OREANDA-NEWS. Fitch Ratings has affirmed the class A-2 note at 'AAAsf' with a Stable Rating Outlook for SLM Student Loan Trust 2008-1. Fitch also has maintained the class A-3 (currently rated 'AAAsf'), class A-4(currently rated 'AAAsf'), and class B notes (currently rated 'Asf') on Rating Watch Negative. For more information regarding the Rating Watch Negative, please see the release titled "Fitch Places 57 U.S. FFELP ABS Tranches on Rating Watch Negative for Maturity Risk" dated June 26, 2015

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. The current U.S. sovereign rating is 'AAA' with a Stable Outlook.

Sufficient Credit Enhancement (CE): While both the senior and subordinate notes will benefit from future excess spread, the senior notes also benefit from subordination provided by the class B note. As of March 2015, total parity is 100% and senior parity is 107.24% (6.75% CE). Cash is being released from the trust given that the 100% total parity is maintained.

Adequate Liquidity Support: Liquidity support is provided by a reserve account. The reserve is sized equal to the greater of 0.25% of the pool balance, and $1,499,914.

Acceptable Servicing Capabilities: Navient Solutions, Inc. (formerly known as Sallie Mae, Inc.), as servicer, will be responsible for servicing the portfolio. Fitch has reviewed the servicing operations of Navient Solutions and believes it to be acceptable servicer of FFELP student loans.

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 build-up of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

DUE DILIGENCE USAGE

Fitch was not provided due diligence information from any third parties relating to the SLM Student Loan Trust 2008-1.

Fitch has taken the following rating actions:

SLM Student Loan Trust Series 2008-1:
--Class A-2 affirmed at 'AAAsf'; Outlook Stable;
--Class A-3 note 'AAAsf' maintained on Rating Watch Negative;
--Class A-4 note 'AAAsf' maintained on Rating Watch Negative;
--Class B note 'Asf' maintained on Rating Watch Negative