OREANDA-NEWS. Fitch Ratings has affirmed the Vermont Student Assistance Corp, Series 2014-B senior notes at 'Asf'. The Rating Outlook remains Stable.

KEY RATING DRIVERS
High Collateral Quality: The trust is collateralized by approximately $24.8 million of private and $33.3 million of Federal Family Education Loan Program (FFELP) student loans. The private student loans were originated according to the underwriting criteria for the VSAC Private Loan Programs. The FFELP loans are guaranty by eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest.

Sufficient Credit Enhancement (CE): CE is provided by overcollateralization and excess spread. The target specified overcollateralization amount is defined as the greater of 17.84% of the adjusted pool balance and 10% of the initial pool balance. The total parity ratio is 120.82%, as of the June 2015 collection period.

Adequate Liquidity Support: Liquidity support for the VSAC 2014-B notes is provided by a $150,692 reserve account (0.25% of initial student loan balance). The required reserve account balance for any distribution dates is the greater of 0.25% of the current student loan balance and 0.15% of the initial student loan balance ($99,248).

Satisfactory Servicing Capabilities: Day-to-day servicing will be provided by VSAC. Nelnet Servicing, LLC is the back-up servicer for the FFELP loans. Nelnet Servicing, LLC (d/b/a as Firstmark Services) will be the back-up servicer for the private student loans. Fitch believes the servicing operations to be acceptable.

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 credit enhancement 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 rating:

Vermont Student Assistance Corp, Series 2014-B
--Senior notes at 'Asf; Outlook Stable.