NELNET INC, 10-Q filed on 8/6/2015
Quarterly Report
Document and Entity Information Document (USD $)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jul. 31, 2015
Common Class A [Member]
Jul. 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
 
 
33,368,589 
11,486,932 
Entity Public Float
 
$ 1,092,770,730 
 
 
Amendment Flag
false 
 
 
 
Entity Central Index Key
0001258602 
 
 
 
Entity Current Reporting Status
Yes 
 
 
 
Entity Voluntary Filers
No 
 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
 
Document Period End Date
Jun. 30, 2015 
 
 
 
Document Fiscal Year Focus
2015 
 
 
 
Document Fiscal Period Focus
Q2 
 
 
 
Consolidated Balance Sheets (unaudited) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Assets:
 
 
Student loans receivable (net of allowance for loan losses)
$ 28,095,775 
$ 28,005,195 
Cash and cash equivalents:
 
 
Cash and cash equivalents - not held at a related party
32,222 
37,781 
Cash and cash equivalents - held at a related party
150,058 
92,700 
Total cash and cash equivalents
182,280 
130,481 
Investments and notes receivable
245,748 
235,709 
Restricted cash and investments
857,853 
850,440 
Restricted cash - due to customers
117,820 
118,488 
Accrued interest receivable
364,211 
351,588 
Accounts receivable (net of allowance for doubtful accounts)
60,893 
50,552 
Goodwill
126,200 
126,200 
Intangible assets, net
37,784 
42,582 
Property and equipment, net
48,047 
45,894 
Other assets
79,996 
76,622 
Fair value of derivative instruments
30,216 
64,392 
Total assets
30,246,823 
30,098,143 
Liabilities:
 
 
Bonds and notes payable
28,070,423 
28,027,350 
Accrued interest payable
28,859 
25,904 
Other liabilities
157,096 
167,881 
Due to customers
117,820 
118,488 
Fair value of derivative instruments
67,133 
32,842 
Total liabilities
28,441,331 
28,372,465 
Nelnet, Inc. shareholders' equity:
 
 
Preferred stock
Additional paid-in capital
17,290 
Retained earnings
1,801,457 
1,702,560 
Accumulated other comprehensive earnings
3,283 
5,135 
Total Nelnet, Inc. shareholders' equity
1,805,192 
1,725,448 
Noncontrolling interest
300 
230 
Total equity
1,805,492 
1,725,678 
Total liabilities and equity
30,246,823 
30,098,143 
Common Class A [Member]
 
 
Nelnet, Inc. shareholders' equity:
 
 
Common stock
337 
348 
Total equity
337 
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)
28,234,240 
28,181,244 
Cash and cash equivalents:
 
 
Restricted cash and investments
844,854 
846,199 
Other assets
364,858 
351,934 
Liabilities:
 
 
Bonds and notes payable
28,287,682 
28,391,530 
Other liabilities
329,055 
280,233 
Fair value of derivative instruments
53,593 
20,455 
Equity:
 
 
Net assets of consolidated variable interest entities
$ 773,622 
$ 687,159 
Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Allowance for loan losses
$ 50,024 
$ 48,900 
Allowance for doubtful accounts
$ 1,957 
$ 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
Preferred stock, outstanding shares
Common Class A [Member]
 
 
Par Value (in dollars per share)
$ 0.01 
$ 0.01 
Shares Authorized
600,000,000 
600,000,000 
Shares Issued
33,724,471 
34,756,384 
Shares Outstanding
33,724,471 
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
11,486,932 
11,486,932 
Shares Outstanding
11,486,932 
11,486,932 
Consolidated Statements of Income (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Interest income:
 
 
 
 
Loan interest
$ 175,835 
$ 175,466 
$ 347,779 
$ 332,362 
Investment interest
1,887 
1,482 
4,092 
3,461 
Total interest income
177,722 
176,948 
351,871 
335,823 
Interest expense:
 
 
 
 
Interest on bonds and notes payable
72,626 
69,235 
144,180 
129,239 
Net interest income
105,096 
107,713 
207,691 
206,584 
Less provision for loan losses
2,150 
1,500 
4,150 
4,000 
Net interest income after provision for loan losses
102,946 
106,213 
203,541 
202,584 
Other income:
 
 
 
 
Loan and guaranty servicing revenue
63,833 
66,460 
121,644 
131,217 
Tuition payment processing, school information, and campus commerce revenue
27,686 
21,834 
62,366 
47,069 
Enrollment services revenue
17,161 
20,145 
35,024 
42,156 
Other income
7,504 
15,315 
14,422 
33,446 
Gain on sale of loans and debt repurchases
1,515 
18 
4,390 
57 
Derivative market value and foreign currency adjustments and derivative settlements, net
6,502 
1,570 
3,424 
(2,695)
Total other income
124,201 
125,342 
241,270 
251,250 
Operating expenses:
 
