NELNET INC, 10-Q filed on 5/8/2018
Quarterly Report
v3.8.0.1
Document and Entity Information Document - shares
3 Months Ended
Mar. 31, 2018
Apr. 30, 2018
Document Information [Line Items]    
Entity Registrant Name NELNET INC  
Document Type 10-Q  
Current Fiscal Year End Date --12-31  
Amendment Flag false  
Entity Central Index Key 0001258602  
Entity Current Reporting Status Yes  
Entity Filer Category Large Accelerated Filer  
Document Period End Date Mar. 31, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q1  
Common Class A [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   29,212,160
Common Class B [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   11,468,587
v3.8.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Assets:    
Loans receivable (net of allowance for loan losses of $55,294 and $54,590, respectively) $ 21,562,030 $ 21,814,507
Cash and cash equivalents:    
Cash and cash equivalents - not held at a related party 17,200 6,982
Cash and cash equivalents - held at a related party 52,086 59,770
Total cash and cash equivalents 69,286 66,752
Investments and notes receivable 258,426 240,538
Restricted cash 727,471 688,193
Restricted cash – due to customers 128,515 187,121
Accrued interest receivable 489,395 430,385
Accounts receivable (net of allowance for doubtful accounts of $1,627 and $1,436, respectively) 61,394 37,863
Goodwill 158,456 138,759
Intangible assets, net 107,192 38,427
Property and equipment, net 299,837 248,051
Other assets 34,509 73,021
Fair value of derivative instruments 1,891 818
Total assets 23,898,402 23,964,435
Liabilities:    
Bonds and notes payable 21,227,349 21,356,573
Accrued interest payable 54,252 50,039
Other liabilities 237,459 198,252
Due to customers 128,515 187,121
Fair value of derivative instruments 5,601 7,063
Total liabilities 21,653,176 21,799,048
Commitments and contingencies
Nelnet, Inc. shareholders' equity:    
Preferred stock 0 0
Additional paid-in capital 448 521
Retained earnings 2,231,875 2,143,983
Accumulated other comprehensive earnings 3,022 4,617
Total Nelnet, Inc. shareholders' equity 2,235,753 2,149,529
Noncontrolling interests 9,473 15,858
Total equity 2,245,226 2,165,387
Total liabilities and equity 23,898,402 23,964,435
Common Class A [Member]    
Nelnet, Inc. shareholders' equity:    
Common stock 293 293
Common Class B [Member]    
Nelnet, Inc. shareholders' equity:    
Common stock 115 115
Supplemental information - assets and liabilities of concolidated education lending variable interest entities: [Member]    
Assets:    
Loans receivable (net of allowance for loan losses of $55,294 and $54,590, respectively) 21,633,845 21,909,476
Cash and cash equivalents:    
Restricted cash 682,446 641,994
Other assets 490,747 431,934
Liabilities:    
Bonds and notes payable 21,450,983 21,702,298
Other liabilities 186,611 168,637
Nelnet, Inc. shareholders' equity:    
Net assets of consolidated education lending variable interest entities $ 1,169,444 $ 1,112,469
v3.8.0.1
Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Allowance for loan losses $ 55,294 $ 54,590
Allowance for doubtful accounts $ 1,627 $ 1,436
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized shares (in shares) 50,000,000 50,000,000
Preferred stock, issued shares (in shares) 0 0
Preferred stock, outstanding shares (in shares) 0 0
Common Class A [Member]    
Par Value (in dollars per share) $ 0.01 $ 0.01
Shares Authorized (in shares) 600,000,000 600,000,000
Shares Issued (in shares) 29,289,689 29,341,517
Shares Outstanding (in shares) 29,289,689 29,341,517
Common Class B [Member]    
Par Value (in dollars per share) $ 0.01 $ 0.01
Shares Authorized (in shares) 60,000,000 60,000,000
Shares Issued (in shares) 11,468,587 11,468,587
Shares Outstanding (in shares) 11,468,587 11,468,587
v3.8.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Interest income:    
Loan interest $ 197,723 $ 181,207
Investment interest 5,134 2,617
Total interest income 202,857 183,824
Interest expense:    
Interest on bonds and notes payable 135,550 106,899
Net interest income 67,307 76,925
Less provision for loan losses 4,000 1,000
Net interest income (loss) after provision for loan losses 63,307 75,925
Other income:    
Loan servicing and systems revenue 100,141 54,229
Education technology, services, and payment processing revenue 60,221 56,024
Communications revenue 9,189 5,106
Other income 18,198 12,632
Gain from debt repurchases 359 4,980
Derivative market value and foreign currency transaction adjustments and derivative settlements, net 66,799 (4,830)
Total other income 254,907 128,141
Cost of services:    
Cost to provide education technology, services, and payment processing services 13,683 12,790
Cost to provide communications services 3,717 1,954
Total cost of services 17,400 14,744
Operating expenses:    
Salaries and benefits 96,643 71,863
Depreciation and amortization 18,457 8,598
Loan servicing fees 3,136 6,025
Other expenses 33,417 26,161
Total operating expenses 151,653 112,647
Income before income taxes 149,161 76,675
Income tax expense 35,976 28,755
Net income (loss) 113,185 47,920
Net loss attributable to noncontrolling interests 740 2,106
Net income (loss) attributable to Nelnet, Inc. $ 113,925 $ 50,026
Earnings per common share:    
Net income attributable to Nelnet, Inc. shareholders - basic and diluted (in dollars per share) $ 2.78 $ 1.18
Weighted average common shares outstanding - basic and diluted (in shares) 40,950,528 42,291,857
v3.8.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 113,185 $ 47,920
Available-for-sale securities:    
Unrealized holding (losses) gains arising during period, net (1,061) 1,259
Reclassification adjustment for gains recognized in net income, net of losses (47) (331)
Income tax effect 256 (343)
Total other comprehensive (loss) income (852) 585
Comprehensive income 112,333 48,505
Comprehensive loss attributable to noncontrolling interests 740 2,106
Comprehensive income attributable to Nelnet, Inc. $ 113,073 $ 50,611
v3.8.0.1
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands
Total
Preferred Stock [Member]
Common Stock [Member]
Common Class A [Member]
Common Stock [Member]
Common Class B [Member]
Additional paid-in capital [Member]
Retained earnings [Member]
Accumulated other comprehensive earnings [Member]
Noncontrolling interests [Member]
Balance (in shares) at Dec. 31, 2016   0 30,628,112 11,476,932        
Balance at Dec. 31, 2016 $ 2,070,925 $ 0 $ 306 $ 115 $ 420 $ 2,056,084 $ 4,730 $ 9,270
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of noncontrolling interests 12,626             12,626
Net income (loss) 47,920         50,026   2,106
Other comprehensive income 585           585  
Distribution to noncontrolling interests (310)             (310)
Cash dividend on Class A and Class B common stock (5,896)         (5,896)    
Issuance of common stock, net of forfeitures (in shares)     143,789          
Issuance of common stock, net of forfeitures 2,090   $ 1   2,089      
Compensation expense for stock based awards 1,096       1,096      
Repurchase of common stock (in shares)     (31,716)          
Repurchase of common stock (1,369)       (1,369)      
Balance (in shares) at Mar. 31, 2017   0 30,740,185.000 11,476,932.000        
Balance at Mar. 31, 2017 2,127,667 $ 0 $ 307 $ 115 2,236 2,100,214 5,315 19,480
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Impact of adoption of new accounting standards 1,264         2,007 (743)  
Balance (in shares) at Dec. 31, 2017   0 29,341,517 11,468,587        
Balance at Dec. 31, 2017 2,165,387 $ 0 $ 293 $ 115 521 2,143,983 4,617 15,858
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of noncontrolling interests 26             26
Net income (loss) 113,185         113,925   740
Other comprehensive income (852)           (852)  
Distribution to noncontrolling interests (19)             (19)
Cash dividend on Class A and Class B common stock (6,506)         (6,506)    
Issuance of common stock, net of forfeitures (in shares)     170,346          
Issuance of common stock, net of forfeitures 2,173   $ 2   2,171      
Compensation expense for stock based awards 1,087       1,087      
Repurchase of common stock (in shares)     (222,174)          
Repurchase of common stock (11,418)   $ (2)   (3,331) (8,085)    
Acquisition of noncontrolling interest (19,101)         (13,449)   (5,652)
Balance (in shares) at Mar. 31, 2018   0 29,289,689.000 11,468,587.000        
Balance at Mar. 31, 2018 $ 2,245,226 $ 0 $ 293 $ 115 $ 448 $ 2,231,875 $ 3,022 $ 9,473
v3.8.0.1
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Common Class A [Member]    
Dividends paid per common share (in dollars per share) $ 0.16 $ 0.14
Common Class B [Member]    
Dividends paid per common share (in dollars per share) $ 0.16 $ 0.14
v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Statement of Cash Flows [Abstract]    
Net income (loss) attributable to Nelnet, Inc. $ 113,925 $ 50,026
Net loss attributable to noncontrolling interests (740) (2,106)
Net income (loss) 113,185 47,920
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition:    
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs 43,301 34,310
Loan discount accretion (11,691) (12,014)
Provision for loan losses 4,000 1,000
Derivative market value adjustment (60,033) (1,238)
Unrealized foreign currency transaction adjustment 0 4,690
Proceeds from clearinghouse to settle variation margin, net 62,689 0
Gain from debt repurchases (359) (4,980)
Gain from equity securities, net of losses (6,838) 0
Deferred income tax expense (benefit) 16,883 (1,753)
Non-cash compensation expense 1,161 1,121
Other (4,302) 242
Increase in loan accrued interest receivable (59,038) (1,490)
Decrease (increase) in accounts receivable 177 (282)
Decrease (increase) in other assets 49,415 (1,397)
Increase in accrued interest payable 4,213 750
(Decrease) increase in other liabilities (36,205) 6,954
Decrease in due to customers (58,606) (26,003)
Net cash provided by operating activities 57,952 47,830
Cash flows from investing activities, net of acquisition:    
Purchases of loans (610,855) (50,126)
Net proceeds from loan repayments, claims, capitalized interest, and other 863,270 953,698
Purchases of available-for-sale securities (28,164) (53,530)
Proceeds from sales of available-for-sale securities 21,951 37,809
Purchases of investments and issuance of notes receivable (16,370) (4,898)
Proceeds from investments and notes receivable 9,718 1,605
Purchases of property and equipment (28,068) (26,469)
Business acquisition, net of cash acquired (109,152) 0
Net cash provided by investing activities 102,330 858,089
Cash flows from financing activities:    
Payments on bonds and notes payable (901,008) (1,128,899)
Proceeds from issuance of bonds and notes payable 756,700 37,496
Payments of debt issuance costs (1,650) (364)
Dividends paid (6,506) (5,896)
Repurchases of common stock (11,418) (1,369)
Proceeds from issuance of common stock 274 0
Acquisition of noncontrolling interest (13,449) 0
Issuance of noncontrolling interests 0 12,600
Distribution to noncontrolling interests (19) (310)
Net cash used in financing activities (177,076) (1,086,742)
Net decrease in cash, cash equivalents, and restricted cash (16,794) (180,823)
Cash, cash equivalents, and restricted cash, beginning of period 942,066 1,170,317
Cash, cash equivalents, and restricted cash, end of period 925,272 989,494
Supplemental disclosures of cash flow information:    
Cash disbursements made for interest 114,243 88,066
Cash (refunds received) disbursements made for income taxes, net $ (30,569) $ 1,180
v3.8.0.1
Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows Cash, Cash Equivalents And Restricted Cash Reconciliation - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
Dec. 31, 2016
Statement of Cash Flows [Abstract]        
Total cash and cash equivalents $ 69,286 $ 66,752 $ 108,160 $ 69,654
Restricted cash 727,471 688,193 787,635 980,961
Restricted cash – due to customers 128,515 187,121 93,699 119,702
Cash, cash equivalents, and restricted cash $ 925,272 $ 942,066 $ 989,494 $ 1,170,317
v3.8.0.1
Basis of Financial Reporting
3 Months Ended
Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Financial Reporting
Basis of Financial Reporting

The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of March 31, 2018 and for the three months ended March 31, 2018 and 2017 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2017 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results for the year ending December 31, 2018. The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the "2017 Annual Report").

Reporting Segment Name Changes

The Company changed the name of the Tuition Payment Processing and Campus Commerce operating segment to Education Technology, Services, and Payment Processing this quarter to better describe the evolution of services this operating segment provides. In addition, the Loan Systems and Servicing segment was retitled as Loan Servicing and Systems. As a result, the line items "tuition payment processing, school information, and campus commerce revenue" and "loan systems and servicing revenue" on the consolidated statements of income were changed to "education technology, services, and payment processing revenue" and "loan servicing and systems revenue," respectively.

Reclassifications

Certain amounts previously reported within the Company's consolidated balance sheet and statements of income have been reclassified to conform to the current period presentation. These reclassifications include:

Reclassifying certain non-customer receivables, which were previously included in "accounts receivable" to "other assets."

Reclassifying direct costs to provide services for education technology, services, and payment processing, which were previously included in "other expenses" to "cost to provide education technology, services, and payment processing services."

Reclassifying the line item "cost to provide communications services" on the statements of income from part of "operating expenses" and presenting such costs as part of "cost of services."

Accounting Standards Adopted in 2018

In the first quarter of 2018, the Company adopted the following new accounting guidance:
Revenue Recognition

In May 2014, the Financial Accounting Standards Board ("FASB") issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
The Company adopted the standard effective January 1, 2018, using the full retrospective method, which required it to restate each prior reporting period presented. As a result, the Company has changed its accounting policy for revenue recognition as detailed in note 2, “Summary of Significant Accounting Policies and Practices.”
The most significant impact of the standard relates to identifying the Company's Education Technology, Services, and Payment Processing operating segment as the principal in its payment services transactions. As a result of this change, the Company will present the payment services revenue gross with the direct costs to provide these services presented separately. The majority of the Company's revenue earned in its Asset Generation and Management operating segment, including loan interest and derivative activity, is explicitly excluded from the scope of the new guidance. Other than the payment services transactions discussed above, the Company’s other fee-based operating segments will recognize revenue consistent with historical revenue recognition patterns.
Impacts to Previously Reported Results
Adoption of the revenue recognition standard impacted the Company’s previously reported results on the consolidated statements of income as follows:
 
Three months ended March 31, 2017
 
As previously reported
 
Impact of adoption
 
As restated
Education technology, services, and payment processing revenue
$
43,620

 
12,404

 
56,024

 
Cost to provide education technology, services, and payment processing services

 
12,404

 
12,404

(a)

(a)
In addition to the impact of adopting the new revenue recognition standard, as discussed above, the Company reclassed other direct costs to provide education technology, services, and payment processing revenue which were previously reported as part of "other expenses" to "cost to provide education technology, services, and payment processing services."
Adoption of the new revenue recognition standard had no impact to the consolidated balance sheets or cash provided by or used in operating, financing, or investing activities on the consolidated statements of cash flows.
Equity Investments

In January 2016, the FASB issued new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. The guidance requires equity investments with readily determinable fair values to be measured at fair value, with changes in the fair value recognized through net income (other than those equity investments accounted for under the equity method of accounting or those that result in consolidation of the investee). An entity may choose to measure equity investments without readily determinable fair values at fair value or use the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. In addition, the impairment assessment is simplified by requiring a qualitative assessment to identify impairment.

The guidance requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities with readily determinable fair values previously recognized in accumulated other comprehensive income; and along with a related clarifying update, was adopted by the Company as of January 1, 2018. Upon adoption, the Company recorded an immaterial cumulative-effect adjustment to retained earnings, accumulated other comprehensive earnings, and investments and notes receivable. Subsequent to the adoption, the Company is accounting for the majority of its equity investments without readily determinable fair values using the measurement alternative.

Other Comprehensive Income

In February 2018, the FASB issued guidance which allows a reclassification from accumulated other comprehensive earnings to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act, which became effective on January 1, 2018. This guidance is effective for fiscal years beginning after December 15, 2018, but early adoption is permitted in periods for which financial statements have not yet been issued. The Company elected to early adopt this guidance as of January 1, 2018. Upon adoption, the Company recorded an immaterial reclassification between accumulated other comprehensive earnings and retained earnings.

Restricted Cash

In November 2016, the FASB issued accounting guidance related to restricted cash. The new standard requires that the statement of cash flows present the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents, and a reconciliation of such total to amounts on the balance sheet. The Company adopted the standard effective January 1, 2018 using the retrospective transition method. Adoption of this standard impacted the Company's previously reported results on the consolidated statements of cash flows as follows:
 
Three months ended March 31, 2017
 
As previously reported
 
Impact of adoption
 
As restated
Decrease in due to customers
$

 
(26,003
)
 
(26,003
)
Net cash provided by operating activities
73,833

 
(26,003
)
 
47,830

Decrease in restricted cash
193,326

 
(193,326
)
 

Net cash provided by investing activities
1,051,415

 
(193,326
)
 
858,089

v3.8.0.1
Summary of Significant Accounting Policies and Practices
3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies and Practices
Summary of Significant Accounting Policies and Practices

Except for the changes below, no material changes have been made to the Company’s significant accounting policies disclosed in note 3, Summary of Significant Accounting Policies and Practices, in its 2017 Annual Report.

Revenue Recognition

The Company applies the provisions of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), to its fee-based operating segments. The majority of the Company’s revenue earned in its Asset Generation and Management operating segment, including loan interest and derivative activity, is explicitly excluded from the scope of ASC Topic 606. The Company recognizes revenue under the core principle of ASC Topic 606 to depict the transfer of control of products and services to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. Additional information related to the Company's revenue recognition of specific items is further provided below.

The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment.

Loan servicing and systems revenue - Loan servicing and systems revenue consists of the following items:

Loan servicing revenue - Loan servicing revenue consideration is determined from individual contracts with customers and is calculated monthly based on the dollar value of loans, number of loans, or number of borrowers serviced for each customer. Loan servicing requires a significant level of integration and the individual components are not considered distinct. The Company will perform various services during each distinct service period. Even though the mix and quantity of activities that the Company performs each period may differ, the nature of the promise is substantially the same. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously consume and receive benefits.

Software services revenue - Software services revenue consideration is determined from individual contracts with customers and includes license and maintenance fees associated with loan software products, generally in a remote hosted environment, and computer and software consulting. Usage-based revenue from remote hosted licenses is allocated to and recognized in the distinct service period, typically a month, and recognized as control transfers, and non-refundable up-front revenue is recognized ratably over the contract period as customers simultaneously consume and receive benefits. Loan conversion activities in certain customer contracts are capable of being distinct and accounted for as a separate performance obligation. Revenue allocated to loan conversion activities is recognized at the point in time when the conversion is complete. Computer and software consulting is also capable of being distinct and accounted for as a separate performance obligation. Revenue allocated to computer and software consulting is recognized as services are provided.

Outsourced services revenue - Outsourced services revenue consideration is determined from individual contracts with customers and is calculated monthly based on the volume of services. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously consume and receive benefits.





The following table provides disaggregated revenue by service offering:
 
Three months ended March 31,
 
2018
 
2017
Government servicing - Nelnet
$
39,327

 
39,007

Government servicing - Great Lakes (a)
30,754

 

Private education and consumer loan servicing
13,101

 
5,817

FFELP servicing
7,691

 
4,077

Software services
7,589

 
4,337

 Outsourced services revenue and other
1,679

 
991

Loan servicing and systems revenue
$
100,141

 
54,229


(a)
Great Lakes Educational Loan Services, Inc. ("Great Lakes") was acquired by the Company on February 7, 2018. For additional information about the acquisition, see note 7.

Education technology, services, and payment processing revenue - Education technology, services, and payment processing revenue consists of the following items:

Tuition payment plan services - Tuition payment plan services consideration is determined from individual plan agreements, which are governed by plan service agreements, and includes access to a remote hosted environment and management of payment processing. The management of payment processing is considered a distinct performance obligation when sold with the remote hosted environment. Revenue for each performance obligation is allocated to the distinct service period, the academic school term, and recognized ratably over the service period as customers simultaneously consume and receive benefits.

