<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): June 17, 1998
EDUCATION LOANS INCORPORATED
____________________________
(Exact name of registrant as specified in its charter)
Delaware 333-26679-01 91-1819974
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
105 First Avenue Southwest, Aberdeen, South Dakota 57401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (605) 622-4400
Not Applicable
(Former name or former address, if changed since last report)
<PAGE>
Item 1. Changes in Control of Registrant.
Not Applicable.
Item 2. Acquisition or Disposition of Assets.
Not Applicable.
Item 3. Bankruptcy or Receivership.
Not Applicable.
Item 4. Changes in Registrant's Certifying Accountant.
Not Applicable.
Item 5. Other Events.
Pursuant to the Servicing Agreement, dated as of February 1, 1998
(the "Agreement"), among Education Loans Incorporated, as Issuer
(the "Issuer"), Student Loan Finance Corporation, as Servicer (the
"Servicer"), and U.S. Bank National Association, as Trustee (the
"Trustee"), the Servicer delivered to the Trustee the statement
required by Section 5.23 of the Indenture and Section 21 of the
Agreement, which statement is being filed as Exhibit 99.1 to this
Form 8-K, and based thereon the Trustee is required to make
distributions to the holders of the Issuer's Student Loan Asset-
Backed Callable Notes, Series 1998-1.
Item 6. Resignation of Registrant's Directors.
Not Applicable.
<PAGE>
Item 7. Financial Statements and Exhibits.
(c) Exhibits
The following exhibit is filed herewith. The exhibit number
corresponds with Item 601(b) of Regulation S-K.
Exhibit No. Description
99.1 Servicing Report, dated May 31, 1998, delivered to the
Trustee.
Item 8. Change in Fiscal Year.
Not Applicable.
Item 9. Sales of Equity Securities Pursuant to Regulation S.
Not Applicable.
Signature
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, hereto duly authorized.
Date: June 17, 1998
EDUCATION LOANS INCORPORATED
By /s/ A. Norgrin Sanderson
____________________________________
A. Norgrin Sanderson
President
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Exhibit Description of Exhibit
------- ----------------------
<S> <C>
99.1 Servicing Report, dated May 31, 1998, delivered
to the Trustee.
</TABLE>
<PAGE>
Exhibit 99.1
Student Loan Finance Corporation
Noteholders' Statement Pursuant to Section 5.23 of the Indenture and
Section 21 of the Servicing Agreement (Unaudited)
Education Loans Incorporated
Student Loan Asset-Backed Callable Notes, Series 1998-1
Report for the Month Ended May 31, 1998
I. Noteholder Information
----------------------
A. Identification of Notes
-----------------------
<TABLE>
<CAPTION>
Series Description Cusip # Due Date
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1998-1A Senior Tax Exempt Auction Rate Notes............................28139WAB0.......... June 1, 2020
1998-1B Senior Tax Exempt Auction Rate Notes............................28139WAC8.......... June 1, 2020
1998-1C Senior Tax Exempt Auction Rate Notes............................28139WAD6.......... June 1, 2020
1998-1D Senior Tax Exempt Auction Rate Notes............................28139WAE4.......... June 1, 2020
1998-1E Senior Tax Exempt Auction Rate Notes............................28139WAF1.......... June 1, 2020
1998-1F Senior Tax Exempt Fixed Rate Notes..............................28139WAA2.......... June 1, 2010
1998-1F Senior Tax Exempt Fixed Rate Notes..............................28139WAG9.......... June 1, 2020
1998-1G Senior Taxable Auction Rate Notes...............................280907AF3.......... June 1, 2020
1998-1H Senior Taxable Auction Rate Notes...............................280907AG1.......... June 1, 2020
1998-1I Senior Taxable LIBOR Rate Notes.................................280907AH9.......... June 1, 2002
1998-1J Senior Taxable LIBOR Rate Notes.................................280907AJ5.......... June 1, 2020
1998-1K Subordinate Tax Exempt Fixed Rate Notes.........................28139WAH7.......... June 1, 2020
1998-1L Subordinate Taxable LIBOR Rate Notes............................280907AK2.......... June 1, 2020
</TABLE>
B. Notification of Prepayments of LIBOR Rate Notes
