Fitch Affirms 7 Classes from Nelnet Student Loan Trust 2005-4

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed seven classes of student loan asset-backed notes issued by Nelnet Student Loan Trust 2005-4.

Overall, collateral performance for the trust has been consistent with expectations from a net default and delinquency perspective. Approximately 90% of the notes have floating rates equal to three-month LIBOR plus a spread. The remaining notes are taxable auction rate securities which are currently earning interest at the maximum rate. The trust documents define the maximum rate as the lesser of the 91-day + 1.25%, one-month LIBOR + 1%, 75% of 'AA' Financial CP Rate, the Net Loan Rate and 17%. The maximum rate definition limits the amount of interest the trust can pay on the auction-rate notes.

Parity ratios, or the ratio of assets to liabilities, have remained relatively stable despite auction failures causing bonds to pay interest at the maximum rate. The total parity ratio for the trust as of Aug. 31, 2008 was 100.4%.

Credit enhancement consists of excess spread, and a debt service reserve fund. Additionally, the class A notes benefit from subordination provided by the lower priority notes. The student loan portfolio is serviced by Nelnet, Inc. (does not carry a Fitch Seller/Servicer Rating).

The collateral supporting the bonds consists of federally guaranteed loans originated under the FFELP (Federal Family Education Loan Program). FFELP loans are guaranteed by an eligible guarantor to at least 97% of principal and accrued interest, depending on loan origination date.

Fitch has affirmed the following ratings:

Nelnet Student Loan Trust 2005-4:

--Senior A-1 'AAA';

--Senior A-2 'AAA';

--Senior A-3 'AAA';

--Senior A-4L 'AAA';

--Senior A-4AR-1 'AAA';

--Senior A-4AR-2 'AAA';

--Subordinate B 'AAA'.

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