Fitch Rates Alaska Student Loan Corporation's Education Loan Revenue Bonds.

NEW YORK -- Fitch rates the following education loan revenue bonds issued by Alaska Student Loan Corporation (ASLC):

Ratings for new issuance:

-- $58,250,000 senior 2005 series A 'AAA';

In addition, Fitch confirms the following ratings:

-- $21,100,000 senior 2002 series A 'AAA';

-- $15,000,000 subordinate 2002 series B 'A';

-- $16,500,000 senior 2003 series A-1 'AAA';

-- $30,500,000 senior 2003 series A-2 'AAA';

-- $45,500,000 senior 2004 series A-1 'AAA';

-- $47,600,000 senior 2004 series A-2 'AAA';

-- $22,015,000 senior 2004 series A-3 'AAA'.

The ratings are based on the credit quality of the Federal Family Education Loan Program (FFELP) and Alaska Advantage Student Loan Program (AASLP) student loan collateral, credit enhancement in the trust, and the sound legal structure. The senior 2005 series A bonds are issued pursuant to the fourth supplemental bond indenture dated July 1, 2005 to a master bond indenture, dated as of June 1, 2002. The senior 2005 series A bond proceeds will be used to deposit $1.2 million to the capital reserve fund, deposit $56.5 million to the AASLP acquisition fund, and to pay costs of issuance. Funds in the acquisition account may be used until July 1, 2008 to acquire additional AASLP private student loans. At closing, the total parity ratio will be no less than 126.5%, and the senior parity ratio will be no less than 134.4%, calculated with the capital reserve fund.

The tax-exempt series 2005 bonds are fixed-rate securities, with interest paid semiannually on the first of each June and December, commencing on Dec. 1, 2005. Principal on the 2005 series A bonds will be paid according to serial maturity schedules, commencing on June 1, 2008.

Credit enhancement will consist of the capital reserve fund, subordination, and excess spread. At closing, the capital reserve fund will be fully funded with approximately $5.6 million. The capital reserve fund is available to pay interest and principal when due and payable to the extent that there are insufficient funds in the bond interest and principal accounts. The capital reserve fund reserve requirement is equal to the greater of 2% of the bonds then outstanding under the 2002 master indenture or $500,000. In addition, the senior notes will also benefit from 5.85% subordination provided by the subordinate 2002B notes.

At closing, 79% of the collateral securing the bonds will be credit-tested private loans originated under the AASLP program. The AASLP private loans are not guaranteed by the Department of Education (ED).The remaining 21% of the student loan pool at closing will comprise federally guaranteed student loans originated under the FFELP. Loans originated under the FFELP are guaranteed by the ED to at least 98% of principal and accrued interest.

The student loans pledged under the indenture will be serviced by the Alaska Commission on Postsecondary Education.

ASLC, a public corporation and governmental instrumentality, is organized under the laws of the State of Alaska. The AASLP loans are available to students and families from the State of Alaska, as well as those students and families who are attending eligible institutions in the State of Alaska.

Fitch's rating definitions are available on the agency's public web site, 'www.fitchratings.com'. Published ratings, criteria and methodologies, and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.