OREANDA-NEWS. Fitch Ratings affirms all outstanding notes issued from SLM Student Loan Trust 2003-2 (SLM 2003-2). The Rating Outlook on all outstanding notes remains Stable.

Despite affirmation, Fitch believes SLM 2003-2's A-6 through A-9 notes face significant extension risk. They missed their legal final maturity dates on Sept. 15, 2028 based on Fitch's cash flow runs. In such scenarios, this could result in a technical default where the note misses its maturity date, although Fitch would expect ultimate repayment of full principal and interest afterwards. Furthermore, recent servicing agreement amendments dated Jan. 22, 2015 allow Navient Solutions, Inc. to make an optional purchase up to 10% of the initial pool balance, which if exercised would help the notes meet their maturity date.

KEY RATING DRIVERS

High Collateral Quality: The trust collateral consists 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 rating at 'AAA' with a Stable Outlook.

Sufficient Credit Enhancement: CE is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. As of the February 2015 collection period, total parity is 100% and senior parity is 109%, excluding the reserve account. Currently, cash is being released as the trust has maintained the cash release level of 100% total parity.

Liquidity Support: Adequate liquidity support is provided by a debt service reserve fund currently sized at the greater of 0.25% of the pool balance and \$2,005,060.
Acceptable Servicing Capabilities: Navient Solutions, Inc. is responsible for day-to-day servicing of the trust. Fitch believes Navient Solutions, Inc. to be an acceptable servicer of FFELP loans.

RATING SENSITIVITIES

Since 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 and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults and basis shock beyond Fitch's published stresses could result in future downgrades. Likewise, a buildup of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

Fitch has affirmed the following ratings:

SLM Student Loan Trust 2003-2:
--Class A-5 notes at 'AAAsf'; Outlook Stable;
--Class A-6 notes at 'AAAsf'; Outlook Stable;
--Class A-7 notes at 'AAAsf'; Outlook Stable;
--Class A-8 notes at 'AAAsf'; Outlook Stable;
--Class A-9 notes at 'AAAsf'; Outlook Stable;
--Class B notes at 'BBBsf'; Outlook Stable.