NELNET INC, 10-Q filed on 5/8/2014
Quarterly Report
Document and Entity Information Document (USD $)
3 Months Ended
Mar. 31, 2014
Apr. 30, 2014
Common Class A [Member]
Apr. 30, 2014
Common Class B [Member]
Document Information [Line Items]
 
 
 
Entity Registrant Name
NELNET INC 
 
 
Document Type
10-Q 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Common Stock, Shares Outstanding
 
35,018,015 
11,491,932 
Entity Public Float
$ 940,529,760.75 
 
 
Amendment Flag
false 
 
 
Entity Central Index Key
0001258602 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Accelerated Filer 
 
 
Entity Well-known Seasoned Issuer
No 
 
 
Document Period End Date
Mar. 31, 2014 
 
 
Document Fiscal Year Focus
2014 
 
 
Document Fiscal Period Focus
Q1 
 
 
Consolidated Balance Sheets (unaudited) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Assets:
 
 
Student loans receivable (net of allowance for loan losses)
$ 25,607,143 
$ 25,907,589 
Cash and cash equivalents:
 
 
Cash and cash equivalents - not held at a related party
18,374 
8,537 
Cash and cash equivalents - held at a related party
88,728 
54,730 
Total cash and cash equivalents
107,102 
63,267 
Investments
166,201 
192,040 
Restricted cash and investments
705,889 
735,123 
Restricted cash - due to customers
180,469 
167,576 
Accrued interest receivable
305,672 
314,553 
Accounts receivable (net of allowance for doubtful accounts)
62,423 
56,072 
Goodwill
117,118 
117,118 
Intangible assets, net
9,089 
6,132 
Property and equipment, net
33,302 
33,829 
Other assets
128,597 
115,043 
Fair value of derivative instruments
64,002 
62,507 
Total assets
27,487,007 
27,770,849 
Liabilities:
 
 
Bonds and notes payable
25,589,287 
25,955,289 
Accrued interest payable
22,338 
21,725 
Other liabilities
164,692 
164,300 
Due to customers
180,469 
167,576 
Fair value of derivative instruments
16,547 
17,969 
Total liabilities
25,973,333 
26,326,859 
Nelnet, Inc. shareholders' equity:
 
 
Preferred stock
0 
0 
Common stock:
 
 
Additional paid-in capital
27,138 
24,887 
Retained earnings
1,482,637 
1,413,492 
Accumulated other comprehensive earnings
2,679 
4,819 
Total Nelnet, Inc. shareholders' equity
1,512,919 
1,443,662 
Noncontrolling interest
755 
328 
Total equity
1,513,674 
1,443,990 
Commitments and contingencies
 
 
Total liabilities and equity
27,487,007 
27,770,849 
Common Class A [Member]
 
 
Common stock:
 
 
Common stock
350 
349 
Common Class B [Member]
 
 
Common stock:
 
 
Common stock
115 
115 
Variable Interest Entity, Primary Beneficiary [Member]
 
 
Assets:
 
 
Student loans receivable (net of allowance for loan losses)
25,716,871 
26,020,629 
Cash and cash equivalents:
 
 
Restricted cash and investments
704,370 
732,771 
Other assets
303,511 
313,748 
Fair value of derivative instruments
36,795 
36,834 
Liabilities:
 
 
Bonds and notes payable
25,909,892 
26,244,222 
Other liabilities
287,703 
303,142 
Commitments and contingencies
 
 
Net assets of consolidated variable interest entities
563,952 
556,618 
held for investment [Member]
 
 
Assets:
 
 
Student loans receivable (net of allowance for loan losses)
$ 25,607,143 
$ 25,907,589 
Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Allowance for loan losses
$ 54,628 
$ 55,122 
Allowance for doubtful accounts
$ 2,556 
$ 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
0 
0 
Preferred stock, outstanding shares
0 
0 
Common Class A [Member]
 
 
Par Value (in dollars per share)
$ 0.01 
$ 0.01 
Shares Authorized
600,000,000 
600,000,000 
Shares Issued
35,019,924 
34,881,338 
Shares Outstanding
35,019,924 
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
11,491,932 
11,495,377 
Shares Outstanding
11,491,932 
11,495,377 
Consolidated Statements of Income (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Interest income:
 
 
Loan interest
$ 156,896 
$ 155,539 
Investment interest
1,979 
1,617 
Total interest income
158,875 
157,156 
Interest expense:
 
 
Interest on bonds and notes payable
60,004 
58,358 
Net interest income
98,871 
98,798 
Less provision for loan losses
2,500 
5,000 
Net interest income after provision for loan losses
96,371 
93,798 
Other income (expense):
 
 
Loan and guaranty servicing revenue
64,757 
55,601 
Tuition payment processing and campus commerce revenue
25,235 
23,411 
Enrollment services revenue
22,011 
28,957 
Other income
18,131 
9,416 
Gain on sale of loans and debt repurchases
39 
1,407 
Derivative market value and foreign currency adjustments and derivative settlements, net
(4,265)
1,072 
Total other income (expense)
125,908 
119,864 
Operating expenses:
 
 
Salaries and benefits
52,484 
47,905 
Cost to provide enrollment services
14,475 
19,642 
Depreciation and amortization
4,783 
4,377 
Other
35,627 
34,941 
Total operating expenses
107,369 
106,865 
Income before income taxes
114,910 
106,797 
Income tax expense
(40,611)
(38,447)
Net income
74,299 
68,350 
Net income attributable to noncontrolling interest
513 
271 
Net income attributable to Nelnet, Inc.
73,786 
68,079 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$ 1.59 
$ 1.46 
Weighted average common shares outstanding - basic and diluted
46,527,917 
46,658,031 
Common shareholders [Member]
 
 
Operating expenses:
 
 
Net income attributable to Nelnet, Inc.
$ 73,125 
$ 67,517 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$ 1.59 
$ 1.46 
Weighted average common shares outstanding - basic and diluted
46,110,952 
46,272,324 
Consolidated Statements of Comprehensive Income (unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Net income
$ 74,299 
$ 68,350 
Available-for-sale securities:
 
 
Unrealized holding gains (losses) arising during period, net
3,675 
4,520 
Less reclassification adjustment for gains recognized in net income, net
(7,073)
(957)
Income tax effect
1,258 
(1,326)
Total other comprehensive loss
(2,140)
2,237 
Comprehensive income
72,159 
70,587 
Comprehensive income attributable to noncontrolling interest
513 
271 
Comprehensive income attributable to Nelnet, Inc.
$ 71,646 
$ 70,316 
Consolidated Statements of Shareholders' Equity (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Mar. 31, 2014
Preferred Stock [Member]
Dec. 31, 2013
Preferred Stock [Member]
Mar. 31, 2013
Preferred Stock [Member]
Dec. 31, 2012
Preferred Stock [Member]
Mar. 31, 2014
Common Class A [Member]
Mar. 31, 2013
Common Class A [Member]
Mar. 31, 2014
Common Class A [Member]
Mar. 31, 2013
Common Class A [Member]
Mar. 31, 2014
Common Class B [Member]
Mar. 31, 2013
Common Class B [Member]
Mar. 31, 2014
Common Class B [Member]
Mar. 31, 2013
Common Class B [Member]
Mar. 31, 2014
Additional paid-in capital [Member]
Mar. 31, 2013
Additional paid-in capital [Member]
Mar. 31, 2014
Additional paid-in capital [Member]
Mar. 31, 2013
Additional paid-in capital [Member]
Mar. 31, 2014
Retained earnings [Member]
Mar. 31, 2013
Retained earnings [Member]
Mar. 31, 2014
Retained earnings [Member]
Mar. 31, 2013
Retained earnings [Member]
Mar. 31, 2014
Accumulated other comprehensive earnings [Member]
Mar. 31, 2013
Accumulated other comprehensive earnings [Member]
Mar. 31, 2014
Accumulated other comprehensive earnings [Member]
Mar. 31, 2013
Accumulated other comprehensive earnings [Member]
Mar. 31, 2014
Noncontrolling interest [Member]
Mar. 31, 2013
Noncontrolling interest [Member]
Mar. 31, 2014
Noncontrolling interest [Member]
Mar. 31, 2013
Noncontrolling interest [Member]
Net income attributable to Nelnet, Inc.
$ 73,786 
$ 68,079 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 73,786 
$ 68,079 
 
 
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interest
513 
271 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(513)
271 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance (in Shares)
 
 
0 
0 
0 
0 
34,881,338 
35,116,913 
35,019,924 
35,029,341 
11,495,377 
11,495,377 
11,491,932 
11,495,377 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance
1,443,990 
1,165,213 
0 
0 
0 
0 
349 
351 
350 
350 
115 
115 
115 
115 
24,887 
32,540 
27,138 
27,786 
1,413,492 
1,129,389 
1,482,637 
1,192,822 
4,819 
2,813 
2,679 
5,050 
328 
5 
755 
281 
Net income
74,299 
68,350 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
(2,140)
2,237 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2,140)
2,237 
 
 
 
 
 
 
Distribution to noncontrolling interest
(287)
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
287 
 
 
 
Cash dividend on Class A and Class B common stock
(4,641)
(4,646)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(4,641)
(4,646)
 
 
 
 
 
 
 
 
 
 
Issuance of common stock, net of forfeitures
2,246 
1,273 
 
 
 
 
2 
1 
 
 
0 
0 
 
 
2,244 
1,272 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
 
 
 
 
155,705 
125,963 
 
 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense for stock based awards
875 
676 
 
 
 
 
 
 
 
 
 
 
 
 
875 
676 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchase of common stock
(869)
(6,704)
 
 
 
 
(1)
(2)
 
 
0 
0 
 
 
(868)
(6,702)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Conversion of Convertible Securities
 
 
 
 
 
 
(3,445)
 
 
 
(3,445)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchase of common stock (in Shares)
 
 
 
 
 
 
(20,564)
(213,535)
 
 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Increase from Sale of Parent Equity Interest
$ 201 
$ 5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 201 
$ 5 
 
 
Consolidated Statements of Shareholders' Equity (unaudited) (Parentheticals)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Common Class A [Member]
 
 
Dividends paid per common share
$ 0.10 
$ 0.10 
Common Class B [Member]
 
 
Dividends paid per common share
$ 0.10 
$ 0.10 
Consolidated Statements of Cash Flows (unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Net income attributable to Nelnet, Inc.
$ 73,786 
$ 68,079 
Net income attributable to noncontrolling interest
513 
271 
Net income
74,299 
68,350 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization, including debt discounts and student loan premiums and deferred origination costs
21,999 
20,079 
Student loan discount accretion
(10,023)
(9,075)
Provision for loan losses
2,500 
5,000 
Derivative market value adjustment
(2,916)
19,507 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
(39)
(34,844)
Foreign currency transaction adjustment
952 
(28,763)
Gain on sale of loans
0 
(33)
Gain from debt repurchases
(39)
(1,374)
Gain from sales of available-for-sale securities, net
(7,073)
(957)
Deferred income tax expense (benefit)
2,497 
4,874 
Purchases of trading investments
(731)
0 
Other
2,285 
(355)
Decrease in accrued interest receivable
8,881 
2,341 
Increase in accounts receivable
(5,758)
(9,601)
(Increase) decrease in other assets
1,303 
293 
Decrease in accrued interest payable
613 
1,091 
(Increase) decrease in other liabilities
(185)
13,614 
Net cash provided by operating activities
88,604 
84,991 
Cash flows from investing activities:
 
 
Purchases of student loans
(385,963)
(758,508)
Purchases Of Student Loans From Related Party
(137)
0 
Net proceeds from student loan repayments, claims, capitalized interest, participations, and other
686,908 
688,387 
Proceeds from sale of student loans
0 
11,284 
Purchases of available-for-sale securities
(69,930)
(86,776)
Proceeds from sales of available-for-sale securities
99,799 
13,405 
Purchases of other investments, net
(14,467)
0 
Purchases of property and equipment, net
(3,146)
(2,778)
Decrease (increase) in restricted cash
29,356 
695 
Business acquisition, net of cash acquired
(1,909)
0 
Net cash provided by investing activities
340,511 
(134,291)
Cash flows from financing activities:
 
 
Payments on bonds and notes payable
(1,347,517)
(2,244,266)
Proceeds from issuance of bonds and notes payable
972,384 
2,295,865 
Payments of debt issuance costs
(4,700)
(7,093)
Dividends paid
(4,641)
(4,646)
Repurchases of common stock
(869)
(6,704)
Proceeds from issuance of common stock
149 
174 
Issuance of noncontrolling interest
201 
5 
Distribution to noncontrolling interest
(287)
0 
Net cash used in financing activities
(385,280)
33,335 
Net increase in cash and cash equivalents
43,835 
(15,965)
Cash and cash equivalents, beginning of period
63,267 
66,031 
Cash and cash equivalents, end of period
107,102 
50,066 
Supplemental disclosures of cash flow information:
 
 
Interest paid
48,750 
48,696 
Income taxes paid, net of refunds
13,378 
5,489 
Retained Earnings [Member]
 
 
Net income attributable to Nelnet, Inc.
$ 73,786 
$ 68,079 
Basis of Financial Reporting
Basis of Financial Reporting
Basis of Financial Reporting

The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of March 31, 2014 and for the three months ended March 31, 2014 and 2013 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2013 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results for the year ending December 31, 2014. The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (the "2013 Annual Report").

Student Loans Receivable and Allowance for Loan Losses
Financing Receivables [Text Block]
Student Loans Receivable and Allowance for Loan Losses

Student loans receivable consisted of the following:
 
As of
 
As of
 
March 31, 2014
 
December 31, 2013
Federally insured loans
 
 
 
Stafford and other
$
6,606,814

 
6,686,626

Consolidation
19,138,841

 
19,363,577

Total
25,745,655

 
26,050,203

Non-federally insured loans
68,540

 
71,103

 
25,814,195

 
26,121,306

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(152,424
)
 
(158,595
)
Allowance for loan losses – federally insured loans
(42,909
)
 
(43,440
)
Allowance for loan losses – non-federally insured loans
(11,719
)
 
(11,682
)
 
$
25,607,143

 
25,907,589



(a)
For loans purchased where there is evidence of credit deterioration since the origination of the loan, the Company records a credit discount, separate from the allowance for loan losses, which is non-accretable to interest income. Remaining discounts and premiums for purchased loans are recognized in interest income over the remaining estimated lives of the loans. The Company continues to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine the need for any additional allowance for loan losses. At March 31, 2014 and December 31, 2013, "loan discount, net of unamortized loan premiums and deferred origination costs" included $20.0 million and $20.2 million, respectively, of non-accretable discount associated with purchased loans.

