NELNET INC, 10-Q filed on 8/8/2013
Quarterly Report
Document and Entity Information Document
6 Months Ended
Jun. 30, 2013
Jul. 31, 2013
Common Class A [Member]
Jul. 31, 2013
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
 
34,870,722 
11,495,377 
Amendment Flag
false 
 
 
Entity Central Index Key
0001258602 
 
 
Entity Filer Category
Accelerated Filer 
 
 
Document Period End Date
Jun. 30, 2013 
 
 
Document Fiscal Year Focus
2013 
 
 
Document Fiscal Period Focus
Q2 
 
 
Consolidated Balance Sheets (unaudited) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Assets:
 
 
Student loans receivable (net of allowance for loan losses)
$ 24,575,636 
$ 24,830,621 
Cash and cash equivalents:
 
 
Cash and cash equivalents - not held at a related party
7,819 
7,567 
Cash and cash equivalents - held at a related party
60,765 
58,464 
Total cash and cash equivalents
68,584 
66,031 
Investments
177,241 
83,312 
Restricted cash and investments
679,727 
815,462 
Restricted cash - due to customers
84,182 
96,516 
Accrued interest receivable
296,538 
307,518 
Accounts receivable (net of allowance for doubtful accounts)
66,016 
63,638 
Goodwill
117,118 
117,118 
Intangible assets, net
7,731 
9,393 
Property and equipment, net
34,392 
31,869 
Other assets
97,016 
88,976 
Fair value of derivative instruments
98,996 
97,441 
Total assets
26,303,177 
26,607,895 
Liabilities:
 
 
Bonds and notes payable
(24,690,952)
(25,098,835)
Accrued interest payable
14,760 
14,770 
Other liabilities
(168,791)
(161,671)
Due to customers
84,182 
96,516 
Fair value of derivative instruments
24,897 
70,890 
Total liabilities
24,983,582 
25,442,682 
Nelnet, Inc. shareholders' equity:
 
 
Preferred stock
0 
0 
Common stock:
 
 
Additional paid-in capital
27,004 
32,540 
Retained earnings
1,289,416 
1,129,389 
Accumulated other comprehensive earnings
2,597 
2,813 
Total Nelnet, Inc. shareholders' equity
1,319,482 
1,165,208 
Noncontrolling interest
113 
5 
Total equity
1,319,595 
1,165,213 
Commitments and contingencies
 
 
Total liabilities and equity
26,303,177 
26,607,895 
Common Class A [Member]
 
 
Common stock:
 
 
Common stock
350 
351 
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)
24,647,724 
24,920,130 
Cash and cash equivalents:
 
 
Restricted cash and investments
677,245 
753,511 
Other assets
295,486 
306,454 
Fair value of derivative instruments
62,745 
82,841 
Liabilities:
 
 
Bonds and notes payable
(24,900,550)
(25,209,341)
Other liabilities
(275,426)
(348,364)
Commitments and contingencies
 
 
Net assets of consolidated variable interest entities
$ 507,224 
$ 505,231 
Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Allowance for loan losses
$ 51,611 
$ 51,902 
Allowance for doubtful accounts
$ 1,410 
$ 1,529 
Preferred stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Preferred stock, authorized shares
50,000,000 
50,000,000 
Preferred stock, issued shares
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
34,988,110 
35,116,913 
Shares Outstanding
34,988,110 
35,116,913 
Common Class B [Member]
 
 
Par Value (in dollars per share)
$ 0.01 
$ 0.01 
Shares Authorized
60,000,000 
60,000,000 
Shares Issued
11,495,377 
11,495,377 
Shares Outstanding
11,495,377 
11,495,377 
Consolidated Statements of Income (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Interest income:
 
 
 
 
Loan interest
$ 158,063 
$ 150,988 
$ 313,602 
$ 304,046 
Investment interest
1,483 
1,055 
3,100 
2,150 
Total interest income
159,546 
152,043 
316,702 
306,196 
Interest expense:
 
 
 
 
Interest on bonds and notes payable
58,127 
67,476 
116,485 
136,773 
Net interest income
101,419 
84,567 
200,217 
169,423 
Less provision for loan losses
(5,000)
(7,000)
(10,000)
(13,000)
Net interest income after provision for loan losses
96,419 
77,567 
190,217 
156,423 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
60,078 
52,391 
115,679 
101,879 
Tuition payment processing and campus commerce revenue
18,356 
16,834 
41,767 
38,747 
Enrollment services revenue
24,823 
29,710 
53,780 
61,374 
Other income
12,288 
8,800 
21,704 
19,754 
Gain on sale of loans and debt repurchases
7,355 
935 
8,762 
935 
Derivative market value and foreign currency adjustments and derivative settlements, net
40,188 
(21,618)
41,260 
(36,798)
Total other income (expense)
163,088 
87,052 
282,952 
185,891 
Operating expenses:
 
 
 
 
Salaries and benefits
47,432 
48,703 
95,337 
97,798 
Cost to provide enrollment services
16,787 
20,374 
36,429 
42,052 
Depreciation and amortization
4,320 
8,226 
8,697 
16,362 
Other
34,365 
30,908 
69,306 
63,171 
Total operating expenses
102,904 
108,211 
209,769 
219,383 
Income before income taxes
156,603 
56,408 
263,400 
122,931 
Income tax expense
(54,746)
(14,878)
(93,193)
(38,108)
Net income
101,857 
41,530 
170,207 
84,823 
Net income attributable to noncontrolling interest
614 
136 
885 
288 
Comprehensive income attributable to noncontrolling interest
614 
136 
885 
288 
Net income attributable to Nelnet, Inc.
$ 101,243 
$ 41,394 
$ 169,322 
$ 84,535 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$ 2.17 
$ 0.87 
$ 3.63 
$ 1.78 
Weighted average common shares outstanding - basic and diluted
46,626,853 
47,434,915 
46,642,356 
47,369,776 
Consolidated Statements of Comprehensive Income (unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Net income
$ 101,857 
$ 41,530 
$ 170,207 
$ 84,823 
Available-for-sale securities:
 
 
 
 
Unrealized holding gains (losses) arising during period, net
(3,335)
(586)
1,185 
1,596 
Less reclassification adjustment for gains recognized in net income, net
(559)
(966)
(1,516)
(2,214)
Income tax effect
1,441 
538 
115 
209 
Total other comprehensive loss
(2,453)
(1,014)
(216)
(409)
Comprehensive income
99,404 
40,516 
169,991 
84,414 
Comprehensive income attributable to noncontrolling interest
614 
136 
885 
288 
Net income attributable to noncontrolling interest
614 
136 
885 
288 
Comprehensive income attributable to Nelnet, Inc.
$ 98,790 
$ 40,380 
$ 169,106 
$ 84,126 
Consolidated Statements of Shareholders' Equity (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Preferred Stock [Member]
Common Class A [Member]
Common Class B [Member]
Additional paid-in capital [Member]
Retained earnings [Member]
Accumulated other comprehensive earnings [Member]
Employee notes receivable [Member]
Noncontrolling interest [Member]
Balance at Mar. 31, 2012
$ 1,107,873 
$ 0 
$ 358 
$ 115 
$ 50,948 
$ 1,056,058 
$ 605 
$ (368)
$ 157 
Balance (in Shares) at Mar. 31, 2012
 
0 
35,821,057 
11,495,377 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
41,394 
 
 
 
 
41,394 
 
 
 
Net income attributable to noncontrolling interest
(136)
 
 
 
 
 
 
 
136 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Net income
41,530 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
(1,014)
 
 
 
 
 
(1,014)
 
 
Cash dividend on Class A and Class B common stock
(4,737)
 
 
 
 
(4,737)
 
 
 
Issuance of common stock, net of forfeitures
852 
 
1 
0 
851 
 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
35,134 
0 
 
 
 
 
 
Compensation expense for stock based awards
593 
 
 
 
593 
 
 
 
 
Repurchase of common stock
(199)
 
(1)
0 
(198)
 
 
 
 
Repurchase of common stock (in Shares)
 
 
(8,390)
0 
 
 
 
 
 
Balance at Jun. 30, 2012
1,144,898 
0 
358 
115 
52,194 
1,092,715 
(409)
 
293 
Balance (in Shares) at Jun. 30, 2012
 
0 
35,847,801 
11,495,377 
 
 
 
 
 
Balance at Dec. 31, 2011
1,066,205 
0 
356 
115 
49,245 
1,017,629 
0 
(1,140)
0 
Balance (in Shares) at Dec. 31, 2011
 
0 
35,643,102 
11,495,377 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
84,535 
 
 
 
 
84,535 
 
 
 
Net income attributable to noncontrolling interest
(288)
 
 
 
 
 
 
 
288 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Issuance of minority membership interest
5 
 
 
 
 
 
 
 
5 
Net income
84,823 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
(409)
 
 
 
 
 
(409)
 
 
Distribution to noncontrolling interest
0 
 
 
 
 
 
 
 
 
Cash dividend on Class A and Class B common stock
(9,449)
 
 
 
 
(9,449)
 
 
 
Issuance of common stock, net of forfeitures
3,278 
 
3 
0 
3,275 
 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
255,718 
0 
 
 
 
 
 
Compensation expense for stock based awards
988 
 
 
 
988 
 
 
 
 
Repurchase of common stock
(1,315)
 
(1)
0 
(1,314)
 
 
 
 
Repurchase of common stock (in Shares)
 
 
(51,019)
0 
 
 
 
 
 
Reduction of employee stock notes receivable
772 
 
 
 
 
 
 
772 
 
Balance at Jun. 30, 2012
1,144,898 
0 
358 
115 
52,194 
1,092,715 
(409)
(368)
293 
Balance (in Shares) at Jun. 30, 2012
 
0 
35,847,801 
11,495,377 
 
 
 
 
 
Balance at Dec. 31, 2012
1,165,213 
0 
351 
115 
32,540 
1,129,389 
2,813 
0 
5 
Balance (in Shares) at Dec. 31, 2012
 
0 
35,116,913 
11,495,377 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
169,322 
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interest
(885)
 
 
 
 
 
 
 
885 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Issuance of minority membership interest
5 
 
 
 
 
 
 
 
5 
Net income
170,207 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
(216)
 
 
 
 
 
(216)
 
 
Distribution to noncontrolling interest
(782)
 
 
 
 
 
 
 
(782)
Cash dividend on Class A and Class B common stock
(9,295)
 
 
 
 
(9,295)
 
 
 
Issuance of common stock, net of forfeitures
1,969 
 
2 
0 
1,967 
 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
150,353 
0 
 
 
 
 
 
Compensation expense for stock based awards
1,483 
 
 
 
1,483 
 
 
 
 
Repurchase of common stock
(8,989)
 
(3)
0 
(8,986)
 
 
 
 
Repurchase of common stock (in Shares)
 
 
(279,156)
0 
 
 
 
 
 
Balance at Jun. 30, 2013
1,319,595 
0 
350 
115 
27,004 
1,289,416 
2,597 
0 
113 
Balance (in Shares) at Jun. 30, 2013
 
0 
34,988,110 
11,495,377 
 
 
 
 
 
Balance at Mar. 31, 2013
1,226,404 
0 
350 
115 
27,786 
1,192,822 
5,050 
0 
281 
Balance (in Shares) at Mar. 31, 2013
 
0 
35,029,341 
11,495,377 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
101,243 
 
 
 
 
101,243 
 
 
 
Net income attributable to noncontrolling interest
(614)
 
 
 
 
 
 
 
614 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Net income
101,857 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
(2,453)
 
 
 
 
 
(2,453)
 
 
Distribution to noncontrolling interest
(782)
 
 
 
 
 
 
 
(782)
Cash dividend on Class A and Class B common stock
(4,649)
 
 
 
 
(4,649)
 
 
 
Issuance of common stock, net of forfeitures
695 
 
1 
0 
694 
 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
24,390 
0 
 
 
 
 
 
Compensation expense for stock based awards
808 
 
 
 
808 
 
 
 
 
Repurchase of common stock
(2,285)
 
(1)
0 
(2,284)
 
 
 
 
Repurchase of common stock (in Shares)
 
 
(65,621)
0 
 
 
 
 
 
Balance at Jun. 30, 2013
$ 1,319,595 
$ 0 
$ 350 
$ 115 
$ 27,004 
$ 1,289,416 
$ 2,597 
$ 0 
$ 113 
Balance (in Shares) at Jun. 30, 2013
 
0 
34,988,110 
11,495,377 
 
 
 
 
 
Consolidated Statements of Shareholders' Equity (unaudited) (Parentheticals)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Common Class A [Member]
 
 
 
 
Dividends paid per common share
$ 0.10 
$ 0.10 
$ 0.20 
$ 0.20 
Common Class B [Member]
 
 
 
 
Dividends paid per common share
$ 0.10 
$ 0.10 
$ 0.20 
$ 0.20 
Consolidated Statements of Cash Flows (unaudited) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Net income attributable to Nelnet, Inc.
$ 169,322 
$ 84,535 
Net income attributable to noncontrolling interest
(885)
(288)
Net income
170,207 
84,823 
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
39,160 
58,381 
Student loan discount accretion
(17,769)
(22,857)
Provision for loan losses
10,000 
13,000 
Derivative market value adjustment
(43,729)
61,923 
Foreign currency transaction adjustment
(14,072)
(26,984)
Payments to terminate and/or amend derivative instruments
(3,819)
0 
Gain on sale of loans
(34)
(33)
Gain from debt repurchases
(8,728)
(902)
Gain from sales of available-for-sale securities, net
(1,516)
(2,214)
Deferred income tax expense (benefit)
21,244 
(20,483)
Other
1,531 
1,886 
Decrease in accrued interest receivable
10,980 
22,268 
Increase in accounts receivable
(2,378)
(3,347)
(Increase) decrease in other assets
566 
2,264 
Decrease in accrued interest payable
(10)
(1,447)
Decrease in other liabilities
(8,447)
(5,011)
Net cash provided by operating activities
153,186 
161,267 
Cash flows from investing activities:
 
 
Purchases of student loans
(1,158,245)
(729,775)
Net proceeds from student loan repayments, claims, capitalized interest, participations, and other
1,393,949 
1,449,610 
Proceeds from sale of student loans
11,287 
59,965 
Purchases of available-for-sale securities
(132,496)
(53,662)
Proceeds from sales of available-for-sale securities
37,656 
28,216 
Payments to Acquire Other Investments
(3,893)
0 
Purchases of property and equipment, net
(9,558)
(4,405)
Decrease (increase) in restricted cash
135,735 
(298,633)
Net cash provided by investing activities
274,435 
451,316 
Cash flows from financing activities:
 
 
Payments on bonds and notes payable
(3,538,437)
(1,520,127)
Proceeds from issuance of bonds and notes payable
3,143,612 
936,560 
Payments of debt issuance costs
(11,485)
(5,593)
Dividends paid
(9,295)
(9,449)
Repurchases of common stock
(8,989)
(1,315)
Proceeds from issuance of common stock
303 
249 
Payments received on employee stock notes receivable
0 
772 
Issuance of noncontrolling interest
5 
5 
Distribution to noncontrolling interest
(782)
0 
Net cash used in financing activities
(425,068)
(598,898)
Net increase in cash and cash equivalents
2,553 
13,685 
Cash and cash equivalents, beginning of period
66,031 
 
Cash and cash equivalents, end of period
68,584 
56,255 
Supplemental disclosures of cash flow information:
 
 
Interest paid
100,292 
120,823 
Income taxes paid, net of refunds
$ 69,866 
$ 57,113 
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 June 30, 2013 and for the three and six months ended June 30, 2013 and 2012 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2012 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 and six months ended June 30, 2013 are not necessarily indicative of the results for the year ending December 31, 2013. 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, 2012 (the "2012 Annual Report").

Student Loans Receivable and Allowance for Loan Losses
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2013
Financing Receivables [Text Block]
2.    Student Loans Receivable and Allowance for Loan Losses

Student loans receivable consisted of the following:
 
As of
 
As of
 
June 30, 2013
 
December 31, 2012
Federally insured loans
 
 
 
Stafford and other
$
7,010,404

 
7,261,114

Consolidation
17,678,330

 
17,708,732

Total
24,688,734

 
24,969,846

Non-federally insured loans
29,634

 
26,034

 
24,718,368

 
24,995,880

Loan discount, net of unamortized loan premiums and deferred origination costs
(91,121
)
 
(113,357
)
Allowance for loan losses – federally insured loans
(39,848
)
 
(40,120
)
Allowance for loan losses – non-federally insured loans
(11,763
)
 
(11,782
)
 
$
24,575,636

 
24,830,621

Allowance for federally insured loans as a percentage of such loans
0.16
%
 
0.16
%
Allowance for non-federally insured loans as a percentage of such loans
39.69
%
 
45.26
%


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 June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Balance at beginning of period
$
49,409

 
48,435

 
51,902

 
48,482

Provision for loan losses:
 
 
 
 
 

 
 

Federally insured loans
5,000

 
7,000

 
11,000

 
13,000

Non-federally insured loans
—

 
—

 
(1,000
)
 
—

Total provision for loan losses
5,000

 
7,000

 
10,000

 
13,000

Charge-offs:
 

 
 

 
 

 
 

Federally insured loans
(3,340
)
 
(5,999
)
 
(9,330
)
 
(11,494
)
Non-federally insured loans
(592
)
 
(528
)
 
(1,364
)
 
(1,297
)
Total charge-offs
(3,932
)
 
(6,527
)
 
(10,694
)
 
(12,791
)
Recoveries - non-federally insured loans
442

 
354

 
810

 
705

Purchase (sale) of federally insured loans, net
275

 
(792
)
 
(1,943
)
 
(1,719
)
Transfer from repurchase obligation related to non-federally insured loans purchased, net
417

 
1,187

 
1,536

 
1,980

Balance at end of period
$
51,611

 
49,657

 
51,611

 
49,657

 
 
 
 
 
 
 
 
Allocation of the allowance for loan losses:
 
 
 

 
 

 
 

Federally insured loans
$
39,848

 
36,992

 
39,848

 
36,992

Non-federally insured loans
11,763

 
12,665

 
11,763

 
12,665

Total allowance for loan losses
$
51,611

 
49,657

 
51,611

 
49,657


Repurchase Obligations

As of June 30, 2013, the Company had participated a cumulative amount of $98.7 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 June 30, 2013, the balance of this portfolio was $68.3 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 June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Beginning balance
$
15,011

 
18,430

 
16,130

 
19,223

Repurchase obligation transferred to the allowance for loan losses related to loans purchased, net
(417
)
 
(1,187
)
 
(1,536
)
 
(1,980
)
Ending balance
$
14,594

 
17,243

 
14,594

 
17,243


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 June 30, 2013, December 31, 2012, and June 30, 2012 was 27.1 percent, 28.6 percent, and 22.7 percent, respectively. The table below shows the Company’s federally insured student loan delinquency amounts.

Rehabilitation Loans Purchased and Delinquent Loans Funded in FFELP Warehouse Facilities

Rehabilitation loans are student loans that have previously defaulted, but for which the borrower has made a specified number of on-time payments.  Although rehabilitation loans benefit from the same guarantees as other federally insured student loans, rehabilitation loans have generally experienced re-default rates that are higher than default rates for federally insured student loans that have not previously defaulted.  The Company has purchased a significant amount of rehabilitation loans during 2012 and 2013.  Upon purchase, these loans are recorded at fair value, which generally approximates the federal guarantee rate under the Federal Family Education Loan Program ("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 rehabilitated loans purchased in the following delinquency tables.

