The ratings are based on the quality of Federal Family Education Loan Program (FFELP) student loan portfolio, the quality of the servicing provided by Sallie Mae Inc., rated 'ABPS/S1' by Fitch, the transaction's legal structure and level of credit enhancement. The ratings reflect the ability of the trust estate to pay note principal at the legal final maturity and timely interest. The ratings do not address the ability of the indenture trustee to auction the collateral pool prior to the stated maturity of the notes.

Credit enhancement for the trust consists of the excess spread, a reserve account, sized at 25 basis points (bps) of the current student loan pool balance with a floor of approximately $6 million; and the $160,000,000 capitalized interest account. In addition, the class A notes benefit from 3.0% subordination provided by the class B notes.

The transaction has a senior subordinate structure with eight classes of notes. Interest on the classes A-1, A-2, A-3, A-4, A-5A, A-6 and B notes is indexed to the three-month London interbank offered rate (LIBOR) plus a spread, and interest on the class A-4 notes is indexed to the three-month Euro interbank offered rate (EURIBOR) plus a spread. All of the notes pay quarterly commencing Jan. 25, 2007.

The collateral securing the notes are consolidation loans originated under the Federal Family Education Loan Program (FFELP). The loans are guaranteed to at least 97% of principal and accrued interest by an eligible guarantor(s), depending on loan origination date, and are reinsured by the U.S. Department of Education up to the same amounts. Sallie Mae, Inc. will act as servicer for the loan portfolio.