Activity in the Allowance for Loan Losses

The provision for loan losses represents the periodic expense of maintaining an allowance appropriate to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below.
 
Three months ended March 31,
 
2014
 
2013
Balance at beginning of period
$
55,122

 
51,902

Provision for loan losses:
 

 
 

Federally insured loans
3,000

 
6,000

Non-federally insured loans
(500
)
 
(1,000
)
Total provision for loan losses
2,500

 
5,000

Charge-offs:
 

 
 

Federally insured loans
(3,631
)
 
(5,990
)
Non-federally insured loans
(421
)
 
(772
)
Total charge-offs
(4,052
)
 
(6,762
)
Recoveries - non-federally insured loans
371

 
368

Purchase (sale) of federally insured loans, net
100

 
(2,218
)
Transfer from repurchase obligation related to non-federally insured loans repurchased, net
587

 
1,119

Balance at end of period
$
54,628

 
49,409

 
 
 
 
Allocation of the allowance for loan losses:
 

 
 

Federally insured loans
$
42,909

 
37,913

Non-federally insured loans
11,719

 
11,496

Total allowance for loan losses
$
54,628

 
49,409


Repurchase Obligations

As of March 31, 2014, the Company had participated a cumulative amount of $119.6 million (par value) of non-federally insured loans to third parties. Loans participated under these agreements have been accounted for by the Company as loan sales. Accordingly, the participation interests sold are not included in the Company’s consolidated balance sheets. Per the terms of the servicing agreements, the Company’s servicing operations are obligated to repurchase loans subject to the participation interests in the event such loans become 60 or 90 days delinquent.

In addition, in 2011, the Company sold a portfolio of non-federally insured loans for proceeds of $91.3 million (100% of par value).  The Company retained credit risk related to this portfolio and will pay cash to purchase back any loans which become 60 days delinquent. As of March 31, 2014, the balance of this portfolio was $61.1 million (par value).

The Company’s estimate related to its obligation to repurchase these loans is included in “other liabilities” in the Company’s consolidated balance sheets. The activity related to this accrual is detailed below.
 
Three months ended March 31,
 
2014
 
2013
Beginning balance
$
16,143

 
16,130

Loans repurchased
(730
)
 
(1,119
)
Ending balance
$
15,413

 
15,011


Student Loan Status and Delinquencies

Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.  The percent of non-federally insured loans that were delinquent 31 days or greater as of March 31, 2014, December 31, 2013, and March 31, 2013 was 12.8 percent, 12.7 percent, and 20.5 percent, respectively. The table below shows the Company’s federally insured student loan delinquency amounts.

Rehabilitation Loans and Delinquent Loans Funded in FFELP Warehouse Facilities

Rehabilitation loans are student loans that have previously defaulted, but for which the borrower has made a specified number of on-time payments.  Although rehabilitation loans benefit from the same guarantees as other federally insured student loans, rehabilitation loans have generally experienced re-default rates that are higher than default rates for federally insured student loans that have not previously defaulted.  The Company has purchased a significant amount of rehabilitation loans.  Upon purchase, these loans are recorded at fair value, which generally approximates the federal guarantee rate under the Federal Family Education Loan Program (the "FFEL Program" or "FFELP").  As such, there is minimal credit risk related to rehabilitation loans purchased; therefore, these loans are presented separately in the following delinquency tables.

In addition, the Company has purchased delinquent federally insured loans that are funded in the Company's FFELP warehouse facilities. Upon purchase, these loans are recorded at fair value, which generally approximates the federal guarantee rate. As such, there is minimal credit risk related to these loans. Loans delinquent 121 days or greater and funded in the Company's FFELP warehouse facilities are included with rehabilitation loans purchased in the following delinquency tables.

 
As of March 31, 2014
 
As of December 31, 2013
 
As of March 31, 2013
Federally insured loans, excluding rehabilitation loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
2,617,628

 
 
 
$
2,618,390

 
 
 
$
2,933,416

 
 
Loans in forbearance
2,797,432

 
 
 
2,954,495

 
 
 
2,890,574

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
15,293,299

 
87.2
%
 
15,251,869

 
86.1
%
 
14,501,802

 
87.8
%
Loans delinquent 31-60 days
669,238

 
3.8

 
768,600

 
4.3

 
621,296

 
3.8

Loans delinquent 61-90 days
407,779

 
2.3

 
426,089

 
2.5

 
409,209

 
2.5

Loans delinquent 91-120 days
252,413

 
1.4

 
281,991

 
1.6

 
241,113

 
1.5

Loans delinquent 121-270 days
640,214

 
3.7

 
712,204

 
4.0

 
512,875

 
3.1

Loans delinquent 271 days or greater
272,159

 
1.6

 
269,066

 
1.5

 
211,461

 
1.3

Total loans in repayment
17,535,102

 
100.0
%
 
17,709,819

 
100.0
%
 
16,497,756

 
100.0
%
Total federally insured loans, excluding rehabilitation loans
$
22,950,162

 
 

 
$
23,282,704

 
 

 
$
22,321,746

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rehabilitation loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
261,754

 
 
 
$
254,115

 
 
 
$
213,101

 
 
Loans in forbearance
416,206

 
 
 
415,530

 
 
 
394,733

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
1,205,261

 
56.9
%
 
1,086,053

 
51.8
%
 
877,800

 
42.4
%
Loans delinquent 31-60 days
163,143

 
7.7

 
198,718

 
9.5

 
138,249

 
6.7

Loans delinquent 61-90 days
114,920

 
5.4

 
124,244

 
5.9

 
109,129

 
5.3

Loans delinquent 91-120 days
91,730

 
4.3

 
108,800

 
5.2

 
121,468

 
5.9

Loans delinquent 121-270 days
344,434

 
16.3

 
405,732

 
19.3

 
573,054

 
27.7

Loans delinquent 271 days or greater
198,045

 
9.4

 
174,307

 
8.3

 
249,011

 
12.0

Total loans in repayment
2,117,533

 
100.0
%
 
2,097,854

 
100.0
%
 
2,068,711

 
100.0
%
Total rehabilitation loans
2,795,493

 
 
 
2,767,499

 
 
 
2,676,545

 
 
Total federally insured loans
$
25,745,655

 
 
 
$
26,050,203

 
 
 
$
24,998,291

 
 
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 March 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
$
23,780,072

 
0.24% - 6.90%
 
5/25/18 - 8/26/52
Bonds and notes based on auction or remarketing
1,132,900

 
0.07% - 2.18%
 
5/1/28 - 11/26/46
Total variable-rate bonds and notes
24,912,972

 
 
 
 
FFELP warehouse facilities
772,435

 
0.16% - 0.24%
 
1/17/16 - 9/30/16
Unsecured line of credit
—

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

 
3.61%
 
9/15/61
Other borrowings
61,374

 
1.65% - 5.10%
 
8/11/14 - 11/11/15
 
25,843,238

 
 
 
 
Discount on bonds and notes payable
(253,951
)
 
 
 
 
Total
$
25,589,287

 
 
 
 
 
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

 
 
 
 


FFELP Warehouse Facilities

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

As of March 31, 2014, the Company had three FFELP warehouse facilities as summarized below.
 
 
NHELP-III
 
NFSLW-I (a)
 
NHELP-II
 
Total
Maximum financing amount
 
$
750,000

 
500,000

 
500,000

 
1,750,000

Amount outstanding
 
377,995

 
276,915

 
117,525

 
772,435

Amount available
 
$
372,005

 
223,085

 
382,475

 
977,565

Expiration of liquidity provisions
 
February 5, 2015

 
June 12, 2014

 
September 30, 2014

 
 
Final maturity date
 
January 17, 2016

 
June 12, 2016

 
September 30, 2016

 
 
Maximum advance rates
 
92.2 - 95.0%

 
92.0 - 98.0%

 
84.5 - 94.5%

 
 
Minimum advance rates
 
92.2 - 95.0%

 
84.0 - 90.0%

 
84.5 - 94.5%

 
 
Advanced as equity support
 
$
22,912

 
16,847

 
11,745

 
51,504


(a) On April 15, 2014, the Company amended the agreement for this warehouse facility to temporarily increase the maximum financing amount to $1.0 billion, change the expiration date for the liquidity provisions to June 11, 2015, and change the maturity date to June 11, 2017. The maximum financing amount is scheduled to decrease $100.0 million a month beginning in June 2014 until it returns to $500.0 million in size.
Asset-backed Securitizations

The following table summarizes the asset-backed securitization transactions completed during the three months ended March 31, 2014.
 
 
2014-1
 
2014-2
 
Total
 
 
 
 
Class A-1 notes
 
Class A-2 notes
 
Class A-3 notes
 
2014-2 total
 
 
Date securities issued
 
2/6/14
 
3/12/14
 
3/12/14
 
3/12/14
 
3/12/14
 
 
Total original principal amount
 
$
458,500

 
 
 
 
 
 
 
509,000

 
$
967,500

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

 
191,000

 
222,000

 
84,000

 
497,000

 
942,000

Bond discount
 
—

 
—

 
—

 
(535
)
 
(535
)
 
(535
)
Issue price
 
$
445,000

 
191,000

 
222,000

 
83,465

 
496,465

 
941,465

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

 
6/25/21

 
3/25/30

 
7/27/37

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

 
 
 
 
 
 
 
12,000

 
25,500

Bond discount
 
(1,132
)
 
 
 
 
 
 
 
(1,046
)
 
(2,178
)
Issue price
 
$
12,368

 
 
 
 
 
 
 
10,954

 
23,322

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

 
 
 
 
 
 
 
6/25/41

 
 

Unsecured Line of Credit

The Company has a $275.0 million unsecured line of credit that matures on March 28, 2018. As of March 31, 2014, no amounts were outstanding on the unsecured line of credit and $275.0 million was available for future use.

Debt Repurchases

The Company repurchased $1.4 million (face amount) and $13.0 million (face amount) of its own asset-backed debt securities during the three months ended March 31, 2014 and 2013, respectively, and recognized gains on such purchases of approximately $39,000 and $1.4 million, respectively.
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. Derivative instruments used as part of the Company's risk management strategy are further described in note 6 of the notes to consolidated financial statements included in the 2013 Annual Report. A tabular presentation of such derivatives outstanding as of March 31, 2014 and December 31, 2013 is presented below.

Basis Swaps

The following table summarizes the Company’s basis swaps outstanding as of March 31, 2014 and December 31, 2013 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").
 
 
Maturity
 
Notional amount
 
 
2021
 
 
$
250,000

 
 
2022
 
 
1,900,000

 
 
2023
 
 
3,650,000

 
 
2024
 
 
250,000

 
 
2026
 
 
800,000

 
 
2028
 
 
100,000

 
 
2036
 
 
700,000

 
 
2039
(a)
 
150,000

 
 
2040
(b)
 
200,000

 
 
 
 
 
$
8,000,000

(c)
(a)This derivative has a forward effective start date in 2015.
(b)This derivative has a forward effective start date in 2020.
(c)
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of March 31, 2014 and December 31, 2013 was one-month LIBOR plus 3.5 basis points.
Interest Rate Swaps – Floor Income Hedges

The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income as of March 31, 2014 and December 31, 2013.
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
2014
 
$
1,750,000

 
0.71
%
2015
 
1,100,000

 
0.89

2016
 
750,000

 
0.85

2017
 
1,250,000

 
0.86

 
 
$
4,850,000

 
0.81
%

(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.
Interest Rate Swaps – Unsecured Debt Hedges

The Company had the following derivatives outstanding as of March 31, 2014 and December 31, 2013 that are used to effectively convert the variable interest rate on a portion of the Junior Subordinated Hybrid Securities ("Hybrid Securities") to a fixed rate.
 
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.

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 instrument.
 
Three months ended March 31,
 
2014
 
2013 (b)
Re-measurement of Euro Notes
$
(952
)
 
28,763

Change in fair value of cross-currency interest rate swaps
(39
)
 
(34,844
)
Total impact to consolidated statements of income - income (expense) (a)
$
(991
)
 
(6,081
)
(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 operating results includes the re-measurement of €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 notional 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 cross-currency interest rate swaps. However, the Company will experience unrealized gains or losses related to the cross-currency interest rate swaps 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 in the consolidated balance sheets:
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of
 
As of
 
As of
 
As of
 
March 31,
2014
 
December 31,
2013
 
March 31,
2014
 
December 31,
2013
1:3 basis swaps
$
19,600

 
18,490

 
—

 
—

Interest rate swaps - floor income hedges
7,607

 
7,183

 
12,915

 
15,849

Interest rate swaps - hybrid debt hedges
—

 
—

 
3,632

 
2,120

Cross-currency interest rate swaps
36,795


36,834

 
—

 
—

Total
$
64,002

 
62,507

 
16,547

 
17,969



During the three months ended March 31, 2013, the Company terminated certain derivatives for gross proceeds and payments of $2.7 million and $2.9 million, respectively. There were no derivative terminations during the first quarter of 2014.

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 March 31, 2014
 
$
64,002

 
(15,313
)
 
(323
)
 
48,366

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
 
Net asset (liability)
Balance as of March 31, 2014
 
$
(16,547
)
 
15,313

 
3,140

 
1,906

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.
 
Three months ended March 31,
 
2014
 
2013
Settlements:
 

 
 

1:3 basis swaps
$
881

 
911

Interest rate swaps - floor income hedges
(6,950
)
 
(8,304
)
Interest rate swaps - hybrid debt hedges
(252
)
 
(645
)
Cross-currency interest rate swaps
92

 
(146
)
Total settlements - expense
(6,229
)
 
(8,184
)
Change in fair value:
 

 
 

1:3 basis swaps
1,110

 
1,933

Interest rate swaps - floor income hedges
3,358

 
9,422

Interest rate swaps - hybrid debt hedges
(1,513
)
 
3,640

Cross-currency interest rate swaps
(39
)
 
(34,844
)
Other
—

 
342

Total change in fair value - income (expense)
2,916

 
(19,507
)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - (expense) income
(952
)
 
28,763

Derivative market value and foreign currency adjustments and derivative settlements, net - (expense) income
$
(4,265
)
 
1,072

Investments
Investments
Investments

A summary of the Company's investments and restricted investments follows:
 
As of March 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)
$
149,016

 
3,192

 
(824
)
 
151,384

 
171,931

 
7,111

 
(1,241
)
 
177,801

Equity securities
1,308

 
1,884

 
—

 
3,192

 
1,502

 
1,783

 
(3
)
 
3,282

Total available-for-sale investments
$
150,324

 
5,076

 
(824
)
 
154,576

 
173,433

 
8,894

 
(1,244
)
 
181,083

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities
 
 
 
 
 
 
11,625

 
 
 
 
 
 
 
10,957

Total available-for-sale and trading investments

 

 

 
$
166,201

 
 
 
 
 


 
192,040

Restricted Investments (c):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts - held-to-maturity
 
 
 
 
 
 
$
6,742

 
 
 
 
 
 
 
7,285


    
(a)
As of March 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 March 31, 2014, the stated maturities of the majority of the Company's student loan asset-backed and other debt securities classified as available-for-sale were greater than 10 years.

