Fitch Affirms Senior and Subordinate Notes of Educational Loan Company Trust I

NEW YORK--(BUSINESS WIRE)--Fitch Ratings affirms the senior student loan note at 'AAAsf' and the subordinate student loan note at 'Bsf' issued by Educational Loan Company Trust I. The Rating Outlook remains Stable for senior notes and Fitch has assigned a Negative Rating Outlook for the subordinate note.

Fitch used its 'Global Structured Finance Rating Criteria' and 'FFELP Student Loan ABS Rating Criteria', as well as the refined basis risk criteria outlined in Fitch's Sept. 22, 2010 press release 'Fitch to Gauge Basis Risk in Auction-Rate U.S. FFELP SLABS Review' to review the ratings. A full ratings list is shown below.

The ratings on the senior and subordinate notes are affirmed based on the sufficient level of credit enhancement consisting of subordination, overcollateralization and the projected minimum excess spread to cover the applicable risk factor stresses.

Outlook Negative was assigned to the subordinate note to reflect the low parity of approximately 97% as of the April 2011 report. In addition, the trust is currently generating negative excess spread resulting in the inability of the trust to increase parity to par.

Fitch has taken the following rating actions:

Educational Loan Company Trust I

--Class A-1 affirmed at 'AAA/LS1'; Outlook Stable.

--Class A-2 affirmed at 'AAA/LS1'; Outlook Stable.

--Class A-3 affirmed at 'AAA/LS1'; Outlook Stable.

--Class B affirmed at 'B/LS3'; Outlook Negative.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 13, 2010);

--'U.S.FFELP Student Loan ABS Rating Criteria' (April 11, 2008);

--'Fitch to Begin Review of U.S. FFELP SLABS Applying Updated Criteria' (June 29, 2010).

Applicable Criteria and Related Research:

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=616766

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326

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