Document:

<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 December 1, 2000

                                ______________

                                  Relating to

                                 $130,200,000
                         EDUCATION LOANS INCORPORATED
                        STUDENT LOAN ASSET-BACKED NOTES
                          SENIOR SERIES 2000-1A AND B
                          SUBORDINATE SERIES 2000-1C

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

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                           Page
                                                                                                           ----
<S>                                                                                                        <C>
Section 1.      Definitions and Rules of Construction...................................................      2
         1.1    Terms Defined by Reference to Second Supplemental
                    Indenture...........................................................................      2
         1.2    Terms Defined Herein....................................................................      2
         1.3    Rules of Construction...................................................................      4
Section 2.      The Auction.............................................................................      4
         2.1    Interest Rate on Series 2000-1 Notes;
                    Incorporation by Reference of Auction Procedures and
                    Settlement Procedures...............................................................      4
         2.2    Preparation of Each Auction; Maintenance of
                    Existing Holder Registry............................................................      5
         2.3    All Hold Rates, Maximum Auction Rates, Net
                    Loan Rate, One-Month LIBOR and Three-Month LIBOR....................................      7
         2.4    Auction Schedule........................................................................      8
         2.5    Changes in Auction Periods or Auction Date..............................................      9
         2.6    Notice of Fee Rate Change...............................................................     10
         2.7    Notices to Existing Holders.............................................................     10
         2.8    Payment Default.........................................................................     10
         2.9    Broker-Dealers..........................................................................     10
         2.10   Access to and Maintenance of Auction Records............................................     11

Section 3.      Term of Agreement.......................................................................     11

Section 4.      Trustee.................................................................................     12

Section 5.      Representations and Warranties of the Trustee...........................................     12

Section 6.      The Auction Agent.......................................................................     13
         6.1    Duties and Responsibilities.............................................................     13
         6.2    Rights of the Auction Agent.............................................................     13
         6.3    Auction Agent's Disclaimer..............................................................     14
         6.4    Compensation, Remedies and Indemnification..............................................     14
         6.5    Compensation of the Broker-Dealers......................................................     15

Section 7.      Miscellaneous...........................................................................     16
         7.1    Governing Law...........................................................................     16
         7.2    Communications..........................................................................     16
         7.3    Entire Agreement........................................................................     17
</TABLE>

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<TABLE>
<S>                                                                                                        <C>
         7.4    Benefits................................................................................     18
         7.5    Amendment; Waiver.......................................................................     18
         7.6    Successors and Assigns..................................................................     18
         7.7    Severability............................................................................     18
         7.8    Execution in Counterparts...............................................................     18

Exhibits
--------

Exhibit A    --   List of Initial Broker-Dealers for the Series 2000-1
Exhibit B    --   Broker-Dealer Agreement
Exhibit C    --   Notice of Ratings
Exhibit D    --   Notice of Series 2000-1 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 2000-1 Note Auction Rate
</TABLE>

                                     -ii-
<PAGE>

          THIS AUCTION AGENT AGREEMENT, dated as of December 1, 2000 (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 Second 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 $130,200,000 aggregate principal amount of its Student Loan Asset-Backed
Notes, Series 2000- 1, consisting of three series designated Student Loan Asset-
Backed Notes, Senior Series 2000- 1A (the "Series 2000-1A Notes"), Student Loan
Asset-Backed Notes, Senior Series 2000-1B (the "Series 2000-1B Notes"), and
Student Loan Asset-Backed Notes, Subordinate Series 2000-1C (the "Series 2000-1C
Notes" and, together with the Series 2000-1A Notes and the Series 2000-1B Notes,
the " Series 2000-1 Notes"). The Series 2000-1 Notes are being issued under the
Second Supplemental Indenture of Trust, dated as of December 1, 2000 (the
"Second Supplemental Indenture"), by and between the Issuer and the Trustee and
executed pursuant to an Indenture of Trust, dated as of December 1, 1999 (the
"Original Indenture"), by and between the Trustee and the Issuer; and

          WHEREAS, pursuant to Section 8 of the Second 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 Second 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 Second Supplemental
                    -------------------------------------------------
Indenture. Capitalized terms used herein and not otherwise defined herein shall
---------
have the meanings given such terms in the Second 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 Second 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.

                                      -2-
<PAGE>

               "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.

               "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 2000-1 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.

                                      -3-
<PAGE>

          1.3  Rules of Construction. Unless the context or use indicates
               ---------------------
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.

          (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 2000-1A
     Notes, the Series 2000- 1B Notes and the Series 2000-1C Notes, but
     separately in each case. References to "Series 2000-1 Notes" shall, unless
     the context clearly contemplates a reference to all the Series 2000-1
     Notes, be deemed to refer only to a particular series of Series 2000-1
     Notes.

          Section 2.  The Auction.
                      -----------

          2.1  Interest Rate on Series 2000-1 Notes; Incorporation by Reference
               ----------------------------------------------------------------
of Auction Procedures and Settlement Procedures.
-----------------------------------------------

          (a)  During the Initial Interest Period, each of the Series 2000-1A
     Notes, the Series 2000-1B Notes and the Series 2000-1C Notes shall bear
     interest at the Series 2000-1 Note Initial Interest Rate for such series.
     Thereafter, the Series 2000-1 Notes shall bear interest at the Series 2000-
     1 Note Interest Rate based on an Interest Period that shall be an Auction
     Period. The Series 2000-1 Note Auction Rate on each series of the Series
     2000- 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 Second Supplemental Indenture (not to exceed 18% per
     annum). Pursuant to Section 8 of the Second 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 2000-1 Note Auction Rate for

                                      -4-
<PAGE>

     each series of the Series 2000-1 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 2000-1 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-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 participa tion 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 2000-1 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 2000-
          1 Notes. Pursuant to its Broker-Dealer Agreement, Salomon Smith Barney
          Inc., as the sole initial Broker-Dealer with respect to the Series
          2000-1 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 2000-1 Notes for purposes of
          dealing with the Auction Agent in connection with