(c)
Restricted investments are included in "restricted cash and investments" in the Company's consolidated balance sheets.

The amounts reclassified from accumulated other comprehensive income related to the realized gains and losses on available-for-sale-securities is summarized below.
 
 
Three months ended March 31,
Affected line item in the consolidated statements of income - income (expense):
 
2014
 
2013
Other income
 
$
7,073

 
957

Income tax expense
 
(2,617
)
 
(354
)
Net
 
$
4,456

 
603

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.
 
Three months ended March 31,
 
2014
 
2013
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
73,125

 
661

 
73,786

 
67,517

 
562

 
68,079

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,110,952

 
416,965

 
46,527,917

 
46,272,324

 
385,707

 
46,658,031

Earnings per share - basic and diluted
$
1.59

 
1.59

 
1.59

 
1.46

 
1.46

 
1.46



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.
Segment Reporting
Segment Reporting
Segment Reporting

See note 13 of the notes to consolidated financial statements included in the 2013 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.
 
Three months ended March 31, 2014
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
11

 
—

 
—

 
11

 
157,003

 
2,658

 
(797
)
 
158,875

Interest expense
—

 
—

 
—

 
—

 
59,476

 
1,325

 
(797
)
 
60,004

Net interest income
11

 
—

 
—

 
11

 
97,527

 
1,333

 
—

 
98,871

Less provision for loan losses
—

 
—

 
—

 
—

 
2,500

 
—

 
—

 
2,500

Net interest income after provision for loan losses
11

 
—

 
—

 
11

 
95,027

 
1,333

 
—

 
96,371

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
64,757

 
—

 
—

 
64,757

 
—

 
—

 
—

 
64,757

Intersegment servicing revenue
14,221

 
—

 
—

 
14,221

 
—

 
—

 
(14,221
)
 
—

Tuition payment processing and campus commerce revenue
—

 
25,235

 
—

 
25,235

 
—

 
—

 
—

 
25,235

Enrollment services revenue
—

 
—

 
22,011

 
22,011

 
—

 
—

 
—

 
22,011

Other income
—

 
—

 
—

 
—

 
4,164

 
13,967

 
—

 
18,131

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
39

 
—

 
—

 
39

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
3,477

 
(1,513
)
 
—

 
1,964

Derivative settlements, net
—

 
—

 
—

 
—

 
(5,977
)
 
(252
)
 
—

 
(6,229
)
Total other income (expense)
78,978

 
25,235

 
22,011

 
126,224

 
1,703

 
12,202

 
(14,221
)
 
125,908

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
32,307

 
10,027

 
4,380

 
46,714

 
609

 
5,161

 
—

 
52,484

Cost to provide enrollment services
—

 
—

 
14,475

 
14,475

 
—

 
—

 
—

 
14,475

Depreciation and amortization
2,789

 
1,428

 
47

 
4,264

 
—

 
519

 
—

 
4,783

Other
18,452

 
2,647

 
1,449

 
22,548

 
7,146

 
5,933

 
—

 
35,627

Intersegment expenses, net
1,083

 
1,420

 
1,006

 
3,509

 
14,371

 
(3,659
)
 
(14,221
)
 
—

Total operating expenses
54,631

 
15,522

 
21,357

 
91,510

 
22,126

 
7,954

 
(14,221
)
 
107,369

Income before income taxes and corporate overhead allocation
24,358

 
9,713

 
654

 
34,725

 
74,604

 
5,581

 
—

 
114,910

Corporate overhead allocation
(1,860
)
 
(620
)
 
(620
)
 
(3,100
)
 
(1,329
)
 
4,429

 
—

 
—

Income before income taxes
22,498

 
9,093

 
34

 
31,625

 
73,275

 
10,010

 
—

 
114,910

Income tax expense
(8,549
)
 
(3,455
)
 
(13
)
 
(12,017
)
 
(27,844
)
 
(750
)
 
—

 
(40,611
)
Net income
13,949

 
5,638

 
21

 
19,608

 
45,431

 
9,260

 
—

 
74,299

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
513

 
—

 
513

Net income attributable to Nelnet, Inc.
$
13,949

 
5,638

 
21

 
19,608

 
45,431

 
8,747

 
—

 
73,786

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2013
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
10

 
—

 
—

 
10

 
155,654

 
2,311

 
(819
)
 
157,156

Interest expense
—

 
—

 
—

 
—

 
57,482

 
1,695

 
(819
)
 
58,358

Net interest income
10

 
—

 
—

 
10

 
98,172

 
616

 
—

 
98,798

Less provision for loan losses
—

 
—

 
—

 
—

 
5,000

 
—

 
—

 
5,000

Net interest income after provision for loan losses
10

 
—

 
—

 
10

 
93,172

 
616

 
—

 
93,798

Other income (expense):
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
55,601

 
—

 
—

 
55,601

 
—

 
—

 
—

 
55,601

Intersegment servicing revenue
14,953

 
—

 
—

 
14,953

 
—

 
—

 
(14,953
)
 
—

Tuition payment processing and campus commerce revenue
—

 
23,411

 
—

 
23,411

 
—

 
—

 
—

 
23,411

Enrollment services revenue
—

 
—

 
28,957

 
28,957

 
—

 
—

 
—

 
28,957

Other income
—

 
—

 
—

 
—

 
4,196

 
5,220

 
—

 
9,416

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
1,407

 
—

 
—

 
1,407

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
5,275

 
3,981

 
—

 
9,256

Derivative settlements, net
—

 
—

 
—

 
—

 
(7,539
)
 
(645
)
 
—

 
(8,184
)
Total other income (expense)
70,554

 
23,411

 
28,957

 
122,922

 
3,339

 
8,556

 
(14,953
)
 
119,864

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
28,444

 
9,359

 
5,767

 
43,570

 
562

 
3,773

 
—

 
47,905

Cost to provide enrollment services
—

 
—

 
19,642

 
19,642

 
—

 
—

 
—

 
19,642

Depreciation and amortization
2,789

 
1,138

 
61

 
3,988

 
—

 
389

 
—

 
4,377

Other
18,390

 
2,287

 
1,651

 
22,328

 
7,513

 
5,100

 
—

 
34,941

Intersegment expenses, net
935

 
1,425

 
1,149

 
3,509

 
15,142

 
(3,698
)
 
(14,953
)
 
—

Total operating expenses
50,558

 
14,209

 
28,270

 
93,037

 
23,217

 
5,564

 
(14,953
)
 
106,865

Income before income taxes and corporate overhead allocation
20,006

 
9,202

 
687

 
29,895

 
73,294

 
3,608

 
—

 
106,797

Corporate overhead allocation
(997
)
 
(332
)
 
(332
)
 
(1,661
)
 
(712
)
 
2,373

 
—

 
—

Income before income taxes
19,009

 
8,870

 
355

 
28,234

 
72,582

 
5,981

 
—

 
106,797

Income tax expense
(7,223
)
 
(3,371
)
 
(135
)
 
(10,729
)
 
(27,581
)
 
(137
)
 
—

 
(38,447
)
Net income
11,786

 
5,499

 
220

 
17,505

 
45,001

 
5,844

 
—

 
68,350

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
271

 
—

 
271

Net income attributable to Nelnet, Inc.
$
11,786

 
5,499

 
220

 
17,505

 
45,001

 
5,573

 
—

 
68,079

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Major Customer
Concentration Risk Disclosure [Text Block]
Major Customer

The Company earns loan servicing revenue from a servicing contract with the U.S. Department of Education ("Department") that spans five years (through June 2014).  Revenue earned by the Company's Student Loan and Guaranty Servicing operating segment related to this contract was $29.9 million and $20.3 million for the three months ended March 31, 2014 and 2013, respectively. The Department has the option to extend the contract for an additional five years. On October 25, 2013, the Company received a letter from the Department notifying the Company of the Department's intent to exercise its optional ordering period to extend the contract for an additional five years through June 16, 2019, with actual extension subject to the availability of government funds.
Related Party Transactions
Related Party Transactions
Related Party Transactions

The Company has entered into certain contractual arrangements with related parties as described in note 19 of the notes to consolidated financial statements included in the Company's 2013 Annual Report.  The following provides an update for a related party transaction that occurred during the first quarter of 2014.

On January 1, 2014, the Company subparticipated the Company's participation interest in a loan receivable from an unrelated third party to Union Bank and Trust Company ("Union Bank"), an entity under common control with the Company. The participated portion of the loan was $1.7 million, with an obligation to fund an additional $1.4 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.
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 three months ended March 31, 2014.
 
As of March 31, 2014
 
As of December 31, 2013
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 


 
 
 
 
 
 
Student loan asset-backed securities
$
—

 
162,553

 
162,553

 
—

 
188,279

 
188,279

Equity securities
3,192

 
—

 
3,192

 
3,282

 
—

 
3,282

Debt securities
456

 
—

 
456

 
479

 
—

 
479

Total investments
3,648

 
162,553

 
166,201

 
3,761

 
188,279

 
192,040

Fair value of derivative instruments
—

 
64,002

 
64,002

 
—

 
62,507

 
62,507

Total assets
$
3,648

 
226,555

 
230,203

 
3,761

 
250,786

 
254,547

Liabilities:
 

 
 

 
 

 
 
 
 
 
 
Fair value of derivative instruments
$
—

 
16,547

 
16,547

 
—

 
17,969

 
17,969

Total liabilities
$
—

 
16,547

 
16,547

 
—

 
17,969

 
17,969


The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 
As of March 31, 2014
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
26,671,284

 
25,607,143

 
—

 
—

 
26,671,284

Cash and cash equivalents
107,102

 
107,102

 
107,102

 
—

 
—

Investments
166,201

 
166,201

 
3,648

 
162,553

 
—

Restricted cash
699,147

 
699,147

 
699,147

 
—

 
—

Restricted cash – due to customers
180,469

 
180,469

 
180,469

 
—

 
—

Restricted investments
6,742

 
6,742

 
6,742

 
—

 
—

Accrued interest receivable
305,672

 
305,672

 
—

 
305,672

 
—

Derivative instruments
64,002

 
64,002

 
—

 
64,002

 
—

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
25,461,183

 
25,589,287

 
—

 
25,461,183

 
—

Accrued interest payable
22,338

 
22,338

 
—

 
22,338

 
—

Due to customers
180,469

 
180,469

 
180,469

 
—

 
—

Derivative instruments
16,547

 
16,547

 
—

 
16,547

 
—

 
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 are described in note 20 of the notes to consolidated financial statements included in the 2013 Annual Report.
Legal Proceedings
Legal Proceedings
Legal Proceedings

General

The Company is subject to various legal proceedings that arise in the normal course of business, including the legal proceedings discussed below. These matters frequently involve claims by student loan borrowers disputing the manner in which their student loans have been serviced or the accuracy of reports to credit bureaus, claims by student loan borrowers or other consumers alleging that state or Federal consumer protection laws have been violated in the process of collecting loans or conducting other business activities, and disputes with other business entities. From time to time, lawsuits may be brought as, or subsequently amended to assert claims in the form of, putative class action cases.

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

Actions Requesting Certifications of Classes

Proceedings or complaints that involve or ask for certifications of classes generally expand the scope of legal defense costs, as well as alleged potential claim amounts. The Company is currently subject to 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 discussed below, it is significant to note that no putative class has actually been certified in any of these proceedings, the Company's position is that class certification would be inappropriate in each such proceeding, the Company has entered into agreements in principle to resolve two of the matters for immaterial amounts through a court-approved class-wide settlement, and the Company intends to vigorously contest class certification in the remaining matter. The Company has accrued an immaterial amount related to the legal proceedings described below. However, due to the relatively early stage of these matters and the uncertainty and risks inherent in class determination and the overall litigation process, the Company believes that a meaningful estimate of its exposure to any reasonably possible losses or range of reasonably possible losses, in excess of the amount accrued, cannot currently be made.

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

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

Than Zaw v. Nelnet, Inc.

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

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

On August 6, 2012, an Amended Complaint was served on Peterson's, CUnet, LLC (“CUnet”), a subsidiary of Nelnet, and on Nelnet (collectively, the "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. 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 defend themselves vigorously in this lawsuit.
Subsequent Events
Subsequent Events [Text Block]
12. Subsequent Events

On April 25, 2014, the Company completed the purchase of a total of $3.6 billion of FFELP student loans and related assets. The transaction included the purchase of residual interests in a total of $2.6 billion of securitized student loans and related assets under a stock purchase agreement, and the purchase of a total of approximately $950 million of unsecuritized student loans under three separate loan sale agreements.

The assets acquired under the stock purchase agreement include the rights to the residual interests in three FFELP student loan securitization trusts, which hold a total of $2.6 billion of FFELP student loans and related assets and have issued a corresponding amount of related student loan asset-backed debt.  In addition, under the loan sale agreements, the Company purchased for cash unsecuritized FFELP loans totaling approximately $950 million, consisting primarily of FFELP consolidation loans, which were initially funded through the Company’s existing student loan warehouse facilities.  The aggregate cash purchase price for the assets acquired under the stock purchase agreement and the cash amount paid over the par value of the student loan portfolio and related accrued interest under the loan sale agreements was $139 million, and was funded from the Company’s operating cash and unsecured line of credit. All acquired student loan assets and related debt will be included in the Company’s consolidated financial statements.

