Iowa student loan liquidity corporation

NEW YORK -- Fitch has assigned a rating to the following student loan revenue obligations issued by CollegeInvest (formerly Colorado Student Obligation Bond Authority, or CSOBA):

Ratings for new issuance:

--$50,000,000 student loan revenue bonds, senior 2004 series X-A1 'AAA';

Existing debt:

--$38,500,000 student loan revenue bonds, senior 2004 series IX-A1 'AAA';

--$38,525,000 student loan revenue bonds, senior 2004 series IX-A2 'AAA';

--$96,000,000 taxable student loan revenue notes, senior 2004 series IX-A3 'AAA';

--$6,000,000 student loan revenue bonds, subordinate 2004 series IX-B4 'A';

--$65,000,000 student loan revenue bonds, senior 2003 series VIII-A1 'AAA';

--$120,000,000 taxable student loan revenue notes, senior 2003 series VIII-A2 'AAA';

--$32,000,000 student loan revenue bonds, Senior 2002 Series VII-A1 'AAA';

--$16,000,000 student loan revenue bonds, senior 2002 series VII-A2 'AAA';

--$62,000,000 taxable student loan revenue notes, senior 2002 series VII-A3 'AAA';

--$63,800,000 taxable student loan revenue notes, senior 2001 series VI-A 'AAA'.

--$36,250,000 student loan revenue bonds, senior 2001 series V-A 'AAA';

--$96,800,000 taxable student loan revenue notes, senior 1999 series IV-A1 'AAA';

--$96,800,000 taxable student loan revenue notes, senior 1999 series IV-A2 'AAA';

--$19,300,000 student loan revenue bonds, senior 1999 series IV-A4 'AAA';

--$21,000,000 student loan asset-backed bonds, senior subordinate 1995 series II-B 'A'.

The ratings are based on the quality of the Federal Family Education Loan Program (FFELP) student loan collateral, the credit enhancement within the trust, and the sound legal structure of the transaction. The ratings reflect the ability of the trust estate to redeem the notes and bonds at maturity and pay timely interest. The ratings do not address the ability of the holders of remarketing notes to tender their notes at any remarketing date, the ability of the trust to pay carry-over interest, nor do they address the ability of auction-rate security-holders to successfully redeem their obligations at an auction now or in the future.

The senior 2004 series X obligations are issued under the 10th series trust indenture, dated Dec. 1, 2004, between CollegeInvest and Bank of New York. The 10th series trust indenture supplements the amended and restated trust indenture, dated as of Nov. 1, 1999. Proceeds from the senior 2004 series X obligations will be used to acquire and originate FFELP student loans. Funding of the reserve account and costs of financing will also be paid through bond issuance proceeds.

The senior 2004 series X-A1 bonds are tax-exempt, with interest based on the 35-day auction rate. Interest is payable semiannually, and the legal final maturity date is Dec. 1, 2038.

The collateral securing each series of bonds consists entirely of Federal Family Education Loan Program (FFELP) student loans. These loans are guaranteed at least 98% of principal and accrued interest by an eligible guarantor and re-insured by the U.S. Department of Education (ED).

The student loans pledged under the indenture are currently serviced by Nelnet, Inc. (formerly Nelnet Loan Services Inc.), College Access Network (formerly the Colorado Student Loan Program or CSLP), and ISL Service Corp. (a wholly owned subsidiary of the Iowa Student Loan Liquidity Corporation).

CollegeInvest was created in 1979 to assist Colorado residents in meeting the expenses of higher education opportunities. Originally created as a political subdivision of the State of Colorado, CollegeInvest became a division of the Colorado Department of Higher Education on May 26, 2000.