 
 
 
Salaries and benefits
58,787 
53,888 
119,837 
106,372 
Cost to provide enrollment services
11,162 
13,311 
22,864 
27,786 
Loan servicing fees
7,420 
7,317 
15,036 
12,720 
Depreciation and amortization
6,501 
5,214 
12,163 
9,997 
Other
31,958 
33,060 
61,156 
63,284 
Total operating expenses
115,828 
112,790 
231,056 
220,159 
Income before income taxes
111,319 
118,765 
213,755 
233,675 
Income tax expense
40,356 
43,078 
77,986 
83,689 
Net income
70,963 
75,687 
135,769 
149,986 
Net income attributable to noncontrolling interest
54 
693 
95 
1,206 
Net income attributable to Nelnet, Inc.
$ 70,909 
$ 74,994 
$ 135,674 
$ 148,780 
Earnings per common share:
 
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$ 1.54 
$ 1.61 
$ 2.94 
$ 3.20 
Weighted average common shares outstanding - basic and diluted
45,946,415 
46,529,377 
46,127,207 
46,528,651 
Consolidated Statements of Comprehensive Income (unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Net income
$ 70,963 
$ 75,687 
$ 135,769 
$ 149,986 
Available-for-sale securities:
 
 
 
 
Unrealized holding (losses) gains arising during period, net
(436)
5,826 
(649)
9,501 
Less reclassification adjustment for gains recognized in net income, net of losses
(2,093)
(1,238)
(2,297)
(8,311)
Income tax effect
940 
(1,698)
1,094 
(440)
Total other comprehensive loss
(1,589)
2,890 
(1,852)
750 
Comprehensive income
69,374 
78,577 
133,917 
150,736 
Comprehensive income attributable to noncontrolling interest
54 
693 
95 
1,206 
Comprehensive income attributable to Nelnet, Inc.
$ 69,320 
$ 77,884 
$ 133,822 
$ 149,530 
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 Mar. 31, 2014
$ 1,513,674 
$ 0 
$ 350 
$ 115 
$ 27,138 
$ 1,482,637 
$ 2,679 
$ 755 
Balance (in Shares) at Mar. 31, 2014
 
35,019,924 
11,491,932 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Net income
75,687 
 
 
 
 
74,994 
 
693 
Other comprehensive income (loss)
2,890 
 
 
 
 
 
2,890 
 
Distribution to noncontrolling interest
(1,062)
 
 
 
 
 
 
(1,062)
Cash dividend on Class A and Class B common stock
(4,643)
 
 
 
 
(4,643)
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
49,802 
 
 
 
 
Issuance of common stock, net of forfeitures
883 
 
882 
 
 
 
Compensation expense for stock based awards
1,135 
 
 
 
1,135 
 
 
 
Repurchase of common stock (in Shares)
 
 
(209,940)
 
 
 
 
Repurchase of common stock
(8,436)
 
(2)
(8,434)
 
 
 
Balance at Jun. 30, 2014
1,580,128 
349 
115 
20,721 
1,552,988 
5,569 
386 
Balance (in Shares) at Jun. 30, 2014
 
34,859,786 
11,491,932 
 
 
 
 
Balance at Dec. 31, 2013
1,443,990 
349 
115 
24,887 
1,413,492 
4,819 
328 
Balance (in Shares) at Dec. 31, 2013
 
34,881,338 
11,495,377 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Issuance of noncontrolling interest
201 
 
 
 
 
 
 
201 
Net income
149,986 
 
 
 
 
148,780 
 
1,206 
Other comprehensive income (loss)
750 
 
 
 
 
 
750 
 
Distribution to noncontrolling interest
(1,349)
 
 
 
 
 
 
(1,349)
Cash dividend on Class A and Class B common stock
(9,284)
 
 
 
 
(9,284)
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
205,507 
 
 
 
 
Issuance of common stock, net of forfeitures
3,128 
 
3,126 
 
 
 
Compensation expense for stock based awards
2,010 
 
 
 
2,010 
 
 
 
Repurchase of common stock (in Shares)
 
 
(230,504)
 
 
 
 
Repurchase of common stock
(9,304)
 
(2)
(9,302)
 
 
 
Conversion of Common Stock, Shares Converted
 
 
3,445 
(3,445)
 
 
 
 
Conversion of Common Stock, Amount Converted
 
 
 
 
 
