Fitch Affirms Massachusetts Educational Financing Authority Series 2008; Outlook Stable

KEY RATING DRIVERS
High Collateral Quality: The collateral consists of 100% 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. 'AAA' with a Stable Outlook.

Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. As of April 2015, the reported senior parity is 107.32% which includes the reserve account balance. Since the pool factor is below 40%, the cash release parity excludes the reserve account balance, which brings the effective parity slightly above its cash release level of 106%.

Adequate Liquidity Support: Liquidity support is provided by a debt service reserve fund sized and maintained at 0.25% of the initial pool balance for the life of this transaction at \$753,927.

Acceptable Servicing Capabilities: Xerox Education Services, LLC is responsible for the day-to-day servicing of the loans in the trust. In Fitch's opinion, they are an acceptable servicer.

RATING SENSITIVITIES

Since FFELP student loan ABS rely 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 CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

Fitch has affirmed the following rating:
--class A notes at 'AAAsf; Outlook Stable.