Fitch Ratings has taken the following rating actions on Nelnet Student Loan Trust 2006-1 & 2014-1:

Nelnet Student Loan Trust 2006-1:

--Class A-4 affirmed at 'AAAsf'; Outlook Stable;

--Class A-5 affirmed at 'AAAsf'; Outlook Stable;

--Class A-6 'AAAsf' on Rating Watch Negative maintained;

--Class B affirmed at 'Asf'; Outlook Stable.

Nelnet Student Loan Trust 2014-1:

--Class A 'AAAsf' placed on Rating Watch Negative;

--Class B affirmed at 'A+sf'; Outlook Stable.

KEY RATING DRIVERS

The Rating Watch Negative action on the class A note of the 2014-1 trust is due to its inability to pass 'AAA' credit stresses, as detailed in the exposure draft published by Fitch on Nov. 18, 2015.

Maturity Risk: The Rating Watch Negative on the 2006-1 trust class A-6 note is maintained based on the heightened risk of that class missing its legal final maturity of Aug. 25, 2036, which would result in an event of default. In an event of such technical default, Fitch would expect ultimate repayment of full principal and interest after the legal final. The magnitude of the rating action could vary depending on remaining time to maturity, recent payment trends, issuer actions such as loan purchases, or other external factors. Absent any issuer actions, structural or other mitigants, it is possible that 'AAA' ratings could be downgraded one to two rating categories.

Collateral Quality: Both trusts' collateral consists of 100% of Federal Family Education Loan Program (FFELP) loans, including approximately 24.15% of rehabilitated loans in the 2014-1 trust. The credit quality of the trusts' collateral is high, in Fitch's opinion, based on the guarantees provided by the transaction's eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest.

Credit Enhancement: Credit enhancement is provided by overcollateralization and excess spread. The class A notes also benefit from subordination from the class B notes. Liquidity support for the notes is provided by a reserve account which is currently at $2,951,197, which is the floor, for the 2006-1 trust, and $866,553, with a floor of $458,500 for the 2014-1 trust.

Servicing Capabilities: National Education Loan Network, Inc. services approximately 93% of the 2014-1 portfolio and 100% of the 2006-1 portfolio, while Great Lakes Education Loan Services Inc. (GLESI) services the remaining 7% of the 2014-1 portfolio. Additionally, In Fitch's opinion, both are acceptable servicers of FFELP student loans.

On Nov. 18, 2015, Fitch released its exposure draft which delineates revisions it plans to make to the 'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria', dated June 23, 2014. Fitch has reviewed this transaction under both the existing and proposed criteria.

RATING SENSITIVITIES

Since the FFELP student loan ABS relies on the U.S. government to reimburse defaults, 'AAAsf' FFELP ABS ratings will likely move in tandem with the 'AAA' U.S. sovereign rating. Aside from the U.S. sovereign rating, defaults, basis risk, and loan extension risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults, basis shock beyond Fitch's published stresses, lower than expected payment speed, and other factors could result in future downgrades. Likewise, a buildup of CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds (pub. 19 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=838868

Exposure Draft: Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria (pub. 04 Dec 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874971

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Rating Criteria for Structured Finance Servicers (pub. 23 Apr 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864375

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria (pub. 23 Jun 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750530

Related Research

Nelnet Student Loan Trust 2014-1 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731195

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=997669

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=997669

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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