NELNET INC, 10-Q filed on 11/5/2015
Quarterly Report
Document and Entity Information Document (USD $)
9 Months Ended
Sep. 30, 2015
Jun. 30, 2014
Oct. 31, 2015
Common Class A [Member]
Oct. 31, 2015
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
 
 
33,385,821 
11,476,932 
Entity Public Float
 
$ 1,092,770,730 
 
 
Amendment Flag
false 
 
 
 
Entity Central Index Key
0001258602 
 
 
 
Entity Current Reporting Status
Yes 
 
 
 
Entity Voluntary Filers
No 
 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
 
Document Period End Date
Sep. 30, 2015 
 
 
 
Document Fiscal Year Focus
2015 
 
 
 
Document Fiscal Period Focus
Q3 
 
 
 
Consolidated Balance Sheets (unaudited) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Assets:
 
 
Student loans receivable (net of allowance for loan losses)
$ 28,954,280 
$ 28,005,195 
Cash and cash equivalents:
 
 
Cash and cash equivalents - not held at a related party
27,613 
37,781 
Cash and cash equivalents - held at a related party
86,885 
92,700 
Total cash and cash equivalents
114,498 
130,481 
Investments and notes receivable
236,010 
235,709 
Restricted cash and investments
895,271 
850,440 
Restricted cash - due to customers
100,089 
118,488 
Accrued interest receivable
380,441 
351,588 
Accounts receivable (net of allowance for doubtful accounts)
64,640 
50,552 
Goodwill
126,200 
126,200 
Intangible assets, net
35,386 
42,582 
Property and equipment, net
46,706 
45,894 
Other assets
76,133 
76,622 
Fair value of derivative instruments
15,741 
64,392 
Total assets
31,045,395 
30,098,143 
Liabilities:
 
 
Bonds and notes payable
28,827,603 
28,027,350 
Accrued interest payable
31,632 
25,904 
Other liabilities
170,611 
167,881 
Due to customers
100,089 
118,488 
Fair value of derivative instruments
80,061 
32,842 
Total liabilities
29,209,996 
28,372,465 
Nelnet, Inc. shareholders' equity:
 
 
Preferred stock
0 
0 
Additional paid-in capital
1,441 
17,290 
Retained earnings
1,830,387 
1,702,560 
Accumulated other comprehensive earnings
2,876 
5,135 
Total Nelnet, Inc. shareholders' equity
1,835,153 
1,725,448 
Noncontrolling interest
246 
230 
Total equity
1,835,399 
1,725,678 
Total liabilities and equity
31,045,395 
30,098,143 
Common Class A [Member]
 
 
Nelnet, Inc. shareholders' equity:
 
 
Common stock
334 
348 
Total equity
334 
348 
Common Class B [Member]
 
 
Nelnet, Inc. shareholders' equity:
 
 
Common stock
115 
115 
Total equity
115 
115 
Variable Interest Entity, Primary Beneficiary [Member]
 
 
Assets:
 
 
Student loans receivable (net of allowance for loan losses)
29,150,270 
28,181,244 
Cash and cash equivalents:
 
 
Restricted cash and investments
853,186 
846,199 
Other assets
381,698 
351,934 
Liabilities:
 
 
Bonds and notes payable
29,159,553 
28,391,530 
Other liabilities
391,535 
280,233 
Fair value of derivative instruments
53,866 
20,455 
Equity:
 
 
Net assets of consolidated variable interest entities
$ 780,200 
$ 687,159 
Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Allowance for loan losses
$ 50,380 
$ 48,900 
Allowance for doubtful accounts
$ 2,062 
$ 1,656 
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
33,388,556 
34,756,384 
Shares Outstanding
33,388,556 
34,756,384 
Common Class B [Member]
 
 
Par Value (in dollars per share)
$ 0.01 
$ 0.01 
Shares Authorized
60,000,000 
60,000,000 
Shares Issued
11,476,932 
11,486,932 
Shares Outstanding
11,476,932 
11,486,932 
Consolidated Statements of Income (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Interest income:
 
 
 
 
Loan interest
$ 187,701 
$ 187,862 
$ 535,480 
$ 520,224 
Investment interest
1,456 
1,562 
5,548 
5,023 
Total interest income
189,157 
189,424 
541,028 
525,247 
Interest expense:
 
 
 
 
Interest on bonds and notes payable
77,164 
71,937 
221,344 
201,176 
Net interest income
111,993 
117,487 
319,684 
324,071 
Less provision for loan losses
3,000 
2,000 
7,150 
6,000 
Net interest income after provision for loan losses
108,993 
115,487 
312,534 
318,071 
Other income:
 
 
 
 
Loan and guaranty servicing revenue
61,520 
52,659 
183,164 
183,876 
Tuition payment processing, school information, and campus commerce revenue
30,439 
26,399 
92,805 
73,468 
Enrollment services revenue
19,500 
22,936 
54,524 
65,092 
Other income
6,523 
7,650 
20,945 
41,096 
Gain on sale of loans and debt repurchases
597 
0 
4,987 
57 
Derivative market value and foreign currency adjustments and derivative settlements, net
(30,658)
24,203 
(27,234)
21,508 
Total other income
87,921 
133,847 
329,191 
385,097 
Operating expenses:
 
 
 
 
Salaries and benefits
63,215 
61,098 
183,052 
167,470 
Cost to provide enrollment services
12,534 
14,178 
35,398 
41,964 
Loan servicing fees
7,793 
7,077 
22,829 
19,798 
Depreciation and amortization
6,977 
5,493 
19,140 
15,490 
Other
30,419 
29,599 
91,575 
92,882 
Total operating expenses
120,938 
117,445 
351,994 
337,604 
Income before income taxes
75,976 
131,889 
289,731 
365,564 
Income tax expense
26,999 
46,513 
104,985 
130,202 
Net income
48,977 
85,376 
184,746 
235,362 
Net income attributable to noncontrolling interest
22 
157 
117 
1,363 
Net income attributable to Nelnet, Inc.
$ 48,955 
$ 85,219 
$ 184,629 
$ 233,999 
Earnings per common share:
 
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$ 1.09 
$ 1.84 
$ 4.03 
$ 5.03 
Weighted average common shares outstanding - basic and diluted
45,047,777 
46,432,680 
45,763,443 
46,496,309 
Consolidated Statements of Comprehensive Income (unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Net income
$ 48,977 
$ 85,376 
$ 184,746 
$ 235,362 
Available-for-sale securities:
 
 
 
 
Unrealized holding (losses) gains arising during period, net
(568)
(738)
(1,217)
8,763 
Less reclassification adjustment for gains recognized in net income, net of losses
(73)
(8)
(2,370)
(8,319)
Income tax effect
234 
276 
1,328 
(164)
Total other comprehensive (loss) income
(407)
(470)
(2,259)
280 
Comprehensive income
48,570 
84,906 
182,487 
235,642 
Comprehensive income attributable to noncontrolling interest
22 
157 
117 
1,363 
Comprehensive income attributable to Nelnet, Inc.
$ 48,548 
$ 84,749 
$ 182,370 
$ 234,279 
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]
Noncontrolling interest [Member]
Balance at Jun. 30, 2014
$ 1,580,128 
$ 0 
$ 349 
$ 115 
$ 20,721 
$ 1,552,988 
$ 5,569 
$ 386 
Balance (in Shares) at Jun. 30, 2014
 
0 
34,859,786 
11,491,932 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Net income
85,376 
 
 
 
 
85,219 
 
157 
Other comprehensive income (loss)
(470)
 
 
 
 
 
(470)
 
Distribution to noncontrolling interest
(275)
 
 
 
 
 
 
(275)
Cash dividend on Class A and Class B common stock
(4,630)
 
 
 
 
(4,630)
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
28,729 
0 
 
 
 
 
Issuance of common stock, net of forfeitures
213 
 
0 
0 
213 
 
 
 
Compensation expense for stock based awards
1,248 
 
 
 
1,248 
 
 
 
Repurchase of common stock (in Shares)
 
 
(96,792)
0 
 
 
 
 
Repurchase of common stock
(4,033)
 
(1)
0 
(4,032)
 
 
 
Conversion of Common Stock, Shares Converted
 
 
5,000 
(5,000)
 
 
 
 
Conversion of Common Stock, Amount Converted
0 
 
 
 
 
 
 
 
Balance at Sep. 30, 2014
1,657,557 
0 
348 
115 
18,150 
1,633,577 
5,099 
268 
Balance (in Shares) at Sep. 30, 2014
 
0 
34,796,723 
11,486,932 
 
 
 
 
Balance at Dec. 31, 2013
1,443,990 
0 
349 
115 
24,887 
1,413,492 
4,819 
328 
Balance (in Shares) at Dec. 31, 2013
 
0 
34,881,338 
11,495,377 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Issuance of noncontrolling interest
201 
 
 
 
 
 
 
201 
Net income
235,362 
 
 
 
 
233,999 
 
1,363 
Other comprehensive income (loss)
280 
 
 
 
 
 
280 
 
Distribution to noncontrolling interest
(1,624)
 
 
 
 
 
 
(1,624)
Cash dividend on Class A and Class B common stock
(13,914)
 
 
 
 
(13,914)
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
234,236 
0 
 
 
 
 
Issuance of common stock, net of forfeitures
3,341 
 
2 
0 
3,339 
 
 
 
Compensation expense for stock based awards
3,258 
 
 
 
3,258 
 
 
 
Repurchase of common stock (in Shares)
 
 
(327,296)
0 
 
 
 
 
Repurchase of common stock
(13,337)
 
(3)
0 
(13,334)
 
 
 
Conversion of Common Stock, Shares Converted
 
 
8,445 
(8,445)
 
 
 
 
Conversion of Common Stock, Amount Converted
0 
 
0 
0 
 
 
 
 
Balance at Sep. 30, 2014
1,657,557 
0 
348 
115 
18,150 
1,633,577 
5,099 
268 
Balance (in Shares) at Sep. 30, 2014
 
0 
34,796,723 
11,486,932 
 
 
 
 
Balance at Dec. 31, 2014
1,725,678 
0 
348 
115 
17,290 
1,702,560 
5,135 
230 
Balance (in Shares) at Dec. 31, 2014
 
0 
34,756,384 
11,486,932 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Issuance of noncontrolling interest
23 
 
 
 
 
 
 
23 
Net income
184,746 
 
 
 
 
184,629 
 
117 
Other comprehensive income (loss)
(2,259)
 
 
 
 
 
(2,259)
 
Distribution to noncontrolling interest
(124)
 
 
 
 
 
 
(124)
Cash dividend on Class A and Class B common stock
(13,659)
 
 
 
 
(13,659)
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
152,764 
0 
 
 
 
 
Issuance of common stock, net of forfeitures
3,680 
 
2 
0 
3,678 
 
 
 
Compensation expense for stock based awards
3,957 
 
 
 
3,957 
 
 
 
Repurchase of common stock (in Shares)
 
 
(1,530,592)
0 
 
 
 
 
Repurchase of common stock
(66,643)
 
(16)
0 
(23,484)
(43,143)
 
 
Conversion of Common Stock, Shares Converted
 
 
10,000 
(10,000)
 
 
 
 
Conversion of Common Stock, Amount Converted
0 
 
 
 
 
 
 
 
Balance at Sep. 30, 2015
1,835,399 
0 
334 
115 
1,441 
1,830,387 
2,876 
246 
Balance (in Shares) at Sep. 30, 2015
 
0 
33,388,556 
11,476,932 
 
 
 
 
Balance at Jun. 30, 2015
1,805,492 
0 
337 
115 
0 
1,801,457 
3,283 
300 
Balance (in Shares) at Jun. 30, 2015
 
0 
33,724,471 
11,486,932 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Issuance of noncontrolling interest
4 
 
 
 
 
 
 
4 
Net income
48,977 
 
 
 
 
48,955 
 
22 
Other comprehensive income (loss)
(407)
 
 
 
 
 
(407)
 
Distribution to noncontrolling interest
(80)
 
 
 
 
 
 
(80)
Cash dividend on Class A and Class B common stock
(4,486)
 
 
 
 
(4,486)
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
10,669 
0 
 
 
 
 
Issuance of common stock, net of forfeitures
268 
 
1 
0 
267 
 
 
 
Compensation expense for stock based awards
1,246 
 
 
 
1,246 
 
 
 
Repurchase of common stock (in Shares)
 
 
(356,584)
0 
 
 
 
 
Repurchase of common stock
(15,615)
 
(4)
0 
(72)
(15,539)
 
 
Conversion of Common Stock, Shares Converted
 
 
10,000 
(10,000)
 
 
 
 
Conversion of Common Stock, Amount Converted
0 
 
 
 
 
 
 
 
Balance at Sep. 30, 2015
$ 1,835,399 
$ 0 
$ 334 
$ 115 
$ 1,441 
$ 1,830,387 
$ 2,876 
$ 246 
Balance (in Shares) at Sep. 30, 2015
 
0 
33,388,556 
11,476,932 
 
 
 
 
Consolidated Statements of Shareholders' Equity (unaudited) (Parentheticals)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Common Class A [Member]
 
 
 
 
Dividends paid per common share
$ 0.10 
$ 0.10 
$ 0.30 
$ 0.30 
Common Class B [Member]
 
 
 
 
Dividends paid per common share
$ 0.10 
$ 0.10 
$ 0.30 
$ 0.30 
Consolidated Statements of Cash Flows (unaudited) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Net income attributable to Nelnet, Inc.
$ 184,629 
$ 233,999 
Net income attributable to noncontrolling interest
117 
1,363 
Net income
184,746 
235,362 
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions:
 
 
Depreciation and amortization, including debt discounts and student loan premiums and deferred origination costs
91,045 
78,318 
Student loan discount accretion
(32,684)
(32,393)
Provision for loan losses
7,150 
6,000 
Derivative market value adjustment
43,179 
431 
Foreign currency transaction adjustment
(32,480)
(39,216)
Proceeds from termination of derivative instruments
55,627 
0 
Payment to enter into derivative instruments
(2,936)
(9,087)
Gain on sale of loans
(351)
0 
Gain from debt repurchases
(4,636)
(57)
Gain from sales of available-for-sale securities, net
(2,370)
(8,319)
Payments for purchases of trading securities, net
(8,168)
(3,380)
Deferred income tax (benefit) expense
(7,901)
21,391 
Non-cash compensation expense
4,120 
3,364 
Other
2,469 
5,638 
(Increase) decrease in accrued interest receivable
(435)
4,303 
Increase in accounts receivable
(14,088)
(1,884)
Decrease in other assets
1,848 
2,723 
Increase in accrued interest payable
5,242 
2,314 
Increase (decrease) in other liabilities
17,978 
(2,441)
Net cash provided by operating activities
307,355 
263,067 
Cash flows from investing activities, net of acquisitions:
 
 
Purchases of student loans and student loan residual interests
(1,994,416)
(3,211,328)
Net proceeds from student loan repayments, claims, capitalized interest, and other
2,843,119 
2,721,886 
Proceeds from sale of student loans
3,996 
8 
Purchases of available-for-sale securities
(6,939)
(143,695)
Proceeds from sales of available-for-sale securities
49,278 
200,098 
Purchases of investments and issuance of notes receivable
(65,548)
(35,454)
Proceeds from investments and notes receivable
27,773 
11,006 
Purchases of property and equipment, net
(12,756)
(21,691)
Decrease (increase) in restricted cash and investments, net
3,611 
(32,720)
Business and asset acquisitions, net of cash acquired
0 
(45,583)
Net cash provided by (used in) investing activities
848,118 
(557,473)
Cash flows from financing activities net of borrowings assumed [Abstract]
 
 
Payments on bonds and notes payable
(3,483,804)
(3,013,378)
Proceeds from issuance of bonds and notes payable
2,401,993 
3,362,227 
Payments of debt issuance costs
(9,859)
(14,933)
Dividends paid
(13,659)
(13,914)
Repurchases of common stock
(66,643)
(13,337)
Proceeds from issuance of common stock
617 
476 
Issuance of noncontrolling interest
23 
201 
Distribution to noncontrolling interest
(124)
(1,624)
Net cash (used in) provided by financing activities
(1,171,456)
305,718 
Net (decrease) increase in cash and cash equivalents
(15,983)
11,312 
Cash and cash equivalents, beginning of period
130,481 
63,267 
Cash and cash equivalents, end of period
114,498 
74,579 
Cash disbursements made for:
 
 
Interest
165,885 
155,962 
Income taxes, net of refunds
104,403 
118,866 
Noncash activity:
 
 
Investing activity - student loans and other assets acquired
2,025,453 
2,571,997 
Financing activity - borrowings and other liabilities assumed in acquisition of student loans
$ 1,885,453 
$ 2,444,874 
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 September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2014 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results for the year ending December 31, 2015. 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, 2014 (the "2014 Annual Report").

Reclassifications

Certain amounts previously reported within the Company's consolidated balance sheet and statements of income have been reclassified to conform to the current period presentation. These reclassifications include:

•
Reclassifying certain investments and notes receivable, which were previously included in "other assets" to "investments and notes receivable."

•
Reclassifying third-party loan servicing fees, which were previously included in "other" operating expenses to "loan servicing fees."

The reclassifications had no effect on consolidated net income or consolidated assets and liabilities.

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

Student loans receivable consisted of the following:
 
As of
 
As of
 
September 30, 2015
 
December 31, 2014
Federally insured loans
 
 
 
Stafford and other
$
6,375,336

 
6,030,825

Consolidation
22,580,043

 
22,165,605

Total
28,955,379

 
28,196,430

Private education loans
232,824

 
27,478

 
29,188,203

 
28,223,908

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(183,543
)
 
(169,813
)
Allowance for loan losses – federally insured loans
(35,945
)
 
(39,170
)
Allowance for loan losses – private education loans
(14,435
)
 
(9,730
)
 
$
28,954,280

 
28,005,195



(a)
As of September 30, 2015 and December 31, 2014, "loan discount, net of unamortized loan premiums and deferred origination costs" included $35.4 million and $28.8 million, respectively, of non-accretable discount associated with purchased loans of $10.9 billion and $8.5 billion, respectively.




Private Education Loans

During the first quarter of 2015, the Company entered into an agreement with CommonBond, Inc. ("CommonBond"), a student lending company that provides private education loans to graduate students, under which the Company committed to purchase private education loans for a period of 18 months, with the total purchase obligation limited to $150.0 million. On August 17, 2015, the Company amended the agreement with CommonBond to increase the maximum purchase obligation to $200.0 million. As of September 30, 2015, the Company had purchased $127.8 million in private education loans from CommonBond pursuant to this agreement.

