NELNET INC, 10-K filed on 2/27/2015
Annual Report
Document and Entity Information Document (USD $)
12 Months Ended
Dec. 31, 2014
Jun. 30, 2014
Jan. 31, 2015
Common Class A [Member]
Jan. 31, 2015
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
 
 
34,663,780 
11,486,932 
Entity Public Float
 
$ 1,092,770,730 
 
 
Amendment Flag
false 
 
 
 
Entity Central Index Key
0001258602 
 
 
 
Entity Current Reporting Status
Yes 
 
 
 
Entity Voluntary Filers
No 
 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
 
Entity Well-known Seasoned Issuer
No 
 
 
 
Document Period End Date
Dec. 31, 2014 
 
 
 
Document Fiscal Year Focus
2014 
 
 
 
Document Fiscal Period Focus
FY 
 
 
 
Consolidated Balance Sheets (USD $)
Dec. 31, 2014
Dec. 31, 2013
Assets:
 
 
Student loans receivable, net
$ 28,005,195,000 
$ 25,907,589,000 
Cash and cash equivalents:
 
 
Cash and cash equivalents - not held at a related party
37,781,000 
8,537,000 
Cash and cash equivalents - held at a related party
92,700,000 
54,730,000 
Total cash and cash equivalents
130,481,000 
63,267,000 
Investments
149,123,000 
192,040,000 
Restricted cash and investments
850,440,000 
735,123,000 
Restricted cash - due to customers
118,488,000 
167,576,000 
Accrued interest receivable
351,588,000 
314,553,000 
Accounts receivable (net of allowance for doubtful accounts of $1,656 and $3,845, respectively)
50,552,000 
56,072,000 
Goodwill
126,200,000 
117,118,000 
Intangible assets, net
42,582,000 
6,132,000 
Property and equipment, net
45,894,000 
33,829,000 
Other assets
163,208,000 
115,043,000 
Fair value of derivative instruments
64,392,000 
62,507,000 
Total assets
30,098,143,000 
27,770,849,000 
Liabilities:
 
 
Bonds and notes payable
28,027,350,000 
25,955,289,000 
Accrued interest payable
25,904,000 
21,725,000 
Other liabilities
167,881,000 
164,300,000 
Due to customers
118,488,000 
167,576,000 
Fair value of derivative instruments
32,842,000 
17,969,000 
Total liabilities
28,372,465,000 
26,326,859,000 
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
17,290,000 
24,887,000 
Retained earnings
1,702,560,000 
1,413,492,000 
Accumulated other comprehensive earnings
5,135,000 
4,819,000 
Total Nelnet, Inc. shareholders' equity
1,725,448,000 
1,443,662,000 
Noncontrolling interest
230,000 
328,000 
Total equity
1,725,678,000 
1,443,990,000 
Total liabilities and equity
30,098,143,000 
27,770,849,000 
Common Class A [Member]
 
 
Common stock:
 
 
Common stock
348,000 
349,000 
Common Class B [Member]
 
 
Common stock:
 
 
Common stock
115,000 
115,000 
Variable Interest Entity, Primary Beneficiary [Member]
 
 
Assets:
 
 
Student loans receivable, net
28,181,244,000 
26,020,629,000 
Cash and cash equivalents:
 
 
Restricted cash and investments
846,199,000 
732,771,000 
Other assets
351,934,000 
313,748,000 
Fair value of derivative instrument, net
(20,455,000)
36,834,000 
Liabilities:
 
 
Bonds and notes payable
28,391,530,000 
26,244,222,000 
Other liabilities
280,233,000 
303,142,000 
Common stock:
 
 
Net assets of consolidated variable interest entities
$ 687,159,000 
$ 556,618,000 
Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Allowance for loan losses
$ 48,900 
$ 55,122 
Allowance for doubtful accounts (in Dollars)
$ 1,656 
$ 3,845 
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
34,756,384 
34,881,338 
Shares outstanding
34,756,384 
34,881,338 
Common Class B [Member]
 
 
Par value (in Dollars per share)
$ 0.01 
$ 0.01 
Shares authorized
60,000,000 
60,000,000 
Shares issued
11,486,932 
11,495,377 
Shares outstanding
11,486,932 
11,495,377 
Consolidated Statements of Income (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Interest income:
 
 
 
Loan interest
$ 703,007 
$ 638,142 
$ 609,237 
Investment interest
6,793 
6,668 
4,616 
Total interest income
709,800 
644,810 
613,853 
Interest expense:
 
 
 
Interest on bonds and notes payable
273,237 
230,935 
268,566 
Net interest income
436,563 
413,875 
345,287 
Less provision for loan losses
9,500 
18,500 
21,500 
Net interest income after provision for loan losses
427,063 
395,375 
323,787 
Other income (expense):
 
 
 
Loan and guaranty servicing revenue
240,414 
243,428 
209,748 
Tuition payment processing, school information, and campus commerce revenue
98,156 
80,682 
74,410 
Enrollment services revenue
82,883 
98,078 
117,925 
Other income
54,002 
46,298 
39,476 
Gain on sale of loans and debt repurchases, net
3,651 
11,699 
4,139 
Derivative market value and foreign currency adjustments and derivative settlements, net
15,860 
18,957 
(61,416)
Total other income
494,966 
499,142 
384,282 
Operating expenses:
 
 
 
Salaries and benefits
228,079 
196,169 
192,826 
Cost to provide enrollment services
53,307 
64,961 
78,375 
Depreciation and amortization
21,134 
18,311 
33,625 
Other
149,990 
149,542 
128,738 
Total operating expenses
452,510 
428,983 
433,564 
Income before income taxes
469,519 
465,534 
274,505 
Income tax expense
160,238 
161,193 
96,077 
Net income
309,281 
304,341 
178,428 
Net income attributable to noncontrolling interest
1,671 
1,669 
431 
Net income attributable to Nelnet, Inc.
$ 307,610 
$ 302,672 
$ 177,997 
Earnings per common share:
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$ 6.62 
$ 6.50 
$ 3.76 
Weighted average common shares outstanding - basic and diluted
46,469,615 
46,570,314 
47,369,331 
Consolidated Statements of Comprehensive Income (unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net income
$ 73,919 
$ 85,376 
$ 75,687 
$ 74,299 
$ 71,088 
$ 63,046 
$ 101,857 
$ 68,350 
$ 309,281 
$ 304,341 
$ 178,428 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains arising during period, net
 
 
 
 
 
 
 
 
9,006 
9,134 
10,230 
Less reclassification adjustment for gains recognized in net income, net of losses
 
 
 
 
 
 
 
 
(8,506)
(5,938)
(5,798)
Income tax effect
 
 
 
 
 
 
 
 
(184)
(1,190)
(1,619)
Total other comprehensive income
 
 
 
 
 
 
 
 
316 
2,006 
2,813 
Comprehensive income
 
 
 
 
 
 
 
 
309,597 
306,347 
181,241 
Net Income (Loss) Attributable to Noncontrolling Interest
308 
157 
693 
513 
568 
216 
614 
271 
1,671 
1,669 
431 
Comprehensive income attributable to Nelnet, Inc.
 
 
 
 
 
 
 
 
$ 307,926 
$ 304,678 
$ 180,810 
Consolidated Statements of Shareholders' Equity (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Preferred Stock [Member]
Additional paid-in capital [Member]
Retained earnings [Member]
Accumulated other comprehensive earnings [Member]
Employee notes receivable [Member]
Noncontrolling interest [Member]
Common Class A [Member]
Common Stock [Member]
Common Class B [Member]
Common Stock [Member]
Balance at Dec. 31, 2011
$ 1,066,205 
$ 0 
$ 49,245 
$ 1,017,629 
$ 0 
$ (1,140)
$ 0 
$ 356 
$ 115 
Balance (in Shares) at Dec. 31, 2011
 
 
 
 
 
 
35,643,102 
11,495,377 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Increase from Sale of Parent Equity Interest
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
177,997 
 
 
177,997 
 
 
 
 
 
Net income attributable to noncontrolling interest
431 
 
 
 
 
 
431 
 
 
Net income
178,428 
 
 
 
 
 
 
 
 
Other comprehensive earnings
2,813 
 
 
 
2,813 
 
 
 
 
Distribution made to noncontrolling interest
(431)
 
 
 
 
 
(431)
 
 
Cash dividend on Class A and Class B common stock
(66,237)
 
 
(66,237)
 
 
 
 
 
Issuance of common stock, net of forfeitures
3,916 
 
3,913 
 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
 
 
 
 
 
279,834 
Compensation expense for stock based awards
2,188 
 
2,188 
 
 
 
 
 
 
Repurchase of common stock
(22,814)
 
(22,806)
 
 
 
 
(8)
Repurchase of common stock (in Shares)
 
 
 
 
 
 
 
(806,023)
Reduction of employee stock notes receivable
1,140 
 
 
 
 
1,140 
 
 
 
Balance at Dec. 31, 2012
1,165,213 
32,540 
1,129,389 
2,813 
351 
115 
Balance (in Shares) at Dec. 31, 2012
 
 
 
 
 
 
35,116,913 
11,495,377 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Increase from Sale of Parent Equity Interest
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
302,672 
 
 
302,672 
 
 
 
 
 
Net income attributable to noncontrolling interest
1,669 
 
 
 
 
 
1,669 
 
 
Net income
304,341 
 
 
 
 
 
 
 
 
Other comprehensive earnings
2,006 
 
 
 
2,006 
 
 
 
 
Distribution made to noncontrolling interest
(1,351)
 
 
 
 
 
(1,351)
 
 
Cash dividend on Class A and Class B common stock
(18,569)
 
 
(18,569)
 
 
 
 
 
Issuance of common stock, net of forfeitures
2,379 
 
2,377 
 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
 
 
 
 
 
157,684 
Compensation expense for stock based awards
3,102 
 
3,102 
 
 
 
 
 
 
Repurchase of common stock
(13,136)
 
(13,132)
 
 
 
 
(4)
Repurchase of common stock (in Shares)
 
 
 
 
 
 
 
(393,259)
Balance at Dec. 31, 2013
1,443,990 
24,887 
1,413,492 
4,819 
328 
349 
115 
Balance (in Shares) at Dec. 31, 2013
 
 
 
 
 
 
34,881,338 
11,495,377 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Increase from Sale of Parent Equity Interest
201 
 
 
 
 
 
201 
 
 
Net income attributable to Nelnet, Inc.
307,610 
 
 
307,610 
 
 
 
 
 
Net income attributable to noncontrolling interest
1,671 
 
 
 
 
 
1,671 
 
 
Net income
309,281 
 
 
 
 
 
 
 
 
Other comprehensive earnings
316 
 
 
 
316 
 
 
 
 
Distribution made to noncontrolling interest
(1,970)
 
 
 
 
 
(1,970)
 
 
Cash dividend on Class A and Class B common stock
(18,542)
 
 
(18,542)
 
 
 
 
 
Issuance of common stock, net of forfeitures
3,554 
 
3,551 
 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
 
 
 
 
 
248,290 
Compensation expense for stock based awards
4,561 
 
4,561 
 
 
 
 
 
 
Repurchase of common stock
(15,713)
 
(15,709)
 
 
 
 
(4)
Repurchase of common stock (in Shares)
 
 
 
 
 
 
 
(381,689)
Conversion of Stock, Shares Converted
 
 
 
 
 
 
 
8,445 
(8,445)
Balance at Dec. 31, 2014
$ 1,725,678 
$ 0 
$ 17,290 
$ 1,702,560 
$ 5,135 
$ 0 
$ 230 
$ 348 
$ 115 
Balance (in Shares) at Dec. 31, 2014
 
 
 
 
 
 
34,756,384 
11,486,932 
Consolidated Statements of Shareholders' Equity (Parentheticals)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Cash dividend on Class A and Class B common stock - per share
$ 0.40 
$ 0.40 
$ 1.40 
Consolidated Statements of Cash Flows (unaudited) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net income attributable to Nelnet, Inc.
$ 307,610 
$ 302,672 
$ 177,997 
Net income attributable to noncontrolling interest
1,671 
1,669 
431 
Net income
309,281 
304,341 
178,428 
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions:
 
 
 
Depreciation and amortization, including debt discounts and student loan premiums and deferred origination costs
107,969 
79,484 
116,781 
Student loan discount accretion
(43,479)
(36,258)
(44,380)
Provision for loan losses
9,500 
18,500 
21,500 
Derivative market value adjustment
20,310 
(83,878)
27,833 
Foreign currency transaction adjustment
(58,013)
35,285 
19,561 
Payment for interest rate swap option
(9,087)
Proceeds (payments) to terminate and/or amend derivative instruments, net
1,765 
65,890 
(6,005)
Loss (gain) on sale of loans, net
2,964 
(33)
(116)
Gain from debt repurchases
(6,615)
(11,666)
(4,023)
Gain from sale of available-for-sale securities, net
(8,506)
(5,938)
(5,798)
Proceeds from sales of trading securities, net
3,128 
Deferred income tax expense (benefit)
19,659 
2,539 
(23,829)
Non-cash compensation expense
(4,699)
(3,329)
(3,020)
Other
7,127 
112 
1,945 
Decrease in accrued interest receivable
5,205 
8,341 
883 
Decrease in accounts receivable
6,690 
7,566 
16 
Decrease (increase) in other assets
(2,372)
4,783 
(2,322)
Increase (decrease) in accrued interest payable
(3,009)
433 
4,864 
(Decrease) increase in other liabilities
20,529 
(4,782)
(16,044)
Net cash provided by operating activities
357,449 
387,180 
299,318 
Cash flows from investing activities, net of acquisitions:
 
 
 
Purchases of student loans and student loan residual interests
(3,753,936)
(2,392,676)
(3,777,011)
Net proceeds from student loan repayments, claims, capitalized interest, participations, and other
3,700,005 
2,852,177 
3,112,744 
Proceeds from sale of student loans
50,190 
43,292 
107,093 
Purchases of available-for-sale securities
(192,998)
(219,894)
(190,250)
Proceeds from sales of available-for-sale securities
241,793 
103,250 
165,854 
Purchases of other investments
(45,925)
(20,302)
Repayments of receivables and other assets
15,819 
Purchases of property and equipment, net
(26,488)
(17,010)
(9,944)
(Increase) decrease in restricted cash and investments, net
(51,135)
147,743 
(201,140)
Business and asset acquisitions, net of cash acquired
(46,833)
Net cash (used in) provided by investing activities
(109,508)
496,580 
(792,654)
Cash flows from financing activities, net of borrowings assumed:
 
 
 
Payments on bonds and notes payable
(3,632,741)
(5,153,057)
(4,444,099)
Proceeds from issuance of bonds and notes payable
3,502,316 
4,312,720 
5,066,950 
Payments of debt issuance costs
(14,934)
(13,697)
(18,197)
Dividends paid
(18,542)
(18,569)
(66,237)
Repurchases of common stock
(15,713)
(13,136)
(22,814)
Proceeds from issuance of common stock
656 
561 
480 
Payments received on employee stock notes receivable
1,140 
Issuance of noncontrolling interest
201 
Distribution to noncontrolling interest
(1,970)
(1,351)
(431)
Net cash (used in) provided by financing activities
(180,727)
(886,524)
516,797 
Net increase (decrease) in cash and cash equivalents
67,214 
(2,764)
23,461 
Cash and cash equivalents, beginning of year
63,267 
66,031 
42,570 
Cash and cash equivalents, end of year
130,481 
63,267 
66,031 
Cash disbursements made for:
 
 
 
Interest
210,700 
190,998 
234,606 
Income taxes, net of refunds
155,828 
154,840 
114,758 
Noncash activity:
 
 
 
Investing activity - student loans and other assets acquired
2,571,997 
1,715,260 
Investing activity - sale of education lending subsidiary, including student loans and other assets
246,376 
Investing activity - note receivable obtained in connection with sale of education lending subsidiary
20,737 
Financing activity - borrowings and other liabilities transferred in sale of education lending subsidiary
225,139 
Financing activity - borrowings and other liabilities assumed in acquisition of student loans
$ 2,444,874 
$ 1,676,761 
$ 0 
Description of Business
Description of Business [Text Block]
Description of Business

Nelnet, Inc. and its subsidiaries (“Nelnet” or the “Company”) provides educational services in loan servicing, payment processing, education planning, and asset management. 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 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”).

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 continued opportunities to purchase FFELP loan portfolios from current FFELP loan holders looking to adjust their FFELP businesses. In addition, to reduce its reliance on interest income on student loans, the Company has significantly diversified and increased its education-related products and services.

The Company has three reportable operating segments. The Company's reportable operating segments include:

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

A description of each reportable operating segment is included below. In 2014, management determined that the Company's Enrollment Services business no longer met the quantitative thresholds for which separate information about an operating segment is required. Prior period segment operating results were restated to conform to the current period presentation. See note 14 for additional information on the Company's segment reporting.

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
Marketing, originating, and servicing private education 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
Providing outsourced services including call center, processing, and marketing 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 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 Federal Direct Loan Program and FFEL Program loans.

In addition, this segment provides business process outsourcing specializing in contact center management. The contact center solutions and services include taking inbound calls, helping with outreach campaigns and sales, and interacting with customers through multi-channels.

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. In addition, this operating segment provides school information system software for private and faith-based schools that help schools automate administrative processes such as admissions, scheduling, student billing, attendance, and grade book management. This segment 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, school information system software, and 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.

Asset Generation and Management

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.

Corporate and Other Activities

Other business activities and operating segments that are not reportable are combined and included in Corporate and Other Activities. Corporate and Other Activities include the following items:

The operating results of Whitetail Rock Capital Management, LLC ("WRCM"), the Company's SEC-registered investment advisory subsidiary
The operating results of the Enrollment Services business
Income earned on certain investment activities
Interest expense incurred on unsecured debt transactions
Other product and service offerings that are not considered reportable operating segments

Corporate and Other Activities also include certain corporate activities and overhead functions related to executive management, human resources, accounting, legal, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services.
Summary of Significant Accounting Policies and Practices
Significant Accounting Policies [Text Block]
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.
Noncontrolling Interest

Noncontrolling interest reflects the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interests in WRCM.
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 private education 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, 2014 and 2013.

Federally insured loans were originated under the FFEL Program by certain eligible lenders as defined by the Higher Education Act of 1965, as amended (the “Higher Education Act”). These loans, including related accrued interest, are guaranteed at their maximum level permitted under the Higher Education Act by an authorized guaranty agency, which has a contract of reinsurance with the Department. The terms of the loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest. Generally, Stafford and PLUS loans have repayment periods between five and ten years. Consolidation loans have repayment periods of twelve to thirty years. FFELP loans do not require repayment while the borrower is in-school, and during the grace period immediately upon leaving school. 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.

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 private education loans. Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFELP. These loans are used primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or borrowers' resources. The terms of the private education loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to 30 years. The private education 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 private education 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 private education 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 private education 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 private education 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 disclosures are presented on this basis 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, 2014 and 2013, the Company did not have any impaired loans as defined in the Receivables Topic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification.

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.

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 $55.0 million, $29.0 million, and $68.0 million in 2014, 2013, and 2012, 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 include allowances for doubtful accounts. Allowance estimates are based upon individual customer experience, as well as the age of receivables and likelihood of collection.

Business Combinations

The Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings.

Goodwill

The Company reviews goodwill for impairment annually (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 9 for information regarding the Company's annual goodwill impairment review.
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 private education loans typically begins six months following the borrower's graduation from a qualified institution, and the interest is either paid by the borrower or capitalized annually or at repayment.

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, school information, and campus commerce revenue - Tuition payment processing, school information, and campus commerce revenue includes actively managed tuition payment solutions, remote hosted school information systems software, 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 - 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.

Content Solutions - Several content solutions services, including services to connect students to colleges and universities, 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,
 
2014
 
2013
Federally insured loans
 
 
 
Stafford and other
$
6,030,825

 
6,686,626

Consolidation
22,165,605

 
19,363,577

Total
28,196,430

 
26,050,203

Private education loans
27,478

 
71,103

 
28,223,908

 
26,121,306

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(169,813
)
 
(158,595
)
Allowance for loan losses – federally insured loans
(39,170
)
 
(43,440
)
Allowance for loan losses – private education loans
(9,730
)
 
(11,682
)
 
$
28,005,195

 
25,907,589

 
 
 
 

(a) At December 31, 2014 and 2013, "loan discount, net of unamortized loan premiums and deferred origination costs" included $28.8 million and $20.2 million, respectively, of non-accretable discount associated with purchased loans of $8.5 billion and $4.4 billion, respectively.

Student Loan Residual Interests

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 (par value) of notes payable that carry interest rates on a spread to LIBOR or are set and periodically reset via a "dutch auction."

On April 25, 2014, the Company acquired the ownership interest in three FFELP student loan securitization trusts (the "2014 Trusts") giving the Company rights to the residual interest in a total of $2.6 billion of securitized federally insured loans and related assets. The 2014 Trusts include loans funded to term with $2.6 billion (par value) 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 the GCO Trust II and the 2014 Trusts, 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 $52.9 million and $68.7 million, respectively, and a bonds and notes payable fair value discount of $91.8 million and $163.7 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,
 
2014
 
2013
 
2012
Balance at beginning of period
$
55,122

 
51,902

 
48,482

Provision for loan losses:
 
 
 
 
 
Federally insured loans
11,000

 
20,000

 
22,000

Private education loans
(1,500
)
 
(1,500
)
 
(500
)
Total provision for loan losses
9,500

 
18,500

 
21,500

Charge-offs:
 

 
 

 
 
Federally insured loans
(15,260
)
 
(15,588
)
 
(21,217
)
Private education loans
(2,332
)
 
(3,683
)
 
(3,508
)
Total charge-offs
(17,592
)
 
(19,271
)
 
(24,725
)
Recoveries - private education loans
1,315

 
1,577

 
1,419

Purchase (sale) of federally insured loans, net
(10
)
 
(1,093
)
 
2,133

Sale of private education loans
(1,620
)
 

 

Transfer from repurchase obligation related to private education loans repurchased, net
2,185

 
3,507

 
3,093

Balance at end of period
$
48,900

 
55,122

 
51,902

 
 
 
 
 
 
Allocation of the allowance for loan losses:
 

 
 

 
 
Federally insured loans
$
39,170

 
43,440

 
40,120

Private education loans
9,730

 
11,682

 
11,782

Total allowance for loan losses
$
48,900

 
55,122

 
51,902



Repurchase Obligation

The Company has sold various portfolios of private education loans to third-parties. Per the terms of the servicing agreements, the Company’s servicing operations are obligated to repurchase loans subject to the sale agreements in the event such loans become 60 or 90 days delinquent. As of December 31, 2014, the balance of loans subject to these repurchase obligations was $155.3 million. 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,
 
2014
 
2013
 
2012
Beginning balance
$
16,143

 
16,130

 
19,223

Repurchase obligation transferred to the allowance for loan losses related to loans repurchased, net
(2,185
)
 
(3,507
)
 
(3,093
)
Repurchase obligation associated with loans sold
2,097

 
3,520

 

Current period income (a)
(4,235
)
 

 

Ending balance
$
11,820

 
16,143

 
16,130


(a)
During 2014, the Company recognized income related to the modification of certain servicing agreements in which the repurchase obligation was reduced. This income is included in "other income" on the consolidated statements of income.


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 private education loans that were delinquent 31 days or greater as of December 31, 2014, 2013, and 2012 was 29.8 percent, 12.7 percent, and 28.6 percent, respectively. The table below shows the Company’s federally insured student loan delinquency amounts.

 
As of December 31,
 
2014
 
2013
 
2012
Federally insured loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment (a)
$
2,805,228

 
 
 
$
2,872,505

 
 
 
$
3,099,637

 
 
Loans in forbearance (b)
3,288,412

 
 
 
3,370,025

 
 
 
3,322,301

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
18,460,279

 
83.5
%
 
16,337,922

 
82.4
%
 
15,253,249

 
82.2
%
Loans delinquent 31-60 days (c)
1,043,119

 
4.8

 
967,318

 
4.9

 
766,146

 
4.1

Loans delinquent 61-90 days (c)
588,777

 
2.7

 
550,333

 
2.9

 
410,576

 
2.2

Loans delinquent 91-120 days (c)
404,905

 
1.8

 
390,791

 
2.0

 
433,659

 
2.3

Loans delinquent 121-270 days (c)
1,204,405

 
5.4

 
1,117,936

 
5.6

 
1,236,943

 
6.7

Loans delinquent 271 days or greater (c)(d)
401,305

 
1.8

 
443,373

 
2.2

 
447,335

 
2.5

Total loans in repayment
22,102,790

 
100.0
%
 
19,807,673

 
100.0
%
 
18,547,908

 
100.0
%
Total federally insured loans
$
28,196,430

 
 

 
$
26,050,203

 
 

 
$
24,969,846

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
Bonds and Notes Payable

The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
 
As of December 31, 2014
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
25,713,431

 
0.19% - 6.90%
 
5/25/18 - 8/26/52
Bonds and notes based on auction
1,311,669

 
0.47% - 2.17%
 
3/22/32 - 11/26/46
Total variable-rate bonds and notes
27,025,100

 
 
 
 
FFELP warehouse facilities
1,241,665

 
0.16% - 0.26%
 
1/17/16 - 6/11/17
Unsecured line of credit

 
 
6/30/19
Unsecured debt - Junior Subordinated Hybrid Securities
71,688

 
3.63%
 
9/15/61
Other borrowings
81,969

 
1.67% - 5.10%
 
11/11/15 - 12/31/18
 
28,420,422

 
 
 
 
Discount on bonds and notes payable
(393,072
)
 
 
 
 
Total
$
28,027,350

 
 
 
 
 
 
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

 
 
 
 


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 and asset-backed securitizations.

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.

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, 2014, the Company had three FFELP warehouse facilities as summarized below.
 
 
NHELP-III (a)
 
NHELP-II (b)
 
NFSLW-I (c)
 
Total
Maximum financing amount
 
$
750,000

 
500,000

 
500,000

 
1,750,000

Amount outstanding
 
692,613

 
100,637

 
448,415

 
1,241,665

Amount available
 
$
57,387

 
399,363

 
51,585

 
508,335

Expiration of liquidity provisions
 
February 5, 2015

 
January 15, 2015

 
June 11, 2015

 
 
Final maturity date
 
January 17, 2016

 
January 15, 2017

 
June 11, 2017

 
 
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
 
$
41,578

 
9,924

 
21,931

 
73,433

(a)
On February 4, 2015, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to May 5, 2015.
(b)
On January 9, 2015, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to December 17, 2015, and to change the maturity date to December 17, 2017.
(c)
On January 27, 2015, the Company amended the agreement for this warehouse facility to temporarily increase the maximum financing amount to $1.2 billion. The maximum financing amount is scheduled to decrease $200.0 million and $250.0 million on April 30, 2015 and May 31, 2015, respectively.
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 securitization transactions completed in 2014 and 2013.
 