Education technology and services - Education technology and services consideration is determined from individual contracts with customers and is determined based on the services selected by the customer. Services in K-12 private and faith based schools include (i) assistance with financial needs assessment, (ii) automating administrative processes such as admissions, online applications and enrollment services, scheduling, student billing, attendance, and grade book management, and (iii) professional development and educational instruction services. Revenue for these services is recognized for the consideration the Company has a right to invoice. The amount the Company has a right to invoice is an amount that corresponds directly with the value provided to the customer based on the performance completed. Services also include innovative education-focused technologies, services, and support solutions to help schools with the everyday challenges of collecting and processing commerce data. These services are considered distinct performance obligations. Revenue for each performance obligation is allocated to the distinct service period, typically a month or based on when each transaction is completed, and recognized as control transfers as customers simultaneously consume and receive benefits.

Payment processing - Payment processing consideration is determined from individual contracts with customers and includes electronic transfer and credit card processing, reporting, virtual terminal solutions, and specialized integrations to business software for education and non-education markets. Volume-based revenue from payment processing is allocated and recognized to the distinct service period, based on when each transaction is completed, and recognized as control transfers as customers simultaneously consume and receive benefits.

The following table provides disaggregated revenue by service offering:
 
Three months ended March 31,
 
2018
 
2017
Tuition payment plan services
$
23,043

 
21,787

Payment processing
19,926

 
18,945

Education technology and services
16,975

 
15,147

Other
277

 
145

Education technology, services, and payment processing revenue
$
60,221

 
56,024


Cost to provide education technology, services, and payment processing services is primarily associated with providing payment processing services. Interchange and payment network fees are charged by the card associations or payment networks. Depending upon the transaction type, the fees are a percentage of the transaction’s dollar value, a fixed amount, or a combination of the two methods. Other costs included in cost to provide education technology, services, and payment processing services include salaries and benefits and outside professional services costs directly related to providing professional development and educational instruction services to teachers, school leaders, and students.

Communications revenue - Communications revenue is derived principally from internet, television, and telephone services and is billed as a flat fee in advance of providing the service. Revenues for usage-based services, such as access charges billed to other telephone carriers for originating and terminating long-distance calls on the Company's network, are billed in arrears. These are each considered distinct performance obligations. Revenue is recognized monthly for the consideration the Company has a right to invoice. The amount the Company has a right to invoice is an amount that corresponds directly with the value provided to the customer based on the performance completed. The Company recognizes revenue from these services in the period the services are rendered rather than billed. The Company records deferred revenue when revenue is recognized subsequent to invoicing. Earned but unbilled usage-based services are recorded in accounts receivable.

The following table provides disaggregated revenue by service offering and customer type:
 
Three months ended March 31,
 
2018
 
2017
Internet
$
4,696

 
2,202

Television
2,783

 
1,623

Telephone
1,689

 
1,262

Other
21

 
19

Communications revenue
$
9,189

 
5,106

 
 
 
 
Residential revenue
$
6,747

 
3,351

Business revenue
2,381

 
1,696

Other revenue
61

 
59

Communications revenue
$
9,189

 
5,106



Cost to provide communications services is primarily associated with television programming costs.  The Company has various contracts to obtain video programming from programming vendors whose compensation is typically based on a flat fee per customer. The cost of the right to exhibit network programming under such arrangements is recorded in the month the programming is available for exhibition.  Programming costs are paid each month based on calculations performed by the Company and are subject to periodic audits performed by the programmers. Other costs included in cost to provide communications services include connectivity, franchise, and other regulatory costs directly related to providing internet and voice services.

Other income - The following table provides the components of "other income" on the consolidated statements of income:
 
Three months ended March 31,
 
2018
 
2017
Realized and unrealized gains on investments, net
$
9,081

 
324

Borrower late fee income
2,983

 
3,319

Investment advisory fees
1,593

 
3,516

Management fee revenue
1,161

 

Peterson's revenue

 
2,836

Other
3,380

 
2,637

Other income
$
18,198

 
12,632



Borrower late fee income - Late fee income is earned by the education lending subsidiaries. Revenue is allocated to the distinct service period, based on when each transaction is completed.

Investment advisory fees - Investment advisory services are provided by the Company through an SEC-registered investment advisor subsidiary under various arrangements. The Company earns monthly fees based on the monthly outstanding balance of investments and certain performance measures, which are recognized monthly as the uncertainty of the transaction price is resolved.

Management fee revenue - Management fee revenue is earned for technology and certain administrative support services provided to Great Lakes' former parent company. Revenue is allocated to the distinct service period, based on when each transaction is completed.

Peterson's revenue - The Company earned revenue related to digital marketing and content solution products and services under the brand name Peterson's. These products and services included test preparation study guides, school directories and databases, career exploration guides, on-line courses and test preparation, scholarship search and selection data, career planning information and guides, and on-line information about colleges and universities. Several content solutions services included services to connect students to colleges and universities, and were sold based on subscriptions. Revenue from sales of subscription services was recognized ratably over the term of the contract as it was earned. Subscription revenue received or receivable in advance of the delivery of services was included in deferred revenue. Revenue from the sale of print products was generally earned and recognized, net of estimated returns, upon shipment or delivery. All other digital marketing and content solutions revenue was recognized over the period in which services were provided to customers. On December 31, 2017, the Company sold Peterson's. The Company applied a practical expedient allowed for the retrospective comparative period which does not require the Company to restate revenue from contracts that began and were completed within the same annual reporting period.

Contract Balances - The following table provides information about contract liabilities from contracts with customers:
 
As of March 31, 2018
 
As of December 31, 2017
Deferred revenue, which is included in "other liabilities" on the consolidated balance sheets
$
22,715

 
32,276



Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records deferred revenue when revenue is recognized subsequent to invoicing. For multi-year contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component.

Activity in the deferred revenue balance is shown below:
 
Three months ended March 31,
 
2018
 
2017
Balance, beginning of period
$
32,276

 
33,141

Deferral of revenue
17,050

 
15,918

Recognition of unearned revenue
(26,802
)
 
(24,878
)
Other
191

 
87

Balance, end of period
$
22,715

 
24,268



Assets Recognized from the Costs to Obtain a Contract with a Customer - The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has determined that certain sales incentive programs meet the requirements to be capitalized. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in “other assets” on the consolidated balance sheets.
v3.8.0.1
Loans Receivable and Allowance for Loan Losses
3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Loans Receivable and Allowance for Loan Losses
Loans Receivable and Allowance for Loan Losses

Loans receivable consisted of the following:
 
As of
 
As of
 
March 31, 2018
 
December 31, 2017
Federally insured student loans:
 
 
 
Stafford and other
$
4,363,159

 
4,418,881

Consolidation
17,098,389

 
17,302,725

Total
21,461,548

 
21,721,606

Private education loans
194,310

 
212,160

Consumer loans
77,855

 
62,111

 
21,733,713

 
21,995,877

Loan discount, net of unamortized loan premiums and deferred origination costs
(103,542
)
 
(113,695
)
Non-accretable discount
(12,847
)
 
(13,085
)
Allowance for loan losses:
 
 
 
Federally insured loans
(38,374
)
 
(38,706
)
Private education loans
(12,255
)
 
(12,629
)
Consumer loans
(4,665
)
 
(3,255
)
 
$
21,562,030

 
21,814,507


Activity in the Allowance for Loan Losses

The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of loans. Activity in the allowance for loan losses is shown below.
 
Three months ended March 31, 2018
 
Balance at beginning of period
 
Provision for loan losses
 
Charge-offs
 
Recoveries
 
Other
 
Balance at end of period
Federally insured loans
$
38,706

 
2,000

 
(3,332
)
 

 
1,000

 
38,374

Private education loans
12,629

 

 
(539
)
 
165

 

 
12,255

Consumer loans
3,255

 
2,000

 
(595
)
 
5

 

 
4,665

 
$
54,590

 
4,000

 
(4,466
)
 
170

 
1,000

 
55,294

 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2017
Federally insured loans
$
37,268

 
2,000

 
(2,581
)
 

 

 
36,687

Private education loans
14,574

 
(1,000
)
 
(82
)
 
197

 
150

 
13,839

Consumer loans

 

 

 

 

 

 
$
51,842

 
1,000

 
(2,663
)
 
197

 
150

 
50,526


Student Loan Status and Delinquencies

Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.  The table below shows the Company’s loan delinquency amounts for federally insured and private education loans.
 
As of March 31, 2018
 
As of December 31, 2017
 
As of March 31, 2017
Federally insured loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
1,312,319

 
 
 
$
1,260,394

 
 
 
$
1,604,494

 
 
Loans in forbearance
1,650,913

 
 
 
1,774,405

 
 
 
2,125,344

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
16,368,668

 
88.5
%
 
16,477,004

 
88.2
%
 
17,690,083

 
87.5
%
Loans delinquent 31-60 days
669,490

 
3.6

 
682,586

 
3.7

 
732,433

 
3.6

Loans delinquent 61-90 days
426,696

 
2.3

 
374,534

 
2.0

 
493,876

 
2.4

Loans delinquent 91-120 days
252,659

 
1.4

 
287,922

 
1.5

 
275,711

 
1.4

Loans delinquent 121-270 days
570,538

 
3.1

 
629,480

 
3.4

 
763,030

 
3.8

Loans delinquent 271 days or greater
210,265

 
1.1

 
235,281

 
1.2

 
255,122

 
1.3

Total loans in repayment
18,498,316

 
100.0
%
 
18,686,807

 
100.0
%
 
20,210,255

 
100.0
%
Total federally insured loans
$
21,461,548

 
 

 
$
21,721,606

 
 

 
$
23,940,093

 
 
Private education loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
5,532

 
 
 
$
6,053

 
 
 
$
34,138

 
 
Loans in forbearance
2,574

 
 
 
2,237

 
 
 
3,811

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
178,976

 
96.1
%
 
196,720

 
96.5
%
 
213,081

 
97.4
%
Loans delinquent 31-60 days
1,630

 
0.9

 
1,867

 
0.9

 
1,355

 
0.6

Loans delinquent 61-90 days
1,110

 
0.6

 
1,052

 
0.5

 
1,402

 
0.6

Loans delinquent 91 days or greater
4,488

 
2.4

 
4,231

 
2.1

 
3,029

 
1.4

Total loans in repayment
186,204

 
100.0
%
 
203,870

 
100.0
%
 
218,867

 
100.0
%
Total private education loans
$
194,310

 
 

 
$
212,160

 
 

 
$
256,816

 
 
v3.8.0.1
Bonds and Notes Payable
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Bonds and Notes Payable
Bonds and Notes Payable

The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
As of March 31, 2018
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
20,132,994

 
1.85% - 3.99%
 
4/25/24 - 5/25/66
Bonds and notes based on auction
766,948

 
2.20% - 2.88%
 
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes
20,899,942

 
 
 
 
FFELP warehouse facilities
339,063

 
1.94% / 2.00%
 
11/19/19 / 5/31/20
Variable-rate bonds and notes issued in private education loan asset-backed securitization
66,765

 
3.62%
 
12/26/40
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
76,193

 
3.60% / 5.35%
 
12/26/40 / 12/28/43
Unsecured line of credit
150,000

 
3.20%
 
12/12/21
Unsecured debt - Junior Subordinated Hybrid Securities
20,381

 
5.68%
 
9/15/61
Other borrowings
29,450

 
3.16% - 3.66%
 
3/31/23 - 12/15/45
 
21,581,794

 
 
 
 
Discount on bonds and notes payable and debt issuance costs
(354,445
)
 
 
 
 
Total
$
21,227,349

 
 
 
 
 
As of December 31, 2017
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
20,352,045

 
1.47% - 3.37%
 
8/25/21 - 2/25/66
Bonds and notes based on auction
780,829

 
2.09% - 2.69%
 
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes
21,132,874

 
 
 
 
FFELP warehouse facilities
335,992

 
1.55% / 1.56%
 
11/19/19 / 5/31/20
Variable-rate bonds and notes issued in private education loan asset-backed securitization
74,717

 
3.30%
 
12/26/40
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
82,647

 
3.60% / 5.35%
 
12/26/40 / 12/28/43
Unsecured line of credit
10,000

 
2.98%
 
12/12/21
Unsecured debt - Junior Subordinated Hybrid Securities
20,381

 
5.07%
 
9/15/61
Other borrowings
70,516

 
2.44% - 3.38%
 
1/12/18 - 12/15/45
 
21,727,127

 
 
 
 
Discount on bonds and notes payable and debt issuance costs
(370,554
)
 
 
 
 
Total
$
21,356,573

 
 
 
 



FFELP Warehouse Facilities

The Company funds a portion of its FFELP loan acquisitions using its FFELP warehouse facilities. Student loan warehousing allows the Company to buy and manage student loans prior to transferring them into more permanent financing arrangements.

As of March 31, 2018, the Company had two FFELP warehouse facilities as summarized below.
 
 
NFSLW-I
 
NHELP-II
 
Total
Maximum financing amount
 
$
500,000

 
500,000

 
1,000,000

Amount outstanding
 
49,623

 
289,440

 
339,063

Amount available
 
$
450,377

 
210,560

 
660,937

Expiration of liquidity provisions
 
September 20, 2019

 
May 31, 2018

 
 
Final maturity date
 
November 19, 2019

 
May 31, 2020

 
 
Maximum advance rates
 
92.0 - 98.0%

 
85.0 - 95.0%

 
 
Minimum advance rates
 
84.0 - 90.0%

 
85.0 - 95.0%

 
 
Advanced as equity support
 
$
2,402

 
25,269

 
27,671



Asset-Backed Securitizations

The following table summarizes the asset-backed securitization transactions completed during the first three months of 2018.
 
 
NSLT 2018-1
 
Total
 
 
Class A-1 Notes
 
Class A-2 Notes
 
 
Date securities issued
 
3/29/18
 
3/29/18
 
 
Total principal amount
 
$
98,000

 
375,750

 
473,750

Cost of funds
 
1-month LIBOR plus 0.32%
 
1-month LIBOR plus 0.76%
 
 
Final maturity date
 
5/25/66
 
5/25/66
 
 


Unsecured Line of Credit

The Company has a $350.0 million unsecured line of credit that has a maturity date of December 12, 2021.  As of March 31, 2018, $150.0 million was outstanding on the line of credit and $200.0 million was available for future use.

Debt Repurchases

During the three months ended March 31, 2018, the Company repurchased $12.9 million of its own FFELP asset backed securities. The Company paid $12.5 million to redeem these notes and recognized a gain of $0.4 million. The majority of the gain recognized by the Company from debt repurchases in the three months ended March 31, 2017 was from the Company's cash tender offer in which it repurchased $29.7 million in outstanding Hybrid Securities for $25.3 million in cash.
v3.8.0.1
Derivative Financial Instruments
3 Months Ended
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments

The Company uses derivative financial instruments primarily to manage interest rate risk and foreign currency exchange risk. Derivative instruments used as part of the Company's risk management strategy are further described in note 6 of the notes to consolidated financial statements included in the 2017 Annual Report. A tabular presentation of such derivatives outstanding as of March 31, 2018 and December 31, 2017 is presented below.

Basis Swaps

The following table summarizes the Company’s outstanding basis swaps in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps").
 
 
 
As of March 31,
 
As of December 31,
 
 
2018
 
2017
Maturity
 
Notional amount
 
Notional amount
2018
 
$
1,750,000

 
4,250,000

2019
 
3,500,000

 
3,500,000

2022
 
1,000,000

 
1,000,000

2023
 
750,000

 

2024
 
250,000

 
250,000

2026
 
1,150,000

 
1,150,000

2027
 
375,000

 
375,000

2028
 
325,000

 
325,000

2029
 
100,000

 
100,000

2031
 
300,000

 
300,000

 
 
$
9,500,000

 
11,250,000


The weighted average rate paid by the Company on the 1:3 Basis Swaps as of March 31, 2018 and December 31, 2017 was one-month LIBOR plus 10.6 basis points and 12.5 basis points, respectively.
Interest Rate Swaps – Floor Income Hedges

The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
 
 
As of March 31, 2018
 
As of December 31, 2017
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
2018
 
$
1,250,000

 
1.08
%
 
$
1,350,000

 
1.07
%
2019
 
3,250,000

 
0.97

 
3,250,000

 
0.97

2020
 
1,500,000

 
1.01

 
1,500,000

 
1.01

2023
 
750,000

 
2.28

 
750,000

 
2.28

2024
 
300,000

 
2.28

 
300,000

 
2.28

2025
 
100,000

 
2.32

 
100,000

 
2.32

2027
 
50,000

 
2.32

 
50,000

 
2.32

2028
 
100,000

 
3.03

 

 

 
 
$
7,300,000

 
1.24
%
 
$
7,300,000

 
1.21
%

(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.

On August 20, 2014, the Company paid $9.1 million for an interest rate swap option to economically hedge loans earning fixed rate floor income. The interest rate swap option gives the Company the right, but not the obligation, to enter into a $250.0 million notional interest rate swap in which the Company would pay a fixed amount of 3.30% and receive discrete one-month LIBOR. If the interest rate swap option is exercised, the swap would become effective on August 21, 2019 and mature on August 21, 2024.

Interest Rate Caps

In June 2015, in conjunction with the entry into a $275.0 million private education loan warehouse facility, the Company paid $2.9 million for two interest rate cap contracts with a total notional amount of $275.0 million. The first interest rate cap has a notional amount of $125.0 million and a one-month LIBOR strike rate of 2.50%, and the second interest rate cap has a notional amount of $150.0 million and a one-month LIBOR strike rate of 4.99%. In the event that the one-month LIBOR rate rises above the applicable strike rate, the Company would receive monthly payments related to the spread difference. Both interest rate cap contracts have a maturity date of July 15, 2020. The private education loan warehouse facility was terminated by the Company on December 21, 2016. During the first quarter of 2017, the Company received $913,000 to terminate the interest rate cap contracts that were held in the private education loan warehouse legal entity and paid $929,000 to enter into new interest rate cap contracts with identical terms at Nelnet, Inc. (the parent company). The Company currently intends to keep these derivatives outstanding to partially mitigate a rise in interest rates and its impact on earnings related to its student loan portfolio earning a fixed rate.

Interest Rate Swaps – Unsecured Debt Hedges

As of March 31, 2018 and December 31, 2017, the Company had $20.4 million of unsecured Hybrid Securities outstanding. The interest rate on the Hybrid Securities through September 29, 2036 is equal to three-month LIBOR plus 3.375%, payable quarterly. The Company had the following derivatives outstanding as of March 31, 2018 and December 31, 2017 that are used to effectively convert the variable interest rate on a designated notional amount with respect to the Hybrid Securities to a fixed rate of 7.66%.
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
25,000

 
4.28
%

(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.

Consolidated Financial Statement Impact Related to Derivatives

Balance Sheet

The following table summarizes the fair value of the Company’s derivatives as reflected in the consolidated balance sheets:
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of March 31, 2018
 
As of December 31, 2017
 
As of March 31, 2018
 
As of December 31, 2017
Interest rate swap option - floor income hedge
$
1,290

 
543

 

 

Interest rate caps
601

 
275

 

 

Interest rate swaps - hybrid debt hedges

 

 
5,601

 
7,063

Total
$
1,891

 
818

 
5,601

 
7,063



Offsetting of Derivative Assets/Liabilities

The following tables include the gross amounts related to the Company's derivative portfolio recognized in the consolidated balance sheets, reconciled to the net amount when excluding derivatives subject to enforceable master netting arrangements and cash collateral received/pledged.
 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative assets
 
Gross amounts of recognized assets presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral received
 
Net asset
Balance as of March 31, 2018
 
$
1,891

 

 

 
1,891

Balance as of December 31, 2017
 
818

 

 

 
818


 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative liabilities
 
Gross amounts of recognized liabilities presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral pledged
 
Net asset (liability)
Balance as of March 31, 2018
 
$
(5,601
)
 

 
7,520

 
1,919

Balance as of December 31, 2017
 
(7,063
)
 

 
8,520

 
1,457


Income Statement Impact

The following table summarizes the components of "derivative market value and foreign currency transaction adjustments and derivative settlements, net" included in the consolidated statements of income.
 
