NELNET INC, 10-K filed on 2/25/2021
Annual Report
v3.20.4
Cover - USD ($)
12 Months Ended
Dec. 31, 2020
Jan. 31, 2021
Jun. 30, 2020
Document Information [Line Items]      
Document Type 10-K    
Amendment Flag false    
Document Annual Report true    
Document Period End Date Dec. 31, 2020    
Document Transition Report false    
Entity File Number 001-31924    
Entity Registrant Name NELNET, INC    
Entity Central Index Key 0001258602    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Entity Incorporation, State or Country Code NE    
Entity Tax Identification Number 84-0748903    
Entity Address, Address Line One 121 South 13th Street, Suite 100    
Entity Address, City or Town Lincoln,    
Entity Address, State or Province NE    
Entity Address, Postal Zip Code 68508    
City Area Code 402    
Local Phone Number 458-2370    
Title of 12(b) Security Class A Common Stock, Par Value $0.01 per Share    
Trading Symbol NNI    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 918,743,888
Documents Incorporated by Reference Portions of the registrant’s definitive Proxy Statement to be filed for its 2021 Annual Meeting of Shareholders, scheduled to be held May 20, 2021, are incorporated by reference into Part III of this Form 10-K.    
Class A      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   27,195,862  
Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   11,155,571  
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Assets:    
Loans and accrued interest receivable (net of allowance for loan losses of $175,698 and $61,914, respectively) $ 20,185,656 $ 21,402,868
Cash and cash equivalents:    
Cash and cash equivalents - not held at a related party 33,292 13,922
Cash and cash equivalents - held at a related party 87,957 119,984
Total cash and cash equivalents 121,249 133,906
Investments 992,940 247,099
Restricted cash 553,175 650,939
Restricted cash - due to customers 283,971 437,756
Accounts receivable (net of allowance for doubtful accounts of $1,824 and $4,455, respectively) 76,460 115,391
Goodwill 142,092 156,912
Intangible assets, net 75,070 81,532
Property and equipment, net 123,527 348,259
Other assets 92,020 134,308
Total assets 22,646,160 23,708,970
Liabilities:    
Bonds and notes payable 19,320,726 20,529,054
Accrued interest payable 28,701 47,285
Bank deposits 54,633 0
Other liabilities 312,280 303,781
Due to customers 301,471 437,756
Total liabilities 20,017,811 21,317,876
Commitments and contingencies
Nelnet, Inc. shareholders' equity:    
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding 0 0
Common stock:    
Additional paid-in capital 3,794 5,715
Retained earnings 2,621,762 2,377,627
Accumulated other comprehensive earnings 6,102 2,972
Total Nelnet, Inc. shareholders' equity 2,632,042 2,386,712
Noncontrolling interests (3,693) 4,382
Total equity 2,628,349 2,391,094
Total liabilities and equity 22,646,160 23,708,970
Class A    
Common stock:    
Common stock 272 285
Class B    
Common stock:    
Common stock 112 113
Variable Interest Entity, Primary Beneficiary    
Assets:    
Loans and accrued interest receivable (net of allowance for loan losses of $175,698 and $61,914, respectively) 20,132,996 21,399,382
Cash and cash equivalents:    
Restricted cash 499,223 639,847
Liabilities:    
Bonds and notes payable 19,355,375 20,742,798
Other liabilities 83,127 162,494
Common stock:    
Net assets of consolidated education and other lending variable interest entities $ 1,193,717 $ 1,133,937
v3.20.4
Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Allowance for loan losses $ 175,698 $ 61,914
Allowance for doubtful accounts $ 1,824 $ 4,455
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
Class A    
Par value (in dollars per share) $ 0.01 $ 0.01
Shares authorized (in shares) 600,000,000 600,000,000
Shares issued (in shares) 27,193,154 28,458,495
Shares outstanding (in shares) 27,193,154 28,458,495
Class B    
Par value (in dollars per share) $ 0.01 $ 0.01
Shares authorized (in shares) 60,000,000 60,000,000
Shares issued (in shares) 11,155,571 11,271,609
Shares outstanding (in shares) 11,155,571 11,271,609
v3.20.4
Consolidated Statements of Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Interest income:      
Loan interest $ 595,113 $ 914,256 $ 897,666
Investment interest 24,543 34,421 26,600
Total interest income 619,656 948,677 924,266
Interest expense:      
Interest on bonds and notes payable and bank deposits 330,071 699,327 669,906
Net interest income 289,585 249,350 254,360
Less provision for loan losses 63,360 39,000 23,000
Net interest income after provision for loan losses 226,225 210,350 231,360
Other income/expense:      
Other 57,561 47,918 54,805
Gain on sale of loans 33,023 17,261 0
Gain from deconsolidation of ALLO 258,588 0 0
Impairment expense and provision for beneficial interests (24,723) 0 (11,721)
Derivative market value adjustments and derivative settlements, net (24,465) (30,789) 71,085
Total other income/expense 1,110,384 831,245 820,811
Cost of services:      
Cost of services 105,018 102,026 76,492
Operating expenses:      
Salaries and benefits 501,832 463,503 436,179
Depreciation and amortization 118,699 105,049 86,896
Other expenses 160,574 194,272 166,310
Total operating expenses 781,105 762,824 689,385
Income before income taxes 450,486 176,745 286,294
Income tax expense 100,860 35,451 58,770
Net income 349,626 141,294 227,524
Net loss attributable to noncontrolling interests 2,817 509 389
Net income attributable to Nelnet, Inc. $ 352,443 $ 141,803 $ 227,913
Earnings per common share:      
Net income attributable to Nelnet, Inc. shareholders - basic and diluted (in dollars per share) $ 9.02 $ 3.54 $ 5.57
Weighted average common shares outstanding - basic and diluted (in shares) 39,059,588 40,047,402 40,909,022
Loan servicing and systems revenue      
Other income/expense:      
Revenue $ 451,561 $ 455,255 $ 440,027
Education technology services and payment processing services      
Other income/expense:      
Revenue 282,196 277,331 221,962
Cost of services:      
Cost of services 82,206 81,603 59,566
Communications revenue      
Other income/expense:      
Revenue 76,643 64,269 44,653
Cost of services:      
Cost of services $ 22,812 $ 20,423 $ 16,926
v3.20.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement of Comprehensive Income [Abstract]                      
Net income $ 231,606 $ 71,176 $ 86,610 $ (39,765) $ 41,834 $ 33,135 $ 24,678 $ 41,647 $ 349,626 $ 141,294 $ 227,524
Available-for-sale securities:                      
Unrealized holding gains (losses) arising during period, net                 6,637 (1,199) 1,056
Reclassification adjustment for gains recognized in net income, net of losses                 (2,521) 0 (978)
Income tax effect                 (986) 288 (69)
Total other comprehensive income (loss)                 3,130 (911) 9
Comprehensive income                 352,756 140,383 227,533
Comprehensive loss attributable to noncontrolling interests                 2,817 509 389
Comprehensive income attributable to Nelnet, Inc.                 $ 355,573 $ 140,892 $ 227,922
v3.20.4
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Preferred stock shares
Common stock shares
Class A
Common stock shares
Class B
Additional paid-in capital
Retained earnings
Retained earnings
Cumulative Effect, Period of Adoption, Adjustment
Accumulated other comprehensive earnings
Accumulated other comprehensive earnings
Cumulative Effect, Period of Adoption, Adjustment
Noncontrolling interests
Noncontrolling interests
Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2017     0 29,341,517 11,468,587              
Beginning balance at Dec. 31, 2017 $ 2,165,387 $ 1,264 $ 0 $ 293 $ 115 $ 521 $ 2,143,983 $ 2,007 $ 4,617 $ (743) $ 15,858  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Issuance of noncontrolling interests 1,023                   1,023  
Net income (loss) 227,524           227,913       (389)  
Other comprehensive income (loss) 9               9      
Distribution to noncontrolling interests (525)                   (525)  
Cash dividends on Class A and Class B common stock (26,839)           (26,839)          
Issuance of common stock, net of forfeitures (in shares)       316,148                
Issuance of common stock, net of forfeitures 5,174     $ 3   5,171            
Compensation expense for stock based awards 6,194         6,194            
Repurchase of common stock (in shares)       (868,147)                
Repurchase of common stock (45,331)     $ (8)   (11,264) (34,059)          
Conversion of common stock (in shares)       8,946 (8,946)              
Acquisition of noncontrolling interest (19,101)           (13,449)       (5,652)  
Ending balance at Dec. 31, 2018 $ 2,314,779 (6,077) $ 0 $ 288 $ 115 622 2,299,556   3,883   10,315 $ (6,077)
Ending balance (in shares) at Dec. 31, 2018     0 28,798,464 11,459,641              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Accounting Standards Update [Extensible List] us-gaap:AccountingStandardsUpdate201602Member                      
Issuance of noncontrolling interests $ 4,756                   4,756  
Net income (loss) 141,294           141,803       (509)  
Other comprehensive income (loss) (911)               (911)      
Distribution to noncontrolling interests (4,103)                   (4,103)  
Cash dividends on Class A and Class B common stock (29,485)           (29,485)          
Issuance of common stock, net of forfeitures (in shares)       198,272                
Issuance of common stock, net of forfeitures 4,851     $ 2   4,849            
Compensation expense for stock based awards 6,401         6,401            
Repurchase of common stock (in shares)       (726,273)                
Repurchase of common stock (40,411)     $ (7)   (6,157) (34,247)          
Conversion of common stock (in shares)       188,032 (188,032)              
Conversion of common stock       $ 2 $ (2)              
Ending balance at Dec. 31, 2019 $ 2,391,094 $ (18,868) $ 0 $ 285 $ 113 5,715 2,377,627 $ (18,868) 2,972   4,382  
Ending balance (in shares) at Dec. 31, 2019     0 28,458,495 11,271,609              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Accounting Standards Update [Extensible List] us-gaap:AccountingStandardsUpdate201613Member                      
Issuance of noncontrolling interests $ 219,265                   219,265  
Net income (loss) 349,626           352,443       (2,817)  
Other comprehensive income (loss) 3,130               3,130      
Distribution to noncontrolling interests (16,123)                   (16,123)  
Cash dividends on Class A and Class B common stock (31,778)           (31,778)          
Issuance of common stock, net of forfeitures (in shares)       213,015                
Issuance of common stock, net of forfeitures 5,628     $ 2   5,626            
Compensation expense for stock based awards 7,290         7,290            
Repurchase of common stock (in shares)       (1,594,394)                
Repurchase of common stock (73,358)     $ (16)   (14,837) (58,505)          
Conversion of common stock (in shares)       116,038 (116,038)              
Conversion of common stock       $ 1 $ (1)              
Acquisition of noncontrolling interest (600)           (375)       (225)  
Deconsolidation of noncontrolling interest - ALLO 208,175                   208,175  
Stockholders' Equity, Other 1,218           1,218          
Ending balance at Dec. 31, 2020 $ 2,628,349   $ 0 $ 272 $ 112 $ 3,794 $ 2,621,762   $ 6,102   $ (3,693)  
Ending balance (in shares) at Dec. 31, 2020     0 27,193,154 11,155,571              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Accounting Standards Update [Extensible List] us-gaap:AccountingStandardsUpdate201613Member                      
v3.20.4
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Class A      
Cash dividend on Class A and Class B common stock (in dollars per share) $ 0.82 $ 0.74 $ 0.66
Class B      
Cash dividend on Class A and Class B common stock (in dollars per share) $ 0.82 $ 0.74 $ 0.66
v3.20.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement of Cash Flows [Abstract]      
Net income attributable to Nelnet, Inc. $ 352,443 $ 141,803 $ 227,913
Net loss attributable to noncontrolling interests (2,817) (509) (389)
Net income 349,626 141,294 227,524
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs 198,473 192,662 184,682
Loan discount accretion (35,285) (35,824) (40,800)
Provision for loan losses 63,360 39,000 23,000
Derivative market value adjustments 28,144 76,195 (1,014)
(Payments to) proceeds from termination of derivative instruments, net 0 (12,530) 10,283
(Gain from) loss on repurchases and extinguishment of debt, net (1,924) 16,553 (359)
(Payments to) proceeds from clearinghouse - initial and variation margin, net (26,747) (70,685) 40,382
Gain from deconsolidation of ALLO (287,579) 0 0
Gain from sale of loans (33,023) (17,261) 0
Gain from investments, net (14,055) (3,095) (8,139)
Deferred income tax expense (benefit) 7,974 (7,265) 10,981
Non-cash compensation expense 16,739 6,781 6,539
Impairment expense and provision for beneficial interests 24,723 0 11,721
Other 186 584 (2,551)
Increase in loan and investment accrued interest receivable (61,090) (54,586) (248,869)
Decrease (increase) in accounts receivable 40,880 (55,949) 3,059
Decrease (increase) in other assets, net 59,182 (19,858) (4,069)
Decrease in the carrying amount of ROU asset 11,594 8,793 0
(Decrease) increase in accrued interest payable (18,584) (14,394) 11,640
Increase (decrease) in other liabilities 35,907 49,100 (12,506)
Decrease in the carrying amount of lease liability (9,401) (8,678) 0
(Decrease) increase in due to customers (136,285) 68,078 59,388
Net cash provided by operating activities 212,815 298,915 270,892
Cash flows from investing activities, net of acquisitions:      
Purchases of loans (1,459,696) (1,906,669) (3,847,553)
Purchases of loans from a related party (147,539) (101,538) (74,698)
Net proceeds from loan repayments, claims, and capitalized interest 2,644,347 3,462,391 3,322,783
Proceeds from sale of loans 136,126 196,564 23,712
Purchases of available-for-sale securities (471,510) (1,010) (46,424)
Proceeds from sales of available-for-sale securities 173,784 105 71,415
Proceeds from beneficial interest in loan securitizations 44,213 6,593 0
Purchases of other investments (168,216) (103,250) (67,040)
Proceeds from other investments 13,011 63,879 23,039
Purchases of property and equipment (113,312) (92,499) (125,023)
Business acquisitions, net of cash and restricted cash acquired (29,989) 0 (12,562)
Net cash provided by (used in) investing activities 621,219 1,524,566 (732,351)
Cash flows from financing activities:      
Payments on bonds and notes payable (3,129,485) (4,698,878) (3,113,503)
Proceeds from issuance of bonds and notes payable 1,884,689 2,997,972 3,922,962
Payments of debt issuance costs (8,674) (14,406) (13,808)
Payments to extinguish debt 0 (14,030) 0
Increase in bank deposits, net 54,633 0 0
Dividends paid (31,778) (29,485) (26,839)
Repurchases of common stock (73,358) (40,411) (45,331)
Proceeds from issuance of common stock 1,653 1,552 1,359
Acquisition of noncontrolling interest (600) 0 (13,449)
Issuance of noncontrolling interests 205,768 4,650 918
Distribution to noncontrolling interests (1,088) (235) (525)
Net cash (used in) provided by financing activities (1,098,240) (1,793,271) 711,784
Net increase (decrease) in cash, cash equivalents and restricted cash (264,206) 30,210 250,325
Cash, cash equivalents, and restricted cash, beginning of year 1,222,601 1,192,391 942,066
Cash, cash equivalents, and restricted cash, end of year 958,395 1,222,601 1,192,391
Supplemental disclosures of cash flow information:      
Cash disbursements made for interest 301,570 657,436 591,394
Cash disbursements made for income taxes, net of refunds and credits [1] 29,685 17,672 473
Cash disbursements made for operating leases 11,488 9,966 0
Noncash operating, investing, and financing activity:      
ROU assets obtained in exchange for lease obligations 4,282 8,731 0
Receipt of beneficial interest in consumer loan securitizations 52,501 39,780 0
Distribution to noncontrolling interest 15,035 3,868 0
Cash and cash equivalents:      
Cash, cash equivalents, and restricted cash $ 1,222,601 $ 1,192,391 $ 942,066
[1] For 2020, 2019, and 2018 the Company utilized $53.9 million, $31.8 million, and $14.7 million of federal and state tax credits, respectively, related primarily to renewable energy.
v3.20.4
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement of Cash Flows [Abstract]      
Tax credit utilized in period $ 53.9 $ 31.8 $ 14.7
v3.20.4
Description of Business
12 Months Ended
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business
Nelnet, Inc. and its subsidiaries (“Nelnet” or the “Company”) is a diverse company with a purpose to serve others and a vision to make customers' dreams possible by delivering customer focused products and services. The largest operating businesses engage in loan servicing and education technology, services, and payment processing, and the Company also has a significant investment in communications. A significant portion of the Company's revenue is net interest income earned on a portfolio of federally insured student loans. The Company also makes investments to further diversify the Company both within and outside of its historical core education-related businesses, including, but not limited to, investments in real estate, early-stage and emerging growth companies, and renewable energy. Substantially all revenue from external customers is earned, and all long-lived assets are located, in the United States.
The Company was formed as a Nebraska corporation in 1978 to service federal student loans for two local banks. The Company built on this initial foundation as a servicer to become a leading originator, holder, and servicer of federal student loans, principally consisting of loans originated under the Federal Family Education Loan Program (“FFELP” or “FFEL Program”) of the U.S. Department of Education (the “Department”).
The Health Care and Education Reconciliation Act of 2010 (the “Reconciliation Act of 2010”) discontinued new loan originations under the FFEL Program, effective July 1, 2010, and requires that all new federal student loan originations be made directly by the Department through the Federal Direct Loan Program. This law does not alter or affect the terms and conditions of existing FFELP loans. As a result of this law, the Company no longer originates new FFELP loans. To reduce its reliance on interest income on student loans, the Company has expanded its services and products. This expansion has been accomplished through internal growth and innovation as well as business acquisitions.
The Company's reportable operating segments include:
Loan Servicing and Systems (“LSS”)
Education Technology, Services, and Payment Processing (“ETS&PP”)
Communications
Asset Generation and Management (“AGM”)
Nelnet Bank
A description of each reportable operating segment is included below. See note 15 for additional information on the Company's segment reporting.
Loan Servicing and Systems
The primary service offerings of the Loan Servicing and Systems operating segment include:
Servicing federally-owned student loans for the Department of Education
Servicing FFELP loans
Originating and servicing private education and consumer loans
Backup servicing for FFELP, private education and consumer loans
Providing student loan servicing software and other information technology products and services
Customer acquisition, management services, and backup servicing for community solar developers
Providing outsourced services including call center, processing, and marketing services
LSS provides for the servicing of the Company's student loan portfolio and the portfolios of third parties. The loan servicing activities include loan conversion activities, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliations, and claim processing. These activities are performed internally for the Company's portfolio in addition to generating external fee revenue when performed for third-party clients. In addition, LSS provides backup servicing to third-parties, which allows a transfer of the customer’s servicing volume to the Company’s platform and becoming a full servicing customer if their existing servicer cannot perform their duties.
On February 7, 2018, NDS acquired Great Lakes Educational Loan Services, Inc. (“Great Lakes”). See note 8 for additional information related to this acquisition. Nelnet Servicing, LLC, (“Nelnet Servicing”), a subsidiary of the Company, and Great Lakes are two of four large private sector companies (referred to as Title IV Additional Servicers, or “TIVAS”) awarded a student loan servicing contract by the Department to provide additional servicing capacity for loans owned by the Department.
This segment also provides student loan servicing software, which is used internally and licensed to third-party student loan holders and servicers. These software systems have been adapted so that they can be offered as hosted servicing software solutions usable by third parties to service various types of student loans, including Federal Direct Loan Program and FFEL Program loans.
This segment also provides business process outsourcing primarily specializing in contact center management. The contact center solutions and services include taking inbound calls, helping with outreach campaigns and sales, interacting with customers through multi-channels, and processing and technology services.
Education Technology, Services, and Payment Processing
The Education Technology, Services, and Payment Processing segment (known as Nelnet Business Solutions (“NBS”)) provides service and technology to administrators, teachers, students, and families of K-12 schools and higher education institutions. The Company's payment processing services and technologies also serve customers outside of education.
In the K-12 market, the Company (known as FACTS) offers (i) financial management, including tuition payment plans, financial needs assessment (grant and aid), incidental billing, advanced accounting, and payment forms; (ii) school administration solutions, including school information system software that automates the flow of information between school administrators, teachers, and parents and includes administrative processes such as admissions, enrollment, scheduling, cafeteria management, attendance, and grade book management; (iii) advancement (giving management), including a comprehensive donation platform that streamlines donor communications, organizes donor information, and provides access to data analysis and reporting; (iv) enrollment and communications, including website design and cost effective admissions software; (v) professional development and educational instruction services; and (vi) innovative technology products that aid in teacher and student evaluations. In the higher education market, the Company (known as Nelnet Campus Commerce) offers solutions including (i) tuition payment plans and (ii) payment technology and processing.
Outside of the education market, the Company also offers technology and payment services including electronic transfer and credit card processing, reporting, billing and invoicing, mobile and virtual terminal solutions, and specialized integrations to business software. In addition, this operating segment offers mobile first technology focused on increasing engagement, online giving, and communication for church and not-for-profit customers. Additionally, the Company may earn revenue for payment processing fees when families make tuition payments.
Communications
ALLO Communications LLC (“ALLO”) provides pure fiber optic service to homes and businesses for internet, television, and telephone services. ALLO derives its revenue primarily from the sale of communication services to residential, governmental, and business customers in Nebraska and Colorado. Internet and television services include revenue from residential and business customers for subscriptions to ALLO's data and video products. ALLO data services provide high-speed internet access over ALLO's all-fiber network at various symmetrical speeds of up to 1 gigabit per second for residential customers and is capable of providing symmetrical speeds of over 1 gigabit per second for business customers. Telephone services include local and long distance telephone service, hosted PBX services, and other services.
On December 21, 2020 the Company deconsolidated ALLO from the Company’s consolidated financial statements due to ALLO’s recapitalization. The recapitalization of ALLO is not considered a strategic shift in the Company’s involvement with ALLO and ALLO’s results of operations, prior to deconsolidation, are presented by the Company as a reportable operating segment. See note 2, “Recent Developments - ALLO Recapitalization,” for a description of this transaction and the Company’s continued involvement.
Asset Generation and Management
The Company's Asset Generation and Management operating segment includes the acquisition, management, and ownership of the Company's loan assets (excluding loan assets held by Nelnet Bank). Substantially all loan assets included in this segment are student loans originated under the FFEL Program, including the Stafford Loan Program, the PLUS Loan program, and loans that reflect the consolidation into a single loan of certain previously separate borrower obligations (“Consolidation” loans). AGM also acquires private education and consumer loans. AGM generates a substantial portion of its earnings from the spread, referred to as the Company's loan spread, between the yield it receives on its loan portfolio and the associated costs to finance such portfolio. The loan assets are held in a series of lending subsidiaries and associated securitization trusts designed specifically for this purpose. In addition to the loan spread earned on its portfolio, all costs and activity associated with managing the portfolio, such as servicing of the assets and debt maintenance, are included in this segment.
Nelnet Bank
On November 2, 2020, the Company obtained final approval from the Federal Deposit Insurance Corporation ("FDIC") for federal deposit insurance and for a bank charter from the Utah Department of Financial Institutions ("UDFI") in connection with the establishment of Nelnet Bank, and Nelnet Bank launched operations. Nelnet Bank operates as an internet Utah-chartered industrial bank franchise focused on the private education loan marketplace, with a home office in Salt Lake City, Utah.
Corporate and Other Activities
Other business activities and operating segments that are not reportable are combined and included in Corporate and Other Activities. Corporate and Other Activities include the following items:
The operating results of Whitetail Rock Capital Management, LLC (“WRCM”), the Company's SEC-registered investment advisor subsidiary
Income earned on certain investment activities, including renewable energy (solar) and real estate
Interest expense incurred on unsecured and certain other corporate related debt transactions
Other product and service offerings that are not considered reportable operating segments
Corporate and Other Activities also include certain corporate activities and overhead functions related to executive management, internal audit, human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services.
v3.20.4
Recent Developments - ALLO Recapitalization
12 Months Ended
Dec. 31, 2020
Restructuring and Related Activities [Abstract]  
Recent Developments - ALLO Recapitalization Recent Developments - ALLO Recapitalization
On October 1, 2020, the Company entered into various agreements with SDC Allo Holdings, LLC (“SDC”), a third party global digital infrastructure investor, and ALLO, then a majority owned communications subsidiary of the Company, for various transactions contemplated by the parties in connection with a recapitalization and additional funding for ALLO.
The agreements provided for a series of interrelated transactions, whereby on October 15, 2020, ALLO received proceeds of $197.0 million from SDC as the purchase price for the issuance of non-voting preferred membership units of ALLO, and redeemed $160.0 million of non-voting preferred membership units of ALLO held by the Company. On December 21, 2020, the non-voting preferred membership units of ALLO held by SDC automatically converted into voting membership units of ALLO pursuant to the terms of the agreements upon the receipt on December 21, 2020 of the required approvals from applicable regulatory authorities. As a result of such conversion, SDC, the Company, and members of ALLO’s management own approximately 48 percent, 45 percent, and 7 percent, respectively, of the outstanding voting membership interests of ALLO, and the Company deconsolidated ALLO from the Company’s consolidated financial statements.
Upon the deconsolidation of ALLO, the Company recorded its 45 percent voting membership interests in ALLO at fair value, and accounts for such investment under the Hypothetical Liquidation at Book Value (“HLBV”) method of accounting. In addition, the Company recorded its remaining non-voting preferred membership units in ALLO at fair value, and accounts for such investment as a separate equity investment. As a result of the deconsolidation of ALLO, the Company recognized a gain of $258.6 million in the fourth quarter of 2020 as summarized below.
As of
December 21, 2020
Voting interest/equity method investment - recorded at fair value$132,960 
Preferred membership interest investment - recorded at fair value228,530 
Less: ALLO assets deconsolidated:
Cash and cash equivalents – not held at a related party(299)
Cash and cash equivalents – held at a related party(28,692)
Accounts receivable(4,138)
Goodwill(21,112)
Intangible assets(6,083)
Property and equipment, net(245,295)
Other assets(29,643)
Other liabilities24,185 
Noncontrolling interests208,175 
Gain recognized upon deconsolidation of ALLO$258,588 

The agreements between the Company, SDC, and ALLO provide that they will use commercially reasonable efforts (which expressly excludes requiring ALLO to raise any additional equity financing or sell any assets) to cause ALLO to redeem, on or before April 2024, the remaining preferred membership units of ALLO held by the Company, plus the amount of accrued and unpaid preferred return on such units. As of December 31, 2020, the outstanding preferred membership units of ALLO held by the Company was $228.9 million. The preferred membership units earn a preferred annual return of 6.25 percent.
The impact to the Company’s 2020 operating results as a result of the ALLO recapitalization is summarized below:

Gain from deconsolidation$258,588 
Compensation expense (note 1)(9,298)
Obligation to SDC (note 2)(2,339)
$246,951 

Note 1: On October 1, 2020 (prior to the deconsolidation of ALLO), ALLO recognized compensation expense related to the modification of certain equity awards previously granted to members of ALLO’s management.
Note 2:    As part of the ALLO recapitalization transaction, the Company and SDC entered into an agreement, in which the Company has a contingent payment obligation to pay SDC a contingent payment amount of $25.0 million to $35.0 million in the event the Company disposes of its voting membership units of ALLO that it holds and realizes from such disposition certain targeted return levels. The Company recognized the estimated fair value of the contingent payment as of December 31, 2020 to be $2.3 million, which is included in “other liabilities” on the consolidated balance sheet.
v3.20.4
Summary of Significant Accounting Policies and Practices
12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies and Practices Summary of Significant Accounting Policies and Practices
Consolidation
The consolidated financial statements include the accounts of Nelnet, Inc. and its consolidated subsidiaries. In addition, the accounts of all variable interest entities (“VIEs”) of which the Company has determined that it is the primary beneficiary are included in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation.
Variable Interest Entities
The Company assesses its partnerships and joint ventures to determine if the entity meets the qualifications of a VIE. The Company performs a qualitative assessment of each VIE to determine if it is the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the
VIE. The Company examines specific criteria and uses judgment when determining whether an entity is a VIE and whether it is the primary beneficiary. The Company performs this review initially at the time it enters into a partnership or joint venture agreement and reassess upon reconsideration events.
VIEs - Consolidated
The Company is required to consolidate VIEs in which it has determined it is the primary beneficiary.
The Company's education and other lending subsidiaries are engaged in the securitization of finance assets. These lending subsidiaries hold beneficial interests in eligible loans, subject to creditors with specific interests. The liabilities of the Company's lending subsidiaries are not the direct obligations of Nelnet, Inc. or any of its other subsidiaries. Each lending subsidiary is structured to be bankruptcy remote, meaning that it should not be consolidated in the event of bankruptcy of the parent company or any other subsidiary. The Company is generally the administrator and master servicer of the securitized assets held in its lending subsidiaries and owns the residual interest of the securitization trusts. For accounting purposes, the transfers of loans to the securitization trusts do not qualify as sales. Accordingly, all the financial activities and related assets and liabilities, including debt, of the securitizations are reflected in the Company's consolidated financial statements and are summarized as supplemental information on the balance sheet.
VIEs - Not consolidated
The Company is not required to consolidate VIEs in which it has determined it is not the primary beneficiary.
The Company makes investments in entities that promote renewable energy sources (solar). The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These investments are included in "investments" on the consolidated balance sheets and accounted for under the HLBV method of accounting. The carrying value of these investments are reduced by tax credits earned when the solar project is placed in service. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are included in “other liabilities” on the consolidated balance sheet. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment, unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. The tax credit recapture period ratably decreases over five years from when the project is placed in service. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the energy-producing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits.
The following table provides a summary of solar investment VIEs that the Company has not consolidated:
As of December 31,
20202019
Investment carrying amount$(30,373)7,562 
Tax credits subject to recapture117,740 67,069 
Unfunded capital and other commitments17,462 14,006 
Maximum exposure to loss (a)$104,829 88,637 
(a)    Amounts include $15.6 million and $3.0 million as of December 31, 2020 and 2019, respectively, syndicated to other investors in certain solar projects.
As of December 31, 2020, the Company owned 45 percent of the economic rights of ALLO Communications LLC and has a disproportional 43 percent of the voting rights related to all operating decisions for ALLO's business. See note 1, “Description of Business,” for a description of ALLO, including the primary services offered. See note 2, “Recent Developments - ALLO Recapitalization,” for disclosure of ALLO’s recapitalization and the Company’s recognition of its voting interest/equity method and non-voting preferred membership investments, which is the Company’s maximum exposure to loss.
Accounting Standard Adopted in 2020
In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments – Credit Losses (“ASC 326”), which replaces the incurred loss methodology with an expected loss methodology that is referred to as the
current expected credit loss ("CECL") methodology. Since its original issuance in 2016, the FASB has issued several updates to the original ASU.
The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for financial assets measured at amortized cost at the time the financial asset is originated or acquired, including, for the Company, loans receivable, accounts receivable, and held-to-maturity beneficial interests in loan securitizations. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. For available-for-sale debt securities where fair value is less than amortized cost, credit-related impairment, if any, is recognized through an allowance for credit losses and adjusted each period for changes in credit risk.
On January 1, 2020, the Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 (recognizing estimated credit losses expected to occur over the asset's remaining life) while prior period amounts continue to be reported in accordance with previously applicable GAAP (recognizing estimated credit losses using an incurred loss model); therefore, the comparative information for 2019 is not comparable to the information presented for 2020. Adoption of the new guidance primarily impacted the allowance for loan losses related to the Company's loan portfolio. Upon adoption, the Company recorded an increase to the allowance for loan losses of $91.0 million, which included a reclassification of the non-accretable discount balance and premiums related to loans purchased with evidence of credit deterioration, and decreased retained earnings, net of tax, by $18.9 million. The following table illustrates the impact of the adoption of ASC 326.
Balances at
December 31, 2019
Impact of ASC 326 adoptionBalances at
January 1, 2020
Assets
Loans and accrued interest receivable, net of allowance
Loans receivable$20,798,719 — 20,798,719 
Accrued interest receivable733,497 — 733,497 
Loan discount, net(35,036)33,790 (1,246)
Non-accretable discount(32,398)32,398 — 
Allowance for loan losses(61,914)(91,014)(152,928)
Loans and accrued interest receivable, net of allowance21,402,868 (24,826)21,378,042 
Liabilities
Other liabilities (deferred taxes)303,781 (5,958)297,823 
Equity
Retained earnings2,377,627 (18,868)2,358,759 

The Company adopted ASC 326 using the prospective transition approach for loans receivable purchased with credit deterioration ("PCD") that were previously classified as purchased credit impaired ("PCI"). In accordance with the standard, the Company did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the unamortized cost basis of the PCD assets were adjusted to reflect the addition of $32.4 million in the allowance for loan losses (as reflected in the table above). The remaining noncredit premium on these loans as of January 1, 2020 (based on the adjusted amortized cost basis) will be amortized into interest income over the life of the loans. Changes to the allowance for loan losses on these loans after adoption are recorded through provision expense.
Summary of Significant Accounting Policies Affected by Implementation of ASC 326
Allowance for Loan Losses
The allowance for loan losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans as of the balance sheet date. Such allowance is based on the credit losses expected to arise over the life of the asset which includes consideration of prepayments. Loans are charged off when management determines the loan is uncollectible. Charge-offs are recognized as a reduction to the allowance for loan losses. Expected
recoveries of amounts previously charged off, not to exceed the aggregate of the amount previously charged off, are included in the estimate of the allowance for loan losses at the balance sheet date.
The Company aggregates loans with similar risk characteristics into pools to estimate its expected credit losses. The Company evaluates such pooling decisions each quarter and makes adjustments as risk characteristics change.
The Company determines its estimated credit losses for the following financial assets as follows:
Loans receivable
Management has determined that the federally insured, private education, and consumer loan portfolios each meet the definition of a portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for loan losses. Accordingly, the portfolio segment disclosures are presented on this basis in note 4 for each of these portfolios. The Company does not disaggregate its portfolio segment loan portfolios into classes of financing receivables.
The Company utilizes an undiscounted cash flow methodology in determining its lifetime expected credit losses on its federally insured and private education loan portfolios and a remaining life methodology for its consumer loan portfolio. For the undiscounted cash flow models, the expected credit losses are the product of multiplying the Company’s estimates of probability of default and loss given default and the exposure of default over the expected life of the loans. For the remaining life method, the expected credit losses are the product of multiplying the Company’s estimated net loss rate by the exposure at default over the expected life of the loans. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current economic conditions, and reasonable and supportable forecasts. The Company has determined that, for modeling current expected credit losses, the Company can reasonably estimate expected losses that incorporate current economic conditions and forecasted probability weighted economic scenarios up to a one-year period. Macroeconomic factors used in the models include such variables as unemployment rates, gross domestic product, and consumer price index. After the "reasonable and supportable" period, the Company reverts to its actual long-term historical loss experience in the historical observation period. The Company uses a straight line reversion method over two years. Historical credit loss experience provides the basis for the estimation of expected credit losses. A portion of the allowance is comprised of qualitative adjustments to historical loss experience.
Qualitative adjustments consider the following factors, as applicable, for each of the Company’s loan portfolios: student loans in repayment versus those in nonpaying status; delinquency status; type of private education or consumer loan program; trends in defaults in the portfolio based on Company and industry data; past experience; trends in federally insured student loan claims rejected for payment by guarantors; changes in federal student loan programs; and other relevant qualitative factors.
Changes in the allowance for the year ended December 31, 2020 were primarily a result of the adoption of ASC 326 and changes in macroeconomic factors that were impacted by COVID-19.
The federal government guarantees 97 percent of the principal of and the interest on federally insured student loans disbursed on and after July 1, 2006 (and 98 percent for those loans disbursed on and after October 1, 1993 and prior to July 1, 2006), which limits the Company’s loss exposure on the outstanding balance of the Company’s federally insured portfolio. Federally insured student loans disbursed prior to October 1, 1993 are fully insured. Private education and consumer loans are unsecured, with neither a government nor a private insurance guarantee. Accordingly, the Company bears the full risk of loss on these loans if the borrower and co-borrower, if applicable, default. The Company places private education loans on nonaccrual status when the collection of principal and interest is 90 days past due and charges off the loan when the collection of principal and interest is 120 days past due. The Company places consumer loans on nonaccrual status when the collection of principal and interest is 90 days past due and charges off the loan when the collection of principal and interest is 120 days or 180 days past due, depending on type of loan program. Collections, if any, are reflected as a recovery through the allowance for loan losses.
Purchased Loans Receivable with Credit Deterioration (“PCD”)
The Company has purchased federally insured rehabilitation loans that have experienced more than insignificant credit deterioration since origination. Rehabilitation loans are loans that have previously defaulted, but for which the borrower has made a specified number of on-time payments. Although rehabilitation loans benefit from the same guarantees as other federally insured loans, rehabilitation loans have generally experienced redefault rates that are higher than default rates for federally insured loans that have not previously defaulted. These PCD loans are recorded at the amount paid. An allowance for loan losses is determined using the same methodology as for other loans held for investment. The sum of the loans’ purchase
price and allowance for loan losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized or accreted into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision expense.
Loan Accrued Interest Receivable
The Company has elected to present its loan accrued interest receivable balance combined in its consolidated balance sheets with the loans receivable amortized cost balance.
For the Company’s federally insured loan portfolio, the Company has elected to measure an allowance for credit losses for accrued interest receivables. For federally insured loans, accrued interest receivable is typically charged-off when the contractual payment of principal or interest has become greater than 270 days past due. Charge-offs of accrued interest receivable are recognized as a reduction to the allowance for loan losses.
For the Company’s private education and consumer loan portfolios, the Company has elected not to measure an allowance for credit losses for accrued interest receivables. For private education and consumer loans, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due. Charge-offs of accrued interest receivable are recognized by reversing interest income.
Reclassifications
Certain amounts previously reported have been reclassified to conform to the current period presentation. These reclassifications include:
Reclassifying the line item "accrued interest receivable" on the Company's consolidated balance sheet to "loans and accrued interest receivable" and "investments";
Reclassifying "gain on sale of loans" that was previously included in "other income" to a new line item on the Company's consolidated statements of income; and
Reclassifying “impairment expense” that was previously included in “other expenses” to a new line on the Company’s consolidated statements of income.
Noncontrolling Interests
Amounts for noncontrolling interests reflect the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interests in the following entities:
Whitetail Rock Capital Management, LLC - WRCM is the Company’s SEC-registered investment advisor subsidiary. WRCM issued 10 percent minority membership interests on January 1, 2012.
In addition, the Company has established multiple entities for the purpose of investing in renewable energy (solar) and federal opportunity zone programs in which it has noncontrolling members.
Use of Estimates
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and other disclosures. Actual results may differ from those estimates.
Loans Receivable
Loans consist of federally insured student loans, private education loans, and consumer loans. If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost. Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest income. Loans which are held-for-investment also have an allowance for loan loss as needed. Any loans the Company has the ability and intent to sell are classified as held for sale and are carried at the lower of cost or fair value. Loans which are held for sale do not have the associated premium or discount and origination costs and fees amortized into interest income and there is also no related allowance for loan losses. There were no loans classified as held for sale as of December 31, 2020 and 2019.
Federally insured loans were originated under the FFEL Program by certain eligible lenders as defined by the Higher Education Act of 1965, as amended (the “Higher Education Act”). These loans, including related accrued interest, are guaranteed at their maximum level permitted under the Higher Education Act by an authorized guaranty agency, which has a contract of reinsurance with the Department. The terms of the loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest. Generally, Stafford and PLUS loans have repayment periods between five and ten years. Consolidation loans have repayment periods of twelve to thirty years. FFELP loans do not require repayment while the borrower is in-school, and during the grace period immediately upon leaving school. Under the Higher Education Act a borrower may also be granted a deferment or forbearance for a period of time based on need, during which time the borrower is not considered to be in repayment. Interest continues to accrue on loans in the in-school, deferment, and forbearance program periods. In addition, eligible borrowers may qualify for income-driven repayment plans offered by the Department. These plans determine the borrower's payment amount based on their discretionary income and may extend their repayment period. Interest rates on federally insured student loans may be fixed or variable, dependent upon the type of loan, terms of the loan agreements, and date of origination.
Substantially all FFELP loan principal and related accrued interest is guaranteed as provided by the Higher Education Act. These guarantees are subject to the performance of certain loan servicing due diligence procedures stipulated by applicable Department regulations. If these due diligence requirements are not met, affected student loans may not be covered by the guarantees in the event of borrower default. Such student loans are subject to “cure” procedures and reinstatement of the guarantee under certain circumstances.
Loans also include private education and consumer loans. Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFEL Program. These loans are used primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or borrowers' personal resources. The terms of the private education loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to thirty years. The private education loans are not covered by a guarantee or collateral in the event of borrower default. Consumer loans are unsecured loans to an individual for personal, family, or household purposes. The terms of the consumer loans, which vary on an individual basis, generally provide for repayment in weekly or monthly installments of principal and interest over a period of up to six years.
Allowance for Loan Losses – Prior to Adoption of ASC 326
Prior to the adoption of ASC 326 effective January 1, 2020, the allowance for loan losses represented management's estimate of probable losses on loans. The provision for loan losses for periods ended prior to January 1, 2020 reflected the activity for the applicable period and provided an allowance at a level that the Company's management believed was appropriate to cover probable losses inherent in the loan portfolio. The Company evaluated the adequacy of the allowance for loan losses using a historical loss rate methodology adjusted for qualitative factors separately on each of its federally insured, private education, and consumer loan portfolios. These evaluation processes were subject to numerous judgments and uncertainties including the selection of loss rates over time and determination of the loss emergence period.
In determining the appropriate allowance for loan losses, the Company considered several factors, as applicable, for each of the Company’s loan portfolios, including: loans in repayment versus those in a nonpaying status, delinquency status, trends in defaults in the portfolio based on Company and industry data, past experience, trends in student loan claims rejected for payment by guarantors, changes to federal student loan programs, type of program, current economic conditions, and other relevant qualitative factors.
For loans purchased where there was evidence of credit deterioration since the origination of the loan, the Company recorded a credit discount, separate from the allowance for loan losses, which was non-accretable to interest income. Remaining discounts and premiums for purchased loans were recognized in interest income over the remaining estimated lives of the loans. The Company continued to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine if additional allowance for loan losses on such portfolios were needed.
Cash and Cash Equivalents and Statements of Cash Flows
For purposes of the consolidated statements of cash flows, the Company considers all investments with original maturities of three months or less to be cash equivalents.
Accrued interest on loans purchased and sold is included in cash flows from operating activities in the respective period. Net purchased loan accrued interest was $92.3 million, $112.9 million, and $181.0 million in 2020, 2019, and 2018, respectively.
Investments
The Company classifies its debt securities, primarily student loan and other asset-backed securities, as available-for-sale. These securities are carried at fair value, with the changes in fair value, net of taxes, carried as a separate component of shareholders’ equity. The amortized cost of debt securities in this category is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. When an investment is sold, the cost basis is determined through specific identification of the security sold.
The Company classifies its residual interest in federally insured and consumer loan securitizations as held-to-maturity beneficial interest investments. The Company measures accretable yield initially as the excess of all cash flows expected to be collected attributable to the beneficial interest estimated at the acquisition/transaction date over the initial investment and recognizes interest income over the life of the beneficial interest using the effective interest method. The Company continues to update, over the life of the beneficial interest, the expectation of cash flows to be collected. Beneficial interest investments are evaluated for impairment by comparing the present value of the remaining cash flows as estimated at the initial transaction date (or the last date previously revised) to the present value of the cash flows expected to be collected at the current financial reporting date, both discounted using the same effective rate equal to the current yield used to accrete the beneficial interest. If the present value of remaining cash flows is less than the present value of cash flows expected to be collected, the Company records an allowance for credit losses for the difference. Subsequent favorable changes, if any, decreases the allowance for credit losses. The Company reflects the changes in the allowance for credit losses in provision for beneficial interests on the consolidated statements of income.
Equity investments with readily determinable fair values are 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).
For equity investments without readily determinable fair value, the Company uses 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. The Company uses qualitative factors to identify impairment on these investments.
The Company accounts for equity investments over which it has significant influence but not a controlling financial interest using the equity method of accounting. Equity method investments are recorded at cost and subsequently increased or decreased by the amount of the Company’s proportionate share of the net earnings or losses and other comprehensive income of the investee. Equity method investments are evaluated for other-than-temporary impairment using certain impairment indicators such as a series of operating losses of an investee or other factors. These factors may indicate that a decrease in value of the investment has occurred that is other-than-temporary and shall be recognized.
The Company accounts for its solar investments and equity investments in ALLO under the HLBV method of accounting. The HLBV method of accounting is used by the Company for equity method investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership or voting interests. The Company applies the HLBV method using a balance sheet approach. A calculation is prepared at each balance sheet date to determine the amount that the Company would receive if an equity investment entity were to liquidate its net assets and distribute that cash to the investors based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is the amount the Company recognizes for its share of the earnings or losses from the equity investment for the period.
Restricted Cash
Restricted cash primarily includes amounts for student loan securitizations and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the student loans held as trust assets and when principal and interest is paid on the trust's asset-backed debt securities. Restricted cash also includes collateral deposits with derivative third-party clearinghouses.
Restricted Cash - Due to Customers
As a servicer of student loans, the Company collects student loan remittances and subsequently disburses these remittances to the appropriate lending entities. In addition, as part of the Company's Education Technology, Services, and Payment Processing
operating segment, the Company collects tuition payments and subsequently remits these payments to the appropriate schools. Cash collected for customers and the related liability are included in the accompanying consolidated balance sheets.
Accounts Receivable
Accounts receivable are presented at their net realizable values, which include allowances for doubtful accounts. Allowance estimates are based upon individual customer experience, as well as the age of receivables and likelihood of collection.
Business Combinations
The Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings.
Goodwill
The Company reviews goodwill for impairment annually (as of November 30) and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable. Goodwill is tested for impairment using a fair value approach at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a single reporting unit if they have similar economic characteristics.
The Company tests goodwill for impairment in accordance with applicable accounting guidance. The guidance provides an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a quantitative impairment test, otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test.
For the 2020, 2019, and 2018 annual reviews of goodwill, the Company assessed qualitative factors and concluded it was not more likely than not that the fair value of its reporting units were less than their carrying amount. As such, the Company was not required to perform further impairment testing and concluded there was no impairment of goodwill.
Intangible Assets
The Company uses estimates to determine the fair value of acquired assets to allocate the purchase price to acquired intangible assets. Such estimates are generally based on estimated future cash flows or cost savings associated with particular assets and are discounted to present value using an appropriate discount rate. The estimates of future cash flows associated with intangible assets are generally prepared using a cost savings method, a lost income method, or an excess return method, as appropriate. In utilizing such methods, management must make certain assumptions about the amount and timing of estimated future cash flows and other economic benefits from the assets, the remaining economic useful life of the assets, and general economic factors concerning the selection of an appropriate discount rate. The Company may also use replacement cost or market comparison approaches to estimate fair value if such methods are determined to be more appropriate.
Intangible assets with finite lives are amortized over their estimated lives. Such assets are amortized using a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. If that pattern cannot be reliably determined, the Company uses a straight-line amortization method.
The Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization.
Property and Equipment
Property and equipment are carried at cost, net of accumulated depreciation. Maintenance and repairs are charged to expense as incurred, and major improvements, including leasehold improvements, are capitalized. Gains and losses from the sale of
property and equipment are included in determining net income. The Company uses the straight-line method for recording depreciation and amortization. Leasehold improvements are amortized straight-line over the shorter of the lease term or estimated useful life of the asset.
Leases
At the inception of an arrangement, the Company determines if the arrangement is, or contains, a lease and records the lease in the consolidated financial statements upon lease commencement, which is the date when the underlying asset is made available by the lessor. The Company primarily leases office and data center space. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The lease expense for these leases is recognized on a straight-line basis over the lease term. All other lease assets (ROU assets) and lease liabilities are recognized based on the present value of lease payments over the lease term at the commencement date. The Company classifies each lease as operating or financing, with the income statement reflecting lease expense for operating leases and amortization/interest expense for financing leases. When the discount rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate.
The Company accounts for lease and non-lease components together as a single, combined lease component for its office and data center space. In addition, the Company identified itself as the lessor in its Communications operating segment for services provided to customers that include customer-premise equipment. The Company accounts for those services and associated leases as a single, combined component. The non-lease services are 'predominant' in those contracts. Therefore, the combined component is considered a single performance obligation under ASC Topic 606, Revenue from Contracts with Customers.
Most leases include one or more options to renew, with renewal terms that can be extended. The exercise of lease renewal options for the majority of leases is at the Company's discretion. Renewal options that the Company is reasonably certain to exercise are included in the lease term.
Certain leases include escalating rental payments or rental payments adjusted periodically for inflation. None of the lease agreements include any residual value guarantees, a transfer of title, or a purchase option that is reasonably certain to be exercised.
Impairment of Long-Lived Assets
The Company reviews its long-lived assets, such as ROU assets, property and equipment, and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.
Assumptions and estimates about future cash flows generated by, remaining useful lives of, and fair values of the Company's intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company's business strategy and internal forecasts. Although the Company believes the historical assumptions and estimates used are reasonable and appropriate, different assumptions and estimates could materially impact the reported financial results.
Fair Value Measurements
The Company uses estimates of fair value in applying various accounting standards for its financial statements.
Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company's policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value, such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates, and credit spreads, relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. In some cases fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model's output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. Additionally, there may be inherent weaknesses in any calculation
technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates of current or future values.
The Company categorizes its fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring assets and liabilities at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels include:
Level 1: Quoted prices for identical instruments in active markets. The types of financial instruments included in Level 1 are highly liquid instruments with quoted prices.
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose primary value drivers are observable.
Level 3: Instruments whose primary value drivers are unobservable. Inputs are developed based on the best information available; however, significant judgment is required by management in developing the inputs.
Revenue Recognition
The Company applies the provisions of ASC 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. 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.
Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records deferred revenue when revenue is received or receivable in advance of the delivery of service. 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.
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 and pre-production contract fulfillment costs 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.
Additional information related to revenue earned in its Asset Generation and Management operating segment is provided below. See note 16, "Disaggregated Revenue and Deferred Revenue" for additional information related to the Company's fee-based operating segments.
Loan interest income - Loan interest on federally insured student loans is paid by the Department or the borrower, depending on the status of the loan at the time of the accrual. The Department makes quarterly interest subsidy payments on certain qualified FFELP loans until the student is required under the provisions of the Higher Education Act to begin repayment. Borrower repayment of FFELP loans normally begins within six months after completion of the borrower's course of study, leaving school, or ceasing to carry at least one-half the normal full-time academic load, as determined by the educational institution. Borrower repayment of PLUS and Consolidation loans normally begins within 60 days from the date of loan disbursement. Borrower repayment of private education loans typically begins six months following the borrower's graduation from a qualified institution, and the interest is either paid by the borrower or capitalized annually or at repayment. Repayment of consumer loans typically starts upon origination of the loan.
The Department provides a special allowance to lenders participating in the FFEL Program. The special allowance is accrued based upon the fiscal quarter average rate of 13-week Treasury Bill auctions (for loans originated prior to January 1, 2000), the
fiscal quarter average rate of the daily three-month financial commercial paper rates (for loans originated on and after January 1, 2000), or the fiscal quarter average rate of daily one-month LIBOR rates (for loans originated on and after January 1, 2000, and for lenders which elected to change the special allowance index to one-month LIBOR effective April 1, 2012) relative to the yield of the student loan.
The Company recognizes loan interest income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts. Loan interest income is recognized based upon the expected yield of the loan after giving effect to interest rate reductions resulting from borrower utilization of incentives such as timely payments ("borrower benefits") and other yield adjustments. Loan premiums or discounts, deferred origination costs, and borrower benefits are amortized/accreted over the estimated life of the loans, which includes an estimate of forecasted payments in excess of contractually required payments (the constant prepayment rate). The constant prepayment rate used by the Company to amortize/accrete federally insured loan premiums/discounts is 5 percent for Stafford loans and 3 percent for Consolidation loans. The Company periodically evaluates the assumptions used to estimate the life of the loans and prepayment rates. In instances where there are changes to the assumptions, amortization/accretion is adjusted on a cumulative basis to reflect the change since the acquisition of the loan.
The Company also pays the Department an annual 105 basis point rebate fee on Consolidation loans. These rebate fees are netted against loan interest income.
Interest Expense
Interest expense is based upon contractual interest rates, adjusted for the amortization of debt issuance costs and the accretion of discounts. The amortization of debt issuance costs and accretion of discounts are recognized using the effective interest method.
Transfer of Financial Assets and Extinguishments of Liabilities
The Company accounts for loan sales and debt repurchases in accordance with applicable accounting guidance. If a transfer of loans qualifies as a sale, the Company derecognizes the loan and recognizes a gain or loss as the difference between the carrying basis of the loan sold and the consideration received. The Company from time to time repurchases its outstanding debt and records a gain or loss on the early extinguishment of debt based upon the difference between the carrying amount of the debt and the amount paid to the third party. The Company recognizes the results of a transfer of loans and the extinguishment of debt based upon the settlement date of the transaction.
Derivative Accounting
All over-the-counter derivative contracts executed by the Company are cleared post-execution at the Chicago Mercantile Exchange (“CME”), a regulated clearinghouse. Substantially all of the Company’s outstanding derivatives are over-the-counter contracts. Clearing is a process by which a third-party, the clearinghouse, steps in between the original counterparties and guarantees the performance of both, by requiring that each post liquid collateral on an initial (initial margin) and mark-to-market (variation margin) basis to cover the clearinghouse’s potential future exposure in the event of default.
The CME legally characterizes variation margin payments for over-the-counter derivatives they clear as settlements of the derivatives’ exposure rather than collateral against the exposure. For accounting and presentation purposes, the Company considers variation margin and the corresponding derivative instrument as a single unit of account. As such, variation margin payments are considered in determining the fair value of the centrally cleared derivative portfolio. The Company records derivative contracts on its balance sheet with a fair value of zero due to the payment or receipt of variation margin between the Company and the CME settling the outstanding mark-to-market exposure on such derivatives to a balance of zero on a daily basis. Management has structured all of the Company's derivative transactions with the intent that each is economically effective; however, the Company's derivative instruments do not qualify for hedge accounting. As a result, the change in market value of derivative instruments is reported in current period earnings. Changes or shifts in the forward yield curve can significantly impact the valuation of the Company’s derivatives, and therefore impact the results of operations of the Company. The changes in fair value of derivative instruments, as well as the settlement payments made on such derivatives, are included in “derivative market value adjustments and derivative settlements, net” on the consolidated statements of income.
Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company uses the deferred method of accounting for its credits related to state tax incentives and investments that generate investment tax credits. The investment tax credits are recognized as a reduction to the related asset.
Income tax expense includes deferred tax expense, which represents a portion of the net change in the deferred tax asset or liability balance during the year, plus any change made in the valuation allowance, and current tax expense, which represents the amount of tax currently payable to or receivable from a tax authority plus amounts for expected tax deficiencies.
Compensation Expense for Stock Based Awards
The Company has a restricted stock plan that is intended to provide incentives to attract, retain, and motivate employees in order to achieve long term growth and profitability objectives. The restricted stock plan provides for the grant to eligible employees of awards of restricted shares of Class A common stock. The fair value of restricted stock awards is determined on the grant date based on the Company's stock price and is amortized to compensation cost over the related vesting periods, which range up to ten years. For those awards with only service conditions that have graded vesting schedules, the Company recognizes compensation expense on a straight-line basis over the requisite service period for each separately vesting portion of the award, as if the award was, in substance, multiple awards. Holders of restricted stock are entitled to receive dividends from the date of grant whether or not vested. The Company accounts for forfeitures as they occur.
The Company also has a directors stock compensation plan pursuant to which non-employee directors can elect to receive their annual retainer fees in the form of fully vested shares of Class A common stock, and also elect to defer receipt of such shares until the termination of their service on the board of directors. The fair value of grants under this plan is determined on the grant date based on the Company's stock price, and is expensed over the board member's annual service period.
v3.20.4
Loans Receivable and Allowance for Loan Losses
12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Loans Receivable and Allowance for Loan Losses Loans and Accrued Interest Receivable and Allowance for Loan Losses
Loans and accrued interest receivable consisted of the following:
As of December 31,
 20202019
Federally insured student loans:
Stafford and other$4,383,000 4,684,314 
Consolidation14,746,173 15,644,229 
Total19,129,173 20,328,543 
Private education loans338,132 244,258 
Consumer loans109,346 225,918 
 19,576,651 20,798,719 
Accrued interest receivable794,611 733,497 
Loan discount, net of unamortized loan premiums and deferred origination costs (9,908)(35,036)
Non-accretable discount— (32,398)
Allowance for loan losses:
Federally insured loans(128,590)(36,763)
Private education loans(19,852)(9,597)
Consumer loans(27,256)(15,554)
 $20,185,656 21,402,868 
    