-----------------------------------------------
<TABLE>
<CAPTION>
Determination Date - June 25, 1998 Record Date - June 30, 1998 Prepayment Date - July 1, 1998
---------------------------------- --------------------------- ------------------------------
Aggregate Payments
----------------------------------------------------------------------------------------------- Principal
Carry-Over Interest on Carry- Amount After
Series Principal Interest Amounts Over Amounts Total Prepayment
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1998-1I $5,074,938.50 $826,528.13 $0.00 $0.00 $5,901,466.63 $165,861,916.50
1998-1J 0.00 1,168,517.22 0.00 0.00 1,168,517.22 239,600,000.00
1998-1L 707,576.16 288,692.80 0.00 0.00 996,268.96 56,531,666.56
-----------------------------------------------------------------------------------------------------------------
Total $5,782,514.66 $2,283,738.15 $0.00 $0.00 $8,066,252.81 $461,993,583.06
=================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Payment Per $100,000 Unit
------------------------------------------------------------------------------------------------ Principal Amount
Carry-Over Interest on Carry- Per $100,000 Unit
Series Principal Interest Amounts Over Amounts Total After Prepayment
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1998-1I $2,743.21 $446.77 $0.00 $0.00 $3,189.98 $89,655.09
1998-1J 0.00 487.70 0.00 0.00 487.70 100,000.00
1998-1L 1,195.23 487.66 0.00 0.00 1,682.89 95,492.68
Applicable Principal
Interest Rate Factor After
Series On Notes Prepayment
---------------------------------------------------
<S> <C> <C>
1998-1I 5.80234% 0.8965509
1998-1J 5.85234% 1.0000000
1998-1L 6.05234% 0.9549268
</TABLE>
Page 1 of 8
<PAGE>
<TABLE>
<CAPTION>
C. Principal Outstanding - May, 1998
Principal Principal Principal Principal
Outstanding, Payments Outstanding, Paid on
Series Start of Month During Month End of Month June 1, 1998
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1998-1A $74,900,000.00 $0.00 $74,900,000.00
1998-1B 50,000,000.00 0.00 50,000,000.00
1998-1C 50,000,000.00 0.00 50,000,000.00
1998-1D 50,000,000.00 0.00 50,000,000.00
1998-1E 50,000,000.00 0.00 50,000,000.00
1998-1F:
6-1-10 14,270,000.00 0.00 14,270,000.00
6-1-20 9,785,000.00 0.00 9,785,000.00
1998-1G 53,500,000.00 0.00 53,500,000.00
1998-1H 54,000,000.00 0.00 54,000,000.00
1998-1I 185,000,000.00 6,503,601.00 178,496,399.00 $7,559,544.00
1998-1J 239,600,000.00 0.00 239,600,000.00 0.00
1998-1K 33,215,000.00 0.00 33,215,000.00
1998-1L 59,200,000.00 906,766.40 58,293,233.60 1,053,990.88
----------------------------------------------------------------------------------
Totals $923,470,000.00 $7,410,367.40 $916,059,632.60 $8,613,534.88
==================================================================================
</TABLE>
<TABLE>
<CAPTION>
D. Accrued Interest Outstanding - May, 1998
Accrued Interest Interest Interest Accrued Interest Interest
Outstanding, Accrued Payments Outstanding, Rate As Of
Series Start of Month During Month During Month End of Month End Of Month
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1998-1A $557,900.98 $251,539.16 $0.00 $809,440.14 3.90000%
1998-1B 370,597.22 164,750.00 0.00 535,347.22 3.84000%
1998-1C 368,263.89 163,055.55 0.00 531,319.44 3.85000%
1998-1D 371,250.00 165,694.44 0.00 536,944.44 3.90000%
1998-1E 370,902.78 165,763.89 0.00 536,666.67 3.85000%
1998-1F:
6-1-10 176,591.25 58,863.75 0.00 235,455.00 4.95000%
6-1-20 133,320.63 44,440.20 0.00 177,760.83 5.45000%
1998-1G 83,519.44 259,296.67 233,854.44 108,961.67 5.64000%
1998-1H 25,155.00 260,295.00 234,780.00 50,670.00 5.63000%
1998-1I 899,947.92 892,451.01 899,947.92 892,451.01 5.80625%
1998-1J 1,175,537.50 1,208,274.51 1,175,537.50 1,208,274.51 5.85625%
1998-1K 465,010.00 155,003.33 0.00 620,013.33 5.60000%
1998-1L 300,316.67 304,005.29 300,316.67 304,005.29 6.05625%
----------------------------------------------------------------------------------
Totals $5,298,313.28 $4,093,432.80 $2,844,436.53 $6,547,309.55
==================================================================================
</TABLE>
<TABLE>
<CAPTION>
Net Loan Rate for
Interest Periods
Starting July,
1998, Based on
May 31 Calc.
