maintenance of Auction Records. The Auction Agent shall
afford to the Trustee, the Issuer and their respective agents, independent
public accountants and counsel access, at reasonable times during normal
business hours, to review and make extracts or copies (at no cost to the Auction
Agent) of all books, records, documents and other information concerning the
conduct and results of Auctions, provided that any such agent, accountant or
counsel shall furnish the Auction Agent with a letter from the Trustee or the
Issuer requesting that the Auction Agent afford such person access. The Auction
Agent shall maintain records relating to any Auction for a period of two years
after such Auction (or for such longer period requested by the Trustee or the
Issuer, not to exceed four years after each Auction), and such records shall, in
reasonable detail, accurately and fairly reflect the actions taken by the
Auction Agent hereunder. At the end of such period, the Auction Agent shall
deliver such records to the Trustee. The Trustee and the Issuer agree to keep
any information regarding the conduct and results of the Auctions, including,
without limitation, information regarding customers of any Broker-Dealer,
received from the Auction Agent in connection with this Auction Agent Agreement
confidential and shall not disclose such information or permit the disclosure of
such information without the prior written consent of the applicable
Broker-Dealer to anyone except such agent, accountant or counsel engaged to
audit or review the results of Auctions as permitted by this Section 2.10. Any
such agent, accountant or counsel, before having access to such information,
shall agree to keep such information confidential and not to disclose such
information or permit disclosure of such information without the prior written
consent of the applicable Broker-Dealer, except as may otherwise be required by
law.

     Section 3. Term of Agreement.

          (a) This Auction Agent Agreement shall terminate on the earlier to
     occur of (i) the satisfaction and discharge of the Third Supplemental
     Indenture with respect to the Series 2001-1 Notes or this Auction Agent
     Agreement and (ii) the date on which this Auction Agent Agreement is
     terminated in accordance with this Section 7.9. The Trustee may terminate
     this Auction Agent Agreement in accordance with Section 8(a) of the Third
     Supplemental Indenture. The Auction Agent may terminate this Auction Agent
     Agreement upon written notice to the Trustee, the Issuer and the Market
     Agent on the

                                      -10-
<PAGE>

     date specified in such notice, which date shall be no earlier than 90 days
     after the date of delivery of such notice. Notwithstanding the foregoing,
     the provisions of Section 2 hereof shall terminate upon the delivery of
     certificates representing Series 2001-1 Notes pursuant to Section 17 of the
     Third Supplemental Indenture. Notwithstanding the foregoing, the Auction
     Agent may terminate this Agreement without further notice if, within 25
     days after notifying in writing the Trustee, the Issuer and the Market
     Agent that it has not received payment of any Auction Agent Fee due it in
     accordance with the terms hereof, the Auction Agent does not receive such
     payment. Any resignation of the Auction Agent or termination of this
     Auction Agent Agreement, other than as described in the preceding sentence
     of this paragraph, shall not become effective until a successor Auction
     Agent has been appointed and acceptance of such appointment by such
     successor Auction Agent. The Issuer and the Trustee agree to diligently
     proceed to appoint a successor Auction Agent. However, if a successor
     Auction Agent shall not have been appointed within 60 days from the date of
     such notice of resignation, the resigning Auction Agent may petition any
     court of competent jurisdiction for the appointment of a successor Auction
     Agent.

          (b) Except as otherwise provided in this Section 3(b), the respective
     rights and duties of the Trustee, the Issuer and the Auction Agent under
     this Auction Agent Agreement shall cease upon termination of this Auction
     Agent Agreement. The Trustee's representations and warranties to the
     Auction Agent under Section 5 hereof, and the Issuer's obligations to the
     Auction Agent under Section 6.4 hereof and to the Broker-Dealers under
     Section 6.5 hereof, shall survive the termination of this Auction Agent
     Agreement subject to Section 4 hereof. Upon termination of this Auction
     Agent Agreement, the Auction Agent shall, upon request, promptly deliver to
     the Trustee copies of all books and records maintained by it with respect
     to Series 2001-1 Notes in connection with its duties hereunder.

     Section 4. Trustee. All privileges, rights and immunities given to the
Trustee in the Third Supplemental Indenture are hereby extended to and
applicable to the Trustee's obligations hereunder.

     Section 5. Representations and Warranties of the Trustee. The Trustee
hereby represents and warrants to the Auction Agent and the Issuer as follows:

     5.1 The Trustee (i) has been duly incorporated and is validly existing and
in good standing as a national banking association under the laws of the United
States, and (ii) has all necessary authority, approvals, consents (whether from
the Issuer or otherwise) to enter into and perform its obligations under this
Auction Agent Agreement. This Auction Agent Agreement has been duly and validly
authorized, executed and delivered by the Trustee and constitutes the legal,
valid, binding and enforceable obligation of the Trustee.