On January 30, 2020 and July 29, 2020, the Company sold $124.2 million (par value) and $60.8 million (par value), respectively, of consumer loans to an unrelated third party who securitized such loans. The Company recognized a gain of $18.2 million (pre-tax) and $14.8 million (pre-tax), respectively, as part of these transactions. As partial considerations received for the consumer loans sold, the Company received a 31.4 percent and 25.4 percent residual interest, respectively, in the consumer loan securitizations that are included in "investments" on the Company's consolidated balance sheet.
Activity in the Allowance for Loan Losses
The following table presents the activity in the allowance for loan losses by portfolio segment.
 Balance at beginning of periodImpact of ASC 326 adoptionProvision for loan lossesCharge-offsRecoveriesInitial allowance on loans purchased with credit deterioration (a)Loan sale and otherBalance at end of period
Year ended December 31, 2020
Federally insured loans$36,763 72,291 18,691 (14,955)— 15,800 — 128,590 
Private education loans9,597 4,797 6,486 (1,659)631 — — 19,852 
Consumer loans15,554 13,926 38,183 (12,115)1,132 — (29,424)27,256 
$61,914 91,014 63,360 (28,729)1,763 15,800 (29,424)175,698 
Year ended December 31, 2019
Federally insured loans$42,310 — 8,000 (13,547)— — — 36,763 
Private education loans10,838 — — (1,965)724 — — 9,597 
Consumer loans7,240 — 31,000 (12,498)812 — (11,000)15,554 
$60,388 — 39,000 (28,010)1,536 — (11,000)61,914 
Year ended December 31, 2018
Federally insured loans$38,706 — 14,000 (11,396)— — 1,000 42,310 
Private education loans12,629 — — (2,415)624 — — 10,838 
Consumer loans3,255 — 9,000 (5,056)41 — — 7,240 
$54,590 — 23,000 (18,867)665 — 1,000 60,388 

(a)    During the year ended December 31, 2020, the Company acquired $835.0 million (par value) of federally insured rehabilitation loans that met the definition of PCD loans when they were purchased by the Company.
Loan Status and Delinquencies
The key credit quality indicators for the Company’s federally insured, private education, and consumer loan portfolios are loan status, including delinquencies. The impact of changes in loan status is incorporated into the allowance for loan losses calculation. 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 status and delinquency amounts.
As of December 31,
 202020192018
Federally insured loans:    
Loans in-school/grace/deferment (a)$1,036,028 5.4 % $1,074,678 5.3 % $1,298,493 5.9 %
Loans in forbearance (b)1,973,175 10.3  1,339,821 6.6  1,430,291 6.4 
Loans in repayment status:  
Loans current13,683,054 84.9 %15,410,993 86.0 %16,882,252 86.9 %
Loans delinquent 31-60 days (c)633,411 3.9 650,796 3.6 683,084 3.5 
Loans delinquent 61-90 days (c)307,936 1.9 428,879 2.4 427,764 2.2 
Loans delinquent 91-120 days (c)800,257 5.0 310,851 1.7 283,831 1.5 
Loans delinquent 121-270 days (c)674,975 4.2 812,107 4.5 806,692 4.2 
Loans delinquent 271 days or greater (c)(d)20,337 0.1 300,418 1.8 343,489 1.7 
Total loans in repayment16,119,970 84.3 100.0 %17,914,044 88.1 100.0 %19,427,112 87.7 100.0 %
Total federally insured loans19,129,173 100.0 % 20,328,543 100.0 % 22,155,896 100.0 %
Accrued interest receivable791,453 730,059 675,898 
Loan discount, net of unamortized premiums and deferred origination costs(14,505)(35,822)(54,546)
Non-accretable discount (e)— (28,036)(23,833)
Allowance for loan losses(128,590)(36,763)(42,310)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$19,777,531 $20,957,981 $22,711,105 
Private education loans:
Loans in-school/grace/deferment (a)$5,049 1.5 %$4,493 1.8 %$4,320 1.9 %
Loans in forbearance (b)2,388 0.7 3,108 1.3 1,494 0.7 
Loans in repayment status:
Loans current327,550 99.1 %227,013 95.9 %208,977 95.0 %
Loans delinquent 31-60 days (c)1,099 0.3 2,814 1.2 3,626 1.6 
Loans delinquent 61-90 days (c)675 0.2 1,694 0.7 1,560 0.7 
Loans delinquent 91 days or greater (c)1,371 0.4 5,136 2.2 5,998 2.7 
Total loans in repayment330,695 97.8 100.0 %236,657 96.9 100.0 %220,161 97.4 100.0 %
Total private education loans338,132 100.0 % 244,258 100.0 % 225,975 100.0 %
Accrued interest receivable2,157 1,558 1,126 
Loan premium, net of unaccreted discount2,957 46 (1,245)
Non-accretable discount (e)— (4,362)(5,563)
Allowance for loan losses(19,852)(9,597)(10,838)
Total private education loans and accrued interest receivable, net of allowance for loan losses$323,394 $231,903 $209,455 
Consumer loans:
Loans in deferment$829 0.8 %$— $— 
Loans in repayment status:
Loans current105,650 97.4 %220,404 97.5 %136,130 98.2 %
Loans delinquent 31-60 days (c)954 0.9 2,046 0.9 1,012 0.7 
Loans delinquent 61-90 days (c)804 0.7 1,545 0.7 832 0.6 
Loans delinquent 91 days or greater (c)1,109 1.0 1,923 0.9 653 0.5 
Total loans in repayment108,517 99.2 100.0 %225,918 100.0 %138,627 100.0 %
Total consumer loans109,346 100.0 %225,918 138,627 
Accrued interest receivable1,001 1,880 665 
Loan premium1,640 740 2,219 
Allowance for loan losses(27,256)(15,554)(7,240)
Total consumer loans and accrued interest receivable, net of allowance for loan losses$84,731 $212,984 $134,271 
(a)    Loans for borrowers who still may be attending school or engaging in other permitted educational activities and     are not yet required to make payments on the loans, e.g., residency periods for medical students or a grace period for bar exam preparation for law students.
(b)    Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing     procedures and policies.
(c)    The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance.
(d)    A portion of loans included in loans delinquent 271 days or greater includes loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency.
(e)    Upon adoption of ASC 326 on January 1, 2020, the Company reclassified the non-accretable discount balance related to loans purchased with evidence of credit deterioration to allowance for loan losses.
In March 2020, the rapid outbreak of the respiratory disease caused by a novel strain of coronavirus, coronavirus 2019 or COVID-19 (“COVID-19”), was declared a global pandemic by the World Health Organization and a national emergency by the President, and caused significant disruptions in the U.S. and world economies. As a result of COVID-19, effective March 13, 2020 through June 30, 2020, the Company proactively applied a 90 day natural disaster forbearance to any loan that was 31-269 days past due (for federally insured loans) and 80 days past due (for private education loans), and to any current loan upon request. Beginning July 1, 2020, the Company discontinued proactively applying 90 day natural disaster forbearances on past due loans. However, the Company will continue to apply a natural disaster forbearance in 90 day increments to any federally insured and private education loan upon request through September 30, 2021.
For the majority of the Company's consumer loans, borrowers are generally being offered, upon request and/or documented evidence of financial distress, up to a two-month deferral of payments, with an option of additional deferrals if the COVID-19 pandemic continues.
The Company will continue to review whether additional and/or extended borrower relief policies and activities are needed. All relief provided to borrowers by the Company through December 31, 2020 have been delays in payment that the Company considers to be insignificant and the modifications have not been accounted for as troubled debt restructuring.
Nonaccrual Status
The Company does not place federally insured loans on nonaccrual status due to the government guaranty. The amortized cost of private and consumer loans on nonaccrual status, as well as the allowance for loan losses related to such loans, as of December 31, 2020, 2019, and 2018 was not material.
Amortized Cost Basis by Origination Year
The following table presents the amortized cost of the Company's private education and consumer loans by loan status and delinquency amount as of December 31, 2020 based on year of origination. Effective July 1, 2010, no new loan originations can be made under the FFEL Program and all new federal loan originations must be made under the Federal Direct Loan Program. As such, all the Company’s federally insured loans were originated prior to July 1, 2010.
20202019201820172016Prior yearsTotal
Private education loans:
Loans in school/grace/deferment$638 1,518 — — 206 2,687 5,049 
Loans in forbearance392 313 — — 305 1,378 2,388 
Loans in repayment status:
Loans current112,783 79,161 958 — 5,444 129,204 327,550 
Loans delinquent 31-60 days— 24 — — 28 1,047 1,099 
Loans delinquent 61-90 days94 — — — — 581 675 
Loans delinquent 91 days or greater— — — — — 1,371 1,371 
Total loans in repayment112,877 79,185 958 — 5,472 132,203 330,695 
Total private education loans$113,907 81,016 958 — 5,983 136,268 338,132 
Accrued interest receivable2,157 
Loan premium, net of unaccreted discount2,957 
Allowance for loan losses(19,852)
Total private education loans and accrued interest receivable, net of allowance for loan losses$323,394 
Consumer loans:
Loans in deferment$62 447 317 — — 829 
Loans in repayment status:
Loans current58,738 22,213 22,098 2,601 — — 105,650 
Loans delinquent 31-60 days405 371 159 19 — — 954 
Loans delinquent 61-90 days264 390 130 20 — — 804 
Loans delinquent 91 days or greater93 452 550 14 — — 1,109 
Total loans in repayment59,500 23,426 22,937 2,654 — — 108,517 
Total consumer loans$59,562 23,873 23,254 2,657 — — 109,346 
Accrued interest receivable1,001 
Loan premium1,640 
Allowance for loan losses(27,256)
Total consumer loans and accrued interest receivable, net of allowance for loan losses$84,731 
v3.20.4
Bonds and Notes Payable
12 Months Ended
Dec. 31, 2020
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 December 31, 2020
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$17,127,643 
0.28% - 2.05%
5/27/25 - 10/25/68
Bonds and notes based on auction749,925 
1.12% - 2.14%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes17,877,568 
Fixed-rate bonds and notes issued in FFELP loan asset-backed
securitizations
923,076 
1.42% - 3.45%
10/25/67 - 8/27/68
FFELP warehouse facilities252,165 
0.27% / 0.31%
5/20/22 / 2/26/23
Private education loan warehouse facility150,397 0.28%2/13/22
Consumer loan warehouse facility25,809 0.28%4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations
49,025 
1.65% / 1.90%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
37,251 
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit120,000 1.65%12/16/24
Other borrowings123,558 
0.84% / 1.90%
5/4/21 / 5/30/22
 19,558,849   
Discount on bonds and notes payable and debt issuance costs(238,123)
Total$19,320,726 
 
 As of December 31, 2019
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$18,428,998 
1.98% - 3.61%
5/27/25 - 1/25/68
Bonds and notes based on auction768,626 
2.75% - 3.60%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes19,197,624 
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations512,836 
2.00% - 3.45%
10/25/67 / 11/25/67
FFELP warehouse facilities778,094 
1.98% / 2.07%
5/20/21 / 5/31/22
Consumer loan warehouse facility116,570 1.99%4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations73,308 
3.15% / 3.54%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
49,367 
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit50,000 3.29%12/16/24
Unsecured debt - Junior Subordinated Hybrid Securities20,381 5.28%9/15/61
Other borrowings5,000 3.44%5/30/22
 20,803,180   
Discount on bonds and notes payable and debt issuance costs(274,126)
Total$20,529,054 
Secured Financing Transactions
The Company has historically relied upon secured financing vehicles as its most significant source of funding for loans. The net cash flow the Company receives from the securitized loans generally represents the excess amounts, if any, generated by the underlying loans over the amounts required to be paid to the bondholders, after deducting servicing fees and any other expenses relating to the securitizations. The Company’s rights to cash flow from securitized loans are subordinate to bondholder interests, and the securitized loans may fail to generate any cash flow beyond what is due to bondholders. The Company’s secured financing vehicles during the periods presented include loan warehouse facilities and asset-backed securitizations.
The majority of the bonds and notes payable are primarily secured by the loans receivable, related accrued interest, and by the amounts on deposit in the accounts established under the respective bond resolutions or financing agreements.
FFELP warehouse facilities
The Company funds the majority 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 December 31, 2020, the Company had two FFELP warehouse facilities as summarized below.
NFSLW-INHELP-IITotal
Maximum financing amount$260,000 50,000 310,000 
Amount outstanding252,165 — 252,165 
Amount available$7,835 50,000 57,835 
Expiration of liquidity provisionsMay 20, 2021February 26, 2021
Final maturity dateMay 20, 2022February 26, 2023
Advanced as equity support$21,209 — 21,209 

The FFELP warehouse facilities are supported by liquidity provisions, which are subject to the respective expiration date shown in the above table. In the event the Company is unable to renew the liquidity provisions by such date, the facility would become a term facility at a stepped-up cost, with no additional student loans being eligible for financing, and the Company would be required to refinance the existing loans in the facility by the facility's final maturity date. The NFSLW-I warehouse facility has a static advance rate until the expiration date of the liquidity provisions. In the event the liquidity provisions are not extended, the valuation agent has the right to perform a one-time mark to market on the underlying loans funded in this facility, subject to a floor. The loans would then be funded at this new advance rate until the final maturity date of the facility. The NHELP-II warehouse facility has a static advance rate that requires initial equity for loan funding and does not require increased equity based on market movements.
The FFELP warehouse facilities contain financial covenants relating to levels of the Company’s consolidated net worth, ratio of recourse indebtedness to adjusted EBITDA, and unencumbered cash. Any noncompliance with these covenants could result in a requirement for the immediate repayment of any outstanding borrowings under the facilities.
Asset-backed securitizations
The following tables summarize the asset-backed securitization transactions completed in 2020 and 2019.
Securitizations completed during the year ended December 31, 2020
2020-12020-22020-32020-4 (a)2020-5 (a)Total
Date securities issued2/20/203/11/203/19/208/27/2010/1/20
Total original principal amount$435,600 272,100 352,600 191,300 295,000 1,546,600 
Class A senior notes:
Total principal amount$424,600 264,300 343,600 191,300 295,000 1,518,800 
Bond discount— (44)(1,503)(19)— (1,566)
Issue price$424,600 264,256 342,097 191,281 295,000 1,517,234 
Cost of funds
1-month LIBOR plus 0.74%
1.83%
1-month LIBOR plus 0.92%
1.42%
1-month LIBOR plus 0.88%
Final maturity date3/26/684/25/683/26/688/27/6810/25/68
Class B subordinated notes:
Total principal amount$11,000 7,800 9,000 27,800 
Bond discount— (574)(284)(858)
Issue price$11,000 7,226 8,716 26,942 
Cost of funds
1-month LIBOR plus 1.75%
2.50%
1-month LIBOR plus 1.90%
Final maturity date3/26/684/25/683/26/68

(a)    Total original principal amount excludes the Class B subordinated tranche for the 2020-4 and 2020-5 transactions, totaling $5.0 million and $7.5 million, respectively, that was retained by the Company at issuance. As of December 31, 2020, the Company had a total of $40.1 million (par value) of its own asset-backed securities that were retained upon initial issuance or repurchased in the secondary market. For accounting purposes, these notes are eliminated in consolidation and are not included in the Company's consolidated financial statements. However, these securities remain legally outstanding at the trust level and the Company could sell these notes to third parties or redeem the notes at par as cash is generated in the trust estate. Upon a sale of these notes to third parties, the Company would obtain cash proceeds equal to the market value of the notes on the date of such sale. Upon sale, these notes would be shown as "bonds and notes payable" in the Company's consolidated balance sheet. The Company believes the market value of such notes is currently less than par value. Any excess of the par value over the market value on the date of sale would be recognized by the Company as interest expense over the life of the bonds.
Securitizations completed during the year ended December 31, 2019
2019-12019-2Private education loan
2019-A
2019-32019-42019-52019-62019-7Total
Class A-1 NotesClass A-2 Notes2019-1 totalClass A-1 NotesClass A-2 Notes2019-7 total
Date securities issued2/27/192/27/192/27/194/30/196/25/197/24/198/22/199/25/1910/30/1912/19/1912/19/1912/19/19
Total original principal amount$35,700 448,000 496,800 416,100 47,159 498,300 418,600 374,500 145,200 210,300 200,000 420,800 2,817,459 
Class A senior notes:
Total principal amount$35,700 448,000 483,700 405,000 47,159 485,800 408,000 364,500 140,200 210,300 200,000 410,300 2,744,659 
Bond discount— — — — — — (114)(26)— — — (140)
Issue price$35,700 448,000 483,700 405,000 47,159 485,800 408,000 364,386 140,174 210,300 200,000 410,300 2,744,519 
Cost of funds
1-month LIBOR plus 0.30%
1-month LIBOR plus 0.75%
1-month LIBOR plus 0.90%
Prime rate less 1.60%
1-month LIBOR plus 0.80%
1-month LIBOR plus 0.87%
2.53%
2.46%
1-month LIBOR plus 0.50%
1-month LIBOR plus 1.00%
Final maturity date4/25/674/25/676/27/676/25/498/25/679/26/6710/25/6711/25/671/25/681/25/68
Class B subordinated notes:
Total principal amount$13,100 11,100 12,500 10,600 10,000 5,000 10,500 72,800 
Bond discount— — — — (4)(913)— (917)
Issue price$13,100 11,100 12,500 10,600 9,996 4,087 10,500 71,883 
Cost of funds
1-month LIBOR plus 1.40%
1-month LIBOR plus 1.50%
1-month LIBOR plus 1.55%
1-month LIBOR plus 1.65%
3.45%
2.00%
1-month LIBOR plus 1.75%
Final maturity date4/25/676/27/678/25/679/26/6710/25/6711/25/671/25/68

During 2019, the Company extinguished $1.05 billion of notes payable included in certain FFELP asset-backed securitizations prior to the notes’ contractual maturities. To extinguish the notes, the Company paid premiums of $14.0 million and wrote off $2.7 million of debt issuance costs. In total, the Company recognized $16.7 million (pre-tax) in expenses to extinguish these notes, which is included in “other expenses” on the consolidated statements of income.
Auction Rate Securities
The interest rates on certain of the Company's FFELP asset-backed securities were set and provide for interest rates to be periodically reset via a "dutch auction" ("Auction Rate Securities"). As of December 31, 2020, the Company is currently the sponsor on $749.9 million of Auction Rate Securities. Since the auction feature has essentially been inoperable for substantially all auction rate securities since 2008, the Auction Rate Securities generally pay interest to the holder at a maximum rate as defined by the indenture. While these rates will vary, they will generally be based on a spread to LIBOR or Treasury Securities, or the Net Loan Rate as defined in the financing documents.
Private Education Loan Warehouse Facility
During 2020, the Company obtained a private education loan warehouse facility. As of December 31, 2020, the facility has an aggregate maximum financing amount available of $200.0 million, an advance rate of 80 to 90 percent, liquidity provisions through February 13, 2021, and a final maturity date of February 13, 2022. As of December 31, 2020, $150.4 million was outstanding under this warehouse facility, $49.6 million was available for future funding, and the Company had $16.4 million advanced as equity support.
Consumer Loan Warehouse Facility
The Company has a consumer loan warehouse facility that has an aggregate maximum financing amount available of $100.0 million, an advance rate of 70 or 75 percent depending on the type of collateral and subject to certain concentration limits, liquidity provisions to April 23, 2021, and a final maturity date of April 23, 2022. As of December 31, 2020, $25.8 million was
outstanding under this warehouse facility, $74.2 million was available for future funding, and the Company had $11.5 million advanced as equity support.
Unsecured Line of Credit
The Company has a $455.0 million unsecured line of credit that has a maturity date of December 16, 2024. The line of credit provides that the Company may increase the aggregate financing commitments, through the existing lenders and/or through new lenders, up to a total of $550.0 million, subject to certain conditions. As of December 31, 2020, $120.0 million was outstanding on the line of credit and $335.0 million was available for future use. Interest on amounts borrowed under the line of credit is payable, at the Company's election, at an alternate base rate or a Eurodollar rate, plus a variable rate (LIBOR), in each case as defined in the credit agreement. As of December 31, 2020, the Company has selected the Eurodollar rate. The initial margin applicable to Eurodollar borrowings is 150 basis points and may vary from 100 to 200 basis points depending on the Company's credit rating.
The line of credit agreement contains certain financial covenants that, if not met, lead to an event of default under the agreement. The covenants include, among others, maintaining:
A minimum consolidated net worth
A minimum recourse indebtedness to adjusted EBITDA (over the last four rolling quarters)
A limitation on recourse indebtedness
A limitation on the amount of unsecuritized private education and consumer loans in the Company’s portfolio
A limitation on permitted investments, including business acquisitions that are not in one of the Company's existing lines of business
As of December 31, 2020, the Company was in compliance with all of these requirements. Many of these covenants are duplicated in the Company's other lending facilities, including its warehouse facilities.
The Company's operating line of credit does not have any covenants related to unsecured debt ratings. However, changes in the Company's ratings have modest implications on the pricing level at which the Company obtains funds.
A default on the Company's other debt facilities would result in an event of default on the Company's unsecured line of credit that would result in the outstanding balance on the line of credit becoming immediately due and payable.
Junior Subordinated Hybrid Securities
During 2020, the Company redeemed all the outstanding $20.4 million of Hybrid Securities at par.
Other Borrowings
During 2020, the Company entered into an agreement with Union Bank and Trust Company ("Union Bank"), a related party, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in student loan asset-backed securities. As of December 31, 2020, $118.6 million of student loan asset-backed securities were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement. The agreement automatically renews annually and is terminable by either party upon five business days' notice. The Company can participate student loan asset-backed securities to Union Bank to the extent of availability under the grantor trusts, up to $100.0 million or an amount in excess of $100.0 million if mutually agreed to by both parties. Student loan asset-backed securities under this agreement have been accounted for by the Company as a secured borrowing.
During 2019, the Company entered into a $22.0 million secured line of credit agreement with a maturity date of May 30, 2022 and an interest rate of one-month LIBOR plus 1.75%. As of December 31, 2020, $5.0 million was outstanding under this line of credit and $17.0 million was available for future use. The line of credit is secured by several Company-owned properties.
Debt Covenants
Certain bond resolutions and related credit agreements contain, among other requirements, covenants relating to restrictions on additional indebtedness, limits as to direct and indirect administrative expenses, and maintaining certain financial ratios. Management believes the Company is in compliance with all covenants of the bond indentures and related credit agreements as of December 31, 2020.
Maturity Schedule
Bonds and notes outstanding as of December 31, 2020 are due in varying amounts as shown below.
2021$118,558 
2022433,371 
2023— 
2024120,000 
202598,761 
2026 and thereafter18,788,159 
$19,558,849 

Generally, the Company's secured financing instruments can be redeemed on any interest payment date at par plus accrued interest. Subject to certain provisions, all bonds and notes are subject to redemption prior to maturity at the option of certain lending subsidiaries.
Debt Repurchases
The following table summarizes the Company's repurchases of its own debt. Gains recorded by the Company from the repurchase of debt are included in "other income" on the Company’s consolidated statements of income.
Year ended December 31,
202020192018
Par value$27,445 — 12,905 
Purchase price(25,521)— (12,546)
Gain$1,924 — 359 
v3.20.4
Derivative Financial Instruments
12 Months Ended
Dec. 31, 2020
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. The Company is exposed to interest rate risk in the form of basis risk and repricing risk because the interest rate characteristics of the Company's assets do not match the interest rate characteristics of the funding for those assets. The Company periodically reviews the mismatch related to the interest rate characteristics of its assets and liabilities together with the Company's outlook as to current and future market conditions. Based on those factors, the Company uses derivative instruments as part of its overall risk management strategy. Derivative instruments used as part of the Company's interest rate risk management strategy are discussed below.
Basis Swaps
Interest earned on the majority of the Company's FFELP student loan assets is indexed to the one-month LIBOR rate. Meanwhile, the Company funds a portion of its FFELP loan assets with three-month LIBOR indexed floating rate securities. The differing interest rate characteristics of the Company's loan assets versus the liabilities funding these assets results in basis risk, which impacts the Company's excess spread earned on its loans.
The Company also faces repricing risk due to the timing of the interest rate resets on its liabilities, which may occur as infrequently as once a quarter, in contrast to the timing of the interest rate resets on its assets, which generally occur daily.
As of December 31, 2020, the Company had $17.8 billion, $0.7 billion, and $0.6 billion of FFELP loans indexed to the one-month LIBOR rate, three-month commercial paper rate, and the three-month treasury bill rate, respectively, the indices for which reset daily, and $6.5 billion of debt indexed to three-month LIBOR, the indices for which reset quarterly, and $10.7 billion of debt indexed to one-month LIBOR, the indices for which reset monthly.
The Company has used derivative instruments to hedge its basis risk and repricing risk. The Company has entered into basis swaps in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the 1:3 Basis Swaps).
The following table summarizes the Company’s 1:3 Basis Swaps outstanding:
As of December 31,
20202019
MaturityNotional amountNotional amount
2020$— 1,000,000 
2021250,000 250,000 
20222,000,000 2,000,000 
2023750,000 750,000 
20241,750,000 1,750,000 
20261,150,000 1,150,000 
2027250,000 250,000 
$6,150,000 7,150,000 
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2020 and 2019, was one-month LIBOR plus 9.1 basis points and 9.7 basis points, respectively.
Interest rate swaps – floor income hedges
FFELP loans originated prior to April 1, 2006 generally earn interest at the higher of the borrower rate, which is fixed over a period of time, or a floating rate based on the Special Allowance Payments ("SAP") formula set by the Department. The SAP rate is based on an applicable index plus a fixed spread that depends on loan type, origination date, and repayment status. The Company generally finances its student loan portfolio with variable rate debt. In low and/or certain declining interest rate environments, when the fixed borrower rate is higher than the SAP rate, these student loans earn at a fixed rate while the interest on the variable rate debt typically continues to reflect the low and/or declining interest rates. In these interest rate environments, the Company may earn additional spread income that it refers to as floor income.
Depending on the type of loan and when it was originated, the borrower rate is either fixed to term or is reset to an annual rate each July 1. As a result, for loans where the borrower rate is fixed to term, the Company may earn floor income for an extended period of time, which the Company refers to as fixed rate floor income, and for those loans where the borrower rate is reset annually on July 1, the Company may earn floor income to the next reset date, which the Company refers to as variable rate floor income. All FFELP loans first originated on or after April 1, 2006 effectively earn at the SAP rate, since lenders are required to rebate fixed rate floor income and variable rate floor income for these loans to the Department.
Absent the use of derivative instruments, a rise in interest rates may reduce the amount of floor income received and this may have an impact on earnings due to interest margin compression caused by increasing financing costs, until such time as the federally insured loans earn interest at a variable rate in accordance with their SAP formulas. In higher interest rate environments, where the interest rate rises above the borrower rate and fixed rate loans effectively become variable rate loans, the impact of the rate fluctuations is reduced.
As of December 31, 2020 and 2019, the Company had $8.4 billion and $3.3 billion, respectively, of FFELP student loan assets that were earning fixed rate floor income, of which the weighted average estimated variable conversion rate for these loans, which is the estimated short-term interest rate at which loans would convert to a variable rate, was 1.94% and 3.72%, respectively.
The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
As of December 31, 2020As of December 31, 2019
MaturityNotional amountWeighted average fixed rate paid by the Company (a)Notional amountWeighted average fixed rate paid by the Company (a)
2020$— — %$1,500,000 1.01 %
2021600,000 2.15 600,000 2.15 
2022 (b)500,000 0.94 250,000 1.65 
2023900,000 0.62 150,000 2.25 
2024 (c)2,000,000 0.32 — — 
2025500,000 0.35 — — 
 $4,500,000 0.70 %$2,500,000 1.42 %
 
(a)    For all interest rate derivatives, the Company receives discrete three-month LIBOR.
(b)    $250.0 million of the derivatives outstanding at December 31, 2020 and 2019 have forward effective start dates in June 2021.
(c)    $750.0 million of the derivatives outstanding have formal effective start dates in June 2021.
Consolidated Financial Statement Impact Related to Derivatives - Statements of Income
The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income.
Year ended December 31,
202020192018
Settlements:  
1:3 basis swaps$10,378 5,214 5,577 
Interest rate swaps - floor income hedges(6,699)40,192 64,901 
Other— — (407)
Total settlements - income3,679 45,406 70,071 
Change in fair value:   
1:3 basis swaps(7,462)1,515 12,573 
Interest rate swaps - floor income hedges(20,682)(77,027)(10,962)
Other— (683)(597)
Total change in fair value - (expense) income(28,144)(76,195)1,014 
Derivative market value adjustments and derivative settlements, net - (expense) income$(24,465)(30,789)71,085 

Derivative Instruments - Credit and Market Risk
Interest rate movements have an impact on the amount of variation margin the Company may be required to pay to its third-party clearinghouse. The Company attempts to manage market risk associated with interest rates by establishing and monitoring limits as to the types and degree of risk that may be undertaken. The Company's derivative portfolio and hedging strategy is reviewed periodically by its internal risk committee and board of directors' Risk and Finance Committee. With the Company's current derivative portfolio, the Company does not currently anticipate any movement in interest rates having a material impact on its liquidity or capital resources, nor expects future movements in interest rates to have a material impact on its ability to meet variation margin payments to its third-party clearinghouse. Due to the existing low interest rate environment, the Company's exposure to downward movements in interest rates on its interest rate swaps is limited. In addition, the historical high correlation between one-month and three-month LIBOR limits the Company's exposure to interest rate movements on the 1:3 Basis Swaps.
v3.20.4
Investments
12 Months Ended
Dec. 31, 2020
Investments [Abstract]  
Investments Investments
A summary of the Company's investments follows:
As of December 31, 2020As of December 31, 2019
Amortized costGross unrealized gainsGross unrealized lossesFair valueAmortized costGross unrealized gainsGross unrealized lossesFair value
Investments (at fair value):
Student loan asset-backed and other debt securities - available-for-sale (a)$340,578 8,042 (13)348,607 48,790 3,911 — 52,701 
Equity securities36,227 8,768 (2,954)42,041 9,622 4,561 (1,283)12,900 
Total investments (at fair value)$376,805 16,810 (2,967)390,648 58,412 8,472 (1,283)65,601 
Other Investments (not measured at fair value):
Venture capital and funds:
Measurement alternative (b)144,795 72,760 
Equity method14,018 15,379 
Other894 1,301 
Total venture capital and funds159,707 89,440 
Real estate:
Equity method50,291 44,159 
Other847 867 
Total real estate51,138 45,026 
Investment in ALLO:
Voting interest/equity method129,396 — 
Preferred membership interest228,916 — 
Total investment in ALLO358,312 — 
Solar (c)(30,373)7,562 
Beneficial interest in federally insured loan securitizations (d)30,377 — 
Beneficial interest in consumer loan securitizations, net of allowance for credit losses of $4,449 as of December 31, 2020 (d)
27,954 33,187 
Tax liens and affordable housing5,177 6,283 
Total investments (not measured at fair value)602,292 181,498 
Total investments$992,940 247,099 

(a)    As of December 31, 2020, $118.6 million (par value) of student loan asset-backed securities were subject to participation interests held by Union Bank, as discussed in note 5 under "Other Borrowings."
As of December 31, 2020, the stated maturities of a majority of the Company's student loan asset-backed and other debt securities classified as available-for-sale were greater than 10 years; however, such securities with a fair value of $58.6 million as of December 31, 2020 are scheduled to mature within the next 10 years, including $2.6 million, $31.2 million, and $24.8 million scheduled to mature within the next one year, 1-5 years, and 6-10 years, respectively.
(b)    The Company has an investment in Agile Sports Technologies, Inc. (doing business as “Hudl”) that is included in “venture capital and funds” in the above table. On May 20, 2020, the Company made an additional equity investment of approximately $26 million in Hudl, as one of the participants in an equity raise completed by Hudl. Prior to the additional 2020 investment, the Company had direct and indirect equity ownership interests in Hudl of less than 20%, which did not materially change as a result of this transaction. The Company accounts for its investment in Hudl using the measurement alternative method, which requires it to adjust its carrying value of the investment for changes resulting from observable market transactions. As a result of Hudl’s equity raise, the Company recognized a $51.0 million (pre-tax) gain during the second quarter of 2020 to adjust its carrying value to reflect the May 20, 2020 transaction value. This gain is included in "other income" on the consolidated statements of income. As of December 31, 2020, the carrying amount of the Company’s investment in Hudl is $128.6 million.
David S. Graff, who has served on the Company’s Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl.
(c)    The Company makes investments in entities that promote renewable energy sources (solar). The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods which range from 5 to 6 years. As of December 31, 2020, the Company has funded $148.6 million in solar investments. The carrying value of the Company’s solar investments are reduced by tax credits earned when the solar project is placed in service. The solar investment balance at December 31, 2020 represents total tax credits earned on solar projects placed in service through December 31, 2020 being larger than total payments made by the Company on such projects. The Company is committed to fund an additional $17.5 million on these projects.
The Company accounts for its solar investments using the Hypothetical Liquidation at Book Value (“HLBV”) method of accounting. For the majority of the Company’s solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment. During the years ended December 31, 2020 and 2019, the Company recognized pre-tax losses of $37.4 million and $2.2 million, respectively, on its solar investments. These losses are included in "other income" in the consolidated statements of income.
(d)    The Company has purchased partial ownership in certain federally insured and consumer loan securitizations. As of the latest remittance reports filed by the various trusts prior to December 31, 2020, the Company's ownership correlates to approximately $500 million and $280 million of federally insured and consumer loans, respectively, included in these securitizations.
Impairment Expense and Provision for Beneficial Interests
During the first quarter of 2020, the Company recorded a $26.3 million provision charge related to the Company's beneficial interest in consumer loan securitizations. As of March 31, 2020, the Company's estimate of future cash flows from the beneficial interest in consumer loan securitizations was lower than previously anticipated due to the expectation of increased consumer loan defaults within such securitizations due to the distressed economic conditions resulting from the COVID-19 pandemic and recorded an allowance for credit losses of $26.3 million. Additionally, during the first quarter of 2020, the Company recorded a $7.8 million impairment charge related to several of its venture capital investments. The Company identified several venture capital investments, a majority of which were accounted for under the measurement alternative, that were also negatively impacted by the distressed economic conditions resulting from the COVID-19 pandemic, and estimated that the fair value of such investments was significantly reduced from their previous carrying value. During the fourth quarter of 2020, due to improved economic conditions, the Company reduced the allowance for credit losses related to the consumer loan beneficial interests by $9.7 million. The activity described above is included in “impairment expense and provision for beneficial interests” on the consolidated statements of income.
v3.20.4
Business Combination
12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
Business Combination Business Combinations
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 Department of Education, FFELP loans, and private education 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, 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 a noncontrolling interest 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 interests and a $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 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 receivable23,708 
Property and equipment35,919 
Other assets14,018 
Intangible assets75,329 
Excess cost over fair value of net assets acquired (goodwill)15,043 
Other liabilities(54,865)
Net assets acquired$136,551 

The $75.3 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 $70.2 million (4-year average useful life) and a trade name of $5.1 million (7-year useful life).
The $15.0 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 pro forma impacts of the Great Lakes acquisition on the Company’s 2018 historical results prior to the acquisition were not material.
Tuition Management Systems, LLC ("TMS")
On November 20, 2018, the Company acquired 100 percent of the membership interests of TMS for total cash consideration of $27.0 million. TMS provides tuition payment plans, billing services, payment technology solutions, and refund management to educational institutions. The TMS acquisition added both K-12 and higher education schools to the Company's existing customer base, further enhancing the Company's market share leading position with private faith based K-12 schools and advancing to a market leading position in higher education. The operating results of TMS are included in the Education Technology, Services, and Payment Processing operating segment from the date of acquisition.
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