Acquisition of Student Loan Residual Interests

On May 26, 2015, the Company acquired the ownership interest in a federally insured student loan securitization trust (the "May Trust"), giving the Company rights to the residual interest in $504.2 million of securitized federally insured loans. The trust includes loans funded to term with $448.9 million (par value) of bonds and notes payable.

On August 3, 2015, the Company acquired the ownership interest in two federally insured student loan securitization trusts (the "August Trusts"), giving the Company rights to the residual interest in $1.5 billion of securitized federally insured loans. The two trusts include loans funded to term with $1.5 billion (par value) of bonds and notes payable.

The Company has consolidated the May Trust and August Trusts on its consolidated balance sheet because management has determined the Company is the primary beneficiary of the trusts. Upon acquisition of the May Trust and August Trusts, the Company recorded all assets and liabilities of the trusts at fair value, resulting in the recognition of a student loan fair value discount of $20.7 million and $20.2 million, respectively, and a bonds and notes payable fair value premium of $2.2 million and a fair value discount of $86.7 million, respectively. The discounts/premium will be accreted/amortized using the effective interest method over the lives of the underlying assets and liabilities. All other assets acquired and liabilities assumed (restricted cash, accrued interest receivable/payable, and other assets/liabilities) were recorded at cost, which approximates fair value.

Activity in the Allowance for Loan Losses

The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below.
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
Balance at beginning of period
$
50,024

 
52,467

 
48,900

 
55,122

Provision for loan losses:
 
 
 
 
 

 
 

Federally insured loans
2,000

 
2,000

 
6,000

 
7,000

Private education loans
1,000

 
—

 
1,150

 
(1,000
)
Total provision for loan losses
3,000

 
2,000

 
7,150

 
6,000

Charge-offs:
 

 
 

 
 

 
 

Federally insured loans
(2,817
)
 
(3,521
)
 
(9,225
)
 
(11,290
)
Private education loans
(357
)
 
(623
)
 
(1,479
)
 
(1,642
)
Total charge-offs
(3,174
)
 
(4,144
)
 
(10,704
)
 
(12,932
)
Recoveries - private education loans
250

 
279

 
742

 
989

Purchase (sale) of federally insured and private education loans, net
30

 
70

 
(200
)
 
320

Transfer from repurchase obligation related to private education loans repurchased
250

 
1,296

 
4,492

 
2,469

Balance at end of period
$
50,380

 
51,968

 
50,380

 
51,968

 
 
 
 
 
 
 
 
Allocation of the allowance for loan losses:
 
 
 

 
 

 
 

Federally insured loans
$
35,945

 
39,470

 
35,945

 
39,470

Private education loans
14,435

 
12,498

 
14,435

 
12,498

Total allowance for loan losses
$
50,380

 
51,968

 
50,380

 
51,968




Repurchase Obligation

The Company has sold various portfolios of private education loans to third-parties. Per the terms of the servicing agreements, the Company’s servicing operations are obligated to repurchase loans subject to the sale agreements in the event such loans become 60 or 90 days delinquent. As of September 30, 2015 and December 31, 2014, the balance of loans subject to these repurchase obligations was $53.1 million and $155.3 million, respectively. The Company repurchased $94.1 million of private education loans during the first quarter of 2015. The Company's estimate related to its obligation to repurchase these loans is included in "other liabilities" in the Company's consolidated balance sheets and was $3.3 million and $11.8 million as of September 30, 2015 and December 31, 2014, respectively.

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 table below shows the Company’s loan delinquency amounts.

 
As of September 30, 2015
 
As of December 31, 2014
 
As of September 30, 2014
Federally insured loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
2,638,639

 
 
 
$
2,805,228

 
 
 
$
3,072,318

 
 
Loans in forbearance
2,993,844

 
 
 
3,288,412

 
 
 
3,505,103

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
19,681,517

 
84.4
%
 
18,460,279

 
83.5
%
 
18,672,178

 
83.8
%
Loans delinquent 31-60 days
1,021,515

 
4.4

 
1,043,119

 
4.8

 
990,696

 
4.5

Loans delinquent 61-90 days
638,037

 
2.7

 
588,777

 
2.7

 
569,879

 
2.6

Loans delinquent 91-120 days
465,261

 
2.0

 
404,905

 
1.8

 
452,463

 
2.0

Loans delinquent 121-270 days
1,139,864

 
4.9

 
1,204,405

 
5.4

 
1,183,616

 
5.3

Loans delinquent 271 days or greater
376,702

 
1.6

 
401,305

 
1.8

 
405,346

 
1.8

Total loans in repayment
23,322,896

 
100.0
%
 
22,102,790

 
100.0
%
 
22,274,178

 
100.0
%
Total federally insured loans
$
28,955,379

 
 

 
$
28,196,430

 
 

 
$
28,851,599

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private education loans:
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
7,724

 
 
 
$
905

 
 
 
$
2,958

 
 
Loans in forbearance
16

 
 
 
—

 
 
 
—

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
216,502

 
96.2
%
 
18,390

 
69.2
%
 
65,560

 
87.8
%
Loans delinquent 31-60 days
1,999

 
0.9

 
1,078

 
4.1

 
1,340

 
1.8

Loans delinquent 61-90 days
1,206

 
0.5

 
1,035

 
3.9

 
1,516

 
2.0

Loans delinquent 91 days or greater
5,377

 
2.4

 
6,070

 
22.8

 
6,249

 
8.4

Total loans in repayment
225,084

 
100.0
%
 
26,573

 
100.0
%
 
74,665

 
100.0
%
Total non-federally insured loans
$
232,824

 
 

 
$
27,478

 
 

 
$
77,623

 
 
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 September 30, 2015
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
26,346,635

 
0.08% - 6.90%
 
8/26/19 - 8/26/52
Bonds and notes based on auction
1,161,515

 
1.11% - 2.13%
 
3/22/32 - 11/26/46
Total variable-rate bonds and notes
27,508,150

 
 
 
 
FFELP warehouse facilities
1,391,877

 
0.20% - 0.41%
 
12/17/17 - 7/9/18
Private education loan warehouse facility
170,081

 
0.42%
 
12/26/16
Unsecured line of credit
70,000

 
1.72%
 
6/30/19
Unsecured debt - Junior Subordinated Hybrid Securities
57,582

 
3.70%
 
9/15/61
Other borrowings
75,000

 
1.69%
 
10/31/16
 
29,272,690

 
 
 
 
Discount on bonds and notes payable
(445,087
)
 
 
 
 
Total
$
28,827,603

 
 
 
 
 
As of December 31, 2014
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
25,713,431

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

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

 
 
 
 
FFELP warehouse facilities
1,241,665

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

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

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

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

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

 
 
 
 


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 September 30, 2015, the Company had three FFELP warehouse facilities as summarized below.
 
 
NHELP-II
 
NHELP-III
 
NFSLW-I (a)
 
Total
Maximum financing amount
 
$
500,000

 
750,000

 
875,000

 
2,125,000

Amount outstanding
 
446,624

 
395,631

 
549,622

 
1,391,877

Amount available
 
$
53,376

 
354,369

 
325,378

 
733,123

Expiration of liquidity provisions
 
December 17, 2015

 
April 29, 2016

 
July 8, 2016

 
 
Final maturity date
 
December 17, 2017

 
April 29, 2018

 
July 9, 2018

 
 
Maximum advance rates
 
91.0 - 97.0%

 
92.2 - 95.0%

 
92.0 - 98.0%

 
 
Minimum advance rates
 
91.0 - 97.0%

 
92.2 - 95.0%

 
84.0 - 90.0%

 
 
Advanced as equity support
 
$
24,538

 
22,427

 
26,124

 
73,089



(a)
On July 10, 2015, the Company amended the agreement for this warehouse facility to temporarily increase the maximum financing amount to $875.0 million, extend the expiration of the liquidity provisions to July 8, 2016, and extend the maturity date to July 9, 2018. The maximum financing amount is scheduled to decrease by $125.0 million on March 31, 2016.

Asset-backed Securitizations

The following table summarizes the asset-backed securitization transactions completed during the nine months ended September 30, 2015.
 
 
2015-1
 
2015-2
 
2015-3
 
Total
 
 
 
 
Class A-1 notes
 
Class A-2 notes
 
2015-2 total
 
Class A-1 notes
 
Class A-2 notes
 
Class A-3 notes
 
2015-3 total
 
 
Date securities issued
 
2/27/15
 
3/26/15
 
3/26/15
 
3/26/15
 
5/21/15
 
5/21/15
 
5/21/15
 
5/21/15
 
 
Total original principal amount
 
$
566,346

 
122,500

 
584,500

 
722,000

 
82,500

 
270,000

 
41,400

 
401,400

 
$
1,689,746

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class A senior notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
553,232

 
122,500

 
584,500

 
707,000

 
82,500

 
270,000

 
41,400

 
393,900

 
1,654,132

Bond discount
 
—

 
—

 
—

 
—

 
—

 
(380
)
 
(1,095
)
 
(1,475
)
 
(1,475
)
Issue price
 
$
553,232

 
122,500

 
584,500

 
707,000

 
82,500

 
269,620

 
40,305

 
392,425

 
1,652,657

Cost of funds (1-month LIBOR plus:)
 
0.59
%
 
0.27
%
 
0.60
%
 
 
 
0.30
%
 
0.60
%
 
0.90
%
 
 
 
 
Final maturity date
 
4/25/41

 
3/25/20

 
9/25/42

 
 
 
1/27/25

 
2/26/46

 
6/25/49

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class B subordinated notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
13,114

 
 
 
 
 
15,000

 

 
 
 
 
 
7,500

 
35,614

Bond discount
 
(1,157
)
 
 
 
 
 
(1,793
)
 

 
 
 
 
 
(968
)
 
(3,918
)
Issue price
 
$
11,957

 

 
 
 
13,207

 

 
 
 
 
 
6,532

 
31,696

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

 
 
 
 
 
1.50
%
 
 
Final maturity date
 
6/25/46

 
 
 
 
 
5/25/49

 
 
 
 
 
 
 
6/27/50

 
 

Private Education Loan Warehouse Facility
On June 26, 2015, the Company entered into a $275.0 million private education loan warehouse facility. As of September 30, 2015, there was $170.1 million outstanding on the facility and $104.9 million was available for future use. The facility has a static advance rate that requires initial equity for loan funding, but does not require increased equity based on market movements. The maximum advance rate on the entire facility is 88 percent and minimum advance rates, depending on loan characteristics and program type, range from 64 percent to 99 percent. As of September 30, 2015, $23.7 million was advanced on the facility as equity support. The facility is supported by liquidity provisions, which have a defined expiration date of June 24, 2016. 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 of December 26, 2016.
Unsecured Line of Credit

On October 30, 2015, the Company entered into an amended and restated credit agreement for its $350.0 million line of credit. Under the amended terms, the maturity date of the credit agreement was extended from June 30, 2019 to October 30, 2020.  In addition, the following revisions were made to certain covenants:

•
A provision was added to permit acquisitions of businesses, for consideration of up to $75.0 million per fiscal year, that are not in one of the Company's existing lines of business.

•
The cap for other non-specified permitted investments increased to 20 percent of the Company's consolidated net worth, with the cap excluding all existing investments at the time of the amendment.

•
The current cap related to the volume of private education loans that the Company may hold was reduced from $900.0 million to a revised level of $500.0 million.  All private education loans that are held within securitization vehicles are excluded from the $500.0 million threshold.

•
The minimum consolidated net worth threshold changed beginning as of September 30, 2015 to be not less than the sum of (i) $1.35 billion, plus, in each case for periods after September 30, 2015, (ii) 50 percent of consolidated net income; plus (iii) 100 percent of the increase to consolidated net worth from the issuance of capital stock.

The facility size of $350.0 million and cost of funds did not change as part of the amendment.  

As of September 30, 2015, the unsecured line of credit had an outstanding balance of $70.0 million and $280.0 million was available for future use.

Debt Repurchases

The following table summarizes the Company's repurchases of its own debt. Gains recorded by the Company from the repurchase of debt are included in "gain on sale of loans and debt repurchases" on the Company’s consolidated statements of income.

 
Par value
 
Purchase price
 
Gain
 
Par value
 
Purchase price
 
Gain
 
Three months ended
 
September 30, 2015
 
September 30, 2014
Unsecured debt - Hybrid Securities
$
—

 
—

 
—

 
—

 
—

 
—

   Asset-backed securities
9,650

 
9,053

 
597

 
2,500

 
2,500

 
—

 
$
9,650

 
9,053

 
597

 
2,500

 
2,500

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended
 
September 30, 2015
 
September 30, 2014
Unsecured debt - Hybrid Securities
$
14,106

 
11,108

 
2,998

 
—

 
—

 
—

   Asset-backed securities
31,800

 
30,162

 
1,638

 
4,000

 
3,943

 
57

 
$
45,906

 
41,270

 
4,636

 
4,000

 
3,943

 
57

Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments

The Company uses derivative financial instruments primarily to manage interest rate risk and foreign currency exchange risk. Derivative instruments used as part of the Company's risk management strategy are further described in note 5 of the notes to consolidated financial statements included in the 2014 Annual Report. A tabular presentation of such derivatives outstanding as of September 30, 2015 and December 31, 2014 is presented below.

Basis Swaps

The following table summarizes the Company’s basis swaps outstanding as of September 30, 2015 and December 31, 2014 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").
 
 
 
 
As of September 30,
 
As of December 31,
 
 
 
2015
 
2014
Maturity
 
Notional amount
 
Notional amount
2016
 
 
$
5,500,000

 
$
—

2021
 
 
—

 
250,000

2022
 
 
450,000

 
1,900,000

2023
 
 
1,050,000

 
3,650,000

2024
 
 
—

 
250,000

2026
 
 
200,000

 
800,000

2028
 
 
—

 
100,000

2036
 
 
—

 
700,000

2039
 
 
—

 
150,000

 
 
 
$
7,200,000

 
$
7,800,000

The weighted average rate paid by the Company on the 1:3 Basis Swaps as of September 30, 2015 and December 31, 2014 was one-month LIBOR plus 9.0 basis points and 3.5 basis points, respectively.
Interest Rate Swaps – Floor Income Hedges

The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
 
 
As of September 30, 2015
 
As of December 31, 2014
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
2015
 
$
—

 
—
%
 
$
1,100,000

 
0.89
%
2016
 
1,000,000

 
0.76

 
750,000

 
0.85

2017
 
2,100,000

 
0.84

 
1,250,000

 
0.86

2018
 
1,350,000

 
1.11

 
—

 
—

2025
 
100,000

 
2.32

 
—

 
—

 
 
$
4,550,000

 
0.93
%
 
$
3,100,000

 
0.87
%

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

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

Interest Rate Swaps – Unsecured Debt Hedges

The Company had the following derivatives outstanding as of September 30, 2015 and December 31, 2014 that are used to effectively convert the variable interest rate on a portion of the Junior Subordinated Hybrid Securities to a fixed rate of 7.66%.
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
25,000

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

Interest Rate Caps

In June 2015, in conjunction with the entry into the $275.0 million private education loan warehouse facility, the Company paid $2.9 million for two interest rate cap contracts with a total notional amount of $275.0 million. The first interest rate cap has a notional amount of $125.0 million and a one-month LIBOR strike rate of 2.50%, and the second interest rate cap has a notional amount of $150.0 million and a one-month LIBOR strike rate of 4.99%. In the event that the one-month LIBOR rate rises above the applicable strike rate, the Company would receive monthly payments related to the spread difference. Both interest rate cap contracts have a maturity date of July 15, 2020.

Foreign Currency Exchange Risk

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

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

The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instrument.
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
Re-measurement of Euro Notes
$
(1,058
)
 
37,418

 
32,480

 
39,216

Change in fair value of cross-currency interest rate swap
666

 
(37,224
)
 
(35,207
)
 
(40,261
)
Total impact to consolidated statements of income - (expense) income (a)
$
(392
)
 
194

 
(2,727
)
 
(1,045
)
(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 corresponding cross-currency interest rate swap. However, the Company will experience unrealized gains or losses related to the cross-currency interest rate swap if the two underlying indices (and related forward curve) do not move in parallel.

Consolidated Financial Statement Impact Related to Derivatives

The following table summarizes the fair value of the Company’s derivatives as reflected in the consolidated balance sheets:
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of
 
As of
 
As of
 
As of
 
September 30,
2015
 
December 31,
2014
 
September 30,
2015
 
December 31,
2014
1:3 basis swaps
$
8,477

 
53,549

 
44

 
—

Interest rate swaps - floor income hedges
—

 
5,165

 
16,142

 
5,034

Interest rate swap option - floor income hedge
3,943

 
5,678

 
—

 
—

Interest rate swaps - hybrid debt hedges
—

 
—

 
8,212

 
7,353

Interest rate caps
1,796

 
—

 
—

 
—

Cross-currency interest rate swap
—


—

 
55,663

 
20,455

Other
1,525

 
—

 
—

 
—

Total
$
15,741

 
64,392

 
80,061

 
32,842



During the nine months ended September 30, 2015, the Company terminated a total notional amount of $6.1 billion of 1:3 Basis Swaps for gross proceeds of $55.6 million. There were no derivative terminations during the first nine months of 2014.