Three months ended March 31,
 
2018
 
2017
Settlements:
 

 
 

1:3 basis swaps
$
(1,664
)
 
698

Interest rate swaps - floor income hedges
8,590

 
(120
)
Interest rate swaps - hybrid debt hedges
(160
)
 
(205
)
Cross-currency interest rate swap

 
(1,751
)
Total settlements - income (expense)
6,766

 
(1,378
)
Change in fair value:
 

 
 

1:3 basis swaps
13,297

 
(2,574
)
Interest rate swaps - floor income hedges
44,201

 
4,324

Interest rate swap option - floor income hedge
747

 
(884
)
Interest rate caps
326

 
(522
)
Interest rate swaps - hybrid debt hedges
1,462

 
419

Cross-currency interest rate swap

 
935

Other

 
(460
)
Total change in fair value - income (expense)
60,033

 
1,238

Re-measurement of Euro Notes (foreign currency transaction adjustment)

 
(4,690
)
Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense)
$
66,799

 
(4,830
)
v3.8.0.1
Investments and Notes Receivable
3 Months Ended
Mar. 31, 2018
Investments [Abstract]  
Investments and Notes Receivable
Investments and Notes Receivable

A summary of the Company's investments and notes receivable follows:
 
As of March 31, 2018
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
Investments (at fair value):
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities - available-for-sale (a)
$
78,203

 
4,558

 
(634
)
(b)
82,127

Equity securities
13,682

 
3,554

 
(151
)
 
17,085

Total investments (at fair value)
$
91,885

 
8,112

 
(785
)
 
99,212

 
 
 
 
 
 
 
 
Other Investments and Notes Receivable (not measured at fair value):
 
 
 
 
Venture capital:
 
 
 
 
 
 
 
Measurement alternative (c)
 
 
 
 
 
 
68,409

Equity method
 
 
 
 
 
 
16,175

Other
 
 
 
 
 
 
783

  Total venture capital
 
 
 
 
 
 
85,367

Real estate:
 
 
 
 
 
 
 
Equity method
 
 
 
 
 
 
18,850

Other
 
 
 
 
 
 
30,005

  Total real estate
 
 
 
 
 
 
48,855

 
 
 
 
 
 
 
 
Notes receivable
 
 
 
 
 
 
16,373

Tax liens and affordable housing
 
 
 
 
 
 
8,619

Total investments and notes receivable (not measured at fair value)
 
 
 
 
 
 
159,214

Total investments and notes receivable
 
 
 
 
 
 
$
258,426


 
As of December 31, 2017
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
Investments (at fair value):
 
 
 
 
 
 
 
Available-for-sale investments:
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities
$
71,943

 
5,056

 
(25
)
 
76,974

Equity securities
1,630

 
2,298

 

 
3,928

Total available-for-sale investments
$
73,573

 
7,354

 
(25
)
 
80,902

 
 
 
 
 
 
 
 
Other Investments and Notes Receivable (not measured at fair value):
 
 
 
 
 
 
 
Venture capital and funds
 
 
 
 
 
 
84,752

Real estate
 
 
 
 
 
 
49,464

Notes receivable
 
 
 
 
 
 
16,393

Tax liens and affordable housing
 
 
 
 
 
 
9,027

Total investments and notes receivable
 
 
 
 
 
 
$
240,538


    
(a)
As of March 31, 2018, the stated maturities of substantially all of the Company's student loan asset-backed and other debt securities classified as available-for-sale were greater than 10 years.

(b)
As of March 31, 2018, the aggregate fair value of available-for-sale investments with unrealized losses was $17.8 million, of which none had been in a continuous unrealized loss position for greater than 12 months. Because the Company currently has the intent and ability to retain these investments for an anticipated recovery in fair value, as of March 31, 2018, the Company considered the decline in market value of its available-for-sale investments to be temporary in nature and did not consider any of its investments other-than-temporarily impaired.

(c)
The Company accounts for the majority of its equity securities without readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer (the measurement alternative method). For the three months ended March 31, 2018, the Company recorded no impairments and upward adjustments of $6.9 million on these investments. The upward adjustments were made as a result of observable price changes.
v3.8.0.1
Business Combination
3 Months Ended
Mar. 31, 2018
Business Combinations [Abstract]  
Business Combination
Business Combination

Great Lakes Educational Loan Services, Inc. ("Great Lakes")

On February 7, 2018, the Company acquired 100 percent of the outstanding stock of Great Lakes for total cash consideration of $150.0 million. Great Lakes provides servicing for federally-owned student loans for the U.S. Department of Education (the "Department"), FFELP loans, and private education and consumer loans. The acquisition of Great Lakes has expanded the Company's portfolio of loans it services. The operating results of Great Lakes are included in the Loan Servicing and Systems operating segment.

As part of the acquisition, the Company acquired the remaining 50 percent ownership in GreatNet Solutions, LLC ("GreatNet"), a joint venture formed prior to the acquisition between Nelnet Servicing, LLC ("Nelnet Servicing"), a subsidiary of the Company, and Great Lakes. Prior to the acquisition of the remaining 50 percent of GreatNet, the Company consolidated the operating results of GreatNet as the Company was deemed to have control over the joint venture. The proportionate share of membership interest (equity) and net loss of GreatNet that was attributable to Great Lakes was reflected as noncontrolling interests in the Company's consolidated financial statements. The Company recognized a $19.1 million reduction to consolidated shareholders' equity as a result of acquiring Great Lakes' 50 percent ownership in GreatNet. This transaction resulted in a $5.7 million decrease in noncontrolling interest and $13.4 million decrease in retained earnings.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The fair value of the assets and liabilities related to Great Lakes are subject to refinement as the Company completes its analysis relative to the fair values at the date of acquisition. The fair value assigned to the acquisition of the noncontrolling interest in GreatNet reduced the total consideration allocated to the assets acquired and liabilities assumed of Great Lakes from $150.0 million to $136.6 million.
Cash and cash equivalents
$
27,399

Accounts receivable
23,708

Property and equipment
36,040

Other assets
14,015

Intangible assets
72,278

Excess cost over fair value of net assets acquired (goodwill)
19,697

Other liabilities
(56,586
)
Net assets acquired
$
136,551



The $72.3 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 4 years. The intangible assets that made up this amount include customer relationships of $67.2 million (4-year useful life) and a trade name of $5.1 million (7-year useful life).

The $19.7 million of goodwill was assigned to the Loan Servicing and Systems operating segment and is not expected to be deductible for tax purposes. The amount allocated to goodwill was primarily attributed to the deferred tax liability related to the difference between the carrying amount and tax bases of acquired identifiable intangible assets and the synergies and economies of scale expected from combining the operations of the Company and Great Lakes.

The consolidated financial statements as of March 31, 2018, and for the three months then ended, include amounts acquired from, as well as the results of operations of Great Lakes from February 7, 2018 and forward. Results of operations for the three months ended March 31, 2018 include revenues of $43.5 million and net income of $11.9 million attributed to Great Lakes since its acquisition. The following unaudited pro forma information for the Company has been prepared as if the acquisition of Great Lakes had occurred on January 1, 2017. The information is based on the historical results of the separate companies and may not necessarily be indicative of the results that could have been achieved or of results that may occur in the future. The pro forma adjustments include the impact of depreciation and amortization of property and equipment and intangible assets acquired.

 
Three months ended March 31,
 
2018
 
2017
Loan servicing and systems revenue
$
120,188

 
116,149

 
 
 
 
Net income attributable to Nelnet, Inc.
$
118,029

 
61,421

 
 
 
 
Net income per share - basic and diluted
$
2.88

 
1.45

v3.8.0.1
Intangible Assets
3 Months Ended
Mar. 31, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets
Intangible Assets

Intangible assets consist of the following:
 
 
Weighted average remaining useful life as of March 31, 2018 (months)
 
As of March 31, 2018
 
As of December 31, 2017
 
 
Amortizable intangible assets, net:
 
 
 
 
Customer relationships (net of accumulated amortization of $16,766 and $12,715, respectively)
77
 
$
87,275

 
24,168

 
Trade names (net of accumulated amortization of $3,283 and $2,498, respectively)
86
 
13,409

 
9,074

 
Computer software (net of accumulated amortization of $11,381 and $10,013, respectively)
20
 
6,290

 
4,958

 
Covenants not to compete (net of accumulated amortization of $136 and $127, respectively)
74
 
218

 
227

 
Total - amortizable intangible assets, net
75
 
$
107,192

 
38,427



The Company recorded amortization expense on its intangible assets of $6.2 million and $2.4 million during the three months ended March 31, 2018 and 2017, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of March 31, 2018, the Company estimates it will record amortization expense as follows:

2018 (April 1 - December 31)
$
22,975

2019
27,373

2020
24,175

2021
14,278

2022
3,723

2023 and thereafter
14,668

 
$
107,192

v3.8.0.1
Goodwill
3 Months Ended
Mar. 31, 2018
Goodwill [Abstract]  
Goodwill
Goodwill

The change in the carrying amount of goodwill by reportable operating segment was as follows:
 
Loan Servicing and Systems
 
Education Technology, Services, and Payment Processing
 
Communications
 
Asset Generation and Management
 
Corporate and Other Activities
 
Total
Balance as of December 31, 2017
$
8,596

 
67,168

 
21,112

 
41,883

 

 
138,759

Goodwill acquired during the period
19,697

 

 

 

 

 
19,697

Balance as of March 31, 2018
$
28,293


67,168


21,112


41,883




158,456

v3.8.0.1
Property and Equipment
3 Months Ended
Mar. 31, 2018
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment

Property and equipment consisted of the following:
 
 
 
As of
 
As of
 
Useful life
 
March 31, 2018
 
December 31, 2017
Non-communications:
 
 
 
 
 
Computer equipment and software
1-5 years
 
$
128,304

 
124,708

Building and building improvements
5-39 years
 
46,576

 
24,003

Office furniture and equipment
3-7 years
 
21,474

 
15,210

Leasehold improvements
5-15 years
 
9,177

 
7,759

Transportation equipment
4-10 years
 
4,371

 
3,813

Land
 
3,328

 
2,628

Construction in progress
 
5,728

 
4,127

 
 
 
218,958

 
182,248

Accumulated depreciation - non-communications
 
 
(103,104
)
 
(105,017
)
Non-communications, net property and equipment
 
 
115,854

 
77,231

 
 
 
 
 
 
Communications:
 
 
 
 
 
Network plant and fiber
5-15 years
 
152,054

 
138,122

Customer located property
5-10 years
 
15,565

 
13,767

Central office
5-15 years
 
11,286

 
10,754

Transportation equipment
4-10 years
 
5,923

 
5,759

Computer equipment and software
1-5 years
 
4,598

 
3,790

Other
1-39 years
 
2,631

 
2,516

Land
 
70

 
70

Construction in progress
 
12,170

 
11,620

 
 
 
204,297

 
186,398

Accumulated depreciation - communications
 
 
(20,314
)
 
(15,578
)
Communications, net property and equipment
 
 
183,983

 
170,820

Total property and equipment, net
 
 
$
299,837

 
248,051



The Company recorded depreciation expense on its property and equipment of $12.2 million and $6.2 million during the three months ended March 31, 2018 and 2017, respectively.
v3.8.0.1
Earnings per Common Share
3 Months Ended
Mar. 31, 2018
Earnings Per Share [Abstract]  
Earnings per Common Share
Earnings per Common Share

Presented below is a summary of the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock.
 
Three months ended March 31,
 
2018
 
2017
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
112,788

 
1,137

 
113,925

 
49,505

 
521

 
50,026

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
40,541,870

 
408,658

 
40,950,528

 
41,851,064

 
440,793

 
42,291,857

Earnings per share - basic and diluted
$
2.78

 
2.78

 
2.78

 
1.18

 
1.18

 
1.18

v3.8.0.1
Segment Reporting
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting

See note 15 of the notes to consolidated financial statements included in the 2017 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.
 
Three months ended March 31, 2018
 
Loan Servicing and Systems
 
Education Technology, Services, and Payment Processing
 
Communications
 
Asset
Generation and
Management
 
Corporate and Other Activities
 
Eliminations
 
Total
Total interest income
$
257

 
665

 
1

 
200,334

 
4,751

 
(3,150
)
 
202,857

Interest expense

 

 
2,509

 
134,233

 
1,958

 
(3,150
)
 
135,550

Net interest income
257

 
665

 
(2,508
)
 
66,101

 
2,793

 

 
67,307

Less provision for loan losses

 

 

 
4,000

 

 

 
4,000

Net interest income (loss) after provision for loan losses
257


665

 
(2,508
)
 
62,101

 
2,793

 

 
63,307

Other income:
 

 
 

 
 
 
 

 
 

 
 

 
 

Loan servicing and systems revenue
100,141

 

 

 

 

 

 
100,141

Intersegment servicing revenue
10,771

 

 

 

 

 
(10,771
)
 

Education technology, services, and payment processing revenue

 
60,221

 

 

 

 

 
60,221

Communications revenue

 

 
9,189

 

 

 

 
9,189

Other income
1,292

 

 

 
2,992

 
13,914

 

 
18,198

Gain from debt repurchases

 

 

 
359

 

 

 
359

Derivative settlements, net

 

 

 
6,926

 
(160
)
 

 
6,766

Derivative market value and foreign currency transaction adjustments, net

 

 

 
58,571

 
1,462

 

 
60,033

Total other income
112,204

 
60,221

 
9,189

 
68,848

 
15,216

 
(10,771
)
 
254,907

Cost of services:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost to provide education technology, services, and payment processing services

 
13,683

 

 

 

 

 
13,683

Cost to provide communications services

 

 
3,717

 

 

 

 
3,717

Total cost of services

 
13,683

 
3,717

 

 

 

 
17,400

Operating expenses:
 

 
 

 
 
 
 
 
 

 
 
 
 

Salaries and benefits
58,537

 
19,067

 
4,063

 
382

 
14,594

 

 
96,643

Depreciation and amortization
6,069

 
3,341

 
4,921

 

 
4,126

 

 
18,457

Loan servicing fees

 

 

 
3,136

 

 

 
3,136

Other expenses
14,463

 
4,624

 
2,638

 
848

 
10,845

 

 
33,417

Intersegment expenses, net
13,356

 
2,567

 
605

 
10,865

 
(16,622
)
 
(10,771
)
 

Total operating expenses
92,425

 
29,599

 
12,227

 
15,231

 
12,943

 
(10,771
)
 
151,653

Income (loss) before income taxes
20,036

 
17,604

 
(9,263
)
 
115,718

 
5,066

 

 
149,161

Income tax (expense) benefit (a)
(5,003
)
 
(4,225
)
 
2,223

 
(27,773
)
 
(1,199
)
 

 
(35,976
)
Net income (loss)
15,033

 
13,379

 
(7,040
)
 
87,945

 
3,867

 

 
113,185

  Net loss (income) attributable to noncontrolling interests
808

 

 

 

 
(68
)
 

 
740

Net income (loss) attributable to Nelnet, Inc.
$
15,841

 
13,379

 
(7,040
)
 
87,945

 
3,799

 

 
113,925

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets as of March 31, 2018
$
281,208

 
193,283

 
228,750

 
22,804,734

 
718,251

 
(327,824
)
 
23,898,402


(a)
As a result of the Tax Cuts and Jobs Act, beginning January 1, 2018, income taxes are allocated based on 24% of income before taxes for each individual operating segment. The difference between the consolidated income tax expense and the sum of the taxes calculated for each operating segment, if any, is included in income taxes in Corporate and Other Activities.
 
Three months ended March 31, 2017
 
Loan Servicing and Systems
 
Education Technology, Services, and Payment Processing
 
Communications
 
Asset
Generation and
Management
 
Corporate and Other
Activities
 
Eliminations
 
Total
Total interest income
$
94

 
2

 
1

 
182,326

 
2,761

 
(1,359
)
 
183,824

Interest expense

 

 
712

 
106,751

 
795

 
(1,359
)
 
106,899

Net interest income
94

 
2

 
(711
)
 
75,575

 
1,966

 

 
76,925

Less provision for loan losses

 

 

 
1,000

 

 

 
1,000

Net interest income (loss) after provision for loan losses
94

 
2

 
(711
)
 
74,575

 
1,966

 

 
75,925

Other income:
 

 
 

 
 
 
 

 
 

 
 

 
 

Loan servicing and systems revenue
54,229

 

 

 

 

 

 
54,229

Intersegment servicing revenue
10,323

 

 

 

 

 
(10,323
)
 

Education technology, services, and payment processing revenue

 
56,024

 

 

 

 

 
56,024

Communications revenue

 

 
5,106

 

 

 

 
5,106

Other income

 

 

 
3,342

 
9,290

 

 
12,632

Gain from debt repurchases

 

 

 
540

 
4,440

 

 
4,980

Derivative settlements, net

 

 

 
(1,173
)
 
(205
)
 

 
(1,378
)
Derivative market value and foreign currency transaction adjustments, net

 

 

 
(3,410
)
 
(42
)
 

 
(3,452
)
Total other income
64,552

 
56,024

 
5,106

 
(701
)
 
13,483

 
(10,323
)
 
128,141

Cost of services:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost to provide education technology, services, and payment processing services

 
12,790

 

 

 

 

 
12,790

Cost to provide communications services

 

 
1,954

 

 

 

 
1,954

Total cost of services

 
12,790

 
1,954

 

 

 

 
14,744

Operating expenses:
 

 
 

 
 
 
 

 
 

 
.

 
 

Salaries and benefits
37,992

 
16,652

 
2,979

 
400

 
13,839

 

 
71,863

Depreciation and amortization
549

 
2,391

 
2,135

 

 
3,523

 

 
8,598

Loan servicing fees

 

 

 
6,025

 

 

 
6,025

Other expenses
9,136

 
4,609

 
1,372

 
991

 
10,054

 

 
26,161

Intersegment expenses, net
7,398

 
2,075

 
506

 
10,412

 
(10,068
)
 
(10,323
)
 

Total operating expenses
55,075

 
25,727

 
6,992

 
17,828

 
17,348

 
(10,323
)
 
112,647

Income (loss) before income taxes
9,571

 
17,509

 
(4,551
)
 
56,046

 
(1,899
)
 

 
76,675

Income tax (expense) benefit
(4,555
)
 
(6,653
)
 
1,730

 
(21,297
)
 
2,021

 

 
(28,755
)
Net income (loss)
5,016

 
10,856

 
(2,821
)
 
34,749

 
122

 

 
47,920

  Net loss (income) attributable to noncontrolling interests
2,415

 

 

 

 
(309
)
 

 
2,106

Net income (loss) attributable to Nelnet, Inc.
$
7,431

 
10,856

 
(2,821
)
 
34,749

 
(187
)
 

 
50,026

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets as of March 31, 2017
$
87,115

 
194,809

 
118,842

 
25,325,220

 
682,639

 
(267,405
)
 
26,141,220

v3.8.0.1
Major Customer
3 Months Ended
Mar. 31, 2018
Risks and Uncertainties [Abstract]  
Major Customer
Major Customer
Nelnet Servicing earns loan servicing revenue from a servicing contract with the Department that is currently set to expire on June 16, 2019. Revenue earned by Nelnet Servicing related to this contract was $39.3 million and $39.0 million for the three months ended March 31, 2018 and 2017, respectively.
In addition, Great Lakes, which was acquired by the Company on February 7, 2018, also earns loan servicing revenue from a similar servicing contract with the Department that is currently set to expire on June 16, 2019. Revenue earned by Great Lakes related to this contract was $30.8 million for the period from February 7, 2018 to March 31, 2018.
On February 20, 2018, the Department's Office of Federal Student Aid released information regarding a new contract procurement process for the servicing of student loans owned by the Department. The contract solicitation process is divided into two phases. The contract solicitation requests responses from interested vendors for nine components. Vendors may provide a response for an individual, multiple, or all components. Nelnet Servicing and Great Lakes submitted a joint response to Phase One of the procurement on April 17, 2018.
v3.8.0.1
Fair Value
3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Fair Value
Fair Value

The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the three months ended March 31, 2018.
 
