NELNET INC, 10-K filed on 2/27/2014
Annual Report
Document and Entity Information Document (USD $)
12 Months Ended
Dec. 31, 2013
Jan. 31, 2014
Common Class A [Member]
Jan. 31, 2014
Common Class B [Member]
Document Information [Line Items]
 
 
 
Entity Registrant Name
NELNET INC 
 
 
Document Type
10-K 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Common Stock, Shares Outstanding
 
34,879,315 
11,495,377 
Entity Public Float
$ 940,529,761 
 
 
Amendment Flag
false 
 
 
Entity Central Index Key
0001258602 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Accelerated Filer 
 
 
Entity Well-known Seasoned Issuer
No 
 
 
Document Period End Date
Dec. 31, 2013 
 
 
Document Fiscal Year Focus
2013 
 
 
Document Fiscal Period Focus
Q4 
 
 
Consolidated Balance Sheets (unaudited) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Assets:
 
 
Student loans receivable, net
$ 25,907,589,000 
$ 24,830,621,000 
Cash and cash equivalents:
 
 
Cash and cash equivalents - not held at a related party
8,537,000 
7,567,000 
Cash and cash equivalents - held at a related party
54,730,000 
58,464,000 
Total cash and cash equivalents
63,267,000 
66,031,000 
Investments
192,040,000 
83,312,000 
Restricted cash and investments
735,123,000 
815,462,000 
Restricted cash - due to customers
167,576,000 
96,516,000 
Accrued interest receivable
314,553,000 
307,518,000 
Accounts receivable (net of allowance for doubtful accounts)
56,072,000 
63,638,000 
Goodwill
117,118,000 
117,118,000 
Intangible assets, net
6,132,000 
9,393,000 
Property and equipment, net
33,829,000 
31,869,000 
Other assets
115,043,000 
88,976,000 
Fair value of derivative instruments
62,507,000 
97,441,000 
Total assets
27,770,849,000 
26,607,895,000 
Liabilities:
 
 
Bonds and notes payable
25,955,289,000 
25,098,835,000 
Accrued interest payable
21,725,000 
14,770,000 
Other liabilities
164,300,000 
161,671,000 
Due to customers
167,576,000 
96,516,000 
Fair value of derivative instruments
17,969,000 
70,890,000 
Total liabilities
26,326,859,000 
25,442,682,000 
Nelnet, Inc. shareholders' equity:
 
 
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding
Common stock:
 
 
Additional paid-in capital
24,887,000 
32,540,000 
Retained earnings
1,413,492,000 
1,129,389,000 
Accumulated other comprehensive earnings
4,819,000 
2,813,000 
Total Nelnet, Inc. shareholders' equity
1,443,662,000 
1,165,208,000 
Noncontrolling interest
328,000 
5,000 
Total equity
1,443,990,000 
1,165,213,000 
Commitments and contingencies
 
 
Total liabilities and equity
27,770,849,000 
26,607,895,000 
Common Class A [Member]
 
 
Common stock:
 
 
Common stock
349,000 
351,000 
Common Class B [Member]
 
 
Common stock:
 
 
Common stock
115,000 
115,000 
Variable Interest Entity, Primary Beneficiary [Member]
 
 
Assets:
 
 
Student loans receivable, net
26,020,629,000 
24,920,130,000 
Cash and cash equivalents:
 
 
Restricted cash and investments
732,771,000 
753,511,000 
Other assets
313,748,000 
306,454,000 
Fair value of derivative instruments
36,834,000 
82,841,000 
Liabilities:
 
 
Bonds and notes payable
(26,244,222,000)
(25,209,341,000)
Other liabilities
(303,142,000)
(348,364,000)
Commitments and contingencies
 
 
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net
$ 556,618,000 
$ 505,231,000 
Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Allowance for loan losses
$ 55,122 
$ 51,902 
Allowance for doubtful accounts (in Dollars)
$ 6,045 
$ 1,529 
Preferred stock, par value (in Dollars per share)
$ 0.01 
$ 0.01 
Preferred stock, authorized shares
50,000,000 
50,000,000 
Preferred stock, issued shares
Preferred stock, outstanding shares
Common Class A [Member]
 
 
Par value (in Dollars per share)
$ 0.01 
$ 0.01 
Shares authorized
600,000,000 
600,000,000 
Shares issued
34,881,338 
35,116,913 
Shares outstanding
34,881,338 
35,116,913 
Common Class B [Member]
 
 
Par value (in Dollars per share)
$ 0.01 
$ 0.01 
Shares authorized
60,000,000 
60,000,000 
Shares issued
11,495,377 
11,495,377 
Shares outstanding
11,495,377 
11,495,377 
Consolidated Statements of Income (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Interest income:
 
 
 
Loan interest
$ 638,142 
$ 609,237 
$ 589,686 
Investment interest
6,668 
4,616 
3,168 
Total interest income
644,810 
613,853 
592,854 
Interest expense:
 
 
 
Interest on bonds and notes payable
230,935 
268,566 
228,289 
Net interest income
413,875 
345,287 
364,565 
Provision for loan losses
18,500 
21,500 
21,250 
Net interest income (loss) after provision for loan losses
395,375 
323,787 
343,315 
Other income (expense):
 
 
 
Loan and guaranty servicing fees
243,428 
209,748 
175,657 
Tuition payment processing and campus commerce revenue
80,682 
74,410 
67,797 
Enrollment services revenue
98,078 
117,925 
130,470 
Other income
46,298 
39,476 
29,513 
Gain on sale of loans and debt repurchases
11,699 
4,139 
8,340 
Derivative market value and foreign currency adjustments and derivative settlements, net
18,957 
(61,416)
(25,647)
Total other income (expense)
499,142 
384,282 
386,130 
Operating expenses:
 
 
 
Salaries and benefits
196,169 
192,826 
177,951 
Cost to provide enrollment services
64,961 
78,375 
86,548 
Depreciation and amortization
18,311 
33,625 
29,744 
Other
149,542 
128,738 
113,415 
Total operating expenses
428,983 
433,564 
407,658 
Income before income taxes
465,534 
274,505 
321,787 
Income tax expense
(161,193)
(96,077)
(117,452)
Net income (loss)
304,341 
178,428 
204,335 
Net income attributable to noncontrolling interest
1,669 
431 
Comprehensive (Income) Loss, Net of Tax, Attributable to Noncontrolling Interest
 
 
Net income attributable to Nelnet, Inc.
$ 302,672 
$ 177,997 
$ 204,335 
Earnings per common share:
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$ 6.50 
$ 3.76 
$ 4.24 
Weighted average common shares outstanding - basic and diluted
46,570,314 
47,369,331 
48,157,403 
Consolidated Statements of Comprehensive Income (unaudited) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net income
$ 304,341 
$ 178,428 
$ 204,335 
Available-for-sale securities:
 
 
 
Unrealized holding gains arising during period, net
9,134 
10,230 
Less reclassification adjustment for gains recognized in net income, net of losses
(5,938)
(5,798)
Income tax effect
(1,190)
(1,619)
Total other comprehensive income
2,006 
2,813 
Comprehensive income
306,347 
181,241 
204,335 
Comprehensive income attributable to noncontrolling interest
 
 
Comprehensive income attributable to Nelnet, Inc.
$ 304,678 
$ 180,810 
$ 204,335 
Consolidated Statements of Shareholders' Equity (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Preferred Stock [Member]
Dec. 31, 2012
Preferred Stock [Member]
Dec. 31, 2011
Preferred Stock [Member]
Dec. 31, 2010
Preferred Stock [Member]
Dec. 31, 2013
Common Class A [Member]
Dec. 31, 2012
Common Class A [Member]
Dec. 31, 2011
Common Class A [Member]
Dec. 31, 2013
Common Class A [Member]
Dec. 31, 2013
Common Class B [Member]
Dec. 31, 2012
Common Class B [Member]
Dec. 31, 2011
Common Class B [Member]
Dec. 31, 2013
Common Class B [Member]
Dec. 31, 2013
Additional paid-in capital [Member]
Dec. 31, 2012
Additional paid-in capital [Member]
Dec. 31, 2011
Additional paid-in capital [Member]
Dec. 31, 2013
Additional paid-in capital [Member]
Dec. 31, 2013
Retained earnings [Member]
Dec. 31, 2012
Retained earnings [Member]
Dec. 31, 2011
Retained earnings [Member]
Dec. 31, 2013
Retained earnings [Member]
Dec. 31, 2013
Accumulated other comprehensive earnings [Member]
Dec. 31, 2012
Accumulated other comprehensive earnings [Member]
Dec. 31, 2013
Accumulated other comprehensive earnings [Member]
Dec. 31, 2012
Employee notes receivable [Member]
Dec. 31, 2011
Employee notes receivable [Member]
Dec. 31, 2013
Employee notes receivable [Member]
Dec. 31, 2012
Employee notes receivable [Member]
Dec. 31, 2013
Noncontrolling interest [Member]
Dec. 31, 2012
Noncontrolling interest [Member]
Dec. 31, 2013
Noncontrolling interest [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance (in Shares)
 
 
 
35,116,913 
35,643,102 
36,846,353 
34,881,338 
11,495,377 
11,495,377 
11,495,377 
11,495,377 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance
$ 1,165,213 
$ 1,066,205 
$ 906,633 
$ 0 
$ 0 
$ 0 
$ 0 
$ 351 
$ 356 
$ 368 
$ 349 
$ 115 
$ 115 
$ 115 
$ 115 
$ 32,540 
$ 49,245 
$ 76,263 
$ 24,887 
$ 1,129,389 
$ 1,017,629 
$ 831,057 
$ 1,413,492 
$ 2,813 
 
$ 4,819 
$ (1,140)
$ (1,170)
$ 0 
$ 0 
$ 5 
 
$ 328 
Noncontrolling Interest, Increase from Sale of Parent Equity Interest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
302,672 
177,997 
204,335 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
302,672 
177,997 
204,335 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interest
1,669 
431 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1,669)
(431)
 
Net income
304,341 
178,428 
204,335 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive earnings
2,006 
2,813 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,006 
2,813 
 
 
 
 
 
 
 
 
Distribution made to noncontrolling interest
(1,351)
(431)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,351 
431 
 
Cash dividend on Class A and Class B common stock
(18,569)
(66,237)
(17,763)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(18,569)
(66,237)
(17,763)
 
 
 
 
 
 
 
 
 
 
 
Contingency payment related to business combination
 
 
(5,893)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(5,893)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of common stock, net of forfeitures
2,379 
3,916 
4,696 
 
 
 
 
 
 
2,377 
3,913 
4,694 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
 
 
 
 
 
157,684 
279,834 
233,172 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense for stock based awards
3,102 
2,188 
1,301 
 
 
 
 
 
 
 
 
 
 
 
 
3,102 
2,188 
1,301 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchase of common stock
(13,136)
(22,814)
(27,134)
 
 
 
 
(4)
(8)
(14)
 
 
(13,132)
(22,806)
(27,120)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchase of common stock (in Shares)
 
 
 
 
 
 
 
(393,259)
(806,023)
(1,436,423)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reduction of employee stock notes receivable
 
$ 1,140 
$ 30 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,140 
$ 30 
 
 
 
 
 
Consolidated Statements of Shareholders' Equity (unaudited) (Parentheticals)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Cash dividend on Class A and Class B common stock - per share
$ 0.40 
$ 1.40 
$ 0.37 
Consolidated Statements of Cash Flows (unaudited) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net income attributable to Nelnet, Inc.
$ 302,672 
$ 177,997 
$ 204,335 
Net income attributable to noncontrolling interest
1,669 
431 
Net income (loss)
304,341 
178,428 
204,335 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization, including debt discounts and student loan premiums and deferred origination cost
79,484 
116,781 
103,472 
Student loan discount accretion
(36,258)
(44,380)
(30,915)
Provision for loan losses
18,500 
21,500 
21,250 
Derivative market value adjustment
(83,878)
27,833 
50,513 
Foreign currency transaction adjustment
35,285 
19,561 
(32,706)
Proceeds to terminate and or amend derivative instruments
65,890 
(6,005)
3,365 
Gain on sale of loans
(33)
(116)
(1,378)
Gain from debt repurchases
(11,666)
(4,023)
(6,962)
Gain from sales of available-for-sale securities, net
(5,938)
(5,798)
Deferred income tax expense (benefit)
2,539 
(23,829)
(7,726)
Non-cash compensation expense
(3,329)
(3,020)
(2,029)
Other non-cash items
112 
1,945 
(2,394)
Decrease in accrued interest receivable
8,341 
883 
29,220 
Decrease (increase) in accounts receivable
7,566 
16 
(11,040)
(Increase) decrease in other assets
(4,783)
2,322 
(3,176)
Decrease in accrued interest payable
433 
4,864 
538 
Increase (decrease) in other liabilities
(4,782)
(16,044)
6,487 
Net cash provided by operating activities
387,180 
299,318 
310,862 
Cash flows from investing activities, net of asset acquisitions:
 
 
 
Purchases of student loans and student loan residual interests
(1,925,703)
(3,776,690)
(976,837)
Purchases of student loans from a related party
(466,973)
(321)
(112)
Net proceeds from student loan repayments, claims, capitalized interest, participations, and other
2,852,177 
3,112,744 
2,235,719 
Proceeds from sale of student loans
43,292 
107,093 
121,344 
Purchases of available-for-sale securities
(219,894)
(190,250)
Proceeds from sales of available-for-sale securities
103,250 
165,854 
Purchases of other investments, net
(20,302)
Purchases of property and equipment, net
(17,010)
(9,944)
(14,167)
Decrease (increase) in restricted cash and investments, net
147,743 
(201,140)
87,905 
Asset acquisitions, including contingency payments
(14,029)
Net cash provided by (used in) investing activities
496,580 
(792,654)
1,439,823 
Cash flows from financing activities, net of borrowing assumed:
 
 
 
Payments on bonds and notes payable
(5,153,057)
(4,444,099)
(3,045,663)
Proceeds from issuance of bonds and notes payable
4,312,720 
5,066,950 
1,100,384 
Payments of debt issuance costs
(13,697)
(18,197)
(2,282)
Dividends paid
(18,569)
(66,237)
(17,763)
Repurchases of common stock
(13,136)
(22,814)
(27,134)
Proceeds from issuance of common stock
561 
480 
512 
Payments received on employee stock notes receivable
1,140 
30 
Issuance of noncontrolling interest
Distribution made to noncontrolling interest
(1,351)
(431)
Net cash (used in) provided by financing activities
(886,524)
516,797 
(1,991,916)
Net (decrease) increase in cash and cash equivalents
(2,764)
23,461 
(241,231)
Cash and cash equivalents, beginning of period
66,031 
42,570 
283,801 
Cash and cash equivalents, end of period
63,267 
66,031 
42,570 
Supplemental disclosures of cash flow information:
 
 
 
Interest paid
190,998 
234,606 
206,117 
Income taxes paid, net of refunds
154,840 
114,758 
133,180 
Noncash investing activity - student loans and other assets acquired
1,715,260 
1,760,583 
Noncash financing activity - borrowings and other liabilities assumed in acquisition of student loans
$ 1,676,761 
$ 0 
$ 1,692,241 
Description of Business
Description of Business [Text Block]
1.
Description of Business

Nelnet, Inc. and its subsidiaries (“Nelnet” or the “Company”) is an education services company focused primarily on providing fee-based processing services and quality education-related products and services in four core areas: asset management and finance, loan servicing, payment processing, and enrollment services (education planning). These products and services help students and families plan, prepare, and pay for their education and make the administrative and financial processes more efficient for schools and financial organizations. In addition, the Company earns net interest income on a portfolio of federally insured student loans. 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”).

To reduce its reliance on interest income on student loans, the Company has significantly diversified and increased its fee-based education-related services. Effective July 1, 2010, the Health Care and Education Reconciliation Act of 2010 (the "Reconciliation Act of 2010”) prohibits new loan originations under the FFEL Program and requires that all new federal student loan originations be made 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. However, the Company believes there will be opportunities to purchase FFELP loan portfolios from current FFELP participants looking to adjust their FFELP businesses.

The Company operates as four distinct operating segments. The Company's operating segments include:

Student Loan and Guaranty Servicing
Tuition Payment Processing and Campus Commerce
Enrollment Services
Asset Generation and Management

A description of each reportable operating segment is included below. In addition, see note 13 for additional information on the Company's segment reporting.

Fee-Based Operating Segments

Student Loan and Guaranty Servicing

The following are the primary products and services the Company offers as part of its Student Loan and Guaranty Servicing operating segment:
 
Servicing federally-owned student loans for the Department
Servicing FFELP loans
Originating and servicing non-federally insured student loans
Servicing and outsourcing services for FFELP guaranty agencies, including FFELP guaranty collection services
Providing student loan servicing software and other information technology products and services

The Student Loan and Guaranty Servicing operating segment 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.

The Company is one of four private sector companies awarded a student loan servicing contract by the Department of Education to provide additional servicing capacity for loans owned by the Department.

This operating segment also provides servicing activities for guaranty agencies, which serve as intermediaries between the Department and FFELP lenders, and are responsible for paying the claims made on defaulted loans. The services provided by the Company include providing software and data center services, borrower and loan updates, default aversion tracking services, claim processing services, and post-default collection services.

This operating segment also provides student loan servicing software, which is used internally by the Company 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 Private, Federal Direct Loan Program, and FFEL Program loans.

Tuition Payment Processing and Campus Commerce

The Company's Tuition Payment Processing and Campus Commerce operating segment provides products and services to help students and families manage the payment of education costs at all levels (K-12 and higher education). It also provides innovative education-focused technologies, services, and support solutions to help schools with the everyday challenges of collecting and processing commerce data.

In the K-12 market, the Company offers actively managed tuition payment plans and billing services as well as assistance with financial needs assessment and donor management. In the higher education market, the Company primarily offers actively managed tuition payment plans and campus commerce technologies and payment processing.

Enrollment Services

The Enrollment Services operating segment offers products and services that are focused on helping colleges recruit and retain students and helping students plan and prepare for life after high school and/or military service. The following are the primary products and services the Company offers as part of the Enrollment Services segment:

Inquiry Generation - Services include delivering qualified inquiries or clicks to third-party customers, primarily higher education institutions.

Inquiry Management (Agency) - Services include managing the marketing activities for third-party customers, primarily higher education institutions, in order to provide qualified inquiries or clicks.

Inquiry Management (Software) - Products and services include the licensing of software to third-party customers, primarily higher education institutions. This software is also used internally by the Company. The inquiry management software has been adapted so that it can be offered as a hosted software solution usable by third parties to manage and obtain qualified inquiries or clicks.

Digital Marketing - Services include interactive services to connect students to colleges and universities and are sold primarily based on subscriptions, and also include editing services for admission essays.

Content Solutions - Products and services include test preparation study guides, school directories and databases, career exploration guides, on-line courses, scholarship search and selection data, career planning, and on-line information about colleges and universities.

Asset Generation and Management Operating Segment

The Company's Asset Generation and Management operating segment includes the acquisition, management, and ownership of the Company's student loan assets, which has historically been the Company's largest product and service offering. Nearly all student loan assets included in this segment are 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”). The Company generates a substantial portion of its earnings from the spread, referred to as the Company's student loan spread, between the yield it receives on its student loan portfolio and the associated costs to finance such portfolio. The student loan assets are held in a series of education lending subsidiaries and associated securitization trusts designed specifically for this purpose. In addition to the student 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.
Summary of Significant Accounting Policies and Practices
Significant Accounting Policies [Text Block]

2.
Summary of Significant Accounting Policies and Practices

Consolidation

The consolidated financial statements include the accounts of Nelnet, Inc. and its consolidated subsidiaries, including its education lending subsidiaries for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation.

The Company's education lending subsidiaries (or Variable Interest Entities ("VIEs")) are engaged in the securitization of education finance assets. These education lending subsidiaries hold beneficial interests in eligible loans, subject to creditors with specific interests. The liabilities of the Company's education lending subsidiaries are not the direct obligations of Nelnet, Inc. or any of its other subsidiaries. Each education 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 has determined it is the primary beneficiary of its education lending subsidiaries (VIEs). 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 is generally the administrator and master servicer of the securitized assets held in its education lending subsidiaries and owns the residual interest of the securitization trusts. As a result, for accounting purposes, the transfers of student loans to the eligible lender 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.
Reclassification

Certain amounts previously reported within the Company's consolidated financial statements have been reclassified to conform to the current period presentation.

Noncontrolling Interest

Noncontrolling interest reflects the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interests in Whitetail Rock Capital Management, LLC ("WRCM"), a subsidiary of the Company that issued minority membership interests on January 1, 2012 and January 1, 2013.
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.

Student Loans Receivable

Student loans consist of federally insured student loans and non-federally insured student 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, 2013 and 2012.

Federally insured loans were previously made 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. The 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 period. Interest rates on loans may be fixed or variable, dependent upon the type of loan, terms of the loan agreements, and date of origination. For FFELP loans, the education lending subsidiaries have entered into trust agreements in which unrelated financial institutions serve as the eligible lender trustees. As eligible lender trustees, the financial institutions act as the eligible lender in acquiring certain eligible student loans as an accommodation to the subsidiaries, which hold beneficial interests in the student loan assets as the beneficiaries of such trusts.

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.

Student loans receivable also includes non-federally insured loans. The terms of the non-federally insured loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to 30 years. The non-federally insured loans are not covered by a guarantee or collateral in the event of borrower default.

Allowance for Loan Losses

The allowance for loan losses represents management's estimate of probable losses on student loans. The provision for loan losses reflects the activity for the applicable period and provides an allowance at a level that the Company's management believes is appropriate to cover probable losses inherent in the loan portfolio. The Company evaluates the adequacy of the allowance for loan losses on its federally insured loan portfolio separately from its non-federally insured loan portfolio. These evaluation processes are subject to numerous judgments and uncertainties.

The allowance for the federally insured loan portfolio is based on periodic evaluations of the Company's loan portfolios considering 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, current economic conditions, and other relevant factors. 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. Student loans disbursed prior to October 1, 1993 are fully insured.

In determining the appropriate allowance for loan losses on the non-federally insured loans, the Company considers several factors, including: loans in repayment versus those in a nonpaying status, delinquency status, type of program, trends in defaults in the portfolio based on Company and industry data, past experience, current economic conditions, and other relevant factors. The Company places a non-federally insured loan on nonaccrual status when the collection of principal and interest is 30 days past due, and charges off the loan when the collection of principal and interest is 120 days past due. Collections, if any, are reflected as a recovery through the allowance for loan losses.

Management has determined that each of the federally insured loan portfolio and the non-federally insured loan portfolio meets 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 credit losses.  Accordingly, the portfolio segment basis disclosures are presented in note 3 for each of these portfolios.  The Company does not disaggregate its portfolio segment student loan portfolios into classes of financing receivables. In addition, as of December 31, 2013 and 2012, the Company did not have any impaired loans as defined in the Receivables Topic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification.

Cash and Cash Equivalents and Statement of Cash Flows

For purposes of the consolidated statements of cash flows, the Company considers all investments with maturities when purchased 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 accrued interest was $29.0 million, $68.0 million, and $12.7 million in 2013, 2012, and 2011, respectively.



Investments

The Company's available-for-sale investment portfolio consists of student loan asset-backed securities and equity and debt securities. These securities are carried at fair value, with the temporary changes in fair value, net of taxes, carried as a separate component of shareholders’ equity. The amortized cost of debt securities in this category (including the student loan asset-backed securities) is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. Other-than-temporary impairment is evaluated by considering several factors, including the length of time and extent to which the fair value has been less than the amortized cost basis, the financial condition and near-term prospects of the issuer of the security (considering factors such as adverse conditions specific to the security and ratings agency actions), and the intent and ability of the Company to retain the investment to allow for any anticipated recovery in fair value. The entire fair value loss on a security that has experienced an other-than-temporary impairment is recorded in earnings if the Company intends to sell the security or if it is more likely than not that the Company will be required to sell the security before the expected recovery of the loss. However, if the impairment is other-than-temporary, and either of those two conditions does not exist, the portion of the impairment related to credit losses is recorded in earnings and the impairment related to other factors is recorded in other comprehensive income.

Securities classified as trading are accounted for at fair value, with unrealized gains and losses included in "other income" in the consolidated statements of income.

Securities that the Company has the intent and ability to hold to maturity are classified as held-to-maturity and are accounted for at amortized cost unless the security is determined to have an other-than-temporary impairment. In that case, it is accounted for in the same manner as described above for available-for-sale investments.

When an investment is sold, the cost basis is determined through specific identification of the security sold.

Restricted Cash and Investments 

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 counterparties.

Cash balances that the Company's indentured trusts deposit in guaranteed investment contracts that are held for the related asset-backed note holders are classified as restricted investments. The Company has classified these investments as held-to-maturity and accounts for them at amortized cost, which approximates fair value.

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 Tuition Payment Processing and Campus Commerce 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 includes allowances for doubtful accounts. Allowance estimates are based upon individual customer experience, as well as the age of receivables and likelihood of collection.

Goodwill

The Company reviews goodwill for impairment annually (in the fourth quarter) 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 two-step quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test.

If the Company elects to not perform a qualitative assessment or if the Company determines it is more likely than not that the fair value of a reporting unit is less than the carrying amount, then the Company performs a two-step impairment test on goodwill. In the first step, the Company compares the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference.

Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and determination of appropriate market comparables. Actual future results may differ from those estimates.
See note 8 for information regarding the Company's annual goodwill impairment review for 2011, 2012, and 2013.
Intangible Assets

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 accelerated and straight-line methods for recording depreciation and amortization. Accelerated methods are used for certain equipment and software when this method is believed to provide a better matching of income and expenses. Leasehold improvements are amortized over the lesser of their useful life or the related estimated lease period.

Impairment of Long‑Lived Assets

The Company reviews its long-lived assets, such as 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. The Company uses estimates to determine the fair value of long-lived 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 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 estimating fair value if such methods are determined to be more appropriate.

Assumptions and estimates about future values and remaining useful lives 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.

Other Assets

Other assets are recorded at cost or amortized cost and consist primarily of debt issuance costs, certain investments, and other miscellaneous assets. Debt issuance costs are amortized using the effective interest method.

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.

The Company's accounting policy is to recognize transfers between levels of the fair value hierarchy at the end of the reporting period.

Revenue Recognition

Loan interest income - Loan interest is paid by the Department or the borrower, depending on the status of the loan at the time of the accrual. In addition, 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 non-federally insured 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.

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) or the fiscal quarter average rate of daily one-month LIBOR rates (for loans originated on and after January 1, 2000) relative to the yield of the student loan.

The Company recognizes student loan income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts. Loan 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 loan, which includes an estimate of prepayment rates. The Company periodically evaluates the assumptions used to estimate the life of the loans and prepayment rates.
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.
Student loan and guaranty servicing revenue – Student loan and guaranty servicing revenue consists of the following items:

Loan and guaranty servicing fees – Loan servicing fees are determined according to individual agreements with customers and are calculated based on the dollar value of loans, number of loans, or number of borrowers serviced for each customer. Guaranty servicing fees are generally calculated based on the number of loans serviced, volume of loans serviced, or amounts collected. Revenue is recognized over the period in which services are provided to customers, and when ultimate collection is assured.

Guaranty collections revenue – Guaranty collections revenue is earned when collected. Collection costs paid to third parties associated with this revenue is expensed upon successful collection.

Software services revenue – Software services revenue is determined from individual agreements with customers and includes license and maintenance fees associated with student loan software products.  Computer and software consulting and remote hosting revenues are recognized over the period in which services are provided to customers.

Tuition payment processing and campus commerce revenue - Tuition payment processing and campus commerce revenue includes actively managed tuition payment solutions and online payment processing. Fees for these services are recognized over the period in which services are provided to customers. Cash received in advance of the delivery of services is included in deferred revenue.

Enrollment Services Revenue – Enrollment services revenue primarily consists of the following items:

Inquiry Generation and Management (Agency) - This revenue is derived primarily from fees which are earned through the delivery of qualified inquiries or clicks. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is reasonably assured. Delivery is deemed to have occurred at the time a qualified inquiry or click is delivered to the customer, provided that no significant obligations remain. From time to time, the Company may agree to credit certain inquiries or clicks if they fail to meet the contractual or other guidelines of a particular client. The Company has established a sales reserve based on historical experience. To date, such credits have been immaterial and within management’s expectations.

For a portion of this revenue, the Company has agreements with providers of online media or traffic (“inquiry generation vendors”) used in the generation of inquiries or clicks. The Company receives a fee from its customers and pays a fee to the inquiry generation vendors either on a cost per inquiry, cost per click, or cost per number of impressions basis. The Company is the primary obligor in the transaction. As a result, the fees paid by the Company’s customers are recognized as revenue and the fees paid to its inquiry generation vendors are included in “cost to provide enrollment services” in the Company’s consolidated statements of income.

Inquiry Management (Software) - This revenue is determined from individual agreements with customers and includes license and maintenance fees associated with inquiry management software products. Remote hosting revenues are recognized over the period in which services are provided to customers.

Digital Marketing - Revenue from sales of subscriptions for interactive services to connect students to colleges and universities is recognized ratably over the term of the contract as earned. Subscription revenue received or receivable in advance of the delivery of services is included in deferred revenue. Revenue for editing services for admission essays is recognized over the period in which services are provided to customers.

Content Solutions - Several content solutions services are sold based on subscriptions. Revenue from sales of subscription services is recognized ratably over the term of the contract as earned. Subscription revenue received or receivable in advance of the delivery of services is included in deferred revenue. Revenue from the sale of print products is generally earned and recognized, net of estimated returns, upon shipment or delivery. All other revenue is recognized over the period in which services are provided to customers.

Other income - Other income includes realized and unrealized gains and losses on investments and borrower late fee income, which is earned by the education lending subsidiaries and is recognized when payments are collected from the borrower. Other income also includes investment advisory income. The Company provides investment advisory services through an SEC-registered investment advisor subsidiary under various arrangements and earns annual fees on the outstanding balance of investments and certain performance measures, which are recognized monthly as earned.

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

The Company records derivative instruments on the consolidated balance sheets as either an asset or liability measured at its fair value. The Company determines the fair value for its derivative instruments using either (i) pricing models that consider current market conditions and the contractual terms of the derivative instrument or (ii) counterparty valuations. The Company does not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instruments that are recognized at fair value and executed with the same counterparty under a master netting arrangement. The factors that impact the fair value of the Company's derivatives include interest rates, time value, forward interest rate curve, and volatility factors, as well as foreign exchange rates. Pricing models and their underlying assumptions impact the amount and timing of unrealized gains and losses recognized, and the use of different pricing models or assumptions could produce different financial results. 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 fair value of derivative instruments is reported in current period earnings. Changes or shifts in the forward yield curve and fluctuations in currency rates can significantly impact the valuation of the Company’s derivatives, and therefore impact the financial position and results of operations of the Company. Any proceeds received or payments made by the Company to terminate a derivative in advance of its expiration date, or to amend the terms of an existing derivative, are included in the Company's consolidated statements of income and are accounted for as a change in fair value of such derivative. The changes in fair value of derivative instruments, as well as the settlement payments made on such derivatives, are included in “derivative market value and foreign currency adjustments and derivative settlements, net” on the consolidated statements of income.

Foreign Currency

During 2006, the Company issued Euro-denominated bonds, which are included in “bonds and notes payable” on the consolidated balance sheets. Transaction gains and losses resulting from exchange rate changes when re-measuring these bonds to U.S. dollars at the balance sheet date are included in “derivative market value and foreign currency 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.
 
Income tax expense includes deferred tax expense, which represents 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 (including both tax and interest).

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.

Stock Repurchases

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.
Student Loans Receivable and Allowance for Loan Losses
Student Loans Receivable and Allowance for Loan Losses
 Student Loans Receivable and Allowance for Loan Losses

Student loans receivable consisted of the following:
 
As of December 31,
 
2013
 
2012
Federally insured loans
 
 
 
Stafford and other
$
6,686,626

 
7,261,114

Consolidation
19,363,577

 
17,708,732

Total
26,050,203

 
24,969,846

Non-federally insured loans
71,103

 
26,034

 
26,121,306

 
24,995,880

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(158,595
)
 
(113,357
)
Allowance for loan losses – federally insured loans
(43,440
)
 
(40,120
)
Allowance for loan losses – non-federally insured loans
(11,682
)
 
(11,782
)
 
$
25,907,589

 
24,830,621

 
 
 
 


(a) For loans purchased where there is evidence of credit deterioration since the origination of the loan, the Company records a credit discount, separate from the allowance for loan losses, which is non-accretable to interest income. Remaining discounts and premiums for purchased loans are recognized in interest income over the remaining estimated lives of the loans. The Company continues to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine the need for any additional allowance for loan losses. At December 31, 2013 and 2012, "loan discount, net of unamortized loan premiums and deferred origination costs" included $20.2 million and $17.8 million, respectively, of non-accretable discount associated with purchased loans.

Student Loan Residual Interests

On July 8, 2011, the Company purchased the residual interest in $1.9 billion of securitized federally insured consolidation loans. The Company acquired the ownership interest in GCO SLIMS Trust I (the "SLIMS Trust") giving the Company rights to the residual interest in GCO Education Loan Funding Trust-I (the "GCO Trust-I"). The GCO Trust-I includes federally insured consolidation loans funded to term with $1.9 billion of notes payable that carry interest rates on a spread to LIBOR or are set and periodically reset via a "dutch auction."

On July 8, 2011, the SLIMS Trust included $46.2 million of notes payable that carried a fixed interest rate of 5.72%. All excess interest earned from the GCO Trust-I was required to be used to pay the interest and principal on the notes payable in the SLIMS Trust until the SLIMS notes were paid in full. In December 2012, these notes were paid in full.

On October 31, 2013, the Company acquired the ownership interest in GCO Education Loan Funding Trust-II (the "GCO Trust-II") giving the Company rights to the residual interest in $1.6 billion of securitized federally insured consolidation loans. GCO Trust-II includes loans funded to term with $1.6 billion of notes payable that carry interest rates on a spread to LIBOR or are set and periodically reset via a "dutch auction."

The Company has consolidated these trusts on its consolidated balance sheet because management has determined the Company is the primary beneficiary of the trusts. Upon acquisition of GCO Trust-I and GCO Trust-II, the Company recorded all assets and liabilities of the trusts at fair value, resulting in the recognition of a student loan fair value discount of $153.9 million and $52.9 million, respectively, and bonds and notes payable fair value discount of $174.9 million and $91.8 million, respectively. These discounts will be accreted using the effective interest method over the lives of the underlying assets and liabilities. All other assets acquired and liabilities assumed (restricted cash, accrued interest receivable/payable, and other assets/liabilities) were recorded at cost, which approximates fair value.

Activity in the Allowance for Loan Losses

The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below.
 