                                      -5-
<PAGE>

          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 2000-1 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 2000-1 Notes Outstanding. In the event the Auction Agent
          receives from the Trustee written notice of any partial redemption of
          any Series 2000-1 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 2000-1 Notes are to be redeemed) the
          aggregate principal amount of such Series 2000-1 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 of the principal amount of
          Series 2000-1 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 2000-1 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 2000-1 Notes in an Auction of the failure of such Series 2000-1
          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 2000-1 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-

                                      -6-
<PAGE>

     Dealers believe are Existing Holders of the Series 2000-1 Notes and the
     aggregate principal amount of Series 2000-1 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 2000-1 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 Second Supplemental Indenture.
     Not later than 9:30 a.m., New York City 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 2000-1 Notes by
     Moody's and Fitch substantially in the form of the Notice of Ratings.
     Thereafter, if there is a change in one of 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 2000-1 Note Auction Rate for
          the next succeeding Auction Period shall be the Net Loan Rate.

                                      -7-
<PAGE>

                (ii)  If the ownership of the Series 2000-1 Notes is no longer
          maintained in Book-Entry Form by the Securities Depository, no further
          Auctions shall be held and the Series 2000-1 Note Auction Rate for
          each Interest Period commencing after the delivery of certificated
          Series 2000-1 Notes pursuant to Section 17 of the Second 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 Second Supplemental Indenture.

                (iii) If a Payment Default shall have occurred with respect to a
          series of Series 2000-1 Notes, the Series 2000-1 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 Second Supplemental Indenture. The Series
          2000-1 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.

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 Second
                                  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 Second
                                  Supplemental Indenture. The Submission
                                  Deadline is 12:30 p.m., New York City time.

                                      -8-
<PAGE>

Not earlier than                  The Auction Agent makes the determination
12:30 p.m.                        pursuant to Section 4(c)(i) of the Second
                                  Supplemental Indenture. Submitted Bids and
                                  Submitted Sell Orders are accepted and
                                  rejected in whole or in part and principal
                                  amount of Series 2000-1 Notes is allocated as
                                  provided in Section 4(d) of the Second
                                  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
          -
4:00 p.m./2//                     as provided in Section 4(c)(ii) of the Second
          -
                                  Supplemental Indenture.

___________________
/1//  If the Series 2000-1 Note Auction Rate is the Auction Rate.
 -
/2//  If the Series 2000-1 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 Second 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 Second 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.

               (iii) If, after delivery to the Auction Agent of the notice
          referred to in Section 10(a) of the Second Supplemental Indenture, the
          Auction Agent fails to receive the certificate referred to in Section
          10(c) of the Second 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 Second Supplemental Indenture, Sufficient Bids
          are not received by the Auction Agent by

                                      -9-
<PAGE>

          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 Second 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 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 2000-1 Notes.

          (b)  The Auction Agent may, at the written direction of an Authorized
     Issuer Officer, and with the approval of Salomon Smith

                                      -10-
<PAGE>

     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 2000-1 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 Second Supplemental
     Indenture with respect to the Series 2000-1 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 Second
     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 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 2000-1 Notes

                                      -11-
<PAGE>

     pursuant to Section 17 of the Second 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 2000-1 Notes in connection with its duties hereunder.

          Section 4.  Trustee.  All privileges, rights and immunities given to
                      -------
the Trustee in the Second 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

                                      -12-
<PAGE>

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 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 Second
     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-

                                      -13-
<PAGE>

     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.

          (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 2000-1 Notes.

          6.4  Compensation, Remedies and Indemnification.
               ------------------------------------------

          (a)  With respect to each series of Series 2000-1 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 Second
     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 2000-1
     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 2000-1
     Notes of such series on the date of original issuance of the Series 2000-1
     Notes.

          (b)  With respect to each series of Series 2000-1 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 Second
     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 2000-1 Notes ceased to be outstanding prior to such
     current Interest Payment Date, the date on

                                      -14-
<PAGE>

     which such series ceased to be outstanding) and the denominator of which is
     360, times (iii) the average principal amount of Series 2000-1 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 2000-1 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.

          (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 2000-1 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 Second
     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
     2000-1 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

                                      -15-
<PAGE>

     2000-1 Notes of such series outstanding at the close of business on the
     date of original issuance of the Series 2000-1 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 Second
     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
     2000-1 Notes may be adjusted from time to time with the approval of an
     Authorized Issuer Officer upon a written request of the Auction Agent or
     Salomon Smith Barney Inc., as the initial Broker-Dealer with respect to the
     Series 2000-1 Notes, delivered to the Trustee and the Issuer. The initial
     Broker-Dealer Fee Rate for all Series 2000-1 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 South Dakota.

          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:

                                      -16-
<PAGE>

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

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

                                      -17-
<PAGE>

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 2000-1 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 Second Supplemental Indenture which
     materially affects the Auction Agent's duties or obligations under the
     Second 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 Second 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.

          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.

                                      -18-
<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: Associate
                                                 -------------------------------

                                      -19-
<PAGE>

                                   EXHIBIT A
                          TO AUCTION AGENT AGREEMENT
                          --------------------------

    LIST OF INITIAL BROKER-DEALERS WITH RESPECT TO THE SERIES 2000-1 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 2000-1A AND B
                          SUBORDINATE SERIES 2000-1C

                  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 2000-1 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 2000-1 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 2000-1 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 2000-1 Notes is
                           _____ [and such rating is [*"_______ " or higher]
                           [lower than "_________ "]]**.