As of March 31, 2018
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
Investments:
 
 
 
 


Student loan and other asset-backed securities - available-for-sale
$

 
82,020

 
82,020

Equity securities
4,719

 

 
4,719

Equity securities measured at net asset value (a)

 

 
12,366

Debt securities
107

 

 
107

Total investments
4,826

 
82,020

 
99,212

Derivative instruments

 
1,891

 
1,891

Total assets
$
4,826

 
83,911

 
101,103

Liabilities:
 

 
 

 
 

Derivative instruments
$

 
5,601

 
5,601

Total liabilities
$

 
5,601

 
5,601



 
As of December 31, 2017
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
Investments (available-for-sale):
 
 
 
 
 
Student loan and other asset-backed securities
$

 
76,866

 
76,866

Equity securities
3,928

 

 
3,928

Debt securities
108

 

 
108

Total investments (available-for-sale)
4,036

 
76,866

 
80,902

Derivative instruments

 
818

 
818

Total assets
$
4,036

 
77,684

 
81,720

Liabilities:
 
 
 
 
 
Derivative instruments
$

 
7,063

 
7,063

Total liabilities
$

 
7,063

 
7,063


(a)
In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.



The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 
As of March 31, 2018
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Loans receivable
$
22,884,620

 
21,562,030

 

 

 
22,884,620

Cash and cash equivalents
69,286

 
69,286

 
69,286

 

 

Investments (at fair value)
99,212

 
99,212

 
4,826

 
82,020

 

Notes receivable
16,373

 
16,373

 

 
16,373

 

Restricted cash
727,471

 
727,471

 
727,471

 

 

Restricted cash – due to customers
128,515

 
128,515

 
128,515

 

 

Accrued interest receivable
489,395

 
489,395

 

 
489,395

 

Derivative instruments
1,891

 
1,891

 

 
1,891

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
21,475,380

 
21,227,349

 

 
21,475,380

 

Accrued interest payable
54,252

 
54,252

 

 
54,252

 

Due to customers
128,515

 
128,515

 
128,515

 

 

Derivative instruments
5,601

 
5,601

 

 
5,601

 

 
As of December 31, 2017
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Loans receivable
$
23,106,440

 
21,814,507

 

 

 
23,106,440

Cash and cash equivalents
66,752

 
66,752

 
66,752

 

 

Investments (available-for-sale)
80,902

 
80,902

 
4,036

 
76,866

 

Notes receivable
16,393

 
16,393

 

 
16,393

 

Restricted cash
688,193

 
688,193

 
688,193

 

 

Restricted cash – due to customers
187,121

 
187,121

 
187,121

 

 

Accrued interest receivable
430,385

 
430,385

 

 
430,385

 

Derivative instruments
818

 
818

 

 
818

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
21,521,463

 
21,356,573

 

 
21,521,463

 

Accrued interest payable
50,039

 
50,039

 

 
50,039

 

Due to customers
187,121

 
187,121

 
187,121

 

 

Derivative instruments
7,063

 
7,063

 

 
7,063

 


 
The methodologies for estimating the fair value of financial assets and liabilities are described in note 21 of the notes to consolidated financial statements included in the 2017 Annual Report.
v3.8.0.1
Subsequent Event
3 Months Ended
Mar. 31, 2018
Subsequent Events [Abstract]  
Subsequent Event
Subsequent Events

On April 25, 2018, the Company acquired $1.5 billion of unsecuritized federally insured student loans from a third-party.  The Company will earn interest income on these loans from the effective date of the transaction, April 1, 2018. In addition, from April 1, 2018 through May 8, 2018 (the filing date of this report), the Company acquired $351.3 million of additional unsecuritized federally insured student loans from third-parties. These loan acquisitions were funded with existing FFELP warehouse facilities, operating cash, and the Company’s unsecured line of credit. Subsequent to March 31, 2018, in anticipation of these loan acquisitions, the Company increased the capacity on both of its FFELP warehouse facilities to a total of $2.3 billion.
v3.8.0.1
Basis of Financial Reporting - Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Financial Reporting
Basis of Financial Reporting

The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of March 31, 2018 and for the three months ended March 31, 2018 and 2017 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2017 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results for the year ending December 31, 2018. The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the "2017 Annual Report").

Accounting Standards Adopted in 2018
Accounting Standards Adopted in 2018

In the first quarter of 2018, the Company adopted the following new accounting guidance:
Revenue Recognition

In May 2014, the Financial Accounting Standards Board ("FASB") issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
The Company adopted the standard effective January 1, 2018, using the full retrospective method, which required it to restate each prior reporting period presented. As a result, the Company has changed its accounting policy for revenue recognition as detailed in note 2, “Summary of Significant Accounting Policies and Practices.”
The most significant impact of the standard relates to identifying the Company's Education Technology, Services, and Payment Processing operating segment as the principal in its payment services transactions. As a result of this change, the Company will present the payment services revenue gross with the direct costs to provide these services presented separately. The majority of the Company's revenue earned in its Asset Generation and Management operating segment, including loan interest and derivative activity, is explicitly excluded from the scope of the new guidance. Other than the payment services transactions discussed above, the Company’s other fee-based operating segments will recognize revenue consistent with historical revenue recognition patterns.
Equity Investments

In January 2016, the FASB issued new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. The guidance requires equity investments with readily determinable fair values to be measured at fair value, with changes in the fair value recognized through net income (other than those equity investments accounted for under the equity method of accounting or those that result in consolidation of the investee). An entity may choose to measure equity investments without readily determinable fair values at fair value or use the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. In addition, the impairment assessment is simplified by requiring a qualitative assessment to identify impairment.

The guidance requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities with readily determinable fair values previously recognized in accumulated other comprehensive income; and along with a related clarifying update, was adopted by the Company as of January 1, 2018. Upon adoption, the Company recorded an immaterial cumulative-effect adjustment to retained earnings, accumulated other comprehensive earnings, and investments and notes receivable. Subsequent to the adoption, the Company is accounting for the majority of its equity investments without readily determinable fair values using the measurement alternative.

Other Comprehensive Income

In February 2018, the FASB issued guidance which allows a reclassification from accumulated other comprehensive earnings to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act, which became effective on January 1, 2018. This guidance is effective for fiscal years beginning after December 15, 2018, but early adoption is permitted in periods for which financial statements have not yet been issued. The Company elected to early adopt this guidance as of January 1, 2018. Upon adoption, the Company recorded an immaterial reclassification between accumulated other comprehensive earnings and retained earnings.

Restricted Cash

In November 2016, the FASB issued accounting guidance related to restricted cash. The new standard requires that the statement of cash flows present the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents, and a reconciliation of such total to amounts on the balance sheet. The Company adopted the standard effective January 1, 2018 using the retrospective transition method.
Revenue Recognition
Communications revenue - Communications revenue is derived principally from internet, television, and telephone services and is billed as a flat fee in advance of providing the service. Revenues for usage-based services, such as access charges billed to other telephone carriers for originating and terminating long-distance calls on the Company's network, are billed in arrears. These are each considered distinct performance obligations. Revenue is recognized monthly for the consideration the Company has a right to invoice. The amount the Company has a right to invoice is an amount that corresponds directly with the value provided to the customer based on the performance completed. The Company recognizes revenue from these services in the period the services are rendered rather than billed. The Company records deferred revenue when revenue is recognized subsequent to invoicing. Earned but unbilled usage-based services are recorded in accounts receivable.
Education technology, services, and payment processing revenue - Education technology, services, and payment processing revenue consists of the following items:

Tuition payment plan services - Tuition payment plan services consideration is determined from individual plan agreements, which are governed by plan service agreements, and includes access to a remote hosted environment and management of payment processing. The management of payment processing is considered a distinct performance obligation when sold with the remote hosted environment. Revenue for each performance obligation is allocated to the distinct service period, the academic school term, and recognized ratably over the service period as customers simultaneously consume and receive benefits.

Education technology and services - Education technology and services consideration is determined from individual contracts with customers and is determined based on the services selected by the customer. Services in K-12 private and faith based schools include (i) assistance with financial needs assessment, (ii) automating administrative processes such as admissions, online applications and enrollment services, scheduling, student billing, attendance, and grade book management, and (iii) professional development and educational instruction services. Revenue for these services is recognized for the consideration the Company has a right to invoice. The amount the Company has a right to invoice is an amount that corresponds directly with the value provided to the customer based on the performance completed. Services also include innovative education-focused technologies, services, and support solutions to help schools with the everyday challenges of collecting and processing commerce data. These services are considered distinct performance obligations. Revenue for each performance obligation is allocated to the distinct service period, typically a month or based on when each transaction is completed, and recognized as control transfers as customers simultaneously consume and receive benefits.

Payment processing - Payment processing consideration is determined from individual contracts with customers and includes electronic transfer and credit card processing, reporting, virtual terminal solutions, and specialized integrations to business software for education and non-education markets. Volume-based revenue from payment processing is allocated and recognized to the distinct service period, based on when each transaction is completed, and recognized as control transfers as customers simultaneously consume and receive benefits.
Revenue Recognition

The Company applies the provisions of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), to its fee-based operating segments. The majority of the Company’s revenue earned in its Asset Generation and Management operating segment, including loan interest and derivative activity, is explicitly excluded from the scope of ASC Topic 606. The Company recognizes revenue under the core principle of ASC Topic 606 to depict the transfer of control of products and services to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. Additional information related to the Company's revenue recognition of specific items is further provided below.

The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment.

Loan servicing and systems revenue - Loan servicing and systems revenue consists of the following items:

Loan servicing revenue - Loan servicing revenue consideration is determined from individual contracts with customers and is calculated monthly based on the dollar value of loans, number of loans, or number of borrowers serviced for each customer. Loan servicing requires a significant level of integration and the individual components are not considered distinct. The Company will perform various services during each distinct service period. Even though the mix and quantity of activities that the Company performs each period may differ, the nature of the promise is substantially the same. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously consume and receive benefits.

Software services revenue - Software services revenue consideration is determined from individual contracts with customers and includes license and maintenance fees associated with loan software products, generally in a remote hosted environment, and computer and software consulting. Usage-based revenue from remote hosted licenses is allocated to and recognized in the distinct service period, typically a month, and recognized as control transfers, and non-refundable up-front revenue is recognized ratably over the contract period as customers simultaneously consume and receive benefits. Loan conversion activities in certain customer contracts are capable of being distinct and accounted for as a separate performance obligation. Revenue allocated to loan conversion activities is recognized at the point in time when the conversion is complete. Computer and software consulting is also capable of being distinct and accounted for as a separate performance obligation. Revenue allocated to computer and software consulting is recognized as services are provided.

Outsourced services revenue - Outsourced services revenue consideration is determined from individual contracts with customers and is calculated monthly based on the volume of services. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously consume and receive benefits.
v3.8.0.1
Basis of Financial Reporting - Basis of Financial Reporting (Tables)
3 Months Ended
Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Impact on Previous Reporting
Adoption of the revenue recognition standard impacted the Company’s previously reported results on the consolidated statements of income as follows:
 
Three months ended March 31, 2017
 
As previously reported
 
Impact of adoption
 
As restated
Education technology, services, and payment processing revenue
$
43,620

 
12,404

 
56,024

 
Cost to provide education technology, services, and payment processing services

 
12,404

 
12,404

(a)

(a)
In addition to the impact of adopting the new revenue recognition standard, as discussed above, the Company reclassed other direct costs to provide education technology, services, and payment processing revenue which were previously reported as part of "other expenses" to "cost to provide education technology, services, and payment processing services."
The Company adopted the standard effective January 1, 2018 using the retrospective transition method. Adoption of this standard impacted the Company's previously reported results on the consolidated statements of cash flows as follows:
 
Three months ended March 31, 2017
 
As previously reported
 
Impact of adoption
 
As restated
Decrease in due to customers
$

 
(26,003
)
 
(26,003
)
Net cash provided by operating activities
73,833

 
(26,003
)
 
47,830

Decrease in restricted cash
193,326

 
(193,326
)
 

Net cash provided by investing activities
1,051,415

 
(193,326
)
 
858,089

v3.8.0.1
Summary of Significant Accounting Policies and Practices (Tables)
3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Disaggregation of Revenue
The following table provides disaggregated revenue by service offering and customer type:
 
Three months ended March 31,
 
2018
 
2017
Internet
$
4,696

 
2,202

Television
2,783

 
1,623

Telephone
1,689

 
1,262

Other
21

 
19

Communications revenue
$
9,189

 
5,106

 
 
 
 
Residential revenue
$
6,747

 
3,351

Business revenue
2,381

 
1,696

Other revenue
61

 
59

Communications revenue
$
9,189

 
5,106

The following table provides disaggregated revenue by service offering:
 
Three months ended March 31,
 
2018
 
2017
Tuition payment plan services
$
23,043

 
21,787

Payment processing
19,926

 
18,945

Education technology and services
16,975

 
15,147

Other
277

 
145

Education technology, services, and payment processing revenue
$
60,221

 
56,024


The following table provides disaggregated revenue by service offering:
 
Three months ended March 31,
 
2018
 
2017
Government servicing - Nelnet
$
39,327

 
39,007

Government servicing - Great Lakes (a)
30,754

 

Private education and consumer loan servicing
13,101

 
5,817

FFELP servicing
7,691

 
4,077

Software services
7,589

 
4,337

 Outsourced services revenue and other
1,679

 
991

Loan servicing and systems revenue
$
100,141

 
54,229


(a)
Great Lakes Educational Loan Services, Inc. ("Great Lakes") was acquired by the Company on February 7, 2018. For additional information about the acquisition, see note 7.
Schedule Of Other Income, By Component
The following table provides the components of "other income" on the consolidated statements of income:
 
Three months ended March 31,
 
2018
 
2017
Realized and unrealized gains on investments, net
$
9,081

 
324

Borrower late fee income
2,983

 
3,319

Investment advisory fees
1,593

 
3,516

Management fee revenue
1,161

 

Peterson's revenue

 
2,836

Other
3,380

 
2,637

Other income
$
18,198

 
12,632

Schedule of Liabilities from Contracts with Customers
The following table provides information about contract liabilities from contracts with customers:
 
As of March 31, 2018
 
As of December 31, 2017
Deferred revenue, which is included in "other liabilities" on the consolidated balance sheets
$
22,715

 
32,276

Activity in the deferred revenue balance is shown below:
 
Three months ended March 31,
 
2018
 
2017
Balance, beginning of period
$
32,276

 
33,141

Deferral of revenue
17,050

 
15,918

Recognition of unearned revenue
(26,802
)
 
(24,878
)
Other
191

 
87

Balance, end of period
$
22,715

 
24,268

v3.8.0.1
Loans Receivable and Allowance for Loan Losses (Tables)
3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans receivable consisted of the following:
 
As of
 
As of
 
March 31, 2018
 
December 31, 2017
Federally insured student loans:
 
 
 
Stafford and other
$
4,363,159

 
4,418,881

Consolidation
17,098,389

 
17,302,725

Total
21,461,548

 
21,721,606

Private education loans
194,310

 
212,160

Consumer loans
77,855

 
62,111

 
21,733,713

 
21,995,877

Loan discount, net of unamortized loan premiums and deferred origination costs
(103,542
)
 
(113,695
)
Non-accretable discount
(12,847
)
 
(13,085
)
Allowance for loan losses:
 
 
 
Federally insured loans
(38,374
)
 
(38,706
)
Private education loans
(12,255
)
 
(12,629
)
Consumer loans
(4,665
)
 
(3,255
)
 
$
21,562,030

 
21,814,507

Allowance for Credit Losses on Financing Receivables
The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of loans. Activity in the allowance for loan losses is shown below.
 
Three months ended March 31, 2018
 
Balance at beginning of period
 
Provision for loan losses
 
Charge-offs
 
Recoveries
 
Other
 
Balance at end of period
Federally insured loans
$
38,706

 
2,000

 
(3,332
)
 

 
1,000

 
38,374

Private education loans
12,629

 

 
(539
)
 
165

 

 
12,255

Consumer loans
3,255

 
2,000

 
(595
)
 
5

 

 
4,665

 
$
54,590

 
4,000

 
(4,466
)
 
170

 
1,000

 
55,294

 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2017
Federally insured loans
$
37,268

 
2,000

 
(2,581
)
 

 

 
36,687

Private education loans
14,574

 
(1,000
)
 
(82
)
 
197

 
150

 
13,839

Consumer loans

 

 

 

 

 

 
$
51,842

 
1,000

 
(2,663
)
 
197

 
150

 
50,526


Financing Receivable Credit Quality Indicators
Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.  The table below shows the Company’s loan delinquency amounts for federally insured and private education loans.
 
As of March 31, 2018
 
As of December 31, 2017
 
As of March 31, 2017
Federally insured loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
1,312,319

 
 
 
$
1,260,394

 
 
 
$
1,604,494

 
 
Loans in forbearance
1,650,913

 
 
 
1,774,405

 
 
 
2,125,344

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
16,368,668

 
88.5
%
 
16,477,004

 
88.2
%
 
17,690,083

 
87.5
%
Loans delinquent 31-60 days
669,490

 
3.6

 
682,586

 
3.7

 
732,433

 
3.6

Loans delinquent 61-90 days
426,696

 
2.3

 
374,534

 
2.0

 
493,876

 
2.4

Loans delinquent 91-120 days
252,659

 
1.4

 
287,922

 
1.5

 
275,711

 
1.4

Loans delinquent 121-270 days
570,538

 
3.1

 
629,480

 
3.4

 
763,030

 
3.8

Loans delinquent 271 days or greater
210,265

 
1.1

 
235,281

 
1.2

 
255,122

 
1.3

Total loans in repayment
18,498,316

 
100.0
%
 
18,686,807

 
100.0
%
 
20,210,255

 
100.0
%
Total federally insured loans
$
21,461,548

 
 

 
$
21,721,606

 
 

 
$
23,940,093

 
 
Private education loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
5,532

 
 
 
$
6,053

 
 
 
$
34,138

 
 
Loans in forbearance
2,574

 
 
 
2,237

 
 
 
3,811

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
178,976

 
96.1
%
 
196,720

 
96.5
%
 
213,081

 
97.4
%
Loans delinquent 31-60 days
1,630

 
0.9

 
1,867

 
0.9

 
1,355

 
0.6

Loans delinquent 61-90 days
1,110

 
0.6

 
1,052

 
0.5

 
1,402

 
0.6

Loans delinquent 91 days or greater
4,488

 
2.4

 
4,231

 
2.1

 
3,029

 
1.4

Total loans in repayment
186,204

 
100.0
%
 
203,870

 
100.0
%
 
218,867

 
100.0
%
Total private education loans
$
194,310

 
 

 
$
212,160

 
 

 
$
256,816

 
 
v3.8.0.1
Bonds and Notes payable (Tables)
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Schedule of Debt
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
As of March 31, 2018
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
20,132,994

 
1.85% - 3.99%
 
4/25/24 - 5/25/66
Bonds and notes based on auction
766,948

 
2.20% - 2.88%
 
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes
20,899,942

 
 
 
 
FFELP warehouse facilities
339,063

 
1.94% / 2.00%
 
11/19/19 / 5/31/20
Variable-rate bonds and notes issued in private education loan asset-backed securitization
66,765

 
3.62%
 
12/26/40
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
76,193

 
3.60% / 5.35%
 
12/26/40 / 12/28/43
Unsecured line of credit
150,000

 
3.20%
 
12/12/21
Unsecured debt - Junior Subordinated Hybrid Securities
20,381

 
5.68%
 
9/15/61
Other borrowings
29,450

 
3.16% - 3.66%
 
3/31/23 - 12/15/45
 
21,581,794

 
 
 
 
Discount on bonds and notes payable and debt issuance costs
(354,445
)
 
 
 
 
Total
$
21,227,349

 
 
 
 
 
As of December 31, 2017
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
20,352,045

 
1.47% - 3.37%
 
8/25/21 - 2/25/66
Bonds and notes based on auction
780,829

 
2.09% - 2.69%
 
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes
21,132,874

 
 
 
 
FFELP warehouse facilities
335,992

 
1.55% / 1.56%
 
11/19/19 / 5/31/20
Variable-rate bonds and notes issued in private education loan asset-backed securitization
74,717

 
3.30%
 
12/26/40
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
82,647

 
3.60% / 5.35%
 
12/26/40 / 12/28/43
Unsecured line of credit
10,000

 
2.98%
 
12/12/21
Unsecured debt - Junior Subordinated Hybrid Securities
20,381

 
5.07%
 
9/15/61
Other borrowings
70,516

 
2.44% - 3.38%
 
1/12/18 - 12/15/45
 
21,727,127

 
 
 
 
Discount on bonds and notes payable and debt issuance costs
(370,554
)
 
 
 
 
Total
$
21,356,573

 
 
 
 
Schedule of Line of Credit Facilities
As of March 31, 2018, the Company had two FFELP warehouse facilities as summarized below.
 
