Fitch Rates Nelnet Education Loan Funding, Inc., Series 2003-1 Class A-11 & A-12 Issue.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 9, 2003

Fitch Ratings assigns ratings to the following student loan revenue obligations issued by Nelnet Education Loan Funding (NELF), Inc. (f/k/a NEBHELP, Inc.)

Ratings for new issuance:

-- $75,000,000 Student Loan Asset-Backed Notes, Senior Class

2003A-11, 'AAA';

-- $75,000,000 Student Loan Asset-Backed Notes, Senior Class

2003A-12, 'AAA';

Rating Affirmed for existing debt:

-- $100,000,000 Student Loan Asset-Backed Notes, Senior Class

2003A-1, 'AAA';

-- $100,000,000 Student Loan Asset-Backed Notes, Senior Class

2003A-2, 'AAA';

-- $100,000,000 Student Loan Asset-Backed Notes, Senior Class

2003A-3, 'AAA';

-- $100,000,000 Student Loan Asset-Backed Notes, Senior Class

2003A-4, 'AAA';

-- $ 75,000,000 Student Loan Asset-Backed Notes, Senior Class

2003A-5, 'AAA';

-- $ 75,000,000 Student Loan Asset-Backed Notes, Senior Class

2003A-6, 'AAA';

-- $ 75,000,000 Student Loan Asset-Backed Notes, Senior Class

2003A-7, 'AAA';

-- $ 75,000,000 Student Loan Asset-Backed Notes, Senior Class

2003A-8, 'AAA';

-- $ 75,000,000 Student Loan Asset-Backed Notes, Senior Class

2003A-9, 'AAA';

-- $ 75,000,000 Student Loan Asset-Backed Notes, Senior Class

2003A-10, 'AAA';

-- $ 15,000,000 Student Loan Asset-Backed Notes, Subordinate Class

2003B-1, 'AA';

-- $ 15,000,000 Student Loan Asset-Backed Notes, Subordinate Class

2003B-2, 'AA';

The ratings are based on the high quality of the Federal Family Education Loan Program (FFELP) student loan collateral, the credit enhancement within the trust, and the transactions sound legal structure. The ratings reflect the ability of the trust estate to redeem the notes at maturity and pay timely interest. The ratings do not address the ability of auction-rate noteholders to successfully redeem their obligations at an auction now or in the future.

The series 2003-1 class A-11 and A-12 student loan asset-backed notes are issued under the Series 2003-1 Supplemental Indenture of Trust, to the Indenture of Trust, each dated June 1, 2003, between NELF and Wells Fargo Bank Minnesota, N.A. Proceeds from the series 2003-1 class A-11 and A-12 student loan asset-backed notes will be used to purchase student loans, make a deposit to the reserve fund, and pay issuance costs.

The series 2003-1 class A-11 and A-12 student loan asset-backed notes are taxable, with interest based on the 28-day auction rate, payable monthly. The legal final maturity date is July 1, 2043.

The collateral securing each series of notes consists entirely of Federal Family Education Loan Program (FFELP) student loans. Depending upon origination date, these loans are guaranteed up to 98% and 100% of principal and accrued interest by an eligible guarantor and re-insured by the U.S. Department of Education (ED). Substantially all of the student loans pledged as collateral for the notes will have been previously financed with proceeds of a predecessor's pre-October 1, 1993 tax exempt obligations. Based upon the provisions of the Higher Education Act, each of these student loans will be entitled to receive minimum special allowance payments of 9.5%.

Nelnet, Inc. and the subservicer Nelnet Loan Service, Inc. will service the portfolio.

NELF is a bankruptcy remote, limited purpose corporation formed under the laws of the State of Nebraska. NELF is a wholly owned subsidiary of Nelnet, Inc. Prior to April 21, 2003, NELF was known as NEBHELP, INC.

The underwriters on this transaction are Banc of America Securities LLC and Deutsche Bank Securities.