                  The Auction Agent may rely on such ratings for all purposes of
the Second 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 2000-1 NOTES OUTSTANDING
                   -----------------------------------------

                         EDUCATION LOANS INCORPORATED
                                 STUDENT LOAN
                              ASSET-BACKED NOTES
                           SENIOR SERIES 2000-1A[B]
                         [SUBORDINATE SERIES 2000-1C]

                  NOTICE IS HEREBY GIVEN that $_________ aggregate principal
amount of Series 2000-1A[B][C] Notes were outstanding at the close of business
on the immediately preceding Regular Record Date. Such aggregate principal
amount of Series 2000-1A[B][C] Notes, less $_________ aggregate principal amount
of Series 2000-1A[B][C] Notes to be redeemed by the Issuer pursuant to the
Second Supplemental Indenture, for a net aggregate principal amount of Series
2000-1A[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 Second
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 2000-1A AND [B]
                          SUBORDINATE SERIES 2000-1C

                  NOTICE IS HEREBY GIVEN that the [Auction Agent Fee Rate]
[Broker-Dealer Fee Rate with respect to the Series 2000-1 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 2000-1___Notes] shall be ______% per annum.

                  Terms used herein have the meanings set forth in the Second
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 2000-1A[B]
                         [SUBORDINATE SERIES 2000-1C]

                  NOTICE IS HEREBY GIVEN that a Payment Default has occurred and
not been cured with respect to the Series 2000-1___Notes. Determination of the
Series 2000-1 Note Auction Rate on the Series 2000-1 Notes pursuant to the
Auction Procedures will be suspended. The Series 2000-1 Note Auction Rate on
each series of the Series 2000-1 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 Second
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 Second Supplemental Indenture.
These Settlement Procedures apply separately to each series of Series 2000-1
Notes.

                  (a) Not later than (1) 3:00 p.m., if the Series 2000-1 Note
         Auction Rate is the Auction Rate, or (2) 4:00 p.m., if the Series
         2000-1 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 2000-1 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 2000- 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 2000-1 Notes, if
                  any, to be purchased by such Potential Holder;

                           (v) If the aggregate principal amount of Series 2000-
                  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 2000-1 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 2000-1 Notes and the principal amount of
                  Series 2000-1 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
                  2000-1 Notes to be purchased by all Potential Holders on whose
                  behalf such Buyer's Broker-Dealer

                                      G-1
<PAGE>

                  submitted a Bid exceeds the aggregate principal amount of
                  Series 2000-1 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 Broker-Dealer) acting for one or more
                  sellers of such excess principal amount of Series 2000-1 Notes
                  and the principal amount of Series 2000-1 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 2000-1
                  Notes to be purchased pursuant to such Bid against receipt of
                  such Series 2000-1 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 2000-1 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
                  2000-1 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.

                                      G-2
<PAGE>

                  (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 2000-1 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 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 2000-1 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 2000-1 Notes to be purchased
                  pursuant to paragraph (b)(ii) above against receipt of such
                  Series 2000-1 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.

                                      G-3
<PAGE>

                  (f) If an Existing Holder selling Series 2000-1 Notes in an
         Auction fails to deliver such Series 2000-1 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 2000-1 Notes that is less than the principal amount of Series
         2000-1 Notes that otherwise was to be purchased by such Potential
         Holder. In such event, the principal amount of Series 2000-1 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 2000-1 Notes shall constitute good delivery.
         Notwithstanding the foregoing terms of this paragraph (f), any delivery
         or nondelivery of Series 2000-1 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 2000-1 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 2000-1A[B]
                         [SUBORDINATE SERIES 2000-1C]

                  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 2000-1 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 2000-1 NOTE AUCTION RATE
                   -----------------------------------------

                         EDUCATION LOANS INCORPORATED
                                 STUDENT LOAN
                              ASSET-BACKED NOTES
                           SENIOR SERIES 2000-1A[B]
                         [SUBORDINATE SERIES 2000-1C]

                  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 2000-1 Notes have not been provided. The Series 2000-1 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<PAGE>

                                                                     EXHIBIT 4.4

                            Broker-Dealer Agreement dated as of December 1, 2000

                            BROKER-DEALER AGREEMENT

                                    BETWEEN

                            BANKERS TRUST COMPANY,

                               AS AUCTION AGENT

                                      AND

                          SALOMON SMITH BARNEY INC.,
                               AS BROKER-DEALER

                         DATED AS OF DECEMBER 1, 2000

                                  RELATING TO

                         EDUCATION LOANS INCORPORATED
                        STUDENT LOAN ASSET-BACKED NOTES
                          SENIOR SERIES 2000-1A AND B
                                      AND
                          SUBORDINATE SERIES 2000-1C
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

                            BROKER-DEALER AGREEMENT

          This BROKER-DEALER AGREEMENT (the "Broker Dealer Agreement"), dated as
of December 1, 2000, is by and between Bankers Trust Company, a New York banking
corporation (together with its successors and assigns, the "Auction Agent"),
pursuant to authority granted to it in the Auction Agent Agreement, defined
below, acting not in its individual capacity, but solely as agent for Education
Loans Incorporated (the "Corporation"), a Delaware corporation and SALOMON SMITH
BARNEY INC. (together with its respective successors and assigns, the "Broker-
Dealer").

                                   RECITALS

          The Corporation proposes to cause the Trustee, defined below, to
authenticate and deliver $54,100,000 aggregate principal amount of its Student
Loan Asset-Backed Notes, Senior Series 2000-1A (the "Series 2000-1A Notes"),
$54,100,000 aggregate principal amount of its Student Loan Asset-Backed Notes,
Senior Series 2000-1B (the "Series 2000-1B Notes", and together with the Series
2000-1A Notes, the "Series 2000-1 Senior Notes"), and $22,000,000 aggregate
principal amount of its Student Loan Asset-Backed Notes, Subordinate Series
2000-1C (the "Series 2000-1C Notes", and together with the Series 2000-1 Senior
Notes, the "Series 2000-1 Notes"). The Series 2000-1 Notes are being issued
under the Second Supplemental Indenture of Trust, dated as of December 1, 2000
(the "Second Supplemental Indenture"), executed in accordance with the Indenture
of Trust, dated as of December 1, 1999 (the "Indenture"), each between the
Corporation and U.S. Bank National Association, Minneapolis, Minnesota (together
with its successors and assigns, the "Trustee"). The Series 2000-1 Notes are
being issued as adjustable rate securities.