Balance at Jun. 30, 2014
1,580,128 
349 
115 
20,721 
1,552,988 
5,569 
386 
Balance (in Shares) at Jun. 30, 2014
 
34,859,786 
11,491,932 
 
 
 
 
Balance at Dec. 31, 2014
1,725,678 
348 
115 
17,290 
1,702,560 
5,135 
230 
Balance (in Shares) at Dec. 31, 2014
 
34,756,384 
11,486,932 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Issuance of noncontrolling interest
19 
 
 
 
 
 
 
19 
Net income
135,769 
 
 
 
 
135,674 
 
95 
Other comprehensive income (loss)
(1,852)
 
 
 
 
 
(1,852)
 
Distribution to noncontrolling interest
(44)
 
 
 
 
 
 
(44)
Cash dividend on Class A and Class B common stock
(9,173)
 
 
 
 
(9,173)
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
142,095 
 
 
 
 
Issuance of common stock, net of forfeitures
3,412 
 
3,411 
 
 
 
Compensation expense for stock based awards
2,711 
 
 
 
2,711 
 
 
 
Repurchase of common stock (in Shares)
 
 
(1,174,008)
 
 
 
 
Repurchase of common stock
(51,028)
 
(12)
(23,412)
(27,604)
 
 
Balance at Jun. 30, 2015
1,805,492 
337 
115 
1,801,457 
3,283 
300 
Balance (in Shares) at Jun. 30, 2015
 
33,724,471 
11,486,932 
 
 
 
 
Balance at Mar. 31, 2015
1,781,493 
347 
115 
13,177 
1,762,711 
4,872 
271 
Balance (in Shares) at Mar. 31, 2015
 
34,713,065 
11,486,932 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Issuance of noncontrolling interest
19 
 
 
 
 
 
 
19 
Net income
70,963 
 
 
 
 
70,909 
 
54 
Other comprehensive income (loss)
(1,589)
 
 
 
 
 
(1,589)
 
Distribution to noncontrolling interest
(44)
 
 
 
 
 
 
(44)
Cash dividend on Class A and Class B common stock
(4,559)
 
 
 
 
(4,559)
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
9,616 
 
 
 
 
Issuance of common stock, net of forfeitures
945 
 
945 
 
 
 
Compensation expense for stock based awards
1,353 
 
 
 
1,353 
 
 
 
Repurchase of common stock (in Shares)
 
 
(998,210)
 
 
 
 
Repurchase of common stock
(43,089)
 
(10)
(15,475)
(27,604)
 
 
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
 
33,724,471 
11,486,932 
 
 
 
 
Consolidated Statements of Shareholders' Equity (unaudited) (Parentheticals)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Common Class A [Member]
 
 
 
 
Dividends paid per common share
$ 0.10 
$ 0.10 
$ 0.20 
$ 0.20 
Common Class B [Member]
 
 
 
 
Dividends paid per common share
$ 0.10 
$ 0.10 
$ 0.20 
$ 0.20 
Consolidated Statements of Cash Flows (unaudited) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Net income attributable to Nelnet, Inc.
$ 135,674 
$ 148,780 
Net income attributable to noncontrolling interest
95 
1,206 
Net income
135,769 
149,986 
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
60,191 
49,206 
Student loan discount accretion
(21,506)
(21,087)
Provision for loan losses
4,150 
4,000 
Derivative market value adjustment
19,457 
(7,950)
Foreign currency transaction adjustment
(33,538)
(1,798)
Proceeds from termination of derivative instruments
51,947 
Payment to enter into interest rate caps
585 
Gain on sale of loans
(351)
Gain from debt repurchases
(4,039)
(57)
Gain from sales of available-for-sale securities, net
(2,297)
(8,311)
Payments for purchases of trading securities, net
(11,697)
Deferred income tax expense
3,119 
5,653 
Other
6,376 
4,967 
Increase in accrued interest receivable
(743)
(3,567)
Increase in accounts receivable
(10,341)
(695)
(Increase) decrease in other assets
(1,967)
1,383 
Increase in accrued interest payable
2,566 
1,432 
Decrease in other liabilities
(4,526)
(16,690)
Net cash provided by operating activities
191,985 
156,472 
Cash flows from investing activities, net of acquisitions:
 
 
Purchases of student loans and student loan residual interests
(1,637,650)
(2,843,236)
Net proceeds from student loan repayments, claims, capitalized interest, participations, and other
1,953,437 
1,712,350 
Proceeds from sale of student loans
3,996 
Purchases of available-for-sale securities
(5,550)
(135,890)
Proceeds from sales of available-for-sale securities
47,951 
195,938 
Purchases of investments and issuance of notes receivable
(53,770)
(27,011)
Proceeds from investments and notes receivable
8,824 
3,821 
Purchases of property and equipment, net
(9,519)
(9,022)
Increase (decrease) in restricted cash and investments, net
16,532 
(27,247)
Business and asset acquisitions, net of cash acquired
(45,583)
Net cash provided by (used in) investing activities
324,251 
(1,175,874)
Cash flows from financing activities [Abstract]
 