On April 30, 2014, the Company completed an asset-backed securitization totaling $719.8 million, which provided permanent funding for loans that were previously funded in the Company's warehouse facilities, including a portion of the $950 million of unsecuritized loans purchased in April 2014. As of April 30, 2014, after the completion of this asset-backed securitization, $1.1 billion was outstanding on the Company's warehouse facilities and $1.2 billion was available for future use.
Basis of Financial Reporting Significant Accounting Policies (Policies)
Basis of Financial Reporting
Basis of Financial Reporting

The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of March 31, 2014 and for the three months ended March 31, 2014 and 2013 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2013 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results for the year ending December 31, 2014. The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (the "2013 Annual Report").
Student Loans Receivable and Allowance for Loan Losses (Tables)
Schedule of Accounts, Notes, Loans and Financing Receivable 
Student loans receivable consisted of the following:
 
As of
 
As of
 
March 31, 2014
 
December 31, 2013
Federally insured loans
 
 
 
Stafford and other
$
6,606,814

 
6,686,626

Consolidation
19,138,841

 
19,363,577

Total
25,745,655

 
26,050,203

Non-federally insured loans
68,540

 
71,103

 
25,814,195

 
26,121,306

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(152,424
)
 
(158,595
)
Allowance for loan losses – federally insured loans
(42,909
)
 
(43,440
)
Allowance for loan losses – non-federally insured loans
(11,719
)
 
(11,682
)
 
$
25,607,143

 
25,907,589



(a)
For loans purchased where there is evidence of credit deterioration since the origination of the loan, the Company records a credit discount, separate from the allowance for loan losses, which is non-accretable to interest income. Remaining discounts and premiums for purchased loans are recognized in interest income over the remaining estimated lives of the loans. The Company continues to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine the need for any additional allowance for loan losses. At March 31, 2014 and December 31, 2013, "loan discount, net of unamortized loan premiums and deferred origination costs" included $20.0 million and $20.2 million, respectively, of non-accretable discount associated with purchased loans.

Allowance for Credit Losses on Financing Receivables 
The provision for loan losses represents the periodic expense of maintaining an allowance appropriate to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below.
 
Three months ended March 31,
 
2014
 
2013
Balance at beginning of period
$
55,122

 
51,902

Provision for loan losses:
 

 
 

Federally insured loans
3,000

 
6,000

Non-federally insured loans
(500
)
 
(1,000
)
Total provision for loan losses
2,500

 
5,000

Charge-offs:
 

 
 

Federally insured loans
(3,631
)
 
(5,990
)
Non-federally insured loans
(421
)
 
(772
)
Total charge-offs
(4,052
)
 
(6,762
)
Recoveries - non-federally insured loans
371

 
368

Purchase (sale) of federally insured loans, net
100

 
(2,218
)
Transfer from repurchase obligation related to non-federally insured loans repurchased, net
587

 
1,119

Balance at end of period
$
54,628

 
49,409

 
 
 
 
Allocation of the allowance for loan losses:
 

 
 

Federally insured loans
$
42,909

 
37,913

Non-federally insured loans
11,719

 
11,496

Total allowance for loan losses
$
54,628

 
49,409


Accrual Related to Repurchase Obligation Rollforward 
As of March 31, 2014, the Company had participated a cumulative amount of $119.6 million (par value) of non-federally insured loans to third parties. Loans participated under these agreements have been accounted for by the Company as loan sales. Accordingly, the participation interests sold are not included in the Company’s consolidated balance sheets. Per the terms of the servicing agreements, the Company’s servicing operations are obligated to repurchase loans subject to the participation interests in the event such loans become 60 or 90 days delinquent.

In addition, in 2011, the Company sold a portfolio of non-federally insured loans for proceeds of $91.3 million (100% of par value).  The Company retained credit risk related to this portfolio and will pay cash to purchase back any loans which become 60 days delinquent. As of March 31, 2014, the balance of this portfolio was $61.1 million (par value).

The Company’s estimate related to its obligation to repurchase these loans is included in “other liabilities” in the Company’s consolidated balance sheets. The activity related to this accrual is detailed below.
 
Three months ended March 31,
 
2014
 
2013
Beginning balance
$
16,143

 
16,130

Loans repurchased
(730
)
 
(1,119
)
Ending balance
$
15,413

 
15,011


Financing Receivable Credit Quality Indicators 
Student Loan Status and Delinquencies

Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.  The percent of non-federally insured loans that were delinquent 31 days or greater as of March 31, 2014, December 31, 2013, and March 31, 2013 was 12.8 percent, 12.7 percent, and 20.5 percent, respectively. The table below shows the Company’s federally insured student loan delinquency amounts.

Rehabilitation Loans and Delinquent Loans Funded in FFELP Warehouse Facilities

Rehabilitation loans are student loans that have previously defaulted, but for which the borrower has made a specified number of on-time payments.  Although rehabilitation loans benefit from the same guarantees as other federally insured student loans, rehabilitation loans have generally experienced re-default rates that are higher than default rates for federally insured student loans that have not previously defaulted.  The Company has purchased a significant amount of rehabilitation loans.  Upon purchase, these loans are recorded at fair value, which generally approximates the federal guarantee rate under the Federal Family Education Loan Program (the "FFEL Program" or "FFELP").  As such, there is minimal credit risk related to rehabilitation loans purchased; therefore, these loans are presented separately in the following delinquency tables.

In addition, the Company has purchased delinquent federally insured loans that are funded in the Company's FFELP warehouse facilities. Upon purchase, these loans are recorded at fair value, which generally approximates the federal guarantee rate. As such, there is minimal credit risk related to these loans. Loans delinquent 121 days or greater and funded in the Company's FFELP warehouse facilities are included with rehabilitation loans purchased in the following delinquency tables.

 
As of March 31, 2014
 
As of December 31, 2013
 
As of March 31, 2013
Federally insured loans, excluding rehabilitation loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
2,617,628

 
 
 
$
2,618,390

 
 
 
$
2,933,416

 
 
Loans in forbearance
2,797,432

 
 
 
2,954,495

 
 
 
2,890,574

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
15,293,299

 
87.2
%
 
15,251,869

 
86.1
%
 
14,501,802

 
87.8
%
Loans delinquent 31-60 days
669,238

 
3.8

 
768,600

 
4.3

 
621,296

 
3.8

Loans delinquent 61-90 days
407,779

 
2.3

 
426,089

 
2.5

 
409,209

 
2.5

Loans delinquent 91-120 days
252,413

 
1.4

 
281,991

 
1.6

 
241,113

 
1.5

Loans delinquent 121-270 days
640,214

 
3.7

 
712,204

 
4.0

 
512,875

 
3.1

Loans delinquent 271 days or greater
272,159

 
1.6

 
269,066

 
1.5

 
211,461

 
1.3

Total loans in repayment
17,535,102

 
100.0
%
 
17,709,819

 
100.0
%
 
16,497,756

 
100.0
%
Total federally insured loans, excluding rehabilitation loans
$
22,950,162

 
 

 
$
23,282,704

 
 

 
$
22,321,746

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rehabilitation loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
261,754

 
 
 
$
254,115

 
 
 
$
213,101

 
 
Loans in forbearance
416,206

 
 
 
415,530

 
 
 
394,733

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
1,205,261

 
56.9
%
 
1,086,053

 
51.8
%
 
877,800

 
42.4
%
Loans delinquent 31-60 days
163,143

 
7.7

 
198,718

 
9.5

 
138,249

 
6.7

Loans delinquent 61-90 days
114,920

 
5.4

 
124,244

 
5.9

 
109,129

 
5.3

Loans delinquent 91-120 days
91,730

 
4.3

 
108,800

 
5.2

 
121,468

 
5.9

Loans delinquent 121-270 days
344,434

 
16.3

 
405,732

 
19.3

 
573,054

 
27.7

Loans delinquent 271 days or greater
198,045

 
9.4

 
174,307

 
8.3

 
249,011

 
12.0

Total loans in repayment
2,117,533

 
100.0
%
 
2,097,854

 
100.0
%
 
2,068,711

 
100.0
%
Total rehabilitation loans
2,795,493

 
 
 
2,767,499

 
 
 
2,676,545

 
 
Total federally insured loans
$
25,745,655

 
 
 
$
26,050,203

 
 
 
$
24,998,291

 
 


Bonds and Notes payable (Tables)
Schedule of Debt 
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
As of March 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
$
23,780,072

 
0.24% - 6.90%
 
5/25/18 - 8/26/52
Bonds and notes based on auction or remarketing
1,132,900

 
0.07% - 2.18%
 
5/1/28 - 11/26/46
Total variable-rate bonds and notes
24,912,972

 
 
 
 
FFELP warehouse facilities
772,435

 
0.16% - 0.24%
 
1/17/16 - 9/30/16
Unsecured line of credit
—

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

 
3.61%
 
9/15/61
Other borrowings
61,374

 
1.65% - 5.10%
 
8/11/14 - 11/11/15
 
25,843,238

 
 
 
 
Discount on bonds and notes payable
(253,951
)
 
 
 
 
Total
$
25,589,287

 
 
 
 
 
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

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

As of March 31, 2014, the Company had three FFELP warehouse facilities as summarized below.
 
 
NHELP-III
 
NFSLW-I (a)
 
NHELP-II
 
Total
Maximum financing amount
 
$
750,000

 
500,000

 
500,000

 
1,750,000

Amount outstanding
 
377,995

 
276,915

 
117,525

 
772,435

Amount available
 
$
372,005

 
223,085

 
382,475

 
977,565

Expiration of liquidity provisions
 
February 5, 2015

 
June 12, 2014

 
September 30, 2014

 
 
Final maturity date
 
January 17, 2016

 
June 12, 2016

 
September 30, 2016

 
 
Maximum advance rates
 
92.2 - 95.0%

 
92.0 - 98.0%

 
84.5 - 94.5%

 
 
Minimum advance rates
 
92.2 - 95.0%

 
84.0 - 90.0%

 
84.5 - 94.5%

 
 
Advanced as equity support
 
$
22,912

 
16,847

 
11,745

 
51,504


(a) On April 15, 2014, the Company amended the agreement for this warehouse facility to temporarily increase the maximum financing amount to $1.0 billion, change the expiration date for the liquidity provisions to June 11, 2015, and change the maturity date to June 11, 2017.
Schedule of asset-backed securitizations [Table Text Block] 
The following table summarizes the asset-backed securitization transactions completed during the three months ended March 31, 2014.
 
 
2014-1
 
2014-2
 
Total
 
 
 
 
Class A-1 notes
 
Class A-2 notes
 
Class A-3 notes
 
2014-2 total
 
 
Date securities issued
 
2/6/14
 
3/12/14
 
3/12/14
 
3/12/14
 
3/12/14
 
 
Total original principal amount
 
$
458,500

 
 
 
 
 
 
 
509,000

 
$
967,500

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

 
191,000

 
222,000

 
84,000

 
497,000

 
942,000

Bond discount
 
—

 
—

 
—

 
(535
)
 
(535
)
 
(535
)
Issue price
 
$
445,000

 
191,000

 
222,000

 
83,465

 
496,465

 
941,465

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

 
6/25/21

 
3/25/30

 
7/27/37

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

 
 
 
 
 
 
 
12,000

 
25,500

Bond discount
 
(1,132
)
 
 
 
 
 
 
 
(1,046
)
 
(2,178
)
Issue price
 
$
12,368

 
 
 
 
 
 
 
10,954

 
23,322

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

 
 
 
 
 
 
 
6/25/41

 
 

Derivative Financial Instruments (Tables)
Interest Rate Swaps - 1:3 Basis swaps 
The following table summarizes the Company’s basis swaps outstanding as of March 31, 2014 and December 31, 2013 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").
 
 
Maturity
 
Notional amount
 
 
2021
 
 
$
250,000

 
 
2022
 
 
1,900,000

 
 
2023
 
 
3,650,000

 
 
2024
 
 
250,000

 
 
2026
 
 
800,000

 
 
2028
 
 
100,000

 
 
2036
 
 
700,000

 
 
2039
(a)
 
150,000

 
 
2040
(b)
 
200,000

 
 
 
 
 
$
8,000,000

(c)
(a)This derivative has a forward effective start date in 2015.
(b)This derivative has a forward effective start date in 2020.
(c)
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of March 31, 2014 and December 31, 2013 was one-month LIBOR plus 3.5 basis points
Interest Rate Swaps - Floor Income Hedges 
The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income as of March 31, 2014 and December 31, 2013.
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
2014
 
$
1,750,000

 
0.71
%
2015
 
1,100,000

 
0.89

2016
 
750,000

 
0.85

2017
 
1,250,000

 
0.86

 
 
$
4,850,000

 
0.81
%

(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.
Interest Rate Swaps - Unsecured Debt Hedges 
The Company had the following derivatives outstanding as of March 31, 2014 and December 31, 2013 that are used to effectively convert the variable interest rate on a portion of the Junior Subordinated Hybrid Securities ("Hybrid Securities") to a fixed rate.
 
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.
Impact of Foreign Exchange Contracts on the Statement of Income 
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.

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 instrument.
 
Three months ended March 31,
 
2014
 
2013 (b)
Re-measurement of Euro Notes
$
(952
)
 
28,763

Change in fair value of cross-currency interest rate swaps
(39
)
 
(34,844
)
Total impact to consolidated statements of income - income (expense) (a)
$
(991
)
 
(6,081
)
(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 operating results includes the re-measurement of €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 notional 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 cross-currency interest rate swaps. However, the Company will experience unrealized gains or losses related to the cross-currency interest rate swaps if the two underlying indices (and related forward curve) do not move in parallel.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value 
Consolidated Financial Statement Impact Related to Derivatives

The following table summarizes the fair value of the Company’s derivatives as reflected in the consolidated balance sheets:
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of
 
As of
 
As of
 
As of
 
March 31,
2014
 
December 31,
2013
 
March 31,
2014
 
December 31,
2013
1:3 basis swaps
$
19,600

 
18,490

 
—

 
—

Interest rate swaps - floor income hedges
7,607

 
7,183

 
12,915

 
15,849

Interest rate swaps - hybrid debt hedges
—

 
—

 
3,632

 
2,120

Cross-currency interest rate swaps
36,795


36,834

 
—

 
—

Total
$
64,002

 
62,507

 
16,547

 
17,969



During the three months ended March 31, 2013, the Company terminated certain derivatives for gross proceeds and payments of $2.7 million and $2.9 million, respectively. There were no derivative terminations during the first quarter of 2014.
Schedule of Derivative Instruments [Table Text Block] 
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 March 31, 2014
 
$
64,002

 
(15,313
)
 
(323
)
 
48,366

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
 
Net asset (liability)
Balance as of March 31, 2014
 
$
(16,547
)
 
15,313

 
3,140

 
1,906

Balance as of December 31, 2013
 
(17,969
)
 
15,437

 
3,630

 
1,098

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance 

The following table summarizes the effect of derivative instruments in the consolidated statements of income.
 
