NEW YORK--(BUSINESS WIRE)--July 12, 2006--Fitch assigns ratings to the following Vermont Student Assistance Corporation's (VSAC) education loan revenue bonds, senior series 2006:

Ratings for New Issuance:

-- $58,450,000 senior series 2006TT, 'AAA';

-- $58,400,000 senior series 2006UU, 'AAA';

-- $58,400,000 senior series 2006VV, 'AAA'.

Rating Affirmation of Outstanding Bonds:

-- $45,000,000 senior series 2003EE 'AAA';

-- $25,900,000 senior series 2003FF 'AAA';

-- $40,000,000 senior series 2003GG 'AAA';

-- $50,000,000 senior series 2003HH 'AAA';

-- $52,500,000 senior series 2003II 'AAA';

-- $52,500,000 senior series 2003JJ 'AAA';

-- $45,000,000 senior series 2003KK 'AAA';

-- $50,000,000 senior series 2003LL 'AAA';

-- $39,350,000 senior series 2002BB 'AAA';

-- $39,400,000 senior series 2002CC 'AAA';

-- $33,750,000 senior series 2002DD 'AAA';

-- $30,000,000 senior series 2001V 'AAA';

-- $29,750,000 senior series 2001W 'AAA';

-- $27,500,000 taxable senior series 2001X 'AAA';

-- $27,500,000 taxable senior series 2001Y 'AAA';

-- $25,000,000 senior series 2001Z 'AAA';

-- $25,000,000 taxable senior series 2001AA 'AAA';

-- $11,950,000 senior series 2000Q 'AAA';

-- $40,850,000 senior series 2000R 'AAA;

-- $40,850,000 senior series 2000S 'AAA';

-- $11,000,000 senior series 2000P 'AAA';

-- $40,850,000 senior series 2000T 'AAA';

-- $50,000,000 senior series 2000U 'AAA';

-- $38,000,000 senior series 1998K 'AAA';

-- $38,000,000 senior series 1998L 'AAA';

-- $37,750,000 senior series 1998M 'AAA';

-- $41,250,000 senior series 1998N 'AAA';

-- $25,000,000 senior series 1996F 'AAA';

-- $25,000,000 senior series 1996G 'AAA';

-- $25,000,000 senior series 1996H 'AAA';

-- $25,000,000 senior series 1996I 'AAA';

-- $24,000,000 senior series 1995A 'AAA';

-- $24,000,000 senior series 1995B 'AAA';

-- $24,000,000 senior series 1995C 'AAA';

-- $24,000,000 senior series 1995D 'AAA';

-- $10,000,000 subordinate series 1998O 'A'.

The 'AAA' ratings are based on the quality of the student loan portfolio; the credit enhancement provided, the sound legal structure of the transaction and financial guaranty insurance policies provided by Ambac Assurance Corporation (Ambac). The ratings reflect the ability of the trust estate to pay note principal at maturity and pay timely interest. The ratings do not address the ability of the trust to pay carry-over interest, nor do they address the ability of the auction-rate bondholders to successfully remarket their bonds at an auction now or in the future.

In addition, 'AAA' ratings on all outstanding senior series bonds, as listed above, and 'A' rating on the subordinate series 1998 O bonds issued under the 1995 Education Loan Bond Resolution, adopted June 16, 1995, as amended and supplemented have been affirmed.

Credit enhancement is based on the quality of the student loan portfolio; the reserve fund, sized at the greater of 2.0% of total bonds outstanding or $500,000; the ability of the transaction to pass stressful cash flow test. The subordinate series 1998 O bonds provide approximately 0.55% subordination to the current total amount of all outstanding senior series bonds, including the senior series 2006 bonds. Additionally, a surety bond will be provided by Ambac to fund the debt service reserve fund requirement for the senior series 2006 bonds.

The senior series 2006TT and senior series 2006UU bonds will bear interest at a 35-day auction rate, payable semi-annually on each June 15th and Dec. 15th, commencing Dec. 15, 2006. The senior series 2006VV bonds will bear interest at a seven-day auction rate, payable semi-annually on each June 15th and Dec. 15th, commencing Dec. 15, 2006.

The collateral consists of Federal Family Education Loan Program (FFELP) student loans, Health Education Assistance Program (HEAL) student loans, and VSAC's EXTRA, EXTRA Law, and EXTRA Medical private student loans. The FFELP loans represent approximately 87.1% of the collateral pool at closing, while the HEAL and VSAC EXTRA loans represent approximately 0.9% and 12.0% of the pool, respectively. The FFELP loans are guaranteed at 100%, 98% or 97% of principal and accrued interest, depending on origination date, by eligible guarantors and reinsured up to the same amounts by the U.S. Department of Education. The HEAL loans are guaranteed at 100% by the Secretary of the United States of Health and Human Services. VSAC's EXTRA, EXTRA Law, and EXTRA Medical student loans are not guaranteed.

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.

Contacts
Fitch Ratings, New York
Jeff Prackup, 212-908-0839
Sandro Scenga, 212-908-0278 (Media Relations)

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