 
Payments on bonds and notes payable
(2,629,565)
(1,821,723)
Proceeds from issuance of bonds and notes payable
2,233,630 
2,901,639 
Payments of debt issuance costs
(8,707)
(12,241)
Dividends paid
(9,173)
(9,284)
Repurchases of common stock
(51,028)
(9,304)
Proceeds from issuance of common stock
431 
295 
Issuance of noncontrolling interest
19 
201 
Distribution to noncontrolling interest
(44)
(1,349)
Net cash (used in) provided by financing activities
(464,437)
1,048,234 
Net increase in cash and cash equivalents
51,799 
28,832 
Cash and cash equivalents, beginning of period
130,481 
63,267 
Cash and cash equivalents, end of period
182,280 
92,099 
Cash disbursements made for:
 
 
Interest
108,436 
97,668 
Income taxes, net of refunds
67,211 
83,706 
Noncash activity:
 
 
Investing activity - student loans and other assets acquired
517,845 
2,571,997 
Financing activity - borrowings and other liabilities assumed in acquisition of student loans
$ 451,845 
$ 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 June 30, 2015 and for the three and six months ended June 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 six months ended June 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
 
June 30, 2015
 
December 31, 2014
Federally insured loans
 
 
 
Stafford and other
$
6,574,079

 
6,030,825

Consolidation
21,564,569

 
22,165,605

Total
28,138,648

 
28,196,430

Private education loans
175,202

 
27,478

 
28,313,850

 
28,223,908

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(168,051
)
 
(169,813
)
Allowance for loan losses – federally insured loans
(36,762
)
 
(39,170
)
Allowance for loan losses – private education loans
(13,262
)
 
(9,730
)
 
$
28,095,775

 
28,005,195



(a)
As of June 30, 2015 and December 31, 2014, "loan discount, net of unamortized loan premiums and deferred origination costs" included $33.1 million and $28.8 million, respectively, of non-accretable discount associated with purchased loans of $9.5 billion and $8.5 billion, respectively.




Private Education Loans

On February 5, 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. As of June 30, 2015, the Company had purchased $64.2 million in private loans from CommonBond pursuant to this agreement.

Acquisition of Student Loan Residual Interest

On May 26, 2015, the Company acquired the ownership interest in a federally insured student loan securitization trust (the "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.

The Company has consolidated this Trust on its consolidated balance sheet because management has determined the Company is the primary beneficiary of the Trust. Upon acquisition of the Trust, the Company recorded all assets and liabilities of the Trust at fair value, resulting in the recognition of a student loan fair value discount of $20.7 million and a bonds and notes payable fair value premium of $2.2 million. The discount and premium will be accreted and amortized, respectively, using the effective interest method over the lives of the underlying assets and liabilities. All other assets and liabilities 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 June 30,
 
Six months ended June 30,
 
2015
 
2014
 
2015
 
2014
Balance at beginning of period
$
51,161

 
54,628

 
48,900

 
55,122

Provision for loan losses:
 
 
 
 
 

 
 

Federally insured loans
2,000

 
2,000

 
4,000

 
5,000

Private education loans
150

 
(500
)
 
150

 
(1,000
)
Total provision for loan losses
2,150

 
1,500

 
4,150

 
4,000

Charge-offs:
 

 
 

 
 

 
 

Federally insured loans
(3,259
)
 
(4,138
)
 
(6,408
)
 
(7,769
)
Private education loans
(446
)
 
(598
)
 
(1,122
)
 
(1,019
)
Total charge-offs
(3,705
)
 
(4,736
)
 
(7,530
)
 
(8,788
)
Recoveries - private education loans
238

 
339

 
492

 
710

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

 
150

 
(230
)
 
250

Transfer from repurchase obligation related to private education loans repurchased
180

 
586

 
4,242

 
1,173

Balance at end of period
$
50,024

 
52,467

 
50,024

 
52,467

 
 
 
 
 
 
 
 
Allocation of the allowance for loan losses:
 
 
 

 
 

 
 

Federally insured loans
$
36,762

 
40,921

 
36,762

 
40,921

Private education loans
13,262

 
11,546

 
13,262

 
11,546

Total allowance for loan losses
$
50,024

 
52,467

 
50,024

 
52,467


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 June 30, 2015 and December 31, 2014, the balance of loans subject to these repurchase obligations was $57.0 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 $3.7 million and $11.8 million as of June 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 June 30, 2015
 
