NELNET INC, 10-Q filed on 5/10/2013
Quarterly Report
Document and Entity Information Document
3 Months Ended
Mar. 30, 2013
Apr. 30, 2013
Common Class A [Member]
Apr. 30, 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
 
34,995,083 
11,495,377 
Amendment Flag
false 
 
 
Entity Central Index Key
0001258602 
 
 
Entity Filer Category
Accelerated Filer 
 
 
Document Period End Date
Mar. 31, 2013 
 
 
Document Fiscal Year Focus
2013 
 
 
Document Fiscal Period Focus
Q1 
 
 
Consolidated Balance Sheets (unaudited) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Assets:
 
 
Student loans receivable (net of allowance for loan losses)
$ 24,885,316,000 
$ 24,830,621,000 
Cash and cash equivalents:
 
 
Cash and cash equivalents - not held at a related party
7,219,000 
7,567,000 
Cash and cash equivalents - held at a related party
42,847,000 
58,464,000 
Total cash and cash equivalents
50,066,000 
66,031,000 
Investments
159,498,000 
83,312,000 
Restricted cash and investments
814,767,000 
815,462,000 
Restricted cash - due to customers
47,445,000 
96,516,000 
Accrued interest receivable
305,177,000 
307,518,000 
Accounts receivable (net of allowance for doubtful accounts)
73,239,000 
63,638,000 
Goodwill
117,118,000 
117,118,000 
Intangible assets, net
8,556,000 
9,393,000 
Property and equipment, net
31,107,000 
31,869,000 
Other assets
91,737,000 
88,976,000 
Fair value of derivative instruments
61,198,000 
97,441,000 
Total assets
26,645,224,000 
26,607,895,000 
Liabilities:
 
 
Bonds and notes payable
25,125,177,000 
25,098,835,000 
Accrued interest payable
15,861,000 
14,770,000 
Other liabilities
176,340,000 
161,671,000 
Due to customers
47,445,000 
96,516,000 
Fair value of derivative instruments
53,997,000 
70,890,000 
Total liabilities
25,418,820,000 
25,442,682,000 
Nelnet, Inc. shareholders' equity:
 
 
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding
0 
0 
Common stock:
 
 
Additional paid-in capital
27,786,000 
32,540,000 
Retained earnings
1,192,822,000 
1,129,389,000 
Accumulated other comprehensive earnings
5,050,000 
2,813,000 
Total Nelnet, Inc. shareholders' equity
1,226,123,000 
1,165,208,000 
Noncontrolling interest
281,000 
5,000 
Total equity
1,226,404,000 
1,165,213,000 
Commitments and contingencies
 
 
Total liabilities and equity
26,645,224,000 
26,607,895,000 
Common Class A [Member]
 
 
Common stock:
 
 
Common stock
350,000 
351,000 
Common Class B [Member]
 
 
Common stock:
 
 
Common stock
115,000 
115,000 
Variable Interest Entity, Primary Beneficiary [Member]
 
 
Assets:
 
 
Student loans receivable (net of allowance for loan losses)
24,957,745,000 
24,920,130,000 
Cash and cash equivalents:
 
 
Restricted cash and investments
768,400,000 
753,511,000 
Other assets
256,832,000 
306,454,000 
Fair value of derivative instruments
47,997,000 
82,841,000 
Liabilities:
 
 
Bonds and notes payable
(25,218,392,000)
(25,209,341,000)
Other liabilities
(319,248,000)
(348,364,000)
Commitments and contingencies
 
 
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net
$ 493,334,000 
$ 505,231,000 
Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Allowance for loan losses
$ 49,409 
$ 51,902 
Allowance for doubtful accounts (in Dollars)
$ 1,383 
$ 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
35,029,341 
35,116,913 
Shares Outstanding
35,029,341 
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
Mar. 31, 2013
Mar. 31, 2012
Interest income:
 
 
Loan interest
$ 155,539 
$ 153,058 
Investment interest
1,617 
1,095 
Total interest income
157,156 
154,153 
Interest expense:
 
 
Interest on bonds and notes payable
58,358 
69,297 
Net interest income
98,798 
84,856 
Less provision for loan losses
5,000 
6,000 
Net interest income after provision for loan losses
93,798 
78,856 
Other income (expense):
 
 
Loan and guaranty servicing revenue
55,601 
49,488 
Tuition payment processing and campus commerce revenue
23,411 
21,913 
Enrollment services revenue
28,957 
31,664 
Other income
9,416 
10,954 
Gain on sale of loans and debt repurchases
1,407 
0 
Derivative market value and foreign currency adjustments and derivative settlements, net
1,072 
(15,180)
Total other income (expense)
119,864 
98,839 
Operating expenses:
 
 
Salaries and benefits
47,905 
49,095 
Cost to provide enrollment services
19,642 
21,678 
Depreciation and amortization
4,377 
8,136 
Other
34,941 
32,263 
Total operating expenses
106,865 
111,172 
Income before income taxes
106,797 
66,523 
Income tax expense
(38,447)
(23,230)
Net income
68,350 
43,293 
Net income attributable to noncontrolling interest
271 
152 
Net income attributable to Nelnet, Inc.
$ 68,079 
$ 43,141 
Earnings per common share:
 
 
Net income attributable to Nelnet, Inc. shareholders - basic
$ 1.46 
$ 0.91 
Basic
46,658,031 
47,298,195 
Diluted
46,658,031 
47,298,195 
Consolidated Statements of Comprehensive Income (unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net income
$ 68,350 
$ 43,293 
Available-for-sale securities:
 
 
Unrealized holding gains arising during period, net
4,520 
2,182 
Less reclassification adjustment for gains recognized in net income, net
(957)
(1,248)
Income tax effect
(1,326)
(329)
Total other comprehensive income
2,237 
605 
Comprehensive income
70,587 
43,898 
Comprehensive income attributable to noncontrolling interest
271 
152 
Comprehensive income attributable to Nelnet, Inc.
$ 70,316 
$ 43,746 
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 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 Parent
43,141 
 
 
 
 
43,141 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Issuance of minority membership interest
5 
 
 
 
 
 
 
 
5 
Net income
43,293 
 
 
 
 
 
 
 
152 
Other comprehensive income
605 
 
 
 
 
 
605 
 
 
Cash dividend on Class A and Class B common stock
(4,712)
 
 
 
 
(4,712)
 
 
 
Issuance of common stock, net of forfeitures
2,426 
 
2 
0 
2,424 
 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
220,584 
0 
 
 
 
 
 
Compensation expense for stock based awards
395 
 
 
 
395 
 
 
 
 
Repurchase of common stock
(1,116)
 
0 
0 
(1,116)
 
 
 
 
Repurchase of common stock (in Shares)
 
 
(42,629)
0 
 
 
 
 
 
Reduction of employee stock notes receivable
772 
 
 
 
 
 
 
772 
 
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 
 
 
 
 
 
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 Parent
68,079 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Issuance of minority membership interest
5 
 
 
 
 
 
 
 
5 
Net income
68,350 
 
 
 
 
68,079 
 
 
271 
Other comprehensive income
2,237 
 
 
 
 
 
2,237 
 
 
Cash dividend on Class A and Class B common stock
(4,646)
 
 
 
 
(4,646)
 
 
 
Issuance of common stock, net of forfeitures
1,273 
 
1 
0 
1,272 
 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
125,963 
0 
 
 
 
 
 
Compensation expense for stock based awards
676 
 
 
 
676 
 
 
 
 
Repurchase of common stock
(6,704)
 
(2)
0 
(6,702)
 
 
 
 
Repurchase of common stock (in Shares)
 
 
(213,535)
0 
 
 
 
 
 
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 
 
 
 
 
 
Consolidated Statements of Shareholders' Equity (unaudited) (Parentheticals)
3 Months Ended
Mar. 30, 2013
Mar. 31, 2013
Mar. 31, 2012
Common Class A [Member]
 
 
 
Dividends paid per common share
$ 0.10 
$ 0.10 
$ 0.10 
Common Class B [Member]
 
 
 
Dividends paid per common share
$ 0.10 
$ 0.10 
$ 0.10 
Consolidated Statements of Cash Flows (unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net income attributable to Nelnet, Inc.
$ 68,079 
$ 43,141 
Net income attributable to noncontrolling interest
271 
152 
Net income
68,350 
43,293 
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
20,079 
28,072 
Student loan discount accretion
(9,075)
(10,551)
Provision for loan losses
5,000 
6,000 
Derivative market value adjustment
19,507 
(16,835)
Foreign currency transaction adjustment
(28,763)
32,242 
Gain on sale of loans
(33)
0 
Gain from debt repurchases
(1,374)
0 
Gain from sales of available-for-sale securities, net
(957)
(1,248)
Deferred income tax expense (benefit)
4,874 
(7,190)
Other non-cash items
(355)
499 
Decrease in accrued interest receivable
2,341 
12,023 
Increase in accounts receivable
(9,601)
(561)
Decrease in other assets
293 
1,140 
Increase (decrease) in accrued interest payable
1,091 
(353)
Increase in other liabilities
13,614 
14,040 
Net cash provided by operating activities
84,991 
100,571 
Cash flows from investing activities:
 
 
Purchases of student loans
(758,508)
(176,433)
Net proceeds from student loan repayments, claims, capitalized interest, participations, and other
688,387 
597,034 
Proceeds from sale of student loans
11,284 
32,592 
Purchases of available-for-sale securities
(86,776)
(27,719)
Proceeds from sales of available-for-sale securities
13,405 
6,843 
Purchases of property and equipment, net
(2,778)
(2,306)
Decrease (increase) in restricted cash and investments, net
695 
(91,631)
Business acquisition contingency payments
0 
(1,550)
Net cash (used in) provided by investing activities
(134,291)
336,830 
Cash flows from financing activities:
 
 
Payments on bonds and notes payable
(2,244,266)
(692,408)
Proceeds from issuance of bonds and notes payable
2,295,865 
279,667 
Payments of debt issuance costs
(7,093)
(1,595)
Dividends paid
(4,646)
(4,712)
Repurchases of common stock
(6,704)
(1,116)
Proceeds from issuance of common stock
174 
116 
Payments received on employee stock notes receivable
0 
772 
Issuance of noncontrolling interest
5 
5 
Net cash provided by (used in) financing activities
33,335 
(419,271)
Net (decrease) increase in cash and cash equivalents
(15,965)
18,130 
Cash and cash equivalents, beginning of period
66,031 
66,031 
Cash and cash equivalents, end of period
50,066 
60,700 
Supplemental disclosures of cash flow information:
 
 
Interest paid
48,696 
61,338 
Income taxes paid, net of refunds
$ 5,489 
$ 2,920 
Basis of Financial Reporting
Basis of Financial Reporting
Basis of Financial Reporting

The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of March 31, 2013 and for the three months ended March 31, 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 months ended March 31, 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
Financing Receivables [Text Block]
2.    Student Loans Receivable and Allowance for Loan Losses

Student loans receivable consisted of the following:
 
As of
 
As of
 
March 31, 2013
 
December 31, 2012
Federally insured loans
 
 
 
Stafford and other
$
7,145,693

 
7,261,114

Consolidation
17,852,598

 
17,708,732

Total
24,998,291

 
24,969,846

Non-federally insured loans
32,306

 
26,034

 
25,030,597

 
24,995,880

Loan discount, net of unamortized loan premiums and deferred origination costs
(95,872
)
 
(113,357
)
Allowance for loan losses – federally insured loans
(37,913
)
 
(40,120
)
Allowance for loan losses – non-federally insured loans
(11,496
)
 
(11,782
)
 
$
24,885,316

 
24,830,621

Allowance for federally insured loans as a percentage of such loans
0.15
%
 
0.16
%
Allowance for non-federally insured loans as a percentage of such loans
35.59
%
 
45.26
%


Activity in the Allowance for Loan Losses

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

 
48,482

Provision for loan losses:
 
 
 
Federally insured loans
6,000

 
6,000

Non-federally insured loans
(1,000
)
 
—

Total provision for loan losses
5,000

 
6,000

Charge-offs:
 

 
 

Federally insured loans
(5,990
)
 
(5,495
)
Non-federally insured loans
(772
)
 
(769
)
Total charge-offs
(6,762
)
 
(6,264
)
Recoveries - non-federally insured loans
368

 
351

Purchase (sale) of federally insured loans and other, net
(2,218
)
 
(927
)
Transfer from repurchase obligation related to non-federally insured loans purchased, net
1,119

 
793

Balance at end of period
$
49,409

 
48,435

 
 
 
 
Allocation of the allowance for loan losses:
 
 
 

Federally insured loans
$
37,913

 
36,783

Non-federally insured loans
11,496

 
11,652

Total allowance for loan losses
$
49,409

 
48,435


Repurchase Obligations

As of March 31, 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, on January 13, 2011, the Company sold a portfolio of non-federally insured loans for proceeds of $91.3 million (100% of par value).  The Company retained credit risk related to this portfolio and will pay cash to purchase back any loans which become 60 days delinquent. As of March 31, 2013, the balance of this portfolio was $70.5 million (par value).

