OREANDA-NEWS. February 16, 2015. Fitch Ratings affirms the New Jersey Higher Education Student Assistance Authority (NJHESAA) 2010-FFELP senior notes at 'AAAsf.' The Rating Outlook remains Stable for all the notes.

KEY RATING DRIVERS

High Collateral Quality: The trust collateral is comprised 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 at least 97% reinsurance of principal and accrued interest provided by the U.S. Department of Education (ED). The current U.S. sovereign rating is 'AAA' with a Stable Outlook.

Sufficient Credit Enhancement: Credit enhancement is provided by excess spread and overcollateralization. As of September 2014, the senior parity level is at 110.2%. The parity level has remained stable since the trust reached its cash release level of 110%.

Adequate Liquidity Support: Liquidity support is provided by a reserve account. The reserve is sized equal to the greater of 1% of the outstanding notes and \\$500,000. The current reserve balance is at \\$802,300.

Acceptable Servicing Capabilities: American Education Services (AES - PHEAA) and Navient Solutions, Inc. are the servicers who are responsible for the day-to-day servicing of this trust. In Fitch's opinion, both of these entities are acceptable servicers of FFELP student loans.

RATING SENSITIVITIES

Since FFELP student loan ABS relies 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 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:

New Jersey Higher Education Student Assistance Authority 2010-FFELP

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