The New Jersey Higher Education Student Assistance Authority (HESAA) is preparing a $220 million securitization of private student loans, according to a presale report from Standard & Poor’s.

New Jersey Higher Education Student Assistance Authority (2014-1) will issue three classes of notes: $182 million of fixed-rate notes with preliminary ‘AA’ ratings, $25 million of floating rate notes with preliminary ‘AA’ ratings, and $13 million of fixed rate notes with preliminary ‘A’ ratings.

Bank of America Merrill Lynch is the underwriter.

HESAA previously issued $259.3 million and $200.0 million of series 2012-1 and 2013-1 bonds, respectively, according to S&P.

HESAA expects the new loans to have similar characteristics to the current outstanding loan types in the fixed-rate NJCLASS loan program, with minimum FICO scores of 670. The pool will consist of four loan types: immediate repayment of principal and interest, immediate repayment of interest only, deferred repayment of interest and principal, and consolidation loans.

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