 
NFSLW-I
 
NHELP-II
 
Total
Maximum financing amount
 
$
500,000

 
500,000

 
1,000,000

Amount outstanding
 
49,623

 
289,440

 
339,063

Amount available
 
$
450,377

 
210,560

 
660,937

Expiration of liquidity provisions
 
September 20, 2019

 
May 31, 2018

 
 
Final maturity date
 
November 19, 2019

 
May 31, 2020

 
 
Maximum advance rates
 
92.0 - 98.0%

 
85.0 - 95.0%

 
 
Minimum advance rates
 
84.0 - 90.0%

 
85.0 - 95.0%

 
 
Advanced as equity support
 
$
2,402

 
25,269

 
27,671



Schedule of Asset-Backed Securitization
Asset-Backed Securitizations

The following table summarizes the asset-backed securitization transactions completed during the first three months of 2018.
 
 
NSLT 2018-1
 
Total
 
 
Class A-1 Notes
 
Class A-2 Notes
 
 
Date securities issued
 
3/29/18
 
3/29/18
 
 
Total principal amount
 
$
98,000

 
375,750

 
473,750

Cost of funds
 
1-month LIBOR plus 0.32%
 
1-month LIBOR plus 0.76%
 
 
Final maturity date
 
5/25/66
 
5/25/66
 
 
v3.8.0.1
Derivative Financial Instruments (Tables)
3 Months Ended
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Basis Swap
The following table summarizes the Company’s outstanding basis swaps in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps").
 
 
 
As of March 31,
 
As of December 31,
 
 
2018
 
2017
Maturity
 
Notional amount
 
Notional amount
2018
 
$
1,750,000

 
4,250,000

2019
 
3,500,000

 
3,500,000

2022
 
1,000,000

 
1,000,000

2023
 
750,000

 

2024
 
250,000

 
250,000

2026
 
1,150,000

 
1,150,000

2027
 
375,000

 
375,000

2028
 
325,000

 
325,000

2029
 
100,000

 
100,000

2031
 
300,000

 
300,000

 
 
$
9,500,000

 
11,250,000

Schedule of Interest Rate Swaps, Floor Income Hedge
The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
 
 
As of March 31, 2018
 
As of December 31, 2017
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
2018
 
$
1,250,000

 
1.08
%
 
$
1,350,000

 
1.07
%
2019
 
3,250,000

 
0.97

 
3,250,000

 
0.97

2020
 
1,500,000

 
1.01

 
1,500,000

 
1.01

2023
 
750,000

 
2.28

 
750,000

 
2.28

2024
 
300,000

 
2.28

 
300,000

 
2.28

2025
 
100,000

 
2.32

 
100,000

 
2.32

2027
 
50,000

 
2.32

 
50,000

 
2.32

2028
 
100,000

 
3.03

 

 

 
 
$
7,300,000

 
1.24
%
 
$
7,300,000

 
1.21
%

(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.
Schedule of Interest Rate Swaps, Unsecured Debt Hedges
The Company had the following derivatives outstanding as of March 31, 2018 and December 31, 2017 that are used to effectively convert the variable interest rate on a designated notional amount with respect to the Hybrid Securities to a fixed rate of 7.66%.
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
25,000

 
4.28
%

(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.
Schedule of Derivatives as Reflected on Balance Sheet
The following table summarizes the fair value of the Company’s derivatives as reflected in the consolidated balance sheets:
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of March 31, 2018
 
As of December 31, 2017
 
As of March 31, 2018
 
As of December 31, 2017
Interest rate swap option - floor income hedge
$
1,290

 
543

 

 

Interest rate caps
601

 
275

 

 

Interest rate swaps - hybrid debt hedges

 

 
5,601

 
7,063

Total
$
1,891

 
818

 
5,601

 
7,063

Schedule of Offsetting of Derivative Assets/Liabilities
The following tables include the gross amounts related to the Company's derivative portfolio recognized in the consolidated balance sheets, reconciled to the net amount when excluding derivatives subject to enforceable master netting arrangements and cash collateral received/pledged.
 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative assets
 
Gross amounts of recognized assets presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral received
 
Net asset
Balance as of March 31, 2018
 
$
1,891

 

 

 
1,891

Balance as of December 31, 2017
 
818

 

 

 
818


 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative liabilities
 
Gross amounts of recognized liabilities presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral pledged
 
Net asset (liability)
Balance as of March 31, 2018
 
$
(5,601
)
 

 
7,520

 
1,919

Balance as of December 31, 2017
 
(7,063
)
 

 
8,520

 
1,457


Schedule of Income Statement Impact
The following table summarizes the components of "derivative market value and foreign currency transaction adjustments and derivative settlements, net" included in the consolidated statements of income.
 
Three months ended March 31,
 
2018
 
2017
Settlements:
 

 
 

1:3 basis swaps
$
(1,664
)
 
698

Interest rate swaps - floor income hedges
8,590

 
(120
)
Interest rate swaps - hybrid debt hedges
(160
)
 
(205
)
Cross-currency interest rate swap

 
(1,751
)
Total settlements - income (expense)
6,766

 
(1,378
)
Change in fair value:
 

 
 

1:3 basis swaps
13,297

 
(2,574
)
Interest rate swaps - floor income hedges
44,201

 
4,324

Interest rate swap option - floor income hedge
747

 
(884
)
Interest rate caps
326

 
(522
)
Interest rate swaps - hybrid debt hedges
1,462

 
419

Cross-currency interest rate swap

 
935

Other

 
(460
)
Total change in fair value - income (expense)
60,033

 
1,238

Re-measurement of Euro Notes (foreign currency transaction adjustment)

 
(4,690
)
Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense)
$
66,799

 
(4,830
)
v3.8.0.1
Investments and Notes Receivable (Tables)
3 Months Ended
Mar. 31, 2018
Investments [Abstract]  
Summary Investment Holdings
A summary of the Company's investments and notes receivable follows:
 
As of March 31, 2018
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
Investments (at fair value):
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities - available-for-sale (a)
$
78,203

 
4,558

 
(634
)
(b)
82,127

Equity securities
13,682

 
3,554

 
(151
)
 
17,085

Total investments (at fair value)
$
91,885

 
8,112

 
(785
)
 
99,212

 
 
 
 
 
 
 
 
Other Investments and Notes Receivable (not measured at fair value):
 
 
 
 
Venture capital:
 
 
 
 
 
 
 
Measurement alternative (c)
 
 
 
 
 
 
68,409

Equity method
 
 
 
 
 
 
16,175

Other
 
 
 
 
 
 
783

  Total venture capital
 
 
 
 
 
 
85,367

Real estate:
 
 
 
 
 
 
 
Equity method
 
 
 
 
 
 
18,850

Other
 
 
 
 
 
 
30,005

  Total real estate
 
 
 
 
 
 
48,855

 
 
 
 
 
 
 
 
Notes receivable
 
 
 
 
 
 
16,373

Tax liens and affordable housing
 
 
 
 
 
 
8,619

Total investments and notes receivable (not measured at fair value)
 
 
 
 
 
 
159,214

Total investments and notes receivable
 
 
 
 
 
 
$
258,426


 
As of December 31, 2017
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
Investments (at fair value):
 
 
 
 
 
 
 
Available-for-sale investments:
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities
$
71,943

 
5,056

 
(25
)
 
76,974

Equity securities
1,630

 
2,298

 

 
3,928

Total available-for-sale investments
$
73,573

 
7,354

 
(25
)
 
80,902

 
 
 
 
 
 
 
 
Other Investments and Notes Receivable (not measured at fair value):
 
 
 
 
 
 
 
Venture capital and funds
 
 
 
 
 
 
84,752

Real estate
 
 
 
 
 
 
49,464

Notes receivable
 
 
 
 
 
 
16,393

Tax liens and affordable housing
 
 
 
 
 
 
9,027

Total investments and notes receivable
 
 
 
 
 
 
$
240,538


    
(a)
As of March 31, 2018, the stated maturities of substantially all of the Company's student loan asset-backed and other debt securities classified as available-for-sale were greater than 10 years.

(b)
As of March 31, 2018, the aggregate fair value of available-for-sale investments with unrealized losses was $17.8 million, of which none had been in a continuous unrealized loss position for greater than 12 months. Because the Company currently has the intent and ability to retain these investments for an anticipated recovery in fair value, as of March 31, 2018, the Company considered the decline in market value of its available-for-sale investments to be temporary in nature and did not consider any of its investments other-than-temporarily impaired.

(c)
The Company accounts for the majority of its equity securities without readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer (the measurement alternative method). For the three months ended March 31, 2018, the Company recorded no impairments and upward adjustments of $6.9 million on these investments. The upward adjustments were made as a result of observable price changes.
v3.8.0.1
Business Combination (Tables)
3 Months Ended
Mar. 31, 2018
Business Combinations [Abstract]  
Schedule of Assets Acquired and Liabilities Assumed
Cash and cash equivalents
$
27,399

Accounts receivable
23,708

Property and equipment
36,040

Other assets
14,015

Intangible assets
72,278

Excess cost over fair value of net assets acquired (goodwill)
19,697

Other liabilities
(56,586
)
Net assets acquired
$
136,551

Schedule of Pro Forma Information
The following unaudited pro forma information for the Company has been prepared as if the acquisition of Great Lakes had occurred on January 1, 2017. The information is based on the historical results of the separate companies and may not necessarily be indicative of the results that could have been achieved or of results that may occur in the future. The pro forma adjustments include the impact of depreciation and amortization of property and equipment and intangible assets acquired.

 
Three months ended March 31,
 
2018
 
2017
Loan servicing and systems revenue
$
120,188

 
116,149

 
 
 
 
Net income attributable to Nelnet, Inc.
$
118,029

 
61,421

 
 
 
 
Net income per share - basic and diluted
$
2.88

 
1.45

v3.8.0.1
Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Schedule of Intangible Assets
Intangible assets consist of the following:
 
 
Weighted average remaining useful life as of March 31, 2018 (months)
 
As of March 31, 2018
 
As of December 31, 2017
 
 
Amortizable intangible assets, net:
 
 
 
 
Customer relationships (net of accumulated amortization of $16,766 and $12,715, respectively)
77
 
$
87,275

 
24,168

 
Trade names (net of accumulated amortization of $3,283 and $2,498, respectively)
86
 
13,409

 
9,074

 
Computer software (net of accumulated amortization of $11,381 and $10,013, respectively)
20
 
6,290

 
4,958

 
Covenants not to compete (net of accumulated amortization of $136 and $127, respectively)
74
 
218

 
227

 
Total - amortizable intangible assets, net
75
 
$
107,192

 
38,427

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
As of March 31, 2018, the Company estimates it will record amortization expense as follows:

2018 (April 1 - December 31)
$
22,975

2019
27,373

2020
24,175

2021
14,278

2022
3,723

2023 and thereafter
14,668

 
$
107,192

v3.8.0.1
Goodwill (Tables)
3 Months Ended
Mar. 31, 2018
Goodwill [Abstract]  
Schedule of Goodwill
The change in the carrying amount of goodwill by reportable operating segment was as follows:
 
Loan Servicing and Systems
 
Education Technology, Services, and Payment Processing
 
Communications
 
Asset Generation and Management
 
Corporate and Other Activities
 
Total
Balance as of December 31, 2017
$
8,596

 
67,168

 
21,112

 
41,883

 

 
138,759

Goodwill acquired during the period
19,697

 

 

 

 

 
19,697

Balance as of March 31, 2018
$
28,293


67,168


21,112


41,883




158,456

v3.8.0.1
Property and Equipment (Tables)
3 Months Ended
Mar. 31, 2018
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and equipment consisted of the following:
 
 
 
As of
 
As of
 
Useful life
 
March 31, 2018
 
December 31, 2017
Non-communications:
 
 
 
 
 
Computer equipment and software
1-5 years
 
$
128,304

 
124,708

Building and building improvements
5-39 years
 
46,576

 
24,003

Office furniture and equipment
3-7 years
 
21,474

 
15,210

Leasehold improvements
5-15 years
 
9,177

 
7,759

Transportation equipment
4-10 years
 
4,371

 
3,813

Land
 
3,328

 
2,628

Construction in progress
 
5,728

 
4,127

 
 
 
218,958

 
182,248

Accumulated depreciation - non-communications
 
 
(103,104
)
 
(105,017
)
Non-communications, net property and equipment
 
 
115,854

 
77,231

 
 
 
 
 
 
Communications:
 
 
 
 
 
Network plant and fiber
5-15 years
 
152,054

 
138,122

Customer located property
5-10 years
 
15,565

 
13,767

Central office
5-15 years
 
11,286

 
10,754

Transportation equipment
4-10 years
 
5,923

 
5,759

Computer equipment and software
1-5 years
 
4,598

 
3,790

Other
1-39 years
 
2,631

 
2,516

Land
 
70

 
70

Construction in progress
 
12,170

 
11,620

 
 
 
204,297

 
186,398

Accumulated depreciation - communications
 
 
(20,314
)
 
(15,578
)
Communications, net property and equipment
 
 
183,983

 
170,820

Total property and equipment, net
 
 
$
299,837

 
248,051

v3.8.0.1
Earnings per Common Share (Tables)
3 Months Ended
Mar. 31, 2018
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock.
 
Three months ended March 31,
 
2018
 
2017
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
112,788

 
1,137

 
113,925

 
49,505

 
521

 
50,026

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
40,541,870

 
408,658

 
40,950,528

 
41,851,064

 
440,793

 
42,291,857

Earnings per share - basic and diluted
$
2.78

 
2.78

 
2.78

 
1.18

 
1.18

 
1.18




v3.8.0.1
Segment Reporting (Tables)
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment

See note 15 of the notes to consolidated financial statements included in the 2017 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.
 
Three months ended March 31, 2018
 
Loan Servicing and Systems
 
Education Technology, Services, and Payment Processing
 
Communications
 
Asset
Generation and
Management
 
Corporate and Other Activities
 
Eliminations
 
Total
Total interest income
$
257

 
665

 
1

 
200,334

 
4,751

 
(3,150
)
 
202,857

Interest expense

 

 
2,509

 
134,233

 
1,958

 
(3,150
)
 
135,550

Net interest income
257

 
665

 
(2,508
)
 
66,101

 
2,793

 

 
67,307

Less provision for loan losses

 

 

 
4,000

 

 

 
4,000

Net interest income (loss) after provision for loan losses
257


665

 
(2,508
)
 
62,101

 
2,793

 

 
63,307

Other income:
 

 
 

 
 
 
 

 
 

 
 

 
 

Loan servicing and systems revenue
100,141

 

 

 

 

 

 
100,141

Intersegment servicing revenue
10,771

 

 

 

 

 
(10,771
)
 

Education technology, services, and payment processing revenue

 
60,221

 

 

 

 

 
60,221

Communications revenue

 

 
9,189

 

 

 

 
9,189

Other income
1,292

 

 

 
2,992

 
13,914

 

 
18,198

Gain from debt repurchases

 

 

 
359

 

 

 
359

Derivative settlements, net

 

 

 
6,926

 
(160
)
 

 
6,766

Derivative market value and foreign currency transaction adjustments, net

 

 

 
58,571

 
1,462

 

 
60,033

Total other income
112,204

 
60,221

 
9,189

 
68,848

 
15,216

 
(10,771
)
 
254,907

Cost of services:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost to provide education technology, services, and payment processing services

 
13,683

 

 

 

 

 
13,683

Cost to provide communications services

 

 
3,717

 

 

 

 
3,717

Total cost of services

 
13,683

 
3,717

 

 

 

 
17,400

Operating expenses:
 

 
 

 
 
 
 
 
 

 
 
 
 

Salaries and benefits
58,537

 
19,067

 
4,063

 
382

 
14,594

 

 
96,643

Depreciation and amortization
6,069

 
3,341

 
4,921

 

 
4,126

 

 
18,457

Loan servicing fees

 

 

 
3,136

 

 

 
3,136

Other expenses
14,463

 
4,624

 
2,638

 
848

 
10,845

 

 
33,417

Intersegment expenses, net
13,356

 
2,567

 
605

 
10,865

 
(16,622
)
 
(10,771
)
 

Total operating expenses
92,425

 
29,599

 
12,227

 
15,231

 
12,943

 
(10,771
)
 
151,653

Income (loss) before income taxes
20,036

 
17,604

 
(9,263
)
 
115,718

 
5,066

 

 
149,161

Income tax (expense) benefit (a)
(5,003
)
 
(4,225
)
 
2,223

 
(27,773
)
 
(1,199
)
 

 
(35,976
)
Net income (loss)
15,033

 
13,379

 
(7,040
)
 
87,945

 
3,867

 

 
113,185

  Net loss (income) attributable to noncontrolling interests
808

 

 

 

 
(68
)
 

 
740

Net income (loss) attributable to Nelnet, Inc.
$
15,841

 
13,379

 
(7,040
)
 
87,945

 
3,799

 

 
113,925

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets as of March 31, 2018
$
281,208

 
193,283

 
228,750

 
22,804,734

 
718,251

 
(327,824
)
 
23,898,402


(a)
As a result of the Tax Cuts and Jobs Act, beginning January 1, 2018, income taxes are allocated based on 24% of income before taxes for each individual operating segment. The difference between the consolidated income tax expense and the sum of the taxes calculated for each operating segment, if any, is included in income taxes in Corporate and Other Activities.
 