 
Year ended December 31,
 
2013
 
2012
 
2011
Balance at beginning of period
$
51,902

 
48,482

 
43,626

Provision for loan losses:
 
 
 
 
 
Federally insured loans
20,000

 
22,000

 
20,000

Non-federally insured loans
(1,500
)
 
(500
)
 
1,250

Total provision for loan losses
18,500

 
21,500

 
21,250

Charge-offs:
 

 
 

 
 
Federally insured loans
(15,588
)
 
(21,217
)
 
(17,166
)
Non-federally insured loans
(3,683
)
 
(3,508
)
 
(4,147
)
Total charge-offs
(19,271
)
 
(24,725
)
 
(21,313
)
Recoveries - non-federally insured loans
1,577

 
1,419

 
1,310

Purchase (sale) of federally insured loans, net
(1,093
)
 
2,133

 
1,463

Transfer from repurchase obligation related to non-federally insured loans repurchased, net
3,507

 
3,093

 
2,146

Balance at end of period
$
55,122

 
51,902

 
48,482

 
 
 
 
 
 
Allocation of the allowance for loan losses:
 

 
 

 
 
Federally insured loans
$
43,440

 
40,120

 
37,205

Non-federally insured loans
11,682

 
11,782

 
11,277

Total allowance for loan losses
$
55,122

 
51,902

 
48,482



Repurchase Obligations

As of December 31, 2013, the Company had participated a cumulative amount of $120.9 million (par value) of non-federally insured loans to third parties. Loans participated under these agreements 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. Per the terms of the servicing agreements, the Company’s servicing operations are obligated to repurchase loans subject to the participation interests in the event such loans become 60 or 90 days delinquent.

In addition, on January 13, 2011, the Company sold a portfolio of non-federally insured loans for proceeds of $91.3 million (100% of par value).  The Company retained credit risk related to this portfolio and will pay cash to purchase back any loans which become 60 days delinquent. As of December 31, 2013, the balance of this portfolio was $63.6 million (par value).

The Company’s estimate related to its obligation to repurchase these loans is included in “other liabilities” in the Company’s consolidated balance sheets. The activity related to this accrual is detailed below.
 
Year ended December 31,
 
2013
 
2012
 
2011
Beginning balance
$
16,130

 
19,223

 
12,600

Repurchase obligation transferred to the allowance for loan losses related to loans repurchased, net
(3,507
)
 
(3,093
)
 
(2,146
)
Repurchase obligation associated with loans sold
3,520

 

 
6,269

Current period expense

 

 
2,500

Ending balance
$
16,143

 
16,130

 
19,223


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 percent of non-federally insured loans that were delinquent 31 days or greater as of December 31, 2013, 2012, and 2011 was 12.7 percent, 28.6 percent, and 28.6 percent, respectively. The table below shows the Company’s federally insured student loan delinquency amounts.

Rehabilitation Loans and Delinquent Loans Funded in FFELP Warehouse Facilities

Rehabilitation loans are student 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 student loans, rehabilitation loans have generally experienced re-default rates that are higher than default rates for federally insured student loans that have not previously defaulted.  The Company has purchased a significant amount of rehabilitation loans during 2012 and 2013.  Upon purchase, these loans are recorded at fair value, which generally approximates the federal guarantee rate under the FFEL Program.  As such, there is minimal credit risk related to rehabilitation loans purchased; therefore, these loans are presented separately in the following delinquency tables.

In addition, the Company has purchased delinquent federally insured loans that are funded in the Company's FFELP warehouse facilities. Upon purchase, these loans are recorded at fair value, which generally approximates the federal guarantee rate. As such, there is minimal credit risk related to these loans. Loans delinquent 121 days or greater and funded in the Company's FFELP warehouse facilities are included with rehabilitation loans purchased in the following delinquency tables.
 
As of December 31,
 
2013
 
2012
 
2011
Federally insured loans, excluding rehabilitation loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment (a)
$
2,618,390

 
 
 
$
2,949,320

 
 
 
$
3,623,284

 
 
Loans in forbearance (b)
2,954,495

 
 
 
2,992,023

 
 
 
3,267,771

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
15,251,869

 
86.1
%
 
14,583,044

 
87.6
%
 
14,422,192

 
84.6
%
Loans delinquent 31-60 days (c)
768,600

 
4.3

 
652,351

 
3.9

 
821,166

 
4.8

Loans delinquent 61-90 days (c)
426,089

 
2.5

 
330,885

 
2.0

 
388,542

 
2.3

Loans delinquent 91-120 days (c)
281,991

 
1.6

 
247,381

 
1.5

 
289,173

 
1.7

Loans delinquent 121-270 days (c)
712,204

 
4.0

 
603,942

 
3.6

 
811,914

 
4.8

Loans delinquent 271 days or greater (c)(d)
269,066

 
1.5

 
220,798

 
1.4

 
307,861

 
1.8

Total loans in repayment
17,709,819

 
100.0
%
 
16,638,401

 
100.0
%
 
17,040,848

 
100.0
%
Total federally insured loans, excluding rehabilitation loans
$
23,282,704

 
 

 
$
22,579,744

 
 

 
$
23,931,903

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rehabilitation loans:
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment (a)
$
254,115

 
 
 
$
150,317

 
 
 
$
41,615

 
 
Loans in forbearance (b)
415,530

 
 
 
330,278

 
 
 
62,681

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
1,086,053

 
51.8
%
 
670,205

 
35.1
%
 
178,180

 
60.0
%
Loans delinquent 31-60 days (c)
198,718

 
9.5

 
113,795

 
6.0

 
23,038

 
7.7

Loans delinquent 61-90 days (c)
124,244

 
5.9

 
79,691

 
4.2

 
18,552

 
6.3

Loans delinquent 91-120 days (c)
108,800

 
5.2

 
186,278

 
9.8

 
18,607

 
6.3

Loans delinquent 121-270 days (c)
405,732

 
19.3

 
633,001

 
33.1

 
43,743

 
14.8

Loans delinquent 271 days or greater (c)(d)
174,307

 
8.3

 
226,537

 
11.8

 
14,390

 
4.9

Total loans in repayment
2,097,854

 
100.0
%
 
1,909,507

 
100.0
%
 
296,510

 
100.0
%
Total rehabilitation loans
2,767,499

 
 

 
2,390,102

 
 

 
400,806

 
 
Total federally insured loans
$
26,050,203

 
 
 
$
24,969,846

 
 
 
$
24,332,709

 
 
 
(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.
Bonds and Notes Payable
Bonds and Notes Payable
4.     Bonds and Notes Payable

The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
 
As of December 31, 2013
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
23,479,893

 
0.25% - 6.90%
 
5/25/18 - 8/26/52
Bonds and notes based on auction or remarketing
1,134,250

 
0.07% - 2.17%
 
5/1/28 - 11/26/46
Total variable-rate bonds and notes
24,614,143

 
 
 
 
FFELP warehouse facilities
1,396,344

 
0.17% - 0.25%
 
1/17/16 - 6/12/16
Unsecured line of credit
45,000

 
1.67%
 
3/28/18
Unsecured debt - Junior Subordinated Hybrid Securities
96,457

 
3.62%
 
9/15/61
Other borrowings
61,401

 
1.67% - 5.10%
 
4/11/14 - 11/11/15
 
26,213,345

 
 
 
 
Discount on bonds and notes payable
(258,056
)
 
 
 
 
Total
$
25,955,289

 
 
 
 
 
 
As of December 31, 2012
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
21,185,140

 
0.32% - 6.90%
 
11/25/15 - 8/26/52
Bonds and notes based on auction or remarketing
969,925

 
0.15% - 2.14%
 
5/1/28 - 5/25/42
Total variable-rate bonds and notes
22,155,065

 
 
 
 
FFELP warehouse facilities
1,554,151

 
0.21% - 0.29%
 
1/31/15 - 6/30/15
Department of Education Conduit
1,344,513

 
0.82%
 
1/19/14
Unsecured line of credit
55,000

 
1.71%
 
2/17/16
Unsecured debt - Junior Subordinated Hybrid Securities
99,232

 
3.68%
 
9/15/61
Other borrowings
62,904

 
1.50% - 5.10%
 
11/14/13 - 11/11/15
 
25,270,865

 
 
 
 
Discount on bonds and notes payable
(172,030
)
 
 
 
 
Total
$
25,098,835

 
 
 
 


Secured Financing Transactions

The Company has historically relied upon secured financing vehicles as its most significant source of funding for student loans. The net cash flow the Company receives from the securitized student loans generally represents the excess amounts, if any, generated by the underlying student 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 student loans are subordinate to bondholder interests, and the securitized student 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, asset-backed securitizations, and the government’s Conduit Program (as described below).


The majority of the bonds and notes payable are primarily secured by the student loans receivable, related accrued interest, and by the amounts on deposit in the accounts established under the respective bond resolutions or financing agreements. Certain variable rate bonds and notes are secured by a letter of credit and reimbursement agreement issued by a third-party liquidity provider.

FFELP warehouse facilities

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

As of December 31, 2013, the Company had three FFELP warehouse facilities as summarized below.
 
 
NHELP-III
 
NHELP-II
 
NFSLW-I
 
Total
Maximum financing amount
 
$
750,000

 
500,000

 
500,000

 
1,750,000

Amount outstanding
 
577,918

 
339,359

 
479,067

 
1,396,344

Amount available
 
172,082

 
160,641

 
20,933

 
353,656

Expiration of liquidity provisions
 
January 16, 2014

(a)
February 28, 2014

(b)
June 12, 2014

 
 
Final maturity date
 
January 17, 2016

 
February 28, 2016

(b)
June 12, 2016

 
 
Maximum advance rates
 
92.2 - 95.0%

 
84.5 - 94.5%

 
92.0 - 98.0%

 
 
Minimum advance rates
 
92.2 - 95.0%

 
84.5 - 94.5%

 
84.0 - 90.0%

 
 
Advanced as equity support
 
$
34,762

 
31,676

 
22,073

 
88,511

(a) On January 13, 2014, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to February 5, 2015.
(b) On February 27, 2014, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to September 30, 2014, and to change the maturity date to September 30, 2016.
Each FFELP warehouse facility is supported by 364-day liquidity provisions, which are subject to the respective expiration date shown in the previous 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 provides for formula-based advance rates, depending on FFELP loan type, up to a maximum of the principal and interest of loans financed as shown in the table above. The advance rates for collateral may increase or decrease based on market conditions, but they are subject to minimums as disclosed above. The NHELP-III and NHELP-II warehouse facilities have static advance rates that require initial equity for loan funding, but do 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 securities transactions issued in 2013 and 2012.
 
 
Securitizations issued during the year ended December 31, 2013
 
 
2013-1
 
2013-2 (a)
 
2013-3
 
2013-4
 
2013-5 (a)
 
 
 
Total
Date securities issued
 
1/31/13

 
2/28/13

 
4/30/13

 
6/21/13

 
9/30/13

 
 
 
 
Total original principal amount
 
$
437,500

 
1,122,000

 
765,000

 
453,000

 
399,000

 
 
 
$
3,176,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class A senior notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
428,000

 
1,122,000

 
745,000

 
440,000

 
399,000

 
 
 
3,134,000

Bond discount
 

 
(3,325
)
 

 
(1,690
)
 
(4,881
)
 
 
 
(9,896
)
Issue price
 
$
428,000

 
1,118,675

 
745,000

 
438,310

 
394,119

 
 
 
3,124,104

Cost of funds (1-month LIBOR plus:)
 
0.60
%
 
0.50
%
 
0.50
%
 
0.50
%
 
0.63
%
 
 
 
 
Final maturity date
 
6/25/41

 
7/25/40

 
2/25/37

 
12/26/42

 
1/25/37

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class B subordinated notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
9,500

 
 
 
20,000

 
13,000

 
 
 
 
 
42,500

Bond discount
 
(1,525
)
 
 
 
(1,762
)
 
(1,804
)
 
 
 
 
 
(5,091
)
Issue price
 
$
7,975

 
 
 
18,238

 
11,196

 
 
 
 
 
37,409

Cost of funds (1-month LIBOR plus:)
 
1.50
%
 
 
 
1.50
%
 
1.50
%
 
 
 
 
 
 
Final maturity date
 
3/25/48

 
 
 
7/25/47

 
1/25/47

 
 
 
 
 
 

 
 
Securitizations issued during the year ended December 31, 2012
 
 
 
 
2012-1 (a)
 
2012-2 (a)
 
2012-3 (a)
 
2012-4
 
2012-5
 
2012-6
 
Total
Date securities issued
 
5/9/12

 
6/11/12

 
7/31/12

 
10/11/12

 
11/8/12

 
12/12/12

 


Total original principal amount
 
$
336,300


323,000


414,300


937,500

 
1,174,000

 
1,012,000

 
$
4,197,100

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Class A senior notes:
 
 
 
 
 
 
 
 
 
 
 
 
 

Total original principal amount
 
$
336,300

 
323,000

 
414,300

 
920,000

 
1,144,000

 
987,000

 
4,124,600

Bond discount
 

 
(3,609
)
 
(1,275
)
 

 
(7,642
)
 
(3,399
)
 
(15,925
)
Issue price
 
$
336,300

 
319,391

 
413,025

 
920,000

 
1,136,358

 
983,601

 
4,108,675

Cost of funds (1-month LIBOR plus:)
 
0.80
%
 
0.80
%
 
0.70
%
 
0.70
%
 
0.60
%
 
0.60
%
 


Final maturity date
 
12/27/39

 
12/26/33

 
3/26/40

 
9/27/38

 
10/27/36

 
3/27/45

 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class B subordinated notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
 
 
 
 
 
 
$
17,500

 
30,000

 
25,000

 
72,500

Bond discount
 
 
 
 
 
 
 
(4,900
)
 
(10,011
)
 
(6,937
)
 
(21,848
)
Issue price
 
 
 
 
 
 
 
$
12,600

 
19,989

 
18,063

 
50,652

Cost of funds (1-month LIBOR plus:)
 
 
 
 
 
 
 
1.00
%
 
1.00
%
 
1.50
%
 


Final maturity date
 
 
 
 
 
 
 
7/26/49

 
12/28/43

 
8/26/52

 



(a)
Total original principal amount excludes the Class B subordinated tranches for the 2012-1, 2012-2, 2012-3, 2013-2, and 2013-5 transactions totaling $7.6 million, $10.0 million, $10.0 million, $34.0 million, and $9.0 million, respectively, that were retained at issuance. As of December 31, 2013, the Company has a total of $85.5 million (par value) of its own Class B subordinated notes remaining from prior completed asset-backed securitizations that are not included in the Company's consolidated balance sheet. If the Company sells 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.

Auction Rate Securities

The interest rates on certain of the Company's asset-backed securities are set and periodically reset via a "dutch auction" ("Auction Rate Securities") or through a remarketing utilizing remarketing agents ("Variable Rate Demand Notes"). As of December 31, 2013, the Company is currently sponsor on $915.1 million of Auction Rate Securities and $219.2 million of Variable Rate Demand Notes.

Since February 2008, problems in the auction rate securities market as a whole has led to failures of the auctions pursuant to which the Company's Auction Rate Securities' interest rates are set. As a result, 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 indenture. Based on the relative levels of these indices as of December 31, 2013, the rates expected to be paid by the Company range from 91-day T-Bill plus 125 basis points, on the low end, to LIBOR plus 250 basis points, on the high end. These maximum rates are subject to increase if the credit ratings on the bonds are downgraded.

For Variable Rate Demand Notes, the remarketing agents set the price, which is then offered to investors. If there are insufficient potential bid orders to purchase all of the notes offered for sale, the Variable Rate Demand Notes pay interest to the holder at a maximum rate as defined by the indenture. The maximum rate for Variable Rate Demand Notes is based on a spread to certain indices as defined in the underlying documents, with the highest to the Company being Prime plus 200 basis points.

Department of Education’s Conduit Program

In May 2009, the Department implemented a program under which it financed eligible FFELP loans in a conduit vehicle established to provide funding for student lenders (the "Conduit Program").  As of December 31, 2012, the Company had $1.3 billion borrowed under the facility. On February 28, 2013, all student loans funded in the Conduit Program were refinanced in the 2013-2 asset-backed securitization and the Company's FFELP warehouse facilities. After these transactions, no loans remained financed by the Company in the Conduit Program and the facility was paid down in full. Per the terms of the agreement, no additional loans can be financed in this facility and the facility expired for future use by the Company.

Unsecured Line of Credit

On February 17, 2012, the Company entered into a $250.0 million unsecured line of credit. On March 28, 2013, the facility was amended to increase the line of credit to $275.0 million and extend the maturity date from February 17, 2016 to March 28, 2018. As of December 31, 2013, the unsecured line of credit had $45.0 million outstanding and $230.0 million was available for future use.

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 maintaining:

A minimum consolidated net worth
A minimum adjusted EBITDA to corporate debt interest (over the last four rolling quarters)
A limitation on recourse indebtedness
A limitation on the percentage of non-federally insured loans in the Company’s portfolio

As of December 31, 2013, 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 FFELP 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 (as well as the amounts the Company borrows) have modest implications on the pricing level at which the Company obtains funding.

A default on the Company’s FFELP warehouse 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

On September 27, 2006, the Company issued $200.0 million aggregate principal amount of Junior Subordinated Hybrid Securities ("Hybrid Securities"). The Hybrid Securities are unsecured obligations of the Company. The interest rate on the Hybrid Securities through September 29, 2036 ("the scheduled maturity date") is equal to three-month LIBOR plus 3.375%, payable quarterly, which was 3.62% at December 31, 2013. The principal amount of the Hybrid Securities will become due on the scheduled maturity date only to the extent that prior to such date the Company has received proceeds from the sale of certain qualifying capital securities (as defined in the Hybrid Securities' indenture). If any amount is not paid on the scheduled maturity date, it will remain outstanding and bear interest at a floating rate as defined in the indenture, payable monthly. On September 15, 2061, the Company must pay any remaining principal and interest on the Hybrid Securities in full whether or not the Company has sold qualifying capital securities. At the Company's option, the Hybrid Securities are redeemable in whole or in part at their principal amount plus accrued and unpaid interest, provided in the case of a redemption in part that the principal amount outstanding after such redemption is at least $50.0 million. As of December 31, 2013, the outstanding balance on the Hybrid Securities was $96.5 million.

Other Borrowings

On April 12, 2012, the Company entered into a $50.0 million line of credit, which is collateralized by asset-backed security investments. The line of credit has a maturity date of April 11, 2014 and has covenants and cross default provisions similar to those under the Company's unsecured line of credit. As of December 31, 2013, $50.0 million was outstanding on this line of credit.

On October 13, 2006, the Company purchased a building in which its corporate headquarters is located. In connection with the acquisition of the building, the Company assumed the outstanding note on the property. As of December 31, 2013 and 2012, the outstanding balance on the note was $4.5 million and $4.6 million, respectively.

As of December 31, 2013 and 2012, bonds and notes payable includes $6.9 million and $8.3 million, respectively, of notes due to a third-party. The Company used the proceeds from these notes to invest in non-federally insured student loan assets via a participation agreement.

One of the Company's education lending subsidiaries has irrevocably escrowed funds to make the remaining principal and interest payments on previously issued bonds and notes. Accordingly, neither these obligations nor the escrowed funds are included on the accompanying consolidated balance sheets. As of December 31, 2013 and 2012, the accreted defeased debt that remained outstanding was $45.9 million and $42.7 million, respectively.

Debt Covenants

Certain bond resolutions 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, 2013.

Maturity Schedule

Bonds and notes outstanding as of December 31, 2013 are due in varying amounts as shown below.
2014
 
$
56,900

2015
 
4,501

2016
 
1,396,344

2017
 

2018
 
447,245

2019 and thereafter
 
24,308,355

 
 
$
26,213,345


Generally, the Company's secured financing instruments bearing interest at variable rates 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 education lending subsidiaries.
Gain on Sale of Loans and Debt Repurchases
Additional Financial Information Disclosure [Text Block]
Gain on Sale of Loans and Debt Repurchases

“Gain on sale of loans and debt repurchases” in the accompanying consolidated statements of income is composed of the following items:
 
Year ended December 31,
 
2013
 
2012
 
2011
Gain on sale of loans
$
33

 
116

 
1,378

Gain from debt repurchases (a)
11,666

 
4,023

 
6,962

 
$
11,699

 
4,139

 
8,340


(a)
The activity included in "Gain from debt repurchases" is detailed below:
 
Year ended December 31, 2013
 
Year ended December 31, 2012
 
Year ended December 31, 2011
 
Par value
 
Purchase
price
 
Gain
 
Par value
 
Purchase
price
 
Gain
 
Par value
 
Purchase
price
 
Gain
Hybrid Securities
$
2,775

 
2,080

 
695

 
1,465

 
1,140

 
325

 
62,558

 
55,651

 
6,907

Asset-backed securities
87,696

 
76,725

 
10,971

 
134,667

 
130,969

 
3,698

 
12,254

 
12,199

 
55

 
$
90,471

 
78,805

 
11,666

 
136,132

 
132,109

 
4,023

 
74,812

 
67,850

 
6,962

Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments

The Company uses derivative financial instruments primarily to manage interest rate risk and foreign currency exchange risk.

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 has adopted a policy of periodically reviewing 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 currently include basis swaps and interest rate swaps.

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 the majority of its assets with three-month LIBOR indexed floating rate securities.  The different interest rate characteristics of the Company's loan assets and liabilities funding these assets results in basis risk.

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, 2013, the Company had $25.0 billion and $1.0 billion of FFELP loans indexed to the one-month LIBOR rate and the three-month treasury bill rate, respectively, the indices for which reset daily, and $16.3 billion of debt indexed to three-month LIBOR, the indices for which reset quarterly, and $7.8 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,
 
 
 
 
2013
 
2012
 
 
Maturity
 
Notional amount
 
Notional amount
 
 
2021
 
 
$
250,000

 
250,000

 
 
2022
 
 
1,900,000

 
1,900,000

 
 
2023
 
 
3,650,000

 
3,150,000

 
 
2024
 
 
250,000

 
250,000

 
 
2026
 
 
800,000

 
800,000

 
 
2028
 
 
100,000

 
100,000

 
 
2036
 
 
700,000

 
700,000

 
 
2039
(a)
 
150,000

 
150,000

 
 
2040
(b)
 
200,000

 
200,000

 
 
 
 
 
$
8,000,000

(c)
7,500,000

(c)
(a)This derivative has a forward effective start date in 2015.
(b)This derivative has a forward effective start date in 2020.
(c)
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2013 and 2012, was one-month LIBOR plus 3.5 basis points and one-month LIBOR plus 3.3 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, 2013 and December 31, 2012, the Company had $11.1 billion and $11.3 billion, respectively, of 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 1.83% and 1.82%, respectively.

The following tables summarize the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
 
 
 
As of December 31, 2013
 
As of December 31, 2012
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
 
 
2013
 
$

 
%
 
$
3,150,000

 
0.71
%
 
2014
 
1,750,000

 
0.71

 
1,750,000

 
0.71

 
2015
 
1,100,000

 
0.89

 
1,100,000

 
0.89

 
2016
 
750,000

 
0.85

 
750,000

 
0.85

 
2017
 
1,250,000

 
0.86

 
750,000

 
0.99

 
 
 
$
4,850,000

 
0.81
%
 
$
7,500,000

 
0.78
%
 
(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.

Interest rate swaps – unsecured debt hedges

As of December 31, 2013 and December 31, 2012, the Company had $96.5 million and $99.2 million, respectively, of unsecured Hybrid Securities outstanding. The interest rate on the Hybrid Securities through September 29, 2036 is equal to three-month LIBOR plus 3.375%, payable quarterly. The Company had the following derivatives outstanding that are used to effectively convert the variable interest rate on the Hybrid Securities to a fixed rate of 7.66%.
 
 
 
As of December 31, 2013
 
As of December 31, 2012
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
25,000

 
4.28%
 
$
75,000

 
4.28
%
(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.

Foreign Currency Exchange Risk

In 2006, the Company issued €420.5 million and €352.7 million of student loan asset-backed Euro Notes (the "2006-1 Notes" and "2006-2 Notes", respectively) with interest rates based on a spread to the EURIBOR index. On November 25, 2013, the Company remarketed the 2006-1 Notes, which changed the notional amount outstanding on the 2006-1 Notes to $500.0 million U.S. dollars with an interest rate based on the 3-month LIBOR index. As a result of the 2006-2 Notes, the Company is exposed to market risk related to fluctuations in foreign currency exchange rates between the U.S. dollar and Euro. The principal and accrued interest on these notes are re-measured at each reporting period and recorded in the Company’s consolidated balance sheet in U.S. dollars based on the foreign currency exchange rate on that date. Changes in the principal and accrued interest amounts as a result of foreign currency exchange rate fluctuations are included in the Company’s consolidated statements of income.

The Company entered into cross-currency interest rate swaps in connection with the issuance of the Euro Notes. On November 26, 2013, the Company terminated its cross-currency interest rate swap associated with the 2006-1 Notes when such Notes were remarketed. Under the terms of the cross-currency interest rate swap associated with the 2006-2 Notes, the Company receives from the counterparty a spread to the EURIBOR index based on a notional amount of €352.7 million and pays a spread to the LIBOR index based on a notional amount of $450.0 million. In addition, under the terms of this agreement, all principal payments on the Euro Notes will effectively be paid at the exchange rate in effect between the U.S. dollar and Euro as of the issuance of the notes.

The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instruments.
 
Year ended December 31,
 
2013
 
2012
 
2011
Re-measurement of Euro Notes
$
(35,285
)
 
(19,561
)
 
32,706

Change in fair value of cross currency interest rate swaps
26,354

 
2,210

 
(14,287
)
Total impact to consolidated statements of income - income (expense) (a)
$
(8,931
)
 
(17,351
)
 
18,419


(a)
The financial statement impact of the above items is included in "Derivative market value and foreign currency adjustments and derivative settlements, net" in the Company's consolidated statements of income.

Consolidated Financial Statement Impact Related to Derivatives
 
The following table summarizes the fair value of the Company’s derivatives as reflected on the consolidated balance sheet.
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of
 
As of
 
As of
 
As of
 
December 31, 2013
 
December 31, 2012
 
December 31, 2013
 
December 31, 2012
1:3 basis swaps
$
18,490

 
12,239

 

 
1,215

Interest rate swaps - floor income hedges
7,183

 

 
15,849

 
45,913

Interest rate swaps - hybrid debt hedges

 

 
2,119

 
23,762

Cross-currency interest rate swaps
36,834

 
82,841

 

 

Other

 
2,361

 

 

Total
$
62,507

 
97,441

 
17,968

 
70,890

During the years ended December 31, 2013 and 2012, the Company terminated certain derivatives for net proceeds of $65.9 million and net payments of $6.0 million, respectively.

Offsetting of Derivative Assets/Liabilities

The Company records derivative instruments in the consolidated balance sheets on a gross basis as either an asset or liability measured at its fair value. Certain of the Company's derivative instruments are subject to right of offset provisions with counterparties. The following tables include the gross amounts related to the Company's derivative portfolio recognized in the consolidated balance sheets, reconciled to the net amount when excluding derivatives subject to enforceable master netting arrangements and cash collateral received/pledged:

 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative assets
 
Gross amounts of recognized assets presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral received (a)
 
Net asset (liability)
Balance as of December 31, 2013
 
$
62,507

 
(15,437
)
 
(15,959
)
 
31,111

Balance as of December 31, 2012
 
97,441

 
(13,234
)
 
(19,993
)
 
64,214


 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative liabilities
 
Gross amounts of recognized liabilities presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral pledged (b)
 
Net asset (liability)
Balance as of December 31, 2013
 
$
(17,969
)
 
15,437

 
3,630

 
1,098

Balance as of December 31, 2012
 
(70,890
)
 
13,234

 
63,128

 
5,472


(a)
As of December 31, 2013 and December 31, 2012, the trustee for certain of the Company's asset-backed securitization transactions held $16.0 million and $20.0 million, respectively, of collateral from the counterparty on the cross-currency interest rate swaps.

(b)
As of December 31, 2013 and December 31, 2012, the Company had $3.6 million and $63.1 million, respectively, posted as collateral to derivative counterparties, which is included in “restricted cash and investments” in the Company's consolidated balance sheet.

The following table summarizes the effect of derivative instruments in the consolidated statements of income.
 
 
Year ended December 31,
 
 
2013
 
2012
 
2011
Settlements:
 
 

 
 

 
 
1:3 basis swaps
 
$
3,301

 
4,495

 
1,446

Interest rate swaps - floor income hedges
 
(31,022
)
 
(19,270
)
 
(20,246
)
Interest rate swaps - hybrid debt hedges
 
(1,670
)
 
(2,231
)
 
(744
)
Cross-currency interest rate swaps
 
(245
)
 
3,228

 
11,877

Other
 

 
(244
)
 
(173
)
Total settlements - (expense) income
 
(29,636
)
 
(14,022
)
 
(7,840
)
Change in fair value:
 
 

 
 

 
 

1:3 basis swaps
 
7,467

 
676

 
1,114

Interest rate swaps - floor income hedges
 
36,719

 
(35,215
)
 
(12,169
)
Interest rate swaps - hybrid debt hedges
 
12,997

 
1,717

 
(25,475
)
Cross-currency interest rate swaps
 
26,354

 
2,210

 
(14,287
)
Other
 
341

 
2,779

 
304

Total change in fair value - income (expense)
 
83,878

 
(27,833
)
 
(50,513
)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
 
(35,285
)
 
(19,561
)
 
32,706

Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense)
 
$
18,957

 
(61,416
)
 
(25,647
)


Derivative Instruments - Credit and Market Risk

By using derivative instruments, the Company is exposed to credit and market risk. The Company manages credit and market risks associated with interest rates by establishing and monitoring limits as to the types and degree of risk that may be undertaken and by entering into transactions with high-quality counterparties that are reviewed periodically by the Company's risk committee. As of December 31, 2013, all of the Company's derivative counterparties had investment grade credit ratings. The Company also has a policy of requiring that all derivative contracts be governed by an International Swaps and Derivatives Association, Inc. Master Agreement.

Credit Risk

When the fair value of a derivative contract is positive (an asset in the Company's consolidated balance sheet), this generally indicates that the counterparty would owe the Company if the derivative was settled. If the counterparty fails to perform, credit risk with such counterparty is equal to the extent of the fair value gain in the derivative less any collateral held by the Company. If the Company was unable to collect from a counterparty, it would have a loss equal to the amount the derivative is recorded in the consolidated balance sheet.

The Company considers counterparties' credit risk when determining the fair value of derivative positions on its exposure net of collateral. However, the Company does not use the collateral to offset fair value amounts recognized in the financial statements for derivative instruments.

Market Risk

When the fair value of a derivative instrument is negative (a liability in the Company's consolidated balance sheet), the Company would owe the counterparty if the derivative was settled and, therefore, has no immediate credit risk.  If the negative fair value of derivatives with a counterparty exceeds a specified threshold, the Company may have to make a collateral deposit with the counterparty. The threshold at which the Company may be required to post collateral is dependent upon the Company's unsecured credit rating.  The Company believes any downgrades from its current unsecured credit rating (Standard & Poor's: BBB- (stable outlook) and Moody's: Ba1 (stable outlook)), would not result in additional collateral requirements of a material nature. In addition, no counterparty has the right to terminate its contracts in the event of downgrades from the current rating. However, some derivative contracts have mutual optional termination provisions that can be exercised during the years 2014 through 2023. As of December 31, 2013, the fair value of derivatives with early termination provisions was a positive $10.1 million (an asset in the Company's consolidated balance sheet).

Interest rate movements have an impact on the amount of collateral the Company is required to deposit with its derivative instrument counterparties. With the Company's current derivative portfolio, the Company does not currently anticipate near term 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 potential collateral deposits with its counterparties. 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. 

The Company's cross-currency interest rate swap was entered into as a result of an asset-backed security financing and was entered into at the securitization trust level with the counterparty. Trust related derivatives do not contain credit contingent features related to the Company or the trust's credit ratings. As such, there are no collateral requirements and as a result the impact of changes to foreign currency rates has no impact on the amount of collateral the Company would be required to deposit with the counterparty on this derivative.
Investments
Investments
Investments

A summary of the Company's investments and restricted investments follows:
 
As of December 31, 2013
 
As of December 31, 2012
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses (a)
 
Fair value
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investments :
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities (b)
$
171,931

 
7,111

 
(1,241
)
 
177,801

 
64,970

 
3,187

 
(179
)
 
67,978

Equity securities
1,502

 
1,783

 
(3
)
 
3,282

 
3,449

 
1,604

 
(180
)
 
4,873

Total available-for-sale investments
$
173,433

 
8,894

 
(1,244
)
 
181,083

 
68,419

 
4,791

 
(359
)
 
72,851

Trading investments :
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities
 
 
 
 
 
 
10,957

 
 
 
 
 
 
 
10,461

Total available-for-sale and trading investments
 
 
 
 
 
 
$
192,040

 
 
 
 
 
 
 
83,312

Restricted Investments (c):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts - held-to-maturity
 
 
 
 
 
 
$
7,285

 
 
 
 
 
 
 
8,830


(a)
As of December 31, 2013, the Company considered the decline in market value of its available-for-sale investments to be temporary in nature and did not consider any of its investments other-than-temporarily impaired.

(b)
As of December 31, 2013, the stated maturities of the Company's student loan asset-backed securities and other debt securities classified as available-for-sale are shown in the following table:
Year of Maturity:
Amortized cost
 
Fair value
Within 1 year
$

 

1-5 years
418

 
418

6-10 years
57

 
57

After 10 years
171,456

 
177,326

Total
$
171,931

 
177,801



(c)
Restricted investments are included in "restricted cash and investments" in the Company's consolidated balance sheets. The Company's restricted investments include cash balances that the Company's indentured securitization trusts deposit in guaranteed investment contracts that are held for the related note holders. These investments are classified as held-to-maturity and the Company accounts for them at amortized cost, which approximates fair value.
    
As of December 31, 2013, the stated maturities of the Company's restricted investments, which are classified as held-to-maturity, are shown in the following table.
Year of Maturity:
 
Within 1 year
$

1-5 years
5,084

6-10 years

After 10 years
2,201

Total
$
7,285


T
The following table summarizes the amount included in "other income" in the consolidated statements of income related to the Company's investments classified as available-for-sale and trading.
 
 
Year ended December 31,
 
 
2013
 
2012
 
2011
Available-for-sale securities:
 
 
 
 
 
 
Gross realized gains
 
$
6,270

 
6,120

 

Gross realized losses
 
(332
)
 
(322
)
 

Trading securities:
 
 
 
 
 
 
Unrealized gains (losses), net
 
221

 
254

 
430

Realized gains (losses), net
 
5

 
1,459

 
2,753

 
 
$
6,164

 
7,511

 
3,183


The amounts reclassified from accumulated other comprehensive income related to the realized gains and losses on available-for-sale-securities is summarized below.
 
 
Year ended December 31,
Affected line item in the consolidated statements of income - income (expense):
 
2013
 
2012
 
2011
Other income
 
$
5,938

 
5,798

 

Income tax expense
 
(2,197
)
 
(2,145
)
 

Net income
 
$
3,741

 
3,653

 

Goodwill
Goodwill and Intangible Assets Disclosure [Text Block]
Intangible Assets and Goodwill

As of December 31, 2013 and December 31, 2012, intangible assets were $6.1 million and $9.4 million, respectively, and consisted of customer relationships. The Company recorded amortization expense on its intangible assets of $3.3 million, $19.0 million, and $17.1 million for the years ended December 31, 2013, 2012, and 2011, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of December 31, 2013, the Company estimates it will record amortization expense of $3.1 million (2014) and $3.0 million (2015).

Goodwill by operating segment consists of the following:
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment Services
 
Asset Generation and Management (a)
 
Total
Balance as of December 31, 2011, 2012, and 2013
$
8,596

 
58,086

 
8,553

 
41,883

 
117,118


(a)
As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans and net interest income of 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. Other than the Asset Generation and Management reporting unit, 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.

