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NELLIE MAE $127.1 MIL. STUDENT LOAN REF. BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, July 16 /PRNewswire/ -- The New England Education Loan Marketing Corp.'s (Nellie Mae) $127.1 million tax-exempt student loan refunding bonds, 1993 series C, D, E and F are rated "A" by Fitch. 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 political sensitivities that could alter 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 June 30, 1992.
 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. In order to collect on the 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, denoted by an increasing return on assets of 2.1 percent at June 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 $84.9 million at June 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 16.6 times at June 30, 1993 from 43.2 times at Dec. 31, 1987. However, on a risk adjusted basis, the company is well-capitalized with a total capital ratio was 26.8 percent at June 30, 1993.
 -0- 7/16/93
 /CONTACT: Helene L. Moehlman, 212-908-0606 or Mary Metz, 212-908-0537 of Fitch/


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

LG -- NY048 -- 2583 07/16/93 15:26 EDT
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Date:Jul 16, 1993
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