OREANDA-NEWS. Fitch Ratings has affirmed the New Mexico Educational Assistance Foundation - 1998 Trust Indenture notes as follows:

--Series 2001, class A-1 at 'AAAsf'; Outlook Stable;

--Series 2002, class A-2 at 'AAAsf'; Outlook Stable;

--Series 2003, class A-2 at 'AAAsf'; Outlook Stable;

--Series 2004, class A-1 at 'AAAsf'; Outlook Stable;

--Series 2007, class A-1 at 'AAAsf'; Outlook Stable;

--Series 2007, class A-2 at 'AAAsf'; Outlook Stable;

--Series 2009, class B-2016 at 'AAAsf'; Outlook Stable;

--Series 2009, class B-2017 at 'AAAsf'; Outlook Stable;

--Series 2009, class B-2018 at 'AAAsf'; Outlook Stable;

--Series 2009, class B-2019 at 'AAAsf'; Outlook Stable;

--Series 2009, class B-2020 at 'AAAsf'; Outlook Stable;

--Series 2013, class A-1 at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS

Collateral Quality: The trusts' collateral are comprised of 100% of Federal Family Education Loan Program (FFELP) loans. The credit quality of the trust collateral is high, in Fitch's opinion, based on the guarantees provided by the transaction's eligible guarantors and reinsurance provided by the U. S. Department of Education (ED) for at least 97% of principal and accrued interest. Fitch currently rates the U. S. sovereign 'AAA' with a Stable Outlook.

Credit Enhancement (CE): CE is provided by excess spread and overcollateralization. As of the end of the March 2016 collection period, reported total parity is 115.4% (13.34% CE). Excess cash can be released to the issuer so long as total parity is at least 130% and the Market Value of the Trust Estate is above 15% of the value at issuance.

Liquidity Support: Liquidity support is provided by a $22,000,000 supplemental reserve subaccount and a debt service reserve fund sized at the greater of 1% of the bonds outstanding or $1,000,000. The supplemental reserve subaccount will step down to $4,000,000 on the September 2016 distribution date and will be fully released as of the September 2017 distribution date.

Servicing Capabilities: Servicing is provided by the New Mexico Educational Assistance Foundation (NMEAF). Great Lakes Education Loan Services, Inc. (Great Lakes) is the backup servicer. Fitch has reviewed the servicing operations of both NMEAF and Great Lakes and believes them to be acceptable servicers of FFELP student loans.

CRITERIA VARIATION WITH REGARD TO ELIGIBLE INVESTMENTS:

Under the 'Counterparty Criteria for Structured Finance and Covered Bonds', dated July 18, 2016, Fitch looks to its own ratings in analyzing counterparty risk and assessing a counterparty's creditworthiness. The definition of the permitted investment for this deal allows possibility of using investments not rated by Fitch, this represents a criteria variation. Fitch doesn't believe that such variation has a measurable impact upon the ratings assigned.

CRITERIA VARIATION WITH REGARD TO SHORT-TERM ASSETS AND USE OF CAPITALIZED INTEREST FUND FOR THE SHORT-TERM ASSETS:

Fitch will give credit to certain short-term trust assets that are expected to be realized in cash in the next nine months but are not included in any other asset inputs of the model. The current FFELP criteria report is silent on the treatment of these short-term assets.

RATING SENSITIVITIES

Since the FFELP student loan ABS relies on the U. S. government to reimburse defaults, 'AAAsf' FFELP ABS ratings will likely move in tandem with the 'AAA' U. S. sovereign rating. Aside from the U. S. sovereign rating, defaults, basis risk, and loan extension risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults, basis shock beyond Fitch's published stresses, lower than expected payment speed, and other factors could result in future downgrades. Likewise, a buildup of CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.