Fitch Confirms Alaska Student Loan Corp. 2002 Master Indenture

Business Wire, April 23, 2008

NEW YORK -- Fitch Ratings has confirmed the following ratings for Alaska Student Loan Corporation (ASLC) 2002 Master Indenture:

--$21,100,000 education loan revenue bonds, senior series 2002A, 'AAA';

--$15,000,000 education loan revenue bonds, subordinate series 2002B, 'A';

--$16,500,000 education loan revenue bonds, senior series 2003A-1, 'AAA';

--$30,500,000 education loan revenue bonds, senior series 2003A-2, 'AAA';

--$45,500,000 education loan revenue bonds, senior series 2004A-1, 'AAA';

--$47,600,000 education loan revenue bonds, senior series 2004A-2, 'AAA';

--$22,015,000 education loan revenue bonds, senior series 2004A-3, 'AAA';

--$58,250,000 education loan revenue bonds, senior series 2005A, 'AAA';

--$30,000,000 education loan revenue bonds, senior series 2006A-1, 'AAA';

--$55,000,000 education loan revenue bonds, senior series 2006A-2, 'AAA';

--$41,500,000 education loan revenue bonds, senior series 2007A-1, 'AAA';

--$18,500,000 education loan revenue bonds, senior series 2007A-2, 'AAA';

--$49,000,000 education loan revenue bonds, senior series 2007A-3, 'AAA'.

Fitch has confirmed the above-referenced educational loan revenue bonds, given ASLC's intent to originate FFELP student loans on or after Oct. 1, 2007 (post-Oct. 1, 2007 loans) under the 2002 Master Indenture (the Indenture), which are expected to be originated during the recycling period, ending July 1, 2012. Fitch's rating confirmation is contingent upon ASLC originating no more than $29 million of additional post-Oct. 1, 2007 loans, or 6.3% of the student loan portfolio. Under the Indenture, there is $15 million of post-Oct. 1, 2007 loans, or 3.5% of the student loan portfolio, already included in the trust.

Currently, under the Indenture, loans receive special allowance payments (SAP) indexed to 90-day CP. As a result, of the enactment of the College Cost Reduction and Access Act of 2007 (CCRAA), post-Oct. 1, 2007 loans receive reduced SAP payments. For non-profit corporations, such as ASLC, a state agency, which was created in 1987 under Alaska state law, SAP rates were reduced 0.40% for Stafford and Consolidation Loans and reduced 0.70% for PLUS loans. This reduction generates lower yield and reduced excess spread, which is a primary source of credit enhancement available to the trust.

Although the bonds issued by ASLC consist primarily of auction rate bonds, the excess spread generated by the loan portfolio has provided sufficient revenue to not only cover the additional cost of funds due to auction rate market volatility, but also provide revenue to increase the trust's total parity to 114% and senior parity to 118%, excluding defaults. This represents an increase in total parity and senior parity of approximately 200 bps each respectively for the period June 1, 2007 through Dec. 31, 2007.

Additionally, the trust benefits from a parity capital reserve fund, currently sized at 2% of the outstanding bonds with a minimum floor of $500,000. The capital reserve fund serves as security for payment of principal of, and interest on, bonds issued under the 2002 Trust Indenture. If amounts held in the capital reserve fall below the reserve requirement, the State of Alaska (rated 'AA' by Fitch) may, but is under no legal obligation to, annually appropriate amounts sufficient to restore the reserve fund to the reserve requirement..

For more information on their most recent transaction, see the 'Alaska Student Loan Corporation, Senior Series 2007A' new issue report, available to all investors on the Fitch Ratings web site www.fitchratings.com.

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.