Fitch Affirms Ratings on SLC Student Loan Trust 2006-2 Notes

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 is comprised 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: Total parity is 100% and senior parity is 105.3% for the collection period ending Aug. 31, 2014. Additionally, the class A notes benefit from 4.78% subordination provided by the class B notes. Excess cash can be released from the trust 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 and subordinated notes are being paid pro rata after the step-down date, March 15, 2013. The ratings are being affirmed as the senior and subordinate notes pass Fitch's cash flow stresses at the notes' current respective ratings.

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 SSENSITIVITIES

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.

Fitch has affirmed the following ratings for 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.

Additional information is available at 'www.fitchratings.com'

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria'(June 23, 2014).

Applicable Criteria and Related Research:

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750530

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=931036

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