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

 
19,223

Repurchase obligation transferred to the allowance for loan losses related to loans purchased, net
(1,119
)
 
(793
)
Ending balance
$
15,011

 
18,430


Student Loan Status and Delinquencies

Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.  The percent of non-federally insured loans that were delinquent 31 days or greater as of March 31, 2013, December 31, 2012, and March 31, 2012 was 20.5 percent, 28.6 percent, and 29.5 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 March 31, 2013
 
As of December 31, 2012
 
As of March 31, 2012
Federally insured loans, excluding rehabilitation loans purchased:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
2,933,416

 
 
 
$
2,949,320

 
 
 
$
3,568,310

 
 
Loans in forbearance
2,890,574

 
 
 
2,992,023

 
 
 
3,279,854

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
14,501,802

 
87.8
%
 
14,583,044

 
87.6
%
 
14,456,472

 
87.5
%
Loans delinquent 31-60 days
621,296

 
3.8

 
652,351

 
3.9

 
531,045

 
3.2

Loans delinquent 61-90 days
409,209

 
2.5

 
330,885

 
2.0

 
320,817

 
1.9

Loans delinquent 91-120 days
241,113

 
1.5

 
247,381

 
1.5

 
201,811

 
1.2

Loans delinquent 121-270 days
512,875

 
3.1

 
603,942

 
3.6

 
712,173

 
4.3

Loans delinquent 271 days or greater
211,461

 
1.3

 
220,798

 
1.4

 
306,970

 
1.9

Total loans in repayment
16,497,756

 
100.0
%
 
16,638,401

 
100.0
%
 
16,529,288

 
100.0
%
Total federally insured loans, excluding rehabilitation loans purchased
$
22,321,746

 
 

 
$
22,579,744

 
 

 
$
23,377,452

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rehabilitation loans purchased:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
213,101

 
 
 
$
150,317

 
 
 
$
57,321

 
 
Loans in forbearance
394,733

 
 
 
330,278

 
 
 
83,773

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
877,800

 
42.4
%
 
670,205

 
35.1
%
 
240,435

 
66.2
%
Loans delinquent 31-60 days
138,249

 
6.7

 
113,795

 
6.0

 
26,431

 
7.3

Loans delinquent 61-90 days
109,129

 
5.3

 
79,691

 
4.2

 
16,973

 
4.7

Loans delinquent 91-120 days
121,468

 
5.9

 
186,278

 
9.8

 
14,026

 
3.9

Loans delinquent 121-270 days
573,054

 
27.7

 
633,001

 
33.1

 
45,396

 
12.5

Loans delinquent 271 days or greater
249,011

 
12.0

 
226,537

 
11.8

 
19,676

 
5.4

Total loans in repayment
2,068,711

 
100.0
%
 
1,909,507

 
100.0
%
 
362,937

 
100.0
%
Total rehabilitation loans purchased
2,676,545

 
 
 
2,390,102

 
 
 
504,031

 
 
Total federally insured loans
$
24,998,291

 
 
 
$
24,969,846

 
 
 
$
23,881,483

 
 
Bonds and Notes Payable
Bonds and Notes Payable
Bonds and Notes Payable

The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
As of March 31, 2013
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
22,116,616

 
0.30% - 6.90%
 
11/25/15 - 8/25/52
Bonds and notes based on auction or remarketing
962,200

 
0.14% - 2.18%
 
5/1/28 - 5/25/42
Total variable-rate bonds and notes
23,078,816

 
 
 
 
FFELP warehouse facilities
1,942,239

 
0.20% - 0.28%
 
4/2/15 - 2/28/16
Unsecured line of credit
115,000

 
1.70%
 
3/28/18
Unsecured debt - Junior Subordinated Hybrid Securities
99,232

 
3.66%
 
9/15/61
Other borrowings
61,878

 
1.70% - 5.10%
 
11/14/13 - 11/11/15
 
25,297,165

 
 
 
 
Discount on bonds and notes payable
(171,988
)
 
 
 
 
Total
$
25,125,177

 
 
 
 
 
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 - 8/25/52
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 March 31, 2013, the Company had four FFELP warehouse facilities as summarized below.
 
 
NHELP-I
 
NFSLW-I
 
NHELP-III (a)
 
NHELP-II
 
Total
Maximum financing amount
 
$
500,000

 
500,000

 
500,000

 
500,000

 
2,000,000

Amount outstanding
 
487,584

 
499,196

 
477,033

 
478,426

 
1,942,239

Amount available
 
$
12,416

 
804

 
22,967

 
21,574

 
57,761

Expiration of liquidity provisions
 
October 2, 2013

 
June 28, 2013

 
January 14, 2014

 
February 28, 2014

 
 
Final maturity date
 
April 2, 2015

 
June 30, 2015

 
January 17, 2016

 
February 28, 2016

 
 
Maximum advance rates
 
80.0 - 100.0%

 
90.0 - 98.0%

 
92.2 - 95.0%

 
88.5 - 93.5%

 
 
Minimum advance rates
 
80.0 - 95.0%

 
84.5 - 90.0%

 
92.2 - 95.0%

 
88.5 - 93.5%

 
 
Advanced as equity support
 
$
18,986

 
39,363

 
26,429

 
45,904

 
130,682

(a)
The Company entered into this facility on January 16, 2013.
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 securities transactions completed during the first quarter of 2013.
 
 
2013-1
 
2013-2 (a)
 
Total
Date securities issued
 
1/31/13
 
2/28/13
 
 
Total original principal amount
 
$
437,500

 
1,122,000

 
$
1,559,500

 
 
 
 
 
 
 
Class A:
 
 
 
 
 
 
Total original principal amount
 
$
428,000

 
1,122,000

 
1,550,000

Bond discount
 
—

 
(3,325
)
 
(3,325
)
Issue price
 
$
428,000

 
1,118,675

 
1,546,675

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

 
7/25/40

 
 
 
 
 
 
 
 
 
Class B:
 
 
 
 
 
 
Total original principal amount
 
$
9,500

 
 
 
9,500

Bond discount
 
(1,525
)
 
 
 
(1,525
)
Issue price
 
$
7,975

 
 
 
7,975

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

 
 
 
 

(a)
Total original principal amount excludes the Class B subordinated tranche that was retained at issuance totaling $34.0 million.  These notes are not included in the Company's consolidated balance sheet.  If the Company sells these notes to third parties, the Company would obtain cash proceeds equal to the market value of the notes on the date of such sale.  Upon sale, these notes would be shown as “bonds and notes payable” in the Company's consolidated balance sheet.  The Company believes the market value of such notes is currently less than par value.  Any excess of the par value over the market value on the date of sale would be recognized by the Company as interest expense over the life of the bonds.

On April 30, 2013, the Company completed an asset-backed securities transaction totaling $765.0 million. The Company used the proceeds from the sale of these notes to purchase student loans, including loans previously financed in the FFELP warehouse facilities.

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. Per the terms of the agreement, no additional loans can be financed in this facility and the facility expired for future use by the Company.

Unsecured Line of Credit

On February 17, 2012, the Company entered into a $250.0 million unsecured line of credit. On March 28, 2013, the facility was amended to increase the line of credit to $275.0 million and extend the maturity date from February 17, 2016 to March 28, 2018. There were no significant financial covenant changes made as part of this amendment. As of March 31, 2013, the unsecured line of credit had $115.0 million outstanding and $160.0 million was available for future use.

Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments

The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are 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 March 31, 2013, the Company had $23.9 billion and $1.1 billion of FFELP loans indexed to the one-month LIBOR rate and the three-month treasury bill rate, respectively, both of which reset daily, and $16.0 billion of debt indexed to three-month LIBOR, which resets quarterly, and $7.1 billion of debt indexed to one-month LIBOR, which resets monthly.

The Company has used derivative instruments to 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 March 31, 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 March 31, 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 indice plus a fixed spread that is dependent upon when the loan was originated, the loan's repayment status, and funding sources for the loan. 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. In accordance with legislation enacted in 2006, 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 March 31, 2013 and December 31, 2012, the Company had $11.2 billion and $11.3 billion, respectively, of student loan assets that were earning fixed rate floor income of which the weighted average estimated variable conversion rate for these loans, which is the estimated short-term interest rate at which loans would convert to a variable rate, was 1.82%.

The following table summarizes the outstanding derivative instruments used by the Company as of both March 31, 2013 and December 31, 2012 to economically hedge loans earning fixed rate floor income.

Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
2013
 
$
3,150,000

 
0.71
%
2014
 
1,750,000

 
0.71

2015
 
1,100,000

 
0.89

2016
 
750,000

 
0.85

2017
 
750,000

 
0.99

 
 
$
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 March 31, 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 the Hybrid Securities to a fixed rate of 7.66%.
 
 
 
As of March 31, 2013
 
As of December 31, 2012
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
65,000

 
4.29
%
 
$
75,000

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

Foreign Currency Exchange Risk

During 2006, the Company completed separate debt offerings of student loan asset-backed securities that included €420.5 million and €352.7 million 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 indice based on notional amounts of €420.5 million and €352.7 million and pays a spread to the LIBOR indice 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 in effect between the U.S. dollar and Euro as of the issuance of the notes.
The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instruments. These items are included in the Company's consolidated statements of income.
 
Three months ended March 31,
 
2013
 
2012
Re-measurement of Euro Notes
$
28,763

 
(32,242
)
Change in fair value of cross currency interest rate swaps
(34,844
)
 
13,026

Total impact to consolidated statements of income - income (expense) (a)
$
(6,081
)
 
(19,216
)
(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
 
March 31,
2013
 
December 31,
2012
 
March 31,
2013
 
December 31,
2012
1:3 basis swaps
$
13,201

 
12,239

 
244

 
1,215

Interest rate swaps - floor income hedges
—

 
—

 
36,491

 
45,913

Interest rate swaps - hybrid debt hedges
—

 
—

 
17,262

 
23,762

Cross-currency interest rate swaps
47,997

(a)
82,841

 
—

 
—

Other
—

 
2,361

 
—

 
—

Total
$
61,198

 
97,441

 
53,997

(b)
70,890



(a)
As of March 31, 2013, the trustee for certain of the Company's asset-backed securities transactions held $19.5 million of collateral from the counterparty on the cross-currency interest rate swaps.

(b)
As of March 31, 2013, the Company had $47.1 million posted as collateral to derivative counterparties, which is included in “restricted cash and investments” in the Company's consolidated balance sheet.


During the three months ended March 31, 2013, the Company terminated certain derivatives for gross proceeds and payments of $2.7 million and $2.9 million, respectively. 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 quarter 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 recognized in the consolidated balance sheets related to the Company's derivative portfolio 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
 
Net amount
Balance as of March 31, 2013
 
$
61,198

 
(1,321
)
 
(19,473
)
 
40,404

Balance as of December 31, 2012
 
97,441

 
(1,803
)
 
(19,993
)
 
75,645


 
 
 
 
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
 
Net amount
Balance as of March 31, 2013
 
$
53,997

 
(1,321
)
 
(47,148
)
 
5,528

Balance as of December 31, 2012
 
70,890

 
(1,803
)
 
(63,128
)
 
5,959


The following table summarizes the effect of derivative instruments in the consolidated statements of income.
 
