DBRS Finalizes the Ratings of GCO Education Loan Funding Master Trust-II, Series 2007-1 and Confirms Series 2006-2

DBRS has today finalized the ratings of the following classes of Student Loan Asset-Backed Notes, Series 2007-1 (the 2007-1 Notes) issued by GCO Education Loan Funding Master Trust-II.

– $142,550,000 Series 2007-1 A-4L at AAA
– $370,900,000 Series 2007-1 A-5L at AAA
– $350,750,000 Series 2007-1 A-6L at AAA
– $293,750,000 Series 2007-1 A-7L at AAA
– $63,575,000 Series 2007-1 A-5AR at AAA
– $63,575,000 Series 2007-1 A-6AR at AAA
– $100,000,000 Series 2007-1 A-7AR at AAA
– $100,000,000 Series 2007-1 A-8AR at AAA
– $55,000,000 Series 2007-1 C-1L at A (low)

DBRS has also confirmed the following classes of Student Loan Asset-Backed Notes, Series 2006-2 issued by GCO Education Loan Funding Master Trust-II.

– $250,000,000 Class A-1L rated at AAA
– $310,000,000 Class A-2L rated at AAA
– $160,000,000 Class A-3L rated at AAA
– C$280,000,000 Class A-1RRN rated at AAA
– $100,000,000 Class A-1AR rated at AAA
– $100,000,000 Class A-2AR rated at AAA
– $100,000,000 Class A-3AR rated at AAA
– $100,000,000 Class A-4AR rated at AAA
– $50,000,000 Class B-1AR rated at A
– $40,000,000 Class B-2AR rated at A
– $40,000,000 Class B-3AR rated at A

The 2007-1 Notes are being issued on March 6, 2007. The 2007-1 Class A-4L, A-5L, A-6L and A-7L Notes are indexed to three-month LIBOR (3mL) plus a spread with interest payable quarterly on the 25th of each February, May, August and November, beginning August 2007. The 2007-1 Class C-1L Notes are junior subordinate notes that are indexed to 3mL plus a spread with interest payable quarterly on the 25th of each February, May, August and November, beginning August 2007. The 2007-1 Class A-5AR, A-6AR and A-8AR Notes are taxable 28-day auction-rate notes and the 2007-1 Class A-7AR Notes are taxable seven-day auction-rate notes. Interest on all classes of auction-rate notes will be payable on the first business day following the end of each auction period.

The collateral for the 2007-1 Notes consists of student loans originated under the Federal Family Education Loan Program (FFELP). FFELP loans are guaranteed for up to 97% of defaulted principal and accrued interest by eligible guarantors and reinsured by the U.S. Department of Education (the ED). All of the loans in the portfolio have special allowance payment (SAP) rates based on the 90-day financial commercial paper rate.

GCO Education Loan Funding Corp. (GCO ELF Corp.) will serve as the servicing contractor for the transaction. GCO ELF Corp. has entered into subservicing agreements with ACS Education Services, Inc., CFS-SunTech Servicing LLC, Great Lakes Educational Loan Services and Student Assistance Foundation to provide certain loan servicing duties for student loans held under the indenture. As of the cut-off date, 100% of the loan portfolio was serviced by subservicers that have been designated Exceptional Performers by the ED.

Note:
All figures are in U.S. dollars unless otherwise noted.