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
TERI's guarantee agreements require lenders to follow certain credit origination policies and due
diligence guidelines for a loan to be eligible for claim payment. TERI may refuse to pay a default
claim if these requirements have not been met. When a borrower defaults and a default claim is
paid, TERI assumes the position of the lender and has full rights and recourse against all
borrowers on the note.
TERI provides a reserve against possible loss exposure in its portfolio using several assumptions
based on actuarial studies, historical experience of other similar portfolios of student loans, and
management's assessment of the creditworthiness of different types of loans. The assumptions
used in determining the reserve against possible loss exposure includes estimated loan recovery
levels consistent with historical performance, but which have not yet been achieved with respect
to more recently defaulted loan cohorts. Accordingly, the evaluation of the provision for loan
loss reserves is inherently subjective as it requires material estimates that may be susceptible to
significant changes.
The following table summarizes activity in the loan loss reserve account for fiscal years 2003 and
2002.
2003 2002
Beginning balance $ 75,228,737 $ 91,275,902
Default claims paid (45,614,236) (49,380,669)
Default claims recoveries, net 34,590,807 33,157,742
Access transaction - (22,927,120)
Loan loss provision, net* 43,736,775 23,102,882
Ending balance $ 107,942,083 $ 75,228,737
* The loan loss provision shown above is net of recovery income of $36.6 million and $35.3
million for the period ending June 30, 2003 and 2002, respectively.
On November 15, 2001, TERI and the Access Group agreed to and executed a plan that would
remove TERI's guarantee from approximately $340 million of Access Group loans originated
after May 1, 1998 (the "Access transaction"). TERI's loan loss reserve balance was reduced by
$22.9 million in connection with this transfer.
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