As of December 31, 2014
 
As of June 30, 2014
Federally insured loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
2,634,088

 
 
 
$
2,805,228

 
 
 
$
3,095,741

 
 
Loans in forbearance
3,118,774

 
 
 
3,288,412

 
 
 
3,593,891

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
19,055,994

 
85.2
%
 
18,460,279

 
83.5
%
 
19,164,660

 
84.0
%
Loans delinquent 31-60 days
950,055

 
4.2

 
1,043,119

 
4.8

 
1,026,046

 
4.5

Loans delinquent 61-90 days
612,657

 
2.7

 
588,777

 
2.7

 
674,918

 
3.0

Loans delinquent 91-120 days
355,636

 
1.6

 
404,905

 
1.8

 
376,068

 
1.5

Loans delinquent 121-270 days
1,051,843

 
4.7

 
1,204,405

 
5.4

 
1,133,527

 
5.0

Loans delinquent 271 days or greater
359,601

 
1.6

 
401,305

 
1.8

 
447,264

 
2.0

Total loans in repayment
22,385,786

 
100.0
%
 
22,102,790

 
100.0
%
 
22,822,483

 
100.0
%
Total federally insured loans
$
28,138,648

 
 

 
$
28,196,430

 
 

 
$
29,512,115

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private education loans:
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
5,268

 
 
 
$
905

 
 
 
$
2,123

 
 
Loans in forbearance
142

 
 
 

 
 
 

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
161,355

 
95.0
%
 
18,390

 
69.2
%
 
57,048

 
87.1
%
Loans delinquent 31-60 days
1,407

 
0.8

 
1,078

 
4.1

 
1,008

 
1.5

Loans delinquent 61-90 days
1,647

 
1.0

 
1,035

 
3.9

 
1,867

 
2.8

Loans delinquent 91 days or greater
5,383

 
3.2

 
6,070

 
22.8

 
5,624

 
8.6

Total loans in repayment
169,792

 
100.0
%
 
26,573

 
100.0
%
 
65,547

 
100.0
%
Total non-federally insured loans
$
175,202

 
 

 
$
27,478

 
 

 
$
67,670

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

The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
As of June 30, 2015
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
25,754,105

 
0.10% - 6.90%
 
8/26/19 - 8/26/52
Bonds and notes based on auction
1,171,515

 
1.06% - 2.09%
 
3/22/32 - 11/26/46
Total variable-rate bonds and notes
26,925,620

 
 
 
 
FFELP warehouse facilities
1,190,705

 
0.19% - 0.30%
 
6/11/17 - 4/29/18
Private education loan warehouse facility
89,265

 
0.31%
 
12/26/16
Unsecured line of credit
100,000

 
1.69%
 
6/30/19
Unsecured debt - Junior Subordinated Hybrid Securities
57,582

 
3.66%
 
9/15/61
Other borrowings
79,336

 
1.69% - 5.10%
 
11/11/15 - 10/31/16
 
28,442,508

 
 
 
 
Discount on bonds and notes payable
(372,085
)
 
 
 
 
Total
$
28,070,423

 
 
 
 
 
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 June 30, 2015, the Company had three FFELP warehouse facilities as summarized below.
 
 
NHELP-III (a)
 
NFSLW-I (b)
 
NHELP-II
 
Total
Maximum financing amount
 
$
750,000

 
750,000

 
500,000

 
2,000,000

Amount outstanding
 
282,005

 
571,084

 
337,616

 
1,190,705

Amount available
 
$
467,995

 
178,916

 
162,384

 
809,295

Expiration of liquidity provisions
 
April 29, 2016

 
July 30, 2015

 
December 17, 2015

 
 
Final maturity date
 
April 29, 2018

 
June 11, 2017

 
December 17, 2017

 
 
Maximum advance rates
 
92.2 - 95.0%

 
92.0 - 98.0%

 
91.0 - 97.0%

 
 
Minimum advance rates
 
92.2 - 95.0%

 
84.0 - 90.0%

 
91.0 - 97.0%

 
 
Advanced as equity support
 
$
7,751

 
27,211

 
18,808

 
53,770



(a)
On April 30, 2015, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to April 29, 2016, and to change the final maturity date to April 29, 2018.