Offsetting of Derivative Assets/Liabilities

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

 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative assets
 
Gross amounts of recognized assets presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral pledged (received)
 
Net asset (liability)
Balance as of September 30, 2015
 
$
15,741

 
(8,620
)
 
—

 
7,121

Balance as of December 31, 2014
 
64,392

 
(12,387
)
 
—

 
52,005


 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative liabilities
 
Gross amounts of recognized liabilities presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral pledged (received)
 
Net asset (liability)
Balance as of September 30, 2015
 
$
(80,061
)
 
8,620

 
37,274

 
(34,167
)
Balance as of December 31, 2014
 
(32,842
)
 
12,387

 
(1,454
)
 
(21,909
)


The following table summarizes the effect of derivative instruments in the consolidated statements of income.
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
Settlements:
 

 
 

 
 

 
 

1:3 basis swaps
$
179

 
808

 
568

 
2,547

Interest rate swaps - floor income hedges
(5,456
)
 
(5,421
)
 
(15,490
)
 
(19,345
)
Interest rate swaps - hybrid debt hedges
(255
)
 
(259
)
 
(760
)
 
(767
)
Cross-currency interest rate swap
(346
)
 
38

 
(853
)
 
288

Total settlements - expense
(5,878
)
 
(4,834
)
 
(16,535
)
 
(17,277
)
Change in fair value:
 

 
 

 
 

 
 

1:3 basis swaps
(1,886
)
 
19,455

 
10,513

 
32,475

Interest rate swaps - floor income hedges
(18,935
)
 
10,628

 
(16,273
)
 
11,173

Interest rate swap option - floor income hedge
(2,205
)
 
(847
)
 
(1,736
)
 
(847
)
Interest rate swaps - hybrid debt hedges
(1,948
)
 
(393
)
 
(861
)
 
(2,971
)
Interest rate caps
(939
)
 
—

 
(1,140
)
 
—

Cross-currency interest rate swap
666

 
(37,224
)
 
(35,207
)
 
(40,261
)
Other
1,525

 
—

 
1,525

 
—

Total change in fair value - expense
(23,722
)
 
(8,381
)
 
(43,179
)
 
(431
)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - (expense) income
(1,058
)
 
37,418

 
32,480

 
39,216

Derivative market value and foreign currency adjustments and derivative settlements, net - (expense) income
$
(30,658
)
 
24,203

 
(27,234
)
 
21,508

Investments and Notes Receivable
Investments
Investments and Notes Receivable

A summary of the Company's investments and notes receivable follows:
 
As of September 30, 2015
 
As of December 31, 2014
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses (a)
 
Fair value
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
 
 
 
 
Investments (at fair value):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities (b)
$
92,327

 
3,797

 
(712
)
 
95,412

 
131,589

 
6,204

 
(236
)
 
137,557

Equity securities
846

 
1,579

 
(100
)
 
2,325

 
1,553

 
2,216

 
(33
)
 
3,736

Total available-for-sale investments
$
93,173

 
5,376

 
(812
)
 
97,737

 
133,142

 
8,420

 
(269
)
 
141,293

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed securities
 
 
 
 
 
 
6,146

 
 
 
 
 
 
 
7,830

Equity securities
 
 
 
 
 
 
9,852

 
 
 
 
 
 
 
—

Total trading investments
 
 
 
 
 
 
15,998

 
 
 
 
 
 
 
7,830

Total available-for-sale and trading investments

 

 

 
113,735

 
 
 
 
 


 
149,123

Other Investments and Notes Receivable (not measured at fair value):
 
 
 
 
 
 
 
 
 
 
 
 
Investments accounted for under the cost and equity methods
 
 
 
 
 
 
80,372

 
 
 
 
 
 
 
36,991

Notes receivable
 
 
 
 
 
 
30,964

 
 
 
 
 
 
 
30,643

Other
 
 
 
 
 
 
10,939

 
 
 
 
 
 
 
18,952

Total investments and notes receivable
 
 
 
 
 
 
$
236,010

 
 
 
 
 
 
 
235,709


    
(a)
As of September 30, 2015, 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 September 30, 2015, 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.
Intangible Assets Intangible Assets
Intangible Assets Disclosure [Text Block]
Intangible Assets and Goodwill

Intangible assets consist of the following:
 
Weighted average remaining useful life as of September 30, 2015 (months)
 
As of September 30, 2015
 
As of December 31, 2014
 
 
 
Amortizable intangible assets:
 
 
 
Customer relationships (net of accumulated amortization of $21,736 and $17,361, respectively)
217
 
$
22,954

 
27,330

Trade names (net of accumulated amortization of $664 and $272, respectively)
224
 
5,758

 
6,150

Computer software (net of accumulated amortization of $3,624 and $1,896, respectively)
35
 
5,242

 
6,969

Content (net of accumulated amortization of $675 and $0, respectively)
15
 
1,125

 
1,800

Covenants not to compete (net of accumulated amortization of $47 and $21, respectively)
104
 
307

 
333

Total - amortizable intangible assets
184
 
$
35,386

 
42,582



The Company recorded amortization expense on its intangible assets of $2.4 million and $2.0 million during the three months ended September 30, 2015 and 2014, respectively, and $7.2 million and $4.4 million during the nine months ended September 30, 2015 and 2014, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of September 30, 2015, the Company estimates it will record amortization expense as follows:

2015 (October 1 - December 31)
$
2,399

2016
6,249

2017
3,752

2018
3,533

2019
2,861

2020 and thereafter
16,592

 
$
35,386



There were no changes in the carrying amount of goodwill during the nine months ended September 30, 2015. The carrying amount of goodwill by reportable operating segment as of September 30, 2015 and December 31, 2014 is shown in the table below.
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset Generation and Management
 
Corporate and Other Activities
 
Total
Balance as of December 31, 2014 and September 30, 2015
$
8,596

 
67,168

 
41,883

 
8,553

 
126,200

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 September 30,
 
2015
 
2014
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
48,436

 
519

 
48,955

 
84,330

 
889

 
85,219

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
44,570,519

 
477,258

 
45,047,777

 
45,948,255

 
484,425

 
46,432,680

Earnings per share - basic and diluted
$
1.09

 
1.09

 
1.09

 
1.84

 
1.84

 
1.84

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
2015
 
2014
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
182,664

 
1,965

 
184,629

 
231,725

 
2,274

 
233,999

 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
45,276,376

 
487,067

 
45,763,443

 
46,044,429

 
451,880

 
46,496,309

Earnings per share - basic and diluted
$
4.03

 
4.03

 
4.03

 
5.03

 
5.03

 
5.03



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

See note 14 of the notes to consolidated financial statements included in the 2014 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.

Effective January 1, 2015, internal reporting to executive management (the "chief operating decision maker") changed to reflect operational changes made within the organization. The operational and internal reporting changes included moving the majority of information technology infrastructure personnel and related functions to Corporate and Other Activities. The associated costs are allocated to the other operating segments based on those segments' actual use of information technology related products and services. Information technology infrastructure personnel and related functions were historically included within the Student Loan and Guaranty Servicing operating segment, and associated costs were allocated to the other operating segments based on those segments' actual use of the related products and services. Prior period segment operating results have been reclassified to reflect these changes; however, the reclassifications had no effect on any operating segment's net income.
 
Three months ended September 30, 2015
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other
Activities
 
Eliminations
 
Total
Total interest income
$
14

 
—

 
188,197

 
1,385

 
(439
)
 
189,157

Interest expense
—

 
—

 
76,040

 
1,563

 
(439
)
 
77,164

Net interest income
14

 
—

 
112,157

 
(178
)
 
—

 
111,993

Less provision for loan losses
—

 
—

 
3,000

 
—

 
—

 
3,000

Net interest income after provision for loan losses
14

 
—

 
109,157

 
(178
)
 
—

 
108,993

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
61,900

 
—

 
—

 
—

 
(380
)
 
61,520

Intersegment servicing revenue
12,027

 
—

 
—

 
—

 
(12,027
)
 
—

Tuition payment processing, school information, and campus commerce revenue
—

 
30,439

 
—

 
—

 
—

 
30,439

Enrollment services revenue
—

 
—

 
—

 
19,500

 
—

 
19,500

Other income
—

 
—

 
3,312

 
3,211

 
—

 
6,523

Gain on sale of loans and debt repurchases
—

 
—

 
608

 
(11
)
 
—

 
597

Derivative market value and foreign currency adjustments, net
—

 
—

 
(24,357
)
 
(423
)
 
—

 
(24,780
)
Derivative settlements, net
—

 
—

 
(5,623
)
 
(255
)
 
—

 
(5,878
)
Total other income
73,927

 
30,439

 
(26,060
)
 
22,022

 
(12,407
)
 
87,921

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
34,525

 
13,983

 
558

 
14,149

 
—

 
63,215

Cost to provide enrollment services
—

 
—

 
—

 
12,534

 
—

 
12,534

Loan servicing fees
—

 
—

 
7,793

 
—

 
—

 
7,793

Depreciation and amortization
484

 
2,202

 
—

 
4,291

 
—

 
6,977

Other
14,602

 
3,579

 
1,421

 
10,817

 
—

 
30,419

Intersegment expenses, net
10,886

 
2,872

 
12,578

 
(13,929
)
 
(12,407
)
 
—

Total operating expenses
60,497

 
22,636

 
22,350

 
27,862

 
(12,407
)
 
120,938

Income (loss) before income taxes and corporate overhead allocation
13,444

 
7,803

 
60,747

 
(6,018
)
 
—

 
75,976

Corporate overhead allocation
(2,351
)
 
(941
)
 
(1,176
)
 
4,468

 
—

 
—

Income (loss) before income taxes
11,093

 
6,862

 
59,571

 
(1,550
)
 
—

 
75,976

Income tax (expense) benefit
(4,215
)
 
(2,606
)
 
(22,639
)
 
2,461

 
—

 
(26,999
)
Net income
6,878

 
4,256

 
36,932

 
911

 
—

 
48,977

  Net (loss) income attributable to noncontrolling interest
(5
)
 
—

 
—

 
27

 
—

 
22

Net income attributable to Nelnet, Inc.
$
6,883

 
4,256

 
36,932

 
884

 
—

 
48,955

 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2014
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other
Activities
 
Eliminations
 
Total
Total interest income
$
5

 
2

 
187,949

 
1,814

 
(346
)
 
189,424

Interest expense
—

 
—

 
71,037

 
1,246

 
(346
)
 
71,937

Net interest income
5

 
2

 
116,912

 
568

 
—

 
117,487

Less provision for loan losses
—

 
—

 
2,000

 
—

 
—

 
2,000

Net interest income after provision for loan losses
5

 
2

 
114,912

 
568

 
—

 
115,487

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
52,659

 
—

 
—

 
—

 
—

 
52,659

Intersegment servicing revenue
13,432

 
—

 
—

 
—

 
(13,432
)
 
—

Tuition payment processing, school information, and campus commerce revenue
—

 
26,399

 
—

 
—

 
—

 
26,399

Enrollment services revenue
—

 
—

 
—

 
22,936

 
—

 
22,936

Other income
—

 
—

 
4,294

 
3,356

 
—

 
7,650

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
—

 
—

Derivative market value and foreign currency adjustments, net
—

 
—

 
29,430

 
(393
)
 
—

 
29,037

Derivative settlements, net
—

 
—

 
(4,575
)
 
(259
)
 
—

 
(4,834
)
Total other income
66,091

 
26,399

 
29,149

 
25,640

 
(13,432
)
 
133,847

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
33,627

 
13,288

 
565

 
13,618

 
—

 
61,098

Cost to provide enrollment services
—

 
—

 
—

 
14,178

 
—

 
14,178

Loan servicing fees
—

 
—

 
7,077

 
—

 
—

 
7,077

Depreciation and amortization
441

 
2,396

 
—

 
2,656

 
—

 
5,493

Other
12,643

 
3,312

 
1,559

 
12,085

 
—

 
29,599

Intersegment expenses, net
8,843

 
1,481

 
13,611

 
(10,503
)
 
(13,432
)
 
—

Total operating expenses
55,554

 
20,477

 
22,812

 
32,034

 
(13,432
)
 
117,445

Income (loss) before income taxes and corporate overhead allocation
10,542

 
5,924

 
121,249

 
(5,826
)
 
—

 
131,889

Corporate overhead allocation
(2,567
)
 
(856
)
 
(1,026
)
 
4,449

 
—

 
—

Income (loss) before income taxes
7,975

 
5,068

 
120,223

 
(1,377
)
 
—

 
131,889

Income tax (expense) benefit
(3,030
)
 
(1,926
)
 
(45,684
)
 
4,127

 
—

 
(46,513
)
Net income
4,945

 
3,142

 
74,539

 
2,750

 
—

 
85,376

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
157

 
—

 
157

Net income attributable to Nelnet, Inc.
$
4,945

 
3,142

 
74,539

 
2,593

 
—

 
85,219

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2015
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other
Activities
 
Eliminations
 
Total
Total interest income
$
34

 
3

 
536,899

 
5,352

 
(1,260
)
 
541,028

Interest expense
—

 
—

 
218,021

 
4,583

 
(1,260
)
 
221,344

Net interest income
34

 
3

 
318,878

 
769

 
—

 
319,684

Less provision for loan losses
—

 
—

 
7,150

 
—

 
—

 
7,150

Net interest income after provision for loan losses
34

 
3

 
311,728

 
769

 
—

 
312,534

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
183,544

 
—

 
—

 
—

 
(380
)
 
183,164

Intersegment servicing revenue
37,121

 
—

 
—

 
—

 
(37,121
)
 
—

Tuition payment processing, school information, and campus commerce revenue
—

 
92,805

 
—

 
—

 
—

 
92,805

Enrollment services revenue
—

 
—

 
—

 
54,524

 
—

 
54,524

Other income
—

 
—

 
11,838

 
9,107

 
—

 
20,945

Gain on sale of loans and debt repurchases
—

 
—

 
2,000

 
2,987

 
—

 
4,987

Derivative market value and foreign currency adjustments, net
—

 
—

 
(11,363
)
 
664

 
—

 
(10,699
)
Derivative settlements, net
—

 
—

 
(15,775
)
 
(760
)
 
—

 
(16,535
)
Total other income
220,665

 
92,805

 
(13,300
)
 
66,522

 
(37,501
)
 
329,191

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
99,813

 
40,887

 
1,623

 
40,729

 
—

 
183,052

Cost to provide enrollment services
—

 
—

 
—

 
35,398

 
—

 
35,398

Loan servicing fees
—

 
—

 
22,829

 
—

 
—

 
22,829

Depreciation and amortization
1,457

 
6,592

 
—

 
11,091

 
—

 
19,140

Other
44,578

 
11,493

 
3,828

 
31,676

 
—

 
91,575

Intersegment expenses, net
32,152

 
8,271

 
38,016

 
(40,938
)
 
(37,501
)
 
—

Total operating expenses
178,000

 
67,243

 
66,296

 
77,956

 
(37,501
)
 
351,994

Income (loss) before income taxes and corporate overhead allocation
42,699

 
25,565

 
232,132

 
(10,665
)
 
—

 
289,731

Corporate overhead allocation
(6,798
)
 
(2,721
)
 
(3,401
)
 
12,920

 
—

 
—

Income before income taxes
35,901

 
22,844

 
228,731

 
2,255

 
—

 
289,731

Income tax (expense) benefit
(13,643
)
 
(8,680
)
 
(86,919
)
 
4,257

 
—

 
(104,985
)
Net income
22,258

 
14,164

 
141,812

 
6,512

 
—

 
184,746

  Net (loss) income attributable to noncontrolling interest
(5
)
 
—

 
—

 
122

 
—

 
117

Net income attributable to Nelnet, Inc.
$
22,263

 
14,164

 
141,812

 
6,390

 
—

 
184,629

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2014
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other
Activities
 
Eliminations
 
Total
Total interest income
$
25

 
5

 
520,514

 
6,508

 
(1,805
)
 
525,247

Interest expense
—

 
—

 
198,449

 
4,532

 
(1,805
)
 
201,176

Net interest income
25

 
5

 
322,065

 
1,976

 
—

 
324,071

Less provision for loan losses
—

 
—

 
6,000

 
—

 
—

 
6,000

Net interest income after provision for loan losses
25

 
5

 
316,065

 
1,976

 
—

 
318,071

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
183,876

 
—

 
—

 
—

 
—

 
183,876

Intersegment servicing revenue
41,453

 
—

 
—

 
—

 
(41,453
)
 
—

Tuition payment processing, school information, and campus commerce revenue
—

 
73,468

 
—

 
—

 
—

 
73,468

Enrollment services revenue
—

 
—

 
—

 
65,092

 
—

 
65,092

Other income
—

 
—

 
12,954

 
28,142

 
—

 
41,096

Gain on sale of loans and debt repurchases
—

 
—

 
57

 
—

 
—

 
57

Derivative market value and foreign currency adjustments, net
—

 
—

 
41,755

 
(2,970
)
 
—

 
38,785

Derivative settlements, net
—

 
—

 
(16,510
)
 
(767
)
 
—

 
(17,277
)
Total other income
225,329

 
73,468

 
38,256

 
89,497

 
(41,453
)
 
385,097

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
93,107

 
34,427

 
1,744

 
38,192

 
—

 
167,470

Cost to provide enrollment services
—

 
—

 
—

 
41,964

 
—

 
41,964

Loan servicing fees
—

 
—

 
19,798

 
—

 
—

 
19,798

Depreciation and amortization
1,298

 
5,669

 
—

 
8,523

 
—

 
15,490

Other
45,269

 
8,915

 
4,829

 
33,869

 
—

 
92,882

Intersegment expenses, net
27,362

 
4,305

 
41,950

 
(32,164
)
 
(41,453
)
 
—

Total operating expenses
167,036

 
53,316

 
68,321

 
90,384

 
(41,453
)
 
337,604

Income before income taxes and corporate overhead allocation
58,318

 
20,157

 
286,000

 
1,089

 
—

 
365,564

Corporate overhead allocation
(6,487
)
 
(2,163
)
 
(3,604
)
 
12,254

 
—

 
—

Income before income taxes
51,831

 
17,994

 
282,396

 
13,343

 
—

 
365,564

Income tax (expense) benefit
(19,695
)
 
(6,837
)
 
(107,309
)
 
3,639

 
—

 
(130,202
)
Net income
32,136

 
11,157

 
175,087

 
16,982

 
—

 
235,362

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
1,363

 
—

 
1,363

Net income attributable to Nelnet, Inc.
$
32,136

 
11,157

 
175,087

 
15,619

 
—

 
233,999

 
 
 
 
 
 
 
 
 
 
 
 
Major Customer
Concentration Risk Disclosure [Text Block]
Major Customer
The Company earns loan servicing revenue from a servicing contract with the U.S. Department of Education that currently expires on June 16, 2019. Revenue earned by the Company's Student Loan and Guaranty Servicing operating segment related to this contract was $33.2 million and $31.2 million for the three months ended September 30, 2015 and 2014, respectively, and $99.3 million and $92.1 million for the nine months ended September 30, 2015 and 2014, respectively.
Related Party Transactions
Related Party Transactions
Related Parties
The Company has entered into certain contractual arrangements with related parties as described in note 20 of the notes to consolidated financial statements included in the 2014 Annual Report.  The following provides an update for related party transactions that occurred during the first nine months of 2015.
On December 22, 2014, the Company entered into an agreement with Union Bank and Trust Company ("Union Bank") in which the Company provides marketing, origination, and loan servicing services to Union Bank related to private education loans. The Company is committed to purchase, or arrange for a designee to purchase, all volume originated by Union Bank under this agreement. During the third quarter of 2015, the Company purchased $0.4 million (par value) of private education loans from Union Bank, pursuant to this agreement. As of September 30, 2015, the balance of private education loans held by Union Bank pursuant to this agreement was $8.5 million.
On March 17, 2015, the Company made a $40.5 million equity investment in Agile Sports Technologies, Inc. (doing business as "Hudl"). David Graff, who has served on the Company's Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl. Prior to the 2015 investment, the Company and Michael Dunlap, the Company's Executive Chairman and a principal shareholder, made separate equity investments in Hudl. Subsequent to the Company's March 2015 investment, the Company and Mr. Dunlap hold combined direct and indirect equity ownership interests in Hudl of 18.7% and 2.8%, respectively. The Company's and Mr. Dunlap's direct and indirect equity ownership interests in Hudl consist of preferred stock with certain liquidation preferences that are considered substantive. Accordingly, for accounting purposes, the Company's and Mr. Dunlap's equity ownership interests are not considered in-substance common stock and the Company is accounting for its equity investment in Hudl under the cost method. The Company's investment in Hudl is included in "investments and notes receivable" in the Company's consolidated balance sheet.