The Company reviews goodwill for impairment annually. This annual review is completed by the Company as of November 30 of each year and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable.
For the 2011, 2012, and 2013 annual review 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 the two-step impairment test and concluded there was no impairment of goodwill.
Property and Equipment
Property, Plant and Equipment Disclosure [Text Block]
Property and Equipment

Property and equipment consisted of the following:
 
 
 
As of December 31,
 
Useful life
 
2013
 
2012
Computer equipment and software
1-5 years
 
$
77,733

 
72,595

Office furniture and equipment
3-7 years
 
9,843

 
9,583

Leasehold improvements
1-15 years
 
3,618

 
6,502

Transportation equipment
10 years
 
7,398

 
3,610

Building and building improvements
5-39 years
 
10,366

 
9,711

Land
 
700

 
700

 
 
 
109,658

 
102,701

Accumulated depreciation
 
 
75,829

 
70,832

 
 
 
$
33,829

 
31,869



Depreciation expense for the years ended December 31, 2013, 2012, and 2011 related to property and equipment was $15.1 million, $12.9 million, and $9.9 million, respectively.
Shareholders' Equity
Stockholders' Equity Note Disclosure [Text Block]
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. 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 24, 2015 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, 2013, 3.9 million shares may still be purchased under the Company's stock repurchase program. Shares repurchased by the Company during 2013, 2012, and 2011 are shown in the table below.
 
 
Total shares repurchased
 
Purchase price (in thousands)
 
Average price of shares repurchased (per share)
Year ended December 31, 2013
 
393,259

 
$
13,136

 
$
33.40

Year ended December 31, 2012
 
806,023

 
22,814

 
28.30

Year ended December 31, 2011
 
1,436,423

 
27,134

 
18.89



Contingent Consideration - infiNET Integrated Solutions, Inc. (“infiNET”)

In 2004, the Company purchased 50% of the stock of infiNET and, in 2006, purchased the remaining 50% of infiNET’s stock. infiNET provides software for customer-focused electronic transactions, information sharing, and electronic account and bill presentment for colleges and universities. Consideration for the purchase of the remaining 50% of the stock of infiNET included 95,380 restricted shares of the Company’s Class A common stock that were subject to stock price guaranty provisions. On February 28, 2011, the Company paid $5.9 million in cash to satisfy this obligation. This payment was recorded by the Company as a reduction to additional paid-in capital.
Earnings per Common Share
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,
 
2013
 
2012
 
2011
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
300,043

 
2,629

 
302,672

 
176,647

 
1,350

 
177,997

 
203,077

 
1,258

 
204,335

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,165,785

 
404,529

 
46,570,314

 
47,010,034

 
359,297

 
47,369,331

 
47,860,824

 
296,579

 
48,157,403

Earnings per share - basic and diluted
$
6.50

 
6.50

 
6.50

 
3.76

 
3.76

 
3.76

 
4.24

 
4.24

 
4.24



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, 2013, a cumulative amount of 127,442 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.
Income Taxes
Income Tax Disclosure
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, 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, 2013, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $19.1 million which is included in “other liabilities” on the consolidated balance sheet. Of this total, $12.4 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 $2.2 million prior to December 31, 2014 as a result of a lapse of applicable statute 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 $2.2 million anticipated decrease, $1.4 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,
 
2013
 
2012
Gross balance - beginning of year
$
29,568

 
21,794

Additions based on tax positions of prior years
996

 
9,493

Additions based on tax positions related to the current year
3,812

 
4,367

Settlements with taxing authorities
(7,470
)
 

Reductions for tax positions of prior years
(6,470
)
 
(5,738
)
Reductions based on tax positions related to the current year
(272
)
 

Reductions due to lapse of applicable statute of limitations
(1,023
)
 
(348
)
Gross balance - end of year
$
19,141

 
29,568


All of the reductions due to the lapse of statute of limitations and for prior year tax positions shown above impacted the effective tax rate with the exception of certain temporary federal items.

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, 2013 and 2012, $2.1 million and $5.1 million in accrued interest and penalties, respectively, were included in “other liabilities” on the consolidated balance sheets. The Company recognized a decrease to interest expense related to uncertain tax positions of $1.3 million for the year ended December 31, 2013, and interest expense of $2.7 million and $0.7 million for the years ended December 31, 2012 and 2011 respectively. The Company reversed accrued penalties related to uncertain tax positions of $0.3 million in 2013 as a result of exam closures and statutes of limitation lapses. No penalties were accrued for the years ended December 31, 2012 and 2011. 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 2009. The Company is no longer subject to U.S. state/local income tax examinations by tax authorities prior to 2007. As of December 31, 2013, the Company has significant tax uncertainties that remain unsettled in the following jurisdictions:

Maine            2008 through 2010
New York        2008 through 2011
Texas            2007 through 2009

The provision for income taxes consists of the following components:
 
Year ended December 31,
 
2013
 
2012
 
2011
Current:
 
 
 
 
 
Federal
$
153,756

 
118,490

 
123,737

State
4,776

 
1,383

 
1,354

Foreign
122

 
33

 
87

Total current provision
158,654

 
119,906

 
125,178

 
 
 
 
 
 
Deferred:
 
 
 
 
 
Federal
1,676

 
(23,460
)
 
(6,606
)
State
868

 
(358
)
 
(1,116
)
Foreign
(5
)
 
(11
)
 
(4
)
Total deferred provision (benefit)
2,539

 
(23,829
)
 
(7,726
)
Provision for income tax expense
$
161,193

 
96,077

 
117,452



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,
 
2013
 
2012
 
2011
Tax expense at federal rate
35.0
  %
 
35.0
  %
 
35.0
  %
Increase (decrease) resulting from:
 
 
 
 
 
State tax, net of federal income tax benefit
0.8

 
0.5

 
0.9

Provision of uncertain federal and state tax matters
(0.6)

 
0.2

 
1.1

Tax credits
(0.4)

 
(0.6)

 
(0.4)

Valuation allowance

 

 
(0.3)

Other

 
(0.1)

 
0.2

Effective tax rate
34.8
  %
 
35.0
  %
 
36.5
  %


The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following:
 
As of As of December 31,
 
2013
 
2012
Deferred tax assets:
 
 
 
Student loans
$
25,967

 
26,612

Intangible assets
23,675

 
29,812

Securitizations
10,407

 

Accrued expenses
4,162

 
3,739

Stock compensation
1,608

 
1,317

Deferred revenue
777

 
987

Basis in certain derivative contracts

 
14,178

Other
28

 
982

Total gross deferred tax assets
66,624

 
77,627

Less valuation allowance
(239
)
 
(137
)
Net deferred tax assets
66,385

 
77,490

Deferred tax liabilities:
 
 
 
Debt repurchases
32,286

 
32,866

Loan origination services
23,750

 
27,554

Depreciation
4,673

 
4,770

Unrealized gain on debt and equity securities
2,830

 
1,619

Basis in certain derivative contracts
2,137

 

Total gross deferred tax liabilities
65,676

 
66,809

Net deferred tax asset (liability)
$
709

 
10,681



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. 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 loss, 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, 2013 and 2012, current income taxes payable of $4.1 million and income taxes receivable of $0.7 million, respectively, are included in "other liabilities" and "other assets" in the consolidated balance sheets.
Segment Reporting
Segment Reporting
 Segment Reporting

The Company earns fee-based revenue through its Student Loan and Guaranty Servicing, Tuition Payment Processing and Campus Commerce, and Enrollment Services operating segments. In addition, the Company earns interest income on its student loan portfolio in its Asset Generation and Management operating segment. 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. generally accepted accounting principles.  

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 38% of income (loss) 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 Activity and Overhead.

Corporate Activity and Overhead

Corporate Activity and Overhead includes the following items:

The operating results of WRCM, the Company's SEC-registered investment advisory subsidiary
Income earned on certain investment activities
Interest expense incurred on unsecured debt transactions
Other product and service offerings that are not considered operating segments

Corporate Activities and Overhead also includes certain corporate activities and overhead functions related to executive management, human resources, accounting, legal, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services.





 
Year ended December 31, 2013
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
40

 

 

 
40

 
638,604

 
9,433

 
(3,267
)
 
644,810

Interest expense

 

 

 

 
229,533

 
4,669

 
(3,267
)
 
230,935

Net interest income (loss)
40

 

 

 
40

 
409,071

 
4,764

 

 
413,875

Less provision for loan losses

 

 

 

 
18,500

 

 

 
18,500

Net interest income (loss) after provision for loan losses
40

 

 

 
40

 
390,571

 
4,764

 

 
395,375

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
243,428

 

 

 
243,428

 

 

 

 
243,428

Intersegment servicing revenue
56,744

 

 

 
56,744

 

 

 
(56,744
)
 

Tuition payment processing and campus commerce revenue

 
80,682

 

 
80,682

 

 

 

 
80,682

Enrollment services revenue

 

 
98,078

 
98,078

 

 

 

 
98,078

Other income

 

 

 

 
15,223

 
32,218

 
(1,143
)
 
46,298

Gain on sale of loans and debt repurchases

 

 

 

 
11,004

 
695

 

 
11,699

Derivative market value and foreign currency adjustments, net

 

 

 

 
35,256

 
13,337

 

 
48,593

Derivative settlements, net

 

 

 

 
(27,966
)
 
(1,670
)
 

 
(29,636
)
Total other income (expense)
300,172

 
80,682

 
98,078

 
478,932

 
33,517

 
44,580

 
(57,887
)
 
499,142

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
119,092

 
37,575

 
19,296

 
175,963

 
2,292

 
17,914

 

 
196,169

Cost to provide enrollment services

 

 
64,961

 
64,961

 

 

 

 
64,961

Depreciation and amortization
11,419

 
4,518

 
232

 
16,169

 

 
2,142

 

 
18,311

Other
79,116

 
9,147

 
6,084

 
94,347

 
30,945

 
25,393

 
(1,143
)
 
149,542

Intersegment expenses, net
4,359

 
5,989

 
4,588

 
14,936

 
57,572

 
(15,764
)
 
(56,744
)
 

Total operating expenses
213,986

 
57,229

 
95,161

 
366,376

 
90,809

 
29,685

 
(57,887
)
 
428,983

Income (loss) before income taxes and corporate overhead allocation
86,226

 
23,453

 
2,917

 
112,596

 
333,279

 
19,659

 

 
465,534

Corporate overhead allocation
(6,150
)
 
(1,957
)
 
(1,943
)
 
(10,050
)
 
(3,896
)
 
13,946

 

 

Income (loss) before income taxes
80,076

 
21,496

 
974

 
102,546

 
329,383

 
33,605

 

 
465,534

Income tax (expense) benefit
(30,430
)
 
(8,168
)
 
(369
)
 
(38,967
)
 
(125,165
)
 
2,939

 

 
(161,193
)
Net income (loss)
49,646

 
13,328

 
605

 
63,579

 
204,218

 
36,544

 

 
304,341

  Net income attributable to noncontrolling interest

 

 

 

 

 
1,669

 

 
1,669

Net income attributable to Nelnet, Inc.
$
49,646

 
13,328

 
605

 
63,579

 
204,218

 
34,875

 

 
302,672

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
84,986

 
219,064

 
34,791

 
338,841

 
27,387,461

 
391,168

 
(346,621
)
 
27,770,849

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2012
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
53

 
8

 

 
61

 
610,194

 
7,305

 
(3,707
)
 
613,853

Interest expense

 

 

 

 
263,788

 
8,485

 
(3,707
)
 
268,566

Net interest income (loss)
53

 
8

 

 
61

 
346,406

 
(1,180
)
 

 
345,287

Less provision for loan losses

 

 

 

 
21,500

 

 

 
21,500

Net interest income (loss) after provision for loan losses
53

 
8

 

 
61

 
324,906

 
(1,180
)
 

 
323,787

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
209,748

 

 

 
209,748

 

 

 

 
209,748

Intersegment servicing revenue
65,376

 

 

 
65,376

 

 

 
(65,376
)
 

Tuition payment processing and campus commerce revenue

 
74,410

 

 
74,410

 

 

 

 
74,410

Enrollment services revenue

 

 
117,925

 
117,925

 

 

 

 
117,925

Other income

 

 

 

 
18,219

 
21,257

 

 
39,476

Gain on sale of loans and debt repurchases

 

 

 

 
3,814

 
325

 

 
4,139

Derivative market value and foreign currency adjustments, net

 

 

 

 
(51,809
)
 
4,415

 

 
(47,394
)
Derivative settlements, net

 

 

 

 
(11,792
)
 
(2,230
)
 

 
(14,022
)
Total other income (expense)
275,124

 
74,410

 
117,925

 
467,459

 
(41,568
)
 
23,767

 
(65,376
)
 
384,282

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
115,126

 
34,314

 
22,816

 
172,256

 
2,252

 
18,318

 

 
192,826

Cost to provide enrollment services

 

 
78,375

 
78,375

 

 

 

 
78,375

Depreciation and amortization
18,415

 
7,240

 
6,491

 
32,146

 

 
1,479

 

 
33,625

Other
70,505

 
10,439

 
10,416

 
91,360

 
16,435

 
20,943

 

 
128,738

Intersegment expenses, net
5,280

 
5,383

 
3,768

 
14,431

 
66,215

 
(15,270
)
 
(65,376
)
 

Total operating expenses
209,326

 
57,376

 
121,866

 
388,568

 
84,902

 
25,470

 
(65,376
)
 
433,564

Income (loss) before income taxes and corporate overhead allocation
65,851

 
17,042

 
(3,941
)
 
78,952

 
198,436

 
(2,883
)
 

 
274,505

Corporate overhead allocation
(5,904
)
 
(1,968
)
 
(1,968
)
 
(9,840
)
 
(5,306
)
 
15,146

 

 

Income (loss) before income taxes
59,947

 
15,074

 
(5,909
)
 
69,112

 
193,130

 
12,263

 

 
274,505

Income tax (expense) benefit
(22,780
)
 
(5,728
)
 
2,244

 
(26,264
)
 
(73,387
)
 
3,574

 

 
(96,077
)
Net income (loss)
37,167

 
9,346

 
(3,665
)
 
42,848

 
119,743

 
15,837

 

 
178,428

  Net income attributable to noncontrolling interest

 

 

 

 

 
431

 

 
431

Net income (loss) attributable to Nelnet, Inc.
$
37,167

 
9,346

 
(3,665
)
 
42,848

 
119,743

 
15,406

 

 
177,997

Total assets
$
90,959

 
150,600

 
53,902

 
295,461

 
26,463,551

 
207,003

 
(358,120
)
 
26,607,895

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2011
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
58

 
21

 

 
79

 
590,736

 
5,074

 
(3,035
)
 
592,854

Interest expense

 

 

 

 
221,675

 
9,649

 
(3,035
)
 
228,289

Net interest income (loss)
58

 
21

 

 
79

 
369,061

 
(4,575
)
 

 
364,565

Less provision for loan losses

 

 

 

 
21,250

 

 

 
21,250

Net interest income (loss) after provision for loan losses
58

 
21

 

 
79

 
347,811

 
(4,575
)
 

 
343,315

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
175,657

 

 

 
175,657

 

 

 

 
175,657

Intersegment servicing revenue
69,037

 

 

 
69,037

 

 

 
(69,037
)
 

Tuition payment processing and campus commerce revenue

 
67,797

 

 
67,797

 

 

 

 
67,797

Enrollment services revenue

 

 
130,470

 
130,470

 

 

 

 
130,470

Other income

 

 

 

 
15,416

 
14,097

 

 
29,513

Gain on sale of loans and debt repurchases

 

 

 

 
1,433

 
6,907

 

 
8,340

Derivative market value and foreign currency adjustments, net

 

 

 

 
7,571

 
(25,378
)
 

 
(17,807
)
Derivative settlements, net

 

 

 

 
(7,228
)
 
(612
)
 

 
(7,840
)
Total other income (expense)
244,694

 
67,797

 
130,470

 
442,961

 
17,192

 
(4,986
)
 
(69,037
)
 
386,130

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
102,878

 
30,070

 
25,155

 
158,103

 
2,791

 
17,057

 

 
177,951

Cost to provide enrollment services

 

 
86,548

 
86,548

 

 

 

 
86,548

Depreciation and amortization
15,313

 
6,179

 
6,854

 
28,346

 

 
1,398

 

 
29,744

Other
60,442

 
10,192

 
9,425

 
80,059

 
13,381

 
19,975

 

 
113,415

Intersegment expenses, net
4,776

 
4,714

 
3,521

 
13,011

 
70,018

 
(13,992
)
 
(69,037
)
 

Total operating expenses
183,409

 
51,155

 
131,503

 
366,067

 
86,190

 
24,438

 
(69,037
)
 
407,658

Income (loss) before income taxes and corporate overhead allocation
61,343

 
16,663

 
(1,033
)
 
76,973

 
278,813

 
(33,999
)
 

 
321,787

Corporate overhead allocation
(4,138
)
 
(1,379
)
 
(1,379
)
 
(6,896
)
 
(6,896
)
 
13,792

 

 

Income (loss) before income taxes
57,205

 
15,284

 
(2,412
)
 
70,077

 
271,917

 
(20,207
)
 

 
321,787

Income tax (expense) benefit
(21,736
)
 
(5,807
)
 
917

 
(26,626
)
 
(103,327
)
 
12,501

 

 
(117,452
)
Net income (loss)
35,469

 
9,477

 
(1,495
)
 
43,451

 
168,590

 
(7,706
)
 

 
204,335

  Net income attributable to noncontrolling interest

 

 

 

 

 

 

 

Net income (loss) attributable to Nelnet, Inc.
$
35,469

 
9,477

 
(1,495
)
 
43,451

 
168,590

 
(7,706
)
 

 
204,335

Total assets
$
123,307

 
157,444

 
45,738

 
326,489

 
25,821,806

 
24,735

 
(320,813
)
 
25,852,217

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Major Customer (Notes)
Concentration Risk Disclosure [Text Block]
Major Customer

The Company earns loan servicing revenue from a servicing contract with the Department that spans five years (through June 2014).  Revenue earned by the Company's Student Loan and Guaranty Servicing operating segment related to this contract was $97.3 million, $69.5 million, and $51.0 million for the years ended December 31, 2013, 2012, and 2011, respectively. On October 25, 2013, the Company received a letter from the Department notifying the Company of the Department's intent to exercise its optional ordering period to extend the contract for an additional five years through June 16, 2019, with actual extension subject to the availability of government funds.
Legal Proceedings
Legal Proceedings
Legal Proceedings

General

The Company is subject to various legal proceedings that arise in the normal course of business, including the legal proceedings discussed below. 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. From time to time, lawsuits may be brought as, or subsequently amended to assert claims in the form of, putative class action cases.

In evaluating each of its legal proceedings, the Company considers many factors that involve significant risks and uncertainties inherent in the overall litigation process, including (i) the amount of damages and the nature of any other relief sought in the proceeding, if specified; (ii) whether the proceeding is at an early stage; (iii) the impact of discovery; (iv) whether novel or unsettled legal theories are at issue; (v) the outcome of pending motions or appeals; (vi) whether there are significant factual issues to be resolved; (vii) whether class action status is sought and the Company's views of the likelihood of a class being certified by the court and the ultimate size of the class; (viii) the jurisdiction in which the proceeding is pending; (ix) the Company's views of the merits of the claims and of the strength of the Company's defenses; and (x) the progress of any negotiations with opposing parties. In assessing whether a legal proceeding may be material, the Company considers these and other quantitative and qualitative factors, including whether disclosure of the proceeding might be important to a reader of the Company's financial statements in light of all of the information about the Company that is available to the reader.

Actions Requesting Certifications of Classes

Proceedings or complaints that involve or ask for certifications of classes generally expand the scope of legal defense costs, as well as alleged potential claim amounts. The Company is currently subject to three legal proceedings in which the plaintiffs have made allegations that one or more putative classes should be certified by the applicable court. It is significant to note that no putative class has actually been certified in any of these proceedings, the Company's position is that class certification would be inappropriate in each such proceeding described below, and the Company intends to vigorously contest such certification. The Company has accrued an immaterial amount related to the legal proceedings described below. However, due to the relatively early stage of these matters and the uncertainty and risks inherent in class determination and the overall litigation process, the Company believes that a meaningful estimate of its exposure to any reasonably possible losses or range of reasonably possible losses, in excess of the amount accrued, cannot currently be made.

Bais Yaakov of Spring Valley v. Peterson's Nelnet, LLC

On January 4, 2011, a complaint against Peterson's Nelnet, LLC (“Peterson's”), a subsidiary of Nelnet, Inc. ("Nelnet"), was filed in the U.S. federal District Court for the District of New Jersey (the “New Jersey District Court”). The complaint alleges that Peterson's sent six advertising faxes to the named plaintiff in 2008-2009 that were not the result of express invitation or permission granted by the plaintiff and did not include certain opt out language. The complaint also alleges that such faxes violated the federal Telephone Consumer Protection Act (the “TCPA”), purportedly entitling the plaintiff to $500 per violation, trebled for willful violations for each of the six faxes. The complaint further alleges that Peterson's had sent putative class members more than 10,000 faxes that violated the TCPA, amounting to more than $5 million in statutory penalty damages and more than $15 million if trebled for willful violations. The complaint seeks to establish a class action. On September 13, 2013, the named plaintiff filed a motion for class certification, and on October 7, 2013, Peterson's filed a motion to dismiss the named plaintiff's motion for class certification. As of the filing date of this report, the New Jersey District Court has not established, recognized, or certified a class. On January 23, 2014, Peterson’s and the named plaintiff reached an agreement in principle whereby Peterson’s would, without admitting any wrongdoing or liability, settle all claims in the lawsuit, including potential class action claims, for payment of an immaterial amount. The settlement agreement in principle is subject to finalization and court approval.

Than Zaw v. Nelnet, Inc.

On January 18, 2013, a Third Amended Complaint was served on Nelnet in connection with a lawsuit by Than Zaw against Nelnet (erroneously referred to in the lawsuit as Nelnet Business Solutions, Inc.) in the Superior Court of the State of California, Contra Costa County (the “California State Court”). The lawsuit was originally instituted on December 30, 2010, and alleges that Nelnet violated the California Fair Debt Collection Practices Act in its interactions with the plaintiff, a California resident. The plaintiff's Third Amended Complaint added additional allegations claiming that Nelnet violated Section 632 of the California Penal Code by allegedly recording one or more telephone calls to the plaintiff without the plaintiff's consent, and sought $5,000 in statutory damages per alleged violation. The Third Amended Complaint further alleged that Nelnet improperly recorded telephone calls to other California residents without such persons' consent, and sought to establish a class action with respect to the California Section 632 claim. As of the filing date of this report, the California State Court has not established, recognized, or certified a class. On October 16, 2013, Nelnet and the named plaintiff reached an agreement in principle whereby Nelnet would, without admitting any wrongdoing or liability, settle all claims in the lawsuit, including potential class action claims, for payment of an immaterial amount. The settlement agreement in principle is subject to finalization and court approval.

Grant Keating v. Peterson's Nelnet, LLC et al

On August 6, 2012, an Amended Complaint was served on Peterson's, CUnet, LLC (“CUnet”), a subsidiary of Nelnet, and on Nelnet (collectively, the "Defendants"), in connection with a lawsuit by Grant Keating in the United States District Court for the Northern District of Ohio (the “Ohio District Court”). The lawsuit was originally instituted on August 24, 2011, and alleges that the Defendants sent an advertising text message to the named plaintiff in June 2011 using an automatic telephone dialing system, and without the plaintiff's express consent. The complaint also alleges that this text message violated the TCPA, purportedly entitling the plaintiff to $500, trebled for a willful violation. The complaint further alleges that the Defendants sent putative class members similar text messages using an automatic telephone dialing system, without such purported class members' consent. The complaint seeks to establish a class action. On August 29, 2013, the Defendants filed motions for summary judgment, and the named plaintiff filed a motion for class certification. As of the filing date of this report, the Ohio District Court has not established, recognized, or certified a class. The Defendants intend to defend themselves vigorously in this lawsuit.
Operating Leases
Leases of Lessee Disclosure [Text Block]
Operating Leases

The Company is committed under noncancelable operating leases for office space and equipment. Total rental expense incurred by the Company for the years ended December 31, 2013, 2012, and 2011 was $8.1 million, $8.1 million, and $8.2 million, respectively. Minimum future rentals, as of December 31, 2013, under noncancelable operating leases are shown below:
2014
$
5,889

2015
3,446

2016
2,512

2017
1,380

2018
1,071

2019 and thereafter
2,256

 
$
16,554

Defined Contribution Benefit Plan
Pension and Other Postretirement Benefits Disclosure [Text Block]
Defined Contribution Benefit Plan

The 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 $3.8 million, $3.6 million, and $3.4 million during the years ended December 31, 2013, 2012, and 2011, respectively.
Stock Based Compensation Plan
Stock Based Compensation Plans

Restricted Stock Plan

The following table summarizes restricted stock activity:
 
Year ended December 31,
 
2013
 
2012
 
2011
Non-vested shares at beginning of year
378,671

 
285,718

 
311,119

Granted
131,933

 
168,833

 
82,845

Vested
(62,491
)
 
(41,089
)
 
(54,184
)
Canceled
(41,062
)
 
(34,791
)
 
(54,062
)
Non-vested shares at end of year
407,051

 
378,671

 
285,718



As of December 31, 2013, there was $5.8 million of unrecognized compensation cost included in “additional paid-in capital” on the consolidated balance sheet related to restricted stock, which is expected to be recognized as compensation expense as shown in the table below.
2014
$
2,305

2015
1,449

2016
904

2017
492

2018
271

2019 and thereafter
406

 
$
5,827



For the years ended December 31, 2013, 2012, and 2011, the Company recognized compensation expense of $3.1 million, $2.2 million, and $1.3 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 common stock from payroll deductions at a 15 percent discount from market value. During the years ended December 31, 2013, 2012, and 2011, the Company recognized compensation expense of approximately $148,000, $114,000, and $137,000, respectively, in connection with issuing 18,004 shares, 21,766 shares, and 29,989 shares, respectively, under this plan.

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 nonemployee 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, 2013, 2012, and 2011, the Company recognized approximately $673,000, $688,000, and $641,000, respectively, of expense related to this plan. The following table provides the number of shares awarded under this plan for the years ended December 31, 2013, 2012, and 2011.

 
Shares issued - not deferred
 
Shares- deferred
 
Total
Year ended December 31, 2013
10,156

 
5,279

 
15,435

Year ended December 31, 2012
16,561

 
16,700

 
33,261

Year ended December 31, 2011
13,059

 
20,843

 
33,902



As of December 31, 2013, a cumulative amount of 127,442 shares have been deferred by directors and will be issued upon their termination from the board of directors. These shares are included in the Company's weighted average shares outstanding calculation.
The following table provides the number of shares awarded under this plan for the years ended December 31, 2013, 2012, and 2011.

 
Shares issued - not deferred
 
Shares- deferred
 
Total
Year ended December 31, 2013
10,156

 
5,279

 
15,435

Year ended December 31, 2012
16,561

 
16,700

 
33,261

Year ended December 31, 2011
13,059

 
20,843

 
33,902

Related Party Transactions
Related Party Transactions
Related Parties

Transactions with Union Financial Services

Union Financial Services, Inc. ("UFS") is owned 50 percent by Michael S. Dunlap, Executive Chairman and a member of the Board of Directors and a significant shareholder of the Company, and 50 percent by Stephen F. Butterfield, Vice Chairman and a member of the Board of Directors of the Company. During 2013, the Company purchased an aircraft for total consideration of $5.8 million and sold an interest in such aircraft to UFS for $2.0 million. After the completion of this transaction, the Company and UFS own 65 percent and 35 percent of the aircraft, respectively.

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 preferred stock. Mr. Dunlap, along with his spouse and children, owns or controls a significant portion of the stock of F&M, while Mr. Dunlap's sister, Angela L. Muhleisen, along with her husband and children, also owns or controls a significant portion of F&M stock. Mr. Dunlap serves as a Director and Chairman of F&M. Ms. Muhleisen serves as Director and President 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 various shares of the Company because it serves in a capacity of trustee or account manager 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

During the years ended December 31, 2013, 2012, and 2011, the Company purchased FFELP student loans from Union Bank of $478.4 million (par value), $0.3 million (par value), and $0.1 million (par value), respectively. Loans purchased during 2013 were purchased at a discount of $11.4 million. No discount or premium was paid for loans purchased during 2012 or 2011.

Loan Servicing

The Company serviced $598.9 million, $445.8 million, and $496.3 million of loans for Union Bank as of December 31, 2013, 2012, and 2011, respectively. Servicing revenue earned by the Company from servicing loans for Union Bank was $1.3 million, $1.7 million, and $1.9 million for the years ended December 31, 2013, 2012, and 2011, respectively. As of December 31, 2013 and December 31, 2012 accounts receivable includes approximately $40,000 and approximately $138,000, respectively, due from Union Bank for loan servicing.

Funding - Participation Agreement

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, 2013 and 2012, $342.5 million and $453.0 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 $750 million or an amount in excess of $750 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.

Operating Cash Accounts

The majority of the Company's cash operating accounts are maintained at Union Bank. The Company also participates in the Short term Federal Investment Trust (“STFIT”) of the Student Loan Trust Division of Union Bank, which is 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, 2013 and 2012, the Company had $182.5 million and $111.8 million, respectively, invested in the STFIT or deposited at Union Bank in operating accounts, of which $127.8 million and $53.3 million as of December 31, 2013 and 2012, respectively, represented cash collected for customers. Interest income earned by the Company on the amounts invested in the STFIT for the years ended December 31, 2013, 2012, and 2011, was $0.1 million, $0.2 million, and $0.2 million, respectively.

529 Plan Administration Services

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, 2013, 2012, and 2011, the Company has received fees of $2.8 million, $1.7 million, and $2.3 million, respectively, from Union Bank related to the administration services provided to 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 $72,000, $74,000, and $73,000 for commercial rent and storage income during 2013, 2012, and 2011, respectively. The lease agreement expires on June 30, 2018.

On October 31, 2011, the Company entered into a lease agreement with Union Bank under which the Company leases office space of approximately 1,300 square feet for $25,000 per year, plus an additional monthly charge for each associate the Company assigns to the space. In October 2012, the Company and Union Bank amended the lease to increase the total leased space to approximately 6,900 square feet for $159,000 per year. The Company paid Union Bank approximately $159,000, $43,000, and $4,000 during 2013, 2012, and 2011, respectively, in accordance with the terms of the lease agreement. The lease agreement expires in November 2016.

Other Fees Paid to Union Bank

During the years ended December 31, 2013, 2012, and 2011, the Company paid Union Bank approximately $36,000, $36,000, and $64,000, respectively, in administrative services; approximately $107,000, $92,000, and $104,000, respectively, in commissions; and approximately $140,000, $187,000, and $185,000, respectively, in cash management fees.

Other Fees Received from Union Bank

During the years ended December 31, 2013, 2012, and 2011, Union Bank paid the Company approximately $170,000, $152,000, and $144,000, respectively, under an employee sharing arrangement and approximately $18,000, $31,000, and $25,000, respectively, for health and productivity services.

401(k) Plan Administer

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 $370,000, $305,000, and $270,000 during the years ended December 31, 2013, 2012, and 2011, respectively.

Mortgage Servicing Agreement

On May 1, 2013, the Company entered into an agreement with Union Bank under which the Company was engaged by Union Bank to assist in performing various duties in connection with the expansion of Union Bank's mortgage loan operations and the servicing of mortgage loans. Per the terms of the agreement, each party will be responsible for 50 percent of all costs incurred directly related to the expansion of the mortgage loan operations. Additionally, each party will be entitled to receive 50 percent of the net income resulting from the mortgage loan operations. Through December 31, 2013, the Company has paid Union Bank approximately $52,000 for its portion of costs incurred related to the expansion of the mortgage loan operations.

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. On May 9, 2011, WRCM, an SEC-registered investment advisor and a subsidiary of the Company, entered into a management agreement with Union Bank, effective as of May 1, 2011, 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, 2013, the outstanding balance of investments in the trusts was $734.8 million. 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.  For the years ended December 31, 2013, 2012, and 2011, the Company earned $12.9 million, $8.4 million, and $5.1 million, respectively, of fees under this agreement.

On January 20, 2012, WRCM entered into a management agreement with Union Bank under which it was designated to serve as investment advisor with respect to the assets within several trusts established by Michael S. Dunlap. Union Bank serves as trustee for the trusts. Per the terms of this agreement, 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. Mr. Dunlap contributed a total of 3,375,000 shares of the Company's Class B common stock to the trusts upon the establishment thereof. For the years ended December 31, 2013 and 2012, the Company earned approximately $61,000 and approximately $44,000 of fees under this agreement.

During 2012 and 2013, WRCM established three 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, UFS, Jeffrey R. Noordhoek (an executive officer of the Company), F&M, 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, 2013, the outstanding balance of investments in these three funds was $116.7 million. For the years ended December 31, 2013 and 2012, the Company paid Union Bank $0.3 million and $0.1 million, respectively, as custodian.

As of December 31, 2013 and December 31, 2012, accounts receivable included $3.3 million and $0.4 million, respectively, due from Union Bank related to fees earned by WRCM from the investment services described above.
Fair Value
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, 2013.
 
As of December 31, 2013
 
As of December 31, 2012
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments: (a)
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed securities
$

 
188,279

 
188,279

 

 
77,652

 
77,652

Equity securities
3,282

 

 
3,282

 
4,873

 

 
4,873

Debt securities
479

 

 
479

 
787

 

 
787

      Total investments
3,761

 
188,279

 
192,040

 
5,660

 
77,652

 
83,312

Fair value of derivative instruments (b)

 
62,507

 
62,507

 

 
97,441

 
97,441

      Total assets
$
3,761

 
250,786

 
254,547

 
5,660

 
175,093

 
180,753

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Fair value of derivative instruments (b):
$

 
17,969

 
17,969

 

 
70,890

 
70,890

      Total liabilities
$

 
17,969

 
17,969

 

 
70,890

 
70,890


(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. 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)
All derivatives are accounted for at fair value on a recurring basis.  The fair value of derivative financial instruments is determined using a market approach in which derivative pricing models use the stated terms of the contracts and observable yield curves, forward foreign currency exchange rates, and volatilities from active markets.  

When determining the fair value of derivatives, the Company takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held. The net exposures for each counterparty are adjusted based on market information available for the specific counterparty.

The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:

 
As of December 31, 2013
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
26,641,383

 
25,907,589

 

 

 
26,641,383

Cash and cash equivalents
63,267

 
63,267

 
63,267

 

 

Investments
192,040

 
192,040

 
3,761

 
188,279

 

Restricted cash
727,838

 
727,838

 
727,838

 

 

Restricted cash – due to customers
167,576

 
167,576

 
167,576

 

 

Restricted investments
7,285

 
7,285

 
7,285

 

 

Accrued interest receivable
314,553

 
314,553

 

 
314,553

 

Derivative instruments
62,507

 
62,507

 

 
62,507

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
25,577,250

 
25,955,289

 

 
25,577,250

 

Accrued interest payable
21,725

 
21,725

 

 
21,725

 

Due to customers
167,576

 
167,576

 
167,576

 

 

Derivative instruments
17,969

 
17,969

 

 
17,969

 


 
As of December 31, 2012
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
25,418,623

 
24,830,621

 

 

 
25,418,623

Cash and cash equivalents
66,031

 
66,031

 
66,031

 

 

Investments
83,312

 
83,312

 
5,660

 
77,652

 

Restricted cash
806,632

 
806,632

 
806,632

 

 

Restricted cash – due to customers
96,516

 
96,516

 
96,516

 

 

Restricted investments
8,830

 
8,830

 
8,830

 

 

Accrued interest receivable
307,518

 
307,518

 

 
307,518

 

Derivative instruments
97,441

 
97,441

 

 
97,441

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
24,486,008

 
25,098,835

 

 
24,486,008

 

Accrued interest payable
14,770

 
14,770

 

 
14,770

 

Due to customers
96,516

 
96,516

 
96,516

 

 

Derivative instruments
70,890

 
70,890

 

 
70,890

 



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:

Student Loans Receivable

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. Fair values for student loan receivables were determined by modeling loan cash flows using stated terms of the assets and internally-developed assumptions to determine aggregate portfolio yield, net present value, and average life. 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, Restricted Investments, Accrued Interest Receivable/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

Bonds and notes payable are accounted for at cost in the financial statements except when denominated in a foreign currency. Foreign currency-denominated borrowings are re-measured at current spot rates in the financial statements. 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, and market credit spreads. Fair value adjustments for unsecured corporate debt are made based on indicative quotes from observable trades.

