Fitch Assigns Ratings to Colorado Student Obligation Bond Authority Student Loan Issuance.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 24, 2003

Fitch Ratings assigns ratings to the following student loan revenue obligations issued by Colorado Student Obligation Bond Authority (CSOBA):

Ratings for new issuance:

-- $65,000,000 Student Loan Revenue Bonds, Senior 2003 Series

VIII-A1, 'AAA';

-- $120,000,000 Taxable Student Loan Revenue Notes, Senior 2003

Series VIII-A2, 'AAA';

Existing Debt

-- $32,000,000 Student Loan Revenue Bonds, Senior 2002 Series

VII-A1, 'AAA';

-- $16,000,000 Student Loan Revenue Bonds, Senior 2002 Series

VII-A2, 'AAA';

-- $62,000,000 Taxable Student Loan Revenue Notes, Senior 2002

Series VII-A3, 'AAA';

-- $36,250,000 Student Loan Revenue Bonds, Senior 2001 Series

V-A, 'AAA';

-- $63,800,000 Taxable Student Loan Revenue Notes, Senior 2001

Series VI-A, 'AAA'.

-- $64,900,000 Taxable Student Loan Revenue Notes, Senior 1999

Series IV-A1, 'AAA';

-- $64,900,000 Taxable Student Loan Revenue Notes, Senior 1999

Series IV-A2, 'AAA';

-- $19,300,000 Student Loan Revenue Bonds, Senior 1999 Series

IV-A4, 'AAA';

-- $21,000,000 Student Loan Asset-Backed Bonds, Senior

Subordinate 1995 Series II-B, 'A';

-- $6,000,000 Student Loan Asset-Backed Notes, Senior Subordinate

1993 Series I-B, 'A';

The ratings are based on the high quality of the Federal Family Education Loan Program (FFELP) student loan collateral, the credit enhancement within the trust, and the sound legal structure. The ratings reflect the ability of the trust estate to redeem the notes and bonds at maturity and pay timely interest. The ratings do not address the ability of the series VIII-A2 noteholders to tender their notes at a remarketing date, the ability of the trust to pay carry-over interest, nor do they address the ability of auction-rate bondholders or noteholders to successfully redeem their obligations at an auction now or in the future.

The senior 2003 series VIII-A obligations are issued under the eighth series trust indenture, dated April 1, 2003, between CSOBA and Bank of New York. The eighth series trust indenture supplements the amended and restated trust indenture, dated as of November 1, 1999. Proceeds from the senior 2003 series VIII-A obligations will be used to acquire and originate FFELP student loans. Funding of the reserve account and costs of issuance will be paid through a contribution from CSOBA.

The senior 2003 series VIII-A1 bonds are tax-exempt, with interest based on the 35-day auction rate. Interest is payable semiannually, and the legal final maturity date is June 1, 2037.

The senior 2003 series VIII-A2 notes are taxable and will be indexed to the three-month London Interbank Offered Rate (LIBOR) plus a spread, with the first remarketing date expected to occur five years after closing. At each series VIII-A2 remarketing date, the notes will be remarketed and pay interest at a floating rate indexed to LIBOR, or the 'AA' financial commercial paper (CP) rate, plus a spread, to be determined. The legal final maturity date is December 1, 2032.

The collateral securing each series of bonds consists entirely of Federal Family Education Loan Program (FFELP) student loans. Depending upon origination date, these loans are guaranteed up to 98% and 100% of principal and accrued interest by an eligible guarantor and re-insured by the U.S. Department of Education (ED).

Nelnet Loan Services Inc. and the Colorado Student Loan Program (CSLP) will service the portfolio.

CSOBA was created in 1979 to assists Colorado residents in meeting the expenses of higher education opportunities. Originally created as a political subdivision of the State of Colorado, on May 26, 2000 CSOBA became a division of the Colorado Department of Higher Education.

The sole underwriter on this transaction is William R. Hough.