DBRS Assigns Provisional Ratings to Educational Funding Services, Inc., Series 2007-1

DBRS has today assigned the following provisional ratings of AAA through “A” to the Student Loan Asset-Backed Notes, Series 2007-1, issued by Educational Funding Services, Inc. (EFSI).

-- $82,800,000 Class I-A-1 at AAA
-- $30,000,000 Class I-B-1 at “A”

DBRS’s confirmation of these ratings is contingent upon receipt of final documents conforming to information already received.

The 2007-1 Notes are expected to be issued on November 14, 2007. The 2007-1 Class A-1 Notes will be offered as taxable 28-day Auction Rate Notes. Interest on these Notes will be payable on the first business day following the end of each auction period. The 2007-1 Class B-1 Notes will be offered as fixed-rate notes, with interest paid semiannually on the first of each June and December, commencing on June 1, 2008.

The collateral for the Notes consists of student loans originated under the Federal Family Education Loan Program (FFELP). FFELP loans are guaranteed by eligible guarantors to at least 97% of defaulted principal and accrued interest, and reinsured by the U.S. Department of Education (ED). As of the statistical cut-off date of March 31, 2007, 93.74% of the loans in the portfolio have “special allowance payment” (SAP) rates based on the 90-day commercial paper rate; while the remaining 6.26% of the loans in the portfolio received SAPs based on the 91-day U.S. Treasury Bill.

Brazos Higher Education Servicing Corporation (BHESC) will serve as the master servicer for the transaction. BHESC has entered into subservicing agreements with ACS Education Services, Inc., Chase Student Loan Servicing, LLC, Great Lakes Educational Loan Services, American Education Services, Sallie Mae Servicing and Student Assistance Foundation to provide certain loan servicing duties for student loans held under the indenture.

DBRS’s rating definitions and the terms of use of such ratings are available at www.dbrs.com.

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