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TEXT-Fitch comments on NJ Higher Ed Student Assistance Auth 2010-2
July 25, 2012 / 9:13 PM / 5 years ago

TEXT-Fitch comments on NJ Higher Ed Student Assistance Auth 2010-2

 (The following statement was released by the rating agency)
 July 25 - Fitch Ratings currently maintains the ratings as listed below for
the New Jersey Higher Education Student Assistance Authority (NJHESAA) student
loan revenue bonds issued under the 2010-2 master trust indenture (NJHESAA
2010-2 Trust). The Rating Outlook is currently Stable. Fitch has been notified
of a reduction of interest rates for the student loans to be originated from the
funds remaining in the acquisition fund with respect to the Series 2011-1 bonds,
issued under the 2010-2 master trust. 

As of July 25, 2012, the trust will reduce the interest rate on approximately 
$16 million of student loans which are expected to be originated on or before 
the end of the acquisition period in September 2012. NJHESAA has also increased 
the origination fee for a portion of these loans to be originated which will 
partially offset the reduction in interest income from the student loans. The 
trust is performing within Fitch's expectations relative to the closing cash 
flows. Since the closing of the series 2011-1 bonds in July 2011, parity for the
NJHESAA 2010-2 Trust has increased from 106.17% to 107% as of June 30, 2012. 
Although the reduction in interest rates is expected to reduce interest income 
slightly, Fitch believes this amount is not material, as it only affects less 
than 3% of the collateral. Given the trust's performance and excess spread, the 
reduction in interest rates for those loans to be originated should not impact 
the rating on the bonds.

The collateral supporting NJHESAA's 2010-2 trust's notes consists entirely of 
private student loans originated and serviced by NJHESAA, which is not rated by 
Fitch. The private student loans are intended to assist individuals in financing
their undergraduate or graduate education beyond what the Federal Family 
Education Loan Program (FFELP) affords. The private student loan collateral as 
well as the student loan revenue bonds have a fixed interest rate, so there is 
no basis risk in this transaction.

The current ratings of the Higher Education Student Assistance Authority of the 
State of New Jersey (NJHESAA), Student Loan Revenue Bonds, 2010-2 Indenture, 
Series 2010-2 are as follows:

--Serial 2012-1 'Asf'; Outlook Stable;
--Serial 2012-2 'Asf'; Outlook Stable;
--Serial 2013-1 'Asf'; Outlook Stable;
--Serial 2013-2 'Asf'; Outlook Stable;
--Serial 2014-1 'Asf'; Outlook Stable;
--Serial 2014-2 'Asf'; Outlook Stable;
--Serial 2015-1 'Asf'; Outlook Stable;
--Serial 2015-2 'Asf'; Outlook Stable;
--Serial 2016-1 'Asf'; Outlook Stable;
--Serial 2016-2 'Asf'; Outlook Stable;
--Serial 2017-1 'Asf'; Outlook Stable;
--Serial 2017-2 'Asf'; Outlook Stable;
--Serial 2018-1 'Asf'; Outlook Stable;
--Serial 2018-2 'Asf'; Outlook Stable;
--Serial 2019-1 'Asf'; Outlook Stable;
--Serial 2019-2 'Asf'; Outlook Stable;
--Serial 2020-1 'Asf'; Outlook Stable;
--Serial 2020-2 'Asf'; Outlook Stable;
--Serial 2021 'Asf'; Outlook Stable;
--Serial 2022 'Asf'; Outlook Stable;
--Serial 2023 'Asf'; Outlook Stable;
--Serial 2024 'Asf'; Outlook Stable;
--Serial 2025 'Asf'; Outlook Stable;
--Serial 2026 'Asf'; Outlook Stable;
--Serial 2027 'Asf'; Outlook Stable;
--Serial 2028 'Asf'; Outlook Stable;
--Super Sinker 2029 'Asf'; Outlook Stable;
--Serial 2030 'Asf'; Outlook Stable;
--Serial 2036 'Asf'; Outlook Stable.

The current ratings for the Higher Education Student Assistance Authority of the
State of New Jersey (NJHESAA), Student Loan Revenue Bonds, 2010-2 Indenture, 
Series 2011-1 are as follows:

--Serial 2012 'Asf'; Outlook Stable;
--Serial 2013 'Asf'; Outlook Stable;
--Serial 2014-1 'Asf'; Outlook Stable;
--Serial 2014-2 'Asf'; Outlook Stable;
--Serial 2015-1 'Asf'; Outlook Stable;
--Serial 2015-2 'Asf'; Outlook Stable;
--Serial 2016-1 'Asf'; Outlook Stable;
--Serial 2016-2 'Asf'; Outlook Stable;
--Serial 2017-1 'Asf'; Outlook Stable;
--Serial 2017-2 'Asf'; Outlook Stable;
--Serial 2018-1 'Asf'; Outlook Stable;
--Serial 2018-2 'Asf'; Outlook Stable;
--Serial 2019-1 'Asf'; Outlook Stable;
--Serial 2019-2 'Asf'; Outlook Stable;
--Serial 2020-1 'Asf'; Outlook Stable;
--Serial 2020-2 'Asf'; Outlook Stable;
--Serial 2021-1 'Asf'; Outlook Stable;
--Serial 2021-2 'Asf'; Outlook Stable;
--Serial 2022 'Asf'; Outlook Stable;
--Serial 2023 'Asf'; Outlook Stable;
--Serial 2024 'Asf'; Outlook Stable;
--Serial 2025 'Asf'; Outlook Stable;
--Serial 2026 'Asf'; Outlook Stable;
--Serial 2027 'Asf'; Outlook Stable;
--Term 2027 'Asf'; Outlook Stable;
--Serial 2028 'Asf'; Outlook Stable;
--Serial 2029 'Asf'; Outlook Stable;
--Serial 2033 'Asf'; Outlook Stable.

 (Caryn Trokie, New York Ratings Unit)
 

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