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NELLIE MAE $72 MILLION STUDENT LOAN REFUNDING BONDS 'A' BY FITCH -- FITCH FINANCIAL WIRE --

& NEW YORK, Nov. 17 /PRNewswire/ -- The New England Education Loan


Marketing Corp.'s (Nellie Mae) $71,790,000 tax-exempt student loan

refunding bonds, 1993 series H are rated "A" by Fitch. The bonds will be issued in two tranches, $57,420,000 4.75 percent bonds will mature on Dec. 1, 1999 and $14,370,000 5.05 percent bonds will mature on Dec. 1, 2002.
 The rating reflects Nellie Mae's high quality Federal Family Education Loan Program (FFELP) student loan portfolio, limited credit exposure, strict monitoring procedures, and strong earnings performance. Concerns focus primarily on the single product concentration and changes being implemented to the structure of the student loan business. The credit trend is stable.
 Nellie Mae purchases and holds student loans guaranteed by independent, third-party state guaranty agencies primarily from New England, New York, New Jersey, and California. The company is currently the fourth largest holder of student loans and the largest nonprofit holder, with total student loans receivable of $1.5 billion at Sept. 30, 1993.
 In addition to the guaranty agency support, all of Nellie Mae's loans are reinsured by the U.S. Department of Education (DOE), backed by the full faith and credit of the U.S. Government. If a guaranty agency fails and the agency's obligations are not considered general obligations of the state, the DOE assumes responsibility for the loans. If an agency is considered an obligation of the state, then the state is responsible for the loans. To collect on reinsurance, loans must be originated and serviced in accordance with stringent DOE guidelines. As all of Nellie Mae's loans are serviced by third-party servicers, credit quality rests primarily with the servicers. Nellie Mae retains full recourse to all originators and servicers.
 Profitability is strong and improving, with return on assets equal to 2.0 percent for the nine months ended Sept. 30, 1993. Profitability growth has resulted from an improvement in the net interest margin and a significant decline in the company's servicing and administrative expenses as a percentage of the loan portfolio.
 Net assets (equity) increased to $92.0 million at Sept. 30, 1993 from $12.5 million at Dec. 31, 1987, solely from the addition of retained earnings. Debt to net assets, while high, improved to 16.2 times (x) at Sept. 30, 1993 from 43.2x at Dec. 31, 1987. However, on a risk adjusted basis, the company is well capitalized, with a total capital ratio of 27.6 percent at Sept. 30, 1993.
 -0- 11/17/93
 /CONTACT: Helene L. Moehlman, 212-908-0606 or Kimberly Rhodes, 212-908-0529, both of Fitch/


CO: New England Education Loan Marketing Corp. ST: Massachusetts IN: FIN SU: RTG

LG -- NY090 -- 5618 11/17/93 15:34 EST
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Date:Nov 17, 1993
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