 
As of June 30, 2013
 
As of December 31, 2012
 
As of June 30, 2012
Federally insured loans, excluding rehabilitation loans purchased:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
2,753,719

 
 
 
$
2,949,320

 
 
 
$
3,299,197

 
 
Loans in forbearance
2,930,795

 
 
 
2,992,023

 
 
 
3,095,648

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
14,357,812

 
87.7
%
 
14,583,044

 
87.6
%
 
14,238,827

 
87.1
%
Loans delinquent 31-60 days
599,846

 
3.7

 
652,351

 
3.9

 
612,302

 
3.7

Loans delinquent 61-90 days
404,256

 
2.5

 
330,885

 
2.0

 
371,558

 
2.3

Loans delinquent 91-120 days
204,975

 
1.3

 
247,381

 
1.5

 
195,926

 
1.2

Loans delinquent 121-270 days
600,018

 
3.7

 
603,942

 
3.6

 
649,113

 
4.0

Loans delinquent 271 days or greater
187,615

 
1.1

 
220,798

 
1.4

 
279,926

 
1.7

Total loans in repayment
16,354,522

 
100.0
%
 
16,638,401

 
100.0
%
 
16,347,652

 
100.0
%
Total federally insured loans, excluding rehabilitation loans purchased
$
22,039,036

 
 

 
$
22,579,744

 
 

 
$
22,742,497

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rehabilitation loans purchased:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
230,076

 
 
 
$
150,317

 
 
 
$
80,405

 
 
Loans in forbearance
389,306

 
 
 
330,278

 
 
 
127,377

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
997,567

 
49.1
%
 
670,205

 
35.1
%
 
408,224

 
68.0
%
Loans delinquent 31-60 days
176,731

 
8.7

 
113,795

 
6.0

 
55,470

 
9.2

Loans delinquent 61-90 days
127,083

 
6.3

 
79,691

 
4.2

 
37,733

 
6.3

Loans delinquent 91-120 days
86,757

 
4.3

 
186,278

 
9.8

 
20,953

 
3.5

Loans delinquent 121-270 days
416,553

 
20.5

 
633,001

 
33.1

 
52,501

 
8.7

Loans delinquent 271 days or greater
225,625

 
11.1

 
226,537

 
11.8

 
25,964

 
4.3

Total loans in repayment
2,030,316

 
100.0
%
 
1,909,507

 
100.0
%
 
600,845

 
100.0
%
Total rehabilitation loans purchased
2,649,698

 
 
 
2,390,102

 
 
 
808,627

 
 
Total federally insured loans
$
24,688,734

 
 
 
$
24,969,846

 
 
 
$
23,551,124

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

Student loans receivable consisted of the following:
 
As of
 
As of
 
June 30, 2013
 
December 31, 2012
Federally insured loans
 
 
 
Stafford and other
$
7,010,404

 
7,261,114

Consolidation
17,678,330

 
17,708,732

Total
24,688,734

 
24,969,846

Non-federally insured loans
29,634

 
26,034

 
24,718,368

 
24,995,880

Loan discount, net of unamortized loan premiums and deferred origination costs
(91,121
)
 
(113,357
)
Allowance for loan losses – federally insured loans
(39,848
)
 
(40,120
)
Allowance for loan losses – non-federally insured loans
(11,763
)
 
(11,782
)
 
$
24,575,636

 
24,830,621

Allowance for federally insured loans as a percentage of such loans
0.16
%
 
0.16
%
Allowance for non-federally insured loans as a percentage of such loans
39.69
%
 
45.26
%


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 June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Balance at beginning of period
$
49,409

 
48,435

 
51,902

 
48,482

Provision for loan losses:
 
 
 
 
 

 
 

Federally insured loans
5,000

 
7,000

 
11,000

 
13,000

Non-federally insured loans
—

 
—

 
(1,000
)
 
—

Total provision for loan losses
5,000

 
7,000

 
10,000

 
13,000

Charge-offs:
 

 
 

 
 

 
 

Federally insured loans
(3,340
)
 
(5,999
)
 
(9,330
)
 
(11,494
)
Non-federally insured loans
(592
)
 
(528
)
 
(1,364
)
 
(1,297
)
Total charge-offs
(3,932
)
 
(6,527
)
 
(10,694
)
 
(12,791
)
Recoveries - non-federally insured loans
442

 
354

 
810

 
705

Purchase (sale) of federally insured loans, net
275

 
(792
)
 
(1,943
)
 
(1,719
)
Transfer from repurchase obligation related to non-federally insured loans purchased, net
417

 
1,187

 
1,536

 
1,980

Balance at end of period
$
51,611

 
49,657

 
51,611

 
49,657

 
 
 
 
 
 
 
 
Allocation of the allowance for loan losses:
 
 
 

 
 

 
 

Federally insured loans
$
39,848

 
36,992

 
39,848

 
36,992

Non-federally insured loans
11,763

 
12,665

 
11,763

 
12,665

Total allowance for loan losses
$
51,611

 
49,657

 
51,611

 
49,657


Repurchase Obligations

As of June 30, 2013, the Company had participated a cumulative amount of $98.7 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 June 30, 2013, the balance of this portfolio was $68.3 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 June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Beginning balance
$
15,011

 
18,430

 
16,130

 
19,223

Repurchase obligation transferred to the allowance for loan losses related to loans purchased, net
(417
)
 
(1,187
)
 
(1,536
)
 
(1,980
)
Ending balance
$
14,594

 
17,243

 
14,594

 
17,243


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 June 30, 2013, December 31, 2012, and June 30, 2012 was 27.1 percent, 28.6 percent, and 22.7 percent, respectively. The table below shows the Company’s federally insured student loan delinquency amounts.

Rehabilitation Loans Purchased and Delinquent Loans Funded in FFELP Warehouse Facilities

Rehabilitation loans are student loans that have previously defaulted, but for which the borrower has made a specified number of on-time payments.  Although rehabilitation loans benefit from the same guarantees as other federally insured student loans, rehabilitation loans have generally experienced re-default rates that are higher than default rates for federally insured student loans that have not previously defaulted.  The Company has purchased a significant amount of rehabilitation loans during 2012 and 2013.  Upon purchase, these loans are recorded at fair value, which generally approximates the federal guarantee rate under the Federal Family Education Loan Program ("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 rehabilitated loans purchased in the following delinquency tables.

 
As of June 30, 2013
 
As of December 31, 2012
 
As of June 30, 2012
Federally insured loans, excluding rehabilitation loans purchased:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
2,753,719

 
 
 
$
2,949,320

 
 
 
$
3,299,197

 
 
Loans in forbearance
2,930,795

 
 
 
2,992,023

 
 
 
3,095,648

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
14,357,812

 
87.7
%
 
14,583,044

 
87.6
%
 
14,238,827

 
87.1
%
Loans delinquent 31-60 days
599,846

 
3.7

 
652,351

 
3.9

 
612,302

 
3.7

Loans delinquent 61-90 days
404,256

 
2.5

 
330,885

 
2.0

 
371,558

 
2.3

Loans delinquent 91-120 days
204,975

 
1.3

 
247,381

 
1.5

 
195,926

 
1.2

Loans delinquent 121-270 days
600,018

 
3.7

 
603,942

 
3.6

 
649,113

 
4.0

Loans delinquent 271 days or greater
187,615

 
1.1

 
220,798

 
1.4

 
279,926

 
1.7

Total loans in repayment
16,354,522

 
100.0
%
 
16,638,401

 
100.0
%
 
16,347,652

 
100.0
%
Total federally insured loans, excluding rehabilitation loans purchased
$
22,039,036

 
 

 
$
22,579,744

 
 

 
$
22,742,497

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rehabilitation loans purchased:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
230,076

 
 
 
$
150,317

 
 
 
$
80,405

 
 
Loans in forbearance
389,306

 
 
 
330,278

 
 
 
127,377

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
997,567

 
49.1
%
 
670,205

 
35.1
%
 
408,224

 
68.0
%
Loans delinquent 31-60 days
176,731

 
8.7

 
113,795

 
6.0

 
55,470

 
9.2

Loans delinquent 61-90 days
127,083

 
6.3

 
79,691

 
4.2

 
37,733

 
6.3

Loans delinquent 91-120 days
86,757

 
4.3

 
186,278

 
9.8

 
20,953

 
3.5

Loans delinquent 121-270 days
416,553

 
20.5

 
633,001

 
33.1

 
52,501

 
8.7

Loans delinquent 271 days or greater
225,625

 
11.1

 
226,537

 
11.8

 
25,964

 
4.3

Total loans in repayment
2,030,316

 
100.0
%
 
1,909,507

 
100.0
%
 
600,845

 
100.0
%
Total rehabilitation loans purchased
2,649,698

 
 
 
2,390,102

 
 
 
808,627

 
 
Total federally insured loans
$
24,688,734

 
 
 
$
24,969,846

 
 
 
$
23,551,124

 
 
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 June 30, 2013
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
22,773,607

 
0.28% - 6.90%
 
11/25/15 - 8/26/52
Bonds and notes based on auction or remarketing
905,850

 
0.09% - 2.10%
 
5/1/28 - 5/25/42
Total variable-rate bonds and notes
23,679,457

 
 
 
 
FFELP warehouse facilities
1,029,005

 
0.19% - 0.27%
 
4/2/15 - 6/12/16
Unsecured line of credit
—

 
—
 
3/28/18
Unsecured debt - Junior Subordinated Hybrid Securities
99,232

 
3.65%
 
9/15/61
Other borrowings
61,853

 
1.69% - 5.10%
 
11/14/13 - 11/11/15
 
24,869,547

 
 
 
 
Discount on bonds and notes payable
(178,595
)
 
 
 
 
Total
$
24,690,952

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

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

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

 
 
 
 
FFELP warehouse facilities
1,554,151

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

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

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

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

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

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

 
 
 
 


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 June 30, 2013, the Company had four FFELP warehouse facilities as summarized below.
 
 
NHELP-I
 
NHELP-III (a)
 
NHELP-II (b)
 
NFSLW-I (c)
 
Total
Maximum financing amount
 
$
500,000

 
500,000

 
500,000

 
500,000

 
2,000,000

Amount outstanding
 
172,486

 
315,730

 
257,556

 
283,233

 
1,029,005

Amount available
 
$
327,514

 
184,270

 
242,444

 
216,767

 
970,995

Expiration of liquidity provisions
 
October 2, 2013

 
January 16, 2014

 
February 28, 2014

 
June 12, 2014

 
 
Final maturity date
 
April 2, 2015

 
January 17, 2016

 
February 28, 2016

 
June 12, 2016

 
 
Maximum advance rates
 
80.0 - 100.0%

 
92.2 - 95.0%

 
84.5 - 94.5%

 
92.0 - 98.0%

 
 
Minimum advance rates
 
80.0 - 95.0%

 
92.2 - 95.0%

 
84.5 - 94.5%

 
84.0 - 90.0%

 
 
Advanced as equity support
 
$
4,866

 
16,346

 
26,524

 
13,543

 
61,279

(a)
The Company entered into this facility on January 16, 2013.
(b)
On June 3, 2013, the Company amended this facility to change the terms of the advance rates.

(c)
On June 13, 2013, the Company amended this facility to change the terms of the advance rates and extend the expiration of the liquidity provisions and its final maturity date.

Each FFELP warehouse facility is supported by 364-day liquidity provisions, which are subject to the respective expiration date shown in the previous table. In the event the Company is unable to renew the liquidity provisions by such date, the facility would become a term facility at a stepped-up cost, with no additional student loans being eligible for financing, and the Company would be required to refinance the existing loans in the facility by the facility's final maturity date. The NHELP-I and NFSLW-I warehouse facilities provide for formula-based advance rates, depending on FFELP loan type, up to a maximum of the principal and interest of loans financed as shown in the table above. The advance rates for collateral may increase or decrease based on market conditions, but they are subject to minimums as disclosed above. The NHELP-III and NHELP-II warehouse facilities have static advance rates that require initial equity for loan funding, but do not require increased equity based on market movements.

The FFELP warehouse facilities contain financial covenants relating to levels of the Company’s consolidated net worth, ratio of recourse indebtedness to adjusted EBITDA, and unencumbered cash. Any noncompliance with these covenants could result in a requirement for the immediate repayment of any outstanding borrowings under the facilities.

Asset-backed Securitizations

The following table summarizes the asset-backed securitization transactions completed during the six months ended June 30, 2013.
 
 
2013-1
 
2013-2 (a)
 
2013-3
 
2013-4
 
Total
Date securities issued
 
1/31/13
 
2/28/13
 
4/30/13
 
6/21/13
 
 
Total original principal amount
 
$
437,500

 
1,122,000

 
765,000

 
453,000

 
$
2,777,500

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

 
1,122,000

 
745,000

 
440,000

 
2,735,000

Bond discount
 
—

 
(3,325
)
 
—

 
(1,690
)
 
(5,015
)
Issue price
 
$
428,000

 
1,118,675

 
745,000

 
438,310

 
2,729,985

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

 
7/25/40

 
2/25/37

 
12/26/42

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

 
 
 
20,000

 
13,000

 
42,500

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

 
 
 
18,238

 
11,196

 
37,409

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

 
 
 
7/25/47

 
1/25/47

 
 

(a)
Total original principal amount excludes the Class B subordinated tranche totaling $34.0 million that was retained at issuance. 

During the second quarter 2013, the Company sold $61.6 million (face amount) of its Class B subordinated notes that were retained at issuance from prior completed asset-backed securitizations for total proceeds of $55.2 million.  Upon sale, these notes were recognized in the consolidated balance sheet in an amount equal to the cash proceeds received.   The difference between the face amount and the proceeds received for these bonds ($6.4 million) was recorded as bond discount and will be recognized as interest expense over the remaining life of the bonds.  After the completion of these sales, the Company has $76.5 million (face amount) of its own Class B subordinated notes remaining that are not included in the Company's consolidated balance sheet.

Department of Education Conduit

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

Unsecured Line of Credit

On February 17, 2012, the Company entered into a $250.0 million unsecured line of credit. On March 28, 2013, the facility was amended to increase the line of credit to $275.0 million and extend the maturity date from February 17, 2016 to March 28, 2018. There were no significant financial covenant changes made as part of this amendment. As of June 30, 2013, no amounts were outstanding on the unsecured line of credit and $275.0 million was available for future use.

Debt Repurchases

The Company repurchased $56.4 million (face amount) and $69.4 million (face amount) of its own asset-backed debt securities during the three and six months ended June 30, 2013, respectively, and recognized gains on such purchases of $7.4 million and $8.7 million, respectively. During the three and six months ended June 30, 2012, the Company repurchased $17.6 million (face amount) of its own asset-backed debt securities and recognized a gain of $0.9 million.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments

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

Interest Rate Risk

The Company is exposed to interest rate risk in the form of basis risk and repricing risk because the interest rate characteristics of the Company's assets do not match the interest rate characteristics of the funding for those assets. The Company has adopted a policy of periodically reviewing the mismatch related to the interest rate characteristics of its assets and liabilities together with the Company's outlook as to current and future market conditions. Based on those factors, the Company uses derivative instruments as part of its overall risk management strategy. Derivative instruments used as part of the Company's interest rate risk management strategy currently include basis swaps and interest rate swaps.

Basis Swaps

Interest earned on the majority of the Company's FFELP student loan assets is indexed to the one-month LIBOR rate.  Meanwhile, the Company funds the majority of its assets with three-month LIBOR indexed floating rate securities.  The different interest rate characteristics of the Company's loan assets and liabilities funding these assets results in basis risk.

The Company also faces repricing risk due to the timing of the interest rate resets on its liabilities, which may occur as infrequently as once a quarter, in contrast to the timing of the interest rate resets on its assets, which generally occur daily. As of June 30, 2013, the Company had $23.7 billion and $1.0 billion of FFELP loans indexed to the one-month LIBOR rate and the three-month treasury bill rate, respectively, the indices for which reset daily, and $15.6 billion of debt indexed to three-month LIBOR, the indices for which reset quarterly, and $7.7 billion of debt indexed to one-month LIBOR, the indices for which reset monthly.

The Company has used derivative instruments to economically hedge its basis and repricing risk.  The Company has entered into basis swaps in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the 1:3 Basis Swaps).

The following table summarizes the Company’s 1:3 Basis Swaps outstanding:
 
 
 
 
 
As of June 30, 2013
 
As of December 31, 2012
 
 
Maturity
 
Notional amount
 
Notional amount
 
 
2021
 
 
$
250,000

 
$
250,000

 
 
2022
 
 
1,900,000

 
1,900,000

 
 
2023
 
 
3,650,000

 
3,150,000

 
 
2024
 
 
250,000

 
250,000

 
 
2026
 
 
800,000

 
800,000

 
 
2028
 
 
100,000

 
100,000

 
 
2036
 
 
700,000

 
700,000

 
 
2039
(a)
 
150,000

 
150,000

 
 
2040
(b)
 
200,000

 
200,000

 
 
 
 
 
$
8,000,000

(c)
$
7,500,000

(c)
(a)This derivative has a forward effective start date in 2015.
(b)This derivative has a forward effective start date in 2020.
(c)
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of June 30, 2013 and December 31, 2012, was one-month LIBOR plus 3.5 basis points and one-month LIBOR plus 3.3 basis points, respectively.
Interest Rate Swaps – Floor Income Hedges

FFELP loans originated prior to April 1, 2006 generally earn interest at the higher of a floating rate based on the Special Allowance Payments ("SAP") formula set by the Department and the borrower rate, which is fixed over a period of time. The SAP formula is based on an applicable index plus a fixed spread that depends on loan type, origination date, and repayment status. The Company generally finances its student loan portfolio with variable rate debt. In low and/or declining interest rate environments, when the fixed borrower rate is higher than the rate produced by the SAP formula, the Company's student loans earn at a fixed rate while the interest on the variable rate debt typically continues to decline. In these interest rate environments, the Company may earn additional spread income that it refers to as floor income.

Depending on the type of loan and when it was originated, the borrower rate is either fixed to term or is reset to an annual rate each July 1. As a result, for loans where the borrower rate is fixed to term, the Company may earn floor income for an extended period of time, which the Company refers to as fixed rate floor income, and for those loans where the borrower rate is reset annually on July 1, the Company may earn floor income to the next reset date, which the Company refers to as variable rate floor income. Lenders are required to rebate fixed rate floor income and variable rate floor income to the Department for all FFELP loans first originated on or after April 1, 2006.

Absent the use of derivative instruments, a rise in interest rates may reduce the amount of floor income received and this may have an impact on earnings due to interest margin compression caused by increasing financing costs, until such time as the federally insured loans earn interest at a variable rate in accordance with their SAP formulas. In higher interest rate environments, where the interest rate rises above the borrower rate and fixed rate loans effectively become variable rate loans, the impact of the rate fluctuations is reduced.

As of June 30, 2013 and December 31, 2012, the Company had $11.1 billion and $11.3 billion, respectively, of student loan assets that were earning fixed rate floor income. The weighted average estimated variable conversion rate for these loans, which is the estimated short-term interest rate at which the loans would convert to a variable rate, was 1.82%.

The following table summarizes the outstanding derivative instruments used by the Company to economically hedge a majority of loans earning fixed rate floor income.
 