     5.2 Neither the execution, delivery and performance of this Auction Agent
Agreement, the consummation of the transactions contemplated hereby nor the
fulfillment of or compliance with the terms and conditions of this Auction Agent
Agreement will conflict with, violate or result in a breach of, the terms,
conditions or provisions of, or constitute a default under, any law or
regulation, any order or decree of any court or public authority having

                                      -11-
<PAGE>

jurisdiction over the Trustee, or any mortgage, indenture, contract, agreement
or undertaking to which the Trustee is a party or by which it is bound, or the
organizational documents pursuant to which the Trustee has been created and
under which it is operating.

     5.3 All approvals, consents and orders of any governmental authority,
legislative body, board, agency or commission having jurisdiction over the
Trustee which would constitute a condition precedent to or the absence of which
would materially adversely affect the due performance by the Trustee of its
obligations under this Auction Agent Agreement have been obtained.

     Section 6. The Auction Agent.

     6.1 Duties and Responsibilities.

          (a) The Auction Agent is acting solely as agent of the Issuer and owes
     no fiduciary duties to any person (other than the Issuer) by reason of this
     Auction Agent Agreement. The Auction Agent undertakes to perform such
     duties and only such duties as are specifically set forth in this Auction
     Agent Agreement, and no implied covenants or obligations shall be read into
     this Auction Agent Agreement by means of the provisions of the Third
     Supplemental Indenture or otherwise against the Auction Agent.

          (b) In the absence of bad faith or negligence on its part, the Auction
     Agent shall not be liable for any action taken, suffered or omitted or for
     any error of judgment made by it in the performance of its duties under
     this Auction Agent Agreement. The Auction Agent shall not be liable for any
     error of judgment made in good faith unless the Auction Agent shall have
     been negligent in ascertaining the pertinent facts.

          (c) The Auction Agent shall not agree to any amendment to a
     Broker-Dealer Agreement without the prior written consent of the Issuer,
     which consent shall not be unreasonably withheld.

     6.2 Rights of the Auction Agent.

          (a) The Auction Agent may rely and shall be protected in acting or
     refraining from acting upon any communication authorized hereby and upon
     any written instruction, notice, request, direction, consent, report,
     certificate, form of bond certificate or other instrument, paper or
     document believed by it to be genuine. The Auction Agent shall not be
     liable for acting upon any telephone communication authorized hereby which
     the Auction Agent believes in good faith to have been given by the Trustee
     or by a Broker-Dealer. The Auction Agent may record telephone
     communications with the Trustee or with Broker-Dealers or both.

          (b) The Auction Agent may consult with counsel of its choice, and the
     advice of such counsel shall be full and complete authorization and
     protection in respect of any action taken, suffered or omitted by it
     hereunder in good faith and in reliance thereon.

                                      -12-
<PAGE>

          (c) The Auction Agent shall not be required to advance, expend or risk
     its own funds or otherwise incur or become exposed to financial liability
     in the performance of its duties hereunder.

          (d) The Auction Agent may perform its duties and exercise its rights
     hereunder either directly or by or through agents or attorneys and shall
     not be responsible for any misconduct or negligence on the part of any
     agent or attorney appointed by it with due care hereunder.

     6.3 Auction Agent's Disclaimer. The Auction Agent makes no representation
as to the correctness of the recitals in this Auction Agent Agreement or the
Broker-Dealer Agreement or the validity or adequacy of the Series 2001-1 Notes.

     6.4 Compensation, Remedies and Indemnification.

          (a) With respect to each series of Series 2001-1 Notes, not later than
     12:00 noon, New York City time, on the first Interest Payment Date relating
     to such series, the Issuer, pursuant to Section 5(b) of the Third
     Supplemental Indenture, shall pay in arrears to the Auction Agent, solely
     from moneys available therefor in the Administration Fund, an amount in
     cash equal to the product of (i) the Auction Agent Fee Rate times (ii) a
     fraction, the numerator of which is the number of days from the Closing
     Date to such Interest Payment Date (or, if such series of Series 2001-1
     Notes ceased to be outstanding prior to such Interest Payment Date, the
     date on which such series ceased to be outstanding) and the denominator of
     which is 360, times (iii) the aggregate principal amount of Series 2001-1
     Notes of such series on the date of original issuance of the Series 2001-1
     Notes.