- ------------------------------------
<S> <C>
1998-1A
1998-1B
1998-1C
1998-1D
1998-1E
1998-1F
6-1-10
6-1-20 6.69%
1998-1G 6.69%
1998-1H 6.69%
1998-1I 6.69%
1998-1J
1998-1K 6.69%
1998-1L
------------------------
Totals
========================
</TABLE>
Page 2 of 8
<PAGE>
E. Noteholders' Carry-Over Amounts - May, 1998
<TABLE>
<CAPTION>
Carry-Over Carry-Over
Amounts, Additions Payments Amounts,
Series Start of Month During Month During Month End of Month
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1998-1G $0.00 $0.00 $0.00 $0.00
1998-1H 0.00 0.00 0.00 0.00
1998-1I 0.00 0.00 0.00 0.00
1998-1J 0.00 0.00 0.00 0.00
1998-1L 0.00 0.00 0.00 0.00
----------------------------------------------------------------------------------
Totals $0.00 $0.00 $0.00 $0.00
==================================================================================
</TABLE>
F. Noteholders' Accrued Interest on Carry-Over Amounts - May, 1998
<TABLE>
<CAPTION>
Accrued Interest Interest Accrued
Interest, Accrued Payments Interest,
Series Start of Month During Month During Month End of Month
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1998-1G $0.00 $0.00 $0.00 $0.00
1998-1H 0.00 0.00 0.00 0.00
1998-1I 0.00 0.00 0.00 0.00
1998-1J 0.00 0.00 0.00 0.00
1998-1L 0.00 0.00 0.00 0.00
----------------------------------------------------------------------------------
Totals $0.00 $0.00 $0.00 $0.00
==================================================================================
</TABLE>
II. Fund Information
A. Reserve Fund - May, 1998
<TABLE>
<CAPTION>
Tax Exempt Taxable Total
---------------------------------------------------------
<S> <C> <C> <C>
Balance, Start of Month.............................. $0.00 $18,480,000.00 $18,480,000.00
Additions During Month............................... 0.00 0.00 0.00
Withdrawals During Month............................. 0.00 0.00 0.00
--------------------------------------------------------
Balance, End of Month................................ $0.00 $18,480,000.00 $18,480,000.00
========================================================
B. Acquisition Fund (Unexpended Portion) - May, 1998
Tax Exempt Taxable Total
---------------------------------------------------------
Balance, Start of Month.............................. $223,753,582.64 $54,123,139.70 $277,876,722.34
Withdrawals for Acquisition of Eligible Loans:
Principal Acquired................................. (1,644,544.35) (921,705.61) (2,566,249.96)
Premiums and Related Acquisition Costs............. (24,385.33) (10,102.54) (34,487.87)
--------------------------------------------------------
Balance, End of Month................................ $222,084,652.96 $53,191,331.55 $275,275,984.51
========================================================
</TABLE>
Page 3 of 8
<PAGE>
III. Student Loan Information
------------------------
A. Student Loan Principal Outstanding - May, 1998
----------------------------------------------
<TABLE>
<CAPTION>
Tax Exempt Taxable Total
---------------------------------------------------------
<S> <C> <C> <C>
Balance, Start of Month.............................. $105,031,290.40 $494,270,396.40 $599,301,686.80
Loans Purchased / Originated......................... 1,644,544.35 921,705.61 2,566,249.96
Capitalized Interest................................. 104,020.68 457,554.83 561,575.51
Less Principal Payments Received..................... (742,978.46) (6,446,572.44) (7,189,550.90)
Other Increases (Decreases).......................... (1,965.41) (26,937.52) (28,902.93)
---------------------------------------------------------
Balance, End of Month................................ $106,034,911.56 $489,176,146.88 $595,211,058.44
=========================================================
B. Composition of Student Loan Portfolio as of May 31, 1998
--------------------------------------------------------
Amount
-------------------
Aggregate Outstanding Principal Balance................................. $595,211,058.44
Number of Borrowers..................................................... 89,576
Average Outstanding Principal Balance Per Borrower...................... $6,645