On January 1, 2014, the Company subparticipated the Company's participation interest in a loan receivable from an unrelated third party to Union Bank. On May 22, 2015, the Company paid Union Bank $3.1 million to pay off the outstanding loan balance and terminated the subparticipation agreement.
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 nine months ended September 30, 2015.
 
As of September 30, 2015
 
As of December 31, 2014
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments (available-for-sale and trading):
 
 
 
 


 
 
 
 
 
 
Student loan asset-backed securities
$
—

 
101,237

 
101,237

 
—

 
145,000

 
145,000

Equity securities
12,177

 
—

 
12,177

 
3,736

 
—

 
3,736

Debt securities
321

 
—

 
321

 
387

 
—

 
387

Total investments (available-for-sale and trading)
12,498

 
101,237

 
113,735

 
4,123

 
145,000

 
149,123

Fair value of derivative instruments
—

 
15,741

 
15,741

 
—

 
64,392

 
64,392

Total assets
$
12,498

 
116,978

 
129,476

 
4,123

 
209,392

 
213,515

Liabilities:
 

 
 

 
 

 
 
 
 
 
 
Fair value of derivative instruments
$
—

 
80,061

 
80,061

 
—

 
32,842

 
32,842

Total liabilities
$
—

 
80,061

 
80,061

 
—

 
32,842

 
32,842


The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 
As of September 30, 2015
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
29,390,728

 
28,954,280

 
—

 
—

 
29,390,728

Cash and cash equivalents
114,498

 
114,498

 
114,498

 
—

 
—

Investments (available-for-sale and trading)
113,735

 
113,735

 
12,498

 
101,237

 
—

Notes receivable
28,616

 
30,964

 
—

 
28,616

 
—

Restricted cash
886,974

 
886,974

 
886,974

 
—

 
—

Restricted cash – due to customers
100,089

 
100,089

 
100,089

 
—

 
—

Restricted investments
8,297

 
8,297

 
8,297

 
—

 
—

Accrued interest receivable
380,441

 
380,441

 
—

 
380,441

 
—

Derivative instruments
15,741

 
15,741

 
—

 
15,741

 
—

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
28,103,296

 
28,827,603

 
—

 
28,103,296

 
—

Accrued interest payable
31,632

 
31,632

 
—

 
31,632

 
—

Due to customers
100,089

 
100,089

 
100,089

 
—

 
—

Derivative instruments
80,061

 
80,061

 
—

 
80,061

 
—

 
As of December 31, 2014
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
28,954,226

 
28,005,195

 
—

 
—

 
28,954,226

Cash and cash equivalents
130,481

 
130,481

 
130,481

 
—

 
—

Investments (available-for-sale and trading)
149,123

 
149,123

 
4,123

 
145,000

 
—

Notes receivable
28,832

 
30,643

 
—

 
28,832

 
—

Restricted cash
800,164

 
800,164

 
800,164

 
—

 
—

Restricted cash – due to customers
118,488

 
118,488

 
118,488

 
—

 
—

Restricted investments
50,276

 
50,276

 
50,276

 
—

 
—

Accrued interest receivable
351,588

 
351,588

 
—

 
351,588

 
—

Derivative instruments
64,392

 
64,392

 
—

 
64,392

 
—

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
27,809,997

 
28,027,350

 
—

 
27,809,997

 
—

Accrued interest payable
25,904

 
25,904

 
—

 
25,904

 
—

Due to customers
118,488

 
118,488

 
118,488

 
—

 
—

Derivative instruments
32,842

 
32,842

 
—

 
32,842

 
—


 
The methodologies for estimating the fair value of financial assets and liabilities are described in note 21 of the notes to consolidated financial statements included in the 2014 Annual Report.
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 September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2014 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results for the year ending December 31, 2015. 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, 2014 (the "2014 Annual Report").
Student Loans Receivable and Allowance for Loan Losses (Tables)
Schedule of Accounts, Notes, Loans and Financing Receivable 
Student loans receivable consisted of the following:
 
As of
 
As of
 
September 30, 2015
 
December 31, 2014
Federally insured loans
 
 
 
Stafford and other
$
6,375,336

 
6,030,825

Consolidation
22,580,043

 
22,165,605

Total
28,955,379

 
28,196,430

Private education loans
232,824

 
27,478

 
29,188,203

 
28,223,908

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(183,543
)
 
(169,813
)
Allowance for loan losses – federally insured loans
(35,945
)
 
(39,170
)
Allowance for loan losses – private education loans
(14,435
)
 
(9,730
)
 
$
28,954,280

 
28,005,195



(a)
As of September 30, 2015 and December 31, 2014, "loan discount, net of unamortized loan premiums and deferred origination costs" included $35.4 million and $28.8 million, respectively, of non-accretable discount associated with purchased loans of $10.9 billion and $8.5 billion, respectively.

Allowance for Credit Losses on Financing Receivables 
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 September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
Balance at beginning of period
$
50,024

 
52,467

 
48,900

 
55,122

Provision for loan losses:
 
 
 
 
 

 
 

Federally insured loans
2,000

 
2,000

 
6,000

 
7,000

Private education loans
1,000

 
—

 
1,150

 
(1,000
)
Total provision for loan losses
3,000

 
2,000

 
7,150

 
6,000

Charge-offs:
 

 
 

 
 

 
 

Federally insured loans
(2,817
)
 
(3,521
)
 
(9,225
)
 
(11,290
)
Private education loans
(357
)
 
(623
)
 
(1,479
)
 
(1,642
)
Total charge-offs
(3,174
)
 
(4,144
)
 
(10,704
)
 
(12,932
)
Recoveries - private education loans
250

 
279

 
742

 
989

Purchase (sale) of federally insured and private education loans, net
30

 
70

 
(200
)
 
320

Transfer from repurchase obligation related to private education loans repurchased
250

 
1,296

 
4,492

 
2,469

Balance at end of period
$
50,380

 
51,968

 
50,380

 
51,968

 
 
 
 
 
 
 
 
Allocation of the allowance for loan losses:
 
 
 

 
 

 
 

Federally insured loans
$
35,945

 
39,470

 
35,945

 
39,470

Private education loans
14,435

 
12,498

 
14,435

 
12,498

Total allowance for loan losses
$
50,380

 
51,968

 
50,380

 
51,968


Financing Receivable Credit Quality Indicators 
Student Loan Status and Delinquencies

Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.  The table below shows the Company’s loan delinquency amounts.

 
As of September 30, 2015
 
As of December 31, 2014
 
As of September 30, 2014
Federally insured loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
2,638,639

 
 
 
$
2,805,228

 
 
 
$
3,072,318

 
 
Loans in forbearance
2,993,844

 
 
 
3,288,412

 
 
 
3,505,103

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
19,681,517

 
84.4
%
 
18,460,279

 
83.5
%
 
18,672,178

 
83.8
%
Loans delinquent 31-60 days
1,021,515

 
4.4

 
1,043,119

 
4.8

 
990,696

 
4.5

Loans delinquent 61-90 days
638,037

 
2.7

 
588,777

 
2.7

 
569,879

 
2.6

Loans delinquent 91-120 days
465,261

 
2.0

 
404,905

 
1.8

 
452,463

 
2.0

Loans delinquent 121-270 days
1,139,864

 
4.9

 
1,204,405

 
5.4

 
1,183,616

 
5.3

Loans delinquent 271 days or greater
376,702

 
1.6

 
401,305

 
1.8

 
405,346

 
1.8

Total loans in repayment
23,322,896

 
100.0
%
 
22,102,790

 
100.0
%
 
22,274,178

 
100.0
%
Total federally insured loans
$
28,955,379

 
 

 
$
28,196,430

 
 

 
$
28,851,599

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private education loans:
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
7,724

 
 
 
$
905

 
 
 
$
2,958

 
 
Loans in forbearance
16

 
 
 
—

 
 
 
—

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
216,502

 
96.2
%
 
18,390

 
69.2
%
 
65,560

 
87.8
%
Loans delinquent 31-60 days
1,999

 
0.9

 
1,078

 
4.1

 
1,340

 
1.8

Loans delinquent 61-90 days
1,206

 
0.5

 
1,035

 
3.9

 
1,516

 
2.0

Loans delinquent 91 days or greater
5,377

 
2.4

 
6,070

 
22.8

 
6,249

 
8.4

Total loans in repayment
225,084

 
100.0
%
 
26,573

 
100.0
%
 
74,665

 
100.0
%
Total non-federally insured loans
$
232,824

 
 

 
$
27,478

 
 

 
$
77,623

 
 
Bonds and Notes payable (Tables)
Schedule of Debt 
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
As of September 30, 2015
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
26,346,635

 
0.08% - 6.90%
 
8/26/19 - 8/26/52
Bonds and notes based on auction
1,161,515

 
1.11% - 2.13%
 
3/22/32 - 11/26/46
Total variable-rate bonds and notes
27,508,150

 
 
 
 
FFELP warehouse facilities
1,391,877

 
0.20% - 0.41%
 
12/17/17 - 7/9/18
Private education loan warehouse facility
170,081

 
0.42%
 
12/26/16
Unsecured line of credit
70,000

 
1.72%
 
6/30/19
Unsecured debt - Junior Subordinated Hybrid Securities
57,582

 
3.70%
 
9/15/61
Other borrowings
75,000

 
1.69%
 
10/31/16
 
29,272,690

 
 
 
 
Discount on bonds and notes payable
(445,087
)
 
 
 
 
Total
$
28,827,603

 
 
 
 
 
As of December 31, 2014
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
25,713,431

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

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

 
 
 
 
FFELP warehouse facilities
1,241,665

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

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

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

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

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

 
 
 
 
Schedule of Line of Credit Facilities 
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 September 30, 2015, the Company had three FFELP warehouse facilities as summarized below.
 
 
NHELP-II
 
NHELP-III
 
NFSLW-I (a)
 
Total
Maximum financing amount
 
$
500,000

 
750,000

 
875,000

 
2,125,000

Amount outstanding
 
446,624

 
395,631

 
549,622

 
1,391,877

Amount available
 
$
53,376

 
354,369

 
325,378

 
733,123

Expiration of liquidity provisions
 
December 17, 2015

 
April 29, 2016

 
July 8, 2016

 
 
Final maturity date
 
December 17, 2017

 
April 29, 2018

 
July 9, 2018

 
 
Maximum advance rates
 
91.0 - 97.0%

 
92.2 - 95.0%

 
92.0 - 98.0%

 
 
Minimum advance rates
 
91.0 - 97.0%

 
92.2 - 95.0%

 
84.0 - 90.0%

 
 
Advanced as equity support
 
$
24,538

 
22,427

 
26,124

 
73,089



(a)
On July 10, 2015, the Company amended the agreement for this warehouse facility to temporarily increase the maximum financing amount to $875.0 million, extend the expiration of the liquidity provisions to July 8, 2016, and extend the maturity date to July 9, 2018. The maximum financing amount is scheduled to decrease by $125.0 million on March 31, 2016.
Schedule of asset-backed securitizations [Table Text Block] 
Asset-backed Securitizations

The following table summarizes the asset-backed securitization transactions completed during the nine months ended September 30, 2015.
 
 
2015-1
 
2015-2
 
2015-3
 
Total
 
 
 
 
Class A-1 notes
 
Class A-2 notes
 
2015-2 total
 
Class A-1 notes
 
Class A-2 notes
 
Class A-3 notes
 
2015-3 total
 
 
Date securities issued
 
2/27/15
 
3/26/15
 
3/26/15
 
3/26/15
 
5/21/15
 
5/21/15
 
5/21/15
 
5/21/15
 
 
Total original principal amount
 
$
566,346

 
122,500

 
584,500

 
722,000

 
82,500

 
270,000

 
41,400

 
401,400

 
$
1,689,746

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class A senior notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
553,232

 
122,500

 
584,500

 
707,000

 
82,500

 
270,000

 
41,400

 
393,900

 
1,654,132

Bond discount
 
—

 
—

 
—

 
—

 
—

 
(380
)
 
(1,095
)
 
(1,475
)
 
(1,475
)
Issue price
 
$
553,232

 
122,500

 
584,500

 
707,000

 
82,500

 
269,620

 
40,305

 
392,425

 
1,652,657

Cost of funds (1-month LIBOR plus:)
 
0.59
%
 
0.27
%
 
0.60
%
 
 
 
0.30
%
 
0.60
%
 
0.90
%
 
 
 
 
Final maturity date
 
4/25/41

 
3/25/20

 
9/25/42

 
 
 
1/27/25

 
2/26/46

 
6/25/49

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class B subordinated notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
13,114

 
 
 
 
 
15,000

 

 
 
 
 
 
7,500

 
35,614

Bond discount
 
(1,157
)
 
 
 
 
 
(1,793
)
 

 
 
 
 
 
(968
)
 
(3,918
)
Issue price
 
$
11,957

 

 
 
 
13,207

 

 
 
 
 
 
6,532

 
31,696

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

 
 
 
 
 
1.50
%
 
 
Final maturity date
 
6/25/46

 
 
 
 
 
5/25/49

 
 
 
 
 
 
 
6/27/50

 
 

Schedule of Extinguishment of Debt [Table Text Block] 
The following table summarizes the Company's repurchases of its own debt. Gains recorded by the Company from the repurchase of debt are included in "gain on sale of loans and debt repurchases" on the Company’s consolidated statements of income.

 
Par value
 
Purchase price
 
Gain
 
Par value
 
Purchase price
 
Gain
 
Three months ended
 
September 30, 2015
 
September 30, 2014
Unsecured debt - Hybrid Securities
$
—

 
—

 
—

 
—

 
—

 
—

   Asset-backed securities
9,650

 
9,053

 
597

 
2,500

 
2,500

 
—

 
$
9,650

 
9,053

 
597

 
2,500

 
2,500

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended
 
September 30, 2015
 
September 30, 2014
Unsecured debt - Hybrid Securities
$
14,106

 
11,108

 
2,998

 
—

 
—

 
—

   Asset-backed securities
31,800

 
30,162

 
1,638

 
4,000

 
3,943

 
57

 
$
45,906

 
41,270

 
4,636

 
4,000

 
3,943

 
57

Derivative Financial Instruments (Tables)
Interest Rate Swaps - 1:3 Basis swaps 
Basis Swaps

The following table summarizes the Company’s basis swaps outstanding as of September 30, 2015 and December 31, 2014 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").
 
 
 
 
As of September 30,
 
As of December 31,
 
 
 
2015
 
2014
Maturity
 
Notional amount
 
Notional amount
2016
 
 
$
5,500,000

 
$
—

2021
 
 
—

 
250,000

2022
 
 
450,000

 
1,900,000

2023
 
 
1,050,000

 
3,650,000

2024
 
 
—

 
250,000

2026
 
 
200,000

 
800,000

2028
 
 
—

 
100,000

2036
 
 
—

 
700,000

2039
 
 
—

 
150,000

 
 
 
$
7,200,000

 
$
7,800,000

The weighted average rate paid by the Company on the 1:3 Basis Swaps as of September 30, 2015 and December 31, 2014 was one-month LIBOR plus 9.0 basis points and 3.5 basis points, respectively.
Interest Rate Swaps - Floor Income Hedges 
Interest Rate Swaps – Floor Income Hedges

The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
 
 
As of September 30, 2015
 
As of December 31, 2014
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
2015
 
$
—

 
—
%
 
$
1,100,000

 
0.89
%
2016
 
1,000,000

 
0.76

 
750,000

 
0.85

2017
 
2,100,000

 
0.84

 
1,250,000

 
0.86

2018
 
1,350,000

 
1.11

 
—

 
—

2025
 
100,000

 
2.32

 
—

 
—

 
 
$
4,550,000

 
0.93
%
 
$
3,100,000

 
0.87
%

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

The Company had the following derivatives outstanding as of September 30, 2015 and December 31, 2014 that are used to effectively convert the variable interest rate on a portion of the Junior Subordinated Hybrid Securities to a fixed rate of 7.66%.
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
25,000

 
4.28
%
(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.
Impact of Foreign Exchange Contracts on the Statement of Income 
The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instrument.
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
Re-measurement of Euro Notes
$
(1,058
)
 
37,418

 
32,480

 
39,216

Change in fair value of cross-currency interest rate swap
666

 
(37,224
)
 
(35,207
)
 
(40,261
)
Total impact to consolidated statements of income - (expense) income (a)
$
(392
)
 
194

 
(2,727
)
 
(1,045
)
(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 
Consolidated Financial Statement Impact Related to Derivatives

The following table summarizes the fair value of the Company’s derivatives as reflected in the consolidated balance sheets:
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of
 
As of
 
As of
 
As of
 
September 30,
2015
 
December 31,
2014
 
September 30,
2015
 
December 31,
2014
1:3 basis swaps
$
8,477

 
53,549

 
44

 
—

Interest rate swaps - floor income hedges
—

 
5,165

 
16,142

 
5,034

Interest rate swap option - floor income hedge
3,943

 
5,678

 
—

 
—

Interest rate swaps - hybrid debt hedges
—

 
—

 
8,212

 
7,353

Interest rate caps
1,796

 
—

 
—

 
—

Cross-currency interest rate swap
—


—

 
55,663

 
20,455

Other
1,525

 
—

 
—

 
—

Total
$
15,741

 
64,392

 
80,061

 
32,842



During the nine months ended September 30, 2015, the Company terminated a total notional amount of $6.1 billion of 1:3 Basis Swaps for gross proceeds of $55.6 million. There were no derivative terminations during the first nine months of 2014.

