Fitch Maintains Negative Rating Watch on South Carolina Student Loan Corp 2013-1

Fitch Ratings maintains the Negative Rating Watch on the notes currently rated 'AAAsf' issued by South Carolina Student Loan Corp 2013-1.

KEY RATING DRIVERS

High Collateral Quality: The trust collateral comprises Federal Family Education Loan Program (FFELP) loans (including 9.39% of rehabilitated [rehab] loans) with guaranties provided by eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest.

Rating Watch Maintained: 'AAAsf' rated tranches of U.S. FFELP student loan ABS are maintained on Rating Watch Negative following the revision of the U.S. sovereign rating on Oct. 15, 2013.

Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. As of December 2013, parity is at 102.46%. Fitch expects the parity ratio to continue to rise until the Specified OC Amount of the greater of 110% parity or $1,500,000 OC is met.

Adequate Liquidity Support: Liquidity support is provided by a Debt Service Reserve Fund currently sized at $738,257.08 and a Capitalized Interest Fund currently sized at $739,924.7 as of December 2013.

Acceptable Servicing Capabilities: Day-to-day servicing will be provided by South Carolina Student Loan Corporation and Nelnet Servicing, LLC (Nelnet) will be the back-up servicer. All servicers have demonstrated adequate servicing capabilities.

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 CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

Initial Key Rating Drivers and Rating Sensitivity are further described in the presale report published on Feb. 08, 2013.

Fitch has taken the following rating actions:

South Carolina Student Loan Corp 2013-1:

--Class A note at 'AAAsf', Negative Rating Watch maintained.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' dated May 24, 2013;

--'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria' dated May 17, 2013.

--'South Carolina Student Loan Corporation, 2013-1 Series (US ABS)', dated Feb. 08, 2013.

A comparison of the transaction's RW&Es to those of typical RW&Es for student loans is available by accessing the reports and links below:

'South Carolina Student Loan Corporation, 2013-1 Series -- Appendix', dated Feb. 08, 2013.

'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions -- Amended', dated April 17, 2012.

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria -- Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708795

South Carolina Student Loan Corporation, 2013-1 Series (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=701115

South Carolina Student Loan Corporation,2013-1 Series -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=701155

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions -- Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=813981

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