Sallie Maeplans to issue its second securitization of Federal Family Education Loan Program (FFELP) loans of the year, the $744 million SLMA 2014-2, according to a presale report published by Moody's Investors Service.

FFELP loans are reinsured by the U.S. Department of Education (DOE) for at least 97% of defaulted principal and accrued interest.

Moody's expects to assign an ‘Aaa’ rating to the $723.2 million of class A notes to be offered and an ‘Aa1’ rating to the $20.4 million class B notes on offer.

Barclays, Goldman Sachs and RBS are the lead underwriters on the deal according to the presale report.

Students in repayment status make up 59.5% of the loan pool. The loans have 25.5 weighted average months in repayment. By comparison the  SLM 2014-1 transaction, had 62.4% of students in repayment status and 25.1 weighted average months in repayment. “Borrowers first entering repayment status have the highest probability of defaulting or entering forbearance or deferment periods,” explained Moody’s.

Sallie Mae’s deal will bring year-to-date student loan ABS issuance to $4.2 billion, with FFELP accounting for $3.5 billion, according to Standard & Poor’s.

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