Cash and cash equivalents$438 
Restricted cash - due to customers123,169 
Accounts receivable1,019 
Other assets381 
Intangible assets26,390 
Excess cost over fair value of net assets acquired (goodwill)3,110 
Other liabilities(4,321)
Due to customers(123,169)
Net assets acquired$27,017 
The $26.4 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 10 years. The intangible assets that made up this amount include customer relationships of $25.4 million (10-year useful life) and computer software of $1.0 million (2-year useful life).
The $3.1 million of goodwill was assigned to the Education Technology, Services, and Payment Processing operating segment and is expected to be deductible for tax purposes. The amount allocated to goodwill was primarily attributed to the synergies and economies of scale expected from combining the operations of the Company and TMS.
The pro forma impacts of the TMS acquisition on the Company's historical results prior to the acquisition were not material.
HigherSchool Publishing Company ("HigherSchool")
On December 31, 2020, the Company acquired 100 percent of the outstanding stock of HigherSchool for total cash consideration of $24.7 million. HigherSchool provides supplemental instructional services and educational professional development for K-12 schools. The acquisition of HigherSchool has expanded the Company's professional development and educational instruction services. The operating results of HigherSchool are included in the Education Technology, Services, and Payment Processing operating segment from the date of acquisition.
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

Cash and cash equivalents$
Accounts receivable5,711 
Intangible assets24,200 
Excess cost over fair value of net assets acquired (goodwill)6,292 
Other liabilities(11,510)
Net assets acquired$24,700 

The acquired intangible assets were customer relationships of $24.2 million (10-year useful life).
The $6.3 million of goodwill was assigned to the Education Technology, Services, and Payment Processing 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 basis of acquired identifiable intangible assets.
The pro forma impacts of the HigherSchool acquisition on the Company's historical results prior to the acquisition were not material.
v3.20.4
Intangible Assets
12 Months Ended
Dec. 31, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets Intangible Assets
Intangible assets consist of the following:
Weighted average remaining useful life as of
December 31, 2020 (months)
As of December 31,
20202019
Amortizable intangible assets, net:  
Customer relationships (net of accumulated amortization of $83,419 and $60,553, respectively)
99$66,974 71,900 
Computer software (net of accumulated amortization of $4,127 and $3,233, respectively)
356,430 2,154 
Trade names (net of accumulated amortization of $3,455 and $2,792, respectively)
61,666 7,478 
Total - amortizable intangible assets, net91$75,070 81,532 
The Company recorded amortization expense on its intangible assets of $30.8 million, $32.8 million, and $30.2 million during the years ended December 31, 2020, 2019, and 2018, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of December 31, 2020, the Company estimates it will record amortization expense as follows:
2021$23,042 
20229,939 
20239,830 
20247,457 
20254,644 
2026 and thereafter20,158 
 $75,070 
v3.20.4
Goodwill
12 Months Ended
Dec. 31, 2020
Goodwill [Abstract]  
Goodwill Goodwill
The change in the carrying amount of goodwill by reportable operating segment was as follows:
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset Generation and Management (a)Corporate and Other ActivitiesTotal
Balance as of December 31, 2018 and 2019$23,639 70,278 21,112 41,883 — 156,912 
Goodwill acquired— 6,292 — — — 6,292 
Deconsolidation of ALLO— — (21,112)— — (21,112)
Balance as of December 31, 2020$23,639 76,570 — 41,883 — 142,092 

(a) As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of new FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units.
v3.20.4
Property and Equipment
12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consisted of the following:
As of December 31,
Useful life20202019
Non-communications:
Computer equipment and software
1-5 years
$172,664 160,319 
Building and building improvements
5-48 years
52,444 37,904 
Office furniture and equipment
1-10 years
21,899 21,245 
Leasehold improvements
1-15 years
9,168 9,517 
Transportation equipment
5-10 years
4,857 5,049 
Land3,642 1,400 
Construction in progress18,478 13,738 
283,152 249,172 
Accumulated depreciation - non-communications (159,625)(142,270)
Non-communications, net property and equipment123,527 106,902 
Communications:
Network plant and fiber
4-15 years
— 254,560 
Customer located property
2-4 years
— 27,011 
Central office
5-15 years
— 17,672 
Transportation equipment
4-10 years
— 6,611 
Computer equipment and software
1-5 years
— 5,574 
Other
1-39 years
— 3,702 
Land— 70 
Construction in progress— 54 
— 315,254 
Accumulated depreciation - communications— (73,897)
Communications, net property and equipment— 241,357 
Total property and equipment, net$123,527 348,259 

The Company recorded depreciation expense on its property and equipment of $87.9 million, $72.3 million, and $56.7 million during the years ended December 31, 2020, 2019, and 2018, respectively.
On December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. See note 2, “Recent Developments - ALLO Recapitalization,” for a description of the transaction and a summary of the deconsolidation impact.
Impairment charges
As part of integrating technology and becoming more efficient and effective in meeting borrower needs, the Company continues to evaluate the best use of its servicing systems on a post-Great Lakes acquisition basis. As a result of this evaluation, in 2018, the Company recorded an impairment charge of $3.9 million (pre-tax) within its Loan Servicing and Systems operating segment related to certain external software development costs that were previously capitalized.
On October 16, 2018, the Company terminated its investment in a proprietary payment processing platform. This decision was made as a result of decreases in price and advancements of technology by established processors in the industry. As a result of this decision, in 2018, the Company recorded an impairment charge of $7.8 million (pre-tax) within its Education Technology, Services, and Payment Processing operating segment. The charge primarily represents computer equipment and external software development costs related to the payment processing platform.
The above impairment charges are included in "impairment expense, net of recoveries" in the consolidated statements of income.
v3.20.4
Shareholders' Equity
12 Months Ended
Dec. 31, 2020
Equity [Abstract]  
Stockholders' Equity Shareholders’ Equity
Classes of Common Stock
The Company's common stock is divided into two classes. The Class B common stock has ten votes per share and the Class A common stock has one vote per share on all matters to be voted on by the Company's shareholders. Each Class B share is convertible at any time at the holder's option into one Class A share. With the exception of the voting rights and the conversion feature, the Class A and Class B shares are identical in terms of other rights, including dividend and liquidation rights.
Stock Repurchases
The Company has a stock repurchase program that expires on May 7, 2022 in which it can repurchase up to five million shares of its Class A common stock on the open market, through private transactions, or otherwise. As of December 31, 2020, 3.2 million shares may still be purchased under the Company's stock repurchase program. Shares repurchased by the Company during 2020, 2019, and 2018 are shown in the table below. In accordance with the corporate laws of the state in which the Company is incorporated, all shares repurchased by the Company are legally retired upon acquisition by the Company.
Total shares repurchasedPurchase price
(in thousands)
Average price of shares repurchased (per share)
Year ended December 31, 20201,594,394 $73,358 $46.01 
Year ended December 31, 2019726,273 40,411 55.64 
Year ended December 31, 2018868,147 45,331 52.22 
v3.20.4
Earnings per Common Share
12 Months Ended
Dec. 31, 2020
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.
 Year ended December 31,
202020192018
Common shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotal
Numerator:
Net income attributable to Nelnet, Inc.$347,451 4,992 352,443 139,946 1,857 141,803 225,170 2,743 227,913 
Denominator:
Weighted-average common shares outstanding - basic and diluted38,506,351 553,237 39,059,588 39,523,082 524,320 40,047,402 40,416,719 492,303 40,909,022 
Earnings per share - basic and diluted$9.02 9.02 9.02 3.54 3.54 3.54 5.57 5.57 5.57 

Unvested restricted stock awards are the Company's only potential common shares and, accordingly, there were no awards that were antidilutive and not included in average shares outstanding for the diluted earnings per share calculation.
As of December 31, 2020, a cumulative amount of 209,924 shares have been deferred by non-employee directors under the Directors Stock Compensation Plan and will become issuable upon the termination of service by the respective non-employee director on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation.
v3.20.4
Income Taxes
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company is subject to income taxes in the United States, Canada, and Australia. Significant judgment is required in evaluating the Company's tax positions and determining the provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain.
As required by the Income Taxes Topic of the FASB Accounting Standards Codification ("ASC Topic 740"), the Company recognizes in the consolidated financial statements only those tax positions determined to be more likely than not of being sustained upon examination, based on the technical merits of the positions. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change.
As of December 31, 2020, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $20.3 million, which is included in “other liabilities” on the consolidated balance sheet. Of this total, $16.0 million (net of the federal benefit on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods. The Company currently anticipates uncertain tax positions will decrease by $6.7 million prior to December 31, 2021 as a result of a lapse of applicable statutes of limitations, settlements, correspondence with examining authorities, and recognition or measurement considerations with federal and state jurisdictions; however, actual developments in this area could differ from those currently expected. Of the anticipated $6.7 million decrease, $5.3 million, if recognized, would favorably affect the Company's effective tax rate. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows:
Year ended December 31,
20202019
Gross balance - beginning of year$20,148 23,445 
Additions based on tax positions of prior years634 651 
Additions based on tax positions related to the current year2,523 1,339 
Settlements with taxing authorities— (1,810)
Reductions for tax positions of prior years(69)(380)
Reductions due to lapse of applicable statutes of limitations(2,918)(3,097)
Gross balance - end of year$20,318 20,148 

All the reductions shown in the table above that are due to prior year tax positions, settlements, and the lapse of statutes of limitations impacted the effective tax rate.
The Company's policy is to recognize interest and penalties accrued on uncertain tax positions as part of interest expense and other expense, respectively. As of December 31, 2020 and 2019, $5.4 million and $5.0 million in accrued interest and penalties, respectively, were included in “other liabilities” on the consolidated balance sheets. The Company recognized interest expense of $0.4 million, $0.1 million, and $0.4 million related to uncertain tax positions for the years ended December 31, 2020, 2019, and 2018, respectively. The impact to the consolidated statements of income related to penalties for uncertain tax positions was not significant for the years 2020, 2019, and 2018. The impact of timing differences and tax attributes are considered when calculating interest and penalty accruals associated with the unrecognized tax benefits.
The Company and its subsidiaries file a consolidated federal income tax return in the U.S. and the Company or one of its subsidiaries files income tax returns in various state, local, and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2017. The Company is no longer subject to U.S. state and local income tax examinations by tax authorities prior to 2010. As of December 31, 2020, the Company has tax uncertainties that remain unsettled in the jurisdiction of California (2010 through 2017).
The provision for income taxes consists of the following components:
Year ended December 31,
202020192018
Current:
Federal$82,832 38,931 45,822 
State9,815 3,546 1,969 
Foreign239 239 (2)
Total current provision92,886 42,716 47,789 
Deferred:
Federal7,269 (4,280)11,783 
State718 (2,922)(883)
Foreign(13)(63)81 
Total deferred provision7,974 (7,265)10,981 
Provision for income tax expense$100,860 35,451 58,770 

The differences between the income tax provision computed at the statutory federal corporate tax rate and the financial statement provision for income taxes are shown below:
Year ended December 31,
202020192018
Tax expense at federal rate21.0 %21.0 %21.0 %
Increase (decrease) resulting from:
State tax, net of federal income tax benefit2.8 2.5 2.4 
Tax credits(1.1)(3.0)(1.9)
Provision for uncertain federal and state tax matters(0.2)(0.7)(1.0)
Other(0.2)0.2 — 
Effective tax rate22.3 %20.0 %20.5 %
The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following:
As of December 31,
20202019
Deferred tax assets:
Student loans$26,894 15,479 
Deferred revenue18,081 18,037 
Accrued expenses10,661 4,112 
Tax credit carryforwards5,987 9,394 
Basis in certain derivative contracts5,061 — 
Lease liability4,123 5,891 
Stock compensation2,546 2,167 
Securitizations694 1,261 
Net operating losses647 551 
Total gross deferred tax assets74,694 56,892 
Less valuation allowance(569)(548)
Net deferred tax assets74,125 56,344 
Deferred tax liabilities:
Partnership basis64,023 56,741 
Debt and equity investments20,538 3,775 
Depreciation14,092 11,489 
Intangible assets7,703 5,399 
Loan origination services5,040 4,647 
Lease right of use asset4,037 5,684 
Basis in certain derivative contracts— 2,730 
Other661 1,003 
Total gross deferred tax liabilities116,094 91,468 
Net deferred tax asset (liability)$(41,969)(35,124)

The Company has performed an evaluation of the recoverability of deferred tax assets. In assessing the realizability of the Company's deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible or eligible for utilization of a tax credit carryforward. Management considers the scheduled reversals of deferred tax liabilities, projected taxable income, carry back opportunities, and tax planning strategies in making the assessment of the amount of the valuation allowance. With the exception of a portion of the Company's state net operating losses, it is management's opinion that it is more likely than not that the deferred tax assets will be realized and should not be reduced by a valuation allowance. The amount of deferred tax assets considered realizable could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.
As of December 31, 2020 and 2019, the Company had a current income tax receivable of $21.5 million and $27.3 million, respectively, that is included in "other assets" on the consolidated balance sheets.
v3.20.4
Segment Reporting
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company's reportable operating segments include:
Loan Servicing and Systems
Education Technology, Services, and Payment Processing
Communications
Asset Generation and Management
Nelnet Bank
The Company earns fee-based revenue through its Loan Servicing and Systems and Education Technology, Services, and Payment Processing operating segments and earned revenue from its Communications operating segment prior to its deconsolidation on December 21, 2020. In addition, the Company earns interest income on its loan portfolio in its Asset Generation and Management operating segment. On November 2, 2020, the Company launched operations of Nelnet Bank. Nelnet bank operates as an internet bank franchise focused primarily on the private education loan marketplace.
The Company’s operating segments are defined by the products and services they offer and the types of customers they serve, and they reflect the manner in which financial information is currently evaluated by management. See note 1, "Description of Business," for a description of each operating segment, including the primary products and services offered.
The management reporting process measures the performance of the Company’s operating segments based on the management structure of the Company, as well as the methodology used by management to evaluate performance and allocate resources. Executive management (the "chief operating decision maker") evaluates the performance of the Company’s operating segments based on their financial results prepared in conformity with U.S. GAAP.
The accounting policies of the Company’s operating segments are the same as those described in the summary of significant accounting policies. Intersegment revenues are charged by a segment that provides a product or service to another segment. Intersegment revenues and expenses are included within each segment consistent with the income statement presentation provided to management. 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 taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities.
Corporate and Other Activities
Other business activities and operating segments that are not reportable are combined and included in Corporate and Other Activities. Corporate and Other Activities includes the following items:
Income earned on certain investment activities, including renewable energy (solar) and real estate
Interest expense incurred on unsecured and certain other corporate related debt transactions
Other product and service offerings that are not considered reportable operating segments including, but not limited to, WRCM, the SEC-registered investment advisor subsidiary
Corporate and Other Activities also includes certain corporate activities and overhead functions related to executive management, internal audit, human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services.
Segment Results
The following tables include the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements.
 Year ended December 31, 2020
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunications (a)Asset
Generation and
Management
Nelnet BankCorporate and Other ActivitiesEliminationsTotal
Total interest income$436 3,036 611,474 414 5,775 (1,480)619,656 
Interest expense121 54 — 328,157 41 3,178 (1,480)330,071 
Net interest income (expense)315 2,982 283,317 373 2,597 — 289,585 
Less provision for loan losses— — — 63,029 330 — — 63,360 
Net interest income after provision for loan losses315 2,982 220,288 43 2,597 — 226,225 
Other income/expense:      
Loan servicing and systems revenue451,561 — — — — — — 451,561 
Intersegment revenue36,520 20 — — — — (36,540)— 
Education technology, services, and payment processing revenue— 282,196 — — — — — 282,196 
Communications revenue— — 76,643 — — — — 76,643 
Other9,421 373 1,561 7,189 48 38,969 — 57,561 
Gain on sale of loans— — — 33,023 — — — 33,023 
Gain from deconsolidation of ALLO— — — — — 258,588 — 258,588 
Impairment expense and provision for beneficial interests— — — (16,607)— (8,116)— (24,723)
Derivative settlements, net— — — 3,679 — — — 3,679 
Derivative market value adjustments, net— — — (28,144)— — — (28,144)
Total other income/expense497,502 282,589 78,204 (860)48 289,441 (36,540)1,110,384 
Cost of services:
Cost to provide education technology, services, and payment processing services— 82,206 — — — — — 82,206 
Cost to provide communications services— — 22,812 — — — — 22,812 
Total cost of services— 82,206 22,812 — — — — 105,018 
Operating expenses:      
Salaries and benefits285,526 98,847 30,935 1,747 36 84,741 — 501,832 
Depreciation and amortization37,610 9,459 42,588 — — 29,043 — 118,699 
Other expenses57,420 14,566 13,327 15,806 135 59,320 — 160,574 
Intersegment expenses, net63,886 14,293 1,732 39,172 — (82,543)(36,540)— 
Total operating expenses444,442 137,165 88,582 56,725 171 90,561 (36,540)781,105 
Income (loss) before income taxes53,375 66,200 (33,188)162,703 (80)201,477 — 450,486 
Income tax (expense) benefit(12,810)(15,888)7,965 (39,049)20 (41,098)— (100,860)
Net income (loss)40,565 50,312 (25,223)123,654 (60)160,379 — 349,626 
Net loss (income) attributable to noncontrolling interests— — — — — 2,817 — 2,817 
Net income (loss) attributable to Nelnet, Inc.$40,565 50,312 (25,223)123,654 (60)163,196 — 352,443 
Total assets as of December 31, 2020$190,297 436,702 — 20,773,968 216,937 1,225,790 (197,534)22,646,160 

(a) On December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. See note 2, “Recent Developments - ALLO Recapitalization,” for a description of the transaction and a summary of the deconsolidation impact. Accordingly, the operating results for the Communications operating segment in the table above are for the period from January 1 2020 through December 21, 2020.
 Year ended December 31, 2019
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Nelnet BankCorporate and Other ActivitiesEliminationsTotal
Total interest income$2,031 9,244 931,963 — 9,232 (3,796)948,677 
Interest expense115 46 — 693,375 — 9,587 (3,796)699,327 
Net interest income (expense)1,916 9,198 238,588 — (355)— 249,350 
Less provision for loan losses— — — 39,000 — — — 39,000 
Net interest income after provision for loan losses1,916 9,198 199,588 — (355)— 210,350 
Other income/expense:
Loan servicing and systems revenue455,255 — — — — — — 455,255 
Intersegment revenue46,751 — — — — — (46,751)— 
Education technology, services, and payment processing revenue— 277,331 — — — — — 277,331 
Communications revenue— — 64,269 — — — — 64,269 
Other9,736 259 1,509 13,088 — 23,327 — 47,918 
Gain on sale of loans— — — 17,261 — — — 17,261 
Gain from deconsolidation of ALLO— — — — — — — — 
Impairment expense and provision for beneficial interests— — — — — — — — 
Derivative settlements, net— — — 45,406 — — — 45,406 
Derivative market value adjustments, net— — — (76,195)— — — (76,195)
Total other income/expense511,742 277,590 65,778 (440)— 23,327 (46,751)831,245 
Cost of services:
Cost to provide education technology, services, and payment processing services— 81,603 — — — — — 81,603 
Cost to provide communications services— — 20,423 — — — — 20,423 
Total cost of services— 81,603 20,423 — — — — 102,026 
Operating expenses:
Salaries and benefits276,136 94,666 21,004 1,545 — 70,152 — 463,503 
Depreciation and amortization34,755 12,820 37,173 — — 20,300 — 105,049 
Other expenses71,064 22,027 15,165 34,445 — 51,571 — 194,272 
Intersegment expenses, net54,325 13,405 2,962 47,362 — (71,303)(46,751)— 
Total operating expenses436,280 142,918 76,304 83,352 — 70,720 (46,751)762,824 
Income (loss) before income taxes77,378 62,267 (30,946)115,796 — (47,748)— 176,745 
Income tax (expense) benefit(18,571)(14,944)7,427 (27,792)— 18,428 — (35,451)
Net income (loss)58,807 47,323 (23,519)88,004 — (29,320)— 141,294 
Net loss (income) attributable to noncontrolling interests— — — — — 509 — 509 
Net income (loss) attributable to Nelnet, Inc.$58,807 47,323 (23,519)88,004 — (28,811)— 141,803 
Total assets as of December 31, 2019$290,311 506,382 303,347 22,128,917 — 627,897 (147,884)23,708,970 
 Year ended December 31, 2018
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Nelnet BankCorporate and Other ActivitiesEliminationsTotal
Total interest income$1,351 4,453 911,502 — 19,944 (12,989)924,266 
Interest expense— 9,987 662,360 — 10,540 (12,989)669,906 
Net interest income (expense)1,351 4,444 (9,983)249,142 — 9,404 — 254,360 
Less provision for loan losses— — — 23,000 — — — 23,000 
Net interest income after provision for loan losses1,351 4,444 (9,983)226,142 — 9,404 — 231,360 
Other income/expense:
Loan servicing and systems revenue440,027 — — — — — — 440,027 
Intersegment revenue47,082 — — — — — (47,082)— 
Education technology, services, and payment processing revenue— 221,962 — — — — — 221,962 
Communications revenue— — 44,653 — — — — 44,653 
Other7,284 — 1,075 12,723 — 33,724 — 54,805 
Gain on sale of loans— — — — — — — — 
Gain from deconsolidation of ALLO— — — — — — — — 
Impairment expense and provision for beneficial interests(3,906)(7,815)— — — — — (11,721)
Derivative settlements, net— — — 70,478 — (407)— 70,071 
Derivative market value adjustments, net— — — (2,159)— 3,173 — 1,014 
Total other income/expense490,487 214,147 45,728 81,042 — 36,490 (47,082)820,811 
Cost of services:
Cost to provide education technology, services, and payment processing services— 59,566 — — — — — 59,566 
Cost to provide communications services— — 16,926 — — — — 16,926 
Total cost of services— 59,566 16,926 — — — — 76,492 
Operating expenses:
Salaries and benefits267,458 81,080 18,779 1,526 — 67,336 — 436,179 
Depreciation and amortization32,074 13,484 23,377 — — 17,960 — 86,896 
Other expenses63,430 20,322 11,900 15,961 — 54,697 — 166,310 
Intersegment expenses, net59,042 10,681 2,578 47,870 — (73,088)(47,082)— 
Total operating expenses422,004 125,567 56,634 65,357 — 66,905 (47,082)689,385 
Income (loss) before income taxes69,834 33,458 (37,815)241,827 — (21,011)— 286,294 
Income tax (expense) benefit(16,954)(8,030)9,075 (58,038)— 15,177 — (58,770)
Net income (loss)52,880 25,428 (28,740)183,789 — (5,834)— 227,524 
Net loss (income) attributable to noncontrolling interests808 — — — — (419)— 389 
Net income (loss) attributable to Nelnet, Inc.$53,688 25,428 (28,740)183,789 — (6,253)— 227,913 
Total assets as of December 31, 2018$226,445 471,719 286,816 23,806,321 — 563,841 (134,174)25,220,968 
v3.20.4
Disaggregated Revenue and Deferred Revenue
12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Disaggregated Revenue and Deferred Revenue Disaggregated Revenue and Deferred Revenue
The following provides additional revenue recognition information for the Company’s fee-based reportable operating segments.
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, number of borrowers serviced for each customer, or number of transactions. Loan servicing requires a significant level of integration and the individual components are not considered distinct. The Company performs various services, including, but not limited to, (i) application processing, (ii) monthly servicing, (iii) conversion processing, and (iv) fulfillment 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 activities are substantially the same. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume 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 the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits. Revenue from any non-refundable up-front fee is recognized ratably over the contract period, as the fee relates to set-up activities that provide no incremental benefit to the customers. 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 receive and consume benefits.
The following table provides disaggregated revenue by service offering:
Year ended December 31,
202020192018
Government servicing - Nelnet$146,798 157,991 157,091 
Government servicing - Great Lakes179,872 185,656 168,298 
Private education and consumer loan servicing32,492 36,788 41,474 
FFELP servicing20,183 25,043 31,542 
Software services41,999 41,077 32,929 
Outsourced services and other30,217 8,700 8,693 
Loan servicing and systems revenue$451,561 455,255 440,027 
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 receive and consume 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 receive and consume benefits. The electronic transfer and credit card processing consideration is recognized as revenue on a gross basis as the Company is the principal in the delivery of the payment processing. The Company has concluded it is the principal as it controls the services before delivery to the educational institution or business, it is primarily responsible for the delivery of the services, and it has discretion in setting prices charged to its customers. In addition, the Company has the unilateral ability to accept or reject a transaction based on criteria established by the Company. The Company is liable for the costs of processing the transactions and records such costs within "cost to provide education technology, services, and payment processing services."
Education technology and services - Education technology and services consideration is determined from individual contracts with customers and is based on the services selected by the customer. Services in K-12 private and faith based schools primarily includes (i) assistance with financial needs assessment, (ii) school information system software that automates administrative processes such as admissions, enrollment, scheduling, cafeteria management, 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 of which corresponds directly with the value provided to the customer based on the performance completed. Services provided to the higher education market include payment technology and processing that allow for electronic billing and payment of campus charges. 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 receive and consume benefits.
The following table provides disaggregated revenue by service offering:
Year ended December 31,
202020192018
Tuition payment plan services$100,674 106,682 85,381 
Payment processing114,304 110,848 84,289 
Education technology and services65,885 58,578 51,155 
Other1,333 1,223 1,137 
Education technology, services, and payment processing revenue$282,196 277,331 221,962 
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 items included in cost to provide education technology, services, and payment processing services include salaries and benefits and third-party professional service 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 of which 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. Revenue received or receivable in advance of the delivery of services is included in deferred revenue. Earned but unbilled usage-based services are recorded in accounts receivable.
The following table provides disaggregated revenue by service offering and customer type. The amounts listed for 2020 reflect activity prior to ALLO’s deconsolidation on December 21, 2020:
Period from January 1 2020 - December 21, 2020Year ended December 31,
20192018
Internet$48,362 38,239 24,069 
Television17,091 16,196 12,949 
Telephone11,037 9,705 7,546 
Other153 129 89 
Communications revenue$76,643 64,269 44,653 
Residential revenue$58,029 48,344 33,434 
Business revenue18,038 15,689 10,976 
Other576 236 243 
Communications revenue$76,643 64,269 44,653 
Cost to provide communications services is primarily associated with television programming costs. The Company has various contracts to obtain television 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 items in cost to provide communications services include connectivity, franchise, and other regulatory costs directly related to providing internet and telephone services.
Other Income
The following table provides the components of "other income" on the consolidated statements of income:
Year ended December 31,
202020192018
Gain on remeasurement of HUDL investment$51,018 — — 
Investment advisory services10,875 2,941 6,009 
Management fee revenue9,421 9,736 7,284 
Borrower late fee income5,194 12,884 12,302 
Income/gains from investments, net2,205 8,356 9,579 
Loss from solar investments(37,423)(2,220)— 
Other16,271 16,221 19,631 
  Other income$57,561 47,918 54,805 

Investment advisory fees - Investment advisory services are provided by WRCM, the Company's 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 providing administrative support and marketing services provided primarily to Great Lakes' former parent company. Revenue is allocated to the distinct service period, based on when each transaction is completed.
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.
Deferred Revenue
Activity in the deferred revenue balance, which is included in "other liabilities" on the consolidated balance sheets, is shown below:
Loan Servicing and SystemsEducation, Technology, Services, and Payment ProcessingCommunicationsCorporate and Other ActivitiesTotal
Balance as of December 31, 2017$4,968 24,164 1,665 1,479 32,276 
Deferral of revenue5,117 77,297 25,325 5,553 113,292 
Recognition of revenue(5,672)(70,905)(24,439)(5,430)(106,446)
Balance as of December 31, 20184,413 30,556 2,551 1,602 39,122 
Deferral of revenue3,585 93,373 36,024 3,505 136,487 
Recognition of revenue(5,286)(91,855)(35,343)(3,479)(135,963)
Balance as of December 31, 20192,712 32,074 3,232 1,628 39,646 
Deferral of revenue2,490 90,183 43,596 3,209 139,478 
Recognition of revenue(3,824)(90,409)(42,903)(3,286)(140,422)
Deconsolidation of ALLO— — (3,925)— (3,925)
Business acquisition— 1,419 — — 1,419 
Balance as of December 31, 2020$1,378 33,267 — 1,551 36,196 
v3.20.4
Major Customer
12 Months Ended
Dec. 31, 2020
Risks and Uncertainties [Abstract]  
Major Customer Major Customer
Nelnet Servicing earns loan servicing revenue from a servicing contract with the Department. Revenue earned by Nelnet Servicing related to this contract was $146.8 million, $158.0 million, and $157.1 million for the years ended December 31, 2020, 2019, and 2018, 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. Revenue earned by Great Lakes related to this contract was $179.9 million and $185.7 million for the years ended December 31, 2020 and 2019, respectively. Revenue of $168.3 million was earned for the period from February 7, 2018 to December 31, 2018.
The current servicing contracts with the Department are currently scheduled to expire on June 14, 2021, but provide the potential for an additional six-month extension at the Department’s discretion through December 14, 2021. The Consolidated Appropriations Act, 2021, signed into law on December 27, 2020, provides that the Department may extend the period of performance for the servicing contracts scheduled to expire on December 14, 2021 for up to two additional years to December 14, 2023.
The Department is conducting a contract procurement process entitled Next Generation Financial Services Environment (“NextGen”) for a new framework for the servicing of all student loans owned by the Department. On January 15, 2019, the Department issued solicitations for certain NextGen components, including the NextGen Enhanced Processing Solution (“EPS”), which is for a technology servicing system and certain processing functions the Department planned to use under NextGen to service the Department's student loan customers, and the NextGen Business Processing Operations (“BPO”), which is for the back office and call center operational functions for servicing the Department's student loan customers.
On June 24, 2020, the Department awarded and signed contracts with five other companies in connection with the BPO solicitation. On July 10, 2020, the Department cancelled the solicitation for the EPS component. In the Department's description of its cancellation of the EPS solicitation component, the Department indicated that it continues to be committed to the goals and vision of NextGen, and that it would be introducing a new solicitation to continue the NextGen strategy in the future. On October 28, 2020, the Department issued a new federal loan servicing solicitation for an Interim Servicing Solution ("ISS"). ISS was a follow-on to the existing contracts, which would award a full system and servicing solution to two providers. Under ISS, the selected providers would have provided the technology platform to host the Department's student loan portfolio; customer service (including contact centers) and back-office processing; digital engagement layer including borrower-facing website and mobile-applications; intake, imaging, and fulfillment; and portfolio-level operations. As the companies awarded BPO contracts are onboarded, contact center and back-office operations would have shifted from the ISS contract to the BPO providers. The
Consolidated Appropriations Act, 2021 contains provisions directing certain aspects of the NextGen process, including that any new federal student loan servicing environment shall provide for the participation of multiple student loan servicers and the allocation of borrower accounts to eligible student loan servicers based on performance, and directed the suspension of awarding any ISS contract for at least 90 days. On January 9, 2021, the Department suspended the ISS solicitation. In the Department’s description of the suspension, it indicated that in consideration of the Consolidated Appropriations Act, 2021, the Government is reassessing its needs and will amend or cancel the subject solicitation in the future.
v3.20.4
Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
The following table provides supplemental balance sheet information related to leases:
As of December 31,
20202019
Operating lease ROU assets, which is included in "other assets" on the
     consolidated balance sheet
$18,301 32,770 
Operating lease liabilities, which is included in "other liabilities" on the
     consolidated balance sheet
$18,733 33,689 
The following table provides components of lease expense:
Year ended December 31,
20202019
Rental expense, which is included in "other expenses" on the
consolidated statements of income (a)
$11,885 11,171 
Rental expense, which is included in "cost to provide communications
services" on the consolidated statements of income (a)
1,997 1,609 
Total operating rental expense$13,882 12,780 
(a)    Includes short-term and variable lease costs, which are immaterial.
Weighted average remaining lease term and discount rate are shown below:
As of December 31,
20202019
Weighted average remaining lease term (years)5.657.29
Weighted average discount rate2.43 %3.93 %
Maturity of lease liabilities are shown below:
2021$6,578 
20223,857 
20232,938 
20241,562 
20251,424 
2026 and thereafter4,437 
Total lease payments20,796 
Imputed interest(2,063)
Total$18,733 
The Company adopted the new lease standard using the effective date as its date of initial application (January 1, 2019) as noted above, and as required, the following disclosure is provided for periods prior to adoption. Future minimum lease payments as of December 31, 2018 are shown below:
2019$9,181 
20208,261 
20215,776 
20223,745 
20232,904 
2024 and thereafter5,479 
Total minimum lease payments$35,346 

Total rental expense incurred by the Company prior to the adoption of the new lease standard was $8.4 million during 2018.
v3.20.4
Defined Contribution Benefit Plan
12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Defined Contribution Benefit Plan Defined Contribution Benefit PlanThe Company has a 401(k) savings plan that covers substantially all of its employees. Employees may contribute up to 100 percent of their pre-tax salary, subject to IRS limitations. The Company matches up to 100 percent on the first 3 percent of contributions and 50 percent on the next 2 percent. The Company made contributions to the plan of $11.6 million, $10.8 million, and $9.8 million during the years ended December 31, 2020, 2019, and 2018, respectively.
v3.20.4
Stock Based Compensation Plans
12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock Based Compensation Plan Stock Based Compensation Plans
Restricted Stock Plan
The following table summarizes restricted stock activity:
Year ended December 31,
202020192018
Non-vested shares at beginning of year549,845 532,336 398,210 
Granted151,639 186,281 279,441 
Vested(114,282)(109,651)(100,035)
Canceled(34,746)(59,121)(45,280)
Non-vested shares at end of year552,456 549,845 532,336 
As of December 31, 2020, there was $16.2 million of unrecognized compensation cost included in equity on the consolidated balance sheet related to restricted stock, which is expected to be recognized as compensation expense in future periods as shown in the table below.
2021$5,912 
20223,787 
20232,488 
20241,604 
20251,009 
2026 and thereafter1,374 
$16,174 
For the years ended December 31, 2020, 2019, and 2018, the Company recognized compensation expense of $7.3 million, $6.4 million, and $6.2 million, respectively, related to shares issued under the restricted stock plan, which is included in "salaries and benefits" on the consolidated statements of income.
Employee Share Purchase Plan
The Company has an employee share purchase plan pursuant to which employees are entitled to purchase Class A common stock from payroll deductions at a 15 percent discount from market value. During the years ended December 31, 2020, 2019, and 2018, the Company recognized compensation expense of $0.4 million, $0.3 million, and $0.3 million, respectively, in connection with issuing 36,687 shares, 33,250 shares, and 28,744 shares, respectively, under this plan, which is included in "salaries and benefits" on the consolidated statements of income.
Non-employee Directors Compensation Plan
The Company has a compensation plan for non-employee directors pursuant to which non-employee directors can elect to receive their annual retainer fees in the form of cash or Class A common stock. If a non-employee director elects to receive Class A common stock, the number of shares of Class A common stock that are awarded is equal to the amount of the annual retainer fee otherwise payable in cash divided by 85 percent of the fair market value of a share of Class A common stock on the date the fee is payable. Non-employee directors who choose to receive Class A common stock may also elect to defer receipt of the Class A common stock until termination of their service on the board of directors.
For the years ended December 31, 2020, 2019, and 2018, the Company recognized $1.2 million, $1.2 million, and $1.0 million, respectively, of expense related to this plan, which is included in "other expenses" on the consolidated statements of income. The following table provides the number of shares awarded under this plan for the years ended December 31, 2020, 2019, and 2018.
Shares issued -
not deferred
Shares issued-
deferred
Total
Year ended December 31, 202012,740 16,513 29,253 
Year ended December 31, 20199,588 11,212 20,800 
Year ended December 31, 20188,029 10,680 18,709 
As of December 31, 2020, a cumulative amount of 209,924 shares have been deferred by directors and will be issued upon the termination of their service on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation.
v3.20.4
Related Parties
12 Months Ended
Dec. 31, 2020
Related Party Transactions [Abstract]  
Related Parties Related Parties (dollar amounts in this note are not in thousands)
Transactions with Union Bank and Trust Company
Union Bank and Trust Company ("Union Bank") is controlled by Farmers & Merchants Investment Inc. (“F&M”), which owns a majority of Union Bank's common stock and a minority share of Union Bank's non-voting non-convertible preferred stock. Michael S. Dunlap, Executive Chairman and a member of the board of directors and a significant shareholder of the Company, along with his spouse and children, owns or controls a significant portion of the stock of F&M, and Mr. Dunlap's sister, Angela L. Muhleisen, along with her spouse and children, also owns or controls a significant portion of F&M stock. Mr. Dunlap serves as a Director and Chairman of F&M, and as a Director of Union Bank. Ms. Muhleisen serves as a Director and Chief Executive Officer of F&M and as a Director, Chairperson, President, and Chief Executive Officer of Union Bank. Union Bank is deemed to have beneficial ownership of a significant number of shares of the Company because it serves in a capacity of trustee or account manager for various trusts and accounts holding shares of the Company, and may share voting and/or investment power with respect to such shares. Mr. Dunlap and Ms. Muhleisen beneficially own a significant percent of the voting rights of the Company's outstanding common stock.
The Company has entered into certain contractual arrangements with Union Bank. These transactions are summarized below.
Loan Purchases
The Company purchased $144.9 million (par value) and $67.7 million (par value) of private education loans from Union Bank in 2020 and 2019, respectively. There were no private education loan purchases in 2018. In addition, the Company purchased $32.6 million (par value) and $74.7 million (par value) of consumer loans from Union Bank in 2019 and 2018, respectively. There were no consumer loan purchases in 2020. The net premiums paid by the Company on the loan acquisitions was $2.6 million and $1.2 million in 2020 and 2019, respectively. The premiums paid by the Company in 2018 were not significant.
The Company has an agreement with Union Bank in which the Company provides marketing, origination, and loan servicing services to Union Bank related to private education loans. Union Bank paid $2.0 million and $1.8 million in marketing fees to the Company in 2020 and 2019, respectively, under this agreement. Marketing fees paid in 2018 were not significant.
Loan Servicing
The Company serviced $331.3 million, $395.5 million, and $405.5 million of FFELP and private education loans for Union Bank as of December 31, 2020, 2019, and 2018, respectively. Servicing and origination fee revenue earned by the Company from servicing loans for Union Bank was $0.7 million, $0.6 million, and $0.5 million for the years ended December 31, 2020, 2019, and 2018, respectively.
Funding - Participation Agreements
The Company maintains an agreement with Union Bank, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in student loans (the “FFELP Participation Agreement”). The Company uses this facility as a source to fund FFELP student loans. As of December 31, 2020 and 2019, $874.2 million and $749.6 million, respectively, of loans were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement. The agreement automatically renews annually and is terminable by either party upon five business days' notice. This agreement provides beneficiaries of Union Bank's grantor trusts with access to investments in interests in student loans, while providing liquidity to the Company on a short-term basis. The Company can participate loans to Union Bank to the extent of availability under the grantor trusts, up to $900 million or an amount in excess of $900 million if mutually agreed to by both parties. Loans participated under this agreement have been accounted for by the Company as loan sales. Accordingly, the participation interests sold are not included on the Company's consolidated balance sheets.
The Company maintains an agreement with Union Bank, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in student loan asset-backed securities. As of December 31, 2020, $118.6 million of student loan asset-backed securities were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement. The agreement automatically renews annually and is terminable by either party upon five business days' notice. The Company can participate student loan asset-backed securities to Union Bank to the extent of availability under the grantor trusts, up to $100.0 million or an amount in excess of $100.0 million if mutually agreed to by both parties. Student loan asset-backed securities under this agreement have been accounted for by the Company as a secured borrowing.
Funding - Real Estate
401 Building, LLC (“401 Building”) is an entity that was established in 2015 for the sole purpose of acquiring, developing, and owning a commercial real estate property in Lincoln, Nebraska. The Company owns 50% of 401 Building. On May 1, 2018, Union Bank, as lender, received a $1.5 million promissory note from 401 Building. The promissory note carries an interest rate of 6.00% and has a maturity date of December 1, 2032.
330-333, LLC (“330-333”) is an entity that was established in 2016 for the sole purpose of acquiring, developing, and owning a commercial real estate property in Lincoln, Nebraska. The Company owns 50% of 330-333. On October 22, 2019, Union Bank, as lender, received a $162,000 promissory note from 330-333. The promissory note carries an interest rate of 6.00% and has a maturity date of December 1, 2032.
12100.5 West Center, LLC ("West Center") is an entity that was established in 2016 for the sole purpose of acquiring, developing, and owning a commercial real estate property in Omaha, Nebraska. The Company owns 33.33% of West Center. On October 29, 2019, Union Bank, as lender, received a $2.9 million promissory note from West Center. The promissory note carries an interest rate of 3.85% and has a maturity date of October 30, 2024.
Operating Cash Accounts
The majority of the Company's cash operating accounts are maintained at Union Bank. The Company also invests amounts in the Short term Federal Investment Trust (“STFIT”) of the Student Loan Trust Division of Union Bank, which are included in “cash and cash equivalents - held at a related party” and “restricted cash - due to customers” on the accompanying consolidated balance sheets. As of December 31, 2020 and 2019, the Company had $285.6 million and $390.5 million, respectively, invested in the STFIT or deposited at Union Bank in operating accounts, of which $197.6 million and $270.5 million as of December 31, 2020 and 2019, respectively, represented cash collected for customers. Interest income earned by the Company on the amounts
invested in the STFIT and in cash operating accounts for the years ended December 31, 2020, 2019, and 2018, was $0.5 million, $1.6 million, and $1.0 million, respectively.
529 Plan
The Company provides certain 529 Plan administration services to certain college savings plans (the “College Savings Plans”) through a contract with Union Bank, as the program manager. Union Bank is entitled to a fee as program manager pursuant to its program management agreement with the College Savings Plans. For the years ended December 31, 2020, 2019, and 2018, the Company has received fees of $1.3 million, $3.7 million, and $3.2 million, respectively, from Union Bank related to the administration services provided to the College Savings Plans.
During 2020, certain call center services were provided by the Company to Union Bank for College Savings Plan clients. Fees received from Union Bank for such services were not significant.
Additionally, Union Bank, as the program manager for the College Savings Plans, has agreed to allocate plan bank deposits to Nelnet Bank. As of December 31, 2020, Nelnet Bank had received $48.4 million in deposits from the funds offered under the College Savings Plans.
Lease Arrangements
Union Bank leases approximately 4,000 square feet in the Company's corporate headquarters building. Union Bank paid the Company approximately $80,000, $79,000, and $76,000 for commercial rent and storage income during 2020, 2019, and 2018, respectively. The lease agreement expires on June 30, 2023.
Other Fees Paid to Union Bank
During the years ended December 31, 2020, 2019, and 2018, the Company paid Union Bank approximately $279,000, $213,000, and $128,000, respectively, in cash management, trustee, and health savings account maintenance fees.
Other Fees Received from Union Bank
During the years ended December 31, 2020, 2019, and 2018, Union Bank paid the Company approximately $317,000, $317,000, and $231,000, respectively, under certain employee sharing arrangements. During the years ended December 31, 2020, 2019, and 2018, Union Bank paid the Company approximately $273,000, $92,000, and $34,000, respectively, for communications services. In addition, during the years ended December 31, 2019 and 2018, Union Bank paid the Company approximately $1,000 and $4,000 in payment processing fees (net of merchant fees of approximately $4,000 and $13,000), respectively. No such fees were received from Union Bank during 2020.
401(k) Plan Administration
Union Bank administers the Company's 401(k) defined contribution plan. Fees paid to Union Bank to administer the plan are paid by the plan participants and were approximately $447,000, $366,000, and $313,000 during the years ended December 31, 2020, 2019, and 2018, respectively.
Investment Services
Union Bank has established various trusts whereby Union Bank serves as trustee for the purpose of purchasing, holding, managing, and selling investments in student loan asset-backed securities. WRCM, an SEC-registered investment advisor and a subsidiary of the Company, has a management agreement with Union Bank under which WRCM performs various advisory and management services on behalf of Union Bank with respect to investments in securities by the trusts, including identifying securities for purchase or sale by the trusts. The agreement provides that Union Bank will pay to WRCM annual fees of 25 basis points on the outstanding balance of the investments in the trusts. As of December 31, 2020, the outstanding balance of investments in the trusts was $1.2 billion. In addition, Union Bank will pay additional fees to WRCM of up to 50 percent of the gains from the sale of securities from the trusts or securities being called prior to the full contractual maturity. For the years ended December 31, 2020, 2019, and 2018, the Company earned $9.8 million, $1.8 million, and $4.5 million, respectively, of fees under this agreement.
WRCM also has management agreements with Union Bank under which it is designated to serve as investment advisor with respect to the assets (principally Nelnet stock) within several trusts established by Mr. Dunlap and his spouse, and Ms. Muhleisen and her spouse. Union Bank serves as trustee for the trusts. Per the terms of the agreements, Union Bank pays
WRCM five basis points of the aggregate value of the assets of the trusts as of the last day of each calendar quarter. As of December 31, 2020, WRCM was the investment advisor with respect to a total 480,000 shares and 4.8 million shares of the Company's Class A and Class B common stock, respectively, held directly by these trusts. For the years ended December 31, 2020, 2019, and 2018, the Company earned approximately $141,000, $144,000, and $141,000, respectively, of fees under these agreements.
WRCM has established private investment funds for the primary purpose of purchasing, selling, investing, and trading, directly or indirectly, in student loan asset-backed securities, and to engage in financial transactions related thereto. Mr. Dunlap, Jeffrey R. Noordhoek (an executive officer of the Company), Ms. Muhleisen and her spouse, and WRCM have invested in certain of these funds. Based upon the current level of holdings by non-affiliated limited partners, the management agreements provide non-affiliated limited partners the ability to remove WRCM as manager without cause. WRCM earns 50 basis points (annually) on the outstanding balance of the investments in these funds, of which WRCM pays approximately 50 percent of such amount to Union Bank as custodian. As of December 31, 2020, the outstanding balance of investments in these funds was $134.3 million. The Company paid Union Bank $0.3 million in each of 2020, 2019, and 2018, as custodian of the funds.
Nelnet Bank
Upon its establishment on November 2, 2020, Nelnet Bank entered into agreements with Union Bank in which Union Bank provides investment custodial services and correspondent bank services. Fees paid during 2020 by Nelnet Bank to Union Bank under these agreements were not significant.
Transactions with F&M
The Company, F&M, and the holding company of BankFirst of Norfolk, Nebraska ("BankFirst"), of which Mr. Dunlap is a member of the Board of Directors, have co-invested a total of $10.3 million, $4.6 million, and $1.7 million, respectively, in a Company-managed limited liability company that invests in renewable energy (solar). As part of these transactions, the Company receives management and performance fees under a management agreement. For the years ended December 31, 2020 and 2019, the Company earned approximately $46,000 and $69,000 and approximately $15,000 and $69,000 of management fees from F&M and BankFirst, respectively, under this agreement.
Transactions with Union Financial Services (“UFS”)
UFS is owned 50 percent by Mr. Dunlap. Historically, the Company owned a 65 percent interest in an aircraft due to the frequent business travel needs of the Company's executives and the limited availability of commercial flights in Lincoln, Nebraska, where the Company's headquarters are located. UFS owned the remaining interest in the same aircraft. On December 31, 2018, the Company purchased an additional 17.5 percent interest in the aircraft from UFS for $717,500, which reflected what available information indicated was the aircraft's fair market value at the time of sale. As a result of this transaction, the Company's ownership in the aircraft increased to 82.5 percent. On December 31, 2018, UFS also contributed a 17.5 percent interest in the aircraft to an entity owned by Mr. Dunlap.
Transactions with Agile Sports Technologies, Inc. (doing business as "Hudl")
David Graff, who has served on the Company's Board of Directors since 2014, is CEO, co-founder, and a director of Hudl. On May 20, 2020, the Company made an additional equity investment in Hudl, as one of the participants in an equity raise completed by Hudl. See Note 7, “Investments” for additional information on this equity raise. The Company and Mr. Dunlap, along with his children, currently hold combined direct and indirect equity ownership interests in Hudl of 19.6% and 3.7%, respectively, which did not materially change as a result of the May 2020 transaction. The Company's and Mr. Dunlap's direct and indirect equity ownership interests in Hudl consist of preferred stock with certain liquidation preferences that are considered substantive. Accordingly, for accounting purposes, the Company's and Mr. Dunlap's equity ownership interests are not considered in-substance common stock and the Company is accounting for its equity investment in Hudl using the measurement alternative method.
On July 26, 2019, the Company, as lender, received a $16.0 million promissory note from Hudl. The promissory note carried a 14 percent interest rate and was due 180 days from the date of issuance. In connection with this promissory note, the Company entered into a Subordination Agreement with Union Bank, effective as of July 26, 2019, which required the Company to subordinate its promissory note from Hudl to existing notes Union Bank holds from Hudl. The $16.0 million promissory note from Hudl was paid in full to the Company in August 2019.
The Company makes investments to further diversify the Company both within and outside of its historical core education-related businesses, including investments in real estate. Recent real estate investments have been focused on the development of commercial properties in the Midwest, and particularly in Lincoln, Nebraska, where the Company's headquarters are located. One investment includes the development of a building in Lincoln's Haymarket District that is the headquarters of Hudl, in which Hudl is the primary tenant in this building.
Transaction with Assurity Life Insurance Company ("Assurity")
Thomas Henning, who has served on the Company's Board of Directors since 2003, is the President and Chief Executive Officer of Assurity. During the years ended December 31, 2020, 2019, and 2018, Nelnet Business Services, a subsidiary of the Company, paid $1.8 million, $1.7 million, and $1.7 million, respectively, to Assurity for insurance premiums for insurance on certain tuition payment plans. As part of providing the tuition payment plan insurance to Nelnet Business Services, Assurity entered into a reinsurance agreement with the Company's insurance subsidiary, under which Assurity paid the Company's insurance subsidiary reinsurance premiums of $1.4 million, $1.3 million, and $1.3 million in 2020, 2019, and 2018, respectively, and the Company's insurance subsidiary paid claims on such reinsurance to Assurity of $1.0 million, $0.9 million, and $0.9 million in 2020, 2019, and 2018, respectively. In addition, Assurity pays Nelnet Business Services a partial refund annually based on claim experience, which was approximately $64,000, $56,000, and $84,000 for the years ended December 31, 2020, 2019, and 2018, respectively.
During 2020, Assurity invested approximately $1.2 million in a Company-managed limited liability company that invests in renewable energy (solar). As part of this transaction, the Company receives management and performance fees under a management agreement. During the year ended December 31, 2020, the Company earned approximately $12,000 in management fees from Assurity under this agreement.
v3.20.4
Fair Value
12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the year ended December 31, 2020.
 As of December 31, 2020As of December 31, 2019
 Level 1Level 2TotalLevel 1Level 2Total
Assets:   
Investments (a):
Student loan asset-backed and other debt securities - available-for-sale$— 348,504 348,504 — 52,597 52,597 
Equity securities10,114 — 10,114 — 
Equity securities measured at net asset value (b)31,927 12,894 
Debt securities - available-for-sale103 — 103 104 — 104 
Total investments10,217 348,504 390,648 110 52,597 65,601 
      Total assets$10,217 348,504 390,648 110 52,597 65,601 