          The Second Supplemental Indenture provides that the Series 2000-1 Note
Auction Rate for each Interest Period after the Initial Interest Period shall
equal the lesser of the Net Loan Rate and the Auction Rate, but in no event
shall exceed 18% per annum with respect to the Series 2000-1 Notes.

          Pursuant to Section 2.9(a) of the Auction Agent Agreement, dated as of
December 1, 2000, among the Trustee, the Auction Agent and the Corporation (the
"Auction Agent Agreement"), the Trustee has directed the Auction Agent to
execute and deliver this Broker-Dealer Agreement.

          The Auction Procedures require the participation of one or more
Broker-Dealers.

          NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Auction Agent, as agent of the Corporation,
and the Broker-Dealer agree as follows:

          Section 1.  Definitions and Rules of Construction
                      -------------------------------------

          1.1.  Terms Defined by Reference to the Second Supplemental Indenture
                ---------------------------------------------------------------
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

          Capitalized terms used herein and not otherwise defined herein shall
have the meanings given such terms in the Second Supplemental Indenture.

          1.2.  Terms Defined Herein
                --------------------

          As used herein and in the Settlement Procedures, defined below, the
following terms shall have the following meanings, unless the context otherwise
requires:

          "Applicable Series 2000-1 Note Auction Rate" shall mean the Series
2000-1 Note Auction Rate as defined in the Second Supplemental Indenture.

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

          "Broker-Dealer Officer" shall mean each officer or employee of the
Broker-Dealer designated as a "Broker-Dealer Officer" for purposes of this
Broker-Dealer Agreement in a communication to the Auction Agent.

          "Beneficial Owner" shall mean a beneficial owner of any of the Series
2000-1 Notes.

          "Notice of Failure to Deliver or Make Payment" 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 hereto.

          "Order Form" shall mean the form to be submitted by any Broker-Dealer
on or prior to any Auction Date substantially in the form of Exhibit B hereto.

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

          1.3.  Rules of Construction
                ---------------------

          Unless the context or use indicate another or different meaning or
intent, the following rules shall apply to the construction of this 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 Agreement nor, shall they
affect its meaning, construction or effect.

                                      -2-
<PAGE>

                            Borker-Dealer Agreement dated as of December 1, 2000

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

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

          (e)   The rights and duties of the Broker-Dealer and the Auction Agent
under this Broker-Dealer Agreement shall apply to all series of the Series 2000-
1 Notes, but separately. References to "Series 2000-1 Notes," unless the context
clearly contemplates a reference to all Series 2000-1 Notes, shall refer only to
the Series 2000-1A Notes as to rights and duties regarding Series 2000-1A Notes;
only to the Series 2000-1B Notes as to rights and duties regarding Series 2000-
1B Notes; and only to the Series 2000-1C Notes as to rights and duties regarding
Series 2000-1C Notes.

          Section 2.  The Auction
                      -----------

          2.1.  Incorporation by Reference of Auction Procedures and Settlement
                ---------------------------------------------------------------
                Procedures
                ----------

          (a)   On each Auction Date, the provisions of the Auction Procedures
will be followed by the Auction Agent for the purpose of determining the
Applicable Series 2000-1 Note Auction Rate for each Auction Period after 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 of this Broker-Dealer Agreement to the same
extent as if such provisions were fully set forth herein.

          (c)   The Broker-Dealer and other Broker-Dealers may participate in
Auctions for their own accounts.

          2.2.  Preparation for Each Auction
                ----------------------------

          (a)   Not later than 9:30 A.M. on each Auction Date for the Series
2000-1 Notes, the Auction Agent shall advise the Broker-Dealer by telephone of
the All Hold Rate, the Maximum Auction Rate, the Net Loan Rate and the One-month
LIBOR or the Three-month LIBOR, as the case may be.

          (b)   If the Auction Date for any Auction shall be changed after the
Auction Agent has given notice of such Auction Date pursuant to clause (vii) of
paragraph (a) of the Settlement Procedures, the Auction Agent, by telephone
(confirmed in writing), telecopy or such other means as the Auction Agent deems
practicable, shall give notice of such change to the Broker-Dealer not later
than the earlier of 9:15 A.M. on the new Auction Date and 9:15 A.M. on the old
Auction Date. Thereafter, the Broker-Dealer shall use its best efforts to
promptly notify its customers who are Existing Holders of such change in the
Auction Date.

                                      -3-
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

          (c)   From time to time upon request of the Auction Agent pursuant to
Section 2.2(d) of the Auction Agent Agreement, the Broker-Dealer shall provide
the Auction Agent with a statement of the aggregate amount of each series of
Series 2000-1 Notes held by the Broker-Dealer as an Existing Holder for its own
account or otherwise, as well as with a list of the Broker-Dealer's customers
that the Broker-Dealer believes are Existing Holders of either series of the
Series 2000-1 Notes (listed by series) and the aggregate principal amount of
each series of Series 2000-1 Notes beneficially owned by each such customer.
Except as permitted by Section 2.10 of the Auction Agent Agreement, the Auction
Agent shall keep confidential any such information and shall not disclose any
such information so provided to any person other than the 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, loss,
claim or damage for which the Auction Agent has not previously received
indemnity reasonably satisfactory to it. The Auction Agent shall notify the
Broker-Dealer, the Corporation and the Trustee 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.

          (d)   The Auction Agent shall send by telecopy or other means a copy
of any Notice of Series 2000-1 Notes Outstanding received from the Trustee to
the Broker-Dealer in accordance with Section 4.3 hereof.

          2.3.  Auction Schedule: Method of Submission of Orders
                ------------------------------------------------

          (a)   The Auction Agent shall conduct Auctions for the Series 2000-1
Notes 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 written notice of any such change to the Broker-Dealer. Such
notice shall be given prior to the close of business on the Business Day next
preceding the first Auction Date on which any such change shall be effective.