 
Securitizations completed during the year ended December 31, 2014
 
 
2014-1
 
2014-2
 
2014-3
 
2014-4
 
2014-5
 
2014-6 (a)
 
Total
 
 
 
 
Class A-1 notes
 
Class A-2 notes
 
Class A-3 notes
 
2014-2 total
 
 
 
Class A-1 notes
 
Class A-2 notes
 
2014-4 total
 
 
 
 
 
 
Date securities issued
 
2/6/14
 
3/12/14
 
3/12/14
 
3/12/14
 
3/12/14
 
4/30/14
 
5/23/14
 
5/23/14
 
5/23/14
 
6/18/14
 
7/31/14
 
 
Total original principal amount
 
$
458,500

 
 
 
 
 
 
 
509,000

 
719,800

 
 
 
 
 
384,500

 
603,000

 
565,000

 
$
3,239,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class A senior notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
445,000

 
191,000

 
222,000

 
84,000

 
497,000

 
700,700

 
267,500

 
107,500

 
375,000

 
587,000

 
565,000

 
3,169,700

Bond discount
 

 

 

 
(535
)
 
(535
)
 

 

 

 

 

 
(3,124
)
 
(3,659
)
Issue price
 
$
445,000

 
191,000

 
222,000

 
83,465

 
496,465

 
700,700

 
267,500

 
107,500

 
375,000

 
587,000

 
561,876

 
3,166,041

Cost of funds (1-month LIBOR plus:)
 
0.57
%
 
0.28
%
 
0.60
%
 
0.85
%
 
 
 
0.58
%
 
0.54
%
 
0.95
%
 
 
 
0.55
%
 
0.65
%
 
 
Final maturity date
 
9/25/41

 
6/25/21

 
3/25/30

 
7/27/37

 
 
 
6/25/41

 
11/27/34

 
11/25/43

 
 
 
7/25/41

 
11/25/47

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class B subordinated notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
13,500

 
 
 
 
 
 
 
12,000

 
19,100

 
 
 
 
 
9,500

 
16,000

 
 
 
70,100

Bond discount
 
(1,132
)
 
 
 
 
 
 
 
(1,046
)
 
(1,467
)
 
 
 
 
 
(1,138
)
 
(1,232
)
 
 
 
(6,015
)
Issue price
 
$
12,368

 
 
 
 
 
 
 
10,954

 
17,633

 
 
 
 
 
8,362

 
14,768

 
 
 
64,085

Cost of funds (1-month LIBOR plus:)
 
1.50
%
 
 
 
 
 
 
 
1.50
%
 
1.50
%
 
 
 
 
 
1.50
%
 
1.50
%
 
 
 
 
Final maturity date
 
10/25/47

 
 
 
 
 
 
 
6/25/41

 
10/25/50

 
 
 
 
 
9/25/51

 
5/25/49

 
 
 
 

 
 
Securitizations completed 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

 
 
 
 
 
 

(a)
Total original principal amount excludes the Class B subordinated tranches for the 2014-6, 2013-2, and 2013-5 transactions totaling $8.3 million, $34.0 million, and $9.0 million, respectively, that were retained at issuance. As of December 31, 2014, the Company has a total of $36.0 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"). As of December 31, 2014, the Company is currently sponsor on $1.3 billion of Auction Rate Securities.

Since February 2008, problems in the auction rate securities market as a whole have 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, 2014, 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.

Unsecured Line of Credit

The Company has a $350.0 million unsecured line of credit that has a maturity date of June 30, 2019. As of December 31, 2014, the $350.0 million unsecured line of credit had no amount outstanding and $350.0 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 private education loans in the Company’s portfolio

As of December 31, 2014, 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 3.63% at December 31, 2014. 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, 2014, the outstanding balance on the Hybrid Securities was $71.7 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. On October 31, 2014, the Company amended this facility to increase the borrowing capacity to $75.0 million and extend the maturity date to October 31, 2016. The line of credit has covenants and cross default provisions similar to those under the Company's unsecured line of credit. As of December 31, 2014, $75.0 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, 2014 and 2013, the outstanding balance on the note was $4.4 million and $4.5 million, respectively.

On January 1, 2014, the Company subparticipated the Company's participation interest in a loan receivable. As of December 31, 2014, the participated portion of the loan was$2.6 million, with an obligation to fund an additional $0.5 million. The outstanding balance of the subparticipation agreement is included in bonds and notes payable.

As of December 31, 2013, bonds and notes payable included $6.9 million of notes due to a third-party. The Company used the proceeds from these notes to invest in private education loan assets via a participation agreement. This participation was canceled in 2014.

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, 2014 and 2013, the accreted defeased debt that remained outstanding was $49.4 million and $45.9 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, 2014.

Maturity Schedule

Bonds and notes outstanding as of December 31, 2014 are due in varying amounts as shown below.
2015
 
$
4,393

2016
 
767,613

2017
 
549,052

2018
 
39,265

2019
 
437,003

2020 and thereafter
 
26,623,096

 
 
$
28,420,422


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.
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 a 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, 2014, the Company had $27.3 billion and $0.9 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 $16.5 billion of debt indexed to three-month LIBOR, the indices for which reset quarterly, and $9.9 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,
 
 
 
 
2014
 
2013
 
 
Maturity
 
Notional amount
 
Notional amount
 
 
2021
 
 
$
250,000

 
250,000

 
 
2022
 
 
1,900,000

 
1,900,000

 
 
2023
 
 
3,650,000

 
3,650,000

 
 
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
 
 

 
200,000

 
 
 
 
 
$
7,800,000

(b)
8,000,000

(b)
(a)This derivative has a forward effective start date in 2015.
(b)
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2014 and 2013, was one-month LIBOR plus 3.5 basis points.

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, 2014 and 2013, the Company had $12.7 billion and $11.1 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 1.84% and 1.83%, 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, 2014
 
As of December 31, 2013
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
 
 
2014
 
$

 
%
 
$
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

 
1,250,000

 
0.86

 
 
 
$
3,100,000

 
0.87
%
 
$
4,850,000

 
0.81
%
 
(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.
On August 20, 2014, the Company paid $9.1 million for an interest rate swaption to economically hedge loans earning fixed rate floor income. The interest rate swap option gives the Company the right, but not the obligation, to enter into a $250 million notional interest rate swap in which the Company would pay a fixed amount of 3.30% and receive discrete one-month LIBOR. If the interest rate swap option is exercised, the swap would become effective in 2019 and mature in 2024.

Interest rate swaps – unsecured debt hedges

As of December 31, 2014 and 2013, the Company had $71.7 million and $96.5 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. As of December 31, 2014 and 2013, the Company had the following derivatives outstanding that are used to effectively convert the variable interest rate on a portion of the Hybrid Securities to a fixed rate of 7.66%.
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
25,000

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

Foreign Currency Exchange Risk

In 2006, the Company issued €352.7 million of student loan asset-backed Euro Notes (the "Euro Notes") with an interest rate based on a spread to the EURIBOR index. As a result of the Euro 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 a cross-currency interest rate swap in connection with the issuance of the Euro Notes. Under the terms of the cross-currency interest rate swap, 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,
 
2014
 
2013 (b)
 
2012 (b)
Re-measurement of Euro Notes
$
58,013

 
(35,285
)
 
(19,561
)
Change in fair value of cross currency interest rate swaps
(57,289
)
 
26,354

 
2,210

Total impact to consolidated statements of income - income (expense) (a)
$
724

 
(8,931
)
 
(17,351
)

(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.
(b)
The 2013 and 2012 operating results include the re-measurement of an additional €420.5 million of student loan asset-backed Euro notes and the change in fair value of a related cross-currency interest rate swap entered into in connection with the issuance of such notes. In November 2013, the principal amount outstanding on the notes was changed to U.S. dollars and the cross-currency interest swap was terminated.
The re-measurement of the Euro-denominated bonds generally correlates with the change in fair value of the corresponding cross-currency interest rate swap. However, the Company will experience unrealized gains or losses related to the cross-currency interest rate swap if the two underlying indices (and related forward curve) do not move in parallel.
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, 2014
 
December 31, 2013
 
December 31, 2014
 
December 31, 2013
1:3 basis swaps
$
53,549

 
18,490

 

 

Interest rate swaps - floor income hedges
5,165

 
7,183

 
5,034

 
15,849

Interest rate swap option - floor income hedge
5,678

 

 

 

Interest rate swaps - hybrid debt hedges

 

 
7,353

 
2,120

Cross-currency interest rate swap

 
36,834

 
20,455

 

Total
$
64,392

 
62,507

 
32,842

 
17,969



During the years ended December 31, 2014 and 2013, the Company terminated certain derivatives for net proceeds of $1.8 million and $65.9 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
 
Net asset (liability)
Balance as of December 31, 2014
 
$
64,392

 
(12,387
)
 

 
52,005

Balance as of December 31, 2013
 
62,507

 
(15,437
)
 
(15,959
)
 
31,111


 
 
 
 
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 (received)
 
Net asset (liability)
Balance as of December 31, 2014
 
$
(32,842
)
 
12,387

 
(1,454
)
 
(21,909
)
Balance as of December 31, 2013
 
(17,969
)
 
15,437

 
3,630

 
1,098



The following table summarizes the effect of derivative instruments in the consolidated statements of income.
 
 
Year ended December 31,
 
 
2014
 
2013
 
2012
Settlements:
 
 

 
 

 
 
1:3 basis swaps
 
$
3,389

 
3,301

 
4,495

Interest rate swaps - floor income hedges
 
(24,380
)
 
(31,022
)
 
(19,270
)
Interest rate swaps - hybrid debt hedges
 
(1,025
)
 
(1,670
)
 
(2,231
)
Cross-currency interest rate swaps
 
173

 
(245
)
 
3,228

Other
 

 

 
(244
)
Total settlements - (expense) income
 
(21,843
)
 
(29,636
)
 
(14,022
)
Change in fair value:
 
 

 
 

 
 

1:3 basis swaps
 
36,824

 
7,467

 
676

Interest rate swaps - floor income hedges
 
8,797

 
36,719

 
(35,215
)
Interest rate swap option - floor income hedge
 
(3,409
)
 

 

Interest rate swaps - hybrid debt hedges
 
(5,233
)
 
12,997

 
1,717

Cross-currency interest rate swaps
 
(57,289
)
 
26,354

 
2,210

Other
 

 
341

 
2,779

Total change in fair value - (expense) income
 
(20,310
)
 
83,878

 
(27,833
)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
 
58,013

 
(35,285
)
 
(19,561
)
Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense)
 
$
15,860

 
18,957

 
(61,416
)


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, 2014, 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 for derivative instruments in the financial statements.

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 2016 through 2023. As of December 31, 2014, the fair value of derivatives with early termination provisions was a positive $34.7 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, 2014
 
As of December 31, 2013
 
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)
$
131,589

 
6,204

 
(236
)
 
137,557

 
171,931

 
7,111

 
(1,241
)
 
177,801

Equity securities
1,553

 
2,216

 
(33
)
 
3,736

 
1,502

 
1,783

 
(3
)
 
3,282

Total available-for-sale investments
$
133,142

 
8,420

 
(269
)
 
141,293

 
173,433

 
8,894

 
(1,244
)
 
181,083

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed securities
 
 
 
 
 
 
7,830

 
 
 
 
 
 
 
10,957

Total available-for-sale and trading investments
 
 
 
 
 
 
$
149,123

 
 
 
 
 
 
 
192,040

Restricted Investments (c):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts - held-to-maturity
 
 
 
 
 
 
$
50,276

 
 
 
 
 
 
 
7,285


(a)
As of December 31, 2014, 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, 2014, 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
386

 
386

6-10 years

 

After 10 years
131,203

 
137,171

Total
$
131,589

 
137,557



(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, 2014, 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
10,203

6-10 years

After 10 years
40,073

Total
$
50,276


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,
 
 
2014
 
2013
 
2012
Available-for-sale securities:
 
 
 
 
 
 
Gross realized gains
 
$
8,581

 
6,270

 
6,120

Gross realized losses
 
(75
)
 
(332
)
 
(322
)
Trading securities:
 
 
 
 
 
 
Unrealized (losses) gains, net
 
(135
)
 
221

 
254

Realized (losses) gains, net
 
(1,082
)
 
5

 
1,459

 
 
$
7,289

 
6,164

 
7,511


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):
 
2014
 
2013
 
2012
Other income
 
$
8,506

 
5,938

 
5,798

Income tax expense
 
(3,147
)
 
(2,197
)
 
(2,145
)
Net income
 
$
5,359

 
3,741

 
3,653

Business Combination Busniess Combination (Notes)
Business Combination Disclosure [Text Block]
Business Combination

Wilcomp Software, L.P. (d.b.a. RenWeb School Management Software) (“RenWeb”)

On June 3, 2014, the Company purchased 100 percent of the ownership interests of RenWeb. RenWeb provides school information systems for private and faith-based schools that help schools automate administrative processes such as admissions, scheduling, student billing, attendance, and grade book management. The combination of RenWeb’s school administration software and the Company’s tuition management and financial needs assessment services is expected to significantly increase the value of the Company’s offerings in this area, allowing the Company to deliver a comprehensive suite of solutions to schools.

The initial consideration paid by the Company for RenWeb was $44.0 million. In addition to the initial purchase price, additional payments are to be paid by the Company to the former owners of RenWeb based on certain operating results and other performance measures of RenWeb as defined in the purchase agreement. The contingent payments, if any, are payable when earned, and the potential undiscounted amount of all future payments that the Company could be required to make under the contingent consideration arrangement is between $0 and $4.0 million. Such payments, if any, will be paid no later than January 2017. As of the acquisition date, the Company accrued $2.3 million as additional consideration, which represented the estimated fair value of the contingent consideration arrangement. In December 2014, the Company reduced the estimated fair value of the contingent consideration by $1.3 million.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.
Cash and cash equivalents
 
$
326

Accounts receivable
 
961

Property and equipment
 
105

Other assets
 
22

Intangible assets
 
37,188

Excess cost over fair value of net assets acquired (goodwill)
 
9,082

Other liabilities
 
(1,341
)
Net assets acquired
 
$
46,343



The $37.2 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 18 years. The intangible assets that made up this amount included customer relationships of $25.5 million (20-year useful life), trade name of $6.4 million (20-year useful life), computer software of $4.9 million (5-year useful life), and non-competition agreements of $0.4 million (10-year useful life).
The $9.1 million of goodwill was assigned to the Tuition Payment Processing and Campus Commerce operating segment and is expected to be deductible for tax purposes. The amount allocated to goodwill was primarily attributable to anticipated synergies as discussed previously.

The proforma impacts of the acquisition on the Company's historical results prior to the acquisition were not material.
Intangible Assets Intangible Assets
Intangible Assets Disclosure [Text Block]
Intangible Assets

Intangible assets consist of the following:
 
Weighted average remaining useful life as of December 31, 2014 (months)
 
As of December 31, 2014
 
As of December 31, 2013
 
 
 
Amortizable intangible assets:
 
 
 
Customer relationships (net of accumulated amortization of $17,361 and $19,821, respectively)
209
 
$
27,330

 
6,132

Computer software (net of accumulated amortization of $1,896 and $0, respectively)
42
 
6,969

 

Trade names (net of accumulated amortization of $272 and $0, respectively)
233
 
6,150

 

Content (net of accumulated amortization of $0)
24
 
1,800

 

Covenants not to compete (net of accumulated amortization of $21 and $0, respectively)
113
 
333

 

Total - amortizable intangible assets
176
 
$
42,582

 
6,132



The Company recorded amortization expense on its intangible assets of $6.5 million, $3.3 million, and $19.0 million during the years ended December 31, 2014, 2013, and 2012, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of December 31, 2014, the Company estimates it will record amortization expense as follows:
2015
$
8,695

2016
6,249

2017
4,652

2018
3,533

2019
2,861

2020 and thereafter
16,592

 
$
42,582

Goodwill Goodwill
Goodwill Disclosure [Text Block]
Goodwill

The change in the carrying amount of goodwill by reportable operating segment was as follows:
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset Generation and Management (a)
 
Corporate and Other Activities
 
Total
Balance as of December 31, 2012 and 2013
$
8,596

 
58,086

 
41,883

 
8,553

 
117,118

Goodwill acquired during the period

 
9,082

 

 

 
9,082

Balance as of December 31, 2014
$
8,596

 
67,168

 
41,883

 
8,553

 
126,200


(a)
As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of new FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units.

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 2012, 2013, and 2014 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
 
2014
 
2013
Computer equipment and software
1-5 years
 
$
98,462

 
77,733

Office furniture and equipment
3-7 years
 
12,265

 
9,843

Leasehold improvements
1-15 years
 
3,645

 
3,618

Transportation equipment
10 years
 
3,877

 
7,398

Building and building improvements
5-39 years
 
11,336

 
10,366

Land
 
700

 
700

 
 
 
130,285

 
109,658

Accumulated depreciation
 
 
84,391

 
75,829

 
 
 
$
45,894

 
33,829



Depreciation expense for the years ended December 31, 2014, 2013, and 2012 related to property and equipment was $14.6 million, $15.1 million, and $12.9 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 on all matters to be voted on by the Company's shareholders. Each Class B share is convertible at any time at the holder's option into one Class A share. With the exception of the voting rights and the conversion feature, the Class A and Class B shares are identical in terms of other rights, including dividend and liquidation rights.

Stock Repurchases

The Company has a stock repurchase program that expires on May 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, 2014, 3.5 million shares may still be purchased under the Company's stock repurchase program. Shares repurchased by the Company during 2014, 2013, and 2012 are shown in the table below.
 
 
Total shares repurchased
 
Purchase price (in thousands)
 
Average price of shares repurchased (per share)
Year ended December 31, 2014
 
381,689

 
$
15,713

 
$
41.17

Year ended December 31, 2013
 
393,259

 
13,136

 
33.40

Year ended December 31, 2012
 
806,023

 
22,814

 
28.30



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,
 
2014
 
2013
 
2012
 
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.
$
304,540

 
3,070

 
307,610

 
300,043

 
2,629

 
302,672

 
176,647

 
1,350

 
177,997

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,005,915

 
463,700

 
46,469,615

 
46,165,785

 
404,529

 
46,570,314

 
47,010,034

 
359,297

 
47,369,331

Earnings per share - basic and diluted
$
6.62

 
6.62

 
6.62

 
6.50

 
6.50

 
6.50

 
3.76

 
3.76

 
3.76



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, 2014, a cumulative amount of 136,495 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, 2014, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $21.3 million, which is included in “other liabilities” on the consolidated balance sheet. Of this total, $13.9 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 $3.7 million prior to December 31, 2015 as a result of a lapse of applicable statutes of limitations, settlements, correspondence with examining authorities, and recognition or measurement considerations with federal and state jurisdictions; however, actual developments in this area could differ from those currently expected. Of the anticipated $3.7 million decrease, $2.4 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,
 
2014
 
2013
Gross balance - beginning of year
$
19,141

 
29,568

Additions based on tax positions of prior years
1,421

 
996

Additions based on tax positions related to the current year
4,393

 
3,812

Settlements with taxing authorities
(833
)
 
(7,470
)
Reductions for tax positions of prior years
(641
)
 
(6,470
)
Reductions based on tax positions related to the current year

 
(272
)
Reductions due to lapse of applicable statutes of limitations
(2,145
)
 
(1,023
)
Gross balance - end of year
$
21,336

 
19,141


All the reductions shown in the table above that are due to prior year tax positions and the lapse of statutes of limitations impacted the effective tax rate.

The Company's policy is to recognize interest and penalties accrued on uncertain tax positions as part of interest expense and other expense, respectively. As of both December 31, 2014 and 2013, $2.1 million in accrued interest and penalties 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 $0.1 million and $2.7 million for the years ended December 31, 2014 and 2012 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 in 2014 and 2012. 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 2011. The Company is no longer subject to U.S. state/local income tax examinations by tax authorities prior to 2007. As of December 31, 2014, the Company has significant tax uncertainties that remain unsettled in the following jurisdictions:

California        2010 through 2012
New York        2008 through 2011
Texas            2007 through 2009

The provision for income taxes consists of the following components:
 
Year ended December 31,
 
2014
 
2013
 
2012
Current:
 
 
 
 
 
Federal
$
138,269

 
153,756

 
118,490

State
2,545

 
4,776

 
1,383

Foreign
(235
)
 
122

 
33

Total current provision
140,579

 
158,654

 
119,906

 
 
 
 
 
 
Deferred:
 
 
 
 
 
Federal
16,598

 
1,676

 
(23,460
)
State
3,464

 
868

 
(358
)
Foreign
(403
)
 
(5
)
 
(11
)
Total deferred provision (benefit)
19,659

 
2,539

 
(23,829
)
Provision for income tax expense
$
160,238

 
161,193

 
96,077



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,
 
2014
 
2013
 
2012
Tax expense at federal rate
35.0
  %
 
35.0
  %
 
35.0
  %
Increase (decrease) resulting from:
 
 
 
 
 
State tax, net of federal income tax benefit
0.7

 
0.8

 
0.5

Provision for uncertain federal and state tax matters
0.4

 
(0.6)

 
0.2

Tax credits
(0.4)

 
(0.4)

 
(0.6)

Other
(1.4)

 

 
(0.1)

Effective tax rate
34.3
  %
 
34.8
  %
 
35.0
  %


The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following:
 
As of December 31,
 
2014
 
2013
Deferred tax assets:
 
 
 
Student loans
$
21,139

 
25,967

Intangible assets
12,682

 
23,675

Securitizations
7,626

 
10,407

Capital loss carry-back
3,974

 

Accrued expenses
2,872

 
4,162

Stock compensation
2,490

 
1,608

Deferred revenue
1,548

 
777

Other
109

 
28

Total gross deferred tax assets
52,440

 
66,624

Less valuation allowance
(304
)
 
(239
)
Net deferred tax assets
52,136

 
66,385

Deferred tax liabilities:
 
 
 
Debt repurchases
24,918

 
32,286

Loan origination services
19,258

 
23,750

Basis in certain derivative contracts
15,692

 
2,137

Depreciation
4,122

 
4,673

Unrealized gain on debt and equity securities
3,016

 
2,830

Partnership basis
1,143

 

Total gross deferred tax liabilities
68,149

 
65,676

Net deferred tax (liability) asset
$
(16,013
)
 
709



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.

Included on the balance sheet at December 31, 2014 and 2013 was a current income tax receivable of $10.2 million and a current income tax payable of $4.1 million, respectively.
Segment Reporting
Segment Reporting
 Segment Reporting

The Company has three reportable operating segments. The Company's reportable operating segments include:

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

The Company earns fee-based revenue through its Student Loan and Guaranty Servicing and Tuition Payment Processing 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.

In 2014, management determined that the Company's Enrollment Services business no longer met the quantitative thresholds for which separate information about an operating segment is required. Prior period segment operating results were restated to conform to the current period presentation.

The management reporting process measures the performance of the Company’s operating segments based on the management structure of the Company, as well as the methodology used by management to evaluate performance and allocate resources. Executive management (the "chief operating decision maker") evaluates the performance of the Company’s operating segments based on their financial results prepared in conformity with U.S. GAAP.  

The accounting policies of the Company’s operating segments are the same as those described in the summary of significant accounting policies. Intersegment revenues are charged by a segment that provides a product or service to another segment.  Intersegment revenues and expenses are included within each segment consistent with the income statement presentation provided to management.  Income taxes are allocated based on 38% of income before taxes for each individual operating segment. The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities.

Corporate and Other Activities

Other business activities and operating segments that are not reportable are combined and included in Corporate and Other Activities. Corporate and Other Activities includes the following items:

Income earned on certain investment activities
Interest expense incurred on unsecured debt transactions
Other product and service offerings that are not considered reportable operating segments including, but not limited to, WRCM, the SEC-registered investment advisory subsidiary, and the Enrollment Services business

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

Segment Results

The following tables include the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements.