          (b) With respect to each series of Series 2001-1 Notes any of which
     were outstanding at any time during the related period, not later than
     12:00 noon, New York City time, on each Interest Payment Date thereafter
     relating to such series, the Issuer, pursuant to Section 5(b) of the Third
     Supplemental Indenture, shall pay in arrears to the Auction Agent, solely
     from moneys available therefor in the Administration Fund, an amount in
     cash equal to the product of (i) the Auction Agent Fee Rate times (ii) a
     fraction, the numerator of which is the number of days from the preceding
     Interest Payment Date to the current Interest Payment Date (or, if such
     series of Series 2001-1 Notes ceased to be outstanding prior to such
     current Interest Payment Date, the date on which such series ceased to be
     outstanding) and the denominator of which is 360, times (iii) the average
     principal amount of Series 2001-1 Notes of such series outstanding during
     the period between such preceding Interest Payment Date (or the Closing
     Date, in the case of the first Interest Payment Date) and the current
     Interest Payment Date (or, if such series of Series 2001-1 Notes ceased to
     be outstanding prior to such current Interest Payment Date, the date on
     which such series ceased to be outstanding) (together with the fee
     described in Section 6.4(a), the "Auction Agent Fee"). The Auction Agent
     Fee Rate may be adjusted from time to time with the approval of an
     Authorized Issuer Officer upon a written request of the Auction Agent
     delivered to the Trustee and the Issuer. The Initial Auction Agent Fee Rate
     shall be .02%. Any change in the Auction Agent Fee Rate shall be effective
     on the Auction Date next succeeding such change.

                                      -13-
<PAGE>

          (c) The Issuer shall reimburse the Auction Agent, upon its request,
     for all reasonable expenses, disbursements and advances, if any, incurred
     or made by the Auction Agent in accordance with any provision of this
     Auction Agent Agreement or the Broker-Dealer Agreements (including the
     reasonable compensation, expenses and disbursements of its agents and
     counsel) from amounts available therefor in the Administration Fund. The
     Issuer shall indemnify and hold harmless the Auction Agent for and against
     any loss, liability or expense incurred without negligence or bad faith on
     the Auction Agent's part, arising out of or in connection with the
     acceptance or administration of its agency under this Auction Agent
     Agreement and the Broker-Dealer Agreements, including the reasonable costs
     and expenses (including the reasonable fees and expenses of its counsel) of
     defending itself against any such claim or liability in connection with its
     exercise or performance of any of its duties hereunder and thereunder and
     of enforcing this indemnification provision; provided that the Issuer shall
     not indemnify the Auction Agent pursuant to this Section 6.4(c) for any
     fees and expenses incurred by the Auction Agent in the normal course of
     performing its duties hereunder and under the Broker-Dealer Agreements,
     such fees and expenses being payable as provided in Section 6.4(a) and (b)
     above.

     6.5 Compensation of the Broker-Dealers.

          (a) With respect to each series of the Series 2001-1 Notes, not later
     than 12:00 noon, New York City time, on each Interest Payment Date with
     respect to each Interest Period immediately following an Auction Date
     relating to such series, the Issuer, pursuant to Section 5(b) of the Third
     Supplemental Indenture, shall pay to the Auction Agent, solely from moneys
     available therefor in the Administration Fund, an amount in cash equal to
     the product of (i) the Broker-Dealer Fee Rate times (ii) a fraction, the
     numerator of which is the number of days from the preceding Interest
     Payment Date (or from the Closing Date, in the case of the first Interest
     Payment Date) to the current Interest Payment Date (or, if such series of
     Series 2001-1 Notes ceased to be outstanding prior to such current Interest
     Payment Date, the date on which such series ceased to be outstanding) and
     the denominator of which is 360, times (iii) the aggregate principal amount
     of Series 2001-1 Notes of such series outstanding at the close of business
     on the date of original issuance of the Series 2001-1 Notes (in the case of
     the initial Interest Payment Date) or at the close of business on the
     preceding Interest Payment Date (in the case of all succeeding Interest
     Payment Dates), as the case may be (the "Broker-Dealer Fee"). The Auction
     Agent shall advise the Issuer of the amount referred to in the preceding
     sentence not later than 4:00 p.m., New York City time, at least two
     Business Days preceding such Interest Payment Date. The Auction Agent shall
     apply such monies as set forth in Section 2.5 of the Broker-Dealer
     Agreements.

          (b) After retaining an amount equal to the Auction Agent Fee as
     provided in Section 6.4 above, the Auction Agent shall pay the
     Broker-Dealer Fee as provided in Section 6.5(a) above solely out of amounts
     received by the Auction Agent pursuant to Section 5(b) of the Third
     Supplemental Indenture. The Auction Agent shall advise the Issuer at least
     annually, at the request of an Authorized Issuer Officer, of the prevailing
     rate. The Broker-Dealer Fee Rate with respect to each series of the Series
     2001-1 Notes may be adjusted from time to time with the approval of an
     Authorized Issuer Officer

                                      -14-
<PAGE>

     upon a written request of the Auction Agent or Salomon Smith Barney Inc.,
     as the initial Broker-Dealer with respect to the Series 2001-1 Notes,
     delivered to the Trustee and the Issuer. The initial Broker-Dealer Fee Rate
     for all Series 2001-1 Notes shall be .25% per annum. If the Broker-Dealer
     Fee Rate is changed pursuant to the terms hereof, the Trustee shall notify
     the Auction Agent thereof. Any changes in the Broker-Dealer Fee Rate shall
     be effective on the Auction Date next succeeding such change.

