The ratings assigned to Pennsylvania Higher Education Assistance Agency's (PHEAA) student loan revenue notes series 2006-2 senior class A-1 through A-3 notes are based on the 3.00% subordination of the class B notes, the fully funded 0.25% reserve account, and the excess spread. The rating assigned to the class B notes reflects the 0.25% reserve account and the excess spread. The reserve account has a floor of $1,088,285 to provide additional credit support as the pool amortizes. The ratings are further supported by a sound legal structure, federal reinsurance of at least 97% of loan principal and interest, and transaction features designed to protect bondholders. The bonds are being issued according to a new trust indenture. Proceeds from this issuance