 
Year ended December 31, 2014
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other Activities
 
Eliminations
 
Total
Total interest income
$
30

 
6

 
703,382

 
8,618

 
(2,236
)
 
709,800

Interest expense

 

 
269,742

 
5,731

 
(2,236
)
 
273,237

Net interest income
30

 
6

 
433,640

 
2,887

 

 
436,563

Less provision for loan losses

 

 
9,500

 

 

 
9,500

Net interest income after provision for loan losses
30

 
6

 
424,140

 
2,887

 

 
427,063

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
240,414

 

 

 

 

 
240,414

Intersegment servicing revenue
55,139

 

 

 

 
(55,139
)
 

Tuition payment processing, school information, and campus commerce revenue

 
98,156

 

 

 

 
98,156

Enrollment services revenue

 

 

 
82,883

 

 
82,883

Other income

 
1,268

 
21,532

 
31,202

 

 
54,002

Gain on sale of loans and debt repurchases, net

 

 
(1,357
)
 
5,008

 

 
3,651

Derivative market value and foreign currency adjustments, net

 

 
42,935

 
(5,232
)
 

 
37,703

Derivative settlements, net

 

 
(20,818
)
 
(1,025
)
 

 
(21,843
)
Total other income (expense)
295,553

 
99,424

 
42,292

 
112,836

 
(55,139
)
 
494,966

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
138,584

 
48,453

 
2,316

 
38,726

 

 
228,079

Cost to provide enrollment services

 

 

 
53,307

 

 
53,307

Depreciation and amortization
10,742

 
8,169

 

 
2,223

 

 
21,134

Other
70,211

 
13,006

 
33,611

 
33,162

 

 
149,990

Intersegment expenses, net
4,208

 
5,864

 
55,808

 
(10,741
)
 
(55,139
)
 

Total operating expenses
223,745

 
75,492

 
91,735

 
116,677

 
(55,139
)
 
452,510

Income (loss) before income taxes and corporate overhead allocation
71,838

 
23,938

 
374,697

 
(954
)
 

 
469,519

Corporate overhead allocation
(9,029
)
 
(3,010
)
 
(5,017
)
 
17,056

 

 

Income before income taxes
62,809

 
20,928

 
369,680

 
16,102

 

 
469,519

Income tax (expense) benefit
(23,867
)
 
(7,952
)
 
(140,477
)
 
12,058

 

 
(160,238
)
Net income
38,942

 
12,976

 
229,203

 
28,160

 

 
309,281

  Net income attributable to noncontrolling interest

 

 

 
1,671

 

 
1,671

Net income attributable to Nelnet, Inc.
$
38,942

 
12,976

 
229,203

 
26,489

 

 
307,610

 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
84,495

 
231,991

 
29,505,439

 
497,147

 
(220,929
)
 
30,098,143

 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2013
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other Activities
 
Eliminations
 
Total
Total interest income
$
40

 

 
638,604

 
9,433

 
(3,267
)
 
644,810

Interest expense

 

 
229,533

 
4,669

 
(3,267
)
 
230,935

Net interest income
40

 

 
409,071

 
4,764

 

 
413,875

Less provision for loan losses

 

 
18,500

 

 

 
18,500

Net interest income after provision for loan losses
40

 

 
390,571

 
4,764

 

 
395,375

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
243,428

 

 

 

 

 
243,428

Intersegment servicing revenue
56,744

 

 

 

 
(56,744
)
 

Tuition payment processing, school information, and campus commerce revenue

 
80,682

 

 

 

 
80,682

Enrollment services revenue

 

 

 
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

 
33,517

 
142,658

 
(57,887
)
 
499,142

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
119,092

 
37,575

 
2,292

 
37,210

 

 
196,169

Cost to provide enrollment services

 

 

 
64,961

 

 
64,961

Depreciation and amortization
11,419

 
4,518

 

 
2,374

 

 
18,311

Other
79,116

 
9,147

 
30,945

 
31,477

 
(1,143
)
 
149,542

Intersegment expenses, net
4,359

 
5,989

 
57,572

 
(11,176
)
 
(56,744
)
 

Total operating expenses
213,986

 
57,229

 
90,809

 
124,846

 
(57,887
)
 
428,983

Income before income taxes and corporate overhead allocation
86,226

 
23,453

 
333,279

 
22,576

 

 
465,534

Corporate overhead allocation
(6,150
)
 
(1,957
)
 
(3,896
)
 
12,003

 

 

Income before income taxes
80,076

 
21,496

 
329,383

 
34,579

 

 
465,534

Income tax (expense) benefit
(30,430
)
 
(8,168
)
 
(125,165
)
 
2,570

 

 
(161,193
)
Net income
49,646

 
13,328

 
204,218

 
37,149

 

 
304,341

  Net income attributable to noncontrolling interest

 

 

 
1,669

 

 
1,669

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

 
13,328

 
204,218

 
35,480

 

 
302,672

Total assets
$
84,986

 
219,064

 
27,387,461

 
425,959

 
(346,621
)
 
27,770,849

 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2012
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other Activities
 
Eliminations
 
Total
Total interest income
$
53

 
8

 
610,194

 
7,305

 
(3,707
)
 
613,853

Interest expense

 

 
263,788

 
8,485

 
(3,707
)
 
268,566

Net interest income
53

 
8

 
346,406

 
(1,180
)
 

 
345,287

Less provision for loan losses

 

 
21,500

 

 

 
21,500

Net interest income after provision for loan losses
53

 
8

 
324,906

 
(1,180
)
 

 
323,787

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
209,748

 

 

 

 

 
209,748

Intersegment servicing revenue
65,376

 

 

 

 
(65,376
)
 

Tuition payment processing, school information, and campus commerce revenue

 
74,410

 

 

 

 
74,410

Enrollment services revenue

 

 

 
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

 
(41,568
)
 
141,692

 
(65,376
)
 
384,282

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
115,126

 
34,314

 
2,252

 
41,134

 

 
192,826

Cost to provide enrollment services

 

 

 
78,375

 

 
78,375

Depreciation and amortization
18,415

 
7,240

 

 
7,970

 

 
33,625

Other
70,505

 
10,439

 
16,435

 
31,359

 

 
128,738

Intersegment expenses, net
5,280

 
5,383

 
66,215

 
(11,502
)
 
(65,376
)
 

Total operating expenses
209,326

 
57,376

 
84,902

 
147,336

 
(65,376
)
 
433,564

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

 
17,042

 
198,436

 
(6,824
)
 

 
274,505

Corporate overhead allocation
(5,904
)
 
(1,968
)
 
(5,306
)
 
13,178

 

 

Income before income taxes
59,947

 
15,074

 
193,130

 
6,354

 

 
274,505

Income tax (expense) benefit
(22,780
)
 
(5,728
)
 
(73,387
)
 
5,818

 

 
(96,077
)
Net income
37,167

 
9,346

 
119,743

 
12,172

 

 
178,428

  Net income attributable to noncontrolling interest

 

 

 
431

 

 
431

Net income attributable to Nelnet, Inc.
$
37,167

 
9,346

 
119,743

 
11,741

 

 
177,997

Total assets
$
90,959

 
150,600

 
26,463,551

 
260,905

 
(358,120
)
 
26,607,895

 
 
 
 
 
 
 
 
 
 
 
 
Major Customer Major Customer
Concentration Risk Disclosure [Text Block]
Major Customer

The Company earns loan servicing revenue from a servicing contract with the Department that currently expires on June 16, 2019. Revenue earned by the Company's Student Loan and Guaranty Servicing operating segment related to this contract was $124.4 million, $97.4 million, and $69.5 million for the years ended December 31, 2014, 2013, and 2012, respectively.
Legal Proceedings
Legal Proceedings
Legal Proceedings and Regulatory Matters

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 legal proceedings in which the plaintiffs have made allegations that one or more putative classes should be certified by the applicable court. With respect to the three proceedings specifically discussed below, it is significant to note that two matters have been settled and terminated for immaterial amounts, no putative class has actually been certified in the other proceeding still pending, the Company's position is that class certification would be inappropriate in that pending proceeding, and the Company has been granted a motion for a summary judgment dismissing the case and intends to vigorously contest the appeal and class certification in the remaining matter.


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 complaint alleged 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 alleged 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 alleged 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 sought to establish a class action. 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 was finalized and received court approval on January 26, 2015.


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 case was subsequently moved to the U.S. Federal District Court for the Northern District of California. The lawsuit was originally instituted on December 30, 2010, and alleged 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. 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 was finalized and received court approval on November 13, 2014.


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 "Keating Defendants"), in connection with a lawsuit by Grant Keating in the U.S. Federal 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 Keating 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 Keating 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 Keating Defendants filed motions for summary judgment, and the named plaintiff filed a motion for class certification. On May 12, 2014, the Ohio District Court granted the Keating Defendants' motion for summary judgment, dismissing the case. On September 8, 2014, the named plaintiff filed an appeal brief with the Circuit Court of Appeals and on October 22, 2014, the Keating Defendants filed a responsive brief. As of the filing date of this report, the Ohio District Court has not established, recognized, or certified a class. The Keating Defendants intend to continue to defend themselves vigorously in this lawsuit.

Due to the uncertainty and risks inherent in class determination and the overall litigation process, the Company believes that a meaningful estimate of a reasonably possible loss, if any, or range of reasonably possible losses, if any, for this lawsuit cannot currently be made.

Regulatory Matters

Consumer Financial Protection Bureau Examination

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") established the Consumer Financial Protection Bureau (the "CFPB"), which has broad authority to regulate a wide range of consumer financial products and services. On December 3, 2013, the CFPB issued a rule that allows the CFPB to supervise nonbank student loan servicers that handle more than one million borrowers, including the Company, thus giving the CFPB broad authority to examine, investigate, supervise, and otherwise regulate the Company's businesses, including the authority to impose fines and require changes with respect to any practices that the CFPB finds to be unfair, deceptive, or abusive.

The CFPB is currently conducting its initial supervisory examination of the large nonbank student loan servicers, including the Company. If the CFPB were to determine the Company was not in compliance, it is possible that this could result in material adverse consequences, including, without limitation, settlements, fines, penalties, adverse regulatory actions, changes in the Company's practices, or other actions. However, the Company is unable to estimate at this time any potential financial or other impact that could result from the CFPB's examination, in the event that any adverse regulatory actions occur.
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, 2014, 2013, and 2012 was $8.8 million, $8.1 million, and $8.1 million, respectively. Minimum future rentals, as of December 31, 2014, under noncancelable operating leases are shown below:
2015
$
4,468

2016
4,106

2017
3,127

2018
2,669

2019
2,404

2020 and thereafter
6,273

 
$
23,047

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 $4.2 million, $3.8 million, and $3.6 million during the years ended December 31, 2014, 2013, and 2012, respectively.
Stock Based Compensation Plan
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
. Stock Based Compensation Plans

Restricted Stock Plan

The following table summarizes restricted stock activity:
 
Year ended December 31,
 
2014
 
2013
 
2012
Non-vested shares at beginning of year
407,051

 
378,671

 
285,718

Granted
189,716

 
131,933

 
168,833

Vested
(77,219
)
 
(62,491
)
 
(41,089
)
Canceled
(20,085
)
 
(41,062
)
 
(34,791
)
Non-vested shares at end of year
499,463

 
407,051

 
378,671



As of December 31, 2014, there was $9.0 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.
2015
$
3,694

2016
2,174

2017
1,261

2018
736

2019
439

2020 and thereafter
694

 
$
8,998



For the years ended December 31, 2014, 2013, and 2012, the Company recognized compensation expense of $4.6 million, $3.1 million, and $2.2 million, respectively, related to shares issued under the restricted stock plan, which is included in "salaries and benefits" on the consolidated statements of income.

Employee Share Purchase Plan

The Company has an employee share purchase plan pursuant to which employees are entitled to purchase Class A common stock from payroll deductions at a 15 percent discount from market value. During the years ended December 31, 2014, 2013, and 2012, the Company recognized compensation expense of approximately $131,000, $148,000, and $114,000, respectively, in connection with issuing 18,140 shares, 18,004 shares, and 21,766 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, 2014, 2013, and 2012, the Company recognized approximately $777,000, $673,000, and $688,000, 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, 2014, 2013, and 2012.

 
Shares issued - not deferred
 
Shares- deferred
 
Total
Year ended December 31, 2014
8,067

 
10,175

 
18,242

Year ended December 31, 2013
10,156

 
5,279

 
15,435

Year ended December 31, 2012
16,561

 
16,700

 
33,261



As of December 31, 2014, a cumulative amount of 136,495 shares have been deferred by directors and will be issued upon the termination of their service on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation.
Related Party Transactions
Related Party Transactions Disclosure [Text Block]
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, and 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 a significant number of shares of the Company because it serves in a capacity of trustee or account manager for various trusts and accounts holding shares of the Company, and may share voting and/or investment power with respect to such shares. Mr. Dunlap and Ms. Muhleisen beneficially own a significant percent of the voting rights of the Company's outstanding common stock.

The Company has entered into certain contractual arrangements with Union Bank. These transactions are summarized below.

Loan Purchases and Sales

During the years ended December 31, 2014, 2013, and 2012, the Company purchased FFELP student loans from Union Bank of $0.2 million (par value), $478.4 million (par value), and $0.3 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 2014 and 2012.

During 2014, the Company sold $16.5 million (par value) of private education loans to Union Bank. No discount or premium was received.

On December 22, 2014, the Company entered into an agreement with Union Bank in which the Company will provide marketing, origination, and loan servicing services to Union Bank related to private education loans. The Company has committed to purchase, or arrange for a designee to purchase, all volume originated by Union Bank under this agreement. No loans were originated under this agreement in 2014.

Loan Servicing

The Company serviced $581.4 million, $598.9 million, and $445.8 million of FFELP and private education loans for Union Bank as of December 31, 2014, 2013, and 2012, respectively Servicing revenue earned by the Company from servicing loans for Union Bank was $0.4 million, $1.3 million, and $1.7 million for the years ended December 31, 2014, 2013, and 2012, respectively. In September 2013, the servicing agreement between the Company and Union Bank was amended to change the calculation of servicing fees paid by Union Bank, which led to a decrease in the servicing revenue earned by the Company from Union Bank in 2014 compared to 2013. As of December 31, 2014 and 2013, accounts receivable includes approximately $36,000 and $40,000, 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, 2014 and 2013, $543.0 million and $342.5 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.

Subparticipation Agreement

On January 1, 2014, the Company subparticipated the Company's participation interest in a loan receivable from an unrelated third party to Union Bank. As of December 31, 2014, the participated portion of the loan was $2.6 million, with an obligation to fund an additional $0.5 million. As part of this agreement, Union Bank will pay the Company monthly servicing fees equal to 40 basis points on the participated portion of the outstanding principal balance of the loan.

Operating Cash Accounts

The majority of the Company's cash operating accounts are maintained at Union Bank. The Company also invests amounts in the Short term Federal Investment Trust (“STFIT”) of the Student Loan Trust Division of Union Bank, which are included in “cash and cash equivalents - held at a related party” and “restricted cash - due to customers” on the accompanying consolidated balance sheets. As of December 31, 2014 and 2013, the Company had $107.6 million and $81.0 million, respectively, invested in the STFIT or deposited at Union Bank in operating accounts, of which $14.9 million and $26.3 million as of December 31, 2014 and 2013, 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, 2014, 2013, and 2012, was $0.2 million, $0.1 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, 2014, 2013, and 2012, the Company has received fees of $3.4 million, $2.8 million, and $1.7 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 $76,000, $72,000, and $74,000 for commercial rent and storage income during 2014, 2013, and 2012, respectively. The lease agreement expires on June 30, 2018.

The Company had a lease agreement with Union Bank under which the Company leased office space. The Company paid Union Bank approximately $71,000, $159,000, and $43,000 during 2014, 2013, and 2012, respectively. The lease agreement expired in May 2014.

Other Fees Paid to Union Bank

During the years ended December 31, 2014, 2013, and 2012, the Company paid Union Bank approximately $57,000, $107,000, and $92,000, respectively, in commissions; approximately $117,000, $140,000, and $187,000, respectively, in cash management fees, and approximately $311,000, $52,000, and $0, respectively, in connection with servicing opportunities for various asset classes. In addition, the Company pays Union Bank $36,000 each year for administrative services.

Other Fees Received from Union Bank

During the years ended December 31, 2014, 2013, and 2012, Union Bank paid the Company approximately $178,000, $170,000, and $152,000, respectively, under an employee sharing arrangement and approximately $14,000, $18,000, and $31,000, respectively, for health and productivity services.

401(k) Plan Administration

Union Bank administers the Company's 401(k) defined contribution plan. Fees paid to Union Bank to administer the plan are paid by the plan participants and were approximately $450,000, $370,000, and $305,000 during the years ended December 31, 2014, 2013, and 2012, respectively.

Investment Services

Union Bank has established various trusts whereby Union Bank serves as trustee for the purpose of purchasing, holding, managing, and selling investments in student loan asset-backed securities. 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, 2014, the outstanding balance of investments in the trusts was $536.0 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, 2014, 2013, and 2012, the Company earned $13.4 million, $12.9 million, and $8.4 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 Mr. 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, 2014, 2013, and 2012, the Company earned approximately $66,000, $61,000, and $44,000, respectively, of fees under this agreement.

As of December 31, 2014 and 2013, accounts receivable included $1.7 million and $3.3 million, respectively, due from Union Bank related to fees earned by WRCM from the investment services described above.

WRCM has established five 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, 2014, the outstanding balance of investments in these five funds was $144.9 million. For the years ended December 31, 2014, 2013, and 2012, the Company paid Union Bank $0.3 million, $0.3 million, and $0.1 million, respectively, as custodian.
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, 2014.
 
As of December 31, 2014
 
As of December 31, 2013
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments: (a)
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed securities
$

 
145,000

 
145,000

 

 
188,279

 
188,279

Equity securities
3,736

 

 
3,736

 
3,282

 

 
3,282

Debt securities
387

 

 
387

 
479

 

 
479

      Total investments
4,123

 
145,000

 
149,123

 
3,761

 
188,279

 
192,040

Fair value of derivative instruments (b)

 
64,392

 
64,392

 

 
62,507

 
62,507

      Total assets
$
4,123

 
209,392

 
213,515

 
3,761

 
250,786

 
254,547

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

 
32,842

 
32,842

 

 
17,969

 
17,969

      Total liabilities
$

 
32,842

 
32,842

 

 
17,969

 
17,969


(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, 2014
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
28,954,266

 
28,005,195

 

 

 
28,954,266

Cash and cash equivalents
130,481

 
130,481

 
130,481

 

 

Investments
149,123

 
149,123

 
4,123

 
145,000

 

Restricted cash
800,164

 
800,164

 
800,164

 

 

Restricted cash – due to customers
118,488

 
118,488

 
118,488

 

 

Restricted investments
50,276

 
50,276

 
50,276

 

 

Accrued interest receivable
351,588

 
351,588

 

 
351,588

 

Derivative instruments
64,392

 
64,392

 

 
64,392

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
27,809,997

 
28,027,350

 

 
27,809,997

 

Accrued interest payable
25,904

 
25,904

 

 
25,904

 

Due to customers
118,488

 
118,488

 
118,488

 

 

Derivative instruments
32,842

 
32,842

 

 
32,842

 


 
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

 



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)
 
2014
 
First quarter
 
Second quarter
 
Third quarter
 
Fourth quarter
Net interest income
$
98,871

 
107,713

 
117,487

 
112,492

Less provision for loan losses
2,500

 
1,500

 
2,000

 
3,500

Net interest income after provision for loan losses
96,371

 
106,213

 
115,487

 
108,992

Loan and guaranty servicing revenue
64,757

 
66,460

 
52,659

 
56,538

Tuition payment processing and campus commerce revenue
25,235

 
21,834

 
26,399

 
24,688

Enrollment services revenue
22,011

 
20,145

 
22,936

 
17,791

Other income
18,131

 
15,315

 
7,650

 
12,906

Gain on sale of loans and debt repurchases, net
39

 
18

 

 
3,594

Derivative market value and foreign currency adjustments and derivative settlements, net
(4,265
)
 
1,570

 
24,203

 
(5,648
)
Salaries and benefits
(52,484
)
 
(53,888
)
 
(61,098
)
 
(60,609
)
Cost to provide enrollment services
(14,475
)
 
(13,311
)
 
(14,178
)
 
(11,343
)
Depreciation and amortization
(4,783
)
 
(5,214
)
 
(5,493
)
 
(5,644
)
Operating expenses - other
(35,627
)
 
(40,377
)
 
(36,676
)
 
(37,310
)
Income tax expense
(40,611
)
 
(43,078
)
 
(46,513
)
 
(30,036
)
Net income
74,299

 
75,687

 
85,376

 
73,919

Net income attributable to noncontrolling interest
513

 
693

 
157

 
308

Net income attributable to Nelnet, Inc.
$
73,786

 
74,994

 
85,219

 
73,611

Earnings per common share:
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$
1.59

 
1.61

 
1.84

 
1.59

 
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, net
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

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, 2014 and 2013 and condensed statements of income, comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2014 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, 2014 and 2013
 
2014
 
2013
Assets:
 
 
 
Cash and cash equivalents
$
30,712

 
24,032

Investments
136,432

 
175,887

Investment in subsidiary debt
122,057

 
233,095

Restricted cash
127

 
3,763

Investment in subsidiaries
1,300,032

 
957,676

Other assets
283,831

 
272,910

Fair value of derivative instruments
64,392

 
25,673

Total assets
$
1,937,583

 
1,693,036

Liabilities:
 
 
 
Notes payable
$
149,265

 
191,457

Other liabilities
50,253

 
39,620

Fair value of derivative instruments
12,387

 
17,969

Total liabilities
211,905

 
249,046

Equity:
 
 
 
Nelnet, Inc. shareholders' equity:
 
 
 
Common stock
463

 
464

Additional paid-in capital
17,290

 
24,887

Retained earnings
1,702,560

 
1,413,492

Accumulated other comprehensive earnings
5,135

 
4,819

Total Nelnet, Inc. shareholders' equity
1,725,448

 
1,443,662

Noncontrolling interest
230

 
328

Total equity
1,725,678

 
1,443,990

Total liabilities and shareholders' equity
$
1,937,583

 
1,693,036


Statements of Income
(Parent Company Only)
Years ended December 31, 2014, 2013, and 2012
 
2014
 
2013
 
2012
Investment interest
$
6,863

 
7,911

 
5,186

Interest on bonds and notes payable
5,492

 
4,433

 
3,607

Net interest income
1,371

 
3,478

 
1,579

Other income (expense):
 

 
 

 
 
Other income
8,943

 
7,112

 
8,010

Gain from debt repurchases
6,685

 
11,905

 
4,487

Equity in subsidiaries income
316,934

 
275,989

 
224,011

Derivative market value adjustments and derivative settlements, net
14,963

 
28,134

 
(47,262
)
Total other income
347,525

 
323,140

 
189,246

Operating expenses
5,598

 
5,626

 
1,867

Income before income taxes
343,298

 
320,992

 
188,958

Income tax expense
(34,017
)
 
(16,651
)
 
(10,530
)
Net income
309,281

 
304,341

 
178,428

Net income attributable to noncontrolling interest
1,671

 
1,669

 
431

Net income attributable to Nelnet, Inc.
$
307,610

 
302,672

 
177,997




Statements of Comprehensive Income
(Parent Company Only)
Years ended December 31, 2014, 2013, and 2012
 
2014
 
2013
 
2012
Net income
$
309,281

 
304,341

 
178,428

Other comprehensive income:
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
Unrealized holding gains arising during period, net
9,006

 
9,134

 
10,230

Less reclassification adjustment for gains recognized in net income, net of losses
(8,506
)
 
(5,938
)
 
(5,798
)
Income tax effect
(184
)
 
(1,190
)
 
(1,619
)
Total other comprehensive income
316

 
2,006

 
2,813

Comprehensive income
309,597

 
306,347

 
181,241

Comprehensive income attributable to noncontrolling interest
1,671

 
1,669

 
431

Comprehensive income attributable to Nelnet, Inc.
$
307,926

 
304,678

 
180,810



Statements of Cash Flows
(Parent Company Only)
Years ended December 31, 2014, 2013, and 2012
 
2014
 
2013
 
2012
Net income attributable to Nelnet, Inc.
$
307,610

 
302,672

 
177,997

Net income attributable to noncontrolling interest
1,671

 
1,669

 
431

Net income
309,281

 
304,341

 
178,428

Adjustments to reconcile net income to net cash (used by) provided by operating activities:
 
 
 
 
 
Depreciation and amortization
303

 
284

 
249

Derivative market value adjustment
(36,979
)
 
(57,525
)
 
30,041

Proceeds (payments) to terminate and/or amend derivative instruments, net
1,765

 
(6,469
)
 
(6,005
)
Payment for interest rate swap option
(9,087
)
 

 

Equity in earnings of subsidiaries
(316,934
)
 
(275,989
)
 
(224,011
)
Gain from sale of available-for-sale securities, net
(8,506
)
 
(5,938
)
 
(5,798
)
Gain from debt repurchases
(6,685
)
 
(11,905
)
 
(4,487
)
Other non-cash items
5,396

 
3,835

 
3,569

Decrease in other assets
4,057

 
209,896

 
168,656

Increase (decrease) in other liabilities
12,512

 
16,205

 
(38,971
)
Net cash (used by) provided by operating activities
(44,877
)
 
176,735

 
101,671

Cash flows from investing activities
 
 
 
 
 
Decrease (increase) in restricted cash
3,636

 
59,495

 
(29,082
)
Purchases of available-for-sale securities
(192,315
)
 
(217,415
)
 
(186,727
)
Proceeds from sales of available-for-sale securities
240,371

 
116,337

 
162,533

Capital contributions to/from subsidiaries, net
(25,017
)
 

 

Sales (purchases) of subsidiary debt, net
111,038

 
(66,272
)
 
(6,584
)
Purchases of other investments, net
(14,769
)
 
(11,758
)
 

Net cash provided by (used in) investing activities
122,944

 
(119,613
)
 
(59,860
)
Cash flows from financing activities:
 
 
 
 
 
Payments on notes payable
(63,084
)
 
(147,080
)
 
(109,748
)
Proceeds from issuance of notes payable
27,577

 
135,000

 
153,380

Payments of debt issuance costs
(512
)
 
(644
)
 
(1,111
)
Dividends paid
(18,542
)
 
(18,569
)
 
(66,237
)
Repurchases of common stock
(15,713
)
 
(13,136
)
 
(22,763
)
Proceeds from issuance of common stock
656

 
561

 
480

Payments received on employee stock notes receivable

 

 
1,140

Issuance of noncontrolling interest
201

 
5

 
5

Distribution to noncontrolling interest
(1,970
)
 
(1,351
)
 
(431
)
Net cash used in financing activities
(71,387
)
 
(45,214
)
 
(45,285
)
Net increase (decrease) in cash and cash equivalents
6,680

 
11,908

 
(3,474
)
Cash and cash equivalents, beginning of period
24,032

 
12,124

 
15,598

Cash and cash equivalents, end of period
$
30,712

 
24,032

 
12,124

 
 
 
 
 
 
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 WRCM.
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 private education 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, 2014 and 2013.

Federally insured loans were originated under the FFEL Program by certain eligible lenders as defined by the Higher Education Act of 1965, as amended (the “Higher Education Act”). These loans, including related accrued interest, are guaranteed at their maximum level permitted under the Higher Education Act by an authorized guaranty agency, which has a contract of reinsurance with the Department. The terms of the loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest. Generally, Stafford and PLUS loans have repayment periods between five and ten years. Consolidation loans have repayment periods of twelve to thirty years. FFELP loans do not require repayment while the borrower is in-school, and during the grace period immediately upon leaving school. 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.

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 private education loans. Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFELP. These loans are used primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or borrowers' resources. The terms of the private education loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to 30 years. The private education 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 private education 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 private education 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 private education 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 private education 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 disclosures are presented on this basis 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, 2014 and 2013, the Company did not have any impaired loans as defined in the Receivables Topic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification.

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.

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 $55.0 million, $29.0 million, and $68.0 million in 2014, 2013, and 2012, 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 include allowances for doubtful accounts. Allowance estimates are based upon individual customer experience, as well as the age of receivables and likelihood of collection.
Business Combinations

The Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings.
Goodwill

The Company reviews goodwill for impairment annually (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 9 for information regarding the Company's annual goodwill impairment review.
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 private education loans typically begins six months following the borrower's graduation from a qualified institution, and the interest is either paid by the borrower or capitalized annually or at repayment.

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, school information, and campus commerce revenue - Tuition payment processing, school information, and campus commerce revenue includes actively managed tuition payment solutions, remote hosted school information systems software, 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 - 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.

