2008-11-03 16:00:02 -
- Fitch Ratings has affirmed 59 classes from the following Federal Family Education Loan Program (FFELP) student loan asset-backed notes issued by SLM Corp (SLM).
Overall, collateral performance for the trust has been consistent with expectations from a net default and delinquency perspective.
The trusts finance FFELP collateral using both LIBOR floating rate notes and taxable auction rate
notes. Auction rate notes comprise varying percentages of each trust, the percentages as of the most recent distribution date are:
--2002-7: 58.64%
--2003-2: 34.97%
--2003-5: 28.67%
--2003-10: 54.76%
--2006-7: 8.41%
--2007-4: 1.09%
--2007-5: 1.71%
The taxable auction rate notes in each trust are currently bearing interest at the maximum rate. The trust documents define the maximum rate as the lesser of 1 month LIBOR + 1.50% or 2.50%, depending on the rating of the note, the student loan rate, which is equal to the weighted average interest rate of the trust student loans minus administrative expenses and 18%. The maximum rate definition limits the amount of interest the trust can pay on the auction rate notes.
Parity ratios have remained stable despite auction failures causing bonds to pay interest at the maximum rate. The total parity ratios for the trusts as the most recent distribution date are:
--2002-7: 100%
--2003-2: 100%
--2003-5: 100%
--2003-10: 100.48%
--2006-7: 100%
--2007-4: 100%
--2007-5: 100%
Credit enhancement consists of excess spread, overcollateralization, and liquidity in the form of a reserve account and depending on deal seasoning, a cash capitalization account. Additionally, the class A notes benefit from subordination provided by the lower priority notes. The excess spread generated by the trusts has been sufficient to cover any losses and pay note principal to build credit enhancement.
The collateral supporting the notes consists of federally guaranteed loans originated under the FFELP (Federal Family Education Loan Program). FFELP loans are guaranteed by an eligible guarantor to at least 97% of principal and accrued interest, depending on loan origination date.
The loans are serviced and originated by SLM Corp. SLM Corp. provides funds for educational loans, primarily federal guaranteed student loans originated under the FFELP. SLM Corp. and its subsidiaries are not sponsored by or agencies of the U.S. government. Fitch has assigned SLM Corp. a long- and short-term Issuer Default Ratings (IDRs) of 'BBB' and 'F3', respectively. Fitch has assigned Sallie Mae a servicer rating of 'Proficient Plus'.
The ratings affirmed are as follows:
SLM Student Loan Trust 2002-7:
--Class A-5E at 'AAA';
--Class A-6 ARS at 'AAA';
--Class A-7 ARS at 'AAA';
--Class A-8 ARS at 'AAA';
--Class A-9 ARS at 'AAA';
--Class A-10 ARS at 'AAA';
--Class A-11 ARS at 'AAA';
--Class B ARS at 'AAA'.
SLM Student Loan Trust 2003-2:
--Class A-4L at 'AAA';
--Class A-5E at 'AAA';
--Class A-6 ARS at 'AAA';
--Class A-7 ARS at 'AAA';
--Class A-8 ARS at 'AAA';
--Class A-9 ARS at 'AAA';
--Class B ARS at 'AAA'
SLM Student Loan Trust 2003-5:
--Class A-4L at 'AAA';
--Class A-5E at 'AAA';
--Class A-6 at 'AAA';
--Class A-7 at 'AAA';
--Class A-8 at 'AAA';
--Class A-9 at 'AAA';
--Class B at 'AAA'.
SLM Student Loan Trust 2003-10
--Class A-1A at 'AAA';
--Class A-1B at 'AAA';
--Class A-1C at 'AAA';
--Class A-1D at 'AAA';
--Class A-1E at 'AAA';
--Class A-1F at 'AAA';
--Class A-1G at 'AAA';
--Class A-1H at 'AAA';
--Class A-2 at 'AAA';
--Class A-3 at 'AAA';
--Class A-4 at 'AAA';
--Class B at 'AAA'.
SLM Student Loan Trust 2006-7
--Class A-2 at 'AAA';
--Class A-3 at 'AAA';
--Class A-4 at 'AAA';
--Class A-5 at 'AAA';
--Class A-6A at 'AAA';
--Class A-6B at 'AAA';
--Class A-6C at 'AAA';
--Class B at 'AAA'.
SLM Student Loan Trust 2007-4
--Class A-1 at 'AAA';
--Class A-2 at 'AAA';
--Class A-3 at 'AAA';
--Class A-4A at 'AAA';
--Class A-4B at 'AAA';
--Class A-5 at 'AAA';
--Class B-1 at 'AAA'.
--Class B-2A at 'AA+'
--Class B-2B at 'AA+'.
SLM Student Loan Trust 2007-5
--Class A-1 at 'AAA';
--Class A-2 at 'AAA';
--Class A-3 at 'AAA';
--Class A-4 at 'AAA';
--Class A-5 at 'AAA';
--Class A-6 at 'AAA';
--Class B-1 at 'AA+';
--Class B-2 at 'AA+'.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Fitch Ratings, New York
Emily Lee, +1-212-908-0667
Andrea Murad, +1-212-908-0896
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com 