 
As of June 30, 2013
 
As of December 31, 2012
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
2013
 
$
2,000,000

 
0.71
%
 
$
3,150,000

 
0.71
%
2014
 
1,750,000

 
0.71

 
1,750,000

 
0.71

2015
 
1,100,000

 
0.89

 
1,100,000

 
0.89

2016
 
750,000

 
0.85

 
750,000

 
0.85

2017
 
1,250,000

 
0.86

 
750,000

 
0.99

 
 
$
6,850,000

 
0.78
%
 
$
7,500,000

 
0.78
%

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

As of both June 30, 2013 and December 31, 2012, the Company had $99.2 million of unsecured Junior Subordinated Hybrid Securities debt outstanding. The interest rate on the Hybrid Securities through September 29, 2036 is equal to three-month LIBOR plus 3.375%, payable quarterly. The Company had the following derivatives outstanding that are used to effectively convert the variable interest rate on a substantial portion of the Hybrid Securities to a fixed rate of 7.7%.
 
 
 
As of June 30, 2013
 
As of December 31, 2012
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
50,000

 
4.32
%
 
$
75,000

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

Foreign Currency Exchange Risk

In 2006, the Company issued €420.5 million and €352.7 million of student loan asset-backed Euro Notes with interest rates based on a spread to the EURIBOR index. As a result of these transactions, the Company is exposed to market risk related to fluctuations in foreign currency exchange rates between the U.S. dollar and Euro. The principal and accrued interest on these notes are re-measured at each reporting period and recorded in the Company’s consolidated balance sheet in U.S. dollars based on the foreign currency exchange rate on that date. Changes in the principal and accrued interest amounts as a result of foreign currency exchange rate fluctuations are included in the Company’s consolidated statements of income.

The Company entered into cross-currency interest rate swaps in connection with the issuance of the Euro Notes. Under the terms of these derivative instrument agreements, the Company receives from a counterparty a spread to the EURIBOR index based on notional amounts of €420.5 million and €352.7 million and pays a spread to the LIBOR index based on notional amounts of $500.0 million and $450.0 million, respectively. In addition, under the terms of these agreements, all principal payments on the Euro Notes will effectively be paid at the exchange rate between the U.S. dollar and Euro in effect as of the issuance of the notes.

The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instruments.
 
Three months ended June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Re-measurement of Euro Notes
$
(14,691
)
 
59,226

 
14,072

 
26,984

Change in fair value of cross currency interest rate swaps
14,748

 
(62,546
)
 
(20,096
)
 
(49,520
)
Total impact to consolidated statements of income - income (expense) (a)
$
57

 
(3,320
)
 
(6,024
)
 
(22,536
)
(a)
The financial statement impact of the above items is included in "Derivative market value and foreign currency adjustments and derivative settlements, net" in the Company's consolidated statements of income.
The 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. Management currently intends to hold the cross-currency interest rate swaps through the maturity of the Euro-denominated bonds.

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 sheet:
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of
 
As of
 
As of
 
As of
 
June 30,
2013
 
December 31,
2012
 
June 30,
2013
 
December 31,
2012
1:3 basis swaps
$
22,587

 
12,239

 
—

 
1,215

Interest rate swaps - floor income hedges
13,664

 
—

 
16,220

 
45,913

Interest rate swaps - hybrid debt hedges
—

 
—

 
8,677

 
23,762

Cross-currency interest rate swaps
62,745


82,841

 
—

 
—

Other
—

 
2,361

 
—

 
—

Total
$
98,996

 
97,441

 
24,897

 
70,890



During the three and six months ended June 30, 2013, the Company terminated certain derivatives for net payments of $3.7 million and $3.8 million, respectively. Any proceeds received or payments made to terminate a derivative in advance of its expiration date are accounted for as a change in fair value of such derivative. There were no terminations of derivatives during the first six months of 2012.

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 sheet
 
 
Derivative assets
 
Gross amounts of recognized assets presented in the consolidated balance sheet
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral received (a)
 
Net asset (liability)
Balance as of June 30, 2013
 
$
98,996

 
(20,297
)
 
(64,417
)
 
14,282

Balance as of December 31, 2012
 
97,441

 
(13,234
)
 
(19,993
)
 
64,214


 
 
 
 
Gross amounts not offset in the consolidated balance sheet
 
 
Derivative liabilities
 
Gross amounts of recognized liabilities presented in the consolidated balance sheet
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral pledged (b)
 
Net asset (liability)
Balance as of June 30, 2013
 
$
(24,897
)
 
20,297

 
4,810

 
210

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

 
63,128

 
5,472



(a)
As of June 30, 2013 and December 31, 2012, the trustee for certain of the Company's asset-backed securitization transactions held $64.4 million and $20.0 million, respectively, of collateral from the counterparty on the cross-currency interest rate swaps.

(b)
As of June 30, 2013 and December 31, 2012, the Company had $4.8 million and $63.1 million, respectively, posted as collateral to derivative counterparties, which is included in “restricted cash and investments” in the Company's consolidated balance sheet.

The following table summarizes the effect of derivative instruments in the consolidated statements of income.
 
Three months ended June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Settlements:
 

 
 

 
 

 
 

1:3 basis swaps
$
782

 
1,169

 
1,692

 
2,551

Interest rate swaps - floor income hedges
(8,534
)
 
(3,505
)
 
(16,839
)
 
(6,642
)
Interest rate swaps - hybrid debt hedges
(512
)
 
(723
)
 
(1,157
)
 
(746
)
Cross-currency interest rate swaps
(93
)
 
1,055

 
(237
)
 
3,163

Other
—

 
(82
)
 
—

 
(185
)
Total settlements - income (expense)
(8,357
)
 
(2,086
)
 
(16,541
)
 
(1,859
)
Change in fair value:
 

 
 

 
 

 
 

1:3 basis swaps
9,630

 
(428
)
 
11,563

 
2,574

Interest rate swaps - floor income hedges
33,408

 
(6,143
)
 
42,830

 
(11,778
)
Interest rate swaps - hybrid debt hedges
5,450

 
(8,783
)
 
9,090

 
(2,585
)
Cross-currency interest rate swaps
14,748

 
(62,546
)
 
(20,096
)
 
(49,520
)
Other
—

 
(858
)
 
342

 
(614
)
Total change in fair value - income (expense)
63,236

 
(78,758
)
 
43,729

 
(61,923
)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
(14,691
)
 
59,226

 
14,072

 
26,984

Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense)
$
40,188

 
(21,618
)
 
41,260

 
(36,798
)
Investments
Investments
Investments

A summary of the Company's investments and restricted investments follows:
 
As of June 30, 2013
 
As of December 31, 2012
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses (a)
 
Fair value
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities (b)
$
161,051

 
5,931

 
(3,173
)
 
163,809

 
64,970

 
3,187

 
(179
)
 
67,978

Equity securities
2,043

 
1,392

 
(28
)
 
3,407

 
3,449

 
1,604

 
(180
)
 
4,873

Total available-for-sale investments
$
163,094

 
7,323

 
(3,201
)
 
167,216

 
68,419

 
4,791

 
(359
)
 
72,851

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities
 
 
 
 
 
 
10,025

 
 
 
 
 
 
 
10,461

Total available-for-sale and trading investments

 

 

 
$
177,241

 
 
 
 
 


 
83,312

Restricted Investments (c):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts - held-to-maturity
 
 
 
 
 
 
$
8,385

 
 
 
 
 
 
 
8,830


    
(a)
As of June 30, 2013, the Company considered the decline in market value of its available-for-sale investments to be temporary in nature and did not consider any of its investments other-than-temporarily impaired.

(b)
As of June 30, 2013, 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 June 30,
 
Six months ended June 30,
Affected line item in the consolidated statements of income - income (expense):
 
2013
 
2012
 
2013
 
2012
Other income
 
$
559

 
966

 
1,516

 
2,214

Income tax expense
 
(207
)
 
(357
)
 
(561
)
 
(819
)
Net
 
$
352

 
609

 
955

 
1,395

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 June 30,
 
2013
 
2012
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
100,339

 
904

 
101,243

 
41,058

 
336

 
41,394

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,210,571

 
416,282

 
46,626,853

 
47,049,055

 
385,860

 
47,434,915

Earnings per share - basic and diluted
$
2.17

 
2.17

 
2.17

 
0.87

 
0.87

 
0.87



 
Six months ended June 30,
 
2013
 
2012
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
167,868

 
1,454

 
169,322

 
83,916

 
619

 
84,535

 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,241,277

 
401,079

 
46,642,356

 
47,020,811

 
348,965

 
47,369,776

Earnings per share - basic and diluted
$
3.63

 
3.63

 
3.63

 
1.78

 
1.78

 
1.78



Unvested restricted stock awards are the Company's only potential common shares and, accordingly, there were no awards that were antidilutive and not included in average shares outstanding for the diluted earnings per share calculation.

As of June 30, 2013, a cumulative amount of 126,460 shares have been deferred by non-employee directors under the Directors Stock Compensation Plan and will become issuable upon the termination of service by the respective non-employee director on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation.
Segment Reporting
Segment Reporting
Segment Reporting

The Company earns fee-based revenue through its Student Loan and Guaranty Servicing, Tuition Payment Processing and Campus Commerce, and Enrollment Services operating segments. In addition, the Company earns net interest income on its student loan portfolio in its Asset Generation and Management operating segment. The Company’s operating segments are defined by the products and services they offer and the types of customers they serve, and they reflect the manner in which financial information is currently evaluated by management. See note 1 of the notes to the consolidated financial statements included in the 2012 Annual Report for a description of each operating segment, including the primary products and services offered.

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

The accounting policies of the Company’s operating segments are the same as those described in note 2 of the notes to the consolidated financial statements included in the 2012 Annual Report. Intersegment revenues are charged by the segment that provides a product or service to another segment.  Intersegment revenues and expenses are included within each segment consistent with the income statement presentation provided to management.  Changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial information. Income taxes are allocated based on 38% of income (loss) before taxes for each individual operating segment. The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate Activity and Overhead.

Corporate Activity and Overhead

Corporate Activity and Overhead includes the following items:

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

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

Segment Results of Operations

The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.
 
Three months ended June 30, 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
$
9

 
—

 
—

 
9

 
158,175

 
2,196

 
(834
)
 
159,546

Interest expense
—

 
—

 
—

 
—

 
56,920

 
2,041

 
(834
)
 
58,127

Net interest income (loss)
9

 
—

 
—

 
9

 
101,255

 
155

 
—

 
101,419

Less provision for loan losses
—

 
—

 
—

 
—

 
5,000

 
—

 
—

 
5,000

Net interest income (loss) after provision for loan losses
9

 
—

 
—

 
9

 
96,255

 
155

 
—

 
96,419

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
60,078

 
—

 
—

 
60,078

 
—

 
—

 
—

 
60,078

Intersegment servicing revenue
13,903

 
—

 
—

 
13,903

 
—

 
—

 
(13,903
)
 
—

Tuition payment processing and campus commerce revenue
—

 
18,356

 
—

 
18,356

 
—

 
—

 
—

 
18,356

Enrollment services revenue
—

 
—

 
24,823

 
24,823

 
—

 
—

 
—

 
24,823

Other income
—

 
—

 
—

 
—

 
3,030

 
9,258

 
—

 
12,288

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
7,355

 
—

 
—

 
7,355

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
43,096

 
5,449

 
—

 
48,545

Derivative settlements, net
—

 
—

 
—

 
—

 
(7,845
)
 
(512
)
 
—

 
(8,357
)
Total other income (expense)
73,981

 
18,356

 
24,823

 
117,160

 
45,636

 
14,195

 
(13,903
)
 
163,088

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
28,091

 
9,427

 
4,809

 
42,327

 
592

 
4,513

 
—

 
47,432

Cost to provide enrollment services
—

 
—

 
16,787

 
16,787

 
—

 
—

 
—

 
16,787

Depreciation and amortization
2,731

 
1,132

 
61

 
3,924

 
—

 
396

 
—

 
4,320

Other
18,031

 
2,192

 
1,243

 
21,466

 
7,923

 
4,976

 
—

 
34,365

Intersegment expenses, net
851

 
1,494

 
1,130

 
3,475

 
14,108

 
(3,680
)
 
(13,903
)
 
—

Total operating expenses
49,704

 
14,245

 
24,030

 
87,979

 
22,623

 
6,205

 
(13,903
)
 
102,904

Income (loss) before income taxes and corporate overhead allocation
24,286

 
4,111

 
793

 
29,190

 
119,268

 
8,145

 
—

 
156,603

Corporate overhead allocation
(1,513
)
 
(504
)
 
(504
)
 
(2,521
)
 
(1,081
)
 
3,602

 
—

 
—

Income (loss) before income taxes
22,773

 
3,607

 
289

 
26,669

 
118,187

 
11,747

 
—

 
156,603

Income tax (expense) benefit
(8,655
)
 
(1,370
)
 
(109
)
 
(10,134
)
 
(44,911
)
 
299

 
—

 
(54,746
)
Net income (loss)
14,118

 
2,237

 
180

 
16,535

 
73,276

 
12,046

 
—

 
101,857

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
614

 
—

 
614

Net income (loss) attributable to Nelnet, Inc.
$
14,118

 
2,237

 
180

 
16,535

 
73,276

 
11,432

 
—

 
101,243

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2012
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
12

 
1

 
—

 
13

 
151,240

 
1,747

 
(957
)
 
152,043

Interest expense
—

 
—

 
—

 
—

 
66,017

 
2,416

 
(957
)
 
67,476

Net interest income (loss)
12

 
1

 
—

 
13

 
85,223

 
(669
)
 
—

 
84,567

Less provision for loan losses
—

 
—

 
—

 
—

 
7,000

 
—

 
—

 
7,000

Net interest income (loss) after provision for loan losses
12

 
1

 
—

 
13

 
78,223

 
(669
)
 
—

 
77,567

Other income (expense):
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
52,391

 
—

 
—

 
52,391

 
—

 
—

 
—

 
52,391

Intersegment servicing revenue
16,401

 
—

 
—

 
16,401

 
—

 
—

 
(16,401
)
 
—

Tuition payment processing and campus commerce revenue
—

 
16,834

 
—

 
16,834

 
—

 
—

 
—

 
16,834

Enrollment services revenue
—

 
—

 
29,710

 
29,710

 
—

 
—

 
—

 
29,710

Other income
—

 
—

 
—

 
—

 
3,581

 
5,219

 
—

 
8,800

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
935

 
—

 
—

 
935

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
(10,053
)
 
(9,479
)
 
—

 
(19,532
)
Derivative settlements, net
—

 
—

 
—

 
—

 
(1,339
)
 
(747
)
 
—

 
(2,086
)
Total other income (expense)
68,792

 
16,834

 
29,710

 
115,336

 
(6,876
)
 
(5,007
)
 
(16,401
)
 
87,052

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
28,905

 
8,575

 
6,161

 
43,641

 
542

 
4,520

 
—

 
48,703

Cost to provide enrollment services
—

 
—

 
20,374

 
20,374

 
—

 
—

 
—

 
20,374

Depreciation and amortization
4,525

 
1,731

 
1,617

 
7,873

 
—

 
353

 
—

 
8,226

Other
17,539

 
2,456

 
1,745

 
21,740

 
3,120

 
6,048

 
—

 
30,908

Intersegment expenses, net
1,185

 
1,330

 
976

 
3,491

 
16,635

 
(3,725
)
 
(16,401
)
 
—

Total operating expenses
52,154

 
14,092

 
30,873

 
97,119

 
20,297

 
7,196

 
(16,401
)
 
108,211

Income (loss) before income taxes and corporate overhead allocation
16,650

 
2,743

 
(1,163
)
 
18,230

 
51,050

 
(12,872
)
 
—

 
56,408

Corporate overhead allocation
(1,275
)
 
(425
)
 
(425
)
 
(2,125
)
 
(1,400
)
 
3,525

 
—

 
—

Income (loss) before income taxes
15,375

 
2,318

 
(1,588
)
 
16,105

 
49,650

 
(9,347
)
 
—

 
56,408

Income tax (expense) benefit
(5,843
)
 
(881
)
 
603

 
(6,121
)
 
(18,866
)
 
10,109

 
—

 
(14,878
)
Net income (loss)
9,532

 
1,437

 
(985
)
 
9,984

 
30,784

 
762

 
—

 
41,530

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
136

 
—

 
136

Net income (loss) attributable to Nelnet, Inc.
$
9,532

 
1,437

 
(985
)
 
9,984

 
30,784

 
626

 
—

 
41,394

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 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
$
19

 
—

 
—

 
19

 
313,829

 
4,507

 
(1,653
)
 
316,702

Interest expense
—

 
—

 
—

 
—

 
114,402

 
3,736

 
(1,653
)
 
116,485

Net interest income (loss)
19

 
—

 
—

 
19

 
199,427

 
771

 
—

 
200,217

Less provision for loan losses
—

 
—

 
—

 
—

 
10,000

 
—

 
—

 
10,000

Net interest income (loss) after provision for loan losses
19

 
—

 
—

 
19

 
189,427

 
771

 
—

 
190,217

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
115,679

 
—

 
—

 
115,679

 
—

 
—

 
—

 
115,679

Intersegment servicing revenue
28,856

 
—

 
—

 
28,856

 
—

 
—

 
(28,856
)
 
—

Tuition payment processing and campus commerce revenue
—

 
41,767

 
—

 
41,767

 
—

 
—

 
—

 
41,767

Enrollment services revenue
—

 
—

 
53,780

 
53,780

 
—

 
—

 
—

 
53,780

Other income
—

 
—

 
—

 
—

 
7,226

 
14,478

 
—

 
21,704

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
8,762

 
—

 
—

 
8,762

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
48,371

 
9,430

 
—

 
57,801

Derivative settlements, net
—

 
—

 
—

 
—

 
(15,384
)
 
(1,157
)
 
—

 
(16,541
)
Total other income (expense)
144,535

 
41,767

 
53,780

 
240,082

 
48,975

 
22,751

 
(28,856
)
 
282,952

Operating expenses:
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Salaries and benefits
56,535

 
18,786

 
10,576

 
85,897

 
1,154

 
8,286

 
—

 
95,337

Cost to provide enrollment services
—

 
—

 
36,429

 
36,429

 
—

 
—

 
—

 
36,429

Depreciation and amortization
5,520

 
2,270

 
122

 
7,912

 
—

 
785

 
—

 
8,697

Other
36,421

 
4,479

 
2,894

 
43,794

 
15,436

 
10,076

 
—

 
69,306

Intersegment expenses, net
1,786

 
2,919

 
2,279

 
6,984

 
29,250

 
(7,378
)
 
(28,856
)
 
—

Total operating expenses
100,262

 
28,454

 
52,300

 
181,016

 
45,840

 
11,769

 
(28,856
)
 
209,769

Income (loss) before income taxes and corporate overhead allocation
44,292

 
13,313

 
1,480

 
59,085

 
192,562

 
11,753

 
—

 
263,400

Corporate overhead allocation
(2,510
)
 
(836
)
 
(836
)
 
(4,182
)
 
(1,793
)
 
5,975

 
—

 
—

Income (loss) before income taxes
41,782

 
12,477

 
644

 
54,903

 
190,769

 
17,728

 
—

 
263,400

Income tax (expense) benefit
(15,878
)
 
(4,741
)
 
(244
)
 
(20,863
)
 
(72,492
)
 