Three months ended March 31,
 
2013
 
2012
Settlements:
 

 
 

1:3 basis swaps
$
911

 
1,381

Interest rate swaps - floor income hedges
(8,304
)
 
(3,137
)
Interest rate swaps - hybrid debt hedges
(645
)
 
—

Cross-currency interest rate swaps
(146
)
 
2,109

Other
—

 
(126
)
Total settlements - income (expense)
(8,184
)
 
227

Change in fair value:
 

 
 

1:3 basis swaps
1,933

 
3,002

Interest rate swaps - floor income hedges
9,422

 
(5,634
)
Interest rate swaps - hybrid debt hedges
3,640

 
6,197

Cross-currency interest rate swaps
(34,844
)
 
13,026

Other
342

 
244

Total change in fair value - income (expense)
(19,507
)
 
16,835

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

 
(32,242
)
Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense)
$
1,072

 
(15,180
)


Investments
Investments
Investments

A summary of the Company's investments and restricted investments follows:
 
As of March 31, 2013
 
As of December 31, 2012
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses (a)
 
Fair value
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities (b)
$
139,544

 
7,703

 
(1,060
)
 
146,187

 
64,970

 
3,187

 
(179
)
 
67,978

Equity securities
1,389

 
1,377

 
(4
)
 
2,762

 
3,449

 
1,604

 
(180
)
 
4,873

Total available-for-sale investments
$
140,933

 
9,080

 
(1,064
)
 
148,949

 
68,419

 
4,791

 
(359
)
 
72,851

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities (b)
 
 
 
 
 
 
10,549

 
 
 
 
 
 
 
10,461

Total available-for-sale and trading investments

 

 

 
$
159,498

 
 
 
 
 


 
83,312

Restricted Investments (c):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts - held-to-maturity
 
 
 
 
 
 
$
8,166

 
 
 
 
 
 
 
8,830


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

(b)
As of March 31, 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 March 31,
Affected line item in the consolidated statements of income - income (expense):
 
2013
 
2012
Other income
 
$
957

 
1,248

Income tax expense
 
(354
)
 
(440
)
Net
 
$
603

 
808

Earnings per Common Share
Earnings Per Common Share
Earnings per Common Share

Presented below is a summary of the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock.
 
Three months ended March 31, 2013
 
Three months ended March 31, 2012
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
67,517

 
562

 
68,079

 
42,862

 
279

 
43,141

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,272,324

 
385,707

 
46,658,031

 
46,989,773

 
308,422

 
47,298,195

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share - basic and diluted
$
1.46

 
1.46

 
1.46

 
0.91

 
0.91

 
0.91



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 March 31, 2013, a cumulative amount of 122,528 shares have been deferred by directors under the Non-employee Directors Compensation Plan and will be issued upon a member's termination from 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 Activities and Overhead also includes certain corporate activities and overhead functions related to executive management, human resources, accounting, legal, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services.

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

 
—

 
—

 
10

 
155,654

 
2,311

 
(819
)
 
157,156

Interest expense
—

 
—

 
—

 
—

 
57,482

 
1,695

 
(819
)
 
58,358

Net interest income
10

 
—

 
—

 
10

 
98,172

 
616

 
—

 
98,798

Less provision for loan losses
—

 
—

 
—

 
—

 
5,000

 
—

 
—

 
5,000

Net interest income after provision for loan losses
10

 
—

 
—

 
10

 
93,172

 
616

 
—

 
93,798

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
55,601

 
—

 
—

 
55,601

 
—

 
—

 
—

 
55,601

Intersegment servicing revenue
14,953

 
—

 
—

 
14,953

 
—

 
—

 
(14,953
)
 
—

Tuition payment processing and campus commerce revenue
—

 
23,411

 
—

 
23,411

 
—

 
—

 
—

 
23,411

Enrollment services revenue
—

 
—

 
28,957

 
28,957

 
—

 
—

 
—

 
28,957

Other income
—

 
—

 
—

 
—

 
4,196

 
5,220

 
—

 
9,416

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
1,407

 
—

 
—

 
1,407

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
5,275

 
3,981

 
—

 
9,256

Derivative settlements, net
—

 
—

 
—

 
—

 
(7,539
)
 
(645
)
 
—

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

 
23,411

 
28,957

 
122,922

 
3,339

 
8,556

 
(14,953
)
 
119,864

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
28,444

 
9,359

 
5,767

 
43,570

 
562

 
3,773

 
—

 
47,905

Cost to provide enrollment services
—

 
—

 
19,642

 
19,642

 
—

 
—

 
—

 
19,642

Depreciation and amortization
2,789

 
1,138

 
61

 
3,988

 
—

 
389

 
—

 
4,377

Other
18,390

 
2,287

 
1,651

 
22,328

 
7,513

 
5,100

 
—

 
34,941

Intersegment expenses, net
935

 
1,425

 
1,149

 
3,509

 
15,142

 
(3,698
)
 
(14,953
)
 
—

Total operating expenses
50,558

 
14,209

 
28,270

 
93,037

 
23,217

 
5,564

 
(14,953
)
 
106,865

Income before income taxes and corporate overhead allocation
20,006

 
9,202

 
687

 
29,895

 
73,294

 
3,608

 
—

 
106,797

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

 
—

 
—

Income before income taxes
19,009

 
8,870

 
355

 
28,234

 
72,582

 
5,981

 
—

 
106,797

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

 
(38,447
)
Net income
11,786

 
5,499

 
220

 
17,505

 
45,001

 
5,844

 
—

 
68,350

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
271

 
—

 
271

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

 
5,499

 
220

 
17,505

 
45,001

 
5,573

 
—

 
68,079

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2012
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
20

 
4

 
—

 
24

 
153,512

 
1,588

 
(971
)
 
154,153

Interest expense
—

 
—

 
—

 
—

 
68,829

 
1,439

 
(971
)
 
69,297

Net interest income
20

 
4

 
—

 
24

 
84,683

 
149

 
—

 
84,856

Less provision for loan losses
—

 
—

 
—

 
—

 
6,000

 
—

 
—

 
6,000

Net interest income after provision for loan losses
20

 
4

 
—

 
24

 
78,683

 
149

 
—

 
78,856

Other income (expense):
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
49,488

 
—

 
—

 
49,488

 
—

 
—

 
—

 
49,488

Intersegment servicing revenue
16,954

 
—

 
—

 
16,954

 
—

 
—

 
(16,954
)
 
—

Tuition payment processing and campus commerce revenue
—

 
21,913

 
—

 
21,913

 
—

 
—

 
—

 
21,913

Enrollment services revenue
—

 
—

 
31,664

 
31,664

 
—

 
—

 
—

 
31,664

Other income
—

 
—

 
—

 
—

 
5,000

 
5,954

 
—

 
10,954

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
(21,604
)
 
6,197

 
—

 
(15,407
)
Derivative settlements, net
—

 
—

 
—

 
—

 
227

 
—

 
—

 
227

Total other income (expense)
66,442

 
21,913

 
31,664

 
120,019

 
(16,377
)
 
12,151

 
(16,954
)
 
98,839

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
29,042

 
8,618

 
6,279

 
43,939

 
719

 
4,437

 
—

 
49,095

Cost to provide enrollment services
—

 
—

 
21,678

 
21,678

 
—

 
—

 
—

 
21,678

Depreciation and amortization
4,413

 
1,740

 
1,617

 
7,770

 
—

 
366

 
—

 
8,136

Other
18,666

 
2,816

 
1,956

 
23,438

 
3,632

 
5,193

 
—

 
32,263

Intersegment expenses, net
1,385

 
1,333

 
848

 
3,566

 
17,143

 
(3,755
)
 
(16,954
)
 
—

Total operating expenses
53,506

 
14,507

 
32,378

 
100,391

 
21,494

 
6,241

 
(16,954
)
 
111,172

Income (loss) before income taxes and corporate overhead allocation
12,956

 
7,410

 
(714
)
 
19,652

 
40,812

 
6,059

 
—

 
66,523

Corporate overhead allocation
(1,503
)
 
(501
)
 
(501
)
 
(2,505
)
 
(1,392
)
 
3,897

 
—

 
—

Income (loss) before income taxes
11,453

 
6,909

 
(1,215
)
 
17,147

 
39,420

 
9,956

 
—

 
66,523

Income tax (expense) benefit
(4,352
)
 
(2,625
)
 
462

 
(6,515
)
 
(14,979
)
 
(1,736
)
 
—

 
(23,230
)
Net income (loss)
7,101

 
4,284

 
(753
)
 
10,632

 
24,441

 
8,220

 
—

 
43,293

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
152

 
—

 
152

Net income (loss) attributable to Nelnet, Inc.
$
7,101

 
4,284

 
(753
)
 
10,632

 
24,441

 
8,068

 
—

 
43,141

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 quarter 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 March 31, 2013, the outstanding balance of investments in SLABS Fund-III was $34.2 million.
Fair Value
Fair Value
Fair Value

The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the three months ended March 31, 2013.
 
As of March 31, 2013
 
As of December 31, 2012
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 


 
 
 
 
 
 
Student loan asset-backed securities
$
—

 
155,978

 
155,978

 
—

 
77,652

 
77,652

Equity securities
2,762

 
—

 
2,762

 
4,873

 
—

 
4,873

Debt securities
758

 
—

 
758

 
787

 
—

 
787

Total investments
3,520

 
155,978

 
159,498

 
5,660

 
77,652

 
83,312

Fair value of derivative instruments
—

 
61,198

 
61,198

 
—

 
97,441

 
97,441

Total assets
$
3,520

 
217,176

 
220,696

 
5,660

 
175,093

 
180,753

Liabilities:
 

 
 

 
 

 
 
 
 
 
 
Fair value of derivative instruments:
$
—

 
53,997

 
53,997

 
—

 
70,890

 
70,890

Total liabilities
$
—

 
53,997

 
53,997

 
—

 
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 March 31, 2013
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
25,718,774

 
24,885,316

 
—

 
—

 
25,718,774

Cash and cash equivalents
50,066

 
50,066

 
50,066

 
—

 
—

Investments
159,498

 
159,498

 
3,520

 
155,978

 
—

Restricted cash
806,601

 
806,601

 
806,601

 
—

 
—

Restricted cash – due to customers
47,445

 
47,445

 
47,445

 
—

 
—

Restricted investments
8,166

 
8,166

 
8,166

 
—

 
—

Accrued interest receivable
305,177

 
305,177

 
—

 
305,177

 
—

Derivative instruments
61,198

 
61,198

 
—

 
61,198

 
—

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
24,653,806

 
25,125,177

 
—

 
24,653,806

 
—

Accrued interest payable
15,861

 
15,861

 
—

 
15,861

 
—

Due to customers
47,445

 
47,445

 
47,445

 
—

 
—

Derivative instruments
53,997

 
53,997

 
—

 
53,997

 
—

 
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 in the notes to the consolidated financial statements included in the 2012 Annual Report.
Legal Proceedings
Legal Proceedings
Legal Proceedings

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 the Company, was filed in the U.S. federal District Court for the District of New Jersey (the “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 District Court has not established or recognized any class.

On April 14, 2012, the U.S. Court of Appeals for the Third Circuit (the "Appeals Court"), which has jurisdiction over the District Court, issued an order in an unrelated TCPA case which remanded that case to the 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 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.

Due to the preliminary stage of this matter 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.
Basis of Financial Reporting Significant Accounting Policies (Policies)
Basis of Financial Reporting 
Basis of Financial Reporting

The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of March 31, 2013 and for the three months ended March 31, 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 months ended March 31, 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").
Derivatives, Policy 

Student Loans Receivable and Allowance for Loan Losses (Tables)
Schedule of Accounts, Notes, Loans and Financing Receivable 
Student loans receivable consisted of the following:
 
As of
 
As of
 
March 31, 2013
 
December 31, 2012
Federally insured loans
 
 
 
Stafford and other
$
7,145,693

 
7,261,114

Consolidation
17,852,598

 
17,708,732

Total
24,998,291

 
24,969,846

Non-federally insured loans
32,306

 
26,034

 
25,030,597

 
24,995,880

Loan discount, net of unamortized loan premiums and deferred origination costs
(95,872
)
 
(113,357
)
Allowance for loan losses – federally insured loans
(37,913
)
 
(40,120
)
Allowance for loan losses – non-federally insured loans
(11,496
)
 
(11,782
)
 
$
24,885,316

 
24,830,621

Allowance for federally insured loans as a percentage of such loans
0.15
%
 
0.16
%
Allowance for non-federally insured loans as a percentage of such loans
35.59
%
 
45.26
%
Allowance for Credit Losses on Financing Receivables 
The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below.
 