Number of Loans (Promissory Notes)...................................... 268,928
Average Outstanding Principal Balance Per Loan.......................... $2,213
Repayment Status Loans:
Weighted Average Remaining Term (Months).............................. 103
Weighted Average Payments Received (Months)........................... 28
Weighted Average Interest Rate.......................................... 8.25%
C. Distribution of Student Loan Portfolio by Loan Type as of May 31, 1998
----------------------------------------------------------------------
Outstanding Percent By
Number Principal Outstanding
Loan Type Of Loans Balance Balance
-------------------------------------------------------------------------------------------
Stafford - Subsidized............ 210,205 $370,507,817.26 62.2%
Stafford - Unsubsidized.......... 29,991 72,392,998.96 12.2%
Stafford - Nonsubsidized......... 3,184 4,979,751.88 0.8%
PLUS............................. 11,349 28,995,745.48 4.9%
SLS.............................. 6,654 17,038,220.94 2.9%
Consolidation.................... 7,545 101,296,523.92 17.0%
---------------------------------------------------------
Total............................ 268,928 $595,211,058.44 100.0%
=========================================================
D. Distribution of Student Loan Portfolio by Interest Rate as of May 31, 1998
--------------------------------------------------------------------------
Outstanding Percent By
Number Principal Outstanding
Interest Rate Of Loans Balance Balance
-------------------------------------------------------------------------------------------
Less Than 7.00%.................. 79 $331,434.67 0.1%
7.00% to 7.49%................... 8,962 13,645,192.21 2.3%
7.50% to 7.99%................... 23,757 62,250,035.45 10.5%
8.00% to 8.49%................... 204,775 404,500,156.25 68.0%
8.50% to 8.99%................... 11,804 35,224,658.41 5.9%
9.00% to 9.49%................... 19,422 78,030,419.28 13.1%
9.50% or Greater................. 129 1,229,162.17 0.2%
---------------------------------------------------------
Total............................ 268,928 $595,211,058.44 100.0%
=========================================================
</TABLE>
Page 4 of 8
<PAGE>
E. Distribution of Student Loan Portfolio by School Type as of May 31, 1998
<TABLE>
<CAPTION>
Outstanding Percent By
Number Principal Outstanding
School Type Of Loans Balance Balance
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Under 4 Year..................... 44,121 $74,339,493.82 12.5%
4 and 5 Year..................... 197,002 384,087,364.03 64.5%
Proprietary...................... 18,037 30,104,961.06 5.1%
Consolidation.................... 7,545 101,296,523.92 17.0%
Other / Unknown.................. 2,223 5,382,715.61 0.9%
---------------------------------------------------------
Total............................ 268,928 $595,211,058.44 100.0%
=========================================================
</TABLE>
F. Distribution of Student Loan Portfolio by Borrower Payment Status as of May
31, 1998
<TABLE>
<CAPTION>
Outstanding Percent By
Number Principal Outstanding
Borrower Payment Status Of Loans Balance Balance
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
School........................... 16,807 $43,841,617.82 7.4%
Grace............................ 9,674 24,139,260.30 4.1%
Repayment........................ 203,690 424,738,132.63 71.4%
Deferment........................ 24,833 65,017,833.20 10.9%
Forbearance...................... 11,562 32,863,810.53 5.5%
Claims........................... 2,362 4,610,403.96 0.8%
---------------------------------------------------------
Total............................ 268,928 $595,211,058.44 100.0%
=========================================================
</TABLE>
G. Distribution of Repayment Status Loans by Year of Repayment as of May 31,
1998
<TABLE>
<CAPTION>
Outstanding Percent By
Number Principal Outstanding
Year of Repayment Of Loans Balance Balance
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
First Year....................... 41,235 $122,360,265.03 28.8%
