Fitch Rates Alaska Student Loan Corporation's Senior Series 2006A.

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

Ratings for new issuance:

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

--$55,000,000 education loan revenue bonds, senior series 2006A-2.

In addition, Fitch confirms the following ratings:

--$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'.

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 series 2006A bond issuance proceeds will be used to fund the capital reserve fund, deposit $84.6 million to the AASLP loan acquisition fund, and pay fees and expenses. At closing, the AASLP loan acquisition fund balance will be approximately $122.4 million and the FFELP loan acquisition fund balance will be approximately $12.4 million. Funds on deposit in the acquisition funds will be used to acquire student loans until July 1, 2009, at which time any funds remaining in the acquisition funds will be transferred to the redemption fund as available funds. In addition, FFELP and AASLP student loan principal receipts may be used to purchase new FFELP, until July 1, 2011, and AASLP loans, until Jan. 1, 2011. At closing, the total parity ratio for the trust will be no less than 127.2%, calculated with the benefit of the capital reserve account and acquisition funds.

The tax-exempt senior series 2006A-1 bonds pay interest semi-annually based on a 25-day auction rate and the senior series 2006A-2 bonds pay interest semi-annually at a 5.00% fixed interest rate.

Credit enhancement will consist of subordination, overcollateralization and excess spread. In addition, the trust has a capital reserve fund which will be fully funded with approximately $7.0 million as of closing. The capital reserve fund minimum requirement is equal to the greater of $500,000 or 2% of the principal amount of bonds then outstanding.

At closing, 77.9% 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 22.1% of the student loan pool at closing will be comprised of 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 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.