162

 
—

 
(93,193
)
Net income (loss)
25,904

 
7,736

 
400

 
34,040

 
118,277

 
17,890

 
—

 
170,207

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
885

 
—

 
885

Net income (loss) attributable to Nelnet, Inc.
$
25,904

 
7,736

 
400

 
34,040

 
118,277

 
17,005

 
—

 
169,322

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2012
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
32

 
5

 
—

 
37

 
304,752

 
3,335

 
(1,928
)
 
306,196

Interest expense
—

 
—

 
—

 
—

 
134,846

 
3,855

 
(1,928
)
 
136,773

Net interest income (loss)
32

 
5

 
—

 
37

 
169,906

 
(520
)
 
—

 
169,423

Less provision for loan losses
—

 
—

 
—

 
—

 
13,000

 
—

 
—

 
13,000

Net interest income (loss) after provision for loan losses
32

 
5

 
—

 
37

 
156,906

 
(520
)
 
—

 
156,423

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
101,879

 
—

 
—

 
101,879

 
—

 
—

 
—

 
101,879

Intersegment servicing revenue
33,355

 
—

 
—

 
33,355

 
—

 
—

 
(33,355
)
 
—

Tuition payment processing and campus commerce revenue
—

 
38,747

 
—

 
38,747

 
—

 
—

 
—

 
38,747

Enrollment services revenue
—

 
—

 
61,374

 
61,374

 
—

 
—

 
—

 
61,374

Other income
—

 
—

 
—

 
—

 
8,581

 
11,173

 
—

 
19,754

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
935

 
—

 
—

 
935

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
(31,657
)
 
(3,282
)
 
—

 
(34,939
)
Derivative settlements, net
—

 
—

 
—

 
—

 
(1,112
)
 
(747
)
 
—

 
(1,859
)
Total other income (expense)
135,234

 
38,747

 
61,374

 
235,355

 
(23,253
)
 
7,144

 
(33,355
)
 
185,891

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
57,947

 
17,193

 
12,440

 
87,580

 
1,261

 
8,957

 
—

 
97,798

Cost to provide enrollment services
—

 
—

 
42,052

 
42,052

 
—

 
—

 
—

 
42,052

Depreciation and amortization
8,938

 
3,471

 
3,234

 
15,643

 
—

 
719

 
—

 
16,362

Other
36,205

 
5,272

 
3,701

 
45,178

 
6,752

 
11,241

 
—

 
63,171

Intersegment expenses, net
2,570

 
2,663

 
1,824

 
7,057

 
33,778

 
(7,480
)
 
(33,355
)
 
—

Total operating expenses
105,660

 
28,599

 
63,251

 
197,510

 
41,791

 
13,437

 
(33,355
)
 
219,383

Income (loss) before income taxes and corporate overhead allocation
29,606

 
10,153

 
(1,877
)
 
37,882

 
91,862

 
(6,813
)
 
—

 
122,931

Corporate overhead allocation
(2,778
)
 
(926
)
 
(926
)
 
(4,630
)
 
(2,792
)
 
7,422

 
—

 
—

Income (loss) before income taxes
26,828

 
9,227

 
(2,803
)
 
33,252

 
89,070

 
609

 
—

 
122,931

Income tax (expense) benefit
(10,195
)
 
(3,506
)
 
1,065

 
(12,636
)
 
(33,845
)
 
8,373

 
—

 
(38,108
)
Net income (loss)
16,633

 
5,721

 
(1,738
)
 
20,616

 
55,225

 
8,982

 
—

 
84,823

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
288

 
—

 
288

Net income (loss) attributable to Nelnet, Inc.
$
16,633

 
5,721

 
(1,738
)
 
20,616

 
55,225

 
8,694

 
—

 
84,535

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

The Company earns loan servicing revenue from a servicing contract with the Department that spans five years (through June 2014).  Revenue earned by the Company's Student Loan and Guaranty Servicing operating segment related to this contract was $22.1 million and $16.1 million for the three months ended June 30, 2013 and 2012, respectively, and $42.5 million and $30.9 million for the six months ended June 30, 2013, and 2012, respectively. The Department has the option to renew the contract for an additional five years, and although the Company currently anticipates that the Department will exercise its option to renew the servicing contract for five years at the end of the current term in 2014, there can be no assurance of such renewal. 
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 the consolidated financial statements included in the Company's 2012 Annual Report.  The following provides an update for related party transactions that have occurred during the first six months of 2013.

On February 1, 2013, WRCM established a third private investment fund (“SLABS Fund III”) for the primary purpose of investing and trading in student loan asset-backed securities, and engaging in financial transactions related thereto.  The initial amount invested in SLABS Fund III was $34.5 million, and Michael S. Dunlap, Chief Executive Officer, Chairman, and a significant shareholder of the Company, Angela L. Muhleisen (who is a sister of Mr. Dunlap, as well as Director, Chairperson, President, and Chief Executive Officer of Union Bank and Trust Company ("Union Bank"), an entity under common control with the Company), and WRCM had investments in the fund in the amounts of $3.0 million, $2.0 million, and $0.1 million, respectively.  The management agreement for the fund provides non-affiliated limited partners the ability to remove WRCM as manager of the fund without cause. WRCM earns 50 basis points (annually) from SLABS Fund III on the outstanding balance of the investments in the fund, of which WRCM pays approximately 50 percent of such amount to Union Bank as custodian.  In addition, WRCM earns up to 50 percent of the gains from the sale of securities from the fund.  As of June 30, 2013, the outstanding balance of investments in SLABS Fund III was $34.6 million.

During the second quarter 2013, the Company purchased an aircraft for total consideration of $5.8 million and sold an interest in such aircraft to Union Financial Services, Inc. ("UFS") for $2.0 million. After the completion of this transaction, the Company and UFS own 65 percent and 35 percent of the aircraft, respectively. UFS is owned 50 percent by Mr. Dunlap and 50 percent by Stephen F. Butterfield, Vice Chairman and a member of the Board of Directors of the Company.
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 six months ended June 30, 2013.
 
As of June 30, 2013
 
As of December 31, 2012
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 


 
 
 
 
 
 
Student loan asset-backed securities
$
—

 
173,303

 
173,303

 
—

 
77,652

 
77,652

Equity securities
3,407

 
—

 
3,407

 
4,873

 
—

 
4,873

Debt securities
531

 
—

 
531

 
787

 
—

 
787

Total investments
3,938

 
173,303

 
177,241

 
5,660

 
77,652

 
83,312

Fair value of derivative instruments
—

 
98,996

 
98,996

 
—

 
97,441

 
97,441

Total assets
$
3,938

 
272,299

 
276,237

 
5,660

 
175,093

 
180,753

Liabilities:
 

 
 

 
 

 
 
 
 
 
 
Fair value of derivative instruments
$
—

 
24,897

 
24,897

 
—

 
70,890

 
70,890

Total liabilities
$
—

 
24,897

 
24,897

 
—

 
70,890

 
70,890


The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 
As of June 30, 2013
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
25,230,818

 
24,575,636

 
—

 
—

 
25,230,818

Cash and cash equivalents
68,584

 
68,584

 
68,584

 
—

 
—

Investments
177,241

 
177,241

 
3,938

 
173,303

 
—

Restricted cash
671,342

 
671,342

 
671,342

 
—

 
—

Restricted cash – due to customers
84,182

 
84,182

 
84,182

 
—

 
—

Restricted investments
8,385

 
8,385

 
8,385

 
—

 
—

Accrued interest receivable
296,538

 
296,538

 
—

 
296,538

 
—

Derivative instruments
98,996

 
98,996

 
—

 
98,996

 
—

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
24,253,072

 
24,690,952

 
—

 
24,253,072

 
—

Accrued interest payable
14,760

 
14,760

 
—

 
14,760

 
—

Due to customers
84,182

 
84,182

 
84,182

 
—

 
—

Derivative instruments
24,897

 
24,897

 
—

 
24,897

 
—

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

 
24,830,621

 
—

 
—

 
25,418,623

Cash and cash equivalents
66,031

 
66,031

 
66,031

 
—

 
—

Investments
83,312

 
83,312

 
5,660

 
77,652

 
—

Restricted cash
806,632

 
806,632

 
806,632

 
—

 
—

Restricted cash – due to customers
96,516

 
96,516

 
96,516

 
—

 
—

Restricted investments
8,830

 
8,830

 
8,830

 
—

 
—

Accrued interest receivable
307,518

 
307,518

 
—

 
307,518

 
—

Derivative instruments
97,441

 
97,441

 
—

 
97,441

 
—

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
24,486,008

 
25,098,835

 
—

 
24,486,008

 
—

Accrued interest payable
14,770

 
14,770

 
—

 
14,770

 
—

Due to customers
96,516

 
96,516

 
96,516

 
—

 
—

Derivative instruments
70,890

 
70,890

 
—

 
70,890

 
—


 
The methodologies for estimating the fair value of financial assets and liabilities are described in note 20 of the notes to the consolidated financial statements included in the 2012 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; and (ix) the Company's views of the merits of the claims and of the strength of the Company's defenses. In assessing whether a legal proceeding may be material, the Company considers these and other quantitative and qualitative factors, including whether disclosure of the proceeding might be important to a reader of the Company's financial statements in light of all of the information about the Company that is available to the reader.

Actions Requesting Certifications of Classes

Proceedings or complaints that involve or ask for certifications of classes generally expand the scope of legal defense costs, as well as alleged potential claim amounts. The Company is currently subject to three legal proceedings in which the plaintiffs have made allegations that one or more putative classes should be certified by the applicable court. It is significant to note that no putative class has actually been certified in any proceedings, the Company's position is that class certification would be inappropriate in each such proceeding described below, and the Company intends to vigorously contest such certification. With respect to each of the legal proceedings described below, due to the preliminary 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 a reasonably possible loss, if any, or range of reasonably possible losses, if any, 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. As of the filing date of this report, the New Jersey District Court has not established, recognized, or certified a class.

On April 14, 2012, the U.S. Court of Appeals for the Third Circuit (the "Appeals Court"), which has appellate jurisdiction over the New Jersey District Court, issued an order in an unrelated TCPA case which remanded that case to the New Jersey District Court to determine whether the statutory provisions of the TCPA limit whether or to what extent a TCPA claim can be heard as a class action in federal court where applicable state law would impose limitations on a class action if the claim were brought in state court. The New Jersey District Court denied a subsequent motion by Peterson's to dismiss the complaint, but granted a motion enabling Peterson's to file a petition for permission to seek an interim appeal with the Appeals Court regarding questions of law that may affect the outcome of the case, which petition the Appeals Court denied on May 8, 2013. Peterson's intends to continue to contest the suit vigorously.

•
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 “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 adds additional allegations claiming that Nelnet violated Section 632 of the California Penal Code by allegedly recording one or more telephone calls to plaintiff without plaintiff's consent, and seeks $5,000 in statutory damages per alleged violation. The Third Amended Complaint further alleges that Nelnet improperly recorded telephone calls to other California residents without such persons' consent, and seeks to establish a class action with respect to the California Section 632 claim. As of the filing date of this report, the Court has not established, recognized, or certified a class. Nelnet has filed an answer to the Third Amended Complaint, and intends to defend itself vigorously in this lawsuit.

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

On August 6, 2012, an Amended Complaint was served on Peterson's, CUnet, LLC (“CUnet”), a subsidiary of Nelnet, and on Nelnet (collectively, the "Defendants"), in connection with a lawsuit by Grant Keating in the United States District Court for the Northern District of Ohio (the “Ohio District Court”). The lawsuit was originally instituted on August 24, 2011, and alleges that that the Defendants sent an advertising text message to the named plaintiff in June 2011 using an automatic telephone dialing system, and without the Plaintiff's express consent. The complaint also alleges that this text message violated the TCPA, purportedly entitling the plaintiff to $500, trebled for a willful violation. The complaint further alleges that the Defendants sent putative class members similar text messages using an automatic telephone dialing system, without such purported class members' consent. The complaint seeks to establish a class action. As of the filing date of this report, the Ohio District Court has not established, recognized, or certified a class. The Defendants have filed answers to the Amended Complaint, and intend to defend themselves vigorously in this lawsuit.
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 June 30, 2013 and for the three and six months ended June 30, 2013 and 2012 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2012 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 and six months ended June 30, 2013 are not necessarily indicative of the results for the year ending December 31, 2013. 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, 2012 (the "2012 Annual Report").
Student Loans Receivable and Allowance for Loan Losses (Tables)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2013
Receivables [Abstract]
 
 
Schedule of Accounts, Notes, Loans and Financing Receivable
Text Block 
 
Allowance for Credit Losses on Financing Receivables
Text Block 
 
Accrual Related to Repurchase Obligation Rollforward
Text Block 
 
Financing Receivable Credit Quality Indicators
 
Text Block 
Schedule of Accounts, Notes, Loans and Financing Receivable 
Student loans receivable consisted of the following:
 
As of
 
As of
 
June 30, 2013
 
December 31, 2012
Federally insured loans
 
 
 
Stafford and other
$
7,010,404

 
7,261,114

Consolidation
17,678,330

 
17,708,732

Total
24,688,734

 
24,969,846

Non-federally insured loans
29,634

 
26,034

 
24,718,368

 
24,995,880

Loan discount, net of unamortized loan premiums and deferred origination costs
(91,121
)
 
(113,357
)
Allowance for loan losses – federally insured loans
(39,848
)
 
(40,120
)
Allowance for loan losses – non-federally insured loans
(11,763
)
 
(11,782
)
 
$
24,575,636

 
24,830,621

Allowance for federally insured loans as a percentage of such loans
0.16
%
 
0.16
%
Allowance for non-federally insured loans as a percentage of such loans
39.69
%
 
45.26
%
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 June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Balance at beginning of period
$
49,409

 
48,435

 
51,902

 
48,482

Provision for loan losses:
 
 
 
 
 

 
 

Federally insured loans
5,000

 
7,000

 
11,000

 
13,000

Non-federally insured loans
—

 
—

 
(1,000
)
 
—

Total provision for loan losses
5,000

 
7,000

 
10,000

 
13,000

Charge-offs:
 

 
 

 
 

 
 

Federally insured loans
(3,340
)
 
(5,999
)
 
(9,330
)
 
(11,494
)
Non-federally insured loans
(592
)
 
(528
)
 
(1,364
)
 
(1,297
)
Total charge-offs
(3,932
)
 
(6,527
)
 
(10,694
)
 
(12,791
)
Recoveries - non-federally insured loans
442

 
354

 
810

 
705

Purchase (sale) of federally insured loans, net
275

 
(792
)
 
(1,943
)
 
(1,719
)
Transfer from repurchase obligation related to non-federally insured loans purchased, net
417

 
1,187

 
1,536

 
1,980

Balance at end of period
$
51,611

 
49,657

 
51,611

 
49,657

 
 
 
 
 
 
 
 
Allocation of the allowance for loan losses:
 
 
 

 
 

 
 

Federally insured loans
$
39,848

 
36,992

 
39,848

 
36,992

Non-federally insured loans
11,763

 
12,665

 
11,763

 
12,665

Total allowance for loan losses
$
51,611

 
49,657

 
51,611

 
49,657


Accrual Related to Repurchase Obligation Rollforward 
As of June 30, 2013, the Company had participated a cumulative amount of $98.7 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 June 30, 2013, the balance of this portfolio was $68.3 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 June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Beginning balance
$
15,011

 
18,430

 
16,130

 
19,223

Repurchase obligation transferred to the allowance for loan losses related to loans purchased, net
(417
)
 
(1,187
)
 
(1,536
)
 
(1,980
)
Ending balance
$
14,594

 
17,243

 
14,594

 
17,243


Financing Receivable Credit Quality Indicators 
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 rehabilitated loans purchased in the following delinquency tables.

 
As of June 30, 2013
 
As of December 31, 2012
 
As of June 30, 2012
Federally insured loans, excluding rehabilitation loans purchased:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
2,753,719

 
 
 
$
2,949,320

 
 
 
$
3,299,197

 
 
Loans in forbearance
2,930,795

 
 
 
2,992,023

 
 
 
3,095,648

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
14,357,812

 
87.7
%
 
14,583,044

 
87.6
%
 
14,238,827

 
87.1
%
Loans delinquent 31-60 days
599,846

 
3.7

 
652,351

 
3.9

 
612,302

 
3.7

Loans delinquent 61-90 days
404,256

 
2.5

 
330,885

 
2.0

 
371,558

 
2.3

Loans delinquent 91-120 days
204,975

 
1.3

 
247,381

 
1.5

 
195,926

 
1.2

Loans delinquent 121-270 days
600,018

 
3.7

 
603,942

 
3.6

 
649,113

 
4.0

Loans delinquent 271 days or greater
187,615

 
1.1

 
220,798

 
1.4

 
279,926

 
1.7

Total loans in repayment
16,354,522

 
100.0
%
 
16,638,401

 
100.0
%
 
16,347,652

 
100.0
%
Total federally insured loans, excluding rehabilitation loans purchased
$
22,039,036

 
 

 
$
22,579,744

 
 

 
$
22,742,497

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rehabilitation loans purchased:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
230,076

 
 
 
$
150,317

 
 
 
$
80,405

 
 
Loans in forbearance
389,306

 
 
 
330,278

 
 
 
127,377

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
997,567

 
49.1
%
 
670,205

 
35.1
%
 
408,224

 
68.0
%
Loans delinquent 31-60 days
176,731

 
8.7

 
113,795

 
6.0

 
55,470

 
9.2

Loans delinquent 61-90 days
127,083

 
6.3

 
79,691

 
4.2

 
37,733

 
6.3

Loans delinquent 91-120 days
86,757

 
4.3

 
186,278

 
9.8

 
20,953

 
3.5

Loans delinquent 121-270 days
416,553

 
20.5

 
633,001

 
33.1

 
52,501

 
8.7

Loans delinquent 271 days or greater
225,625

 
11.1

 
226,537

 
11.8

 
25,964

 
4.3

Total loans in repayment
2,030,316

 
100.0
%
 
1,909,507

 
100.0
%
 
600,845

 
100.0
%
Total rehabilitation loans purchased
2,649,698

 
 
 
2,390,102

 
 
 
808,627

 
 
Total federally insured loans
$
24,688,734

 
 
 
$
24,969,846

 
 
 
$
23,551,124

 
 


Bonds and Notes payable (Tables)
Schedule of Debt 
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
As of June 30, 2013
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
22,773,607

 
0.28% - 6.90%
 
11/25/15 - 8/26/52
Bonds and notes based on auction or remarketing
905,850

 
0.09% - 2.10%
 
5/1/28 - 5/25/42
Total variable-rate bonds and notes
23,679,457

 
 
 
 
FFELP warehouse facilities
1,029,005

 
0.19% - 0.27%
 
4/2/15 - 6/12/16
Unsecured line of credit
—

 
—
 
3/28/18
Unsecured debt - Junior Subordinated Hybrid Securities
99,232

 
3.65%
 
9/15/61
Other borrowings
61,853

 
1.69% - 5.10%
 
11/14/13 - 11/11/15
 
24,869,547

 
 
 
 
Discount on bonds and notes payable
(178,595
)
 
 
 
 
Total
$
24,690,952

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

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

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

 
 
 
 
FFELP warehouse facilities
1,554,151

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

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

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

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

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

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

 
 
 
 
Schedule of Line of Credit Facilities 
As of June 30, 2013, the Company had four FFELP warehouse facilities as summarized below.
 