(a)    Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and include investments traded on an active exchange, such as the New York Stock Exchange, and corporate bonds, mortgage-backed securities, U.S. government bonds, and U.S. Treasury securities that trade in active markets. Level 2 investments include student loan asset-backed securities and municipal bonds. The fair value for the student loan asset-backed securities is determined using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk.
(b)    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 December 31, 2020
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$20,454,132 19,391,045 — — 20,454,132 
Accrued loan interest receivable794,611 794,611 — 794,611 — 
Cash and cash equivalents121,249 121,249 121,249 — — 
Investments (at fair value)390,648 390,648 10,217 348,504 — 
Beneficial interest in loan securitizations 58,709 58,331 — — 58,709 
Restricted cash553,175 553,175 553,175 — — 
Restricted cash – due to customers283,971 283,971 283,971 — — 
Financial liabilities:  
Bonds and notes payable19,270,810 19,320,726 — 19,270,810 — 
Accrued interest payable28,701 28,701 — 28,701 — 
Bank deposits54,599 54,633 48,422 6,177 — 
Due to customers301,471 301,471 301,471 — — 

 As of December 31, 2019
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$21,477,630 20,669,371 — — 21,477,630 
Accrued loan interest receivable733,497 733,497 — 733,497 — 
Cash and cash equivalents133,906 133,906 133,906 — — 
Investments (at fair value)65,601 65,601 110 52,597 — 
Beneficial interest in loan securitizations33,258 33,187 — — 33,258 
Restricted cash650,939 650,939 650,939 — — 
Restricted cash – due to customers437,756 437,756 437,756 — — 
Financial liabilities:  
Bonds and notes payable20,479,095 20,529,054 — 20,479,095 — 
Accrued interest payable47,285 47,285 — 47,285 — 
Due to customers437,756 437,756 437,756 — — 
The methodologies for estimating the fair value of financial assets and liabilities that are measured at fair value on a recurring basis are previously discussed. The remaining financial assets and liabilities were estimated using the following methods and assumptions:
Loans Receivable
Fair values for loans receivable were determined by modeling loan cash flows using stated terms of the assets and internally-developed assumptions. The significant assumptions used to project cash flows are prepayment speeds, default rates, cost of funds, required return on equity, and future interest rate and index relationships. A number of significant inputs into the models are internally derived and not observable to market participants.
Beneficial Interest in Loan Securitizations
Fair values for beneficial interest in loan securitizations were determined by modeling securitization cash flows and internally-developed assumptions. The significant assumptions used to project cash flows are prepayment speeds, default rates, cost of funds, required return on equity, and future interest rate and index relationships. A number of significant inputs into the models are internally derived and not observable to market participants.
Cash and Cash Equivalents, Restricted Cash, Restricted Cash – Due to Customers, Accrued Loan Interest Receivable, Accrued Interest Payable, and Due to Customers
The carrying amount approximates fair value due to the variable rate of interest and/or the short maturities of these instruments.
Bonds and Notes Payable
The fair value of bonds and notes payable was determined from quotes from broker-dealers or through standard bond pricing models using the stated terms of the borrowings, observable yield curves, market credit spreads, and weighted average life of underlying collateral. Fair value adjustments for unsecured corporate debt are made based on indicative quotes from observable trades.
Bank Deposits
Some of the Company’s deposits are fixed-rate and the fair value for these deposits are estimated using discounted cash flows based on rates currently offered for deposits of similar maturities. These are level 2 valuations. The fair value of the remaining deposits equal the amounts payable on demand at the balance sheet date and are reported at their carrying value. These are level 1 valuations.
Limitations
The fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Therefore, the calculated fair value estimates in many instances cannot be substantiated by comparison to independent markets and, in many cases, may not be realizable in a current sale of the instrument. Changes in assumptions could significantly affect the estimates.
v3.20.4
Legal Proceedings
12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings Legal ProceedingsThe Company is subject to various claims, lawsuits, and proceedings that arise in the normal course of business. These matters frequently involve claims by student loan borrowers disputing the manner in which their student loans have been serviced or the accuracy of reports to credit bureaus, claims by student loan borrowers or other consumers alleging that state or Federal consumer protection laws have been violated in the process of collecting loans or conducting other business activities, and disputes with other business entities. In addition, from time to time, the Company receives information and document requests from state or federal regulators concerning its business practices. The Company cooperates with these inquiries and responds to the requests. While the Company cannot predict the ultimate outcome of any regulatory examination, inquiry, or investigation, the Company believes its activities have materially complied with applicable law, including the Higher Education Act, the rules and regulations adopted by the Department thereunder, and the Department's guidance regarding those rules and regulations. On the basis of present information, anticipated insurance coverage, and advice received from counsel, it is the opinion of the Company's management that the disposition or ultimate determination of these claims, lawsuits, and proceedings will not have a material adverse effect on the Company's business, financial position, or results of operations.
v3.20.4
Quarterly Financial Information (Unaudited)
12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information (Unaudited) Quarterly Financial Information (Unaudited)
2020
First
quarter
Second
quarter
Third
quarter
Fourth
quarter
Net interest income$55,073 66,635 81,322 86,556 
(Provision) negative provision for loan losses(76,299)(2,999)5,821 10,116 
Net interest income (loss) after provision (negative provision) for loan losses(21,226)63,636 87,143 96,672 
Loan servicing and systems revenue112,735 111,042 113,794 113,990 
Education technology, services, and payment processing revenue83,675 59,304 74,121 65,097 
Communications revenue18,181 18,998 20,211 19,253 
Other8,281 60,127 1,502 (12,350)
Gain on sale of loans18,206 — 14,817 — 
Gain from deconsolidation of ALLO— — — 258,588 
Impairment expense and provision for beneficial interests(34,087)(332)— 9,696 
Derivative market value adjustments and derivative settlements, net(16,365)1,910 1,049 (11,059)
Cost to provide education technology, services, and payment processing services(22,806)(15,376)(25,243)(18,782)
Cost to provide communications services(5,582)(5,743)(5,914)(5,573)
Salaries and benefits(119,878)(119,247)(126,096)(136,612)
Depreciation and amortization(27,648)(29,393)(30,308)(31,350)
Other expenses(43,384)(37,052)(34,744)(45,391)
Income tax benefit (expense)10,133 (21,264)(19,156)(70,573)
Net (loss) income(39,765)86,610 71,176 231,606 
Net (income) loss attributable to noncontrolling interests(767)(128)327 3,385 
Net (loss) income attributable to Nelnet, Inc.$(40,532)86,482 71,503 234,991 
Earnings per common share:
Net (loss) income attributable to Nelnet, Inc. shareholders - basic and diluted$(1.01)2.21 1.86 6.10 
2019
First quarterSecond quarterThird quarterFourth quarter
Net interest income$58,816 59,825 66,457 64,252 
Provision for loan losses(7,000)(9,000)(10,000)(13,000)
Net interest income after provision for loan losses51,816 50,825 56,457 51,252 
Loan servicing and systems revenue114,898 113,985 113,286 113,086 
Education technology, services, and payment processing revenue79,159 60,342 74,251 63,578 
Communications revenue14,543 15,758 16,470 17,499 
Other9,067 14,440 13,439 10,973 
Gain on sale of loans— 1,712 — 15,549 
Derivative market value adjustments and derivative settlements, net(11,539)(24,088)1,668 3,170 
Cost to provide education technology, services, and payment processing services(21,059)(15,871)(25,671)(19,002)
Cost to provide communications services(4,759)(5,101)(5,236)(5,327)
Salaries and benefits(111,059)(111,214)(116,670)(124,561)
Depreciation and amortization(24,213)(24,484)(27,701)(28,651)
Other expenses(43,816)(45,417)(58,329)(46,710)
Income tax expense(11,391)(6,209)(8,829)(9,022)
Net income41,647 24,678 33,135 41,834 
Net loss (income) attributable to noncontrolling interests(56)(59)77 546 
Net income attributable to Nelnet, Inc.$41,591 24,619 33,212 42,380 
Earnings per common share:
Net income attributable to Nelnet, Inc. shareholders - basic and diluted$1.03 0.61 0.83 1.06 
v3.20.4
Condensed Parent Company Financial Statements
12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
Condensed Parent Company Financial Statements Condensed Parent Company Financial Statements
The following represents the condensed balance sheets as of December 31, 2020 and 2019 and condensed statements of income, comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2020 for Nelnet, Inc.
The Company is limited in the amount of funds that can be transferred to it by its subsidiaries through intercompany loans, advances, or cash dividends. These limitations relate to the restrictions by trust indentures under the lending subsidiaries debt financing arrangements.
Balance Sheets
(Parent Company Only)
As of December 31, 2020 and 2019
20202019
Assets:
Cash and cash equivalents$69,687 73,144 
Investments and notes receivable707,332 137,229 
Investment in subsidiary debt38,903 13,818 
Restricted cash93,271 9,567 
Investment in subsidiaries1,963,413 2,181,122 
Notes receivable from subsidiaries21,209 42,552 
Other assets115,631 100,059 
Total assets$3,009,446 2,557,491 
Liabilities:
Notes payable$236,317 67,655 
Other liabilities140,710 97,952 
Total liabilities377,027 165,607 
Equity:
Nelnet, Inc. shareholders' equity:
Common stock384 398 
Additional paid-in capital3,794 5,715 
Retained earnings2,621,762 2,377,627 
Accumulated other comprehensive earnings6,102 2,972 
Total Nelnet, Inc. shareholders' equity2,632,042 2,386,712 
Noncontrolling interest377 5,172 
Total equity2,632,419 2,391,884 
Total liabilities and shareholders' equity$3,009,446 2,557,491 
Statements of Income
(Parent Company Only)
Years ended December 31, 2020, 2019, and 2018
 202020192018
Investment interest income$4,110 4,925 17,707 
Interest expense on bonds and notes payable3,179 9,588 9,270 
Net interest income (expense)931 (4,663)8,437 
Other income/expense:   
Other income40,904 8,384 13,944 
Gain from debt repurchases1,962 136 359 
Equity in subsidiaries income
132,101 182,346 158,364 
Gain from deconsolidation of ALLO258,588 — — 
Derivative market value adjustments and derivative settlements, net
(24,465)(30,789)71,085 
Total other income/expense409,090 160,077 243,752 
Operating expenses14,006 19,561 4,795 
Income before income taxes396,015 135,853 247,394 
Income tax (expense) benefit(43,577)5,950 (19,481)
Net income352,438 141,803 227,913 
Net loss attributable to noncontrolling interest
— — 
Net income attributable to Nelnet, Inc.
$352,443 141,803 227,913 


Statements of Comprehensive Income
(Parent Company Only)
Years ended December 31, 2020, 2019, and 2018
202020192018
Net income$352,438 141,803 227,913 
Other comprehensive income (loss):
Available-for-sale securities:
Unrealized holding gains (losses) arising during period, net6,637 (1,199)1,056 
Reclassification adjustment for gains recognized in net
income, net of losses
(2,521)— (978)
Income tax effect(986)288 (69)
Total other comprehensive income (loss)3,130 (911)
Comprehensive income355,568 140,892 227,922 
Comprehensive loss attributable to noncontrolling interest— — 
Comprehensive income attributable to Nelnet, Inc.$355,573 140,892 227,922 
Statements of Cash Flows
(Parent Company Only)
Years ended December 31, 2020, 2019, and 2018
202020192018
Net income attributable to Nelnet, Inc.$352,443 141,803 227,913 
Net loss attributable to noncontrolling interest(5)— — 
Net income352,438 141,803 227,913 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization534 467 442 
Derivative market value adjustments28,144 76,195 (1,014)
(Payments to) proceeds from termination of derivative instruments, net— (12,530)10,283 
(Payments to) proceeds from clearinghouse - initial and variation margin, net(26,747)(70,685)40,382 
Equity in earnings of subsidiaries(132,101)(182,346)(158,364)
Gain from deconsolidation of ALLO, including cash impact(287,579)— — 
Gain from debt repurchases(1,962)(136)(359)
Gain from investments, net(46,019)(3,969)(11,177)
Deferred income tax expense (benefit)23,747 (19,183)21,814 
Non-cash compensation expense16,739 6,781 6,539 
Impairment expense7,784 — — 
Other(329)(481)(4,770)
(Increase) decrease in other assets(17,410)(10,672)25,252 
Increase (decrease) in other liabilities26,009 29,384 (9,621)
Net cash (used in) provided by operating activities(56,752)(45,372)147,320 
Cash flows from investing activities:
Purchases of available-for-sale securities(342,563)— (46,382)
Proceeds from sales of available-for-sale securities168,555 — 75,605 
Capital distributions/contributions from/to subsidiaries, net99,830 449,602 (334,280)
Decrease (increase) in notes receivable from subsidiaries21,343 14,421 (31,325)
(Purchases of) proceeds from subsidiary debt, net(25,085)— 61,841 
Increase in guaranteed payment from subsidiary— — (70,270)
Purchases of other investments(54,637)(47,106)(28,610)
Proceeds from other investments8,564 27,926 7,783 
Net cash (used in) provided by investing activities(123,993)444,843 (365,638)
Cash flows from financing activities:
Payments on notes payable(20,381)(361,272)(8,651)
Proceeds from issuance of notes payable190,520 60,000 300,000 
Payments of debt issuance costs(49)(1,129)(827)
Dividends paid(31,778)(29,485)(26,839)
Repurchases of common stock(73,358)(40,411)(45,331)
Proceeds from issuance of common stock1,653 1,552 1,359 
Acquisition of noncontrolling interest(600)— (13,449)
Issuance of noncontrolling interest194,985 878 13 
Net cash provided by (used in) financing activities260,992 (369,867)206,275 
Net increase (decrease) in cash, cash equivalents, and restricted cash80,247 29,604 (12,043)
Cash, cash equivalents, and restricted cash, beginning of period82,711 53,107 65,150 
Cash, cash equivalents, and restricted cash, end of period$162,958 82,711 53,107 
Cash disbursements made for:
Interest$2,577 9,501 8,628 
Income taxes, net of refunds and credits$29,685 17,672 473 
Noncash investing and financing activities:
Recapitalization of accrued interest payable to accrued guaranteed payment$— — 6,674 
Recapitalization of note payable to guaranteed payment$— — 186,429 
Recapitalization of guaranteed payment to investment in subsidiary$— — 273,360 
Contribution to subsidiary, net$49,066 — — 
v3.20.4
Summary of Significant Accounting Policies and Practices (Policies)
12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Consolidation
Consolidation
The consolidated financial statements include the accounts of Nelnet, Inc. and its consolidated subsidiaries. In addition, the accounts of all variable interest entities (“VIEs”) of which the Company has determined that it is the primary beneficiary are included in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation.
Variable Interest Entities
Variable Interest Entities
The Company assesses its partnerships and joint ventures to determine if the entity meets the qualifications of a VIE. The Company performs a qualitative assessment of each VIE to determine if it is the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the
VIE. The Company examines specific criteria and uses judgment when determining whether an entity is a VIE and whether it is the primary beneficiary. The Company performs this review initially at the time it enters into a partnership or joint venture agreement and reassess upon reconsideration events.
VIEs - Consolidated
The Company is required to consolidate VIEs in which it has determined it is the primary beneficiary.
The Company's education and other lending subsidiaries are engaged in the securitization of finance assets. These lending subsidiaries hold beneficial interests in eligible loans, subject to creditors with specific interests. The liabilities of the Company's lending subsidiaries are not the direct obligations of Nelnet, Inc. or any of its other subsidiaries. Each lending subsidiary is structured to be bankruptcy remote, meaning that it should not be consolidated in the event of bankruptcy of the parent company or any other subsidiary. The Company is generally the administrator and master servicer of the securitized assets held in its lending subsidiaries and owns the residual interest of the securitization trusts. For accounting purposes, the transfers of loans to the securitization trusts do not qualify as sales. Accordingly, all the financial activities and related assets and liabilities, including debt, of the securitizations are reflected in the Company's consolidated financial statements and are summarized as supplemental information on the balance sheet.
VIEs - Not consolidated
The Company is not required to consolidate VIEs in which it has determined it is not the primary beneficiary.
The Company makes investments in entities that promote renewable energy sources (solar). The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These investments are included in "investments" on the consolidated balance sheets and accounted for under the HLBV method of accounting. The carrying value of these investments are reduced by tax credits earned when the solar project is placed in service. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are included in “other liabilities” on the consolidated balance sheet. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment, unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. The tax credit recapture period ratably decreases over five years from when the project is placed in service. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the energy-producing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits.
Accounting Standards Adopted in 2020
Accounting Standard Adopted in 2020
In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments – Credit Losses (“ASC 326”), which replaces the incurred loss methodology with an expected loss methodology that is referred to as the
current expected credit loss ("CECL") methodology. Since its original issuance in 2016, the FASB has issued several updates to the original ASU.
The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for financial assets measured at amortized cost at the time the financial asset is originated or acquired, including, for the Company, loans receivable, accounts receivable, and held-to-maturity beneficial interests in loan securitizations. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. For available-for-sale debt securities where fair value is less than amortized cost, credit-related impairment, if any, is recognized through an allowance for credit losses and adjusted each period for changes in credit risk.
On January 1, 2020, the Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 (recognizing estimated credit losses expected to occur over the asset's remaining life) while prior period amounts continue to be reported in accordance with previously applicable GAAP (recognizing estimated credit losses using an incurred loss model); therefore, the comparative information for 2019 is not comparable to the information presented for 2020. Adoption of the new guidance primarily impacted the allowance for loan losses related to the Company's loan portfolio. Upon adoption, the Company recorded an increase to the allowance for loan losses of $91.0 million, which included a reclassification of the non-accretable discount balance and premiums related to loans purchased with evidence of credit deterioration, and decreased retained earnings, net of tax, by $18.9 million. The following table illustrates the impact of the adoption of ASC 326.
Balances at
December 31, 2019
Impact of ASC 326 adoptionBalances at
January 1, 2020
Assets
Loans and accrued interest receivable, net of allowance
Loans receivable$20,798,719 — 20,798,719 
Accrued interest receivable733,497 — 733,497 
Loan discount, net(35,036)33,790 (1,246)
Non-accretable discount(32,398)32,398 — 
Allowance for loan losses(61,914)(91,014)(152,928)
Loans and accrued interest receivable, net of allowance21,402,868 (24,826)21,378,042 
Liabilities
Other liabilities (deferred taxes)303,781 (5,958)297,823 
Equity
Retained earnings2,377,627 (18,868)2,358,759 

The Company adopted ASC 326 using the prospective transition approach for loans receivable purchased with credit deterioration ("PCD") that were previously classified as purchased credit impaired ("PCI"). In accordance with the standard, the Company did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the unamortized cost basis of the PCD assets were adjusted to reflect the addition of $32.4 million in the allowance for loan losses (as reflected in the table above). The remaining noncredit premium on these loans as of January 1, 2020 (based on the adjusted amortized cost basis) will be amortized into interest income over the life of the loans. Changes to the allowance for loan losses on these loans after adoption are recorded through provision expense.
Loans Receivable / Allowance for Loan Losses
Allowance for Loan Losses
The allowance for loan losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans as of the balance sheet date. Such allowance is based on the credit losses expected to arise over the life of the asset which includes consideration of prepayments. Loans are charged off when management determines the loan is uncollectible. Charge-offs are recognized as a reduction to the allowance for loan losses. Expected
recoveries of amounts previously charged off, not to exceed the aggregate of the amount previously charged off, are included in the estimate of the allowance for loan losses at the balance sheet date.
The Company aggregates loans with similar risk characteristics into pools to estimate its expected credit losses. The Company evaluates such pooling decisions each quarter and makes adjustments as risk characteristics change.
The Company determines its estimated credit losses for the following financial assets as follows:
Loans receivable
Management has determined that the federally insured, private education, and consumer loan portfolios each meet the definition of a portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for loan losses. Accordingly, the portfolio segment disclosures are presented on this basis in note 4 for each of these portfolios. The Company does not disaggregate its portfolio segment loan portfolios into classes of financing receivables.
The Company utilizes an undiscounted cash flow methodology in determining its lifetime expected credit losses on its federally insured and private education loan portfolios and a remaining life methodology for its consumer loan portfolio. For the undiscounted cash flow models, the expected credit losses are the product of multiplying the Company’s estimates of probability of default and loss given default and the exposure of default over the expected life of the loans. For the remaining life method, the expected credit losses are the product of multiplying the Company’s estimated net loss rate by the exposure at default over the expected life of the loans. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current economic conditions, and reasonable and supportable forecasts. The Company has determined that, for modeling current expected credit losses, the Company can reasonably estimate expected losses that incorporate current economic conditions and forecasted probability weighted economic scenarios up to a one-year period. Macroeconomic factors used in the models include such variables as unemployment rates, gross domestic product, and consumer price index. After the "reasonable and supportable" period, the Company reverts to its actual long-term historical loss experience in the historical observation period. The Company uses a straight line reversion method over two years. Historical credit loss experience provides the basis for the estimation of expected credit losses. A portion of the allowance is comprised of qualitative adjustments to historical loss experience.
Qualitative adjustments consider the following factors, as applicable, for each of the Company’s loan portfolios: student loans in repayment versus those in nonpaying status; delinquency status; type of private education or consumer loan program; trends in defaults in the portfolio based on Company and industry data; past experience; trends in federally insured student loan claims rejected for payment by guarantors; changes in federal student loan programs; and other relevant qualitative factors.
Changes in the allowance for the year ended December 31, 2020 were primarily a result of the adoption of ASC 326 and changes in macroeconomic factors that were impacted by COVID-19.
The federal government guarantees 97 percent of the principal of and the interest on federally insured student loans disbursed on and after July 1, 2006 (and 98 percent for those loans disbursed on and after October 1, 1993 and prior to July 1, 2006), which limits the Company’s loss exposure on the outstanding balance of the Company’s federally insured portfolio. Federally insured student loans disbursed prior to October 1, 1993 are fully insured. Private education and consumer loans are unsecured, with neither a government nor a private insurance guarantee. Accordingly, the Company bears the full risk of loss on these loans if the borrower and co-borrower, if applicable, default. The Company places private education loans on nonaccrual status when the collection of principal and interest is 90 days past due and charges off the loan when the collection of principal and interest is 120 days past due. The Company places consumer loans on nonaccrual status when the collection of principal and interest is 90 days past due and charges off the loan when the collection of principal and interest is 120 days or 180 days past due, depending on type of loan program. Collections, if any, are reflected as a recovery through the allowance for loan losses.
Purchased Loans Receivable with Credit Deterioration (“PCD”)
The Company has purchased federally insured rehabilitation loans that have experienced more than insignificant credit deterioration since origination. Rehabilitation loans are loans that have previously defaulted, but for which the borrower has made a specified number of on-time payments. Although rehabilitation loans benefit from the same guarantees as other federally insured loans, rehabilitation loans have generally experienced redefault rates that are higher than default rates for federally insured loans that have not previously defaulted. These PCD loans are recorded at the amount paid. An allowance for loan losses is determined using the same methodology as for other loans held for investment. The sum of the loans’ purchase
price and allowance for loan losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized or accreted into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision expense.
Loan Accrued Interest Receivable
The Company has elected to present its loan accrued interest receivable balance combined in its consolidated balance sheets with the loans receivable amortized cost balance.
For the Company’s federally insured loan portfolio, the Company has elected to measure an allowance for credit losses for accrued interest receivables. For federally insured loans, accrued interest receivable is typically charged-off when the contractual payment of principal or interest has become greater than 270 days past due. Charge-offs of accrued interest receivable are recognized as a reduction to the allowance for loan losses.
For the Company’s private education and consumer loan portfolios, the Company has elected not to measure an allowance for credit losses for accrued interest receivables. For private education and consumer loans, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due. Charge-offs of accrued interest receivable are recognized by reversing interest income.
Loans Receivable
Loans consist of federally insured student loans, private education loans, and consumer loans. If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost. Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest income. Loans which are held-for-investment also have an allowance for loan loss as needed. Any loans the Company has the ability and intent to sell are classified as held for sale and are carried at the lower of cost or fair value. Loans which are held for sale do not have the associated premium or discount and origination costs and fees amortized into interest income and there is also no related allowance for loan losses. There were no loans classified as held for sale as of December 31, 2020 and 2019.
Federally insured loans were originated under the FFEL Program by certain eligible lenders as defined by the Higher Education Act of 1965, as amended (the “Higher Education Act”). These loans, including related accrued interest, are guaranteed at their maximum level permitted under the Higher Education Act by an authorized guaranty agency, which has a contract of reinsurance with the Department. The terms of the loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest. Generally, Stafford and PLUS loans have repayment periods between five and ten years. Consolidation loans have repayment periods of twelve to thirty years. FFELP loans do not require repayment while the borrower is in-school, and during the grace period immediately upon leaving school. Under the Higher Education Act a borrower may also be granted a deferment or forbearance for a period of time based on need, during which time the borrower is not considered to be in repayment. Interest continues to accrue on loans in the in-school, deferment, and forbearance program periods. In addition, eligible borrowers may qualify for income-driven repayment plans offered by the Department. These plans determine the borrower's payment amount based on their discretionary income and may extend their repayment period. Interest rates on federally insured student loans may be fixed or variable, dependent upon the type of loan, terms of the loan agreements, and date of origination.
Substantially all FFELP loan principal and related accrued interest is guaranteed as provided by the Higher Education Act. These guarantees are subject to the performance of certain loan servicing due diligence procedures stipulated by applicable Department regulations. If these due diligence requirements are not met, affected student loans may not be covered by the guarantees in the event of borrower default. Such student loans are subject to “cure” procedures and reinstatement of the guarantee under certain circumstances.
Loans also include private education and consumer loans. Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFEL Program. These loans are used primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or borrowers' personal resources. The terms of the private education loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to thirty years. The private education loans are not covered by a guarantee or collateral in the event of borrower default. Consumer loans are unsecured loans to an individual for personal, family, or household purposes. The terms of the consumer loans, which vary on an individual basis, generally provide for repayment in weekly or monthly installments of principal and interest over a period of up to six years.
Allowance for Loan Losses – Prior to Adoption of ASC 326
Prior to the adoption of ASC 326 effective January 1, 2020, the allowance for loan losses represented management's estimate of probable losses on loans. The provision for loan losses for periods ended prior to January 1, 2020 reflected the activity for the applicable period and provided an allowance at a level that the Company's management believed was appropriate to cover probable losses inherent in the loan portfolio. The Company evaluated the adequacy of the allowance for loan losses using a historical loss rate methodology adjusted for qualitative factors separately on each of its federally insured, private education, and consumer loan portfolios. These evaluation processes were subject to numerous judgments and uncertainties including the selection of loss rates over time and determination of the loss emergence period.
In determining the appropriate allowance for loan losses, the Company considered several factors, as applicable, for each of the Company’s loan portfolios, including: loans in repayment versus those in a nonpaying status, delinquency status, trends in defaults in the portfolio based on Company and industry data, past experience, trends in student loan claims rejected for payment by guarantors, changes to federal student loan programs, type of program, current economic conditions, and other relevant qualitative factors.
For loans purchased where there was evidence of credit deterioration since the origination of the loan, the Company recorded a credit discount, separate from the allowance for loan losses, which was non-accretable to interest income. Remaining discounts and premiums for purchased loans were recognized in interest income over the remaining estimated lives of the loans. The Company continued to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine if additional allowance for loan losses on such portfolios were needed.
Reclassifications
Reclassifications
Certain amounts previously reported have been reclassified to conform to the current period presentation. These reclassifications include:
Reclassifying the line item "accrued interest receivable" on the Company's consolidated balance sheet to "loans and accrued interest receivable" and "investments";
Reclassifying "gain on sale of loans" that was previously included in "other income" to a new line item on the Company's consolidated statements of income; and
•Reclassifying “impairment expense” that was previously included in “other expenses” to a new line on the Company’s consolidated statements of income.
Noncontrolling Interests
Noncontrolling Interests
Amounts for noncontrolling interests reflect the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interests in the following entities:
Whitetail Rock Capital Management, LLC - WRCM is the Company’s SEC-registered investment advisor subsidiary. WRCM issued 10 percent minority membership interests on January 1, 2012.
In addition, the Company has established multiple entities for the purpose of investing in renewable energy (solar) and federal opportunity zone programs in which it has noncontrolling members.
Use of Estimates
Use of Estimates
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and other disclosures. Actual results may differ from those estimates.
Cash and Cash Equivalents and Statement of Cash Flow
Cash and Cash Equivalents and Statements of Cash Flows
For purposes of the consolidated statements of cash flows, the Company considers all investments with original maturities of three months or less to be cash equivalents.
Accrued interest on loans purchased and sold is included in cash flows from operating activities in the respective period.
Investments
Investments
The Company classifies its debt securities, primarily student loan and other asset-backed securities, as available-for-sale. These securities are carried at fair value, with the changes in fair value, net of taxes, carried as a separate component of shareholders’ equity. The amortized cost of debt securities in this category is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. When an investment is sold, the cost basis is determined through specific identification of the security sold.
The Company classifies its residual interest in federally insured and consumer loan securitizations as held-to-maturity beneficial interest investments. The Company measures accretable yield initially as the excess of all cash flows expected to be collected attributable to the beneficial interest estimated at the acquisition/transaction date over the initial investment and recognizes interest income over the life of the beneficial interest using the effective interest method. The Company continues to update, over the life of the beneficial interest, the expectation of cash flows to be collected. Beneficial interest investments are evaluated for impairment by comparing the present value of the remaining cash flows as estimated at the initial transaction date (or the last date previously revised) to the present value of the cash flows expected to be collected at the current financial reporting date, both discounted using the same effective rate equal to the current yield used to accrete the beneficial interest. If the present value of remaining cash flows is less than the present value of cash flows expected to be collected, the Company records an allowance for credit losses for the difference. Subsequent favorable changes, if any, decreases the allowance for credit losses. The Company reflects the changes in the allowance for credit losses in provision for beneficial interests on the consolidated statements of income.
Equity investments with readily determinable fair values are 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).
For equity investments without readily determinable fair value, the Company uses 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. The Company uses qualitative factors to identify impairment on these investments.
The Company accounts for equity investments over which it has significant influence but not a controlling financial interest using the equity method of accounting. Equity method investments are recorded at cost and subsequently increased or decreased by the amount of the Company’s proportionate share of the net earnings or losses and other comprehensive income of the investee. Equity method investments are evaluated for other-than-temporary impairment using certain impairment indicators such as a series of operating losses of an investee or other factors. These factors may indicate that a decrease in value of the investment has occurred that is other-than-temporary and shall be recognized.
The Company accounts for its solar investments and equity investments in ALLO under the HLBV method of accounting. The HLBV method of accounting is used by the Company for equity method investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership or voting interests. The Company applies the HLBV method using a balance sheet approach. A calculation is prepared at each balance sheet date to determine the amount that the Company would receive if an equity investment entity were to liquidate its net assets and distribute that cash to the investors based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is the amount the Company recognizes for its share of the earnings or losses from the equity investment for the period.
Restricted Cash
Restricted Cash
Restricted cash primarily includes amounts for student loan securitizations and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the student loans held as trust assets and when principal and interest is paid on the trust's asset-backed debt securities. Restricted cash also includes collateral deposits with derivative third-party clearinghouses.
Restricted Cash - Due to Customers
Restricted Cash - Due to Customers
As a servicer of student loans, the Company collects student loan remittances and subsequently disburses these remittances to the appropriate lending entities. In addition, as part of the Company's Education Technology, Services, and Payment Processing
operating segment, the Company collects tuition payments and subsequently remits these payments to the appropriate schools. Cash collected for customers and the related liability are included in the accompanying consolidated balance sheets.
Accounts Receivable
Accounts Receivable
Accounts receivable are presented at their net realizable values, which include allowances for doubtful accounts. Allowance estimates are based upon individual customer experience, as well as the age of receivables and likelihood of collection.
Business Combinations Business CombinationsThe Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings
Goodwill and Intangible Assets
Goodwill
The Company reviews goodwill for impairment annually (as of November 30) and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable. Goodwill is tested for impairment using a fair value approach at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a single reporting unit if they have similar economic characteristics.
The Company tests goodwill for impairment in accordance with applicable accounting guidance. The guidance provides an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a quantitative impairment test, otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test.
For the 2020, 2019, and 2018 annual reviews of goodwill, the Company assessed qualitative factors and concluded it was not more likely than not that the fair value of its reporting units were less than their carrying amount. As such, the Company was not required to perform further impairment testing and concluded there was no impairment of goodwill.
Intangible Assets
The Company uses estimates to determine the fair value of acquired assets to allocate the purchase price to acquired intangible assets. Such estimates are generally based on estimated future cash flows or cost savings associated with particular assets and are discounted to present value using an appropriate discount rate. The estimates of future cash flows associated with intangible assets are generally prepared using a cost savings method, a lost income method, or an excess return method, as appropriate. In utilizing such methods, management must make certain assumptions about the amount and timing of estimated future cash flows and other economic benefits from the assets, the remaining economic useful life of the assets, and general economic factors concerning the selection of an appropriate discount rate. The Company may also use replacement cost or market comparison approaches to estimate fair value if such methods are determined to be more appropriate.
Intangible assets with finite lives are amortized over their estimated lives. Such assets are amortized using a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. If that pattern cannot be reliably determined, the Company uses a straight-line amortization method.
The Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization.
Property and Equipment
Property and Equipment
Property and equipment are carried at cost, net of accumulated depreciation. Maintenance and repairs are charged to expense as incurred, and major improvements, including leasehold improvements, are capitalized. Gains and losses from the sale of
property and equipment are included in determining net income. The Company uses the straight-line method for recording depreciation and amortization. Leasehold improvements are amortized straight-line over the shorter of the lease term or estimated useful life of the asset
Leases
Leases
At the inception of an arrangement, the Company determines if the arrangement is, or contains, a lease and records the lease in the consolidated financial statements upon lease commencement, which is the date when the underlying asset is made available by the lessor. The Company primarily leases office and data center space. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The lease expense for these leases is recognized on a straight-line basis over the lease term. All other lease assets (ROU assets) and lease liabilities are recognized based on the present value of lease payments over the lease term at the commencement date. The Company classifies each lease as operating or financing, with the income statement reflecting lease expense for operating leases and amortization/interest expense for financing leases. When the discount rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate.
The Company accounts for lease and non-lease components together as a single, combined lease component for its office and data center space. In addition, the Company identified itself as the lessor in its Communications operating segment for services provided to customers that include customer-premise equipment. The Company accounts for those services and associated leases as a single, combined component. The non-lease services are 'predominant' in those contracts. Therefore, the combined component is considered a single performance obligation under ASC Topic 606, Revenue from Contracts with Customers.
Most leases include one or more options to renew, with renewal terms that can be extended. The exercise of lease renewal options for the majority of leases is at the Company's discretion. Renewal options that the Company is reasonably certain to exercise are included in the lease term.
Certain leases include escalating rental payments or rental payments adjusted periodically for inflation. None of the lease agreements include any residual value guarantees, a transfer of title, or a purchase option that is reasonably certain to be exercised.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
The Company reviews its long-lived assets, such as ROU assets, property and equipment, and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.
Assumptions and estimates about future cash flows generated by, remaining useful lives of, and fair values of the Company's intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company's business strategy and internal forecasts. Although the Company believes the historical assumptions and estimates used are reasonable and appropriate, different assumptions and estimates could materially impact the reported financial results.
Fair Value Measurements
Fair Value Measurements
The Company uses estimates of fair value in applying various accounting standards for its financial statements.
Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company's policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value, such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates, and credit spreads, relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. In some cases fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model's output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. Additionally, there may be inherent weaknesses in any calculation
technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates of current or future values.
The Company categorizes its fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring assets and liabilities at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels include:
Level 1: Quoted prices for identical instruments in active markets. The types of financial instruments included in Level 1 are highly liquid instruments with quoted prices.
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose primary value drivers are observable.
Level 3: Instruments whose primary value drivers are unobservable. Inputs are developed based on the best information available; however, significant judgment is required by management in developing the inputs.
Revenue Recognition
Revenue Recognition
The Company applies the provisions of ASC 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. 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.
Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records deferred revenue when revenue is received or receivable in advance of the delivery of service. 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.
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 and pre-production contract fulfillment costs 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.
Additional information related to revenue earned in its Asset Generation and Management operating segment is provided below. See note 16, "Disaggregated Revenue and Deferred Revenue" for additional information related to the Company's fee-based operating segments.
Loan interest income - Loan interest on federally insured student loans is paid by the Department or the borrower, depending on the status of the loan at the time of the accrual. The Department makes quarterly interest subsidy payments on certain qualified FFELP loans until the student is required under the provisions of the Higher Education Act to begin repayment. Borrower repayment of FFELP loans normally begins within six months after completion of the borrower's course of study, leaving school, or ceasing to carry at least one-half the normal full-time academic load, as determined by the educational institution. Borrower repayment of PLUS and Consolidation loans normally begins within 60 days from the date of loan disbursement. Borrower repayment of private education loans typically begins six months following the borrower's graduation from a qualified institution, and the interest is either paid by the borrower or capitalized annually or at repayment. Repayment of consumer loans typically starts upon origination of the loan.
The Department provides a special allowance to lenders participating in the FFEL Program. The special allowance is accrued based upon the fiscal quarter average rate of 13-week Treasury Bill auctions (for loans originated prior to January 1, 2000), the
fiscal quarter average rate of the daily three-month financial commercial paper rates (for loans originated on and after January 1, 2000), or the fiscal quarter average rate of daily one-month LIBOR rates (for loans originated on and after January 1, 2000, and for lenders which elected to change the special allowance index to one-month LIBOR effective April 1, 2012) relative to the yield of the student loan.
The Company recognizes loan interest income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts. Loan interest income is recognized based upon the expected yield of the loan after giving effect to interest rate reductions resulting from borrower utilization of incentives such as timely payments ("borrower benefits") and other yield adjustments. Loan premiums or discounts, deferred origination costs, and borrower benefits are amortized/accreted over the estimated life of the loans, which includes an estimate of forecasted payments in excess of contractually required payments (the constant prepayment rate). The constant prepayment rate used by the Company to amortize/accrete federally insured loan premiums/discounts is 5 percent for Stafford loans and 3 percent for Consolidation loans. The Company periodically evaluates the assumptions used to estimate the life of the loans and prepayment rates. In instances where there are changes to the assumptions, amortization/accretion is adjusted on a cumulative basis to reflect the change since the acquisition of the loan.
The Company also pays the Department an annual 105 basis point rebate fee on Consolidation loans. These rebate fees are netted against loan interest income.
Interest Expense Interest ExpenseInterest expense is based upon contractual interest rates, adjusted for the amortization of debt issuance costs and the accretion of discounts. The amortization of debt issuance costs and accretion of discounts are recognized using the effective interest method
Transfer of Financial Assets and Extinguishment of Liabilities Transfer of Financial Assets and Extinguishments of LiabilitiesThe Company accounts for loan sales and debt repurchases in accordance with applicable accounting guidance. If a transfer of loans qualifies as a sale, the Company derecognizes the loan and recognizes a gain or loss as the difference between the carrying basis of the loan sold and the consideration received. The Company from time to time repurchases its outstanding debt and records a gain or loss on the early extinguishment of debt based upon the difference between the carrying amount of the debt and the amount paid to the third party. The Company recognizes the results of a transfer of loans and the extinguishment of debt based upon the settlement date of the transaction
Derivative Accounting
Derivative Accounting
All over-the-counter derivative contracts executed by the Company are cleared post-execution at the Chicago Mercantile Exchange (“CME”), a regulated clearinghouse. Substantially all of the Company’s outstanding derivatives are over-the-counter contracts. Clearing is a process by which a third-party, the clearinghouse, steps in between the original counterparties and guarantees the performance of both, by requiring that each post liquid collateral on an initial (initial margin) and mark-to-market (variation margin) basis to cover the clearinghouse’s potential future exposure in the event of default.
The CME legally characterizes variation margin payments for over-the-counter derivatives they clear as settlements of the derivatives’ exposure rather than collateral against the exposure. For accounting and presentation purposes, the Company considers variation margin and the corresponding derivative instrument as a single unit of account. As such, variation margin payments are considered in determining the fair value of the centrally cleared derivative portfolio. The Company records derivative contracts on its balance sheet with a fair value of zero due to the payment or receipt of variation margin between the Company and the CME settling the outstanding mark-to-market exposure on such derivatives to a balance of zero on a daily basis. Management has structured all of the Company's derivative transactions with the intent that each is economically effective; however, the Company's derivative instruments do not qualify for hedge accounting. As a result, the change in market value of derivative instruments is reported in current period earnings. Changes or shifts in the forward yield curve can significantly impact the valuation of the Company’s derivatives, and therefore impact the results of operations of the Company. The changes in fair value of derivative instruments, as well as the settlement payments made on such derivatives, are included in “derivative market value adjustments and derivative settlements, net” on the consolidated statements of income
Income Taxes
Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company uses the deferred method of accounting for its credits related to state tax incentives and investments that generate investment tax credits. The investment tax credits are recognized as a reduction to the related asset. Income tax expense includes deferred tax expense, which represents a portion of the net change in the deferred tax asset or liability balance during the year, plus any change made in the valuation allowance, and current tax expense, which represents the amount of tax currently payable to or receivable from a tax authority plus amounts for expected tax deficiencies
Compensation Expense for Stock Based Awards
Compensation Expense for Stock Based Awards
The Company has a restricted stock plan that is intended to provide incentives to attract, retain, and motivate employees in order to achieve long term growth and profitability objectives. The restricted stock plan provides for the grant to eligible employees of awards of restricted shares of Class A common stock. The fair value of restricted stock awards is determined on the grant date based on the Company's stock price and is amortized to compensation cost over the related vesting periods, which range up to ten years. For those awards with only service conditions that have graded vesting schedules, the Company recognizes compensation expense on a straight-line basis over the requisite service period for each separately vesting portion of the award, as if the award was, in substance, multiple awards. Holders of restricted stock are entitled to receive dividends from the date of grant whether or not vested. The Company accounts for forfeitures as they occur.
The Company also has a directors stock compensation plan pursuant to which non-employee directors can elect to receive their annual retainer fees in the form of fully vested shares of Class A common stock, and also elect to defer receipt of such shares until the termination of their service on the board of directors. The fair value of grants under this plan is determined on the grant date based on the Company's stock price, and is expensed over the board member's annual service period.
v3.20.4
Recent Developments - ALLO Recapitalization (Tables)
12 Months Ended
Dec. 31, 2020
Restructuring and Related Activities [Abstract]  
Results of deconsolidation As a result of the deconsolidation of ALLO, the Company recognized a gain of $258.6 million in the fourth quarter of 2020 as summarized below.
As of
December 21, 2020
Voting interest/equity method investment - recorded at fair value$132,960 
Preferred membership interest investment - recorded at fair value228,530 
Less: ALLO assets deconsolidated:
Cash and cash equivalents – not held at a related party(299)
Cash and cash equivalents – held at a related party(28,692)
Accounts receivable(4,138)
Goodwill(21,112)
Intangible assets(6,083)
Property and equipment, net(245,295)
Other assets(29,643)
Other liabilities24,185 
Noncontrolling interests208,175 
Gain recognized upon deconsolidation of ALLO$258,588 
Restructuring and Related Costs
The impact to the Company’s 2020 operating results as a result of the ALLO recapitalization is summarized below:

