2010-08-27 19:13:02 -

Fitch Ratings affirms the senior student loan notes at 'AAAsf' and downgrades the subordinate note to 'A+sf' issued by Iowa Student Loan Liquidity Corporation Series 2005-1. Fitch also has assigned Stable Outlooks. Fitch's Global Structured Finance Rating Criteria and FFELP student loan ABS rating criteria, as well as the refined basis risk criteria outlined in the press release 'Fitch to Begin Review of U.S.
FFELP SLABS Applying Updated Criteria' dated June 29, 2010 were used to review the ratings.

The rating on the senior notes is affirmed based on the sufficient level of credit enhancement consisting of subordination, overcollateralization, and the projected minimum excess spread to cover the applicable basis factor stress. The rating on the subordinate note is downgraded

to 'A+sf' because the level of hard credit enhancement is only capable of absorbing the applicable basis risk stress level after accounting for the trust's cost structure and its ability to generate excess spread towards the tail end of the transaction. Although the trust parity is reported to be at 105%, Fitch applied the release level parity of 100.5% for the analysis.

Fitch has taken the following rating actions.

Iowa Student Loan Liquidity Corporation, Series 2005-1:--Class A-2 affirmed at 'AAAsf/LS1'; Outlook Stable;--Class A-3 affirmed at 'AAAsf/LS1'; Outlook Stable;--Class B downgraded to 'A+sf/LS3' from 'AAAsf/LS3'; Outlook Stable.

Additional information is available at www.fitchratings.com : .

Related Research:--'Global Structured Finance Rating Criteria' dated Aug. 13, 2010;--'U.S.FFELP Student Loan ABS Rating Criteria' dated April 11, 2008;--'Fitch to Begin Review of U.S. FFELP SLABS Applying Updated Criteria' dated June 29, 2010.

Related Research:Global Structured Finance Rating Criteria www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id= .. :

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Fitch RatingsPrimary Analyst:Emily Lee, +1-212-908-0667DirectorOne
State Street PlazaNew York, NY 10004orCommittee

Chairperson:Aoto Kenmochi, +1-212-908-0867Senior DirectororMedia
Relations:Sandro Scenga, +1-212-908-0278 sandro.scenga@fitchratings.com : mailto:sandro.scenga@fitchratings.com