Three months ended March 31, 2017
 
Loan Servicing and Systems
 
Education Technology, Services, and Payment Processing
 
Communications
 
Asset
Generation and
Management
 
Corporate and Other
Activities
 
Eliminations
 
Total
Total interest income
$
94

 
2

 
1

 
182,326

 
2,761

 
(1,359
)
 
183,824

Interest expense

 

 
712

 
106,751

 
795

 
(1,359
)
 
106,899

Net interest income
94

 
2

 
(711
)
 
75,575

 
1,966

 

 
76,925

Less provision for loan losses

 

 

 
1,000

 

 

 
1,000

Net interest income (loss) after provision for loan losses
94

 
2

 
(711
)
 
74,575

 
1,966

 

 
75,925

Other income:
 

 
 

 
 
 
 

 
 

 
 

 
 

Loan servicing and systems revenue
54,229

 

 

 

 

 

 
54,229

Intersegment servicing revenue
10,323

 

 

 

 

 
(10,323
)
 

Education technology, services, and payment processing revenue

 
56,024

 

 

 

 

 
56,024

Communications revenue

 

 
5,106

 

 

 

 
5,106

Other income

 

 

 
3,342

 
9,290

 

 
12,632

Gain from debt repurchases

 

 

 
540

 
4,440

 

 
4,980

Derivative settlements, net

 

 

 
(1,173
)
 
(205
)
 

 
(1,378
)
Derivative market value and foreign currency transaction adjustments, net

 

 

 
(3,410
)
 
(42
)
 

 
(3,452
)
Total other income
64,552

 
56,024

 
5,106

 
(701
)
 
13,483

 
(10,323
)
 
128,141

Cost of services:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost to provide education technology, services, and payment processing services

 
12,790

 

 

 

 

 
12,790

Cost to provide communications services

 

 
1,954

 

 

 

 
1,954

Total cost of services

 
12,790

 
1,954

 

 

 

 
14,744

Operating expenses:
 

 
 

 
 
 
 

 
 

 
.

 
 

Salaries and benefits
37,992

 
16,652

 
2,979

 
400

 
13,839

 

 
71,863

Depreciation and amortization
549

 
2,391

 
2,135

 

 
3,523

 

 
8,598

Loan servicing fees

 

 

 
6,025

 

 

 
6,025

Other expenses
9,136

 
4,609

 
1,372

 
991

 
10,054

 

 
26,161

Intersegment expenses, net
7,398

 
2,075

 
506

 
10,412

 
(10,068
)
 
(10,323
)
 

Total operating expenses
55,075

 
25,727

 
6,992

 
17,828

 
17,348

 
(10,323
)
 
112,647

Income (loss) before income taxes
9,571

 
17,509

 
(4,551
)
 
56,046

 
(1,899
)
 

 
76,675

Income tax (expense) benefit
(4,555
)
 
(6,653
)
 
1,730

 
(21,297
)
 
2,021

 

 
(28,755
)
Net income (loss)
5,016

 
10,856

 
(2,821
)
 
34,749

 
122

 

 
47,920

  Net loss (income) attributable to noncontrolling interests
2,415

 

 

 

 
(309
)
 

 
2,106

Net income (loss) attributable to Nelnet, Inc.
$
7,431

 
10,856

 
(2,821
)
 
34,749

 
(187
)
 

 
50,026

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets as of March 31, 2017
$
87,115

 
194,809

 
118,842

 
25,325,220

 
682,639

 
(267,405
)
 
26,141,220

v3.8.0.1
Fair Value (Tables)
3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the three months ended March 31, 2018.
 
As of March 31, 2018
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
Investments:
 
 
 
 


Student loan and other asset-backed securities - available-for-sale
$

 
82,020

 
82,020

Equity securities
4,719

 

 
4,719

Equity securities measured at net asset value (a)

 

 
12,366

Debt securities
107

 

 
107

Total investments
4,826

 
82,020

 
99,212

Derivative instruments

 
1,891

 
1,891

Total assets
$
4,826

 
83,911

 
101,103

Liabilities:
 

 
 

 
 

Derivative instruments
$

 
5,601

 
5,601

Total liabilities
$

 
5,601

 
5,601



 
As of December 31, 2017
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
Investments (available-for-sale):
 
 
 
 
 
Student loan and other asset-backed securities
$

 
76,866

 
76,866

Equity securities
3,928

 

 
3,928

Debt securities
108

 

 
108

Total investments (available-for-sale)
4,036

 
76,866

 
80,902

Derivative instruments

 
818

 
818

Total assets
$
4,036

 
77,684

 
81,720

Liabilities:
 
 
 
 
 
Derivative instruments
$

 
7,063

 
7,063

Total liabilities
$

 
7,063

 
7,063


(a)
In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

Fair Value, by Balance Sheet Grouping
The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 
As of March 31, 2018
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Loans receivable
$
22,884,620

 
21,562,030

 

 

 
22,884,620

Cash and cash equivalents
69,286

 
69,286

 
69,286

 

 

Investments (at fair value)
99,212

 
99,212

 
4,826

 
82,020

 

Notes receivable
16,373

 
16,373

 

 
16,373

 

Restricted cash
727,471

 
727,471

 
727,471

 

 

Restricted cash – due to customers
128,515

 
128,515

 
128,515

 

 

Accrued interest receivable
489,395

 
489,395

 

 
489,395

 

Derivative instruments
1,891

 
1,891

 

 
1,891

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
21,475,380

 
21,227,349

 

 
21,475,380

 

Accrued interest payable
54,252

 
54,252

 

 
54,252

 

Due to customers
128,515

 
128,515

 
128,515

 

 

Derivative instruments
5,601

 
5,601

 

 
5,601

 

 
As of December 31, 2017
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Loans receivable
$
23,106,440

 
21,814,507

 

 

 
23,106,440

Cash and cash equivalents
66,752

 
66,752

 
66,752

 

 

Investments (available-for-sale)
80,902

 
80,902

 
4,036

 
76,866

 

Notes receivable
16,393

 
16,393

 

 
16,393

 

Restricted cash
688,193

 
688,193

 
688,193

 

 

Restricted cash – due to customers
187,121

 
187,121

 
187,121

 

 

Accrued interest receivable
430,385

 
430,385

 

 
430,385

 

Derivative instruments
818

 
818

 

 
818

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
21,521,463

 
21,356,573

 

 
21,521,463

 

Accrued interest payable
50,039

 
50,039

 

 
50,039

 

Due to customers
187,121

 
187,121

 
187,121

 

 

Derivative instruments
7,063

 
7,063

 

 
7,063

 