Second Year...................... 32,292 88,994,507.33 21.0%
Third Year....................... 32,206 81,045,092.29 19.1%
Fourth Year and Greater.......... 97,957 132,338,267.98 31.2%
---------------------------------------------------------
Total............................ 203,690 $424,738,132.63 100.0%
=========================================================
</TABLE>
H. Distribution of Repayment Status Loans by Remaining Term as of May 31, 1998
<TABLE>
<CAPTION>
Outstanding Percent By
Number Principal Outstanding
Remaining Term Of Loans Balance Balance
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 to 12 Months................... 13,649 $3,382,570.61 0.8%
13 to 24 Months.................. 15,360 8,320,659.96 2.0%
25 to 36 Months.................. 16,487 13,927,406.25 3.3%
37 to 48 Months.................. 18,068 19,893,571.62 4.7%
49 to 60 Months.................. 18,264 24,882,204.11 5.9%
61 to 72 Months.................. 19,982 33,625,353.84 7.9%
73 to 84 Months.................. 16,368 33,793,189.95 8.0%
85 to 96 Months.................. 27,607 63,945,919.90 15.1%
97 to 108 Months................. 26,267 69,795,679.96 16.4%
109 to 120 Months................ 26,565 79,242,784.58 18.7%
121 to 180 Months................ 3,731 37,944,386.73 8.9%
181 to 240 Months................ 1,154 27,850,130.82 6.6%
241 to 300 Months................ 151 6,033,616.58 1.4%
Over 300 Months.................. 37 2,100,657.72 0.5%
---------------------------------------------------------
Total............................ 203,690 $424,738,132.63 100.0%
=========================================================
</TABLE>
Page 5 of 8
<PAGE>
I. Distribution of Student Loan Portfolio by Delinquency Status as of
May 31, 1998
<TABLE>
<CAPTION>
Percent by Outstanding Balance
---------------------------------
Outstanding Repayment, Deferment, All Loans
Number of Principal Forbearance & Claims in
Delinquency Status Borrowers Balance Status Loans Only Portfolio
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
31 to 60 Days ................ 2,860 $17,574,049.11 3.3% 3.0%
61 to 90 Days ................ 1,287 8,180,112.64 1.6% 1.4%
91 to 120 Days ............... 838 5,256,941.81 1.0% 0.9%
121 to 180 Days .............. 1,172 7,639,658.32 1.4% 1.3%
181 to 270 Days .............. 484 2,607,553.14 0.5% 0.4%
Over 270 Days ................ 1 298.75 0.0% 0.0%
Claims Filed, Not Yet Paid ... 494 2,101,493.70 0.4% 0.4%
--------------------------------------------------------------
Total ........................ 7,136 $43,360,107.47 8.2% 7.3%
==============================================================
</TABLE>
J. Distribution of Student Loan Portfolio by Guarantee Status as of
May 31, 1998
<TABLE>
<CAPTION>
Outstanding Percent By
Number Principal Outstanding
Guarantee Status Of Loans Balance Balance
----------------------------------------------------------------------------
<S> <C> <C> <C>
Guaranteed 100% .............. 152,263 $237,577,201.51 39.9%
Guaranteed 98% ............... 115,554 357,277,596.25 60.0%
Unguaranteed ................. 1,111 356,260.68 0.1%
------------------------------------------
Total ........................ 268,928 $595,211,058.44 100.0%
==========================================
</TABLE>
K. Distribution of Student Loan Portfolio by Guarantee Agency as of
May 31, 1998
<TABLE>
<CAPTION>
Outstanding Percent By
Number Principal Outstanding
Guarantee Agency Of Loans Balance Balance
----------------------------------------------------------------------------
<S> <C> <C> <C>
EAC .......................... 146,206 $371,390,632.44 62.4%
PHEAA ........................ 103,326 188,549,855.72 31.7%
Other Guarantee Agencies ..... 18,285 34,914,309.60 5.9%
Unguaranteed ................. 1,111 356,260.68 0.1%
------------------------------------------
Total ........................ 268,928 $595,211,058.44 100.0%
==========================================
</TABLE>
Page 6 of 8
<PAGE>
L. Distribution of Student Loan Portfolio by Range of Principal Balance as of
May 31, 1998
<TABLE>
<CAPTION>
Outstanding Percent By
Number Principal Outstanding