Derivatives with master netting arrangements reconciliation [Table Text Block] [Table Text Block] 
Offsetting of Derivative Assets/Liabilities

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

 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative assets
 
Gross amounts of recognized assets presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral pledged (received)
 
Net asset (liability)
Balance as of September 30, 2015
 
$
15,741

 
(8,620
)
 
—

 
7,121

Balance as of December 31, 2014
 
64,392

 
(12,387
)
 
—

 
52,005


 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative liabilities
 
Gross amounts of recognized liabilities presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral pledged (received)
 
Net asset (liability)
Balance as of September 30, 2015
 
$
(80,061
)
 
8,620

 
37,274

 
(34,167
)
Balance as of December 31, 2014
 
(32,842
)
 
12,387

 
(1,454
)
 
(21,909
)
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 September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
Settlements:
 

 
 

 
 

 
 

1:3 basis swaps
$
179

 
808

 
568

 
2,547

Interest rate swaps - floor income hedges
(5,456
)
 
(5,421
)
 
(15,490
)
 
(19,345
)
Interest rate swaps - hybrid debt hedges
(255
)
 
(259
)
 
(760
)
 
(767
)
Cross-currency interest rate swap
(346
)
 
38

 
(853
)
 
288

Total settlements - expense
(5,878
)
 
(4,834
)
 
(16,535
)
 
(17,277
)
Change in fair value:
 

 
 

 
 

 
 

1:3 basis swaps
(1,886
)
 
19,455

 
10,513

 
32,475

Interest rate swaps - floor income hedges
(18,935
)
 
10,628

 
(16,273
)
 
11,173

Interest rate swap option - floor income hedge
(2,205
)
 
(847
)
 
(1,736
)
 
(847
)
Interest rate swaps - hybrid debt hedges
(1,948
)
 
(393
)
 
(861
)
 
(2,971
)
Interest rate caps
(939
)
 
—

 
(1,140
)
 
—

Cross-currency interest rate swap
666

 
(37,224
)
 
(35,207
)
 
(40,261
)
Other
1,525

 
—

 
1,525

 
—

Total change in fair value - expense
(23,722
)
 
(8,381
)
 
(43,179
)
 
(431
)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - (expense) income
(1,058
)
 
37,418

 
32,480

 
39,216

Derivative market value and foreign currency adjustments and derivative settlements, net - (expense) income
$
(30,658
)
 
24,203

 
(27,234
)
 
21,508

Investments and Notes Receivable (Tables)
Summary Investment Holdings
A summary of the Company's investments and notes receivable follows:
 
As of September 30, 2015
 
As of December 31, 2014
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses (a)
 
Fair value
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
 
 
 
 
Investments (at fair value):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities (b)
$
92,327

 
3,797

 
(712
)
 
95,412

 
131,589

 
6,204

 
(236
)
 
137,557

Equity securities
846

 
1,579

 
(100
)
 
2,325

 
1,553

 
2,216

 
(33
)
 
3,736

Total available-for-sale investments
$
93,173

 
5,376

 
(812
)
 
97,737

 
133,142

 
8,420

 
(269
)
 
141,293

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed securities
 
 
 
 
 
 
6,146

 
 
 
 
 
 
 
7,830

Equity securities
 
 
 
 
 
 
9,852

 
 
 
 
 
 
 
—

Total trading investments
 
 
 
 
 
 
15,998

 
 
 
 
 
 
 
7,830

Total available-for-sale and trading investments

 

 

 
113,735

 
 
 
 
 


 
149,123

Other Investments and Notes Receivable (not measured at fair value):
 
 
 
 
 
 
 
 
 
 
 
 
Investments accounted for under the cost and equity methods
 
 
 
 
 
 
80,372

 
 
 
 
 
 
 
36,991

Notes receivable
 
 
 
 
 
 
30,964

 
 
 
 
 
 
 
30,643

Other
 
 
 
 
 
 
10,939

 
 
 
 
 
 
 
18,952

Total investments and notes receivable
 
 
 
 
 
 
$
236,010

 
 
 
 
 
 
 
235,709


    
(a)
As of September 30, 2015, 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 September 30, 2015, 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.

Intangible Assets Intangible Assets (Tables)
Schedule of Finite-Lived Intangible Assets [Table Text Block] 
Intangible assets consist of the following:
 
Weighted average remaining useful life as of September 30, 2015 (months)
 
As of September 30, 2015
 
As of December 31, 2014
 
 
 
Amortizable intangible assets:
 
 
 
Customer relationships (net of accumulated amortization of $21,736 and $17,361, respectively)
217
 
$
22,954

 
27,330

Trade names (net of accumulated amortization of $664 and $272, respectively)
224
 
5,758

 
6,150

Computer software (net of accumulated amortization of $3,624 and $1,896, respectively)
35
 
5,242

 
6,969

Content (net of accumulated amortization of $675 and $0, respectively)
15
 
1,125

 
1,800

Covenants not to compete (net of accumulated amortization of $47 and $21, respectively)
104
 
307

 
333

Total - amortizable intangible assets
184
 
$
35,386

 
42,582

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] 
The Company recorded amortization expense on its intangible assets of $2.4 million and $2.0 million during the three months ended September 30, 2015 and 2014, respectively, and $7.2 million and $4.4 million during the nine months ended September 30, 2015 and 2014, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of September 30, 2015, the Company estimates it will record amortization expense as follows:

2015 (October 1 - December 31)
$
2,399

2016
6,249

2017
3,752

2018
3,533

2019
2,861

2020 and thereafter
16,592

 
$
35,386

Schedule of Goodwill [Table Text Block] 
The carrying amount of goodwill by reportable operating segment as of September 30, 2015 and December 31, 2014 is shown in the table below.
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset Generation and Management
 
Corporate and Other Activities
 
Total
Balance as of December 31, 2014 and September 30, 2015
$
8,596

 
67,168

 
41,883

 
8,553

 
126,200

Earnings per Common Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
 
Three months ended September 30,
 
2015
 
2014
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
48,436

 
519

 
48,955

 
84,330

 
889

 
85,219

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
44,570,519

 
477,258

 
45,047,777

 
45,948,255

 
484,425

 
46,432,680

Earnings per share - basic and diluted
$
1.09

 
1.09

 
1.09

 
1.84

 
1.84

 
1.84

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
2015
 
2014
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
182,664

 
1,965

 
184,629

 
231,725

 
2,274

 
233,999

 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
45,276,376

 
487,067

 
45,763,443

 
46,044,429

 
451,880

 
46,496,309

Earnings per share - basic and diluted
$
4.03

 
4.03

 
4.03

 
5.03

 
5.03

 
5.03

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

See note 14 of the notes to consolidated financial statements included in the 2014 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.

Effective January 1, 2015, internal reporting to executive management (the "chief operating decision maker") changed to reflect operational changes made within the organization. The operational and internal reporting changes included moving the majority of information technology infrastructure personnel and related functions to Corporate and Other Activities. The associated costs are allocated to the other operating segments based on those segments' actual use of information technology related products and services. Information technology infrastructure personnel and related functions were historically included within the Student Loan and Guaranty Servicing operating segment, and associated costs were allocated to the other operating segments based on those segments' actual use of the related products and services. Prior period segment operating results have been reclassified to reflect these changes; however, the reclassifications had no effect on any operating segment's net income.
 
Three months ended September 30, 2015
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other
Activities
 
Eliminations
 
Total
Total interest income
$
14

 
—

 
188,197

 
1,385

 
(439
)
 
189,157

Interest expense
—

 
—

 
76,040

 
1,563

 
(439
)
 
77,164

Net interest income
14

 
—

 
112,157

 
(178
)
 
—

 
111,993

Less provision for loan losses
—

 
—

 
3,000

 
—

 
—

 
3,000

Net interest income after provision for loan losses
14

 
—

 
109,157

 
(178
)
 
—

 
108,993

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
61,900

 
—

 
—

 
—

 
(380
)
 
61,520

Intersegment servicing revenue
12,027

 
—

 
—

 
—

 
(12,027
)
 
—

Tuition payment processing, school information, and campus commerce revenue
—

 
30,439

 
—

 
—

 
—

 
30,439

Enrollment services revenue
—

 
—

 
—

 
19,500

 
—

 
19,500

Other income
—

 
—

 
3,312

 
3,211

 
—

 
6,523

Gain on sale of loans and debt repurchases
—

 
—

 
608

 
(11
)
 
—

 
597

Derivative market value and foreign currency adjustments, net
—

 
—

 
(24,357
)
 
(423
)
 
—

 
(24,780
)
Derivative settlements, net
—

 
—

 
(5,623
)
 
(255
)
 
—

 
(5,878
)
Total other income
73,927

 
30,439

 
(26,060
)
 
22,022

 
(12,407
)
 
87,921

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
34,525

 
13,983

 
558

 
14,149

 
—

 
63,215

Cost to provide enrollment services
—

 
—

 
—

 
12,534

 
—

 
12,534

Loan servicing fees
—

 
—

 
7,793

 
—

 
—

 
7,793

Depreciation and amortization
484

 
2,202

 
—

 
4,291

 
—

 
6,977

Other
14,602

 
3,579

 
1,421

 
10,817

 
—

 
30,419

Intersegment expenses, net
10,886

 
2,872

 
12,578

 
(13,929
)
 
(12,407
)
 
—

Total operating expenses
60,497

 
22,636

 
22,350

 
27,862

 
(12,407
)
 
120,938

Income (loss) before income taxes and corporate overhead allocation
13,444

 
7,803

 
60,747

 
(6,018
)
 
—

 
75,976

Corporate overhead allocation
(2,351
)
 
(941
)
 
(1,176
)
 
4,468

 
—

 
—

Income (loss) before income taxes
11,093

 
6,862

 
59,571

 
(1,550
)
 
—

 
75,976

Income tax (expense) benefit
(4,215
)
 
(2,606
)
 
(22,639
)
 
2,461

 
—

 
(26,999
)
Net income
6,878

 
4,256

 
36,932

 
911

 
—

 
48,977

  Net (loss) income attributable to noncontrolling interest
(5
)
 
—

 
—

 
27

 
—

 
22

Net income attributable to Nelnet, Inc.
$
6,883

 
4,256

 
36,932

 
884

 
—

 
48,955

 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2014
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other
Activities
 
Eliminations
 
Total
Total interest income
$
5

 
2

 
187,949

 
1,814

 
(346
)
 
189,424

Interest expense
—

 
—

 
71,037

 
1,246

 
(346
)
 
71,937

Net interest income
5

 
2

 
116,912

 
568

 
—

 
117,487

Less provision for loan losses
—

 
—

 
2,000

 
—

 
—

 
2,000

Net interest income after provision for loan losses
5

 
2

 
114,912

 
568

 
—

 
115,487

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
52,659

 
—

 
—

 
—

 
—

 
52,659

Intersegment servicing revenue
13,432

 
—

 
—

 
—

 
(13,432
)
 
—

Tuition payment processing, school information, and campus commerce revenue
—

 
26,399

 
—

 
—

 
—

 
26,399

Enrollment services revenue
—

 
—

 
—

 
22,936

 
—

 
22,936

Other income
—

 
—

 
4,294

 
3,356

 
—

 
7,650

Gain on sale of loans and debt repurchases
—

 
—

 
—

 
—

 
—

 
—

Derivative market value and foreign currency adjustments, net
—

 
—

 
29,430

 
(393
)
 
—

 
29,037

Derivative settlements, net
—

 
—

 
(4,575
)
 
(259
)
 
—

 
(4,834
)
Total other income
66,091

 
26,399

 
29,149

 
25,640

 
(13,432
)
 
133,847

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
33,627

 
13,288

 
565

 
13,618

 
—

 
61,098

Cost to provide enrollment services
—

 
—

 
—

 
14,178

 
—

 
14,178

Loan servicing fees
—

 
—

 
7,077

 
—

 
—

 
7,077

Depreciation and amortization
441

 
2,396

 
—

 
2,656

 
—

 
5,493

Other
12,643

 
3,312

 
1,559

 
12,085

 
—

 
29,599

Intersegment expenses, net
8,843

 
1,481

 
13,611

 
(10,503
)
 
(13,432
)
 
—

Total operating expenses
55,554

 
20,477

 
22,812

 
32,034

 
(13,432
)
 
117,445

Income (loss) before income taxes and corporate overhead allocation
10,542

 
5,924

 
121,249

 
(5,826
)
 
—

 
131,889

Corporate overhead allocation
(2,567
)
 
(856
)
 
(1,026
)
 
4,449

 
—

 
—

Income (loss) before income taxes
7,975

 
5,068

 
120,223

 
(1,377
)
 
—

 
131,889

Income tax (expense) benefit
(3,030
)
 
(1,926
)
 
(45,684
)
 
4,127

 
—

 
(46,513
)
Net income
4,945

 
3,142

 
74,539

 
2,750

 
—

 
85,376

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
157

 
—

 
157

Net income attributable to Nelnet, Inc.
$
4,945

 
3,142

 
74,539

 
2,593

 
—

 
85,219

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2015
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other
Activities
 
Eliminations
 
Total
Total interest income
$
34

 
3

 
536,899

 
5,352

 
(1,260
)
 
541,028

Interest expense
—

 
—

 
218,021

 
4,583

 
(1,260
)
 
221,344

Net interest income
34

 
3

 
318,878

 
769

 
—

 
319,684

Less provision for loan losses
—

 
—

 
7,150

 
—

 
—

 
7,150

Net interest income after provision for loan losses
34

 
3

 
311,728

 
769

 
—

 
312,534

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
183,544

 
—

 
—

 
—

 
(380
)
 
183,164

Intersegment servicing revenue
37,121

 
—

 
—

 
—

 
(37,121
)
 
—

Tuition payment processing, school information, and campus commerce revenue
—

 
92,805

 
—

 
—

 
—

 
92,805

Enrollment services revenue
—

 
—

 
—

 
54,524

 
—

 
54,524

Other income
—

 
—

 
11,838

 
9,107

 
—

 
20,945

Gain on sale of loans and debt repurchases
—

 
—

 
2,000

 
2,987

 
—

 
4,987

Derivative market value and foreign currency adjustments, net
—

 
—

 
(11,363
)
 
664

 
—

 
(10,699
)
Derivative settlements, net
—

 
—

 
(15,775
)
 
(760
)
 
—

 
(16,535
)
Total other income
220,665

 
92,805

 
(13,300
)
 
66,522

 
(37,501
)
 
329,191

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
99,813

 
40,887

 
1,623

 
40,729

 
—

 
183,052

Cost to provide enrollment services
—

 
—

 
—

 
35,398

 
—

 
35,398

Loan servicing fees
—

 
—

 
22,829

 
—

 
—

 
22,829

Depreciation and amortization
1,457

 
6,592

 
—

 
11,091

 
—

 
19,140

Other
44,578

 
11,493

 
3,828

 
31,676

 
—

 
91,575

Intersegment expenses, net
32,152

 
8,271

 
38,016

 
(40,938
)
 
(37,501
)
 
—

Total operating expenses
178,000

 
67,243

 
66,296

 
77,956

 
(37,501
)
 
351,994

Income (loss) before income taxes and corporate overhead allocation
42,699

 
25,565

 
232,132

 
(10,665
)
 
—

 
289,731

Corporate overhead allocation
(6,798
)
 
(2,721
)
 
(3,401
)
 
12,920

 
—

 
—

Income before income taxes
35,901

 
22,844

 
228,731

 
2,255

 
—

 
289,731

Income tax (expense) benefit
(13,643
)
 
(8,680
)
 
(86,919
)
 
4,257

 
—

 
(104,985
)
Net income
22,258

 
14,164

 
141,812

 
6,512

 
—

 
184,746

  Net (loss) income attributable to noncontrolling interest
(5
)
 
—

 
—

 
122

 
—

 
117

Net income attributable to Nelnet, Inc.
$
22,263

 
14,164

 
141,812

 
6,390

 
—

 
184,629

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2014
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Asset
Generation and
Management
 
Corporate and Other
Activities
 
Eliminations
 
Total
Total interest income
$
25

 
5

 
520,514

 
6,508

 
(1,805
)
 
525,247

Interest expense
—

 
—

 
198,449

 
4,532

 
(1,805
)
 
201,176

Net interest income
25

 
5

 
322,065

 
1,976

 
—

 
324,071

Less provision for loan losses
—

 
—

 
6,000

 
—

 
—

 
6,000

Net interest income after provision for loan losses
25

 
5

 
316,065

 
1,976

 
—

 
318,071

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
183,876

 
—

 
—

 
—

 
—

 
183,876

Intersegment servicing revenue
41,453

 
—

 
—

 
—

 
(41,453
)
 
—

Tuition payment processing, school information, and campus commerce revenue
—

 
73,468

 
—

 
—

 
—

 
73,468

Enrollment services revenue
—

 
—

 
—

 
65,092

 
—

 
65,092

Other income
—

 
—

 
12,954

 
28,142

 
—

 
41,096

Gain on sale of loans and debt repurchases
—

 
—

 
57

 
—

 
—

 
57

Derivative market value and foreign currency adjustments, net
—

 
—

 
41,755

 
(2,970
)
 
—

 
38,785

Derivative settlements, net
—

 
—

 
(16,510
)
 
(767
)
 
—

 
(17,277
)
Total other income
225,329

 
73,468

 
38,256

 
89,497

 
(41,453
)
 
385,097

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
93,107

 
34,427

 
1,744

 
38,192

 
—

 
167,470

Cost to provide enrollment services
—

 
—

 
—

 
41,964

 
—

 
41,964

Loan servicing fees
—

 
—

 
19,798

 
—

 
—

 
19,798

Depreciation and amortization
1,298

 
5,669

 
—

 
8,523

 
—

 
15,490

Other
45,269

 
8,915

 
4,829

 
33,869

 
—

 
92,882

Intersegment expenses, net
27,362

 
4,305

 
41,950

 
(32,164
)
 
(41,453
)
 
—

Total operating expenses
167,036

 
53,316

 
68,321

 
90,384

 
(41,453
)
 
337,604

Income before income taxes and corporate overhead allocation
58,318

 
20,157

 
286,000

 
1,089

 
—

 
365,564

Corporate overhead allocation
(6,487
)
 
(2,163
)
 
(3,604
)
 
12,254

 
—

 
—

Income before income taxes
51,831

 
17,994

 
282,396

 
13,343

 
—

 
365,564

Income tax (expense) benefit
(19,695
)
 
(6,837
)
 
(107,309
)
 
3,639

 
—

 
(130,202
)
Net income
32,136

 
11,157

 
175,087

 
16,982

 
—

 
235,362

  Net income attributable to noncontrolling interest
—

 
—

 
—

 
1,363

 
—

 
1,363

Net income attributable to Nelnet, Inc.
$
32,136

 
11,157

 
175,087

 
15,619

 
—

 
233,999

 
 
 
 
 
 
 
 
 
 
 
 
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 nine months ended September 30, 2015.
 
