Fitch Takes Various Rating Actions on Multiple SLM Student Loan Trusts

Fitch Ratings affirms the senior student loan notes issued by SLM Student Loan Trust 2005-1, SLM Student Loan Trust 2005-7, and SLM Student Loan Trust 2005-8 at 'AAAsf'. Additionally, Fitch affirms the subordinate student loan notes of series 2005-7 and 2005-8 at 'Asf' and upgrades the subordinate notes of series 2005-1 to 'AAAsf' from 'AAsf'. The Rating Outlook is Stable for all notes classes.

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: In all the trusts, both senior and subordinate notes will benefit from future excess spread, while the senior notes also benefit from subordination provided by the class B notes. As of March 2014, reported senior and total parity for series 2005-7 is 105.55% and 100%, respectively; for series 2005-8 - 105.35% and 100%, respectively; and for series 2005-1 - 152.92% and 101%, respectively. Additionally, series 2005-1 is in turbo as it passed the 10% clean-up call and excess spread is going to the pay-down of note principal.

Adequate Liquidity Support: Liquidity support for all the trusts is provided by a reserve account. The reserve is sized equal to the greater of 0.25% of the pool balance, and 0.10% of the initial bond balance.

Acceptable Servicing Capabilities: Navient Solutions, Inc. (FKA Sallie Mae, Inc.) is responsible for the day-to-day servicing of the student loans. Fitch believes Navient Solutions to be 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 credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

Fitch has taken the following rating actions:

SLM Student Loan Trust Series 2005-1:

--Class A-2 affirmed at 'AAAsf'; Outlook Stable;

--Class B upgraded to 'AAAsf' from 'AAsf'; Outlook revised to Stable from Positive.

SLM Student Loan Trust Series 2005-7:

--Class A-3 affirmed at 'AAAsf'; Outlook Stable;

--Class A-4 affirmed at 'AAAsf'; Outlook Stable;

--Class A-5 affirmed at 'AAAsf'; Outlook Stable;

--Class B affirmed at 'Asf'; Outlook Stable.

SLM Student Loan Trust Series 2005-8:

--Class A-3 affirmed at 'AAAsf'; Outlook Stable;

--Class A-4 affirmed at 'AAAsf'; Outlook Stable;

--Class A-5 affirmed at 'AAAsf'; Outlook Stable;

--Class B affirmed at 'Asf'; Outlook Stable.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' dated May 20, 2014;

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

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708795

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=841179

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