Three months ended March 31,
 
2013
 
2012
Balance at beginning of period
$
51,902

 
48,482

Provision for loan losses:
 
 
 
Federally insured loans
6,000

 
6,000

Non-federally insured loans
(1,000
)
 
—

Total provision for loan losses
5,000

 
6,000

Charge-offs:
 

 
 

Federally insured loans
(5,990
)
 
(5,495
)
Non-federally insured loans
(772
)
 
(769
)
Total charge-offs
(6,762
)
 
(6,264
)
Recoveries - non-federally insured loans
368

 
351

Purchase (sale) of federally insured loans and other, net
(2,218
)
 
(927
)
Transfer from repurchase obligation related to non-federally insured loans purchased, net
1,119

 
793

Balance at end of period
$
49,409

 
48,435

 
 
 
 
Allocation of the allowance for loan losses:
 
 
 

Federally insured loans
$
37,913

 
36,783

Non-federally insured loans
11,496

 
11,652

Total allowance for loan losses
$
49,409

 
48,435


Accrual Related to Repurchase Obligation Rollforward 
As of March 31, 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, on January 13, 2011, the Company sold a portfolio of non-federally insured loans for proceeds of $91.3 million (100% of par value).  The Company retained credit risk related to this portfolio and will pay cash to purchase back any loans which become 60 days delinquent. As of March 31, 2013, the balance of this portfolio was $70.5 million (par value).

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

 
19,223

Repurchase obligation transferred to the allowance for loan losses related to loans purchased, net
(1,119
)
 
(793
)
Ending balance
$
15,011

 
18,430


Financing Receivable Credit Quality Indicators 
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 March 31, 2013
 
As of December 31, 2012
 
As of March 31, 2012
Federally insured loans, excluding rehabilitation loans purchased:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
2,933,416

 
 
 
$
2,949,320

 
 
 
$
3,568,310

 
 
Loans in forbearance
2,890,574

 
 
 
2,992,023

 
 
 
3,279,854

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
14,501,802

 
87.8
%
 
14,583,044

 
87.6
%
 
14,456,472

 
87.5
%
Loans delinquent 31-60 days
621,296

 
3.8

 
652,351

 
3.9

 
531,045

 
3.2

Loans delinquent 61-90 days
409,209

 
2.5

 
330,885

 
2.0

 
320,817

 
1.9

Loans delinquent 91-120 days
241,113

 
1.5

 
247,381

 
1.5

 
201,811

 
1.2

Loans delinquent 121-270 days
512,875

 
3.1

 
603,942

 
3.6

 
712,173

 
4.3

Loans delinquent 271 days or greater
211,461

 
1.3

 
220,798

 
1.4

 
306,970

 
1.9

Total loans in repayment
16,497,756

 
100.0
%
 
16,638,401

 
100.0
%
 
16,529,288

 
100.0
%
Total federally insured loans, excluding rehabilitation loans purchased
$
22,321,746

 
 

 
$
22,579,744

 
 

 
$
23,377,452

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rehabilitation loans purchased:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
213,101

 
 
 
$
150,317

 
 
 
$
57,321

 
 
Loans in forbearance
394,733

 
 
 
330,278

 
 
 
83,773

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
877,800

 
42.4
%
 
670,205

 
35.1
%
 
240,435

 
66.2
%
Loans delinquent 31-60 days
138,249

 
6.7

 
113,795

 
6.0

 
26,431

 
7.3

Loans delinquent 61-90 days
109,129

 
5.3

 
79,691

 
4.2

 
16,973

 
4.7

Loans delinquent 91-120 days
121,468

 
5.9

 
186,278

 
9.8

 
14,026

 
3.9

Loans delinquent 121-270 days
573,054

 
27.7

 
633,001

 
33.1

 
45,396

 
12.5

Loans delinquent 271 days or greater
249,011

 
12.0

 
226,537

 
11.8

 
19,676

 
5.4

Total loans in repayment
2,068,711

 
100.0
%
 
1,909,507

 
100.0
%
 
362,937

 
100.0
%
Total rehabilitation loans purchased
2,676,545

 
 
 
2,390,102

 
 
 
504,031

 
 
Total federally insured loans
$
24,998,291

 
 
 
$
24,969,846

 
 
 
$
23,881,483

 
 
Bonds and Notes payable (Tables)
Schedule of Debt 
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
As of March 31, 2013
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
22,116,616

 
0.30% - 6.90%
 
11/25/15 - 8/25/52
Bonds and notes based on auction or remarketing
962,200

 
0.14% - 2.18%
 
5/1/28 - 5/25/42
Total variable-rate bonds and notes
23,078,816

 
 
 
 
FFELP warehouse facilities
1,942,239

 
0.20% - 0.28%
 
4/2/15 - 2/28/16
Unsecured line of credit
115,000

 
1.70%
 
3/28/18
Unsecured debt - Junior Subordinated Hybrid Securities
99,232

 
3.66%
 
9/15/61
Other borrowings
61,878

 
1.70% - 5.10%
 
11/14/13 - 11/11/15
 
25,297,165

 
 
 
 
Discount on bonds and notes payable
(171,988
)
 
 
 
 
Total
$
25,125,177

 
 
 
 
 
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 - 8/25/52
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 March 31, 2013, the Company had four FFELP warehouse facilities as summarized below.
 
 
NHELP-I
 
NFSLW-I
 
NHELP-III (a)
 
NHELP-II
 
Total
Maximum financing amount
 
$
500,000

 
500,000

 
500,000

 
500,000

 
2,000,000

Amount outstanding
 
487,584

 
499,196

 
477,033

 
478,426

 
1,942,239

Amount available
 
$
12,416

 
804

 
22,967

 
21,574

 
57,761

Expiration of liquidity provisions
 
October 2, 2013

 
June 28, 2013

 
January 14, 2014

 
February 28, 2014

 
 
Final maturity date
 
April 2, 2015

 
June 30, 2015

 
January 17, 2016

 
February 28, 2016

 
 
Maximum advance rates
 
80.0 - 100.0%

 
90.0 - 98.0%

 
92.2 - 95.0%

 
88.5 - 93.5%

 
 
Minimum advance rates
 
80.0 - 95.0%

 
84.5 - 90.0%

 
92.2 - 95.0%

 
88.5 - 93.5%

 
 
Advanced as equity support
 
$
18,986

 
39,363

 
26,429

 
45,904

 
130,682

(a)
The Company entered into this facility on January 16, 2013.
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 March 31, 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 March 31, 2013 and December 31, 2012, was one-month LIBOR plus 3.5 basis points
Interest Rate Swaps - Floor Income Hedges 

Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
2013
 
$
3,150,000

 
0.71
%
2014
 
1,750,000

 
0.71

2015
 
1,100,000

 
0.89

2016
 
750,000

 
0.85

2017
 
750,000

 
0.99

 
 
$
7,500,000

 
0.78
%

(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR
Interest Rate Swaps - Unsecured Debt Hedges 
he Company had the following derivatives outstanding that are used to effectively convert the variable interest rate on the Hybrid Securities to a fixed rate of 7.66%.
 
 
 
As of March 31, 2013
 
As of December 31, 2012
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
65,000

 
4.29
%
 
$
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 
he 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. These items are included in the Company's consolidated statements of income.
 
Three months ended March 31,
 
2013
 
2012
Re-measurement of Euro Notes
$
28,763

 
(32,242
)
Change in fair value of cross currency interest rate swaps
(34,844
)
 
13,026

Total impact to consolidated statements of income - income (expense) (a)
$
(6,081
)
 
(19,216
)
(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
 
March 31,
2013
 
December 31,
2012
 
March 31,
2013
 
December 31,
2012
1:3 basis swaps
$
13,201

 
12,239

 
244

 
1,215

Interest rate swaps - floor income hedges
—

 
—

 
36,491

 
45,913

Interest rate swaps - hybrid debt hedges
—

 
—

 
17,262

 
23,762

Cross-currency interest rate swaps
47,997

(a)
82,841

 
—

 
—

Other
—

 
2,361

 
—

 
—

Total
$
61,198

 
97,441

 
53,997

(b)
70,890

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance 
The following table summarizes the effect of derivative instruments in the consolidated statements of income.
 
Three months ended March 31,
 
2013
 
2012
Settlements:
 

 
 

1:3 basis swaps
$
911

 
1,381

Interest rate swaps - floor income hedges
(8,304
)
 
(3,137
)
Interest rate swaps - hybrid debt hedges
(645
)
 
—

Cross-currency interest rate swaps
(146
)
 
2,109

Other
—

 
(126
)
Total settlements - income (expense)
(8,184
)
 
227

Change in fair value:
 

 
 

1:3 basis swaps
1,933

 
3,002

Interest rate swaps - floor income hedges
9,422

 
(5,634
)
Interest rate swaps - hybrid debt hedges
3,640

 
6,197

Cross-currency interest rate swaps
(34,844
)
 
13,026

Other
342

 
244

Total change in fair value - income (expense)
(19,507
)
 
16,835

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

 
(32,242
)
Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense)
$
1,072

 
(15,180
)
Investments (Tables)
Summary Investment Holdings
A summary of the Company's investments and restricted investments follows:
 
As of March 31, 2013
 
As of December 31, 2012
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses (a)
 
Fair value
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities (b)
$
139,544

 
7,703

 
(1,060
)
 
146,187

 
64,970

 
3,187

 
(179
)
 
67,978

Equity securities
1,389

 
1,377

 
(4
)
 
2,762

 
3,449

 
1,604

 
(180
)
 
4,873

Total available-for-sale investments
$
140,933

 
9,080

 
(1,064
)
 
148,949

 
68,419

 
4,791

 
(359
)
 
72,851

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities (b)
 
 
 
 
 
 
10,549

 
 
 
 
 
 
 
10,461

Total available-for-sale and trading investments

 

 

 
$
159,498

 
 
 
 
 


 
83,312

Restricted Investments (c):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts - held-to-maturity
 
 
 
 
 
 
$
8,166

 
 
 
 
 
 
 
8,830


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

(b)
As of March 31, 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.

Investments Transfers from Accumulated OCI (Tables)
Realized Gain (Loss) on Investments [Table Text Block]
The amounts reclassified from accumulated other comprehensive income related to the realized gains and losses on available-for-sale-securities is summarized below.
 
 
Three months ended March 31,
Affected line item in the consolidated statements of income - income (expense):
 
2013
 
2012
Other income
 
$
957

 
1,248

Income tax expense
 
(354
)
 
(440
)
Net
 
$
603

 
808

Earnings per Common Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
 
Three months ended March 31, 2013
 
Three months ended March 31, 2012
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
67,517

 
562

 
68,079

 
42,862

 
279

 
43,141

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,272,324

 
385,707

 
46,658,031

 
46,989,773

 
308,422

 
47,298,195

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share - basic and diluted
$
1.46

 
1.46

 
1.46

 
0.91

 
0.91

 
0.91

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

 
—

 
—

 
10

 
155,654

 
2,311

 
(819
)
 
157,156

Interest expense
—

 
—

 
—

 
—

 
57,482

 
1,695

 
(819
)
 
58,358

Net interest income
10

 
—

 
—

 
10

 
98,172

 
616

 
—

 
98,798

Less provision for loan losses
—

 
—

 
—

 
—

 
5,000

 
—

 
—

 
5,000

Net interest income after provision for loan losses
10

 
—

 
—

 
10

 
93,172

 
616

 
—

 
93,798

Other income (expense):
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
55,601

 
—

 
—

 
55,601

 
—

 
—

 
—

 
55,601

Intersegment servicing revenue
14,953

 
—

 
—

 
14,953

 
—

 
—

 
(14,953
)
 
—

Tuition payment processing and campus commerce revenue
—

 
23,411

 
—

 
23,411

 
—

 
—

 
—

 
23,411

Enrollment services revenue
—

 
—

 
28,957

 
28,957

 
—

 
—

 
—

 
28,957

Other income
—

 
—

 
—

 
—

 
4,196

 
5,220

 
—

 
9,416

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
1,407

 
—

 
—

 
1,407

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
5,275

 
3,981

 
—

 
9,256

Derivative settlements, net
—

 
—

 
—

 
—

 
(7,539
)
 
(645
)
 
—

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

 
23,411

 
28,957

 
122,922

 
3,339

 
8,556

 
(14,953
)
 
