OREANDA-NEWS. Fitch Ratings affirms the ratings on the senior and subordinate bonds issued from NorthStar Education Finance, Inc. 2006-A trust. The Outlook on all bonds remains Stable.

KEY RATING DRIVERS

Collateral Quality: As of the Jan. 25, 2015 distribution date, the trust is collateralized by approximately \$318.6 million of private student loans which are performing in line with initial expectations. The current cumulative gross defaults, as a percent of the repayment balance, are at 5.62% with approximately 47% pool factor. Additionally, Fitch calculated projected remaining defaults are in the 7% - 9% range. Additionally, a recovery rate of 15% was applied.

Credit Enhancement (CE): CE is provided by overcollateralization and excess spread. Additionally, the class A and B notes benefit from subordination. The senior parity has increased from the last review to 126.05% from 124.81%. The subordinate parity has also increased since the last review to 105.86% from 104.82%. Excess cash can be released from the trust as long as total parity is greater than 103% and all outstanding notes have at least 2.25% overcollateralization.

Liquidity Support: All the notes benefit from a liquidity support provided by a reserve account currently sized at \$2,979,549.

Servicing Capabilities: Great Lakes Educational Loan Services, Inc. is the servicer of this trust. Fitch believes Great Lakes to be an acceptable servicer of private student loans.

RATING SENSITIVITIES

As Fitch's base case default proxy is derived primarily from historical collateral performance, actual performance may differ from the expected performance, resulting in higher loss levels than the base case. This will result in a decline in credit enhancement and remaining loss coverage levels available to the notes and may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage.

Fitch affirms the following:

NorthStar Education Finance, Inc. 2006-A
--Class A-3 at 'AAAsf'; Outlook Stable;
--Class A-4 at 'AAAsf'; Outlook Stable;
--Class B at 'Asf'; Outlook Stable.