     Section 7. Miscellaneous.

     7.1 Governing Law. This Auction Agent Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
agreements made and to be performed in such state, it being understood that the
corporate powers and legal capacity of the Issuer shall be construed and
interpreted in accordance with the laws of the State of Delaware.

     7.2 Communications. Except for (i) communications authorized to be made by
telephone pursuant to this Auction Agent Agreement or the Auction Procedures and
(ii) communications in connection with Auctions (other than those expressly
required to be in writing), all notices, requests and other communications to
any party hereunder shall be in writing (including facsimile or similar writing)
and shall be given to such party addressed to it at its address, or facsimile
number set below:

If to the Trustee, addressed:         U.S. Bank National Association
                                      141 North Main Avenue
                                      Sioux Falls, South Dakota  57117
                                      Attn:  Corporate Trust Department
                                      Telephone:  (605) 339-8725
                                      Facsimile:  (605) 333-3813

If to the Issuer, addressed:          Education Loans Incorporated
                                      105 First Avenue Southwest, Suite 200
                                      Aberdeen, South Dakota  57401
                                      Attn:  President
                                      Telephone:  (605) 622-4590
                                      Facsimile:  (605) 622-4547

If to the Auction Agent, addressed:   Bankers Trust Company
                                      Corporate Trust and Agency Group
                                      4 Albany Street
                                      New York, New York  10006
                                      Attn:  Auction Rate Securities
                                      Telephone:  (212) 250-6850
                                      Facsimile:  (212) 250-6215

                                      -15-
<PAGE>

If to the Market Agent, addressed:    Salomon Smith Barney Inc.
                                      388 Greenwich Street
                                      32nd Floor
                                      New York, New York  10013
                                      Attn:  Student Loan Finance Group
                                      Telephone:  (212) 816-9948
                                      Facsimile:  (212) 816-0598

or such other address, telephone or facsimile number as such party may hereafter
specify for such purpose by notice in writing to the other parties. Each such
notice, request or communication shall be effective when delivered at the
address specified herein. Communications shall be given on behalf of the Trustee
by an Authorized Trustee Representative, on behalf of the Auction Agent by an
Authorized Auction Agent Officer and on behalf of the Issuer by an Authorized
Issuer Officer.

     7.3 Entire Agreement. This Auction Agent Agreement contains the entire
agreement between the parties relating to the subject matter hereof, and there
are no other representations, endorsements, promises, agreements or
understandings, oral, written or inferred, between the parties relating to the
subject matter hereof.

     7.4 Benefits. Nothing herein, express or implied, shall give to any person,
other than the Trustee, acting on behalf of the beneficial owners of the Series
2001-1 Notes, the Auction Agent, the Issuer and their respective successors and
assigns, any benefit of any legal or equitable right, remedy or claim hereunder.

     7.5 Amendment; Waiver.

          (a) This Auction Agent Agreement shall not be deemed or construed to
     be modified, amended, rescinded, canceled or waived, in whole or in part,
     except by a written instrument signed by duly authorized representatives of
     the parties hereto.

          (b) The Trustee and the Issuer shall not enter into or approve any
     amendment of or supplement to the Third Supplemental Indenture which
     materially affects the Auction Agent's duties or obligations under the
     Third Supplemental Indenture without obtaining the prior written consent of
     the Auction Agent. The Trustee shall promptly notify the Auction Agent of
     any amendment of or supplement to the Third Supplemental Indenture, and
     shall provide a copy thereof to the Auction Agent upon request.

          (c) Failure of a party hereto to exercise any right or remedy
     hereunder in the event of a breach hereof by any other party shall not
     constitute a waiver of any such right or remedy with respect to any
     subsequent breach.

     7.6 Successors and Assigns. This Auction Agent Agreement shall be binding
upon, inure to the benefit of and be enforceable by the respective successors
and assigns of each of the Trustee, the Issuer and the Auction Agent. This
Auction Agent Agreement may not be assigned by any party hereto absent the prior
written consent of the other parties hereto, which consents shall not be
unreasonably withheld.