Principal Balance Range Of Borrowers Balance Balance
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less Than $1,000................. 10,151 $5,189,030.71 0.9%
$1,000 to $1,999................. 12,212 18,198,722.45 3.1%
$2,000 to $2,999................. 12,916 32,251,566.66 5.4%
$3,000 to $3,999................. 8,436 29,454,845.12 4.9%
$4,000 to $4,999................. 7,011 31,405,072.84 5.3%
$5,000 to $5,999................. 6,122 33,517,777.97 5.6%
$6,000 to $6,999................. 4,683 30,219,912.34 5.1%
$7,000 to $7,999................. 3,568 26,701,100.79 4.5%
$8,000 to $8,999................. 3,030 25,743,944.95 4.3%
$9,000 to $9,999................. 2,640 25,080,464.78 4.2%
$10,000 to $10,999............... 2,240 23,483,684.68 3.9%
$11,000 to $11,999............... 2,110 24,215,339.30 4.1%
$12,000 to $12,999............... 1,685 21,053,362.68 3.5%
$13,000 to $13,999............... 1,575 21,238,841.70 3.6%
$14,000 to $14,999............... 1,486 21,520,384.32 3.6%
$15,000 or Greater............... 9,711 225,937,007.15 38.0%
-----------------------------------------------------
Total............................ 89,576 $595,211,058.44 100.0%
=====================================================
</TABLE>
M. Distribution of Student Loan Portfolio by Borrowers' Address as of May 31,
1998 (Based on Address as of June 3, 1998)
<TABLE>
<CAPTION>
Outstanding Percent By
Number Principal Outstanding
State of Borrowers' Address Of Loans Balance Balance
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
South Dakota..................... 112,912 $245,762,679.40 41.3%
Minnesota........................ 53,772 116,820,615.40 19.6%
North Dakota..................... 24,066 50,071,399.22 8.4%
Iowa............................. 7,879 18,433,509.59 3.1%
Nebraska......................... 5,817 13,102,392.49 2.2%
Colorado......................... 5,261 11,732,179.06 2.0%
Washington....................... 4,722 10,251,885.62 1.7%
California....................... 4,333 9,837,331.20 1.7%
Texas............................ 4,102 9,743,124.82 1.6%
Oregon........................... 4,169 8,704,570.45 1.5%
Wisconsin........................ 3,200 7,875,131.07 1.3%
Alaska........................... 2,448 7,001,512.29 1.2%
Arizona.......................... 3,218 6,982,792.85 1.2%
Illinois......................... 2,788 6,915,625.74 1.2%
Others Less Than 1% Each......... 30,241 71,976,309.24 12.1%
-----------------------------------------------------
Total............................ 268,928 $595,211,058.44 100.0%
=====================================================
</TABLE>
Page 7 of 8
<PAGE>
N. Fees and Expenses Accrued For / Through May, 1998
<TABLE>
<CAPTION>
For The 3.4
Months Ended
May, 1998 May 31, 1998
--------------------------------------
<S> <C> <C>
Servicing Fees................... $616,763.51 $2,072,182.67
Payroll Expenses................. $3,218.30 9,609.44
Indenture Trustee Fees........... $19,084.53 57,562.44
Broker / Dealer Fees............. $82,322.23 243,606.27
Auction Agent Fees............... $8,232.23 27,086.69
Other Permitted Expenses......... $263.05 321.69
--------------------------------------
Total............................ $729,883.85 $2,410,369.20
======================================
</TABLE>
O. Principal Write-Offs and Recoveries For / Through May, 1998
<TABLE>
<CAPTION>
For The 3.4
Months Ended
May, 1998 May 31, 1998
--------------------------------------
<S> <C> <C>
Principal Write-Offs:
2% Losses on 98% Claims........ $ 8,100.14 $31,347.34
Other Write-Offs............... $21,368.25 22,321.71
Recoveries....................... $ 0.00 (221.30)
--------------------------------------
Net Write-Offs................... $29,468.39 $53,447.75
======================================
</TABLE>
P. Ratio of Assets to Liabilities as of May 31, 1998
<TABLE>
<CAPTION>
Amount
-------------------
<S> <C>
Total Indenture Assets............................... $929,156,025.76
Total Indenture Liabilities.......................... 924,522,145.22
-------------------
Ratio................................................ 100.50%
===================
</TABLE>
Page 8 of 8
