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Fitch Ratings Affirms 5 Classes of NorthStar Education Finance, Inc. Series 2006-A.

NEW YORK -- Fitch Ratings has affirmed the following private student loan asset-backed notes issued by NorthStar Education Finance, Inc.:

Series 2006-A

--Class A-1 at 'AAA';

--Class A-2 at 'AAA';

--Class A-3 at 'AAA';

--Class A-4 at 'AAA';

--Class B at 'A'.

The rating affirmations are based on the quality and performance of the private loan collateral, the credit enhancement provided, and the legal structure. Overall, the collateral performance of the private student loans financed by NorthStar 2006-A has been consistent with Fitch's expectations from a net loss perspective. The excess spread generated by the trust has been sufficient to cover any losses and pay note principal to build credit enhancement. As a result, trust's total asset to liability or parity ratio has increased from 100.00% to 100.82% as of the June 2007 servicer report. The trust has not yet reached the requisite 103% total parity ratio or approximately $1.5 million in overcollateralization to release funds to the issuer.

The collateral securing the notes are private student loans made primarily to credit-tested graduate and professional students under the Total Higher Education (T.H.E.) Loan Program. The private student loans are intended to assist individuals in financing their undergraduate or graduate education beyond what the FFELP affords. The private loans are available to students enrolled in discipline-specific programs for law, MBA, and medical programs. The program also includes a national program generally available to other graduate students and undergraduate students who, alone or with a cosigner, meet certain credit underwriting criteria. The loans are serviced by Great Lakes Educational Loan Services, Inc. Fitch rates Great Lakes private student loan servicing capabilities as 'Proficient'.

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.
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Publication:Business Wire
Date:Aug 27, 2007
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