Three months ended March 31,
 
2014
 
2013
Settlements:
 

 
 

1:3 basis swaps
$
881

 
911

Interest rate swaps - floor income hedges
(6,950
)
 
(8,304
)
Interest rate swaps - hybrid debt hedges
(252
)
 
(645
)
Cross-currency interest rate swaps
92

 
(146
)
Total settlements - expense
(6,229
)
 
(8,184
)
Change in fair value:
 

 
 

1:3 basis swaps
1,110

 
1,933

Interest rate swaps - floor income hedges
3,358

 
9,422

Interest rate swaps - hybrid debt hedges
(1,513
)
 
3,640

Cross-currency interest rate swaps
(39
)
 
(34,844
)
Other
—

 
342

Total change in fair value - income (expense)
2,916

 
(19,507
)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - (expense) income
(952
)
 
28,763

Derivative market value and foreign currency adjustments and derivative settlements, net - (expense) income
$
(4,265
)
 
1,072


Investments (Tables)
Summary Investment Holdings 
A summary of the Company's investments and restricted investments follows:
 
As of March 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)
$
149,016

 
3,192

 
(824
)
 
151,384

 
171,931

 
7,111

 
(1,241
)
 
177,801

Equity securities
1,308

 
1,884

 
—

 
3,192

 
1,502

 
1,783

 
(3
)
 
3,282

Total available-for-sale investments
$
150,324

 
5,076

 
(824
)
 
154,576

 
173,433

 
8,894

 
(1,244
)
 
181,083

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities
 
 
 
 
 
 
11,625

 
 
 
 
 
 
 
10,957

Total available-for-sale and trading investments

 

 

 
$
166,201

 
 
 
 
 


 
192,040

Restricted Investments (c):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts - held-to-maturity
 
 
 
 
 
 
$
6,742

 
 
 
 
 
 
 
7,285


    
(a)
As of March 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 March 31, 2014, the stated maturities of the majority of the Company's student loan asset-backed and other debt securities classified as available-for-sale were greater than 10 years.

(c)
Restricted investments are included in "restricted cash and investments" in the Company's consolidated balance sheets.

Realized Gain (Loss) on Investments [Table Text Block] 
The amounts reclassified from accumulated other comprehensive income related to the realized gains and losses on available-for-sale-securities is summarized below.
 
 
Three months ended March 31,
Affected line item in the consolidated statements of income - income (expense):
 
2014
 
2013
Other income
 
$
7,073

 
957

Income tax expense
 
(2,617
)
 
(354
)
Net
 
$
4,456

 
603

Earnings per Common Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
 
Three months ended March 31,
 
2014
 
2013
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
73,125

 
661

 
73,786

 
67,517

 
562

 
68,079

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,110,952

 
416,965

 
46,527,917

 
46,272,324

 
385,707

 
46,658,031

Earnings per share - basic and diluted
$
1.59

 
1.59

 
1.59

 
1.46

 
1.46

 
1.46

Segment Reporting (Tables)
Schedule of Segment Reporting Information, by Segment

See note 13 of the notes to consolidated financial statements included in the 2013 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.
 
Three months ended March 31, 2014
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
11

 
—

 
—

 
11

 
157,003

 
2,658

 
(797
)
 
158,875

Interest expense
—

 
—

 
—

 
—

 
59,476

 
1,325

 
(797
)
 
60,004

Net interest income
11

 
—

 
—

 
11

 
97,527

 
1,333

 
—

 
98,871

Less provision for loan losses
—

 
—

 
—

 
—

 
2,500

 
—

 
—

 
2,500

Net interest income after provision for loan losses
11

 
—

 
—

 
11

 
95,027

 
1,333

 
—

 
96,371

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
64,757

 
—

 
—

 
64,757

 
—

 
—

 
—

 
64,757

Intersegment servicing revenue
14,221

 
—

 
—

 
14,221

 
—

 
—

 
(14,221
)
 
—

Tuition payment processing and campus commerce revenue
—

 
25,235

 
—

 
25,235

 
—

 
—

 
—

 
25,235

Enrollment services revenue
—

 
—

 
22,011

 
22,011

 
—

 
—

 
—

 
22,011

Other income
—

 
—

 
—

 
—

 
4,164

 
13,967

 
—

 
18,131

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
39

 
—

 
—

 
39

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
3,477

 
(1,513
)
 
—

 
1,964

Derivative settlements, net
—

 
—

 
—

 
—

 
(5,977
)
 
(252
)
 
—

 
(6,229
)
Total other income (expense)
78,978

 
25,235

 
22,011

 
126,224

 
1,703

 
12,202

 
(14,221
)
 
125,908

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
32,307

 
10,027

 
4,380

 
46,714

 
609

 
5,161

 
—

 
52,484

Cost to provide enrollment services
—

 
—

 
14,475

 
14,475

 
—

 
—

 
—

 
14,475

Depreciation and amortization
2,789

 
1,428

 
47

 
4,264

 
—

 
519

 
—

 
4,783

Other
18,452

 
2,647

 
1,449

 
22,548

 
7,146

 
5,933

 
—

 
35,627

Intersegment expenses, net
1,083

 
1,420

 
1,006

 
3,509

 
14,371

 
(3,659
)
 
(14,221
)
 
—

Total operating expenses
54,631

 
15,522

 
21,357

 
91,510

 
22,126

 
7,954

 
(14,221
)
 
107,369

Income before income taxes and corporate overhead allocation
24,358

 
9,713

 
654

 
34,725

 
74,604

 
5,581

 
—

 
114,910

Corporate overhead allocation
(1,860
)
 
(620
)
 
(620
)
 
(3,100
)
 
(1,329
)
 
4,429

 
—

 
—

Income before income taxes
22,498

 
9,093

 
34

 
31,625

 
73,275

 
10,010

 
—

 
114,910

Income tax expense
(8,549
)
 
(3,455
)
 
(13
)
 
(12,017
)
 
(27,844
)
 
(750
)
 
—

 
(40,611
)
Net income
13,949

 
5,638

 
21

 
19,608

 
45,431

 
9,260

 
—

 
74,299

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
513

 
—

 
513

Net income attributable to Nelnet, Inc.
$
13,949

 
5,638

 
21

 
19,608

 
45,431

 
8,747

 
—

 
73,786

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2013
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
10

 
—

 
—

 
10

 
155,654

 
2,311

 
(819
)
 
157,156

Interest expense
—

 
—

 
—

 
—

 
57,482

 
1,695

 
(819
)
 
58,358

Net interest income
10

 
—

 
—

 
10

 
98,172

 
616

 
—

 
98,798

Less provision for loan losses
—

 
—

 
—

 
—

 
5,000

 
—

 
—

 
5,000

Net interest income after provision for loan losses
10

 
—

 
—

 
10

 
93,172

 
616

 
—

 
93,798

Other income (expense):
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
55,601

 
—

 
—

 
55,601

 
—

 
—

 
—

 
55,601

Intersegment servicing revenue
14,953

 
—

 
—

 
14,953

 
—

 
—

 
(14,953
)
 
—

Tuition payment processing and campus commerce revenue
—

 
23,411

 
—

 
23,411

 
—

 
—

 
—

 
23,411

Enrollment services revenue
—

 
—

 
28,957

 
28,957

 
—

 
—

 
—

 
28,957

Other income
—

 
—

 
—

 
—

 
4,196

 
5,220

 
—

 
9,416

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
1,407

 
—

 
—

 
1,407

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
5,275

 
3,981

 
—

 
9,256

Derivative settlements, net
—

 
—

 
—

 
—

 
(7,539
)
 
(645
)
 
—

 
(8,184
)
Total other income (expense)
70,554

 
23,411

 
28,957

 
122,922

 
3,339

 
8,556

 
(14,953
)
 
119,864

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
28,444

 
9,359

 
5,767

 
43,570

 
562

 
3,773

 
—

 
47,905

Cost to provide enrollment services
—

 
—

 
19,642

 
19,642

 
—

 
—

 
—

 
19,642

Depreciation and amortization
2,789

 
1,138

 
61

 
3,988

 
—

 
389

 
—

 
4,377

Other
18,390

 
2,287

 
1,651

 
22,328

 
7,513

 
5,100

 
—

 
34,941

Intersegment expenses, net
935

 
1,425

 
1,149

 
3,509

 
15,142

 
(3,698
)
 
(14,953
)
 
—

Total operating expenses
50,558

 
14,209

 
28,270

 
93,037

 
23,217

 
5,564

 
(14,953
)
 
106,865

Income before income taxes and corporate overhead allocation
20,006

 
9,202

 
687

 
29,895

 
73,294

 
3,608

 
—

 
106,797

Corporate overhead allocation
(997
)
 
(332
)
 
(332
)
 
(1,661
)
 
(712
)
 
2,373

 
—

 
—

Income before income taxes
19,009

 
8,870

 
355

 
28,234

 
72,582

 
5,981

 
—

 
106,797

Income tax expense
(7,223
)
 
(3,371
)
 
(135
)
 
(10,729
)
 
(27,581
)
 
(137
)
 
—

 
(38,447
)
Net income
11,786

 
5,499

 
220

 
17,505

 
45,001

 
5,844

 
—

 
68,350

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
271

 
—

 
271

Net income attributable to Nelnet, Inc.
$
11,786

 
5,499

 
220

 
17,505

 
45,001

 
5,573

 
—

 
68,079

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value (Tables)
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis 
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the three months ended March 31, 2014.
 
As of March 31, 2014
 
As of December 31, 2013
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 


 
 
 
 
 
 
Student loan asset-backed securities
$
—

 
162,553

 
162,553

 
—

 
188,279

 
188,279

Equity securities
3,192

 
—

 
3,192

 
3,282

 
—

 
3,282

Debt securities
456

 
—

 
456

 
479

 
—

 
479

Total investments
3,648

 
162,553

 
166,201

 
3,761

 
188,279

 
192,040

Fair value of derivative instruments
—

 
64,002

 
64,002

 
—

 
62,507

 
62,507

Total assets
$
3,648

 
226,555

 
230,203

 
3,761

 
250,786

 
254,547

Liabilities:
 

 
 

 
 

 
 
 
 
 
 
Fair value of derivative instruments
$
—

 
16,547

 
16,547

 
—

 
17,969

 
17,969

Total liabilities
$
—

 
16,547

 
16,547

 
—

 
17,969

 
17,969


Fair Value, by Balance Sheet Grouping 
The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 
As of March 31, 2014
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
26,671,284

 
25,607,143

 
—

 
—

 
26,671,284

Cash and cash equivalents
107,102

 
107,102

 
107,102

 
—

 
—

Investments
166,201

 
166,201

 
3,648

 
162,553

 
—

Restricted cash
699,147

 
699,147

 
699,147

 
—

 
—

Restricted cash – due to customers
180,469

 
180,469

 
180,469

 
—

 
—

Restricted investments
6,742

 
6,742

 
6,742

 
—

 
—

Accrued interest receivable
305,672

 
305,672

 
—

 
305,672

 
—

Derivative instruments
64,002

 
64,002

 
—

 
64,002

 
—

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
25,461,183

 
25,589,287

 
—

 
25,461,183

 
—

Accrued interest payable
22,338

 
22,338

 
—

 
22,338

 
—

Due to customers
180,469

 
180,469

 
180,469

 
—

 
—

Derivative instruments
16,547

 
16,547

 
—

 
16,547

 
—

 
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

 
—

Student Loans Receivable (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2013
Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Allowance for loan losses
$ 54,628 
$ 55,122 
$ 49,409 
$ 51,902 
Student loans receivable
25,607,143 
25,907,589 
 
 
Federally insured loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Allowance for loan losses
42,909 
 
37,913 
 
Non-federally insured loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Allowance for loan losses
11,719 
 
11,496 
 
held for investment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
25,814,195 
26,121,306 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
152,424 
158,595 
 
 
Student loans receivable
25,607,143 
25,907,589 
 
 
held for investment [Member] |
Federally insured loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
25,745,655 
26,050,203 
 
 
Allowance for loan losses
42,909 
43,440 
 
 
held for investment [Member] |
Non-federally insured loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
68,540 
71,103 
 
 
Allowance for loan losses
11,719 
11,682 
 
 
held for investment [Member] |
Stafford and Other [Member] |
Federally insured loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
6,606,814 
6,686,626 
 
 
held for investment [Member] |
Consolidation Loans [Member] |
Federally insured loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
19,138,841 
19,363,577 
 
 
Non-accretable discount [Member] |
held for investment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
20,000 
20,200 
 
 
Federally insured loans, excluding rehabiliation loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Loans in Repayment - Current, in Percentage
87.20% 
86.10% 
87.80% 
 
Loans Delinquent Greater than 271 Days Past Due
272,159 
269,066 
211,461 
 
Student loans receivable, gross
22,950,162 
23,282,704 
22,321,746 
 
Rehabilitation loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Loans in Repayment - Current, in Percentage
56.90% 
51.80% 
42.40% 
 
Loans Delinquent Greater than 271 Days Past Due
198,045 
174,307 
249,011 
 
Student loans receivable, gross
$ 2,795,493 
$ 2,767,499 
$ 2,676,545 
 
Student Loans Receivable and Allowance for Loan Losses Allowance for Loan Losses (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Mar. 31, 2014
Mar. 31, 2013
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
Allowance for loan losses - balance
$ 55,122 
$ 51,902 
$ 54,628 
$ 49,409 
Provision for loan losses
2,500 
5,000 
 
 
Charge-offs
(4,052)
(6,762)
 
 
Transfer from repurchase obligation related to non-federally insured loans purchased, net
730 
1,119 
 
 
Federally insured loans [Member]
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
Allowance for loan losses - balance
 
 
42,909 
37,913 
Provision for loan losses
3,000 
6,000 
 
 
Charge-offs
(3,631)
(5,990)
 
 
Purchase (sale) of federally insured loans and other, net
100 
(2,218)
 
 
Non-federally insured loans [Member]
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
Allowance for loan losses - balance
 
 
11,719 
11,496 
Provision for loan losses
(500)
(1,000)
 
 
Charge-offs
(421)
(772)
 
 
Recoveries - non-federally insured loans
371 
368 
 
 
Transfer from repurchase obligation related to non-federally insured loans purchased, net
$ 587 
$ 1,119 
 