v3.8.0.1
Basis of Financial Reporting - Schedule of Impact on Previous Reporting (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Education technology, services, and payment processing revenue $ 60,221 $ 56,024
Cost to provide education technology, services, and payment processing services   12,404
Scenario, Previously Reported [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Education technology, services, and payment processing revenue   43,620
Cost to provide education technology, services, and payment processing services   0
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Education technology, services, and payment processing revenue   12,404
Cost to provide education technology, services, and payment processing services   $ 12,404
v3.8.0.1
Basis of Financial Reporting - Schedule of Restricted Cash Previous Reporting (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Decrease in due to customers $ (58,606) $ (26,003)
Net cash provided by operating activities 57,952 47,830
Decrease in restricted cash   0
Net cash provided by investing activities $ 102,330 858,089
Scenario, Previously Reported [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Decrease in due to customers   0
Net cash provided by operating activities   73,833
Decrease in restricted cash   193,326
Net cash provided by investing activities   1,051,415
Accounting Standards Update 2016-18 [Member] | Restatement Adjustment [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Decrease in due to customers   (26,003)
Net cash provided by operating activities   (26,003)
Decrease in restricted cash   (193,326)
Net cash provided by investing activities   $ (193,326)
v3.8.0.1
Summary of Significant Accounting Policies and Practices - Schedule of Disaggregation of Revenue By Service Offerings (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Loan Servicing And Systems Revenue [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings $ 100,141 $ 54,229
Government Servicing - Nelnet [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 39,327 39,007
Government Servicing - Great Lakes [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 30,754 0
Private Education And Consumer Loan Servicing [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 13,101 5,817
FFELP Servicing [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 7,691 4,077
Software Services [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 7,589 4,337
Outsourced Services Revenue And Other [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 1,679 991
Education Technology Services And Payment Processing [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 60,221 56,024
Tuition Payment Plan Services [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 23,043 21,787
Payment Processing [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 19,926 18,945
Education Technology And Services [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 16,975 15,147
Other Service Offering [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 277 145
Communication Revenue, Service Offering [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 9,189 5,106
Internet [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 4,696 2,202
Television [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 2,783 1,623
Telephone [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 1,689 1,262
Other Communication Revenue [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 21 19
Communications Revenue, Customer [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 9,189 5,106
Residential Revenue [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 6,747 3,351
Business Revenue [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings 2,381 1,696
Other Customer Revenue [Member]    
Disaggregation of Revenue [Line Items]    
Revenue from service offerings $ 61 $ 59
v3.8.0.1
Summary of Significant Accounting Policies and Practices - Schedule of Other Income by Component (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Realized and unrealized gains on investments, net $ 9,081 $ 324
Borrower late fee income 2,983 3,319
Investment advisory fees 1,593 3,516
Management fee revenue 1,161 0
Peterson's revenue 0 2,836
Other 3,380 2,637
Other income $ 18,198 $ 12,632
v3.8.0.1
Summary of Significant Accounting Policies and Practices - Schedule of Contract Liabilities from Contracts with Customers (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Deferred revenue, which is included in other liabilities on the consolidated balance sheets $ 22,715 $ 32,276 $ 24,268 $ 33,141
v3.8.0.1
Summary of Significant Accounting Policies and Practices - Schedule of Changes in Liabilities from Contracts with Customers (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Contract With Customer Liability [Roll Forward]    
Balance, beginning of period $ 32,276 $ 33,141
Deferral of revenue 17,050 15,918
Recognition of unearned revenue (26,802) (24,878)
Other 191 87
Balance, end of period $ 22,715 $ 24,268
v3.8.0.1
Loans Receivable and Allowance for Loan Losses - Loans Receivable (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Student loans receivable, gross $ 21,733,713 $ 21,995,877    
Loan discount, net of unamortized loan premiums and deferred origination costs (103,542) (113,695)    
Allowance for loan losses (55,294) (54,590) $ (50,526) $ (51,842)
Student loans receivable 21,562,030 21,814,507    
Non-accretable discount [Member]        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loan discount, net of unamortized loan premiums and deferred origination costs (12,847) (13,085)    
Consumer Portfolio Segment, Federally Insured [Member]        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Student loans receivable, gross 21,461,548 21,721,606    
Allowance for loan losses (38,374) (38,706) (36,687) (37,268)
Consumer Portfolio Segment, Federally Insured [Member] | Student Loan, Stafford And Other [Member]        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Student loans receivable, gross 4,363,159 4,418,881    
Consumer Portfolio Segment, Federally Insured [Member] | Student Loan, Consolidation Loan [Member]        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Student loans receivable, gross 17,098,389 17,302,725    
Consumer Portfolio Segment, Private Education Loans [Member]        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Student loans receivable, gross 194,310 212,160    
Allowance for loan losses (12,255) (12,629) (13,839) (14,574)
Consumer Portfolio Segment, Consumer Loans [Member]        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Student loans receivable, gross 77,855 62,111    
Allowance for loan losses $ (4,665) $ (3,255) $ 0 $ 0
v3.8.0.1
Loans Receivable and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Financing Receivable, Allowance for Credit Losses [Roll Forward]    
Balance at beginning of period $ 54,590 $ 51,842
Less provision for loan losses 4,000 1,000
Charge-offs (4,466) (2,663)
Recoveries 170 197
Other 1,000 150
Balance at end of period 55,294 50,526
Consumer Portfolio Segment, Federally Insured [Member]    
Financing Receivable, Allowance for Credit Losses [Roll Forward]    
Balance at beginning of period 38,706 37,268
Less provision for loan losses 2,000 2,000
Charge-offs (3,332) (2,581)
Recoveries 0 0
Other 1,000 0
Balance at end of period 38,374 36,687
Consumer Portfolio Segment, Private Education Loans [Member]    
Financing Receivable, Allowance for Credit Losses [Roll Forward]    
Balance at beginning of period 12,629 14,574
Less provision for loan losses 0 (1,000)
Charge-offs (539) (82)
Recoveries 165 197
Other 0 150
Balance at end of period 12,255 13,839
Consumer Portfolio Segment, Consumer Loans [Member]    
Financing Receivable, Allowance for Credit Losses [Roll Forward]    
Balance at beginning of period 3,255 0
Less provision for loan losses 2,000 0
Charge-offs (595) 0
Recoveries 5 0
Other 0 0
Balance at end of period $ 4,665 $ 0
v3.8.0.1
Loans Receivable and Allowance for Loan Losses - Loan Status and Delinquency (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
Financing Receivable, Recorded Investment [Line Items]      
Total loans $ 21,733,713 $ 21,995,877  
Consumer Portfolio Segment, Federally Insured [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total loans 21,461,548 21,721,606  
Consumer Portfolio Segment, Federally Insured [Member] | Federally insured loans [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Loans in-school/grace/deferment 1,312,319 1,260,394 $ 1,604,494
Loans in forbearance 1,650,913 1,774,405 2,125,344
Total loans 21,461,548 21,721,606 23,940,093
Loans in repayment status:      
Loans current $ 16,368,668 $ 16,477,004 $ 17,690,083
Loans current, percentage 88.50% 88.20% 87.50%
Total loans in repayment $ 18,498,316 $ 18,686,807 $ 20,210,255
Total loans in repayment, percentage 100.00% 100.00% 100.00%
Consumer Portfolio Segment, Federally Insured [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Federally insured loans [Member]      
Loans in repayment status:      
Loans past due $ 669,490 $ 682,586 $ 732,433
Loans past due, percentage 3.60% 3.70% 3.60%
Consumer Portfolio Segment, Federally Insured [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Federally insured loans [Member]      
Loans in repayment status:      
Loans past due $ 426,696 $ 374,534 $ 493,876
Loans past due, percentage 2.30% 2.00% 2.40%
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 91-120 days past due [Member] | Federally insured loans [Member]      
Loans in repayment status:      
Loans past due $ 252,659 $ 287,922 $ 275,711
Loans past due, percentage 1.40% 1.50% 1.40%
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 121-270 days past due [Member] | Federally insured loans [Member]      
Loans in repayment status:      
Loans past due $ 570,538 $ 629,480 $ 763,030
Loans past due, percentage 3.10% 3.40% 3.80%
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 271 days or greater past due [Member] | Federally insured loans [Member]      
Loans in repayment status:      
Loans past due $ 210,265 $ 235,281 $ 255,122
Loans past due, percentage 1.10% 1.20% 1.30%
Consumer Portfolio Segment, Private Education Loans [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total loans $ 194,310 $ 212,160  
Consumer Portfolio Segment, Private Education Loans [Member] | Private education loans [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Loans in-school/grace/deferment 5,532 6,053 $ 34,138
Loans in forbearance 2,574 2,237 3,811
Total loans 194,310 212,160 256,816
Loans in repayment status:      
Loans current $ 178,976 $ 196,720 $ 213,081
Loans current, percentage 96.10% 96.50% 97.40%
Total loans in repayment $ 186,204 $ 203,870 $ 218,867
Total loans in repayment, percentage 100.00% 100.00% 100.00%
Consumer Portfolio Segment, Private Education Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Private education loans [Member]      
Loans in repayment status:      
Loans past due $ 1,630 $ 1,867 $ 1,355
Loans past due, percentage 0.90% 0.90% 0.60%
Consumer Portfolio Segment, Private Education Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Private education loans [Member]      
Loans in repayment status:      
Loans past due $ 1,110 $ 1,052 $ 1,402
Loans past due, percentage 0.60% 0.50% 0.60%
Consumer Portfolio Segment, Private Education Loans [Member] | Financing Receivables, Equal to Greater than 91 Days Past Due [Member] | Private education loans [Member]      
Loans in repayment status:      
Loans past due $ 4,488 $ 4,231 $ 3,029
Loans past due, percentage 2.40% 2.10% 1.40%
v3.8.0.1
Bonds and Notes Payable - Outstanding Debt Obligations (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Debt Instrument [Line Items]    
Bonds and notes payable $ 21,227,349 $ 21,356,573
Discount on bonds and notes payable and debt issuance costs (354,445) (370,554)
Variable-rate bonds and notes [Member] | Private education [Member]    
Debt Instrument [Line Items]    
Bonds and notes payable $ 66,765 74,717
Variable-rate bonds and notes [Member] | Private education [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Interest rate range 3.62%  
Variable-rate bonds and notes [Member] | Private education [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Interest rate range 3.62%  
Warehouse facilities [Member] | FFELP Warehouse Total [Member]    
Debt Instrument [Line Items]    
Bonds and notes payable $ 339,063 $ 335,992
Warehouse facilities [Member] | FFELP Warehouse Total [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Interest rate range 1.94% 1.55%
Warehouse facilities [Member] | FFELP Warehouse Total [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Interest rate range 2.00% 1.56%
Line of Credit [Member]    
Debt Instrument [Line Items]    
Bonds and notes payable $ 150,000 $ 10,000
Line of Credit [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Interest rate range 3.20% 2.98%
Line of Credit [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Interest rate range 3.20% 2.98%
Junior Subordinated Debt [Member]    
Debt Instrument [Line Items]    
Bonds and notes payable $ 20,381 $ 20,381
Junior Subordinated Debt [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Interest rate range 5.68% 5.07%
Junior Subordinated Debt [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Interest rate range 5.68% 5.07%
Other borrowings [Member]    
Debt Instrument [Line Items]    
Bonds and notes payable $ 29,450 $ 70,516
Other borrowings [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Interest rate range 3.16% 2.44%
Other borrowings [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Interest rate range 3.66% 3.38%
Bonds and notes payable, gross [Member]    
Debt Instrument [Line Items]    
Bonds and notes payable $ 21,581,794 $ 21,727,127
Federally insured [Member] | Bonds and notes based on indices [Member]    
Debt Instrument [Line Items]    
Bonds and notes payable $ 20,132,994 $ 20,352,045
Federally insured [Member] | Bonds and notes based on indices [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Interest rate range 1.85% 1.47%
Federally insured [Member] | Bonds and notes based on indices [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Interest rate range 3.99% 3.37%
Federally insured [Member] | Bonds and notes based on auction or remarketing [Member]    
Debt Instrument [Line Items]    
Bonds and notes payable $ 766,948 $ 780,829
Federally insured [Member] | Bonds and notes based on auction or remarketing [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Interest rate range 2.20% 2.09%
Federally insured [Member] | Bonds and notes based on auction or remarketing [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Interest rate range 2.88% 2.69%
Federally insured [Member] | Variable-rate bonds and notes [Member]    
Debt Instrument [Line Items]    
Bonds and notes payable $ 20,899,942 $ 21,132,874
Private education [Member] | Variable-rate bonds and notes [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Interest rate range   3.30%
Private education [Member] | Variable-rate bonds and notes [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Interest rate range   3.30%
Private education [Member] | fixed rate bonds and notes [Member]    
Debt Instrument [Line Items]    
Bonds and notes payable $ 76,193 $ 82,647
Private education [Member] | fixed rate bonds and notes [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Interest rate range 3.60% 3.60%
Private education [Member] | fixed rate bonds and notes [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Interest rate range 5.35% 5.35%
v3.8.0.1
Bonds and Notes Payable - Outstanding Lines of Credit (Details) - FFELP Warehouse Total [Member] - Warehouse facilities [Member]
Mar. 31, 2018
USD ($)
Line of Credit Facility [Line Items]  
Maximum financing amount $ 1,000,000,000
Amount outstanding 339,063,000
Amount available 660,937,000
Advanced as equity support 27,671,000
NFSLW-I Warehouse [Member]  
Line of Credit Facility [Line Items]  
Maximum financing amount 500,000,000
Amount outstanding 49,623,000
Amount available 450,377,000
Advanced as equity support 2,402,000
NHELP-II Warehouse [Member]  
Line of Credit Facility [Line Items]  
Maximum financing amount 500,000,000
Amount outstanding 289,440,000
Amount available 210,560,000
Advanced as equity support $ 25,269,000
Minimum [Member] | NFSLW-I Warehouse [Member]  
Line of Credit Facility [Line Items]  
Minimum advance rates 84.00%
Maximum advance rates 92.00%
Minimum [Member] | NHELP-II Warehouse [Member]  
Line of Credit Facility [Line Items]  
Minimum advance rates 85.00%
Maximum advance rates 85.00%
Maximum [Member] | NFSLW-I Warehouse [Member]  
Line of Credit Facility [Line Items]  
Minimum advance rates 90.00%
Maximum advance rates 98.00%
Maximum [Member] | NHELP-II Warehouse [Member]  
Line of Credit Facility [Line Items]  
Minimum advance rates 95.00%
Maximum advance rates 95.00%
v3.8.0.1
Bonds and Notes Payable - Schedule of Asset-Backed Securitizations (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2018
USD ($)
Debt Instrument [Line Items]  
Total original principal amount $ 473,750
Secured Debt [Member] | NSLT 2018-1 Class A-1 Notes [Member]  
Debt Instrument [Line Items]  
Total original principal amount 98,000
Secured Debt [Member] | NSLT 2018-1 Class A-2 Notes [Member]  
Debt Instrument [Line Items]  
Total original principal amount $ 375,750
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | NSLT 2018-1 Class A-1 Notes [Member]  
Debt Instrument [Line Items]  
Variable interest rate on asset backed security 0.32%
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | NSLT 2018-1 Class A-2 Notes [Member]  
Debt Instrument [Line Items]  
Variable interest rate on asset backed security 0.76%
v3.8.0.1
Bonds and Notes Payable - Narrative (Details) - USD ($)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Debt Instrument [Line Items]    
Gain from debt repurchases $ 359,000 $ 4,980,000
Unsecured Line of Credit [Member]    
Debt Instrument [Line Items]    
Maximum financing amount 350,000,000  
Amount outstanding 150,000,000  
Amount available 200,000,000  
Asset-backed Securities [Member]    
Debt Instrument [Line Items]    
Amount of debt repurchased 12,900,000  
Repurchase price 12,500,000  
Gain from debt repurchases $ 400,000  
Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Amount of debt repurchased   29,700,000
Repurchase price   $ 25,300,000
v3.8.0.1
Derivative Financial Instruments - Schedule of Basis Swap (Details) - 1:3 basis swaps [Member] - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Derivative [Line Items]    
Notional amount $ 9,500,000 $ 11,250,000
Maturity 2018    
Derivative [Line Items]    
Notional amount 1,750,000 4,250,000
Maturity 2019    
Derivative [Line Items]    
Notional amount 3,500,000 3,500,000
Maturity 2022    
Derivative [Line Items]    
Notional amount 1,000,000 1,000,000
Maturity 2023    
Derivative [Line Items]    
Notional amount 750,000  
Maturity 2024    
Derivative [Line Items]    
Notional amount 250,000 250,000
Maturity 2026    
Derivative [Line Items]    
Notional amount 1,150,000 1,150,000
Maturity 2027    
Derivative [Line Items]    
Notional amount 375,000 375,000
Maturity 2028    
Derivative [Line Items]    
Notional amount 325,000 325,000
Maturity 2029    
Derivative [Line Items]    
Notional amount 100,000 100,000
Maturity 2031    
Derivative [Line Items]    
Notional amount $ 300,000 $ 300,000
v3.8.0.1
Derivative Financial Instruments - Narrative (Details)
1 Months Ended 3 Months Ended
Aug. 20, 2014
USD ($)
Jun. 30, 2015
USD ($)
contract
Mar. 31, 2017
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Derivative [Line Items]          
Bonds and notes payable       $ 21,227,349,000 $ 21,356,573,000
1:3 basis swaps [Member]          
Derivative [Line Items]          
Weighted average basis point paid       0.106% 0.125%
Notional amount       $ 9,500,000,000 $ 11,250,000,000
Swaption [Member]          
Derivative [Line Items]          
Payments to enter into derivative instruments $ 9,100,000        
Notional amount       $ 250,000,000  
Fixed interest rate of swap option       3.30%  
Interest Rate Cap [Member]          
Derivative [Line Items]          
Payments to enter into derivative instruments   $ 2,900,000      
Notional amount   $ 275,000,000.0      
Number of interest rate cap contracts purchased | contract   2      
Proceeds to terminate interest rate cap     $ 913,000    
Private Loan Warehouse Total [Member] | Interest Rate Cap [Member]          
Derivative [Line Items]          
Bonds and notes payable   $ 275,000,000      
Interest Rate Cap 1 [Member] | Interest Rate Cap [Member]          
Derivative [Line Items]          
Notional amount   $ 125,000,000.0      
Interest rate cap strike rate   2.50%      
Interest Rate Cap 2 [Member] | Interest Rate Cap [Member]          
Derivative [Line Items]          
Notional amount   $ 150,000,000.0      
Interest rate cap strike rate   4.99%      
2017 Interest Rate Cap [Member] | Interest Rate Cap [Member]          
Derivative [Line Items]          
Payments to enter into derivative instruments     $ 929,000    
Junior Subordinated Debt [Member]          
Derivative [Line Items]          
Bonds and notes payable       $ 20,381,000 20,381,000
Junior Subordinated Debt [Member] | Maturity 2036 [Member] | Unsecured Debt Hedges [Member] | Interest Rate Swap [Member]          
Derivative [Line Items]          
Notional amount       25,000,000 25,000,000
Bonds and notes payable       $ 20,400,000 $ 20,400,000
Weighted average basis spread on variable rate paid on swap       3.375%  
Fixed interest rate on derivatives and debt, net       7.66% 7.66%
v3.8.0.1
Derivative Financial Instruments - Schedule of Interest Rate Swaps, Floor Income Hedge (Details) - Interest rate swaps - floor income hedges [Member] - Interest Rate Swap [Member] - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Derivative [Line Items]    
Notional amount $ 7,300,000 $ 7,300,000
Weighted average fixed rate paid by the Company 1.24% 1.21%
Maturity 2018 [Member]    
Derivative [Line Items]    
Notional amount $ 1,250,000 $ 1,350,000
Weighted average fixed rate paid by the Company 1.08% 1.07%
Maturity 2019 [Member]    
Derivative [Line Items]    
Notional amount $ 3,250,000 $ 3,250,000
Weighted average fixed rate paid by the Company 0.97% 0.97%
Maturity 2020 [Member]    
Derivative [Line Items]    
Notional amount $ 1,500,000 $ 1,500,000
Weighted average fixed rate paid by the Company 1.01% 1.01%
Maturity 2023 [Member]    
Derivative [Line Items]    
Notional amount $ 750,000 $ 750,000
Weighted average fixed rate paid by the Company 2.28% 2.28%
Maturity 2024 [Member]    
Derivative [Line Items]    
Notional amount $ 300,000 $ 300,000
Weighted average fixed rate paid by the Company 2.28% 2.28%
Maturity 2025 [Member]    
Derivative [Line Items]    
Notional amount $ 100,000 $ 100,000
Weighted average fixed rate paid by the Company 2.32% 2.32%
Maturity 2027 [Member]    
Derivative [Line Items]    
Notional amount $ 50,000 $ 50,000
Weighted average fixed rate paid by the Company 2.32% 2.32%
Maturity 2028 [Member]    
Derivative [Line Items]    
Notional amount $ 100,000 $ 0
Weighted average fixed rate paid by the Company 3.03% 0.00%
v3.8.0.1
Derivative Financial Instruments - Schedule of Interest Rate Swaps, Unsecured Debt Hedges (Details) - Junior Subordinated Debt [Member] - Maturity 2036 [Member] - Interest Rate Swap [Member] - Unsecured Debt Hedges [Member] - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Derivative [Line Items]    
Notional amount $ 25,000 $ 25,000
Weighted average fixed rate paid by the Company 4.28% 4.28%
v3.8.0.1
Derivative Financial Instruments - Schedule of Derivatives as Reflected on Balance Sheet (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Derivatives, Fair Value [Line Items]    
Fair value of asset derivatives $ 1,891 $ 818
Fair value of derivative instruments 5,601 7,063
Derivative Financial Instruments, Assets [Member]    
Derivatives, Fair Value [Line Items]    
Fair value of asset derivatives 1,891 818
Derivative Financial Instruments, Assets [Member] | Swaption [Member]    
Derivatives, Fair Value [Line Items]    
Fair value of asset derivatives 1,290 543
Derivative Financial Instruments, Assets [Member] | Interest Rate Cap [Member]    
Derivatives, Fair Value [Line Items]    
Fair value of asset derivatives 601 275
Derivative Financial Instruments, Assets [Member] | Interest rate swaps - hybrid debt hedges [Member]    
Derivatives, Fair Value [Line Items]    
Fair value of asset derivatives 0 0
Derivative Financial Instruments, Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Fair value of derivative instruments 5,601 7,063
Derivative Financial Instruments, Liabilities [Member] | Swaption [Member]    
Derivatives, Fair Value [Line Items]    
Fair value of derivative instruments 0 0
Derivative Financial Instruments, Liabilities [Member] | Interest Rate Cap [Member]    
Derivatives, Fair Value [Line Items]    
Fair value of derivative instruments 0 0
Derivative Financial Instruments, Liabilities [Member] | Interest rate swaps - hybrid debt hedges [Member]    
Derivatives, Fair Value [Line Items]    
Fair value of derivative instruments $ 5,601 $ 7,063
v3.8.0.1
Derivative Financial Instruments - Schedule of Offsetting of Derivative Assets/Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Derivatives, Fair Value [Line Items]    
Net asset $ 1,891 $ 818
Net asset (liability) 1,919 1,457
Derivative Financial Instruments, Assets [Member]    
Derivatives, Fair Value [Line Items]    
Gross amounts of recognized assets presented in the consolidated balance sheets 1,891 818
Derivatives subject to enforceable master netting arrangement 0 0
Cash collateral received 0 0
Derivative Financial Instruments, Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Gross amounts of recognized liabilities presented in the consolidated balance sheets (5,601) (7,063)
Derivatives subject to enforceable master netting arrangement 0 0
Cash collateral pledged $ 7,520 $ 8,520
v3.8.0.1
Derivative Financial Instruments - Schedule of Income Statement Impact (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative settlements, net $ 6,766 $ (1,378)
Other Income [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative settlements, net 6,766 (1,378)
Change in fair value 60,033 1,238
Re-measurement of Euro Notes (foreign currency transaction adjustment) 0 (4,690)
Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) 66,799 (4,830)
1:3 basis swaps [Member] | Other Income [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative settlements, net (1,664) 698
Change in fair value 13,297 (2,574)
Interest rate swaps - floor income hedges [Member] | Other Income [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative settlements, net 8,590 (120)
Change in fair value 44,201 4,324
Interest rate swap option - floor income hedges [Member] | Other Income [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Change in fair value 747 (884)
Interest rate swaps - hybrid debt hedges [Member] | Other Income [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative settlements, net (160) (205)
Change in fair value 1,462 419
Interest Rate Cap [Member] | Other Income [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Change in fair value 326 (522)
Cross-currency interest rate swap [Member] | Other Income [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative settlements, net 0 (1,751)
Change in fair value 0 935
Other Contract [Member] | Other Income [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Change in fair value $ 0 $ (460)
v3.8.0.1
Investments and Notes Receivable (Details) - USD ($)
3 Months Ended
Mar. 31, 2018
Dec. 31, 2017
Student loan asset-backed and other debt securities - available-for-sale    
Amortized cost $ 78,203,000  
Gross unrealized gains 4,558,000  
Gross unrealized losses (634,000)  
Fair value 82,127,000  
Equity securities    
Amortized cost 13,682,000  
Gross unrealized gains 3,554,000  
Gross unrealized losses (151,000)  
Fair value 17,085,000  
Total investments (at fair value)    
Amortized cost 91,885,000  
Gross unrealized gains 8,112,000  
Gross unrealized losses (785,000)  
Fair value 99,212,000  
Other Investments and Notes Receivable (not measured at fair value):    
Other Investments and Notes Receivable (not measured at fair value): 159,214,000  
Available-for-sale investments:    
Total investments and notes receivable 258,426,000 $ 240,538,000
Impairment loss 0  
Upward adjustment 6,900,000  
Investments [Member] | Available-for-sale investments [Member]    
Available-for-sale investments:    
Amortized cost   73,573,000
Gross unrealized gains   7,354,000
Gross unrealized losses   (25,000)
Fair value   80,902,000
Available for sale investments with unrealized losses 17,800,000  
Investments [Member] | Available-for-sale investments [Member] | Student Loan Asset-Backed and Other Debt Securities [Member]    
Available-for-sale investments:    
Amortized cost   71,943,000
Gross unrealized gains   5,056,000
Gross unrealized losses   (25,000)
Fair value   76,974,000
Investments [Member] | Available-for-sale investments [Member] | Equity securities [Member]    
Available-for-sale investments:    
Amortized cost   1,630,000
Gross unrealized gains   2,298,000
Gross unrealized losses   0
Fair value   3,928,000
Other Investments and Notes Receivable (not measured at fair value) [Member] | Venture Capital and Funds [Member]    
Other Investments and Notes Receivable (not measured at fair value):    
Measurement alternative 68,409,000  
Equity method 16,175,000  
Other 783,000  
Other Investments and Notes Receivable (not measured at fair value): 85,367,000 84,752,000
Other Investments and Notes Receivable (not measured at fair value) [Member] | Notes Receivable [Member]    
Other Investments and Notes Receivable (not measured at fair value):    
