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FITCH REVISES CRITERIA FOR RATING STUDENT LOAN BACKED DEALS -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 13 /PRNewswire/ -- In a report published today, "Student Loan Market Update," Fitch revises its criteria for analyzing student loan securitizations based on recent passage of President Clinton's Budget Reconciliation bill.
 While the new laws will have far reaching implications for the student loan industry, the effect on Fitch-rated student loan-backed issues will be minimal. Fitch's new criteria for analyzing Federal Family Education Loan Program financings is based on the new laws. The following are the legislative changes that will affect Fitch's analysis.
 -- Loans made on or after Oct. 1, 1993 are insured at 98 percent of defaulted loan balance rather than 100 percent. In addition, the yield on student loan assets will be reduced. Therefore, issuers that plan to purchase loans affected by these changes will be required to submit new cash flow projections to obtain Fitch's approval.
 -- The U.S. Department of Education now has expanded ability to terminate and liquidate the guaranty agencies. This change eliminates the nonreimbursement risk regarding state-supported agencies because the federal government assumes the guaranty obligations.
 The report addresses the new criteria and the legislation's effect on guaranty agencies, lenders, secondary markets, and servicers. For a copy call 800-75-FITCH.
 -0- 9/13/93
 /CONTACT: Betsy Hill, 212-908-0612 or Carol A. Pfeiffer, 212-908-0534, both of Fitch/


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WB -- NY093 -- 1444 09/13/93 16:16 EDT
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Date:Sep 13, 1993
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