Nelnet is marketing its first securitization of federally guaranteed student loans of the year, according to rating agency reports.

The deal, Nelnet Student Loan Trust 2016-1, will issue a single, $426 million tranche of notes rated triple-A by both Fitch Ratings and Moody’s Investors Service. One quarter of the loans were once delinquent but are now making timely payments. These loans tend to redefault at a higher rate than loans that have never defaulted, but they benefit from the same guarantee from the Department of Education of at least 97% of the principal and interest.

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