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 the One-month LIBOR
                            or the Three-month LIBOR, as the case may be, to be
                            used in determining the Auction Rate under the
                            Auction Procedures, the Second Supplemental
                            Indenture and the 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 Second Supplemental Indenture. The
                            Submission Deadline is 12:30 P.M.

                                      -4-
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

Not earlier than 12:30 P.M.   The Auction Agent makes determinations pursuant to
                              Section 4(c)(i) of the Second Supplemental
                              Indenture. Submitted Bids and Submitted Sell
                              Orders are accepted and rejected in whole or in
                              part and Series 2000-1 Notes allocated as provided
                              in Section 4(d) of the Second Supplemental
                              Indenture.

By approximately              The Auction Agent advises the Trustee and the
3:00 P.M.*                    Broker-Dealers of the results of the Auction as
4:00 P.M.**                   provided in Section 4(c)(ii) of the Second
                              Supplemental Indenture. The Auction Agent gives
                              notice of Auction results as set forth in Section
                              2.4(a) hereof.

*If the Series 2000-1 Note Auction Rate is the Auction Rate.

**If the Series 2000-1 Note Auction Rate is the Net Loan Rate.

          (b)   The Broker-Dealer agrees to maintain a list of Potential Holders
and to contact the Potential Holders on such list on or prior to each Auction
Date for the purposes of participating in the Auction on such Auction Date.

          (c)   The Broker-Dealer shall submit Orders to the Auction Agent in
writing by delivering an Order Form. The Broker-Dealer shall submit separate
Orders to the Auction Agent for each Potential Holder or Existing Holder on
whose behalf the Broker-Dealer is submitting an Order and shall not net or
aggregate the Orders of different Potential Holders or Existing Holders on whose
behalf the Broker-Dealer is submitting Orders.

          (d)   The Broker-Dealer shall deliver to the Auction Agent (i) a
Notice of Transfer with respect to any transfer of Series 2000-1 Notes made
through the Broker-Dealer by an Existing Holder to another person other than
pursuant to an Auction, and (ii) a Notice of Failure to Deliver or Make Payment
with respect to the failure of any Series 2000-1 Notes to be transferred to or
payment to be made by any person that purchased or sold Series 2000-1 Notes
through the Broker-Dealer pursuant to a prior Auction. The Auction Agent is not
required to accept any notice delivered pursuant to clauses (i) or (ii) of this
subparagraph (d) with respect to an Auction unless it is received by the Auction
Agent by 3:00 P.M. on the Business Day next preceding such Auction Date.

          (e)   The Broker-Dealer agrees to handle its customers' Orders in
accordance with its duties under applicable securities laws and rules.

          2.4.  Notices
                -------

          (a)   On each Auction Date, the Auction Agent shall notify the Broker-
Dealer by telephone of the results of the Auction as set forth in paragraph (a)
of the Settlement Procedures. The Auction Agent shall by 10:30 A.M. on the
Business Day next succeeding such Auction Date if previously requested by the
Broker-Dealer notify the Broker-Dealer in writing of

                                      -5-
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

the disposition of all Orders submitted by the Broker-Dealer in the Auction held
on such Auction Date.

          (b)   The Broker-Dealer shall notify each Existing Holder or Potential
Holder on whose behalf the Broker-Dealer has submitted an Order as set forth in
paragraph (b) of the Settlement Procedures and take such other action as is
required by the Broker-Dealer pursuant to the Settlement Procedures.

          (c)   The Auction Agent shall deliver to the Broker-Dealer all notices
and certificates that the Auction Agent is required to deliver to the Broker-
Dealer pursuant to Section 2 of the Auction Agent Agreement at the times and in
the manner set forth in the Auction Agent Agreement.

          2.5.  Service Charge to Be Paid to the Broker-Dealer
                ----------------------------------------------

          Not later than 2:00 P.M. on each Interest Payment Date with respect to
each Interest Period that immediately follows an Auction Date, the Auction Agent
shall pay to the Broker-Dealer a fee, from monies received from the Trustee, in
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 the
particular series of Series 2000-1 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 2000-1 Notes of such series outstanding at the close
of business on the date of the original issuance of the Series 2000-1 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.

          2.6.  Settlement
                ----------

          (a)   If any Existing Holder on whose behalf the Broker-Dealer has
submitted a Bid or Sell Order for Series 2000-1 Notes that was accepted in whole
or in part fails to instruct its Participant to deliver the Series 2000-1 Notes
subject to such Bid or Sell Order against payment therefor, the Broker-Dealer
shall instruct such Participant to deliver such Series 2000-1 Notes against
payment therefor and the Broker-Dealer may deliver to the Potential Holder on
whose behalf the Broker-Dealer submitted a Bid that was accepted in whole or in
part, a principal amount of the Series 2000-1 Notes that is less than the
principal amount of the Series 2000-1 Notes specified in such Bid to be
purchased by such Potential Holder. Notwithstanding the foregoing terms of this
Section, any delivery or nondelivery of Series 2000-1 Notes that represents 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 non-delivery in accordance with the terms of
Section 2.3(d) hereof. The Auction Agent shall have no duty or liability with
respect to enforcement of this Section 2.6(a).

          (b)   Neither the Auction Agent, the Trustee, nor the Corporation
shall have any responsibility or liability with respect to the failure of an
Existing Holder, a Potential Holder or

                                      -6-
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

its respective Participant to deliver Series 2000-1 Notes or to pay for Series
2000-1 Notes sold or purchased pursuant to the Auction Procedures or otherwise.
The Auction Agent shall have no responsibility for any adjustment to the fees
paid pursuant to Section 2.5 hereof as a result of any failure described in this
Section 2.6(b).

          Section 3.  The Auction Agent
                      -----------------

          3.1.  Duties and Responsibilities
                ---------------------------

          (a)   The Auction Agent is acting hereunder solely as agent for the
Corporation and owes no fiduciary duties to any person by reason of this Broker-
Dealer Agreement.

