Fitch Rates EdInvest Company's Series 2003 A-1 and B-1 Notes

Business Wire,  Sept 23, 2003  

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Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 23, 2003

Fitch rates the following Student Loan Asset-Backed Notes issued by EdInvest Company:

Ratings for new issuance

-- $98,400,000 Senior Series 2003A-1, 'AAA';

-- $17,300,000 Subordinate Series 2003B-1, 'A'

Fitch rates the senior series 2003A-1 notes 'AAA' and the subordinate series 2003B-1 notes 'A'. The ratings are based on the quality of the student loan portfolio, the credit enhancement provided, and the sound legal structure. The ratings address the ability of the trust to redeem notes at maturity and pay timely interest. The ratings do not address the ability of the trust to pay carry-over interest, nor do they address the ability of auction rate noteholders to successfully redeem their notes at an auction now or in the future.

The series 2003 notes are issued under the Indenture of Trust dated September 1, 2003. The proceeds of the series 2003 notes will be used to purchase student loans, pay accrued interest and premiums, make deposits to the acquisition and reserve funds, and to pay the costs of issuance.

The series 2003 notes are taxable, 28-day auction rate securities with interest payable on the first business day following an auction period. Interest is calculated based on the actual days elapsed during a 360-day year (Actual/360). The legal final maturity date is June 1, 2039.

The collateral securing the notes consists of Federal Family Education Loan Program (FFELP) student loans, and private Resource program loans. The FFELP loans are guaranteed 100% or 98% by an eligible guarantor and re-insured by the U.S. Department of Education depending on their disbursement date. The Resource Program Loans are originated by a program managed by PNC Bank, N.A.

EdInvest Company is a Texas non-profit corporation. Its principal office is located in Waco, TX. It is authorized to provide funds for the acquisition of Student Loans and other charitable and educational purposes.

Brazos Higher Education Service Corporation, Inc. is the master servicer and will oversee the duties of the subservicers. The subservicers for the FFELP portfolio are ACS Education Services, Inc., CFS-SunTech Servicing LLC, Great Lakes Educational Loan Services, Inc., Kentucky Higher Education Student Loan Corporation, Pennsylvania Higher Education Assistance Agency, and Sallie Mae Servicing L.P. Pennsylvania Higher Education Assistance Agency is the subservicer for the Health Education Assistance Loans. The alternative student loans will be subserviced by ACS Education Services, Inc., Great Lakes Educational Loan Services, Inc., and Pennsylvania Higher Education Assistance Agency.

Citigroup is the lead underwriter on this transaction.

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