                                      -16-
<PAGE>

     7.7 Severability. If any clause, provision or section hereof shall be ruled
invalid or unenforceable by any court of competent jurisdiction, the invalidity
or unenforceability of such clause, provision or section shall not affect any of
the remaining clauses, provisions or sections hereof.

     7.8 Execution in Counterparts. This Auction Agent Agreement may be executed
in several counterparts, each of which shall be an original and all of which
shall constitute but one and the same instrument.

                                      -17-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Auction Agent
Agreement to be duly executed and delivered by their proper and duly authorized
officers as of the date first above written.

                                       EDUCATION LOANS INCORPORATED,
                                           as Issuer

                                       By: /s/ A. Norgrin Sanderson
                                           -------------------------------------
                                           Title:  President

                                       U.S. BANK NATIONAL ASSOCIATION,
                                           as Trustee

                                       By: /s/ Thomas Steele
                                           -------------------------------------
                                           Title:  Trust Officer

                                       BANKERS TRUST COMPANY,
                                           as Auction Agent

                                       By: /s/ Jody Sanchez
                                           -------------------------------------
                                           Title: Assistant Vice President
                                                  ------------------------------

                                      -18-
<PAGE>

                                    EXHIBIT A
                           TO AUCTION AGENT AGREEMENT

     LIST OF INITIAL BROKER-DEALERS WITH RESPECT TO THE SERIES 2001-1 NOTES
     ----------------------------------------------------------------------

Salomon Smith Barney Inc.

                                      A-1
<PAGE>

                                    EXHIBIT B
                           TO AUCTION AGENT AGREEMENT

                             BROKER-DEALER AGREEMENT
                             -----------------------

                                      B-1
<PAGE>

                                    EXHIBIT C
                           TO AUCTION AGENT AGREEMENT

                                NOTICE OF RATINGS
                                -----------------

                          EDUCATION LOANS INCORPORATED
                         STUDENT LOAN ASSET-BACKED NOTES
                           SENIOR SERIES 2001-1A AND B
                           SUBORDINATE SERIES 2001-1C

     NOTICE IS HEREBY GIVEN to the Auction Agent by the Issuer pursuant to
Section 2.3(a) of the Auction Agent Agreement that:

     1.   as of the date of this notice the rating by Moody's on the captioned
          Senior Series 2001-1 Notes is ______ [and such rating is [*"Aa3"or
          higher/lower than "Aa3"]]**;

     2.   as of the date of this notice the rating by Fitch on the captioned
          Senior Series 2001-1 Notes is _____ [and such rating is [*"AA-" or
          higher] [lower than "AA-"]]**;

     3.   as of the date of this notice the rating by Moody's on the captioned
          Subordinate Series 2001-1 Notes is ______ [and such rating is
          [*"______"or higher/lower than "_______"]]**; and

     4.   as of the date of this notice the rating by Fitch on the captioned
          Subordinate Series 2001-1 Notes is _____ [and such rating is
          [*"_______" or higher] [lower than "_______"]]**.

     The Auction Agent may rely on such ratings for all purposes of the Third
Supplemental Indenture, including determination of the Maximum Auction Rate
thereunder, from the date hereof until further notice from the undersigned
Education Loans Incorporated.

                                       EDUCATION LOANS INCORPORATED

                                       By:
                                           -------------------------------------
                                           Title:
                                                   -----------------------------
                                           Date:
                                                 -------------------------------

*    Choose one.

**   The information in the outer brackets will be used as applicable whenever
     the Moody's rating is not equal to "Aa3" and/or the Fitch rating is not
     equal to "AA-."

                                      C-1
<PAGE>

                                    EXHIBIT D
                           TO AUCTION AGENT AGREEMENT

                    NOTICE OF SERIES 2001-1 NOTES OUTSTANDING
                    -----------------------------------------

                          EDUCATION LOANS INCORPORATED
                                  STUDENT LOAN
                               ASSET-BACKED NOTES
                            SENIOR SERIES 2001-1A[B]
                          [SUBORDINATE SERIES 2001-1C]

     NOTICE IS HEREBY GIVEN that $_________ aggregate principal amount of Series
2001-1A[B][C] Notes were outstanding at the close of business on the immediately
preceding Regular Record Date. Such aggregate principal amount of Series
2001-1A[B][C] Notes, less $_________ aggregate principal amount of Series
2001-1A[B][C] Notes to be redeemed by the Issuer pursuant to the Third
Supplemental Indenture, for a net aggregate principal amount of Series
2001-1A[B][C] Notes of $______________, will be available on the next Auction
scheduled to be held on _________________.

     Terms used herein have the meanings set forth in the Third Supplemental
Indenture relating to the above-referenced issue.

