Fitch Rates CHESLA, Connecticut, Revenue Bonds.

NEW YORK -- Fitch rates the following student loan revenue bonds issued by Connecticut Higher Education Supplemental Loan Authority (CHESLA):

Fitch rates the following new issues:

-- $31,455,000 series 2005-A 'AAA';

-- $5,900,000 series 2005-B 'AAA'.

Fitch confirms ratings on the following existing debt:

-- $17,000,000 series 2003-A 'AAA';

-- $12,065,000 series 2003-B 'AAA'.

The ratings are based on the support of Financial Guaranty Insurance Policies provided by MBIA Corporation (insurer financial strength rated 'AAA' by Fitch). The series 2005 bonds are issued pursuant to the second supplemental bond resolution dated Feb. 8, 2005 to a bond resolution, dated as of June 10, 2003. The 2005 series bond proceeds will be used to acquire approximately $27.6 million of Connecticut Family Education Loan Program (CT FELP) private label loans, to redeem the $6.9 million of outstanding series 1993 and 1994 bonds outstanding under the 1990 bond resolution, deposit $750,000 to the capitalized interest account, fund the special capital reserve fund (the SCRF) with a $3.0 million deposit, and to pay costs of issuance.

The tax-exempt series 2005 bonds are fixed-rate securities, with interest paid semiannually on the 15th of each May and November, commencing on Nov. 15, 2005. Principal on the 2005 series A and B bonds will be paid according to serial maturity schedules, commencing on Nov. 15, 2005.

The SCRF is the primary source of internal credit enhancement for the 2005 series bonds. The SCRF is available to pay interest and principal when due and payable to the extent that there are deficits in the debt service subaccounts maintained by the trustee. The SCRF reserve requirement is equal to the lesser of the sum of the series SCRF requirements or the maximum amount of principal and interest coming due on the bonds secured by the SCRF in any bond year.

At closing, all of the collateral securing the bonds are credit-tested alternative loans originated under the CT FELP program. The CT FELP alternative loans are not guaranteed by the Department of Education.

The student loans pledged under the indenture will be serviced by Firstmark, LLC.

CHESLA, a public corporation and governmental instrumentality, is organized under the laws of the State of Connecticut. CHESLA is authorized to issue bonds or notes for the purpose of providing financial assistance to Connecticut students and families using private student loans to supplement the costs of postsecondary education beyond those covered by federally insured loan programs. The CT FELP loans are available to students and families from the State of Connecticut, as well as those students and families who are attending eligible institutions in the State of Connecticut.