          (b)   The Auction Agent undertakes to perform such duties and only
such duties as are specifically set forth in this Broker-Dealer Agreement, and
no implied covenants or obligations shall be read into this Broker-Dealer
Agreement against the Auction Agent.

          (c)   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
Broker-Dealer 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 (or failing to ascertain) the pertinent facts.

          3.2.  Rights of the Auction Agent
                ---------------------------

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

          (b)   The Auction Agent may consult with counsel of its own 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.

          (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 willful misconduct or negligence on the part of any agent or
attorney appointed by it with due care hereunder.

          3.3.  The Auction Agent's Disclaimer
                ------------------------------

                                      -7-
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

          The Auction Agent makes no representation as to the correctness,
validity, adequacy or accuracy of the recitals in or the adequacy or validity of
this Broker-Dealer Agreement, the Auction Agent Agreement or the validity or
adequacy of the Series 2000-1 Notes.

          Section 4.  Miscellaneous
                      -------------

          4.1.  Termination
                -----------

          Any party may terminate this Broker-Dealer Agreement at any time upon
five days' prior notice to the other party; provided, however, that if the
Broker-Dealer is Salomon Smith Barney Inc., neither the Broker-Dealer nor the
Auction Agent may terminate this Broker-Dealer Agreement without first obtaining
the prior written consent of the Trustee and the Corporation of such
termination, which consent shall not be unreasonably withheld or delayed. For so
long as the Auction Agent Agreement is effective and if Salomon Smith Barney
Inc. is the sole Broker-Dealer, any termination of this Broker-Dealer Agreement
shall not be effective unless and until a successor, or substitute Broker-Dealer
Agreement becomes effective. This Broker-Dealer Agreement shall automatically
terminate upon the delivery of certificates representing the Series 2000-1 Notes
pursuant to Section 17 of the Second Supplemental Indenture or upon termination
of the Auction Agent Agreement.

          4.2.  Participant
                -----------

          The Broker-Dealer is, and shall remain for the term of this Broker-
Dealer Agreement, a member of, or Participant in, the Depository (or an
affiliate of such a member or Participant).

          4.3.  Communications
                --------------

          Except for (i) communications authorized to be made by telephone
pursuant to this Broker-Dealer Agreement or the Auction Procedures and (ii)
communications in connection with the 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, or its address or facsimile
number set forth below:

If to the Broker-Dealer, addressed:     SALOMON SMITH BARNEY INC.
                                        388 Greenwich Street
                                        32nd Floor
                                        New York, New York 10013
                                        Attention:  Student Loan Finance Group
                                        Telephone:  (212) 816-9948
                                        Facsimile:  (212) 816-0598

If to the Auction Agent, addressed:     BANKERS TRUST COMPANY
                                        Corporate Trust and Agency Group

                                      -8-
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

                                        4 Albany Street
                                        New York, New York 10006
                                        Attention:  Auction Rate Securities
                                        Telephone:  (212) 250-6850
                                        Facsimile:  (212) 250-6215

If to the Trustee, addressed:           U.S. Bank National Association
                                        141 North Main Avenue
                                        Sioux Falls, South Dakota 57104
                                        Attention:  Corporate Trust Department
                                        Telephone:  (605) 339-8725
                                        Facsimile:  (605) 335-3813

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

or such other address or facsimile number as such party may hereafter specify
for such purpose by notice to the other party. Each such notice, request or
communication shall be effective when delivered at the address specified herein.
Communications shall be given on behalf of the Broker-Dealer by a Broker-Dealer
Officer and on behalf of the Auction Agent by an Authorized Officer of the
Auction Agent. The Broker-Dealer may record telephone communications with the
Auction Agent.

          4.4.  Entire Agreement
                ----------------

          This Broker-Dealer Agreement contains the entire agreement between the
parties relating to the subject matter hereof, and there are not other
representations, endorsements, promises, agreements or understandings, oral,
written or inferred, between the parties relating to the subject matter hereof,
except for the fee letter dated as of December 1, 2000, from the Auction Agent
to the Corporation.

          4.5.  Benefits
                --------

          Nothing in this Broker-Dealer Agreement, express or implied, shall
give to any person, other than the Auction Agent, the Corporation, the Broker-
Dealer and their respective successors and assigns, any benefit of any legal or
equitable right, remedy or claim under this Broker-Dealer Agreement.

          4.6.  Amendment; Waiver
                -----------------

                                      -9-
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

          (a)   This Broker-Dealer 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 a duly authorized representative of the
parties hereto. This Broker-Dealer Agreement may not be amended without first
obtaining the prior written consent of the Corporation.

          (b)   Failure of either party to this Broker-Dealer Agreement to
exercise any right or remedy hereunder in the event of a breach of this Broker-
Dealer Agreement by the other party shall not constitute a waiver of any such
right or remedy with respect to any subsequent breach.

          4.7.  Successors and Assigns
                ----------------------

          This Broker-Dealer Agreement shall be binding upon, inure to the
benefit of, and be enforceable by, the parties hereto and their respective
successors and assigns.

          4.8.  Severability
                ------------

          If any clause, provision or section of this Broker-Dealer Agreement
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 remaining clause, provision or sections hereof.

          4.9.  Execution in Counterparts
                -------------------------

          This Broker-Dealer 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.

          4.10. Governing Law
                -------------

          This Broker-Dealer Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

           [The remainder of this page is intentionally left blank.]

                                      -10-
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

          In Witness Whereof, the parties hereto have caused this Broker-Dealer
Agreement to be duly executed and delivered by their respective officers
thereunto duly authorized as of the date first above written.

