OREANDA-NEWS. Fitch Ratings takes the following rating actions on the SLM Student Loan Trust 2005-10 notes:

--Class A-4 notes affirmed at 'AAAsf'; Outlook Stable;
--Class A-5 notes affirmed at 'AAAsf'; Outlook revised to Negative from Stable;
--Class B notes affirmed at 'A+sf'; Outlook Stable.

The Rating Outlook revision is due to Fitch's belief that the class A-5 outstanding notes carry a heightened level of extension risk. Based on Fitch's cash flow modelling runs, the notes were not paid in full by their legal final maturity date on July 26, 2021 in a stressed scenario. Under such scenarios, this may result in technical defaults, although Fitch would expect ultimate repayment of full principal and interest afterwards.

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

Sufficient Credit Enhancement (CE): CE is provided by excess spread and, for the class A notes, subordination provided by the class B notes. As of March 2015, excluding the reserve account, total parity is 100% and senior parity is 128.39% (22.11% CE). Including the reserve, total effective parity is 100.73% and senior effective parity is 129.33%.

Adequate Liquidity Support: Liquidity support is provided by a reserve account currently sized at its floor of \$3,002,803. Since pool factor is below 40%, the reserve is excluded from the parity calculation.

Acceptable Servicing Capabilities: Day-to-day servicing is provided by Navient Solutions, Inc. (formerly known as Sallie Mae, Inc.). In Fitch's opinion, this servicer is an acceptable servicer of FFELP student loans.

RATING SENSITIVITIES
Since FFELP student loan ABS rely 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 the 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 that favorable basis factor conditions could lead to future upgrades.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.