Gain from deconsolidation$258,588 
Compensation expense (note 1)(9,298)
Obligation to SDC (note 2)(2,339)
$246,951 

Note 1: On October 1, 2020 (prior to the deconsolidation of ALLO), ALLO recognized compensation expense related to the modification of certain equity awards previously granted to members of ALLO’s management.
Note 2:    As part of the ALLO recapitalization transaction, the Company and SDC entered into an agreement, in which the Company has a contingent payment obligation to pay SDC a contingent payment amount of $25.0 million to $35.0 million in the event the Company disposes of its voting membership units of ALLO that it holds and realizes from such disposition certain targeted return levels. The Company recognized the estimated fair value of the contingent payment as of December 31, 2020 to be $2.3 million, which is included in “other liabilities” on the consolidated balance sheet.
v3.20.4
Summary of Significant Accounting Policies and Practices (Tables)
12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Summary of Solar Investment VIEs Not Consolidated
The following table provides a summary of solar investment VIEs that the Company has not consolidated:
As of December 31,
20202019
Investment carrying amount$(30,373)7,562 
Tax credits subject to recapture117,740 67,069 
Unfunded capital and other commitments17,462 14,006 
Maximum exposure to loss (a)$104,829 88,637 
(a)    Amounts include $15.6 million and $3.0 million as of December 31, 2020 and 2019, respectively, syndicated to other investors in certain solar projects.
Schedule of Loans Receivable The following table illustrates the impact of the adoption of ASC 326.
Balances at
December 31, 2019
Impact of ASC 326 adoptionBalances at
January 1, 2020
Assets
Loans and accrued interest receivable, net of allowance
Loans receivable$20,798,719 — 20,798,719 
Accrued interest receivable733,497 — 733,497 
Loan discount, net(35,036)33,790 (1,246)
Non-accretable discount(32,398)32,398 — 
Allowance for loan losses(61,914)(91,014)(152,928)
Loans and accrued interest receivable, net of allowance21,402,868 (24,826)21,378,042 
Liabilities
Other liabilities (deferred taxes)303,781 (5,958)297,823 
Equity
Retained earnings2,377,627 (18,868)2,358,759 
Loans and accrued interest receivable consisted of the following:
As of December 31,
 20202019
Federally insured student loans:
Stafford and other$4,383,000 4,684,314 
Consolidation14,746,173 15,644,229 
Total19,129,173 20,328,543 
Private education loans338,132 244,258 
Consumer loans109,346 225,918 
 19,576,651 20,798,719 
Accrued interest receivable794,611 733,497 
Loan discount, net of unamortized loan premiums and deferred origination costs (9,908)(35,036)
Non-accretable discount— (32,398)
Allowance for loan losses:
Federally insured loans(128,590)(36,763)
Private education loans(19,852)(9,597)
Consumer loans(27,256)(15,554)
 $20,185,656 21,402,868 
v3.20.4
Loans Receivable and Allowance for Loan Losses (Tables)
12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Schedule of Loans Receivable The following table illustrates the impact of the adoption of ASC 326.
Balances at
December 31, 2019
Impact of ASC 326 adoptionBalances at
January 1, 2020
Assets
Loans and accrued interest receivable, net of allowance
Loans receivable$20,798,719 — 20,798,719 
Accrued interest receivable733,497 — 733,497 
Loan discount, net(35,036)33,790 (1,246)
Non-accretable discount(32,398)32,398 — 
Allowance for loan losses(61,914)(91,014)(152,928)
Loans and accrued interest receivable, net of allowance21,402,868 (24,826)21,378,042 
Liabilities
Other liabilities (deferred taxes)303,781 (5,958)297,823 
Equity
Retained earnings2,377,627 (18,868)2,358,759 
Loans and accrued interest receivable consisted of the following:
As of December 31,
 20202019
Federally insured student loans:
Stafford and other$4,383,000 4,684,314 
Consolidation14,746,173 15,644,229 
Total19,129,173 20,328,543 
Private education loans338,132 244,258 
Consumer loans109,346 225,918 
 19,576,651 20,798,719 
Accrued interest receivable794,611 733,497 
Loan discount, net of unamortized loan premiums and deferred origination costs (9,908)(35,036)
Non-accretable discount— (32,398)
Allowance for loan losses:
Federally insured loans(128,590)(36,763)
Private education loans(19,852)(9,597)
Consumer loans(27,256)(15,554)
 $20,185,656 21,402,868 
Allowance for Loan Losses
The following table presents the activity in the allowance for loan losses by portfolio segment.
 Balance at beginning of periodImpact of ASC 326 adoptionProvision for loan lossesCharge-offsRecoveriesInitial allowance on loans purchased with credit deterioration (a)Loan sale and otherBalance at end of period
Year ended December 31, 2020
Federally insured loans$36,763 72,291 18,691 (14,955)— 15,800 — 128,590 
Private education loans9,597 4,797 6,486 (1,659)631 — — 19,852 
Consumer loans15,554 13,926 38,183 (12,115)1,132 — (29,424)27,256 
$61,914 91,014 63,360 (28,729)1,763 15,800 (29,424)175,698 
Year ended December 31, 2019
Federally insured loans$42,310 — 8,000 (13,547)— — — 36,763 
Private education loans10,838 — — (1,965)724 — — 9,597 
Consumer loans7,240 — 31,000 (12,498)812 — (11,000)15,554 
$60,388 — 39,000 (28,010)1,536 — (11,000)61,914 
Year ended December 31, 2018
Federally insured loans$38,706 — 14,000 (11,396)— — 1,000 42,310 
Private education loans12,629 — — (2,415)624 — — 10,838 
Consumer loans3,255 — 9,000 (5,056)41 — — 7,240 
$54,590 — 23,000 (18,867)665 — 1,000 60,388 

(a)    During the year ended December 31, 2020, the Company acquired $835.0 million (par value) of federally insured rehabilitation loans that met the definition of PCD loans when they were purchased by the Company.
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 status and delinquency amounts.
As of December 31,
 202020192018
Federally insured loans:    
Loans in-school/grace/deferment (a)$1,036,028 5.4 % $1,074,678 5.3 % $1,298,493 5.9 %
Loans in forbearance (b)1,973,175 10.3  1,339,821 6.6  1,430,291 6.4 
Loans in repayment status:  
Loans current13,683,054 84.9 %15,410,993 86.0 %16,882,252 86.9 %
Loans delinquent 31-60 days (c)633,411 3.9 650,796 3.6 683,084 3.5 
Loans delinquent 61-90 days (c)307,936 1.9 428,879 2.4 427,764 2.2 
Loans delinquent 91-120 days (c)800,257 5.0 310,851 1.7 283,831 1.5 
Loans delinquent 121-270 days (c)674,975 4.2 812,107 4.5 806,692 4.2 
Loans delinquent 271 days or greater (c)(d)20,337 0.1 300,418 1.8 343,489 1.7 
Total loans in repayment16,119,970 84.3 100.0 %17,914,044 88.1 100.0 %19,427,112 87.7 100.0 %
Total federally insured loans19,129,173 100.0 % 20,328,543 100.0 % 22,155,896 100.0 %
Accrued interest receivable791,453 730,059 675,898 
Loan discount, net of unamortized premiums and deferred origination costs(14,505)(35,822)(54,546)
Non-accretable discount (e)— (28,036)(23,833)
Allowance for loan losses(128,590)(36,763)(42,310)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$19,777,531 $20,957,981 $22,711,105 
Private education loans:
Loans in-school/grace/deferment (a)$5,049 1.5 %$4,493 1.8 %$4,320 1.9 %
Loans in forbearance (b)2,388 0.7 3,108 1.3 1,494 0.7 
Loans in repayment status:
Loans current327,550 99.1 %227,013 95.9 %208,977 95.0 %
Loans delinquent 31-60 days (c)1,099 0.3 2,814 1.2 3,626 1.6 
Loans delinquent 61-90 days (c)675 0.2 1,694 0.7 1,560 0.7 
Loans delinquent 91 days or greater (c)1,371 0.4 5,136 2.2 5,998 2.7 
Total loans in repayment330,695 97.8 100.0 %236,657 96.9 100.0 %220,161 97.4 100.0 %
Total private education loans338,132 100.0 % 244,258 100.0 % 225,975 100.0 %
Accrued interest receivable2,157 1,558 1,126 
Loan premium, net of unaccreted discount2,957 46 (1,245)
Non-accretable discount (e)— (4,362)(5,563)
Allowance for loan losses(19,852)(9,597)(10,838)
Total private education loans and accrued interest receivable, net of allowance for loan losses$323,394 $231,903 $209,455 
Consumer loans:
Loans in deferment$829 0.8 %$— $— 
Loans in repayment status:
Loans current105,650 97.4 %220,404 97.5 %136,130 98.2 %
Loans delinquent 31-60 days (c)954 0.9 2,046 0.9 1,012 0.7 
Loans delinquent 61-90 days (c)804 0.7 1,545 0.7 832 0.6 
Loans delinquent 91 days or greater (c)1,109 1.0 1,923 0.9 653 0.5 
Total loans in repayment108,517 99.2 100.0 %225,918 100.0 %138,627 100.0 %
Total consumer loans109,346 100.0 %225,918 138,627 
Accrued interest receivable1,001 1,880 665 
Loan premium1,640 740 2,219 
Allowance for loan losses(27,256)(15,554)(7,240)
Total consumer loans and accrued interest receivable, net of allowance for loan losses$84,731 $212,984 $134,271 
(a)    Loans for borrowers who still may be attending school or engaging in other permitted educational activities and     are not yet required to make payments on the loans, e.g., residency periods for medical students or a grace period for bar exam preparation for law students.
(b)    Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing     procedures and policies.
(c)    The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance.
(d)    A portion of loans included in loans delinquent 271 days or greater includes loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency.
(e)    Upon adoption of ASC 326 on January 1, 2020, the Company reclassified the non-accretable discount balance related to loans purchased with evidence of credit deterioration to allowance for loan losses.
The following table presents the amortized cost of the Company's private education and consumer loans by loan status and delinquency amount as of December 31, 2020 based on year of origination. Effective July 1, 2010, no new loan originations can be made under the FFEL Program and all new federal loan originations must be made under the Federal Direct Loan Program. As such, all the Company’s federally insured loans were originated prior to July 1, 2010.
20202019201820172016Prior yearsTotal
Private education loans:
Loans in school/grace/deferment$638 1,518 — — 206 2,687 5,049 
Loans in forbearance392 313 — — 305 1,378 2,388 
Loans in repayment status:
Loans current112,783 79,161 958 — 5,444 129,204 327,550 
Loans delinquent 31-60 days— 24 — — 28 1,047 1,099 
Loans delinquent 61-90 days94 — — — — 581 675 
Loans delinquent 91 days or greater— — — — — 1,371 1,371 
Total loans in repayment112,877 79,185 958 — 5,472 132,203 330,695 
Total private education loans$113,907 81,016 958 — 5,983 136,268 338,132 
Accrued interest receivable2,157 
Loan premium, net of unaccreted discount2,957 
Allowance for loan losses(19,852)
Total private education loans and accrued interest receivable, net of allowance for loan losses$323,394 
Consumer loans:
Loans in deferment$62 447 317 — — 829 
Loans in repayment status:
Loans current58,738 22,213 22,098 2,601 — — 105,650 
Loans delinquent 31-60 days405 371 159 19 — — 954 
Loans delinquent 61-90 days264 390 130 20 — — 804 
Loans delinquent 91 days or greater93 452 550 14 — — 1,109 
Total loans in repayment59,500 23,426 22,937 2,654 — — 108,517 
Total consumer loans$59,562 23,873 23,254 2,657 — — 109,346 
Accrued interest receivable1,001 
Loan premium1,640 
Allowance for loan losses(27,256)
Total consumer loans and accrued interest receivable, net of allowance for loan losses$84,731 
v3.20.4
Bonds and Notes payable (Tables)
12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Debt
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 As of December 31, 2020
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$17,127,643 
0.28% - 2.05%
5/27/25 - 10/25/68
Bonds and notes based on auction749,925 
1.12% - 2.14%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes17,877,568 
Fixed-rate bonds and notes issued in FFELP loan asset-backed
securitizations
923,076 
1.42% - 3.45%
10/25/67 - 8/27/68
FFELP warehouse facilities252,165 
0.27% / 0.31%
5/20/22 / 2/26/23
Private education loan warehouse facility150,397 0.28%2/13/22
Consumer loan warehouse facility25,809 0.28%4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations
49,025 
1.65% / 1.90%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
37,251 
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit120,000 1.65%12/16/24
Other borrowings123,558 
0.84% / 1.90%
5/4/21 / 5/30/22
 19,558,849   
Discount on bonds and notes payable and debt issuance costs(238,123)
Total$19,320,726 
 
 As of December 31, 2019
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$18,428,998 
1.98% - 3.61%
5/27/25 - 1/25/68
Bonds and notes based on auction768,626 
2.75% - 3.60%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes19,197,624 
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations512,836 
2.00% - 3.45%
10/25/67 / 11/25/67
FFELP warehouse facilities778,094 
1.98% / 2.07%
5/20/21 / 5/31/22
Consumer loan warehouse facility116,570 1.99%4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations73,308 
3.15% / 3.54%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
49,367 
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit50,000 3.29%12/16/24
Unsecured debt - Junior Subordinated Hybrid Securities20,381 5.28%9/15/61
Other borrowings5,000 3.44%5/30/22
 20,803,180   
Discount on bonds and notes payable and debt issuance costs(274,126)
Total$20,529,054 
Schedule of Line of Credit Facilities
As of December 31, 2020, the Company had two FFELP warehouse facilities as summarized below.
NFSLW-INHELP-IITotal
Maximum financing amount$260,000 50,000 310,000 
Amount outstanding252,165 — 252,165 
Amount available$7,835 50,000 57,835 
Expiration of liquidity provisionsMay 20, 2021February 26, 2021
Final maturity dateMay 20, 2022February 26, 2023
Advanced as equity support$21,209 — 21,209 
Schedule of Asset-backed Securitizations
The following tables summarize the asset-backed securitization transactions completed in 2020 and 2019.
Securitizations completed during the year ended December 31, 2020
2020-12020-22020-32020-4 (a)2020-5 (a)Total
Date securities issued2/20/203/11/203/19/208/27/2010/1/20
Total original principal amount$435,600 272,100 352,600 191,300 295,000 1,546,600 
Class A senior notes:
Total principal amount$424,600 264,300 343,600 191,300 295,000 1,518,800 
Bond discount— (44)(1,503)(19)— (1,566)
Issue price$424,600 264,256 342,097 191,281 295,000 1,517,234 
Cost of funds
1-month LIBOR plus 0.74%
1.83%
1-month LIBOR plus 0.92%
1.42%
1-month LIBOR plus 0.88%
Final maturity date3/26/684/25/683/26/688/27/6810/25/68
Class B subordinated notes:
Total principal amount$11,000 7,800 9,000 27,800 
Bond discount— (574)(284)(858)
Issue price$11,000 7,226 8,716 26,942 
Cost of funds
1-month LIBOR plus 1.75%
2.50%
1-month LIBOR plus 1.90%
Final maturity date3/26/684/25/683/26/68

(a)    Total original principal amount excludes the Class B subordinated tranche for the 2020-4 and 2020-5 transactions, totaling $5.0 million and $7.5 million, respectively, that was retained by the Company at issuance. As of December 31, 2020, the Company had a total of $40.1 million (par value) of its own asset-backed securities that were retained upon initial issuance or repurchased in the secondary market. For accounting purposes, these notes are eliminated in consolidation and are not included in the Company's consolidated financial statements. However, these securities remain legally outstanding at the trust level and the Company could sell these notes to third parties or redeem the notes at par as cash is generated in the trust estate. Upon a sale of these notes to third parties, the Company would obtain cash proceeds equal to the market value of the notes on the date of such sale. Upon sale, these notes would be shown as "bonds and notes payable" in the Company's consolidated balance sheet. The Company believes the market value of such notes is currently less than par value. Any excess of the par value over the market value on the date of sale would be recognized by the Company as interest expense over the life of the bonds.
Securitizations completed during the year ended December 31, 2019
2019-12019-2Private education loan
2019-A
2019-32019-42019-52019-62019-7Total
Class A-1 NotesClass A-2 Notes2019-1 totalClass A-1 NotesClass A-2 Notes2019-7 total
Date securities issued2/27/192/27/192/27/194/30/196/25/197/24/198/22/199/25/1910/30/1912/19/1912/19/1912/19/19
Total original principal amount$35,700 448,000 496,800 416,100 47,159 498,300 418,600 374,500 145,200 210,300 200,000 420,800 2,817,459 
Class A senior notes:
Total principal amount$35,700 448,000 483,700 405,000 47,159 485,800 408,000 364,500 140,200 210,300 200,000 410,300 2,744,659 
Bond discount— — — — — — (114)(26)— — — (140)
Issue price$35,700 448,000 483,700 405,000 47,159 485,800 408,000 364,386 140,174 210,300 200,000 410,300 2,744,519 
Cost of funds
1-month LIBOR plus 0.30%
1-month LIBOR plus 0.75%
1-month LIBOR plus 0.90%
Prime rate less 1.60%
1-month LIBOR plus 0.80%
1-month LIBOR plus 0.87%
2.53%
2.46%
1-month LIBOR plus 0.50%
1-month LIBOR plus 1.00%
Final maturity date4/25/674/25/676/27/676/25/498/25/679/26/6710/25/6711/25/671/25/681/25/68
Class B subordinated notes:
Total principal amount$13,100 11,100 12,500 10,600 10,000 5,000 10,500 72,800 
Bond discount— — — — (4)(913)— (917)
Issue price$13,100 11,100 12,500 10,600 9,996 4,087 10,500 71,883 
Cost of funds
1-month LIBOR plus 1.40%
1-month LIBOR plus 1.50%
1-month LIBOR plus 1.55%
1-month LIBOR plus 1.65%
3.45%
2.00%
1-month LIBOR plus 1.75%
Final maturity date4/25/676/27/678/25/679/26/6710/25/6711/25/671/25/68
Schedule of Long-term Debt Maturities
Bonds and notes outstanding as of December 31, 2020 are due in varying amounts as shown below.
2021$118,558 
2022433,371 
2023— 
2024120,000 
202598,761 
2026 and thereafter18,788,159 
$19,558,849 
Schedule of Debt Repurchases
The following table summarizes the Company's repurchases of its own debt. Gains recorded by the Company from the repurchase of debt are included in "other income" on the Company’s consolidated statements of income.
Year ended December 31,
202020192018
Par value$27,445 — 12,905 
Purchase price(25,521)— (12,546)
Gain$1,924 — 359 
v3.20.4
Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Interest Rate Swaps - 1:3 Basis swaps
The following table summarizes the Company’s 1:3 Basis Swaps outstanding:
As of December 31,
20202019
MaturityNotional amountNotional amount
2020$— 1,000,000 
2021250,000 250,000 
20222,000,000 2,000,000 
2023750,000 750,000 
20241,750,000 1,750,000 
20261,150,000 1,150,000 
2027250,000 250,000 
$6,150,000 7,150,000 
Interest Rate Swaps - Floor Income Hedges
The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
As of December 31, 2020As of December 31, 2019
MaturityNotional amountWeighted average fixed rate paid by the Company (a)Notional amountWeighted average fixed rate paid by the Company (a)
2020$— — %$1,500,000 1.01 %
2021600,000 2.15 600,000 2.15 
2022 (b)500,000 0.94 250,000 1.65 
2023900,000 0.62 150,000 2.25 
2024 (c)2,000,000 0.32 — — 
2025500,000 0.35 — — 
 $4,500,000 0.70 %$2,500,000 1.42 %
 
(a)    For all interest rate derivatives, the Company receives discrete three-month LIBOR.
(b)    $250.0 million of the derivatives outstanding at December 31, 2020 and 2019 have forward effective start dates in June 2021.
(c)    $750.0 million of the derivatives outstanding have formal effective start dates in June 2021.
Schedule of Derivative Instruments Presented in Income Statement
The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income.
Year ended December 31,
202020192018
Settlements:  
1:3 basis swaps$10,378 5,214 5,577 
Interest rate swaps - floor income hedges(6,699)40,192 64,901 
Other— — (407)
Total settlements - income3,679 45,406 70,071 
Change in fair value:   
1:3 basis swaps(7,462)1,515 12,573 
Interest rate swaps - floor income hedges(20,682)(77,027)(10,962)
Other— (683)(597)
Total change in fair value - (expense) income(28,144)(76,195)1,014 
Derivative market value adjustments and derivative settlements, net - (expense) income$(24,465)(30,789)71,085 
v3.20.4
Investments (Tables)
12 Months Ended
Dec. 31, 2020
Investments [Abstract]  
Summary of Investments and Notes Receivable
A summary of the Company's investments follows:
As of December 31, 2020As of December 31, 2019
Amortized costGross unrealized gainsGross unrealized lossesFair valueAmortized costGross unrealized gainsGross unrealized lossesFair value
Investments (at fair value):
Student loan asset-backed and other debt securities - available-for-sale (a)$340,578 8,042 (13)348,607 48,790 3,911 — 52,701 
Equity securities36,227 8,768 (2,954)42,041 9,622 4,561 (1,283)12,900 
Total investments (at fair value)$376,805 16,810 (2,967)390,648 58,412 8,472 (1,283)65,601 
Other Investments (not measured at fair value):
Venture capital and funds:
Measurement alternative (b)144,795 72,760 
Equity method14,018 15,379 
Other894 1,301 
Total venture capital and funds159,707 89,440 
Real estate:
Equity method50,291 44,159 
Other847 867 
Total real estate51,138 45,026 
Investment in ALLO:
Voting interest/equity method129,396 — 
Preferred membership interest228,916 — 
Total investment in ALLO358,312 — 
Solar (c)(30,373)7,562 
Beneficial interest in federally insured loan securitizations (d)30,377 — 
Beneficial interest in consumer loan securitizations, net of allowance for credit losses of $4,449 as of December 31, 2020 (d)
27,954 33,187 
Tax liens and affordable housing5,177 6,283 
Total investments (not measured at fair value)602,292 181,498 
Total investments$992,940 247,099 

(a)    As of December 31, 2020, $118.6 million (par value) of student loan asset-backed securities were subject to participation interests held by Union Bank, as discussed in note 5 under "Other Borrowings."
As of December 31, 2020, the stated maturities of a majority of the Company's student loan asset-backed and other debt securities classified as available-for-sale were greater than 10 years; however, such securities with a fair value of $58.6 million as of December 31, 2020 are scheduled to mature within the next 10 years, including $2.6 million, $31.2 million, and $24.8 million scheduled to mature within the next one year, 1-5 years, and 6-10 years, respectively.
(b)    The Company has an investment in Agile Sports Technologies, Inc. (doing business as “Hudl”) that is included in “venture capital and funds” in the above table. On May 20, 2020, the Company made an additional equity investment of approximately $26 million in Hudl, as one of the participants in an equity raise completed by Hudl. Prior to the additional 2020 investment, the Company had direct and indirect equity ownership interests in Hudl of less than 20%, which did not materially change as a result of this transaction. The Company accounts for its investment in Hudl using the measurement alternative method, which requires it to adjust its carrying value of the investment for changes resulting from observable market transactions. As a result of Hudl’s equity raise, the Company recognized a $51.0 million (pre-tax) gain during the second quarter of 2020 to adjust its carrying value to reflect the May 20, 2020 transaction value. This gain is included in "other income" on the consolidated statements of income. As of December 31, 2020, the carrying amount of the Company’s investment in Hudl is $128.6 million.
David S. Graff, who has served on the Company’s Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl.
(c)    The Company makes investments in entities that promote renewable energy sources (solar). The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods which range from 5 to 6 years. As of December 31, 2020, the Company has funded $148.6 million in solar investments. The carrying value of the Company’s solar investments are reduced by tax credits earned when the solar project is placed in service. The solar investment balance at December 31, 2020 represents total tax credits earned on solar projects placed in service through December 31, 2020 being larger than total payments made by the Company on such projects. The Company is committed to fund an additional $17.5 million on these projects.
The Company accounts for its solar investments using the Hypothetical Liquidation at Book Value (“HLBV”) method of accounting. For the majority of the Company’s solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment. During the years ended December 31, 2020 and 2019, the Company recognized pre-tax losses of $37.4 million and $2.2 million, respectively, on its solar investments. These losses are included in "other income" in the consolidated statements of income.
(d)    The Company has purchased partial ownership in certain federally insured and consumer loan securitizations. As of the latest remittance reports filed by the various trusts prior to December 31, 2020, the Company's ownership correlates to approximately $500 million and $280 million of federally insured and consumer loans, respectively, included in these securitizations.
v3.20.4
Business Combination (Tables)
12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. 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 receivable23,708 
Property and equipment35,919 
Other assets14,018 
Intangible assets75,329 
Excess cost over fair value of net assets acquired (goodwill)15,043 
Other liabilities(54,865)
Net assets acquired$136,551 
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

Cash and cash equivalents$438 
Restricted cash - due to customers123,169 
Accounts receivable1,019 
Other assets381 
Intangible assets26,390 
Excess cost over fair value of net assets acquired (goodwill)3,110 
Other liabilities(4,321)
Due to customers(123,169)
Net assets acquired$27,017 
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

Cash and cash equivalents$
Accounts receivable5,711 
Intangible assets24,200 
Excess cost over fair value of net assets acquired (goodwill)6,292 
Other liabilities(11,510)
Net assets acquired$24,700 
v3.20.4
Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Schedule of Intangible Assets
Intangible assets consist of the following:
Weighted average remaining useful life as of
December 31, 2020 (months)
As of December 31,
20202019
Amortizable intangible assets, net:  
Customer relationships (net of accumulated amortization of $83,419 and $60,553, respectively)
99$66,974 71,900 
Computer software (net of accumulated amortization of $4,127 and $3,233, respectively)
356,430 2,154 
Trade names (net of accumulated amortization of $3,455 and $2,792, respectively)
61,666 7,478 
Total - amortizable intangible assets, net91$75,070 81,532 
Schedule of Intangible Assets Future Amortization Expense As of December 31, 2020, the Company estimates it will record amortization expense as follows:
2021$23,042 
20229,939 
20239,830 
20247,457 
20254,644 
2026 and thereafter20,158 
 $75,070 
v3.20.4
Goodwill (Tables)
12 Months Ended
Dec. 31, 2020
Goodwill [Abstract]  
Schedule of Goodwill
The change in the carrying amount of goodwill by reportable operating segment was as follows:
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset Generation and Management (a)Corporate and Other ActivitiesTotal
Balance as of December 31, 2018 and 2019$23,639 70,278 21,112 41,883 — 156,912 
Goodwill acquired— 6,292 — — — 6,292 
Deconsolidation of ALLO— — (21,112)— — (21,112)
Balance as of December 31, 2020$23,639 76,570 — 41,883 — 142,092 

(a) As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of new FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units.
v3.20.4
Property and Equipment (Tables)
12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
Property and equipment consisted of the following:
As of December 31,
Useful life20202019
Non-communications:
Computer equipment and software
1-5 years
$172,664 160,319 
Building and building improvements
5-48 years
52,444 37,904 
Office furniture and equipment
1-10 years
21,899 21,245 
Leasehold improvements
1-15 years
9,168 9,517 
Transportation equipment
5-10 years
4,857 5,049 
Land3,642 1,400 
Construction in progress18,478 13,738 
283,152 249,172 
Accumulated depreciation - non-communications (159,625)(142,270)
Non-communications, net property and equipment123,527 106,902 
Communications:
Network plant and fiber
4-15 years
— 254,560 
Customer located property
2-4 years
— 27,011 
Central office
5-15 years
— 17,672 
Transportation equipment
4-10 years
— 6,611 
Computer equipment and software
1-5 years
— 5,574 
Other
1-39 years
— 3,702 
Land— 70 
Construction in progress— 54 
— 315,254 
Accumulated depreciation - communications— (73,897)
Communications, net property and equipment— 241,357 
Total property and equipment, net$123,527 348,259 
v3.20.4
Shareholders' Equity (Tables)
12 Months Ended
Dec. 31, 2020
Equity [Abstract]  
Schedule of Stock Repurchases Shares repurchased by the Company during 2020, 2019, and 2018 are shown in the table below. In accordance with the corporate laws of the state in which the Company is incorporated, all shares repurchased by the Company are legally retired upon acquisition by the Company.
Total shares repurchasedPurchase price
(in thousands)
Average price of shares repurchased (per share)
Year ended December 31, 20201,594,394 $73,358 $46.01 
Year ended December 31, 2019726,273 40,411 55.64 
Year ended December 31, 2018868,147 45,331 52.22 
v3.20.4
Earnings per Common Share (Tables)
12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share
 Year ended December 31,
202020192018
Common shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotal
Numerator:
Net income attributable to Nelnet, Inc.$347,451 4,992 352,443 139,946 1,857 141,803 225,170 2,743 227,913 
Denominator:
Weighted-average common shares outstanding - basic and diluted38,506,351 553,237 39,059,588 39,523,082 524,320 40,047,402 40,416,719 492,303 40,909,022 
Earnings per share - basic and diluted$9.02 9.02 9.02 3.54 3.54 3.54 5.57 5.57 5.57 
v3.20.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows:
Year ended December 31,
20202019
Gross balance - beginning of year$20,148 23,445 
Additions based on tax positions of prior years634 651 
Additions based on tax positions related to the current year2,523 1,339 
Settlements with taxing authorities— (1,810)
Reductions for tax positions of prior years(69)(380)
Reductions due to lapse of applicable statutes of limitations(2,918)(3,097)
Gross balance - end of year$20,318 20,148 
Schedule of Provision for Income Tax Expense (Benefit)
The provision for income taxes consists of the following components:
Year ended December 31,
202020192018
Current:
Federal$82,832 38,931 45,822 
State9,815 3,546 1,969 
Foreign239 239 (2)
Total current provision92,886 42,716 47,789 
Deferred:
Federal7,269 (4,280)11,783 
State718 (2,922)(883)
Foreign(13)(63)81 
Total deferred provision7,974 (7,265)10,981 
Provision for income tax expense$100,860 35,451 58,770 
Schedule of Effective Income Tax Rate Reconciliation
The differences between the income tax provision computed at the statutory federal corporate tax rate and the financial statement provision for income taxes are shown below:
Year ended December 31,
202020192018
Tax expense at federal rate21.0 %21.0 %21.0 %
Increase (decrease) resulting from:
State tax, net of federal income tax benefit2.8 2.5 2.4 
Tax credits(1.1)(3.0)(1.9)
Provision for uncertain federal and state tax matters(0.2)(0.7)(1.0)
Other(0.2)0.2 — 
Effective tax rate22.3 %20.0 %20.5 %
Schedule of Deferred Tax Assets and Liabilities
The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following:
As of December 31,
20202019
Deferred tax assets:
Student loans$26,894 15,479 
Deferred revenue18,081 18,037 
Accrued expenses10,661 4,112 
Tax credit carryforwards5,987 9,394 
Basis in certain derivative contracts5,061 — 
Lease liability4,123 5,891 
Stock compensation2,546 2,167 
Securitizations694 1,261 
Net operating losses647 551 
Total gross deferred tax assets74,694 56,892 
Less valuation allowance(569)(548)
Net deferred tax assets74,125 56,344 
Deferred tax liabilities:
Partnership basis64,023 56,741 
Debt and equity investments20,538 3,775 
Depreciation14,092 11,489 
Intangible assets7,703 5,399 
Loan origination services5,040 4,647 
Lease right of use asset4,037 5,684 
Basis in certain derivative contracts— 2,730 
Other661 1,003 
Total gross deferred tax liabilities116,094 91,468 
Net deferred tax asset (liability)$(41,969)(35,124)
v3.20.4
Segment Reporting (Tables)
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment The following tables include the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements.
 Year ended December 31, 2020
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunications (a)Asset
Generation and
Management
Nelnet BankCorporate and Other ActivitiesEliminationsTotal
Total interest income$436 3,036 611,474 414 5,775 (1,480)619,656 
Interest expense121 54 — 328,157 41 3,178 (1,480)330,071 
Net interest income (expense)315 2,982 283,317 373 2,597 — 289,585 
Less provision for loan losses— — — 63,029 330 — — 63,360 
Net interest income after provision for loan losses315 2,982 220,288 43 2,597 — 226,225 
Other income/expense:      
Loan servicing and systems revenue451,561 — — — — — — 451,561 
Intersegment revenue36,520 20 — — — — (36,540)— 
Education technology, services, and payment processing revenue— 282,196 — — — — — 282,196 
Communications revenue— — 76,643 — — — — 76,643 
Other9,421 373 1,561 7,189 48 38,969 — 57,561 
Gain on sale of loans— — — 33,023 — — — 33,023 
Gain from deconsolidation of ALLO— — — — — 258,588 — 258,588 
Impairment expense and provision for beneficial interests— — — (16,607)— (8,116)— (24,723)
Derivative settlements, net— — — 3,679 — — — 3,679 
Derivative market value adjustments, net— — — (28,144)— — — (28,144)
Total other income/expense497,502 282,589 78,204 (860)48 289,441 (36,540)1,110,384 
Cost of services:
Cost to provide education technology, services, and payment processing services— 82,206 — — — — — 82,206 
Cost to provide communications services— — 22,812 — — — — 22,812 
Total cost of services— 82,206 22,812 — — — — 105,018 
Operating expenses:      
Salaries and benefits285,526 98,847 30,935 1,747 36 84,741 — 501,832 
Depreciation and amortization37,610 9,459 42,588 — — 29,043 — 118,699 
Other expenses57,420 14,566 13,327 15,806 135 59,320 — 160,574 
Intersegment expenses, net63,886 14,293 1,732 39,172 — (82,543)(36,540)— 
Total operating expenses444,442 137,165 88,582 56,725 171 90,561 (36,540)781,105 
Income (loss) before income taxes53,375 66,200 (33,188)162,703 (80)201,477 — 450,486 
Income tax (expense) benefit(12,810)(15,888)7,965 (39,049)20 (41,098)— (100,860)
Net income (loss)40,565 50,312 (25,223)123,654 (60)160,379 — 349,626 
Net loss (income) attributable to noncontrolling interests— — — — — 2,817 — 2,817 
Net income (loss) attributable to Nelnet, Inc.$40,565 50,312 (25,223)123,654 (60)163,196 — 352,443 
Total assets as of December 31, 2020$190,297 436,702 — 20,773,968 216,937 1,225,790 (197,534)22,646,160 

(a) On December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. See note 2, “Recent Developments - ALLO Recapitalization,” for a description of the transaction and a summary of the deconsolidation impact. Accordingly, the operating results for the Communications operating segment in the table above are for the period from January 1 2020 through December 21, 2020.
 Year ended December 31, 2019
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Nelnet BankCorporate and Other ActivitiesEliminationsTotal
Total interest income$2,031 9,244 931,963 — 9,232 (3,796)948,677 
Interest expense115 46 — 693,375 — 9,587 (3,796)699,327 
Net interest income (expense)1,916 9,198 238,588 — (355)— 249,350 
Less provision for loan losses— — — 39,000 — — — 39,000 
Net interest income after provision for loan losses1,916 9,198 199,588 — (355)— 210,350 
Other income/expense:
Loan servicing and systems revenue455,255 — — — — — — 455,255 
Intersegment revenue46,751 — — — — — (46,751)— 
Education technology, services, and payment processing revenue— 277,331 — — — — — 277,331 
Communications revenue— — 64,269 — — — — 64,269 
Other9,736 259 1,509 13,088 — 23,327 — 47,918 
Gain on sale of loans— — — 17,261 — — — 17,261 
Gain from deconsolidation of ALLO— — — — — — — — 
Impairment expense and provision for beneficial interests— — — — — — — — 
Derivative settlements, net— — — 45,406 — — — 45,406 
Derivative market value adjustments, net— — — (76,195)— — — (76,195)
Total other income/expense511,742 277,590 65,778 (440)— 23,327 (46,751)831,245 
Cost of services:
Cost to provide education technology, services, and payment processing services— 81,603 — — — — — 81,603 
Cost to provide communications services— — 20,423 — — — — 20,423 
Total cost of services— 81,603 20,423 — — — — 102,026 
Operating expenses:
Salaries and benefits276,136 94,666 21,004 1,545 — 70,152 — 463,503 
Depreciation and amortization34,755 12,820 37,173 — — 20,300 — 105,049 
Other expenses71,064 22,027 15,165 34,445 — 51,571 — 194,272 
Intersegment expenses, net54,325 13,405 2,962 47,362 — (71,303)(46,751)— 
Total operating expenses436,280 142,918 76,304 83,352 — 70,720 (46,751)762,824 
Income (loss) before income taxes77,378 62,267 (30,946)115,796 — (47,748)— 176,745 
Income tax (expense) benefit(18,571)(14,944)7,427 (27,792)— 18,428 — (35,451)
Net income (loss)58,807 47,323 (23,519)88,004 — (29,320)— 141,294 
Net loss (income) attributable to noncontrolling interests— — — — — 509 — 509 
Net income (loss) attributable to Nelnet, Inc.$58,807 47,323 (23,519)88,004 — (28,811)— 141,803 
Total assets as of December 31, 2019$290,311 506,382 303,347 22,128,917 — 627,897 (147,884)23,708,970 
 Year ended December 31, 2018
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Nelnet BankCorporate and Other ActivitiesEliminationsTotal
Total interest income$1,351 4,453 911,502 — 19,944 (12,989)924,266 
Interest expense— 9,987 662,360 — 10,540 (12,989)669,906 
Net interest income (expense)1,351 4,444 (9,983)249,142 — 9,404 — 254,360 
Less provision for loan losses— — — 23,000 — — — 23,000 
Net interest income after provision for loan losses1,351 4,444 (9,983)226,142 — 9,404 — 231,360 
Other income/expense:
Loan servicing and systems revenue440,027 — — — — — — 440,027 
Intersegment revenue47,082 — — — — — (47,082)— 
Education technology, services, and payment processing revenue— 221,962 — — — — — 221,962 
Communications revenue— — 44,653 — — — — 44,653 
Other7,284 — 1,075 12,723 — 33,724 — 54,805 
Gain on sale of loans— — — — — — — — 
Gain from deconsolidation of ALLO— — — — — — — — 
Impairment expense and provision for beneficial interests(3,906)(7,815)— — — — — (11,721)
Derivative settlements, net— — — 70,478 — (407)— 70,071 
Derivative market value adjustments, net— — — (2,159)— 3,173 — 1,014 
Total other income/expense490,487 214,147 45,728 81,042 — 36,490 (47,082)820,811 
Cost of services:
Cost to provide education technology, services, and payment processing services— 59,566 — — — — — 59,566 
Cost to provide communications services— — 16,926 — — — — 16,926 
Total cost of services— 59,566 16,926 — — — — 76,492 
Operating expenses:
Salaries and benefits267,458 81,080 18,779 1,526 — 67,336 — 436,179 
Depreciation and amortization32,074 13,484 23,377 — — 17,960 — 86,896 
Other expenses63,430 20,322 11,900 15,961 — 54,697 — 166,310 
Intersegment expenses, net59,042 10,681 2,578 47,870 — (73,088)(47,082)— 
Total operating expenses422,004 125,567 56,634 65,357 — 66,905 (47,082)689,385 
Income (loss) before income taxes69,834 33,458 (37,815)241,827 — (21,011)— 286,294 
Income tax (expense) benefit(16,954)(8,030)9,075 (58,038)— 15,177 — (58,770)
Net income (loss)52,880 25,428 (28,740)183,789 — (5,834)— 227,524 
Net loss (income) attributable to noncontrolling interests808 — — — — (419)— 389 
Net income (loss) attributable to Nelnet, Inc.$53,688 25,428 (28,740)183,789 — (6,253)— 227,913 
Total assets as of December 31, 2018$226,445 471,719 286,816 23,806,321 — 563,841 (134,174)25,220,968 
v3.20.4
Disaggregated Revenue and Deferred Revenue (Tables)
12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Disaggregated Revenue
The following table provides disaggregated revenue by service offering:
Year ended December 31,
202020192018
Government servicing - Nelnet$146,798 157,991 157,091 
Government servicing - Great Lakes179,872 185,656 168,298 
Private education and consumer loan servicing32,492 36,788 41,474 
FFELP servicing20,183 25,043 31,542 
Software services41,999 41,077 32,929 
Outsourced services and other30,217 8,700 8,693 
Loan servicing and systems revenue$451,561 455,255 440,027 
The following table provides disaggregated revenue by service offering:
Year ended December 31,
202020192018
Tuition payment plan services$100,674 106,682 85,381 
Payment processing114,304 110,848 84,289 
Education technology and services65,885 58,578 51,155 
Other1,333 1,223 1,137 
Education technology, services, and payment processing revenue$282,196 277,331 221,962 
The following table provides disaggregated revenue by service offering and customer type. The amounts listed for 2020 reflect activity prior to ALLO’s deconsolidation on December 21, 2020:
Period from January 1 2020 - December 21, 2020Year ended December 31,
20192018
Internet$48,362 38,239 24,069 
Television17,091 16,196 12,949 
Telephone11,037 9,705 7,546 
Other153 129 89 
Communications revenue$76,643 64,269 44,653 
Residential revenue$58,029 48,344 33,434 
Business revenue18,038 15,689 10,976 
Other576 236 243 
Communications revenue$76,643 64,269 44,653 
Components of Other Income
The following table provides the components of "other income" on the consolidated statements of income:
Year ended December 31,
202020192018
Gain on remeasurement of HUDL investment$51,018 — — 
Investment advisory services10,875 2,941 6,009 
Management fee revenue9,421 9,736 7,284 
Borrower late fee income5,194 12,884 12,302 
Income/gains from investments, net2,205 8,356 9,579 
Loss from solar investments(37,423)(2,220)— 
Other16,271 16,221 19,631 
  Other income$57,561 47,918 54,805 
Deferred revenue reconciliation
Activity in the deferred revenue balance, which is included in "other liabilities" on the consolidated balance sheets, is shown below:
Loan Servicing and SystemsEducation, Technology, Services, and Payment ProcessingCommunicationsCorporate and Other ActivitiesTotal
Balance as of December 31, 2017$4,968 24,164 1,665 1,479 32,276 
Deferral of revenue5,117 77,297 25,325 5,553 113,292 
Recognition of revenue(5,672)(70,905)(24,439)(5,430)(106,446)
Balance as of December 31, 20184,413 30,556 2,551 1,602 39,122 
Deferral of revenue3,585 93,373 36,024 3,505 136,487 
Recognition of revenue(5,286)(91,855)(35,343)(3,479)(135,963)
Balance as of December 31, 20192,712 32,074 3,232 1,628 39,646 
Deferral of revenue2,490 90,183 43,596 3,209 139,478 
Recognition of revenue(3,824)(90,409)(42,903)(3,286)(140,422)
Deconsolidation of ALLO— — (3,925)— (3,925)
Business acquisition— 1,419 — — 1,419 
Balance as of December 31, 2020$1,378 33,267 — 1,551 36,196 
v3.20.4
Leases (Tables)
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Supplemental Balance Sheet Information
The following table provides supplemental balance sheet information related to leases:
As of December 31,
20202019
Operating lease ROU assets, which is included in "other assets" on the
     consolidated balance sheet
$18,301 32,770 
Operating lease liabilities, which is included in "other liabilities" on the
     consolidated balance sheet
$18,733 33,689 
Lease Expense, Cash Flow Information, Weighted Average Remaining Lease Term, and Discount Rate
The following table provides components of lease expense:
Year ended December 31,
20202019
Rental expense, which is included in "other expenses" on the
consolidated statements of income (a)
$11,885 11,171 
Rental expense, which is included in "cost to provide communications
services" on the consolidated statements of income (a)
1,997 1,609 
Total operating rental expense$13,882 12,780 
(a)    Includes short-term and variable lease costs, which are immaterial.
Weighted average remaining lease term and discount rate are shown below:
As of December 31,
20202019
Weighted average remaining lease term (years)5.657.29
Weighted average discount rate2.43 %3.93 %
Maturity of Lease Liabilities
Maturity of lease liabilities are shown below:
2021$6,578 
20223,857 
20232,938 
20241,562 
20251,424 
2026 and thereafter4,437 
Total lease payments20,796 
Imputed interest(2,063)
Total$18,733 
Future Minimum Lease Payments Future minimum lease payments as of December 31, 2018 are shown below:
2019$9,181 
20208,261 
20215,776 
20223,745 
20232,904 
2024 and thereafter5,479 
Total minimum lease payments$35,346 
v3.20.4
Stock Based Compensation Plans (Tables)
12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of Restricted Stock Activity
The following table summarizes restricted stock activity:
Year ended December 31,
202020192018
Non-vested shares at beginning of year549,845 532,336 398,210 
Granted151,639 186,281 279,441 
Vested(114,282)(109,651)(100,035)
Canceled(34,746)(59,121)(45,280)
Non-vested shares at end of year552,456 549,845 532,336 
Schedule of Unrecognized Compensation Costs
As of December 31, 2020, there was $16.2 million of unrecognized compensation cost included in equity on the consolidated balance sheet related to restricted stock, which is expected to be recognized as compensation expense in future periods as shown in the table below.
2021$5,912 
20223,787 
20232,488 
20241,604 
20251,009 
2026 and thereafter1,374 
$16,174 
Schedule of Non-employee Directors Compensation Plan The following table provides the number of shares awarded under this plan for the years ended December 31, 2020, 2019, and 2018.
Shares issued -
not deferred
Shares issued-
deferred
Total
Year ended December 31, 202012,740 16,513 29,253 
Year ended December 31, 20199,588 11,212 20,800 
Year ended December 31, 20188,029 10,680 18,709 
v3.20.4
Fair Value (Tables)
12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the year ended December 31, 2020.
 As of December 31, 2020As of December 31, 2019
 Level 1Level 2TotalLevel 1Level 2Total
Assets:   
Investments (a):
Student loan asset-backed and other debt securities - available-for-sale$— 348,504 348,504 — 52,597 52,597 
Equity securities10,114 — 10,114 — 
Equity securities measured at net asset value (b)31,927 12,894 
Debt securities - available-for-sale103 — 103 104 — 104 
Total investments10,217 348,504 390,648 110 52,597 65,601 
      Total assets$10,217 348,504 390,648 110 52,597 65,601 

