NelNet plans to issue $566 million of securities backed by loans originated under the Federal Family Education Loan Programs, according to presales from Fitch Ratings and Moody's Investors Service. 

The transaction, NSLT 2015-1, is backed by a pool of 100% FFELP loans, including 19.5% of rehabilitated FFELP loans. Rehab loans are those that are currently perfoming after having defaulted at some point. Specifically, to be rehabilitated the student loan borrower must make at least nine timely payments within a 10-month period. Although these loans exhibit much higher default rates than regular FFELP loans, they benefit from the same government guarantee.

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