Fitch Rates South Carolina Student Loan Corporation Education Loan Revenue Bonds

Business Wire, July 14, 2003

Business Editors

NEW YORK--(BUSINESS WIRE)--July 14, 2003

Fitch rates the following Bonds issued by the South Carolina Student Loan Corporation (SCSLC):

Ratings for new issuance:

-- $75,000,000 Taxable Education Loan Revenue Bonds, 2003

Series A-1, 'AAA';

-- $67,000,000 Taxable Education Loan Revenue Bonds, 2003

Series A-2, 'AAA';

-- $67,000,000 Taxable Education Loan Revenue Bonds, 2003

Series A-3, 'AAA';

-- $66,000,000 Taxable Education Loan Revenue Bonds, 2003

Series A-4, 'AAA';

The following ratings have been affirmed:

-- $160,000,000 Taxable Education Loan Revenue Bonds, 2002 Series

L, 'AAA';

-- $50,000,000 Taxable Education Loan Revenue Bonds, 2002

Series CP, 'AAA';

-- $200,000,000 Taxable Education Loan Revenue Bonds, 2001 Series

L, 'AAA';

-- $200,000,000 Taxable Education Loan Revenue Bonds, 2001 Series

CP, 'AAA';

-- $110,000,000 Taxable Education Loan Revenue Bonds, 2000 Series

L, 'AAA';

-- $40,000,000 Taxable Education Loan Revenue Bonds, 2000

Series CP, 'AAA';

-- $150,000,000 Taxable Education Loan Revenue Bonds, 1999

Series, 'AAA';

-- $105,700,000 Taxable Education Loan Revenue Bonds, 1998 Series

A-1, 'AAA';

-- $105,700,000 Taxable Education Loan Revenue Bonds, 1998 Series

A-2, 'AAA';

-- $165,300,000 Taxable Education Loan Revenue Bonds, 1997 Series

A-2, 'AAA';

-- $80,000,000 Taxable Education Loan Revenue Bonds, 1997

Series A-3, 'AAA';

-- $85,000,000 Taxable Education Loan Revenue Bonds, 1996 Series

A-3, 'AAA';

The ratings are based on the quality of the student loan portfolio, the credit enhancement provided, and the sound legal structure. Credit enhancement for the senior bonds is in the form of a reserve fund and over-collateralization. The reserve fund is equal to the greater of the sum of the reserve requirement of each issued bond series or 0.01% of the original amount of all bonds outstanding, with a $750,000 minimum. After issuance, there will be approximately $15.8M or 1.08% of bonds outstanding, held in the combined reserve fund.

The ratings address the ability of the trust to pay bonds at maturity and pay timely interest on each payment date. The ratings do not address the ability of auction rate bondholders to successfully redeem their bonds at an auction now or in the future.

The taxable 2003 Series A-1 bonds are 1 year auction rate securities with interest paid semiannually on the first business day of March and September. The taxable 2003 Series A-2, A-3 and A-4 bonds are 28-Day auction rate securities with interest payable on the first business day following the end of an auction period. The legal final maturity for the 2003 bonds is June 1, 2033.

The collateral securing the bonds consists of FFELP student loans. The FFELP loans are guaranteed 100% or 98% of principal and accrued interest by an eligible guarantor(s) depending on loan origination date and re-insured by the U.S. Department of Education (ED). In addition to FFELP loans, the resolution permits the inclusion of alternative loans, which are not eligible for federal insurance, with rating agency confirmation. There are currently no alternative loans in the collateral pool.

South Carolina State Education Assistance Authority is the guarantor and South Carolina Student Loan Corporation is the servicer for the student loan portfolio.

The South Carolina Student Loan Corporation is a non-profit, public benefit corporation incorporated on November 15, 1973 under the laws of the State of South Carolina. SCSLC receives, disburses and administers funds exclusively for educational purposes and makes loans to students attending eligible post-secondary institutions that are South Carolina residents or attending South Carolina post-secondary institutions.

William R. Hough & Co. is the lead underwriter for the transaction.

For further information regarding the senior series 2002 bonds, please refer to South Carolina Student Loan Corporation's Presale Report issued June 9, 2003. A copy of the report is available on Fitch's web site at 'www.fitchratings.com' or by contacting Market Services at 1-800-853-4824.