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.

Quarterly Financial Information
Quarterly Financial Information [Text Block]
Quarterly Financial Information (Unaudited)
 
2013
 
First quarter
 
Second quarter
 
Third quarter
 
Fourth quarter
Net interest income
$
98,798

 
101,419

 
104,922

 
108,736

Less provision for loan losses
5,000

 
5,000

 
5,000

 
3,500

Net interest income after provision for loan losses
93,798

 
96,419

 
99,922

 
105,236

Loan and guaranty servicing revenue
55,601

 
60,078

 
64,582

 
63,167

Tuition payment processing and campus commerce revenue
23,411

 
18,356

 
19,927

 
18,988

Enrollment services revenue
28,957

 
24,823

 
22,563

 
21,735

Other income
9,416

 
12,288

 
8,613

 
15,981

Gain on sale of loans and debt repurchases
1,407

 
7,355

 
2,138

 
799

Derivative market value and foreign currency adjustments and derivative settlements, net
1,072

 
40,188

 
(16,648
)
 
(5,655
)
Salaries and benefits
(47,905
)
 
(47,432
)
 
(48,712
)
 
(52,120
)
Cost to provide enrollment services
(19,642
)
 
(16,787
)
 
(14,668
)
 
(13,864
)
Depreciation and amortization
(4,377
)
 
(4,320
)
 
(4,340
)
 
(5,274
)
Operating expenses - other
(34,941
)
 
(34,365
)
 
(39,887
)
 
(40,349
)
Income tax expense
(38,447
)
 
(54,746
)
 
(30,444
)
 
(37,556
)
Net income
68,350

 
101,857

 
63,046

 
71,088

Net income attributable to noncontrolling interest
271

 
614

 
216

 
568

Net income attributable to Nelnet, Inc.
$
68,079

 
101,243

 
62,830

 
70,520

Earnings per common share:
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$
1.46

 
2.17

 
1.35

 
1.52

 
2012
 
First quarter
 
Second quarter
 
Third quarter
 
Fourth quarter
Net interest income
$
84,856

 
84,567

 
85,266

 
90,598

Less provision for loan losses
6,000

 
7,000

 
5,000

 
3,500

Net interest income after provision for loan losses
78,856

 
77,567

 
80,266

 
87,098

Loan and guaranty servicing revenue
49,488

 
52,391

 
53,285

 
54,584

Tuition payment processing and campus commerce revenue
21,913

 
16,834

 
17,928

 
17,735

Enrollment services revenue
31,664

 
29,710

 
30,661

 
25,890

Other income
10,954

 
8,800

 
12,699

 
7,023

Gain on sale of loans and debt repurchases

 
935

 
195

 
3,009

Derivative market value and foreign currency adjustments and derivative settlements, net
(15,180
)
 
(21,618
)
 
(31,275
)
 
6,657

Salaries and benefits
(49,095
)
 
(48,703
)
 
(46,395
)
 
(48,633
)
Cost to provide enrollment services
(21,678
)
 
(20,374
)
 
(20,151
)
 
(16,172
)
Depreciation and amortization
(8,136
)
 
(8,226
)
 
(8,402
)
 
(8,861
)
Operating expenses - other
(32,263
)
 
(30,908
)
 
(29,989
)
 
(35,578
)
Income tax expense
(23,230
)
 
(14,878
)
 
(21,870
)
 
(36,099
)
Net income
43,293

 
41,530

 
36,952

 
56,653

Net income attributable to noncontrolling interest
152

 
136

 
124

 
19

Net income attributable to Nelnet, Inc.
$
43,141

 
$
41,394

 
$
36,828

 
$
56,634

Earnings per common share:
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$
0.91

 
0.87

 
0.78

 
1.20

Condensed Parent Only Financial Statements
Condensed Financial Information of Parent Company Only Disclosure [Text Block]
Condensed Parent Company Financial Statements

The following represents the condensed balance sheets as of December 31, 2013 and 2012 and condensed statements of income and cash flows for each of the years in the three-year period ended December 31, 2013 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 education lending subsidiaries debt financing arrangements. The amounts of cash and investments restricted in the respective reserve accounts of the education lending subsidiaries are shown on the consolidated balance sheets as restricted cash and investments.
Balance Sheets
(Parent Company Only)
As of December 31, 2013 and 2012
 
2013
 
2012
Assets:
 
 
 
Cash and cash equivalents
$
24,032

 
12,124

Investments
175,887

 
67,564

Investment in subsidiary debt
233,095

 
155,613

Restricted cash
3,763

 
63,258

Investment in subsidiaries
957,676

 
915,148

Other assets
272,910

 
237,379

Fair value of derivative instruments
25,673

 
14,600

Total assets
$
1,693,036

 
1,465,686

Liabilities:
 
 
 
Notes payable
$
191,457

 
204,232

Other liabilities
39,620

 
25,351

Fair value of derivative instruments
17,969

 
70,890

Total liabilities
249,046

 
300,473

Equity:
 
 
 
Nelnet, Inc. shareholders' equity:
 
 
 
Common stock
464

 
466

Additional paid-in capital
24,887

 
32,540

Retained earnings
1,413,492

 
1,129,389

Accumulated other comprehensive earnings
4,819

 
2,813

Total Nelnet, Inc. shareholders' equity
1,443,662

 
1,165,208

Noncontrolling interest
328

 
5

Total equity
1,443,990

 
1,165,213

Total liabilities and shareholders' equity
$
1,693,036

 
1,465,686


Statements of Income
(Parent Company Only)
Years ended December 31, 2013, 2012, and 2011
 
 
2013
 
2012
 
2011
Investment interest
 
$
7,911

 
5,186

 
4,132

Interest on bonds and notes payable
 
4,433

 
3,607

 
1,162

Net interest income
 
3,478

 
1,579

 
2,970

Other income (expense):
 
 

 
 
 
 
Other income
 
7,112

 
8,010

 
4,304

Gain from debt repurchases
 
11,905

 
4,487

 
7,255

Equity in subsidiaries income
 
275,989

 
224,011

 
256,299

Derivative market value adjustments and derivative settlements, net
 
28,134

 
(47,262
)
 
(55,911
)
Total other income
 
323,140

 
189,246

 
211,947

Operating expenses
 
5,626

 
1,867

 
6,634

Income before income taxes
 
320,992

 
188,958

 
208,283

Income tax expense
 
(16,651
)
 
(10,530
)
 
(3,948
)
Net income
 
304,341

 
178,428

 
204,335

Net income attributable to noncontrolling interest
 
1,669

 
431

 

Net income attributable to Nelnet, Inc.
 
$
302,672

 
177,997

 
204,335









Statements of Cash Flows
(Parent Company Only)
Years ended December 31, 2013, 2012, and 2011
 
2013
 
2012
 
2011
Net income attributable to Nelnet, Inc.
$
302,672

 
177,997

 
204,335

Net income attributable to noncontrolling interest
1,669

 
431

 

Net income
304,341

 
178,428

 
204,335

Adjustments to reconcile income to net cash provided by operating activities:
 
 
 
 
 
Derivative market value adjustment
(57,525
)
 
30,041

 
36,226

(Payments) proceeds to terminate and/or amend derivative instruments, net
(6,469
)
 
(6,005
)
 
3,365

Gain from debt repurchases
(11,905
)
 
(4,487
)
 
(7,255
)
Equity in earnings of subsidiaries
(275,989
)
 
(224,011
)
 
(256,299
)
Gain from sale of available-for-sale securities, net
(5,938
)
 
(5,798
)
 

Other
4,119

 
3,218

 
8,219

Decrease in other assets
209,896

 
169,256

 
341,412

Increase (decrease) in other liabilities
16,205

 
(38,971
)
 
14,126

Net cash provided by operating activities
176,735

 
101,671

 
344,129

Cash flows from investing activities:
 
 
 
 
 
Decrease (increase) in restricted cash
59,495

 
(29,082
)
 
(3,083
)
Contingency payment related to business combination

 

 
(5,893
)
Purchases of available-for-sale securities
(217,415
)
 
(186,727
)
 

Proceeds from sales of available-for-sale securities
116,337

 
162,533

 

Purchase of subsidiary debt, net
(66,272
)
 
(6,584
)
 
108,334

Purchases of other investments, net
(11,758
)
 

 

Net cash (used in) provided by investing activities
(119,613
)
 
(59,860
)
 
99,358

Cash flows from financing activities:
 
 
 
 
 
Payments on notes payable
(147,080
)
 
(109,748
)
 
(440,913
)
Payments on notes payable due to a related party

 

 
(107,050
)
Proceeds from issuance of notes payable
135,000

 
153,380

 

Payments of debt issuance costs
(644
)
 
(1,111
)
 

Dividends paid
(18,569
)
 
(66,237
)
 
(17,763
)
Repurchases of common stock
(13,136
)
 
(22,763
)
 
(27,134
)
Proceeds from issuance of common stock
561

 
480

 
512

Payments received on employee stock notes receivable

 
1,140

 
30

Issuance of noncontrolling interest
5

 
5

 

Distribution made to noncontrolling interest
(1,351
)
 
(431
)
 

Net cash used in financing activities
(45,214
)
 
(45,285
)
 
(592,318
)
Net increase (decrease) in cash and cash equivalents
11,908

 
(3,474
)
 
(148,831
)
Cash and cash equivalents, beginning of year
12,124

 
15,598

 
164,429

Cash and cash equivalents, end of year
$
24,032

 
12,124

 
15,598

 
 
 
 
 
 
Summary of Significant Accounting Policies and Practices Summary of Significant Accounting Policies (Policies)
Consolidation

The consolidated financial statements include the accounts of Nelnet, Inc. and its consolidated subsidiaries, including its education lending subsidiaries for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation.

The Company's education lending subsidiaries (or Variable Interest Entities ("VIEs")) are engaged in the securitization of education finance assets. These education lending subsidiaries hold beneficial interests in eligible loans, subject to creditors with specific interests. The liabilities of the Company's education lending subsidiaries are not the direct obligations of Nelnet, Inc. or any of its other subsidiaries. Each education 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 has determined it is the primary beneficiary of its education lending subsidiaries (VIEs). 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 is generally the administrator and master servicer of the securitized assets held in its education lending subsidiaries and owns the residual interest of the securitization trusts. As a result, for accounting purposes, the transfers of student loans to the eligible lender 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.
Noncontrolling Interest

Noncontrolling interest reflects the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interests in Whitetail Rock Capital Management, LLC ("WRCM"), a subsidiary of the Company that issued minority membership interests on January 1, 2012 and January 1, 2013.
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.

Student Loans Receivable

Student loans consist of federally insured student loans and non-federally insured student 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, 2013 and 2012.

Federally insured loans were previously made 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. The 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 period. Interest rates on loans may be fixed or variable, dependent upon the type of loan, terms of the loan agreements, and date of origination. For FFELP loans, the education lending subsidiaries have entered into trust agreements in which unrelated financial institutions serve as the eligible lender trustees. As eligible lender trustees, the financial institutions act as the eligible lender in acquiring certain eligible student loans as an accommodation to the subsidiaries, which hold beneficial interests in the student loan assets as the beneficiaries of such trusts.

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.

Student loans receivable also includes non-federally insured loans. The terms of the non-federally insured loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to 30 years. The non-federally insured loans are not covered by a guarantee or collateral in the event of borrower default.
Allowance for Loan Losses

The allowance for loan losses represents management's estimate of probable losses on student loans. The provision for loan losses reflects the activity for the applicable period and provides an allowance at a level that the Company's management believes is appropriate to cover probable losses inherent in the loan portfolio. The Company evaluates the adequacy of the allowance for loan losses on its federally insured loan portfolio separately from its non-federally insured loan portfolio. These evaluation processes are subject to numerous judgments and uncertainties.

The allowance for the federally insured loan portfolio is based on periodic evaluations of the Company's loan portfolios considering 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, current economic conditions, and other relevant factors. 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. Student loans disbursed prior to October 1, 1993 are fully insured.

In determining the appropriate allowance for loan losses on the non-federally insured loans, the Company considers several factors, including: loans in repayment versus those in a nonpaying status, delinquency status, type of program, trends in defaults in the portfolio based on Company and industry data, past experience, current economic conditions, and other relevant factors. The Company places a non-federally insured loan on nonaccrual status when the collection of principal and interest is 30 days past due, and charges off the loan when the collection of principal and interest is 120 days past due. Collections, if any, are reflected as a recovery through the allowance for loan losses.

Management has determined that each of the federally insured loan portfolio and the non-federally insured loan portfolio meets 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 credit losses.  Accordingly, the portfolio segment basis disclosures are presented in note 3 for each of these portfolios.  The Company does not disaggregate its portfolio segment student loan portfolios into classes of financing receivables. In addition, as of December 31, 2013 and 2012, the Company did not have any impaired loans as defined in the Receivables Topic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification.
Cash and Cash Equivalents and Statement of Cash Flows

For purposes of the consolidated statements of cash flows, the Company considers all investments with maturities when purchased 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 accrued interest was $29.0 million, $68.0 million, and $12.7 million in 2013, 2012, and 2011, respectively.
Investments

The Company's available-for-sale investment portfolio consists of student loan asset-backed securities and equity and debt securities. These securities are carried at fair value, with the temporary changes in fair value, net of taxes, carried as a separate component of shareholders’ equity. The amortized cost of debt securities in this category (including the student loan asset-backed securities) is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. Other-than-temporary impairment is evaluated by considering several factors, including the length of time and extent to which the fair value has been less than the amortized cost basis, the financial condition and near-term prospects of the issuer of the security (considering factors such as adverse conditions specific to the security and ratings agency actions), and the intent and ability of the Company to retain the investment to allow for any anticipated recovery in fair value. The entire fair value loss on a security that has experienced an other-than-temporary impairment is recorded in earnings if the Company intends to sell the security or if it is more likely than not that the Company will be required to sell the security before the expected recovery of the loss. However, if the impairment is other-than-temporary, and either of those two conditions does not exist, the portion of the impairment related to credit losses is recorded in earnings and the impairment related to other factors is recorded in other comprehensive income.

Securities classified as trading are accounted for at fair value, with unrealized gains and losses included in "other income" in the consolidated statements of income.

Securities that the Company has the intent and ability to hold to maturity are classified as held-to-maturity and are accounted for at amortized cost unless the security is determined to have an other-than-temporary impairment. In that case, it is accounted for in the same manner as described above for available-for-sale investments.

When an investment is sold, the cost basis is determined through specific identification of the security sold.
Restricted Cash and Investments 

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 counterparties.

Cash balances that the Company's indentured trusts deposit in guaranteed investment contracts that are held for the related asset-backed note holders are classified as restricted investments. The Company has classified these investments as held-to-maturity and accounts for them at amortized cost, which approximates fair value.
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 Tuition Payment Processing and Campus Commerce 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 includes allowances for doubtful accounts. Allowance estimates are based upon individual customer experience, as well as the age of receivables and likelihood of collection.
Goodwill

The Company reviews goodwill for impairment annually (in the fourth quarter) 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 two-step quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test.

If the Company elects to not perform a qualitative assessment or if the Company determines it is more likely than not that the fair value of a reporting unit is less than the carrying amount, then the Company performs a two-step impairment test on goodwill. In the first step, the Company compares the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference.

Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and determination of appropriate market comparables. Actual future results may differ from those estimates.
See note 8 for information regarding the Company's annual goodwill impairment review for 2011, 2012, and 2013.
Intangible Assets

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 accelerated and straight-line methods for recording depreciation and amortization. Accelerated methods are used for certain equipment and software when this method is believed to provide a better matching of income and expenses. Leasehold improvements are amortized over the lesser of their useful life or the related estimated lease period.
Impairment of Long‑Lived Assets

The Company reviews its long-lived assets, such as 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. The Company uses estimates to determine the fair value of long-lived 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 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 estimating fair value if such methods are determined to be more appropriate.

Assumptions and estimates about future values and remaining useful lives 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.
Other Assets

Other assets are recorded at cost or amortized cost and consist primarily of debt issuance costs, certain investments, and other miscellaneous assets. Debt issuance costs are amortized using the effective interest method.

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.

The Company's accounting policy is to recognize transfers between levels of the fair value hierarchy at the end of the reporting period.
Revenue Recognition

Loan interest income - Loan interest is paid by the Department or the borrower, depending on the status of the loan at the time of the accrual. In addition, 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 non-federally insured 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.

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) or the fiscal quarter average rate of daily one-month LIBOR rates (for loans originated on and after January 1, 2000) relative to the yield of the student loan.

The Company recognizes student loan income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts. Loan 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 loan, which includes an estimate of prepayment rates. The Company periodically evaluates the assumptions used to estimate the life of the loans and prepayment rates.
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.
Student loan and guaranty servicing revenue – Student loan and guaranty servicing revenue consists of the following items:

Loan and guaranty servicing fees – Loan servicing fees are determined according to individual agreements with customers and are calculated based on the dollar value of loans, number of loans, or number of borrowers serviced for each customer. Guaranty servicing fees are generally calculated based on the number of loans serviced, volume of loans serviced, or amounts collected. Revenue is recognized over the period in which services are provided to customers, and when ultimate collection is assured.

Guaranty collections revenue – Guaranty collections revenue is earned when collected. Collection costs paid to third parties associated with this revenue is expensed upon successful collection.

Software services revenue – Software services revenue is determined from individual agreements with customers and includes license and maintenance fees associated with student loan software products.  Computer and software consulting and remote hosting revenues are recognized over the period in which services are provided to customers.

Tuition payment processing and campus commerce revenue - Tuition payment processing and campus commerce revenue includes actively managed tuition payment solutions and online payment processing. Fees for these services are recognized over the period in which services are provided to customers. Cash received in advance of the delivery of services is included in deferred revenue.

Enrollment Services Revenue – Enrollment services revenue primarily consists of the following items:

Inquiry Generation and Management (Agency) - This revenue is derived primarily from fees which are earned through the delivery of qualified inquiries or clicks. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is reasonably assured. Delivery is deemed to have occurred at the time a qualified inquiry or click is delivered to the customer, provided that no significant obligations remain. From time to time, the Company may agree to credit certain inquiries or clicks if they fail to meet the contractual or other guidelines of a particular client. The Company has established a sales reserve based on historical experience. To date, such credits have been immaterial and within management’s expectations.

For a portion of this revenue, the Company has agreements with providers of online media or traffic (“inquiry generation vendors”) used in the generation of inquiries or clicks. The Company receives a fee from its customers and pays a fee to the inquiry generation vendors either on a cost per inquiry, cost per click, or cost per number of impressions basis. The Company is the primary obligor in the transaction. As a result, the fees paid by the Company’s customers are recognized as revenue and the fees paid to its inquiry generation vendors are included in “cost to provide enrollment services” in the Company’s consolidated statements of income.

Inquiry Management (Software) - This revenue is determined from individual agreements with customers and includes license and maintenance fees associated with inquiry management software products. Remote hosting revenues are recognized over the period in which services are provided to customers.

Digital Marketing - Revenue from sales of subscriptions for interactive services to connect students to colleges and universities is recognized ratably over the term of the contract as earned. Subscription revenue received or receivable in advance of the delivery of services is included in deferred revenue. Revenue for editing services for admission essays is recognized over the period in which services are provided to customers.

Content Solutions - Several content solutions services are sold based on subscriptions. Revenue from sales of subscription services is recognized ratably over the term of the contract as earned. Subscription revenue received or receivable in advance of the delivery of services is included in deferred revenue. Revenue from the sale of print products is generally earned and recognized, net of estimated returns, upon shipment or delivery. All other revenue is recognized over the period in which services are provided to customers.

Other income - Other income includes realized and unrealized gains and losses on investments and borrower late fee income, which is earned by the education lending subsidiaries and is recognized when payments are collected from the borrower. Other income also includes investment advisory income. The Company provides investment advisory services through an SEC-registered investment advisor subsidiary under various arrangements and earns annual fees on the outstanding balance of investments and certain performance measures, which are recognized monthly as earned.

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

The Company records derivative instruments on the consolidated balance sheets as either an asset or liability measured at its fair value. The Company determines the fair value for its derivative instruments using either (i) pricing models that consider current market conditions and the contractual terms of the derivative instrument or (ii) counterparty valuations. The Company does not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instruments that are recognized at fair value and executed with the same counterparty under a master netting arrangement. The factors that impact the fair value of the Company's derivatives include interest rates, time value, forward interest rate curve, and volatility factors, as well as foreign exchange rates. Pricing models and their underlying assumptions impact the amount and timing of unrealized gains and losses recognized, and the use of different pricing models or assumptions could produce different financial results. 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 fair value of derivative instruments is reported in current period earnings. Changes or shifts in the forward yield curve and fluctuations in currency rates can significantly impact the valuation of the Company’s derivatives, and therefore impact the financial position and results of operations of the Company. Any proceeds received or payments made by the Company to terminate a derivative in advance of its expiration date, or to amend the terms of an existing derivative, are included in the Company's consolidated statements of income and are accounted for as a change in fair value of such derivative. The changes in fair value of derivative instruments, as well as the settlement payments made on such derivatives, are included in “derivative market value and foreign currency adjustments and derivative settlements, net” on the consolidated statements of income.
Foreign Currency

During 2006, the Company issued Euro-denominated bonds, which are included in “bonds and notes payable” on the consolidated balance sheets. Transaction gains and losses resulting from exchange rate changes when re-measuring these bonds to U.S. dollars at the balance sheet date are included in “derivative market value and foreign currency 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.
 
Income tax expense includes deferred tax expense, which represents 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 (including both tax and interest).
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.
Stock Repurchases

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.
Student Loans Receivable and Allowance for Loan Losses (Tables)
Student loans receivable consisted of the following:
 
As of December 31,
 
2013
 
2012
Federally insured loans
 
 
 
Stafford and other
$
6,686,626

 
7,261,114

Consolidation
19,363,577

 
17,708,732

Total
26,050,203

 
24,969,846

Non-federally insured loans
71,103

 
26,034

 
26,121,306

 
24,995,880

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(158,595
)
 
(113,357
)
Allowance for loan losses – federally insured loans
(43,440
)
 
(40,120
)
Allowance for loan losses – non-federally insured loans
(11,682
)
 
(11,782
)
 
$
25,907,589

 
24,830,621

 
 
 
 


(a) For loans purchased where there is evidence of credit deterioration since the origination of the loan, the Company records a credit discount, separate from the allowance for loan losses, which is non-accretable to interest income. Remaining discounts and premiums for purchased loans are recognized in interest income over the remaining estimated lives of the loans. The Company continues to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine the need for any additional allowance for loan losses. At December 31, 2013 and 2012, "loan discount, net of unamortized loan premiums and deferred origination costs" included $20.2 million and $17.8 million, respectively, of non-accretable discount associated with purchased loans.
The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below.
 
 
Year ended December 31,
 
2013
 
2012
 
2011
Balance at beginning of period
$
51,902

 
48,482

 
43,626

Provision for loan losses:
 
 
 
 
 
Federally insured loans
20,000

 
22,000

 
20,000

Non-federally insured loans
(1,500
)
 
(500
)
 
1,250

Total provision for loan losses
18,500

 
21,500

 
21,250

Charge-offs:
 

 
 

 
 
Federally insured loans
(15,588
)
 
(21,217
)
 
(17,166
)
Non-federally insured loans
(3,683
)
 
(3,508
)
 
(4,147
)
Total charge-offs
(19,271
)
 
(24,725
)
 
(21,313
)
Recoveries - non-federally insured loans
1,577

 
1,419

 
1,310

Purchase (sale) of federally insured loans, net
(1,093
)
 
2,133

 
1,463

Transfer from repurchase obligation related to non-federally insured loans repurchased, net
3,507

 
3,093

 
2,146

Balance at end of period
$
55,122

 
51,902

 
48,482

 
 
 
 
 
 
Allocation of the allowance for loan losses:
 

 
 

 
 
Federally insured loans
$
43,440

 
40,120

 
37,205

Non-federally insured loans
11,682

 
11,782

 
11,277

Total allowance for loan losses
$
55,122

 
51,902

 
48,482

The Company’s estimate related to its obligation to repurchase these loans is included in “other liabilities” in the Company’s consolidated balance sheets. The activity related to this accrual is detailed below.
 
Year ended December 31,
 
2013
 
2012
 
2011
Beginning balance
$
16,130

 
19,223

 
12,600

Repurchase obligation transferred to the allowance for loan losses related to loans repurchased, net
(3,507
)
 
(3,093
)
 
(2,146
)
Repurchase obligation associated with loans sold
3,520

 

 
6,269

Current period expense

 

 
2,500

Ending balance
$
16,143

 
16,130

 
19,223


Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.  The percent of non-federally insured loans that were delinquent 31 days or greater as of December 31, 2013, 2012, and 2011 was 12.7 percent, 28.6 percent, and 28.6 percent, respectively. The table below shows the Company’s federally insured student loan delinquency amounts.

Rehabilitation Loans and Delinquent Loans Funded in FFELP Warehouse Facilities

Rehabilitation loans are student 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 student loans, rehabilitation loans have generally experienced re-default rates that are higher than default rates for federally insured student loans that have not previously defaulted.  The Company has purchased a significant amount of rehabilitation loans during 2012 and 2013.  Upon purchase, these loans are recorded at fair value, which generally approximates the federal guarantee rate under the FFEL Program.  As such, there is minimal credit risk related to rehabilitation loans purchased; therefore, these loans are presented separately in the following delinquency tables.

In addition, the Company has purchased delinquent federally insured loans that are funded in the Company's FFELP warehouse facilities. Upon purchase, these loans are recorded at fair value, which generally approximates the federal guarantee rate. As such, there is minimal credit risk related to these loans. Loans delinquent 121 days or greater and funded in the Company's FFELP warehouse facilities are included with rehabilitation loans purchased in the following delinquency tables.
 
As of December 31,
 
2013
 
2012
 
2011
Federally insured loans, excluding rehabilitation loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment (a)
$
2,618,390

 
 
 
$
2,949,320

 
 
 
$
3,623,284

 
 
Loans in forbearance (b)
2,954,495

 
 
 
2,992,023

 
 
 
3,267,771

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
15,251,869

 
86.1
%
 
14,583,044

 
87.6
%
 
14,422,192

 
84.6
%
Loans delinquent 31-60 days (c)
768,600

 
4.3

 
652,351

 
3.9

 
821,166

 
4.8

Loans delinquent 61-90 days (c)
426,089

 
2.5

 
330,885

 
2.0

 
388,542

 
2.3

Loans delinquent 91-120 days (c)
281,991

 
1.6

 
247,381

 
1.5

 
289,173

 
1.7

Loans delinquent 121-270 days (c)
712,204

 
4.0

 
603,942

 
3.6

 
811,914

 
4.8

Loans delinquent 271 days or greater (c)(d)
269,066

 
1.5

 
220,798

 
1.4

 
307,861

 
1.8

Total loans in repayment
17,709,819

 
100.0
%
 
16,638,401

 
100.0
%
 
17,040,848

 
100.0
%
Total federally insured loans, excluding rehabilitation loans
$
23,282,704

 
 

 
$
22,579,744

 
 

 
$
23,931,903

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rehabilitation loans:
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment (a)
$
254,115

 
 
 
$
150,317

 
 
 
$
41,615

 
 
Loans in forbearance (b)
415,530

 
 
 
330,278

 
 
 
62,681

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
1,086,053

 
51.8
%
 
670,205

 
35.1
%
 
178,180

 
60.0
%
Loans delinquent 31-60 days (c)
198,718

 
9.5

 
113,795

 
6.0

 
23,038

 
7.7

Loans delinquent 61-90 days (c)
124,244

 
5.9

 
79,691

 
4.2

 
18,552

 
6.3

Loans delinquent 91-120 days (c)
108,800

 
5.2

 
186,278

 
9.8

 
18,607

 
6.3

Loans delinquent 121-270 days (c)
405,732

 
19.3

 
633,001

 
33.1

 
43,743

 
14.8

Loans delinquent 271 days or greater (c)(d)
174,307

 
8.3

 
226,537

 
11.8

 
14,390

 
4.9

Total loans in repayment
2,097,854

 
100.0
%
 
1,909,507

 
100.0
%
 
296,510

 
100.0
%
Total rehabilitation loans
2,767,499

 
 

 
2,390,102

 
 

 
400,806

 
 
Total federally insured loans
$
26,050,203

 
 
 
$
24,969,846

 
 
 
$
24,332,709

 
 
 
(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.
Bonds and Notes payable (Tables)
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
 
As of December 31, 2013
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
23,479,893

 
0.25% - 6.90%
 
5/25/18 - 8/26/52
Bonds and notes based on auction or remarketing
1,134,250

 
0.07% - 2.17%
 
5/1/28 - 11/26/46
Total variable-rate bonds and notes
24,614,143

 
 
 
 
FFELP warehouse facilities
1,396,344

 
0.17% - 0.25%
 
1/17/16 - 6/12/16
Unsecured line of credit
45,000

 
1.67%
 
3/28/18
Unsecured debt - Junior Subordinated Hybrid Securities
96,457

 
3.62%
 
9/15/61
Other borrowings
61,401

 
1.67% - 5.10%
 
4/11/14 - 11/11/15
 
26,213,345

 
 
 
 
Discount on bonds and notes payable
(258,056
)
 
 
 
 
Total
$
25,955,289

 
 
 
 
 
 
As of December 31, 2012
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
21,185,140

 
0.32% - 6.90%
 
11/25/15 - 8/26/52
Bonds and notes based on auction or remarketing
969,925

 
0.15% - 2.14%
 
5/1/28 - 5/25/42
Total variable-rate bonds and notes
22,155,065

 
 
 
 
FFELP warehouse facilities
1,554,151

 
0.21% - 0.29%
 
1/31/15 - 6/30/15
Department of Education Conduit
1,344,513

 
0.82%
 
1/19/14
Unsecured line of credit
55,000

 
1.71%
 
2/17/16
Unsecured debt - Junior Subordinated Hybrid Securities
99,232

 
3.68%
 
9/15/61
Other borrowings
62,904

 
1.50% - 5.10%
 
11/14/13 - 11/11/15
 
25,270,865

 
 
 
 
Discount on bonds and notes payable
(172,030
)
 
 
 
 
Total
$
25,098,835

 
 
 
 

As of December 31, 2013, the Company had three FFELP warehouse facilities as summarized below.
 
 
NHELP-III
 
NHELP-II
 
NFSLW-I
 
Total
Maximum financing amount
 
$
750,000

 
500,000

 
500,000

 
1,750,000

Amount outstanding
 
577,918

 
339,359

 
479,067

 
1,396,344

Amount available
 
172,082

 
160,641

 
20,933

 
353,656

Expiration of liquidity provisions
 
January 16, 2014

(a)
February 28, 2014

(b)
June 12, 2014

 
 
Final maturity date
 
January 17, 2016

 
February 28, 2016

(b)
June 12, 2016

 
 
Maximum advance rates
 
92.2 - 95.0%

 
84.5 - 94.5%

 
92.0 - 98.0%

 
 
Minimum advance rates
 
92.2 - 95.0%

 
84.5 - 94.5%

 
84.0 - 90.0%

 
 
Advanced as equity support
 
$
34,762

 
31,676

 
22,073

 
88,511

(a) On January 13, 2014, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to February 5, 2015.
(b) On February 27, 2014, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to September 30, 2014, and to change the maturity date to September 30, 2016.
The following tables summarize the asset-backed securities transactions issued in 2013 and 2012.
 
 
Securitizations issued during the year ended December 31, 2013
 
 
2013-1
 
2013-2 (a)
 
2013-3
 
2013-4
 
2013-5 (a)
 
 
 
Total
Date securities issued
 
1/31/13

 
2/28/13

 
4/30/13

 
6/21/13

 
9/30/13

 
 
 
 
Total original principal amount
 
$
437,500

 
1,122,000

 
765,000

 
453,000

 
399,000

 
 
 
$
3,176,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class A senior notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
428,000

 
1,122,000

 
745,000

 
440,000

 
399,000

 
 
 
3,134,000

Bond discount
 

 
(3,325
)
 

 
(1,690
)
 
(4,881
)
 
 
 
(9,896
)
Issue price
 
$
428,000

 
1,118,675

 
745,000

 
438,310

 
394,119

 
 
 
3,124,104

Cost of funds (1-month LIBOR plus:)
 
0.60
%
 
0.50
%
 
0.50
%
 
0.50
%
 
0.63
%
 
 
 
 
Final maturity date
 
6/25/41

 
7/25/40

 
2/25/37

 
12/26/42

 
1/25/37

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class B subordinated notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
9,500

 
 
 
20,000

 
13,000

 
 
 
 
 
42,500

Bond discount
 
(1,525
)
 
 
 
(1,762
)
 
(1,804
)
 
 
 
 
 
(5,091
)
Issue price
 
$
7,975

 
 
 
18,238

 
11,196

 
 
 
 
 
37,409

Cost of funds (1-month LIBOR plus:)
 
1.50
%
 
 
 
1.50
%
 
1.50
%
 
 
 
 
 
 
Final maturity date
 
3/25/48

 
 
 
7/25/47

 
1/25/47

 
 
 
 
 
 

 
 
Securitizations issued during the year ended December 31, 2012
 
 
 
 
2012-1 (a)
 
2012-2 (a)
 
2012-3 (a)
 
2012-4
 
2012-5
 
2012-6
 
Total
Date securities issued
 
5/9/12

 
6/11/12

 
7/31/12

 
10/11/12

 
11/8/12

 
12/12/12

 


Total original principal amount
 
$
336,300


323,000


414,300


937,500

 
1,174,000

 
1,012,000

 
$
4,197,100

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Class A senior notes:
 
 
 
 
 
 
 
 
 
 
 
 
 

Total original principal amount
 
$
336,300

 
323,000

 
414,300

 
920,000

 
1,144,000

 
987,000

 
4,124,600

Bond discount
 

 
(3,609
)
 
(1,275
)
 

 
(7,642
)
 
(3,399
)
 
(15,925
)
Issue price
 
$
336,300

 
319,391

 
413,025

 
920,000

 
1,136,358

 
983,601

 
4,108,675

Cost of funds (1-month LIBOR plus:)
 
0.80
%
 
0.80
%
 
0.70
%
 
0.70
%
 
0.60
%
 
0.60
%
 


Final maturity date
 
12/27/39

 
12/26/33

 
3/26/40

 
9/27/38

 
10/27/36

 
3/27/45

 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class B subordinated notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
 
 
 
 
 
 
$
17,500

 
30,000

 
25,000

 
72,500

Bond discount
 
 
 
 
 
 
 
(4,900
)
 
(10,011
)
 
(6,937
)
 
(21,848
)
Issue price
 
 
 
 
 
 
 
$
12,600

 
19,989

 
18,063

 
50,652

Cost of funds (1-month LIBOR plus:)
 
 
 
 
 
 
 
1.00
%
 
1.00
%
 
1.50
%
 


Final maturity date
 
 
 
 
 
 
 
7/26/49

 
12/28/43

 
8/26/52

 



(a)
Total original principal amount excludes the Class B subordinated tranches for the 2012-1, 2012-2, 2012-3, 2013-2, and 2013-5 transactions totaling $7.6 million, $10.0 million, $10.0 million, $34.0 million, and $9.0 million, respectively, that were retained at issuance. As of December 31, 2013, the Company has a total of $85.5 million (par value) of its own Class B subordinated notes remaining from prior completed asset-backed securitizations that are not included in the Company's consolidated balance sheet. If the Company sells 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.