                                    BANKERS TRUST COMPANY
                                    as Auction Agent

                                    By: /s/ Jody Sanchez
                                        ----------------------------------------
                                       Title: Associate
                                              ----------------------------------

                                    SALOMON SMITH BARNEY INC.,
                                    as Broker-Dealer

                                    By: /s/ Harry T. Apfel
                                        ----------------------------------------
                                       Title: Managing Director
                                              ----------------------------------

Pursuant to and in accordance with Section 9 of the
Second Supplemental Indenture and Section 2.9 of
the Auction Agent Agreement (defined above), the
undersigned consents to the execution of the above
Broker-Dealer Agreement.

U.S. Bank National Association, as Trustee

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

                                      -11-
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

                     EXHIBIT A TO BROKER-DEALER AGREEMENT

                             SETTLEMENT PROCEDURES

          If not otherwise defined herein, capitalized terms used herein shall
have the meanings given such terms in Article 1 of the Second Supplemental
Indenture. These Settlement Procedures shall apply separately for each series of
Series 2000-1 Notes.

          (a)   Not later than (1) 3:00 P.M., if the Series 2000-1 Note Auction
Rate is the Auction Rate or (2) 4:00 p.m. if the Series 2000-1 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 2000-1 Note Auction Rate fixed for the next
                       Interest Period;

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

                (iii)  if such Broker-Dealer submitted Bids or Sell Orders on
                       behalf of an Existing Holder (a "Seller's Broker-
                       Dealer"), whether such Bid or Sell Order was accepted or
                       rejected, in whole or in part, and the principal amount
                       of Series 2000-1 Notes, if any, to be sold by such
                       Existing Holder;

                (iv)   if such Broker-Dealer submitted a Bid on behalf of a
                       Potential Holder (a "Buyer's Broker-Dealer"), whether
                       such Bid was accepted or rejected, in whole or in part,
                       and the principal amount of Series 2000-1 Notes, if any,
                       to be purchased by such Potential Holder;

                (v)    if the aggregate amount of Series 2000-1 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 2000-1 Notes to be
                       purchased by all Potential Holders on whose behalf such
                       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 2000-1 Notes and the principal
                       amount of Series 2000-1 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 principal amount of Series 2000-1 Notes to be
                       purchased by all Potential Holders on whose behalf such
                       Buyer's Broker-Dealer

                                      A-1
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

                       submitted a Bid exceeds the amount of Series 2000-1 Notes
                       to be sold by all Existing Holders on whose behalf such
                       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
                       Broker-Dealer) acting for one or more sellers of such
                       excess principal amount of Series 2000-1 Notes and the
                       principal amount of Series 2000-1 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 Depository the amount necessary
                       to purchase the principal amount of Series 2000-1 Notes
                       to be purchased pursuant to such Bid against receipt of
                       such Series 2000-1 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, to instruct such
                       Existing Holder's Participant to deliver to such Seller's
                       Broker-Dealer (or its Participant) through the Depository
                       the principal amount of Series 2000-1 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 2000-1 Note Auction Rate for the next Series 2000-
                       1 Note Interest Period;

                (v)    advise each Existing Holder on whose behalf such Broker-
                       Dealer submitted an Order of the next Auction Date,
                       including, without limitation, Existing Holders deemed to
                       have submitted Hold

                                      A-2
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

                       Orders pursuant to Section 4(b)(iii) of the Second
                       Supplemental Indenture; 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 2000-1 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 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 (b) (ii) or (b)(iii) above, as
                       the case may be;

                (ii)   each Seller's Broker-Dealer that is not a Participant of
                       the Depository shall instruct its Participant to deliver
                       such Series 2000-1 Notes through the Depository to a
                       Buyer's Broker-Dealer (or its Participant) identified to
                       such Seller's Broker-Dealer pursuant to (a) (v) above
                       against payment therefor; and

                (iii)  each Buyer's Broker-Dealer that is not a Participant in
                       the Depository shall instruct its Participant to pay
                       through the Depository to a Seller's Broker-Dealer (or
                       its Participant) identified following such Auction
                       pursuant to (a) (vi) above the amount necessary to
                       purchase the Series 2000-1 Notes to be purchased pursuant
                       to (b) (ii) above against receipt of such Series 2000-1
                       Notes.

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

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

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

                                      A-3
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

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

          (f)   If an Existing Holder selling Series 2000-1 Notes in an Auction
fails to deliver such Series 2000-1 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 2000-1 Notes that is less than
the principal amount of Series 2000-1 Notes that otherwise was to be purchased
by such Potential Holder. In such event, the principal amount of Series 2000-1
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 2000-1 Notes shall constitute good delivery. Notwithstanding the
foregoing terms of this paragraph (f), any delivery or nondelivery of Series
2000-1 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 deliver the
principal amount of Series 2000-1 Notes or to pay for the Series 2000-1 Notes
purchased or sold pursuant to an Auction or otherwise.

                                      A-4
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

                     EXHIBIT B TO BROKER-DEALER AGREEMENT

                         EDUCATION LOANS INCORPORATED
                        STUDENT LOAN ASSET-BACKED NOTES
                            [SENIOR SERIES 2000-1A]
                            [SENIOR SERIES 2000-1B]
                         [SUBORDINATE SERIES 2000-1C]

                                  ORDER FORM

                                                           AUCTION DATE_________
                                                           ISSUE________________
                                                           SERIES_______________

          Bidder(s) indicated The undersigned Broker-Dealer submits the
following orders on behalf of the below:

                                  PRINCIPAL AMOUNT
                                  OF NOTES ($50,000
            EXISTING HOLDER         OR MULTIPLES)              BID RATE
            ---------------         -------------              --------

1.   _______________________   _______________________   ____________________

2.   _______________________   _______________________   ____________________

3.   _______________________   _______________________   ____________________

4.   _______________________   _______________________   ____________________

5.   _______________________   _______________________   ____________________

6.   _______________________   _______________________   ____________________

7.   _______________________   _______________________   ____________________

8.   _______________________   _______________________   ____________________

9.   _______________________   _______________________   ____________________

10.  _______________________   _______________________   ____________________

*Existing Holders may be described by name or other reference as determined in
the sole discretion of the Broker-Dealer.

