[April 27, 2015]

Fitch to Rate IOWA 2015-A; Presale Issued

Fitch Ratings expects to rate the Iowa Student Loan Liquidity Corporation (ISL (News - Alert)) Series 2015-A (ISL Series 2015-A) student loan revenue bonds as follows:

--$40,694,000 series 2015-A 'Asf(EXP)'; Outlook Stable.

RATING DRIVERS

Adequate Collateral Quality: The series 2015-A trust will be collateralized by loans originated under FFELP (11.5%) and existing (62.9%) and new (25.6%) fixed and variable-rate private student loans. The private student loans are credit tested and have been or will be originated under ISL's private loan program (see Appendix A for a program description). The FFELP loans have guaranties provided 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: Transaction cash flows were satisfactory under all stressed scenarios at Fitch's 'A' rating category. Credit enhancement (CE) is provided by overcollateralization (OC; the excess of the trust's asset balance over the bond balance) and excess spread. The parity ratio (total assets to total liabilities) is expected to be 120.05% at closing and the target parity is 123.03% before cash can be released. Liquidity support is provided by a reserve account sized at 2% of the bond balance and a $1.221 million capitalized interest account.

Satisfactory Servicing Capabilities: Aspires Resources Inc. (Aspire), a wholly owned subsidiary of ISL, will service the portfolio of loans, and Pennsylvania Higher Education Assistance Agency (PHEAA) will act as the backup servicer. Fitch views Aspire and PHEAA as adequate servicers.

RATING SENSITIVITY

As Fitch's base case default proxy is derived primarily from historical collateral performance, actual performance may differ from the expected performance, resulting in higher loss levels than the base case. This will result in a decline in CE and remaining loss coverage levels available to the notes and may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage.

Fitch evaluated the sensitivity of the ratings assigned to IOWA Series 2015-A to increased defaults, reduced recoveries and excess spread over the life of the transaction. Fitch's nalysis found that the transaction displays some sensitivity to the above factors, showing a potential downgrade to 'B-'. For further discussion of our sensitivity analysis and Fitch's stress analysis please see the presale titled 'ISL Series 2015-A', dated April 27, 2015.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (March 2015);

--'U.S. Private Student Loan ABS (News - Alert) Criteria' (January 2014).

Applicable Criteria and Related Research: Iowa Student Loan Liquidity Corporation Series 2015-A (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864791

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

U.S. Private Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730956

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=983696

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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