Bonds and notes outstanding as of December 31, 2013 are due in varying amounts as shown below.
2014
 
$
56,900

2015
 
4,501

2016
 
1,396,344

2017
 

2018
 
447,245

2019 and thereafter
 
24,308,355

 
 
$
26,213,345


Gain on Sale of Loans and Debt Repurchases Gain on Sale of Loans and Debt Repurchases (Tables)
Schedule of Other Nonoperating Income (Expense) [Table Text Block]
“Gain on sale of loans and debt repurchases” in the accompanying consolidated statements of income is composed of the following items:
 
Year ended December 31,
 
2013
 
2012
 
2011
Gain on sale of loans
$
33

 
116

 
1,378

Gain from debt repurchases (a)
11,666

 
4,023

 
6,962

 
$
11,699

 
4,139

 
8,340


(a)
The activity included in "Gain from debt repurchases" is detailed below:
 
Year ended December 31, 2013
 
Year ended December 31, 2012
 
Year ended December 31, 2011
 
Par value
 
Purchase
price
 
Gain
 
Par value
 
Purchase
price
 
Gain
 
Par value
 
Purchase
price
 
Gain
Hybrid Securities
$
2,775

 
2,080

 
695

 
1,465

 
1,140

 
325

 
62,558

 
55,651

 
6,907

Asset-backed securities
87,696

 
76,725

 
10,971

 
134,667

 
130,969

 
3,698

 
12,254

 
12,199

 
55

 
$
90,471

 
78,805

 
11,666

 
136,132

 
132,109

 
4,023

 
74,812

 
67,850

 
6,962



Derivative Financial Instruments (Tables)
The following table summarizes the Company’s 1:3 Basis Swaps outstanding:
 
 
 
 
As of December 31,
 
 
 
 
2013
 
2012
 
 
Maturity
 
Notional amount
 
Notional amount
 
 
2021
 
 
$
250,000

 
250,000

 
 
2022
 
 
1,900,000

 
1,900,000

 
 
2023
 
 
3,650,000

 
3,150,000

 
 
2024
 
 
250,000

 
250,000

 
 
2026
 
 
800,000

 
800,000

 
 
2028
 
 
100,000

 
100,000

 
 
2036
 
 
700,000

 
700,000

 
 
2039
(a)
 
150,000

 
150,000

 
 
2040
(b)
 
200,000

 
200,000

 
 
 
 
 
$
8,000,000

(c)
7,500,000

(c)
(a)This derivative has a forward effective start date in 2015.
(b)This derivative has a forward effective start date in 2020.
(c)
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2013 and 2012, was one-month LIBOR plus 3.5 basis points and one-month LIBOR plus 3.3 basis points, respectively.
The following tables summarize the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
 
 
 
As of December 31, 2013
 
As of December 31, 2012
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
 
 
2013
 
$

 
%
 
$
3,150,000

 
0.71
%
 
2014
 
1,750,000

 
0.71

 
1,750,000

 
0.71

 
2015
 
1,100,000

 
0.89

 
1,100,000

 
0.89

 
2016
 
750,000

 
0.85

 
750,000

 
0.85

 
2017
 
1,250,000

 
0.86

 
750,000

 
0.99

 
 
 
$
4,850,000

 
0.81
%
 
$
7,500,000

 
0.78
%
 
(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.
The Company had the following derivatives outstanding that are used to effectively convert the variable interest rate on the Hybrid Securities to a fixed rate of 7.66%.
 
 
 
As of December 31, 2013
 
As of December 31, 2012
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
25,000

 
4.28%
 
$
75,000

 
4.28
%
(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.
The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instruments.
 
Year ended December 31,
 
2013
 
2012
 
2011
Re-measurement of Euro Notes
$
(35,285
)
 
(19,561
)
 
32,706

Change in fair value of cross currency interest rate swaps
26,354

 
2,210

 
(14,287
)
Total impact to consolidated statements of income - income (expense) (a)
$
(8,931
)
 
(17,351
)
 
18,419


(a)
The financial statement impact of the above items is included in "Derivative market value and foreign currency adjustments and derivative settlements, net" in the Company's consolidated statements of income.
The following table summarizes the fair value of the Company’s derivatives as reflected on the consolidated balance sheet.
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of
 
As of
 
As of
 
As of
 
December 31, 2013
 
December 31, 2012
 
December 31, 2013
 
December 31, 2012
1:3 basis swaps
$
18,490

 
12,239

 

 
1,215

Interest rate swaps - floor income hedges
7,183

 

 
15,849

 
45,913

Interest rate swaps - hybrid debt hedges

 

 
2,119

 
23,762

Cross-currency interest rate swaps
36,834

 
82,841

 

 

Other

 
2,361

 

 

Total
$
62,507

 
97,441

 
17,968

 
70,890

The following tables include the gross amounts related to the Company's derivative portfolio recognized in the consolidated balance sheets, reconciled to the net amount when excluding derivatives subject to enforceable master netting arrangements and cash collateral received/pledged:

 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative assets
 
Gross amounts of recognized assets presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral received (a)
 
Net asset (liability)
Balance as of December 31, 2013
 
$
62,507

 
(15,437
)
 
(15,959
)
 
31,111

Balance as of December 31, 2012
 
97,441

 
(13,234
)
 
(19,993
)
 
64,214


 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative liabilities
 
Gross amounts of recognized liabilities presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral pledged (b)
 
Net asset (liability)
Balance as of December 31, 2013
 
$
(17,969
)
 
15,437

 
3,630

 
1,098

Balance as of December 31, 2012
 
(70,890
)
 
13,234

 
63,128

 
5,472


(a)
As of December 31, 2013 and December 31, 2012, the trustee for certain of the Company's asset-backed securitization transactions held $16.0 million and $20.0 million, respectively, of collateral from the counterparty on the cross-currency interest rate swaps.

(b)
As of December 31, 2013 and December 31, 2012, the Company had $3.6 million and $63.1 million, respectively, posted as collateral to derivative counterparties, which is included in “restricted cash and investments” in the Company's consolidated balance sheet.

The following table summarizes the effect of derivative instruments in the consolidated statements of income.
 
 
Year ended December 31,
 
 
2013
 
2012
 
2011
Settlements:
 
 

 
 

 
 
1:3 basis swaps
 
$
3,301

 
4,495

 
1,446

Interest rate swaps - floor income hedges
 
(31,022
)
 
(19,270
)
 
(20,246
)
Interest rate swaps - hybrid debt hedges
 
(1,670
)
 
(2,231
)
 
(744
)
Cross-currency interest rate swaps
 
(245
)
 
3,228

 
11,877

Other
 

 
(244
)
 
(173
)
Total settlements - (expense) income
 
(29,636
)
 
(14,022
)
 
(7,840
)
Change in fair value:
 
 

 
 

 
 

1:3 basis swaps
 
7,467

 
676

 
1,114

Interest rate swaps - floor income hedges
 
36,719

 
(35,215
)
 
(12,169
)
Interest rate swaps - hybrid debt hedges
 
12,997

 
1,717

 
(25,475
)
Cross-currency interest rate swaps
 
26,354

 
2,210

 
(14,287
)
Other
 
341

 
2,779

 
304

Total change in fair value - income (expense)
 
83,878

 
(27,833
)
 
(50,513
)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
 
(35,285
)
 
(19,561
)
 
32,706

Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense)
 
$
18,957

 
(61,416
)
 
(25,647
)
Investments (Tables)
A summary of the Company's investments and restricted investments follows:
 
As of December 31, 2013
 
As of December 31, 2012
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses (a)
 
Fair value
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investments :
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities (b)
$
171,931

 
7,111

 
(1,241
)
 
177,801

 
64,970

 
3,187

 
(179
)
 
67,978

Equity securities
1,502

 
1,783

 
(3
)
 
3,282

 
3,449

 
1,604

 
(180
)
 
4,873

Total available-for-sale investments
$
173,433

 
8,894

 
(1,244
)
 
181,083

 
68,419

 
4,791

 
(359
)
 
72,851

Trading investments :
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities
 
 
 
 
 
 
10,957

 
 
 
 
 
 
 
10,461

Total available-for-sale and trading investments
 
 
 
 
 
 
$
192,040

 
 
 
 
 
 
 
83,312

Restricted Investments (c):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts - held-to-maturity
 
 
 
 
 
 
$
7,285

 
 
 
 
 
 
 
8,830


(a)
As of December 31, 2013, the Company considered the decline in market value of its available-for-sale investments to be temporary in nature and did not consider any of its investments other-than-temporarily impaired.

(b)
As of December 31, 2013, the stated maturities of the Company's student loan asset-backed securities and other debt securities classified as available-for-sale are shown in the following table:
Year of Maturity:
Amortized cost
 
Fair value
Within 1 year
$

 

1-5 years
418

 
418

6-10 years
57

 
57

After 10 years
171,456

 
177,326

Total
$
171,931

 
177,801



(c)
Restricted investments are included in "restricted cash and investments" in the Company's consolidated balance sheets. The Company's restricted investments include cash balances that the Company's indentured securitization trusts deposit in guaranteed investment contracts that are held for the related note holders. These investments are classified as held-to-maturity and the Company accounts for them at amortized cost, which approximates fair value.
    
As of December 31, 2013, the stated maturities of the Company's restricted investments, which are classified as held-to-maturity, are shown in the following table.
Year of Maturity:
 
Within 1 year
$

1-5 years
5,084

6-10 years

After 10 years
2,201

Total
$
7,285

As of December 31, 2013, the stated maturities of the Company's student loan asset-backed securities and other debt securities classified as available-for-sale are shown in the following table:
Year of Maturity:
Amortized cost
 
Fair value
Within 1 year
$

 

1-5 years
418

 
418

6-10 years
57

 
57

After 10 years
171,456

 
177,326

Total
$
171,931

 
177,801

As of December 31, 2013, the stated maturities of the Company's restricted investments, which are classified as held-to-maturity, are shown in the following table.
Year of Maturity:
 
Within 1 year
$

1-5 years
5,084

6-10 years

After 10 years
2,201

Total
$
7,285

The following table summarizes the amount included in "other income" in the consolidated statements of income related to the Company's investments classified as available-for-sale and trading.
 
 
Year ended December 31,
 
 
2013
 
2012
 
2011
Available-for-sale securities:
 
 
 
 
 
 
Gross realized gains
 
$
6,270

 
6,120

 

Gross realized losses
 
(332
)
 
(322
)
 

Trading securities:
 
 
 
 
 
 
Unrealized gains (losses), net
 
221

 
254

 
430

Realized gains (losses), net
 
5

 
1,459

 
2,753

 
 
$
6,164

 
7,511

 
3,183

The amounts reclassified from accumulated other comprehensive income related to the realized gains and losses on available-for-sale-securities is summarized below.
 
 
Year ended December 31,
Affected line item in the consolidated statements of income - income (expense):
 
2013
 
2012
 
2011
Other income
 
$
5,938

 
5,798

 

Income tax expense
 
(2,197
)
 
(2,145
)
 

Net income
 
$
3,741

 
3,653

 

Goodwill Goodwill (Tables)
Schedule of Goodwill
Goodwill by operating segment consists of the following:
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment Services
 
Asset Generation and Management (a)
 
Total
Balance as of December 31, 2011, 2012, and 2013
$
8,596

 
58,086

 
8,553

 
41,883

 
117,118


(a)
As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans and net interest income of 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. Other than the Asset Generation and Management reporting unit, 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.
Property and Equipment Property and Equipment (Tables)
Property, Plant and Equipment [Table Text Block]
Property and equipment consisted of the following:
 
 
 
As of December 31,
 
Useful life
 
2013
 
2012
Computer equipment and software
1-5 years
 
$
77,733

 
72,595

Office furniture and equipment
3-7 years
 
9,843

 
9,583

Leasehold improvements
1-15 years
 
3,618

 
6,502

Transportation equipment
10 years
 
7,398

 
3,610

Building and building improvements
5-39 years
 
10,366

 
9,711

Land
 
700

 
700

 
 
 
109,658

 
102,701

Accumulated depreciation
 
 
75,829

 
70,832

 
 
 
$
33,829

 
31,869

Shareholders' Equity Shareholders' Equity (Tables)
Stock Repurchases [Table Text Block]
Shares repurchased by the Company during 2013, 2012, and 2011 are shown in the table below.
 
 
Total shares repurchased
 
Purchase price (in thousands)
 
Average price of shares repurchased (per share)
Year ended December 31, 2013
 
393,259

 
$
13,136

 
$
33.40

Year ended December 31, 2012
 
806,023

 
22,814

 
28.30

Year ended December 31, 2011
 
1,436,423

 
27,134

 
18.89

Earnings per Common Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
 
Year ended December 31,
 
2013
 
2012
 
2011
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
300,043

 
2,629

 
302,672

 
176,647

 
1,350

 
177,997

 
203,077

 
1,258

 
204,335

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,165,785

 
404,529

 
46,570,314

 
47,010,034

 
359,297

 
47,369,331

 
47,860,824

 
296,579

 
48,157,403

Earnings per share - basic and diluted
$
6.50

 
6.50

 
6.50

 
3.76

 
3.76

 
3.76

 
4.24

 
4.24

 
4.24

Income Taxes Income Taxes (Tables)
As of December 31, 2013, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $19.1 million which is included in “other liabilities” on the consolidated balance sheet. Of this total, $12.4 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 $2.2 million prior to December 31, 2014 as a result of a lapse of applicable statute 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 $2.2 million anticipated decrease, $1.4 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,
 
2013
 
2012
Gross balance - beginning of year
$
29,568

 
21,794

Additions based on tax positions of prior years
996

 
9,493

Additions based on tax positions related to the current year
3,812

 
4,367

Settlements with taxing authorities
(7,470
)
 

Reductions for tax positions of prior years
(6,470
)
 
(5,738
)
Reductions based on tax positions related to the current year
(272
)
 

Reductions due to lapse of applicable statute of limitations
(1,023
)
 
(348
)
Gross balance - end of year
$
19,141

 
29,568


All of the reductions due to the lapse of statute of limitations and for prior year tax positions shown above impacted the effective tax rate
The provision for income taxes consists of the following components:
 
Year ended December 31,
 
2013
 
2012
 
2011
Current:
 
 
 
 
 
Federal
$
153,756

 
118,490

 
123,737

State
4,776

 
1,383

 
1,354

Foreign
122

 
33

 
87

Total current provision
158,654

 
119,906

 
125,178

 
 
 
 
 
 
Deferred:
 
 
 
 
 
Federal
1,676

 
(23,460
)
 
(6,606
)
State
868

 
(358
)
 
(1,116
)
Foreign
(5
)
 
(11
)
 
(4
)
Total deferred provision (benefit)
2,539

 
(23,829
)
 
(7,726
)
Provision for income tax expense
$
161,193

 
96,077

 
117,452

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,
 
2013
 
2012
 
2011
Tax expense at federal rate
35.0
  %
 
35.0
  %
 
35.0
  %
Increase (decrease) resulting from:
 
 
 
 
 
State tax, net of federal income tax benefit
0.8

 
0.5

 
0.9

Provision of uncertain federal and state tax matters
(0.6)

 
0.2

 
1.1

Tax credits
(0.4)

 
(0.6)

 
(0.4)

Valuation allowance

 

 
(0.3)

Other

 
(0.1)

 
0.2

Effective tax rate
34.8
  %
 
35.0
  %
 
36.5
  %
The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following:
 
As of As of December 31,
 
2013
 
2012
Deferred tax assets:
 
 
 
Student loans
$
25,967

 
26,612

Intangible assets
23,675

 
29,812

Securitizations
10,407

 

Accrued expenses
4,162

 
3,739

Stock compensation
1,608

 
1,317

Deferred revenue
777

 
987

Basis in certain derivative contracts

 
14,178

Other
28

 
982

Total gross deferred tax assets
66,624

 
77,627

Less valuation allowance
(239
)
 
(137
)
Net deferred tax assets
66,385

 
77,490

Deferred tax liabilities:
 
 
 
Debt repurchases
32,286

 
32,866

Loan origination services
23,750

 
27,554

Depreciation
4,673

 
4,770

Unrealized gain on debt and equity securities
2,830

 
1,619

Basis in certain derivative contracts
2,137

 

Total gross deferred tax liabilities
65,676

 
66,809

Net deferred tax asset (liability)
$
709

 
10,681

Segment Reporting (Tables)
Schedule of Segment Reporting Information, by Segment
 
Year ended December 31, 2013
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
40

 

 

 
40

 
638,604

 
9,433

 
(3,267
)
 
644,810

Interest expense

 

 

 

 
229,533

 
4,669

 
(3,267
)
 
230,935

Net interest income (loss)
40

 

 

 
40

 
409,071

 
4,764

 

 
413,875

Less provision for loan losses

 

 

 

 
18,500

 

 

 
18,500

Net interest income (loss) after provision for loan losses
40

 

 

 
40

 
390,571

 
4,764

 

 
395,375

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
243,428

 

 

 
243,428

 

 

 

 
243,428

Intersegment servicing revenue
56,744

 

 

 
56,744

 

 

 
(56,744
)
 

Tuition payment processing and campus commerce revenue

 
80,682

 

 
80,682

 

 

 

 
80,682

Enrollment services revenue

 

 
98,078

 
98,078

 

 

 

 
98,078

Other income

 

 

 

 
15,223

 
32,218

 
(1,143
)
 
46,298

Gain on sale of loans and debt repurchases

 

 

 

 
11,004

 
695

 

 
11,699

Derivative market value and foreign currency adjustments, net

 

 

 

 
35,256

 
13,337

 

 
48,593

Derivative settlements, net

 

 

 

 
(27,966
)
 
(1,670
)
 

 
(29,636
)
Total other income (expense)
300,172

 
80,682

 
98,078

 
478,932

 
33,517

 
44,580

 
(57,887
)
 
499,142

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
119,092

 
37,575

 
19,296

 
175,963

 
2,292

 
17,914

 

 
196,169

Cost to provide enrollment services

 

 
64,961

 
64,961

 

 

 

 
64,961

Depreciation and amortization
11,419

 
4,518

 
232

 
16,169

 

 
2,142

 

 
18,311

Other
79,116

 
9,147

 
6,084

 
94,347

 
30,945

 
25,393

 
(1,143
)
 
149,542

Intersegment expenses, net
4,359

 
5,989

 
4,588

 
14,936

 
57,572

 
(15,764
)
 
(56,744
)
 

Total operating expenses
213,986

 
57,229

 
95,161

 
366,376

 
90,809

 
29,685

 
(57,887
)
 
428,983

Income (loss) before income taxes and corporate overhead allocation
86,226

 
23,453

 
2,917

 
112,596

 
333,279

 
19,659

 

 
465,534

Corporate overhead allocation
(6,150
)
 
(1,957
)
 
(1,943
)
 
(10,050
)
 
(3,896
)
 
13,946

 

 

Income (loss) before income taxes
80,076

 
21,496

 
974

 
102,546

 
329,383

 
33,605

 

 
465,534

Income tax (expense) benefit
(30,430
)
 
(8,168
)
 
(369
)
 
(38,967
)
 
(125,165
)
 
2,939

 

 
(161,193
)
Net income (loss)
49,646

 
13,328

 
605

 
63,579

 
204,218

 
36,544

 

 
304,341

  Net income attributable to noncontrolling interest

 

 

 

 

 
1,669

 

 
1,669

Net income attributable to Nelnet, Inc.
$
49,646

 
13,328

 
605

 
63,579

 
204,218

 
34,875

 

 
302,672

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
84,986

 
219,064

 
34,791

 
338,841

 
27,387,461

 
391,168

 
(346,621
)
 
27,770,849

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2012
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
53

 
8

 

 
61

 
610,194

 
7,305

 
(3,707
)
 
613,853

Interest expense

 

 

 

 
263,788

 
8,485

 
(3,707
)
 
268,566

Net interest income (loss)
53

 
8

 

 
61

 
346,406

 
(1,180
)
 

 
345,287

Less provision for loan losses

 

 

 

 
21,500

 

 

 
21,500

Net interest income (loss) after provision for loan losses
53

 
8

 

 
61

 
324,906

 
(1,180
)
 

 
323,787

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
209,748

 

 

 
209,748

 

 

 

 
209,748

Intersegment servicing revenue
65,376

 

 

 
65,376

 

 

 
(65,376
)
 

Tuition payment processing and campus commerce revenue

 
74,410

 

 
74,410

 

 

 

 
74,410

Enrollment services revenue

 

 
117,925

 
117,925

 

 

 

 
117,925

Other income

 

 

 

 
18,219

 
21,257

 

 
39,476

Gain on sale of loans and debt repurchases

 

 

 

 
3,814

 
325

 

 
4,139

Derivative market value and foreign currency adjustments, net

 

 

 

 
(51,809
)
 
4,415

 

 
(47,394
)
Derivative settlements, net

 

 

 

 
(11,792
)
 
(2,230
)
 

 
(14,022
)
Total other income (expense)
275,124

 
74,410

 
117,925

 
467,459

 
(41,568
)
 
23,767

 
(65,376
)
 
384,282

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
115,126

 
34,314

 
22,816

 
172,256

 
2,252

 
18,318

 

 
192,826

Cost to provide enrollment services

 

 
78,375

 
78,375

 

 

 

 
78,375

Depreciation and amortization
18,415

 
7,240

 
6,491

 
32,146

 

 
1,479

 

 
33,625

Other
70,505

 
10,439

 
10,416

 
91,360

 
16,435

 
20,943

 

 
128,738

Intersegment expenses, net
5,280

 
5,383

 
3,768

 
14,431

 
66,215

 
(15,270
)
 
(65,376
)
 

Total operating expenses
209,326

 
57,376

 
121,866

 
388,568

 
84,902

 
25,470

 
(65,376
)
 
433,564

Income (loss) before income taxes and corporate overhead allocation
65,851

 
17,042

 
(3,941
)
 
78,952

 
198,436

 
(2,883
)
 

 
274,505

Corporate overhead allocation
(5,904
)
 
(1,968
)
 
(1,968
)
 
(9,840
)
 
(5,306
)
 
15,146

 

 

Income (loss) before income taxes
59,947

 
15,074

 
(5,909
)
 
69,112

 
193,130

 
12,263

 

 
274,505

Income tax (expense) benefit
(22,780
)
 
(5,728
)
 
2,244

 
(26,264
)
 
(73,387
)
 
3,574

 

 
(96,077
)
Net income (loss)
37,167

 
9,346

 
(3,665
)
 
42,848

 
119,743

 
15,837

 

 
178,428

  Net income attributable to noncontrolling interest

 

 

 

 

 
431

 

 
431

Net income (loss) attributable to Nelnet, Inc.
$
37,167

 
9,346

 
(3,665
)
 
42,848

 
119,743

 
15,406

 

 
177,997

Total assets
$
90,959

 
150,600

 
53,902

 
295,461

 
26,463,551

 
207,003

 
(358,120
)
 
26,607,895

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2011
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
58

 
21

 

 
79

 
590,736

 
5,074

 
(3,035
)
 
592,854

Interest expense

 

 

 

 
221,675

 
9,649

 
(3,035
)
 
228,289

Net interest income (loss)
58

 
21

 

 
79

 
369,061

 
(4,575
)
 

 
364,565

Less provision for loan losses

 

 

 

 
21,250

 

 

 
21,250

Net interest income (loss) after provision for loan losses
58

 
21

 

 
79

 
347,811

 
(4,575
)
 

 
343,315

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
175,657

 

 

 
175,657

 

 

 

 
175,657

Intersegment servicing revenue
69,037

 

 

 
69,037

 

 

 
(69,037
)
 

Tuition payment processing and campus commerce revenue

 
67,797

 

 
67,797

 

 

 

 
67,797

Enrollment services revenue

 

 
130,470

 
130,470

 

 

 

 
130,470

Other income

 

 

 

 
15,416

 
14,097

 

 
29,513

Gain on sale of loans and debt repurchases

 

 

 

 
1,433

 
6,907

 

 
8,340

Derivative market value and foreign currency adjustments, net

 

 

 

 
7,571

 
(25,378
)
 

 
(17,807
)
Derivative settlements, net

 

 

 

 
(7,228
)
 
(612
)
 

 
(7,840
)
Total other income (expense)
244,694

 
67,797

 
130,470

 
442,961

 
17,192

 
(4,986
)
 
(69,037
)
 
386,130

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
102,878

 
30,070

 
25,155

 
158,103

 
2,791

 
17,057

 

 
177,951

Cost to provide enrollment services

 

 
86,548

 
86,548

 

 

 

 
86,548

Depreciation and amortization
15,313

 
6,179

 
6,854

 
28,346

 

 
1,398

 

 
29,744

Other
60,442

 
10,192

 
9,425

 
80,059

 
13,381

 
19,975

 

 
113,415

Intersegment expenses, net
4,776

 
4,714

 
3,521

 
13,011

 
70,018

 
(13,992
)
 
(69,037
)
 

Total operating expenses
183,409

 
51,155

 
131,503

 
366,067

 
86,190

 
24,438

 
(69,037
)
 
407,658

Income (loss) before income taxes and corporate overhead allocation
61,343

 
16,663

 
(1,033
)
 
76,973

 
278,813

 
(33,999
)
 

 
321,787

Corporate overhead allocation
(4,138
)
 
(1,379
)
 
(1,379
)
 
(6,896
)
 
(6,896
)
 
13,792

 

 

Income (loss) before income taxes
57,205

 
15,284

 
(2,412
)
 
70,077

 
271,917

 
(20,207
)
 

 
321,787

Income tax (expense) benefit
(21,736
)
 
(5,807
)
 
917

 
(26,626
)
 
(103,327
)
 
12,501

 

 
(117,452
)
Net income (loss)
35,469

 
9,477

 
(1,495
)
 
43,451

 
168,590

 
(7,706
)
 

 
204,335

  Net income attributable to noncontrolling interest

 

 

 

 

 

 

 

Net income (loss) attributable to Nelnet, Inc.
$
35,469

 
9,477

 
(1,495
)
 
43,451

 
168,590

 
(7,706
)
 

 
204,335

Total assets
$
123,307

 
157,444

 
45,738

 
326,489

 
25,821,806

 
24,735

 
(320,813
)
 
25,852,217

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Leases Operating Leases (Tables)
Operating Leases of Lessee Disclosure [Table Text Block]
Minimum future rentals, as of December 31, 2013, under noncancelable operating leases are shown below:
2014
$
5,889

2015
3,446

2016
2,512

2017
1,380

2018
1,071

2019 and thereafter
2,256

 
$
16,554

Stock Based Compensation Plan Stock Based Compensation (Tables)
The following table summarizes restricted stock activity:
 
Year ended December 31,
 
2013
 
2012
 
2011
Non-vested shares at beginning of year
378,671

 
285,718

 
311,119

Granted
131,933

 
168,833

 
82,845

Vested
(62,491
)
 
(41,089
)
 
(54,184
)
Canceled
(41,062
)
 
(34,791
)
 
(54,062
)
Non-vested shares at end of year
407,051

 
378,671

 
285,718

As of December 31, 2013, there was $5.8 million of unrecognized compensation cost included in “additional paid-in capital” on the consolidated balance sheet related to restricted stock, which is expected to be recognized as compensation expense as shown in the table below.
2014
$
2,305

2015
1,449

2016
904

2017
492

2018
271

2019 and thereafter
406

 
$
5,827

The following table provides the number of shares awarded under this plan for the years ended December 31, 2013, 2012, and 2011.

 
Shares issued - not deferred
 
Shares- deferred
 
Total
Year ended December 31, 2013
10,156

 
5,279

 
15,435

Year ended December 31, 2012
16,561

 
16,700

 
33,261

Year ended December 31, 2011
13,059

 
20,843

 
33,902

Fair Value (Tables)
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, 2013.
 
As of December 31, 2013
 
As of December 31, 2012
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments: (a)
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed securities
$

 
188,279

 
188,279

 

 
77,652

 
77,652

Equity securities
3,282

 

 
3,282

 
4,873

 

 
4,873

Debt securities
479

 

 
479

 
787

 

 
787

      Total investments
3,761

 
188,279

 
192,040

 
5,660

 
77,652

 
83,312

Fair value of derivative instruments (b)

 
62,507

 
62,507

 

 
97,441

 
97,441

      Total assets
$
3,761

 
250,786

 
254,547

 
5,660

 
175,093

 
180,753

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Fair value of derivative instruments (b):
$

 
17,969

 
17,969

 

 
70,890

 
70,890

      Total liabilities
$

 
17,969

 
17,969

 

 
70,890

 
70,890


(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. 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)
All derivatives are accounted for at fair value on a recurring basis.  The fair value of derivative financial instruments is determined using a market approach in which derivative pricing models use the stated terms of the contracts and observable yield curves, forward foreign currency exchange rates, and volatilities from active markets.  

When determining the fair value of derivatives, the Company takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held. The net exposures for each counterparty are adjusted based on market information available for the specific counterparty.
The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:

 
As of December 31, 2013
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
26,641,383

 
25,907,589

 

 

 
26,641,383

Cash and cash equivalents
63,267

 
63,267

 
63,267

 

 

Investments
192,040

 
192,040

 
3,761

 
188,279

 

Restricted cash
727,838

 
727,838

 
727,838

 

 

Restricted cash – due to customers
167,576

 
167,576

 
167,576

 

 

Restricted investments
7,285

 
7,285

 
7,285

 

 

Accrued interest receivable
314,553

 
314,553

 

 
314,553

 

Derivative instruments
62,507

 
62,507

 

 
62,507

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
25,577,250

 
25,955,289

 

 
25,577,250

 

Accrued interest payable
21,725

 
21,725

 

 
21,725

 

Due to customers
167,576

 
167,576

 
167,576

 

 

Derivative instruments
17,969

 
17,969

 

 
17,969

 


 
As of December 31, 2012
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
25,418,623

 
24,830,621

 

 

 
25,418,623

Cash and cash equivalents
66,031

 
66,031

 
66,031

 

 

Investments
83,312

 
83,312

 
5,660

 
77,652

 

Restricted cash
806,632

 
806,632

 
806,632

 

 

Restricted cash – due to customers
96,516

 
96,516

 
96,516

 

 

Restricted investments
8,830

 
8,830

 
8,830

 

 

Accrued interest receivable
307,518

 
307,518

 

 
307,518

 

Derivative instruments
97,441

 
97,441

 

 
97,441

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
24,486,008

 
25,098,835

 

 
24,486,008

 

Accrued interest payable
14,770

 
14,770

 

 
14,770

 

Due to customers
96,516

 
96,516

 
96,516

 

 

Derivative instruments
70,890

 
70,890

 

 
70,890

 

Quarterly Financial Information Quarterly Financial Information (Tables)
Schedule of Quarterly Financial Information [Table Text Block]
 
2013
 
First quarter
 
Second quarter
 
Third quarter
 
Fourth quarter
Net interest income
$
98,798

 
101,419

 
104,922

 
108,736

Less provision for loan losses
5,000

 
5,000

 
5,000

 
3,500

Net interest income after provision for loan losses
93,798

 
96,419

 
99,922

 
105,236

Loan and guaranty servicing revenue
55,601

 
60,078

 
64,582

 
63,167

Tuition payment processing and campus commerce revenue
23,411

 
18,356

 
19,927

 
18,988

Enrollment services revenue
28,957

 
24,823

 
22,563

 
21,735

Other income
9,416

 
12,288

 
8,613

 
15,981

Gain on sale of loans and debt repurchases
1,407

 
7,355

 
2,138

 
799

Derivative market value and foreign currency adjustments and derivative settlements, net
1,072

 
40,188

 
(16,648
)
 
(5,655
)
Salaries and benefits
(47,905
)
 
(47,432
)
 
(48,712
)
 
(52,120
)
Cost to provide enrollment services
(19,642
)
 
(16,787
)
 
(14,668
)
 
(13,864
)
Depreciation and amortization
(4,377
)
 
(4,320
)
 
(4,340
)
 
(5,274
)
Operating expenses - other
(34,941
)
 
(34,365
)
 
(39,887
)
 
(40,349
)
Income tax expense
(38,447
)
 
(54,746
)
 
(30,444
)
 
(37,556
)
Net income
68,350

 
101,857

 
63,046

 
71,088

Net income attributable to noncontrolling interest
271

 
614

 
216

 
568

Net income attributable to Nelnet, Inc.
$
68,079

 
101,243

 
62,830

 
70,520

Earnings per common share:
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$
1.46

 
2.17

 
1.35

 
1.52

 
2012
 
First quarter
 
Second quarter
 
Third quarter
 
Fourth quarter
Net interest income
$
84,856

 
84,567

 
85,266

 
90,598

Less provision for loan losses
6,000

 
7,000

 
5,000

 
3,500

Net interest income after provision for loan losses
78,856

 
77,567

 
80,266

 
87,098

Loan and guaranty servicing revenue
49,488

 
52,391

 
53,285

 
54,584

Tuition payment processing and campus commerce revenue
21,913

 
16,834

 
17,928

 
17,735

Enrollment services revenue
31,664

 
29,710

 
30,661

 
25,890

Other income
10,954

 
8,800

 
12,699

 
7,023

Gain on sale of loans and debt repurchases

 
935

 
195

 
3,009

Derivative market value and foreign currency adjustments and derivative settlements, net
(15,180
)
 
(21,618
)
 
(31,275
)
 
6,657

Salaries and benefits
(49,095
)
 
(48,703
)
 
(46,395
)
 
(48,633
)
Cost to provide enrollment services
(21,678
)
 
(20,374
)
 
(20,151
)
 
(16,172
)
Depreciation and amortization
(8,136
)
 
(8,226
)
 
(8,402
)
 
(8,861
)
Operating expenses - other
(32,263
)
 
(30,908
)
 
(29,989
)
 
(35,578
)
Income tax expense
(23,230
)
 
(14,878
)
 
(21,870
)
 
(36,099
)
Net income
43,293

 
41,530

 
36,952

 
56,653

Net income attributable to noncontrolling interest
152

 
136

 
124

 
19

Net income attributable to Nelnet, Inc.
$
43,141

 
$
41,394

 
$
36,828

 
$
56,634

Earnings per common share:
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$
0.91

 
0.87

 
0.78

 
1.20

Condensed Parent Only Financial Statements Condensed Parent Only Financial Statements (Tables)
Balance Sheets
(Parent Company Only)
As of December 31, 2013 and 2012
 
2013
 
2012
Assets:
 
 
 
Cash and cash equivalents
$
24,032

 
12,124

Investments
175,887

 
67,564

Investment in subsidiary debt
233,095

 
155,613

Restricted cash
3,763

 
63,258

Investment in subsidiaries
957,676

 
915,148

Other assets
272,910

 
237,379

Fair value of derivative instruments
25,673

 
14,600

Total assets
$
1,693,036

 
1,465,686

Liabilities:
 
 
 
Notes payable
$
191,457

 
204,232

Other liabilities
39,620

 
25,351

Fair value of derivative instruments
17,969

 
70,890

Total liabilities
249,046

 
300,473

Equity:
 
 
 
Nelnet, Inc. shareholders' equity:
 
 
 
Common stock
464

 
466

Additional paid-in capital
24,887

 
32,540

Retained earnings
1,413,492

 
1,129,389

Accumulated other comprehensive earnings
4,819

 
2,813

Total Nelnet, Inc. shareholders' equity
1,443,662

 
1,165,208

Noncontrolling interest
328

 
5

Total equity
1,443,990

 
1,165,213

Total liabilities and shareholders' equity
$
1,693,036

 
1,465,686

Statements of Income
(Parent Company Only)
Years ended December 31, 2013, 2012, and 2011
 
 
2013
 
2012
 
2011
Investment interest
 
$
7,911

 
5,186

 
4,132

Interest on bonds and notes payable
 
4,433

 
3,607

 
1,162

Net interest income
 
3,478

 
1,579

 
2,970

Other income (expense):
 
 

 
 
 
 
Other income
 
7,112

 
8,010

 
4,304

Gain from debt repurchases
 
11,905

 
4,487

 
7,255

Equity in subsidiaries income
 
275,989

 
224,011

 
256,299

Derivative market value adjustments and derivative settlements, net
 
28,134

 
(47,262
)
 
(55,911
)
Total other income
 
323,140

 
189,246

 
211,947

Operating expenses
 
5,626

 
1,867

 
6,634

Income before income taxes
 
320,992

 
188,958

 
208,283

Income tax expense
 
(16,651
)
 
(10,530
)
 
(3,948
)
Net income
 
304,341

 
178,428

 
204,335

Net income attributable to noncontrolling interest
 
1,669

 
431

 

Net income attributable to Nelnet, Inc.
 