Content Solutions - Several content solutions services, including services to connect students to colleges and universities, 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,
 
2014
 
2013
Federally insured loans
 
 
 
Stafford and other
$
6,030,825

 
6,686,626

Consolidation
22,165,605

 
19,363,577

Total
28,196,430

 
26,050,203

Private education loans
27,478

 
71,103

 
28,223,908

 
26,121,306

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(169,813
)
 
(158,595
)
Allowance for loan losses – federally insured loans
(39,170
)
 
(43,440
)
Allowance for loan losses – private education loans
(9,730
)
 
(11,682
)
 
$
28,005,195

 
25,907,589

 
 
 
 

(a) At December 31, 2014 and 2013, "loan discount, net of unamortized loan premiums and deferred origination costs" included $28.8 million and $20.2 million, respectively, of non-accretable discount associated with purchased loans of $8.5 billion and $4.4 billion, respectively.
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,
 
2014
 
2013
 
2012
Balance at beginning of period
$
55,122

 
51,902

 
48,482

Provision for loan losses:
 
 
 
 
 
Federally insured loans
11,000

 
20,000

 
22,000

Private education loans
(1,500
)
 
(1,500
)
 
(500
)
Total provision for loan losses
9,500

 
18,500

 
21,500

Charge-offs:
 

 
 

 
 
Federally insured loans
(15,260
)
 
(15,588
)
 
(21,217
)
Private education loans
(2,332
)
 
(3,683
)
 
(3,508
)
Total charge-offs
(17,592
)
 
(19,271
)
 
(24,725
)
Recoveries - private education loans
1,315

 
1,577

 
1,419

Purchase (sale) of federally insured loans, net
(10
)
 
(1,093
)
 
2,133

Sale of private education loans
(1,620
)
 

 

Transfer from repurchase obligation related to private education loans repurchased, net
2,185

 
3,507

 
3,093

Balance at end of period
$
48,900

 
55,122

 
51,902

 
 
 
 
 
 
Allocation of the allowance for loan losses:
 

 
 

 
 
Federally insured loans
$
39,170

 
43,440

 
40,120

Private education loans
9,730

 
11,682

 
11,782

Total allowance for loan losses
$
48,900

 
55,122

 
51,902

The Company has sold various portfolios of private education loans to third-parties. Per the terms of the servicing agreements, the Company’s servicing operations are obligated to repurchase loans subject to the sale agreements in the event such loans become 60 or 90 days delinquent. As of December 31, 2014, the balance of loans subject to these repurchase obligations was $155.3 million. 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,
 
2014
 
2013
 
2012
Beginning balance
$
16,143

 
16,130

 
19,223

Repurchase obligation transferred to the allowance for loan losses related to loans repurchased, net
(2,185
)
 
(3,507
)
 
(3,093
)
Repurchase obligation associated with loans sold
2,097

 
3,520

 

Current period income (a)
(4,235
)
 

 

Ending balance
$
11,820

 
16,143

 
16,130


(a)
During 2014, the Company recognized income related to the modification of certain servicing agreements in which the repurchase obligation was reduced. This income is included in "other income" on the consolidated statements of income.

Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.  The percent of private education loans that were delinquent 31 days or greater as of December 31, 2014, 2013, and 2012 was 29.8 percent, 12.7 percent, and 28.6 percent, respectively. The table below shows the Company’s federally insured student loan delinquency amounts.

 
As of December 31,
 
2014
 
2013
 
2012
Federally insured loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment (a)
$
2,805,228

 
 
 
$
2,872,505

 
 
 
$
3,099,637

 
 
Loans in forbearance (b)
3,288,412

 
 
 
3,370,025

 
 
 
3,322,301

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
18,460,279

 
83.5
%
 
16,337,922

 
82.4
%
 
15,253,249

 
82.2
%
Loans delinquent 31-60 days (c)
1,043,119

 
4.8

 
967,318

 
4.9

 
766,146

 
4.1

Loans delinquent 61-90 days (c)
588,777

 
2.7

 
550,333

 
2.9

 
410,576

 
2.2

Loans delinquent 91-120 days (c)
404,905

 
1.8

 
390,791

 
2.0

 
433,659

 
2.3

Loans delinquent 121-270 days (c)
1,204,405

 
5.4

 
1,117,936

 
5.6

 
1,236,943

 
6.7

Loans delinquent 271 days or greater (c)(d)
401,305

 
1.8

 
443,373

 
2.2

 
447,335

 
2.5

Total loans in repayment
22,102,790

 
100.0
%
 
19,807,673

 
100.0
%
 
18,547,908

 
100.0
%
Total federally insured loans
$
28,196,430

 
 

 
$
26,050,203

 
 

 
$
24,969,846

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, 2014
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
25,713,431

 
0.19% - 6.90%
 
5/25/18 - 8/26/52
Bonds and notes based on auction
1,311,669

 
0.47% - 2.17%
 
3/22/32 - 11/26/46
Total variable-rate bonds and notes
27,025,100

 
 
 
 
FFELP warehouse facilities
1,241,665

 
0.16% - 0.26%
 
1/17/16 - 6/11/17
Unsecured line of credit

 
 
6/30/19
Unsecured debt - Junior Subordinated Hybrid Securities
71,688

 
3.63%
 
9/15/61
Other borrowings
81,969

 
1.67% - 5.10%
 
11/11/15 - 12/31/18
 
28,420,422

 
 
 
 
Discount on bonds and notes payable
(393,072
)
 
 
 
 
Total
$
28,027,350

 
 
 
 
 
 
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, 2014, the Company had three FFELP warehouse facilities as summarized below.
 
 
NHELP-III (a)
 
NHELP-II (b)
 
NFSLW-I (c)
 
Total
Maximum financing amount
 
$
750,000

 
500,000

 
500,000

 
1,750,000

Amount outstanding
 
692,613

 
100,637

 
448,415

 
1,241,665

Amount available
 
$
57,387

 
399,363

 
51,585

 
508,335

Expiration of liquidity provisions
 
February 5, 2015

 
January 15, 2015

 
June 11, 2015

 
 
Final maturity date
 
January 17, 2016

 
January 15, 2017

 
June 11, 2017

 
 
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
 
$
41,578

 
9,924

 
21,931

 
73,433

(a)
On February 4, 2015, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to May 5, 2015.
(b)
On January 9, 2015, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to December 17, 2015, and to change the maturity date to December 17, 2017.
(c)
On January 27, 2015, the Company amended the agreement for this warehouse facility to temporarily increase the maximum financing amount to $1.2 billion. The maximum financing amount is scheduled to decrease $200.0 million and $250.0 million on April 30, 2015 and May 31, 2015, respectively.
The following tables summarize the asset-backed securitization transactions completed in 2014 and 2013.
 
 
Securitizations completed during the year ended December 31, 2014
 
 
2014-1
 
2014-2
 
2014-3
 
2014-4
 
2014-5
 
2014-6 (a)
 
Total
 
 
 
 
Class A-1 notes
 
Class A-2 notes
 
Class A-3 notes
 
2014-2 total
 
 
 
Class A-1 notes
 
Class A-2 notes
 
2014-4 total
 
 
 
 
 
 
Date securities issued
 
2/6/14
 
3/12/14
 
3/12/14
 
3/12/14
 
3/12/14
 
4/30/14
 
5/23/14
 
5/23/14
 
5/23/14
 
6/18/14
 
7/31/14
 
 
Total original principal amount
 
$
458,500

 
 
 
 
 
 
 
509,000

 
719,800

 
 
 
 
 
384,500

 
603,000

 
565,000

 
$
3,239,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class A senior notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
445,000

 
191,000

 
222,000

 
84,000

 
497,000

 
700,700

 
267,500

 
107,500

 
375,000

 
587,000

 
565,000

 
3,169,700

Bond discount
 

 

 

 
(535
)
 
(535
)
 

 

 

 

 

 
(3,124
)
 
(3,659
)
Issue price
 
$
445,000

 
191,000

 
222,000

 
83,465

 
496,465

 
700,700

 
267,500

 
107,500

 
375,000

 
587,000

 
561,876

 
3,166,041

Cost of funds (1-month LIBOR plus:)
 
0.57
%
 
0.28
%
 
0.60
%
 
0.85
%
 
 
 
0.58
%
 
0.54
%
 
0.95
%
 
 
 
0.55
%
 
0.65
%
 
 
Final maturity date
 
9/25/41

 
6/25/21

 
3/25/30

 
7/27/37

 
 
 
6/25/41

 
11/27/34

 
11/25/43

 
 
 
7/25/41

 
11/25/47

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class B subordinated notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
13,500

 
 
 
 
 
 
 
12,000

 
19,100

 
 
 
 
 
9,500

 
16,000

 
 
 
70,100

Bond discount
 
(1,132
)
 
 
 
 
 
 
 
(1,046
)
 
(1,467
)
 
 
 
 
 
(1,138
)
 
(1,232
)
 
 
 
(6,015
)
Issue price
 
$
12,368

 
 
 
 
 
 
 
10,954

 
17,633

 
 
 
 
 
8,362

 
14,768

 
 
 
64,085

Cost of funds (1-month LIBOR plus:)
 
1.50
%
 
 
 
 
 
 
 
1.50
%
 
1.50
%
 
 
 
 
 
1.50
%
 
1.50
%
 
 
 
 
Final maturity date
 
10/25/47

 
 
 
 
 
 
 
6/25/41

 
10/25/50

 
 
 
 
 
9/25/51

 
5/25/49

 
 
 
 

 
 
Securitizations completed 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

 
 
 
 
 
 

(a)
Total original principal amount excludes the Class B subordinated tranches for the 2014-6, 2013-2, and 2013-5 transactions totaling $8.3 million, $34.0 million, and $9.0 million, respectively, that were retained at issuance. As of December 31, 2014, the Company has a total of $36.0 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, 2014 are due in varying amounts as shown below.
2015
 
$
4,393

2016
 
767,613

2017
 
549,052

2018
 
39,265

2019
 
437,003

2020 and thereafter
 
26,623,096

 
 
$
28,420,422


Derivative Financial Instruments (Tables)
The following table summarizes the Company’s 1:3 Basis Swaps outstanding:
 
 
 
 
As of December 31,
 
 
 
 
2014
 
2013
 
 
Maturity
 
Notional amount
 
Notional amount
 
 
2021
 
 
$
250,000

 
250,000

 
 
2022
 
 
1,900,000

 
1,900,000

 
 
2023
 
 
3,650,000

 
3,650,000

 
 
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
 
 

 
200,000

 
 
 
 
 
$
7,800,000

(b)
8,000,000

(b)
(a)This derivative has a forward effective start date in 2015.
(b)
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2014 and 2013, was one-month LIBOR plus 3.5 basis points.
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, 2014
 
As of December 31, 2013
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
 
 
2014
 
$

 
%
 
$
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

 
1,250,000

 
0.86

 
 
 
$
3,100,000

 
0.87
%
 
$
4,850,000

 
0.81
%
 
(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 a portion of the Hybrid Securities to a fixed rate of 7.66%.
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
25,000

 
4.28%
(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.
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,
 
2014
 
2013 (b)
 
2012 (b)
Re-measurement of Euro Notes
$
58,013

 
(35,285
)
 
(19,561
)
Change in fair value of cross currency interest rate swaps
(57,289
)
 
26,354

 
2,210

Total impact to consolidated statements of income - income (expense) (a)
$
724

 
(8,931
)
 
(17,351
)

(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, 2014
 
December 31, 2013
 
December 31, 2014
 
December 31, 2013
1:3 basis swaps
$
53,549

 
18,490

 

 

Interest rate swaps - floor income hedges
5,165

 
7,183

 
5,034

 
15,849

Interest rate swap option - floor income hedge
5,678

 

 

 

Interest rate swaps - hybrid debt hedges

 

 
7,353

 
2,120

Cross-currency interest rate swap

 
36,834

 
20,455

 

Total
$
64,392

 
62,507

 
32,842

 
17,969

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

 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative assets
 
Gross amounts of recognized assets presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral received
 
Net asset (liability)
Balance as of December 31, 2014
 
$
64,392

 
(12,387
)
 

 
52,005

Balance as of December 31, 2013
 
62,507

 
(15,437
)
 
(15,959
)
 
31,111


 
 
 
 
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 (received)
 
Net asset (liability)
Balance as of December 31, 2014
 
$
(32,842
)
 
12,387

 
(1,454
)
 
(21,909
)
Balance as of December 31, 2013
 
(17,969
)
 
15,437

 
3,630

 
1,098



The following table summarizes the effect of derivative instruments in the consolidated statements of income.
 
 
Year ended December 31,
 
 
2014
 
2013
 
2012
Settlements:
 
 

 
 

 
 
1:3 basis swaps
 
$
3,389

 
3,301

 
4,495

Interest rate swaps - floor income hedges
 
(24,380
)
 
(31,022
)
 
(19,270
)
Interest rate swaps - hybrid debt hedges
 
(1,025
)
 
(1,670
)
 
(2,231
)
Cross-currency interest rate swaps
 
173

 
(245
)
 
3,228

Other
 

 

 
(244
)
Total settlements - (expense) income
 
(21,843
)
 
(29,636
)
 
(14,022
)
Change in fair value:
 
 

 
 

 
 

1:3 basis swaps
 
36,824

 
7,467

 
676

Interest rate swaps - floor income hedges
 
8,797

 
36,719

 
(35,215
)
Interest rate swap option - floor income hedge
 
(3,409
)
 

 

Interest rate swaps - hybrid debt hedges
 
(5,233
)
 
12,997

 
1,717

Cross-currency interest rate swaps
 
(57,289
)
 
26,354

 
2,210

Other
 

 
341

 
2,779

Total change in fair value - (expense) income
 
(20,310
)
 
83,878

 
(27,833
)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
 
58,013

 
(35,285
)
 
(19,561
)
Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense)
 
$
15,860

 
18,957

 
(61,416
)
Investments (Tables)
A summary of the Company's investments and restricted investments follows:
 
As of December 31, 2014
 
As of December 31, 2013
 
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)
$
131,589

 
6,204

 
(236
)
 
137,557

 
171,931

 
7,111

 
(1,241
)
 
177,801

Equity securities
1,553

 
2,216

 
(33
)
 
3,736

 
1,502

 
1,783

 
(3
)
 
3,282

Total available-for-sale investments
$
133,142

 
8,420

 
(269
)
 
141,293

 
173,433

 
8,894

 
(1,244
)
 
181,083

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed securities
 
 
 
 
 
 
7,830

 
 
 
 
 
 
 
10,957

Total available-for-sale and trading investments
 
 
 
 
 
 
$
149,123

 
 
 
 
 
 
 
192,040

Restricted Investments (c):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts - held-to-maturity
 
 
 
 
 
 
$
50,276

 
 
 
 
 
 
 
7,285


(a)
As of December 31, 2014, 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, 2014, 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
386

 
386

6-10 years

 

After 10 years
131,203

 
137,171

Total
$
131,589

 
137,557



(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, 2014, 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
10,203

6-10 years

After 10 years
40,073

Total
$
50,276

As of December 31, 2014, 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
386

 
386

6-10 years

 

After 10 years
131,203

 
137,171

Total
$
131,589

 
137,557

As of December 31, 2014, 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
10,203

6-10 years

After 10 years
40,073

Total
$
50,276

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,
 
 
2014
 
2013
 
2012
Available-for-sale securities:
 
 
 
 
 
 
Gross realized gains
 
$
8,581

 
6,270

 
6,120

Gross realized losses
 
(75
)
 
(332
)
 
(322
)
Trading securities:
 
 
 
 
 
 
Unrealized (losses) gains, net
 
(135
)
 
221

 
254

Realized (losses) gains, net
 
(1,082
)
 
5

 
1,459

 
 
$
7,289

 
6,164

 
7,511

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):
 
2014
 
2013
 
2012
Other income
 
$
8,506

 
5,938

 
5,798

Income tax expense
 
(3,147
)
 
(2,197
)
 
(2,145
)
Net income
 
$
5,359

 
3,741

 
3,653

Business Combination Business Combination (Tables)
Fair Value, by Balance Sheet Grouping [Table Text Block]
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.
Cash and cash equivalents
 
$
326

Accounts receivable
 
961

Property and equipment
 
105

Other assets
 
22

Intangible assets
 
37,188

Excess cost over fair value of net assets acquired (goodwill)
 
9,082

Other liabilities
 
(1,341
)
Net assets acquired
 
$
46,343

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

 
As of December 31, 2014
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
28,954,266

 
28,005,195

 

 

 
28,954,266

Cash and cash equivalents
130,481

 
130,481

 
130,481

 

 

Investments
149,123

 
149,123

 
4,123

 
145,000

 

Restricted cash
800,164

 
800,164

 
800,164

 

 

Restricted cash – due to customers
118,488

 
118,488

 
118,488

 

 

Restricted investments
50,276

 
50,276

 
50,276

 

 

Accrued interest receivable
351,588

 
351,588

 

 
351,588

 

Derivative instruments
64,392

 
64,392

 

 
64,392

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
27,809,997

 
28,027,350

 

 
27,809,997

 

Accrued interest payable
25,904

 
25,904

 

 
25,904

 

Due to customers
118,488

 
118,488

 
118,488

 

 

Derivative instruments
32,842

 
32,842

 

 
32,842

 


 
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

 

Intangible Assets Intangible Assets (Tables)
Intangible assets consist of the following:
 
Weighted average remaining useful life as of December 31, 2014 (months)
 
As of December 31, 2014
 
As of December 31, 2013
 
 
 
Amortizable intangible assets:
 
 
 
Customer relationships (net of accumulated amortization of $17,361 and $19,821, respectively)
209
 
$
27,330

 
6,132

Computer software (net of accumulated amortization of $1,896 and $0, respectively)
42
 
6,969

 

Trade names (net of accumulated amortization of $272 and $0, respectively)
233
 
6,150

 

Content (net of accumulated amortization of $0)
24
 
1,800

 

Covenants not to compete (net of accumulated amortization of $21 and $0, respectively)
113
 
333

 

Total - amortizable intangible assets
176
 
$
42,582

 
6,132

As of December 31, 2014, the Company estimates it will record amortization expense as follows:
2015
$
8,695

2016
6,249

2017
4,652

2018
3,533

2019
2,861

2020 and thereafter
16,592

 
$
42,582

Goodwill Goodwill (Tables)
Schedule of Goodwill [Table Text Block]
The change in the carrying amount of goodwill by reportable operating segment was as follows:
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset Generation and Management (a)
 
Corporate and Other Activities
 
Total
Balance as of December 31, 2012 and 2013
$
8,596

 
58,086

 
41,883

 
8,553

 
117,118

Goodwill acquired during the period

 
9,082

 

 

 
9,082

Balance as of December 31, 2014
$
8,596

 
67,168

 
41,883

 
8,553

 
126,200


(a)
As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of new FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units.
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
 
2014
 
2013
Computer equipment and software
1-5 years
 
$
98,462

 
77,733

Office furniture and equipment
3-7 years
 
12,265

 
9,843

Leasehold improvements
1-15 years
 
3,645

 
3,618

Transportation equipment
10 years
 
3,877

 
7,398

Building and building improvements
5-39 years
 
11,336

 
10,366

Land
 
700

 
700

 
 
 
130,285

 
109,658

Accumulated depreciation
 
 
84,391

 
75,829

 
 
 
$
45,894

 
33,829

Shareholders' Equity Shareholders' Equity (Tables)
Stock Repurchases [Table Text Block]
Shares repurchased by the Company during 2014, 2013, and 2012 are shown in the table below.
 
 
Total shares repurchased
 
Purchase price (in thousands)
 
Average price of shares repurchased (per share)
Year ended December 31, 2014
 
381,689

 
$
15,713

 
$
41.17

Year ended December 31, 2013
 
393,259

 
13,136

 
33.40

Year ended December 31, 2012
 
806,023

 
22,814

 
28.30

Earnings per Common Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
 
Year ended December 31,
 
2014
 
2013
 
2012
 
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.
$
304,540

 
3,070

 
307,610

 
300,043

 
2,629

 
302,672

 
176,647

 
1,350

 
177,997

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,005,915

 
463,700

 
46,469,615

 
46,165,785

 
404,529

 
46,570,314

 
47,010,034

 
359,297

 
47,369,331

Earnings per share - basic and diluted
$
6.62

 
6.62

 
6.62

 
6.50

 
6.50

 
6.50

 
3.76

 
3.76

 
3.76

Income Taxes Income Taxes (Tables)
As of December 31, 2014, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $21.3 million, which is included in “other liabilities” on the consolidated balance sheet. Of this total, $13.9 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 $3.7 million prior to December 31, 2015 as a result of a lapse of applicable statutes of limitations, settlements, correspondence with examining authorities, and recognition or measurement considerations with federal and state jurisdictions; however, actual developments in this area could differ from those currently expected. Of the anticipated $3.7 million decrease, $2.4 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,
 
2014
 
2013
Gross balance - beginning of year
$
19,141

 
29,568

Additions based on tax positions of prior years
1,421

 
996

Additions based on tax positions related to the current year
4,393

 
3,812

Settlements with taxing authorities
(833
)
 
(7,470
)
Reductions for tax positions of prior years
(641
)
 
(6,470
)
Reductions based on tax positions related to the current year

 
(272
)
Reductions due to lapse of applicable statutes of limitations
(2,145
)
 
(1,023
)
Gross balance - end of year
$
21,336

 
19,141


All the reductions shown in the table above that are due to prior year tax positions and the lapse of statutes of limitations impacted the effective tax rate
The provision for income taxes consists of the following components:
 
Year ended December 31,
 
2014
 
2013
 
2012
Current:
 
 
 
 
 
Federal
$
138,269

 
153,756

 
118,490

State
2,545

 
4,776

 
1,383

Foreign
(235
)
 
122

 
33

Total current provision
140,579

 
158,654

 
119,906

 
 
 
 
 
 
Deferred:
 
 
 
 
 
Federal
16,598

 
1,676

 
(23,460
)
State
3,464

 
868

 
(358
)
Foreign
(403
)
 
(5
)
 
(11
)
Total deferred provision (benefit)
19,659

 
2,539

 
(23,829
)
Provision for income tax expense
$
160,238

 
161,193

 
96,077

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,
 
2014
 
2013
 
2012
Tax expense at federal rate
35.0
  %
 
35.0
  %
 
35.0
  %
Increase (decrease) resulting from:
 
 
 
 
 
State tax, net of federal income tax benefit
0.7

 
0.8

 
0.5

Provision for uncertain federal and state tax matters
0.4

 
(0.6)

 
0.2

Tax credits
(0.4)

 
(0.4)

 
(0.6)

Other
(1.4)

 

 
(0.1)

Effective tax rate
34.3
  %
 
34.8
  %
 
35.0
  %
The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following:
 
As of December 31,
 
2014
 
2013
Deferred tax assets:
 
 
 
Student loans
$
21,139

 
25,967

Intangible assets
12,682

 
23,675

Securitizations
7,626

 
10,407

Capital loss carry-back
3,974

 

Accrued expenses
2,872

 
4,162

Stock compensation
2,490

 
1,608

Deferred revenue
1,548

 
777

Other
109

 
28

Total gross deferred tax assets
52,440

 
66,624

Less valuation allowance
(304
)
 
(239
)
Net deferred tax assets
52,136

 
66,385

Deferred tax liabilities:
 
 
 
Debt repurchases
24,918

 
32,286

Loan origination services
19,258

 
23,750

Basis in certain derivative contracts
15,692

 
2,137

Depreciation
4,122

 
4,673

Unrealized gain on debt and equity securities
3,016

 
2,830

Partnership basis
1,143

 

Total gross deferred tax liabilities
68,149

 
65,676

Net deferred tax (liability) asset
$
(16,013
)
 
709

Segment Reporting (Tables)
Schedule of Segment Reporting Information, by Segment
 
Year ended December 31, 2014
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other Activities
 
Eliminations
 
Total
Total interest income
$
30

 
6

 
703,382

 
8,618

 
(2,236
)
 
709,800

Interest expense

 

 
269,742

 
5,731

 
(2,236
)
 
273,237

Net interest income
30

 
6

 
433,640

 
2,887

 

 
436,563

Less provision for loan losses

 

 
9,500

 

 

 
9,500

Net interest income after provision for loan losses
30

 
6

 
424,140

 
2,887

 

 
427,063

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
240,414

 

 

 

 

 
240,414

Intersegment servicing revenue
55,139

 

 

 

 
(55,139
)
 

Tuition payment processing, school information, and campus commerce revenue

 
98,156

 

 

 

 
98,156

Enrollment services revenue

 

 

 
82,883

 

 
82,883

Other income

 
1,268

 
21,532

 
31,202

 

 
54,002

Gain on sale of loans and debt repurchases, net

 

 
(1,357
)
 
5,008

 

 
3,651

Derivative market value and foreign currency adjustments, net

 

 
42,935

 
(5,232
)
 

 
37,703

Derivative settlements, net

 

 
(20,818
)
 
(1,025
)
 

 
(21,843
)
Total other income (expense)
295,553

 
99,424

 
42,292

 
112,836

 
(55,139
)
 
494,966

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
138,584

 
48,453

 
2,316

 
38,726

 

 
228,079

Cost to provide enrollment services

 

 

 
53,307

 

 
53,307

Depreciation and amortization
10,742

 
8,169

 

 
2,223

 

 
21,134

Other
70,211

 
13,006

 
33,611

 
33,162

 

 
149,990

Intersegment expenses, net
4,208

 
5,864

 
55,808

 
(10,741
)
 
(55,139
)
 

Total operating expenses
223,745

 
75,492

 
91,735

 
116,677

 
(55,139
)
 
452,510

Income (loss) before income taxes and corporate overhead allocation
71,838

 
23,938

 
374,697

 
(954
)
 

 
469,519

Corporate overhead allocation
(9,029
)
 
(3,010
)
 
(5,017
)
 
17,056

 

 

Income before income taxes
62,809

 
20,928

 
369,680

 
16,102

 

 
469,519

Income tax (expense) benefit
(23,867
)
 
(7,952
)
 
(140,477
)
 
12,058

 

 
(160,238
)
Net income
38,942

 
12,976

 
229,203

 
28,160

 

 
309,281

  Net income attributable to noncontrolling interest

 

 

 
1,671

 

 
1,671

Net income attributable to Nelnet, Inc.
$
38,942

 
12,976

 
229,203

 
26,489

 

 
307,610

 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
84,495

 
231,991

 
29,505,439

 
497,147

 
(220,929
)
 
30,098,143

 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2013
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other Activities
 
Eliminations
 
Total
Total interest income
$
40

 

 
638,604

 
9,433

 
(3,267
)
 
644,810

Interest expense

 

 
229,533

 
4,669

 
(3,267
)
 
230,935

Net interest income
40

 

 
409,071

 
4,764

 

 
413,875

Less provision for loan losses

 

 
18,500

 

 

 
18,500

Net interest income after provision for loan losses
40

 

 
390,571

 
4,764

 

 
395,375

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
243,428

 

 

 

 

 
243,428

Intersegment servicing revenue
56,744

 

 

 

 
(56,744
)
 

Tuition payment processing, school information, and campus commerce revenue

 
80,682

 

 

 

 
80,682

Enrollment services revenue

 

 