 
NHELP-I
 
NHELP-III (a)
 
NHELP-II (b)
 
NFSLW-I (c)
 
Total
Maximum financing amount
 
$
500,000

 
500,000

 
500,000

 
500,000

 
2,000,000

Amount outstanding
 
172,486

 
315,730

 
257,556

 
283,233

 
1,029,005

Amount available
 
$
327,514

 
184,270

 
242,444

 
216,767

 
970,995

Expiration of liquidity provisions
 
October 2, 2013

 
January 16, 2014

 
February 28, 2014

 
June 12, 2014

 
 
Final maturity date
 
April 2, 2015

 
January 17, 2016

 
February 28, 2016

 
June 12, 2016

 
 
Maximum advance rates
 
80.0 - 100.0%

 
92.2 - 95.0%

 
84.5 - 94.5%

 
92.0 - 98.0%

 
 
Minimum advance rates
 
80.0 - 95.0%

 
92.2 - 95.0%

 
84.5 - 94.5%

 
84.0 - 90.0%

 
 
Advanced as equity support
 
$
4,866

 
16,346

 
26,524

 
13,543

 
61,279

(a)
The Company entered into this facility on January 16, 2013.
(b)
On June 3, 2013, the Company amended this facility to change the terms of the advance rates.

(c)
On June 13, 2013, the Company amended this facility to change the terms of the advance rates and extend the expiration of the liquidity provisions and its final maturity date.

Schedule of asset-backed securitizations [Table Text Block] 
The following table summarizes the asset-backed securitization transactions completed during the six months ended June 30, 2013.
 
 
2013-1
 
2013-2 (a)
 
2013-3
 
2013-4
 
Total
Date securities issued
 
1/31/13
 
2/28/13
 
4/30/13
 
6/21/13
 
 
Total original principal amount
 
$
437,500

 
1,122,000

 
765,000

 
453,000

 
$
2,777,500

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

 
1,122,000

 
745,000

 
440,000

 
2,735,000

Bond discount
 
—

 
(3,325
)
 
—

 
(1,690
)
 
(5,015
)
Issue price
 
$
428,000

 
1,118,675

 
745,000

 
438,310

 
2,729,985

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

 
7/25/40

 
2/25/37

 
12/26/42

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

 
 
 
20,000

 
13,000

 
42,500

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

 
 
 
18,238

 
11,196

 
37,409

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

 
 
 
7/25/47

 
1/25/47

 
 

(a)
Total original principal amount excludes the Class B subordinated tranche totaling $34.0 million that was retained at issuance. 

During the second quarter 2013, the Company sold $61.6 million (face amount) of its Class B subordinated notes that were retained at issuance from prior completed asset-backed securitizations for total proceeds of $55.2 million.  Upon sale, these notes were recognized in the consolidated balance sheet in an amount equal to the cash proceeds received.   The difference between the face amount and the proceeds received for these bonds ($6.4 million) was recorded as bond discount and will be recognized as interest expense over the remaining life of the bonds.  After the completion of these sales, the Company has $76.5 million (face amount) of its own Class B subordinated notes remaining that are not included in the Company's consolidated balance sheet.
Derivative Financial Instruments (Tables)
Interest Rate Swaps - 1:3 Basis swaps 
The following table summarizes the Company’s 1:3 Basis Swaps outstanding:
 
 
 
 
 
As of June 30, 2013
 
As of December 31, 2012
 
 
Maturity
 
Notional amount
 
Notional amount
 
 
2021
 
 
$
250,000

 
$
250,000

 
 
2022
 
 
1,900,000

 
1,900,000

 
 
2023
 
 
3,650,000

 
3,150,000

 
 
2024
 
 
250,000

 
250,000

 
 
2026
 
 
800,000

 
800,000

 
 
2028
 
 
100,000

 
100,000

 
 
2036
 
 
700,000

 
700,000

 
 
2039
(a)
 
150,000

 
150,000

 
 
2040
(b)
 
200,000

 
200,000

 
 
 
 
 
$
8,000,000

(c)
$
7,500,000

(c)
(a)This derivative has a forward effective start date in 2015.
(b)This derivative has a forward effective start date in 2020.
(c)
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of June 30, 2013 and December 31, 2012, was one-month LIBOR plus 3.5 basis points and one-month LIBOR plus 3.3 basis points, respectively.
Interest Rate Swaps - Floor Income Hedges 
The following table summarizes the outstanding derivative instruments used by the Company to economically hedge a majority of loans earning fixed rate floor income.
 
 
As of June 30, 2013
 
As of December 31, 2012
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
2013
 
$
2,000,000

 
0.71
%
 
$
3,150,000

 
0.71
%
2014
 
1,750,000

 
0.71

 
1,750,000

 
0.71

2015
 
1,100,000

 
0.89

 
1,100,000

 
0.89

2016
 
750,000

 
0.85

 
750,000

 
0.85

2017
 
1,250,000

 
0.86

 
750,000

 
0.99

 
 
$
6,850,000

 
0.78
%
 
$
7,500,000

 
0.78
%

(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 that are used to effectively convert the variable interest rate on a substantial portion of the Hybrid Securities to a fixed rate of 7.7%.
 
 
 
As of June 30, 2013
 
As of December 31, 2012
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
50,000

 
4.32
%
 
$
75,000

 
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 
The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instruments.
 
Three months ended June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Re-measurement of Euro Notes
$
(14,691
)
 
59,226

 
14,072

 
26,984

Change in fair value of cross currency interest rate swaps
14,748

 
(62,546
)
 
(20,096
)
 
(49,520
)
Total impact to consolidated statements of income - income (expense) (a)
$
57

 
(3,320
)
 
(6,024
)
 
(22,536
)
(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.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value 
The following table summarizes the fair value of the Company’s derivatives as reflected in the consolidated balance sheet:
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of
 
As of
 
As of
 
As of
 
June 30,
2013
 
December 31,
2012
 
June 30,
2013
 
December 31,
2012
1:3 basis swaps
$
22,587

 
12,239

 
—

 
1,215

Interest rate swaps - floor income hedges
13,664

 
—

 
16,220

 
45,913

Interest rate swaps - hybrid debt hedges
—

 
—

 
8,677

 
23,762

Cross-currency interest rate swaps
62,745


82,841

 
—

 
—

Other
—

 
2,361

 
—

 
—

Total
$
98,996

 
97,441

 
24,897

 
70,890



Schedule of Derivative Instruments [Table Text Block] 
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 sheet
 
 
Derivative assets
 
Gross amounts of recognized assets presented in the consolidated balance sheet
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral received (a)
 
Net asset (liability)
Balance as of June 30, 2013
 
$
98,996

 
(20,297
)
 
(64,417
)
 
14,282

Balance as of December 31, 2012
 
97,441

 
(13,234
)
 
(19,993
)
 
64,214


 
 
 
 
Gross amounts not offset in the consolidated balance sheet
 
 
Derivative liabilities
 
Gross amounts of recognized liabilities presented in the consolidated balance sheet
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral pledged (b)
 
Net asset (liability)
Balance as of June 30, 2013
 
$
(24,897
)
 
20,297

 
4,810

 
210

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

 
63,128

 
5,472

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 June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Settlements:
 

 
 

 
 

 
 

1:3 basis swaps
$
782

 
1,169

 
1,692

 
2,551

Interest rate swaps - floor income hedges
(8,534
)
 
(3,505
)
 
(16,839
)
 
(6,642
)
Interest rate swaps - hybrid debt hedges
(512
)
 
(723
)
 
(1,157
)
 
(746
)
Cross-currency interest rate swaps
(93
)
 
1,055

 
(237
)
 
3,163

Other
—

 
(82
)
 
—

 
(185
)
Total settlements - income (expense)
(8,357
)
 
(2,086
)
 
(16,541
)
 
(1,859
)
Change in fair value:
 

 
 

 
 

 
 

1:3 basis swaps
9,630

 
(428
)
 
11,563

 
2,574

Interest rate swaps - floor income hedges
33,408

 
(6,143
)
 
42,830

 
(11,778
)
Interest rate swaps - hybrid debt hedges
5,450

 
(8,783
)
 
9,090

 
(2,585
)
Cross-currency interest rate swaps
14,748

 
(62,546
)
 
(20,096
)
 
(49,520
)
Other
—

 
(858
)
 
342

 
(614
)
Total change in fair value - income (expense)
63,236

 
(78,758
)
 
43,729

 
(61,923
)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
(14,691
)
 
59,226

 
14,072

 
26,984

Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense)
$
40,188

 
(21,618
)
 
41,260

 
(36,798
)

Investments (Tables)
Summary Investment Holdings 
A summary of the Company's investments and restricted investments follows:
 
As of June 30, 2013
 
As of December 31, 2012
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses (a)
 
Fair value
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities (b)
$
161,051

 
5,931

 
(3,173
)
 
163,809

 
64,970

 
3,187

 
(179
)
 
67,978

Equity securities
2,043

 
1,392

 
(28
)
 
3,407

 
3,449

 
1,604

 
(180
)
 
4,873

Total available-for-sale investments
$
163,094

 
7,323

 
(3,201
)
 
167,216

 
68,419

 
4,791

 
(359
)
 
72,851

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities
 
 
 
 
 
 
10,025

 
 
 
 
 
 
 
10,461

Total available-for-sale and trading investments

 

 

 
$
177,241

 
 
 
 
 


 
83,312

Restricted Investments (c):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts - held-to-maturity
 
 
 
 
 
 
$
8,385

 
 
 
 
 
 
 
8,830


    
(a)
As of June 30, 2013, the Company considered the decline in market value of its available-for-sale investments to be temporary in nature and did not consider any of its investments other-than-temporarily impaired.

(b)
As of June 30, 2013, 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 June 30,
 
Six months ended June 30,
Affected line item in the consolidated statements of income - income (expense):
 
2013
 
2012
 
2013
 
2012
Other income
 
$
559

 
966

 
1,516

 
2,214

Income tax expense
 
(207
)
 
(357
)
 
(561
)
 
(819
)
Net
 
$
352

 
609

 
955

 
1,395

Earnings per Common Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
 
Three months ended June 30,
 
2013
 
2012
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
100,339

 
904

 
101,243

 
41,058

 
336

 
41,394

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,210,571

 
416,282

 
46,626,853

 
47,049,055

 
385,860

 
47,434,915

Earnings per share - basic and diluted
$
2.17

 
2.17

 
2.17

 
0.87

 
0.87

 
0.87



 
Six months ended June 30,
 
2013
 
2012
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
167,868

 
1,454

 
169,322

 
83,916

 
619

 
84,535

 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,241,277

 
401,079

 
46,642,356

 
47,020,811

 
348,965

 
47,369,776

Earnings per share - basic and diluted
$
3.63

 
3.63

 
3.63

 
1.78

 
1.78

 
1.78

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

The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.
 
Three months ended June 30, 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
$
9

 
—

 
—

 
9

 
158,175

 
2,196

 
(834
)
 
159,546

Interest expense
—

 
—

 
—

 
—

 
56,920

 
2,041

 
(834
)
 
58,127

Net interest income (loss)
9

 
—

 
—

 
9

 
101,255

 
155

 
—

 
101,419

Less provision for loan losses
—

 
—

 
—

 
—

 
5,000

 
—

 
—

 
5,000

Net interest income (loss) after provision for loan losses
9

 
—

 
—

 
9

 
96,255

 
155

 
—

 
96,419

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
60,078

 
—

 
—

 
60,078

 
—

 
—

 
—

 
60,078

Intersegment servicing revenue
13,903

 
—

 
—

 
13,903

 
—

 
—

 
(13,903
)
 
—

Tuition payment processing and campus commerce revenue
—

 
18,356

 
—

 
18,356

 
—

 
—

 
—

 
18,356

Enrollment services revenue
—

 
—

 
24,823

 
24,823

 
—

 
—

 
—

 
24,823

Other income
—

 
—

 
—

 
—

 
3,030

 
9,258

 
—

 
12,288

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
7,355

 
—

 
—

 
7,355

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
43,096

 
5,449

 
—

 
48,545

Derivative settlements, net
—

 
—

 
—

 
—

 
(7,845
)
 
(512
)
 
—

 
(8,357
)
Total other income (expense)
73,981

 
18,356

 
24,823

 
117,160

 
45,636

 
14,195

 
(13,903
)
 
163,088

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
28,091

 
9,427

 
4,809

 
42,327

 
592

 
4,513

 
—

 
47,432

Cost to provide enrollment services
—

 
—

 
16,787

 
16,787

 
—

 
—

 
—

 
16,787

Depreciation and amortization
2,731

 
1,132

 
61

 
3,924

 
—

 
396

 
—

 
4,320

Other
18,031

 
2,192

 
1,243

 
21,466

 
7,923

 
4,976

 
—

 
34,365

Intersegment expenses, net
851

 
1,494

 
1,130

 
3,475

 
14,108

 
(3,680
)
 
(13,903
)
 
—

Total operating expenses
49,704

 
14,245

 
24,030

 
87,979

 
22,623

 
6,205

 
(13,903
)
 
102,904

Income (loss) before income taxes and corporate overhead allocation
24,286

 
4,111

 
793

 
29,190

 
119,268

 
8,145

 
—

 
156,603

Corporate overhead allocation
(1,513
)
 
(504
)
 
(504
)
 
(2,521
)
 
(1,081
)
 
3,602

 
—

 
—

Income (loss) before income taxes
22,773

 
3,607

 
289

 
26,669

 
118,187

 
11,747

 
—

 
156,603

Income tax (expense) benefit
(8,655
)
 
(1,370
)
 
(109
)
 
(10,134
)
 
(44,911
)
 
299

 
—

 
(54,746
)
Net income (loss)
14,118

 
2,237

 
180

 
16,535

 
73,276

 
12,046

 
—

 
101,857

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
614

 
—

 
614

Net income (loss) attributable to Nelnet, Inc.
$
14,118

 
2,237

 
180

 
16,535

 
73,276

 
11,432

 
—

 
101,243

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2012
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
12

 
1

 
—

 
13

 
151,240

 
1,747

 
(957
)
 
152,043

Interest expense
—

 
—

 
—

 
—

 
66,017

 
2,416

 
(957
)
 
67,476

Net interest income (loss)
12

 
1

 
—

 
13

 
85,223

 
(669
)
 
—

 
84,567

Less provision for loan losses
—

 
—

 
—

 
—

 
7,000

 
—

 
—

 
7,000

Net interest income (loss) after provision for loan losses
12

 
1

 
—

 
13

 
78,223

 
(669
)
 
—

 
77,567

Other income (expense):
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
52,391

 
—

 
—

 
52,391

 
—

 
—

 
—

 
52,391

Intersegment servicing revenue
16,401

 
—

 
—

 
16,401

 
—

 
—

 
(16,401
)
 
—

Tuition payment processing and campus commerce revenue
—

 
16,834

 
—

 
16,834

 
—

 
—

 
—

 
16,834

Enrollment services revenue
—

 
—

 
29,710

 
29,710

 
—

 
—

 
—

 
29,710

Other income
—

 
—

 
—

 
—

 
3,581

 
5,219

 
—

 
8,800

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
935

 
—

 
—

 
935

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
(10,053
)
 
(9,479
)
 
—

 
(19,532
)
Derivative settlements, net
—

 
—

 
—

 
—

 
(1,339
)
 
(747
)
 
—

 
(2,086
)
Total other income (expense)
68,792

 
16,834

 
29,710

 
115,336

 
(6,876
)
 
(5,007
)
 
(16,401
)
 
87,052

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
28,905

 
8,575

 
6,161

 
43,641

 
542

 
4,520

 
—

 
48,703

Cost to provide enrollment services
—

 
—

 
20,374

 
20,374

 
—

 
—

 
—

 
20,374

Depreciation and amortization
4,525

 
1,731

 
1,617

 
7,873

 
—

 
353

 
—

 
8,226

Other
17,539

 
2,456

 
1,745

 
21,740

 
3,120

 
6,048

 
—

 
30,908

Intersegment expenses, net
1,185

 
1,330

 
976

 
3,491

 
16,635

 
(3,725
)
 
(16,401
)
 
—

Total operating expenses
52,154

 
14,092

 
30,873

 
97,119

 
20,297

 
7,196

 
(16,401
)
 
108,211

Income (loss) before income taxes and corporate overhead allocation
16,650

 
2,743

 
(1,163
)
 
18,230

 
51,050

 
(12,872
)
 
—

 
56,408

Corporate overhead allocation
(1,275
)
 
(425
)
 
(425
)
 
(2,125
)
 
(1,400
)
 
3,525

 
—

 
—

Income (loss) before income taxes
15,375

 
2,318

 
(1,588
)
 
16,105

 
49,650

 
(9,347
)
 
—

 
56,408

Income tax (expense) benefit
(5,843
)
 
(881
)
 
603

 
(6,121
)
 
(18,866
)
 
10,109

 
—

 
(14,878
)
Net income (loss)
9,532

 
1,437

 
(985
)
 
9,984

 
30,784

 
762

 
—

 
41,530

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
136

 
—

 
136

Net income (loss) attributable to Nelnet, Inc.
$
9,532

 
1,437

 
(985
)
 
9,984

 
30,784

 
626

 
—

 
41,394

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 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
$
19

 
—

 
—

 
19

 
313,829

 
4,507

 
(1,653
)
 
316,702

Interest expense
—

 
—

 
—

 
—

 
114,402

 
3,736

 
(1,653
)
 
116,485

Net interest income (loss)
19

 
—

 
—

 
19

 
199,427

 
771

 
—

 
200,217

Less provision for loan losses
—

 
—

 
—

 
—

 
10,000

 
—

 
—

 
10,000

Net interest income (loss) after provision for loan losses
19

 
—

 
—

 
19

 
189,427

 
771

 
—

 
190,217

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
115,679

 
—

 
—

 
115,679

 
—

 
—

 
—

 
115,679

Intersegment servicing revenue
28,856

 
—

 
—

 
28,856

 
—

 
—

 
(28,856
)
 
—

Tuition payment processing and campus commerce revenue
—

 
41,767

 
—

 
41,767

 
—

 
—

 
—

 
41,767

Enrollment services revenue
—

 
—

 
53,780

 
53,780

 
—

 
—

 
—

 
53,780

Other income
—

 
—

 
—

 
—

 
7,226

 
14,478

 
—

 
21,704

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
8,762

 
—

 
—

 
8,762

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
48,371

 
9,430

 
—

 
57,801

Derivative settlements, net
—

 
—

 
—

 
—

 
(15,384
)
 
(1,157
)
 
—

 
(16,541
)
Total other income (expense)
144,535

 
41,767

 
53,780

 
240,082

 
48,975

 
22,751

 
(28,856
)
 
282,952

Operating expenses:
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Salaries and benefits
56,535

 
18,786

 
10,576

 
85,897

 
1,154

 
8,286

 
—

 
95,337

Cost to provide enrollment services
—

 
—

 
36,429

 
36,429

 
—

 
—

 
—

 
36,429

Depreciation and amortization
5,520

 
2,270

 
122

 
7,912

 
—

 
785

 
—

 
8,697

Other
36,421

 
4,479

 
2,894

 
43,794

 
15,436

 
10,076

 
—

 
69,306

Intersegment expenses, net
1,786

 
2,919

 
2,279

 
6,984

 
29,250

 
(7,378
)
 
(28,856
)
 
