2008-11-03 15:59:02 -

- Fitch Ratings has affirmed 9 classes from the Federal Family Education Loan Program (FFELP) student loan revenue bonds issued by Mississippi Higher Education Assistance Corporation.

Overall, collateral performance for the trust has been consistent with expectations from a net default and delinquency perspective. Approximately 88% of the bonds are tax-exempt auction-rate securities currently earning interest at the maximum

rate. The remaining 12% of the bonds are fixed rate. The trust documents define the maximum rate as the lesser of 175% multiplied by the SIFMA index and 14%. The maximum rate definition limits the amount of interest the trust can pay on the auction-rate notes.

Parity ratios, or the ratio of assets to liabilities, have remained stable despite auction failures causing bonds to pay interest at the maximum rate. The total parity ratio for the trust as of June 30, 2008 was 112.523%.

Credit enhancement consists of excess spread, overcollateralization and a reserve account. Additionally, the class A notes benefit from subordination provided by the lower priority notes.

The collateral supporting the bonds consists of federally guaranteed loans originated under FFELP. FFELP loans are guaranteed by an eligible guarantor to at least 97% of principal and accrued interest, depending on loan origination date.

The student loan portfolio is serviced by American Education Services and Chase Student Loan Servicing (neither entity carries a Fitch Seller/Servicer Rating).

The ratings affirmed are as follows:

Mississippi Higher Education Assistance Corporation 1993 Master Trust:

--Senior class 1994-A at 'AAA';

--Senior class 1994-B at 'AAA';

--Subordinate class 1994-C at 'AAA';

--Senior class 1996 A at 'AAA';

--Subordinate class 1996-C 9/1/2012 at 'AAA';

--Subordinate class 1996-C 9/1/2014 at 'AAA';

--Subordinate class 1996-C 9/1/2015 at 'AAA';

--Subordinate class 1996-C 9/1/2016 at 'AAA';

--Senior class 1998-B at 'AAA'.

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, 212-908-0667
Andrea Murad, 212-908-0896
or
Media Relations:
Sandro Scenga, 212-908-0278
Email: sandro.scenga@fitchratings.com