 
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

 
33,517

 
142,658

 
(57,887
)
 
499,142

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
119,092

 
37,575

 
2,292

 
37,210

 

 
196,169

Cost to provide enrollment services

 

 

 
64,961

 

 
64,961

Depreciation and amortization
11,419

 
4,518

 

 
2,374

 

 
18,311

Other
79,116

 
9,147

 
30,945

 
31,477

 
(1,143
)
 
149,542

Intersegment expenses, net
4,359

 
5,989

 
57,572

 
(11,176
)
 
(56,744
)
 

Total operating expenses
213,986

 
57,229

 
90,809

 
124,846

 
(57,887
)
 
428,983

Income before income taxes and corporate overhead allocation
86,226

 
23,453

 
333,279

 
22,576

 

 
465,534

Corporate overhead allocation
(6,150
)
 
(1,957
)
 
(3,896
)
 
12,003

 

 

Income before income taxes
80,076

 
21,496

 
329,383

 
34,579

 

 
465,534

Income tax (expense) benefit
(30,430
)
 
(8,168
)
 
(125,165
)
 
2,570

 

 
(161,193
)
Net income
49,646

 
13,328

 
204,218

 
37,149

 

 
304,341

  Net income attributable to noncontrolling interest

 

 

 
1,669

 

 
1,669

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

 
13,328

 
204,218

 
35,480

 

 
302,672

Total assets
$
84,986

 
219,064

 
27,387,461

 
425,959

 
(346,621
)
 
27,770,849

 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2012
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other Activities
 
Eliminations
 
Total
Total interest income
$
53

 
8

 
610,194

 
7,305

 
(3,707
)
 
613,853

Interest expense

 

 
263,788

 
8,485

 
(3,707
)
 
268,566

Net interest income
53

 
8

 
346,406

 
(1,180
)
 

 
345,287

Less provision for loan losses

 

 
21,500

 

 

 
21,500

Net interest income after provision for loan losses
53

 
8

 
324,906

 
(1,180
)
 

 
323,787

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
209,748

 

 

 

 

 
209,748

Intersegment servicing revenue
65,376

 

 

 

 
(65,376
)
 

Tuition payment processing, school information, and campus commerce revenue

 
74,410

 

 

 

 
74,410

Enrollment services revenue

 

 

 
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

 
(41,568
)
 
141,692

 
(65,376
)
 
384,282

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
115,126

 
34,314

 
2,252

 
41,134

 

 
192,826

Cost to provide enrollment services

 

 

 
78,375

 

 
78,375

Depreciation and amortization
18,415

 
7,240

 

 
7,970

 

 
33,625

Other
70,505

 
10,439

 
16,435

 
31,359

 

 
128,738

Intersegment expenses, net
5,280

 
5,383

 
66,215

 
(11,502
)
 
(65,376
)
 

Total operating expenses
209,326

 
57,376

 
84,902

 
147,336

 
(65,376
)
 
433,564

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

 
17,042

 
198,436

 
(6,824
)
 

 
274,505

Corporate overhead allocation
(5,904
)
 
(1,968
)
 
(5,306
)
 
13,178

 

 

Income before income taxes
59,947

 
15,074

 
193,130

 
6,354

 

 
274,505

Income tax (expense) benefit
(22,780
)
 
(5,728
)
 
(73,387
)
 
5,818

 

 
(96,077
)
Net income
37,167

 
9,346

 
119,743

 
12,172

 

 
178,428

  Net income attributable to noncontrolling interest

 

 

 
431

 

 
431

Net income attributable to Nelnet, Inc.
$
37,167

 
9,346

 
119,743

 
11,741

 

 
177,997

Total assets
$
90,959

 
150,600

 
26,463,551

 
260,905

 
(358,120
)
 
26,607,895

 
 
 
 
 
 
 
 
 
 
 
 
Operating Leases Operating Leases (Tables)
Operating Leases of Lessee Disclosure [Table Text Block]
Minimum future rentals, as of December 31, 2014, under noncancelable operating leases are shown below:
2015
$
4,468

2016
4,106

2017
3,127

2018
2,669

2019
2,404

2020 and thereafter
6,273

 
$
23,047

Stock Based Compensation Plan Stock Based Compensation (Tables)
. Stock Based Compensation Plans

Restricted Stock Plan

The following table summarizes restricted stock activity:
 
Year ended December 31,
 
2014
 
2013
 
2012
Non-vested shares at beginning of year
407,051

 
378,671

 
285,718

Granted
189,716

 
131,933

 
168,833

Vested
(77,219
)
 
(62,491
)
 
(41,089
)
Canceled
(20,085
)
 
(41,062
)
 
(34,791
)
Non-vested shares at end of year
499,463

 
407,051

 
378,671



As of December 31, 2014, there was $9.0 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.
2015
$
3,694

2016
2,174

2017
1,261

2018
736

2019
439

2020 and thereafter
694

 
$
8,998



For the years ended December 31, 2014, 2013, and 2012, the Company recognized compensation expense of $4.6 million, $3.1 million, and $2.2 million, respectively, related to shares issued under the restricted stock plan, which is included in "salaries and benefits" on the consolidated statements of income.

Employee Share Purchase Plan

The Company has an employee share purchase plan pursuant to which employees are entitled to purchase Class A common stock from payroll deductions at a 15 percent discount from market value. During the years ended December 31, 2014, 2013, and 2012, the Company recognized compensation expense of approximately $131,000, $148,000, and $114,000, respectively, in connection with issuing 18,140 shares, 18,004 shares, and 21,766 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, 2014, 2013, and 2012, the Company recognized approximately $777,000, $673,000, and $688,000, 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, 2014, 2013, and 2012.

 
Shares issued - not deferred
 
Shares- deferred
 
Total
Year ended December 31, 2014
8,067

 
10,175

 
18,242

Year ended December 31, 2013
10,156

 
5,279

 
15,435

Year ended December 31, 2012
16,561

 
16,700

 
33,261



As of December 31, 2014, a cumulative amount of 136,495 shares have been deferred by directors and will be issued upon the termination of their service on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation.
The following table summarizes restricted stock activity:
 
Year ended December 31,
 
2014
 
2013
 
2012
Non-vested shares at beginning of year
407,051

 
378,671

 
285,718

Granted
189,716

 
131,933

 
168,833

Vested
(77,219
)
 
(62,491
)
 
(41,089
)
Canceled
(20,085
)
 
(41,062
)
 
(34,791
)
Non-vested shares at end of year
499,463

 
407,051

 
378,671

As of December 31, 2014, there was $9.0 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.
2015
$
3,694

2016
2,174

2017
1,261

2018
736

2019
439

2020 and thereafter
694

 
$
8,998

The following table provides the number of shares awarded under this plan for the years ended December 31, 2014, 2013, and 2012.

 
Shares issued - not deferred
 
Shares- deferred
 
Total
Year ended December 31, 2014
8,067

 
10,175

 
18,242

Year ended December 31, 2013
10,156

 
5,279

 
15,435

Year ended December 31, 2012
16,561

 
16,700

 
33,261

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, 2014.
 
As of December 31, 2014
 
As of December 31, 2013
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments: (a)
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed securities
$

 
145,000

 
145,000

 

 
188,279

 
188,279

Equity securities
3,736

 

 
3,736

 
3,282

 

 
3,282

Debt securities
387

 

 
387

 
479

 

 
479

      Total investments
4,123

 
145,000

 
149,123

 
3,761

 
188,279

 
192,040

Fair value of derivative instruments (b)

 
64,392

 
64,392

 

 
62,507

 
62,507

      Total assets
$
4,123

 
209,392

 
213,515

 
3,761

 
250,786

 
254,547

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

 
32,842

 
32,842

 

 
17,969

 
17,969

      Total liabilities
$

 
32,842

 
32,842

 

 
17,969

 
17,969


(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 estimated fair values of the assets acquired and liabilities assumed at the acquisition date.
Cash and cash equivalents
 
$
326

Accounts receivable
 
961

Property and equipment
 
105

Other assets
 
22

Intangible assets
 
37,188

Excess cost over fair value of net assets acquired (goodwill)
 
9,082

Other liabilities
 
(1,341
)
Net assets acquired
 
$
46,343

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

 
As of December 31, 2014
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
28,954,266

 
28,005,195

 

 

 
28,954,266

Cash and cash equivalents
130,481

 
130,481

 
130,481

 

 

Investments
149,123

 
149,123

 
4,123

 
145,000

 

Restricted cash
800,164

 
800,164

 
800,164

 

 

Restricted cash – due to customers
118,488

 
118,488

 
118,488

 

 

Restricted investments
50,276

 
50,276

 
50,276

 

 

Accrued interest receivable
351,588

 
351,588

 

 
351,588

 

Derivative instruments
64,392

 
64,392

 

 
64,392

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
27,809,997

 
28,027,350

 

 
27,809,997

 

Accrued interest payable
25,904

 
25,904

 

 
25,904

 

Due to customers
118,488

 
118,488

 
118,488

 

 

Derivative instruments
32,842

 
32,842

 

 
32,842

 


 
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

 

Quarterly Financial Information Quarterly Financial Information (Tables)
Schedule of Quarterly Financial Information [Table Text Block]
Quarterly Financial Information (Unaudited)
 
2014
 
First quarter
 
Second quarter
 
Third quarter
 
Fourth quarter
Net interest income
$
98,871

 
107,713

 
117,487

 
112,492

Less provision for loan losses
2,500

 
1,500

 
2,000

 
3,500

Net interest income after provision for loan losses
96,371

 
106,213

 
115,487

 
108,992

Loan and guaranty servicing revenue
64,757

 
66,460

 
52,659

 
56,538

Tuition payment processing and campus commerce revenue
25,235

 
21,834

 
26,399

 
24,688

Enrollment services revenue
22,011

 
20,145

 
22,936

 
17,791

Other income
18,131

 
15,315

 
7,650

 
12,906

Gain on sale of loans and debt repurchases, net
39

 
18

 

 
3,594

Derivative market value and foreign currency adjustments and derivative settlements, net
(4,265
)
 
1,570

 
24,203

 
(5,648
)
Salaries and benefits
(52,484
)
 
(53,888
)
 
(61,098
)
 
(60,609
)
Cost to provide enrollment services
(14,475
)
 
(13,311
)
 
(14,178
)
 
(11,343
)
Depreciation and amortization
(4,783
)
 
(5,214
)
 
(5,493
)
 
(5,644
)
Operating expenses - other
(35,627
)
 
(40,377
)
 
(36,676
)
 
(37,310
)
Income tax expense
(40,611
)
 
(43,078
)
 
(46,513
)
 
(30,036
)
Net income
74,299

 
75,687

 
85,376

 
73,919

Net income attributable to noncontrolling interest
513

 
693

 
157

 
308

Net income attributable to Nelnet, Inc.
$
73,786

 
74,994

 
85,219

 
73,611

Earnings per common share:
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$
1.59

 
1.61

 
1.84

 
1.59

 
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, net
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

Condensed Parent Only Financial Statements Condensed Parent Only Financial Statements (Tables)
Balance Sheets
(Parent Company Only)
As of December 31, 2014 and 2013
 
2014
 
2013
Assets:
 
 
 
Cash and cash equivalents
$
30,712

 
24,032

Investments
136,432

 
175,887

Investment in subsidiary debt
122,057

 
233,095

Restricted cash
127

 
3,763

Investment in subsidiaries
1,300,032

 
957,676

Other assets
283,831

 
272,910

Fair value of derivative instruments
64,392

 
25,673

Total assets
$
1,937,583

 
1,693,036

Liabilities:
 
 
 
Notes payable
$
149,265

 
191,457

Other liabilities
50,253

 
39,620

Fair value of derivative instruments
12,387

 
17,969

Total liabilities
211,905

 
249,046

Equity:
 
 
 
Nelnet, Inc. shareholders' equity:
 
 
 
Common stock
463

 
464

Additional paid-in capital
17,290

 
24,887

Retained earnings
1,702,560

 
1,413,492

Accumulated other comprehensive earnings
5,135

 
4,819

Total Nelnet, Inc. shareholders' equity
1,725,448

 
1,443,662

Noncontrolling interest
230

 
328

Total equity
1,725,678

 
1,443,990

Total liabilities and shareholders' equity
$
1,937,583

 
1,693,036

Statements of Income
(Parent Company Only)
Years ended December 31, 2014, 2013, and 2012
 
2014
 
2013
 
2012
Investment interest
$
6,863

 
7,911

 
5,186

Interest on bonds and notes payable
5,492

 
4,433

 
3,607

Net interest income
1,371

 
3,478

 
1,579

Other income (expense):
 

 
 

 
 
Other income
8,943

 
7,112

 
8,010

Gain from debt repurchases
6,685

 
11,905

 
4,487

Equity in subsidiaries income
316,934

 
275,989

 
224,011

Derivative market value adjustments and derivative settlements, net
14,963

 
28,134

 
(47,262
)
Total other income
347,525

 
323,140

 
189,246

Operating expenses
5,598

 
5,626

 
1,867

Income before income taxes
343,298

 
320,992

 
188,958

Income tax expense
(34,017
)
 
(16,651
)
 
(10,530
)
Net income
309,281

 
304,341

 
178,428

Net income attributable to noncontrolling interest
1,671

 
1,669

 
431

Net income attributable to Nelnet, Inc.
$
307,610

 
302,672

 
177,997

Statements of Comprehensive Income
(Parent Company Only)
Years ended December 31, 2014, 2013, and 2012
 
2014
 
2013
 
2012
Net income
$
309,281

 
304,341

 
178,428

Other comprehensive income:
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
Unrealized holding gains arising during period, net
9,006

 
9,134

 
10,230

Less reclassification adjustment for gains recognized in net income, net of losses
(8,506
)
 
(5,938
)
 
(5,798
)
Income tax effect
(184
)
 
(1,190
)
 
(1,619
)
Total other comprehensive income
316

 
2,006

 
2,813

Comprehensive income
309,597

 
306,347

 
181,241

Comprehensive income attributable to noncontrolling interest
1,671

 
1,669

 
431

Comprehensive income attributable to Nelnet, Inc.
$
307,926

 
304,678

 
180,810

Statements of Cash Flows
(Parent Company Only)
Years ended December 31, 2014, 2013, and 2012
 
2014
 
2013
 
2012
Net income attributable to Nelnet, Inc.
$
307,610

 
302,672

 
177,997

Net income attributable to noncontrolling interest
1,671

 
1,669

 
431

Net income
309,281

 
304,341

 
178,428

Adjustments to reconcile net income to net cash (used by) provided by operating activities:
 
 
 
 
 
Depreciation and amortization
303

 
284

 
249

Derivative market value adjustment
(36,979
)
 
(57,525
)
 
30,041

Proceeds (payments) to terminate and/or amend derivative instruments, net
1,765

 
(6,469
)
 
(6,005
)
Payment for interest rate swap option
(9,087
)
 

 

Equity in earnings of subsidiaries
(316,934
)
 
(275,989
)
 
(224,011
)
Gain from sale of available-for-sale securities, net
(8,506
)
 
(5,938
)
 
(5,798
)
Gain from debt repurchases
(6,685
)
 
(11,905
)
 
(4,487
)
Other non-cash items
5,396

 
3,835

 
3,569

Decrease in other assets
4,057

 
209,896

 
168,656

Increase (decrease) in other liabilities
12,512

 
16,205

 
(38,971
)
Net cash (used by) provided by operating activities
(44,877
)
 
176,735

 
101,671

Cash flows from investing activities
 
 
 
 
 
Decrease (increase) in restricted cash
3,636

 
59,495

 
(29,082
)
Purchases of available-for-sale securities
(192,315
)
 
(217,415
)
 
(186,727
)
Proceeds from sales of available-for-sale securities
240,371

 
116,337

 
162,533

Capital contributions to/from subsidiaries, net
(25,017
)
 

 

Sales (purchases) of subsidiary debt, net
111,038

 
(66,272
)
 
(6,584
)
Purchases of other investments, net
(14,769
)
 
(11,758
)
 

Net cash provided by (used in) investing activities
122,944

 
(119,613
)
 
(59,860
)
Cash flows from financing activities:
 
 
 
 
 
Payments on notes payable
(63,084
)
 
(147,080
)
 
(109,748
)
Proceeds from issuance of notes payable
27,577

 
135,000

 
153,380

Payments of debt issuance costs
(512
)
 
(644
)
 
(1,111
)
Dividends paid
(18,542
)
 
(18,569
)
 
(66,237
)
Repurchases of common stock
(15,713
)
 
(13,136
)
 
(22,763
)
Proceeds from issuance of common stock
656

 
561

 
480

Payments received on employee stock notes receivable

 

 
1,140

Issuance of noncontrolling interest
201

 
5

 
5

Distribution to noncontrolling interest
(1,970
)
 
(1,351
)
 
(431
)
Net cash used in financing activities
(71,387
)
 
(45,214
)
 
(45,285
)
Net increase (decrease) in cash and cash equivalents
6,680

 
11,908

 
(3,474
)
Cash and cash equivalents, beginning of period
24,032

 
12,124

 
15,598

Cash and cash equivalents, end of period
$
30,712

 
24,032

 
12,124

 
 
 
 
 
 
Summary of Significant Accounting Policies and Practices Summary of Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Summary of Significant Accounting Policies [Abstract]
 
 
 
purchased accrued interest
$ 55.0 
$ 29.0 
$ 68.0 
Student Loans Receivable and Allowance for Loan Losses Student Loans Receivable (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Allowance for loan losses
$ 48,900 
$ 55,122 
$ 51,902 
$ 48,482 
Student loans receivable, net
28,005,195 
25,907,589 
 
 
Federally insured student loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Allowance for loan losses
39,170 
43,440 
40,120 
 
Private education loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Allowance for loan losses
9,730 
11,682 
11,782 
 
held for investment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
28,223,908 
26,121,306 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
169,813 1
158,595 1
 
 
Student loans receivable, net
28,005,195 
25,907,589 
 
 
held for investment [Member] |
Federally insured student loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
28,196,430 
26,050,203 
 
 
Allowance for loan losses
39,170 
43,440 
 
 
held for investment [Member] |
Private education loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
27,478 
71,103 
 
 
Allowance for loan losses
9,730 
11,682 
 
 
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
6,030,825 
6,686,626 
 
 
held for investment [Member] |
Consolidation [Member] |
Federally insured student loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
22,165,605 
19,363,577 
 
 
Non-Accretable Discount [Member] |
held for investment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
8,500,000 
4,400,000 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
$ 28,800 
$ 20,200 
 
 
Student Loans Receivable and Allowance for Loan Losses Student Loan Residual Interests (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Variable-rate bonds and notes [Member]
Dec. 31, 2013
Variable-rate bonds and notes [Member]
Dec. 31, 2013
GCO Trust-II [Member]
Dec. 31, 2014
GCO Trust-II [Member]
Dec. 31, 2013
GCO Trust-II [Member]
Variable-rate bonds and notes [Member]
Dec. 31, 2014
GCO Trust-II [Member]
Variable-rate bonds and notes [Member]
Dec. 31, 2014
Student Loan Securitization Trusts [Member] [Member]
Dec. 31, 2014
Student Loan Securitization Trusts [Member] [Member]
Variable-rate bonds and notes [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
 
 
 
 
Financing Receivable, Significant Purchases
 
 
 
 
$ 1,600,000,000 
 
 
 
$ 2,600,000,000 
 
Debt and Capital Lease Obligations
28,027,350,000 
25,955,289,000 
27,025,100,000 
24,614,143,000 
 
 
1,600,000,000 
 
 
2,600,000,000 
Loans Receivable, Description of Variable Rate Basis
 
 
 
 
 
 
LIBOR 
 
 
LIBOR 
Student loan fair value discount
 
 
 
 
 
52,900,000 
 
 
68,700,000 
 
Debt Instrument, Unamortized Discount
 
 
 
 
 
 
 
$ 91,800,000 
 
$ 163,700,000 
Activity in the Allowance for Loan Losses (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses - balance
 
 
 
$ 55,122 
 
 
 
$ 51,902 
$ 55,122 
$ 51,902 
$ 48,482 
Provision for loan losses
3,500 
2,000 
1,500 
2,500 
3,500 
5,000 
5,000 
5,000 
9,500 
18,500 
21,500 
Charge-offs
 
 
 
 
 
 
 
 
(17,592)
(19,271)
(24,725)
Allowance for loan losses - balance
48,900 
 
 
 
55,122 
 
 
 
48,900 
55,122 
51,902 
Allocation of the Allowance for Loan Losses:
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
48,900 
 
 
 
55,122 
 
 
 
48,900 
55,122 
51,902 
Federally insured loans [Member]
 
 
 
 
 
 
 
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses - balance
 
 
 
43,440 
 
 
 
40,120 
43,440 
40,120 
 
Provision for loan losses
 
 
 
 
 
 
 
 
11,000 
20,000 
22,000 
Charge-offs
 
 
 
 
 
 
 
 
(15,260)
(15,588)
(21,217)
Purchase (sale) of financing receivables, net
 
 
 
 
 
 
 
 
(10)
(1,093)
2,133 
Allowance for loan losses - balance
39,170 
 
 
 
43,440 
 
 
 
39,170 
43,440 
40,120 
Allocation of the Allowance for Loan Losses:
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
39,170 
 
 
 
43,440 
 
 
 
39,170 
43,440 
40,120 
Private education loans [Member]
 
 
 
 
 
 
 
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses - balance
 
 
 
11,682 
 
 
 
11,782 
11,682 
11,782 
 
Provision for loan losses
 
 
 
 
 
 
 
 
(1,500)
(1,500)
(500)
Charge-offs
 
 
 
 
 
 
 
 
(2,332)
(3,683)
(3,508)
Recoveries - non-federally insured loans
 
 
 
 
 
 
 
 
1,315 
1,577 
1,419 
Purchase (sale) of financing receivables, net
 
 
 
 
 
 
 
 
(1,620)
Transfer from repurchase obligation related to non-federally insured loans repurchased, net
 
 
 
 
 
 
 
 
2,185 
3,507 
3,093 
Allowance for loan losses - balance
9,730 
 
 
 
11,682 
 
 
 
9,730 
11,682 
11,782 
Allocation of the Allowance for Loan Losses:
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
$ 9,730 
 
 
 
$ 11,682 
 
 
 
$ 9,730 
$ 11,682 
$ 11,782 
Repurchase Obligations (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Repurchase Obligation [Line Items]
 
 
 
Student loans receivable, net
$ 28,005,195 
$ 25,907,589 
 
Change in Repurchase Obligation [Roll Forward]
 
 
 
Beginning balance
16,143 
16,130 
19,223 
Repurchase obligation transferred to the allowance for loan losses related to loans repurchased, net
(2,185)
(3,507)
(3,093)
Repurchase obligation associated with loans sold
2,097 
3,520 
Current period income
(4,235)1
1
1
Ending balance
11,820 
16,143 
16,130 
Private education loans sold subject to repurchase agreement [Member]
 
 
 
Repurchase Obligation [Line Items]
 
 
 
Days delinquent to trigger repurchase range, minimum
60 
 
 
Days delinquent to trigger repurchase range, maximum
90 
 
 
Student loans receivable, net
$ 155,300 
 
 
Student Loan Status and Delinquency (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Federally insured loans, excluding rehabilitated loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans in-school/grace/deferment
$ 2,805,228 1
$ 2,872,505 1
$ 3,099,637 1
Loans in forbearance
3,288,412 2
3,370,025 2
3,322,301 2
Total loans in repayment
22,102,790 
19,807,673 
18,547,908 
Loans in repayment status:
 
 
 
Loans current
18,460,279 
16,337,922 
15,253,249 
Loans current, percentage
83.50% 
82.40% 
82.20% 
Loans delinquent 31-60 days
1,043,119 3
967,318 3
766,146 3
Loans delinquent 31-60 days, percentage
4.80% 3
4.90% 3
4.10% 3
Loans delinquent 61-90 days
588,777 3
550,333 3
410,576 3
Loans delinquent 61-90 days, percentage
2.70% 3
2.90% 3
2.20% 3
Loans delinquent 91-120 days
404,905 3
390,791 3
433,659 3
Loans delinquent 91-120 days, percentage
1.80% 3
2.00% 3
2.30% 3
Loans delinquent 121-270 days
1,204,405 3
1,117,936 3
1,236,943 3
Loans delinquent 121-270 days, percentage
5.40% 3
5.60% 3
6.70% 3
Loans delinquent 271 days or greater
401,305 3 4
443,373 3 4
447,335 3 4
Loans delinquent 271 days or greater, percentage
1.80% 3 4
2.20% 3 4
2.50% 3 4
Total loans in repayment
22,102,790 
19,807,673 
18,547,908 
Total loans in repayment, percentage
100.00% 
100.00% 
100.00% 
Student loans receivable, gross
$ 28,196,430 
$ 26,050,203 
$ 24,969,846 
Private education loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans Delinquent 31 Days or Greater in Percentage
29.80% 
12.70% 
28.60% 
Outstanding Debt Obligations (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Bonds and notes payable
$ 28,027,350 
$ 25,955,289 
Debt Instrument, Unamortized Discount (Premium), Net
(393,072)
(258,056)
Variable-rate bonds and notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
27,025,100 
24,614,143 
Bonds and notes based on indices [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
25,713,431 
23,479,893 
Interest rate range - minimum
0.19% 
0.25% 
Interest rate range - maximum
6.90% 
6.90% 
Final maturity, start
May 25, 2018 
May 25, 2018 
Final maturity, end
Aug. 26, 2052 
Aug. 26, 2052 
Bonds and notes based on auction or remarketing [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
1,311,669 
1,134,250 
Interest rate range - minimum
0.47% 
0.07% 
Interest rate range - maximum
2.17% 
2.17% 
Final maturity, start
Mar. 22, 2032 
May 01, 2028 
Final maturity, end
Nov. 26, 2046 
Nov. 26, 2046 
Warehouse Agreement Borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
1,241,665 
1,396,344 
Interest rate range - minimum
0.16% 
0.17% 
Interest rate range - maximum
0.26% 
0.25% 
Final maturity, start
Jan. 17, 2016 
Jan. 17, 2016 
Final maturity, end
Jun. 11, 2017 
Jun. 12, 2016 
Unsecured line of credit [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
45,000 
Interest rate range - minimum
0.00% 
1.67% 
Interest rate range - maximum
0.00% 
1.67% 
Final maturity, start
Jun. 30, 2019 
Mar. 28, 2018 
Final maturity, end
Jun. 30, 2019 
Mar. 28, 2018 
Unsecured debt - Junior Subordinated Hybrid Securities [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
71,688 
96,457 
Interest rate range - minimum
3.63% 
3.62% 
Interest rate range - maximum
3.63% 
3.62% 
Final maturity, start
Sep. 15, 2061 
Sep. 15, 2061 
Final maturity, end
Sep. 15, 2061 
Sep. 15, 2061 
Notes Payable, Other Payables [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
81,969 
61,401 
Interest rate range - minimum
1.67% 
1.67% 
Interest rate range - maximum
5.10% 
5.10% 
Final maturity, start
Nov. 11, 2015 
Apr. 11, 2014 
Final maturity, end
Dec. 31, 2018 
Nov. 11, 2015 
Bonds and notes payable, gross [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
$ 28,420,422 
$ 26,213,345 
Bonds and Notes Payable Outstanding Lines of Credit (Details) (USD $)
12 Months Ended 12 Months Ended 2 Months Ended
Dec. 31, 2014
Secured line of credit [Member]
Dec. 31, 2014
Secured line of credit [Member]
Oct. 31, 2014
Secured line of credit [Member]
Dec. 31, 2014
Unsecured line of credit [Member]
Dec. 31, 2014
NHELP-III Warehouse [Member]
Dec. 31, 2014
NHELP-II Warehouse [Member]
Dec. 31, 2014
NFSLW-I Warehouse [Member]
Dec. 31, 2014
FFELP Warehouse Total [Member]
Feb. 26, 2015
Subsequent Event [Member]
NHELP-III Warehouse [Member]
Feb. 26, 2015
Subsequent Event [Member]
NHELP-II Warehouse [Member]
May 31, 2015
Subsequent Event [Member]
NFSLW-I Warehouse [Member]
Apr. 30, 2015
Subsequent Event [Member]
NFSLW-I Warehouse [Member]
Jan. 27, 2015
Subsequent Event [Member]
NFSLW-I Warehouse [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Initiation Date
Apr. 12, 2012 
Apr. 12, 2012 
 