—

Total operating expenses
100,262

 
28,454

 
52,300

 
181,016

 
45,840

 
11,769

 
(28,856
)
 
209,769

Income (loss) before income taxes and corporate overhead allocation
44,292

 
13,313

 
1,480

 
59,085

 
192,562

 
11,753

 
—

 
263,400

Corporate overhead allocation
(2,510
)
 
(836
)
 
(836
)
 
(4,182
)
 
(1,793
)
 
5,975

 
—

 
—

Income (loss) before income taxes
41,782

 
12,477

 
644

 
54,903

 
190,769

 
17,728

 
—

 
263,400

Income tax (expense) benefit
(15,878
)
 
(4,741
)
 
(244
)
 
(20,863
)
 
(72,492
)
 
162

 
—

 
(93,193
)
Net income (loss)
25,904

 
7,736

 
400

 
34,040

 
118,277

 
17,890

 
—

 
170,207

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
885

 
—

 
885

Net income (loss) attributable to Nelnet, Inc.
$
25,904

 
7,736

 
400

 
34,040

 
118,277

 
17,005

 
—

 
169,322

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2012
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
32

 
5

 
—

 
37

 
304,752

 
3,335

 
(1,928
)
 
306,196

Interest expense
—

 
—

 
—

 
—

 
134,846

 
3,855

 
(1,928
)
 
136,773

Net interest income (loss)
32

 
5

 
—

 
37

 
169,906

 
(520
)
 
—

 
169,423

Less provision for loan losses
—

 
—

 
—

 
—

 
13,000

 
—

 
—

 
13,000

Net interest income (loss) after provision for loan losses
32

 
5

 
—

 
37

 
156,906

 
(520
)
 
—

 
156,423

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
101,879

 
—

 
—

 
101,879

 
—

 
—

 
—

 
101,879

Intersegment servicing revenue
33,355

 
—

 
—

 
33,355

 
—

 
—

 
(33,355
)
 
—

Tuition payment processing and campus commerce revenue
—

 
38,747

 
—

 
38,747

 
—

 
—

 
—

 
38,747

Enrollment services revenue
—

 
—

 
61,374

 
61,374

 
—

 
—

 
—

 
61,374

Other income
—

 
—

 
—

 
—

 
8,581

 
11,173

 
—

 
19,754

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
935

 
—

 
—

 
935

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
(31,657
)
 
(3,282
)
 
—

 
(34,939
)
Derivative settlements, net
—

 
—

 
—

 
—

 
(1,112
)
 
(747
)
 
—

 
(1,859
)
Total other income (expense)
135,234

 
38,747

 
61,374

 
235,355

 
(23,253
)
 
7,144

 
(33,355
)
 
185,891

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
57,947

 
17,193

 
12,440

 
87,580

 
1,261

 
8,957

 
—

 
97,798

Cost to provide enrollment services
—

 
—

 
42,052

 
42,052

 
—

 
—

 
—

 
42,052

Depreciation and amortization
8,938

 
3,471

 
3,234

 
15,643

 
—

 
719

 
—

 
16,362

Other
36,205

 
5,272

 
3,701

 
45,178

 
6,752

 
11,241

 
—

 
63,171

Intersegment expenses, net
2,570

 
2,663

 
1,824

 
7,057

 
33,778

 
(7,480
)
 
(33,355
)
 
—

Total operating expenses
105,660

 
28,599

 
63,251

 
197,510

 
41,791

 
13,437

 
(33,355
)
 
219,383

Income (loss) before income taxes and corporate overhead allocation
29,606

 
10,153

 
(1,877
)
 
37,882

 
91,862

 
(6,813
)
 
—

 
122,931

Corporate overhead allocation
(2,778
)
 
(926
)
 
(926
)
 
(4,630
)
 
(2,792
)
 
7,422

 
—

 
—

Income (loss) before income taxes
26,828

 
9,227

 
(2,803
)
 
33,252

 
89,070

 
609

 
—

 
122,931

Income tax (expense) benefit
(10,195
)
 
(3,506
)
 
1,065

 
(12,636
)
 
(33,845
)
 
8,373

 
—

 
(38,108
)
Net income (loss)
16,633

 
5,721

 
(1,738
)
 
20,616

 
55,225

 
8,982

 
—

 
84,823

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
288

 
—

 
288

Net income (loss) attributable to Nelnet, Inc.
$
16,633

 
5,721

 
(1,738
)
 
20,616

 
55,225

 
8,694

 
—

 
84,535

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 six months ended June 30, 2013.
 
As of June 30, 2013
 
As of December 31, 2012
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 


 
 
 
 
 
 
Student loan asset-backed securities
$
—

 
173,303

 
173,303

 
—

 
77,652

 
77,652

Equity securities
3,407

 
—

 
3,407

 
4,873

 
—

 
4,873

Debt securities
531

 
—

 
531

 
787

 
—

 
787

Total investments
3,938

 
173,303

 
177,241

 
5,660

 
77,652

 
83,312

Fair value of derivative instruments
—

 
98,996

 
98,996

 
—

 
97,441

 
97,441

Total assets
$
3,938

 
272,299

 
276,237

 
5,660

 
175,093

 
180,753

Liabilities:
 

 
 

 
 

 
 
 
 
 
 
Fair value of derivative instruments
$
—

 
24,897

 
24,897

 
—

 
70,890

 
70,890

Total liabilities
$
—

 
24,897

 
24,897

 
—

 
70,890

 
70,890


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 June 30, 2013
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
25,230,818

 
24,575,636

 
—

 
—

 
25,230,818

Cash and cash equivalents
68,584

 
68,584

 
68,584

 
—

 
—

Investments
177,241

 
177,241

 
3,938

 
173,303

 
—

Restricted cash
671,342

 
671,342

 
671,342

 
—

 
—

Restricted cash – due to customers
84,182

 
84,182

 
84,182

 
—

 
—

Restricted investments
8,385

 
8,385

 
8,385

 
—

 
—

Accrued interest receivable
296,538

 
296,538

 
—

 
296,538

 
—

Derivative instruments
98,996

 
98,996

 
—

 
98,996

 
—

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
24,253,072

 
24,690,952

 
—

 
24,253,072

 
—

Accrued interest payable
14,760

 
14,760

 
—

 
14,760

 
—

Due to customers
84,182

 
84,182

 
84,182

 
—

 
—

Derivative instruments
24,897

 
24,897

 
—

 
24,897

 
—

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

 
24,830,621

 
—

 
—

 
25,418,623

Cash and cash equivalents
66,031

 
66,031

 
66,031

 
—

 
—

Investments
83,312

 
83,312

 
5,660

 
77,652

 
—

Restricted cash
806,632

 
806,632

 
806,632

 
—

 
—

Restricted cash – due to customers
96,516

 
96,516

 
96,516

 
—

 
—

Restricted investments
8,830

 
8,830

 
8,830

 
—

 
—

Accrued interest receivable
307,518

 
307,518

 
—

 
307,518

 
—

Derivative instruments
97,441

 
97,441

 
—

 
97,441

 
—

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
24,486,008

 
25,098,835

 
—

 
24,486,008

 
—

Accrued interest payable
14,770

 
14,770

 
—

 
14,770

 
—

Due to customers
96,516

 
96,516

 
96,516

 
—

 
—

Derivative instruments
70,890

 
70,890

 
—

 
70,890

 
—

Student Loans Receivable (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
$ 24,718,368 
 
$ 24,995,880 
 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
(91,121)
 
(113,357)
 
 
 
Allowance for loan losses
51,611 
49,409 
51,902 
49,657 
48,435 
48,482 
Student loans receivable
24,575,636 
 
24,830,621 
 
 
 
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
24,688,734 
 
24,969,846 
 
 
 
Allowance for loan losses
39,848 
 
40,120 
36,992 
 
 
Allowance for student loans receivable as a percentage
0.16% 
 
0.16% 
 
 
 
Non-federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
29,634 
 
26,034 
 
 
 
Allowance for loan losses
11,763 
 
11,782 
12,665 
 
 
Allowance for student loans receivable as a percentage
39.69% 
 
45.26% 
 
 
 
Stafford and Other [Member] |
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
7,010,404 
 
7,261,114 
 
 
 
Consolidation Loans [Member] |
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
$ 17,678,330 
 
$ 17,708,732 
 
 
 
Student Loans Receivable and Allowance for Loan Losses Allowance for Loan Losses (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
 
 
Allowance for loan losses - balance
$ 49,409 
$ 48,435 
$ 51,902 
$ 48,482 
$ 51,611 
$ 49,657 
Provision for loan losses
5,000 
7,000 
10,000 
13,000 
 
 
Charge-offs
(3,932)
(6,527)
(10,694)
(12,791)
 
 
Federally insured loans [Member]
 
 
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
 
 
Allowance for loan losses - balance
 
 
40,120 
 
39,848 
36,992 
Provision for loan losses
5,000 
7,000 
11,000 
13,000 
 
 
Charge-offs
(3,340)
(5,999)
(9,330)
(11,494)
 
 
Purchase (sale) of federally insured loans and other, net
275 
(792)
(1,943)
(1,719)
 
 
Non-federally insured loans [Member]
 
 
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
 
 
Allowance for loan losses - balance
 
 
11,782 
 
11,763 
12,665 
Provision for loan losses
0 
0 
(1,000)
0 
 
 
Charge-offs
(592)
(528)
(1,364)
(1,297)
 
 
Recoveries - non-federally insured loans
442 
354 
810 
705 
 
 
Transfer from repurchase obligation related to non-federally insured loans purchased, net
$ 417 
$ 1,187 
$ 1,536 
$ 1,980 
 
 
Student Loans Receivable and Allowance for Loan Losses Repurchase Obligations (Details) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Dec. 31, 2012
Jun. 30, 2013
Cumulative non-federally insured loans participated subject to repurchase agreement [Member]
Dec. 31, 2011
Non-federally insured loans sold subject to repurchase agreement [Member]
Jun. 30, 2013
Non-federally insured loans sold subject to repurchase agreement [Member]
Repurchase Obligation [Line Items]
 
 
 
 
 
 
 
 
Cumulative amount of participated non-federally insured student loans
 
 
 
 
 
$ 98,700,000 
 
 
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
15,011,000 
18,430,000 
16,130,000 
19,223,000 
 
 
 
 
Transfer to the allowance for loan losses related to loans sold, net
(417,000)
(1,187,000)
(1,536,000)
(1,980,000)
 
 
 
 
Ending balance
14,594,000 
17,243,000 
14,594,000 
17,243,000 
 
 
 
 
Student loans receivable
$ 24,575,636,000 
 
$ 24,575,636,000 
 
$ 24,830,621,000 
 
 
$ 68,300,000 
Student Loans Receivable and Allowance for Loan Losses Student Loan Status and Delinquency (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Student loans receivable, gross
$ 24,718,368 
$ 24,995,880 
 
Federally insured loans, excluding rehabiliation loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans in-school/grace/deferment
2,753,719 
2,949,320 
3,299,197 
Loans in forbearance
2,930,795 
2,992,023 
3,095,648 
Student loans receivable, gross
22,039,036 
22,579,744 
22,742,497 
Loans in repayment status:
 
 
 
Loans current
14,357,812 
14,583,044 
14,238,827 
Loans current, percentage
87.70% 
87.60% 
87.10% 
Loans delinquent 31-60 days
599,846 
652,351 
612,302 
Loans delinquent 31-60 days, percentage
3.70% 
3.90% 
3.70% 
Loans delinquent 61-90 days
404,256 
330,885 
371,558 
Loans delinquent 61-90 days, percentage
2.50% 
2.00% 
2.30% 
Loans delinquent 91-120 days
204,975 
247,381 
195,926 
Loans delinquent 91-120 days, percentage
1.30% 
1.50% 
1.20% 
Loans delinquent 121-270 days
600,018 
603,942 
649,113 
Loans delinquent 121-270 days, percentage
3.70% 
3.60% 
4.00% 
Loans delinquent 271 days or greater
187,615 
220,798 
279,926 
Loans delinquent 271 days or greater, percentage
1.10% 
1.40% 
1.70% 
Total loans in repayment
16,354,522 
16,638,401 
16,347,652 
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
230,076 
150,317 
80,405 
Loans in forbearance
389,306 
330,278 
127,377 
Student loans receivable, gross
2,649,698 
2,390,102 
808,627 
Loans in repayment status:
 
 
 
Loans current
997,567 
670,205 
408,224 
Loans current, percentage
49.10% 
35.10% 
68.00% 
Loans delinquent 31-60 days
176,731 
113,795 
55,470 
Loans delinquent 31-60 days, percentage
8.70% 
6.00% 
9.20% 
Loans delinquent 61-90 days
127,083 
79,691 
37,733 
Loans delinquent 61-90 days, percentage
6.30% 
4.20% 
6.30% 
Loans delinquent 91-120 days
86,757 
186,278 
20,953 
Loans delinquent 91-120 days, percentage
4.30% 
9.80% 
3.50% 
Loans delinquent 121-270 days
416,553 
633,001 
52,501 
Loans delinquent 121-270 days, percentage
20.50% 
33.10% 
8.70% 
Loans delinquent 271 days or greater
225,625 
226,537 
25,964 
Loans delinquent 271 days or greater, percentage
11.10% 
11.80% 
4.30% 
Total loans in repayment
2,030,316 
1,909,507 
600,845 
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
$ 24,688,734 
$ 24,969,846 
$ 23,551,124 
Non-federally insured loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans Delinquent 31 Days or Greater in Percentage
27.10% 
28.60% 
22.70% 
Outstanding Debt Obligations (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended 12 Months Ended
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2012
Debt Instrument [Line Items]
 
 
 
Bonds and notes payable
$ 24,690,952 
$ 25,098,835 
 
Variable-rate bonds and notes [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Bonds and notes payable
23,679,457 
22,155,065 
 
Bonds and notes based on indices [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Bonds and notes payable
22,773,607 
21,185,140 
 
Interest rate range - minimum
0.28% 
0.32% 
 
Interest rate range - maximum
6.90% 
6.90% 
 
Final maturity, start
Nov. 25, 2015 
Nov. 25, 2015 
 
Final maturity, end
Aug. 26, 2052 
Aug. 26, 2052 
 
Bonds and notes based on auction or remarketing [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Bonds and notes payable
905,850 
969,925 
 
Interest rate range - minimum
0.09% 
0.15% 
 
Interest rate range - maximum
2.10% 
2.14% 
 
Final maturity, start
May 01, 2028 
May 01, 2028 
 
Final maturity, end
May 25, 2042 
May 25, 2042 
 
FFELP warehouse facilities [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Bonds and notes payable
1,029,005 
1,554,151 
 
Interest rate range - minimum
0.19% 
0.21% 
 
Interest rate range - maximum
0.27% 
0.29% 
 
Final maturity, start
Apr. 02, 2015 
Jan. 31, 2015 
 
Final maturity, end
Jun. 12, 2016 
Jun. 30, 2015 
 
Department of Education Conduit [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Bonds and notes payable
 
1,344,513 
 
Interest rate range - minimum
 
0.82% 
 
Interest rate range - maximum
 
0.82% 
 
Final maturity, start
 
Jan. 19, 2014 
 
Final maturity, end
 
Jan. 19, 2014 
 
Unsecured line of credit [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Bonds and notes payable
 
55,000 
 
Interest rate range - minimum
0.00% 
1.71% 
 
Interest rate range - maximum
0.00% 
1.71% 
 
Final maturity, start
Mar. 28, 2018 
Feb. 17, 2016 
 
Final maturity, end
Mar. 28, 2018 
Feb. 17, 2016 
 
Unsecured debt - Junior Subordinated Hybrid Securities [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Bonds and notes payable
99,232 
99,232 
100,697 
Interest rate range - minimum
3.65% 
3.68% 
 
Interest rate range - maximum
3.65% 
3.68% 
 
Final maturity, start
Sep. 15, 2061 
Sep. 15, 2061 
 
Final maturity, end
Sep. 15, 2061 
Sep. 15, 2061 
 
Other borrowings [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Bonds and notes payable
61,853 
62,904 
 
Interest rate range - minimum
1.69% 
1.50% 
 
Interest rate range - maximum
5.10% 
5.10% 
 
Final maturity, start
Nov. 14, 2013 
Nov. 14, 2013 
 
Final maturity, end
Nov. 11, 2015 
Nov. 11, 2015 
 
Bonds and notes payable, gross [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Bonds and notes payable
24,869,547 
25,270,865 
 
Discount on bonds and notes payable [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Bonds and notes payable
$ (178,595)
$ (172,030)
 
Bonds and Notes Payable Outstanding Lines of Credit (Details) (USD $)
6 Months Ended 3 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2013
Paid in Full-Closed Line of Credit [Member]
Jun. 30, 2013
Line of Credit [Member]
Jun. 30, 2013
NHELP-II Warehouse [Member]
Jun. 30, 2013
Department of education conduit [Member]
Jun. 30, 2013
NHELP-I Warehouse [Member]
Jun. 30, 2013
NFSLW-I Warehouse [Member]
Jun. 30, 2013
NHELP-III Warehouse [Member]
Jun. 30, 2013
FFELP Warehouse Total [Member]
Jun. 30, 2013
Line of Credit [Member]
Dec. 31, 2012
Line of Credit [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
Paid in Full-Closed Line of Credit termination date
February 17, 2012 
 
 
 
 
 
 
 
 
 
Maximum financing amount
 
$ 250,000,000 
$ 500,000,000 1
 
$ 500,000,000 
$ 500,000,000 2
$ 500,000,000 3
$ 2,000,000,000 
 
 
Line of credit - amended capacity
 
275,000,000 
 
 
 
 
 
 
 
 
Debt Instrument, Maturity Date Range, End
 
 
 
 
 
 
 
 
Mar. 28, 2018 
Feb. 17, 2016 
Amount outstanding
 
0 
257,556,000 1
1,300,000,000 
172,486,000 
283,233,000 2
315,730,000 3
1,029,005,000 
 
 
Amount available
 
275,000,000 
242,444,000 1
 
327,514,000 1
216,767,000 2
184,270,000 3
970,995,000 
 
 
Initiation date
 
Feb. 17, 2012 
Jan. 16, 2013 
 
 
 
 
 
 
 
Expiration of liquidity provisions
 
 
Feb. 28, 2014 1
 
Oct. 02, 2013 1
Jun. 12, 2014 
Jan. 16, 2014 3
 
 
 
Final maturity date
 
 
Feb. 28, 2016 1
 
Apr. 02, 2015 1
Jun. 12, 2016 2
Jan. 17, 2016 3
 
 
 
Advanced as equity support
 
 
$ 26,524,000 1
 
$ 4,866,000 
$ 13,543,000 2
$ 16,346,000 3
$ 61,279,000 
 
 
Minimum Advance Rates - range minimum
 
 
84.50% 
 
80.00% 
84.00% 
92.20% 
 
 
 
Minimum advance rates - range maximum
 
 
94.50% 
 
95.00% 
90.00% 
95.00% 
 
 
 
Maximum Advance Rates - range minimum
 
 
84.50% 
 
80.00% 
92.00% 
92.20% 
 
 
 
Maximum advance rates - range maximum
 
 
94.50% 
 
100.00% 
98.00% 
95.00% 
 
 
 