 
Student Loans Receivable and Allowance for Loan Losses Repurchase Obligations (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Mar. 31, 2014
Cumulative non-federally insured loans participated subject to repurchase agreement [Member]
Dec. 31, 2011
Non-federally insured loans sold subject to repurchase agreement [Member]
Mar. 31, 2014
Non-federally insured loans sold subject to repurchase agreement [Member]
Repurchase Obligation [Line Items]
 
 
 
 
 
 
Cumulative amount of participated non-federally insured student loans
 
 
 
$ 119,600,000 
 
 
Days delinquent to trigger repurchase range, minimum
 
 
 
60 
 
 
Days delinquent to trigger repurchase range, maximum
 
 
 
90 
 
 
Proceeds from sale of non-federally insured student loans subject to repurchase agreements
 
 
 
 
91,300,000 
 
Percent of par value of non-federally insured student loans subject to repurchase agreements
 
 
 
 
100.00% 
 
Days delinquent to trigger repurchase
 
 
 
 
60 
 
Change in Repurchase Obligation [Roll Forward]
 
 
 
 
 
 
Beginning balance
16,143,000 
16,130,000 
 
 
 
 
Transfer to or from the Repurchase Obligation Related to Loans Sold or Purchased and other, net
730,000 
1,119,000 
 
 
 
 
Ending balance
15,413,000 
15,011,000 
 
 
 
 
Student loans receivable
$ 25,607,143,000 
 
$ 25,907,589,000 
 
 
$ 61,100,000 
Student Loans Receivable and Allowance for Loan Losses Student Loan Status and Delinquency (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2013
Federally insured loans, excluding rehabiliation loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans in-school/grace/deferment
$ 2,617,628 
$ 2,618,390 
$ 2,933,416 
Loans in forbearance
2,797,432 
2,954,495 
2,890,574 
Student loans receivable, gross
22,950,162 
23,282,704 
22,321,746 
Loans in repayment status:
 
 
 
Loans current
15,293,299 
15,251,869 
14,501,802 
Loans current, percentage
87.20% 
86.10% 
87.80% 
Loans delinquent 31-60 days
669,238 
768,600 
621,296 
Loans delinquent 31-60 days, percentage
3.80% 
4.30% 
3.80% 
Loans delinquent 61-90 days
407,779 
426,089 
409,209 
Loans delinquent 61-90 days, percentage
2.30% 
2.50% 
2.50% 
Loans delinquent 91-120 days
252,413 
281,991 
241,113 
Loans delinquent 91-120 days, percentage
1.40% 
1.60% 
1.50% 
Loans delinquent 121-270 days
640,214 
712,204 
512,875 
Loans delinquent 121-270 days, percentage
3.70% 
4.00% 
3.10% 
Loans Delinquent Greater than 271 Days Past Due
272,159 
269,066 
211,461 
Loans delinquent 271 days or greater, percentage
1.60% 
1.50% 
1.30% 
Total loans in repayment
17,535,102 
17,709,819 
16,497,756 
Total loans in repayment, percentage
100.00% 
100.00% 
100.00% 
Rehabilitation loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans in-school/grace/deferment
261,754 
254,115 
213,101 
Loans in forbearance
416,206 
415,530 
394,733 
Student loans receivable, gross
2,795,493 
2,767,499 
2,676,545 
Loans in repayment status:
 
 
 
Loans current
1,205,261 
1,086,053 
877,800 
Loans current, percentage
56.90% 
51.80% 
42.40% 
Loans delinquent 31-60 days
163,143 
198,718 
138,249 
Loans delinquent 31-60 days, percentage
7.70% 
9.50% 
6.70% 
Loans delinquent 61-90 days
114,920 
124,244 
109,129 
Loans delinquent 61-90 days, percentage
5.40% 
5.90% 
5.30% 
Loans delinquent 91-120 days
91,730 
108,800 
121,468 
Loans delinquent 91-120 days, percentage
4.30% 
5.20% 
5.90% 
Loans delinquent 121-270 days
344,434 
405,732 
573,054 
Loans delinquent 121-270 days, percentage
16.30% 
19.30% 
27.70% 
Loans Delinquent Greater than 271 Days Past Due
198,045 
174,307 
249,011 
Loans delinquent 271 days or greater, percentage
9.40% 
8.30% 
12.00% 
Total loans in repayment
2,117,533 
2,097,854 
2,068,711 
Total loans in repayment, percentage
100.00% 
100.00% 
100.00% 
Federally insured loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Student loans receivable, gross
$ 25,745,655 
$ 26,050,203 
$ 24,998,291 
Non-federally insured loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans Delinquent 31 Days or Greater in Percentage
12.80% 
12.70% 
20.50% 
Outstanding Debt Obligations (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Bonds and notes payable
$ 25,589,287 
$ 25,955,289 
Variable-rate bonds and notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
24,912,972 
24,614,143 
Bonds and notes based on indices [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
6.90% 
6.90% 
Bonds and notes payable
23,780,072 
23,479,893 
Debt Instrument, Maturity Date Range, Start
May 25, 2018 
May 25, 2018 
Debt Instrument, Maturity Date Range, End
Aug. 26, 2052 
Aug. 26, 2052 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.24% 
0.25% 
Bonds and notes based on auction or remarketing [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
2.18% 
2.17% 
Bonds and notes payable
1,132,900 
1,134,250 
Debt Instrument, Maturity Date Range, Start
May 01, 2028 
May 01, 2028 
Debt Instrument, Maturity Date Range, End
Nov. 26, 2046 
Nov. 26, 2046 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.07% 
0.07% 
FFELP warehouse facilities [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
0.24% 
0.25% 
Bonds and notes payable
772,435 
1,396,344 
Debt Instrument, Maturity Date Range, Start
Jan. 17, 2016 
Jan. 17, 2016 
Debt Instrument, Maturity Date Range, End
Sep. 30, 2016 
Jun. 12, 2016 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.16% 
0.17% 
Line of Credit [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
0.00% 
1.67% 
Bonds and notes payable
 
45,000 
Line of Credit Facility, Amount Outstanding
0 
 
Debt Instrument, Maturity Date Range, Start
Mar. 28, 2018 
Mar. 28, 2018 
Debt Instrument, Maturity Date Range, End
Mar. 28, 2018 
Mar. 28, 2018 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.00% 
1.67% 
Unsecured debt - Junior Subordinated Hybrid Securities [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
3.61% 
3.62% 
Bonds and notes payable
96,457 
96,457 
Debt Instrument, Maturity Date Range, Start
Sep. 15, 2061 
Sep. 15, 2061 
Debt Instrument, Maturity Date Range, End
Sep. 15, 2061 
Sep. 15, 2061 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
3.61% 
3.62% 
Other borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
5.10% 
5.10% 
Bonds and notes payable
61,374 
61,401 
Debt Instrument, Maturity Date Range, Start
Aug. 11, 2014 
Apr. 11, 2014 
Debt Instrument, Maturity Date Range, End
Nov. 11, 2015 
Nov. 11, 2015 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
1.65% 
1.67% 
Bonds and notes payable, gross [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
25,843,238 
26,213,345 
Discount on bonds and notes payable [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
$ (253,951)
$ (258,056)
Department of education conduit [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
 
0.00% 
Debt Instrument, Maturity Date Range, Start
 
   
Debt Instrument, Maturity Date Range, End
 
   
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
 
0.00% 
Bonds and Notes Payable Outstanding Lines of Credit (Details) (USD $)
1 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended
May 8, 2014
Apr. 30, 2014
Mar. 31, 2014
Line of Credit [Member]
Mar. 31, 2014
NHELP-II Warehouse [Member]
Mar. 31, 2014
NFSLW-I Warehouse [Member]
Apr. 15, 2014
NFSLW-I Warehouse [Member]
Mar. 31, 2014
NHELP-III Warehouse [Member]
Apr. 30, 2014
FFELP Warehouse Total [Member]
Mar. 31, 2014
FFELP Warehouse Total [Member]
Mar. 31, 2014
Line of Credit [Member]
Dec. 31, 2013
Line of Credit [Member]
Apr. 15, 2014
amendment to maturity date [Member]
NFSLW-I Warehouse [Member]
Apr. 15, 2014
amendment to maturity date [Member]
NFSLW-I Warehouse [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum financing amount
 
 
$ 275,000,000 
$ 500,000,000 1
$ 500,000,000 1
$ 1,000,000,000 1
$ 750,000,000 1
 
$ 1,750,000,000 
 
 
 
 
Debt Instrument, Maturity Date Range, End
 
 
 
Sep. 30, 2016 1
Jun. 12, 2016 1
 
Jan. 17, 2016 1
 
 
Mar. 28, 2018 
Mar. 28, 2018 
Jun. 11, 2017 1
Jun. 11, 2017 1
Amount outstanding
 
 
 
117,525,000 1
276,915,000 1
 
377,995,000 1
1,100,000,000 
772,435,000 
0 
 
 
 
Amount available
 
 
275,000,000 
382,475,000 1
223,085,000 1
 
372,005,000 1
1,200,000,000 
977,565,000 
 
 
 
 
Expiration of liquidity provisions
 
 
 
Sep. 30, 2014 1
Jun. 12, 2014 1
 
Feb. 05, 2015 1
 
 
 
 
Jun. 11, 2015 1
Jun. 11, 2015 1
Advanced as equity support
 
 
 
11,745,000 1
16,847,000 1
 
22,912,000 1
 
51,504,000 
 
 
 
 
Minimum Advance Rates - range minimum
 
 
 
84.50% 1
84.00% 1
 
92.15% 1
 
 
 
 
 
 
Minimum advance rates - range maximum
 
 
 
94.50% 1
90.00% 1
 
95.00% 1
 
 
 
 
 
 
Maximum Advance Rates - range minimum
 
 
 
84.50% 1
92.00% 1
 
92.15% 1
 
 
 
 
 
 
Maximum advance rates - range maximum
 
 
 
94.50% 1
98.00% 1
 
95.00% 1
 
 
 
 
 
 
Line of Credit Facility, Increase (Decrease), Other, Net
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit, future maximum
 
$ 500,000,000 
 
 
 
 
 
 
 
 
 
 
 
Bonds and Notes Payable Asset-backed Securitizations (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2014
2014-1 Securitization [Member]
Mar. 31, 2014
2014-2 Securitization Class A-1 [Member]
Mar. 31, 2014
2014-2 Securitization Class A-2 [Member]
Mar. 31, 2014
2014-2 Securitization Class A-3 [Member]
Mar. 31, 2014
2014-2 Securitization [Member]
Mar. 31, 2014
2014 Securitization [Member]
Mar. 31, 2014
Class A [Member]
2014-1 Securitization [Member]
Mar. 31, 2014
Class A [Member]
2014-2 Securitization Class A-1 [Member]
Mar. 31, 2014
Class A [Member]
2014-2 Securitization Class A-2 [Member]
Mar. 31, 2014
Class A [Member]
2014-2 Securitization Class A-3 [Member]
Mar. 31, 2014
Class A [Member]
2014-2 Securitization [Member]
Apr. 30, 2014
Class A [Member]
2014 Securitization [Member]
Mar. 31, 2014
Class A [Member]
2014 Securitization [Member]
Mar. 31, 2014
Class B [Member]
2014-1 Securitization [Member]
Mar. 31, 2014
Class B [Member]
2014-2 Securitization [Member]
Mar. 31, 2014
Class B [Member]
2014 Securitization [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securitization issuance, Unamortized Discount
 
 
 
 
 
 
$ 0 
$ 0 
$ 0 
$ (535)
$ (535)
 
$ (535)
$ 1,132 
$ (1,046)
$ (2,178)
Asset-backed securitization, issuance date
Feb. 06, 2014 
Mar. 12, 2014 
Mar. 12, 2014 
Mar. 12, 2014 
Mar. 12, 2014 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securitization issuance, Face Amount
458,500 
 
 
 
509,000 
967,500 
445,000 
191,000 
222,000 
84,000 
497,000 
 
942,000 
13,500 
12,000 
25,500 
Long-term Debt, Fair Value
 
 
 
 
 
 
$ 445,000 
$ 191,000 1
$ 222,000 
$ 83,465 
$ 496,465 
$ 719,800 
$ 941,465 
$ 12,368 
$ 10,954 
$ 23,322 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
 
0.57% 
0.28% 
0.60% 
0.85% 
 
 
 
1.50% 
1.50% 
 
Debt Instrument, Maturity Date Range, End
 
 
 
 
 
 
Sep. 25, 2041 
Jun. 25, 2021 
Mar. 25, 2030 
Jul. 27, 2037 
 
 
 
Oct. 25, 2047 
Jun. 25, 2041 
 
Bonds and Notes Payable Debt Repurchases (Details) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Debt Instrument [Line Items]
 
 
Gain on sale of loans and debt repurchases net
$ 39,000 
$ 1,407,000 
Debt [Member] |
Asset-backed Securities [Member]
 
 
Debt Instrument [Line Items]
 