 
 
 
 
 
 
 
 
 
 
Maximum financing amount
$ 50,000,000 
 
$ 75,000,000 
$ 350,000,000 
$ 750,000,000 1
$ 500,000,000 2
$ 500,000,000 3
$ 1,750,000,000 
 
 
 
 
$ 1,200,000,000 
Amount outstanding
75,000,000 
 
 
692,613,000 1
100,637,000 2
448,415,000 3
1,241,665,000 
 
 
 
 
 
Amount available
 
 
 
350,000,000 
57,387,000 1
399,363,000 2
51,585,000 3
508,335,000 
 
 
 
 
 
Expiration of liquidity provisions
 
 
 
 
Feb. 05, 2015 1
Jan. 15, 2015 2
Jun. 11, 2015 3
 
May 05, 2015 
Dec. 17, 2015 
 
 
 
Final maturity date
Oct. 31, 2016 
Oct. 31, 2016 
 
Jun. 30, 2019 
Jan. 17, 2016 1
Jan. 15, 2017 2
Jun. 11, 2017 3
 
 
Dec. 17, 2017 
 
 
 
Advanced as equity support
 
 
 
 
41,578,000 1
9,924,000 2
21,931,000 3
73,433,000 
 
 
 
 
 
Minimum advance rates - range minimum
 
 
 
 
92.20% 
84.50% 
84.00% 
 
 
 
 
 
 
Minimum advance rates - range maximum
 
 
 
 
95.00% 
94.50% 
90.00% 
 
 
 
 
 
 
Maximum advance rates - range minimum
 
 
 
 
92.20% 
84.50% 
92.00% 
 
 
 
 
 
 
Maximum advance rates - range maximum
 
 
 
 
95.00% 
94.50% 
98.00% 
 
 
 
 
 
 
decrease in lending facility
 
 
 
 
 
 
 
 
 
 
$ 250,000,000 
$ 200,000,000 
 
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 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
2014-1 Securitization [Member]
Dec. 31, 2014
2014-2 Securitization [Member]
Dec. 31, 2014
2014-3 Securitization [Member]
Dec. 31, 2014
2014-4 Securitization [Member]
Dec. 31, 2014
2014-5 Securitization [Member]
Dec. 31, 2014
2014-6 Securitization [Member]
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, 2014
Class A [Member]
Dec. 31, 2013
Class A [Member]
Dec. 31, 2014
Class A [Member]
2014-1 Securitization [Member]
Dec. 31, 2014
Class A [Member]
2014-2 Securitization [Member]
Dec. 31, 2014
Class A [Member]
2014-3 Securitization [Member]
Dec. 31, 2014
Class A [Member]
2014-4 Securitization [Member]
Dec. 31, 2014
Class A [Member]
2014-5 Securitization [Member]
Dec. 31, 2014
Class A [Member]
2014-6 Securitization [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, 2014
Class B [Member]
Dec. 31, 2013
Class B [Member]
Dec. 31, 2014
Class B [Member]
2014-1 Securitization [Member]
Dec. 31, 2014
Class B [Member]
2014-2 Securitization [Member]
Dec. 31, 2014
Class B [Member]
2014-3 Securitization [Member]
Dec. 31, 2014
Class B [Member]
2014-4 Securitization [Member]
Dec. 31, 2014
Class B [Member]
2014-5 Securitization [Member]
Dec. 31, 2014
Class B [Member]
2014-6 Securitization [Member]
Dec. 31, 2013
Class B [Member]
2013-1 Securitization [Member]
Dec. 31, 2014
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, 2014
Class B [Member]
2013-5 Securitization [Member]
Dec. 31, 2014
Auction Rate Securities [Member]
Dec. 31, 2014
2014-2 Securitization Class A-1 [Member]
2014-2 Securitization [Member]
Dec. 31, 2014
2014-2 Securitization Class A-1 [Member]
Class A [Member]
2014-2 Securitization [Member]
Dec. 31, 2014
2014-2 Securitization Class A-2 [Member]
2014-2 Securitization [Member]
Dec. 31, 2014
2014-2 Securitization Class A-2 [Member]
Class A [Member]
2014-2 Securitization [Member]
Dec. 31, 2014
2014-2 Securitization Class A-3 [Member]
2014-2 Securitization [Member]
Dec. 31, 2014
2014-2 Securitization Class A-3 [Member]
Class A [Member]
2014-2 Securitization [Member]
Dec. 31, 2014
2014-4 Securitization Class A-1 [Member]
2014-4 Securitization [Member]
Dec. 31, 2014
2014-4 Securitization Class A-1 [Member]
Class A [Member]
2014-4 Securitization [Member]
Dec. 31, 2014
2014-4 Securitization Class A-2 [Member]
2014-4 Securitization [Member]
Dec. 31, 2014
2014-4 Securitization Class A-2 [Member]
Class A [Member]
2014-4 Securitization [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Issuance Date
 
 
Feb. 06, 2014 
Mar. 12, 2014 
Apr. 30, 2014 
May 23, 2014 
Jun. 18, 2014 
Jul. 31, 2014 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar. 12, 2014 
 
Mar. 12, 2014 
 
Mar. 12, 2014 
 
May 23, 2014 
 
May 23, 2014 
 
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 8,300,000 
 
$ 34,000,000 
 
 
$ 9,000,000 
 
 
 
 
 
 
 
 
 
 
 
Date issued
 
 
 
 
 
 
 
 
Jan. 31, 2013 
Feb. 28, 2013 1
Apr. 30, 2013 
Jun. 21, 2013 
Sep. 30, 2013 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
3,239,800,000 
3,176,500,000 
458,500,000 
509,000,000 
719,800,000 
384,500,000 
603,000,000 
565,000,000 1
437,500,000 
1,122,000,000 1
765,000,000 
453,000,000 
399,000,000 1
3,169,700,000 
3,134,000,000 
445,000,000 
497,000,000 
700,700,000 
375,000,000 
587,000,000 
565,000,000 1
428,000,000 
1,122,000,000 1
745,000,000 
440,000,000 
399,000,000 1
70,100,000 
42,500,000 
13,500,000 
12,000,000 
19,100,000 
9,500,000 
16,000,000 
 
9,500,000 
 
20,000,000 
13,000,000 
 
 
 
191,000,000 
 
222,000,000 
 
84,000,000 
 
267,500,000 
 
107,500,000 
Bond discount
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,659,000)
(9,896,000)
(535,000)
(3,124,000)1
(3,325,000)1
(1,690,000)
(4,881,000)1
(6,015,000)
(5,091,000)
(1,132,000)
(1,046,000)
(1,467,000)
(1,138,000)
(1,232,000)
 
(1,525,000)
 
(1,762,000)
(1,804,000)
 
 
 
 
 
(535,000)
 
 
Issue price
 
 
 
 
 
 
 
 
 
 
 
 
 
3,166,041,000 
3,124,104,000 
445,000,000 
496,465,000 
700,700,000 
375,000,000 
587,000,000 
561,876,000 1
428,000,000 
1,118,675,000 1
745,000,000 
438,310,000 
394,119,000 1
64,085,000 
37,409,000 
12,368,000 
10,954,000 
17,633,000 
8,362,000 
14,768,000 
 
7,975,000 
 
18,238,000 
11,196,000 
 
 
 
191,000,000 
 
222,000,000 
 
83,465,000 
 
267,500,000 
 
107,500,000 
Cost of funds (1-month LIBOR plus:)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.57% 
 
0.58% 
 
0.55% 
0.65% 1
0.60% 
0.50% 1
0.50% 
0.50% 
0.63% 1
 
 
1.50% 
1.50% 
1.50% 
1.50% 
1.50% 
 
1.50% 
 
1.50% 
1.50% 
 
 
 
0.28% 
 
0.60% 
 
0.85% 
 
0.54% 
 
0.95% 
Final maturity date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sep. 25, 2041 
 
Jun. 25, 2041 
 
Jul. 25, 2041 
Nov. 25, 2047 1
Jun. 25, 2041 
Jul. 25, 2040 1
Feb. 25, 2037 
Dec. 26, 2042 
Jan. 25, 2037 1
 
 
Oct. 25, 2047 
Jun. 25, 2041 
Oct. 25, 2050 
Sep. 25, 2051 
May 25, 2049 
 
Mar. 25, 2048 
 
Jul. 25, 2047 
Jan. 25, 2047 
 
 
 
Jun. 25, 2021 
 
Mar. 25, 2030 
 
Jul. 27, 2037 
 
Nov. 27, 2034 
 
Nov. 25, 2043 
Class B subordinated notes purchased with issuance of asset-backed securitizations (off-balance sheet)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bonds and notes payable
$ 28,027,350,000 
$ 25,955,289,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,300,000,000 
 
 
 
 
 
 
 
 
 
 
[1] Total original principal amount excludes the Class B subordinated tranches for the 2014-6, 2013-2, and 2013-5 transactions totaling $8.3 million, $34.0 million, and $9.0 million, respectively, that were retained at issuance. As of December 31, 2014, the Company has a total of $36.0 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, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Debt Instrument, Face Amount
$ 3,239,800,000 
$ 3,176,500,000 
Debt and Capital Lease Obligations
28,027,350,000 
25,955,289,000 
Junior Subordinated Debt [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Face Amount
200,000,000 
 
Debt Instrument, Interest Rate, Stated Percentage
3.63% 
 
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
$ 71,688,000 
$ 96,457,000 
Bonds and Notes Payable Other Borrowings (Details) (USD $)
Dec. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Bonds and notes payable
$ 28,027,350,000 
$ 25,955,289,000 
Mortgages [Member] |
Other borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
4,400,000 
4,500,000 
Sub-Participation [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
2,600,000 
 
future obligation to fund subparticipation
500,000 
 
Third-party [Member] |
Other borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
 
6,900,000 
Defeased debt [Member] |
Other borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
$ 49,400,000 
$ 45,900,000 
Bonds and Notes Payable Maturity of long-term debt (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Notes payable
$ 28,027,350 
$ 25,955,289 
Debt and Capital Lease Obligations, Gross [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months
4,393 
 
Long-term Debt, Maturities, Repayments of Principal in Year Two
767,613 
 
Long-term Debt, Maturities, Repayments of Principal in Year Three
549,052 
 
Long-term Debt, Maturities, Repayments of Principal in Year Four
39,265 
 
Long-term Debt, Maturities, Repayments of Principal in Year Five
437,003 
 
Long-term Debt, Maturities, Repayments of Principal after Year Five
26,623,096 
 
Notes payable
$ 28,420,422 
$ 26,213,345 
Derivative Financial Instruments Outstanding (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Derivative [Line Items]
 
 
 
Increase (Decrease) in Financial Instruments Used in Operating Activities
$ 9,087,000 
$ 0 
$ 0 
Student loans receivable, net
28,005,195,000 
25,907,589,000 
 
Bonds and notes payable
28,027,350,000 
25,955,289,000 
 
Junior Subordinated Hybrid Securities [Member]
 
 
 
Derivative [Line Items]
 
 
 
Bonds and notes payable
71,688,000 
96,457,000 
 
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% 
 
 
Derivative, Fixed Interest Rate
7.66% 
 
 
Junior Subordinated Hybrid Securities [Member] |
Unsecured Debt Interest Rate Swaps 1 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
 
25,000,000 
 
Weighted average fixed rate paid by the Company
 
4.28% 1
 
Unsecured Debt Interest Rate Swaps 1 [Member] |
Maturity 2036 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
25,000,000 
 
 
Weighted average fixed rate paid by the Company
4.28% 1
 
 
1:3 basis swaps [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Type of Interest Rate Paid on Swap
one-month LIBOR 
one-month LIBOR 
 
1:3 basis swaps [Member] |
One-month LIBOR, Daily reset [Member]
 
 
 
Derivative [Line Items]
 
 
 
Student loans receivable, net
27,300,000,000 
 
 
Derivative, Type of Interest Rate Paid on Swap
one-month LIBOR 
 
 
1:3 basis swaps [Member] |
Three-month treasury bill, Daily reset [Member]
 
 
 
Derivative [Line Items]
 
 
 
Student loans receivable, net
900,000,000 
 
 
Derivative, Type of Interest Rate Paid on Swap
three-month treasury bill rate 
 
 
1:3 basis swaps [Member] |
Three-month LIBOR, Quarterly reset [Member]
 
 
 
Derivative [Line Items]
 
 
 
Bonds and notes payable
16,500,000,000 
 
 
Derivative, Type of Interest Rate Paid on Swap
three-month LIBOR 
 
 
1:3 basis swaps [Member] |
One-month LIBOR, Monthly reset [Member]
 
 
 
Derivative [Line Items]
 
 
 
Bonds and notes payable
9,900,000,000 
 
 
Derivative, Type of Interest Rate Paid on Swap
one-month LIBOR 
 
 
Swaption [Member]
 
 
 
Derivative [Line Items]
 
 
 
Increase (Decrease) in Financial Instruments Used in Operating Activities
9,100,000 
 
 
Derivative, Notional Amount
250,000,000 
 
 
Derivative, Swaption Interest Rate
3.30% 
 
 
Derivative, Type of Interest Rate Received on Swap
one-month LIBOR 
 
 
Interest Rate Swap [Member] |
One Month to Three Month Basis Swap Outstanding 8 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
200,000,000 
 
Interest Rate Swap [Member] |
One Month to Three Month Basis Swap Outstanding 7 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
150,000,000 2
150,000,000 2
 
Interest Rate Swap [Member] |
One Month to Three Month Basis Swap Outstanding 6 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
700,000,000 
700,000,000 
 
Interest Rate Swap [Member] |
One Month to Three Month Basis Swap Outstanding 5 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
100,000,000 
100,000,000 
 
Interest Rate Swap [Member] |
One Month to Three Month Basis Swap Oustanding 4 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
800,000,000 
800,000,000 
 
Interest Rate Swap [Member] |
Maturity 2022 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
1,900,000,000 
1,900,000,000 
 
Interest Rate Swap [Member] |
Maturity 2021 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
250,000,000 
250,000,000 
 
Interest Rate Swap [Member] |
Maturity 2023 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
3,650,000,000 
3,650,000,000 
 
Interest Rate Swap [Member] |
Maturity 2024 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
250,000,000 
250,000,000 
 
Interest Rate Swap [Member] |
Fixed Rate Floor Income Interest Rate Swap 1 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
1,750,000,000 
 
Weighted average fixed rate paid by the Company
0.00% 1
0.71% 1
 
Interest Rate Swap [Member] |
Fixed Rate Floor Income Interest Rate Swap 2 [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 Swap [Member] |
Fixed Rate Floor Income Interest Rate Swap 3 [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 Swap [Member] |
Fixed Rate Floor Income Interest Rate Swap 4 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
1,250,000,000 
1,250,000,000 
 
Weighted average fixed rate paid by the Company
0.86% 1
0.86% 1
 
Interest Rate Swap [Member] |
1:3 basis swaps [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
7,800,000,000 3
8,000,000,000 3
 
Interest Rate Swap [Member] |
Interest rate swaps - floor income hedges [Member]
 
 
 
Derivative [Line Items]
 
 
 
Student loans earning fixed rate floor income
12,700,000,000 
11,100,000,000 
 
Weighted Average Variable Conversion Rate
1.84% 
1.83% 
 
Derivative, Notional Amount
$ 3,100,000,000 
$ 4,850,000,000 
 
Weighted average fixed rate paid by the Company
0.87% 1
0.81% 1
 
One Month LIBOR [Member] |
1:3 basis swaps [Member]
 
 
 
Derivative [Line Items]
 
 
 
Weighted average basis spread on variable rate
0.35% 
0.35% 
 
Derivative Financial Instruments Cross-currency Interest Rate Swaps (Details)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
USD ($)
Dec. 31, 2013
USD ($)
Dec. 31, 2012
USD ($)
Dec. 31, 2014
Cross-currency interest rate swaps [Member]
USD ($)
Dec. 31, 2013
Cross-currency interest rate swaps [Member]
USD ($)
Dec. 31, 2012
Cross-currency interest rate swaps [Member]
USD ($)
Nov. 30, 2013
Cross-currency interest rate swap 1 [Member]
EUR (€)
Dec. 31, 2014
Cross currency interest rate swap 2 [Member]
USD ($)
Dec. 31, 2014
Cross currency interest rate swap 2 [Member]
EUR (€)
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
Bonds and notes payable
$ 28,027,350 
$ 25,955,289 
 
 
 
 
€ 420,500 
 
€ 352,700 
Derivative, Notional Amount
 
 
 
 
 
 
 
450,000 
352,700 
Re-measurement of Euro Notes
58,013 
(35,285)
(19,561)
58,013 
(35,285)1
(19,561)1
 
 
 
Change in fair value of cross currency interest rate swaps
(20,310)
83,878 
(27,833)
(57,289)
26,354 1
2,210 1
 
 
 
Total impact to consolidated statements of income - income (expense)
$ (20,310)
$ 83,878 
$ (27,833)
$ 724 2
$ (8,931)1 2
$ (17,351)1 2
 
 
 
Derivative Financial Instruments Fair Value of Derivative Instruments (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Derivatives, Fair Value [Line Items]
 
 
 
Derivative Asset, Fair Value, Amount Not Offset Against Collateral
$ 34,700,000 
 
 
Fair value of derivative instruments
64,392,000 
62,507,000 
 
Fair value of derivative instruments
32,842,000 
17,969,000 
 
Proceeds (payments) to terminate and/or amend derivative instruments, net
1,765,000 
65,890,000 
(6,005,000)
Payments to terminate and/or amend derivative instruments
 
65,900,000 
 
1:3 basis swaps [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of derivative instruments
53,549,000 
18,490,000 
 
Fair value of derivative instruments
 
Interest rate swaps - floor income hedges [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of derivative instruments
5,165,000 
7,183,000 
 
Fair value of derivative instruments
5,034,000 
15,849,000 
 
Swaption [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of derivative instruments
5,678,000 
 
Fair value of derivative instruments
 
Interest rate swaps - hybrid debt hedges [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of derivative instruments
 
Fair value of derivative instruments
7,353,000 
2,120,000 
 
Cross-currency interest rate swaps [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of derivative instruments
36,834,000 
 
Fair value of derivative instruments
$ 20,455,000 
$ 0 
 
Derivative Financial Instruments Income Statement Effect of Derivative Instruments (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative settlements
$ (21,843)
$ (29,636)
$ (14,022)
Change in fair value
(20,310)
83,878 
(27,833)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
58,013 
(35,285)
(19,561)
Derivative market value and foreign currency adjustments and derivative settlements - income (expense)
15,860 
18,957 
(61,416)
1:3 basis swaps [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative settlements
3,389 
3,301 
4,495 
Change in fair value
36,824 
7,467 
676 
Interest rate swaps - floor income hedges [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative settlements
(24,380)
(31,022)
(19,270)
Change in fair value
8,797 
36,719 
(35,215)
Swaption [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Change in fair value
(3,409)
Interest rate swaps - hybrid debt hedges [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative settlements
(1,025)
(1,670)
(2,231)
Change in fair value
(5,233)
12,997 
1,717 
Cross-currency interest rate swaps [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative settlements
173 
(245)
3,228 
Change in fair value
(57,289)
26,354 
2,210 
Other [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative settlements
(244)
Change in fair value
$ 0 
$ 341 
$ 2,779 
Derivative Financial Instruments Derivative Collateral (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Derivative Financial Instruments [Abstract]
 
 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
$ 64,392 
$ 62,507 
Derivative Asset, Fair Value, Amount Offset Against Collateral
(12,387)
(15,437)
Derivative, Collateral, Obligation to Return Cash
(15,959)
Derivative Assets Not Designated As Hedging Instruments, Net
52,005 
31,111 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
(32,842)
(17,969)
Derivative Liability, Fair Value, Amount Offset Against Collateral
12,387 
15,437 
Derivative, Collateral, Right to Reclaim Cash
(1,454)
3,630 
Derivative Liabilities Not Designated As Hedging Instruments, Net
$ (21,909)
$ 1,098 
Investments and Restricted Investments Summary (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
$ 149,123 
$ 192,040 
Investments [Member] |
Available-for-sale securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
133,142 
173,433 
Gross unrealized gains
8,420 
8,894 
Gross unrealized losses
(269)1
(1,244)
Investments, Fair Value Disclosure
141,293 
181,083 
Investments [Member] |
Available-for-sale securities [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
131,589 2
171,931 2
Gross unrealized gains
6,204 2
7,111 2
Gross unrealized losses
(236)1 2
(1,241)2
Investments, Fair Value Disclosure
137,557 2
177,801 2
Investments [Member] |
Available-for-sale securities [Member] |
Equity securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
1,553 
1,502 
Gross unrealized gains
2,216 
1,783 
Gross unrealized losses
(33)1
(3)
Investments, Fair Value Disclosure
3,736 
3,282 
Investments [Member] |
Trading investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
7,830 
10,957 
Estimate of Fair Value Measurement [Member]
 
 
Investment Holdings [Line Items]
 
 
Guaranteed investment contracts - held-to-maturity
$ 50,276 3
$ 7,285 3
Investments Available for Sale Securities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
 
Amortized cost, within 1 year
$ 0 
Fair value, within 1 year
Amortized cost, 1-5 years
386 
Fair value, 1-5 years
386 
Amortized cost, 6-10 years
Fair value, 6-10 years
Amortized cost, after 10 years
131,203 
Fair value, after 10 years
137,171 
Amortized cost
131,589 
Fair value
$ 137,557 
Investments Stated Maturities on Held-To-Maturity Securities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Schedule of Held-to-maturity Securities [Line Items]
 
Within 1 year
$ 0 
1-5 years
10,203 
6-10 years
After 10 years
40,073 
Total
$ 50,276 
Investments Realized and Unrealized Gains (losses) on Investments (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Gain (Loss) on Investments [Line Items]
 
 
 
Investment gains (losses) included in other income
$ 7,289 
$ 6,164 
$ 7,511 
Available-for-sale Securities [Member]
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
Gross realized gains
8,581 
6,270 
6,120 
Gross realized losses
(75)
(332)
(322)
Trading Securities [Member]
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
Unrealized gains (losses), net
(135)
221 
254 
Realized gains (losses), net
$ (1,082)
$ 5 
$ 1,459 
Investments Reclassifications to OCI (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
 
 
 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax
$ 8,506 
$ 5,938 
$ 5,798 
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
8,506 
5,938 
5,798 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax
(3,147)
(2,197)
(2,145)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax
$ 5,359 
$ 3,741 
$ 3,653 
Business Combination Schedule of Assets Acquired at Fair Value(Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Business Acquisition [Line Items]
 
 
 
Goodwill
$ 126,200 
$ 117,118 
$ 117,118 
RenWeb Acquisition [Member]
 
 
 
Business Acquisition [Line Items]
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents
326 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables
961 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment
105 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets
22 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill
37,188 
 
 
Goodwill
9,082 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other
(1,341)
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net
$ 46,343 
 
 
Business Combination Acquisition Details (Details) (RenWeb Acquisition [Member], USD $)
12 Months Ended
Dec. 31, 2014
Business Acquisition [Line Items]
 
Business Acquisition, Percentage of Voting Interests Acquired
100.00% 
Business Combination, Consideration Transferred
$ 44,000,000 
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High
4,000,000 
Business Combination, Contingent Consideration, Liability
2,300,000 
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability
1,300,000 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill
37,188,000 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
18 years 
Business Acquisition, Goodwill, Expected Tax Deductible Amount
9,100,000 
Customer Relationships [Member]
 
Business Acquisition [Line Items]
 
Finite-lived Intangible Assets Acquired
25,500,000 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
20 years 
Trade Names [Member]
 
Business Acquisition [Line Items]
 
Finite-lived Intangible Assets Acquired
6,400,000 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
20 years 
Computer Software [Member]
 
Business Acquisition [Line Items]
 
Finite-lived Intangible Assets Acquired
4,900,000 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
5 years 
Noncompete Agreements [Member]
 
Business Acquisition [Line Items]
 
Finite-lived Intangible Assets Acquired
$ 400,000 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
10 years 
Intangible Assets Intangible Assets - Schedule of Intangible Assets (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
176 months 
 
Finite-Lived Intangible Assets, Net
$ 42,582,000 
$ 6,132,000 
Customer Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
209 months 
 
Finite-Lived Intangible Assets, Net
27,330,000 
6,132,000 
Accumulated amortization
17,361,000 
19,821,000 
Computer Software [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
42 months 
 
Finite-Lived Intangible Assets, Net
6,969,000 
Accumulated amortization
1,896,000 
Trade Names [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
233 months 
 
Finite-Lived Intangible Assets, Net
6,150,000 
Accumulated amortization
272,000 
Noncompete Agreements [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
113 months 
 
Finite-Lived Intangible Assets, Net
333,000 
Accumulated amortization
21,000 
Media Content [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
24 months 
 
