[March 07, 2014]

Fitch Affirms New Jersey Higher Ed Student Assistance Auth 2009 Indenture of Trust

Fitch Ratings affirms the ratings of the student loan revenue bonds issued by the New Jersey Higher Education Student Assistance Authority (NJHESAA) under the 2009 master trust indenture at 'Asf'. The Outlook remains Negative.

A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Adequate Collateral Quality: The trust is collateralized by approximately $360 million of private student loans as of December 2013. The loans were originated by NHESAA.

Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (the excess of trust's asset balance over bond balance) and excess spread. Total parity ratio is currently 104.92%. Fitch projected remaining defaults to range between 15%-18% as of the current principal balance based on data provided by NJHESAA. A recovery rate of 60% was applied, which was determined to be appropriate based on data provided by the issuer.

Satisfactory Servicing Capabilities: Day-to-day servicing is provided by NJHESAA. Fitch believes the servicing operations are acceptable at this time.

RATING SENSITIVITIES

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 will continue to monitor the performance of the trust.

Fitch affirms the following ratings:

New Jersey Higher Education Student Assistance Agency Series 2009 Indenture of Trust

--Serial 2014-1 at 'Asf'; Outlook Negative;

--Serial 2014-2 at 'Asf'; Outlook Negative;

--Serial 2015-1 at 'Asf'; Outlook Negative;

--Serial 2015-2 at 'Asf'; Outlook Negative;

--Serial 2016-1 at 'Asf'; Outlook Negative;

--Serial 2016-2 at 'Asf'; Outlook Negative;

--Serial 2017-1 at 'Asf'; Outlook Negative;

--Serial 2017-2 at 'Asf'; Outlook Negative;

--Serial 2018-2 at 'Asf'; Outlook Negative;

--Serial 2019-1 at 'Asf'; Outlook Negative;

--Serial 2019-2 at 'Asf'; Outlook Negative;

--Serial 2020-1 at 'Asf'; Outlook Negative;

--Serial 2020-2 at 'Asf'; Outlook Negative;

--Serial 2021-1 at 'Asf'; Outlook Negative;

--Serial 2021-2 at 'Asf'; Outlook Negative;

--Serial 2022 at 'Asf'; Outlook Negative;

--Serial 2023 at 'Asf'; Outlook Negative;

--Term 2024 at 'Asf'; Outlook Negative;

--Serial 2025 at 'Asf'; Outlook Negative;

--Serial 2026 at 'Asf'; Outlook Negative;

--Term 2027 at 'Asf'; Outlook Negative;

--Term 2030 at 'Asf'; Outlook Negative.

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

Applicable Criteria and Related Research:

--'U.S. Private Student Loan ABS (News - Alert) Criteria', Jan 29, 2014;

--'Global Structured Finance Rating Criteria', May 24, 2013.

Applicable Criteria and Related Research:

U.S. Private Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730956

Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure

Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=822984

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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