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

Citigroup is the lead underwriter.

The $453 million deal consists of a $440 million senior tranche provisionally rated ‘AAA’ by Fitch Ratings and Moody’s Investors Service; and a $13 million subordinated tranche rated ‘A+’/A3.  

The trust collateral consists of 100% Federal Family Education Loan Program (FFELP) loans, which are 97% guaranteed by the U.S. Department of Education;  24.8% of the loans are rehabilitated.

Nelnet will service 52.04% of the portfolio, while Xerox Education Services will service 17.49%, Pennsylvania Higher Education Assistance Agency will service 15.96%, and Great Lakes Educational Loan Services will service 14.51%.

The top five states account for 42.2% of the pool, according to Fitch’s presale report.

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