119,864

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
28,444

 
9,359

 
5,767

 
43,570

 
562

 
3,773

 
—

 
47,905

Cost to provide enrollment services
—

 
—

 
19,642

 
19,642

 
—

 
—

 
—

 
19,642

Depreciation and amortization
2,789

 
1,138

 
61

 
3,988

 
—

 
389

 
—

 
4,377

Other
18,390

 
2,287

 
1,651

 
22,328

 
7,513

 
5,100

 
—

 
34,941

Intersegment expenses, net
935

 
1,425

 
1,149

 
3,509

 
15,142

 
(3,698
)
 
(14,953
)
 
—

Total operating expenses
50,558

 
14,209

 
28,270

 
93,037

 
23,217

 
5,564

 
(14,953
)
 
106,865

Income before income taxes and corporate overhead allocation
20,006

 
9,202

 
687

 
29,895

 
73,294

 
3,608

 
—

 
106,797

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

 
—

 
—

Income before income taxes
19,009

 
8,870

 
355

 
28,234

 
72,582

 
5,981

 
—

 
106,797

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

 
(38,447
)
Net income
11,786

 
5,499

 
220

 
17,505

 
45,001

 
5,844

 
—

 
68,350

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
271

 
—

 
271

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

 
5,499

 
220

 
17,505

 
45,001

 
5,573

 
—

 
68,079

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2012
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
20

 
4

 
—

 
24

 
153,512

 
1,588

 
(971
)
 
154,153

Interest expense
—

 
—

 
—

 
—

 
68,829

 
1,439

 
(971
)
 
69,297

Net interest income
20

 
4

 
—

 
24

 
84,683

 
149

 
—

 
84,856

Less provision for loan losses
—

 
—

 
—

 
—

 
6,000

 
—

 
—

 
6,000

Net interest income after provision for loan losses
20

 
4

 
—

 
24

 
78,683

 
149

 
—

 
78,856

Other income (expense):
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
49,488

 
—

 
—

 
49,488

 
—

 
—

 
—

 
49,488

Intersegment servicing revenue
16,954

 
—

 
—

 
16,954

 
—

 
—

 
(16,954
)
 
—

Tuition payment processing and campus commerce revenue
—

 
21,913

 
—

 
21,913

 
—

 
—

 
—

 
21,913

Enrollment services revenue
—

 
—

 
31,664

 
31,664

 
—

 
—

 
—

 
31,664

Other income
—

 
—

 
—

 
—

 
5,000

 
5,954

 
—

 
10,954

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Derivative market value and foreign currency adjustments, net
—

 
—

 
—

 
—

 
(21,604
)
 
6,197

 
—

 
(15,407
)
Derivative settlements, net
—

 
—

 
—

 
—

 
227

 
—

 
—

 
227

Total other income (expense)
66,442

 
21,913

 
31,664

 
120,019

 
(16,377
)
 
12,151

 
(16,954
)
 
98,839

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
29,042

 
8,618

 
6,279

 
43,939

 
719

 
4,437

 
—

 
49,095

Cost to provide enrollment services
—

 
—

 
21,678

 
21,678

 
—

 
—

 
—

 
21,678

Depreciation and amortization
4,413

 
1,740

 
1,617

 
7,770

 
—

 
366

 
—

 
8,136

Other
18,666

 
2,816

 
1,956

 
23,438

 
3,632

 
5,193

 
—

 
32,263

Intersegment expenses, net
1,385

 
1,333

 
848

 
3,566

 
17,143

 
(3,755
)
 
(16,954
)
 
—

Total operating expenses
53,506

 
14,507

 
32,378

 
100,391

 
21,494

 
6,241

 
(16,954
)
 
111,172

Income (loss) before income taxes and corporate overhead allocation
12,956

 
7,410

 
(714
)
 
19,652

 
40,812

 
6,059

 
—

 
66,523

Corporate overhead allocation
(1,503
)
 
(501
)
 
(501
)
 
(2,505
)
 
(1,392
)
 
3,897

 
—

 
—

Income (loss) before income taxes
11,453

 
6,909

 
(1,215
)
 
17,147

 
39,420

 
9,956

 
—

 
66,523

Income tax (expense) benefit
(4,352
)
 
(2,625
)
 
462

 
(6,515
)
 
(14,979
)
 
(1,736
)
 
—

 
(23,230
)
Net income (loss)
7,101

 
4,284

 
(753
)
 
10,632

 
24,441

 
8,220

 
—

 
43,293

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
—

 
—

 
152

 
—

 
152

Net income (loss) attributable to Nelnet, Inc.
$
7,101

 
4,284

 
(753
)
 
10,632

 
24,441

 
8,068

 
—

 
43,141

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value (Tables)
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis 
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the three months ended March 31, 2013.
 
As of March 31, 2013
 
As of December 31, 2012
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 


 
 
 
 
 
 
Student loan asset-backed securities
$
—

 
155,978

 
155,978

 
—

 
77,652

 
77,652

Equity securities
2,762

 
—

 
2,762

 
4,873

 
—

 
4,873

Debt securities
758

 
—

 
758

 
787

 
—

 
787

Total investments
3,520

 
155,978

 
159,498

 
5,660

 
77,652

 
83,312

Fair value of derivative instruments
—

 
61,198

 
61,198

 
—

 
97,441

 
97,441

Total assets
$
3,520

 
217,176

 
220,696

 
5,660

 
175,093

 
180,753

Liabilities:
 

 
 

 
 

 
 
 
 
 
 
Fair value of derivative instruments:
$
—

 
53,997

 
53,997

 
—

 
70,890

 
70,890

Total liabilities
$
—

 
53,997

 
53,997

 
—

 
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 March 31, 2013
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
25,718,774

 
24,885,316

 
—

 
—

 
25,718,774

Cash and cash equivalents
50,066

 
50,066

 
50,066

 
—

 
—

Investments
159,498

 
159,498

 
3,520

 
155,978

 
—

Restricted cash
806,601

 
806,601

 
806,601

 
—

 
—

Restricted cash – due to customers
47,445

 
47,445

 
47,445

 
—

 
—

Restricted investments
8,166

 
8,166

 
8,166

 
—

 
—

Accrued interest receivable
305,177

 
305,177

 
—

 
305,177

 
—

Derivative instruments
61,198

 
61,198

 
—

 
61,198

 
—

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
24,653,806

 
25,125,177

 
—

 
24,653,806

 
—

Accrued interest payable
15,861

 
15,861

 
—

 
15,861

 
—

Due to customers
47,445

 
47,445

 
47,445

 
—

 
—

Derivative instruments
53,997

 
53,997

 
—

 
53,997

 
—

 
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
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2012
Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
$ 25,030,597 
$ 24,995,880 
 
 
Unamortized loan premiums (discounts) and deferred origination costs, net
(95,872)
(113,357)
 
 
Allowance for loan losses
49,409 
51,902 
48,435 
48,482 
Student loans receivable
24,885,316 
24,830,621 
 
 
Federally insured loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
24,998,291 
24,969,846 
 
 
Allowance for loan losses
37,913 
40,120 
36,783 
 
Allowance for student loans receivable as a percentage
0.15% 
0.16% 
 
 
Non-federally insured loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
32,306 
26,034 
 
 
Allowance for loan losses
11,496 
11,782 
11,652 
 
Allowance for student loans receivable as a percentage
35.59% 
45.26% 
 
 
Stafford and Other [Member] |
Federally insured loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
7,145,693 
7,261,114 
 
 
Consolidation Loans [Member] |
Federally insured loans [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Student loans receivable, gross
$ 17,852,598 
$ 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
Mar. 31, 2013
Mar. 31, 2012
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
Allowance for loan losses - balance
$ 51,902 
$ 48,482 
Provision for loan losses
5,000 
6,000 
Charge-offs
(6,762)
(6,264)
Allowance for loan losses - balance
49,409 
48,435 
Allocation of the Allowance for Loan Losses:
 
 
Allowance for loan losses
49,409 
48,435 
Federally insured loans [Member]
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
Allowance for loan losses - balance
40,120 
 
Provision for loan losses
(6,000)
(6,000)
Charge-offs
(5,990)
(5,495)
Purchase (sale) of loans, net
(2,218)
(927)
Allowance for loan losses - balance
37,913 
36,783 
Allocation of the Allowance for Loan Losses:
 
 
Allowance for loan losses
37,913 
36,783 
Non-federally insured loans [Member]
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
Allowance for loan losses - balance
11,782 
 
Provision for loan losses
1,000 
0 
Charge-offs
(772)
(769)
Recoveries - non-federally insured loans
368 
351 
Transfer from repurchase obligation related to loans purchased, net
1,119 
793 
Allowance for loan losses - balance
11,496 
11,652 
Allocation of the Allowance for Loan Losses:
 
 
Allowance for loan losses
$ 11,496 
$ 11,652 
Student Loans Receivable and Allowance for Loan Losses Repurchase Obligations (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Change in Repurchase Obligation [Roll Forward]
 
 
 
Beginning balance
$ 16,130,000 
$ 19,223,000 
 
Transfer to the allowance for loan losses related to loans sold, net
(1,119,000)
(793,000)
 
Ending balance
15,011,000 
18,430,000 
 
Financing Receivable, Net
24,885,316,000 
 
24,830,621,000 
Cumulative non-federally insured loans participated subject to repurchase agreement [Member]
 
 
 
Repurchase Obligation [Line Items]
 
 
 
Cumulative amount of participated non-federally insured student loans
98,700,000 
 
 
Days delinquent to trigger repurchase range, minimum
60 
 
 
Days delinquent to trigger repurchase range, maximum
90 
 
 
Non-federally insured loans sold subject to repurchase agreement [Member]
 
 
 
Repurchase Obligation [Line Items]
 
 
 
Date of sale of non-federally insured student loans subject to repurchase agreements
 
Jan. 13, 2011 
 
Proceeds from sale of non-federally insured student loans subject to repurchase agreements
 
91,300,000 
 
Percent of par value of non-federally insured student loans subject to repurchase agreements
 
100.00% 
 
Days delinquent to trigger repurchase
 
60 
 
Change in Repurchase Obligation [Roll Forward]
 
 
 
Financing Receivable, Net
$ 70,500,000 
 
 
Student Loans Receivable and Allowance for Loan Losses Student Loan Status and Delinquency (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Student loans receivable, gross
$ 25,030,597 
$ 24,995,880 
 
Federally insured loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans in-school/grace/deferment
 
2,949,320 
 
Loans in forbearance
 
2,992,023 
 
Student loans receivable, gross
24,998,291 
24,969,846 
23,881,483 
Loans in repayment status:
 
 
 
Loans current
 
14,583,044 
 
Loans delinquent 31-60 days
 
652,351 
 
Loans delinquent 61-90 days
 
330,885 
 
Loans delinquent 121-270 days
 
603,942 
 
Loans delinquent 91-120 days
 
247,381 
 
Loans delinquent 271 days or greater
 
220,798 
 
Rehabilitation loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans in-school/grace/deferment
213,101 
150,317 
57,321 
Loans in forbearance
394,733 
330,278 
83,773 
Total loans in repayment
2,068,711 
1,909,507 
362,937 
Student loans receivable, gross
2,676,545 
2,390,102 
504,031 
Loans in repayment status:
 
 
 
Loans current
877,800 
670,205 
240,435 
Loans current, percentage
42.40% 
35.10% 
66.20% 
Loans delinquent 31-60 days
138,249 
113,795 
26,431 
Loans delinquent 31-60 days, percentage
6.70% 
6.00% 
7.30% 
Loans delinquent 61-90 days
109,129 
79,691 
16,973 
Loans delinquent 61-90 days, percentage
5.30% 
4.20% 
4.70% 
Loans delinquent 121-270 days
573,054 
633,001 
45,396 
Loans delinquent 121-270 days, percentage
27.70% 
33.10% 
12.50% 
Loans delinquent 91-120 days
121,468 
186,278 
14,026 
Loans delinquent 91-120 days, percentage
5.90% 
9.80% 
3.90% 
Loans delinquent 271 days or greater
249,011 
226,537 
19,676 
Loans delinquent 271 days or greater, percentage
12.00% 
11.80% 
5.40% 
Total loans in repayment
2,068,711 
1,909,507 
362,937 
Total loans in repayment, percentage
100.00% 
100.00% 
100.00% 
Federally insured loans, excluding rehabiliation loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans in-school/grace/deferment
2,933,416 
 