Bonds and Notes Payable Asset-backed Securitizations (Details) (USD $)
6 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
2013-3 Securitization [Member]
Jun. 30, 2013
2013-1 Securitization [Member]
Jun. 30, 2013
2013-2 Securitization [Member]
Jun. 30, 2013
2013-4 Securitization [Member]
Jun. 30, 2013
2013 Securitization [Member]
Jun. 30, 2013
Class A [Member]
2013-3 Securitization [Member]
Jun. 30, 2013
Class A [Member]
2013-1 Securitization [Member]
Jun. 30, 2013
Class A [Member]
2013-2 Securitization [Member]
Jun. 30, 2013
Class A [Member]
2013-4 Securitization [Member]
Jun. 30, 2013
Class A [Member]
2013 Securitization [Member]
Jun. 30, 2013
Class B [Member]
Jun. 30, 2013
Class B [Member]
2013-3 Securitization [Member]
Jun. 30, 2013
Class B [Member]
2013-1 Securitization [Member]
Jun. 30, 2013
Class B [Member]
2013-2 Securitization [Member]
Jun. 30, 2013
Class B [Member]
2013-4 Securitization [Member]
Jun. 30, 2013
Class B [Member]
2013 Securitization [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securitization issuance, Unamortized Discount
 
 
 
 
 
 
 
$ 0 
$ 0 
$ 3,325,000 
$ 1,690,000 
$ 5,015,000 
$ 6,400,000 
$ 1,762,000 
$ 1,525,000 
 
$ 1,804,000 
$ 5,091,000 
Asset-backed securitization, issuance date
 
 
Apr. 30, 2013 
Jan. 31, 2013 
Feb. 28, 2013 
Jun. 21, 2013 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securitization issuance, Face Amount
 
 
765,000,000 
437,500,000 
1,122,000,000 
453,000,000 
2,777,500,000 
745,000,000 
428,000,000 
1,122,000,000 
440,000,000 
2,735,000,000 
 
20,000,000 
9,500,000 
 
13,000,000 
42,500,000 
Long-term Debt, Fair Value
 
 
 
 
 
 
 
745,000,000 
428,000,000 
1,118,675,000 
438,310,000 
2,729,985,000 
 
18,238,000 
7,975,000 
 
11,196,000 
37,409,000 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
 
 
0.50% 
0.60% 
0.50% 
0.50% 
 
 
1.50% 
1.50% 
 
1.50% 
 
Debt Instrument, Maturity Date Range, End
 
 
 
 
 
 
 
Feb. 25, 2037 
Jun. 25, 2041 
Jul. 25, 2040 
Dec. 26, 2042 
 
 
Jul. 25, 2047 
Mar. 25, 2048 
 
Jan. 25, 2047 
 
Class B subordinated notes purchased with issuance of asset-backed securitizations (off-balance sheet)
 
 
 
 
 
 
 
 
 
 
 
 
76,500,000 
 
 
34,000,000 
 
 
Student loans sold
 
 
 
 
 
 
 
 
 
 
 
 
61,600,000 
 
 
 
 
 
Proceeds from sale of student loans
$ 11,287,000 
$ 59,965,000 
 
 
 
 
 
 
 
 
 
 
$ 55,200,000 
 
 
 
 
 
Bonds and Notes Payable Debt Repurchases (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Debt Instrument [Line Items]
 
 
 
 
Gain on sale of loans and debt repurchases net
$ 7,355,000 
$ 935,000 
$ 8,762,000 
$ 935,000 
Debt [Member] |
Asset-backed Securities [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Gain on sale of loans and debt repurchases net
7,400,000 
 
8,700,000 
900,000 
Quarter to date [Member] |
Debt [Member] |
Asset-backed Securities [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Debt Instrument, Repurchased Face Amount
56,400,000 
 
56,400,000 
 
Year to date[Member] |
Debt [Member] |
Asset-backed Securities [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Debt Instrument, Repurchased Face Amount
$ 69,400,000 
$ 17,600,000 
$ 69,400,000 
$ 17,600,000 
Derivative Financial Instruments Outstanding (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Dec. 31, 2012
Derivative [Line Items]
 
 
 
Student loans receivable
$ 24,575,636 
 
$ 24,830,621 
Bonds and notes payable
24,690,952 
 
25,098,835 
Junior Subordinated Hybrid Securities [Member]
 
 
 
Derivative [Line Items]
 
 
 
Unsecured debt scheduled interest rate change date
Sep. 29, 2036 
Sep. 29, 2036 
 
Bonds and notes payable
99,232 
100,697 
99,232 
Junior subordinated hybrid securities, description of variable rate basis
three-month LIBOR 
three-month LIBOR 
 
Weighted average basis spread on variable rate
3.375% 
3.375% 
 
Junior Subordinated Hybrid Securities [Member] |
Maturity 2036 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
50,000 
 
75,000 
Derivative, Average Fixed Interest Rate
4.32% 
 
4.28% 
1:3 basis swaps [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
8,000,000 1
5,600,000 
7,500,000 1
Derivative, Type of Interest Rate Paid on Swap
one-month LIBOR 
 
 
Weighted average basis spread on variable rate
350.00% 
 
330.00% 
1:3 basis swaps [Member] |
One-month LIBOR, Daily reset [Member]
 
 
 
Derivative [Line Items]
 
 
 
Student loans receivable
23,700,000 
 
 
Derivative, Description of Variable Rate Basis
one-month LIBOR 
 
 
1:3 basis swaps [Member] |
Three-month treasury bill, Daily reset [Member]
 
 
 
Derivative [Line Items]
 
 
 
Student loans receivable
1,000,000 
 
 
Derivative, Description of Variable Rate Basis
three-month treasury bill rate 
 
 
1:3 basis swaps [Member] |
Three-month LIBOR, Quarterly reset [Member]
 
 
 
Derivative [Line Items]
 
 
 
Bonds and notes payable
15,600,000 
 
 
Derivative, Description of Variable Rate Basis
three-month LIBOR 
 
 
1:3 basis swaps [Member] |
One-month LIBOR, Monthly reset [Member]
 
 
 
Derivative [Line Items]
 
 
 
Bonds and notes payable
7,700,000 
 
 
Derivative, Description of Variable Rate Basis
one-month LIBOR 
 
 
1:3 basis swaps [Member] |
Maturity 2021 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
250,000 
 
250,000 
1:3 basis swaps [Member] |
Maturity 2022 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
1,900,000 
 
1,900,000 
1:3 basis swaps [Member] |
Maturity 2023 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
3,650,000 
 
3,150,000 
1:3 basis swaps [Member] |
Maturity 2024 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
250,000 
 
250,000 
1:3 basis swaps [Member] |
Maturity 2026 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
800,000 
 
800,000 
1:3 basis swaps [Member] |
Maturity 2028 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
100,000 
 
100,000 
1:3 basis swaps [Member] |
Maturity 2036 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
700,000 
 
700,000 
1:3 basis swaps [Member] |
Maturity 2039 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
150,000 2
 
150,000 2
1:3 basis swaps [Member] |
Maturity 2040 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
200,000 3
 
200,000 3
Fixed Rate Floor Income Interest Rate Swap [Member]
 
 
 
Derivative [Line Items]
 
 
 
Student loans receivable
11,100,000 
 
11,300,000 
Notional amount
6,850,000 
 
7,500,000 
Derivative, Average Fixed Interest Rate
0.78% 
 
0.78% 4
Weighted Average Variable Conversion Rate
1.82% 
 
 
Fixed Rate Floor Income Interest Rate Swap [Member] |
Maturity 2013 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
2,000,000 
 
3,150,000 
Derivative, Average Fixed Interest Rate
0.71% 
 
0.71% 
Fixed Rate Floor Income Interest Rate Swap [Member] |
Maturity 2014 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
1,750,000 
 
1,750,000 
Derivative, Average Fixed Interest Rate
0.71% 
 
0.71% 
Fixed Rate Floor Income Interest Rate Swap [Member] |
Maturity 2015 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
1,100,000 
 
1,100,000 
Derivative, Average Fixed Interest Rate
0.89% 
 
0.89% 
Fixed Rate Floor Income Interest Rate Swap [Member] |
Maturity 2016 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
750,000 
 
750,000 
Derivative, Average Fixed Interest Rate
0.85% 
 
0.85% 
Fixed Rate Floor Income Interest Rate Swap [Member] |
Maturity 2017 [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amount
$ 1,250,000 
 
$ 750,000 
Derivative, Average Fixed Interest Rate
0.86% 
 
0.99% 
Derivative Financial Instruments Cross-currency Interest Rate Swaps (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2013
USD ($)
Jun. 30, 2012
USD ($)
Jun. 30, 2013
USD ($)
Jun. 30, 2012
USD ($)
Dec. 31, 2012
USD ($)
Jun. 30, 2013
Cross-currency interest rate swap 1 [Member]
USD ($)
Jun. 30, 2013
Cross-currency interest rate swap 1 [Member]
EUR (€)
Jun. 30, 2013
Cross currency interest rate swap 2 [Member]
USD ($)
Jun. 30, 2013
Cross currency interest rate swap 2 [Member]
EUR (€)
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
Bonds and notes payable
$ 24,690,952,000 
 
$ 24,690,952,000 
 
$ 25,098,835,000 
 
€ 420,500,000 
 
€ 352,700,000 
Notional Amount of Foreign Currency Derivative Instruments Not Designated as Hedging Instruments
 
 
 
 
 
500,000,000 
420,500,000 
450,000,000 
352,700,000 
Re-measurement of Euro Notes
(14,691,000)
59,226,000 
14,072,000 
26,984,000 
 
 
 
 
 
Change in fair value of cross currency interest rate swaps
14,748,000 
(62,546,000)
(20,096,000)
(49,520,000)
 
 
 
 
 
Total impact to statements of income - income (expense)
$ 57,000 1
$ (3,320,000)1
$ (6,024,000)1
$ (22,536,000)1
 
 
 
 
 
Derivative Financial Instruments Fair Value of Derivative Instruments (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2013
Jun. 30, 2012
Mar. 31, 2013
Dec. 31, 2012
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative instruments, asset
$ 98,996,000 
$ 98,996,000 
 
 
$ 97,441,000 
Fair value of derivative instruments, liability
24,897,000 
24,897,000 
 
 
70,890,000 
Cash collateral received
64,417,000 
64,417,000 
 
 
19,993,000 
Cash collateral pledged
4,810,000 
4,810,000 
 
63,128,000 
63,128,000 
Payments to terminate and/or amend derivative instruments
3,700,000 
(3,819,000)
0 
 
 
1:3 basis swaps [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative instruments, asset
22,587,000 
22,587,000 
 
 
12,239,000 
Fair value of derivative instruments, liability
0 
0 
 
 
1,215,000 
Interest rate swaps - floor income hedges [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative instruments, asset
13,664,000 
13,664,000 
 
 
0 
Fair value of derivative instruments, liability
16,220,000 
16,220,000 
 
 
45,913,000 
Interest rate swaps - hybrid debt hedges [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative instruments, asset
0 
0 
 
 
0 
Fair value of derivative instruments, liability
8,677,000 
8,677,000 
 
 
23,762,000 
Cross-currency interest rate swaps [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative instruments, asset
62,745,000 
62,745,000 
 
 
82,841,000 
Fair value of derivative instruments, liability
0 
0 
 
 
0 
Other [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Fair value of derivative instruments, asset
0 
0 
 
 
2,361,000 
Fair value of derivative instruments, liability
$ 0 
$ 0 
 
 
$ 0 
Derivative Financial Instruments Gross/Net (Details) (USD $)
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of derivative instruments, asset
$ 98,996,000 
 
$ 97,441,000 
Fair value of derivative instruments, liability
(24,897,000)
 
(70,890,000)
Derivatives subject to enforceable master netting arrangement, asset
(20,297,000)
(13,234,000)
 
Derivatives subject to enforceable master netting arrangement, liability
20,297,000 
13,234,000 
 
Cash collateral received
(64,417,000)
 
(19,993,000)
Cash collateral pledged
4,810,000 
63,128,000 
63,128,000 
Fair value of derivative instruments, asset, net
14,282,000 
64,214,000 
 
Fair value of derivative instruments, liability, net
$ (210,000)
$ (5,472,000)
 
Derivative Financial Instruments Income Statement Effect of Derivative Instruments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
$ (8,357)
$ (2,086)
$ (16,541)
$ (1,859)
Change in fair value
63,236 
(78,758)
43,729 
(61,923)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
(14,691)
59,226 
14,072 
26,984 
Derivative market value and foreign currency adjustments and derivative settlements - income (expense)
40,188 
(21,618)
41,260 
(36,798)
1:3 basis swaps [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
782 
1,169 
1,692 
2,551 
Change in fair value
9,630 
(428)
11,563 
2,574 
Interest rate swaps - floor income hedges [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(8,534)
(3,505)
(16,839)
(6,642)
Change in fair value
33,408 
(6,143)
42,830 
(11,778)
Interest rate swaps - hybrid debt hedges [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(512)
(723)
(1,157)
(746)
Change in fair value
5,450 
(8,783)
9,090 
(2,585)
Cross-currency interest rate swaps [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(93)
1,055 
(237)
3,163 
Change in fair value
14,748 
(62,546)
(20,096)
(49,520)
Other [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
0 
(82)
0 
(185)
Change in fair value
$ 0 
$ (858)
$ 342 
$ (614)
Investments and Restricted Investments Summary (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Investment Holdings [Line Items]
 
 
Guaranteed investment contracts - held-to-maturity
 
$ 8,830 1
Investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Fair value
177,241 
83,312 
Investments [Member] |
Available-for-sale investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
163,094 
68,419 
Gross unrealized gains
7,323 
4,791 
Gross unrealized losses
(3,201)2
(359)
Fair value
167,216 
72,851 
Investments [Member] |
Available-for-sale investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
161,051 3
64,970 3
Gross unrealized gains
5,931 3
3,187 3
Gross unrealized losses
(3,173)2 3
(179)3
Fair value
163,809 3
67,978 3
Investments [Member] |
Available-for-sale investments [Member] |
Equity securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
2,043 
3,449 
Gross unrealized gains
1,392 
1,604 
Gross unrealized losses
(28)2
(180)
Fair value
 
4,873 
Investments [Member] |
Trading investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Fair value
$ 10,025 
$ 10,461 
Investments Realized Gains (Losses) on Available-for-Sale Securities (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Gain (Loss) on Investments [Line Items]
 
 
 
 
Other income
$ 559 
$ 966 
$ 1,516 
$ 2,214 
Income tax expense
(207)
(357)
(561)
(819)
Net
$ 352 
$ 609 
$ 955 
$ 1,395 
Earnings per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income attributable to Nelnet, Inc.
$ 101,243 
$ 41,394 
$ 169,322 
$ 84,535 
Weighted average common shares outstanding - basic and diluted
46,626,853 
47,434,915 
46,642,356 
47,369,776 
Earnings per share - basic and diluted
$ 2.17 
$ 0.87 
$ 3.63 
$ 1.78 
Antidilutive securities excluded from computation of earnings per share
0 
0 
0 
0 
Common shareholders [Member]
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income attributable to Nelnet, Inc.
100,339 
41,058 
167,868 
83,916 
Weighted average common shares outstanding - basic and diluted
46,210,571 
47,049,055 
46,241,277 
47,020,811 
Earnings per share - basic and diluted
$ 2.17 
$ 0.87 
$ 3.63 
$ 1.78 
Unvested restricted stock shareholders [Member]
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income attributable to Nelnet, Inc.
$ 904 
$ 336 
$ 1,454 
$ 619 
Weighted average common shares outstanding - basic and diluted
416,282 
385,860 
401,079 
348,965 
Earnings per share - basic and diluted
$ 2.17 
$ 0.87 
$ 3.63 
$ 1.78 
Shares Issued - Deferred [Member]
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Non Employee Director Stock, Cumulative Deferred Shares
126,460 
 
126,460 
 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
$ 159,546 
$ 152,043 
$ 316,702 
$ 306,196 
Interest expense
58,127 
67,476 
116,485 
136,773 
Net interest income
101,419 
84,567 
200,217 
169,423 
Less provision for loan losses
(5,000)
(7,000)
(10,000)
(13,000)
Net interest income after provision for loan losses
96,419 
77,567 
190,217 
156,423 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
60,078 
52,391 
115,679 
101,879 
Intersegment servicing revenue
0 
0 
0 
0 
Tuition payment processing and campus commerce revenue
18,356 
16,834 
41,767 
38,747 
Enrollment services revenue
24,823 
29,710 
53,780 
61,374 
Other income
12,288 
8,800 
21,704 
19,754 
Gain on sale of loans and debt repurchases
7,355 
935 
8,762 
935 
Derivative market value and foreign currency adjustments, net
48,545 
(19,532)
57,801 
(34,939)
Derivative settlements, net
(8,357)
(2,086)
(16,541)
(1,859)
Total other income (expense)
163,088 
87,052 
282,952 
185,891 
Operating expenses:
 
 
 
 
Salaries and benefits
47,432 
48,703 
95,337 
97,798 
Cost to provide enrollment services
16,787 
20,374 
36,429 
42,052 
Depreciation and amortization
4,320 
8,226 
8,697 
16,362 
Other
34,365 
30,908 
69,306 
63,171 
Intersegment expenses, net
0 
0 
0 
0 
Total operating expenses
102,904 
108,211 
209,769 
219,383 
Income (loss) before income taxes and corporate overhead allocation
156,603 
56,408 
263,400 
122,931 
Corporate overhead allocation
0 
0 
0 
0 
Income (loss) before income taxes
156,603 
56,408 
263,400 
122,931 
Income tax (expense) benefit
(54,746)
(14,878)
(93,193)
(38,108)
Net income (loss)
101,857 
41,530 
170,207 
84,823 
Net income attributable to noncontrolling interest
614 
136 
885 
288 
Net income (loss) attributable to Nelnet, Inc.
101,243 
41,394 
169,322 
84,535 
Student Loan and Guaranty Servicing [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
9 
12 
19 
32 
Interest expense
0 
0 
0 
0 
Net interest income
9 
12 
19 
32 
Less provision for loan losses
0 
0 
0 
0 
Net interest income after provision for loan losses
9 
12 
19 
32 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
60,078 
52,391 
115,679 
101,879 
Intersegment servicing revenue
13,903 
16,401 
28,856 
33,355 
Tuition payment processing and campus commerce revenue
0 
0 
0 
0 
Enrollment services revenue
0 
0 
0 
0 
Other income
0 
0 
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
0 
0 
Derivative settlements, net
0 
0 
0 
0 
Total other income (expense)
73,981 
68,792 
144,535 
135,234 
Operating expenses:
 
 
 
 
Salaries and benefits
28,091 
28,905 
56,535 
57,947 
Cost to provide enrollment services
0 
0 
0 
0 
Depreciation and amortization
2,731 
4,525 
5,520 
8,938 
Other
18,031 
17,539 
36,421 
36,205 
Intersegment expenses, net
851 
1,185 
1,786 
2,570 
Total operating expenses
49,704 
52,154 
100,262 
105,660 
Income (loss) before income taxes and corporate overhead allocation
24,286 
16,650 
44,292 
29,606 
Corporate overhead allocation
(1,513)
(1,275)
(2,510)
(2,778)
Income (loss) before income taxes
22,773 
15,375 
41,782 
26,828 
Income tax (expense) benefit
(8,655)
(5,843)
(15,878)
(10,195)
Net income (loss)
14,118 
9,532 
25,904 
16,633 
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income (loss) attributable to Nelnet, Inc.
14,118 
9,532 
25,904 
16,633 
Tuition Payment Processing and Campus Commerce [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
0 
1 
0 
5 
Interest expense
0 
0 
0 
0 
Net interest income
0 
1 
0 
5 
Less provision for loan losses
0 
0 
0 
0 
Net interest income after provision for loan losses
0 
1 
0 
5 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
0 
0 
0 
0 
Intersegment servicing revenue
0 
0 
0 
0 
Tuition payment processing and campus commerce revenue
18,356 
16,834 
41,767 
38,747 
Enrollment services revenue
0 
0 
0 
0 
Other income
0 
0 
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
0 
0 
Derivative settlements, net
0 
0 
0 
0 
Total other income (expense)
18,356 
16,834 
41,767 
38,747 
Operating expenses:
 
