Fitch Affirms Ratings on Two SLC Student Loan Trusts

Fitch Ratings has affirmed the notes currently rated 'AAAsf' issued by both SLC Student Loan Trust 2009-1 and SLC Student Loan Trust 2010-1. The Rating Outlook remains Stable for both trusts.

KEY RATING DRIVERS

High Collateral Quality: Both trusts' 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. sovereign 'AAA' with a Stable Outlook.

Sufficient Credit Enhancement (CE): The CE is provided by overcollateralization (OC) and future excess spread. For SLC 2009-1, the trust has maintained its target OC of 10% and current parity is 111.11% as of July 2014. For SLC 2010-1, current parity is 115.62% (CE 13.51%) as of July 2014. The 2010-1 trust is a turbo structure; therefore no cash is released until the note is paid in full.

Adequate Liquidity Support: Liquidity support is provided by a reserve account for SLC 2009-1 sized equal to the greater of 0.25% of the pool balance and $905,785. SLC 2010-1 is supported by both a reserve account and a capitalized interest account. The reserve is sized equal to the greater of 0.25% of the pool balance and $1,200,450. The current capitalized interest account of $21,000,000 will be released based on a predetermined schedule. Any remaining amounts in the account will be released on the October 2016 quarterly distribution date.

Acceptable Servicing Capabilities: Navient Solutions, Inc. (formerly known as Sallie Mae, Inc.), as servicer, will be responsible for servicing both trusts. Fitch has reviewed the servicing operations of Navient Solutions and believes it 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 CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

Fitch has affirmed the following:

SLC Student Loan Trust 2009-1:

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

SLC Student Loan Trust 2010-1:

--Class A at 'AAAsf'; Outlook Stable.

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

Applicable Criteria and Related Research:

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

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

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

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

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

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=907174

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