(a)    Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and include investments traded on an active exchange, such as the New York Stock Exchange, and corporate bonds, mortgage-backed securities, U.S. government bonds, and U.S. Treasury securities that trade in active markets. Level 2 investments include student loan asset-backed securities and municipal bonds. The fair value for the student loan asset-backed securities is determined using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk.
(b)    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 December 31, 2020
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$20,454,132 19,391,045 — — 20,454,132 
Accrued loan interest receivable794,611 794,611 — 794,611 — 
Cash and cash equivalents121,249 121,249 121,249 — — 
Investments (at fair value)390,648 390,648 10,217 348,504 — 
Beneficial interest in loan securitizations 58,709 58,331 — — 58,709 
Restricted cash553,175 553,175 553,175 — — 
Restricted cash – due to customers283,971 283,971 283,971 — — 
Financial liabilities:  
Bonds and notes payable19,270,810 19,320,726 — 19,270,810 — 
Accrued interest payable28,701 28,701 — 28,701 — 
Bank deposits54,599 54,633 48,422 6,177 — 
Due to customers301,471 301,471 301,471 — — 

 As of December 31, 2019
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$21,477,630 20,669,371 — — 21,477,630 
Accrued loan interest receivable733,497 733,497 — 733,497 — 
Cash and cash equivalents133,906 133,906 133,906 — — 
Investments (at fair value)65,601 65,601 110 52,597 — 
Beneficial interest in loan securitizations33,258 33,187 — — 33,258 
Restricted cash650,939 650,939 650,939 — — 
Restricted cash – due to customers437,756 437,756 437,756 — — 
Financial liabilities:  
Bonds and notes payable20,479,095 20,529,054 — 20,479,095 — 
Accrued interest payable47,285 47,285 — 47,285 — 
Due to customers437,756 437,756 437,756 — — 
v3.20.4
Quarterly Financial Information (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information
2020
First
quarter
Second
quarter
Third
quarter
Fourth
quarter
Net interest income$55,073 66,635 81,322 86,556 
(Provision) negative provision for loan losses(76,299)(2,999)5,821 10,116 
Net interest income (loss) after provision (negative provision) for loan losses(21,226)63,636 87,143 96,672 
Loan servicing and systems revenue112,735 111,042 113,794 113,990 
Education technology, services, and payment processing revenue83,675 59,304 74,121 65,097 
Communications revenue18,181 18,998 20,211 19,253 
Other8,281 60,127 1,502 (12,350)
Gain on sale of loans18,206 — 14,817 — 
Gain from deconsolidation of ALLO— — — 258,588 
Impairment expense and provision for beneficial interests(34,087)(332)— 9,696 
Derivative market value adjustments and derivative settlements, net(16,365)1,910 1,049 (11,059)
Cost to provide education technology, services, and payment processing services(22,806)(15,376)(25,243)(18,782)
Cost to provide communications services(5,582)(5,743)(5,914)(5,573)
Salaries and benefits(119,878)(119,247)(126,096)(136,612)
Depreciation and amortization(27,648)(29,393)(30,308)(31,350)
Other expenses(43,384)(37,052)(34,744)(45,391)
Income tax benefit (expense)10,133 (21,264)(19,156)(70,573)
Net (loss) income(39,765)86,610 71,176 231,606 
Net (income) loss attributable to noncontrolling interests(767)(128)327 3,385 
Net (loss) income attributable to Nelnet, Inc.$(40,532)86,482 71,503 234,991 
Earnings per common share:
Net (loss) income attributable to Nelnet, Inc. shareholders - basic and diluted$(1.01)2.21 1.86 6.10 
2019
First quarterSecond quarterThird quarterFourth quarter
Net interest income$58,816 59,825 66,457 64,252 
Provision for loan losses(7,000)(9,000)(10,000)(13,000)
Net interest income after provision for loan losses51,816 50,825 56,457 51,252 
Loan servicing and systems revenue114,898 113,985 113,286 113,086 
Education technology, services, and payment processing revenue79,159 60,342 74,251 63,578 
Communications revenue14,543 15,758 16,470 17,499 
Other9,067 14,440 13,439 10,973 
Gain on sale of loans— 1,712 — 15,549 
Derivative market value adjustments and derivative settlements, net(11,539)(24,088)1,668 3,170 
Cost to provide education technology, services, and payment processing services(21,059)(15,871)(25,671)(19,002)
Cost to provide communications services(4,759)(5,101)(5,236)(5,327)
Salaries and benefits(111,059)(111,214)(116,670)(124,561)
Depreciation and amortization(24,213)(24,484)(27,701)(28,651)
Other expenses(43,816)(45,417)(58,329)(46,710)
Income tax expense(11,391)(6,209)(8,829)(9,022)
Net income41,647 24,678 33,135 41,834 
Net loss (income) attributable to noncontrolling interests(56)(59)77 546 
Net income attributable to Nelnet, Inc.$41,591 24,619 33,212 42,380 
Earnings per common share:
Net income attributable to Nelnet, Inc. shareholders - basic and diluted$1.03 0.61 0.83 1.06 
v3.20.4
Condensed Parent Company Financial Statements (Tables)
12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
Parent Only Balance Sheet
Balance Sheets
(Parent Company Only)
As of December 31, 2020 and 2019
20202019
Assets:
Cash and cash equivalents$69,687 73,144 
Investments and notes receivable707,332 137,229 
Investment in subsidiary debt38,903 13,818 
Restricted cash93,271 9,567 
Investment in subsidiaries1,963,413 2,181,122 
Notes receivable from subsidiaries21,209 42,552 
Other assets115,631 100,059 
Total assets$3,009,446 2,557,491 
Liabilities:
Notes payable$236,317 67,655 
Other liabilities140,710 97,952 
Total liabilities377,027 165,607 
Equity:
Nelnet, Inc. shareholders' equity:
Common stock384 398 
Additional paid-in capital3,794 5,715 
Retained earnings2,621,762 2,377,627 
Accumulated other comprehensive earnings6,102 2,972 
Total Nelnet, Inc. shareholders' equity2,632,042 2,386,712 
Noncontrolling interest377 5,172 
Total equity2,632,419 2,391,884 
Total liabilities and shareholders' equity$3,009,446 2,557,491 
Parent Only Income Statement
Statements of Income
(Parent Company Only)
Years ended December 31, 2020, 2019, and 2018
 202020192018
Investment interest income$4,110 4,925 17,707 
Interest expense on bonds and notes payable3,179 9,588 9,270 
Net interest income (expense)931 (4,663)8,437 
Other income/expense:   
Other income40,904 8,384 13,944 
Gain from debt repurchases1,962 136 359 
Equity in subsidiaries income
132,101 182,346 158,364 
Gain from deconsolidation of ALLO258,588 — — 
Derivative market value adjustments and derivative settlements, net
(24,465)(30,789)71,085 
Total other income/expense409,090 160,077 243,752 
Operating expenses14,006 19,561 4,795 
Income before income taxes396,015 135,853 247,394 
Income tax (expense) benefit(43,577)5,950 (19,481)
Net income352,438 141,803 227,913 
Net loss attributable to noncontrolling interest
— — 
Net income attributable to Nelnet, Inc.
$352,443 141,803 227,913 
Parent Only Statement of Other Comprehensive Income
Statements of Comprehensive Income
(Parent Company Only)
Years ended December 31, 2020, 2019, and 2018
202020192018
Net income$352,438 141,803 227,913 
Other comprehensive income (loss):
Available-for-sale securities:
Unrealized holding gains (losses) arising during period, net6,637 (1,199)1,056 
Reclassification adjustment for gains recognized in net
income, net of losses
(2,521)— (978)
Income tax effect(986)288 (69)
Total other comprehensive income (loss)3,130 (911)
Comprehensive income355,568 140,892 227,922 
Comprehensive loss attributable to noncontrolling interest— — 
Comprehensive income attributable to Nelnet, Inc.$355,573 140,892 227,922 
Parent Only Statement of Cash Flows
Statements of Cash Flows
(Parent Company Only)
Years ended December 31, 2020, 2019, and 2018
202020192018
Net income attributable to Nelnet, Inc.$352,443 141,803 227,913 
Net loss attributable to noncontrolling interest(5)— — 
Net income352,438 141,803 227,913 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization534 467 442 
Derivative market value adjustments28,144 76,195 (1,014)
(Payments to) proceeds from termination of derivative instruments, net— (12,530)10,283 
(Payments to) proceeds from clearinghouse - initial and variation margin, net(26,747)(70,685)40,382 
Equity in earnings of subsidiaries(132,101)(182,346)(158,364)
Gain from deconsolidation of ALLO, including cash impact(287,579)— — 
Gain from debt repurchases(1,962)(136)(359)
Gain from investments, net(46,019)(3,969)(11,177)
Deferred income tax expense (benefit)23,747 (19,183)21,814 
Non-cash compensation expense16,739 6,781 6,539 
Impairment expense7,784 — — 
Other(329)(481)(4,770)
(Increase) decrease in other assets(17,410)(10,672)25,252 
Increase (decrease) in other liabilities26,009 29,384 (9,621)
Net cash (used in) provided by operating activities(56,752)(45,372)147,320 
Cash flows from investing activities:
Purchases of available-for-sale securities(342,563)— (46,382)
Proceeds from sales of available-for-sale securities168,555 — 75,605 
Capital distributions/contributions from/to subsidiaries, net99,830 449,602 (334,280)
Decrease (increase) in notes receivable from subsidiaries21,343 14,421 (31,325)
(Purchases of) proceeds from subsidiary debt, net(25,085)— 61,841 
Increase in guaranteed payment from subsidiary— — (70,270)
Purchases of other investments(54,637)(47,106)(28,610)
Proceeds from other investments8,564 27,926 7,783 
Net cash (used in) provided by investing activities(123,993)444,843 (365,638)
Cash flows from financing activities:
Payments on notes payable(20,381)(361,272)(8,651)
Proceeds from issuance of notes payable190,520 60,000 300,000 
Payments of debt issuance costs(49)(1,129)(827)
Dividends paid(31,778)(29,485)(26,839)
Repurchases of common stock(73,358)(40,411)(45,331)
Proceeds from issuance of common stock1,653 1,552 1,359 
Acquisition of noncontrolling interest(600)— (13,449)
Issuance of noncontrolling interest194,985 878 13 
Net cash provided by (used in) financing activities260,992 (369,867)206,275 
Net increase (decrease) in cash, cash equivalents, and restricted cash80,247 29,604 (12,043)
Cash, cash equivalents, and restricted cash, beginning of period82,711 53,107 65,150 
Cash, cash equivalents, and restricted cash, end of period$162,958 82,711 53,107 
Cash disbursements made for:
Interest$2,577 9,501 8,628 
Income taxes, net of refunds and credits$29,685 17,672 473 
Noncash investing and financing activities:
Recapitalization of accrued interest payable to accrued guaranteed payment$— — 6,674 
Recapitalization of note payable to guaranteed payment$— — 186,429 
Recapitalization of guaranteed payment to investment in subsidiary$— — 273,360 
Contribution to subsidiary, net$49,066 — — 
v3.20.4
Recent Developments - ALLO Recapitalization (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 22, 2020
Oct. 15, 2020
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restructuring Cost and Reserve [Line Items]                    
Issuance of noncontrolling interests               $ 205,768 $ 4,650 $ 918
Gain from deconsolidation of ALLO       $ 258,588 $ 0 $ 0 $ 0 258,588 $ 0 $ 0
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations | ALLO                    
Restructuring Cost and Reserve [Line Items]                    
Gain from deconsolidation of ALLO   $ 258,588                
Equity method investment, preferred $ 228,900 $ 228,530   $ 228,900       $ 228,900    
Equity method investment, preferred annual return 6.25%     6.25%       6.25%    
ALLO                    
Restructuring Cost and Reserve [Line Items]                    
Issuance of noncontrolling interests     $ 160,000              
Sale of stock, percentage ownership after transaction 45.00%                  
ALLO                    
Restructuring Cost and Reserve [Line Items]                    
Sale of stock, consideration received on transaction     $ 197,000              
SDC ALLO Holdings, LLC [Member] | ALLO                    
Restructuring Cost and Reserve [Line Items]                    
Sale of stock, percentage ownership after transaction 48.00%                  
Members Of ALLO Management [Member] | ALLO                    
Restructuring Cost and Reserve [Line Items]                    
Sale of stock, percentage ownership after transaction 7.00%                  
v3.20.4
Recent Developments - ALLO Recapitalization - Schedule of Assets and Liabilities Deconsolidated (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 22, 2020
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restructuring Cost and Reserve [Line Items]                
Gain from deconsolidation of ALLO   $ 258,588 $ 0 $ 0 $ 0 $ 258,588 $ 0 $ 0
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations | ALLO                
Restructuring Cost and Reserve [Line Items]                
Voting interest/equity method investment - recorded at fair value $ 132,960              
Preferred membership interest investment - recorded at fair value 228,530 $ 228,900       $ 228,900    
Cash and cash equivalents – not held at a related party (299)              
Cash and cash equivalents – held at a related party (28,692)              
Accounts receivable (4,138)              
Goodwill (21,112)              
Intangible assets (6,083)              
Property and equipment, net (245,295)              
Other assets (29,643)              
Other liabilities 24,185              
Noncontrolling interests 208,175              
Gain from deconsolidation of ALLO $ 258,588              
v3.20.4
Recent Developments - ALLO Recapitalization - Schedule of Recapitalization (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restructuring and Related Activities [Abstract]              
Gain from deconsolidation of ALLO $ 258,588 $ 0 $ 0 $ 0 $ 258,588 $ 0 $ 0
Compensation expense (note 1)         9,298    
Obligation to SDC (note 2)         2,339    
Total impact to operating results, deconsolidation         246,951    
Contingent consideration, liability, lower estimate         25,000    
Contingent consideration, liability, higher estimate         35,000    
Contingent consideration, liability $ 2,300       $ 2,300    
v3.20.4
Summary of Significant Accounting Policies and Practices - Variable Interest Entities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract]    
Maximum exposure to loss, syndicated to other investors $ 15,600 $ 3,000
Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract]    
Investment carrying amount (30,373) 7,562
Tax credits subject to recapture 117,740 67,069
Unfunded capital and other commitments 17,462 14,006
Maximum exposure to loss $ 104,829 $ 88,637
ALLO Communications | Variable Interest Entity, Primary Beneficiary    
Variable Interest Entity [Line Items]    
Ownership percentage by parent 45.00%  
Percent of operating decision voting power 43.00%  
v3.20.4
Summary of Significant Accounting Policies and Practices - Noncontrolling Interest (Details)
Jan. 01, 2012
Whitetail Rock  
Noncontrolling Interest [Line Items]  
Noncontrolling interest, ownership percentage 10.00%
v3.20.4
Summary of Significant Accounting Policies and Practices - Loans Receivable (Details) - USD ($)
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]      
Loans receivable $ 19,576,651,000 $ 20,798,719,000 $ 20,798,719,000
Held for sale      
Loans and Leases Receivable Disclosure [Line Items]      
Loans receivable $ 0    
v3.20.4
Summary of Significant Accounting Policies and Practices - Cash and Cash Equivalents and Statement of Cash Flows (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Accounting Policies [Abstract]      
Purchased accrued interest $ 92.3 $ 112.9 $ 181.0
v3.20.4
Summary of Significant Accounting Policies and Practices - Revenue Recognition (Details)
12 Months Ended
Dec. 31, 2020
Revenue recognition additional information [Line Items]  
Rebate fee on consolidation loans 1.05%
Stafford Loan | Federally insured loans  
Revenue recognition additional information [Line Items]  
Constant prepayment rate 5.00%
Consolidation loans | Federally insured loans  
Revenue recognition additional information [Line Items]  
Constant prepayment rate 3.00%
v3.20.4
Summary of Significant Accounting Policies and Practices - Compensation Expense for Stock Based Awards (Details)
12 Months Ended
Dec. 31, 2020
Restricted Stock  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period (up to) 10 years
v3.20.4
Summary of Significant Accounting Policies and Practices - Accounting Standards Adopted in 2020 (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Increase in allowance for loan losses $ (175,698) $ (152,928) $ (61,914) $ (60,388) $ (54,590)
Decrease in retained earnings 2,628,349   2,391,094 2,314,779 2,165,387
Decrease in retained earnings 2,621,762 2,358,759 2,377,627    
Retained earnings          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Decrease in retained earnings $ 2,621,762   2,377,627 2,299,556 2,143,983
Cumulative Effect, Period of Adoption, Adjustment          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Increase in allowance for loan losses     (91,014) 0 0
Decrease in retained earnings     (18,868) $ (6,077) 1,264
Decrease in retained earnings   $ (18,900) (18,868)    
Increase in non-accretable discount     32,400    
Cumulative Effect, Period of Adoption, Adjustment | Retained earnings          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Increase in allowance for loan losses     (91,000)    
Decrease in retained earnings     $ (18,868)   $ 2,007
v3.20.4
Summary of Significant Accounting Policies and Practices - Schedule of ASC 326 Adjustments (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Loans receivable $ 19,576,651 $ 20,798,719 $ 20,798,719    
Accrued interest receivable 794,611 733,497 733,497    
Loan discount, net of unamortized loan premiums and deferred origination costs (9,908) (1,246) (35,036)    
Non-accretable discount 0 0 (32,398)    
Allowance for loan losses (175,698) (152,928) (61,914) $ (60,388) $ (54,590)
Loans receivable, net 20,185,656 21,378,042 21,402,868    
Other liabilities 312,280 297,823 303,781    
Retained earnings $ 2,621,762 2,358,759 2,377,627    
Cumulative Effect, Period of Adoption, Adjustment          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Loans receivable     0    
Accrued interest receivable     0    
Loan discount, net of unamortized loan premiums and deferred origination costs     33,790    
Non-accretable discount     32,398    
Allowance for loan losses     (91,014) $ 0 $ 0
Loans receivable, net     (24,826)    
Other liabilities     (5,958)    
Retained earnings   $ (18,900) $ (18,868)    
v3.20.4
Summary of Significant Accounting Policies and Practices - Loans Receivable (Details)
12 Months Ended
Dec. 31, 2020
Stafford Loan  
Loans and Leases Receivable Disclosure [Line Items]  
Federally insured loans repayment period 5 years
Student Loans, PLUS  
Loans and Leases Receivable Disclosure [Line Items]  
Federally insured loans repayment period 10 years
Federal Family Education Loan Program (FFELP) Guaranteed Loans | Minimum  
Loans and Leases Receivable Disclosure [Line Items]  
Federally insured loans repayment period 12 years
Federal Family Education Loan Program (FFELP) Guaranteed Loans | Maximum  
Loans and Leases Receivable Disclosure [Line Items]  
Federally insured loans repayment period 30 years
Private education loans  
Loans and Leases Receivable Disclosure [Line Items]  
Uninsured loans, repayment period 30 years
Consumer loans  
Loans and Leases Receivable Disclosure [Line Items]  
Uninsured loans, repayment period 6 years
v3.20.4
Loans Receivable and Allowance for Loan Losses - Loans Receivable (Details) - USD ($)
$ in Thousands
12 Months Ended
Jul. 29, 2020
Jan. 30, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Jan. 01, 2020
Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]              
Loans receivable     $ 19,576,651 $ 20,798,719   $ 20,798,719  
Accrued interest receivable     794,611 733,497   733,497  
Loan discount, net of unamortized loan premiums and deferred origination costs     (9,908) (35,036)   (1,246)  
Non-accretable discount     0 (32,398)   0  
Allowance for loan losses     (175,698) (61,914) $ (60,388) (152,928) $ (54,590)
Loans receivable, net     20,185,656 21,402,868   $ 21,378,042  
Gain on sale of loans     33,023 17,261 0    
Securitization interest percent 25.40%            
Federally insured loans              
Accounts, Notes, Loans and Financing Receivable [Line Items]              
Loans receivable     19,129,173 20,328,543      
Allowance for loan losses     (128,590) (36,763) (42,310)   (38,706)
Federally insured loans | Stafford and other loans              
Accounts, Notes, Loans and Financing Receivable [Line Items]              
Loans receivable     4,383,000 4,684,314      
Federally insured loans | Consolidation loans              
Accounts, Notes, Loans and Financing Receivable [Line Items]              
Loans receivable     14,746,173 15,644,229      
Private education loans              
Accounts, Notes, Loans and Financing Receivable [Line Items]              
Loans receivable     338,132 244,258      
Accrued interest receivable     2,157        
Loan discount, net of unamortized loan premiums and deferred origination costs     2,957        
Allowance for loan losses     (19,852) (9,597) (10,838)   (12,629)
Loans receivable, net     323,394        
Consumer loans              
Accounts, Notes, Loans and Financing Receivable [Line Items]              
Loans receivable     109,346 225,918      
Accrued interest receivable     1,001        
Loan discount, net of unamortized loan premiums and deferred origination costs     1,640        
Allowance for loan losses     (27,256) $ (15,554) $ (7,240)   $ (3,255)
Loans receivable, net     $ 84,731        
Loans sold, par value $ 60,800 $ 124,200          
Gain on sale of loans $ 14,800 $ 18,200          
Loans sold, residual interest received   31.40%          
v3.20.4
Loans Receivable and Allowance for Loan Losses - Activity in the Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Roll Forward]                      
Balance at beginning of period       $ 61,914       $ 60,388 $ 61,914 $ 60,388 $ 54,590
Provision for loan losses $ (10,116) $ (5,821) $ 2,999 76,299 $ 13,000 $ 10,000 $ 9,000 7,000 63,360 39,000 23,000
Charge-offs                 (28,729) (28,010) (18,867)
Recoveries                 1,763 1,536 665
Initial allowance on loans purchase with credit deterioration                 15,800 0 0
Loan sale and other                 (29,424) (11,000) 1,000
Balance at end of period 175,698       61,914       175,698 $ 61,914 $ 60,388
Financing receivable, purchased with credit deterioration, amount at par value                 $ 835,000    
Accounting Standards Update [Extensible List]                 us-gaap:AccountingStandardsUpdate201613Member us-gaap:AccountingStandardsUpdate201613Member us-gaap:AccountingStandardsUpdate201602Member
Cumulative Effect, Period of Adoption, Adjustment                      
Financing Receivable, Allowance for Credit Losses [Roll Forward]                      
Balance at beginning of period       91,014       0 $ 91,014 $ 0 $ 0
Balance at end of period         91,014         91,014 0
Federally insured loans                      
Financing Receivable, Allowance for Credit Losses [Roll Forward]                      
Balance at beginning of period       36,763       42,310 36,763 42,310 38,706
Provision for loan losses                 18,691 8,000 14,000
Charge-offs                 (14,955) (13,547) (11,396)
Recoveries                 0 0 0
Initial allowance on loans purchase with credit deterioration                 15,800 0 0
Loan sale and other                 0 0 1,000
Balance at end of period 128,590       36,763       128,590 36,763 42,310
Federally insured loans | Cumulative Effect, Period of Adoption, Adjustment                      
Financing Receivable, Allowance for Credit Losses [Roll Forward]                      
Balance at beginning of period       72,291       0 72,291 0 0
Balance at end of period         72,291         72,291 0
Private education loans                      
Financing Receivable, Allowance for Credit Losses [Roll Forward]                      
Balance at beginning of period       9,597       10,838 9,597 10,838 12,629
Provision for loan losses                 6,486 0 0
Charge-offs                 (1,659) (1,965) (2,415)
Recoveries                 631 724 624
Initial allowance on loans purchase with credit deterioration                 0 0 0
Loan sale and other                 0 0 0
Balance at end of period 19,852       9,597       19,852 9,597 10,838
Private education loans | Cumulative Effect, Period of Adoption, Adjustment                      
Financing Receivable, Allowance for Credit Losses [Roll Forward]                      
Balance at beginning of period       4,797       0 4,797 0 0
Balance at end of period         4,797         4,797 0
Consumer loans                      
Financing Receivable, Allowance for Credit Losses [Roll Forward]                      
Balance at beginning of period       15,554       7,240 15,554 7,240 3,255
Provision for loan losses                 38,183 31,000 9,000
Charge-offs                 (12,115) (12,498) (5,056)
Recoveries                 1,132 812 41
Initial allowance on loans purchase with credit deterioration                 0 0 0
Loan sale and other                 (29,424) (11,000) 0
Balance at end of period $ 27,256       15,554       27,256 15,554 7,240
Consumer loans | Cumulative Effect, Period of Adoption, Adjustment                      
Financing Receivable, Allowance for Credit Losses [Roll Forward]                      
Balance at beginning of period       $ 13,926       $ 0 $ 13,926 0 0
Balance at end of period         $ 13,926         $ 13,926 $ 0
v3.20.4
Loans Receivable and Allowance for Loan Losses - Student Loan Status and Delinquency (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Loans in repayment status:          
Total loans $ 19,576,651 $ 20,798,719 $ 20,798,719    
Accrued interest receivable 794,611 733,497 733,497    
Loan discount, net of unamortized loan premiums and deferred origination costs (9,908) (1,246) (35,036)    
Allowance for loan losses (175,698) (152,928) (61,914) $ (60,388) $ (54,590)
Loans receivable, net $ 20,185,656 $ 21,378,042 $ 21,402,868    
Federally insured loans, excluding rehabiliation loans          
Financing Receivable, Credit Quality Indicator [Line Items]          
Loans in repayment, percent 84.30%   88.10% 87.70%  
Loans in repayment status:          
Total loans, percent 100.00%   100.00% 100.00%  
Federally insured loans          
Loans in repayment status:          
Total loans $ 19,129,173   $ 20,328,543    
Allowance for loan losses (128,590)   (36,763) $ (42,310) (38,706)
Federally insured loans | Federally insured loans, excluding rehabiliation loans          
Financing Receivable, Credit Quality Indicator [Line Items]          
Loans in-school/grace/deferment 1,036,028   1,074,678 1,298,493  
Loans in forbearance $ 1,973,175   $ 1,339,821 $ 1,430,291  
Loans in grace and deferment, percent 5.40%   5.30% 5.90%  
Loans in forbearance, percent 10.30%   6.60% 6.40%  
Loans in repayment status:          
Loans current $ 13,683,054   $ 15,410,993 $ 16,882,252  
Loans current, percentage 84.90%   86.00% 86.90%  
Total loans in repayment $ 16,119,970   $ 17,914,044 $ 19,427,112  
Total loans in repayment, percentage 100.00%   100.00% 100.00%  
Total loans $ 19,129,173   $ 20,328,543 $ 22,155,896  
Accrued interest receivable 791,453   730,059 675,898  
Loan discount, net of unamortized loan premiums and deferred origination costs (14,505)   (35,822) (54,546)  
Non-accretable discount 0   (28,036) (23,833)  
Allowance for loan losses (128,590)   (36,763) (42,310)  
Loans receivable, net 19,777,531   20,957,981 22,711,105  
Federally insured loans | Loans delinquent 31-60 days | Federally insured loans, excluding rehabiliation loans          
Loans in repayment status:          
Loans past due $ 633,411   $ 650,796 $ 683,084  
Loans past due, percentage 3.90%   3.60% 3.50%  
Federally insured loans | Loans delinquent 61-90 days | Federally insured loans, excluding rehabiliation loans          
Loans in repayment status:          
Loans past due $ 307,936   $ 428,879 $ 427,764  
Loans past due, percentage 1.90%   2.40% 2.20%  
Federally insured loans | Loans delinquent 91-120 days | Federally insured loans, excluding rehabiliation loans          
Loans in repayment status:          
Loans past due $ 800,257   $ 310,851 $ 283,831  
Loans past due, percentage 5.00%   1.70% 1.50%  
Federally insured loans | Loans delinquent 121-270 days | Federally insured loans, excluding rehabiliation loans          
Loans in repayment status:          
Loans past due $ 674,975   $ 812,107 $ 806,692  
Loans past due, percentage 4.20%   4.50% 4.20%  
Federally insured loans | Loans delinquent 271 days or greater | Federally insured loans, excluding rehabiliation loans          
Loans in repayment status:          
Loans past due $ 20,337   $ 300,418 $ 343,489  
Loans past due, percentage 0.10%   1.80% 1.70%  
Private education loans          
Loans in repayment status:          
Total loans $ 338,132   $ 244,258    
Accrued interest receivable 2,157        
Loan discount, net of unamortized loan premiums and deferred origination costs 2,957        
Allowance for loan losses (19,852)   (9,597) $ (10,838) (12,629)
Loans receivable, net 323,394        
Private education loans | Private education loans          
Financing Receivable, Credit Quality Indicator [Line Items]          
Loans in-school/grace/deferment 5,049   4,493 4,320  
Loans in forbearance $ 2,388   $ 3,108 $ 1,494  
Loans in grace and deferment, percent 1.50%   1.80% 1.90%  
Loans in forbearance, percent 0.70%   1.30% 0.70%  
Loans in repayment, percent 97.80%   96.90% 97.40%  
Loans in repayment status:          
Loans current $ 327,550   $ 227,013 $ 208,977  
Loans current, percentage 99.10%   95.90% 95.00%  
Total loans in repayment $ 330,695   $ 236,657 $ 220,161  
Total loans in repayment, percentage 100.00%   100.00% 100.00%  
Total loans $ 338,132   $ 244,258 $ 225,975  
Total loans, percent 100.00%   100.00% 100.00%  
Accrued interest receivable $ 2,157   $ 1,558 $ 1,126  
Loan discount, net of unamortized loan premiums and deferred origination costs 2,957   46 (1,245)  
Non-accretable discount 0   (4,362) (5,563)  
Allowance for loan losses (19,852)   (9,597) (10,838)  
Loans receivable, net 323,394   231,903 209,455  
Private education loans | Loans delinquent 31-60 days | Private education loans          
Loans in repayment status:          
Loans past due $ 1,099   $ 2,814 $ 3,626  
Loans past due, percentage 0.30%   1.20% 1.60%  
Private education loans | Loans delinquent 61-90 days | Private education loans          
Loans in repayment status:          
Loans past due $ 675   $ 1,694 $ 1,560  
Loans past due, percentage 0.20%   0.70% 0.70%  
Private education loans | Loans delinquent 91 days or greater | Private education loans          
Loans in repayment status:          
Loans past due $ 1,371   $ 5,136 $ 5,998  
Loans past due, percentage 0.40%   2.20% 2.70%  
Consumer loans          
Loans in repayment status:          
Total loans $ 109,346   $ 225,918    
Accrued interest receivable 1,001        
Loan discount, net of unamortized loan premiums and deferred origination costs 1,640        
Allowance for loan losses (27,256)   (15,554) $ (7,240) $ (3,255)
Loans receivable, net 84,731        
Consumer loans | Consumer loans          
Financing Receivable, Credit Quality Indicator [Line Items]          
Loans in-school/grace/deferment $ 829        
Loans in grace and deferment, percent 0.80%        
Loans in repayment, percent 99.20%        
Loans in repayment status:          
Loans current $ 105,650   $ 220,404 $ 136,130  
Loans current, percentage 97.40%   97.50% 98.20%  
Total loans in repayment $ 108,517   $ 225,918 $ 138,627  
Total loans in repayment, percentage 100.00%   100.00% 100.00%  
Total loans $ 109,346   $ 225,918 $ 138,627  
Total loans, percent 100.00%        
Accrued interest receivable $ 1,001   1,880 665  
Loan discount, net of unamortized loan premiums and deferred origination costs 1,640   740 2,219  
Allowance for loan losses (27,256)   (15,554) (7,240)  
Loans receivable, net 84,731   212,984 134,271  
Consumer loans | Loans delinquent 31-60 days | Consumer loans          
Loans in repayment status:          
Loans past due $ 954   $ 2,046 $ 1,012  
Loans past due, percentage 0.90%   0.90% 0.70%  
Consumer loans | Loans delinquent 61-90 days | Consumer loans          
Loans in repayment status:          
Loans past due $ 804   $ 1,545 $ 832  
Loans past due, percentage 0.70%   0.70% 0.60%  
Consumer loans | Loans delinquent 91 days or greater | Consumer loans          
Loans in repayment status:          
Loans past due $ 1,109   $ 1,923 $ 653  
Loans past due, percentage 1.00%   0.90% 0.50%  
v3.20.4
Loans Receivable and Allowance for Loan Losses - Loan Receivables and Credit Quality (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Financing Receivable, Credit Quality Indicator [Line Items]          
Total loans $ 19,576,651 $ 20,798,719 $ 20,798,719    
Accrued interest receivable 794,611 733,497 733,497    
Loan discount, net of unamortized loan premiums and deferred origination costs (9,908) (1,246) (35,036)    
Allowance for loan losses (175,698) (152,928) (61,914) $ (60,388) $ (54,590)
Loans receivable, net 20,185,656 $ 21,378,042 21,402,868    
Private education loans          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 113,907        
2019 81,016        
2018 958        
2017 0        
2016 5,983        
Prior years 136,268        
Total loans 338,132   244,258    
Accrued interest receivable 2,157        
Loan discount, net of unamortized loan premiums and deferred origination costs 2,957        
Allowance for loan losses (19,852)   (9,597) (10,838) (12,629)
Loans receivable, net 323,394        
Private education loans | Loans in school/grace/deferment          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 638        
2019 1,518        
2018 0        
2017 0        
2016 206        
Prior years 2,687        
Total loans 5,049        
Private education loans | Loans in forbearance          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 392        
2019 313        
2018 0        
2017 0        
2016 305        
Prior years 1,378        
Total loans 2,388        
Private education loans | Student Loan, In Repayment          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 112,877        
2019 79,185        
2018 958        
2017 0        
2016 5,472        
Prior years 132,203        
Total loans 330,695        
Private education loans | Student Loan, In Repayment | Loans current          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 112,783        
2019 79,161        
2018 958        
2017 0        
2016 5,444        
Prior years 129,204        
Total loans 327,550        
Private education loans | Student Loan, In Repayment | Loans delinquent 31-60 days          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 0        
2019 24        
2018 0        
2017 0        
2016 28        
Prior years 1,047        
Total loans 1,099        
Private education loans | Student Loan, In Repayment | Loans delinquent 61-90 days          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 94        
2019 0        
2018 0        
2017 0        
2016 0        
Prior years 581        
Total loans 675        
Private education loans | Student Loan, In Repayment | Loans delinquent 91 days or greater          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 0        
2019 0        
2018 0        
2017 0        
2016 0        
Prior years 1,371        
Total loans 1,371        
Consumer loans          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 59,562        
2019 23,873        
2018 23,254        
2017 2,657        
2016 0        
Prior years 0        
Total loans 109,346   225,918    
Accrued interest receivable 1,001        
Loan discount, net of unamortized loan premiums and deferred origination costs 1,640        
Allowance for loan losses (27,256)   $ (15,554) $ (7,240) $ (3,255)
Loans receivable, net 84,731        
Consumer loans | Loans in school/grace/deferment | Loans current          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 62        
2019 447        
2018 317        
2017 3        
2016 0        
Prior years 0        
Total loans 829        
Consumer loans | Student Loan, In Repayment          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 59,500        
2019 23,426        
2018 22,937        
2017 2,654        
2016 0        
Prior years 0        
Total loans 108,517        
Consumer loans | Student Loan, In Repayment | Loans current          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 58,738        
2019 22,213        
2018 22,098        
2017 2,601        
2016 0        
Prior years 0        
Total loans 105,650        
Consumer loans | Student Loan, In Repayment | Loans delinquent 31-60 days          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 405        
2019 371        
2018 159        
2017 19        
2016 0        
Prior years 0        
Total loans 954        
Consumer loans | Student Loan, In Repayment | Loans delinquent 61-90 days          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 264        
2019 390        
2018 130        
2017 20        
2016 0        
Prior years 0        
Total loans 804        
Consumer loans | Student Loan, In Repayment | Loans delinquent 91 days or greater          
Financing Receivable, Credit Quality Indicator [Line Items]          
2020 93        
2019 452        
2018 550        
2017 14        
2016 0        
Prior years 0        
Total loans $ 1,109        
v3.20.4
Bonds and Notes Payable - Outstanding Debt Obligations (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]    
Bonds and notes payable $ 19,320,726 $ 20,529,054
Discount on bonds and notes payable and debt issuance costs (238,123) (274,126)
Bonds and notes based on indices | Federally insured student loans    
Debt Instrument [Line Items]    
Bonds and notes payable $ 17,127,643 $ 18,428,998
Bonds and notes based on indices | Federally insured student loans | Minimum    
Debt Instrument [Line Items]    
Interest rate 0.28% 1.98%
Bonds and notes based on indices | Federally insured student loans | Maximum    
Debt Instrument [Line Items]    
Interest rate 2.05% 3.61%
Bonds and notes based on auction | Federally insured student loans    
Debt Instrument [Line Items]    
Bonds and notes payable $ 749,925 $ 768,626
Bonds and notes based on auction | Federally insured student loans | Minimum    
Debt Instrument [Line Items]    
Interest rate 1.12% 2.75%
Bonds and notes based on auction | Federally insured student loans | Maximum    
Debt Instrument [Line Items]    
Interest rate 2.14% 3.60%
Variable-rate bonds and notes | Federally insured student loans    
Debt Instrument [Line Items]    
Bonds and notes payable $ 17,877,568 $ 19,197,624
Variable-rate bonds and notes | Private education loans    
Debt Instrument [Line Items]    
Bonds and notes payable $ 49,025 $ 73,308
Variable-rate bonds and notes | Private education loans | Minimum    
Debt Instrument [Line Items]    
Interest rate 1.65% 3.15%
Variable-rate bonds and notes | Private education loans | Maximum    
Debt Instrument [Line Items]    
Interest rate 1.90% 3.54%
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | Federally insured student loans    
Debt Instrument [Line Items]    
Bonds and notes payable $ 923,076 $ 512,836
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | Federally insured student loans | Minimum    
Debt Instrument [Line Items]    
Interest rate 1.42% 2.00%
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | Federally insured student loans | Maximum    
Debt Instrument [Line Items]    
Interest rate 3.45% 3.45%
Warehouse facilities | FFELP warehouse facilities    
Debt Instrument [Line Items]    
Bonds and notes payable $ 252,165 $ 778,094
Warehouse facilities | FFELP warehouse facilities | Minimum    
Debt Instrument [Line Items]    
Interest rate 0.27% 1.98%
Warehouse facilities | FFELP warehouse facilities | Maximum    
Debt Instrument [Line Items]    
Interest rate 0.31% 2.07%
Warehouse facilities | Private education loans    
Debt Instrument [Line Items]    
Bonds and notes payable $ 150,397  
Interest rate 0.28%  
Warehouse facilities | Consumer loans    
Debt Instrument [Line Items]    
Bonds and notes payable $ 25,809 $ 116,570
Interest rate 0.28% 1.99%
Fixed rate bonds and notes | Private education loans    
Debt Instrument [Line Items]    
Bonds and notes payable $ 37,251 $ 49,367
Fixed rate bonds and notes | Private education loans | Minimum    
Debt Instrument [Line Items]    
Interest rate 3.60% 3.60%
Fixed rate bonds and notes | Private education loans | Maximum    
Debt Instrument [Line Items]    
Interest rate 5.35% 5.35%
Unsecured line of credit    
Debt Instrument [Line Items]    
Bonds and notes payable $ 120,000 $ 50,000
Interest rate 1.65% 3.29%
Unsecured debt - Junior Subordinated Hybrid Securities    
Debt Instrument [Line Items]    
Bonds and notes payable   $ 20,381
Interest rate   5.28%
Other borrowings    
Debt Instrument [Line Items]    
Bonds and notes payable $ 123,558 $ 5,000
Interest rate   3.44%
Other borrowings | Minimum    
Debt Instrument [Line Items]    
Interest rate 0.84%  
Other borrowings | Maximum    
Debt Instrument [Line Items]    
Interest rate 1.90%  
Bonds and notes payable, gross    
Debt Instrument [Line Items]    
Bonds and notes payable $ 19,558,849 $ 20,803,180
v3.20.4
Bonds and Notes Payable - Outstanding Lines of Credit (Details) - Warehouse facilities - FFELP warehouse facilities
Dec. 31, 2020
USD ($)
Line of Credit Facility [Line Items]  
Maximum financing amount $ 310,000,000
Amount outstanding 252,165,000
Amount available 57,835,000
Advanced as equity support 21,209,000
NFSLW-I  
Line of Credit Facility [Line Items]  
Maximum financing amount 260,000,000
Amount outstanding 252,165,000
Amount available 7,835,000
Advanced as equity support 21,209,000
NHELP-II  
Line of Credit Facility [Line Items]  
Maximum financing amount 50,000,000
Amount outstanding 0
Amount available 50,000,000
Advanced as equity support $ 0
v3.20.4
Bonds and Notes Payable - Schedule of Asset-Backed Securitizations (Details) - USD ($)
12 Months Ended
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Debt Instrument [Line Items]      
Loans receivable $ 19,576,651,000 $ 20,798,719,000 $ 20,798,719,000
Asset-Backed Securities Underlying Class B 2020-5 Subordinated Debt      
Debt Instrument [Line Items]      
Loans receivable 7,500,000    
Asset-Backed Securities Underlying Class B 2020-4 Subordinated Debt      
Debt Instrument [Line Items]      
Loans receivable 5,000,000.0    
Asset-backed Securities, Securitized Loans and Receivables      
Debt Instrument [Line Items]      
Loans receivable 40,100,000    
2019-1 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount 496,800,000    
2019-1 Class A-1 Notes | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount 35,700,000    
2019-1 Class A-1 Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 35,700,000    
Bond discount 0    
Issue price $ 35,700,000    
2019-1 Class A-1 Notes | Senior notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 0.30%    
2019-1 Class A-2 Notes | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 448,000,000    
2019-1 Class A-2 Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 448,000,000    
Bond discount 0    
Issue price $ 448,000,000    
2019-1 Class A-2 Notes | Senior notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 0.75%    
2019-1 Class A Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount $ 483,700,000    
Bond discount 0    
Issue price 483,700,000    
2019-1 Class B Notes | Subordinated notes      
Debt Instrument [Line Items]      
Total original principal amount 13,100,000    
Bond discount 0    
Issue price $ 13,100,000    
2019-1 Class B Notes | Subordinated notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 1.40%    
2019-2 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 416,100,000    
2019-2 Class A Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 405,000,000    
Bond discount 0    
Issue price $ 405,000,000    
2019-2 Class A Notes | Senior notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 0.90%    
2019-2 Class B Notes | Subordinated notes      
Debt Instrument [Line Items]      
Total original principal amount $ 11,100,000    
Bond discount 0    
Issue price $ 11,100,000    
2019-2 Class B Notes | Subordinated notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 1.50%    
Private education loan 2019-A | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 47,159,000    
Private education loan 2019-A | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 47,159,000    
Bond discount 0    
Issue price $ 47,159,000    
Private education loan 2019-A | Senior notes | Prime Rate      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) (1.60%)    
2019-3 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 498,300,000    
2019-3 Class A Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 485,800,000    
Bond discount 0    
Issue price $ 485,800,000    
2019-3 Class A Notes | Senior notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 0.80%    
2019-3 Class B Notes | Subordinated notes      
Debt Instrument [Line Items]      
Total original principal amount $ 12,500,000    
Bond discount 0    
Issue price $ 12,500,000    
2019-3 Class B Notes | Subordinated notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 1.55%    
2019-4 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 418,600,000    
2019-4 Class A Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 408,000,000    
Bond discount 0    
Issue price $ 408,000,000    
2019-4 Class A Notes | Senior notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 0.87%    
2019-4 Class B Notes | Subordinated notes      
Debt Instrument [Line Items]      
Total original principal amount $ 10,600,000    
Bond discount 0    
Issue price $ 10,600,000    
2019-4 Class B Notes | Subordinated notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 1.65%    
2019-5 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 374,500,000    
2019-5 Class A Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 364,500,000    
Bond discount (114,000)    
Issue price $ 364,386,000    
Interest rate 2.53%    
2019-5 Class B Notes | Subordinated notes      
Debt Instrument [Line Items]      
Total original principal amount $ 10,000,000    
Bond discount (4,000)    
Issue price $ 9,996,000    
Interest rate 3.45%    
2019-6 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 145,200,000    
2019-6 Class A Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 140,200,000    
Bond discount (26,000)    
Issue price $ 140,174,000    
Interest rate 2.46%    
2019-6 Class B Notes | Subordinated notes      
Debt Instrument [Line Items]      
Total original principal amount $ 5,000,000    
Bond discount (913,000)    
Issue price $ 4,087,000    
Interest rate 2.00%    
2019-7 Class A-1 Notes | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 210,300,000    
2019-7 Class A-1 Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 210,300,000    
Bond discount 0    
Issue price $ 210,300,000    
2019-7 Class A-1 Notes | Senior notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 0.50%    
2019-7 Class A-2 Notes | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 200,000,000    
2019-7 Class A-2 Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 200,000,000    
Bond discount 0    
Issue price $ 200,000,000    
2019-7 Class A-2 Notes | Senior notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 1.00%    
2019-7 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 420,800,000    
2019-7 Class A Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 410,300,000    
Bond discount 0    
Issue price 410,300,000    
2019-7 Class B Notes | Subordinated notes      
Debt Instrument [Line Items]      
Total original principal amount 10,500,000    
Bond discount 0    
Issue price $ 10,500,000    
2019-7 Class B Notes | Subordinated notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 1.75%    
2019 Total | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 2,817,459,000    
2019 Class A Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 2,744,659,000    
Bond discount (140,000)    
Issue price 2,744,519,000    
2019 Class B Notes | Subordinated notes      
Debt Instrument [Line Items]      
Total original principal amount 72,800,000    
Bond discount (917,000)    
Issue price 71,883,000    
Notes 2020-1 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount 435,600,000    
Class A 2020-1 Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 424,600,000    
Bond discount 0    
Issue price $ 424,600,000    
Class A 2020-1 Notes | Senior notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 0.74%    
Class B 2020-1 Notes | Subordinated notes      
Debt Instrument [Line Items]      
Total original principal amount $ 11,000,000    
Bond discount 0    
Issue price $ 11,000,000    
Class B 2020-1 Notes | Subordinated notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 1.75%    
Notes 2020-2 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 272,100,000    
Class A 2020-2 Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 264,300,000    
Bond discount (44,000)    
Issue price $ 264,256,000    
Interest rate 1.83%    
Class B 2020-2 Notes | Subordinated notes      
Debt Instrument [Line Items]      
Total original principal amount $ 7,800,000    
Bond discount (574,000)    
Issue price $ 7,226,000    
Interest rate 2.50%    
Notes 2020-3 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 352,600,000    
Class A 2020-3 Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 343,600,000    
Bond discount (1,503,000)    
Issue price $ 342,097,000    
Class A 2020-3 Notes | Senior notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 0.92%    
Class B 2020-3 Notes | Subordinated notes      
Debt Instrument [Line Items]      
Total original principal amount $ 9,000,000    
