Fitch Ratings has affirmed all outstanding classes of Nelnet Student Loan Trust 2007-1.

The Rating Outlook of the A-3 and A-4 classes remain on Negative and the B-2 class remains on Stable.

RATING ACTIONSENTITY/DEBT	RATING		PRIOR

Nelnet Student Loan Trust 2007-1

A-3 64032EAC1

LT	AAAsf 	Affirmed		AAAsf

A-4 64032EAD9

LT	AAAsf 	Affirmed		AAAsf

B-2 64032EAJ6

LT	Asf 	Affirmed		Asf

VIEW ADDITIONAL RATING DETAILS

Transaction Summary

The affirmations of all outstanding classes reflects the stable performance of the transaction since the last review. Class A-3 notes pass the 'AAAsf' credit and maturity stresses with sufficient hard credit enhancement (CE). Class A-4 notes marginally fail to pay in full prior to maturity under the 'AAA' maturity stress scenario. Fitch's Federal Family Education Loan Program (FFELP) rating criteria allows the final rating to be different from the model results by one rating category. The class B notes' cash flow modeling results imply a higher rating; however, the transaction's total parity does not meet the parity threshold of 101.0% required for 'AAsf' ratings per Fitch's criteria.

The Negative Outlook on class A-3 and A-4 notes stems from Fitch's revision of the U.S. sovereign's Outlook to Negative on July 31, 2020. The Negative Outlook on the class A-4 notes also reflects rating sensitivity to maturity risk scenarios. The class B notes' Outlook remains Stable.

KEY RATING DRIVERS

U.S. Sovereign Risk: The trust collateral comprises FFELP loans, with guaranties provided by eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. The U.S. sovereign rating is currently 'AAA'/Negative.

Collateral Performance: Based on transaction-specific performance to date, Fitch assumed a base case cumulative default rate of 17.50% and a 52.50% default rate under the 'AAA' credit stress scenario. Fitch maintained the sustainable constant default rate (sCDR) at 3.0% and maintained the sustainable constant prepayment rate (sCPR; voluntary and involuntary prepayments) at 10.80% in cash flow modeling. Fitch applied the standard default timing curve. The claim reject rate was assumed to be 0.25% in the base case and 2.0% in the 'AAA' case. The TTM average of deferment, forbearance, and income-based repayment (prior to adjustment) were 5.4%, 8.6% and 22.1%, respectively, as of the last payment date. The borrower benefit was assumed to be 0.16% based on information provided by the sponsor.

Basis and Interest Rate Risk: Basis risk for this transaction arises from any rate and reset frequency mismatch between interest rate indices for Special Allowance Payments (SAP) and the securities. As of most current servicing report, approximately 99.0% of the student loans are indexed to one-month LIBOR. The balance of the loans is indexed to T-bill. All the notes are currently indexed to three-month LIBOR. Fitch applies its standard basis and interest rate stresses to the transactions as per criteria.

Payment Structure: CE is provided by excess spread, overcollateralization, and for the Series A notes, subordination provided by the Series B notes. As of the most current servicing report, the total parity ratio (including the reserve account) is 100.67%. The senior parity ratio (including the reserve account) is 105.74%. Liquidity support is provided by the reserve fund which is at the floor of $3,623,146.

Operational Capabilities: Day-to-day servicing is provided by Nelnet, Inc. Fitch believes Nelnet to be an acceptable servicer, due to its extensive track record as one of the largest servicers of FFELP loans. Fitch also confirmed with the servicer the availability of a business continuity plan to minimize disruptions in the collection process during the coronavirus pandemic.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative rating action/downgrade:

'AAAsf' rated tranches of most FFELP securitizations will likely move in tandem with the U.S. sovereign rating given the strong linkage to the U.S. sovereign, by nature of the reinsurance provided by the Department of Education. 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.

This section provides insight into the model-implied sensitivities the transaction faces when one assumption is modified, while holding others equal. Fitch conducts credit and maturity stress sensitivity analysis by increasing or decreasing key assumptions by 25% and 50% over the base case. The credit stress sensitivity is viewed by stressing both the base case default rate and the basis spread. The maturity stress sensitivity is viewed by stressing remaining term, IBR usage and prepayments. The results below should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk factors. It should not be used as an indicator of possible future performance.

Credit Stress Rating Sensitivity

Default increase 25%: class A 'AAAsf'; class B 'AAsf';

Default increase 50%: class A 'AAAsf'; class B 'Asf';

Basis Spread increase 0.25%: class A 'AAAsf'; class B 'AAAsf';

Basis Spread increase 0.5%: class A 'AAAsf'; class B 'AAsf'.

Maturity Stress Rating Sensitivity

CPR decrease 25%: class A 'Asf'; class B 'AAAsf';

CPR decrease 50%: class A 'BBsf'; class B 'AAAsf';

IBR Usage increase 25%: class A 'Asf'; class B 'AAAsf';

IBR Usage increase 50%: class A 'Asf'; class B 'AAsf';

Remaining Term increase 25%: class A 'CCCsf'; class B 'CCCsf';

Remaining Term increase 50%: class A 'CCCsf'; class B 'CCCsf'.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

No upgrade rating sensitivity was performed since the class A notes are rated at the highest rating level of 'AAAsf' and the Fitch calculated total parity for the transaction is less than the required threshold for an upgrade to the rating assigned to the class B notes. If the total parity for the transaction is maintained a level higher than 101%, the class B notes may be upgraded to 'AAsf'.

Best/Worst Case Rating Scenario

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.

Additional information is available on www.fitchratings.com

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