Fitch Affirms 7 Classes from Nelnet Student Loan Corporation-1

NEW YORK--(Business Wire)--
Fitch Ratings has affirmed 7 classes of student loan asset-backed
notes issued by Nelnet Student Loan Corporation-1, Inc. (fka Union
Financial Services-1, Inc.).

Overall, collateral performance for the trust has been consistent
with expectations from a net default and delinquency perspective.
Approximately 12% of the outstanding notes have floating rates equal
to 1 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 1 month LIBOR + 1.50%, the net loan rate and 18%. The net
loan rate is defined as the greater of the 91-day Treasury Bill rate +
1.50%, and interest earned by the underlying assets less trust fees.
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 Sept. 30, 2008 was 103.89%.

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. which 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 the loan
origination date.

Nelnet Student Loan Corporation-1, Inc.'s ratings are affirmed as
follows:

Series 1999A:

--Senior A-13 at 'AAA';

--Senior A-14 at 'AAA';

--Senior A-15 at 'AAA';

--Senior A-16 at 'AAA';

Series 1996C:

--Subordinate B-3 at 'AA';

Series 1997A:

--Subordinate B-4 at 'AA';

Series 1998A:

--Subordinate B-4 at 'AA'.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Emily Lee, +1-212-908-0667
Andrea Murad, +1-212-908-0896
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Copyright Business Wire 2008