Bond discount (284,000)    
Issue price $ 8,716,000    
Class B 2020-3 Notes | Subordinated notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 1.90%    
Notes 2020-4 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 191,300,000    
Class A 2020-4 Notes | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 191,300,000    
Bond discount (19,000)    
Issue price $ 191,281,000    
Interest rate 1.42%    
Notes 2020-5 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 295,000,000    
Class A Notes 2020-5 | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 295,000,000    
Bond discount 0    
Issue price $ 295,000,000    
Class A Notes 2020-5 | Senior notes | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Variable interest rate basis - plus (less) 0.88%    
Notes 2020 | Asset-backed securitizations      
Debt Instrument [Line Items]      
Total original principal amount $ 1,546,600,000    
Class A Notes 2020 | Senior notes      
Debt Instrument [Line Items]      
Total original principal amount 1,518,800,000    
Bond discount (1,566,000)    
Issue price 1,517,234,000    
Class B 2020 Notes | Subordinated notes      
Debt Instrument [Line Items]      
Total original principal amount 27,800,000    
Bond discount (858,000)    
Issue price $ 26,942,000    
v3.20.4
Bonds and Notes Payable - Narrative (Details) - USD ($)
12 Months Ended
May 30, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Feb. 13, 2020
Debt Instrument [Line Items]          
Amount of debt extinguished   $ 27,445,000 $ 0 $ 12,905,000  
Payments to extinguish debt   0 14,030,000 0  
(Gain from) loss on repurchases and extinguishment of debt, net   (1,924,000) 16,553,000 $ (359,000)  
Bonds and notes payable   $ 19,320,726,000 20,529,054,000    
Other borrowing agreement, termination notice period   5 days      
Unsecured Line of Credit          
Debt Instrument [Line Items]          
Maximum financing amount   $ 455,000,000.0      
Amount outstanding   120,000,000.0      
Amount available   335,000,000.0      
Higher borrowing capacity option   $ 550,000,000.0      
Interest rate   1.50%      
Unsecured debt - Junior Subordinated Hybrid Securities          
Debt Instrument [Line Items]          
Bonds and notes payable     $ 20,381,000    
Repayments of debt   $ 20,400,000      
Interest rate     5.28%    
Line of Credit Maturing 2022          
Debt Instrument [Line Items]          
Maximum financing amount $ 22,000,000.0        
Amount outstanding   5,000,000.0      
Amount available   $ 17,000,000.0      
London Interbank Offered Rate (LIBOR) | Line of Credit Maturing 2022          
Debt Instrument [Line Items]          
Variable interest rate basis 1.75%        
Minimum | Unsecured Line of Credit          
Debt Instrument [Line Items]          
Variable interest rate basis   1.00%      
Maximum | Unsecured Line of Credit          
Debt Instrument [Line Items]          
Variable interest rate basis   2.00%      
Asset-backed securitizations          
Debt Instrument [Line Items]          
Amount of debt extinguished   $ 1,050,000,000.00      
Payments to extinguish debt   14,000,000.0      
(Gain from) loss on repurchases and extinguishment of debt, net   16,700,000      
Write off of debt issuance costs   2,700,000      
Auction Rate Securities          
Debt Instrument [Line Items]          
Bonds and notes payable   749,900,000      
Warehouse facilities | Consumer loan warehouse facility          
Debt Instrument [Line Items]          
Maximum financing amount   100,000,000.0      
Amount outstanding   25,800,000      
Amount available   74,200,000      
Advanced as equity support   11,500,000      
Warehouse facilities | Private Loan Warehouse Facility [Member]          
Debt Instrument [Line Items]          
Maximum financing amount         $ 200,000,000.0
Amount outstanding   150,400,000      
Amount available   49,600,000      
Advanced as equity support   $ 16,400,000      
Warehouse facilities | Minimum | Consumer loan warehouse facility          
Debt Instrument [Line Items]          
Advance rate   70.00%      
Warehouse facilities | Minimum | Private Loan Warehouse Facility [Member]          
Debt Instrument [Line Items]          
Advance rate   80.00%      
Warehouse facilities | Maximum | Consumer loan warehouse facility          
Debt Instrument [Line Items]          
Advance rate   75.00%      
Warehouse facilities | Maximum | Private Loan Warehouse Facility [Member]          
Debt Instrument [Line Items]          
Advance rate   90.00%      
v3.20.4
Bonds and Notes Payable - Maturity of long-term debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]    
Bonds and notes payable $ 19,320,726 $ 20,529,054
Debt and Capital Lease Obligations, Gross    
Debt Instrument [Line Items]    
2020 118,558  
2021 433,371  
2022 0  
2023 120,000  
2024 98,761  
2025 and thereafter 18,788,159  
Bonds and notes payable $ 19,558,849  
v3.20.4
Bonds and Notes Payable - Debt Repurchases (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Debt Instrument [Line Items]      
Par value $ 27,445 $ 0 $ 12,905
Purchase price (25,521) 0 (12,546)
Gain $ 1,924 $ 0 $ 359
v3.20.4
Derivative Financial Instruments - Basis Swaps (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Derivative [Line Items]      
Loans receivable $ 20,185,656 $ 21,378,042 $ 21,402,868
Notes payable 19,320,726   20,529,054
1:3 basis swaps      
Derivative [Line Items]      
Notional amount $ 6,150,000   $ 7,150,000
Variable interest rate spread 0.091%   0.097%
1:3 basis swaps | One-month LIBOR, Daily reset      
Derivative [Line Items]      
Loans receivable $ 17,800,000    
1:3 basis swaps | Three-month commercial paper rate      
Derivative [Line Items]      
Loans receivable 700,000    
1:3 basis swaps | Three-month treasury bill, Daily reset      
Derivative [Line Items]      
Loans receivable 600,000    
1:3 basis swaps | Three-month LIBOR, Quarterly reset      
Derivative [Line Items]      
Notes payable 6,500,000    
1:3 basis swaps | One-month LIBOR, Monthly reset      
Derivative [Line Items]      
Notes payable 10,700,000    
1:3 basis swaps | One Month to Three Month Basis Swap - Current Year Maturity      
Derivative [Line Items]      
Notional amount 0   $ 1,000,000
1:3 basis swaps | One Month to Three Month Basis Swap - Year One Maturity      
Derivative [Line Items]      
Notional amount 250,000   250,000
1:3 basis swaps | One Month to Three Month Basis Swap - Year Two Maturity      
Derivative [Line Items]      
Notional amount 2,000,000   2,000,000
1:3 basis swaps | One Month to Three Month Basis Swap - Year Three Maturity      
Derivative [Line Items]      
Notional amount 750,000   750,000
1:3 basis swaps | One Month to Three Month Basis Swap - Year Four Maturity      
Derivative [Line Items]      
Notional amount 1,750,000   1,750,000
1:3 basis swaps | One Month to Three Month Basis Swap - Year Five Maturity      
Derivative [Line Items]      
Notional amount 1,150,000   1,150,000
1:3 basis swaps | One Month to Three Month Basis Swap - Year Six Maturity      
Derivative [Line Items]      
Notional amount $ 250,000   $ 250,000
v3.20.4
Derivative Financial Instruments - Interest Rate Swaps, Floor Income Hedge (Details) - Fixed Rate Floor Income - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 4,500,000,000 $ 2,500,000,000
Weighted average fixed rate paid by the Company 0.70% 1.42%
Student loan assets, fixed floor income $ 8,400,000,000 $ 3,300,000,000
Variable conversion rate 1.94% 3.72%
Maturity 2020 | Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 0 $ 1,500,000,000
Weighted average fixed rate paid by the Company 0.00% 1.01%
Maturity 2021 | Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 600,000,000 $ 600,000,000
Weighted average fixed rate paid by the Company 2.15% 2.15%
Maturity 2022 | Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 500,000,000 $ 250,000,000
Weighted average fixed rate paid by the Company 0.94% 1.65%
Maturity 2022 | Interest Rate Swap, Forward Effective Date June 2021    
Derivative [Line Items]    
Notional amount $ 250,000,000.0 $ 250,000,000.0
Maturity 2023 | Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 900,000,000 $ 150,000,000
Weighted average fixed rate paid by the Company 0.62% 2.25%
Maturity 2024 | Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 2,000,000,000 $ 0
Weighted average fixed rate paid by the Company 0.32% 0.00%
Maturity 2024 | Interest Rate Swap, Forward Effective Date June 2021    
Derivative [Line Items]    
Notional amount $ 750,000,000.0  
Maturity 2025 | Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 500,000,000 $ 0
Weighted average fixed rate paid by the Company 0.35% 0.00%
v3.20.4
Derivative Financial Instruments - Income Statement Impact (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Derivative Instruments, Gain (Loss) [Line Items]                      
Derivative settlements, net                 $ 3,679 $ 45,406 $ 70,071
Change in fair value                 (28,144) (76,195) 1,014
Derivative market value adjustments and derivative settlements, net - (expense) income $ (11,059) $ 1,049 $ 1,910 $ (16,365) $ 3,170 $ 1,668 $ (24,088) $ (11,539) (24,465) (30,789) 71,085
1:3 basis swaps                      
Derivative Instruments, Gain (Loss) [Line Items]                      
Derivative settlements, net                 10,378 5,214 5,577
Change in fair value                 (7,462) 1,515 12,573
Interest rate swaps - floor income hedges                      
Derivative Instruments, Gain (Loss) [Line Items]                      
Derivative settlements, net                 (6,699) 40,192 64,901
Change in fair value                 (20,682) (77,027) (10,962)
Other                      
Derivative Instruments, Gain (Loss) [Line Items]                      
Derivative settlements, net                 0 0 (407)
Change in fair value                 $ 0 $ (683) $ (597)
v3.20.4
Investments (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
May 20, 2020
Mar. 31, 2020
Jun. 30, 2020
Dec. 31, 2020
Dec. 31, 2019
May 19, 2020
Investments (at fair value):            
Amortized cost       $ 340,578 $ 48,790  
Gross unrealized gains       8,042 3,911  
Gross unrealized losses       (13) 0  
Fair value       348,607 52,701  
Equity securities            
Amortized cost       36,227 9,622  
Gross unrealized gains       8,768 4,561  
Gross unrealized losses       (2,954) (1,283)  
Fair value       42,041 12,900  
Total investments (at fair value)            
Amortized cost       376,805 58,412  
Gross unrealized gains       16,810 8,472  
Gross unrealized losses       (2,967) (1,283)  
Fair value       390,648 65,601  
Other Investments (not measured at fair value):            
Total investments (not measured at fair value)       602,292 181,498  
Total investments       992,940 247,099  
Beneficial interest in securitization, allowance for credit loss       4,449    
Debt securities, available-for-sale, maturing in the next 10 years       58,600    
Debt securities, available-for-sale, maturing in the next year       2,600    
Debt securities, available-for-sale, maturing in one to five years       31,200    
Debt securities, available-for-sale, maturing in six to ten years       24,800    
Hudl            
Other Investments (not measured at fair value):            
Payments to acquire equity method investments $ 26,000          
Ownership percentage           20.00%
Union Bank and Trust Company            
Other Investments (not measured at fair value):            
Amount of participation, student loan asset-backed securities       118,600    
Venture Capital Funds            
Other Investments (not measured at fair value):            
Impairment charge   $ 7,800        
Venture Capital Funds | Other Investments            
Other Investments (not measured at fair value):            
Measurement alternative       144,795 72,760  
Equity method       14,018 15,379  
Other       894 1,301  
Total investments (not measured at fair value)       159,707 89,440  
Venture Capital Funds | Other Investments | Hudl            
Equity securities            
Fair value       128,600    
Other Investments (not measured at fair value):            
Gain (loss) on equity security     $ 51,000      
Real Estate Investment | Other Investments            
Other Investments (not measured at fair value):            
Equity method       50,291 44,159  
Other       847 867  
Total investments (not measured at fair value)       51,138 45,026  
Investment in ALLO | Other Investments            
Other Investments (not measured at fair value):            
Equity method       129,396 0  
Equity method investment, preferred       228,916 0  
Total investments (not measured at fair value)       358,312 0  
Solar            
Other Investments (not measured at fair value):            
Gain (loss) on equity security       (37,400) (2,200)  
Equity method investment, amount funded       148,600    
Equity method investment, committed to fund       $ 17,500    
Solar | Minimum            
Other Investments (not measured at fair value):            
Period tax benefits occurred       5 years    
Solar | Maximum            
Other Investments (not measured at fair value):            
Period tax benefits occurred       6 years    
Solar | Other Investments            
Other Investments (not measured at fair value):            
Total investments (not measured at fair value)       $ (30,373) 7,562  
Federally Insured Loan Securitization | Other Investments            
Other Investments (not measured at fair value):            
Beneficial Interest In Securitization       30,377 0  
Loan receivable, amount corresponding to beneficial ownership       500,000    
Beneficial interest in consumer loan securitizations            
Other Investments (not measured at fair value):            
Impairment charge   26,300        
Allowance for credit losses, decrease during period   $ (9,700)        
Beneficial interest in consumer loan securitizations | Other Investments            
Other Investments (not measured at fair value):            
Beneficial Interest In Securitization       27,954 33,187  
Loan receivable, amount corresponding to beneficial ownership       280,000    
Tax liens and affordable housing | Other Investments            
Other Investments (not measured at fair value):            
Total investments (not measured at fair value)       $ 5,177 $ 6,283  
v3.20.4
Business Combination - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Nov. 20, 2018
Feb. 07, 2018
Dec. 31, 2019
Business Acquisition [Line Items]        
Goodwill $ 142,092     $ 156,912
Great Lakes Educational Loan Service        
Business Acquisition [Line Items]        
Percentage of voting interests acquired     100.00%  
Payment to acquire business     $ 150,000  
Reduction to equity as result of remeasurement of equity interest previously held     19,100  
Net assets acquired     136,551  
Acquired intangible assets     $ 75,329  
Acquired intangible asset useful life     4 years  
Goodwill     $ 15,043  
Tuition Management Systems LLC        
Business Acquisition [Line Items]        
Percentage of voting interests acquired 100.00% 100.00%    
Payment to acquire business $ 24,700 $ 27,000    
Net assets acquired   27,017    
Acquired intangible assets   $ 26,390    
Acquired intangible asset useful life   10 years    
Goodwill   $ 3,110    
HigherSchool Publishing Company        
Business Acquisition [Line Items]        
Net assets acquired 24,700      
Acquired intangible assets 24,200      
Goodwill 6,292      
Customer Relationships | Great Lakes Educational Loan Service        
Business Acquisition [Line Items]        
Acquired intangible assets     $ 70,200  
Acquired intangible asset useful life     4 years  
Customer Relationships | Tuition Management Systems LLC        
Business Acquisition [Line Items]        
Acquired intangible assets   $ 25,400    
Acquired intangible asset useful life   10 years    
Customer Relationships | HigherSchool Publishing Company        
Business Acquisition [Line Items]        
Acquired intangible assets $ 24,200      
Acquired intangible asset useful life 10 years      
Trade Names | Great Lakes Educational Loan Service        
Business Acquisition [Line Items]        
Acquired intangible assets     $ 5,100  
Acquired intangible asset useful life     7 years  
Computer Software | Tuition Management Systems LLC        
Business Acquisition [Line Items]        
Acquired intangible assets   $ 1,000    
Acquired intangible asset useful life   2 years    
Noncontrolling interests | Great Lakes Educational Loan Service        
Business Acquisition [Line Items]        
Reduction to equity as result of remeasurement of equity interest previously held     $ 5,700  
Retained earnings | Great Lakes Educational Loan Service        
Business Acquisition [Line Items]        
Reduction to equity as result of remeasurement of equity interest previously held     $ 13,400  
GreatNet, LLC | Great Lakes Educational Loan Service        
Business Acquisition [Line Items]        
Percentage of voting interests acquired     50.00%  
v3.20.4
Business Combination - Schedule of Assets Acquired at Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Nov. 20, 2018
Feb. 07, 2018
Business Acquisition [Line Items]        
Goodwill $ 142,092 $ 156,912    
Great Lakes Educational Loan Service        
Business Acquisition [Line Items]        
Cash and cash equivalents       $ 27,399
Accounts receivable       23,708
Property and equipment       35,919
Other assets       14,018
Intangible assets       75,329
Goodwill       15,043
Other liabilities       (54,865)
Net assets acquired       $ 136,551
Tuition Management Systems LLC        
Business Acquisition [Line Items]        
Cash and cash equivalents     $ 438  
Restricted cash     123,169  
Accounts receivable     1,019  
Other assets     381  
Intangible assets     26,390  
Goodwill     3,110  
Other liabilities     (4,321)  
Due to customers     (123,169)  
Net assets acquired     $ 27,017  
HigherSchool Publishing Company        
Business Acquisition [Line Items]        
Cash and cash equivalents 7      
Accounts receivable 5,711      
Intangible assets 24,200      
Goodwill 6,292      
Other liabilities (11,510)      
Net assets acquired $ 24,700      
v3.20.4
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]    
Intangible asset useful life 91 months  
Finite lived intangible assets $ 75,070 $ 81,532
Customer Relationships    
Finite-Lived Intangible Assets [Line Items]    
Intangible asset useful life 99 months  
Finite lived intangible assets $ 66,974 71,900
Accumulated amortization $ 83,419 60,553
Trade Names    
Finite-Lived Intangible Assets [Line Items]    
Intangible asset useful life 6 months  
Finite lived intangible assets $ 1,666 7,478
Accumulated amortization $ 3,455 2,792
Computer Software    
Finite-Lived Intangible Assets [Line Items]    
Intangible asset useful life 35 months  
Finite lived intangible assets $ 6,430 2,154
Accumulated amortization $ 4,127 $ 3,233
v3.20.4
Intangible Assets - Schedule of Intangible Assets Future Amortization Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]      
Amortization of intangible assets $ 30,800 $ 32,800 $ 30,200
2021 23,042    
2022 9,939    
2023 9,830    
2024 7,457    
2025 4,644    
2026 and thereafter 20,158    
Finite lived intangible assets $ 75,070 $ 81,532  
v3.20.4
Goodwill - Schedule of Goodwill (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2020
USD ($)
Goodwill [Roll Forward]  
Goodwill, beginning balance $ 156,912
Goodwill acquired 6,292
Deconsolidation of ALLO (21,112)
Goodwill, ending balance 142,092
Corporate and Other Activities  
Goodwill [Roll Forward]  
Goodwill, beginning balance 0
Goodwill acquired 0
Deconsolidation of ALLO 0
Goodwill, ending balance 0
Loan Servicing and Systems | Operating Segments  
Goodwill [Roll Forward]  
Goodwill, beginning balance 23,639
Goodwill acquired 0
Deconsolidation of ALLO 0
Goodwill, ending balance 23,639
Education Technology, Services, and Payment Processing | Operating Segments  
Goodwill [Roll Forward]  
Goodwill, beginning balance 70,278
Goodwill acquired 6,292
Deconsolidation of ALLO 0
Goodwill, ending balance 76,570
Communications | Operating Segments  
Goodwill [Roll Forward]  
Goodwill, beginning balance 21,112
Goodwill acquired 0
Deconsolidation of ALLO (21,112)
Goodwill, ending balance 0
Asset Generation and Management | Operating Segments  
Goodwill [Roll Forward]  
Goodwill, beginning balance 41,883
Goodwill acquired 0
Deconsolidation of ALLO 0
Goodwill, ending balance $ 41,883
v3.20.4
Property and Equipment (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Property, Plant and Equipment [Line Items]              
Property and equipment, net $ 123,527       $ 123,527 $ 348,259  
Depreciation expense         87,900 72,300 $ 56,700
Impairment expense and provision for beneficial interests (9,696) $ 0 $ 332 $ 34,087 24,723 0 $ 11,721
Computer equipment and software              
Property, Plant and Equipment [Line Items]              
Impairment expense and provision for beneficial interests         7,800    
Non-Communications              
Property, Plant and Equipment [Line Items]              
Property and plant gross 283,152       283,152 249,172  
Accumulated depreciation (159,625)       (159,625) (142,270)  
Property and equipment, net 123,527       123,527 106,902  
Non-Communications | Computer equipment and software              
Property, Plant and Equipment [Line Items]              
Property and plant gross 172,664       $ 172,664 160,319  
Non-Communications | Computer equipment and software | Minimum              
Property, Plant and Equipment [Line Items]              
Useful life         1 year    
Non-Communications | Computer equipment and software | Maximum              
Property, Plant and Equipment [Line Items]              
Useful life         5 years    
Non-Communications | Building and building improvements              
Property, Plant and Equipment [Line Items]              
Property and plant gross 52,444       $ 52,444 37,904  
Non-Communications | Building and building improvements | Minimum              
Property, Plant and Equipment [Line Items]              
Useful life         5 years    
Non-Communications | Building and building improvements | Maximum              
Property, Plant and Equipment [Line Items]              
Useful life         48 years    
Non-Communications | Office furniture and equipment              
Property, Plant and Equipment [Line Items]              
Property and plant gross 21,899       $ 21,899 21,245  
Non-Communications | Office furniture and equipment | Minimum              
Property, Plant and Equipment [Line Items]              
Useful life         1 year    
Non-Communications | Office furniture and equipment | Maximum              
Property, Plant and Equipment [Line Items]              
Useful life         10 years    
Non-Communications | Leasehold improvements              
Property, Plant and Equipment [Line Items]              
Property and plant gross 9,168       $ 9,168 9,517  
Non-Communications | Leasehold improvements | Minimum              
Property, Plant and Equipment [Line Items]              
Useful life         1 year    
Non-Communications | Leasehold improvements | Maximum              
Property, Plant and Equipment [Line Items]              
Useful life         15 years    
Non-Communications | Transportation equipment              
Property, Plant and Equipment [Line Items]              
Property and plant gross 4,857       $ 4,857 5,049  
Non-Communications | Transportation equipment | Minimum              
Property, Plant and Equipment [Line Items]              
Useful life         5 years    
Non-Communications | Transportation equipment | Maximum              
Property, Plant and Equipment [Line Items]              
Useful life         10 years    
Non-Communications | Land              
Property, Plant and Equipment [Line Items]              
Property and plant gross 3,642       $ 3,642 1,400  
Non-Communications | Construction in progress              
Property, Plant and Equipment [Line Items]              
Property and plant gross 18,478       18,478 13,738  
Communications              
Property, Plant and Equipment [Line Items]              
Property and plant gross 0       0 315,254  
Accumulated depreciation 0       0 (73,897)  
Property and equipment, net 0       0 241,357  
Communications | Computer equipment and software              
Property, Plant and Equipment [Line Items]              
Property and plant gross 0       $ 0 5,574  
Communications | Computer equipment and software | Minimum              
Property, Plant and Equipment [Line Items]              
Useful life         1 year    
Communications | Computer equipment and software | Maximum              
Property, Plant and Equipment [Line Items]              
Useful life         5 years    
Communications | Transportation equipment              
Property, Plant and Equipment [Line Items]              
Property and plant gross 0       $ 0 6,611  
Communications | Transportation equipment | Minimum              
Property, Plant and Equipment [Line Items]              
Useful life         4 years    
Communications | Transportation equipment | Maximum              
Property, Plant and Equipment [Line Items]              
Useful life         10 years    
Communications | Land              
Property, Plant and Equipment [Line Items]              
Property and plant gross 0       $ 0 70  
Communications | Construction in progress              
Property, Plant and Equipment [Line Items]              
Property and plant gross 0       0 54  
Communications | Network plant and fiber              
Property, Plant and Equipment [Line Items]              
Property and plant gross 0       $ 0 254,560  
Communications | Network plant and fiber | Minimum              
Property, Plant and Equipment [Line Items]              
Useful life         4 years    
Communications | Network plant and fiber | Maximum              
Property, Plant and Equipment [Line Items]              
Useful life         15 years    
Communications | Customer located property              
Property, Plant and Equipment [Line Items]              
Property and plant gross 0       $ 0 27,011  
Communications | Customer located property | Minimum              
Property, Plant and Equipment [Line Items]              
Useful life         2 years    
Communications | Customer located property | Maximum              
Property, Plant and Equipment [Line Items]              
Useful life         4 years    
Communications | Central office              
Property, Plant and Equipment [Line Items]              
Property and plant gross 0       $ 0 17,672  
Communications | Central office | Minimum              
Property, Plant and Equipment [Line Items]              
Useful life         5 years    
Communications | Central office | Maximum              
Property, Plant and Equipment [Line Items]              
Useful life         15 years    
Communications | Other              
Property, Plant and Equipment [Line Items]              
Property and plant gross $ 0       $ 0 $ 3,702  
Communications | Other | Minimum              
Property, Plant and Equipment [Line Items]              
Useful life         1 year    
Communications | Other | Maximum              
Property, Plant and Equipment [Line Items]              
Useful life         39 years    
Loan Servicing and Systems | Computer equipment and software              
Property, Plant and Equipment [Line Items]              
Impairment expense and provision for beneficial interests         $ 3,900    
v3.20.4
Shareholders' Equity - Classes of Common Stock (Details)
12 Months Ended
Dec. 31, 2020
vote
shares
Class of Stock [Line Items]  
Repurchase shares authorized (in shares) | shares 5,000,000
Remaining number of shares authorized to be repurchased (in shares) | shares 3,200,000
Class B  
Class of Stock [Line Items]  
Votes per common share | vote 10
Class A  
Class of Stock [Line Items]  
Votes per common share | vote 1
v3.20.4
Shareholders' Equity - Schedule of Stock Repurchases (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Equity [Abstract]      
Repurchase shares authorized (in shares) 5,000,000    
Total shares repurchased (in shares) 1,594,394 726,273 868,147
Purchase price $ 73,358 $ 40,411 $ 45,331
Average price of shares repurchased (in dollars per share) $ 46.01 $ 55.64 $ 52.22
v3.20.4
Earnings per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]                      
Net income attributable to Nelnet, Inc. $ 234,991 $ 71,503 $ 86,482 $ (40,532) $ 42,380 $ 33,212 $ 24,619 $ 41,591 $ 352,443 $ 141,803 $ 227,913
Weighted average common shares outstanding - basic and diluted (in shares)                 39,059,588 40,047,402 40,909,022
Earnings per share - basic and diluted (in dollars per share) $ 6.10 $ 1.86 $ 2.21 $ (1.01) $ 1.06 $ 0.83 $ 0.61 $ 1.03 $ 9.02 $ 3.54 $ 5.57
Common shareholders                      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]                      
Net income attributable to Nelnet, Inc.                 $ 347,451 $ 139,946 $ 225,170
Weighted average common shares outstanding - basic and diluted (in shares)                 38,506,351 39,523,082 40,416,719
Earnings per share - basic and diluted (in dollars per share)                 $ 9.02 $ 3.54 $ 5.57
Unvested restricted stock shareholders                      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]                      
Net income attributable to Nelnet, Inc.                 $ 4,992 $ 1,857 $ 2,743
Weighted average common shares outstanding - basic and diluted (in shares)                 553,237 524,320 492,303
Earnings per share - basic and diluted (in dollars per share)                 $ 9.02 $ 3.54 $ 5.57
Shares Issued - Deferred                      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]                      
Non employee director stock, cumulative deferred shares (in shares) 209,924               209,924    
v3.20.4
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Contingency [Line Items]      
Unrecognized tax benefits $ 20,318 $ 20,148 $ 23,445
Tax benefits which would favorable affect effective tax rate 16,000    
Anticipated uncertain tax position adjustment 6,700    
Income tax penalties and interest accrued 5,400 5,000  
Interest on income taxes expense 400 100 $ 400
Income taxes receivable 21,500 $ 27,300  
Favorably affect the effective tax rate      
Income Tax Contingency [Line Items]      
Anticipated uncertain tax position adjustment $ 5,300    
v3.20.4
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Gross balance - beginning of year $ 20,148 $ 23,445
Additions based on tax positions of prior years 634 651
Additions based on tax positions related to the current year 2,523 1,339
Settlements with taxing authorities 0 (1,810)
Reductions for tax positions of prior years (69) (380)
Reductions due to lapse of applicable statutes of limitations (2,918) (3,097)
Gross balance - end of year $ 20,318 $ 20,148
v3.20.4
Income Taxes - Schedule of Provision for Income Tax Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Current:                      
Federal                 $ 82,832 $ 38,931 $ 45,822
State                 9,815 3,546 1,969
Foreign                 239 239 (2)
Total current provision                 92,886 42,716 47,789
Deferred:                      
Federal                 7,269 (4,280) 11,783
State                 718 (2,922) (883)
Foreign                 (13) (63) 81
Total deferred provision                 7,974 (7,265) 10,981
Provision for income tax expense $ 70,573 $ 19,156 $ 21,264 $ (10,133) $ 9,022 $ 8,829 $ 6,209 $ 11,391 $ 100,860 $ 35,451 $ 58,770
v3.20.4
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]      
Tax expense at federal rate 21.00% 21.00% 21.00%
Increase (decrease) resulting from:      
State tax, net of federal income tax benefit 2.80% 2.50% 2.40%
Tax credits (1.10%) (3.00%) (1.90%)
Provision for uncertain federal and state tax matters (0.20%) (0.70%) (1.00%)
Other (0.20%) 0.20% 0.00%
Effective tax rate 22.30% 20.00% 20.50%
v3.20.4
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Deferred tax assets:    
Student loans $ 26,894 $ 15,479
Deferred revenue 18,081 18,037
Accrued expenses 10,661 4,112
Tax credit carryforwards 5,987 9,394
Basis in certain derivative contracts 5,061 0
Lease liability 4,123 5,891
Stock compensation 2,546 2,167
Securitizations 694 1,261
Net operating losses 647 551
Total gross deferred tax assets 74,694 56,892
Less valuation allowance (569) (548)
Net deferred tax assets 74,125 56,344
Deferred tax liabilities:    
Partnership basis 64,023 56,741
Debt and equity investments 20,538 3,775
Depreciation 14,092 11,489
Intangible assets 7,703 5,399
Loan origination services 5,040 4,647
Lease right of use asset 4,037 5,684
Basis in certain derivative contracts 0 2,730
Other 661 1,003
Total gross deferred tax liabilities 116,094 91,468
Net deferred tax asset (liability) $ (41,969) $ (35,124)
v3.20.4
Segment Reporting (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended 24 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2019
Segment Reporting Information [Line Items]                        
Income tax allocation to segments, percent                       24.00%
Total interest income                 $ 619,656 $ 948,677 $ 924,266  
Interest expense                 330,071 699,327 669,906  
Net interest income $ 86,556 $ 81,322 $ 66,635 $ 55,073 $ 64,252 $ 66,457 $ 59,825 $ 58,816 289,585 249,350 254,360  
Less provision for loan losses (10,116) (5,821) 2,999 76,299 13,000 10,000 9,000 7,000 63,360 39,000 23,000  
Net interest income after provision for loan losses 96,672 87,143 63,636 (21,226) 51,252 56,457 50,825 51,816 226,225 210,350 231,360  
Other income:                        
Intersegment revenue                 0 0 0  
Other (12,350) 1,502 60,127 8,281 10,973 13,439 14,440 9,067 57,561 47,918 54,805  
Gain on sale of loans 0 14,817 0 18,206 15,549 0 1,712 0 33,023 17,261 0  
Gain from deconsolidation of ALLO 258,588 0 0 0         258,588 0 0  
Impairment expense and provision for beneficial interests (9,696) 0 332 34,087         24,723 0 11,721  
Derivative settlements, net                 3,679 45,406 70,071  
Derivative market value and foreign currency transaction adjustments, net                 (28,144) (76,195) 1,014  
Total other income/expense                 1,110,384 831,245 820,811  
Cost of services:                        
Cost of services                 105,018 102,026 76,492  
Operating expenses:                        
Salaries and benefits 136,612 126,096 119,247 119,878 124,561 116,670 111,214 111,059 501,832 463,503 436,179  
Depreciation and amortization 31,350 30,308 29,393 27,648 28,651 27,701 24,484 24,213 118,699 105,049 86,896  
Other expenses 45,391 34,744 37,052 43,384 46,710 58,329 45,417 43,816 160,574 194,272 166,310  
Intersegment expenses, net                 0 0 0  
Total operating expenses                 781,105 762,824 689,385  
Income (loss) before income taxes                 450,486 176,745 286,294  
Income tax (expense) benefit (70,573) (19,156) (21,264) 10,133 (9,022) (8,829) (6,209) (11,391) (100,860) (35,451) (58,770)  
Net income 231,606 71,176 86,610 (39,765) 41,834 33,135 24,678 41,647 349,626 141,294 227,524  
Net loss attributable to noncontrolling interests 3,385 327 (128) (767) 546 77 (59) (56) 2,817 509 389  
Net income attributable to Nelnet, Inc. 234,991 71,503 86,482 (40,532) 42,380 33,212 24,619 41,591 352,443 141,803 227,913  
Total assets 22,646,160       23,708,970       22,646,160 23,708,970 25,220,968 $ 23,708,970
Operating Segments | Loan Servicing and Systems                        
Segment Reporting Information [Line Items]                        
Total interest income                 436 2,031 1,351  
Interest expense                 121 115 0  
Net interest income                 315 1,916 1,351  
Less provision for loan losses                 0 0 0  
Net interest income after provision for loan losses                 315 1,916 1,351  
Other income:                        
Intersegment revenue                 36,520 46,751 47,082  
Other                 9,421 9,736 7,284  
Gain on sale of loans                 0 0 0  
Gain from deconsolidation of ALLO                 0 0 0  
Impairment expense and provision for beneficial interests                 0 0 3,906  
Derivative settlements, net                 0 0 0  
Derivative market value and foreign currency transaction adjustments, net                 0 0 0  
Total other income/expense                 497,502 511,742 490,487  
Cost of services:                        
Cost of services                 0 0 0  
Operating expenses:                        
Salaries and benefits                 285,526 276,136 267,458  
Depreciation and amortization                 37,610 34,755 32,074  
Other expenses                 57,420 71,064 63,430  
Intersegment expenses, net                 63,886 54,325 59,042  
Total operating expenses                 444,442 436,280 422,004  
Income (loss) before income taxes                 53,375 77,378 69,834  
Income tax (expense) benefit                 (12,810) (18,571) (16,954)  
Net income                 40,565 58,807 52,880  
Net loss attributable to noncontrolling interests                 0 0 808  
Net income attributable to Nelnet, Inc.                 40,565 58,807 53,688  
Total assets 190,297       290,311       190,297 290,311 226,445 290,311
Operating Segments | Education Technology, Services, and Payment Processing                        
Segment Reporting Information [Line Items]                        
Total interest income                 3,036 9,244 4,453  
Interest expense                 54 46 9  
Net interest income                 2,982 9,198 4,444  
Less provision for loan losses                 0 0 0  
Net interest income after provision for loan losses                 2,982 9,198 4,444  
Other income:                        
Intersegment revenue                 20 0 0  
Other                 373 259 0  
Gain on sale of loans                 0 0 0  
Gain from deconsolidation of ALLO                 0 0 0  
Impairment expense and provision for beneficial interests                 0 0 7,815  
Derivative settlements, net                 0 0 0  
Derivative market value and foreign currency transaction adjustments, net                 0 0 0  
Total other income/expense                 282,589 277,590 214,147  
Cost of services:                        
Cost of services                 82,206 81,603 59,566  
Operating expenses:                        
Salaries and benefits                 98,847 94,666 81,080  
Depreciation and amortization                 9,459 12,820 13,484  
Other expenses                 14,566 22,027 20,322  
Intersegment expenses, net                 14,293 13,405 10,681  
Total operating expenses                 137,165 142,918 125,567  
Income (loss) before income taxes                 66,200 62,267 33,458  
Income tax (expense) benefit                 (15,888) (14,944) (8,030)  
Net income                 50,312 47,323 25,428  
Net loss attributable to noncontrolling interests                 0 0 0  
Net income attributable to Nelnet, Inc.                 50,312 47,323 25,428  
Total assets 436,702       506,382       436,702 506,382 471,719 506,382
Operating Segments | Communications                        
Segment Reporting Information [Line Items]                        
Total interest income                 2 3 4  
Interest expense                 0 0 9,987  
Net interest income                 2 3 (9,983)  
Less provision for loan losses                 0 0 0  
Net interest income after provision for loan losses                 2 3 (9,983)  
Other income:                        
Intersegment revenue                 0 0 0  
Other                 1,561 1,509    
Gain on sale of loans                 0 0 0  
Gain from deconsolidation of ALLO                 0 0 0  
Impairment expense and provision for beneficial interests                 0 0 0  
Derivative settlements, net                 0 0 0  
Derivative market value and foreign currency transaction adjustments, net                 0 0 0  
Total other income/expense                 78,204 65,778 45,728  
Cost of services:                        
Cost of services                 22,812 20,423 16,926  
Operating expenses:                        
Salaries and benefits                 30,935 21,004 18,779  
Depreciation and amortization                 42,588 37,173 23,377  
Other expenses                 13,327 15,165 11,900  
Intersegment expenses, net                 1,732 2,962 2,578  
Total operating expenses                 88,582 76,304 56,634  
Income (loss) before income taxes                 (33,188) (30,946) (37,815)  
Income tax (expense) benefit                 7,965 7,427 9,075  
Net income                 (25,223) (23,519) (28,740)  
Net loss attributable to noncontrolling interests                 0 0 0  
Net income attributable to Nelnet, Inc.                 (25,223) (23,519) (28,740)  
Total assets 0       303,347       0 303,347 286,816 303,347
Operating Segments | Asset Generation and Management                        
Segment Reporting Information [Line Items]                        
Total interest income                 611,474 931,963 911,502  
Interest expense                 328,157 693,375 662,360  
Net interest income                 283,317 238,588 249,142  
Less provision for loan losses                 63,029 39,000 23,000  
Net interest income after provision for loan losses                 220,288 199,588 226,142  
Other income:                        
Intersegment revenue                 0 0 0  
Other                 7,189 13,088 12,723  
Gain on sale of loans                 33,023 17,261 0  
Gain from deconsolidation of ALLO                 0 0 0  
Impairment expense and provision for beneficial interests                 16,607 0 0  
Derivative settlements, net                 3,679 45,406 70,478  
Derivative market value and foreign currency transaction adjustments, net                 (28,144) (76,195) (2,159)  
Total other income/expense                 (860) (440) 81,042  
Cost of services:                        
Cost of services                 0 0 0  
Operating expenses:                        
Salaries and benefits                 1,747 1,545 1,526  
Depreciation and amortization                 0 0 0  
Other expenses                 15,806 34,445 15,961  
Intersegment expenses, net                 39,172 47,362 47,870  
Total operating expenses                 56,725 83,352 65,357  
Income (loss) before income taxes                 162,703 115,796 241,827  
Income tax (expense) benefit                 (39,049) (27,792) (58,038)  
Net income                 123,654 88,004 183,789  
Net loss attributable to noncontrolling interests                 0 0 0  
Net income attributable to Nelnet, Inc.                 123,654 88,004 183,789  
Total assets 20,773,968       22,128,917       20,773,968 22,128,917 23,806,321 22,128,917
Operating Segments | Nelnet Bank                        
Segment Reporting Information [Line Items]                        
Total interest income                 414 0 0  
Interest expense                 41 0 0  
Net interest income                 373 0 0  
Less provision for loan losses                 330 0 0  
Net interest income after provision for loan losses                 43 0 0  
Other income:                        
Intersegment revenue                 0 0 0  
Other                 48 0 0  
Gain on sale of loans                 0 0 0  
Gain from deconsolidation of ALLO                 0 0 0  
Impairment expense and provision for beneficial interests                 0 0 0  
Derivative settlements, net                 0 0 0  
Derivative market value and foreign currency transaction adjustments, net                 0 0 0  
Total other income/expense                 48 0 0  
Cost of services:                        
Cost of services                 0 0 0  
Operating expenses:                        
Salaries and benefits                 36 0 0  
Depreciation and amortization                 0 0 0  
Other expenses                 135 0 0  
Intersegment expenses, net                 0 0 0  
Total operating expenses                 171 0 0  
Income (loss) before income taxes                 (80) 0 0  
Income tax (expense) benefit                 20 0 0  
Net income                 (60) 0 0  
Net loss attributable to noncontrolling interests                 0 0 0  
Net income attributable to Nelnet, Inc.                 (60) 0 0  
Total assets 216,937       0       216,937 0 0 0
Corporate and Other Activities                        
Segment Reporting Information [Line Items]                        
Total interest income                 5,775 9,232 19,944  
Interest expense                 3,178 9,587 10,540  
Net interest income                 2,597 (355) 9,404  
Less provision for loan losses                 0 0 0  
Net interest income after provision for loan losses                 2,597 (355) 9,404  
Other income:                        
Intersegment revenue                 0 0 0  
Other                 38,969 23,327 33,724  
Gain on sale of loans                 0 0 0  
Gain from deconsolidation of ALLO                 258,588 0 0  
Impairment expense and provision for beneficial interests                 8,116 0 0  
Derivative settlements, net                 0 0 (407)  
Derivative market value and foreign currency transaction adjustments, net                 0 0 3,173  
Total other income/expense                 289,441 23,327 36,490  
Cost of services:                        
Cost of services                 0 0 0  
Operating expenses:                        
Salaries and benefits                 84,741 70,152 67,336  
Depreciation and amortization                 29,043 20,300 17,960  
Other expenses                 59,320 51,571 54,697  
Intersegment expenses, net                 (82,543) (71,303) (73,088)  
Total operating expenses                 90,561 70,720 66,905  
Income (loss) before income taxes                 201,477 (47,748) (21,011)  
Income tax (expense) benefit                 (41,098) 18,428 15,177  
Net income                 160,379 (29,320) (5,834)  
Net loss attributable to noncontrolling interests                 2,817 509 (419)  
Net income attributable to Nelnet, Inc.                 163,196 (28,811) (6,253)  
Total assets 1,225,790       627,897       1,225,790 627,897 563,841 627,897
Eliminations                        
Segment Reporting Information [Line Items]                        
Total interest income                 (1,480) (3,796) (12,989)  
Interest expense                 (1,480) (3,796) (12,989)  
Net interest income                 0 0 0  
Less provision for loan losses                 0 0 0  
Net interest income after provision for loan losses                 0 0 0  
Other income:                        
Intersegment revenue                 (36,540) (46,751) (47,082)  
Other                 0 0 0  
Gain on sale of loans                 0 0 0  
Gain from deconsolidation of ALLO                 0 0 0  
Impairment expense and provision for beneficial interests                 0 0 0  
Derivative settlements, net                 0 0 0  
Derivative market value and foreign currency transaction adjustments, net                 0 0 0  
Total other income/expense                 (36,540) (46,751) (47,082)  
Cost of services:                        
Cost of services                 0 0 0  
Operating expenses:                        
Salaries and benefits                 0 0 0  
Depreciation and amortization                 0 0 0  
Other expenses                 0 0 0  
Intersegment expenses, net                 (36,540) (46,751) (47,082)  
Total operating expenses                 (36,540) (46,751) (47,082)  
Income (loss) before income taxes                 0 0 0  
Income tax (expense) benefit                 0 0 0  
Net income                 0 0 0  
Net loss attributable to noncontrolling interests                 0 0 0  
Net income attributable to Nelnet, Inc.                 0 0 0  
Total assets (197,534)       (147,884)       (197,534) (147,884) (134,174) $ (147,884)
Loan servicing and systems revenue                        
Other income:                        
Revenue 113,990 113,794 111,042 112,735 113,086 113,286 113,985 114,898 451,561 455,255 440,027  
Loan servicing and systems revenue | Operating Segments | Loan Servicing and Systems                        
Other income:                        
Revenue                 451,561 455,255 440,027  
Loan servicing and systems revenue | Operating Segments | Education Technology, Services, and Payment Processing                        
Other income:                        
Revenue                 0 0 0  
Loan servicing and systems revenue | Operating Segments | Communications                        
Other income:                        
Revenue                 0 0 0  
Loan servicing and systems revenue | Operating Segments | Asset Generation and Management                        
Other income:                        
Revenue                 0 0 0  
Loan servicing and systems revenue | Operating Segments | Nelnet Bank                        
Other income:                        
Revenue                 0 0 0  
Loan servicing and systems revenue | Corporate and Other Activities                        
Other income:                        
Revenue                 0 0 0  
Loan servicing and systems revenue | Eliminations                        
Other income:                        
Revenue                 0 0 0  
Education technology services and payment processing services                        
Other income:                        
Revenue 65,097 74,121 59,304 83,675 63,578 74,251 60,342 79,159 282,196 277,331 221,962  
Cost of services:                        
Cost of services 18,782 25,243 15,376 22,806 19,002 25,671 15,871 21,059 82,206 81,603 59,566  
Education technology services and payment processing services | Operating Segments | Loan Servicing and Systems                        