 
Gain on sale of loans and debt repurchases net
39,000 
1,400,000 
Debt [Member] |
Quarter to date [Member] |
Asset-backed Securities [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Repurchased Face Amount
$ 1,400,000 
$ 13,000,000 
Derivative Financial Instruments Outstanding (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2014
Junior Subordinated Hybrid Securities [Member]
Dec. 31, 2013
Junior Subordinated Hybrid Securities [Member]
Mar. 31, 2014
Junior Subordinated Hybrid Securities [Member]
Maturity 2036 [Member]
Dec. 31, 2013
Junior Subordinated Hybrid Securities [Member]
Maturity 2036 [Member]
Mar. 31, 2014
1:3 basis swaps [Member]
Mar. 31, 2014
1:3 basis swaps [Member]
Maturity 2021 [Member]
Dec. 31, 2013
1:3 basis swaps [Member]
Maturity 2021 [Member]
Mar. 31, 2014
1:3 basis swaps [Member]
Maturity 2022 [Member]
Dec. 31, 2013
1:3 basis swaps [Member]
Maturity 2022 [Member]
Mar. 31, 2014
1:3 basis swaps [Member]
Maturity 2023 [Member]
Dec. 31, 2013
1:3 basis swaps [Member]
Maturity 2023 [Member]
Mar. 31, 2014
1:3 basis swaps [Member]
Maturity 2024 [Member]
Dec. 31, 2013
1:3 basis swaps [Member]
Maturity 2024 [Member]
Mar. 31, 2014
1:3 basis swaps [Member]
Maturity 2026 [Member]
Dec. 31, 2013
1:3 basis swaps [Member]
Maturity 2026 [Member]
Mar. 31, 2014
1:3 basis swaps [Member]
Maturity 2028 [Member]
Dec. 31, 2013
1:3 basis swaps [Member]
Maturity 2028 [Member]
Mar. 31, 2014
1:3 basis swaps [Member]
Maturity 2036 [Member]
Dec. 31, 2013
1:3 basis swaps [Member]
Maturity 2036 [Member]
Mar. 31, 2014
1:3 basis swaps [Member]
Maturity 2039 [Member]
Dec. 31, 2013
1:3 basis swaps [Member]
Maturity 2039 [Member]
Mar. 31, 2014
1:3 basis swaps [Member]
Maturity 2040 [Member]
Dec. 31, 2013
1:3 basis swaps [Member]
Maturity 2040 [Member]
Mar. 31, 2014
Fixed Rate Floor Income Interest Rate Swap [Member]
Dec. 31, 2013
Fixed Rate Floor Income Interest Rate Swap [Member]
Mar. 31, 2014
Fixed Rate Floor Income Interest Rate Swap [Member]
Maturity 2014 [Member]
Dec. 31, 2013
Fixed Rate Floor Income Interest Rate Swap [Member]
Maturity 2014 [Member]
Mar. 31, 2014
Fixed Rate Floor Income Interest Rate Swap [Member]
Maturity 2015 [Member]
Dec. 31, 2013
Fixed Rate Floor Income Interest Rate Swap [Member]
Maturity 2015 [Member]
Mar. 31, 2014
Fixed Rate Floor Income Interest Rate Swap [Member]
Maturity 2016 [Member]
Dec. 31, 2013
Fixed Rate Floor Income Interest Rate Swap [Member]
Maturity 2016 [Member]
Mar. 31, 2014
Fixed Rate Floor Income Interest Rate Swap [Member]
Maturity 2017 [Member]
Dec. 31, 2013
Fixed Rate Floor Income Interest Rate Swap [Member]
Maturity 2017 [Member]
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bonds and notes payable
$ 25,589,287 
$ 25,955,289 
$ 96,457 
$ 96,457 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
$ 25,000 
$ 25,000 
$ 8,000,000 1
$ 250,000 
$ 250,000 
$ 1,900,000 
$ 1,900,000 
$ 3,650,000 
$ 3,650,000 
$ 250,000 
$ 250,000 
$ 800,000 
$ 800,000 
$ 100,000 
$ 100,000 
$ 700,000 
$ 700,000 
$ 150,000 2
$ 150,000 
$ 200,000 3
$ 200,000 
$ 4,850,000 
$ 4,850,000 
$ 1,750,000 
$ 1,750,000 
$ 1,100,000 
$ 1,100,000 
$ 750,000 
$ 750,000 
$ 1,250,000 
$ 1,250,000 
Derivative, Average Fixed Interest Rate
 
 
 
 
4.28% 4
4.28% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.81% 
0.81% 
0.71% 
0.71% 
0.89% 
0.89% 
0.85% 
0.85% 
0.86% 
0.86% 
Derivative, Type of Interest Rate Paid on Swap
 
 
 
 
 
 
one-month LIBOR 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average basis spread on variable rate
 
 
 
 
 
 
3.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments Cross-currency Interest Rate Swaps (Details)
In Thousands, unless otherwise specified
3 Months Ended 3 Months Ended
Mar. 31, 2014
USD ($)
Mar. 31, 2013
USD ($)
Dec. 31, 2013
USD ($)
Mar. 31, 2014
Currency Swap [Member]
USD ($)
Mar. 31, 2013
Currency Swap [Member]
USD ($)
Mar. 31, 2014
Cross-currency interest rate swap 1 [Member]
EUR (€)
Mar. 31, 2014
Cross currency interest rate swap 2 [Member]
USD ($)
Mar. 31, 2014
Cross currency interest rate swap 2 [Member]
EUR (€)
Mar. 31, 2014
Fixed Rate Floor Income Interest Rate Swap [Member]
USD ($)
Dec. 31, 2013
Fixed Rate Floor Income Interest Rate Swap [Member]
USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
Derivative, Average Fixed Interest Rate
 
 
 
 
 
 
 
 
0.81% 
0.81% 
Bonds and notes payable
$ 25,589,287 
 
$ 25,955,289 
 
 
€ 420,500 
 
€ 352,700 
 
 
Re-measurement of Euro Notes
(952)
28,763 
 
 
 
 
 
 
 
 
Change in fair value of cross currency interest rate swaps
(39)
(34,844)
 
 
 
 
 
 
 
 
Total impact to statements of income - income (expense)
2,916 
(19,507)
 
(991)1 2
(6,081)1 2
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
 
 
$ 450,000 
€ 352,700 
$ 4,850,000 
$ 4,850,000 
Derivative Financial Instruments Fair Value of Derivative Instruments (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2014
Dec. 31, 2013
Derivatives, Fair Value [Line Items]
 
 
 
Proceeds to terminate and or amend derivative instruments
$ (2,700,000)
 
 
Fair value of derivative instruments, asset
 
64,002,000 
62,507,000 
Fair value of derivative instruments, liability
 
16,547,000 
17,969,000 
Cash collateral received
 
323,000 
15,959,000 
Cash collateral pledged
 
3,140,000 
3,630,000 
Payments to terminate and/or amend derivative instruments
2,900,000 
 
 
1:3 basis swaps [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of derivative instruments, asset
 
19,600,000 
18,490,000 
Fair value of derivative instruments, liability
 
0 
0 
Interest rate swaps - floor income hedges [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of derivative instruments, asset
 
7,607,000 
7,183,000 
Fair value of derivative instruments, liability
 
12,915,000 
15,849,000 
Interest rate swaps - hybrid debt hedges [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of derivative instruments, asset
 
0 
0 
Fair value of derivative instruments, liability
 
3,632,000 
2,120,000 
Cross-currency interest rate swaps [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of derivative instruments, asset
 
36,795,000 
36,834,000 
Fair value of derivative instruments, liability
 
$ 0 
$ 0 
Derivative Financial Instruments Gross/Net (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
$ 64,002 
$ 62,507 
Fair value of derivative instruments, liability
(16,547)
(17,969)
Derivatives subject to enforceable master netting arrangement, asset
(15,313)
(15,437)
Derivatives subject to enforceable master netting arrangement, liability
15,313 
15,437 
Cash collateral received
(323)
(15,959)
Cash collateral pledged
3,140 
3,630 
Fair value of derivative instruments, asset, net
48,366 
31,111 
Fair value of derivative instruments, liability, net
$ (1,906)
$ (1,098)
Derivative Financial Instruments Income Statement Effect of Derivative Instruments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative settlements, net
$ (6,229)
$ (8,184)
Change in fair value
2,916 
(19,507)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
(952)
28,763 
Derivative market value and foreign currency adjustments and derivative settlements - income (expense)
(4,265)
1,072 
1:3 basis swaps [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative settlements, net
881 
911 
Change in fair value
1,110 
1,933 
Interest rate swaps - floor income hedges [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative settlements, net
(6,950)
(8,304)
Change in fair value
3,358 
9,422 
Interest rate swaps - hybrid debt hedges [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative settlements, net
(252)
(645)
Change in fair value
(1,513)
3,640 
Cross-currency interest rate swaps [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative settlements, net
92 
(146)
Change in fair value
(39)
(34,844)
Other [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Change in fair value
$ 0 
$ 342 
Investments and Restricted Investments Summary (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
$ 166,201 
$ 192,040 
Investments [Member] |
Available-for-sale investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
150,324 
173,433 
Gross unrealized gains
5,076 
8,894 
Gross unrealized losses
(824)1
(1,244)
Investments, Fair Value Disclosure
154,576 
181,083 
Investments [Member] |
Available-for-sale investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
149,016 2
171,931 2
Gross unrealized gains
3,192 2
7,111 2
Gross unrealized losses
(824)1 2
(1,241)2
Investments, Fair Value Disclosure
151,384 2
177,801 2
Investments [Member] |
Available-for-sale investments [Member] |
Equity securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
1,308 
1,502 
Gross unrealized gains
1,884 
1,783 
Gross unrealized losses
0 1
(3)
Investments, Fair Value Disclosure
 
3,282 
Investments [Member] |
Trading investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
11,625 
10,957 
Estimate of Fair Value Measurement [Member]
 
 
Investment Holdings [Line Items]
 
 
Restricted Investments
6,742 
7,285 
Guaranteed investment contracts - held-to-maturity
 
$ 7,285 
Investments Realized Gains (Losses) on Available-for-Sale Securities (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Gain (Loss) on Investments [Line Items]
 
 
Other income
$ 7,073 
$ 957 
Income tax expense
(2,617)
(354)
Net
$ 4,456 
$ 603 
Earnings per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
Net income attributable to Nelnet, Inc.
$ 73,786 
$ 68,079 
Weighted average common shares outstanding - basic and diluted
46,527,917 
46,658,031 
Earnings per share - basic and diluted
$ 1.59 
$ 1.46 
Antidilutive securities excluded from computation of earnings per share
0 
0 
Common shareholders [Member]
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
Net income attributable to Nelnet, Inc.
73,125 
67,517 
Weighted average common shares outstanding - basic and diluted
46,110,952 
46,272,324 
Earnings per share - basic and diluted
$ 1.59 
$ 1.46 
Unvested restricted stock shareholders [Member]
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
Net income attributable to Nelnet, Inc.
$ 661 
$ 562 
Weighted average common shares outstanding - basic and diluted
416,965 
385,707 
Earnings per share - basic and diluted
$ 1.59 
$ 1.46 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Segment Reporting Information [Line Items]
 
 
Total interest income
$ 158,875 
$ 157,156 
Interest expense
60,004 
58,358 
Net interest income
98,871 
98,798 
Less provision for loan losses
(2,500)
(5,000)
Net interest income after provision for loan losses
96,371 
93,798 
Other income (expense):
 
 
Loan and guaranty servicing revenue
64,757 
55,601 
Intersegment servicing revenue
0 
0 
Tuition payment processing and campus commerce revenue
25,235 
23,411 
Enrollment services revenue
22,011 
28,957 
Other income
18,131 
9,416 
Gain on sale of loans and debt repurchases
39 
1,407 
Derivative market value and foreign currency adjustments, net
1,964 
9,256 
Derivative settlements, net
(6,229)
(8,184)
Total other income (expense)
125,908 
119,864 
Operating expenses:
 
 
Salaries and benefits
52,484 
47,905 
Cost to provide enrollment services
14,475 
19,642 
Depreciation and amortization
4,783 
4,377 
Other
35,627 
34,941 
Intersegment expenses, net
0 
0 
Total operating expenses
107,369 
106,865 
Income (loss) before income taxes and corporate overhead allocation
114,910 
106,797 
Corporate overhead allocation
0 
0 
Income (loss) before income taxes
114,910 
106,797 
Income tax (expense) benefit
(40,611)
(38,447)
Net income (loss)
74,299 
68,350 
Net income attributable to noncontrolling interest
513 
271 
Net income (loss) attributable to Nelnet, Inc.
73,786 
68,079 
Student Loan and Guaranty Servicing [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
11 
10 
Interest expense
0 
0 
Net interest income
11 
10 
Less provision for loan losses
0 
0 
Net interest income after provision for loan losses
11 
10 
Other income (expense):
 
 
Loan and guaranty servicing revenue
64,757 
55,601 
Intersegment servicing revenue
14,221 
14,953 
Tuition payment processing and campus commerce revenue
0 
0 
Enrollment services revenue
0 
0 
Other income
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
Derivative settlements, net
0 
0 
Total other income (expense)
78,978 
70,554 
Operating expenses:
 
 
Salaries and benefits
32,307 
28,444 
Cost to provide enrollment services
0 
0 
Depreciation and amortization
2,789 
2,789 
Other
18,452 
18,390 
Intersegment expenses, net
1,083 
935 
Total operating expenses
54,631 
50,558 
Income (loss) before income taxes and corporate overhead allocation
24,358 
20,006 
Corporate overhead allocation
(1,860)
(997)
Income (loss) before income taxes
22,498 
19,009 
Income tax (expense) benefit
(8,549)
(7,223)
Net income (loss)
13,949 
11,786 
Net income attributable to noncontrolling interest
0 
0 
Net income (loss) attributable to Nelnet, Inc.
13,949 
11,786 
Tuition Payment Processing and Campus Commerce [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
0 
0 
Interest expense
0 
0 
Net interest income
0 
0 
Less provision for loan losses
0 
0 
Net interest income after provision for loan losses
0 
0 
Other income (expense):
 
 
Loan and guaranty servicing revenue
0 
0 
Intersegment servicing revenue
0 
0 
Tuition payment processing and campus commerce revenue
25,235 
23,411 
Enrollment services revenue
0 
0 
Other income
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
Derivative settlements, net
0 
0 
Total other income (expense)
25,235 
23,411 
Operating expenses:
 
 
Salaries and benefits
10,027 
9,359 
Cost to provide enrollment services
0 
0 
Depreciation and amortization
1,428 
1,138 
Other
2,647 
2,287 
Intersegment expenses, net
1,420 
1,425 
Total operating expenses
15,522 
14,209 
Income (loss) before income taxes and corporate overhead allocation
9,713 
9,202 
Corporate overhead allocation
(620)
(332)
Income (loss) before income taxes
9,093 
8,870 
Income tax (expense) benefit
(3,455)
(3,371)
Net income (loss)
5,638 
5,499 
Net income attributable to noncontrolling interest
0 
0 
Net income (loss) attributable to Nelnet, Inc.
5,638 
5,499 
Enrollment Services [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
0 
0 
Interest expense
0 
0 
Net interest income
0 
0 
Less provision for loan losses
0 
0 
Net interest income after provision for loan losses
0 
0 
Other income (expense):
 
 
Loan and guaranty servicing revenue
0 
0 
Intersegment servicing revenue
0 
0 
Tuition payment processing and campus commerce revenue
0 
0 
Enrollment services revenue
22,011 
28,957 
Other income
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
Derivative settlements, net
0 
0 
Total other income (expense)
22,011 
28,957 
Operating expenses:
 
 
Salaries and benefits
4,380 
5,767 
Cost to provide enrollment services
14,475 
19,642 
Depreciation and amortization
47 
61 
Other
1,449 
1,651 
Intersegment expenses, net
1,006 
1,149 
Total operating expenses
21,357 
28,270 
Income (loss) before income taxes and corporate overhead allocation
654 
687 
Corporate overhead allocation
(620)
(332)
Income (loss) before income taxes
34 
355 
Income tax (expense) benefit
(13)
(135)
Net income (loss)
21 
220 
Net income attributable to noncontrolling interest
0 
0 
Net income (loss) attributable to Nelnet, Inc.
21 
220 
Total Fee-Based [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
11 
10 
Interest expense
0 
0 
Net interest income
11 
10 
Less provision for loan losses
0 
0 
Net interest income after provision for loan losses
11 
10 
Other income (expense):
 
