Nelnet plans to issue $458.5 million of asset-backed securities backed by Federal Family Education Loan Program(FFELP)non-consolidation, consolidation and rehabilitated student loans.

Moody's Investors Service and Fitch Ratings assigned provisional ratings of ‘Aaa’/ ‘AAA’ respectively to the class A notes and ‘A3’/ ‘A+’ to the class B notes to be issued by Nelnet Student Loan Trust 2014-1.

FFELP student loans are indirectly guaranteed by the U.S. Department of Education for a minimum of 97% of defaulted principal and accrued interest.

The government guarantee exposes the notes to downgrade risk if the US government ratings is downgraded. Fitch currently has all existing and new issuances of tiriple-A rated tranches of FFELP securitizations  on Rating Watch Negative (RWN) following the revision of the long-term foreign and local currency issuer default ratings of the U.S.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.