Fitch Affirms Iowa Student Loan Liquidity Corporation Series 2011A; Outlook Stable

--Senior class A-1 (2015 - 2023) at 'Asf'; Outlook Stable;
--Senior class A-2 (2023 - 2030) at 'Asf'; Outlook Stable.

KEY RATING DRIVERS
Adequate Collateral Quality: The ISLLC 2011A bonds are secured by existing private student loans. In addition, the ISLLC 2011A trust purchased new private student loans during the recycling period which ended in June 2013. All loans have been credit tested and are originated under ISLLC's private loan programs. Based on the trusts' performance, Fitch estimates remaining defaults to range between 12% and 15% as a percentage of the current principal balance. Recovery is assumed to be 10% in our analysis.

Sufficient Credit Enhancement: Transaction credit enhancement (CE) is sufficient to provide loss coverage multiples corresponding to Fitch's 'A' rating category. CE is provided by overcollateralization (OC; the excess of the trust's asset balance over the bond balance) and excess spread. The parity ratio (total assets to total liabilities) for ISLLC 2011A is 194.67% as of June 30, 2015. In addition, Iowa Student Loan entered into an interest rate swap agreement to mitigate interest rate risk.

Adequate Liquidity Support: Liquidity support is provided by a reserve account sized at the greater of 2% of ISLLC 2011A's bond balance and $4,322,000.

Satisfactory Servicing Capabilities: Aspire Resources, a subsidiary of ISLLC, services the portfolio of loans, and Pennsylvania Higher Education Assistance Agency acts as the back-up servicer. Fitch has reviewed the servicing operations of Aspire Resources and views it to be an acceptable servicer.

Loss coverage multiples were determined by comparing the projected net loss amounts to available CE. Fitch used historical vintage loss data provided by ISLLC to form a loss timing curve representative of the collateral pools. After giving credit for seasoning of loans in repayment, Fitch applied the trust's current cumulative gross loss level to this loss timing curve to derive the expected gross losses over the projected remaining life. A recovery rate was applied, which was determined to be appropriate based on the latest data provided by the issuer.

In addition, the ISLLC 2011A transaction is structured with a fixed- to three-month LIBOR floating interest rate swap since the bonds are fixed rate and the loans are indexed to three month LIBOR. Morgan Stanley Capital Services LLC (MSCS) is the swap counterparty, and the swap includes a Bermudan option that gives the issuer the right, but not the obligation, to reduce the swap notional amount down to an amount not less than the pre-determined minimum notional amounts on the distribution dates.

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.