$
302,672

 
177,997

 
204,335

Statements of Cash Flows
(Parent Company Only)
Years ended December 31, 2013, 2012, and 2011
 
2013
 
2012
 
2011
Net income attributable to Nelnet, Inc.
$
302,672

 
177,997

 
204,335

Net income attributable to noncontrolling interest
1,669

 
431

 

Net income
304,341

 
178,428

 
204,335

Adjustments to reconcile income to net cash provided by operating activities:
 
 
 
 
 
Derivative market value adjustment
(57,525
)
 
30,041

 
36,226

(Payments) proceeds to terminate and/or amend derivative instruments, net
(6,469
)
 
(6,005
)
 
3,365

Gain from debt repurchases
(11,905
)
 
(4,487
)
 
(7,255
)
Equity in earnings of subsidiaries
(275,989
)
 
(224,011
)
 
(256,299
)
Gain from sale of available-for-sale securities, net
(5,938
)
 
(5,798
)
 

Other
4,119

 
3,218

 
8,219

Decrease in other assets
209,896

 
169,256

 
341,412

Increase (decrease) in other liabilities
16,205

 
(38,971
)
 
14,126

Net cash provided by operating activities
176,735

 
101,671

 
344,129

Cash flows from investing activities:
 
 
 
 
 
Decrease (increase) in restricted cash
59,495

 
(29,082
)
 
(3,083
)
Contingency payment related to business combination

 

 
(5,893
)
Purchases of available-for-sale securities
(217,415
)
 
(186,727
)
 

Proceeds from sales of available-for-sale securities
116,337

 
162,533

 

Purchase of subsidiary debt, net
(66,272
)
 
(6,584
)
 
108,334

Purchases of other investments, net
(11,758
)
 

 

Net cash (used in) provided by investing activities
(119,613
)
 
(59,860
)
 
99,358

Cash flows from financing activities:
 
 
 
 
 
Payments on notes payable
(147,080
)
 
(109,748
)
 
(440,913
)
Payments on notes payable due to a related party

 

 
(107,050
)
Proceeds from issuance of notes payable
135,000

 
153,380

 

Payments of debt issuance costs
(644
)
 
(1,111
)
 

Dividends paid
(18,569
)
 
(66,237
)
 
(17,763
)
Repurchases of common stock
(13,136
)
 
(22,763
)
 
(27,134
)
Proceeds from issuance of common stock
561

 
480

 
512

Payments received on employee stock notes receivable

 
1,140

 
30

Issuance of noncontrolling interest
5

 
5

 

Distribution made to noncontrolling interest
(1,351
)
 
(431
)
 

Net cash used in financing activities
(45,214
)
 
(45,285
)
 
(592,318
)
Net increase (decrease) in cash and cash equivalents
11,908

 
(3,474
)
 
(148,831
)
Cash and cash equivalents, beginning of year
12,124

 
15,598

 
164,429

Cash and cash equivalents, end of year
$
24,032

 
12,124

 
15,598

 
 
 
 
 
 
Student Loans Receivable and Allowance for Loan Losses Allowance for Loan Losses Table (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
$ 26,121,306 
$ 24,995,880 
 
 
Allowance for loan losses
55,122 
51,902 
48,482 
43,626 
Student loans receivable, net
25,907,589 
24,830,621 
 
 
Federally insured student loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
26,050,203 
24,969,846 
 
 
Allowance for loan losses
43,440 
40,120 
37,205 
 
Non-federally insured student loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
71,103 
26,034 
 
 
Allowance for loan losses
11,682 
11,782 
11,277 
 
held for investment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
158,595 1
113,357 1
 
 
held for investment [Member] |
Federally insured student loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Allowance for loan losses
43,440 
40,120 
 
 
held for investment [Member] |
Non-federally insured student loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Allowance for loan losses
11,682 
11,782 
 
 
held for investment [Member] |
Stafford and other [Member] |
Federally insured student loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
6,686,626 
7,261,114 
 
 
held for investment [Member] |
Consolidation [Member] |
Federally insured student loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
19,363,577 
17,708,732 
 
 
Non-accretable discount [Member] |
held for investment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
$ 20,200 
$ 17,800 
 
 
[1] For loans purchased where there is evidence of credit deterioration since the origination of the loan, the Company records a credit discount, separate from the allowance for loan losses, which is non-accretable to interest income. Remaining discounts and premiums for purchased loans are recognized in interest income over the remaining estimated lives of the loans. The Company continues to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine the need for any additional allowance for loan losses. At December 31, 2013 and 2012, "loan discount, net of unamortized loan premiums and deferred origination costs" included $20.2 million and $17.8 million, respectively, of non-accretable discount associated with purchased loans.
Student Loans Receivable and Allowance for Loan Losses Student Loans Receivable and Allowance for Loan Losses Loan Acquisition (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
As of July 8, 2011 regarding purchase of residual interest [Member]
Dec. 31, 2011
SLIMS Trust [Member]
Dec. 31, 2013
October 31, 2013 Purchase of residual interest [Member]
Dec. 31, 2013
Other borrowings [Member]
Dec. 31, 2012
Other borrowings [Member]
Dec. 31, 2012
Other borrowings [Member]
Fixed-rate [Member]
Dec. 31, 2013
Non-Federally Insured Loans Sold Subject to Repurchase Agreement [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
 
 
 
Student loans receivable
$ 25,907,589,000 
$ 24,830,621,000 
 
 
 
 
 
 
$ 63,600,000 
Financing Receivable, Significant Purchases
 
 
1,900,000,000 
 
1,600,000,000 
 
 
 
 
Debt and Capital Lease Obligations
25,955,289,000 
25,098,835,000 
1,900,000,000 
46,200,000 
1,600,000,000 
61,401,000 
62,904,000 
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
5.72% 
 
 
 
 
 
Paid in full
 
 
 
 
 
 
 
In December 2012, these notes were paid in full.  
 
Student loan fair value discount
 
 
153,900,000 
 
52,900,000 
 
 
 
 
Debt Instrument, Unamortized Discount
 
 
$ 174,900,000 
 
$ 91,800,000 
 
 
 
 
Student Loans Receivable and Allowance for Loan Losses Allowance for Loan Losses (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses - balance
 
 
 
$ 51,902 
 
 
 
$ 48,482 
$ 51,902 
$ 48,482 
$ 43,626 
Provision for loan losses
(3,500)
(5,000)
(5,000)
(5,000)
(3,500)
(5,000)
(7,000)
(6,000)
(18,500)
(21,500)
(21,250)
Charge-offs
 
 
 
 
 
 
 
 
(19,271)
(24,725)
(21,313)
Allowance for loan losses - balance
55,122 
 
 
 
51,902 
 
 
 
55,122 
51,902 
48,482 
Allocation of the Allowance for Loan Losses:
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
55,122 
 
 
 
51,902 
 
 
 
55,122 
51,902 
48,482 
Federally insured loans [Member]
 
 
 
 
 
 
 
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses - balance
 
 
 
40,120 
 
 
 
37,205 
40,120 
37,205 
 
Provision for loan losses
 
 
 
 
 
 
 
 
(20,000)
(22,000)
(20,000)
Charge-offs
 
 
 
 
 
 
 
 
(15,588)
(21,217)
(17,166)
Purchase (sale) of loans, net
 
 
 
 
 
 
 
 
(1,093)
2,133 
1,463 
Allowance for loan losses - balance
43,440 
 
 
 
40,120 
 
 
 
43,440 
40,120 
37,205 
Allocation of the Allowance for Loan Losses:
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
43,440 
 
 
 
40,120 
 
 
 
43,440 
40,120 
37,205 
Non-federally insured loans [Member]
 
 
 
 
 
 
 
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses - balance
 
 
 
11,782 
 
 
 
11,277 
11,782 
11,277 
 
Provision for loan losses
 
 
 
 
 
 
 
 
1,500 
500 
(1,250)
Charge-offs
 
 
 
 
 
 
 
 
(3,683)
(3,508)
(4,147)
Recoveries - non-federally insured loans
 
 
 
 
 
 
 
 
1,577 
1,419 
1,310 
Transfer to/from repurchase obligation related to loans sold/purchased, net
 
 
 
 
 
 
 
 
3,507 
3,093 
2,146 
Allowance for loan losses - balance
11,682 
 
 
 
11,782 
 
 
 
11,682 
11,782 
11,277 
Allocation of the Allowance for Loan Losses:
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
$ 11,682 
 
 
 
$ 11,782 
 
 
 
$ 11,682 
$ 11,782 
$ 11,277 
Student Loans Receivable and Allowance for Loan Losses Repurchase Obligations (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Change in Repurchase Obligation [Roll Forward]
 
 
 
Beginning balance
$ 16,130,000 
$ 19,223,000 
$ 12,600,000 
Repurchase obligation transferred to/from the allowance for loan losses related to loans purchased/sold, net
(3,507,000)
(3,093,000)
(2,146,000)
Repurchase obligation associated with loans sold
3,520,000 
6,269,000 
Current period expense
2,500,000 
Ending balance
16,143,000 
16,130,000 
19,223,000 
Student loans receivable, net
25,907,589,000 
24,830,621,000 
 
Cumulative non-federally insured loans participated subject to repurchase agreement [Member]
 
 
 
Repurchase Obligation [Line Items]
 
 
 
Cumulative amount of participated non-federally insured student loans
120,900,000 
 
 
Days delinquent to trigger repurchase range, minimum
60 
 
 
Days delinquent to trigger repurchase range, maximum
90 
 
 
Non-federally insured loans sold subject to repurchase agreement [Member]
 
 
 
Repurchase Obligation [Line Items]
 
 
 
Date of sale of non-federally insured student loans subject to repurchase agreements
 
 
Jan. 13, 2011 
Proceeds from sale of non-federally insured student loans subject to repurchase agreements
 
 
91,300,000 
Percent of par value of non-federally insured student loans subject to repurchase agreements
 
 
100.00% 
Days delinquent to trigger repurchase
 
 
60 
Change in Repurchase Obligation [Roll Forward]
 
 
 
Student loans receivable, net
$ 63,600,000 
 
 
Student Loans Receivable and Allowance for Loan Losses Student Loan Status and Delinquency (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Loans in repayment status:
 
 
 
Student loans receivable, gross
$ 26,121,306 
$ 24,995,880 
 
Federally insured loans, excluding rehabilitated loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans in-school/grace/deferment
2,618,390 1
2,949,320 1
3,623,284 1
Loans in forbearance
2,954,495 2
2,992,023 2
3,267,771 2
Total loans in repayment
17,709,819 
16,638,401 
17,040,848 
Loans in repayment status:
 
 
 
Loans current
15,251,869 
14,583,044 
14,422,192 
Loans current, percentage
86.10% 
87.60% 
84.60% 
Loans delinquent 31-60 days
768,600 3
652,351 3
821,166 3
Loans delinquent 31-60 days, percentage
4.30% 
3.90% 
4.80% 
Loans delinquent 61-90 days
426,089 3
330,885 3
388,542 3
Loans delinquent 61-90 days, percentage
2.50% 
2.00% 
2.30% 
Loans delinquent 91-120 days
281,991 3
247,381 3
289,173 3
Loans delinquent 91-120 days, percentage
1.60% 
1.50% 
1.70% 
Loans delinquent 121-270 days
712,204 3
603,942 3
811,914 3
Loans delinquent 121-270 days, percentage
4.00% 
3.60% 
4.80% 
Loans delinquent 271 days or greater
269,066 3 4
220,798 3 4
307,861 3 4
Loans delinquent 271 days or greater, percentage
1.50% 
1.40% 
1.80% 
Total loans in repayment
17,709,819 
16,638,401 
17,040,848 
Total loans in repayment, percentage
100.00% 
100.00% 
100.00% 
Student loans receivable, gross
23,282,704 
22,579,744 
23,931,903 
Rehabilitation loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans in-school/grace/deferment
254,115 1
150,317 1
41,615 1
Loans in forbearance
415,530 2
330,278 2
62,681 2
Total loans in repayment
2,097,854 
1,909,507 
296,510 
Loans in repayment status:
 
 
 
Loans current
1,086,053 
670,205 
178,180 
Loans current, percentage
51.80% 
35.10% 
60.00% 
Loans delinquent 31-60 days
198,718 3
113,795 3
23,038 3
Loans delinquent 31-60 days, percentage
9.50% 
6.00% 
7.70% 
Loans delinquent 61-90 days
124,244 3
79,691 3
18,552 3
Loans delinquent 61-90 days, percentage
5.90% 
4.20% 
6.30% 
Loans delinquent 91-120 days
108,800 3
186,278 3
18,607 3
Loans delinquent 91-120 days, percentage
5.20% 
9.80% 
6.30% 
Loans delinquent 121-270 days
405,732 3
633,001 3
43,743 3
Loans delinquent 121-270 days, percentage
19.30% 
33.10% 
14.80% 
Loans delinquent 271 days or greater
174,307 3 4
226,537 3 4
14,390 3 4
Loans delinquent 271 days or greater, percentage
8.30% 
11.80% 
4.90% 
Total loans in repayment
2,097,854 
1,909,507 
296,510 
Total loans in repayment, percentage
100.00% 
100.00% 
100.00% 
Student loans receivable, gross
2,767,499 
2,390,102 
400,806 
Non-federally insured loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans Delinquent 31 Days or Greater in Percentage
12.70% 
28.60% 
28.60% 
Federally insured loans [Member]
 
 
 
Loans in repayment status:
 
 
 
Student loans receivable, gross
$ 26,050,203 
$ 24,969,846 
$ 24,332,709 
Outstanding Debt Obligations (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Variable-rate bonds and notes [Member]
Dec. 31, 2012
Variable-rate bonds and notes [Member]
Dec. 31, 2013
Bonds and notes based on indices [Member]
Dec. 31, 2012
Bonds and notes based on indices [Member]
Dec. 31, 2013
Bonds and notes based on auction or remarketing [Member]
Dec. 31, 2012
Bonds and notes based on auction or remarketing [Member]
Dec. 31, 2013
FFELP warehouse facilities [Member]
Dec. 31, 2012
FFELP warehouse facilities [Member]
Dec. 31, 2012
Department of Education Conduit [Member]
Dec. 31, 2013
Unsecured line of credit [Member]
Dec. 31, 2012
Unsecured line of credit [Member]
Dec. 31, 2013
Unsecured debt - Junior Subordinated Hybrid Securities [Member]
Dec. 31, 2012
Unsecured debt - Junior Subordinated Hybrid Securities [Member]
Dec. 31, 2013
Other borrowings [Member]
Dec. 31, 2012
Other borrowings [Member]
Dec. 31, 2013
Bonds and notes payable, gross [Member]
Dec. 31, 2012
Bonds and notes payable, gross [Member]
Dec. 31, 2013
Discount on bonds and notes payable [Member]
Dec. 31, 2012
Discount on bonds and notes payable [Member]
Dec. 31, 2012
Line of Credit [Member]
Dec. 31, 2013
NHELP-II Warehouse [Member]
Dec. 31, 2014
NHELP-II Warehouse [Member]
Dec. 31, 2013
NHELP-III Warehouse [Member]
Dec. 31, 2014
NHELP-III Warehouse [Member]
Dec. 31, 2013
February 17, 2012 [Member]
Line of Credit [Member]
Dec. 31, 2013
March 28, 2013 [Member]
Line of Credit [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expiration of liquidity provisions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Feb. 28, 2014 1
Sep. 30, 2014 
Jan. 16, 2014 2
Feb. 05, 2015 
 
 
Line of Credit Facility, Initiation Date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Feb. 17, 2012 
 
 
 
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 500,000 
 
$ 750,000 
 
$ 250,000 
$ 275,000 
Bonds and notes payable
$ 25,955,289 
$ 25,098,835 
$ 24,614,143 
$ 22,155,065 
$ 23,479,893 
$ 21,185,140 
$ 1,134,250 
$ 969,925 
$ 1,396,344 
$ 1,554,151 
$ 1,344,513 
$ 45,000 
$ 55,000 
$ 96,457 
$ 99,232 
$ 61,401 
$ 62,904 
$ 26,213,345 
$ 25,270,865 
$ (258,056)
$ (172,030)
 
 
 
 
 
 
 
Interest rate range - minimum
 
 
 
 
0.25% 
0.32% 
0.07% 
0.15% 
0.17% 
0.21% 
0.82% 
1.67% 
1.71% 
3.62% 
3.68% 
1.67% 
1.50% 
 
 
 
 
 
 
 
 
 
 
 
Interest rate range - maximum
 
 
 
 
6.90% 
6.90% 
2.17% 
2.14% 
0.25% 
0.29% 
0.82% 
1.67% 
1.71% 
3.62% 
3.68% 
5.10% 
5.10% 
 
 
 
 
 
 
 
 
 
 
 
Final maturity, start
 
 
 
 
May 25, 2018 
Nov. 25, 2015 
May 01, 2028 
May 01, 2028 
Jan. 17, 2016 
Jan. 31, 2015 
Jan. 19, 2014 
Mar. 28, 2018 
Feb. 17, 2016 
Sep. 15, 2061 
Sep. 15, 2061 
Oct. 09, 2015 
Nov. 14, 2013 
 
 
 
 
 
 
 
 
 
 
 
Final maturity, end
 
 
 
 
Aug. 26, 2052 
Aug. 26, 2052 
Nov. 26, 2046 
May 25, 2042 
Jun. 12, 2016 
Jun. 30, 2015 
Jan. 19, 2014 
Mar. 28, 2018 
Feb. 17, 2016 
Sep. 15, 2061 
Sep. 15, 2061 
Nov. 11, 2015 
Nov. 11, 2015 
 
 
 
 
 
Feb. 28, 2016 1
Sep. 30, 2016 
Jan. 17, 2016 
 
 
 
Bonds and Notes Payable Outstanding Lines of Credit (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2012
Department of education conduit [Member]
Dec. 31, 2012
Secured line of credit [Member]
Dec. 31, 2013
Secured line of credit [Member]
Dec. 31, 2012
Unsecured line of credit [Member]
Dec. 31, 2013
NHELP-II Warehouse [Member]
Dec. 31, 2014
NHELP-II Warehouse [Member]
Dec. 31, 2013
NFSLW-I Warehouse [Member]
Dec. 31, 2013
FFELP Warehouse Total [Member]
Dec. 31, 2013
NHELP-III Warehouse [Member]
Dec. 31, 2014
NHELP-III Warehouse [Member]
Dec. 31, 2013
March 28, 2013 [Member]
Unsecured line of credit [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Maximum financing amount
 
 
$ 50,000 
 
$ 500,000 
 
$ 500,000 
$ 1,750,000 
$ 750,000 
 
$ 275,000 
Amount outstanding
1,300,000 
 
50,000 
 
339,359 
 
479,067 
1,396,344 
577,918 
 
45,000 
Amount available
 
 
 
 
160,641 
 
20,933 
353,656 
172,082 
 
230,000 
Expiration of liquidity provisions
 
 
 
 
Feb. 28, 2014 1
Sep. 30, 2014 
Jun. 12, 2014 
 
Jan. 16, 2014 2
Feb. 05, 2015 
 
Final maturity date
 
 
 
 
Feb. 28, 2016 1
Sep. 30, 2016 
Jun. 12, 2016 
 
Jan. 17, 2016 
 
 
Initiation date
 
Apr. 12, 2012 
 
Feb. 17, 2012 
 
 
 
 
 
 
 
Advanced as equity support
 
 
 
 
$ 31,676 
 
$ 22,073 
$ 88,511 
$ 34,762 
 
 
Minimum advance rates - range minimum
 
 
 
 
84.50% 
 
84.00% 
 
 
 
 
Minimum advance rates - range maximum
 
 
 
 
94.50% 
 
90.00% 
 
 
 
 
Maximum advance rates - range minimum
 
 
 
 
84.50% 
 
92.00% 
 
 
 
 
Maximum advance rates - range maximum
 
 
 
 
94.50% 
 
98.00% 
 
 
 
 
Bonds and Notes Payable Asset-backed Securitizations (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
2013-1 Securitization [Member]
Dec. 31, 2013
2013-2 Securitization [Member]
Dec. 31, 2013
2013-3 Securitization [Member]
Dec. 31, 2013
2013-4 Securitization [Member]
Dec. 31, 2013
2013-5 Securitization [Member]
Dec. 31, 2013
2013 Securitizations [Member]
Dec. 31, 2012
2012-1 Securitization [Member]
Dec. 31, 2012
2012-2 Securitization [Member]
Dec. 31, 2012
2012-3 Securitization [Member]
Dec. 31, 2012
2012-4 Securitization [Member]
Dec. 31, 2012
2012-5 Securitization [Member]
Dec. 31, 2012
2012-6 Securitization [Member]
Dec. 31, 2012
2012 Securitizations [Member]
Dec. 31, 2013
Class A [Member]
2013-1 Securitization [Member]
Dec. 31, 2013
Class A [Member]
2013-2 Securitization [Member]
Dec. 31, 2013
Class A [Member]
2013-3 Securitization [Member]
Dec. 31, 2013
Class A [Member]
2013-4 Securitization [Member]
Dec. 31, 2013
Class A [Member]
2013-5 Securitization [Member]
Dec. 31, 2013
Class A [Member]
2013 Securitizations [Member]
Dec. 31, 2012
Class A [Member]
2012-1 Securitization [Member]
Dec. 31, 2012
Class A [Member]
2012-2 Securitization [Member]
Dec. 31, 2012
Class A [Member]
2012-3 Securitization [Member]
Dec. 31, 2012
Class A [Member]
2012-4 Securitization [Member]
Dec. 31, 2012
Class A [Member]
2012-5 Securitization [Member]
Dec. 31, 2012
Class A [Member]
2012-6 Securitization [Member]
Dec. 31, 2012
Class A [Member]
2012 Securitizations [Member]
Dec. 31, 2013
Class B [Member]
Dec. 31, 2013
Class B [Member]
2013-1 Securitization [Member]
Dec. 31, 2013
Class B [Member]
2013-2 Securitization [Member]
Dec. 31, 2013
Class B [Member]
2013-3 Securitization [Member]
Dec. 31, 2013
Class B [Member]
2013-4 Securitization [Member]
Dec. 31, 2013
Class B [Member]
2013-5 Securitization [Member]
Dec. 31, 2013
Class B [Member]
2013 Securitizations [Member]
Dec. 31, 2013
Class B [Member]
2012-1 Securitization [Member]
Dec. 31, 2013
Class B [Member]
2012-2 Securitization [Member]
Dec. 31, 2013
Class B [Member]
2012-3 Securitization [Member]
Dec. 31, 2012
Class B [Member]
2012-4 Securitization [Member]
Dec. 31, 2012
Class B [Member]
2012-5 Securitization [Member]
Dec. 31, 2012
Class B [Member]
2012-6 Securitization [Member]
Dec. 31, 2012
Class B [Member]
2012 Securitizations [Member]
Dec. 31, 2013
Auction Rate Securities [Member]
Dec. 31, 2013
Variable Rate Demand Notes [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 34,000,000 
 
 
 
 
$ 7,600,000 
$ 10,000,000 
$ 10,000,000 
 
 
 
 
 
 
Date issued
 
 
Jan. 31, 2013 
Feb. 28, 2013 1
Apr. 30, 2013 
Jun. 21, 2013 
Sep. 30, 2013 1
 
May 09, 2012 
Jun. 11, 2012 
Jul. 31, 2012 
Oct. 11, 2012 
Nov. 08, 2012 
Dec. 12, 2012 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
 
437,500,000 
1,122,000,000 1
765,000,000 
453,000,000 
399,000,000 1
3,176,500,000 
336,300,000 
323,000,000 
414,300,000 
937,500,000 
1,174,000,000 
1,012,000,000 
4,197,100,000 
428,000,000 
1,122,000,000 1
745,000,000 
440,000,000 
399,000,000 1
3,134,000,000 
336,300,000 
323,000,000 
414,300,000 
920,000,000 
1,144,000,000 
987,000,000 
4,124,600,000 
 
9,500,000 
 
20,000,000 
13,000,000 
 
42,500,000 
 
 
 
17,500,000 
30,000,000 
25,000,000 
72,500,000 
 
 
Bond discount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,325,000 1
1,690,000 
4,881,000 1
(9,896,000)
(3,609,000)
(1,275,000)
(7,642,000)
(3,399,000)
(15,925,000)
 
1,525,000 
 
1,762,000 
1,804,000 
 
(5,091,000)
 
 
 
(4,900,000)
(10,011,000)
(6,937,000)
(21,848,000)
 
 
Issue price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
428,000,000 
1,118,675,000 1
745,000,000 
438,310,000 
394,119,000 1
3,124,104,000 
336,300,000 
319,391,000 
413,025,000 
920,000,000 
1,136,358,000 
983,601,000 
4,108,675,000 
 
7,975,000 
 
18,238,000 
11,196,000 
 
37,409,000 
 
 
 
12,600,000 
19,989,000 
18,063,000 
50,652,000 
 
 
Cost of funds (1-month LIBOR plus:)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.60% 
0.50% 1
0.50% 
0.50% 
0.63% 1
 
0.80% 
0.80% 
0.70% 
0.70% 
0.60% 
0.60% 
 
 
1.50% 
 
1.50% 
1.50% 
 
 
 
 
 
1.00% 
1.00% 
1.50% 
 
 
 
Final maturity date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun. 25, 2041 
Jul. 25, 2040 1
Feb. 25, 2037 
Dec. 26, 2042 
Jan. 25, 2037 1
 
Dec. 27, 2039 
Dec. 26, 2033 
Mar. 26, 2040 
Sep. 27, 2038 
Oct. 27, 2036 
Mar. 27, 2045 
 
 
Mar. 25, 2048 
 
Jul. 25, 2047 
Jan. 25, 2047 
 
 
 
 
 
Jul. 26, 2049 
Dec. 28, 2043 
Aug. 26, 2052 
 
 
 
Class B subordinated notes purchased with issuance of asset-backed securitizations (off-balance sheet)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
85,500,000 
 
 
 
 
9,000,000 
 
 
 
 
 
 
 
 
 
 
Bonds and notes payable
$ 25,955,289,000 
$ 25,098,835,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 915,100,000 
$ 219,200,000 
[1] Total original principal amount excludes the Class B subordinated tranches for the 2012-1, 2012-2, 2012-3, 2013-2, and 2013-5 transactions totaling $7.6 million, $10.0 million, $10.0 million, $34.0 million, and $9.0 million, respectively, that were retained at issuance. As of December 31, 2013, the Company has a total of $85.5 million (par value) of its own Class B subordinated notes remaining from prior completed asset-backed securitizations that are not included in the Company's consolidated balance sheet. If the Company sells 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.
Bonds and Notes Payable Junior Subordinated Hybrid Securities (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Debt and Capital Lease Obligations
$ 25,955,289,000 
$ 25,098,835,000 
Junior Subordinated Debt [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Face Amount
200,000,000 
 
Debt Instrument, Interest Rate, Stated Percentage
3.62% 
 
Debt Instrument, Description of Variable Rate Basis
three-month LIBOR 
 
Debt Instrument, Basis Spread on Variable Rate
3.375% 
 
Required minimum balance after optional redemption
50,000,000 
 
Debt and Capital Lease Obligations
$ 96,457,000 
$ 99,232,000 
Bonds and Notes Payable Other Borrowings (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Bonds and notes payable
$ 25,955,289 
$ 25,098,835 
Other borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
61,401 
62,904 
Mortgages [Member] |
Other borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
4,500 
4,600 
Third-party [Member] |
Other borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
6,900 
8,300 
Defeased debt [Member] |
Other borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
45,900 
42,700 
Secured Debt [Member]
 
 
Debt Instrument [Line Items]
 
 
Line of Credit Facility, Initiation Date
 
Apr. 12, 2012 
Line of Credit Facility, Maximum Borrowing Capacity
$ 50,000 
 
Line of Credit Facility, Expiration Date
Apr. 11, 2014 
 
Bonds and Notes Payable Maturity of long-term debt (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Notes payable
$ 25,955,289 
$ 25,098,835 
Debt and Capital Lease Obligations, Gross [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months
56,900 
 
Long-term Debt, Maturities, Repayments of Principal in Year Two
4,501 
 
Long-term Debt, Maturities, Repayments of Principal in Year Three
1,396,344 
 
Long-term Debt, Maturities, Repayments of Principal in Year Four
 
Long-term Debt, Maturities, Repayments of Principal in Year Five
447,245 
 
Long-term Debt, Maturities, Repayments of Principal after Year Five
24,308,355 
 
Notes payable
$ 26,213,345 
$ 25,270,865 
Gain on Sale of Loans and Debt Repurchases Gain on Sale of Loans and Debt Repurchases (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Gain on sale of loans and debt repurchases net
$ 799 
$ 2,138 
$ 7,355 
$ 1,407 
$ 3,009 
$ 195 
$ 935 
$ 0 
$ 11,699 
$ 4,139 
$ 8,340 
Financing Receivable [Member]
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Gain on sale of loans and debt repurchases net
 
 
 
 
 
 
 
 
33 
116 
1,378 
Debt [Member]
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Repurchased Notional Amount
90,471 
 
 
 
136,132 
 
 
 
90,471 
136,132 
74,812 
Debt Instrument, Purchase Price
78,805 
 
 
 
132,109 
 
 
 
78,805 
132,109 
67,850 
Gain on sale of loans and debt repurchases net
 
 
 
 
 
 
 
 
11,666 1
4,023 1
6,962 1
Debt [Member] |
Junior Subordinated Hybrid Securities [Member]
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Repurchased Notional Amount
2,775 
 
 
 
1,465 
 
 
 
2,775 
1,465 
62,558 
Debt Instrument, Purchase Price
2,080 
 
 
 
1,140 
 
 
 
2,080 
1,140 
55,651 
Gain on sale of loans and debt repurchases net
 
 
 
 
 
 
 
 
695 
325 
6,907 
Debt [Member] |
Asset-backed Securities [Member]
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Repurchased Notional Amount
87,696 
 
 
 
134,667 
 
 
 
87,696 
134,667 
12,254 
Debt Instrument, Purchase Price
76,725 
 
 
 
130,969 
 
 
 
76,725 
130,969 
12,199 
Gain on sale of loans and debt repurchases net
 
 
 
 
 
 
 
 
$ 10,971 
$ 3,698 
$ 55 
Derivative Financial Instruments Outstanding (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Derivative [Line Items]
 
 
Student loans receivable, net
$ 25,907,589,000 
$ 24,830,621,000 
Bonds and notes payable
25,955,289,000 
25,098,835,000 
Junior Subordinated Hybrid Securities [Member]
 
 
Derivative [Line Items]
 
 
Bonds and notes payable
96,457,000 
99,232,000 
Unsecured debt scheduled interest rate change date
Sep. 29, 2036 
 
Junior subordinated hybrid securities, description of variable rate basis
three-month LIBOR 
 
Weighted average basis spread on variable rate
3.375% 
 
Junior Subordinated Hybrid Securities [Member] |
Maturity 2036 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
25,000,000 
75,000,000 
Weighted average fixed rate paid by the Company
4.28% 1
4.28% 1
1:3 basis swaps [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
8,000,000,000 2
7,500,000,000 2
Derivative, Type of Interest Rate Paid on Swap
one-month LIBOR 
 
Weighted average basis spread on variable rate
3.50% 
3.30% 
1:3 basis swaps [Member] |
One-month LIBOR, Daily reset [Member]
 
 
Derivative [Line Items]
 
 
Student loans receivable, net
25,000,000,000 
 
Derivative, Description of Variable Rate Basis
one-month LIBOR 
 
1:3 basis swaps [Member] |
Three-month treasury bill, Daily reset [Member]
 
 
Derivative [Line Items]
 
 
Student loans receivable, net
1,000,000,000 
 
Derivative, Description of Variable Rate Basis
three-month treasury bill rate 
 
1:3 basis swaps [Member] |
Three-month LIBOR, Quarterly reset [Member]
 
 
Derivative [Line Items]
 
 
Bonds and notes payable
16,300,000,000 
 
Derivative, Description of Variable Rate Basis
three-month LIBOR 
 
1:3 basis swaps [Member] |
One-month LIBOR, Monthly reset [Member]
 
 
Derivative [Line Items]
 
 
Bonds and notes payable
7,800,000,000 
 
Derivative, Description of Variable Rate Basis
one-month LIBOR 
 
1:3 basis swaps [Member] |
Maturity 2021 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
250,000,000 
250,000,000 
1:3 basis swaps [Member] |
Maturity 2022 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
1,900,000,000 
1,900,000,000 
1:3 basis swaps [Member] |
Maturity 2023 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
3,650,000,000 
3,150,000,000 
1:3 basis swaps [Member] |
Maturity 2024 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
250,000,000 
250,000,000 
1:3 basis swaps [Member] |
Maturity 2026 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
800,000,000 
800,000,000 
1:3 basis swaps [Member] |
Maturity 2028 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
100,000,000 
100,000,000 
1:3 basis swaps [Member] |
Maturity 2036 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
700,000,000 
700,000,000 
1:3 basis swaps [Member] |
Maturity 2039 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
150,000,000 3
150,000,000 3
1:3 basis swaps [Member] |
Maturity 2040 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
200,000,000 4
200,000,000 4
Interest rate swaps - floor income hedges [Member]
 
 
Derivative [Line Items]
 