As of September 30, 2015
 
As of December 31, 2014
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments (available-for-sale and trading):
 
 
 
 


 
 
 
 
 
 
Student loan asset-backed securities
$
—

 
101,237

 
101,237

 
—

 
145,000

 
145,000

Equity securities
12,177

 
—

 
12,177

 
3,736

 
—

 
3,736

Debt securities
321

 
—

 
321

 
387

 
—

 
387

Total investments (available-for-sale and trading)
12,498

 
101,237

 
113,735

 
4,123

 
145,000

 
149,123

Fair value of derivative instruments
—

 
15,741

 
15,741

 
—

 
64,392

 
64,392

Total assets
$
12,498

 
116,978

 
129,476

 
4,123

 
209,392

 
213,515

Liabilities:
 

 
 

 
 

 
 
 
 
 
 
Fair value of derivative instruments
$
—

 
80,061

 
80,061

 
—

 
32,842

 
32,842

Total liabilities
$
—

 
80,061

 
80,061

 
—

 
32,842

 
32,842


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 September 30, 2015
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
29,390,728

 
28,954,280

 
—

 
—

 
29,390,728

Cash and cash equivalents
114,498

 
114,498

 
114,498

 
—

 
—

Investments (available-for-sale and trading)
113,735

 
113,735

 
12,498

 
101,237

 
—

Notes receivable
28,616

 
30,964

 
—

 
28,616

 
—

Restricted cash
886,974

 
886,974

 
886,974

 
—

 
—

Restricted cash – due to customers
100,089

 
100,089

 
100,089

 
—

 
—

Restricted investments
8,297

 
8,297

 
8,297

 
—

 
—

Accrued interest receivable
380,441

 
380,441

 
—

 
380,441

 
—

Derivative instruments
15,741

 
15,741

 
—

 
15,741

 
—

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
28,103,296

 
28,827,603

 
—

 
28,103,296

 
—

Accrued interest payable
31,632

 
31,632

 
—

 
31,632

 
—

Due to customers
100,089

 
100,089

 
100,089

 
—

 
—

Derivative instruments
80,061

 
80,061

 
—

 
80,061

 
—

 
As of December 31, 2014
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
28,954,226

 
28,005,195

 
—

 
—

 
28,954,226

Cash and cash equivalents
130,481

 
130,481

 
130,481

 
—

 
—

Investments (available-for-sale and trading)
149,123

 
149,123

 
4,123

 
145,000

 
—

Notes receivable
28,832

 
30,643

 
—

 
28,832

 
—

Restricted cash
800,164

 
800,164

 
800,164

 
—

 
—

Restricted cash – due to customers
118,488

 
118,488

 
118,488

 
—

 
—

Restricted investments
50,276

 
50,276

 
50,276

 
—

 
—

Accrued interest receivable
351,588

 
351,588

 
—

 
351,588

 
—

Derivative instruments
64,392

 
64,392

 
—

 
64,392

 
—

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
27,809,997

 
28,027,350

 
—

 
27,809,997

 
—

Accrued interest payable
25,904

 
25,904

 
—

 
25,904

 
—

Due to customers
118,488

 
118,488

 
118,488

 
—

 
—

Derivative instruments
32,842

 
32,842

 
—

 
32,842

 
—

Student Loans Receivable (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Jun. 30, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Allowance for loan losses
$ 50,380 
$ 50,024 
$ 48,900 
$ 51,968 
$ 52,467 
$ 55,122 
Student loans receivable
28,954,280 
 
28,005,195 
 
 
 
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Allowance for loan losses
35,945 
 
 
39,470 
 
 
Private education loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Allowance for loan losses
14,435 
 
 
12,498 
 
 
held for investment [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
29,188,203 
 
28,223,908 
 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
183,543 1
 
169,813 1
 
 
 
Student loans receivable
28,954,280 
 
28,005,195 
 
 
 
held for investment [Member] |
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
28,955,379 
 
28,196,430 
 
 
 
Allowance for loan losses
35,945 
 
39,170 
 
 
 
held for investment [Member] |
Private education loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
232,824 
 
27,478 
 
 
 
Allowance for loan losses
14,435 
 
9,730 
 
 
 
held for investment [Member] |
Stafford and Other [Member] |
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
6,375,336 
 
6,030,825 
 
 
 
held for investment [Member] |
Consolidation Loans [Member] |
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
22,580,043 
 
22,165,605 
 
 
 
Non-accretable discount [Member] |
held for investment [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
10,900,000 
 
8,500,000 
 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
$ 35,400 
 
$ 28,800 
 
 
 
Student Loans Receivable and Allowance for Loan Losses Significant Purchases and Obligations (Details) (USD $)
9 Months Ended 9 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Sep. 30, 2015
CommonBond Purchase Commitment [Member]
Private education loans [Member]
Sep. 30, 2015
May 26, 2015 Federally insured student loan securitization trust [Member]
Sep. 30, 2015
August 3, 2015 Federally insured student loan securitization trust [Member]
Sep. 30, 2015
Original Purchase Commitment [Member]
CommonBond Purchase Commitment [Member]
Private education loans [Member]
Sep. 30, 2015
Amended Purchase Commitment [Member]
CommonBond Purchase Commitment [Member]
Private education loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
 
Long-term Purchase Commitment, Period
 
 
18 months 
 
 
 
 
Loans and Leases Receivable, Commitments to Purchase or Sell
 
 
 
 
 
$ 150,000,000 
$ 200,000,000 
Financing Receivable, Significant Purchases
 
 
127,800,000 
 
 
 
 
Student loans receivable, gross
 
 
 
504,200,000 
1,500,000,000 
 
 
Debt and Capital Lease Obligations
28,827,603,000 
28,027,350,000 
 
448,900,000 
1,500,000,000 
 
 
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums
 
 
 
20,700,000 
20,200,000 
 
 
Debt Instrument, Unamortized Premium
 
 
 
$ 2,200,000 
$ 86,700,000 
 
 
Student Loans Receivable and Allowance for Loan Losses Allowance for Loan Losses (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
Allowance for loan losses - balance
$ 50,024 
$ 52,467 
$ 48,900 
$ 55,122 
Provision for loan losses
3,000 
2,000 
7,150 
6,000 
Charge-offs
(3,174)
(4,144)
(10,704)
(12,932)
Purchase (sale) of federally insured and private education loans, net
30 
70 
(200)
320 
Allowance for loan losses - balance
50,380 
51,968 
50,380 
51,968 
Federally insured loans [Member]
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
Provision for loan losses
2,000 
2,000 
6,000 
7,000 
Charge-offs
(2,817)
(3,521)
(9,225)
(11,290)
Allowance for loan losses - balance
35,945 
39,470 
35,945 
39,470 
Private education loans [Member]
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
Provision for loan losses
1,000 
0 
1,150 
(1,000)
Charge-offs
(357)
(623)
(1,479)
(1,642)
Recoveries - private education loans
250 
279 
742 
989 
Transfer from repurchase obligation related to private education loans purchased, net
250 
1,296 
4,492 
2,469 
Allowance for loan losses - balance
$ 14,435 
$ 12,498 
$ 14,435 
$ 12,498 
Student Loans Receivable and Allowance for Loan Losses Repurchase Obligations (Details) (USD $)
3 Months Ended 9 Months Ended
Mar. 31, 2015
Sep. 30, 2015
Dec. 31, 2014
Repurchase Obligation [Line Items]
 
 
 
Student loans receivable
 
$ 28,954,280,000 
$ 28,005,195,000 
Other liabilities
 
170,611,000 
167,881,000 
Private education loans sold subject to repurchase agreement [Member]
 
 
 
Repurchase Obligation [Line Items]
 
 
 
Days delinquent to trigger repurchase range, minimum
 
60 days 
 
Days delinquent to trigger repurchase range, maximum
 
90 days 
 
Student loans receivable
 
53,100,000 
155,300,000 
Other liabilities
 
3,300,000 
11,800,000 
Financing Receivable, Significant Purchases
$ 94,100,000 
 
 
Student Loans Receivable and Allowance for Loan Losses Student Loan Status and Delinquency (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Dec. 31, 2014
Federally insured loans [Member]
 
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
 
Loans in-school/grace/deferment
$ 2,638,639 
$ 3,072,318 
$ 2,805,228 
Loans in forbearance
2,993,844 
3,505,103 
3,288,412 
Student loans receivable, gross
28,955,379 
28,851,599 
28,196,430 
Loans in repayment status:
 
 
 
Loans current
19,681,517 
18,672,178 
18,460,279 
Loans current, percentage
84.40% 
83.80% 
83.50% 
Total loans in repayment
23,322,896 
22,274,178 
22,102,790 
Total loans in repayment, percentage
100.00% 
100.00% 
100.00% 
Private education loans [Member]
 
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
 
Loans in-school/grace/deferment
7,724 
2,958 
905 
Loans in forbearance
16 
0 
0 
Student loans receivable, gross
232,824 
77,623 
27,478 
Loans in repayment status:
 
 
 
Loans current
216,502 
65,560 
18,390 
Loans current, percentage
96.20% 
87.80% 
69.20% 
Total loans in repayment
225,084 
74,665 
26,573 
Total loans in repayment, percentage
100.00% 
100.00% 
100.00% 
Financing Receivables, 31 to 60 Days Past Due [Member] |
Federally insured loans [Member]
 
 
 
Loans in repayment status:
 
 
 
Financing Receivable, Recorded Investment, Past Due
1,021,515 
990,696 
1,043,119 
Financing Receivable, Percent Past Due
4.40% 
4.50% 
4.80% 
Financing Receivables, 31 to 60 Days Past Due [Member] |
Private education loans [Member]
 
 
 
Loans in repayment status:
 
 
 
Financing Receivable, Recorded Investment, Past Due
1,999 
1,340 
1,078 
Financing Receivable, Percent Past Due
0.90% 
1.80% 
4.10% 
Financing Receivables, 61 to 90 Days Past Due [Member] |
Federally insured loans [Member]
 
 
 
Loans in repayment status:
 
 
 
Financing Receivable, Recorded Investment, Past Due
638,037 
569,879 
588,777 
Financing Receivable, Percent Past Due
2.70% 
2.60% 
2.70% 
Financing Receivables, 61 to 90 Days Past Due [Member] |
Private education loans [Member]
 
 
 
Loans in repayment status:
 
 
 
Financing Receivable, Recorded Investment, Past Due
1,206 
1,516 
1,035 
Financing Receivable, Percent Past Due
0.50% 
2.00% 
3.90% 
Financing receivables, 91-120 days past due [Member] |
Federally insured loans [Member]
 
 
 
Loans in repayment status:
 
 
 
Financing Receivable, Recorded Investment, Past Due
465,261 
452,463 
404,905 
Financing Receivable, Percent Past Due
2.00% 
2.00% 
1.80% 
Financing receivables, 121-270 days past due [Member] |
Federally insured loans [Member]
 
 
 
Loans in repayment status:
 
 
 
Financing Receivable, Recorded Investment, Past Due
1,139,864 
1,183,616 
1,204,405 
Financing Receivable, Percent Past Due
4.90% 
5.30% 
5.40% 
Financing receivables, 271 days or greater past due [Member] |
Federally insured loans [Member]
 
 
 
Loans in repayment status:
 
 
 
Financing Receivable, Recorded Investment, Past Due
376,702 
405,346 
401,305 
Financing Receivable, Percent Past Due
1.60% 
1.80% 
1.80% 
Financing Receivables, Equal to Greater than 91 Days Past Due [Member] |
Private education loans [Member]
 
 
 
Loans in repayment status:
 
 
 
Financing Receivable, Recorded Investment, Past Due
$ 5,377 
$ 6,249 
$ 6,070 
Financing Receivable, Percent Past Due
2.40% 
8.40% 
22.80% 
Outstanding Debt Obligations (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Debt Instrument [Line Items]
 
 
Bonds and notes payable
$ 28,827,603 
$ 28,027,350 
Debt Instrument, Unamortized Discount (Premium), Net
445,087 
393,072 
Bonds and notes payable, gross [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
29,272,690 
28,420,422 
Variable-rate bonds and notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
27,508,150 
27,025,100 
Bonds and notes based on indices [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
26,346,635 
25,713,431 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.08% 
0.19% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
6.90% 
6.90% 
Debt Instrument, Maturity Date Range, Start
Aug. 26, 2019 
May 25, 2018 
Debt Instrument, Maturity Date Range, End
Aug. 26, 2052 
Aug. 26, 2052 
Bonds and notes based on auction [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
1,161,515 
1,311,669 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
1.11% 
0.47% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
2.13% 
2.17% 
Debt Instrument, Maturity Date Range, Start
Mar. 22, 2032 
Mar. 22, 2032 
Debt Instrument, Maturity Date Range, End
Nov. 26, 2046 
Nov. 26, 2046 
warehouse facilities [Member] |
FFELP Warehouse Total [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
1,391,877 
1,241,665 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.20% 
0.16% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
0.41% 
0.26% 
Debt Instrument, Maturity Date Range, Start
Dec. 17, 2017 
Jan. 17, 2016 
Debt Instrument, Maturity Date Range, End
Jul. 09, 2018 
Jun. 11, 2017 
warehouse facilities [Member] |
Private Education Loan Warehouse Total [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
170,081 
 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.42% 
   
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
0.42% 
   
Debt Instrument, Maturity Date Range, Start
Dec. 26, 2016 
   
Debt Instrument, Maturity Date Range, End
Dec. 26, 2016 
   
Unsecured Line of Credit [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
70,000 
0 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
1.72% 
0.00% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
1.72% 
0.00% 
Debt Instrument, Maturity Date Range, Start
Jun. 30, 2019 
Jun. 30, 2019 
Debt Instrument, Maturity Date Range, End
Jun. 30, 2019 
Jun. 30, 2019 
Unsecured debt - Junior Subordinated Hybrid Securities [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
57,582 
71,688 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
3.70% 
3.63% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
3.70% 
3.63% 
Debt Instrument, Maturity Date Range, Start
Sep. 15, 2061 
Sep. 15, 2061 
Debt Instrument, Maturity Date Range, End
Sep. 15, 2061 
Sep. 15, 2061 
Other borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
$ 75,000 
$ 81,969 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
1.69% 
1.67% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
1.69% 
5.10% 
Debt Instrument, Maturity Date Range, Start
Oct. 31, 2016 
Nov. 11, 2015 
Debt Instrument, Maturity Date Range, End
Oct. 31, 2016 
Dec. 31, 2018 
Bonds and Notes Payable Outstanding Lines of Credit (Details) (USD $)
9 Months Ended 9 Months Ended 0 Months Ended
Sep. 30, 2015
Unsecured Line of Credit [Member]
Oct. 31, 2014
Unsecured Line of Credit [Member]
Sep. 30, 2015
warehouse facilities [Member]
FFELP Warehouse Total [Member]
Sep. 30, 2015
warehouse facilities [Member]
Private Education Loan Warehouse Total [Member]
Sep. 30, 2015
warehouse facilities [Member]
NHELP-III Warehouse [Member]
FFELP Warehouse Total [Member]
Sep. 30, 2015
warehouse facilities [Member]
NFSLW-I Warehouse [Member]
FFELP Warehouse Total [Member]
Sep. 30, 2015
warehouse facilities [Member]
NHELP-II Warehouse [Member]
FFELP Warehouse Total [Member]
Nov. 5, 2015
Subsequent Event [Member]
Unsecured Line of Credit [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
Maximum financing amount
$ 350,000,000 
$ 350,000,000 
$ 2,125,000,000 
$ 275,000,000 
$ 750,000,000 
$ 875,000,000 1
$ 500,000,000 
 
Amount outstanding
70,000,000 
 
1,391,877,000 
170,100,000 
395,631,000 
549,622,000 1
446,624,000 
 
Amount available
280,000,000 
 
733,123,000 
104,900,000 
354,369,000 
325,378,000 1
53,376,000 
 
Expiration of liquidity provisions
 
 
 
Jun. 24, 2016 
Apr. 29, 2016 
Jul. 08, 2016 1
Dec. 17, 2015 
 
Debt Instrument, Maturity Date
Jun. 30, 2019 
 
 
Dec. 26, 2016 
Apr. 29, 2018 
Jul. 09, 2018 1
Dec. 17, 2017 
Oct. 30, 2020 
Maximum Advance Rates - range minimum
 
 
 
 
92.20% 
92.00% 1
91.00% 
 
Maximum advance rates - range maximum
 
 
 
88.00% 
95.00% 
98.00% 1
97.00% 
 
Minimum Advance Rates - range minimum
 
 
 
64.00% 
92.20% 
84.00% 1
91.00% 
 
Minimum advance rates - range maximum
 
 
 
99.00% 
95.00% 
90.00% 1
97.00% 
 
Advanced as equity support
 
 
73,089,000 
23,700,000 
22,427,000 
26,124,000 1
24,538,000 
 
expected decrease in financing amount
 
 
 
 
 
125,000,000 
 
 
Date of expected decrease in financing amount
 
 
 
 
 
Mar. 31, 2016 
 
 
Changes to debt covenants [Abstract]
 
 
 
 
 
 
 
 
Per fiscal year limit on acquisitions of businesses not in a similar line of business
 
 
 
 
 
 
 
75,000,000 
Percent of consolidated net worth for permitted investments
 
 
 
 
 
 
 
20.00% 
Cap related to the volume of private education loans that the Company may hold
900,000,000 
 
 
 
 
 
 
500,000,000 
Base level of minimum consolidated net worth
 
 
 
 
 
 
 
$ 1,350,000,000 
Percent of consolidated net income added to base level of consolidated net worth
 
 
 
 
 
 
 
50.00% 
Percent of net cash proceeds from the issuance of common stock added to base level of consolidated net worth
 
 
 
 
 
 
 
100.00% 
Bonds and Notes Payable Asset-backed Securitizations (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Debt Instrument [Line Items]
 