3,568,310 
Loans in forbearance
2,890,574 
 
3,279,854 
Total loans in repayment
16,497,756 
16,638,401 
16,529,288 
Student loans receivable, gross
22,321,746 
22,579,744 
23,377,452 
Loans in repayment status:
 
 
 
Loans current
14,501,802 
 
14,456,472 
Loans current, percentage
87.80% 
87.60% 
87.50% 
Loans delinquent 31-60 days
621,296 
 
531,045 
Loans delinquent 31-60 days, percentage
3.80% 
3.90% 
3.20% 
Loans delinquent 61-90 days
409,209 
 
320,817 
Loans delinquent 61-90 days, percentage
2.50% 
2.00% 
1.90% 
Loans delinquent 121-270 days
512,875 
 
712,173 
Loans delinquent 121-270 days, percentage
3.10% 
3.60% 
4.30% 
Loans delinquent 91-120 days
241,113 
 
201,811 
Loans delinquent 91-120 days, percentage
1.50% 
1.50% 
1.20% 
Loans delinquent 271 days or greater
211,461 
 
306,970 
Loans delinquent 271 days or greater, percentage
1.30% 
1.40% 
1.90% 
Total loans in repayment
$ 16,497,756 
$ 16,638,401 
$ 16,529,288 
Total loans in repayment, percentage
100.00% 
100.00% 
100.00% 
Non-federally insured loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans Delinquent 31 Days or Greater in Percentage
20.50% 
28.60% 
29.50% 
Outstanding Debt Obligations (Details) (USD $)
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Mar. 31, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
 
 
Bonds and notes payable
 
 
$ 25,125,177,000 
$ 25,098,835,000 
Variable-rate bonds and notes [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Bonds and notes payable
 
 
23,078,816,000 
22,155,065,000 
Bonds and notes based on indices [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Bonds and notes payable
 
 
22,116,616,000 
21,185,140,000 
Interest rate range - minimum
0.30% 
0.32% 
 
 
Interest rate range - maximum
6.90% 
6.90% 
 
 
Final maturity, start
Nov. 25, 2015 
Nov. 25, 2015 
 
 
Final maturity, end
Aug. 25, 2052 
Aug. 25, 2052 
 
 
Bonds and notes based on auction or remarketing [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Bonds and notes payable
 
 
962,200,000 
969,925,000 
Interest rate range - minimum
0.14% 
0.15% 
 
 
Interest rate range - maximum
2.18% 
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
 
 
1,942,239,000 
1,554,151,000 
Interest rate range - minimum
0.20% 
0.21% 
 
 
Interest rate range - maximum
0.28% 
0.29% 
 
 
Final maturity, start
Apr. 02, 2015 
Jan. 31, 2015 
 
 
Final maturity, end
Feb. 28, 2016 
Jun. 30, 2015 
 
 
Department of Education Conduit [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Bonds and notes payable
 
 
 
1,344,513,000 
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
 
 
115,000,000 
55,000,000 
Interest rate range - minimum
1.70% 
1.71% 
 
 
Interest rate range - maximum
1.70% 
1.71% 
 
 
Final maturity, start
Mar. 28, 2018 
Feb. 17, 2016 
 
 
Final maturity, end
Mar. 28, 2013 
Feb. 17, 2016 
 
 
Unsecured debt - Junior Subordinated Hybrid Securities [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Bonds and notes payable
 
100,697,000 
99,232,000 
99,232,000 
Interest rate range - minimum
3.66% 
3.68% 
 
 
Interest rate range - maximum
3.66% 
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
 
 
61,878,000 
62,904,000 
Interest rate range - minimum
1.70% 
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
 
 
25,297,165,000 
25,270,865,000 
Discount on bonds and notes payable [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Bonds and notes payable
 
 
$ (171,988,000)
$ (172,030,000)
Bonds and Notes Payable Outstanding Lines of Credit (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2013
Paid in Full/Terminated Line of Credit [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Date paid in full and terminated
 
February 17, 2012 
Unsecured line of credit [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Maximum financing amount
 
$ 250,000 
Amount available
 
160,000 
Initiation date
Feb. 17, 2012 
 
NHELP-II Warehouse [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Minimum Advance Rates - range minimum
 
88.50% 
Maximum financing amount
 
500,000 
Amount outstanding
 
478,426 
Amount available
 
21,574 
Initiation date
Jan. 16, 2013 
 
Expiration of liquidity provisions
 
Feb. 28, 2014 1
Final maturity date
 
Feb. 28, 2016 
Advanced as equity support
 
45,904 
Minimum advance rates - range maximum
 
93.50% 
Maximum Advance Rates - range minimum
 
88.50% 
Maximum advance rates - range maximum
 
93.50% 
Department of education conduit [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Amount outstanding
 
1,300,000 
NHELP-I Warehouse [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Minimum Advance Rates - range minimum
 
80.00% 
Maximum financing amount
 
500,000 
Amount outstanding
 
487,584 
Amount available
 
12,416 2
Expiration of liquidity provisions
 
Oct. 02, 2013 2
Final maturity date
Apr. 02, 2015 2
 
Advanced as equity support
 
18,986 
Minimum advance rates - range maximum
 
95.00% 
Maximum Advance Rates - range minimum
 
80.00% 
Maximum advance rates - range maximum
 
100.00% 
NFSLW-I Warehouse [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Minimum Advance Rates - range minimum
 
84.50% 
Maximum financing amount
 
500,000 
Amount outstanding
 
499,196 
Amount available
 
804 2
Expiration of liquidity provisions
 
Jun. 28, 2013 2
Final maturity date
Jun. 30, 2015 2
 
Advanced as equity support
 
39,363 
Minimum advance rates - range maximum
 
90.00% 
Maximum Advance Rates - range minimum
 
90.00% 
Maximum advance rates - range maximum
 
98.00% 
NHELP-III Warehouse [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Maximum financing amount
 
500,000 
Amount outstanding
 
477,033 
Amount available
 
22,967 
Expiration of liquidity provisions
 
Jan. 14, 2014 
Final maturity date
 
Jan. 17, 2016 
FFELP Warehouse Total [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Maximum financing amount
 
2,000,000 
Amount outstanding
 
1,942,239 
Amount available
 
57,761 
Advanced as equity support
 
$ 130,682 
Bonds and Notes Payable Asset-backed Securitizations (Details) (USD $)
3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2013
2013 Securitization [Member]
Mar. 31, 2013
2013-2 Securitization [Member]
Mar. 31, 2013
2013-1 Securitization [Domain]
Mar. 31, 2013
Class A [Member]
2013 Securitization [Member]
Mar. 30, 2013
Class A [Member]
2013-2 Securitization [Member]
Mar. 31, 2013
Class A [Member]
2013-2 Securitization [Member]
Mar. 30, 2013
Class A [Member]
2013-1 Securitization [Domain]
Mar. 31, 2013
Class A [Member]
2013-1 Securitization [Domain]
Mar. 30, 2013
2013-1 Securitization [Domain]
Mar. 30, 2013
2013-2 Securitization [Member]
Mar. 31, 2013
Class B [Member]
2013 Securitization [Member]
Mar. 31, 2013
Class B [Member]
2013-2 Securitization [Member]
Mar. 30, 2013
Class B [Member]
2013-1 Securitization [Domain]
Mar. 31, 2013
Class B [Member]
2013-1 Securitization [Domain]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and Capital Lease Obligations
$ 25,125,177,000 
$ 25,098,835,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securitization, issuance date
 
 
 
 
 
 
 
 
 
 
Jan. 31, 2013 
Feb. 28, 2013 
 
 
 
 
Asset-backed securitization issuance, Face Amount
 
 
1,559,500,000 
1,122,000,000 
437,500,000 
1,550,000,000 
 
1,122,000,000 
 
428,000,000 
 
 
9,500,000 
 
 
9,500,000 
Asset-backed securitization issuance, Unamortized Premium
 
 
 
 
 
(3,325,000)
 
(3,325,000)
 
0 
 
 
(1,525,000)
 
 
(1,525,000)
Long-term Debt, Fair Value
 
 
 
 
 
1,546,675,000 
 
1,118,675,000 
 
428,000,000 
 
 
7,975,000 
 
 
7,975,000 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
 
 
0.50% 
 
0.60% 
 
 
 
 
 
1.50% 
Debt Instrument, Maturity Date Range, End
 
 
 
 
 
 
Jul. 25, 2040 
 
Jun. 25, 2041 
 
 
 
 
 
Mar. 25, 2048 
 
Class B subordinated notes purchased with issuance of asset-backed securitizations (off-balance sheet)
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 34,000,000 
 
 
Bonds and Notes Payable Variable Interest Entities (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Variable Interest Entity [Line Items]
 
 
Debt and Capital Lease Obligations
$ 25,125,177,000 
$ 25,098,835,000 
Financing Receivable, Net
24,885,316,000 
24,830,621,000 
Variable Interest Entity, Primary Beneficiary [Member]
 
 
Variable Interest Entity [Line Items]
 
 
Debt and Capital Lease Obligations
(25,218,392,000)
(25,209,341,000)
Financing Receivable, Net
24,957,745,000 
24,920,130,000 
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net
$ 493,334,000 
$ 505,231,000 
Bonds and Notes Payable Debt Repurchases (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 30, 2013
Debt [Member]
Asset-backed Securities [Member]
Mar. 31, 2013
Debt [Member]
Asset-backed Securities [Member]
Debt Instrument [Line Items]
 
 
 
 
Debt Instrument, Repurchased Face Amount
 
 
 
$ 13,000,000 
Gain on sale of loans and debt repurchases net
$ 1,407,000 
$ 0 
$ 1,400,000 
 
Derivative Financial Instruments Outstanding (Details) (USD $)
3 Months Ended
Mar. 30, 2013
Mar. 31, 2012
Mar. 31, 2013
Dec. 31, 2012
Derivative [Line Items]
 
 
 
 
Student loans receivable
 
 
$ 24,885,316,000 
$ 24,830,621,000 
Bonds and notes payable
 
 
25,125,177,000 
25,098,835,000 
Junior Subordinated Hybrid Securities [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Bonds and notes payable
 
100,697,000 
99,232,000 
99,232,000 
Unsecured debt scheduled interest rate change date
Sep. 29, 2036 
Sep. 29, 2036 
 
 
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
 
 
65,000,000 
75,000,000 
Derivative, Average Fixed Interest Rate
 
 
4.29% 
4.28% 
1:3 basis swaps [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
5,600,000,000 
8,000,000,000 1
 
Derivative, Type of Interest Rate Received on Swap
three-month LIBOR 
 
 
 
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
 
 
23,900,000,000 
 
Derivative, Description of Variable Rate Basis
one-month LIBOR 
 
 
 
1:3 basis swaps [Member] |
Three-month treasury bill, Daily reset [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Student loans receivable
 
 
1,100,000,000 
 
Derivative, Description of Variable Rate Basis
three-month treasury bill rate 
 
 
 
1:3 basis swaps [Member] |
Three-month LIBOR, Quarterly reset [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Bonds and notes payable
 
 
16,000,000,000 
 
Derivative, Description of Variable Rate Basis
three-month LIBOR 
 
 
 
1:3 basis swaps [Member] |
One-month LIBOR, Monthly reset [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Bonds and notes payable
 
 
7,100,000,000 
 
Derivative, Description of Variable Rate Basis
one-month LIBOR 
 
 
 
1:3 basis swaps [Member] |
Maturity 2021 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
250,000,000 
250,000,000 
 
1:3 basis swaps [Member] |
Maturity 2023 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
3,150,000,000 
3,650,000,000 
 
1:3 basis swaps [Member] |
Maturity 2022 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
1,900,000,000 
1,900,000,000 
 
1:3 basis swaps [Member] |
Maturity 2024 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
250,000,000 
250,000,000 
 
1:3 basis swaps [Member] |
Maturity 2026 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
800,000,000 
800,000,000 
 
1:3 basis swaps [Member] |
Maturity 2028 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
100,000,000 
100,000,000 
 
1:3 basis swaps [Member] |
Maturity 2036 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
 
700,000,000 
700,000,000 
1:3 basis swaps [Member] |
Maturity 2039 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
150,000,000 
150,000,000 
 
1:3 basis swaps [Member] |
Maturity 2040 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
200,000,000 
200,000,000 
 
Interest rate swaps - floor income hedges [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Student loans earning fixed rate floor income
 