(b)
On May 14, 2015, the Company amended the agreement for this warehouse facility to extend the expiration of the liquidity provisions to July 30, 2015. 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 six months ended June 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 June 30, 2015, there was $89.3 million outstanding on the facility and $185.7 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 June 30, 2015, $12.8 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

The Company has a $350.0 million line of credit that has a maturity date of June 30, 2019. As of June 30, 2015, the unsecured line of credit had an outstanding balance of $100.0 million and $250.0 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
 
June 30, 2015
 
June 30, 2014
Unsecured debt - Hybrid Securities
$
2,255

 
1,781

 
474

 

 

 

   Asset-backed securities
22,146

 
21,105

 
1,041

 
200

 
182

 
18

 
$
24,401

 
22,886

 
1,515

 
200

 
182

 
18

 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended
 
June 30, 2015
 
June 30, 2014
Unsecured debt - Hybrid Securities
$
14,106

 
11,108

 
2,998

 

 

 

   Asset-backed securities
22,146

 
21,105

 
1,041

 
1,550

 
1,493

 
57

 
$
36,252

 
32,213

 
4,039

 
1,550

 
1,493

 
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 June 30, 2015 and December 31, 2014 is presented below.

Basis Swaps

The following table summarizes the Company’s basis swaps outstanding as of June 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 June 30,
 
As of December 31,
 
 
 
2015
 
2014
Maturity
 
Notional amount
 
Notional amount
2016
 
 
$
4,000,000

 
$

2021
 
 

 
250,000

2022
 
 
800,000

 
1,900,000

2023
 
 
1,250,000

 
3,650,000

2024
 
 

 
250,000

2026
 
 
300,000

 
800,000

2028
 
 

 
100,000

2036
 
 

 
700,000

2039
 
 

 
150,000

 
 
 
$
6,350,000

 
$
7,800,000

The weighted average rate paid by the Company on the 1:3 Basis Swaps as of June 30, 2015 and December 31, 2014 was one-month LIBOR plus 8.5 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 June 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
 
$
500,000

 
0.71
%
 
$
1,100,000

 
0.89
%
2016
 
750,000

 
0.85

 
750,000

 
0.85

2017
 
1,850,000

 
0.83

 
1,250,000

 
0.86

2018
 
100,000

 
1.02

 

 

2025
 
100,000

 
2.32

 

 

 
 
$
3,300,000

 
0.87
%
 
$
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 June 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 June 30,
 
Six months ended June 30,
 
2015
 
2014
 
2015
 
2014
Re-measurement of Euro Notes
$
(14,671
)
 
2,751

 
33,538

 
1,798

Change in fair value of cross-currency interest rate swap
13,933

 
(2,999
)
 
(35,873
)
 
(3,037
)
Total impact to consolidated statements of income - income (expense) (a)
$
(738
)
 
(248
)
 
(2,335
)
 
(1,239
)
(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
 
June 30,
2015
 
December 31,
2014
 
June 30,
2015
 
December 31,
2014
1:3 basis swaps
$
14,071

 
53,549

 
71

 

Interest rate swaps - floor income hedges
7,262

 
5,165

 
4,470

 
5,034

Interest rate swap option - floor income hedge
6,148

 
5,678

 

 

Interest rate swaps - hybrid debt hedges

 

 
6,264

 
7,353

Interest rate caps
2,735

 

 

 

Cross-currency interest rate swap



 
56,328

 
20,455

Total
$
30,216

 
64,392

 
67,133

 
32,842



During the six months ended June 30, 2015, the Company terminated a total notional amount of $5.5 billion of 1:3 Basis Swaps for gross proceeds of $51.9 million. There were no derivative terminations during the first six 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 June 30, 2015
 
$
30,216

 
(6,801
)
 
2,046

 
25,461

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 June 30, 2015
 
$
(67,133
)
 
6,801

 
(9,091
)
 
(69,423
)
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 June 30,
 
Six months ended June 30,
 
2015
 
2014
 
2015
 
2014
Settlements:
 

 
 

 
 

 
 

1:3 basis swaps
$
123

 
858

 
389

 
1,739

Interest rate swaps - floor income hedges
(5,019
)
 
(6,974
)
 
(10,034
)
 
(13,924
)
Interest rate swaps - hybrid debt hedges
(253
)
 
(256
)
 
(505
)
 
(508
)
Cross-currency interest rate swap
(293
)
 
158

 
(507
)
 
250

Total settlements - (expense) income
(5,442
)
 
(6,214
)
 
(10,657
)
 
(12,443
)
Change in fair value:
 

 
 

 
 

 
 

1:3 basis swaps
1,428

 
11,910

 
12,398

 
13,020

Interest rate swaps - floor income hedges
7,534

 
(2,813
)
 
2,662

 
545

Interest rate swap option - floor income hedge
1,381

 

 
470

 

