Fitch Rates Massachusetts Educational Financing Authority Bonds.

NEW YORK -- Fitch rates the following student loan revenue bonds issued by Massachusetts Educational Financing Authority (MEFA):

Ratings for new issuance:

-- $65,000,000 series 2004-A, 'AAA';

-- $40,000,000 series 2004-B, 'AAA';

-- $20,000,000 series 2004-C, 'AAA';

-- $20,000,000 series 2004-D, 'AAA';

Ratings confirmed on existing debt:

-- $9,030,000 series 1995-B, 'AAA';

-- $14,915,000 series 1996-B, 'AAA';

-- $2,500,000 series 1996-C, 'AAA';

-- $22,955,000 series 1997-B, 'AAA';

-- $50,855,000 series 1999-A, 'AAA';

-- $53,530,000 series 2001-A, 'AAA';

-- $8,850,000 series 2001-B, 'AAA';

-- $58,250,000 series 2001-C, 'AAA';

-- $16,700,000 series 2001-D, 'AAA';

-- $69,260,000 series 2002-A, 'AAA';

-- $14,700,000 series 2002-B, 'AAA';

-- $35,150,000 series 2002-C, 'AAA';

-- $35,150,000 series 2002-D, 'AAA';

-- $42,550,000 series 2002-E, 'AAA';

-- $45,000,000 series 2003-A, 'AAA';

-- $30,000,000 series 2003-B, 'AAA';

-- $20,000,000 series 2003-C, 'AAA';

-- $20,000,000 series 2003-D, 'AAA';

-- $44,950,000 series 2003-E, 'AAA'.

The ratings are based on the support of Financial Guaranty Insurance Policies provided by Ambac Assurance Corporation (rated 'AAA' insurer financial strength by Fitch). The series 2004 bonds are issued pursuant to the 10th supplemental indenture dated Nov. 15, 2004 to a trust indenture, dated as of May 1, 1992, as amended and restated as of Feb. 6, 2003. Issuance proceeds will be deposited to the loan account to purchase additional student loans until Nov. 15, 2007, to redeem the $10 million of outstanding series 1994 bonds, and to pay costs of issuance.

The tax-exempt series 2004 bonds are 35-Day Auction Rate Securities, with interest paid semiannually on the first of each January and July, commencing on July 1, 2005. The legal final maturity for the series 2004 bonds is Jan. 1, 2038.

At closing 90.5% of the collateral securing the bonds are credit-tested alternative loans originated under the MEFA Undergraduate Loan and MEFA Loan for Graduate Education loan programs. The MEFA alternative loans are not guaranteed by the Department of Education. The remaining 9.5% of the collateral pool at closing is comprised of loans originated under the Massachusetts Educational Financing Authority Federal Family Education Loan Program.

The student loans pledged under the indenture will be serviced by ACS Education Services.

MEFA, a public corporation and governmental instrumentality, is organized under the laws of the Commonwealth of Massachusetts. MEFA is authorized to issue bonds or notes for the purpose of purchasing, making or guaranteeing loans to students or parents.