Fitch Ratings affirms the senior notes issued by Nelnet Student Loan Trust series 2003-1 at 'AAAsf', and upgrades the subordinate notes to 'AAsf' from 'A+sf'. The Rating Outlook on the senior notes, which is tied to the sovereign rating of the U.S. government, remains Negative, while the Rating Outlook on the subordinate note remains Stable.

Fitch used its 'Global Structured Finance Rating Criteria', and 'U.S. FFELP Student Loan ABS Surveillance Criteria', as well as 'Rating U.S. Federal Family Education Loan Program Student Loan ABS' to review the ratings.

The rating on the senior note is affirmed based on the sufficient level of credit enhancement to cover the applicable risk factor stresses. Credit enhancement for the senior note consists of overcollateralization and projected minimum excess spread, to cover the applicable basis factor stresses for each rating category.

The rating on the subordinate note is upgraded to 'AAsf' from 'A+sf' due to the consistent increase in parity. The reported total parity increased from 100.48% to 103.05% as of December collection period, and parity is expected to continue to increase through for the remaining life of the trust.

Fitch has taken the following rating actions:

Nelnet Student Loan Trust, Series 2003-1:

--Class A-4 affirmed at 'AAAsf'; Outlook Negative;

--Class B upgraded to 'AAsf' from 'A+'; Outlook Stable.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' dated Aug. 4, 2011;

--'U.S. FFELP Student Loan ABS Surveillance Criteria' dated May 10, 2011;

--'Rating U.S. Federal Family Education Loan Program Student Loan ABS' dated April 7, 2011.

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569

U.S. FFELP Student Loan ABS Surveillance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=597566

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=616766

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