 
Loan and guaranty servicing revenue
64,757 
55,601 
Intersegment servicing revenue
14,221 
14,953 
Tuition payment processing and campus commerce revenue
25,235 
23,411 
Enrollment services revenue
22,011 
28,957 
Other income
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
Derivative settlements, net
0 
0 
Total other income (expense)
126,224 
122,922 
Operating expenses:
 
 
Salaries and benefits
46,714 
43,570 
Cost to provide enrollment services
14,475 
19,642 
Depreciation and amortization
4,264 
3,988 
Other
22,548 
22,328 
Intersegment expenses, net
3,509 
3,509 
Total operating expenses
91,510 
93,037 
Income (loss) before income taxes and corporate overhead allocation
34,725 
29,895 
Corporate overhead allocation
(3,100)
(1,661)
Income (loss) before income taxes
31,625 
28,234 
Income tax (expense) benefit
(12,017)
(10,729)
Net income (loss)
19,608 
17,505 
Net income attributable to noncontrolling interest
0 
0 
Net income (loss) attributable to Nelnet, Inc.
19,608 
17,505 
Asset Generation and Management [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
157,003 
155,654 
Interest expense
59,476 
57,482 
Net interest income
97,527 
98,172 
Less provision for loan losses
(2,500)
(5,000)
Net interest income after provision for loan losses
95,027 
93,172 
Other income (expense):
 
 
Loan and guaranty servicing revenue
0 
0 
Intersegment servicing revenue
0 
0 
Tuition payment processing and campus commerce revenue
0 
0 
Enrollment services revenue
0 
0 
Other income
4,164 
4,196 
Gain on sale of loans and debt repurchases
39 
1,407 
Derivative market value and foreign currency adjustments, net
3,477 
5,275 
Derivative settlements, net
(5,977)
(7,539)
Total other income (expense)
1,703 
3,339 
Operating expenses:
 
 
Salaries and benefits
609 
562 
Cost to provide enrollment services
0 
0 
Depreciation and amortization
0 
0 
Other
7,146 
7,513 
Intersegment expenses, net
14,371 
15,142 
Total operating expenses
22,126 
23,217 
Income (loss) before income taxes and corporate overhead allocation
74,604 
73,294 
Corporate overhead allocation
(1,329)
(712)
Income (loss) before income taxes
73,275 
72,582 
Income tax (expense) benefit
(27,844)
(27,581)
Net income (loss)
45,431 
45,001 
Net income attributable to noncontrolling interest
0 
0 
Net income (loss) attributable to Nelnet, Inc.
45,431 
45,001 
Corporate Activity and Overhead [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
2,658 
2,311 
Interest expense
1,325 
1,695 
Net interest income
1,333 
616 
Less provision for loan losses
0 
0 
Net interest income after provision for loan losses
1,333 
616 
Other income (expense):
 
 
Loan and guaranty servicing revenue
0 
0 
Intersegment servicing revenue
0 
0 
Tuition payment processing and campus commerce revenue
0 
0 
Enrollment services revenue
0 
0 
Other income
13,967 
5,220 
Gain on sale of loans and debt repurchases
0 
0 
Derivative market value and foreign currency adjustments, net
(1,513)
3,981 
Derivative settlements, net
(252)
(645)
Total other income (expense)
12,202 
8,556 
Operating expenses:
 
 
Salaries and benefits
5,161 
3,773 
Cost to provide enrollment services
0 
0 
Depreciation and amortization
519 
389 
Other
5,933 
5,100 
Intersegment expenses, net
(3,659)
(3,698)
Total operating expenses
7,954 
5,564 
Income (loss) before income taxes and corporate overhead allocation
5,581 
3,608 
Corporate overhead allocation
4,429 
2,373 
Income (loss) before income taxes
10,010 
5,981 
Income tax (expense) benefit
(750)
(137)
Net income (loss)
9,260 
5,844 
Net income attributable to noncontrolling interest
513 
271 
Net income (loss) attributable to Nelnet, Inc.
8,747 
5,573 
Eliminations [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
(797)
(819)
Interest expense
(797)
(819)
Net interest income
0 
0 
Less provision for loan losses
0 
0 
Net interest income after provision for loan losses
0 
0 
Other income (expense):
 
 
Loan and guaranty servicing revenue
0 
0 
Intersegment servicing revenue
(14,221)
(14,953)
Tuition payment processing and campus commerce revenue
0 
0 
Enrollment services revenue
0 
0 
Other income
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
Derivative settlements, net
0 
0 
Total other income (expense)
(14,221)
(14,953)
Operating expenses:
 
 
Salaries and benefits
0 
0 
Cost to provide enrollment services
0 
0 
Depreciation and amortization
0 
0 
Other
0 
0 
Intersegment expenses, net
(14,221)
(14,953)
Total operating expenses
(14,221)
(14,953)
Income (loss) before income taxes and corporate overhead allocation
0 
0 
Corporate overhead allocation
0 
0 
Income (loss) before income taxes
0 
0 
Income tax (expense) benefit
0 
0 
Net income (loss)
0 
0 
Net income attributable to noncontrolling interest
0 
0 
Net income (loss) attributable to Nelnet, Inc.
$ 0 
$ 0 
Major Customer (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Concentration Risk [Line Items]
 
 
Concentration Risk, Customer
 
Department 
Concentration Risk Dollar Value [Member]
 
 
Concentration Risk [Line Items]
 
 
Loan and guaranty servicing revenue
$ 29.9 
$ 20.3 
Related Party Transactions Transactions with Union Bank and Trust (Details) (Union Bank and Trust Company [Member], USD $)
Mar. 31, 2014
Union Bank and Trust Company [Member]
 
Related Party Transaction [Line Items]
 
Amount of Participation
$ 1,700,000.0 
Contractual Obligation
1,400,000 
basis points earned on outstanding balance
$ 40 
Assets and Liabilities that are Measured at Fair Value (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Restricted Investments, at Fair Value
$ 6,742 
$ 7,285 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Restricted Investments, at Fair Value
0 
0 
Fair Value, Measurements, Recurring [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
166,201 
192,040 
Fair value of derivative instruments
64,002 
62,507 
Total assets
230,203 
254,547 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
16,547 
17,969 
Total liabilities
16,547 
17,969 
Fair Value, Measurements, Recurring [Member] |
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
162,553 
188,279 
Fair Value, Measurements, Recurring [Member] |
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
3,192 
3,282 
Fair Value, Measurements, Recurring [Member] |
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
456 
479 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
3,648 
3,761 
Fair value of derivative instruments
0 
0 
Total assets
3,648 
3,761 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
0 
0 
Total liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
0 
0 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
3,192 
3,282 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
456 
479 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
162,553 
188,279 
Fair value of derivative instruments
64,002 
62,507 
Total assets
226,555 
250,786 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
16,547 
17,969 
Total liabilities
16,547 
17,969 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
162,553 
188,279 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
0 
0 
Estimate of Fair Value Measurement [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Restricted Investments, at Fair Value
$ 6,742 
$ 7,285 
Fair Value of Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2013
Dec. 31, 2012
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
$ 25,607,143 
$ 25,907,589 
 
 
Cash and cash equivalents
107,102 
63,267 
50,066 
66,031 
Investments
166,201 
192,040 
 
 
Restricted cash - due to customers
180,469 
167,576 
 
 
Accrued interest receivable
305,672 
314,553 
 
 
Derivative instruments
64,002 
62,507 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
25,589,287 
25,955,289 
 
 
Accrued interest payable
22,338 
21,725 
 
 
Due to customers
180,469 
167,576 
 
 
Derivative instruments
16,547 
17,969 
 
 
Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents
107,102 
63,267 
 
 
Investments
3,648 
3,761 
 
 
Restricted cash
699,147 
727,838 
 
 
Restricted cash - due to customers
180,469 
167,576 
 
 
Restricted investments
(6,742)
(7,285)
 
 
Accrued interest receivable
0 
0 
 
 
Derivative instruments
0 
0 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
0 
0 
 
 
Accrued interest payable
0 
0 
 
 
Due to customers
180,469 
167,576 
 
 
Derivative instruments
0 
0 
 
 
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents
0 
0 
 
 
Investments
162,553 
188,279 
 
 
Restricted cash
0 
0 
 
 
Restricted cash - due to customers
0 
0 
 
 
Restricted investments
0 
0 
 
 
Accrued interest receivable
305,672 
314,553 
 
 
Derivative instruments
64,002 
62,507 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
25,461,183 
25,577,250 
 
 
Accrued interest payable
22,338 
21,725 
 
 
Due to customers
0 
0 
 
 
Derivative instruments
16,547 
17,969 
 
 
Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents
0 
0 
 
 
Investments
0 
0 
 
 
Restricted cash
0 
0 
 
 
Restricted cash - due to customers
0 
0 
 
 
Restricted investments
0 
0 
 
 
Accrued interest receivable
0 
0 
 
 
Derivative instruments
0 
0 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
0 
0 
 
 
Accrued interest payable
0 
0 
 
 
Due to customers
0 
0 
 
 
Derivative instruments
0 
0 
 
 
Fair value [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents
107,102 
63,267 
 
 
Investments
166,201 
192,040 
 
 
Restricted cash
699,147 
727,838 
 
 
Restricted cash - due to customers
180,469 
167,576 
 
 
Restricted investments
(6,742)
(7,285)
 
 
Accrued interest receivable
305,672 
314,553 
 
 
Derivative instruments
64,002 
62,507 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
25,461,183 
25,577,250 
 
 
Accrued interest payable
22,338 
21,725 
 
 
Due to customers
180,469 
167,576 
 
 
Derivative instruments
16,547 
17,969 
 
 
Carrying value [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents
107,102 
63,267 
 
 
Investments
166,201 
192,040 
 
 
Restricted cash
699,147 
727,838 
 
 
Restricted cash - due to customers
180,469 
167,576 
 
 
Restricted investments
(6,742)
(7,285)
 
 
Accrued interest receivable
 
314,553 
 
 
Derivative instruments
64,002 
62,507 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
25,589,287 
25,955,289 
 
 
Accrued interest payable
22,338 
21,725 
 
 
Due to customers
180,469 
167,576 
 
 
Derivative instruments
16,547 
17,969 
 
 
held for investment [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
25,607,143 
25,907,589 
 
 
held for investment [Member] |
Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
0 
0 
 
 
held for investment [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
0 
0 
 
 
held for investment [Member] |
Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
26,671,284 
26,641,383 
 
 
held for investment [Member] |
Fair value [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
26,671,284 
26,641,383 
 
 
held for investment [Member] |
Carrying value [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
$ 25,607,143 
$ 25,907,589 
 
 
Legal Proceedings (Details) (Pending or Threatened Litigation [Member], USD $)
3 Months Ended
Mar. 31, 2014
Loss Contingencies [Line Items]
 
Loss contingency, inestimable loss
The Company has accrued an immaterial amount related to the legal proceedings described below. However, due to the relatively early stage of these matters and the uncertainty and risks inherent in class determination and the overall litigation process, the Company believes that a meaningful estimate of its exposure to any reasonably possible losses or range of reasonably possible losses, in excess of the amount accrued, cannot currently be made. 
Bais Yaakov of Spring Valley v. Peterson's Nelnet, LLC [Member]
 
Loss Contingencies [Line Items]
 
Loss contingency, actions taken by court, arbitrator or mediator
As of the filing date of this report, the New Jersey District Court has not established, recognized, or certified a class.  
Bais Yaakov of Spring Valley v. Peterson's Nelnet, LLC [Member] |
Named plaintiff [Member]
 
Loss Contingencies [Line Items]
 
Advertising faxes
6 
Loss Contingency, Damages Sought, Value, Per Violation
$ 500 
Bais Yaakov of Spring Valley v. Peterson's Nelnet, LLC [Member] |
Class action members [Member]
 
Loss Contingencies [Line Items]
 
Advertising faxes
10,000 
Loss contingency, damages sought, value
5,000,000 
Loss contingency, damages sought, value if trebled
15,000,000 
Than Zaw v. Nelnet, Inc. [Member]
 
Loss Contingencies [Line Items]
 
Loss contingency, actions taken by court, arbitrator or mediator
As of the filing date of this report, the California State Court has not established, recognized, or certified a class.  
Than Zaw v. Nelnet, Inc. [Member] |
Named plaintiff [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency, Damages Sought, Value, Per Violation
5,000 
Grant Keating v. Peterson's Nelnet, LLC et al [Member]
 
Loss Contingencies [Line Items]
 
Loss contingency, actions taken by court, arbitrator or mediator
As of the filing date of this report, the Ohio District Court has not established, recognized, or certified a class. 
Grant Keating v. Peterson's Nelnet, LLC et al [Member] |
Named plaintiff [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency, Damages Sought, Value, Per Violation
$ 500 
Subsequent Events (Details) (USD $)
1 Months Ended
Apr. 30, 2014
Apr. 25, 2014
Mar. 31, 2014
Dec. 31, 2013
Subsequent Event [Line Items]
 
 
 
 
Debt and Capital Lease Obligations
 
 
$ 25,589,287,000 
$ 25,955,289,000 
Financing Receivable, Significant Purchases
3,600,000,000 
 
 
 
Asset Purchase Price
 
139,000,000 
 
 
Securitized Student Loans [Member]
 
 
 
 
Subsequent Event [Line Items]
 
 
 
 
Financing Receivable, Significant Purchases
2,600,000,000 
 
 
 
Unsecuritized Student Loans [Member]
 
 
 
 
Subsequent Event [Line Items]
 
 
 
 
Financing Receivable, Significant Purchases
950,000,000 
 
 
 
2014 Securitization [Member] |
Class A [Member]
 
 
 
 
Subsequent Event [Line Items]
 
 
 
 
Long-term Debt, Fair Value
719,800,000 
 
941,465,000 
 
FFELP Warehouse Total [Member]
 
 
 
 
Subsequent Event [Line Items]
 
 
 
 
Line of Credit Facility, Amount Outstanding
1,100,000,000 
 
772,435,000 
 
Line of Credit Facility, Remaining Borrowing Capacity
$ 1,200,000,000 
 
$ 977,565,000