Other Investments and Notes Receivable (not measured at fair value): 16,373,000 16,393,000
Other Investments and Notes Receivable (not measured at fair value) [Member] | Real Estate Investment [Member]    
Other Investments and Notes Receivable (not measured at fair value):    
Equity method 18,850,000  
Other 30,005,000  
Other Investments and Notes Receivable (not measured at fair value): 48,855,000 49,464,000
Other Investments and Notes Receivable (not measured at fair value) [Member] | Tax liens and affordable housing investments [Member]    
Other Investments and Notes Receivable (not measured at fair value):    
Other Investments and Notes Receivable (not measured at fair value): $ 8,619,000 $ 9,027,000
Student Asset Backed And Other Debt Securities [Member] | Available-for-sale investments [Member]    
Available-for-sale investments:    
Available for sale securities, minimum maturity term 10 years  
v3.8.0.1
Business Combination - Narrative (Details) - USD ($)
$ in Thousands
2 Months Ended
Feb. 07, 2018
Mar. 31, 2018
Dec. 31, 2017
Business Acquisition [Line Items]      
Goodwill   $ 158,456 $ 138,759
Great Lakes Educational Loan Service [Member]      
Business Acquisition [Line Items]      
Percent ownership acquired 100.00%    
Payments to acquire businesses $ 150,000    
Reduction to equity as result of remeasurement of equity interest previously held $ 19,100    
Equity interest previously held 50.00%    
Consideration allocated to assets acquired and liabilities assumed $ 136,551    
Intangible assets acquired $ 72,278    
Weighted average useful life of intangible assets acquired 4 years    
Goodwill $ 19,697    
Acquiree revenue since acquisition   43,500  
Acquiree net income as of acquisition   $ 11,900  
Great Lakes Educational Loan Service [Member] | GreatNet [Member]      
Business Acquisition [Line Items]      
Percent ownership acquired 50.00%    
Noncontrolling interests [Member] | Great Lakes Educational Loan Service [Member]      
Business Acquisition [Line Items]      
Reduction to equity as result of remeasurement of equity interest previously held $ 5,700    
Retained earnings [Member] | Great Lakes Educational Loan Service [Member]      
Business Acquisition [Line Items]      
Reduction to equity as result of remeasurement of equity interest previously held 13,400    
Customer Relationships [Member] | Great Lakes Educational Loan Service [Member]      
Business Acquisition [Line Items]      
Intangible assets acquired $ 67,200    
Weighted average useful life of intangible assets acquired 4 years    
Trade Names [Member] | Great Lakes Educational Loan Service [Member]      
Business Acquisition [Line Items]      
Intangible assets acquired $ 5,100    
Weighted average useful life of intangible assets acquired 7 years    
v3.8.0.1
Business Combination - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Feb. 07, 2018
Dec. 31, 2017
Business Acquisition [Line Items]      
Goodwill $ 158,456   $ 138,759
Great Lakes Educational Loan Service [Member]      
Business Acquisition [Line Items]      
Cash and cash equivalents   $ 27,399  
Accounts receivable   23,708  
Property and equipment   36,040  
Other assets   14,015  
Intangible assets   72,278  
Goodwill   19,697  
Other liabilities   (56,586)  
Net assets acquired   $ 136,551  
v3.8.0.1
Business Combination - Schedule of Pro Forma Information (Details) - Great Lakes Educational Loan Service [Member] - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Business Acquisition [Line Items]    
Loan servicing and systems revenue $ 120,188 $ 116,149
Net income attributable to Nelnet, Inc. $ 118,029 $ 61,421
Net income per share - basic and diluted (in dollars per share) $ 2.88 $ 1.45
v3.8.0.1
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining useful life as of March 31, 2018 (months) 75 months    
Finite-lived intangible assets, net $ 107,192   $ 38,427
Amortization of intangible assets $ 6,200 $ 2,400  
Customer Relationships [Member]      
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining useful life as of March 31, 2018 (months) 77 months    
Finite-lived intangible assets, net $ 87,275   24,168
Accumulated amortization of intangible assets $ 16,766   12,715
Trade Names [Member]      
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining useful life as of March 31, 2018 (months) 86 months    
Finite-lived intangible assets, net $ 13,409   9,074
Accumulated amortization of intangible assets $ 3,283   2,498
Computer Software, Intangible Asset [Member]      
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining useful life as of March 31, 2018 (months) 20 months    
Finite-lived intangible assets, net $ 6,290   4,958
Accumulated amortization of intangible assets $ 11,381   10,013
Covenants not to compete [Member]      
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining useful life as of March 31, 2018 (months) 74 months    
Finite-lived intangible assets, net $ 218   227
Accumulated amortization of intangible assets $ 136   $ 127
v3.8.0.1
Intangible Assets - Amortization Expense (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
2018 (April 1 - December 31) $ 22,975  
2019 27,373  
2020 24,175  
2021 14,278  
2022 3,723  
2023 and thereafter 14,668  
Finite-lived intangible assets, net $ 107,192 $ 38,427
v3.8.0.1
Goodwill (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2018
USD ($)
Goodwill [Roll Forward]  
Balance at beginning of period $ 138,759
Goodwill acquired during the period 19,697
Balance at end of period 158,456
Loan Servicing and Systems [Member]  
Goodwill [Roll Forward]  
Balance at beginning of period 8,596
Goodwill acquired during the period 19,697
Balance at end of period 28,293
Education Technology Services And Payment Processing [Member]  
Goodwill [Roll Forward]  
Balance at beginning of period 67,168
Goodwill acquired during the period 0
Balance at end of period 67,168
Communications [Member]  
Goodwill [Roll Forward]  
Balance at beginning of period 21,112
Goodwill acquired during the period 0
Balance at end of period 21,112
Asset Generation and Management [Member]  
Goodwill [Roll Forward]  
Balance at beginning of period 41,883
Goodwill acquired during the period 0
Balance at end of period 41,883
Corporate and Other Activities [Member]  
Goodwill [Roll Forward]  
Balance at beginning of period 0
Goodwill acquired during the period 0
Balance at end of period $ 0
v3.8.0.1
Property and Equipment (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Property, Plant and Equipment [Line Items]      
Property and equipment, net $ 299,837   $ 248,051
Depreciation 12,200 $ 6,200  
Non-communications [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 218,958   182,248
Accumulated depreciation (103,104)   (105,017)
Property and equipment, net 115,854   77,231
Non-communications [Member] | Computer Equipment and Software [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 128,304   124,708
Non-communications [Member] | Computer Equipment and Software [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 1 year    
Non-communications [Member] | Computer Equipment and Software [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 5 years    
Non-communications [Member] | Building [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 46,576   24,003
Non-communications [Member] | Building [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 5 years    
Non-communications [Member] | Building [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 39 years    
Non-communications [Member] | Furniture and Fixtures [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 21,474   15,210
Non-communications [Member] | Furniture and Fixtures [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 3 years    
Non-communications [Member] | Furniture and Fixtures [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 7 years    
Non-communications [Member] | Leasehold Improvements [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 9,177   7,759
Non-communications [Member] | Leasehold Improvements [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 5 years    
Non-communications [Member] | Leasehold Improvements [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 15 years    
Non-communications [Member] | Transportation Equipment [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 4,371   3,813
Non-communications [Member] | Transportation Equipment [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 4 years    
Non-communications [Member] | Transportation Equipment [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 10 years    
Non-communications [Member] | Land [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 3,328   2,628
Non-communications [Member] | Construction in Progress [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 5,728   4,127
Communications [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 204,297   186,398
Accumulated depreciation (20,314)   (15,578)
Property and equipment, net 183,983   170,820
Communications [Member] | Computer Equipment and Software [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 4,598   3,790
Communications [Member] | Computer Equipment and Software [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 1 year    
Communications [Member] | Computer Equipment and Software [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 5 years    
Communications [Member] | Transportation Equipment [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 5,923   5,759
Communications [Member] | Transportation Equipment [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 4 years    
Communications [Member] | Transportation Equipment [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 10 years    
Communications [Member] | Land [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 70   70
Communications [Member] | Construction in Progress [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 12,170   11,620
Communications [Member] | Network plant and fiber [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 152,054   138,122
Communications [Member] | Network plant and fiber [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 5 years    
Communications [Member] | Network plant and fiber [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 15 years    
Communications [Member] | Customer located property [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 15,565   13,767
Communications [Member] | Customer located property [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 5 years    
Communications [Member] | Customer located property [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 10 years    
Communications [Member] | Central office [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 11,286   10,754
Communications [Member] | Central office [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 5 years    
Communications [Member] | Central office [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 15 years    
Communications [Member] | Other Capitalized Property Plant and Equipment [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 2,631   $ 2,516
Communications [Member] | Other Capitalized Property Plant and Equipment [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 1 year    
Communications [Member] | Other Capitalized Property Plant and Equipment [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Useful life 39 years    
v3.8.0.1
Earnings per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]    
Net income attributable to Nelnet, Inc. $ 113,925 $ 50,026
Weighted average common shares outstanding - basic and diluted (in shares) 40,950,528 42,291,857
Earnings per share - basic and diluted (in dollars per share) $ 2.78 $ 1.18
Common shareholders [Member]    
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]    
Net income attributable to Nelnet, Inc. $ 112,788 $ 49,505
Weighted average common shares outstanding - basic and diluted (in shares) 40,541,870 41,851,064
Earnings per share - basic and diluted (in dollars per share) $ 2.78 $ 1.18
Unvested restricted stock shareholders [Member]    
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]    
Net income attributable to Nelnet, Inc. $ 1,137 $ 521
Weighted average common shares outstanding - basic and diluted (in shares) 408,658 440,793
Earnings per share - basic and diluted (in dollars per share) $ 2.78 $ 1.18
v3.8.0.1
Segment Reporting (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Segment Reporting Information [Line Items]      
Tax Cuts And Jobs Act Of 2017, Segment Income Before Tax Allocation Percentage 24.00%    
Total interest income $ 202,857 $ 183,824  
Interest expense 135,550 106,899  
Net interest income 67,307 76,925  
Less provision for loan losses 4,000 1,000  
Net interest income (loss) after provision for loan losses 63,307 75,925  
Other income:      
Loan servicing and systems revenue 100,141 54,229  
Intersegment servicing revenue 0 0  
Education technology, services, and payment processing revenue 60,221 56,024  
Communications revenue 9,189 5,106  
Other income 18,198 12,632  
Gain from debt repurchases 359 4,980  
Derivative settlements, net 6,766 (1,378)  
Derivative market value and foreign currency transaction adjustments, net 60,033 (3,452)  
Total other income 254,907 128,141  
Cost of services:      
Cost to provide education technology, services, and payment processing services 13,683 12,790  
Cost to provide communications services 3,717 1,954  
Total cost of services 17,400 14,744  
Operating expenses:      
Salaries and benefits 96,643 71,863  
Depreciation and amortization 18,457 8,598  
Loan servicing fees 3,136 6,025  
Other expenses 33,417 26,161  
Intersegment expenses, net 0 0  
Total operating expenses 151,653 112,647  
Income (loss) before income taxes 149,161 76,675  
Income tax (expense) benefit (a) (35,976) (28,755)  
Net income (loss) 113,185 47,920  
Net loss (income) attributable to noncontrolling interests 740 2,106  
Net income (loss) attributable to Nelnet, Inc. 113,925 50,026  
Total assets 23,898,402 26,141,220 $ 23,964,435
Operating Segments [Member] | Loan Servicing and Systems [Member]      
Segment Reporting Information [Line Items]      
Total interest income 257 94  
Interest expense 0 0  
Net interest income 257 94  
Less provision for loan losses 0 0  
Net interest income (loss) after provision for loan losses 257 94  
Other income:      
Loan servicing and systems revenue 100,141 54,229  
Intersegment servicing revenue 10,771 10,323  
Education technology, services, and payment processing revenue 0 0  
Communications revenue 0 0  
Other income 1,292 0  
Gain from debt repurchases 0 0  
Derivative settlements, net 0 0  
Derivative market value and foreign currency transaction adjustments, net 0 0  
Total other income 112,204 64,552  
Cost of services:      
Cost to provide education technology, services, and payment processing services 0 0  
Cost to provide communications services 0 0  
Total cost of services 0 0  
Operating expenses:      
Salaries and benefits 58,537 37,992  
Depreciation and amortization 6,069 549  
Loan servicing fees 0 0  
Other expenses 14,463 9,136  
Intersegment expenses, net 13,356 7,398  
Total operating expenses 92,425 55,075  
Income (loss) before income taxes 20,036 9,571  
Income tax (expense) benefit (a) (5,003) (4,555)  
Net income (loss) 15,033 5,016  
Net loss (income) attributable to noncontrolling interests 808 2,415  
Net income (loss) attributable to Nelnet, Inc. 15,841 7,431  
Total assets 281,208 87,115  
Operating Segments [Member] | Education Technology Services And Payment Processing [Member]      
Segment Reporting Information [Line Items]      
Total interest income 665 2  
Interest expense 0 0  
Net interest income 665 2  
Less provision for loan losses 0 0  
Net interest income (loss) after provision for loan losses 665 2  
Other income:      
Loan servicing and systems revenue 0 0  
Intersegment servicing revenue 0 0  
Education technology, services, and payment processing revenue 60,221 56,024  
Communications revenue 0 0  
Other income 0 0  
Gain from debt repurchases 0 0  
Derivative settlements, net 0 0  
Derivative market value and foreign currency transaction adjustments, net 0 0  
Total other income 60,221 56,024  
Cost of services:      
Cost to provide education technology, services, and payment processing services 13,683 12,790  
Cost to provide communications services 0 0  
Total cost of services 13,683 12,790  
Operating expenses:      
Salaries and benefits 19,067 16,652  
Depreciation and amortization 3,341 2,391  
Loan servicing fees 0 0  
Other expenses 4,624 4,609  
Intersegment expenses, net 2,567 2,075  
Total operating expenses 29,599 25,727  
Income (loss) before income taxes 17,604 17,509  
Income tax (expense) benefit (a) (4,225) (6,653)  
Net income (loss) 13,379 10,856  
Net loss (income) attributable to noncontrolling interests 0 0  
Net income (loss) attributable to Nelnet, Inc. 13,379 10,856  
Total assets 193,283 194,809  
Operating Segments [Member] | Communications [Member]      
Segment Reporting Information [Line Items]      
Total interest income 1 1  
Interest expense 2,509 712  
Net interest income (2,508) (711)  
Less provision for loan losses 0 0  
Net interest income (loss) after provision for loan losses (2,508) (711)  
Other income:      
Loan servicing and systems revenue 0 0  
Intersegment servicing revenue 0 0  
Education technology, services, and payment processing revenue 0 0  
Communications revenue 9,189 5,106  
Other income 0 0  
Gain from debt repurchases 0 0  
Derivative settlements, net 0 0  
Derivative market value and foreign currency transaction adjustments, net 0 0  
Total other income 9,189 5,106  
Cost of services:      
Cost to provide education technology, services, and payment processing services 0 0  
Cost to provide communications services 3,717 1,954  
Total cost of services 3,717 1,954  
Operating expenses:      
Salaries and benefits 4,063 2,979  
Depreciation and amortization 4,921 2,135  
Loan servicing fees 0 0  
Other expenses 2,638 1,372  
Intersegment expenses, net 605 506  
Total operating expenses 12,227 6,992  
Income (loss) before income taxes (9,263) (4,551)  
Income tax (expense) benefit (a) 2,223 1,730  
Net income (loss) (7,040) (2,821)  
Net loss (income) attributable to noncontrolling interests 0 0  
Net income (loss) attributable to Nelnet, Inc. (7,040) (2,821)  
Total assets 228,750 118,842  
Operating Segments [Member] | Asset Generation and Management [Member]      
Segment Reporting Information [Line Items]      
Total interest income 200,334 182,326  
Interest expense 134,233 106,751  
Net interest income 66,101 75,575  
Less provision for loan losses 4,000 1,000  
Net interest income (loss) after provision for loan losses 62,101 74,575  
Other income:      
Loan servicing and systems revenue 0 0  
Intersegment servicing revenue 0 0  
Education technology, services, and payment processing revenue 0 0  
Communications revenue 0 0  
Other income 2,992 3,342  
Gain from debt repurchases 359 540  
Derivative settlements, net 6,926 (1,173)  
Derivative market value and foreign currency transaction adjustments, net 58,571 (3,410)  
Total other income 68,848 (701)  
Cost of services:      
Cost to provide education technology, services, and payment processing services 0 0  
Cost to provide communications services 0 0  
Total cost of services 0 0  
Operating expenses:      
Salaries and benefits 382 400  
Depreciation and amortization 0 0  
Loan servicing fees 3,136 6,025  
Other expenses 848 991  
Intersegment expenses, net 10,865 10,412  
Total operating expenses 15,231 17,828  
Income (loss) before income taxes 115,718 56,046  
Income tax (expense) benefit (a) (27,773) (21,297)  
Net income (loss) 87,945 34,749  
Net loss (income) attributable to noncontrolling interests 0 0  
Net income (loss) attributable to Nelnet, Inc. 87,945 34,749  
Total assets 22,804,734 25,325,220  
Operating Segments [Member] | Corporate and Other Activities [Member]      
Segment Reporting Information [Line Items]      
Total interest income 4,751 2,761  
Interest expense 1,958 795  
Net interest income 2,793 1,966  
Less provision for loan losses 0 0  
Net interest income (loss) after provision for loan losses 2,793 1,966  
Other income:      
Loan servicing and systems revenue 0 0  
Intersegment servicing revenue 0 0  
Education technology, services, and payment processing revenue 0 0  
Communications revenue 0 0  
Other income 13,914 9,290  
Gain from debt repurchases 0 4,440  
Derivative settlements, net (160) (205)  
Derivative market value and foreign currency transaction adjustments, net 1,462 (42)  
Total other income 15,216 13,483  
Cost of services:      
Cost to provide education technology, services, and payment processing services 0 0  
Cost to provide communications services 0 0  
Total cost of services 0 0  
Operating expenses:      
Salaries and benefits 14,594 13,839  
Depreciation and amortization 4,126 3,523  
Loan servicing fees 0 0  
Other expenses 10,845 10,054  
Intersegment expenses, net (16,622) (10,068)  
Total operating expenses 12,943 17,348  
Income (loss) before income taxes 5,066 (1,899)  
Income tax (expense) benefit (a) (1,199) 2,021  
Net income (loss) 3,867 122  
Net loss (income) attributable to noncontrolling interests (68) (309)  
Net income (loss) attributable to Nelnet, Inc. 3,799 (187)  
Total assets 718,251 682,639  
Intersegment Eliminations [Member]      
Segment Reporting Information [Line Items]      
Total interest income (3,150) (1,359)  
Interest expense (3,150) (1,359)  
Net interest income 0 0  
Less provision for loan losses 0 0  
Net interest income (loss) after provision for loan losses 0 0  
Other income:      
Loan servicing and systems revenue 0 0  
Intersegment servicing revenue (10,771) (10,323)  
Education technology, services, and payment processing revenue 0 0  
Communications revenue 0 0  
Other income 0 0  
Gain from debt repurchases 0 0  
Derivative settlements, net 0 0  
Derivative market value and foreign currency transaction adjustments, net 0 0  
Total other income (10,771) (10,323)  
Cost of services:      
Cost to provide education technology, services, and payment processing services 0 0  
Cost to provide communications services 0 0  
Total cost of services 0 0  
Operating expenses:      
Salaries and benefits 0 0  
Depreciation and amortization 0 0  
Loan servicing fees 0 0  
Other expenses 0 0  
Intersegment expenses, net (10,771) (10,323)  
Total operating expenses (10,771) (10,323)  
Income (loss) before income taxes 0 0  
Income tax (expense) benefit (a) 0 0  
Net income (loss) 0 0  
Net loss (income) attributable to noncontrolling interests 0 0  
Net income (loss) attributable to Nelnet, Inc. 0 0  
Total assets $ (327,824) $ (267,405)  
v3.8.0.1
Major Customer (Details) - USD ($)
$ in Millions
2 Months Ended 3 Months Ended
Mar. 31, 2018
Mar. 31, 2018
Mar. 31, 2017
Concentration Risk Dollar Value [Member]      
Concentration Risk [Line Items]      
Loan systems and servicing revenue   $ 39.3 $ 39.0
Great Lakes Educational Loan Service [Member]      
Concentration Risk [Line Items]      
Acquiree revenue since acquisition $ 43.5    
Great Lakes Educational Loan Service [Member] | Concentration Risk Dollar Value [Member]      
Concentration Risk [Line Items]      
Acquiree revenue since acquisition $ 30.8    
v3.8.0.1
Assets and Liabilities that are Measured at Fair Value (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Equity securities [Member]    
Financial assets:    
Equity securities measured at net asset value $ 12,366  
Fair Value, Measurements, Recurring [Member]    
Financial assets:    
Fair value 99,212 $ 80,902
Fair value of derivative instruments 1,891 818
Total assets 101,103 81,720
Financial liabilities:    
Fair value of derivative instruments 5,601 7,063
Total liabilities 5,601 7,063
Fair Value, Measurements, Recurring [Member] | Student loan asset-backed securities [Member]    
Financial assets:    
Fair value 82,020 76,866
Fair Value, Measurements, Recurring [Member] | Equity securities [Member]    
Financial assets:    
Fair value 4,719 3,928
Fair Value, Measurements, Recurring [Member] | Debt securities [Member]    
Financial assets:    
Fair value 107 108
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]    
Financial assets:    
Fair value 4,826 4,036
Fair value of derivative instruments 0 0
Total assets 4,826 4,036
Financial liabilities:    
Fair value of derivative instruments 0 0
Total liabilities 0 0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Student loan asset-backed securities [Member]    
Financial assets:    
Fair value 0 0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Equity securities [Member]    
Financial assets:    
Fair value 4,719 3,928
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Debt securities [Member]    
Financial assets:    
Fair value 107 108
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]    
Financial assets:    
Fair value 82,020 76,866
Fair value of derivative instruments 1,891 818
Total assets 83,911 77,684
Financial liabilities:    
Fair value of derivative instruments 5,601 7,063
Total liabilities 5,601 7,063
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Student loan asset-backed securities [Member]    
Financial assets:    
Fair value 82,020 76,866
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Equity securities [Member]    
Financial assets:    
Fair value 0 0
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Debt securities [Member]    
Financial assets:    
Fair value $ 0 $ 0
v3.8.0.1
Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
Dec. 31, 2016
Financial assets:        
Loans receivable $ 21,562,030 $ 21,814,507    
Cash and cash equivalents 69,286 66,752 $ 108,160 $ 69,654
Restricted cash 727,471 688,193    
Restricted cash – due to customers 128,515 187,121 $ 93,699 $ 119,702
Accrued interest receivable 489,395 430,385    
Derivative instruments 1,891 818    
Financial liabilities:        
Bonds and notes payable 21,227,349 21,356,573    
Accrued interest payable 54,252 50,039    
Due to customers 128,515 187,121    
Derivative instruments 5,601 7,063    
Fair value [Member]        
Financial assets:        
Loans receivable 22,884,620 23,106,440    
Cash and cash equivalents 69,286 66,752    
Investments (at fair value) 99,212 80,902    
Notes receivable 16,373 16,393    
Restricted cash 727,471 688,193    
Restricted cash – due to customers 128,515 187,121    
Accrued interest receivable 489,395 430,385    
Derivative instruments 1,891 818    
Financial liabilities:        
Bonds and notes payable 21,475,380 21,521,463    
Accrued interest payable 54,252 50,039    
Due to customers 128,515 187,121    
Derivative instruments 5,601 7,063    
Fair value [Member] | Level 1 [Member]        
Financial assets:        
Loans receivable 0 0    
Cash and cash equivalents 69,286 66,752    
Investments (at fair value) 4,826 4,036    
Notes receivable 0 0    
Restricted cash 727,471 688,193    
Restricted cash – due to customers 128,515 187,121    
Accrued interest receivable 0 0    
Derivative instruments 0 0    
Financial liabilities:        
Bonds and notes payable 0 0    
Accrued interest payable 0 0    
Due to customers 128,515 187,121    
Derivative instruments 0 0    
Fair value [Member] | Level 2 [Member]        
Financial assets:        
Loans receivable 0 0    
Cash and cash equivalents 0 0    
Investments (at fair value) 82,020 76,866    
Notes receivable 16,373 16,393    
Restricted cash 0 0    
Restricted cash – due to customers 0 0    
Accrued interest receivable 489,395 430,385    
Derivative instruments 1,891 818    
Financial liabilities:        
Bonds and notes payable 21,475,380 21,521,463    
Accrued interest payable 54,252 50,039    
Due to customers 0 0    
Derivative instruments 5,601 7,063    
Fair value [Member] | Level 3 [Member]        
Financial assets:        
Loans receivable 22,884,620 23,106,440    
Cash and cash equivalents 0 0    
Investments (at fair value) 0 0    
Notes receivable 0 0    
Restricted cash 0 0    
Restricted cash – due to customers 0 0    
Accrued interest receivable 0 0    
Derivative instruments 0 0    
Financial liabilities:        
Bonds and notes payable 0 0    
Accrued interest payable 0 0    
Due to customers 0 0    
Derivative instruments 0 0    
Carrying value [Member]        
Financial assets:        
Loans receivable 21,562,030 21,814,507    
Cash and cash equivalents 69,286 66,752    
Investments (at fair value) 99,212 80,902    
Notes receivable 16,373 16,393    
Restricted cash 727,471 688,193    
Restricted cash – due to customers 128,515 187,121    
Accrued interest receivable 489,395 430,385    
Derivative instruments 1,891 818    
Financial liabilities:        
Bonds and notes payable 21,227,349 21,356,573    
Accrued interest payable 54,252 50,039    
Due to customers 128,515 187,121    
Derivative instruments $ 5,601 $ 7,063    
v3.8.0.1
Subsequent Events (Details) - USD ($)
1 Months Ended 3 Months Ended
Apr. 25, 2018
May 08, 2018
Mar. 31, 2018
Mar. 31, 2017
Subsequent Event [Line Items]        
Purchase of financing receivables     $ 1,000,000 $ 150,000
Consumer Portfolio Segment, Federally Insured [Member]        
Subsequent Event [Line Items]        
Purchase of financing receivables     1,000,000 $ 0
Consumer Portfolio Segment, Federally Insured [Member] | Subsequent Event [Member]        
Subsequent Event [Line Items]        
Purchase of financing receivables $ 1,500,000,000 $ 351,300,000    
Warehouse facilities [Member] | FFELP Warehouse Total [Member]        
Subsequent Event [Line Items]        
Maximum financing amount     $ 1,000,000,000  
Warehouse facilities [Member] | FFELP Warehouse Total [Member] | Subsequent Event [Member]        
Subsequent Event [Line Items]        
Maximum financing amount   $ 2,300,000,000.0