Debt Instrument, Variable Rate Basis
1-month LIBOR 
Asset-backed securitization issuance, Face Amount
$ 1,689,746 
2015-1 Securitization [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
Feb. 27, 2015 
Asset-backed securitization issuance, Face Amount
566,346 
2015-2 Securitization [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
Mar. 26, 2015 
Asset-backed securitization issuance, Face Amount
722,000 
2015-2 Securitization [Member] |
2015-2 Securitization Class A-1 [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
Mar. 26, 2015 
Asset-backed securitization issuance, Face Amount
122,500 
2015-2 Securitization [Member] |
2015-2 Securitization Class A-2 [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
Mar. 26, 2015 
Asset-backed securitization issuance, Face Amount
584,500 
2015-3 Securitization [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
May 21, 2015 
Asset-backed securitization issuance, Face Amount
401,400 
2015-3 Securitization [Member] |
2015-3 Securitization Class A-1 [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
May 21, 2015 
Asset-backed securitization issuance, Face Amount
82,500 
2015-3 Securitization [Member] |
2015-3 Securitization Class A-2 [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
May 21, 2015 
Asset-backed securitization issuance, Face Amount
270,000 
2015-3 Securitization [Member] |
2015-3 Securitization Class A-3 [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
May 21, 2015 
Asset-backed securitization issuance, Face Amount
41,400 
Class A [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization issuance, Unamortized Discount
(1,475)
Asset-backed securitization issuance, Face Amount
1,654,132 
Long-term Debt, Fair Value
1,652,657 
Class A [Member] |
2015-1 Securitization [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.59% 
Asset-backed securitization issuance, Unamortized Discount
0 
Asset-backed securitization issuance, Face Amount
553,232 
Long-term Debt, Fair Value
553,232 
Debt Instrument, Maturity Date Range, End
Apr. 25, 2041 
Class A [Member] |
2015-2 Securitization [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization issuance, Unamortized Discount
0 
Asset-backed securitization issuance, Face Amount
707,000 
Long-term Debt, Fair Value
707,000 
Class A [Member] |
2015-2 Securitization [Member] |
2015-2 Securitization Class A-1 [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.27% 
Asset-backed securitization issuance, Unamortized Discount
0 
Asset-backed securitization issuance, Face Amount
122,500 
Long-term Debt, Fair Value
122,500 
Debt Instrument, Maturity Date Range, End
Mar. 25, 2020 
Class A [Member] |
2015-2 Securitization [Member] |
2015-2 Securitization Class A-2 [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.60% 
Asset-backed securitization issuance, Unamortized Discount
0 
Asset-backed securitization issuance, Face Amount
584,500 
Long-term Debt, Fair Value
584,500 
Debt Instrument, Maturity Date Range, End
Sep. 25, 2042 
Class A [Member] |
2015-3 Securitization [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization issuance, Unamortized Discount
(1,475)
Asset-backed securitization issuance, Face Amount
393,900 
Long-term Debt, Fair Value
392,425 
Class A [Member] |
2015-3 Securitization [Member] |
2015-3 Securitization Class A-1 [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.30% 
Asset-backed securitization issuance, Unamortized Discount
0 
Asset-backed securitization issuance, Face Amount
82,500 
Long-term Debt, Fair Value
82,500 
Debt Instrument, Maturity Date Range, End
Jan. 27, 2025 
Class A [Member] |
2015-3 Securitization [Member] |
2015-3 Securitization Class A-2 [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.60% 
Asset-backed securitization issuance, Unamortized Discount
(380)
Asset-backed securitization issuance, Face Amount
270,000 
Long-term Debt, Fair Value
269,620 
Debt Instrument, Maturity Date Range, End
Feb. 26, 2046 
Class A [Member] |
2015-3 Securitization [Member] |
2015-3 Securitization Class A-3 [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.90% 
Asset-backed securitization issuance, Unamortized Discount
(1,095)
Asset-backed securitization issuance, Face Amount
41,400 
Long-term Debt, Fair Value
40,305 
Debt Instrument, Maturity Date Range, End
Jun. 25, 2049 
Class B [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization issuance, Unamortized Discount
(3,918)
Asset-backed securitization issuance, Face Amount
35,614 
Long-term Debt, Fair Value
31,696 
Class B [Member] |
2015-1 Securitization [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
1.50% 
Asset-backed securitization issuance, Unamortized Discount
(1,157)
Asset-backed securitization issuance, Face Amount
13,114 
Long-term Debt, Fair Value
11,957 
Debt Instrument, Maturity Date Range, End
Jun. 25, 2046 
Class B [Member] |
2015-2 Securitization [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
1.50% 
Asset-backed securitization issuance, Unamortized Discount
(1,793)
Asset-backed securitization issuance, Face Amount
15,000 
Long-term Debt, Fair Value
13,207 
Debt Instrument, Maturity Date Range, End
May 25, 2049 
Class B [Member] |
2015-3 Securitization [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
1.50% 
Asset-backed securitization issuance, Unamortized Discount
(968)
Asset-backed securitization issuance, Face Amount
7,500 
Long-term Debt, Fair Value
$ 6,532 
Debt Instrument, Maturity Date Range, End
Jun. 27, 2050 
Bonds and Notes Payable Debt Repurchases (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Debt Instrument [Line Items]
 
 
 
 
Par value
$ 1,689,746 
 
$ 1,689,746 
 
Purchase price
9,053 
2,500 
41,270 
3,943 
Gain from debt repurchases
597 
0 
4,636 
57 
Extinguishment of Debt, Amount
9,650 
2,500 
45,906 
4,000 
Unsecured Debt [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Purchase price
0 
0 
11,108 
0 
Gain from debt repurchases
0 
0 
2,998 
0 
Extinguishment of Debt, Amount
0 
0 
14,106 
0 
Asset-backed Securities [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Purchase price
9,053 
2,500 
30,162 
3,943 
Gain from debt repurchases
597 
0 
1,638 
57 
Extinguishment of Debt, Amount
$ 9,650 
$ 2,500 
$ 31,800 
$ 4,000 
Derivative Financial Instruments Outstanding (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Dec. 31, 2014
Sep. 30, 2015
1:3 basis swaps [Member]
Dec. 31, 2014
1:3 basis swaps [Member]
Sep. 30, 2015
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2016 [Member]
Dec. 31, 2014
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2016 [Member]
Sep. 30, 2015
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2021 [Member]
Dec. 31, 2014
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2021 [Member]
Sep. 30, 2015
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2022 [Member]
Dec. 31, 2014
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2022 [Member]
Sep. 30, 2015
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2023 [Member]
Dec. 31, 2014
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2023 [Member]
Sep. 30, 2015
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2024 [Member]
Dec. 31, 2014
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2024 [Member]
Sep. 30, 2015
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2026 [Member]
Dec. 31, 2014
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2026 [Member]
Sep. 30, 2015
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2028 [Member]
Dec. 31, 2014
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2028 [Member]
Sep. 30, 2015
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2036 [Member]
Dec. 31, 2014
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2036 [Member]
Sep. 30, 2015
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2039 [Member]
Dec. 31, 2014
1:3 basis swaps [Member]
One Month to Three Month Basis Swap Outstanding - Maturity 2039 [Member]
Sep. 30, 2015
Interest Rate Swap [Member]
Interest rate swaps - floor income hedges [Member]
Dec. 31, 2014
Interest Rate Swap [Member]
Interest rate swaps - floor income hedges [Member]
Sep. 30, 2015
Interest Rate Swap [Member]
Interest rate swaps - floor income hedges [Member]
Fixed Rate Floor Income Interest Rate Swap - Maturity 2015 [Member]
Dec. 31, 2014
Interest Rate Swap [Member]
Interest rate swaps - floor income hedges [Member]
Fixed Rate Floor Income Interest Rate Swap - Maturity 2015 [Member]
Sep. 30, 2015
Interest Rate Swap [Member]
Interest rate swaps - floor income hedges [Member]
Fixed Rate Floor Income Interest Rate Swap - Maturity 2016 [Member]
Dec. 31, 2014
Interest Rate Swap [Member]
Interest rate swaps - floor income hedges [Member]
Fixed Rate Floor Income Interest Rate Swap - Maturity 2016 [Member]
Sep. 30, 2015
Interest Rate Swap [Member]
Interest rate swaps - floor income hedges [Member]
Fixed Rate Floor Income Interest Rate Swap - Maturity 2017 [Member]
Dec. 31, 2014
Interest Rate Swap [Member]
Interest rate swaps - floor income hedges [Member]
Fixed Rate Floor Income Interest Rate Swap - Maturity 2017 [Member]
Sep. 30, 2015
Interest Rate Swap [Member]
Interest rate swaps - floor income hedges [Member]
Fixed Rate Floor Income Interest Rate Swap - Maturity 2018 [Member]
Dec. 31, 2014
Interest Rate Swap [Member]
Interest rate swaps - floor income hedges [Member]
Fixed Rate Floor Income Interest Rate Swap - Maturity 2018 [Member]
Sep. 30, 2015
Interest Rate Swap [Member]
Interest rate swaps - floor income hedges [Member]
Fixed Rate Floor Income Interest Rate Swap - Maturity 2025 [Member]
Dec. 31, 2014
Interest Rate Swap [Member]
Interest rate swaps - floor income hedges [Member]
Fixed Rate Floor Income Interest Rate Swap - Maturity 2025 [Member]
Sep. 30, 2015
Interest Rate Swap [Member]
unsecured debt hedges [Member]
Maturity 2036 [Member]
Dec. 31, 2014
Interest Rate Swap [Member]
unsecured debt hedges [Member]
Maturity 2036 [Member]
Sep. 30, 2015
Interest rate swap option - floor income hedge [Member]
Dec. 31, 2014
Interest rate swap option - floor income hedge [Member]
Sep. 30, 2015
Interest Rate Cap [Member]
Sep. 30, 2015
Interest Rate Cap [Member]
Interest Rate Cap 1 [Member]
Sep. 30, 2015
Interest Rate Cap [Member]
Interest Rate Cap 2 [Member]
Sep. 30, 2015
Private Education Loan Warehouse Total [Member]
Interest Rate Cap [Member]
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Fixed Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.66% 
7.66% 
 
 
 
 
 
 
Payment to enter into derivative instruments
$ 2,936 
$ 9,087 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 9,100 
$ 2,900 
 
 
 
Derivative, Type of Interest Rate Paid on Swap
 
 
 
one-month LIBOR 
one-month LIBOR 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average basis spread on variable rate paid on swap
 
 
 
0.09% 
0.035% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
7,200,000 
7,800,000 
5,500,000 
0 
0 
250,000 
450,000 
1,900,000 
1,050,000 
3,650,000 
0 
250,000 
200,000 
800,000 
0 
100,000 
0 
700,000 
0 
150,000 
4,550,000 
3,100,000 
0 
1,100,000 
1,000,000 
750,000 
2,100,000 
1,250,000 
1,350,000 
0 
100,000 
0 
25,000 
25,000 
250,000 
 
275,000 
125,000 
150,000 
 
Derivative, Description of Terms
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
one-month LIBOR 
one-month LIBOR 
 
Derivative, Cap Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.50% 
4.99% 
 
Derivative, Average Fixed Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.93% 1
0.87% 1
0.00% 1
0.89% 1
0.76% 1
0.85% 1
0.84% 1
0.86% 1
1.11% 1
0.00% 1
2.32% 1
0.00% 1
4.28% 1
4.28% 1
 
 
 
 
 
 
Bonds and notes payable
$ 28,827,603 
 
$ 28,027,350 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 275,000 
Derivative, Type of Interest Rate Received on Swap
 
 
 
3-month LIBOR 
3-month LIBOR 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3-month LIBOR 
3-month LIBOR 
 
 
 
 
 
 
 
 
 
 
3-month LIBOR 
3-month LIBOR 
1-month LIBOR 
 
 
 
 
 
Derivative, Swaption Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.30% 
 
 
 
 
 
Derivative Financial Instruments Cross-currency Interest Rate Swaps (Details)
In Thousands, unless otherwise specified
9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2015
USD ($)
Sep. 30, 2014
USD ($)
Dec. 31, 2014
USD ($)
Sep. 30, 2015
Currency Swap [Member]
USD ($)
Sep. 30, 2014
Currency Swap [Member]
USD ($)
Sep. 30, 2015
Currency Swap [Member]
USD ($)
Sep. 30, 2014
Currency Swap [Member]
USD ($)
Sep. 30, 2015
Currency Swap [Member]
EUR (€)
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
 
Bonds and notes payable
$ 28,827,603 
 
$ 28,027,350 
 
 
 
 
€ 352,700 
Derivative, Notional Amount
 
 
 
450,000 
 
450,000 
 
352,700 
Re-measurement of Euro Notes
 
 
 
(1,058)
37,418 
32,480 
39,216 
 
Change in fair value of cross currency interest rate swaps
(43,179)
(431)
 
666 
(37,224)
(35,207)
(40,261)
 
Total impact to statements of income - income (expense)
 
 
 
$ (392)1
$ 194 1
$ (2,727)1
$ (1,045)1
 
Derivative Financial Instruments Fair Value of Derivative Instruments (Details) (USD $)
9 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
$ 15,741,000 
$ 64,392,000 
Fair value of derivative instruments, liability
80,061,000 
32,842,000 
1:3 basis swaps [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
8,477,000 
53,549,000 
Fair value of derivative instruments, liability
44,000 
0 
notional amount of terminated derivatives
6,100,000,000 
 
Proceeds to terminate and or amend derivative instruments
55,600,000 
 
Interest rate swaps - floor income hedges [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
0 
5,165,000 
Fair value of derivative instruments, liability
16,142,000 
5,034,000 
Interest rate swap option - floor income hedge [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
3,943,000 
5,678,000 
Fair value of derivative instruments, liability
0 
0 
Interest rate swaps - hybrid debt hedges [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
0 
0 
Fair value of derivative instruments, liability
8,212,000 
7,353,000 
Interest Rate Swap - other [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
1,525,000 
0 
Fair value of derivative instruments, liability
0 
0 
Interest Rate Cap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
1,796,000 
0 
Fair value of derivative instruments, liability
0 
0 
Cross-currency interest rate swaps [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
0 
0 
Fair value of derivative instruments, liability
$ 55,663,000 
$ 20,455,000 
Derivative Financial Instruments Gross/Net (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
$ 15,741 
$ 64,392 
Fair value of derivative instruments, liability
80,061 
32,842 
Derivative Financial Instruments, Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
15,741 
64,392 
Derivatives subject to enforceable master netting arrangement, asset
(8,620)
(12,387)
Cash collateral pledged
0 
0 
Fair value of derivative instruments, asset, net
7,121 
52,005 
Derivative Financial Instruments, Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, liability
80,061 
32,842 
Derivatives subject to enforceable master netting arrangement, liability
8,620 
12,387 
Cash collateral pledged
(37,274)
 
Cash collateral received
 
1,454 
Fair value of derivative instruments, liability, net
$ 34,167 
$ 21,909 
Derivative Financial Instruments Income Statement Effect of Derivative Instruments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
$ (5,878)
$ (4,834)
$ (16,535)
$ (17,277)
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(5,878)
(4,834)
(16,535)
(17,277)
Change in fair value
(23,722)
(8,381)
(43,179)
(431)
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
(1,058)
37,418 
32,480 
39,216 
Derivative market value and foreign currency adjustments and derivative settlements - income (expense)
(30,658)
24,203 
(27,234)
21,508 
Other Contract [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Change in fair value
1,525 
0 
1,525 
0 
1:3 basis swaps [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
179 
808 
568 
2,547 
Change in fair value
(1,886)
19,455 
10,513 
32,475 
Interest rate swaps - floor income hedges [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(5,456)
(5,421)
(15,490)
(19,345)
Change in fair value
(18,935)
10,628 
(16,273)
11,173 
Interest rate swap option - floor income hedges [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Change in fair value
(2,205)
(847)
(1,736)
(847)
Interest rate swaps - hybrid debt hedges [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(255)
(259)
(760)
(767)
Change in fair value
(1,948)
(393)
(861)
(2,971)
Interest Rate Cap [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Change in fair value
(939)
0 
(1,140)
0 
Cross-currency interest rate swaps [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(346)
38 
(853)
288 
Change in fair value
$ 666 
$ (37,224)
$ (35,207)
$ (40,261)
Investments and Notes Receivable Summary (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Investment Holdings [Line Items]
 
 
Investments and notes receivable
$ 236,010 
$ 235,709 
Investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
113,735 
149,123 
Investments [Member] |
Available-for-sale investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
93,173 
133,142 
Gross unrealized gains
5,376 
8,420 
Gross unrealized losses
(812)1
(269)
Investments, Fair Value Disclosure
97,737 
141,293 
Investments [Member] |
Available-for-sale investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
92,327 2
131,589 2
Gross unrealized gains
3,797 2
6,204 2
Gross unrealized losses
(712)1 2
(236)2
Investments, Fair Value Disclosure
95,412 2
137,557 2
Investments [Member] |
Available-for-sale investments [Member] |
Equity securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
846 
1,553 
Gross unrealized gains
1,579 
2,216 
Gross unrealized losses
(100)1
(33)
Investments, Fair Value Disclosure
2,325 
3,736 
Investments [Member] |
Trading investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
15,998 
7,830 
Investments [Member] |
Trading investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
6,146 
7,830 
Investments [Member] |
Trading investments [Member] |
Equity securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
9,852 
0 
Other Investments and Notes Receivable (not measured at fair value) [Member] |
Investments accounted for under the cost and equity methods [Member]
 
 
Investment Holdings [Line Items]
 
 
Other Investments
80,372 
36,991 
Other Investments and Notes Receivable (not measured at fair value) [Member] |
Notes Receivable [Member]
 
 
Investment Holdings [Line Items]
 
 
Other Investments
30,964 
30,643 
Other Investments and Notes Receivable (not measured at fair value) [Member] |
Other Investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Other Investments
$ 10,939 
$ 18,952 
Intangible Assets Intangible Assets (Details) (USD $)
9 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
Weighted average remaining useful life (months)
184 months 
 
Finite-Lived Intangible Assets, Net
$ 35,386,000 
$ 42,582,000 
Customer Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Accumulated Amortization
21,736,000 
17,361,000 
Weighted average remaining useful life (months)
217 months 
 
Finite-Lived Intangible Assets, Net
22,954,000 
27,330,000 
Trade Names [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Accumulated Amortization
664,000 
272,000 
Weighted average remaining useful life (months)
224 months 
 
Finite-Lived Intangible Assets, Net
5,758,000 
6,150,000 
Computer Software, Intangible Asset [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Accumulated Amortization
3,624,000 
1,896,000 
Weighted average remaining useful life (months)
35 months 
 
Finite-Lived Intangible Assets, Net
5,242,000 
6,969,000 
Media Content [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Accumulated Amortization
675,000 
0 
Weighted average remaining useful life (months)
15 months 
 
Finite-Lived Intangible Assets, Net
1,125,000 
1,800,000 
Covenants not to compete [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Accumulated Amortization
47,000 
21,000 
Weighted average remaining useful life (months)
104 months 
 
Finite-Lived Intangible Assets, Net
$ 307,000 
$ 333,000 
Intangible Assets Amortization Expense (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Dec. 31, 2014
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
 
 
 
 
 
Amortization of Intangible Assets
$ 2,400,000 
$ 2,000,000 
$ 7,200,000 
$ 4,400,000 
 
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year
2,399,000 
 
2,399,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Two
6,249,000 
 
6,249,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Three
3,752,000 
 
3,752,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Four
3,533,000 
 
3,533,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Five
2,861,000 
 
2,861,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, after Year Five
16,592,000 
 
16,592,000 
 
 
Amortization of Intangible Assets
$ 35,386,000 
 
$ 35,386,000 
 
$ 42,582,000 
Intangible Assets Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Goodwill [Line Items]
 