 
Student loans receivable, net
11,300,000,000 
 
Student loans earning fixed rate floor income
11,100,000,000 
 
Weighted Average Variable Conversion Rate
1.83% 
1.82% 
Derivative, Notional Amount
4,850,000,000 
7,500,000,000 
Weighted average fixed rate paid by the Company
0.81% 1
0.78% 1
Interest rate swaps - floor income hedges [Member] |
Maturity 2013 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
3,150,000,000 
Weighted average fixed rate paid by the Company
0.00% 1
0.71% 1
Interest rate swaps - floor income hedges [Member] |
Maturity 2014 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
1,750,000,000 
1,750,000,000 
Weighted average fixed rate paid by the Company
0.71% 1
0.71% 1
Interest rate swaps - floor income hedges [Member] |
Maturity 2015 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
1,100,000,000 
1,100,000,000 
Weighted average fixed rate paid by the Company
0.89% 1
0.89% 1
Interest rate swaps - floor income hedges [Member] |
Maturity 2016 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
750,000,000 
750,000,000 
Weighted average fixed rate paid by the Company
0.85% 1
0.85% 1
Interest rate swaps - floor income hedges [Member] |
Maturity 2017 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
$ 1,250,000,000 
$ 750,000,000 
Weighted average fixed rate paid by the Company
0.86% 1
0.99% 1
Derivative Financial Instruments Cross-currency Interest Rate Swaps (Details)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
USD ($)
Dec. 31, 2012
USD ($)
Dec. 31, 2011
USD ($)
Dec. 31, 2013
Cross-currency interest rate swaps [Member]
USD ($)
Dec. 31, 2012
Cross-currency interest rate swaps [Member]
USD ($)
Dec. 31, 2011
Cross-currency interest rate swaps [Member]
USD ($)
Dec. 31, 2013
Cross-currency interest rate swap 1 [Member]
USD ($)
Dec. 31, 2013
Cross-currency interest rate swap 1 [Member]
EUR (€)
Dec. 31, 2013
Cross currency interest rate swap 2 [Member]
USD ($)
Dec. 31, 2013
Cross currency interest rate swap 2 [Member]
EUR (€)
Dec. 31, 2013
Fixed Rate Floor Income Interest Rate Swap [Member]
USD ($)
Dec. 31, 2012
Fixed Rate Floor Income Interest Rate Swap [Member]
USD ($)
Dec. 31, 2013
Fixed Rate Floor Income Interest Rate Swap 5 [Member]
Fixed Rate Floor Income Interest Rate Swap [Member]
USD ($)
Dec. 31, 2012
Fixed Rate Floor Income Interest Rate Swap 5 [Member]
Fixed Rate Floor Income Interest Rate Swap [Member]
USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bonds and notes payable
$ 25,955,289 
$ 25,098,835 
 
 
 
 
 
€ 420,500 
 
€ 352,700 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
 
 
500,000 
 
450,000 
352,700 
4,850,000 
7,500,000 
1,250,000 
750,000 
Derivative, Average Fixed Interest Rate
 
 
 
 
 
 
 
 
 
 
0.81% 1
0.78% 1
0.86% 1
0.99% 1
Re-measurement of Euro Notes
(35,285)
(19,561)
32,706 
 
 
 
 
 
 
 
 
 
 
 
Change in fair value of cross currency interest rate swaps
83,878 
(27,833)
(50,513)
26,354 
2,210 
(14,287)
 
 
 
 
 
 
 
 
Total impact to consolidated statements of income - income (expense)
$ 83,878 
$ (27,833)
$ (50,513)
$ (8,931)2
$ (17,351)2
$ 18,419 2
 
 
 
 
 
 
 
 
Derivative Financial Instruments Fair Value of Derivative Instruments (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Derivatives, Fair Value [Line Items]
 
 
 
Proceeds to terminate and or amend derivative instruments
$ 65,890 
$ (6,005)
$ 3,365 
Fair value of asset derivatives
62,507 
97,441 
 
Fair value of liability derivatives
17,968 
70,890 
 
Payments to terminate and/or amend derivative instruments
 
$ 6,000 
 
Derivative Financial Instruments Income Statement Effect of Derivative Instruments (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative settlements
$ (29,636)
$ (14,022)
$ (7,840)
Change in fair value
83,878 
(27,833)
(50,513)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
(35,285)
(19,561)
32,706 
Derivative market value and foreign currency adjustments and derivative settlements - income (expense)
18,957 
(61,416)
(25,647)
1:3 basis swaps [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative settlements
3,301 
4,495 
1,446 
Change in fair value
7,467 
676 
1,114 
Interest rate swaps - floor income hedges [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative settlements
(31,022)
(19,270)
(20,246)
Change in fair value
36,719 
(35,215)
(12,169)
Interest rate swaps - hybrid debt hedges [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative settlements
(1,670)
(2,231)
(744)
Change in fair value
12,997 
1,717 
(25,475)
Cross-currency interest rate swaps [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative settlements
(245)
3,228 
11,877 
Change in fair value
26,354 
2,210 
(14,287)
Other [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative settlements
(244)
(173)
Change in fair value
$ 341 
$ 2,779 
$ 304 
Derivative Financial Instruments Derivative Collateral (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Derivative [Line Items]
 
 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
$ 17,969,000 
$ 70,890,000 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
62,507,000 
97,441,000 
Derivative Asset, Fair Value, Amount Offset Against Collateral
(15,437,000)
(13,234,000)
Derivative, Collateral, Obligation to Return Cash
15,959,000 1
19,993,000 1
Derivative Assets Not Designated As Hedging Instruments, Net
31,111,000 
64,214,000 
Fair value of derivatives with early termination provisions
10,100,000 
 
Derivative Liability, Fair Value, Amount Offset Against Collateral
(15,437,000)
(13,234,000)
Derivative, Collateral, Right to Reclaim Cash
3,630,000 2
63,128,000 2
Derivative Liabilities Not Designated As Hedging Instruments, Net
1,098,000 
5,472,000 
Derivative Asset, Fair Value, Gross Asset
62,507,000 
97,441,000 
Derivative Liability, Fair Value, Gross Liability
17,968,000 
70,890,000 
One Month to Three Month LIBOR Basis Swap [Member]
 
 
Derivative [Line Items]
 
 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
1,215,000 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
18,490,000 
12,239,000 
Fixed Rate Floor Income Interest Rate Swap [Member]
 
 
Derivative [Line Items]
 
 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
15,849,000 
45,913,000 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
7,183,000 
Hybrid Debt interest Rate Swap [Member]
 
 
Derivative [Line Items]
 
 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
2,119,000 
23,762,000 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
Cross-currency interest rate swaps [Member]
 
 
Derivative [Line Items]
 
 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
36,834,000 
82,841,000 
Other Contract [Member]
 
 
Derivative [Line Items]
 
 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
$ 0 
$ 2,361,000 
Investments and Restricted Investments Summary (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Investment Holdings [Line Items]
 
 
Fair value
$ 177,801 
 
Guaranteed investment contracts - held-to-maturity
 
8,830 1
Investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
192,040 
83,312 
Investments [Member] |
Available-for-sale securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
173,433 
68,419 
Gross unrealized gains
8,894 
4,791 
Gross unrealized losses
(1,244)2
(359)
Investments, Fair Value Disclosure
181,083 
72,851 
Investments [Member] |
Available-for-sale securities [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
171,931 3
64,970 3
Gross unrealized gains
7,111 3
3,187 3
Gross unrealized losses
(1,241)2 3
(179)3
Investments, Fair Value Disclosure
177,801 3
67,978 3
Investments [Member] |
Available-for-sale securities [Member] |
Equity securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
1,502 
3,449 
Gross unrealized gains
1,783 
1,604 
Gross unrealized losses
(3)2
(180)
Investments, Fair Value Disclosure
3,282 
4,873 
Investments [Member] |
Trading investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
10,957 
10,461 
Estimate of Fair Value Measurement [Member]
 
 
Investment Holdings [Line Items]
 
 
Guaranteed investment contracts - held-to-maturity
$ 7,285 1
 
Investments Available for Sale Securities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
 
Amortized cost, within 1 year
$ 0 
Fair value, within 1 year
Amortized cost, 1-5 years
418 
Fair value, 1-5 years
418 
Amortized cost, 6-10 years
57 
Fair value, 6-10 years
57 
Amortized cost, after 10 years
171,456 
Fair value, after 10 years
177,326 
Amortized cost
171,931 
Fair value
$ 177,801 
Investments Stated Maturities on Held-To-Maturity Securities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Schedule of Held-to-maturity Securities [Line Items]
 
Within 1 year
$ 0 
1-5 years
5,084 
6-10 years
After 10 years
2,201 
Total
$ 7,285 
Investments Realized and Unrealized Gains (losses) on Investments (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Gain (Loss) on Investments [Line Items]
 
 
 
Investment gains (losses) included in other income
$ 6,164 
$ 7,511 
$ 3,183 
Trading Securities [Member]
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
Unrealized gains (losses), net
221 
254 
430 
Realized gains (losses), net
1,459 
2,753 
Available-for-sale Securities [Member]
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
Gross realized gains
6,270 
6,120 
Gross realized losses
$ 332 
$ 322 
$ 0 
Investments Reclassifications to OCI (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax
$ 5,938 
$ 5,798 
$ 0 
Available-for-sale Securities [Member]
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax
(5,938)
(5,798)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax
2,197 
2,145 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax
$ (3,741)
$ (3,653)
$ 0 
Goodwill Goodwill (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2015
Dec. 31, 2014
Goodwill [Roll Forward]
 
 
 
 
 
Goodwill, Begining Balance
$ 117,118,000 
$ 117,118,000 
 
 
 
Goodwill, Impairment charge
 
 
 
Goodwill, Ending Balance
117,118,000 
117,118,000 
117,118,000 
 
 
Intangible Assets, Net (Excluding Goodwill)
6,132,000 
9,393,000 
 
 
 
Amortization of Intangible Assets
3,300,000 
19,000,000 
17,100,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months
 
 
 
 
3,100,000 
Finite-Lived Intangible Assets, Amortization Expense, Year Two
 
 
 
3,000,000 
 
Student Loan and Guaranty Servicing [Member]
 
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
 
Goodwill, Begining Balance
8,596,000 
8,596,000 
 
 
 
Goodwill, Impairment charge
 
 
 
Goodwill, Ending Balance
8,596,000 
8,596,000 
 
 
 
Tuition Payment Processing and Campus Commerce [Member]
 
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
 
Goodwill, Begining Balance
58,086,000 
58,086,000 
 
 
 
Goodwill, Impairment charge
 
 
 
Goodwill, Ending Balance
58,086,000 
58,086,000 
 
 
 
Enrollment Services [Member]
 
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
 
Goodwill, Begining Balance
8,553,000 
8,553,000 
 
 
 
Goodwill, Impairment charge
 
 
 
Goodwill, Ending Balance
8,553,000 
8,553,000 
 
 
 
Asset Generation and Management [Member]
 
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
 
Goodwill, Begining Balance
41,883,000 1
41,883,000 1
 
 
 
Goodwill, Impairment charge
1
1
 
 
 
Goodwill, Ending Balance
$ 41,883,000 1
$ 41,883,000 1
 
 
 
Property and Equipment Property and Equipment (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Gross
$ 109,658,000 
$ 102,701,000 
 
Accumulated Depreciation
75,829,000 
70,832,000 
 
Property, Plant and Equipment, Net
33,829,000 
31,869,000 
 
Depreciation Expense
15,100,000 
12,900,000 
9,900,000 
Computer Equipment and Software [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Gross
77,733,000 
72,595,000 
 
Property, Plant and Equipment, Useful Life, Range Minimum
1 year 
 
 
Property, Plant and Equipment, Useful Life, Range Maximum
5 years 
 
 
Office Furniture and Equipment [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Gross
9,843,000 
9,583,000 
 
Property, Plant and Equipment, Useful Life, Range Minimum
3 years 
 
 
Property, Plant and Equipment, Useful Life, Range Maximum
7 years 
 
 
Leasehold Improvements [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Gross
3,618,000 
6,502,000 
 
Property, Plant and Equipment, Useful Life, Range Minimum
1 year 
 
 
Property, Plant and Equipment, Useful Life, Range Maximum
15 years 
 
 
Transportation Equipment [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Gross
7,398,000 
3,610,000 
 
Property, Plant and Equipment, Useful Life, Range Minimum
10 years 
 
 
Property, Plant and Equipment, Useful Life, Range Maximum
10 years 
 
 
Building [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Gross
10,366,000 
9,711,000 
 
Property, Plant and Equipment, Useful Life, Range Minimum
5 years 
 
 
Property, Plant and Equipment, Useful Life, Range Maximum
39 years 
 
 
Land [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Gross
$ 700,000 
$ 700,000 
 
Shareholders' Equity Classes of Common Stock (Details)
12 Months Ended
Dec. 31, 2013
Common Class B [Member]
 
Class of Stock [Line Items]
 
Common Stock, Voting Rights, Number of Votes Per Share
ten 
Common Class A [Member]
 
Class of Stock [Line Items]
 
Common Stock, Voting Rights, Number of Votes Per Share
one 
Shareholders' Equity Stock Repurchases (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Class of Stock [Line Items]
 
 
 
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased
3,900,000 
 
 
Stock Repurchased and Retired During Period, Shares
393,259 
806,023 
1,436,423 
Stock Repurchased and Retired During Period, Value
$ 13,136 
$ 22,814 
$ 27,134 
Average price of shares repurchased (per share)
$ 33.40 
$ 28.30 
$ 18.89 
Shareholders' Equity Contingent Consideration - infiNET Integrated Solutions, Inc. (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2013
infiNET purchase, 2004 [Member]
 
 
Business Acquisition [Line Items]
 
 
Business Acquisition, Percentage of Voting Interests Acquired
 
50.00% 
infiNET purchase, 2006 [Member]
 
 
Business Acquisition [Line Items]
 
 
Business Acquisition, Percentage of Voting Interests Acquired
 
50.00% 
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares
95,380 
 
Business Acquisition, Preacquisition Contingency, Amount of Settlement
 
$ 5.9 
Earnings per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$ 1.52 
$ 1.35 
$ 2.17 
$ 1.46 
$ 1.20 
$ 0.78 
$ 0.87 
$ 0.91 
$ 6.50 
$ 3.76 
$ 4.24 
Net Income (Loss) Attributable to Parent
$ 70,520 
$ 62,830 
$ 101,243 
$ 68,079 
$ 56,634 
$ 36,828 
$ 41,394 
$ 43,141 
$ 302,672 
$ 177,997 
$ 204,335 
Weighted Average Number of Shares Outstanding, Basic and Diluted
 
 
 
 
 
 
 
 
46,570,314 
47,369,331 
48,157,403 
Weighted Average Number Diluted Shares Outstanding Adjustment [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Antidilutive securities excluded from computation of earnings per share
 
 
 
 
 
 
 
 
Retained Earnings [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
302,672 
177,997 
204,335 
Unvested restricted stock shareholders [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
 
 
 
 
 
 
 
 
$ 6.50 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
2,629 
1,350 
1,258 
Weighted Average Number of Shares Outstanding, Basic and Diluted
 
 
 
 
 
 
 
 
404,529 
359,297 
296,579 
Common shareholders [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
 
 
 
 
 
 
 
 
$ 6.50 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
$ 300,043 
$ 176,647 
$ 203,077 
Weighted Average Number of Shares Outstanding, Basic and Diluted
 
 
 
 
 
 
 
 
46,165,785 
47,010,034 
47,860,824 
Shares Issued - Deferred [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Non Employee Director Stock, Cumulative Deferred Shares
127,442 
 
 
 
 
 
 
 
127,442 
 
 
Income Taxes Income Taxes (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
 
 
 
Unrecognized Tax Benefits - Gross balance
$ 19,141,000 
$ 29,568,000 
$ 21,794,000 
Additions based on tax positions of prior years
996,000 
9,493,000 
 
Additions based on tax positions related to the current year
3,812,000 
4,367,000 
 
Settlements with taxing authorities
(7,470,000)
 
Reductions for tax positions of prior years
(6,470,000)
(5,738,000)
 
Reductions based on tax positions related to the current year
(272,000)
 
Reductions due to lapse of applicable statute of limitations
(1,023,000)
(348,000)
 
Unrecognized Tax Benefits that Would Impact Effective Tax Rate
12,400,000 
 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit
$ 2,200,000 
 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Other Information
1.4 
 
 
Income Taxes Income Taxes (Details 1) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Interest and Penalties Related to Uncertain Tax Provisions [Line Items]
 
 
 
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued
$ 2.1 
$ 5.1 
 
Unrecognized Tax Benefits, Interest on Income Taxes Expense
1.3 
2.7 
0.7 
Unrecognized Tax Benefits, Income Tax Penalties Expense
$ 0 
$ 0 
 
Income Taxes Income Taxes (Details 2) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Schedule of Income Tax Expense/Benefit [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Current Federal Tax Expense (Benefit)
 
 
 
 
 
 
 
 
$ 153,756 
$ 118,490 
$ 123,737 
Current State and Local Tax Expense (Benefit)
 
 
 
 
 
 
 
 
4,776 
1,383 
1,354 
Current Foreign Tax Expense (Benefit)
 
 
 
 
 
 
 
 
122 
33 
87 
Current Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
158,654 
119,906 
125,178 
Deferred Federal Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
1,676 
(23,460)
(6,606)
Deferred State and Local Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
868 
(358)
(1,116)
Deferred Foreign Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
(5)
(11)
(4)
Deferred Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
2,539 
(23,829)
(7,726)
Income Tax Expense (Benefit)
$ (37,556)
$ (30,444)
$ (54,746)
$ (38,447)
$ (36,099)
$ (21,870)
$ (14,878)
$ (23,230)
$ 161,193 
$ 96,077 
$ 117,452 
Income Taxes Income Taxes (Details 3)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Schedule of Effective Tax Rate Reconciliation [Line Items]
 
 
 
Tax expense at federal rate
35.00% 
35.00% 
35.00% 
Increase (decrease) resulting from: [Abstract]
 
 
 
State tax, net of federal income tax benefit
0.80% 
0.50% 
0.90% 
Provision of uncertain federal and state tax matters
(0.60%)
0.20% 
1.10% 
Tax credits
(0.40%)
(0.60%)
(0.40%)
Valuation allowance
0.00% 
0.00% 
(0.30%)
Other
0.00% 
(0.10%)
0.20% 
Effective tax rate
34.80% 
35.00% 
36.50% 
Income Taxes Income Taxes (Details 4) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Income Tax Disclosure [Abstract]
 
 
Student loans
$ 25,967 
$ 26,612 
Intangible assets
23,675 
29,812 
Deferred tax asset, securitizations
10,407 
Accrued expenses
4,162 
3,739 
Deferred revenue
777 
987 
Basis in certain derivative contracts
14,178 
Other
28 
982 
Deferred Tax Assets, Gross
66,624 
77,627 
Deferred Tax Assets, Valuation Allowance
(239)
(137)
Deferred Tax Assets, Net of Valuation Allowance
66,385 
77,490 
Loan origination services
23,750 
27,554 
Debt repurchases
32,286 
32,866 
Depreciation
4,673 
4,770 
Unrealized gain on debt and equity securities
2,830 
1,619 
Basis in certain derivative contracts
2,137 
Deferred Tax Liabilities, Gross
65,676 
66,809 
Deferred Tax Liabilities, Net
709 
10,681 
Stock compensation
$ 1,608 
$ 1,317 
Income Taxes Income Taxes Payable / Receivable (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Income Tax Payable / Receivable [Line Items]
 
 
Income Taxes Receivable
$ 4.1 
$ 0.7 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
$ 644,810 
$ 613,853 
$ 592,854 
Interest expense
 
 
 
 
 
 
 
 
230,935 
268,566 
228,289 
Net interest income
108,736 
104,922 
101,419 
98,798 
90,598 
85,266 
84,567 
84,856 
413,875 
345,287 
364,565 
Provision for loan losses
3,500 
5,000 
5,000 
5,000 
3,500 
5,000 
7,000 
6,000 
18,500 
21,500 
21,250 
Net interest income (loss) after provision for loan losses
105,236 
99,922 
96,419 
93,798 
87,098 
80,266 
77,567 
78,856 
395,375 
323,787 
343,315 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing fees
63,167 
64,582 
60,078 
55,601 
54,584 
53,285 
52,391 
49,488 
243,428 
209,748 
175,657 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
Tuition payment processing and campus commerce revenue
18,988 
19,927 
18,356 
23,411 
17,735 
17,928 
16,834 
21,913 
80,682 
74,410 
67,797 
Enrollment services revenue
21,735 
22,563 
24,823 
28,957 
25,890 
30,661 
29,710 
31,664 
98,078 
117,925 
130,470 
Other income
15,981 
8,613 
12,288 
9,416 
7,023 
12,699 
8,800 
10,954 
46,298 
39,476 
29,513 
Gain on sale of loans and debt repurchases
799 
2,138 
7,355 
1,407 
3,009 
195 
935 
11,699 
4,139 
8,340 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
48,593 
(47,394)
(17,807)
Derivative settlements, net
 
 
 
 
 
 
 
 
(29,636)
(14,022)
(7,840)
Total other income (expense)
 
 
 
 
 
 
 
 
499,142 
384,282 
386,130 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
(52,120)
(48,712)
(47,432)
(47,905)
(48,633)
(46,395)
(48,703)
(49,095)
196,169 
192,826 
177,951 
Cost to provide enrollment services
(13,864)
(14,668)
(16,787)
(19,642)
(16,172)
(20,151)
(20,374)
(21,678)
64,961 
78,375 
86,548 
Depreciation and amortization
(5,274)
(4,340)
(4,320)
(4,377)
(8,861)
(8,402)
(8,226)
(8,136)
18,311 
33,625 
29,744 
Other
(40,349)
(39,887)
(34,365)
(34,941)
(35,578)
(29,989)
(30,908)
(32,263)
149,542 
128,738 
113,415 
Intersegment expenses, net
 
 
 
 
 
 
 
 
Total operating expenses
 
 
 
 
 
 
 
 
428,983 
433,564 
407,658 
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
465,534 
274,505 
321,787 
Corporate overhead allocation
 
 
 
 
 
 
 
 
Income before income taxes
 
 
 
 
 
 
 
 
465,534 
274,505 
321,787 
Income tax expense
37,556 
30,444 
54,746 
38,447 
36,099 
21,870 
14,878 
23,230 
(161,193)
(96,077)
(117,452)
Net income (loss)
71,088 
63,046 
101,857 
68,350 
56,653 
36,952 
41,530 
43,293 
304,341 
178,428 
204,335 
Net income attributable to noncontrolling interest
568 
216 
614 
271 
19 
124 
136 
152 
1,669 
431 
Net Income (Loss) Attributable to Parent
70,520 
62,830 
101,243 
68,079 
56,634 
36,828 
41,394 
43,141 
302,672 
177,997 
204,335 
Total assets
27,770,849 
 
 
 
26,607,895 
 
 
 
27,770,849 
26,607,895 
25,852,217 
Student Loan and Guaranty Servicing [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
40 
53 
58 
Interest expense
 
 
 
 
 
 
 
 
Net interest income
 
 
 
 
 
 
 
 
40 
53 
58 
Provision for loan losses
 
 
 
 
 
 
 
 
Net interest income (loss) after provision for loan losses
 
 
 
 
 
 
 
 
40 
53 
58 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing fees
 
 
 
 
 
 
 
 
243,428 
209,748 
175,657 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
56,744 
65,376 
69,037 
Tuition payment processing and campus commerce revenue
 
 
 
 
 
 
 
 
Enrollment services revenue
 
 
 
 
 
 
 
 
Other income
 
 
 
 
 
 
 
 
Gain on sale of loans and debt repurchases
 
 
 
 
 
 
 
 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
Derivative settlements, net
 
 
 
 
 
 
 
 
Total other income (expense)
 
 
 
 
 
 
 
 
300,172 
275,124 
244,694 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
 
 
 
 
 
 
 
 
119,092 
115,126 
102,878 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
 
11,419 
18,415 
15,313 
Other
 
 
 
 
 
 
 
 
79,116 
70,505 
60,442 
Intersegment expenses, net
 
 
 
 
 
 
 
 
4,359 
5,280 
4,776 
Total operating expenses
 
 
 
 
 
 
 
 
213,986 
209,326 
183,409 
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
86,226 
65,851 
61,343 
Corporate overhead allocation
 
 
 
 
 
 
 
 
(6,150)
(5,904)
(4,138)
Income before income taxes
 
 
 
 
 
 
 
 
80,076 
59,947 
57,205 
Income tax expense
 
 
 
 
 
 
 
 
(30,430)
(22,780)
(21,736)
Net income (loss)
 
 
 
 
 
 
 
 
49,646 
37,167 
35,469 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
49,646 
37,167 
35,469 
Total assets
84,986 
 
 
 
90,959 
 
 
 
84,986 
90,959 
123,307 
Tuition Payment Processing and Campus Commerce [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
21 
Interest expense
 
 
 
 
 
 
 
 
Net interest income
 
 
 
 
 
 
 
 
21 
Provision for loan losses
 
 
 
 
 
 
 
 
Net interest income (loss) after provision for loan losses
 
 
 
 
 
 
 
 
21 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing fees
 
 
 
 
 
 
 
 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
Tuition payment processing and campus commerce revenue
 
 
 
 
 
 
 
 
80,682 
74,410 
67,797 
Enrollment services revenue
 
 
 
 
 
 
 
 
Other income
 
 
 
 
 
 
 
 
Gain on sale of loans and debt repurchases
 
 
 
 
 
 
 
 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
Derivative settlements, net
 
 
 
 
 
 
 
 
Total other income (expense)
 
 
 
 
 
 
 
 
80,682 
74,410 
67,797 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
 
 
 
 
 
 
 
 
37,575 
34,314 
30,070 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
 
4,518 
7,240 
6,179 
Other
 
 
 
 
 
 
 
 
9,147 
10,439 
10,192 
Intersegment expenses, net
 
 
 
 
 
 
 
 
5,989 
5,383 
4,714 
Total operating expenses
 
 
 
 
 
 
 
 
57,229 
57,376 
51,155 
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
23,453 
17,042 
16,663 
Corporate overhead allocation
 
 
 
 
 
 
 
 
(1,957)
(1,968)
(1,379)
Income before income taxes
 
 
 
 
 
 
 
 
21,496 
15,074 
15,284 
Income tax expense
 
 
 
 
 
 
 
 
(8,168)
(5,728)
(5,807)
Net income (loss)
 
 
 
 
 
 
 
 
13,328 
9,346 
9,477 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
13,328 
9,346 
9,477 
Total assets
219,064 
 
 
 
150,600 
 
 
 
219,064 
150,600 
157,444 
Enrollment Services [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
Net interest income
 
 
 
 
 
 
 
 
Provision for loan losses
 
 
 
 
 
 
 
 
Net interest income (loss) after provision for loan losses
 
 
 
 
 
 
 
 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing fees
 
 
 
 
 
 
 
 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
Tuition payment processing and campus commerce revenue
 
 
 
 
 
 
 
 
Enrollment services revenue
 
 
 
 
 
 
 
 
98,078 
117,925 
130,470 
Other income
 
 
 
 
 
 
 
 
Gain on sale of loans and debt repurchases
 
 
 
 
 
 
 
 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
Derivative settlements, net
 
 
 
 
 
 
 
 
Total other income (expense)
 
 
 
 
 
 
 
 
98,078 
117,925 
130,470 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
 
 
 
 
 
 
 
 
19,296 
22,816 
25,155 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
64,961 
78,375 
86,548 
Depreciation and amortization
 
 
 
 
 
 
 
 
232 
6,491 
6,854 
Other
 
 
 
 
 
 
 
 
6,084 
10,416 
9,425 
Intersegment expenses, net
 
 
 
 
 
 
 
 
4,588 
3,768 
3,521 
Total operating expenses
 
 
 
 
 
 
 
 
95,161 
121,866 
131,503 
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
2,917 
(3,941)
(1,033)
Corporate overhead allocation
 
 
 
 
 
 
 
 
(1,943)
(1,968)
(1,379)
Income before income taxes
 
 
 
 
 
 
 
 
974 
(5,909)
(2,412)
Income tax expense
 
 
 
 
 
 
 
 
(369)
2,244 
917 
Net income (loss)
 
 
 
 
 
 
 
 
605 
(3,665)
(1,495)
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
605 
(3,665)
(1,495)
Total assets
34,791 
 
 
 
53,902 
 
 
 
34,791 
53,902 
45,738 
Total Fee-Based [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
40 
61 
79 
Interest expense
 
 
 
 
 
 
 
 
Net interest income
 
 
 
 
 
 
 
 
40 
61 
79 
Provision for loan losses
 
 
 
 
 
 
 
 
Net interest income (loss) after provision for loan losses
 
 
 
 
 
 
 
 
40 
61 
79 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing fees
 
 
 
 
 
 
 
 
243,428 
209,748 
175,657 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
56,744 
65,376 
69,037 
Tuition payment processing and campus commerce revenue
 
 
 
 
 
 
 
 
80,682 
74,410 
67,797 
Enrollment services revenue
 
 
 
 
 
 
 
 
98,078 
117,925 
130,470 
Other income
 
 
 
 
 
 
 
 
Gain on sale of loans and debt repurchases
 
 
 
 
 
 
 
 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
Derivative settlements, net
 
 
 
 
 
 
 
 
Total other income (expense)
 
 
 
 
 
 
 
 
478,932 
467,459 
442,961 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
 
 
 
 
 
 
 
 
175,963 
172,256 
158,103 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
64,961 
78,375 
86,548 
Depreciation and amortization
 
 
 
 
 
 
 
 
16,169 
32,146 
28,346 
Other
 
 
 
 
 
 
 
 
94,347 
91,360 
80,059 
Intersegment expenses, net
 
 
 
 
 
 
 
 
14,936 
14,431 
13,011 
Total operating expenses
 
 
 
 
 
 
 
 
366,376 
388,568 
366,067 
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
112,596 
78,952 
76,973 
Corporate overhead allocation
 
 
 
 
 
 
 
 
(10,050)
(9,840)
(6,896)
Income before income taxes
 
 
 
 
 
 
 
 
102,546 
69,112 
70,077 
Income tax expense
 
 
 
 
 
 
 
 
(38,967)
(26,264)
(26,626)
Net income (loss)
 
 
 
 
 
 
 
 
63,579 
42,848 
43,451 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
63,579 
42,848 
43,451 
Total assets
338,841 
 
 
 
295,461 
 
 
 
338,841 
295,461 
326,489 
Asset Generation and Management [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
638,604 
610,194 
590,736 
Interest expense
 
 
 
 
 
 
 
 
229,533 
263,788 
221,675 
Net interest income
 
 
 
 
 
 
 
 
409,071 
346,406 
369,061 
Provision for loan losses
 
 
 
 
 
 
 
 
18,500 
21,500 
(21,250)
Net interest income (loss) after provision for loan losses
 
 
 
 
 
 
 
 
390,571 
324,906 
347,811 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing fees
 
 
 
 
 
 
 
 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
Tuition payment processing and campus commerce revenue
 
 
 
 
 
 
 
 
Enrollment services revenue
 
 
 
 
 
 
 
 
Other income
 
 
 
 
 
 
 
 
15,223 
18,219 
15,416 
Gain on sale of loans and debt repurchases
 
 
 
 
 
 
 
 
11,004 
3,814 
1,433 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
35,256 
(51,809)
7,571 
Derivative settlements, net
 
 
 
 
 
 
 
 
(27,966)
(11,792)
(7,228)
Total other income (expense)
 
 
 
 
 
 
 
 
33,517 
(41,568)
17,192 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
 
 
 
 
 
 
 
 
2,292 
2,252 
2,791 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
30,945 
16,435 
13,381 
Intersegment expenses, net
 
 
 
 
 
 
 
 
57,572 
66,215 
70,018 
Total operating expenses
 
 
 
 
 
 
 
 
90,809 
84,902 
86,190 
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
333,279 
198,436 
278,813 
Corporate overhead allocation
 
 
 
 
 
 
 
 
(3,896)
(5,306)
(6,896)
Income before income taxes
 
 
 
 
 
 
 
 
329,383 
193,130 
271,917 
Income tax expense
 
 
 
 
 
 
 
 
(125,165)
(73,387)
(103,327)
Net income (loss)
 
 
 
 
 
 
 
 
204,218 
119,743 
168,590 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
204,218 
119,743 
168,590 
Total assets
27,387,461 
 
 
 
26,463,551 
 
 
 
27,387,461 
26,463,551 
25,821,806 
Corporate and Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
9,433 
7,305 
5,074 
Interest expense
 
 
 
 
 
 
 
 
4,669 
8,485 
9,649 
Net interest income
 
 
 
 
 
 
 
 
4,764 
(1,180)
(4,575)
Provision for loan losses
 
 
 
 
 
 
 
 
Net interest income (loss) after provision for loan losses
 
 
 
 
 
 
 
 
4,764 
(1,180)
(4,575)
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing fees
 
 
 
 
 
 
 
 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
Tuition payment processing and campus commerce revenue
 
 
 
 
 
 
 
 
Enrollment services revenue
 
 
 
 
 
 
 
 
Other income
 
 
 
 
 
 
 
 
32,218 
21,257 
14,097 
Gain on sale of loans and debt repurchases
 
 
 
 
 
 
 
 
695 
325 
6,907 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
13,337 
4,415 
(25,378)
Derivative settlements, net
 
 
 
 
 
 
 
 
(1,670)
(2,230)
(612)
Total other income (expense)
 
 
 
 
 
 
 
 
44,580 
23,767 
(4,986)
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
 
 
 
 
 
 
 
 
17,914 
18,318 
17,057 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
 
2,142 
1,479 
1,398 
Other
 
 
 
 
 
 
 
 
25,393 
20,943 
19,975 
Intersegment expenses, net
 
 
 
 
 
 
 
 
(15,764)
(15,270)
(13,992)
Total operating expenses
 
 
 
 
 
 
 
 
29,685 
25,470 
24,438 
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
19,659 
(2,883)
(33,999)
Corporate overhead allocation
 
 
 
 
 
 
 
 
13,946 
15,146 
13,792 
Income before income taxes
 
 
 
 
 
 
 
 
33,605 
12,263 
(20,207)
Income tax expense
 
 
 
 
 
 
 
 
2,939 
3,574 
12,501 
Net income (loss)
 
 
 
 
 
 
 
 
36,544 
15,837 
(7,706)
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
1,669 
431 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
34,875 
15,406 
(7,706)
Total assets
391,168 
 
 
 
207,003 
 
 
 
391,168 
207,003 
24,735 
Eliminations [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
(3,267)
(3,707)
(3,035)
Interest expense
 
 
 
 
 
 
 
 
(3,267)
(3,707)
(3,035)
Net interest income
 
 
 
 
 
 
 
 
Provision for loan losses
 
 
 
 
 
 
 
 
Net interest income (loss) after provision for loan losses
 
 
 
 
 
 
 
 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing fees
 
 
 
 
 
 
 
 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
(56,744)
(65,376)
(69,037)
Tuition payment processing and campus commerce revenue
 
 
 
 
 
 
 
 
Enrollment services revenue
 
 
 
 
 
 
 
 
Other income
 
 
 
 
 
 
 
 
(1,143)
Gain on sale of loans and debt repurchases
 
 
 
 
 
 
 
 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
Derivative settlements, net
 
 
 
 
 
 
 
 
Total other income (expense)
 
 
 
 
 
 
 