 
 
 
Salaries and benefits
9,427 
8,575 
18,786 
17,193 
Cost to provide enrollment services
0 
0 
0 
0 
Depreciation and amortization
1,132 
1,731 
2,270 
3,471 
Other
2,192 
2,456 
4,479 
5,272 
Intersegment expenses, net
1,494 
1,330 
2,919 
2,663 
Total operating expenses
14,245 
14,092 
28,454 
28,599 
Income (loss) before income taxes and corporate overhead allocation
4,111 
2,743 
13,313 
10,153 
Corporate overhead allocation
(504)
(425)
(836)
(926)
Income (loss) before income taxes
3,607 
2,318 
12,477 
9,227 
Income tax (expense) benefit
(1,370)
(881)
(4,741)
(3,506)
Net income (loss)
2,237 
1,437 
7,736 
5,721 
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income (loss) attributable to Nelnet, Inc.
2,237 
1,437 
7,736 
5,721 
Enrollment Services [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
0 
0 
0 
0 
Interest expense
0 
0 
0 
0 
Net interest income
0 
0 
0 
0 
Less provision for loan losses
0 
0 
0 
0 
Net interest income after provision for loan losses
0 
0 
0 
0 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
0 
0 
0 
0 
Intersegment servicing revenue
0 
0 
0 
0 
Tuition payment processing and campus commerce revenue
0 
0 
0 
0 
Enrollment services revenue
24,823 
29,710 
53,780 
61,374 
Other income
0 
0 
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
0 
0 
Derivative settlements, net
0 
0 
0 
0 
Total other income (expense)
24,823 
29,710 
53,780 
61,374 
Operating expenses:
 
 
 
 
Salaries and benefits
4,809 
6,161 
10,576 
12,440 
Cost to provide enrollment services
16,787 
20,374 
36,429 
42,052 
Depreciation and amortization
61 
1,617 
122 
3,234 
Other
1,243 
1,745 
2,894 
3,701 
Intersegment expenses, net
1,130 
976 
2,279 
1,824 
Total operating expenses
24,030 
30,873 
52,300 
63,251 
Income (loss) before income taxes and corporate overhead allocation
793 
(1,163)
1,480 
(1,877)
Corporate overhead allocation
(504)
(425)
(836)
(926)
Income (loss) before income taxes
289 
(1,588)
644 
(2,803)
Income tax (expense) benefit
(109)
603 
(244)
1,065 
Net income (loss)
180 
(985)
400 
(1,738)
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income (loss) attributable to Nelnet, Inc.
180 
(985)
400 
(1,738)
Total Fee-Based [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
9 
13 
19 
37 
Interest expense
0 
0 
0 
0 
Net interest income
9 
13 
19 
37 
Less provision for loan losses
0 
0 
0 
0 
Net interest income after provision for loan losses
9 
13 
19 
37 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
60,078 
52,391 
115,679 
101,879 
Intersegment servicing revenue
13,903 
16,401 
28,856 
33,355 
Tuition payment processing and campus commerce revenue
18,356 
16,834 
41,767 
38,747 
Enrollment services revenue
24,823 
29,710 
53,780 
61,374 
Other income
0 
0 
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
0 
0 
Derivative settlements, net
0 
0 
0 
0 
Total other income (expense)
117,160 
115,336 
240,082 
235,355 
Operating expenses:
 
 
 
 
Salaries and benefits
42,327 
43,641 
85,897 
87,580 
Cost to provide enrollment services
16,787 
20,374 
36,429 
42,052 
Depreciation and amortization
3,924 
7,873 
7,912 
15,643 
Other
21,466 
21,740 
43,794 
45,178 
Intersegment expenses, net
3,475 
3,491 
6,984 
7,057 
Total operating expenses
87,979 
97,119 
181,016 
197,510 
Income (loss) before income taxes and corporate overhead allocation
29,190 
18,230 
59,085 
37,882 
Corporate overhead allocation
(2,521)
(2,125)
(4,182)
(4,630)
Income (loss) before income taxes
26,669 
16,105 
54,903 
33,252 
Income tax (expense) benefit
(10,134)
(6,121)
(20,863)
(12,636)
Net income (loss)
16,535 
9,984 
34,040 
20,616 
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income (loss) attributable to Nelnet, Inc.
16,535 
9,984 
34,040 
20,616 
Asset Generation and Management [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
158,175 
151,240 
313,829 
304,752 
Interest expense
56,920 
66,017 
114,402 
134,846 
Net interest income
101,255 
85,223 
199,427 
169,906 
Less provision for loan losses
(5,000)
(7,000)
(10,000)
(13,000)
Net interest income after provision for loan losses
96,255 
78,223 
189,427 
156,906 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
0 
0 
0 
0 
Intersegment servicing revenue
0 
0 
0 
0 
Tuition payment processing and campus commerce revenue
0 
0 
0 
0 
Enrollment services revenue
0 
0 
0 
0 
Other income
3,030 
3,581 
7,226 
8,581 
Gain on sale of loans and debt repurchases
7,355 
935 
8,762 
935 
Derivative market value and foreign currency adjustments, net
43,096 
(10,053)
48,371 
(31,657)
Derivative settlements, net
(7,845)
(1,339)
(15,384)
(1,112)
Total other income (expense)
45,636 
(6,876)
48,975 
(23,253)
Operating expenses:
 
 
 
 
Salaries and benefits
592 
542 
1,154 
1,261 
Cost to provide enrollment services
0 
0 
0 
0 
Depreciation and amortization
0 
0 
0 
0 
Other
7,923 
3,120 
15,436 
6,752 
Intersegment expenses, net
14,108 
16,635 
29,250 
33,778 
Total operating expenses
22,623 
20,297 
45,840 
41,791 
Income (loss) before income taxes and corporate overhead allocation
119,268 
51,050 
192,562 
91,862 
Corporate overhead allocation
(1,081)
(1,400)
(1,793)
(2,792)
Income (loss) before income taxes
118,187 
49,650 
190,769 
89,070 
Income tax (expense) benefit
(44,911)
(18,866)
(72,492)
(33,845)
Net income (loss)
73,276 
30,784 
118,277 
55,225 
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income (loss) attributable to Nelnet, Inc.
73,276 
30,784 
118,277 
55,225 
Corporate Activity and Overhead [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
2,196 
1,747 
4,507 
3,335 
Interest expense
2,041 
2,416 
3,736 
3,855 
Net interest income
155 
(669)
771 
(520)
Less provision for loan losses
0 
0 
0 
0 
Net interest income after provision for loan losses
155 
(669)
771 
(520)
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
0 
0 
0 
0 
Intersegment servicing revenue
0 
0 
0 
0 
Tuition payment processing and campus commerce revenue
0 
0 
0 
0 
Enrollment services revenue
0 
0 
0 
0 
Other income
9,258 
5,219 
14,478 
11,173 
Gain on sale of loans and debt repurchases
0 
0 
0 
0 
Derivative market value and foreign currency adjustments, net
5,449 
(9,479)
9,430 
(3,282)
Derivative settlements, net
(512)
(747)
(1,157)
(747)
Total other income (expense)
14,195 
(5,007)
22,751 
7,144 
Operating expenses:
 
 
 
 
Salaries and benefits
4,513 
4,520 
8,286 
8,957 
Cost to provide enrollment services
0 
0 
0 
0 
Depreciation and amortization
396 
353 
785 
719 
Other
4,976 
6,048 
10,076 
11,241 
Intersegment expenses, net
(3,680)
(3,725)
(7,378)
(7,480)
Total operating expenses
6,205 
7,196 
11,769 
13,437 
Income (loss) before income taxes and corporate overhead allocation
8,145 
(12,872)
11,753 
(6,813)
Corporate overhead allocation
3,602 
3,525 
5,975 
7,422 
Income (loss) before income taxes
11,747 
(9,347)
17,728 
609 
Income tax (expense) benefit
299 
10,109 
162 
8,373 
Net income (loss)
12,046 
762 
17,890 
8,982 
Net income attributable to noncontrolling interest
614 
136 
885 
288 
Net income (loss) attributable to Nelnet, Inc.
11,432 
626 
17,005 
8,694 
Eliminations [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
(834)
(957)
(1,653)
(1,928)
Interest expense
(834)
(957)
(1,653)
(1,928)
Net interest income
0 
0 
0 
0 
Less provision for loan losses
0 
0 
0 
0 
Net interest income after provision for loan losses
0 
0 
0 
0 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
0 
0 
0 
0 
Intersegment servicing revenue
(13,903)
(16,401)
(28,856)
(33,355)
Tuition payment processing and campus commerce revenue
0 
0 
0 
0 
Enrollment services revenue
0 
0 
0 
0 
Other income
0 
0 
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
0 
0 
Derivative settlements, net
0 
0 
0 
0 
Total other income (expense)
(13,903)
(16,401)
(28,856)
(33,355)
Operating expenses:
 
 
 
 
Salaries and benefits
0 
0 
0 
0 
Cost to provide enrollment services
0 
0 
0 
0 
Depreciation and amortization
0 
0 
0 
0 
Other
0 
0 
0 
0 
Intersegment expenses, net
(13,903)
(16,401)
(28,856)
(33,355)
Total operating expenses
(13,903)
(16,401)
(28,856)
(33,355)
Income (loss) before income taxes and corporate overhead allocation
0 
0 
0 
0 
Corporate overhead allocation
0 
0 
0 
0 
Income (loss) before income taxes
0 
0 
0 
0 
Income tax (expense) benefit
0 
0 
0 
0 
Net income (loss)
0 
0 
0 
0 
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income (loss) attributable to Nelnet, Inc.
$ 0 
$ 0 
$ 0 
$ 0 
Major Customer (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Concentration Risk [Line Items]
 
 
 
 
Concentration Risk, Customer
 
 
Department 
 
Concentration Risk Dollar Value [Member]
 
 
 
 
Concentration Risk [Line Items]
 
 
 
 
Loan and guaranty servicing revenue
$ 22.1 
$ 16.1 
$ 42.5 
$ 30.9 
Related Party Transactions Transactions with Union Financial Services, Inc. (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30, 2013
Nelnet, Inc. [Member]
 
Related Party Transaction [Line Items]
 
Aircraft purchase price
$ 5.8 
Percent of aircraft owned after the transaction
65.00% 
Union Financial Services Inc. [Member]
 
Related Party Transaction [Line Items]
 
Proceeds from sale of percentage of aircraft
$ 2.0 
Percent of aircraft owned after the transaction
35.00% 
Related Party Transactions Investment Services (Details) (February 14, 2013 Whitetail Rock Capital Management management agreement [Member] [Member], USD $)
In Millions, unless otherwise specified
Jun. 30, 2013
Related Party Transaction [Line Items]
 
Basis points Whitetail Rock Capital Management earns from Union Bank on outstanding balance
50 
Amount invested in funds under Whitetail Rock Capital Management management agreement
$ 34.6 
Maximum percent of gains from the sale of securities managed by Whitetail Rock Capital Management paid to Whitetail Rock Capital Management as additional fees
50.00% 
Percent of basis points earned on outstanding balance paid to custodian
50.00% 
Amount invested in funds under Whitetail Rock Capital Management management as of the date the fund was established
34.5 
Chief Executive Officer [Member]
 
Related Party Transaction [Line Items]
 
Amount invested in funds under Whitetail Rock Capital Management management agreement
3.0 
Angela L. Muhleisen (who is Mr. Dunlap's sister, as well as Director, Chairperson, President, and Chief Executive Officer of Union Bank) [Member]
 
Related Party Transaction [Line Items]
 
Amount invested in funds under Whitetail Rock Capital Management management agreement
2.0 
Whitetail Rock Capital Management [Member]
 
Related Party Transaction [Line Items]
 
Amount invested in funds under Whitetail Rock Capital Management management agreement
$ 0.1 
Assets and Liabilities that are Measured at Fair Value (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2013
Fair Value, Measurements, Recurring [Member]
Student loan asset-backed securities [Member]
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Student loan asset-backed securities [Member]
Jun. 30, 2013
Fair Value, Measurements, Recurring [Member]
Equity securities [Member]
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Equity securities [Member]
Jun. 30, 2013
Fair Value, Measurements, Recurring [Member]
Debt securities [Member]
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Debt securities [Member]
Jun. 30, 2013
Fair Value, Measurements, Recurring [Member]
Level 1 [Member]
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Level 1 [Member]
Jun. 30, 2013
Fair Value, Measurements, Recurring [Member]
Level 1 [Member]
Student loan asset-backed securities [Member]
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Level 1 [Member]
Student loan asset-backed securities [Member]
Jun. 30, 2013
Fair Value, Measurements, Recurring [Member]
Level 1 [Member]
Equity securities [Member]
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Level 1 [Member]
Equity securities [Member]
Jun. 30, 2013
Fair Value, Measurements, Recurring [Member]
Level 1 [Member]
Debt securities [Member]
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Level 1 [Member]
Debt securities [Member]
Jun. 30, 2013
Fair Value, Measurements, Recurring [Member]
Level 2 [Member]
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Level 2 [Member]
Jun. 30, 2013
Fair Value, Measurements, Recurring [Member]
Level 2 [Member]
Student loan asset-backed securities [Member]
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Level 2 [Member]
Student loan asset-backed securities [Member]
Jun. 30, 2013
Fair Value, Measurements, Recurring [Member]
Level 2 [Member]
Equity securities [Member]
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Level 2 [Member]
Equity securities [Member]
Jun. 30, 2013
Fair Value, Measurements, Recurring [Member]
Level 2 [Member]
Debt securities [Member]
Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Level 2 [Member]
Debt securities [Member]
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
 
 
$ 177,241 
$ 83,312 
$ 173,303 
$ 77,652 
$ 3,407 
$ 4,873 
$ 531 
$ 787 
$ 3,938 
$ 5,660 
$ 0 
$ 0 
$ 3,407 
$ 4,873 
$ 531 
$ 787 
$ 173,303 
$ 77,652 
$ 173,303 
$ 77,652 
$ 0 
$ 0 
$ 0 
$ 0 
Fair value of derivative instruments
 
 
98,996 
97,441 
 
 
 
 
 
 
0 
0 
 
 
 
 
 
 
98,996 
97,441 
 
 
 
 
 
 
Total assets
 
 
276,237 
180,753 
 
 
 
 
 
 
3,938 
5,660 
 
 
 
 
 
 
272,299 
175,093 
 
 
 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of derivative instruments
 
 
24,897 
70,890 
 
 
 
 
 
 
0 
0 
 
 
 
 
 
 
24,897 
70,890 
 
 
 
 
 
 
Total liabilities
 
 
24,897 
70,890 
 
 
 
 
 
 
0 
0 
 
 
 
 
 
 
24,897 
70,890 
 
 
 
 
 
 
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value of Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2012
Mar. 31, 2012
Jun. 30, 2011
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
 
Student loans receivable
$ 24,575,636 
$ 24,830,621 
 
 
 
Cash and cash equivalents
68,584 
66,031 
56,255 
66,031 
42,570 
Investments
177,241 
83,312 
 
 
 
Restricted cash - due to customers
84,182 
96,516 
 
 
 
Accrued interest receivable
296,538 
307,518 
 
 
 
Derivative instruments
98,996 
97,441 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
 
Bonds and notes payable
24,690,952 
25,098,835 
 
 
 
Accrued interest payable
14,760 
14,770 
 
 
 
Due to customers
84,182 
96,516 
 
 
 
Derivative instruments
24,897 
70,890 
 
 
 
Level 1 [Member]
 
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
 
Student loans receivable
0 
0 
 
 
 
Cash and cash equivalents
68,584 
66,031 
 
 
 
Investments
3,938 
5,660 
 
 
 
Restricted cash
671,342 
806,632 
 
 
 
Restricted cash - due to customers
84,182 
96,516 
 
 
 
Restricted investments
8,385 
8,830 
 
 
 
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
84,182 
96,516 
 
 
 
Derivative instruments
0 
0 
 
 
 
Level 2 [Member]
 
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
 
Student loans receivable
0 
0 
 
 
 
Cash and cash equivalents
0 
0 
 
 
 
Investments
173,303 
77,652 
 
 
 
Restricted cash
0 
0 
 
 
 
Restricted cash - due to customers
0 
0 
 
 
 
Restricted investments
0 
0 
 
 
 
Accrued interest receivable
296,538 
307,518 
 
 
 
Derivative instruments
98,996 
97,441 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
 
Bonds and notes payable
24,253,072 
24,486,008 
 
 
 
Accrued interest payable
14,760 
14,770 
 
 
 
Due to customers
0 
0 
 
 
 
Derivative instruments
24,897 
70,890 
 
 
 
Level 3 [Member]
 
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
 
Student loans receivable
25,230,818 
25,418,623 
 
 
 
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]
 
 
 
 
 
Student loans receivable
25,230,818 
25,418,623 
 
 
 
Cash and cash equivalents
68,584 
66,031 
 
 
 
Investments
177,241 
83,312 
 
 
 
Restricted cash
671,342 
806,632 
 
 
 
Restricted cash - due to customers
84,182 
96,516 
 
 
 
Restricted investments
8,385 
8,830 
 
 
 
Accrued interest receivable
296,538 
307,518 
 
 
 
Derivative instruments
98,996 
97,441 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
 
Bonds and notes payable
24,253,072 
24,486,008 
 
 
 
Accrued interest payable
14,760 
14,770 
 
 
 
Due to customers
84,182 
96,516 
 
 
 
Derivative instruments
24,897 
70,890 
 
 
 
Carrying value [Member]
 
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
 
Student loans receivable
24,575,636 
24,830,621 
 
 
 
Cash and cash equivalents
68,584 
66,031 
 
 
 
Investments
177,241 
83,312 
 
 
 
Restricted cash
671,342 
806,632 
 
 
 
Restricted cash - due to customers
84,182 
96,516 
 
 
 
Restricted investments
8,385 
8,830 
 
 
 
Accrued interest receivable
 
307,518 
 
 
 
Derivative instruments
98,996 
97,441 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
 
Bonds and notes payable
24,690,952 
25,098,835 
 
 
 
Accrued interest payable
14,760 
14,770 
 
 
 
Due to customers
84,182 
96,516 
 
 
 
Derivative instruments
$ 24,897 
$ 70,890 
 
 
 
Legal Proceedings (Details) (Pending or Threatened Litigation [Member], USD $)
6 Months Ended
Jun. 30, 2013
Loss Contingencies [Line Items]
 
Loss contingency, inestimable loss
With respect to each of the legal proceedings described below, due to the preliminary 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 a reasonably possible loss, if any, or range of reasonably possible losses, if any, 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 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