Goodwill
$ 126,200 
Goodwill, Acquired During Period
0 
Goodwill
126,200 
Student Loan and Guaranty Servicing [Member]
 
Goodwill [Line Items]
 
Goodwill
8,596 
Goodwill, Acquired During Period
0 
Goodwill
8,596 
Tuition Payment Processing and Campus Commerce [Member]
 
Goodwill [Line Items]
 
Goodwill
67,168 
Goodwill, Acquired During Period
0 
Goodwill
67,168 
Asset Generation and Management [Member]
 
Goodwill [Line Items]
 
Goodwill
41,883 
Goodwill, Acquired During Period
0 
Goodwill
41,883 
Corporate and Other Activities [Member]
 
Goodwill [Line Items]
 
Goodwill
8,553 
Goodwill, Acquired During Period
0 
Goodwill
$ 8,553 
Earnings per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
0 
0 
0 
0 
Net income attributable to Nelnet, Inc.
$ 48,955 
$ 85,219 
$ 184,629 
$ 233,999 
Weighted average common shares outstanding - basic and diluted
45,047,777 
46,432,680 
45,763,443 
46,496,309 
Earnings per share - basic and diluted
$ 1.09 
$ 1.84 
$ 4.03 
$ 5.03 
Common shareholders [Member]
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income attributable to Nelnet, Inc.
48,436 
84,330 
182,664 
231,725 
Weighted average common shares outstanding - basic and diluted
44,570,519 
45,948,255 
45,276,376 
46,044,429 
Earnings per share - basic and diluted
$ 1.09 
$ 1.84 
$ 4.03 
$ 5.03 
Unvested restricted stock shareholders [Member]
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income attributable to Nelnet, Inc.
$ 519 
$ 889 
$ 1,965 
$ 2,274 
Weighted average common shares outstanding - basic and diluted
477,258 
484,425 
487,067 
451,880 
Earnings per share - basic and diluted
$ 1.09 
$ 1.84 
$ 4.03 
$ 5.03 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
$ 189,157 
$ 189,424 
$ 541,028 
$ 525,247 
Interest expense
77,164 
71,937 
221,344 
201,176 
Net interest income
111,993 
117,487 
319,684 
324,071 
Less provision for loan losses
3,000 
2,000 
7,150 
6,000 
Net interest income after provision for loan losses
108,993 
115,487 
312,534 
318,071 
Loan and guaranty servicing revenue
61,520 
52,659 
183,164 
183,876 
Intersegment servicing revenue
0 
0 
0 
0 
Tuition payment processing, school information, and campus commerce revenue
30,439 
26,399 
92,805 
73,468 
Enrollment services revenue
19,500 
22,936 
54,524 
65,092 
Other income
6,523 
7,650 
20,945 
41,096 
Gain on sale of loans and debt repurchases
597 
0 
4,987 
57 
Derivative market value and foreign currency adjustments, net
(24,780)
29,037 
(10,699)
38,785 
Derivative settlements, net
(5,878)
(4,834)
(16,535)
(17,277)
Total other income
87,921 
133,847 
329,191 
385,097 
Operating expenses:
 
 
 
 
Salaries and benefits
63,215 
61,098 
183,052 
167,470 
Cost to provide enrollment services
12,534 
14,178 
35,398 
41,964 
Loan servicing fees
7,793 
7,077 
22,829 
19,798 
Depreciation and amortization
6,977 
5,493 
19,140 
15,490 
Other
30,419 
29,599 
91,575 
92,882 
Intersegment expenses, net
0 
0 
0 
0 
Total operating expenses
120,938 
117,445 
351,994 
337,604 
Income (loss) before income taxes and corporate overhead allocation
75,976 
131,889 
289,731 
365,564 
Corporate overhead allocation
0 
0 
0 
0 
Income before income taxes
75,976 
131,889 
289,731 
365,564 
Income tax (expense) benefit
(26,999)
(46,513)
(104,985)
(130,202)
Net income
48,977 
85,376 
184,746 
235,362 
Net income attributable to noncontrolling interest
22 
157 
117 
1,363 
Net income attributable to Nelnet, Inc.
48,955 
85,219 
184,629 
233,999 
Student Loan and Guaranty Servicing [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
14 
5 
34 
25 
Interest expense
0 
0 
0 
0 
Net interest income
14 
5 
34 
25 
Less provision for loan losses
0 
0 
0 
0 
Net interest income after provision for loan losses
14 
5 
34 
25 
Loan and guaranty servicing revenue
61,900 
52,659 
183,544 
183,876 
Intersegment servicing revenue
12,027 
13,432 
37,121 
41,453 
Tuition payment processing, school information, and campus commerce revenue
0 
0 
0 
0 
Enrollment services revenue
0 
0 
0 
0 
Other income
0 
0 
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
0 
0 
Derivative settlements, net
0 
0 
0 
0 
Total other income
73,927 
66,091 
220,665 
225,329 
Operating expenses:
 
 
 
 
Salaries and benefits
34,525 
33,627 
99,813 
93,107 
Cost to provide enrollment services
0 
0 
0 
0 
Loan servicing fees
0 
0 
0 
0 
Depreciation and amortization
484 
441 
1,457 
1,298 
Other
14,602 
12,643 
44,578 
45,269 
Intersegment expenses, net
10,886 
8,843 
32,152 
27,362 
Total operating expenses
60,497 
55,554 
178,000 
167,036 
Income (loss) before income taxes and corporate overhead allocation
13,444 
10,542 
42,699 
58,318 
Corporate overhead allocation
(2,351)
(2,567)
(6,798)
(6,487)
Income before income taxes
11,093 
7,975 
35,901 
51,831 
Income tax (expense) benefit
(4,215)
(3,030)
(13,643)
(19,695)
Net income
6,878 
4,945 
22,258 
32,136 
Net income attributable to noncontrolling interest
(5)
0 
(5)
0 
Net income attributable to Nelnet, Inc.
6,883 
4,945 
22,263 
32,136 
Tuition Payment Processing and Campus Commerce [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
0 
2 
3 
5 
Interest expense
0 
0 
0 
0 
Net interest income
0 
2 
3 
5 
Less provision for loan losses
0 
0 
0 
0 
Net interest income after provision for loan losses
0 
2 
3 
5 
Loan and guaranty servicing revenue
0 
0 
0 
0 
Intersegment servicing revenue
0 
0 
0 
0 
Tuition payment processing, school information, and campus commerce revenue
30,439 
26,399 
92,805 
73,468 
Enrollment services revenue
0 
0 
0 
0 
Other income
0 
0 
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
0 
0 
Derivative settlements, net
0 
0 
0 
0 
Total other income
30,439 
26,399 
92,805 
73,468 
Operating expenses:
 
 
 
 
Salaries and benefits
13,983 
13,288 
40,887 
34,427 
Cost to provide enrollment services
0 
0 
0 
0 
Loan servicing fees
0 
0 
0 
0 
Depreciation and amortization
2,202 
2,396 
6,592 
5,669 
Other
3,579 
3,312 
11,493 
8,915 
Intersegment expenses, net
2,872 
1,481 
8,271 
4,305 
Total operating expenses
22,636 
20,477 
67,243 
53,316 
Income (loss) before income taxes and corporate overhead allocation
7,803 
5,924 
25,565 
20,157 
Corporate overhead allocation
(941)
(856)
(2,721)
(2,163)
Income before income taxes
6,862 
5,068 
22,844 
17,994 
Income tax (expense) benefit
(2,606)
(1,926)
(8,680)
(6,837)
Net income
4,256 
3,142 
14,164 
11,157 
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income attributable to Nelnet, Inc.
4,256 
3,142 
14,164 
11,157 
Asset Generation and Management [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
188,197 
187,949 
536,899 
520,514 
Interest expense
76,040 
71,037 
218,021 
198,449 
Net interest income
112,157 
116,912 
318,878 
322,065 
Less provision for loan losses
3,000 
2,000 
7,150 
6,000 
Net interest income after provision for loan losses
109,157 
114,912 
311,728 
316,065 
Loan and guaranty servicing revenue
0 
0 
0 
0 
Intersegment servicing revenue
0 
0 
0 
0 
Tuition payment processing, school information, and campus commerce revenue
0 
0 
0 
0 
Enrollment services revenue
0 
0 
0 
0 
Other income
3,312 
4,294 
11,838 
12,954 
Gain on sale of loans and debt repurchases
608 
0 
2,000 
57 
Derivative market value and foreign currency adjustments, net
(24,357)
29,430 
(11,363)
41,755 
Derivative settlements, net
(5,623)
(4,575)
(15,775)
(16,510)
Total other income
(26,060)
29,149 
(13,300)
38,256 
Operating expenses:
 
 
 
 
Salaries and benefits
558 
565 
1,623 
1,744 
Cost to provide enrollment services
0 
0 
0 
0 
Loan servicing fees
7,793 
7,077 
22,829 
19,798 
Depreciation and amortization
0 
0 
0 
0 
Other
1,421 
1,559 
3,828 
4,829 
Intersegment expenses, net
12,578 
13,611 
38,016 
41,950 
Total operating expenses
22,350 
22,812 
66,296 
68,321 
Income (loss) before income taxes and corporate overhead allocation
60,747 
121,249 
232,132 
286,000 
Corporate overhead allocation
(1,176)
(1,026)
(3,401)
(3,604)
Income before income taxes
59,571 
120,223 
228,731 
282,396 
Income tax (expense) benefit
(22,639)
(45,684)
(86,919)
(107,309)
Net income
36,932 
74,539 
141,812 
175,087 
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income attributable to Nelnet, Inc.
36,932 
74,539 
141,812 
175,087 
Corporate and Other Activities [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
1,385 
1,814 
5,352 
6,508 
Interest expense
1,563 
1,246 
4,583 
4,532 
Net interest income
(178)
568 
769 
1,976 
Less provision for loan losses
0 
0 
0 
0 
Net interest income after provision for loan losses
(178)
568 
769 
1,976 
Loan and guaranty servicing revenue
0 
0 
0 
0 
Intersegment servicing revenue
0 
0 
0 
0 
Tuition payment processing, school information, and campus commerce revenue
0 
0 
0 
0 
Enrollment services revenue
19,500 
22,936 
54,524 
65,092 
Other income
3,211 
3,356 
9,107 
28,142 
Gain on sale of loans and debt repurchases
(11)
0 
2,987 
0 
Derivative market value and foreign currency adjustments, net
(423)
(393)
664 
(2,970)
Derivative settlements, net
(255)
(259)
(760)
(767)
Total other income
22,022 
25,640 
66,522 
89,497 
Operating expenses:
 
 
 
 
Salaries and benefits
14,149 
13,618 
40,729 
38,192 
Cost to provide enrollment services
12,534 
14,178 
35,398 
41,964 
Loan servicing fees
0 
0 
0 
0 
Depreciation and amortization
4,291 
2,656 
11,091 
8,523 
Other
10,817 
12,085 
31,676 
33,869 
Intersegment expenses, net
(13,929)
(10,503)
(40,938)
(32,164)
Total operating expenses
27,862 
32,034 
77,956 
90,384 
Income (loss) before income taxes and corporate overhead allocation
(6,018)
(5,826)
(10,665)
1,089 
Corporate overhead allocation
4,468 
4,449 
12,920 
12,254 
Income before income taxes
(1,550)
(1,377)
2,255 
13,343 
Income tax (expense) benefit
2,461 
4,127 
4,257 
3,639 
Net income
911 
2,750 
6,512 
16,982 
Net income attributable to noncontrolling interest
27 
157 
122 
1,363 
Net income attributable to Nelnet, Inc.
884 
2,593 
6,390 
15,619 
Eliminations [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
(439)
(346)
(1,260)
(1,805)
Interest expense
(439)
(346)
(1,260)
(1,805)
Net interest income
0 
0 
0 
0 
Less provision for loan losses
0 
0 
0 
0 
Net interest income after provision for loan losses
0 
0 
0 
0 
Loan and guaranty servicing revenue
(380)
0 
(380)
0 
Intersegment servicing revenue
(12,027)
(13,432)
(37,121)
(41,453)
Tuition payment processing, school information, and campus commerce revenue
0 
0 
0 
0 
Enrollment services revenue
0 
0 
0 
0 
Other income
0 
0 
0 
0 
Gain on sale of loans and debt repurchases
0 
0 
0 
0 
Derivative market value and foreign currency adjustments, net
0 
0 
0 
0 
Derivative settlements, net
0 
0 
0 
0 
Total other income
(12,407)
(13,432)
(37,501)
(41,453)
Operating expenses:
 
 
 
 
Salaries and benefits
0 
0 
0 
0 
Cost to provide enrollment services
0 
0 
0 
0 
Loan servicing fees
0 
0 
0 
0 
Depreciation and amortization
0 
0 
0 
0 
Other
0 
0 
0 
0 
Intersegment expenses, net
(12,407)
(13,432)
(37,501)
(41,453)
Total operating expenses
(12,407)
(13,432)
(37,501)
(41,453)
Income (loss) before income taxes and corporate overhead allocation
0 
0 
0 
0 
Corporate overhead allocation
0 
0 
0 
0 
Income before income taxes
0 
0 
0 
0 
Income tax (expense) benefit
0 
0 
0 
0 
Net income
0 
0 
0 
0 
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income attributable to Nelnet, Inc.
$ 0 
$ 0 
$ 0 
$ 0 
Major Customer (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Concentration Risk [Line Items]
 
 
 
 
Concentration Risk, Customer
Department of Education 
Department of Education 
Department of Education 
Department of Education 
Concentration Risk Dollar Value [Member]
 
 
 
 
Concentration Risk [Line Items]
 
 
 
 
Loan and guaranty servicing revenue
$ 33.2 
$ 31.2 
$ 99.3 
$ 92.1 
Assets and Liabilities that are Measured at Fair Value (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
$ 113,735 
$ 149,123 
Fair value of derivative instruments
15,741 
64,392 
Total assets
129,476 
213,515 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
80,061 
32,842 
Total liabilities
80,061 
32,842 
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
101,237 
145,000 
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
12,177 
3,736 
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
321 
387 
Level 1 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
12,498 
4,123 
Fair value of derivative instruments
0 
0 
Total assets
12,498 
4,123 
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, Fair Value Disclosure
0 
0 
Level 1 [Member] |
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
12,177 
3,736 
Level 1 [Member] |
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
321 
387 
Level 2 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
101,237 
145,000 
Fair value of derivative instruments
15,741 
64,392 
Total assets
116,978 
209,392 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
80,061 
32,842 
Total liabilities
80,061 
32,842 
Level 2 [Member] |
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
101,237 
145,000 
Level 2 [Member] |
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
0 
0 
Level 2 [Member] |
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
$ 0 
$ 0 
Fair Value of Financial Instruments (Details) (USD $)
Sep. 30, 2015
Dec. 31, 2014
Sep. 30, 2014
Dec. 31, 2013
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
$ 28,954,280,000 
$ 28,005,195,000 
 
 
Cash and cash equivalents
114,498,000 
130,481,000 
74,579,000 
63,267,000 
Investments (available-for-sale and trading)
236,010,000 
235,709,000 
 
 
Restricted cash - due to customers
100,089,000 
118,488,000 
 
 
Accrued interest receivable
380,441,000 
351,588,000 
 
 
Derivative instruments
15,741,000 
64,392,000 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
28,827,603,000 
28,027,350,000 
 
 
Accrued interest payable
31,632,000 
25,904,000 
 
 
Due to customers
100,089,000 
118,488,000 
 
 
Derivative instruments
80,061,000 
32,842,000 
 
 
Fair value [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
29,390,728,000 
28,954,226,000 
 
 
Cash and cash equivalents
114,498,000 
130,481,000 
 
 
Investments (available-for-sale and trading)
113,735,000 
149,123,000 
 
 
Notes Receivable
28,616,000 
28,832,000 
 
 
Restricted cash
886,974,000 
800,164,000 
 
 
Restricted cash - due to customers
100,089,000 
118,488,000 
 
 
Restricted investments
8,297,000 
50,276,000 
 
 
Accrued interest receivable
380,441,000 
351,588,000 
 
 
Derivative instruments
15,741,000 
64,392,000 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
28,103,296,000 
27,809,997,000 
 
 
Accrued interest payable
31,632,000 
25,904,000 
 
 
Due to customers
100,089,000 
118,488,000 
 
 
Derivative instruments
80,061,000 
32,842,000 
 
 
Fair value [Member] |
Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
0 
0 
 
 
Cash and cash equivalents
114,498,000 
130,481,000 
 
 
Investments (available-for-sale and trading)
12,498,000 
4,123,000 
 
 
Notes Receivable
0 
0 
 
 
Restricted cash
886,974,000 
800,164,000 
 
 
Restricted cash - due to customers
100,089,000 
118,488,000 
 
 
Restricted investments
8,297,000 
50,276,000 
 
 
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
100,089,000 
118,488,000 
 
 
Derivative instruments
0 
0 
 
 
Fair value [Member] |
Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
0 
0 
 
 
Cash and cash equivalents
0 
0 
 
 
Investments (available-for-sale and trading)
101,237,000 
145,000,000 
 
 
Notes Receivable
28,616,000 
28,832,000 
 
 
Restricted cash
0 
0 
 
 
Restricted cash - due to customers
0 
0 
 
 
Restricted investments
0 
0 
 
 
Accrued interest receivable
380,441,000 
351,588,000 
 
 
Derivative instruments
15,741,000 
64,392,000 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
28,103,296,000 
27,809,997,000 
 
 
Accrued interest payable
31,632,000 
25,904,000 
 
 
Due to customers
0 
0 
 
 
Derivative instruments
80,061,000 
32,842,000 
 
 
Fair value [Member] |
Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
29,390,728,000 
28,954,226,000 
 
 
Cash and cash equivalents
0 
0 
 
 
Investments (available-for-sale and trading)
0 
0 
 
 
Notes Receivable
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 
 
 
Carrying value [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
28,954,280,000 
28,005,195,000 
 
 
Cash and cash equivalents
114,498,000 
130,481,000 
 
 
Investments (available-for-sale and trading)
113,735,000 
149,123,000 
 
 
Notes Receivable
30,964,000 
30,643,000 
 
 
Restricted cash
886,974,000 
800,164,000 
 
 
Restricted cash - due to customers
100,089,000 
118,488,000 
 
 
Restricted investments
8,297,000 
50,276,000 
 
 
Accrued interest receivable
380,441,000 
351,588,000 
 
 
Derivative instruments
15,741,000 
64,392,000 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
28,827,603,000 
28,027,350,000 
 
 
Accrued interest payable
31,632,000 
25,904,000 
 
 
Due to customers
100,089,000 
118,488,000 
 
 
Derivative instruments
$ 80,061,000 
$ 32,842,000