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ALASKA STUDENT LOAN CORP. REVENUE BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 ALASKA STUDENT LOAN CORP. REVENUE BONDS RATED 'A+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, July 15 /PRNewswire/ -- Alaska Student Loan Corp.'s $43.5 million State Assisted Student Loan Revenue Bonds, 1991 Series A, are rated 'A+' by Fitch. The rating reflects the quality of the student loans, substantial overcollateralization, and an adequate reserve fund.
 Annual receipts from the loans cover annual payments due to bondholders by 1.5 times. Therefore, the bondholders will be repaid on a timely basis even if defaults increase to as much as 4 times their historical experience, which has been between 5.5 percent and 12.3 percent annually for the past six years and has stabilized. Loans granted prior to July 1, 1987, are eligible for between 10 percent to 50 percent of the payments being forgiven. In order for any portion of a loan to be forgiven, the borrower must not be in default and must live in Alaska while repaying the loan. For the past six years, loan balances forgiven have been approximately 18 percent to 22 percent of principal repaid during each year. About 11 percent of the current loan balances are eligible for forgiveness. In terms of cash flow analysis, defaults and forgiveness are treated similarly.
 The legal structure is sound because Alaska Student Loan Corp. is a public corporation and government instrumentality within the Department of Education of Alaska and may not be involuntarily filed into bankruptcy.
 The student loans securing these bonds are originated under the Alaska Student Loan Program. These loans are not guaranteed under any U.S. Department of Education program. To qualify for a loan, the borrower must be a full-time student in an accredited program, not delinquent or in default on any other student loan, and a resident of Alaska at the time of application and for the two previous years. The loans do not bear interest, or have any principal due, during the years the borrower is in school. Depending upon when the loan was originated, the interest accrual rate on loans during the repayment period is either 5 percent or 8 percent.
 -0- 7/15/92
 /CONTACT: Suzanne Mistretta, 212-908-0637, or Mary E. Griffin, 212-908-0537, both of Fitch/ CO: Alaska Student Loan Corp. ST: Alaska IN: SU: RTG


PS -- NY044 -- 9503 07/15/92 11:30 EDT
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Publication:PR Newswire
Date:Jul 15, 1992
Words:387
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