Aug 06, 2009

Nelnet, Inc. Announces Amendment of Nelnet Education Loan Funding, Inc. 2003-1 Indenture to Allow Purchases in Lieu of Redemptions

LINCOLN, Neb., Aug 06, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Nelnet, Inc. (NYSE: NNI) ("Nelnet") announced today that its finance subsidiary, Nelnet Education Loan Funding, Inc. ("NELF"), has amended the indenture of trust for its Student Loan Asset-Backed Notes, Series 2003-1 (the "Notes") to allow amounts held under the indenture to be used to purchase Notes instead of redeeming Notes. NELF will receive a confirmation of each of the ratings of the Notes in connection with adoption of the amendment.

Nelnet expects that from time-to-time NELF may use funds available under the indenture for the Notes to purchase Notes for cash in open market transactions, privately negotiated transactions or otherwise or to redeem Notes at par. Under the terms of the amendment to the indenture, the purchase price paid in any such transaction must be less than the par amount of Notes acquired. Nelnet may purchase Notes in open market transactions, privately negotiated transaction or otherwise using funds released from the trust estate pledged to secure the Notes or other available funds. Any such transaction, if undertaken by NELF, will depend on prevailing market conditions, liquidity requirements, contractual restrictions, compliance with securities laws and other factors.

Under the terms of the indenture for the Notes, principal receipts must be used to either purchase Notes (at less than par) or redeem Notes at par. Holders of Notes that do not wish to sell their Notes at a discount are not required to do so, and the indenture requires that such Notes be redeemed at par at or prior to maturity of the Notes. NELF is authorized under the terms of the indenture to select the order in which the various classes of the Notes will be redeemed.

This press release is neither an offer to purchase nor a solicitation of offers to sell any of the Notes. CUSIP numbers for the Notes are shown below:

    2003-1 A-5: 64031RAE9         2003-1 A-10: 64031RAK5
    2003-1 A-6: 64031RAF6         2003-1 A-11: 64031RAL3
    2003-1 A-7: 64031RAG4         2003-1 A-12: 64031RAM1
    2003-1 A-8: 64031RAH2         2003-1 B-1: 64031RAN9
    2003-1 A-9: 64031RAJ8         2003-1 B-2: 64031RAP4

For more than 30 years, Nelnet has been helping families plan, prepare and pay for their educations.

Information contained or incorporated in this press release may be considered forward looking in nature and is subject to various risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Nelnet's operating results, performance or financial condition expressed or implied by the forward-looking statements are the pending and uncertain nature of the reported federal legislation expected to significantly affect student loan programs, the uncertain nature of estimated expenses that may be incurred and cost savings that may result from the Nelnet's restructuring plans, changes in terms of student loans and the educational credit marketplace, changes in the demand for educational financing or in financing preferences of educational institutions, students, and their families or changes in the general interest rate environment and in the securitization markets for education loans.

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SOURCE Nelnet, Inc.

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