                                      B-1
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

                         EDUCATION LOANS INCORPORATED

                        STUDENT LOAN ASSET-BACKED NOTES
                            [SENIOR SERIES 2000-1A]
                            [SENIOR SERIES 2000-1B]
                         [SUBORDINATE SERIES 2000-1C]

                           BIDS BY POTENTIAL HOLDERS

                                PRINCIPAL AMOUNT
                                OF NOTES ($50,000
          EXISTING HOLDER         OR MULTIPLES)              BID RATE
          ---------------         -------------              --------

1.   _______________________   _______________________   ____________________
2.   _______________________   _______________________   ____________________
3.   _______________________   _______________________   ____________________
4.   _______________________   _______________________   ____________________
5.   _______________________   _______________________   ____________________
6.   _______________________   _______________________   ____________________
7.   _______________________   _______________________   ____________________
8.   _______________________   _______________________   ____________________
9.   _______________________   _______________________   ____________________
10.  _______________________   _______________________   ____________________
11.  _______________________   _______________________   ____________________
12.  _______________________   _______________________   ____________________
13.  _______________________   _______________________   ____________________
14.  _______________________   _______________________   ____________________
15.  _______________________   _______________________   ____________________

          NOTES:

  1.  If one or more Orders covering in the aggregate more than the outstanding
      principal amount of Series 2000-1 Notes held by any Existing Holder are
      submitted, such Orders shall be considered valid in the order of priority
      set forth in the Auction Procedures.

  2.  A Hold or Sell Order may be placed only by an Existing Holder covering a
      principal amount of Series 2000-1 Notes not greater than the principal
      amount currently held by such Existing Holder.

  3.  Potential Holders may only make Bids, each of which must specify a rate.
      If more than one Bid is submitted on behalf of any Potential Holder, each
      Bid submitted shall be a separate Bid with the rate specified herein.

  4.  Bids may contain no more than three figures to the right of the decimal
      point (.001 of 1%).

  5.  An order must be submitted in principal amounts of $50,000 or integral
      multiples thereof.

                                      B-2
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

*Potential Holders may be described by name or other reference as determined in
the sole discretion of the Broker-Dealer.

                                      B-3
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

NAME OF BROKER-DEALER: _________________________________________

AUTHORIZED SIGNATURE: __________________________________________

TOTAL NUMBER OF ORDERS ON THIS ORDER FORM: _____________________

Submit to:         BANKERS TRUST COMPANY
                   Corporate Trust and Agency Group
                   4 Albany Street
                   New York, New York 10006
                   Telephone:   (212) 250-6850
                   Telecopier:  (212) 250-6215

                                      B-4
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

                     EXHIBIT C TO BROKER-DEALER AGREEMENT

                         EDUCATION LOANS INCORPORATED
                        STUDENT LOAN ASSET-BACKED NOTES
                            [SENIOR SERIES 2000-1A]
                            [SENIOR SERIES 2000-1B]
                         [SUBORDINATE SERIES 2000-1C]

                   (TO BE USED ONLY FOR TRANSFERS MADE OTHER
                         THAN PURSUANT TO AN AUCTION)

We are (check one)

_____________the Existing Holder indicated below*; or

______________the Broker-Dealer for such Existing Holder; or

______________the Participant for such Existing Holder.

We hereby notify you that such Existing Holder has transferred $_________ (must
be in units of $50,000) of [Senior Series 2000-1A Notes] [Senior Series 2000-1B
Notes] [Subordinate Series 2000-1C Notes] to

                                 _____________________________________________
                                 (Existing Holder)

                                 _____________________________________________
                                 (Name of Broker-Dealer)

                                 _____________________________________________
                                 (Name of Participant)

                                 By:__________________________________________
                                 Printed Name:________________________________
                                 Title:_______________________________________

*Existing Holders may be described by name or other reference as determined in
the sole discretion of the Broker-Dealer.

                                      C-1
<PAGE>

                            Broker-Dealer Agreement dated as of December 1, 2000

                     EXHIBIT D TO BROKER-DEALER AGREEMENT

                         EDUCATION LOANS INCORPORATED
                        STUDENT LOAN ASSET-BACKED NOTES
                            [SENIOR SERIES 2000-1A]
                            [SENIOR SERIES 2000-1B]
                         [SUBORDINATE SERIES 2000-1C]

                  NOTICE OF A FAIL TO DELIVER OR MAKE PAYMENT

COMPLETE EITHER I OR II.
------------------------

               We are a Broker-Dealer for * (the "Purchaser"), which purchased
               $_________ (must be in units of $50,000) of the [Senior Series
               2000-1A Notes] [Senior Series 2000-1B Notes] [Subordinate Series
               2000-1C Notes] in the Auction held on _____________________ from
               the seller of such [Senior Series 2000-1A Notes] [Senior Series
               2000-1B Notes] [Subordinate Series 2000-1C Notes].

               We are a Broker-Dealer for * (the "Seller"), which sold
               $___________ (must be in units of $50,000) of the [Senior Series
               2000-1A Notes] [Senior Series 2000-1B Notes] [Subordinate Series
               2000-1C Notes] in the Auction held on ___________________ to the
               purchaser of such [Senior Series 2000-1A Notes] [Senior Series
               2000-1B Notes] [Subordinate Series 2000-1C Notes].

We hereby notify you that (check one)

_______________     the Seller failed to deliver such [Senior Series 2000-1A
                    Notes] [Senior Series 2000-1B Notes] [Subordinate Series
                    2000-1C Notes] to the Purchaser.

_______________     the Purchaser failed to make payment to the Seller upon
                    delivery of such [Senior Series 2000-1A Notes] [Senior
                    Series 2000-1B Notes] [Subordinate Series 2000-1C Notes].

                                     (Name of Broker-Dealer)

                                     By:________________________________
                                     Name:______________________________
                                     Title:_____________________________

*may be described by name or other reference as determined in the sole
discretion of the Broker-Dealer.

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