Interest rate swaps - hybrid debt hedges
2,540

 
(1,065
)
 
1,087

 
(2,578
)
Interest rate caps
(201
)
 

 
(201
)
 

Cross-currency interest rate swap
13,933

 
(2,999
)
 
(35,873
)
 
(3,037
)
Total change in fair value - income (expense)
26,615

 
5,033

 
(19,457
)
 
7,950

Re-measurement of Euro Notes (foreign currency transaction adjustment) - (expense) income
(14,671
)
 
2,751

 
33,538

 
1,798

Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense)
$
6,502

 
1,570

 
3,424

 
(2,695
)
Investments and Notes Receivable
Investments
Investments and Notes Receivable

A summary of the Company's investments and notes receivable follows:
 
As of June 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)
$
92,192

 
4,137

 
(608
)
 
95,721

 
131,589

 
6,204

 
(236
)
 
137,557

Equity securities
846

 
1,734

 
(58
)
 
2,522

 
1,553

 
2,216

 
(33
)
 
3,736

Total available-for-sale investments
$
93,038

 
5,871

 
(666
)
 
98,243

 
133,142

 
8,420

 
(269
)
 
141,293

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed securities
 
 
 
 
 
 
6,443

 
 
 
 
 
 
 
7,830

Equity securities
 
 
 
 
 
 
13,084

 
 
 
 
 
 
 

Total trading investments
 
 
 
 
 
 
19,527

 
 
 
 
 
 
 
7,830

Total available-for-sale and trading investments

 

 

 
117,770

 
 
 
 
 


 
149,123

Other Investments and Notes Receivable (not measured at fair value):
 
 
 
 
 
 
 
 
 
 
 
 
Investments accounted for under the cost and equity methods
 
 
 
 
 
 
82,281

 
 
 
 
 
 
 
36,991

Notes receivable
 
 
 
 
 
 
31,321

 
 
 
 
 
 
 
30,643

Other
 
 
 
 
 
 
14,376

 
 
 
 
 
 
 
18,952

Total investments and notes receivable
 
 
 
 
 
 
$
245,748

 
 
 
 
 
 
 
235,709


    
(a)
As of June 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 June 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 June 30, 2015 (months)
 
As of June 30, 2015
 
As of December 31, 2014
 
 
 
Amortizable intangible assets:
 
 
 
Customer relationships (net of accumulated amortization of $20,278 and $17,361, respectively)
213
 
$
24,413

 
27,330

Trade names (net of accumulated amortization of $534 and $272, respectively)
227
 
5,888

 
6,150

Computer software (net of accumulated amortization of $3,048 and $1,896, respectively)
37
 
5,817

 
6,969

Content (net of accumulated amortization of $450 and $0, respectively)
18
 
1,350

 
1,800

Covenants not to compete (net of accumulated amortization of $38 and $21, respectively)
107
 
316

 
333

Total - amortizable intangible assets
180
 
$
37,784

 
42,582



The Company recorded amortization expense on its intangible assets of $2.4 million and $1.4 million during the three months ended June 30, 2015 and 2014, respectively, and $4.8 million and $2.4 million during the six months ended June 30, 2015 and 2014, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of June 30, 2015, the Company estimates it will record amortization expense as follows:

2015 (July 1 - December 31)
$
4,797

2016
6,249

2017
3,752

2018
3,533

2019
2,861

2020 and thereafter
16,592

 
$
37,784



There were no changes in the carrying amount of goodwill during the six months ended June 30, 2015. The carrying amount of goodwill by reportable operating segment as of June 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 June 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 June 30,
 
2015
 
2014
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
70,146

 
763

 
70,909

 
74,263

 
731

 
74,994

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
45,451,888

 
494,527

 
45,946,415

 
46,075,869

 
453,508

 
46,529,377

Earnings per share - basic and diluted
$
1.54

 
1.54

 
1.54

 
1.61

 
1.61

 
1.61

 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
2015
 
2014
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
134,227

 
1,447

 
135,674

 
147,388

 
1,392

 
148,780

 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
45,635,155

 
492,052

 
46,127,207

 
46,093,314

 
435,337

 
46,528,651

Earnings per share - basic and diluted
$
2.94

 
2.94

 
2.94

 
3.20

 
3.20

 
3.20



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 June 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
$
13

 
1

 
176,279

 
1,814

 
(385
)
 
177,722

Interest expense

 

 
71,441

 
1,570

 
(385
)
 
72,626

Net interest income
13

 
1

 
104,838

 
244

 

 
105,096

Less provision for loan losses

 

 
2,150

 

 

 
2,150

Net interest income after provision for loan losses
13

 
1

 
102,688

 
244

 

