OREANDA-NEWS. Fitch Ratings has affirmed the senior notes at 'AAAsf' and subordinate notes at 'Asf' issued by SLC Student Loan Trust 2006-2. The Rating Outlook remains Stable for the senior and subordinate notes.

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 at least 97% reinsurance of principal and accrued interest provided by the U.S. Department of Education (ED).

Sufficient Credit Enhancement: CE is provided by overcollateralization (OC) and excess spread. Total parity is 100.0% and senior parity is 105.3%. Additionally the class A notes benefit from 4.78% subordination provided by the class B notes. Excess cash can be released as long as the total parity is maintained at 100%. Fitch expects the senior and total parity to stay at current levels, as the senior notes and subordinated notes are being paid pro rata after the step-down date, March 15, 2013.

Adequate Liquidity Support: Liquidity support is provided by a reserve account to be maintained at the specified reserve account balance equal to the greater of 0.25% of the pool balance and $3,778,125.

Acceptable Servicing Capabilities: The loans are serviced by Navient Servicing, which in Fitch's opinion, is an 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 buildup of CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following ratings:

SLC Student Loan Trust 2006-2:

--Class A-4 at 'AAAsf' Outlook Stable;
--Class A-5 at 'AAAsf' Outlook Stable;
--Class A-6 at 'AAAsf' Outlook Stable;
--Class B at 'Asf' Outlook Stable.