S&P Asgns Arizona Ed Ln Mrktng Corp Ser 2003 C/D Rtg.

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 26, 2003

Standard & Poor's Ratings Services today assigned its ratings to Arizona Educational Loan Marketing Corp.'s $400 million educational loan revenue bonds series 2003 C and D (see list).

The ratings assigned to the class C-1 senior student loan adjustable-rate revenue bonds (LIBOR floaters); class C-2, C-3, C-4, and D senior auction-rate certificates (ARCs); and class C-5 senior fixed-rate bonds are based on the following:

-- The structural features that restrict proprietary loan

originations to federally guaranteed student loans (guaranteed

by United Student Aid Funds and California Student Aid

Commission) that are insured by the U.S. Department of

Education;

-- The $38.8 million subordination of the series 2003 class D

bonds that make up 9.7% of the outstanding notes' balance that

are available to support the 'AAA' rated senior bonds;

-- The initial principal overcollateralization of the bonds,

making up 111.1% of the aggregate principal balance amount of

the senior bonds;

-- The excess spread;

-- The reserve account;

-- The bankruptcy-remote nonprofit issuer; and

-- The servicing record of Southwest Student Services Corp.

(SSSC).

The rating assigned to the class D subordinate student loan ARCs is based on the following:

-- The structural features that restrict proprietary loan

originations to federally guaranteed student loans (guaranteed

by United Student Aid Funds and California Student Aid

Commission) that are insured by the U.S. Department of

Education;

-- The initial principal overcollateralization of the bonds,

making up 101.1% of the aggregate principal balance amount of

the senior and subordinate bonds;

-- The excess spread;

-- The reserve account;

-- The bankruptcy-remote nonprofit issuer; and

-- The servicing record of SSSC.

RATINGS ASSIGNED
Arizona Educational Loan Marketing Corp.

Class     Rating     Amount (mil. $)
C-1       AAA                 215.00
C-2       AAA                  61.75
C-3       AAA                  61.70
C-4       AAA                  18.00
C-5       AAA                   4.75
D         A                    38.80

Copyright 2003, Standard & Poor's Ratings Services