Nelnet priced its second student loan securitization of 2014. The $509 million transaction is backed by Federal Family Education Loan Program (FFELP) loans.

The U.S. Department of Education insures these loans for no less than 97% of the defaulted principal and accrued interest.

The triple-A rated, class A1 notes with a final maturity of June 2021 priced at 28 basis points over one-month Libor, according to an Interactive Data report. The class A3 notes, due March 2037, priced at 90 basis points over one-month Libor.

The double-A rated, class B notes with a final maturity of June 2041 priced at 220 basis points over one-month Libor.

This is Nelnet second FFELP-backed securitization of 2014. In January, the student loan lender priced a $458 million securitization. The 5.79-years, triple-A rated class A notes priced at 57 basis points over Libor. The single-A rated, 14-year B notes priced at 150 basis points over Libor

Both of the Nelnet securitizations include FFELP non-consolidation, consolidation and rehabilitated student loans in their pools.

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