Fitch Rates Michigan Higher Education Student Loan Authority Bonds 'AAA'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch rates the following student loan revenue bonds issued by the Michigan Higher Education Student Loan Authority: -- $41,125,000 student loan revenue bonds, series XVII-P 'AAA'. The ratings are based on a financial guaranty insurance policy provided by Ambac Assurance Corporation Ambac Assurance Corporation A subsidiary of publicly traded Ambac Financial Group that provides financial guarantees for municipal borrowers and for asset-backed and structured issues. , whose insurer financial strength is rated 'AAA' by Fitch. The series XVII-P bonds are issued pursuant to the 1996 General Indenture, dated as of May 1, 1996, as further amended by a Eighth Supplemental Indenture, dated as of Oct. 1, 2005. The series XVII-P bond proceeds, along with a transfer from available funds of the Michigan Higher Education Student Loan Authority (the Authority), will be used to make a deposit of $41,125,000 to the student loan fund, and to pay costs of issuance. The tax-exempt series XVII-P bonds are fixed-rate securities, with interest paid semiannually on the first of each March and September, commencing on March 1, 2006. The collateral supporting the bonds consists of federally guaranteed loans originated under the Federal Family Education Loan Program The Federal Family Education Loan Program (FFELP) is a United States Department of Education program that provides for private organizations to market, originate, and service federally guaranteed loans, such as Stafford and PLUS loans to students and their parents. (FFELP FFELP Federal Family Education Loan Program ) and private loans, not guaranteed by the federal government or any third party, originated under the Authority's MI-LOAN Program. The private student loans pledged under the indenture are serviced by Nelnet Loan Services, Inc. (Nelnet), and the FFELP loans pledged under the Indenture are serviced by Nelnet, Sallie Mae Sallie Mae: see SLM Corporation. Servicing and Great Lakes Educational Loan Services, Inc. The Authority is a non-profit public corporation within the Michigan Department of Treasury created in 1975. The Authority, as a state-lending agency, is authorized to assist students and parents in paying for the cost of attending a degree granting schools located in the State of Michigan. Since the inception of the Authority's secondary market operations in early 1990 the Authority has issued 74 series of bonds or notes in an aggregate principal amount of $3,792,991,448. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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