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Xpress Loan Servicing Assigned ABOVE AVERAGE Student Loan Servicer Ranking; Outlook Is Stable
Servicer Analyst:
Edward Highland, New York (1) 212-438-1287;
edward_highland@standardandpoors.com
Primary Credit Analyst:
Scott Sprinzen, New York (1) 212-438-7812;
scott_sprinzen@standardandpoors.com
Publication date: 28-Apr-08, 12:38:09 EST
Reprinted from RatingsDirect 


NEW YORK (Standard & Poor's) April 28, 2008--Standard & Poor's Ratings 
Services today assigned its ABOVE AVERAGE ranking to Xpress Loan Servicing 
(XLS) as servicer of student loans for the asset-backed securities (ABS) 
market. The outlook for the ranking is stable. Education Loan Servicing Corp., 
a subsidiary of CIT Group Inc., operates as XLS in the ABS servicing market.
     The ranking reflects the company's experienced management team, solid 
internal controls and risk management, dedicated and comprehensive training 
programs, thorough policies and procedures, default management expertise, 
solid level of automation, and effective use of technology. Although XLS' 
operating history is approaching four years, members of management, vice 
president and above, have an average 20 years of student loan-servicing 
experience. Additionally, the company has been able to attract other managers 
with industry experience as the company has grown.
     XLS has an impressive level of automation and a seasoned management team. 
In addition, XLS' default management expertise allows the company to 
effectively minimize portfolio risk through reliable internal controls and 
prudent loan-servicing practices. XLS continues to regularly review and 
evaluate its servicing operation to improve operational efficiencies through 
reengineering, investing in technology, and by contracting with vendors to 
perform traditional services.
     Outlook
     Although XLS' parent, CIT Group Inc., announced this month that it will 
stop originating private student loans and government-guaranteed student 
loans, it will continue to service its existing student loan portfolio, 95% of 
which is composed of loans that carry a 97% federal government guarantee 
against default. Management has represented that it will continue to market 
itself for student loan subservicing. Given the company's experienced and 
dedicated management team, training programs, default management 
assertiveness, and sound policies and procedures, we expect that XLS will 
serve as an efficient student loan servicer.

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