                                       U.S. BANK NATIONAL ASSOCIATION,
                                         as Trustee

                                       By:
                                           -------------------------------------
                                           Title:
                                                   -----------------------------
                                           Date:
                                                 -------------------------------

                                      D-1
<PAGE>

                                   EXHIBIT E
                           TO AUCTION AGENT AGREEMENT

                            NOTICE OF FEE RATE CHANGE
                            -------------------------

                          EDUCATION LOANS INCORPORATED
                                  STUDENT LOAN
                               ASSET-BACKED NOTES
                          SENIOR SERIES 2001-1A AND [B]
                           SUBORDINATE SERIES 2001-1C

     NOTICE IS HEREBY GIVEN that the [Auction Agent Fee Rate] [Broker-Dealer Fee
Rate with respect to the Series 2001-1___ Notes] has been changed in accordance
with Section [6.4(b)] [6.5(b)] of the Auction Agent Agreement. The new [Auction
Agent Fee Rate] [Broker-Dealer Fee Rate with respect to the Series 2001-1___
Notes] shall be ______% per annum.

     Terms used herein have the meanings set forth in the Third Supplemental
Indenture relating to the above-referenced issue.

                                       BANKERS TRUST COMPANY,
                                           as Auction Agent

                                       By:
                                           -------------------------------------
                                           Title:
                                                  ------------------------------
                                           Date:
                                                 -------------------------------

APPROVED:

EDUCATION LOANS INCORPORATED

By:
    ------------------------------
  Title:
         -------------------------
  Date:
        --------------------------

                                       E-1
<PAGE>

                                    EXHIBIT F
                           TO AUCTION AGENT AGREEMENT

                           NOTICE OF A PAYMENT DEFAULT
                           ---------------------------

                          EDUCATION LOANS INCORPORATED
                                  STUDENT LOAN
                               ASSET-BACKED NOTES
                            SENIOR SERIES 2001-1A[B]
                          [SUBORDINATE SERIES 2001-1C]

     NOTICE IS HEREBY GIVEN that a Payment Default has occurred and not been
cured with respect to the Series 2001-1___ Notes. Determination of the Series
2001-1 Note Auction Rate on the Series 2001-1 Notes pursuant to the Auction
Procedures will be suspended. The Series 2001-1 Note Auction Rate on each series
of the Series 2001-1 Notes for each Auction Period commencing after the date of
Payment Default will equal the Non-Payment Rate (as to each such series with
respect to which a Payment Default exists) or the Net Loan Rate (as to all other
series), as the case may be, as it is determined by the Trustee on the first day
of such Auction Period.

     Terms used herein have the meanings set forth in the Third Supplemental
Indenture relating to the above-referenced issue.

                                       BANKERS TRUST COMPANY,
                                           as Auction Agent

                                       By:
                                           -------------------------------------
                                           Title:
                                                  ------------------------------
                                           Date:
                                                 -------------------------------

                                      F-1
<PAGE>

                                    EXHIBIT G
                           TO AUCTION AGENT AGREEMENT

                              SETTLEMENT PROCEDURES
                              ---------------------

     If not otherwise defined below, capitalized terms used herein shall have
the meanings given such terms in the Third Supplemental Indenture. These
Settlement Procedures apply separately to each series of Series 2001-1 Notes.

          (a) Not later than (1) 3:00 p.m., if the Series 2001-1 Note Auction
     Rate is the Auction Rate, or (2) 4:00 p.m., if the Series 2001-1 Note
     Auction Rate is the Net Loan Rate, on each Auction Date, the Auction Agent
     shall notify by telephone each Broker-Dealer that participated in the
     Auction held on such Auction Date and submitted an Order on behalf of an
     Existing Holder or Potential Holder of:

               (i) the Series 2001-1 Note Auction Rate fixed for the next
          Interest Period;

               (ii) whether there were Sufficient Bids in such Auction;

               (iii) if such Broker-Dealer (a "Seller's Broker-Dealer")
          submitted Bids or Sell Orders on behalf of an Existing Holder, whether
          such Bid or Sell Order was accepted or rejected, in whole or in part,
          and the principal amount of Series 2001-1 Notes, if any, to be sold by
          such Existing Holder;

               (iv) if such Broker-Dealer (a "Buyer's Broker-Dealer") submitted
          a Bid on behalf of a Potential Holder, whether such Bid was accepted
          or rejected, in whole or in part, and the principal amount of Series
          2001-1 Notes, if any, to be purchased by such Potential Holder;

