LISTING SUPPLEMENT $189000000 Class A-1 Notes $342100000 ...

The Education Resources Institute, Inc. and Subsidiary
Supplemental Consolidating Statement of Activities and Changes in Net Assets
Year Ended June 30, 2003
Management makes significant estimates and assumptions regarding the collection of accounts
and student loans receivable and the providing of the loan loss reserves at the date of the
consolidated statements of financial position. These estimates and assumptions are based upon
historical and current experience and expectations of future performance on the part of TERI, the
economy, actuarial studies performed by outside parties, and other factors. It is possible that the
actual collection of accounts and student loans receivable or payment of defaults will differ from
these estimates.
Fair Value of Financial Instruments
The estimated fair values of TERI's financial instruments have been determined, where
practicable, by using appropriate valuation methodologies. Due to their short-term nature, cash
equivalents are carried at cost. Marketable securities are reported at quoted market prices derived
from recognized national publications. Receivables for guarantee fees and residual interest are
recorded at their estimated net realizable value. Student loans receivables are recorded at their
current outstanding principal balance, while receivables recoverable on claims payments are
based on management's estimate of amounts recoverable.
Reclassification
Certain prior year amounts have been reclassified to conform to the current year presentation.
3. Marketable Securities
Marketable securities consisted of the following:
Amortized Unrealized Quoted
June 30, 2003 Cost Gain Market Price
Marketable securities
treated as cash equivalents
Commercial paper $ 1,234,579 $ - $ 1,234,579
Subtotal 1,234,579 - 1,234,579
Marketable securities
Government agency obligations 73,297,229 64,649 73,361,878
Certificates of deposit 7,513,845 - 7,513,845
Bonds 1,638,353 57,244 1,695,597
Commercial paper 1,932,087 1,277 1,933,364
Subtotal 84,381,514 123,170 84,504,684
Total Marketable Securities $ 85,616,093 $ 123,170 $ 85,739,263
TF-12
9