The South Carolina Student Loan Corporation has a $324 million deal in the works, according to a pre-sale from Fitch Ratings.
The agency expects to rate the transaction ‘AAAsf.’ Its outlook is negative, reflecting Fitch’s view of all FFELP securitizations.
Proceeds from the deal will be used to refinance loans from the Federal Family Education Loan Program (FFELP) currently pledged to an asset-backed commercial paper conduit known as Straight A Funding as well as other warehoused loans.
The transaction has a 3.15% overcollateralization. Collateral consists of a pool of FFELP loans linked to 42,840 borrowers, with an average debt load of $7,506. The weighted average interest rate is 6.49%. Some 77.4% of the loans were originated in South Carolina, while 9.1% of the collateral corresponds to rehabilitated loans.
South Carolina Student Loan Corporation is the primary servicer and Nelnet Servicing the backup servicer.