Finite-Lived Intangible Assets, Net
1,800,000 
Accumulated amortization
$ 0 
$ 0 
Intangible Assets Intangible Assets - Expected Future Amortization Expense (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Intangible Assets [Abstract]
 
 
 
Amortization of Intangible Assets
$ 6,500,000 
$ 3,300,000 
$ 19,000,000 
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months
8,695,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Two
6,249,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Three
4,652,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Four
3,533,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Five
2,861,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, after Year Five
16,592,000 
 
 
Finite-Lived Intangible Assets, Net
$ 42,582,000 
$ 6,132,000 
 
Goodwill Goodwill (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Goodwill [Line Items]
 
 
Goodwill, Begining Balance
$ 117,118,000 
$ 117,118,000 
Goodwill, Acquired During Period
9,082,000 
Goodwill, Ending Balance
126,200,000 
117,118,000 
Student Loan and Guaranty Servicing [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, Begining Balance
8,596,000 
8,596,000 
Goodwill, Acquired During Period
Goodwill, Ending Balance
8,596,000 
8,596,000 
Tuition Payment Processing and Campus Commerce [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, Begining Balance
58,086,000 
58,086,000 
Goodwill, Acquired During Period
9,082,000 
Goodwill, Ending Balance
67,168,000 
58,086,000 
Enrollment Services [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, Begining Balance
 
8,553,000 
Goodwill, Acquired During Period
 
Goodwill, Ending Balance
 
8,553,000 
Asset Generation and Management [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, Begining Balance
41,883,000 1
41,883,000 1
Goodwill, Acquired During Period
1
1
Goodwill, Ending Balance
41,883,000 1
41,883,000 1
Corporate and Other Activities [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, Begining Balance
8,553,000 
 
Goodwill, Acquired During Period
 
Goodwill, Ending Balance
$ 8,553,000 1
 
Property and Equipment Property and Equipment (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Gross
$ 130,285,000 
$ 109,658,000 
 
Accumulated Depreciation
84,391,000 
75,829,000 
 
Property, Plant and Equipment, Net
45,894,000 
33,829,000 
 
Depreciation Expense
14,600,000 
15,100,000 
12,900,000 
Computer Equipment and Software [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Gross
98,462,000 
77,733,000 
 
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
12,265,000 
9,843,000 
 
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
3,645,000 
3,618,000 
 
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
3,877,000 
7,398,000 
 
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
11,336,000 
10,366,000 
 
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, 2014
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, 2014
Dec. 31, 2013
Dec. 31, 2012
Class of Stock [Line Items]
 
 
 
Stock Repurchase Program, Number of Shares Authorized to be Repurchased
5,000,000 
 
 
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased
3,500,000 
 
 
Stock Repurchased and Retired During Period, Shares
381,689 
393,259 
806,023 
Stock Repurchased and Retired During Period, Value
$ 15,713 
$ 13,136 
$ 22,814 
Average price of shares repurchased (per share)
$ 41.17 
$ 33.40 
$ 28.30 
Earnings per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
$ 73,611 
$ 85,219 
$ 74,994 
$ 73,786 
$ 70,520 
$ 62,830 
$ 101,243 
$ 68,079 
$ 307,610 
$ 302,672 
$ 177,997 
Weighted Average Number of Shares Outstanding, Basic and Diluted
 
 
 
 
 
 
 
 
46,469,615 
46,570,314 
47,369,331 
Earnings per share - basic and diluted
$ 1.59 
$ 1.84 
$ 1.61 
$ 1.59 
$ 1.52 
$ 1.35 
$ 2.17 
$ 1.46 
$ 6.62 
$ 6.50 
$ 3.76 
Weighted Average Number Diluted Shares Outstanding Adjustment [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Antidilutive securities excluded from computation of earnings per share
 
 
 
 
 
 
 
 
Unvested restricted stock shareholders [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
3,070 
2,629 
1,350 
Weighted Average Number of Shares Outstanding, Basic and Diluted
 
 
 
 
 
 
 
 
463,700 
404,529 
359,297 
Earnings per share - basic and diluted
 
 
 
 
 
 
 
 
$ 6.62 
$ 6.50 
$ 3.76 
Common shareholders [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
$ 304,540 
$ 300,043 
$ 176,647 
Weighted Average Number of Shares Outstanding, Basic and Diluted
 
 
 
 
 
 
 
 
46,005,915 
46,165,785 
47,010,034 
Earnings per share - basic and diluted
 
 
 
 
 
 
 
 
$ 6.62 
$ 6.50 
$ 3.76 
Shares Issued - Deferred [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Non Employee Director Stock, Cumulative Deferred Shares
136,495 
 
 
 
 
 
 
 
136,495 
 
 
Income Taxes Gross Unrecognized Tax Benefits (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
 
 
Unrecognized Tax Benefits - Gross balance - Period Start
$ 19,141,000 
$ 29,568,000 
Additions based on tax positions of prior years
1,421,000 
996,000 
Additions based on tax positions related to the current year
4,393,000 
3,812,000 
Settlements with taxing authorities
(833,000)
(7,470,000)
Reductions for tax positions of prior years
(641,000)
(6,470,000)
Reductions based on tax positions related to the current year
(272,000)
Reductions due to lapse of applicable statute of limitations
(2,145,000)
(1,023,000)
Unrecognized Tax Benefits - Gross balance - Period End
21,336,000 
19,141,000 
Unrecognized Tax Benefits that Would Impact Effective Tax Rate
13,900,000 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit
3,700,000 
 
Favorably affect the effective tax rate [Member]
 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit
$ 2,400,000 
 
Income Taxes Interest and Penalties Accrued on Uncertain Tax Positions (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Interest and Penalties Related to Uncertain Tax Provisions [Line Items]
 
 
 
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued
 
$ 2.1 
 
Unrecognized Tax Benefits, Interest on Income Taxes Expense
0.1 
(1.3)
2.7 
Unrecognized Tax Benefits, Income Tax Penalties Expense
$ 0 
$ 0.3 
 
Income Taxes Income Tax Provision (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Schedule of Income Tax Expense/Benefit [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Current Federal Tax Expense (Benefit)
 
 
 
 
 
 
 
 
$ 138,269 
$ 153,756 
$ 118,490 
Current State and Local Tax Expense (Benefit)
 
 
 
 
 
 
 
 
2,545 
4,776 
1,383 
Current Foreign Tax Expense (Benefit)
 
 
 
 
 
 
 
 
(235)
122 
33 
Current Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
140,579 
158,654 
119,906 
Deferred Federal Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
16,598 
1,676 
(23,460)
Deferred State and Local Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
3,464 
868 
(358)
Deferred Foreign Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
(403)
(5)
(11)
Deferred Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
19,659 
2,539 
(23,829)
Income Tax Expense (Benefit)
$ 30,036 
$ 46,513 
$ 43,078 
$ 40,611 
$ 37,556 
$ 30,444 
$ 54,746 
$ 38,447 
$ 160,238 
$ 161,193 
$ 96,077 
Income Taxes Effective Tax Rate Reconciliation (Details)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
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
0.70% 
0.80% 
0.50% 
Provision of uncertain federal and state tax matters
0.40% 
(0.60%)
0.20% 
Tax credits
(0.40%)
(0.40%)
(0.60%)
Other
(1.40%)
0.00% 
(0.10%)
Effective tax rate
34.30% 
34.80% 
35.00% 
Income Taxes Deferred Tax Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Deferred Tax Assets, Net [Abstract]
 
 
Student loans
$ 21,139 
$ 25,967 
Intangible assets
12,682 
23,675 
Deferred tax asset, securitizations
7,626 
10,407 
Capital loss carry-back
3,974 
Accrued expenses
2,872 
4,162 
Stock compensation
2,490 
1,608 
Deferred revenue
1,548 
777 
Other
109 
28 
Deferred Tax Assets, Gross
52,440 
66,624 
Deferred Tax Assets, Valuation Allowance
(304)
(239)
Deferred Tax Assets, Net of Valuation Allowance
52,136 
66,385 
Deferred Tax Liabilities, Net [Abstract]
 
 
Debt repurchases
24,918 
32,286 
Loan origination services
19,258 
23,750 
Basis in certain derivative contracts
15,692 
2,137 
Depreciation
4,122 
4,673 
Unrealized gain on debt and equity securities
3,016 
2,830 
Partnership Basis
1,143 
Deferred Tax Liabilities, Gross
68,149 
65,676 
Net Deferred Tax Liability
(16,013)
 
Net Deferred Tax Asset
 
$ 709 
Income Taxes Income Taxes Payable / Receivable (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]
 
 
Income Taxes Receivable
$ 10.2 
 
Taxes Payable, Current
 
$ 4.1 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
$ 709,800 
$ 644,810 
$ 613,853 
Interest expense
 
 
 
 
 
 
 
 
273,237 
230,935 
268,566 
Net interest income
112,492 
117,487 
107,713 
98,871 
108,736 
104,922 
101,419 
98,798 
436,563 
413,875 
345,287 
Less provision for loan losses
3,500 
2,000 
1,500 
2,500 
3,500 
5,000 
5,000 
5,000 
9,500 
18,500 
21,500 
Net interest income after provision for loan losses
108,992 
115,487 
106,213 
96,371 
105,236 
99,922 
96,419 
93,798 
427,063 
395,375 
323,787 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing revenue
56,538 
52,659 
66,460 
64,757 
63,167 
64,582 
60,078 
55,601 
240,414 
243,428 
209,748 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
Tuition payment processing, school information, and campus commerce revenue
24,688 
26,399 
21,834 
25,235 
18,988 
19,927 
18,356 
23,411 
98,156 
80,682 
74,410 
Enrollment services revenue
17,791 
22,936 
20,145 
22,011 
21,735 
22,563 
24,823 
28,957 
82,883 
98,078 
117,925 
Other income
12,906 
7,650 
15,315 
18,131 
15,981 
8,613 
12,288 
9,416 
54,002 
46,298 
39,476 
Gain on sale of loans and debt repurchases, net
3,594 
18 
39 
799 
2,138 
7,355 
1,407 
3,651 
11,699 
4,139 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
37,703 
48,593 
(47,394)
Derivative settlements, net
 
 
 
 
 
 
 
 
(21,843)
(29,636)
(14,022)
Total other income
 
 
 
 
 
 
 
 
494,966 
499,142 
384,282 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
60,609 
61,098 
53,888 
52,484 
52,120 
48,712 
47,432 
47,905 
228,079 
196,169 
192,826 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
53,307 
64,961 
78,375 
Depreciation and amortization
5,644 
5,493 
5,214 
4,783 
5,274 
4,340 
4,320 
4,377 
21,134 
18,311 
33,625 
Other
37,310 
36,676 
40,377 
35,627 
40,349 
39,887 
34,365 
34,941 
149,990 
149,542 
128,738 
Intersegment expenses, net
 
 
 
 
 
 
 
 
Total operating expenses
 
 
 
 
 
 
 
 
452,510 
428,983 
433,564 
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
469,519 
465,534 
274,505 
Corporate overhead allocation
 
 
 
 
 
 
 
 
Income before income taxes
 
 
 
 
 
 
 
 
469,519 
465,534 
274,505 
Income tax expense
(30,036)
(46,513)
(43,078)
(40,611)
(37,556)
(30,444)
(54,746)
(38,447)
(160,238)
(161,193)
(96,077)
Net income
73,919 
85,376 
75,687 
74,299 
71,088 
63,046 
101,857 
68,350 
309,281 
304,341 
178,428 
Net income attributable to noncontrolling interest
308 
157 
693 
513 
568 
216 
614 
271 
1,671 
1,669 
431 
Net Income (Loss) Attributable to Parent
73,611 
85,219 
74,994 
73,786 
70,520 
62,830 
101,243 
68,079 
307,610 
302,672 
177,997 
Total assets
30,098,143 
 
 
 
27,770,849 
 
 
 
30,098,143 
27,770,849 
26,607,895 
Student Loan and Guaranty Servicing [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
30 
40 
53 
Interest expense
 
 
 
 
 
 
 
 
Net interest income
 
 
 
 
 
 
 
 
30 
40 
53 
Less provision for loan losses
 
 
 
 
 
 
 
 
Net interest income after provision for loan losses
 
 
 
 
 
 
 
 
30 
40 
53 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing revenue
 
 
 
 
 
 
 
 
240,414 
243,428 
209,748 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
55,139 
56,744 
65,376 
Tuition payment processing, school information, and campus commerce revenue
 
 
 
 
 
 
 
 
Enrollment services revenue
 
 
 
 
 
 
 
 
Other income
 
 
 
 
 
 
 
 
Gain on sale of loans and debt repurchases, net
 
 
 
 
 
 
 
 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
Derivative settlements, net
 
 
 
 
 
 
 
 
Total other income
 
 
 
 
 
 
 
 
295,553 
300,172 
275,124 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
 
 
 
 
 
 
 
 
138,584 
119,092 
115,126 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
 
10,742 
11,419 
18,415 
Other
 
 
 
 
 
 
 
 
70,211 
79,116 
70,505 
Intersegment expenses, net
 
 
 
 
 
 
 
 
4,208 
4,359 
5,280 
Total operating expenses
 
 
 
 
 
 
 
 
223,745 
213,986 
209,326 
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
71,838 
86,226 
65,851 
Corporate overhead allocation
 
 
 
 
 
 
 
 
(9,029)
(6,150)
(5,904)
Income before income taxes
 
 
 
 
 
 
 
 
62,809 
80,076 
59,947 
Income tax expense
 
 
 
 
 
 
 
 
(23,867)
(30,430)
(22,780)
Net income
 
 
 
 
 
 
 
 
38,942 
49,646 
37,167 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
38,942 
49,646 
37,167 
Total assets
84,495 
 
 
 
84,986 
 
 
 
84,495 
84,986 
90,959 
Tuition Payment Processing and Campus Commerce [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
Net interest income
 
 
 
 
 
 
 
 
Less provision for loan losses
 
 
 
 
 
 
 
 
Net interest income after provision for loan losses
 
 
 
 
 
 
 
 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing revenue
 
 
 
 
 
 
 
 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
Tuition payment processing, school information, and campus commerce revenue
 
 
 
 
 
 
 
 
98,156 
80,682 
74,410 
Enrollment services revenue
 
 
 
 
 
 
 
 
Other income
 
 
 
 
 
 
 
 
1,268 
Gain on sale of loans and debt repurchases, net
 
 
 
 
 
 
 
 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
Derivative settlements, net
 
 
 
 
 
 
 
 
Total other income
 
 
 
 
 
 
 
 
99,424 
80,682 
74,410 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
 
 
 
 
 
 
 
 
48,453 
37,575 
34,314 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
 
8,169 
4,518 
7,240 
Other
 
 
 
 
 
 
 
 
13,006 
9,147 
10,439 
Intersegment expenses, net
 
 
 
 
 
 
 
 
5,864 
5,989 
5,383 
Total operating expenses
 
 
 
 
 
 
 
 
75,492 
57,229 
57,376 
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
23,938 
23,453 
17,042 
Corporate overhead allocation
 
 
 
 
 
 
 
 
(3,010)
(1,957)
(1,968)
Income before income taxes
 
 
 
 
 
 
 
 
20,928 
21,496 
15,074 
Income tax expense
 
 
 
 
 
 
 
 
(7,952)
(8,168)
(5,728)
Net income
 
 
 
 
 
 
 
 
12,976 
13,328 
9,346 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
12,976 
13,328 
9,346 
Total assets
231,991 
 
 
 
219,064 
 
 
 
231,991 
219,064 
150,600 
Asset Generation and Management [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
703,382 
638,604 
610,194 
Interest expense
 
 
 
 
 
 
 
 
269,742 
229,533 
263,788 
Net interest income
 
 
 
 
 
 
 
 
433,640 
409,071 
346,406 
Less provision for loan losses
 
 
 
 
 
 
 
 
9,500 
18,500 
21,500 
Net interest income after provision for loan losses
 
 
 
 
 
 
 
 
424,140 
390,571 
324,906 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing revenue
 
 
 
 
 
 
 
 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
Tuition payment processing, school information, and campus commerce revenue
 
 
 
 
 
 
 
 
Enrollment services revenue
 
 
 
 
 
 
 
 
Other income
 
 
 
 
 
 
 
 
21,532 
15,223 
18,219 
Gain on sale of loans and debt repurchases, net
 
 
 
 
 
 
 
 
(1,357)
11,004 
3,814 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
42,935 
35,256 
(51,809)
Derivative settlements, net
 
 
 
 
 
 
 
 
(20,818)
(27,966)
(11,792)
Total other income
 
 
 
 
 
 
 
 
42,292 
33,517 
(41,568)
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
 
 
 
 
 
 
 
 
2,316 
2,292 
2,252 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
33,611 
30,945 
16,435 
Intersegment expenses, net
 
 
 
 
 
 
 
 
55,808 
57,572 
66,215 
Total operating expenses
 
 
 
 
 
 
 
 
91,735 
90,809 
84,902 
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
374,697 
333,279 
198,436 
Corporate overhead allocation
 
 
 
 
 
 
 
 
(5,017)
(3,896)
(5,306)
Income before income taxes
 
 
 
 
 
 
 
 
369,680 
329,383 
193,130 
Income tax expense
 
 
 
 
 
 
 
 
(140,477)
(125,165)
(73,387)
Net income
 
 
 
 
 
 
 
 
229,203 
204,218 
119,743 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
229,203 
204,218 
119,743 
Total assets
29,505,439 
 
 
 
27,387,461 
 
 
 
29,505,439 
27,387,461 
26,463,551 
Corporate and Other Activities [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
8,618 
9,433 
7,305 
Interest expense
 
 
 
 
 
 
 
 
5,731 
4,669 
8,485 
Net interest income
 
 
 
 
 
 
 
 
2,887 
4,764 
(1,180)
Less provision for loan losses
 
 
 
 
 
 
 
 
Net interest income after provision for loan losses
 
 
 
 
 
 
 
 
2,887 
4,764 
(1,180)
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing revenue
 
 
 
 
 
 
 
 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
Tuition payment processing, school information, and campus commerce revenue
 
 
 
 
 
 
 
 
Enrollment services revenue
 
 
 
 
 
 
 
 
82,883 
98,078 
117,925 
Other income
 
 
 
 
 
 
 
 
31,202 
32,218 
21,257 
Gain on sale of loans and debt repurchases, net
 
 
 
 
 
 
 
 
5,008 
695 
325 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
(5,232)
13,337 
4,415 
Derivative settlements, net
 
 
 
 
 
 
 
 
(1,025)
(1,670)
(2,230)
Total other income
 
 
 
 
 
 
 
 
112,836 
142,658 
141,692 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
 
 
 
 
 
 
 
 
38,726 
37,210 
41,134 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
53,307 
64,961 
78,375 
Depreciation and amortization
 
 
 
 
 
 
 
 
2,223 
2,374 
7,970 
Other
 
 
 
 
 
 
 
 
33,162 
31,477 
31,359 
Intersegment expenses, net
 
 
 
 
 
 
 
 
(10,741)
(11,176)
(11,502)
Total operating expenses
 
 
 
 
 
 
 
 
116,677 
124,846 
147,336 
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
(954)
22,576 
(6,824)
Corporate overhead allocation
 
 
 
 
 
 
 
 
17,056 
12,003 
13,178 
Income before income taxes
 
 
 
 
 
 
 
 
16,102 
34,579 
6,354 
Income tax expense
 
 
 
 
 
 
 
 
12,058 
2,570 
5,818 
Net income
 
 
 
 
 
 
 
 
28,160 
37,149 
12,172 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
1,671 
1,669 
431 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
26,489 
35,480 
11,741 
Total assets
497,147 
 
 
 
425,959 
 
 
 
497,147 
425,959 
260,905 
Eliminations [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total interest income
 
 
 
 
 
 
 
 
(2,236)
(3,267)
(3,707)
Interest expense
 
 
 
 
 
 
 
 
(2,236)
(3,267)
(3,707)
Net interest income
 
 
 
 
 
 
 
 
Less provision for loan losses
 
 
 
 
 
 
 
 
Net interest income after provision for loan losses
 
 
 
 
 
 
 
 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing revenue
 
 
 
 
 
 
 
 
Intersegment servicing revenue
 
 
 
 
 
 
 
 
(55,139)
(56,744)
(65,376)
Tuition payment processing, school information, and campus commerce revenue
 
 
 
 
 
 
 
 
Enrollment services revenue
 
 
 
 
 
 
 
 
Other income
 
 
 
 
 
 
 
 
(1,143)
Gain on sale of loans and debt repurchases, net
 
 
 
 
 
 
 
 
Derivative market value and foreign currency adjustments, net
 
 
 
 
 
 
 
 
Derivative settlements, net
 
 
 
 
 
 
 
 
Total other income
 
 
 
 
 
 
 
 
(55,139)
(57,887)
(65,376)
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
 
 
 
 
 
 
 
 
Cost to provide enrollment services
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
(1,143)
Intersegment expenses, net
 
 
 
 
 
 
 
 
(55,139)
(56,744)
(65,376)
Total operating expenses
 
 
 
 
 
 
 
 
(55,139)
(57,887)
(65,376)
Income (loss) before income taxes and corporate overhead allocation
 
 
 
 
 
 
 
 
Corporate overhead allocation
 
 
 
 
 
 
 
 
Income before income taxes
 
 
 
 
 
 
 
 
Income tax expense
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
Total assets
$ (220,929)
 
 
 
$ (346,621)
 
 
 
$ (220,929)
$ (346,621)
$ (358,120)
Major Customer Major Customer (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Concentration Risk [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing revenue
$ 56,538 
$ 52,659 
$ 66,460 
$ 64,757 
$ 63,167 
$ 64,582 
$ 60,078 
$ 55,601 
$ 240,414 
$ 243,428 
$ 209,748 
Concentration Risk Dollar Value [Member]
 
 
 
 
 
 
 
 
 
 
 
Concentration Risk [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Loan and guaranty servicing revenue
 
 
 
 
 
 
 
 
$ 124,400 
$ 97,400 
$ 69,500 
Legal Proceedings (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Than Zaw v. Nelnet, Inc. [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency, Damages Sought, Value
$ 5,000 
Loss Contingency, Settlement Agreement, Terms
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 was finalized and received court approval on November 13, 2014. 
Bais Yaakov of Spring Valley v. Peterson's Nelnet, LLC [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency, Damages Sought, Value
500 
Loss Contingency, Range of Possible Loss, Minimum
5,000,000 
Loss Contingency, Range of Possible Loss, Maximum
15,000,000 
Loss Contingency, Settlement Agreement, Terms
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 was finalized and received court approval on January 26, 2015. 
Pending Litigation [Member] |
Grant Keating v. Peterson's Nelnet, LLC et al [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency, Damages Sought, Value
$ 500 
Operating Leases Minimum Future Rentals (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2011
Operating Leased Assets [Line Items]
 
 
 
Operating Leases, Rent Expense, Net
$ 8,800,000 
$ 8,100,000 
$ 8,100,000 
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
 
 
 
Operating Leases, Future Minimum Payments Due, Next Twelve Months
4,468,000 
 
 
Operating Leases, Future Minimum Payments, Due in Two Years
4,106,000 
 
 
Operating Leases, Future Minimum Payments, Due in Three Years
3,127,000 
 
 
Operating Leases, Future Minimum Payments, Due in Four Years
2,669,000 
 
 
Operating Leases, Future Minimum Payments, Due in Five Years
2,404,000 
 
 
Operating Leases, Future Minimum Payments, Due Thereafter
6,273,000 
 
 
Operating Leases, Future Minimum Payments Due
$ 23,047,000 
 
 
Defined Contribution Benefit Plan Defined Contribution Benefit Plan (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Defined Contribution Benefit Plan [Line Items]
 
 
 
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent
100.00% 
 
 
Defined Contribution Plan, Cost Recognized
$ 4.2 
$ 3.8 
$ 3.6 
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, 2014
Dec. 31, 2013
Dec. 31, 2012
Restricted Stock Activity
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price
15.00% 
 
 
Restricted Stock Plan [Member]
 
 
 
Restricted Stock Activity
 
 
 
Employee Share-based Compensation Expense
$ 8,998,000 
 
 
Allocated Share-based Compensation Expense
4,600,000 
3,100,000 
2,200,000 
Non-vested Shares at Beginning of Year
407,051 
378,671 
285,718 
Granted
189,716 
131,933 
168,833 
Vested
(77,219)
(62,491)
(41,089)
Canceled
(20,085)
(41,062)
(34,791)
Non-vested Shares at End of Year
499,463 
407,051 
378,671 
Employee Share Purchase Plan [Member]
 
 
 
Restricted Stock Activity
 
 
 
Allocated Share-based Compensation Expense
131,000 
148,000 
114,000 
Employee Share-based Compensation, Shares Issued
18,140 
18,004 
21,766 
Year one [Member] |
Restricted Stock Plan [Member]
 
 
 
Restricted Stock Activity
 
 
 
Employee Share-based Compensation Expense
3,694,000 
 
 
Year two [Member] |
Restricted Stock Plan [Member]
 
 
 
Restricted Stock Activity
 
 
 
Employee Share-based Compensation Expense
2,174,000 
 
 
Year three [Member] |
Restricted Stock Plan [Member]
 
 
 
Restricted Stock Activity
 
 
 
Employee Share-based Compensation Expense
1,261,000 
 
 
Year four [Member] |
Restricted Stock Plan [Member]
 
 
 
Restricted Stock Activity
 
 
 
Employee Share-based Compensation Expense
736,000 
 
 
Year five [Member] |
Restricted Stock Plan [Member]
 
 
 
Restricted Stock Activity
 
 
 
Employee Share-based Compensation Expense
439,000 
 
 
Year six and thereafter [Member] |
Restricted Stock Plan [Member]
 
 
 
Restricted Stock Activity
 
 
 
Employee Share-based Compensation Expense
$ 694,000 
 
 
Stock Based Compensation Plan Non-employee Directors Compensation Plan (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Share-based Goods and Nonemployee Services Transaction [Line Items]
 
 
 
Share-based Goods and Nonemployee Services Transaction, Securities Issued
18,242 
15,435 
33,261 
Non-employee Director Stock at Lower Cost
85.00% 
 
 
Share-based Goods and Nonemployee Services Transaction, Expense
$ 777,000 
$ 673,000 
$ 688,000 
Shares Issued - Deferred [Member]
 
 
 
Share-based Goods and Nonemployee Services Transaction [Line Items]
 
 
 
Share-based Goods and Nonemployee Services Transaction, Securities Issued
10,175 
5,279 
16,700 
Non Employee Director Stock, Cumulative Deferred Shares
136,495 
 
 
Shares Issued - Not Deferred [Member]
 
 
 
Share-based Goods and Nonemployee Services Transaction [Line Items]
 