 
(57,887)
(65,376)
(69,037)
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
 
 
 
 
 
 
 
 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
(1,143)
Intersegment expenses, net
 
 
 
 
 
 
 
 
(56,744)
(65,376)
(69,037)
Total operating expenses
 
 
 
 
 
 
 
 
(57,887)
(65,376)
(69,037)
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
Corporate overhead allocation
 
 
 
 
 
 
 
 
Income before income taxes
 
 
 
 
 
 
 
 
Income tax expense
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
Total assets
$ (346,621)
 
 
 
$ (358,120)
 
 
 
$ (346,621)
$ (358,120)
$ (320,813)
Major Customer (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Concentration Risk [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing fees
$ 63,167 
$ 64,582 
$ 60,078 
$ 55,601 
$ 54,584 
$ 53,285 
$ 52,391 
$ 49,488 
$ 243,428 
$ 209,748 
$ 175,657 
Concentration Risk, Customer
 
 
 
 
 
 
 
 
Department 
 
 
Concentration Risk Dollar Value [Member]
 
 
 
 
 
 
 
 
 
 
 
Concentration Risk [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing fees
 
 
 
 
 
 
 
 
$ 97,300 
$ 69,500 
$ 51,000 
Legal Proceedings (Details) (Pending or Threatened Litigation [Member], USD $)
12 Months Ended
Dec. 31, 2013
Loss Contingencies [Line Items]
 
Loss contingency, inestimable loss
The Company has accrued an immaterial amount related to the legal proceedings described below. However, due to the relatively early stage of these matters and the uncertainty and risks inherent in class determination and the overall litigation process, the Company believes that a meaningful estimate of its exposure to any reasonably possible losses or range of reasonably possible losses, in excess of the amount accrued, cannot currently be made. 
Than Zaw v. Nelnet, Inc. [Member]
 
Loss Contingencies [Line Items]
 
Loss contingency, actions taken by court, arbitrator or mediator
As of the filing date of this report, the California State Court has not established, recognized, or certified a class.  
Than Zaw v. Nelnet, Inc. [Member] |
Named plaintiff [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency, Damages Sought, Value, Per Violation
$ 5,000 
Grant Keating v. Peterson's Nelnet, LLC et al [Member]
 
Loss Contingencies [Line Items]
 
Loss contingency, actions taken by court, arbitrator or mediator
As of the filing date of this report, the Ohio District Court has not established, recognized, or certified a class. 
Grant Keating v. Peterson's Nelnet, LLC et al [Member] |
Named plaintiff [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency, Damages Sought, Value, Per Violation
500 
Bais Yaakov of Spring Valley v. Peterson's Nelnet, LLC [Member]
 
Loss Contingencies [Line Items]
 
Loss contingency, actions taken by court, arbitrator or mediator
As of the filing date of this report, the New Jersey District Court has not established, recognized, or certified a class.  
Bais Yaakov of Spring Valley v. Peterson's Nelnet, LLC [Member] |
Named plaintiff [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency, Damages Sought, Value, Per Violation
500 
Bais Yaakov of Spring Valley v. Peterson's Nelnet, LLC [Member] |
Class action members [Member]
 
Loss Contingencies [Line Items]
 
Advertising faxes
10,000 
Loss Contingency, Damages Sought, Value
5,000,000 
Loss contingency, damages sought, value if trebled
$ 15,000,000 
Operating Leases Minimum Future Rentals (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Operating Leased Assets [Line Items]
 
 
 
Operating Leases, Rent Expense, Net
$ 8,100,000 
$ 8,100,000 
$ 8,200,000 
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
 
 
 
Operating Leases, Future Minimum Payments Due, Next Twelve Months
5,889,000 
 
 
Operating Leases, Future Minimum Payments, Due in Two Years
3,446,000 
 
 
Operating Leases, Future Minimum Payments, Due in Three Years
2,512,000 
 
 
Operating Leases, Future Minimum Payments, Due in Four Years
1,380,000 
 
 
Operating Leases, Future Minimum Payments, Due in Five Years
1,071,000 
 
 
Operating Leases, Future Minimum Payments, Due Thereafter
2,256,000 
 
 
Operating Leases, Future Minimum Payments Due
$ 16,554,000 
 
 
Defined Contribution Benefit Plan Defined Contribution Benefit Plan (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Defined Contribution Benefit Plan [Line Items]
 
 
 
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent
100.00% 
 
 
Defined Contribution Plan, Cost Recognized
$ 3.8 
$ 3.6 
$ 3.4 
Employer Match on Employee Contributions up to Three Percent of Employee Salary [Member]
 
 
 
Defined Contribution Benefit Plan [Line Items]
 
 
 
Defined Contribution Plan, Employer Matching Contribution, Percent
100.00% 
 
 
Employer Match on Employee Contributions Between Three and Five Percent of Employee Salary [Member]
 
 
 
Defined Contribution Benefit Plan [Line Items]
 
 
 
Defined Contribution Plan, Employer Matching Contribution, Percent
50.00% 
 
 
Maximum Employee Contribution Percentage Eligible for 100 Percent Employer Match [Member]
 
 
 
Defined Contribution Benefit Plan [Line Items]
 
 
 
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent
3.00% 
 
 
Maximum Employee Contribution Percentage Eligible for 50 Percent Employer Match After 100 Percent Employer Match [Member]
 
 
 
Defined Contribution Benefit Plan [Line Items]
 
 
 
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent
2.00% 
 
 
Stock Based Compensation Plan Employee Stock Based Compensation (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price
15.00% 
 
 
Restricted Stock Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Employee Share-based Compensation Expense
$ 5,827,000 
 
 
Allocated Share-based Compensation Expense
3,100,000 
2,200,000 
1,300,000 
Restricted Stock Activity [Roll Forward]
 
 
 
Non-vested Shares at Beginning of Year
378,671 
285,718 
311,119 
Granted
131,933 
168,833 
82,845 
Vested
(62,491)
(41,089)
(54,184)
Canceled
(41,062)
(34,791)
(54,062)
Non-vested Shares at End of Year
407,051 
378,671 
285,718 
Employee Share Purchase Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Allocated Share-based Compensation Expense
148,000 
114,000 
137,000 
Employee Share-based Compensation, Shares Issued
18,004 
21,766 
29,989 
Year one [Member] |
Restricted Stock Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Employee Share-based Compensation Expense
2,305,000 
 
 
Year two [Member] |
Restricted Stock Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Employee Share-based Compensation Expense
1,449,000 
 
 
Year three [Member] |
Restricted Stock Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Employee Share-based Compensation Expense
904,000 
 
 
Year four [Member] |
Restricted Stock Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Employee Share-based Compensation Expense
492,000 
 
 
Year five [Member] |
Restricted Stock Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Employee Share-based Compensation Expense
271,000 
 
 
Year six and thereafter [Member] |
Restricted Stock Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Employee Share-based Compensation Expense
$ 406,000 
 
 
Stock Based Compensation Plan Non-employee Directors Compensation Plan (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Share-based Goods and Nonemployee Services Transaction [Line Items]
 
 
 
Share-based Goods and Nonemployee Services Transaction, Securities Issued
15.435 
33.261 
33.902 
Non-employee Director Stock at Lower Cost
85.00% 
 
 
Share-based Goods and Nonemployee Services Transaction, Expense
$ 673,000 
$ 688,000 
$ 641,000 
Shares Issued - Deferred [Member]
 
 
 
Share-based Goods and Nonemployee Services Transaction [Line Items]
 
 
 
Share-based Goods and Nonemployee Services Transaction, Securities Issued
5279 
16700 
20843 
Non Employee Director Stock, Cumulative Deferred Shares
127,442 
 
 
Shares Issued - Not Deferred [Member]
 
 
 
Share-based Goods and Nonemployee Services Transaction [Line Items]
 
 
 
Share-based Goods and Nonemployee Services Transaction, Securities Issued
10156 
16561 
13059 
Related Party Transactions Transactions with Union Financial Services, Inc. (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Board of Directors Chairman [Member]
 
Related Party Transaction [Line Items]
 
Percent ownership of Union Financial Services Inc.
50.00% 
Director [Member]
 
Related Party Transaction [Line Items]
 
Percent ownership of Union Financial Services Inc.
50.00% 
Nelnet, Inc. [Member]
 
Related Party Transaction [Line Items]
 
Aircraft purchase price
$ 5.8 
percent of aircraft owned
65.00% 
Union Financial Services Inc. [Member]
 
Related Party Transaction [Line Items]
 
Proceeds from sale of percentage of aircraft
$ 2.0 
percent of aircraft owned
35.00% 
Related Party Transactions Transactions with Union Bank and Trust Company (Details) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Loan Servicing [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Student loans receivable, net
$ 25,907,589,000 
 
 
 
$ 24,830,621,000 
 
 
 
$ 25,907,589,000 
$ 24,830,621,000 
 
Loan and guaranty servicing fees
63,167,000 
64,582,000 
60,078,000 
55,601,000 
54,584,000 
53,285,000 
52,391,000 
49,488,000 
243,428,000 
209,748,000 
175,657,000 
Accounts Receivable, Net
56,072,000 
 
 
 
63,638,000 
 
 
 
56,072,000 
63,638,000 
 
Operating Cash Accounts [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents related party
54,730,000 
 
 
 
58,464,000 
 
 
 
54,730,000 
58,464,000 
 
Restricted cash - due to customers
167,576,000 
 
 
 
96,516,000 
 
 
 
167,576,000 
96,516,000 
 
Interest and Dividend Income, Operating
 
 
 
 
 
 
 
 
644,810,000 
613,853,000 
592,854,000 
Union Bank and Trust Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Other
11,400,000 
 
 
 
 
 
 
11,400,000 
Loan Purchases [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Financing Receivable, Significant Purchases
 
 
 
 
 
 
 
 
478,400,000 
300,000 
100,000 
Loan Servicing [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Student loans receivable, net
598,900,000 
 
 
 
445,800,000 
 
 
 
598,900,000 
445,800,000 
496,300,000 
Loan and guaranty servicing fees
 
 
 
 
 
 
 
 
1,300,000 
1,700,000 
1,900,000 
Accounts Receivable, Net
40,000 
 
 
 
138,000 
 
 
 
40,000 
138,000 
 
Funding, Participation Agreement [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Amount of Participation, FFELP Student Loans
342,500,000 
 
 
 
453,000,000 
 
 
 
342,500,000 
453,000,000 
 
Maximum Participation to Union Bank FFELP Loans
 
 
 
 
 
 
 
 
750,000,000 
 
 
Operating Cash Accounts [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents related party
182,500,000 
 
 
 
111,800,000 
 
 
 
182,500,000 
111,800,000 
 
Restricted cash - due to customers
127,800,000 
 
 
 
53,300,000 
 
 
 
127,800,000 
53,300,000 
 
Interest and Dividend Income, Operating
 
 
 
 
 
 
 
 
100,000 
200,000 
200,000 
Lease Arrangements [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Square Footage Leased to Union Bank and Trust Company
 
 
 
 
 
 
 
 
4,000 
 
 
Operating Leases, Income Statement, Lease Revenue
 
 
 
 
 
 
 
 
72,000 
74,000 
73,000 
Square Footage Leased From Union Bank and Trust Company
 
 
 
 
 
 
 
 
6,900 
 
1,300 
Maximum Rent Expense
 
 
 
 
 
 
 
 
159,000 
 
25,000 
Operating Leases, Rent Expense
 
 
 
 
 
 
 
 
159,000 
43,000 
4,000 
529 Plan Administration Fees [Member] |
Received from Union Bank [Member] |
Union Bank and Trust Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Other Fees Paid to/Received from Union Bank [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party
 
 
 
 
 
 
 
 
2,800,000 
1,700,000 
2,300,000 
General and Administrative Expense [Member] |
Paid to Union Bank [Member] |
Union Bank and Trust Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Other Fees Paid to/Received from Union Bank [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party
 
 
 
 
 
 
 
 
36,000 
36,000 
64,000 
Selling Expense [Member] |
Paid to Union Bank [Member] |
Union Bank and Trust Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Other Fees Paid to/Received from Union Bank [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party
 
 
 
 
 
 
 
 
107,000 
92,000 
104,000 
Cash Management [Member] |
Paid to Union Bank [Member] |
Union Bank and Trust Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Other Fees Paid to/Received from Union Bank [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party
 
 
 
 
 
 
 
 
140,000 
187,000 
185,000 
Employee Sharing Arrangement [Member] |
Received from Union Bank [Member] |
Union Bank and Trust Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Other Fees Paid to/Received from Union Bank [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party
 
 
 
 
 
 
 
 
170,000 
152,000 
144,000 
Health and Productivity Services [Member] |
Received from Union Bank [Member] |
Union Bank and Trust Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Other Fees Paid to/Received from Union Bank [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party
 
 
 
 
 
 
 
 
18,000 
31,000 
25,000 
401K Plan Administrative Fees [Member] |
Paid to Union Bank [Member] |
Union Bank and Trust Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Other Fees Paid to/Received from Union Bank [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party
 
 
 
 
 
 
 
 
370,000 
305,000 
270,000 
SLABS Fund-I and SLABS Fund-II [Member]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Fees paid to Union Bank as custodian
 
 
 
 
 
 
 
 
 
100,000 
 
January 20, 2012 Union Bank and Whitetail Rock Capital Management agreement [Member]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Management Fees Revenue
 
 
 
 
 
 
 
 
61,000 
44,000 
 
May 9, 2011 Union Bank and Whitetail Rock Capital Management agreement [Member]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Amount invested in funds
734,800,000 
 
 
 
 
 
 
 
734,800,000 
 
 
Management Fees Revenue
 
 
 
 
 
 
 
 
12,900,000 
8,400,000 
5,100,000 
expense [Member] |
Union Bank and Trust Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Management Fees Revenue
 
 
 
 
 
 
 
 
$ 52,000 
 
 
expense [Member] |
Parent Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Other Fees Paid to/Received from Union Bank [Abstract]
 
 
 
 
 
 
 
 
 
 
 
PercentOfNetIncomeResultingFromExpansionOfMortgageServicingOperations
 
 
 
 
 
 
 
 
50.00% 
 
 
income [Member] |
Parent Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Other Fees Paid to/Received from Union Bank [Abstract]
 
 
 
 
 
 
 
 
 
 
 
PercentOfNetIncomeResultingFromExpansionOfMortgageServicingOperations
 
 
 
 
 
 
 
 
50.00% 
 
 
Related Party Transactions Investment Services (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Related Party Transaction [Line Items]
 
 
 
Receivables due from Union Bank and Trust
$ 3,300,000 
$ 400,000 
 
Union Bank and Whitetail Rock Capital Management management agreement dated May 9, 2011, effective as of May 1, 2011 [Member]
 
 
 
Related Party Transaction [Line Items]
 
 
 
Basis points Whitetail Rock Capital Management earns from Union Bank on outstanding balance
25 
 
 
Amount invested in funds under Whitetail Rock Capital Management management agreement
734,800,000 
 
 
Percent of basis points earned on outstanding balance paid to custodian
50.00% 
 
 
Fee revenue related to investment services
12,900,000 
8,400,000 
5,100,000 
Union Bank and Whitetail Rock Capital Management management agreement dated January 20, 2012 [Member]
 
 
 
Related Party Transaction [Line Items]
 
 
 
Fee revenue related to investment services
61,000 
44,000 
 
Union Bank and Whitetail Rock Capital Management management agreement dated January 20, 2012 [Member] |
Board of Directors Chairman [Member]
 
 
 
Related Party Transaction [Line Items]
 
 
 
Shares contributed to the trusts
3,375,000 
 
 
SLABS Fund-I, SLABS Fund-II, and SLABS Fund-III [Member] [Member]
 
 
 
Related Party Transaction [Line Items]
 
 
 
Basis points Whitetail Rock Capital Management earns from Union Bank on outstanding balance
50 
 
 
Amount invested in funds under Whitetail Rock Capital Management management agreement
116,700,000 
 
 
Percent of basis points earned on outstanding balance paid to custodian
50.00% 
 
 
Fees paid to Union Bank as custodian
300,000 
 
 
SLABS Fund-I and SLABS Fund-II [Member]
 
 
 
Related Party Transaction [Line Items]
 
 
 
Fees paid to Union Bank as custodian
 
100,000 
 
expense [Member] |
Union Bank and Trust Company [Member]
 
 
 
Related Party Transaction [Line Items]
 
 
 
Fee revenue related to investment services
$ 52,000 
 
 
Assets and Liabilities that are Measured at Fair Value (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Assets [Abstract]
 
 
Investments
$ 192,040 1
$ 83,312 1
Fair value of derivative instruments
62,507 2
97,441 2
Total assets
254,547 
180,753 
Liabilities [Abstract]
 
 
Fair value of derivative instruments
17,969 2
70,890 2
Total liabilities
17,969 
70,890 
Student loan asset-backed securities [Member]
 
 
Assets [Abstract]
 
 
Investments
188,279 1
77,652 1
Equity securities [Member]
 
 
Assets [Abstract]
 
 
Investments
3,282 1
4,873 1
Debt securities [Member]
 
 
Assets [Abstract]
 
 
Investments
479 1
787 1
Level 1 [Member]
 
 
Assets [Abstract]
 
 
Investments
3,761 1
5,660 1
Fair value of derivative instruments
2
2
Total assets
3,761 
5,660 
Liabilities [Abstract]
 
 
Fair value of derivative instruments
2
2
Total liabilities
Level 1 [Member] |
Student loan asset-backed securities [Member]
 
 
Assets [Abstract]
 
 
Investments
1
1
Level 1 [Member] |
Equity securities [Member]
 
 
Assets [Abstract]
 
 
Investments
3,282 1
4,873 1
Level 1 [Member] |
Debt securities [Member]
 
 
Assets [Abstract]
 
 
Investments
479 1
787 1
Level 2 [Member]
 
 
Assets [Abstract]
 
 
Investments
188,279 1
77,652 1
Fair value of derivative instruments
62,507 2
97,441 2
Total assets
250,786 
175,093 
Liabilities [Abstract]
 
 
Fair value of derivative instruments
17,969 2
70,890 2
Total liabilities
17,969 
70,890 
Level 2 [Member] |
Student loan asset-backed securities [Member]
 
 
Assets [Abstract]
 
 
Investments
188,279 1
77,652 1
Level 2 [Member] |
Equity securities [Member]
 
 
Assets [Abstract]
 
 
Investments
1
1
Level 2 [Member] |
Debt securities [Member]
 
 
Assets [Abstract]
 
 
Investments
$ 0 1
$ 0 1
[1] 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. 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.
Fair Value of Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Financial Assets [Abstract]
 
 
 
 
Student loans receivable, net
$ 25,907,589 
$ 24,830,621 
 
 
Cash and cash equivalents
63,267 
66,031 
42,570 
283,801 
Investments
192,040 
83,312 
 
 
Restricted cash - due to customers
167,576 
96,516 
 
 
Accrued interest receivable
314,553 
307,518 
 
 
Derivative instruments
62,507 
97,441 
 
 
Financial Liabilities [Abstract]
 
 
 
 
Bonds and notes payable
25,955,289 
25,098,835 
 
 
Accrued interest payable
21,725 
14,770 
 
 
Due to customers
167,576 
96,516 
 
 
Derivative instruments
17,969 
70,890 
 
 
Level 1 [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Cash and cash equivalents
63,267 
66,031 
 
 
Investments
3,761 
5,660 
 
 
Restricted cash
727,838 
806,632 
 
 
Restricted cash - due to customers
167,576 
96,516 
 
 
Restricted investments
7,285 
8,830 
 
 
Accrued interest receivable
 
 
Derivative instruments
 
 
Financial Liabilities [Abstract]
 
 
 
 
Bonds and notes payable
 
 
Accrued interest payable
 
 
Due to customers
167,576 
96,516 
 
 
Derivative instruments
 
 
Level 2 [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Cash and cash equivalents
 
 
Investments
188,279 
77,652 
 
 
Restricted cash
 
 
Restricted cash - due to customers
 
 
Restricted investments
 
 
Accrued interest receivable
314,553 
307,518 
 
 
Derivative instruments
62,507 
97,441 
 
 
Financial Liabilities [Abstract]
 
 
 
 
Bonds and notes payable
25,577,250 
24,486,008 
 
 
Accrued interest payable
21,725 
14,770 
 
 
Due to customers
 
 
Derivative instruments
17,969 
70,890 
 
 
Level 3 [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Cash and cash equivalents
 
 
Investments
 
 
Restricted cash
 
 
Restricted cash - due to customers
 
 
Restricted investments
 
 
Accrued interest receivable
 
 
Derivative instruments
 
 
Financial Liabilities [Abstract]
 
 
 
 
Bonds and notes payable
 
 
Accrued interest payable
 
 
Due to customers
 
 
Derivative instruments
 
 
Fair value [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Cash and cash equivalents
63,267 
66,031 
 
 
Investments
192,040 
83,312 
 
 
Restricted cash
727,838 
806,632 
 
 
Restricted cash - due to customers
167,576 
96,516 
 
 
Restricted investments
7,285 
8,830 
 
 
Accrued interest receivable
314,553 
307,518 
 
 
Derivative instruments
62,507 
97,441 
 
 
Financial Liabilities [Abstract]
 
 
 
 
Bonds and notes payable
25,577,250 
24,486,008 
 
 
Accrued interest payable
21,725 
14,770 
 
 
Due to customers
167,576 
96,516 
 
 
Derivative instruments
17,969 
70,890 
 
 
Carrying value [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Cash and cash equivalents
63,267 
66,031 
 
 
Investments
192,040 
83,312 
 
 
Restricted cash
727,838 
806,632 
 
 
Restricted cash - due to customers
167,576 
96,516 
 
 
Restricted investments
7,285 
8,830 
 
 
Accrued interest receivable
314,553 
307,518 
 
 
Derivative instruments
62,507 
97,441 
 
 
Financial Liabilities [Abstract]
 
 
 
 
Bonds and notes payable
25,955,289 
25,098,835 
 
 
Accrued interest payable
21,725 
14,770 
 
 
Due to customers
167,576 
96,516 
 
 
Derivative instruments
17,969 
70,890 
 
 
held for investment [Member] |
Level 1 [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Student loans receivable, net
 
 
held for investment [Member] |
Level 2 [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Student loans receivable, net
 
 
held for investment [Member] |
Level 3 [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Student loans receivable, net
26,641,383 
25,418,623 
 
 
held for investment [Member] |
Fair value [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Student loans receivable, net
26,641,383 
25,418,623 
 
 
held for investment [Member] |
Carrying value [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Student loans receivable, net
$ 25,907,589 
$ 24,830,621 
 
 
Fair Value Fair Value Transfers (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Fair Value, Measurements, Recurring [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount
$ 0 
$ 0 
$ 0 
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount
Fair Value, Equity, Level 1 to Level 2 Transfers, Amount
Fair Value, Equity, Level 2 to Level 1 Transfers, Amount
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3
$ 0 
$ 0 
$ 0 
Quarterly Financial Information Quarterly Financial Information (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net interest income
$ 108,736 
$ 104,922 
$ 101,419 
$ 98,798 
$ 90,598 
$ 85,266 
$ 84,567 
$ 84,856 
$ 413,875 
$ 345,287 
$ 364,565 
Provision for loan losses
3,500 
5,000 
5,000 
5,000 
3,500 
5,000 
7,000 
6,000 
18,500 
21,500 
21,250 
Net interest income after provision for loan losses
105,236 
99,922 
96,419 
93,798 
87,098 
80,266 
77,567 
78,856 
395,375 
323,787 
343,315 
Loan and guaranty servicing revenue
63,167 
64,582 
60,078 
55,601 
54,584 
53,285 
52,391 
49,488 
243,428 
209,748 
175,657 
Tuition payment processing and campus commerce revenue
18,988 
19,927 
18,356 
23,411 
17,735 
17,928 
16,834 
21,913 
80,682 
74,410 
67,797 
Enrollment services revenue
21,735 
22,563 
24,823 
28,957 
25,890 
30,661 
29,710 
31,664 
98,078 
117,925 
130,470 
Other income
15,981 
8,613 
12,288 
9,416 
7,023 
12,699 
8,800 
10,954 
46,298 
39,476 
29,513 
Gain on sale of loans and debt repurchases
799 
2,138 
7,355 
1,407 
3,009 
195 
935 
11,699 
4,139 
8,340 
Derivative market value and foreign currency adjustments and derivative settlements, net
(5,655)
(16,648)
40,188 
1,072 
6,657 
(31,275)
(21,618)
(15,180)
18,957 
(61,416)
(25,647)
Salaries and benefits
(52,120)
(48,712)
(47,432)
(47,905)
(48,633)
(46,395)
(48,703)
(49,095)
196,169 
192,826 
177,951 
Cost to provide enrollment services
(13,864)
(14,668)
(16,787)
(19,642)
(16,172)
(20,151)
(20,374)
(21,678)
64,961 
78,375 
86,548 
Depreciation and amortization
(5,274)
(4,340)
(4,320)
(4,377)
(8,861)
(8,402)
(8,226)
(8,136)
18,311 
33,625 
29,744 
Operating expenses - other
(40,349)
(39,887)
(34,365)
(34,941)
(35,578)
(29,989)
(30,908)
(32,263)
149,542 
128,738 
113,415 
Income tax expense
(37,556)
(30,444)
(54,746)
(38,447)
(36,099)
(21,870)
(14,878)
(23,230)
161,193 
96,077 
117,452 
Net income
71,088 
63,046 
101,857 
68,350 
56,653 
36,952 
41,530 
43,293 
304,341 
178,428 
204,335 
Net income attributable to noncontrolling interest
568 
216 
614 
271 
19 
124 
136 
152 
1,669 
431 
Net income attributable to Nelnet, Inc.
$ 70,520 
$ 62,830 
$ 101,243 
$ 68,079 
$ 56,634 
$ 36,828 
$ 41,394 
$ 43,141 
$ 302,672 
$ 177,997 
$ 204,335 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$ 1.52 
$ 1.35 
$ 2.17 
$ 1.46 
$ 1.20 
$ 0.78 
$ 0.87 
$ 0.91 
$ 6.50 
$ 3.76 
$ 4.24 
Condensed Parent Only Financial Statements Condensed Parent Only Financial Statements (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Cash and cash equivalents
$ 63,267 
$ 66,031 
$ 42,570 
$ 283,801 
Investments
192,040 
83,312 
 
 
Restricted cash
735,123 
815,462 
 
 
Other assets
115,043 
88,976 
 
 
Fair value of derivative instruments
62,507 
97,441 
 
 
Total assets
27,770,849 
26,607,895 
25,852,217 
 
Notes payable
25,955,289 
25,098,835 
 
 
Other liabilities
164,300 
161,671 
 
 
Fair value of derivative instruments
17,969 
70,890 
 
 
Total liabilities
26,326,859 
25,442,682 
 
 
Additional paid-in capital
24,887 
32,540 
 
 
Retained earnings
1,413,492 
1,129,389 
 
 
Accumulated other comprehensive earnings
4,819 
2,813 
 
 
Total Nelnet, Inc. shareholders' equity
1,443,662 
1,165,208 
 
 
Noncontrolling interest
328 
 
 
Total equity
1,443,990 
1,165,213 
1,066,205 
906,633 
Total liabilities and shareholders' equity
27,770,849 
26,607,895 
 
 
Parent Company [Member]
 
 
 
 
Cash and cash equivalents
24,032 
12,124 
15,598 
164,429 
Investments
175,887 
67,564 
 
 
investment in subsidiary debt
233,095 
155,613 
 
 
Restricted cash
3,763 
63,258 
 
 
investment in subsidiaries
957,676 
915,148 
 
 
Other assets
272,910 
237,379 
 
 
Fair value of derivative instruments
25,673 
14,600 
 
 
Total assets
1,693,036 
1,465,686 
 
 
Notes payable
191,457 
204,232 
 
 
Other liabilities
39,620 
25,351 
 
 
Fair value of derivative instruments
17,969 
70,890 
 
 
Total liabilities
249,046 
300,473 
 
 
Common stock
464 
466 
 
 
Additional paid-in capital
24,887 
32,540 
 
 
Retained earnings
1,413,492 
1,129,389 
 
 
Accumulated other comprehensive earnings
4,819 
2,813 
 
 
Total Nelnet, Inc. shareholders' equity
1,443,662 
1,165,208 
 
 
Noncontrolling interest
328 
 
 
Total equity
1,443,990 
1,165,213 
 
 
Total liabilities and shareholders' equity
$ 1,693,036 
$ 1,465,686 
 
 
Condensed Parent Only Financial Statements parent-only results of operations (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Investment interest
 
 
 
 
 
 
 
 
$ 6,668 
$ 4,616 
$ 3,168 
Interest on bonds and notes payable
 
 
 
 
 
 
 
 
230,935 
268,566 
228,289 
Net interest income
108,736 
104,922 
101,419 
98,798 
90,598 
85,266 
84,567 
84,856 
413,875 
345,287 
364,565 
Other income
15,981 
8,613 
12,288 
9,416 
7,023 
12,699 
8,800 
10,954 
46,298 
39,476 
29,513 
Gain on debt repurchases
799 
2,138 
7,355 
1,407 
3,009 
195 
935 
11,699 
4,139 
8,340 
Derivative market value and derivative settlements, net
(5,655)
(16,648)
40,188 
1,072 
6,657 
(31,275)
(21,618)
(15,180)
18,957 
(61,416)
(25,647)
Total other income
 
 
 
 
 
 
 
 
499,142 
384,282 
386,130 
Operating expenses
 
 
 
 
 
 
 
 
428,983 
433,564 
407,658 
Income before income taxes
 
 
 
 
 
 
 
 
465,534 
274,505 
321,787 
Income tax expense
37,556 
30,444 
54,746 
38,447 
36,099 
21,870 
14,878 
23,230 
(161,193)
(96,077)
(117,452)
Net income
71,088 
63,046 
101,857 
68,350 
56,653 
36,952 
41,530 
43,293 
304,341 
178,428 
204,335 
Net income attributable to noncontrolling interest
568 
216 
614 
271 
19 
124 
136 
152 
1,669 
431 
Net income attributable to Nelnet, Inc.
70,520 
62,830 
101,243 
68,079 
56,634 
36,828 
41,394 
43,141 
302,672 
177,997 
204,335 
Parent Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Investment interest
 
 
 
 
 
 
 
 
7,911 
5,186 
4,132 
Interest on bonds and notes payable
 
 
 
 
 
 
 
 
4,433 
3,607 
1,162 
Net interest income
 
 
 
 
 
 
 
 
3,478 
1,579 
2,970 
Other income
 
 
 
 
 
 
 
 
7,112 
8,010 
4,304 
Gain on debt repurchases
 
 
 
 
 
 
 
 
11,905 
4,487 
7,255 
Equity in subsidiaries income
 
 
 
 
 
 
 
 
275,989 
224,011 
256,299 
Derivative market value and derivative settlements, net
 
 
 
 
 
 
 
 
28,134 
(47,262)
(55,911)
Total other income
 
 
 
 
 
 
 
 
323,140 
189,246 
211,947 
Operating expenses
 
 
 
 
 
 
 
 
5,626 
1,867 
6,634 
Income before income taxes
 
 
 
 
 
 
 
 
320,992 
188,958 
208,283 
Income tax expense
 
 
 
 
 
 
 
 
16,651 
10,530 
3,948 
Net income
 
 
 
 
 
 
 
 
304,341 
178,428 
204,335 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
1,669 
431 
Net income attributable to Nelnet, Inc.
 
 
 
 
 
 
 
 
$ 302,672 
$ 177,997 
$ 204,335 
Condensed Parent Only Financial Statements parent-only statements of cash flows (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net income attributable to Nelnet, Inc.
$ 302,672 
$ 177,997 
$ 204,335 
Net income attributable to noncontrolling interest
1,669 
431 
Net income
304,341 
178,428 
204,335 
Proceeds to terminate and or amend derivative instruments
65,890 
(6,005)
3,365 
Gain from sale of available-for-sale securities, net
5,938 
5,798 
Decrease in other assets
4,783 
(2,322)
3,176 
Increase (decrease) in other liabilities
(4,782)
(16,044)
6,487 
Net cash provided by operating activities
387,180 
299,318 
310,862 
Decrease (increase) in restricted cash
(147,743)
201,140 
(87,905)
Contingency payment related to business combination
(14,029)
Purchases of available-for-sale securities
(219,894)
(190,250)
Net cash (used in) provided by investing activities
496,580 
(792,654)
1,439,823 
Payments on notes payable
5,153,057 
4,444,099 
3,045,663 
Proceeds from issuance of notes payable
4,312,720 
5,066,950 
1,100,384 
Payments of debt issuance costs
13,697 
18,197 
2,282 
Dividends paid
(18,569)
(66,237)
(17,763)
Repurchases of common stock
13,136 
22,814 
27,134 
Proceeds from Issuance of common stock
561 
480 
512 
Payments received on employee stock notes receivable
1,140 
30 
Issuance of noncontrolling interest
Distribution made to noncontrolling interest
(1,351)
(431)
Net cash used in financing activities
(886,524)
516,797 
(1,991,916)
Net increase (decrease) in cash and cash equivalents
(2,764)
23,461 
(241,231)
Cash and cash equivalents, beginning of period
66,031 
42,570 
283,801 
Cash and cash equivalents, end of period
63,267 
66,031 
42,570 
Parent Company [Member]
 
 
 
Net income attributable to Nelnet, Inc.
302,672 
177,997 
204,335 
Net income attributable to noncontrolling interest
1,669 
431 
Net income
304,341 
178,428 
204,335 
Derivative market value adjustment
(57,525)
30,041 
36,226 
Proceeds to terminate and or amend derivative instruments
(6,469)
(6,005)
3,365 
Gain from debt repurchases
(11,905)
(4,487)
(7,255)
Equity in earnings of subsidiaries
(275,989)
(224,011)
(256,299)
Gain from sale of available-for-sale securities, net
(5,938)
(5,798)
Other
4,119 
3,218 
8,219 
Decrease in other assets
209,896 
169,256 
341,412 
Increase (decrease) in other liabilities
(16,205)
38,971 
(14,126)
Net cash provided by operating activities
176,735 
101,671 
344,129 
Decrease (increase) in restricted cash
59,495 
(29,082)
(3,083)
Contingency payment related to business combination
(5,893)
Purchases of available-for-sale securities
(217,415)
(186,727)
Proceeds from sales of available-for-sale securities
116,337 
162,533 
Purchase of subsidiary debt, net
(66,272)
(6,584)
108,334 
Purchases of other investments, net
(11,758)
Net cash (used in) provided by investing activities
(119,613)
(59,860)
99,358 
Payments on notes payable
(147,080)
(109,748)
(440,913)
Payments on notes payable due to a related party
(107,050)
Proceeds from issuance of notes payable
135,000 
153,380 
Payments of debt issuance costs
(644)
(1,111)
Dividends paid
(18,569)
(66,237)
(17,763)
Repurchases of common stock
(13,136)
(22,763)
(27,134)
Proceeds from Issuance of common stock
561 
480 
512 
Payments received on employee stock notes receivable
1,140 
30 
Issuance of noncontrolling interest
Distribution made to noncontrolling interest
(1,351)
(431)
Net cash used in financing activities
(45,214)
(45,285)
(592,318)
Net increase (decrease) in cash and cash equivalents
11,908 
(3,474)
(148,831)
Cash and cash equivalents, beginning of period
12,124 
15,598 
164,429 
Cash and cash equivalents, end of period
$ 24,032 
$ 12,124 
$ 15,598