11,300,000,000 
11,200,000,000 
 
Notional amount
 
 
7,500,000,000 
 
Derivative, Average Fixed Interest Rate
 
 
0.78% 
 
Weighted Average Variable Conversion Rate
 
1.82% 
 
 
Interest rate swaps - floor income hedges [Member] |
Maturity 2013 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
 
3,150,000,000 
 
Derivative, Average Fixed Interest Rate
 
 
0.71% 
 
Interest rate swaps - floor income hedges [Member] |
Maturity 2014 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
 
1,750,000,000 
7,500,000,000 
Derivative, Average Fixed Interest Rate
 
 
0.71% 
 
Interest rate swaps - floor income hedges [Member] |
Maturity 2015 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
 
1,100,000,000 
 
Derivative, Average Fixed Interest Rate
 
 
0.89% 
 
Interest rate swaps - floor income hedges [Member] |
Maturity 2016 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
 
750,000,000 
 
Derivative, Average Fixed Interest Rate
 
 
0.85% 
 
Interest rate swaps - floor income hedges [Member] |
Maturity 2017 [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Notional amount
 
 
$ 750,000,000 
 
Derivative, Average Fixed Interest Rate
 
 
0.99% 
 
Derivative Financial Instruments Cross-currency Interest Rate Swaps (Details)
3 Months Ended
Mar. 31, 2013
USD ($)
Mar. 31, 2012
USD ($)
Dec. 31, 2012
USD ($)
Mar. 31, 2013
Cross-currency interest rate swap 1 [Member]
USD ($)
Mar. 31, 2013
Cross-currency interest rate swap 1 [Member]
EUR (€)
Mar. 31, 2013
Cross currency interest rate swap 2 [Member]
USD ($)
Mar. 31, 2013
Cross currency interest rate swap 2 [Member]
EUR (€)
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
Bonds and notes payable
$ 25,125,177,000 
 
$ 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
28,763,000 
(32,242,000)
 
 
 
 
 
Change in fair value of cross currency interest rate swaps
(34,844,000)
13,026,000 
 
 
 
 
 
Total impact to statements of income - income (expense)
$ (6,081,000)1
$ (19,216,000)1
 
 
 
 
 
Derivative Financial Instruments Fair Value of Derivative Instruments (Details) (USD $)
3 Months Ended
Mar. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Derivatives, Fair Value [Line Items]
 
 
 
Proceeds to terminate and or amend derivative instruments
$ 2,700,000 
 
 
Fair value of asset derivatives
 
61,198,000 
97,441,000 
Fair value of liability derivatives
 
53,997,000 
70,890,000 
Payments to terminate and/or amend derivative instruments
2,900,000 
 
 
1:3 basis swaps [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of asset derivatives
 
13,201,000 
12,239,000 
Fair value of liability derivatives
 
244,000 
1,215,000 
Interest rate swaps - floor income hedges [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of asset derivatives
 
0 
0 
Fair value of liability derivatives
 
36,491,000 
45,913,000 
Interest rate swaps - hybrid debt hedges [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of asset derivatives
 
0 
0 
Fair value of liability derivatives
 
17,262,000 
23,762,000 
Cross-currency interest rate swaps [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of asset derivatives
 
47,997,000 
82,841,000 
Fair value of liability derivatives
 
0 
0 
Other [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Fair value of asset derivatives
 
0 
2,361,000 
Fair value of liability derivatives
 
$ 0 
$ 0 
Derivative Financial Instruments Income Statement Effect of Derivative Instruments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative settlements, net
$ (8,184)
$ 227 
Change in fair value
(19,507)
16,835 
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
28,763 
(32,242)
Derivative market value and foreign currency adjustments and derivative settlements - income (expense)
1,072 
(15,180)
1:3 basis swaps [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative settlements, net
911 
1,381 
Change in fair value
1,933 
3,002 
Interest rate swaps - floor income hedges [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative settlements, net
(8,304)
(3,137)
Change in fair value
9,422 
(5,634)
Interest rate swaps - hybrid debt hedges [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative settlements, net
(645)
0 
Change in fair value
3,640 
6,197 
Cross-currency interest rate swaps [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative settlements, net
(146)
2,109 
Change in fair value
(34,844)
13,026 
Other [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative settlements, net
0 
(126)
Change in fair value
$ 342 
$ 244 
Derivative Financial Instruments Derivative Collateral (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Derivative [Line Items]
 
Collateral held by the trustee on cross-currency interest rate swaps
$ 19.5 
Collateral posted to derivative counterparties
$ 47.1 
Derivative Financial Instruments Gross/Net (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets Not Designated As Hedging Instruments, Net
$ 40,404 
$ 75,645 
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value
53,997 
70,890 
Derivative Liability, Fair Value, Amount Offset Against Collateral
(1,321)
(1,803)
Derivative, Collateral, Obligation to Return Cash
(19,473)
(19,993)
Derivative, Collateral, Obligation to Return Cash
(47,148)
(63,128)
Derivative Liability, Fair Value, Net
5,528 
5,959 
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value
61,198 
97,441 
Derivative Asset, Fair Value, Amount Offset Against Collateral
$ (1,321)
 
Investments and Restricted Investments Summary (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2012
Investment Holdings [Line Items]
 
 
 
Guaranteed investment contracts - held-to-maturity
$ 8,166 
$ 8,830 
 
Investments [Member]
 
 
 
Investment Holdings [Line Items]
 
 
 
Fair value
159,498 
83,312 
 
Investments [Member] |
Available-for-sale investments [Member]
 
 
 
Investment Holdings [Line Items]
 
 
 
Amortized cost
140,933 
68,419 
 
Gross unrealized gains
9,080 
4,791 
 
Gross unrealized losses
(1,064)
(359)
 
Fair value
148,949 
72,851 
 
Investments [Member] |
Available-for-sale investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
 
Investment Holdings [Line Items]
 
 
 
Amortized cost
139,544 
64,970 
 
Gross unrealized gains
7,703 
3,187 
 
Gross unrealized losses
(1,060)
(179)
 
Fair value
146,187 
 
67,978 
Investments [Member] |
Available-for-sale investments [Member] |
Equity securities [Member]
 
 
 
Investment Holdings [Line Items]
 
 
 
Amortized cost
1,389 
3,449 
 
Gross unrealized gains
1,377 
1,604 
 
Gross unrealized losses
(4)
(180)
 
Fair value
2,762 
 
4,873 
Investments [Member] |
Trading investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
 
Investment Holdings [Line Items]
 
 
 
Fair value
$ 10,549 
$ 10,461 
 
Investments Realized and Unrealized Gains (losses) on Investments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2013
Mar. 31, 2012
Gain (Loss) on Investments [Line Items]
 
 
 
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax
$ (957)
$ 957 
$ 1,248 
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax
(354)
 
(440)
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax
$ 603 
 
$ 808 
Goodwill Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Goodwill
 
 
Goodwill
$ 117,118 
$ 117,118 
Earnings per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Mar. 31, 2013
Mar. 31, 2012
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
Net income attributable to Nelnet, Inc.
 
$ 68,079 
$ 43,141 
Weighted average common shares outstanding - basic
 
46,658,031 
47,298,195 
Weighted average common shares outstanding - diluted
 
46,658,031 
47,298,195 
Antidilutive securities excluded from computation of earnings per share
0 
0 
0 
Earnings Per Share, Basic and Diluted
 
$ 1.46 
$ 0.91 
Common shareholders [Member]
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
Net income attributable to Nelnet, Inc.
 
67,517 
42,862 
Weighted average common shares outstanding - basic
 
46,272,324 
46,989,773 
Weighted average common shares outstanding - diluted
 
46,272,324 
46,989,773 
Earnings Per Share, Basic and Diluted
 
$ 1.46 
$ 0.91 
Unvested restricted stock shareholders [Member]
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
Net income attributable to Nelnet, Inc.
 
$ 562 
$ 279 
Weighted average common shares outstanding - basic
 
385,707 
308,422 
Weighted average common shares outstanding - diluted
 
385,707 
308,422 
Earnings Per Share, Basic and Diluted
 
$ 1.46 
$ 0.91 
Shares Issued - Deferred [Member]
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
Non Employee Director Stock, Cumulative Deferred Shares
 
122,528 
 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Segment Reporting Information [Line Items]
 
 
Total interest income
$ 157,156 
$ 154,153 
Interest expense
58,358 
69,297 
Net interest income
98,798 
84,856 
Less provision for loan losses
5,000 
6,000 
Net interest income after provision for loan losses
93,798 
78,856 
Other income (expense):
 
 
Loan and guaranty servicing revenue
55,601 
49,488 
Intersegment servicing revenue
0 
0 
Tuition payment processing and campus commerce revenue
23,411 
21,913 
Enrollment services revenue
28,957 
31,664 
Other income
9,416 
10,954 
Gain on sale of loans and debt repurchases
1,407 
0 
Derivative market value and foreign currency adjustments, net
9,256 
(15,407)
Derivative settlements, net
(8,184)
227 
Total other income (expense)
119,864 
98,839 
Operating expenses:
 
 
Salaries and benefits
47,905 
49,095 
Cost to provide enrollment services
19,642 
21,678 
Depreciation and amortization
4,377 
8,136 
Other
34,941 
32,263 
Intersegment expenses, net
0 
0 
Total operating expenses
106,865 
111,172 
Income (loss) before income taxes and corporate overhead allocation
106,797 
66,523 
Corporate overhead allocation
0 
0 
Income (loss) before income taxes
106,797 
66,523 
Income tax (expense) benefit
(38,447)
(23,230)
Net income
68,350 
43,293 
Net income attributable to noncontrolling interest
271 
152 
Net income attributable to Nelnet, Inc.
68,079 
43,141 
Student Loan and Guaranty Servicing [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
10 
20 
Interest expense
0 
0 
Net interest income
10 
20 
Less provision for loan losses
0 
0 
Net interest income after provision for loan losses
10 
20 
Other income (expense):
 
 
Loan and guaranty servicing revenue
55,601 
49,488 
Intersegment servicing revenue
14,953 
16,954 
Tuition payment processing and campus commerce revenue
0 
0 
Enrollment services revenue
0 
0 
Other income
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
Derivative settlements, net
0 
0 
Total other income (expense)
70,554 
66,442 
Operating expenses:
 
 
Salaries and benefits
28,444 
29,042 
Cost to provide enrollment services
0 
0 
Depreciation and amortization
2,789 
4,413 
Other
18,390 
18,666 
Intersegment expenses, net
935 
1,385 
Total operating expenses
50,558 
53,506 
Income (loss) before income taxes and corporate overhead allocation
20,006 
12,956 
Corporate overhead allocation
(997)
(1,503)
Income (loss) before income taxes
19,009 
11,453 
Income tax (expense) benefit
(7,223)
(4,352)
Net income
11,786 
7,101 
Net income attributable to noncontrolling interest
0 
0 
Net income attributable to Nelnet, Inc.
11,786 
7,101 
Tuition Payment Processing and Campus Commerce [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
0 
4 
Interest expense
0 
0 
Net interest income
0 
4 
Less provision for loan losses
0 
0 
Net interest income after provision for loan losses
0 
4 
Other income (expense):
 
 
Loan and guaranty servicing revenue
0 
0 
Intersegment servicing revenue
0 
0 
Tuition payment processing and campus commerce revenue
23,411 
21,913 
Enrollment services revenue
0 
0 
Other income
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
Derivative settlements, net
0 
0 
Total other income (expense)
23,411 
21,913 
Operating expenses:
 
 
Salaries and benefits
9,359 
8,618 
Cost to provide enrollment services
0 
0 
Depreciation and amortization
1,138 
1,740 
Other
2,287 
2,816 
Intersegment expenses, net
1,425 
1,333 
Total operating expenses
14,209 
14,507 
Income (loss) before income taxes and corporate overhead allocation
9,202 
7,410 
Corporate overhead allocation
(332)
(501)
Income (loss) before income taxes
8,870 
6,909 
Income tax (expense) benefit
(3,371)
(2,625)
Net income
5,499 
4,284 
Net income attributable to noncontrolling interest
0 
0 
Net income attributable to Nelnet, Inc.
5,499 
4,284 
Enrollment Services [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
0 
0 
Interest expense
0 
0 
Net interest income
0 
0 
Less provision for loan losses
0 
0 
Net interest income after provision for loan losses
0 
0 
Other income (expense):
 