               (v) If the aggregate principal amount of Series 2001-1 Notes to
          be sold by all Existing Holders on whose behalf such Seller's
          Broker-Dealer submitted Bids or Sell Orders exceeds the aggregate
          principal amount of Series 2001-1 Notes to be purchased by all
          Potential Holders on whose behalf such Buyer's Broker-Dealer submitted
          a Bid, the name or names of one or more Buyer's Broker-Dealers (and
          the name of the Participant, if any, of each such Buyer's
          Broker-Dealer) acting for one or more purchasers of such excess
          principal amount of Series 2001-1 Notes and the principal amount of
          Series 2001-1 Notes to be purchased from one or more Existing Holders
          on whose behalf such Seller's Broker-Dealer acted by one or more
          Potential Holders on whose behalf each of such Buyer's Broker-Dealers
          acted;

               (vi) if the aggregate principal amount of Series 2001-1 Notes to
          be purchased by all Potential Holders on whose behalf such Buyer's
          Broker-Dealer submitted a Bid exceeds the aggregate principal amount
          of Series 2001-1 Notes to be sold by all Existing Holders on whose
          behalf such Seller's Broker-Dealer submitted a Bid or a Sell Order,
          the name or names of one or more Seller's Broker-Dealers (and the name
          of the Participant, if any, of each such Seller's

                                      G-1
<PAGE>

          Broker-Dealer) acting for one or more sellers of such excess principal
          amount of Series 2001-1 Notes and the principal amount of Series
          2001-1 Notes to be sold to one or more Potential Holders on whose
          behalf such Buyer's Broker-Dealer acted by one or more Existing
          Holders on whose behalf each of such Seller's Broker-Dealers acted;
          and

               (vii) the Auction Date for the next succeeding Auction.

          (b) On each Auction Date, each Broker-Dealer that submitted an Order
     on behalf of any Existing Holder or Potential Holder shall:

               (i) advise each Existing Holder and Potential Holder on whose
          behalf such Broker-Dealer submitted a Bid or Sell Order in the Auction
          on such Auction Date whether such Bid or Sell Order was accepted or
          rejected, in whole or in part;

               (ii) in the case of a Broker-Dealer that is a Buyer's
          Broker-Dealer, advise each Potential Holder on whose behalf such
          Buyer's Broker-Dealer submitted a Bid that was accepted, in whole or
          in part, to instruct such Potential Holder's Participant to pay such
          Buyer's Broker-Dealer (or its Participant) through the Securities
          Depository the amount necessary to purchase the principal amount of
          Series 2001-1 Notes to be purchased pursuant to such Bid against
          receipt of such Series 2001-1 Notes;

               (iii) in the case of a Broker-Dealer that is a Seller's
          Broker-Dealer, instruct each Existing Holder on whose behalf such
          Seller's Broker-Dealer submitted a Sell Order that was accepted, in
          whole or in part, or a Bid that was accepted, in whole or in part, to
          instruct such Existing Holder's Participant to deliver to such
          Seller's Broker-Dealer (or its Participant) through the Securities
          Depository the principal amount of Series 2001-1 Notes to be sold
          pursuant to such Order against payment therefor;

               (iv) advise each Existing Holder on whose behalf such
          Broker-Dealer submitted an Order and each Potential Holder on whose
          behalf such Broker-Dealer submitted a Bid of the Series 2001-1 Note
          Auction Rate for the next Interest Period;

               (v) advise each Existing Holder on whose behalf such
          Broker-Dealer submitted an Order of the next Auction Date; and

               (vi) advise each Potential Holder on whose behalf such
          Broker-Dealer submitted a Bid that was accepted, in whole or in part,
          of the next Auction Date.

          (c) On the basis of the information provided to it pursuant to
     paragraph (a) above, each Broker-Dealer that submitted a Bid or Sell Order
     in an Auction is required to allocate any funds received by it in
     connection with such Auction pursuant to paragraph (b)(ii) above, and any
     Series 2001-1 Notes received by it in connection with such Auction pursuant
     to paragraph (b)(iii) above among the Potential Holders, if any, on whose
     behalf such Broker-Dealer submitted Bids, the Existing Holders, if any, on
     whose

                                      G-2
<PAGE>

     behalf such Broker-Dealer submitted Bids or Sell Orders in such Auction,
     and any Broker-Dealers identified to it by the Auction Agent following such
     Auction pursuant to paragraph (a)(v) or (a)(vi) above.

          (d) On each Auction Date:

               (i) each Potential Holder and Existing Holder with an Order in
          the Auction on such Auction Date shall instruct its Participant as
          provided in paragraph (b)(ii) or (b)(iii) above, as the case may be;

               (ii) each Seller's Broker-Dealer that is not a Participant of the
          Securities Depository shall instruct its Participant to deliver such
          Series 2001-1 Notes through the Securities Depository to a Buyer's
          Broker-Dealer (or its Participant) identified to such Seller's
          Broker-Dealer pursuant to paragraph (a)(v) above against payment
          therefor; and

               (iii) each Buyer's Broker-Dealer that is not a Participant in the
          Securities Depository shall instruct its Participant to pay through
          the Securities Depository to Seller's Broker-Dealer (or its
          Participant) identified following such Auction pursuant to (a)(vi)
          above in the amount necessary to purchase Series 2001-1 Notes to be
          purchased pursuant to paragraph (b)(ii) above against receipt of such
          Series 2001-1 Notes.