Other income:                        
Revenue                 0 0 0  
Cost of services:                        
Cost of services                 0 0 0  
Education technology services and payment processing services | Operating Segments | Education Technology, Services, and Payment Processing                        
Other income:                        
Revenue                 282,196 277,331 221,962  
Cost of services:                        
Cost of services                 82,206 81,603 59,566  
Education technology services and payment processing services | Operating Segments | Communications                        
Other income:                        
Revenue                 0 0 0  
Cost of services:                        
Cost of services                 0 0 0  
Education technology services and payment processing services | Operating Segments | Asset Generation and Management                        
Other income:                        
Revenue                 0 0 0  
Cost of services:                        
Cost of services                 0 0 0  
Education technology services and payment processing services | Operating Segments | Nelnet Bank                        
Other income:                        
Revenue                 0 0 0  
Cost of services:                        
Cost of services                 0 0 0  
Education technology services and payment processing services | Corporate and Other Activities                        
Other income:                        
Revenue                 0 0 0  
Cost of services:                        
Cost of services                 0 0 0  
Education technology services and payment processing services | Eliminations                        
Other income:                        
Revenue                 0 0 0  
Cost of services:                        
Cost of services                 0 0 0  
Communications revenue                        
Other income:                        
Revenue 19,253 20,211 18,998 18,181 17,499 16,470 15,758 14,543 76,643 64,269 44,653  
Cost of services:                        
Cost of services $ 5,573 $ 5,914 $ 5,743 $ 5,582 $ 5,327 $ 5,236 $ 5,101 $ 4,759 22,812 20,423 16,926  
Communications revenue | Operating Segments | Loan Servicing and Systems                        
Other income:                        
Revenue                 0 0 0  
Cost of services:                        
Cost of services                 0 0 0  
Communications revenue | Operating Segments | Education Technology, Services, and Payment Processing                        
Other income:                        
Revenue                 0 0 0  
Cost of services:                        
Cost of services                 0 0 0  
Communications revenue | Operating Segments | Communications                        
Other income:                        
Revenue                 76,643 64,269 44,653  
Other                     1,075  
Cost of services:                        
Cost of services                 22,812 20,423 16,926  
Communications revenue | Operating Segments | Asset Generation and Management                        
Other income:                        
Revenue                 0 0 0  
Cost of services:                        
Cost of services                 0 0 0  
Communications revenue | Operating Segments | Nelnet Bank                        
Other income:                        
Revenue                 0 0 0  
Cost of services:                        
Cost of services                 0 0 0  
Communications revenue | Corporate and Other Activities                        
Other income:                        
Revenue                 0 0 0  
Cost of services:                        
Cost of services                 0 0 0  
Communications revenue | Eliminations                        
Other income:                        
Revenue                 0 0 0  
Cost of services:                        
Cost of services                 $ 0 $ 0 $ 0  
v3.20.4
Disaggregated Revenue and Deferred Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 21, 2020
Dec. 31, 2019
Dec. 31, 2018
Communications Revenue, Customer                        
Disaggregation of Revenue [Line Items]                        
Revenue                   $ 76,643 $ 64,269 $ 44,653
Residential Revenue                        
Disaggregation of Revenue [Line Items]                        
Revenue                   58,029 48,344 33,434
Business Revenue                        
Disaggregation of Revenue [Line Items]                        
Revenue                   18,038 15,689 10,976
Other Customer Revenue                        
Disaggregation of Revenue [Line Items]                        
Revenue                   576 236 243
Loan Servicing And Systems Revenue                        
Disaggregation of Revenue [Line Items]                        
Revenue                 $ 451,561   455,255 440,027
Government Servicing - Nelnet                        
Disaggregation of Revenue [Line Items]                        
Revenue                 146,798   157,991 157,091
Government Servicing - Great Lakes                        
Disaggregation of Revenue [Line Items]                        
Revenue                 179,872   185,656 168,298
Private Education And Consumer Loan Servicing                        
Disaggregation of Revenue [Line Items]                        
Revenue                 32,492   36,788 41,474
FFELP Servicing                        
Disaggregation of Revenue [Line Items]                        
Revenue                 20,183   25,043 31,542
Software Services                        
Disaggregation of Revenue [Line Items]                        
Revenue                 41,999   41,077 32,929
Outsourced Services Revenue And Other                        
Disaggregation of Revenue [Line Items]                        
Revenue                 30,217   8,700 8,693
Education technology services and payment processing services                        
Disaggregation of Revenue [Line Items]                        
Revenue $ 65,097 $ 74,121 $ 59,304 $ 83,675 $ 63,578 $ 74,251 $ 60,342 $ 79,159 282,196   277,331 221,962
Tuition Payment Plan Services                        
Disaggregation of Revenue [Line Items]                        
Revenue                 100,674   106,682 85,381
Payment Processing                        
Disaggregation of Revenue [Line Items]                        
Revenue                 114,304   110,848 84,289
Education Technology And Services                        
Disaggregation of Revenue [Line Items]                        
Revenue                 65,885   58,578 51,155
Other Service Offering                        
Disaggregation of Revenue [Line Items]                        
Revenue                 $ 1,333   1,223 1,137
Communication Revenue, Service Offering                        
Disaggregation of Revenue [Line Items]                        
Revenue                   76,643 64,269 44,653
Internet                        
Disaggregation of Revenue [Line Items]                        
Revenue                   48,362 38,239 24,069
Television                        
Disaggregation of Revenue [Line Items]                        
Revenue                   17,091 16,196 12,949
Telephone                        
Disaggregation of Revenue [Line Items]                        
Revenue                   11,037 9,705 7,546
Other Communication Revenue                        
Disaggregation of Revenue [Line Items]                        
Revenue                   $ 153 $ 129 $ 89
v3.20.4
Disaggregated Revenue and Deferred Revenue - Schedule of Other Income by Component (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Disaggregation of Revenue [Line Items]                      
Gain on remeasurement of HUDL investment                 $ 51,018 $ 0 $ 0
Borrower late fee income                 5,194 12,884 12,302
Gain (loss) on investments                 2,205 8,356 9,579
Other                 16,271 16,221 19,631
Other income $ (12,350) $ 1,502 $ 60,127 $ 8,281 $ 10,973 $ 13,439 $ 14,440 $ 9,067 57,561 47,918 54,805
Solar                      
Disaggregation of Revenue [Line Items]                      
Gain (loss) on investments                 (37,423) (2,220) 0
Investment advisory services                      
Disaggregation of Revenue [Line Items]                      
Revenue                 10,875 2,941 6,009
Management fee revenue                      
Disaggregation of Revenue [Line Items]                      
Revenue                 $ 9,421 $ 9,736 $ 7,284
v3.20.4
Disaggregated Revenue and Deferred Revenue - Schedule of Contract Liabilities from Contracts with Customers (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]      
Beginning balance $ 39,646 $ 39,122 $ 32,276
Deferral of revenue 139,478 136,487 113,292
Recognition of revenue (140,422) (135,963) (106,446)
Deconsolidation of ALLO (3,925)    
Business acquisition 1,419    
Ending balance 36,196 39,646 39,122
Corporate and Other Activities      
Segment Reporting Information [Line Items]      
Beginning balance 1,628 1,602 1,479
Deferral of revenue 3,209 3,505 5,553
Recognition of revenue (3,286) (3,479) (5,430)
Deconsolidation of ALLO 0    
Business acquisition 0    
Ending balance 1,551 1,628 1,602
Loan Servicing and Systems | Operating Segments      
Segment Reporting Information [Line Items]      
Beginning balance 2,712 4,413 4,968
Deferral of revenue 2,490 3,585 5,117
Recognition of revenue (3,824) (5,286) (5,672)
Deconsolidation of ALLO 0    
Business acquisition 0    
Ending balance 1,378 2,712 4,413
Education Technology, Services, and Payment Processing | Operating Segments      
Segment Reporting Information [Line Items]      
Beginning balance 32,074 30,556 24,164
Deferral of revenue 90,183 93,373 77,297
Recognition of revenue (90,409) (91,855) (70,905)
Deconsolidation of ALLO 0    
Business acquisition 1,419    
Ending balance 33,267 32,074 30,556
Communications | Operating Segments      
Segment Reporting Information [Line Items]      
Beginning balance 3,232 2,551 1,665
Deferral of revenue 43,596 36,024 25,325
Recognition of revenue (42,903) (35,343) (24,439)
Deconsolidation of ALLO (3,925)    
Business acquisition 0    
Ending balance $ 0 $ 3,232 $ 2,551
v3.20.4
Major Customer (Details) - USD ($)
$ in Thousands
11 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 31, 2018
Dec. 31, 2020
Dec. 26, 2020
Dec. 31, 2019
Dec. 31, 2018
Customer Concentration Risk | Department Of Education | Great Lakes Educational Loan Services            
Concentration Risk [Line Items]            
Acquiree revenue since acquisition   $ 168,300 $ 179,900   $ 185,700  
Government Servicing - Nelnet            
Concentration Risk [Line Items]            
Revenue     146,798   157,991 $ 157,091
Potential extension period of service contracts 2 years     6 months    
Government Servicing - Nelnet | Customer Concentration Risk            
Concentration Risk [Line Items]            
Revenue     $ 146,800   $ 158,000 $ 157,100
v3.20.4
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] us-gaap:OtherAssets us-gaap:OtherAssets
Operating lease ROU assets, which is included in "other assets" on the consolidated balance sheet $ 18,301 $ 32,770
Operating Lease, Liability, Statement of Financial Position [Extensible List] us-gaap:OtherLiabilities us-gaap:OtherLiabilities
Operating lease liabilities, which is included in "other liabilities" on the consolidated balance sheet $ 18,733 $ 33,689
v3.20.4
Leases - Lease Expense, Cash Flow Information, Weighted Average Remaining Lease Term, and Discount Rate (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Lessee, Lease, Description [Line Items]    
Total operating rental expense $ 13,882 $ 12,780
Weighted average remaining lease term 5 years 7 months 24 days 7 years 3 months 14 days
Weighted average discount rate 2.43% 3.93%
Other expenses    
Lessee, Lease, Description [Line Items]    
Total operating rental expense $ 11,885 $ 11,171
Communications services    
Lessee, Lease, Description [Line Items]    
Total operating rental expense $ 1,997 $ 1,609
v3.20.4
Leases - Lease Liability Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]    
2021 $ 6,578  
2022 3,857  
2023 2,938  
2024 1,562  
2025 1,424  
2026 and thereafter 4,437  
Total lease payments 20,796  
Imputed interest (2,063)  
Total $ 18,733 $ 33,689
v3.20.4
Leases - Future Minimum Lease Payments for Operating Leases (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2019
Leases [Abstract]    
2019   $ 9,181
2020   8,261
2021   5,776
2022   3,745
2023   2,904
2024 and thereafter   5,479
Total minimum lease payments   $ 35,346
Rental expense $ 8,400  
v3.20.4
Defined Contribution Benefit Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Defined Contribution Benefit Plan [Line Items]      
Maximum annual employee contribution percentage 100.00%    
Defined contribution plan cost $ 11.6 $ 10.8 $ 9.8
Employer Match on Employee Contributions up to Three Percent of Employee Salary      
Defined Contribution Benefit Plan [Line Items]      
Employer match percentage 100.00%    
Employer Match on Employee Contributions Between Three and Five Percent of Employee Salary      
Defined Contribution Benefit Plan [Line Items]      
Employer match percentage 50.00%    
Maximum Employee Contribution Percentage Eligible for 100 Percent Employer Match      
Defined Contribution Benefit Plan [Line Items]      
Maximum annual employee contribution percentage 3.00%    
Maximum Employee Contribution Percentage Eligible for 50 Percent Employer Match After 100 Percent Employer Match      
Defined Contribution Benefit Plan [Line Items]      
Maximum annual employee contribution percentage 2.00%    
v3.20.4
Stock Based Compensation Plans - Restricted Stock and Employee Share Purchase Plan (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restricted Stock Activity      
Discount from market price as of purchase date 15.00%    
Restricted Stock Plan      
Restricted Stock Activity      
Non-vested shares at beginning of year (in shares) 549,845 532,336 398,210
Granted (in shares) 151,639 186,281 279,441
Vested (in shares) (114,282) (109,651) (100,035)
Canceled (in shares) (34,746) (59,121) (45,280)
Non-vested shares at end of year (in shares) 552,456 549,845 532,336
Unrecognized compensation cost $ 16,174    
Restricted Stock Plan | Salaries and Benefits      
Restricted Stock Activity      
Share-based compensation expense 7,300 $ 6,400 $ 6,200
Employee Share Purchase Plan      
Restricted Stock Activity      
Share-based compensation expense $ 400 $ 300 $ 300
Shares issued (in shares) 36,687 33,250 28,744
2021 | Restricted Stock Plan      
Restricted Stock Activity      
Unrecognized compensation cost $ 5,912    
2022 | Restricted Stock Plan      
Restricted Stock Activity      
Unrecognized compensation cost 3,787    
2023 | Restricted Stock Plan      
Restricted Stock Activity      
Unrecognized compensation cost 2,488    
2024 | Restricted Stock Plan      
Restricted Stock Activity      
Unrecognized compensation cost 1,604    
2025 | Restricted Stock Plan      
Restricted Stock Activity      
Unrecognized compensation cost 1,009    
2026 and thereafter | Restricted Stock Plan      
Restricted Stock Activity      
Unrecognized compensation cost $ 1,374    
v3.20.4
Stock Based Compensation Plans - Non-employee Directors Compensation Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Goods and Nonemployee Services Transaction [Line Items]      
Non-employee director stock at lower cost 85.00%    
Non-employee share based compensation expense $ 1.2 $ 1.2 $ 1.0
Nonemployee      
Share-based Goods and Nonemployee Services Transaction [Line Items]      
Shares issued under non-employee director plan (in shares) 29,253 20,800 18,709
Shares issued - not deferred | Nonemployee      
Share-based Goods and Nonemployee Services Transaction [Line Items]      
Shares issued under non-employee director plan (in shares) 12,740 9,588 8,029
Shares issued- deferred      
Share-based Goods and Nonemployee Services Transaction [Line Items]      
Non employee director stock, cumulative deferred shares (in shares) 209,924    
Shares issued- deferred | Nonemployee      
Share-based Goods and Nonemployee Services Transaction [Line Items]      
Shares issued under non-employee director plan (in shares) 16,513 11,212 10,680
v3.20.4
Related Parties - Transactions with Union Bank and Trust Company (Details)
shares in Thousands, ft² in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
USD ($)
shares
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2020
USD ($)
ft²
shares
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Jan. 01, 2020
USD ($)
Oct. 29, 2019
USD ($)
Jul. 26, 2019
USD ($)
Dec. 31, 2017
USD ($)
Related Party Transaction [Line Items]                              
Loans purchased, net premium paid                 $ 1,200,000 $ 1,200,000 $ 0        
Loans receivable $ 20,185,656,000       $ 21,402,868,000       20,185,656,000 21,402,868,000   $ 21,378,042,000      
Bank deposits 54,633,000       0       54,633,000 0          
Cash and cash equivalents related party 87,957,000       119,984,000       87,957,000 119,984,000          
Restricted cash - due to customers $ 283,971,000       437,756,000       283,971,000 437,756,000 369,678,000       $ 187,121,000
Interest income                 $ 619,656,000 948,677,000 924,266,000        
Union Bank and Whitetail Rock Capital Management (WRCM) - management agreement, Union Bank established trusts                              
Related Party Transaction [Line Items]                              
Basis points earned 0.25%               0.25%            
Amount invested in funds $ 1,200,000,000               $ 1,200,000,000            
Percent of gains from the sale of securities 50.00%               50.00%            
Fee revenue from related party                 $ 9,800,000 1,800,000 4,500,000        
Union Bank and Whitetail Rock Capital Management (WRCM) - management agreement, other related party established trusts                              
Related Party Transaction [Line Items]                              
Basis points earned 0.05%               0.05%            
Fee revenue from related party                 $ 141,000 144,000 141,000        
Union Bank and Whitetail Rock Capital Management (WRCM) - management agreement, other related party established trusts | Class B common stock                              
Related Party Transaction [Line Items]                              
Number of shares for which related party is investment advisor | shares 4,800               4,800            
Union Bank and Whitetail Rock Capital Management (WRCM) - management agreement, other related party established trusts | Class A                              
Related Party Transaction [Line Items]                              
Number of shares for which related party is investment advisor | shares 480               480            
SLABS Fund-I, SLABS Fund-II, SLABS Fund-III, SLABS Fund-IV, and SLABS Fund-V                              
Related Party Transaction [Line Items]                              
Basis points earned 0.50%               0.50%            
Amount invested in funds $ 134,300,000               $ 134,300,000            
Loan servicing and systems revenue                              
Related Party Transaction [Line Items]                              
Revenue 113,990,000 $ 113,794,000 $ 111,042,000 $ 112,735,000 113,086,000 $ 113,286,000 $ 113,985,000 $ 114,898,000 451,561,000 455,255,000 440,027,000        
Communications revenue                              
Related Party Transaction [Line Items]                              
Revenue $ 19,253,000 $ 20,211,000 $ 18,998,000 $ 18,181,000 17,499,000 $ 16,470,000 $ 15,758,000 $ 14,543,000 $ 76,643,000 64,269,000 44,653,000        
Union Bank and Trust Company | SLABS Fund-I, SLABS Fund-II, SLABS Fund-III, SLABS Fund-IV, and SLABS Fund-V                              
Related Party Transaction [Line Items]                              
Percentage of basis points paid                 50.00%            
Fees paid                   300,000 300,000        
Union Bank and Trust Company | West Center                              
Related Party Transaction [Line Items]                              
Related party note receivable                         $ 2,900,000    
Related party note receivable, interest rate                         3.85%    
Union Bank and Trust Company | 401 Building                              
Related Party Transaction [Line Items]                              
Related party note receivable                         $ 1,500,000    
Related party note receivable, interest rate                         6.00%    
Union Bank and Trust Company | 330-333                              
Related Party Transaction [Line Items]                              
Related party note receivable                         $ 162,000    
Related party note receivable, interest rate                         6.00%    
West Center                              
Related Party Transaction [Line Items]                              
Ownership percentage 33.33%               33.33%            
401 Building                              
Related Party Transaction [Line Items]                              
Ownership percentage 50.00%               50.00%            
330-333                              
Related Party Transaction [Line Items]                              
Ownership percentage 50.00%               50.00%            
Union Bank and Trust Company                              
Related Party Transaction [Line Items]                              
Loans purchased, net premium paid                 $ 2,600,000            
Loans receivable $ 331,300,000       395,500,000       331,300,000 395,500,000 405,500,000        
Bank deposits 48,400,000               48,400,000            
Amount of participation, FFELP student loans 874,200,000       749,600,000       874,200,000 749,600,000          
Maximum participation to Union Bank FFELP loans                 900,000,000            
Amount of participation, student loan asset-backed securities 118,600,000               118,600,000            
Maximum participation to Union Bank, asset backed security student loans                 100,000,000.0            
Cash and cash equivalents related party 285,600,000       390,500,000       285,600,000 390,500,000          
Restricted cash - due to customers $ 197,600,000       $ 270,500,000       197,600,000 270,500,000          
Interest income                 $ 500,000 1,600,000 1,000,000.0        
Square footage leased to related party (in square feet) | ft²                 4            
Lease income                 $ 80,000 79,000 76,000        
Union Bank and Trust Company | Loan servicing and systems revenue                              
Related Party Transaction [Line Items]                              
Revenue                 700,000 600,000 500,000        
Union Bank and Trust Company | Administration service fees                              
Related Party Transaction [Line Items]                              
Revenue                 1,300,000 3,700,000 3,200,000        
Director                              
Related Party Transaction [Line Items]                              
Related party note receivable                           $ 16,000,000.0  
Related party note receivable, interest rate                           14.00%  
Received from Union Bank | Union Bank and Trust Company | Communications revenue                              
Related Party Transaction [Line Items]                              
Revenue                 273,000 92,000 34,000        
Cash Management | Paid to Union Bank | Union Bank and Trust Company                              
Related Party Transaction [Line Items]                              
Related party selling, general and administrative expense                 279,000 213,000 128,000        
401K Plan Administrative Fees | Paid to Union Bank | Union Bank and Trust Company                              
Related Party Transaction [Line Items]                              
Related party selling, general and administrative expense                 447,000 366,000 313,000        
Private education loans | Union Bank and Trust Company                              
Related Party Transaction [Line Items]                              
Loans purchased                 144,900,000 67,700,000 0        
Consumer loans | Union Bank and Trust Company                              
Related Party Transaction [Line Items]                              
Loans purchased                 0 32,600,000 74,700,000        
Loan Origination Purchase Agreement | Affiliated Entity                              
Related Party Transaction [Line Items]                              
Marketing, origination and servicing fees                 2,000,000.0 1,800,000          
Employee Sharing Arrangement | Received from Union Bank | Union Bank and Trust Company                              
Related Party Transaction [Line Items]                              
Other revenue from related party                 317,000 317,000 231,000        
Processing Fees Received, Net Of Merchant Fees | Union Bank and Trust Company                              
Related Party Transaction [Line Items]                              
Proceeds from processing fees net of merchant fee                 $ 0 1,000 4,000        
Processing Fees Received, Merchant Fees | Union Bank and Trust Company                              
Related Party Transaction [Line Items]                              
Proceeds from processing fees net of merchant fee                   $ 4,000 $ 13,000        
v3.20.4
Related Parties - Transactions with Other Related Parties (Details)
1 Months Ended 3 Months Ended 12 Months Ended
Jul. 26, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 30, 2018
Aug. 31, 2019
USD ($)
Sep. 30, 2020
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Related Party Transaction [Line Items]                
Aircraft ownership percentage   0.825 0.65          
Increase in aircraft ownership interest   0.175            
Payment to acquire additional interest in aircraft   $ 717,500            
Management fee revenue                
Related Party Transaction [Line Items]                
Revenue           $ 9,421,000 $ 9,736,000 $ 7,284,000
Entity Owned By Significant Shareholder [Member]                
Related Party Transaction [Line Items]                
Increase in aircraft ownership interest   0.175            
Renewable Energy Investment                
Related Party Transaction [Line Items]                
Investment in LLC         $ 10,300,000      
Renewable Energy Investment | Farmers & Merchants Investment Inc.                
Related Party Transaction [Line Items]                
Investment in LLC         4,600,000      
Renewable Energy Investment | BankFirst holding co                
Related Party Transaction [Line Items]                
Investment in LLC         $ 1,700,000      
Affiliated Entity and Director | Management fee revenue                
Related Party Transaction [Line Items]                
Revenue           $ 15,000 69,000  
Director                
Related Party Transaction [Line Items]                
Related party note receivable $ 16,000,000.0              
Related party note receivable, interest rate 14.00%              
Related party note receivable, term 180 days              
Proceeds from note receivable       $ 16,000,000.0        
Agile Sports Technologies, Inc.                
Related Party Transaction [Line Items]                
Ownership percentage, cost method investment           19.60%    
Assurity Life Insurance Company | Payment For Insurance Premiums                
Related Party Transaction [Line Items]                
Transaction with related party           $ 1,800,000 1,700,000 1,700,000
Assurity Life Insurance Company | Reinsurance Premiums Paid For By Related Party                
Related Party Transaction [Line Items]                
Transaction with related party           1,400,000 1,300,000 1,300,000
Assurity Life Insurance Company | Annual Insurance Claim Refund                
Related Party Transaction [Line Items]                
Transaction with related party           64,000 56,000 84,000
BankFirst holding co | Director | Management fee revenue                
Related Party Transaction [Line Items]                
Revenue           $ 46,000    
Farmers & Merchants Investment Inc. | Affiliated Entity | Management fee revenue                
Related Party Transaction [Line Items]                
Revenue             69,000  
Mr. Dunlap | Agile Sports Technologies, Inc.                
Related Party Transaction [Line Items]                
Ownership percentage, related party           3.70%    
Assurity Life Insurance Company | Assurity Life Insurance Company | Solar                
Related Party Transaction [Line Items]                
Payments to acquire other investments           $ 1,200,000    
Assurity Life Insurance Company | Assurity Life Insurance Company | Management fee revenue | Solar                
Related Party Transaction [Line Items]                
Revenue           12,000    
Subsidiaries                
Related Party Transaction [Line Items]                
Payment for insurance claims           $ 1,000,000.0 $ 900,000 $ 900,000
Union Financial Services | Mr. Dunlap                
Related Party Transaction [Line Items]                
Ownership percentage, related party           50.00%    
v3.20.4
Fair Value - Assets and Liabilities that are Measured at Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Assets:    
Investments $ 390,648 $ 65,601
Total assets 390,648 65,601
Student loan and other asset-backed securities    
Assets:    
Investments 348,504 52,597
Equity securities    
Assets:    
Investments 10,114 6
Equity securities measured at net asset value    
Assets:    
Investments 31,927 12,894
Debt securities - available-for-sale    
Assets:    
Investments 103 104
Level 1    
Assets:    
Investments 10,217 110
Total assets 10,217 110
Level 1 | Student loan and other asset-backed securities    
Assets:    
Investments 0 0
Level 1 | Equity securities    
Assets:    
Investments 10,114 6
Level 1 | Debt securities - available-for-sale    
Assets:    
Investments 103 104
Level 2    
Assets:    
Investments 348,504 52,597
Total assets 348,504 52,597
Level 2 | Student loan and other asset-backed securities    
Assets:    
Investments 348,504 52,597
Level 2 | Equity securities    
Assets:    
Investments 0 0
Level 2 | Debt securities - available-for-sale    
Assets:    
Investments $ 0 $ 0
v3.20.4
Fair Value - Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Financial assets:          
Loans receivable $ 20,185,656 $ 21,378,042 $ 21,402,868    
Cash and cash equivalents 121,249   133,906 $ 121,347 $ 66,752
Restricted cash - due to customers 283,971   437,756 $ 369,678 $ 187,121
Financial liabilities:          
Bonds and notes payable 19,320,726   20,529,054    
Accrued interest payable 28,701   47,285    
Bank deposits 54,633   0    
Due to customers 301,471   437,756    
Fair value          
Financial assets:          
Loans receivable 20,454,132   21,477,630    
Accrued loan interest receivable 794,611   733,497    
Cash and cash equivalents 121,249   133,906    
Investments (at fair value) 390,648   65,601    
Beneficial interest in loan securitizations 58,709   33,258    
Restricted cash 553,175   650,939    
Restricted cash - due to customers 283,971   437,756    
Financial liabilities:          
Bonds and notes payable 19,270,810   20,479,095    
Accrued interest payable 28,701   47,285    
Bank deposits 54,599        
Due to customers 301,471   437,756    
Fair value | Level 1          
Financial assets:          
Loans receivable 0   0    
Accrued loan interest receivable 0   0    
Cash and cash equivalents 121,249   133,906    
Investments (at fair value) 10,217   110    
Beneficial interest in loan securitizations 0   0    
Restricted cash 553,175   650,939    
Restricted cash - due to customers 283,971   437,756    
Financial liabilities:          
Bonds and notes payable 0   0    
Accrued interest payable 0   0    
Bank deposits 48,422        
Due to customers 301,471   437,756    
Fair value | Level 2          
Financial assets:          
Loans receivable 0   0    
Accrued loan interest receivable 794,611   733,497    
Cash and cash equivalents 0   0    
Investments (at fair value) 348,504   52,597    
Beneficial interest in loan securitizations 0   0    
Restricted cash 0   0    
Restricted cash - due to customers 0   0    
Financial liabilities:          
Bonds and notes payable 19,270,810   20,479,095    
Accrued interest payable 28,701   47,285    
Bank deposits 6,177        
Due to customers 0   0    
Fair value | Level 3          
Financial assets:          
Loans receivable 20,454,132   21,477,630    
Accrued loan interest receivable 0   0    
Cash and cash equivalents 0   0    
Investments (at fair value) 0   0    
Beneficial interest in loan securitizations 58,709   33,258    
Restricted cash 0   0    
Restricted cash - due to customers 0   0    
Financial liabilities:          
Bonds and notes payable 0   0    
Accrued interest payable 0   0    
Bank deposits 0        
Due to customers 0   0    
Carrying value          
Financial assets:          
Loans receivable 19,391,045   20,669,371    
Accrued loan interest receivable 794,611   733,497    
Cash and cash equivalents 121,249   133,906    
Investments (at fair value) 390,648   65,601    
Beneficial interest in loan securitizations 58,331   33,187    
Restricted cash 553,175   650,939    
Restricted cash - due to customers 283,971   437,756    
Financial liabilities:          
Bonds and notes payable 19,320,726   20,529,054    
Accrued interest payable 28,701   47,285    
Bank deposits 54,633        
Due to customers $ 301,471   $ 437,756    
v3.20.4
Quarterly Financial Information (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Net interest income $ 86,556 $ 81,322 $ 66,635 $ 55,073 $ 64,252 $ 66,457 $ 59,825 $ 58,816 $ 289,585 $ 249,350 $ 254,360
Less provision for loan losses 10,116 5,821 (2,999) (76,299) (13,000) (10,000) (9,000) (7,000) (63,360) (39,000) (23,000)
Net interest income after provision for loan losses 96,672 87,143 63,636 (21,226) 51,252 56,457 50,825 51,816 226,225 210,350 231,360
Other (12,350) 1,502 60,127 8,281 10,973 13,439 14,440 9,067 57,561 47,918 54,805
Gain on sale of loans 0 14,817 0 18,206 15,549 0 1,712 0 33,023 17,261 0
Gain from deconsolidation of ALLO 258,588 0 0 0         258,588 0 0
Impairment expense and provision for beneficial interests 9,696 0 (332) (34,087)         (24,723) 0 (11,721)
Derivative market value adjustments and derivative settlements, net (11,059) 1,049 1,910 (16,365) 3,170 1,668 (24,088) (11,539) (24,465) (30,789) 71,085
Cost of services                 (105,018) (102,026) (76,492)
Salaries and benefits (136,612) (126,096) (119,247) (119,878) (124,561) (116,670) (111,214) (111,059) (501,832) (463,503) (436,179)
Depreciation and amortization (31,350) (30,308) (29,393) (27,648) (28,651) (27,701) (24,484) (24,213) (118,699) (105,049) (86,896)
Other expenses (45,391) (34,744) (37,052) (43,384) (46,710) (58,329) (45,417) (43,816) (160,574) (194,272) (166,310)
Income tax benefit (expense) (70,573) (19,156) (21,264) 10,133 (9,022) (8,829) (6,209) (11,391) (100,860) (35,451) (58,770)
Net income 231,606 71,176 86,610 (39,765) 41,834 33,135 24,678 41,647 349,626 141,294 227,524
Net (income) loss attributable to noncontrolling interests 3,385 327 (128) (767) 546 77 (59) (56) 2,817 509 389
Net income attributable to Nelnet, Inc. $ 234,991 $ 71,503 $ 86,482 $ (40,532) $ 42,380 $ 33,212 $ 24,619 $ 41,591 $ 352,443 $ 141,803 $ 227,913
Earnings per common share:                      
Net income attributable to Nelnet, Inc. shareholders - basic and diluted (in dollars per share) $ 6.10 $ 1.86 $ 2.21 $ (1.01) $ 1.06 $ 0.83 $ 0.61 $ 1.03 $ 9.02 $ 3.54 $ 5.57
Loan servicing and systems revenue                      
Revenue $ 113,990 $ 113,794 $ 111,042 $ 112,735 $ 113,086 $ 113,286 $ 113,985 $ 114,898 $ 451,561 $ 455,255 $ 440,027
Education technology services and payment processing services                      
Revenue 65,097 74,121 59,304 83,675 63,578 74,251 60,342 79,159 282,196 277,331 221,962
Cost of services (18,782) (25,243) (15,376) (22,806) (19,002) (25,671) (15,871) (21,059) (82,206) (81,603) (59,566)
Communications revenue                      
Revenue 19,253 20,211 18,998 18,181 17,499 16,470 15,758 14,543 76,643 64,269 44,653
Cost of services $ (5,573) $ (5,914) $ (5,743) $ (5,582) $ (5,327) $ (5,236) $ (5,101) $ (4,759) $ (22,812) $ (20,423) $ (16,926)
v3.20.4
Condensed Parent Company Financial Statements - Condensed Parent Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Assets:          
Cash and cash equivalents $ 121,249   $ 133,906 $ 121,347 $ 66,752
Investments 992,940   247,099    
Restricted cash 553,175   650,939 701,366 688,193
Other assets 92,020   134,308    
Total assets 22,646,160   23,708,970 25,220,968  
Liabilities:          
Notes payable 19,320,726   20,529,054    
Other liabilities 312,280 $ 297,823 303,781    
Total liabilities 20,017,811   21,317,876    
Nelnet, Inc. shareholders' equity:          
Additional paid-in capital 3,794   5,715    
Retained earnings 2,621,762 $ 2,358,759 2,377,627    
Accumulated other comprehensive earnings 6,102   2,972    
Total Nelnet, Inc. shareholders' equity 2,632,042   2,386,712    
Noncontrolling interests (3,693)   4,382    
Total equity 2,628,349   2,391,094 $ 2,314,779 $ 2,165,387
Total liabilities and equity 22,646,160   23,708,970    
Parent Company          
Assets:          
Cash and cash equivalents 69,687   73,144    
Investments 707,332   137,229    
Investment in subsidiary debt 38,903   13,818    
Restricted cash 93,271   9,567    
Investment in subsidiaries 1,963,413   2,181,122    
Notes receivable from subsidiaries 21,209   42,552    
Other assets 115,631   100,059    
Total assets 3,009,446   2,557,491    
Liabilities:          
Notes payable 236,317   67,655    
Other liabilities 140,710   97,952    
Total liabilities 377,027   165,607    
Nelnet, Inc. shareholders' equity:          
Common stock 384   398    
Additional paid-in capital 3,794   5,715    
Retained earnings 2,621,762   2,377,627    
Accumulated other comprehensive earnings 6,102   2,972    
Total Nelnet, Inc. shareholders' equity 2,632,042   2,386,712    
Noncontrolling interests 377   5,172    
Total equity 2,632,419   2,391,884    
Total liabilities and equity $ 3,009,446   $ 2,557,491    
v3.20.4
Condensed Parent Company Financial Statements - Condensed Parent Statements of Income (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Investment interest                 $ 24,543 $ 34,421 $ 26,600
Interest on bonds and notes payable and bank deposits                 330,071 699,327 669,906
Net interest income (expense) $ 86,556 $ 81,322 $ 66,635 $ 55,073 $ 64,252 $ 66,457 $ 59,825 $ 58,816 289,585 249,350 254,360
Other income/expense:                      
Other (12,350) 1,502 60,127 8,281 10,973 13,439 14,440 9,067 57,561 47,918 54,805
Gain from debt repurchases 0 14,817 0 18,206 15,549 0 1,712 0 33,023 17,261 0
Gain from deconsolidation of ALLO 258,588 0 0 0         258,588 0 0
Derivative market value adjustments and derivative settlements, net (11,059) 1,049 1,910 (16,365) 3,170 1,668 (24,088) (11,539) (24,465) (30,789) 71,085
Total other income/expense                 1,110,384 831,245 820,811
Operating expenses                 781,105 762,824 689,385
Income before income taxes                 450,486 176,745 286,294
Income tax expense 70,573 19,156 21,264 (10,133) 9,022 8,829 6,209 11,391 100,860 35,451 58,770
Net income 231,606 71,176 86,610 (39,765) 41,834 33,135 24,678 41,647 349,626 141,294 227,524
Net (loss) income attributable to noncontrolling interests 3,385 327 (128) (767) 546 77 (59) (56) 2,817 509 389
Net income attributable to Nelnet, Inc. $ 234,991 $ 71,503 $ 86,482 $ (40,532) $ 42,380 $ 33,212 $ 24,619 $ 41,591 352,443 141,803 227,913
Parent Company                      
Investment interest                 4,110 4,925 17,707
Interest on bonds and notes payable and bank deposits                 3,179 9,588 9,270
Net interest income (expense)                 931 (4,663) 8,437
Other income/expense:                      
Other                 40,904 8,384 13,944
Gain from debt repurchases                 1,962 136 359
Equity in subsidiaries income                 132,101 182,346 158,364
Gain from deconsolidation of ALLO                 258,588 0 0
Derivative market value adjustments and derivative settlements, net                 (24,465) (30,789) 71,085
Total other income/expense                 409,090 160,077 243,752
Operating expenses                 14,006 19,561 4,795
Income before income taxes                 396,015 135,853 247,394
Income tax expense                 43,577 (5,950) 19,481
Net income                 352,438 141,803 227,913
Net (loss) income attributable to noncontrolling interests                 5 0 0
Net income attributable to Nelnet, Inc.                 $ 352,443 $ 141,803 $ 227,913
v3.20.4
Condensed Parent Company Financial Statements - Condensed Parent Statement of Comprehensive Income (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Net income $ 231,606 $ 71,176 $ 86,610 $ (39,765) $ 41,834 $ 33,135 $ 24,678 $ 41,647 $ 349,626 $ 141,294 $ 227,524
Unrealized holding gains (losses) arising during period, net                 6,637 (1,199) 1,056
Reclassification adjustment for gains recognized in net income, net of losses                 (2,521) 0 (978)
Income tax effect                 (986) 288 (69)
Total other comprehensive income (loss)                 3,130 (911) 9
Comprehensive income                 352,756 140,383 227,533
Comprehensive loss attributable to noncontrolling interests                 2,817 509 389
Comprehensive income attributable to Nelnet, Inc.                 355,573 140,892 227,922
Parent Company                      
Net income                 352,438 141,803 227,913
Unrealized holding gains (losses) arising during period, net                 6,637 (1,199) 1,056
Reclassification adjustment for gains recognized in net income, net of losses                 (2,521) 0 (978)
Income tax effect                 (986) 288 (69)
Total other comprehensive income (loss)                 3,130 (911) 9
Comprehensive income                 355,568 140,892 227,922
Comprehensive loss attributable to noncontrolling interests                 5 0 0
Comprehensive income attributable to Nelnet, Inc.                 $ 355,573 $ 140,892 $ 227,922
v3.20.4
Condensed Parent Company Financial Statements - Condensed Parent Statements of Cash Flows (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Net income attributable to Nelnet, Inc. $ 234,991 $ 71,503 $ 86,482 $ (40,532) $ 42,380 $ 33,212 $ 24,619 $ 41,591 $ 352,443 $ 141,803 $ 227,913
Net loss attributable to noncontrolling interest (3,385) (327) 128 767 (546) (77) 59 56 (2,817) (509) (389)
Net income 231,606 71,176 86,610 (39,765) 41,834 $ 33,135 $ 24,678 41,647 349,626 141,294 227,524
Adjustments to reconcile net income to net cash provided by operating activities:                      
Depreciation and amortization                 198,473 192,662 184,682
(Payments to) proceeds from termination of derivative instruments, net                 0 (12,530) 10,283
(Payments to) proceeds from clearinghouse - initial and variation margin, net                 (26,747) (70,685) 40,382
Gain from deconsolidation of ALLO                 (287,579) 0 0
Gain from investments, net                 (14,055) (3,095) (8,139)
Deferred income tax expense (benefit)                 7,974 (7,265) 10,981
Non-cash compensation expense                 16,739 6,781 6,539
Impairment expense and provision for beneficial interests (9,696) $ 0 $ 332 34,087         24,723 0 11,721
Decrease (increase) in other assets                 59,182 (19,858) (4,069)
Increase (decrease) in other liabilities                 35,907 49,100 (12,506)
Net cash provided by operating activities                 212,815 298,915 270,892
Cash flows from investing activities, net of acquisitions:                      
Purchases of available-for-sale securities                 (471,510) (1,010) (46,424)
Proceeds from sales of available-for-sale securities                 173,784 105 71,415
Net cash provided by (used in) investing activities                 621,219 1,524,566 (732,351)
Cash flows from financing activities:                      
Payments on notes payable                 (3,129,485) (4,698,878) (3,113,503)
Proceeds from issuance of notes payable                 1,884,689 2,997,972 3,922,962
Payments of debt issuance costs                 (8,674) (14,406) (13,808)
Dividends paid                 (31,778) (29,485) (26,839)
Repurchases of common stock                 (73,358) (40,411) (45,331)
Proceeds from issuance of common stock                 1,653 1,552 1,359
Acquisition of noncontrolling interest                 (600) 0 (13,449)
Issuance of noncontrolling interests                 205,768 4,650 918
Net cash (used in) provided by financing activities                 (1,098,240) (1,793,271) 711,784
Net increase (decrease) in cash, cash equivalents and restricted cash                 (264,206) 30,210 250,325
Cash, cash equivalents, and restricted cash, beginning of year       1,222,601       1,192,391 1,222,601 1,192,391 942,066
Cash, cash equivalents, and restricted cash, end of year 958,395       1,222,601       958,395 1,222,601 1,192,391
Supplemental disclosures of cash flow information:                      
Cash disbursements made for interest                 301,570 657,436 591,394
Cash disbursements made for income taxes, net of refunds and credits [1]                 29,685 17,672 473
Parent Company                      
Net income attributable to Nelnet, Inc.                 352,443 141,803 227,913
Net loss attributable to noncontrolling interest                 (5) 0 0
Net income                 352,438 141,803 227,913
Adjustments to reconcile net income to net cash provided by operating activities:                      
Depreciation and amortization                 534 467 442
Derivative market value adjustments                 28,144 76,195 (1,014)
(Payments to) proceeds from termination of derivative instruments, net                 0 (12,530) 10,283
(Payments to) proceeds from clearinghouse - initial and variation margin, net                 (26,747) (70,685) 40,382
Equity in earnings of subsidiaries                 (132,101) (182,346) (158,364)
Gain from deconsolidation of ALLO                 (287,579) 0 0
Gain from debt repurchases                 (1,962) (136) (359)
Gain from investments, net                 (46,019) (3,969) (11,177)
Deferred income tax expense (benefit)                 23,747 (19,183) 21,814
Non-cash compensation expense                 16,739 6,781 6,539
Impairment expense and provision for beneficial interests                 7,784 0 0
Other                 (329) (481) (4,770)
Decrease (increase) in other assets                 (17,410) (10,672) 25,252
Increase (decrease) in other liabilities                 26,009 29,384 (9,621)
Net cash provided by operating activities                 (56,752) (45,372) 147,320
Cash flows from investing activities, net of acquisitions:                      
Purchases of available-for-sale securities                 (342,563) 0 (46,382)
Proceeds from sales of available-for-sale securities                 168,555 0 75,605
Capital distributions/contributions from/to subsidiaries, net                 99,830 449,602 (334,280)
Decrease (increase) in notes receivable from subsidiaries                 21,343 14,421 (31,325)
(Purchases of) proceeds from subsidiary debt, net                 (25,085) 0 61,841
Increase in guaranteed payment from subsidiary                 0 0 (70,270)
Purchases of other investments                 (54,637) (47,106) (28,610)
Proceeds from other investments                 8,564 27,926 7,783
Net cash provided by (used in) investing activities                 (123,993) 444,843 (365,638)
Cash flows from financing activities:                      
Payments on notes payable                 (20,381) (361,272) (8,651)
Proceeds from issuance of notes payable                 190,520 60,000 300,000
Payments of debt issuance costs                 (49) (1,129) (827)
Dividends paid                 (31,778) (29,485) (26,839)
Repurchases of common stock                 (73,358) (40,411) (45,331)
Proceeds from issuance of common stock                 1,653 1,552 1,359
Acquisition of noncontrolling interest                 (600) 0 (13,449)
Issuance of noncontrolling interests                 194,985 878 13
Net cash (used in) provided by financing activities                 260,992 (369,867) 206,275
Net increase (decrease) in cash, cash equivalents and restricted cash                 80,247 29,604 (12,043)
Cash, cash equivalents, and restricted cash, beginning of year       $ 82,711       $ 53,107 82,711 53,107 65,150
Cash, cash equivalents, and restricted cash, end of year $ 162,958       $ 82,711       162,958 82,711 53,107
Supplemental disclosures of cash flow information:                      
Cash disbursements made for interest                 2,577 9,501 8,628
Cash disbursements made for income taxes, net of refunds and credits                 29,685 17,672 473
Noncash operating, investing, and financing activity:                      
Recapitalization of accrued interest payable to accrued guaranteed payment                 0 0 6,674
Recapitalization of note payable to guaranteed payment                 0 0 186,429
Recapitalization of guaranteed payment to investment in subsidiary                 0 0 273,360
Contributions of investments to subsidiaries, net                 $ 49,066 $ 0 $ 0
[1] For 2020, 2019, and 2018 the Company utilized $53.9 million, $31.8 million, and $14.7 million of federal and state tax credits, respectively, related primarily to renewable energy.