2009-05-08 16:36:02 -

Fitch Ratings has observed a recent increase in the volume of rating confirmation requests for actions by Student Loan ABS issuers and their arranger as dislocations in the credit markets continue. Many of these actions, in Fitch's opinion, are outside the scope of those contemplated in the context of transaction documents when initially rating the transactions.

Examples of these actions include

but are not limited to.

--Extensions or reinstatements of recycling periods for reasons other than to originate and purchase student loans for the benefit of the trust, including to obtain government funding provided by the Ensuring Continued Access to Student Loans Act (ECASLA);

--Using money in recycling, loan, or other trust accounts to purchase outstanding bonds at a discount;

--Selling trust collateral to redeem outstanding bonds at a discount;

--Entering into new swap agreements;

--Lowering parity ratios for cash release.

While such actions may or may not have credit implications for existing ratings, Fitch believes all noteholders should be aware of and have the opportunity to determine whether such actions are in their best interest or not. As documented in its Jan.13, 2009 press release 'Fitch Clarifies Policy for Structured Finance Rating Confirmations', the decision to provide a rating confirmation remains entirely within Fitch's discretion and Fitch is never obligated to provide a confirmation. In clarifying its policy, Fitch's intention is to provide greater transparency with respect to rating confirmations and to reiterate that Fitch will not always choose to provide one.

Going forward, Fitch will treat formal student loan ABS confirmation requests as notifications of intended actions when it deems such actions to be outside the scope of those contemplated when Fitch initially rated the transaction. Such notification allows the agency to decide what, if any, rating action or public commentary is, in Fitch's view, appropriate. Fitch also encourages issuers and arrangers to disclose publicly, as early as possible, any proposed changes and amendments to transaction structures and documents. This will enable investors to conduct their own analysis in a timely fashion.

In the Jan. 13, 2009 press release, Fitch emphasized that its ratings are based on the transaction documents at the time of closing and any subsequent amendments that are communicated to Fitch. Noteholders or the trustee acting on behalf of the noteholders are also encouraged as parties to the transaction to perform their own risk analysis of any proposed changes or amendments. Fitch reminds interested parties that as the agency is not a transaction party, it is not bound by the provisions of the transaction documents and does not provide consent to or approval of changes or amendments to the transaction documents or structure.

Fitch is not responsible for the structuring of transactions - which remains the sole preserve of transaction parties - and the policy with respect to rating confirmations reflects this principle.

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 RatingsMichael Dean, 212-908-0556Cynthia Ullrich,
212-908-0609Suzanne Mistretta, 212-908-0639 (New York)Media
Relations:Sandro Scenga, 212-908-0278 (New York) sandro.scenga@fitchratings.com : mailto:sandro.scenga@fitchratings.com