          (e) On the Business Date following each Auction Date:

               (i) each Participant for a Bidder in the Auction on such Auction
          Date referred to in paragraph (d)(i) above shall instruct the
          Securities Depository to execute the transactions described under
          paragraph (b)(ii) or (b)(iii) above for such Auction, and the
          Securities Depository shall execute such transactions;

               (ii) each Seller's Broker-Dealer or its Participant shall
          instruct the Securities Depository to execute the transactions
          described in paragraph (d)(ii) above for such Auction, and the
          Securities Depository shall execute such transactions; and

               (iii) each Buyer's Broker-Dealer or its Participant shall
          instruct the Securities Depository to execute the transactions
          described in paragraph (d)(iii) above for such Auction, and the
          Securities Depository shall execute such transactions.

          (f) If an Existing Holder selling Series 2001-1 Notes in an Auction
     fails to deliver such Series 2001-1 Notes (by authorized book-entry), a
     Broker-Dealer may deliver to the Potential Holder on behalf of which it
     submitted a Bid that was accepted a principal amount of Series 2001-1 Notes
     that is less than the principal amount of Series 2001-1 Notes that
     otherwise was to be purchased by such Potential Holder. In such event, the
     principal amount of Series 2001-1 Notes to be so delivered shall be
     determined solely by such Broker-Dealer (but only in Authorized
     Denominations). Delivery of such lesser principal amount of Series 2001-1
     Notes shall constitute good delivery.

                                      G-3
<PAGE>

     Notwithstanding the foregoing terms of this paragraph (f), any delivery or
     nondelivery of Series 2001-1 Notes which shall represent any departure from
     the results of an Auction, as determined by the Auction Agent, shall be of
     no effect unless and until the Auction Agent shall have been notified of
     such delivery or nondelivery in accordance with the provisions of the
     Auction Agent Agreement and the Broker-Dealer Agreements. Neither the
     Trustee nor the Auction Agent will have any responsibility or liability
     with respect to the failure of a Potential Holder, Existing Holder or their
     respective Broker-Dealer or Participant to take delivery of or deliver, as
     the case may be, the principal amount of Series 2001-1 Notes purchased or
     sold pursuant to an Auction or otherwise.

                                      G-4
<PAGE>

                                    EXHIBIT H
                           TO AUCTION AGENT AGREEMENT

                    NOTICE OF CONTINUATION OF AUCTION PERIOD
                    ----------------------------------------

                          EDUCATION LOANS INCORPORATED
                                  STUDENT LOAN
                               ASSET-BACKED NOTES
                            SENIOR SERIES 2001-1A[B]
                          [SUBORDINATE SERIES 2001-1C]

     NOTICE IS HEREBY GIVEN that a condition for the establishment of a change
in the length of one or more Auction Periods for the captioned Series 2001-1
Notes has not been met. An Auction will therefor be held on the next Auction
Date (___________________) and the length of such Auction Period shall remain an
Auction Period of _______ days.

                                       BANKERS TRUST COMPANY,
                                           as Auction Agent

                                       By:
                                           -------------------------------------
                                           Title:
                                                  ------------------------------
                                           Date:
                                                 -------------------------------

                                      H-1
<PAGE>

                                    EXHIBIT I
                           TO AUCTION AGENT AGREEMENT

                    NOTICE OF SERIES 2001-1 NOTE AUCTION RATE
                    -----------------------------------------

                          EDUCATION LOANS INCORPORATED
                                  STUDENT LOAN
                               ASSET-BACKED NOTES
                            SENIOR SERIES 2001-1A[B]
                          [SUBORDINATE SERIES 2001-1C]

     NOTICE IS HEREBY GIVEN that [the Corporation Certificate and the Trustee
written statements, if any,] [Sufficient Bids] necessary for the establishment
of a change in the length of one or more Auction Periods for the captioned
Series 2001-1 Notes have not been provided. The Series 2001-1 Note Auction Rate
for the Auction Period commencing on ______________ shall be the [Maximum
Auction Rate] [Net Loan Rate] and such Auction Period shall remain an Auction
Period of _____ days.

                                       BANKERS TRUST COMPANY,
                                           as Auction Agent

                                       By:
                                           -------------------------------------
                                           Title:
                                                  ------------------------------
                                           Date:
                                                 -------------------------------

                                      I-1

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