OREANDA-NEWS. Fitch Ratings has affirmed the senior notes at 'AAAsf' issued by Illinois Student Assistance Commission, 2010 Indenture, student loan asset-backed notes, series 2010-1 (ISAC 2010-1). The Rating Outlook remains Stable.

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. 'AAA' with a Stable Outlook.

Sufficient Credit Enhancement: Credit enhancement (CE) is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. As of March 31, 2015, total parity was 113.43% (11.84% CE). The trust is in turbo, and no cash may be released until all the bonds have been paid in full.

Adequate Liquidity Support: Liquidity support is provided by a debt service reserve fund sized at the greater of 0.25% of the pool balance and \$940,801.

Acceptable Servicing : Edfinancial Services LLC (Edfinancial) and Navient Solutions, Inc. (formerly, Sallie Mae, Inc.) are responsible for the day to day servicing of the student loans and Pennsylvania Higher Education Assistance Agency (PHEAA) is the backup servicer. Fitch believes Edfinancial, Navient Solutions and PHEAA to be acceptable servicers of FFELP student loans.

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 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 build-up of CE driven by positive excess spread given favourable basis factor conditions could lead to future upgrades.

DUE DILIGENCE USAGE

Fitch was not provided due diligence information from any third parties relating to ISAC 2010-1.

Fitch has affirmed the following ratings:

Illinois Student Assistance Commission, 2010 Indenture
student loan asset-backed notes, series 2010-1:
--Class A-2 notes at 'AAAsf'; Outlook Stable;
--Class A-3 notes at 'AAAsf'; Outlook Stable.