 
 
Share-based Goods and Nonemployee Services Transaction, Securities Issued
8,067 
10,156 
16,561 
Related Party Transactions Transactions with Union Financial Services, Inc. (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2014
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, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Receivables due from Union Bank and Trust
 
 
 
 
 
 
 
 
$ 1,700,000 
$ 3,300,000 
 
Loan Servicing [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Student loans receivable, net
28,005,195,000 
 
 
 
25,907,589,000 
 
 
 
28,005,195,000 
25,907,589,000 
 
Loan and guaranty servicing revenue
56,538,000 
52,659,000 
66,460,000 
64,757,000 
63,167,000 
64,582,000 
60,078,000 
55,601,000 
240,414,000 
243,428,000 
209,748,000 
Accounts Receivable, Net
50,552,000 
 
 
 
56,072,000 
 
 
 
50,552,000 
56,072,000 
 
Operating Cash Accounts [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents related party
92,700,000 
 
 
 
54,730,000 
 
 
 
92,700,000 
54,730,000 
 
Restricted cash - due to customers
118,488,000 
 
 
 
167,576,000 
 
 
 
118,488,000 
167,576,000 
 
Interest and Dividend Income, Operating
 
 
 
 
 
 
 
 
709,800,000 
644,810,000 
613,853,000 
Union Bank and Trust Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Loan Purchases and Sales [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Financing Receivable, Significant Purchases
 
 
 
 
 
 
 
 
200,000 
478,400,000 
300,000 
Financing Receivable, Significant Sales
 
 
 
 
 
 
 
 
16,500,000 
 
 
Loan Servicing [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Student loans receivable, net
581,400,000 
 
 
 
598,900,000 
 
 
 
581,400,000 
598,900,000 
445,800,000 
Loan and guaranty servicing revenue
 
 
 
 
 
 
 
 
400,000 
1,300,000 
1,700,000 
Accounts Receivable, Net
36,000 
 
 
 
40,000 
 
 
 
36,000 
40,000 
 
Funding, Participation Agreement [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Amount of Participation, FFELP Student Loans
543,000,000 
 
 
 
342,500,000 
 
 
 
543,000,000 
342,500,000 
 
Maximum Participation to Union Bank FFELP Loans
 
 
 
 
 
 
 
 
750,000,000 
 
 
Subparticipation Agreement [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Amount of Participation
2,600,000.0 
 
 
 
 
 
 
 
2,600,000.0 
 
 
Contractual Obligation
500,000 
 
 
 
 
 
 
 
500,000 
 
 
basis points earned on outstanding balance
40 
 
 
 
 
 
 
 
40 
 
 
Operating Cash Accounts [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents related party
107,600,000 
 
 
 
81,000,000 
 
 
 
107,600,000 
81,000,000 
 
Restricted cash - due to customers
14,900,000 
 
 
 
26,300,000 
 
 
 
14,900,000 
26,300,000 
 
Interest and Dividend Income, Operating
 
 
 
 
 
 
 
 
200,000 
100,000 
200,000 
Lease Arrangements [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Square Footage Leased to Union Bank and Trust Company
 
 
 
 
 
 
 
 
4,000 
 
 
Operating Leases, Income Statement, Lease Revenue
 
 
 
 
 
 
 
 
76,000 
72,000 
74,000 
Operating Leases, Rent Expense
 
 
 
 
 
 
 
 
71,000 
159,000 
43,000 
Paid to Union Bank [Member]
 
 
 
 
 
 
 
 
 
 
 
Loan Purchases and Sales [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Other
 
 
 
11,400,000 
 
 
 
11,400,000 
Received from Union Bank [Member]
 
 
 
 
 
 
 
 
 
 
 
Loan Purchases and Sales [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Other
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
3,400,000 
2,800,000 
1,700,000 
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 
36,000 
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
 
 
 
 
 
 
 
 
57,000 
107,000 
92,000 
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
 
 
 
 
 
 
 
 
117,000 
140,000 
187,000 
Other services [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
 
 
 
 
 
 
 
 
311,000 
52,000 
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
 
 
 
 
 
 
 
 
178,000 
170,000 
152,000 
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
 
 
 
 
 
 
 
 
14,000 
18,000 
31,000 
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
 
 
 
 
 
 
 
 
450,000 
370,000 
305,000 
May 9, 2011 Union Bank and Whitetail Rock Capital Management agreement [Member]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Management Fees Revenue
 
 
 
 
 
 
 
 
13,400,000 
12,900,000 
8,400,000 
Amount invested in funds
536,000,000 
 
 
 
 
 
 
 
536,000,000 
 
 
Subparticipation Agreement [Abstract]
 
 
 
 
 
 
 
 
 
 
 
basis points earned on outstanding balance
25 
 
 
 
 
 
 
 
25 
 
 
January 20, 2012 Union Bank and Whitetail Rock Capital Management agreement [Member]
 
 
 
 
 
 
 
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Management Fees Revenue
 
 
 
 
 
 
 
 
$ 66,000 
$ 61,000 
$ 44,000 
Related Party Transactions Investment Services (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Related Party Transaction [Line Items]
 
 
 
Receivables due from Union Bank and Trust
$ 1,700,000 
$ 3,300,000 
 
Union Bank and Trust Company [Member]
 
 
 
Related Party Transaction [Line Items]
 
 
 
Basis points Whitetail Rock Capital Management earns from Union Bank on outstanding balance
40 
 
 
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
536,000,000 
 
 
Percent of basis points earned on outstanding balance paid to custodian
50.00% 
 
 
Fee revenue related to investment services
13,400,000 
12,900,000 
8,400,000 
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
66,000 
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, SLABS Fund-III, SLABS Fund-IV, and SLABS Fund-V [Member]
 
 
 
Related Party Transaction [Line Items]
 
 
 
Amount invested in funds under Whitetail Rock Capital Management management agreement
144,900,000 
 
 
Fees paid to Union Bank as custodian
$ 300,000 
$ 300,000 
$ 100,000 
Assets and Liabilities that are Measured at Fair Value (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Assets [Abstract]
 
 
Investments
$ 149,123 1
$ 192,040 1
Fair value of derivative instruments
64,392 2
62,507 2
Total assets
213,515 
254,547 
Liabilities [Abstract]
 
 
Fair value of derivative instruments
32,842 2
17,969 2
Total liabilities
32,842 
17,969 
Student loan asset-backed securities [Member]
 
 
Assets [Abstract]
 
 
Investments
145,000 1
188,279 1
Equity securities [Member]
 
 
Assets [Abstract]
 
 
Investments
3,736 1
3,282 1
Debt securities [Member]
 
 
Assets [Abstract]
 
 
Investments
387 1
479 1
Level 1 [Member]
 
 
Assets [Abstract]
 
 
Investments
4,123 1
3,761 1
Fair value of derivative instruments
2
2
Total assets
4,123 
3,761 
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
3,736 1
3,282 1
Level 1 [Member] |
Debt securities [Member]
 
 
Assets [Abstract]
 
 
Investments
387 1
479 1
Level 2 [Member]
 
 
Assets [Abstract]
 
 
Investments
145,000 1
188,279 1
Fair value of derivative instruments
64,392 2
62,507 2
Total assets
209,392 
250,786 
Liabilities [Abstract]
 
 
Fair value of derivative instruments
32,842 2
17,969 2
Total liabilities
32,842 
17,969 
Level 2 [Member] |
Student loan asset-backed securities [Member]
 
 
Assets [Abstract]
 
 
Investments
145,000 1
188,279 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, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Financial Assets [Abstract]
 
 
 
 
Student loans receivable, net
$ 28,005,195 
$ 25,907,589 
 
 
Cash and cash equivalents
130,481 
63,267 
66,031 
42,570 
Investments
149,123 
192,040 
 
 
Restricted cash - due to customers
118,488 
167,576 
 
 
Accrued interest receivable
351,588 
314,553 
 
 
Derivative instruments
64,392 
62,507 
 
 
Financial Liabilities [Abstract]
 
 
 
 
Bonds and notes payable
28,027,350 
25,955,289 
 
 
Accrued interest payable
25,904 
21,725 
 
 
Due to customers
118,488 
167,576 
 
 
Derivative instruments
32,842 
17,969 
 
 
Fair value [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Student loans receivable, net
28,954,266 
26,641,383 
 
 
Cash and cash equivalents
130,481 
63,267 
 
 
Investments
149,123 
192,040 
 
 
Restricted cash
800,164 
727,838 
 
 
Restricted cash - due to customers
118,488 
167,576 
 
 
Restricted investments
50,276 
7,285 
 
 
Accrued interest receivable
351,588 
314,553 
 
 
Derivative instruments
64,392 
62,507 
 
 
Financial Liabilities [Abstract]
 
 
 
 
Bonds and notes payable
27,809,997 
25,577,250 
 
 
Accrued interest payable
25,904 
21,725 
 
 
Due to customers
118,488 
167,576 
 
 
Derivative instruments
32,842 
17,969 
 
 
Fair value [Member] |
Level 1 [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Student loans receivable, net
 
 
Cash and cash equivalents
130,481 
63,267 
 
 
Investments
4,123 
3,761 
 
 
Restricted cash
800,164 
727,838 
 
 
Restricted cash - due to customers
118,488 
167,576 
 
 
Restricted investments
50,276 
7,285 
 
 
Accrued interest receivable
 
 
Derivative instruments
 
 
Financial Liabilities [Abstract]
 
 
 
 
Bonds and notes payable
 
 
Accrued interest payable
 
 
Due to customers
118,488 
167,576 
 
 
Derivative instruments
 
 
Fair value [Member] |
Level 2 [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Student loans receivable, net
 
 
Cash and cash equivalents
 
 
Investments
145,000 
188,279 
 
 
Restricted cash
 
 
Restricted cash - due to customers
 
 
Restricted investments
 
 
Accrued interest receivable
351,588 
314,553 
 
 
Derivative instruments
64,392 
62,507 
 
 
Financial Liabilities [Abstract]
 
 
 
 
Bonds and notes payable
27,809,997 
25,577,250 
 
 
Accrued interest payable
25,904 
21,725 
 
 
Due to customers
 
 
Derivative instruments
32,842 
17,969 
 
 
Fair value [Member] |
Level 3 [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Student loans receivable, net
28,954,266 
26,641,383 
 
 
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
 
 
Carrying value [Member]
 
 
 
 
Financial Assets [Abstract]
 
 
 
 
Student loans receivable, net
28,005,195 
25,907,589 
 
 
Cash and cash equivalents
130,481 
63,267 
 
 
Investments
149,123 
192,040 
 
 
Restricted cash
800,164 
727,838 
 
 
Restricted cash - due to customers
118,488 
167,576 
 
 
Restricted investments
50,276 
7,285 
 
 
Accrued interest receivable
351,588 
314,553 
 
 
Derivative instruments
64,392 
62,507 
 
 
Financial Liabilities [Abstract]
 
 
 
 
Bonds and notes payable
28,027,350 
25,955,289 
 
 
Accrued interest payable
25,904 
21,725 
 
 
Due to customers
118,488 
167,576 
 
 
Derivative instruments
$ 32,842 
$ 17,969 
 
 
Fair Value Fair Value Transfers (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
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, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net interest income
$ 112,492 
$ 117,487 
$ 107,713 
$ 98,871 
$ 108,736 
$ 104,922 
$ 101,419 
$ 98,798 
$ 436,563 
$ 413,875 
$ 345,287 
Provision for loan losses
3,500 
2,000 
1,500 
2,500 
3,500 
5,000 
5,000 
5,000 
9,500 
18,500 
21,500 
Net interest income after provision for loan losses
108,992 
115,487 
106,213 
96,371 
105,236 
99,922 
96,419 
93,798 
427,063 
395,375 
323,787 
Loan and guaranty servicing revenue
56,538 
52,659 
66,460 
64,757 
63,167 
64,582 
60,078 
55,601 
240,414 
243,428 
209,748 
Tuition payment processing, school information, and campus commerce revenue
24,688 
26,399 
21,834 
25,235 
18,988 
19,927 
18,356 
23,411 
98,156 
80,682 
74,410 
Enrollment services revenue
17,791 
22,936 
20,145 
22,011 
21,735 
22,563 
24,823 
28,957 
82,883 
98,078 
117,925 
Other income
12,906 
7,650 
15,315 
18,131 
15,981 
8,613 
12,288 
9,416 
54,002 
46,298 
39,476 
Gain on sale of loans and debt repurchases, net
3,594 
18 
39 
799 
2,138 
7,355 
1,407 
3,651 
11,699 
4,139 
Derivative market value and foreign currency adjustments and derivative settlements, net
(5,648)
24,203 
1,570 
(4,265)
(5,655)
(16,648)
40,188 
1,072 
15,860 
18,957 
(61,416)
Salaries and benefits
(60,609)
(61,098)
(53,888)
(52,484)
(52,120)
(48,712)
(47,432)
(47,905)
(228,079)
(196,169)
(192,826)
Cost to provide enrollment services
(11,343)
(14,178)
(13,311)
(14,475)
(13,864)
(14,668)
(16,787)
(19,642)
 
 
 
Depreciation and amortization
(5,644)
(5,493)
(5,214)
(4,783)
(5,274)
(4,340)
(4,320)
(4,377)
(21,134)
(18,311)
(33,625)
Operating expenses - other
(37,310)
(36,676)
(40,377)
(35,627)
(40,349)
(39,887)
(34,365)
(34,941)
(149,990)
(149,542)
(128,738)
Income tax expense
(30,036)
(46,513)
(43,078)
(40,611)
(37,556)
(30,444)
(54,746)
(38,447)
(160,238)
(161,193)
(96,077)
Net income
73,919 
85,376 
75,687 
74,299 
71,088 
63,046 
101,857 
68,350 
309,281 
304,341 
178,428 
Net income attributable to noncontrolling interest
308 
157 
693 
513 
568 
216 
614 
271 
1,671 
1,669 
431 
Net income attributable to Nelnet, Inc.
$ 73,611 
$ 85,219 
$ 74,994 
$ 73,786 
$ 70,520 
$ 62,830 
$ 101,243 
$ 68,079 
$ 307,610 
$ 302,672 
$ 177,997 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$ 1.59 
$ 1.84 
$ 1.61 
$ 1.59 
$ 1.52 
$ 1.35 
$ 2.17 
$ 1.46 
$ 6.62 
$ 6.50 
$ 3.76 
Condensed Parent Only Financial Statements Condensed Parent Only Balance Sheets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Assets:
 
 
 
 
Cash and cash equivalents
$ 130,481 
$ 63,267 
$ 66,031 
$ 42,570 
Investments
149,123 
192,040 
 
 
Restricted cash
850,440 
735,123 
 
 
Other assets
163,208 
115,043 
 
 
Fair value of derivative instruments
64,392 
62,507 
 
 
Total assets
30,098,143 
27,770,849 
26,607,895 
 
Liabilities:
 
 
 
 
Notes payable
28,027,350 
25,955,289 
 
 
Other liabilities
167,881 
164,300 
 
 
Fair value of derivative instruments
32,842 
17,969 
 
 
Total liabilities
28,372,465 
26,326,859 
 
 
Nelnet, Inc. shareholders' equity:
 
 
 
 
Additional paid-in capital
17,290 
24,887 
 
 
Retained earnings
1,702,560 
1,413,492 
 
 
Accumulated other comprehensive earnings
5,135 
4,819 
 
 
Total Nelnet, Inc. shareholders' equity
1,725,448 
1,443,662 
 
 
Noncontrolling interest
230 
328 
 
 
Total equity
1,725,678 
1,443,990 
1,165,213 
1,066,205 
Liabilities and Equity [Abstract]
 
 
 
 
Total liabilities and equity
30,098,143 
27,770,849 
 
 
Parent Company [Member]
 
 
 
 
Assets:
 
 
 
 
Cash and cash equivalents
30,712 
24,032 
12,124 
15,598 
Investments
136,432 
175,887 
 
 
Investment in subsidiary debt
122,057 
233,095 
 
 
Restricted cash
127 
3,763 
 
 
Investment in subsidiaries
1,300,032 
957,676 
 
 
Other assets
283,831 
272,910 
 
 
Fair value of derivative instruments
64,392 
25,673 
 
 
Total assets
1,937,583 
1,693,036 
 
 
Liabilities:
 
 
 
 
Notes payable
149,265 
191,457 
 
 
Other liabilities
50,253 
39,620 
 
 
Fair value of derivative instruments
12,387 
17,969 
 
 
Total liabilities
211,905 
249,046 
 
 
Nelnet, Inc. shareholders' equity:
 
 
 
 
Common stock
463 
464 
 
 
Additional paid-in capital
17,290 
24,887 
 
 
Retained earnings
1,702,560 
1,413,492 
 
 
Accumulated other comprehensive earnings
5,135 
4,819 
 
 
Total Nelnet, Inc. shareholders' equity
1,725,448 
1,443,662 
 
 
Noncontrolling interest
230 
328 
 
 
Total equity
1,725,678 
1,443,990 
 
 
Liabilities and Equity [Abstract]
 
 
 
 
Total liabilities and equity
$ 1,937,583 
$ 1,693,036 
 
 
Condensed Parent Only Financial Statements Condensed Parent Only Statements of Income (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Investment interest
 
 
 
 
 
 
 
 
$ 6,793 
$ 6,668 
$ 4,616 
Interest on bonds and notes payable
 
 
 
 
 
 
 
 
273,237 
230,935 
268,566 
Net interest income
112,492 
117,487 
107,713 
98,871 
108,736 
104,922 
101,419 
98,798 
436,563 
413,875 
345,287 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Other income
12,906 
7,650 
15,315 
18,131 
15,981 
8,613 
12,288 
9,416 
54,002 
46,298 
39,476 
Gain from debt repurchases
3,594 
18 
39 
799 
2,138 
7,355 
1,407 
3,651 
11,699 
4,139 
Derivative market value adjustments and derivative settlements, net
(5,648)
24,203 
1,570 
(4,265)
(5,655)
(16,648)
40,188 
1,072 
15,860 
18,957 
(61,416)
Total other income
 
 
 
 
 
 
 
 
494,966 
499,142 
384,282 
Operating expenses
 
 
 
 
 
 
 
 
452,510 
428,983 
433,564 
Income before income taxes
 
 
 
 
 
 
 
 
469,519 
465,534 
274,505 
Income tax expense
(30,036)
(46,513)
(43,078)
(40,611)
(37,556)
(30,444)
(54,746)
(38,447)
(160,238)
(161,193)
(96,077)
Net income
73,919 
85,376 
75,687 
74,299 
71,088 
63,046 
101,857 
68,350 
309,281 
304,341 
178,428 
Net income attributable to noncontrolling interest
308 
157 
693 
513 
568 
216 
614 
271 
1,671 
1,669 
431 
Net income attributable to Nelnet, Inc.
73,611 
85,219 
74,994 
73,786 
70,520 
62,830 
101,243 
68,079 
307,610 
302,672 
177,997 
Parent Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Investment interest
 
 
 
 
 
 
 
 
6,863 
7,911 
5,186 
Interest on bonds and notes payable
 
 
 
 
 
 
 
 
5,492 
4,433 
3,607 
Net interest income
 
 
 
 
 
 
 
 
1,371 
3,478 
1,579 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Other income
 
 
 
 
 
 
 
 
8,943 
7,112 
8,010 
Gain from debt repurchases
 
 
 
 
 
 
 
 
6,685 
11,905 
4,487 
Equity in subsidiaries income
 
 
 
 
 
 
 
 
316,934 
275,989 
224,011 
Derivative market value adjustments and derivative settlements, net
 
 
 
 
 
 
 
 
14,963 
28,134 
(47,262)
Total other income
 
 
 
 
 
 
 
 
347,525 
323,140 
189,246 
Operating expenses
 
 
 
 
 
 
 
 
5,598 
5,626 
1,867 
Income before income taxes
 
 
 
 
 
 
 
 
343,298 
320,992 
188,958 
Income tax expense
 
 
 
 
 
 
 
 
(34,017)
(16,651)
(10,530)
Net income
 
 
 
 
 
 
 
 
309,281 
304,341 
178,428 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
1,671 
1,669 
431 
Net income attributable to Nelnet, Inc.
 
 
 
 
 
 
 
 
$ 307,610 
$ 302,672 
$ 177,997 
Condensed Parent Only Financial Statements Parent Only Statement of Comprehensive Income (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net income
$ 73,919 
$ 85,376 
$ 75,687 
$ 74,299 
$ 71,088 
$ 63,046 
$ 101,857 
$ 68,350 
$ 309,281 
$ 304,341 
$ 178,428 
Unrealized holding gains arising during period, net
 
 
 
 
 
 
 
 
9,006 
9,134 
10,230 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax
 
 
 
 
 
 
 
 
(8,506)
(5,938)
(5,798)
Income tax effect
 
 
 
 
 
 
 
 
(184)
(1,190)
(1,619)
Total other comprehensive income
 
 
 
 
 
 
 
 
316 
2,006 
2,813 
Comprehensive income
 
 
 
 
 
 
 
 
309,597 
306,347 
181,241 
Net Income (Loss) Attributable to Noncontrolling Interest
308 
157 
693 
513 
568 
216 
614 
271 
1,671 
1,669 
431 
Comprehensive income attributable to Nelnet, Inc.
 
 
 
 
 
 
 
 
307,926 
304,678 
180,810 
Parent Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
309,281 
304,341 
178,428 
Unrealized holding gains arising during period, net
 
 
 
 
 
 
 
 
9,006 
9,134 
10,230 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax
 
 
 
 
 
 
 
 
(8,506)
(5,938)
(5,798)
Income tax effect
 
 
 
 
 
 
 
 
(184)
(1,190)
(1,619)
Total other comprehensive income
 
 
 
 
 
 
 
 
316 
2,006 
2,813 
Comprehensive income
 
 
 
 
 
 
 
 
309,597 
306,347 
181,241 
Net Income (Loss) Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
1,671 
1,669 
431 
Comprehensive income attributable to Nelnet, Inc.
 
 
 
 
 
 
 
 
$ 307,926 
$ 304,678 
$ 180,810 
Condensed Parent Only Financial Statements Condensed Parent Only Statements of Cash Flows (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net income attributable to Nelnet, Inc.
$ 307,610 
$ 302,672 
$ 177,997 
Net income attributable to noncontrolling interest
1,671 
1,669 
431 
Net income
309,281 
304,341 
178,428 
Adjustments to reconcile net income to net cash (used by) provided by operating activities:
 
 
 
Depreciation and amortization
107,969 
79,484 
116,781 
Proceeds (payments) to terminate and/or amend derivative instruments, net
1,765 
65,890 
(6,005)
Payment for interest rate swap option
(9,087)
Gain from sale of available-for-sale securities, net
(8,506)
(5,938)
(5,798)
Decrease in other assets
2,372 
(4,783)
2,322 
Increase (decrease) in other liabilities
(20,529)
4,782 
16,044 
Net cash provided by operating activities
357,449 
387,180 
299,318 
Cash flows from investing activities
 
 
 
Decrease (increase) in restricted cash
(51,135)
147,743 
(201,140)
Purchases of available-for-sale securities
(192,998)
(219,894)
(190,250)
Net cash provided by (used in) investing activities
(109,508)
496,580 
(792,654)
Cash flows from financing activities:
 
 
 
Payments on notes payable
(3,632,741)
(5,153,057)
(4,444,099)
Proceeds from issuance of notes payable
3,502,316 
4,312,720 
5,066,950 
Payments of debt issuance costs
(14,934)
(13,697)
(18,197)
Dividends paid
(18,542)
(18,569)
(66,237)
Repurchases of common stock
(15,713)
(13,136)
(22,814)
Proceeds from issuance of common stock
656 
561 
480 
Payments received on employee stock notes receivable
1,140 
Issuance of noncontrolling interest
201 
Distribution to noncontrolling interest
(1,970)
(1,351)
(431)
Net cash used in financing activities
(180,727)
(886,524)
516,797 
Net increase (decrease) in cash and cash equivalents
67,214 
(2,764)
23,461 
Cash and cash equivalents, beginning of year
63,267 
66,031 
42,570 
Cash and cash equivalents, end of year
130,481 
63,267 
66,031 
Parent Company [Member]
 
 
 
Net income attributable to Nelnet, Inc.
307,610 
302,672 
177,997 
Net income attributable to noncontrolling interest
1,671 
1,669 
431 
Net income
309,281 
304,341 
178,428 
Adjustments to reconcile net income to net cash (used by) provided by operating activities:
 
 
 
Depreciation and amortization
303 
284 
249 
Derivative market value adjustment
(36,979)
(57,525)
30,041 
Proceeds (payments) to terminate and/or amend derivative instruments, net
1,765 
(6,469)
(6,005)
Payment for interest rate swap option
(9,087)
Equity in earnings of subsidiaries
(316,934)
(275,989)
(224,011)
Gain from sale of available-for-sale securities, net
(8,506)
(5,938)
(5,798)
Gain from debt repurchases
(6,685)
(11,905)
(4,487)
Other non-cash items
5,396 
3,835 
3,569 
Decrease in other assets
4,057 
209,896 
168,656 
Increase (decrease) in other liabilities
12,512 
16,205 
(38,971)
Net cash provided by operating activities
(44,877)
176,735 
101,671 
Cash flows from investing activities
 
 
 
Decrease (increase) in restricted cash
3,636 
59,495 
(29,082)
Purchases of available-for-sale securities
(192,315)
(217,415)
(186,727)
Proceeds from sales of available-for-sale securities
240,371 
116,337 
162,533 
Capital contributions to/from subsidiaries, net
(25,017)
Sales (purchases) of subsidiary debt, net
111,038 
(66,272)
(6,584)
Purchases of other investments, net
(14,769)
(11,758)
Net cash provided by (used in) investing activities
122,944 
(119,613)
(59,860)
Cash flows from financing activities:
 
 
 
Payments on notes payable
(63,084)
(147,080)
(109,748)
Proceeds from issuance of notes payable
27,577 
135,000 
153,380 
Payments of debt issuance costs
(512)
(644)
(1,111)
Dividends paid
(18,542)
(18,569)
(66,237)
Repurchases of common stock
(15,713)
(13,136)
(22,763)
Proceeds from issuance of common stock
656 
561 
480 
Payments received on employee stock notes receivable
1,140 
Issuance of noncontrolling interest
201 
Distribution to noncontrolling interest
(1,970)
(1,351)
(431)
Net cash used in financing activities
(71,387)
(45,214)
(45,285)
Net increase (decrease) in cash and cash equivalents
6,680 
11,908 
(3,474)
Cash and cash equivalents, beginning of year
24,032 
12,124 
15,598 
Cash and cash equivalents, end of year
$ 30,712 
$ 24,032 
$ 12,124