 
Loan and guaranty servicing revenue
0 
0 
Intersegment servicing revenue
0 
0 
Tuition payment processing and campus commerce revenue
0 
0 
Enrollment services revenue
28,957 
31,664 
Other income
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
Derivative settlements, net
0 
0 
Total other income (expense)
28,957 
31,664 
Operating expenses:
 
 
Salaries and benefits
5,767 
6,279 
Cost to provide enrollment services
19,642 
21,678 
Depreciation and amortization
61 
1,617 
Other
1,651 
1,956 
Intersegment expenses, net
1,149 
848 
Total operating expenses
28,270 
32,378 
Income (loss) before income taxes and corporate overhead allocation
687 
(714)
Corporate overhead allocation
(332)
(501)
Income (loss) before income taxes
355 
(1,215)
Income tax (expense) benefit
(135)
462 
Net income
220 
(753)
Net income attributable to noncontrolling interest
0 
0 
Net income attributable to Nelnet, Inc.
220 
(753)
Total Fee-Based [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
10 
24 
Interest expense
0 
0 
Net interest income
10 
24 
Less provision for loan losses
0 
0 
Net interest income after provision for loan losses
10 
24 
Other income (expense):
 
 
Loan and guaranty servicing revenue
55,601 
49,488 
Intersegment servicing revenue
14,953 
16,954 
Tuition payment processing and campus commerce revenue
23,411 
21,913 
Enrollment services revenue
28,957 
31,664 
Other income
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
Derivative settlements, net
0 
0 
Total other income (expense)
122,922 
120,019 
Operating expenses:
 
 
Salaries and benefits
43,570 
43,939 
Cost to provide enrollment services
19,642 
21,678 
Depreciation and amortization
3,988 
7,770 
Other
22,328 
23,438 
Intersegment expenses, net
3,509 
3,566 
Total operating expenses
93,037 
100,391 
Income (loss) before income taxes and corporate overhead allocation
29,895 
19,652 
Corporate overhead allocation
(1,661)
(2,505)
Income (loss) before income taxes
28,234 
17,147 
Income tax (expense) benefit
(10,729)
(6,515)
Net income
17,505 
10,632 
Net income attributable to noncontrolling interest
0 
0 
Net income attributable to Nelnet, Inc.
17,505 
10,632 
Asset Generation and Management [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
155,654 
153,512 
Interest expense
57,482 
68,829 
Net interest income
98,172 
84,683 
Less provision for loan losses
5,000 
6,000 
Net interest income after provision for loan losses
93,172 
78,683 
Other income (expense):
 
 
Loan and guaranty servicing revenue
0 
0 
Intersegment servicing revenue
0 
0 
Tuition payment processing and campus commerce revenue
0 
0 
Enrollment services revenue
0 
0 
Other income
4,196 
5,000 
Gain on sale of loans and debt repurchases
1,407 
0 
Derivative market value and foreign currency adjustments, net
5,275 
(21,604)
Derivative settlements, net
(7,539)
227 
Total other income (expense)
3,339 
(16,377)
Operating expenses:
 
 
Salaries and benefits
562 
719 
Cost to provide enrollment services
0 
0 
Depreciation and amortization
0 
0 
Other
7,513 
3,632 
Intersegment expenses, net
15,142 
17,143 
Total operating expenses
23,217 
21,494 
Income (loss) before income taxes and corporate overhead allocation
73,294 
40,812 
Corporate overhead allocation
(712)
(1,392)
Income (loss) before income taxes
72,582 
39,420 
Income tax (expense) benefit
(27,581)
(14,979)
Net income
45,001 
24,441 
Net income attributable to noncontrolling interest
0 
0 
Net income attributable to Nelnet, Inc.
45,001 
24,441 
Corporate Activity and Overhead [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
2,311 
1,588 
Interest expense
1,695 
1,439 
Net interest income
616 
149 
Less provision for loan losses
0 
0 
Net interest income after provision for loan losses
616 
149 
Other income (expense):
 
 
Loan and guaranty servicing revenue
0 
0 
Intersegment servicing revenue
0 
0 
Tuition payment processing and campus commerce revenue
0 
0 
Enrollment services revenue
0 
0 
Other income
5,220 
5,954 
Gain on sale of loans and debt repurchases
0 
0 
Derivative market value and foreign currency adjustments, net
3,981 
6,197 
Derivative settlements, net
(645)
0 
Total other income (expense)
8,556 
12,151 
Operating expenses:
 
 
Salaries and benefits
3,773 
4,437 
Cost to provide enrollment services
0 
0 
Depreciation and amortization
389 
366 
Other
5,100 
5,193 
Intersegment expenses, net
(3,698)
(3,755)
Total operating expenses
5,564 
6,241 
Income (loss) before income taxes and corporate overhead allocation
3,608 
6,059 
Corporate overhead allocation
2,373 
3,897 
Income (loss) before income taxes
5,981 
9,956 
Income tax (expense) benefit
(137)
(1,736)
Net income
5,844 
8,220 
Net income attributable to noncontrolling interest
271 
152 
Net income attributable to Nelnet, Inc.
5,573 
8,068 
Eliminations [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total interest income
(819)
(971)
Interest expense
(819)
(971)
Net interest income
0 
0 
Less provision for loan losses
0 
0 
Net interest income after provision for loan losses
0 
0 
Other income (expense):
 
 
Loan and guaranty servicing revenue
0 
0 
Intersegment servicing revenue
(14,953)
(16,954)
Tuition payment processing and campus commerce revenue
0 
0 
Enrollment services revenue
0 
0 
Other income
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
Derivative settlements, net
0 
0 
Total other income (expense)
(14,953)
(16,954)
Operating expenses:
 
 
Salaries and benefits
0 
0 
Cost to provide enrollment services
0 
0 
Depreciation and amortization
0 
0 
Other
0 
0 
Intersegment expenses, net
(14,953)
(16,954)
Total operating expenses
(14,953)
(16,954)
Income (loss) before income taxes and corporate overhead allocation
0 
0 
Corporate overhead allocation
0 
0 
Income (loss) before income taxes
0 
0 
Income tax (expense) benefit
0 
0 
Net income
0 
0 
Net income attributable to noncontrolling interest
0 
0 
Net income attributable to Nelnet, Inc.
$ 0 
$ 0 
Related Party Transactions Investment Services (Details) (February 14, 2013 Whitetail Rock Capital Management management agreement [Member] [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 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
$ 34.2 
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 (February 9, 2012)
34.5 
Chief Executive Officer [Member]
 
Related Party Transaction [Line Items]
 
Amount invested in funds under Whitetail Rock Capital Management management agreement
3.0 
Union Financial Services Inc. [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) (Fair Value, Measurements, Recurring [Member], USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
$ 159,498 
$ 83,312 
Fair value of derivative instruments
61,198 
97,441 
Total assets
220,696 
180,753 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
53,997 
70,890 
Total liabilities
53,997 
70,890 
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
155,978 
77,652 
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
2,762 
4,873 
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
758 
787 
Level 1 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
3,520 
5,660 
Fair value of derivative instruments
0 
0 
Total assets
3,520 
5,660 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
0 
0 
Total liabilities
0 
0 
Level 1 [Member] |
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
0 
0 
Level 1 [Member] |
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
2,762 
4,873 
Level 1 [Member] |
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
758 
787 
Level 2 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
155,978 
77,652 
Fair value of derivative instruments
61,198 
97,441 
Total assets
217,176 
175,093 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
53,997 
70,890 
Total liabilities
53,997 
70,890 
Level 2 [Member] |
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
155,978 
77,652 
Level 2 [Member] |
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
0 
0 
Level 2 [Member] |
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
$ 0 
$ 0 
Fair Value Fair Value Transfers Into or Out of Level 1, Level 2, or Level 3 (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount
$ 0 
$ 0 
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 $)
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2012
Dec. 31, 2011
Mar. 31, 2011
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
 
Student loans receivable
$ 24,885,316,000 
$ 24,830,621,000 
 
 
 
Cash and cash equivalents
50,066,000 
66,031,000 
60,700,000 
66,031,000 
42,570,000 
Investments
159,498,000 
83,312,000 
 
 
 
Restricted cash - due to customers
47,445,000 
96,516,000 
 
 
 
Accrued interest receivable
305,177,000 
307,518,000 
 
 
 
Derivative instruments
61,198,000 
97,441,000 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
 
Bonds and notes payable
25,125,177,000 
25,098,835,000 
 
 
 
Accrued interest payable
15,861,000 
14,770,000 
 
 
 
Due to customers
47,445,000 
96,516,000 
 
 
 
Derivative instruments
53,997,000 
70,890,000 
 
 
 
Level 1 [Member]
 
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
 
Student loans receivable
0 
 
0 
 
 
Cash and cash equivalents
50,066,000 
 
66,031,000 
 
 
Investments
3,520,000 
 
5,660,000 
 
 
Restricted cash
806,601,000 
 
806,632,000 
 
 
Restricted cash - due to customers
47,445,000 
 
96,516,000 
 
 
Restricted investments
8,166,000 
 
8,830,000 
 
 
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
47,445,000 
 
96,516,000 
 
 
Derivative instruments
0 
 
0 
 
 
Level 2 [Member]
 
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
 
Student loans receivable
0 
 
0 
 
 
Cash and cash equivalents
0 
 
0 
 
 
Investments
155,978,000 
 
77,652,000 
 
 
Restricted cash
0 
 
0 
 
 
Restricted cash - due to customers
0 
 
0 
 
 
Restricted investments
0 
 
0 
 
 
Accrued interest receivable
305,177,000 
 
307,518,000 
 
 
Derivative instruments
61,198,000 
 
97,441,000 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
 
Bonds and notes payable
24,653,806,000 
 
24,486,008,000 
 
 
Accrued interest payable
15,861,000 
 
14,770,000 
 
 
Due to customers
0 
 
0 
 
 
Derivative instruments
53,997,000 
 
70,890,000 
 
 
Level 3 [Member]
 
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
 
Student loans receivable
25,718,774,000 
 
25,418,623,000 
 
 
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
25,718,774,000 
 
25,418,623,000 
 
 
Cash and cash equivalents
50,066,000 
 
66,031,000 
 
 
Investments
159,498,000 
 
83,312,000 
 
 
Restricted cash
806,601,000 
 
806,632,000 
 
 
Restricted cash - due to customers
47,445,000 
 
96,516,000 
 
 
Restricted investments
8,166,000 
 
8,830,000 
 
 
Accrued interest receivable
305,177,000 
 
307,518,000 
 
 
Derivative instruments
61,198,000 
 
97,441,000 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
 
Bonds and notes payable
24,653,806,000 
 
24,486,008,000 
 
 
Accrued interest payable
15,861,000 
 
14,770,000 
 
 
Due to customers
47,445,000 
 
96,516,000 
 
 
Derivative instruments
53,997,000 
 
70,890,000 
 
 
Carrying value [Member]
 
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
 
Student loans receivable
24,885,316,000 
 
24,830,621,000 
 
 
Cash and cash equivalents
50,066,000 
 
66,031,000 
 
 
Investments
159,498,000 
 
83,312,000 
 
 
Restricted cash
806,601,000 
 
806,632,000 
 
 
Restricted cash - due to customers
47,445,000 
 
96,516,000 
 
 
Restricted investments
8,166,000 
 
8,830,000 
 
 
Accrued interest receivable
305,177,000 
 
307,518,000 
 
 
Derivative instruments
61,198,000 
 
97,441,000 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
 
Bonds and notes payable
25,125,177,000 
 
25,098,835,000 
 
 
Accrued interest payable
15,861,000 
 
14,770,000 
 
 
Due to customers
47,445,000 
 
96,516,000 
 
 
Derivative instruments
$ 53,997,000 
 
$ 70,890,000 
 
 
Legal Proceedings (Details) (Pending or Threatened Litigation [Member], USD $)
3 Months Ended
Mar. 30, 2013
Loss Contingencies [Line Items]
 
Loss contingency, inestimable loss
Due to the preliminary stage of this matter 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. 
Named plaintiff [Member]
 
Loss Contingencies [Line Items]
 
Advertising faxes
6 
Loss Contingency, Damages Sought, Value, Per Violation
$ 500 
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 
Loss contingency, actions taken by court, arbitrator or mediator
As of the filing date of this report, the District Court has not established or recognized any class.