 
102,946

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
63,833

 

 

 

 

 
63,833

Intersegment servicing revenue
12,223

 

 

 

 
(12,223
)
 

Tuition payment processing, school information, and campus commerce revenue

 
27,686

 

 

 

 
27,686

Enrollment services revenue

 

 

 
17,161

 

 
17,161

Other income

 

 
3,950

 
3,554

 

 
7,504

Gain on sale of loans and debt repurchases

 

 
1,041

 
474

 

 
1,515

Derivative market value and foreign currency adjustments, net

 

 
9,404

 
2,540

 

 
11,944

Derivative settlements, net

 

 
(5,189
)
 
(253
)
 

 
(5,442
)
Total other income
76,056

 
27,686

 
9,206

 
23,476

 
(12,223
)
 
124,201

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
31,585

 
13,583

 
524

 
13,095

 

 
58,787

Cost to provide enrollment services

 

 

 
11,162

 

 
11,162

Loan servicing fees

 

 
7,420

 

 

 
7,420

Depreciation and amortization
527

 
2,195

 

 
3,779

 

 
6,501

Other
15,376

 
4,112

 
1,270

 
11,200

 

 
31,958

Intersegment expenses, net
11,566

 
2,785

 
12,398

 
(14,526
)
 
(12,223
)
 

Total operating expenses
59,054

 
22,675

 
21,612

 
24,710

 
(12,223
)
 
115,828

Income (loss) before income taxes and corporate overhead allocation
17,015

 
5,012

 
90,282

 
(990
)
 

 
111,319

Corporate overhead allocation
(2,294
)
 
(918
)
 
(1,147
)
 
4,359

 

 

Income before income taxes
14,721

 
4,094

 
89,135

 
3,369

 

 
111,319

Income tax (expense) benefit
(5,594
)
 
(1,556
)
 
(33,871
)
 
665

 

 
(40,356
)
Net income
9,127

 
2,538

 
55,264

 
4,034

 

 
70,963

  Net income attributable to noncontrolling interest

 

 

 
54

 

 
54

Net income attributable to Nelnet, Inc.
$
9,127

 
2,538

 
55,264

 
3,980

 

 
70,909

 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 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
$
9

 
3

 
175,562

 
2,036

 
(662
)
 
176,948

Interest expense

 

 
67,936

 
1,961

 
(662
)
 
69,235

Net interest income
9

 
3

 
107,626

 
75

 

 
107,713

Less provision for loan losses

 

 
1,500

 

 

 
1,500

Net interest income after provision for loan losses
9

 
3

 
106,126

 
75

 

 
106,213

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
66,460

 

 

 

 

 
66,460

Intersegment servicing revenue
13,800

 

 

 

 
(13,800
)
 

Tuition payment processing, school information, and campus commerce revenue

 
21,834

 

 

 

 
21,834

Enrollment services revenue

 

 

 
20,145

 

 
20,145

Other income

 

 
4,496

 
10,819

 

 
15,315

Gain on sale of loans and debt repurchases

 

 
18

 

 

 
18

Derivative market value and foreign currency adjustments, net

 

 
8,848

 
(1,064
)
 

 
7,784

Derivative settlements, net

 

 
(5,958
)
 
(256
)
 

 
(6,214
)
Total other income
80,260

 
21,834

 
7,404

 
29,644

 
(13,800
)
 
125,342

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
30,082

 
11,112

 
570

 
12,124

 

 
53,888

Cost to provide enrollment services

 

 

 
13,311

 

 
13,311

Loan servicing fees

 

 
7,317

 

 

 
7,317

Depreciation and amortization
438

 
1,845

 

 
2,931

 

 
5,214

Other
16,975

 
2,956

 
1,528

 
11,601

 

 
33,060

Intersegment expenses, net
9,356

 
1,404

 
13,968

 
(10,928
)
 
(13,800
)
 

Total operating expenses
56,851

 
17,317

 
23,383

 
29,039

 
(13,800
)
 
112,790

Income before income taxes and corporate overhead allocation
23,418

 
4,520

 
90,147

 
680

 

 
118,765

Corporate overhead allocation
(2,060
)
 
(687
)
 
(1,249
)
 
3,996

 

 

Income before income taxes
21,358

 
3,833

 
88,898

 
4,676

 

 
118,765

Income tax (expense) benefit
(8,116
)
 
(1,456
)
 
(33,781
)
 
275

 

 
(43,078
)
Net income
13,242

 
2,377

 
55,117

 
4,951

 

 
75,687

  Net income attributable to noncontrolling interest

 

 

 
693

 

 
693

Net income attributable to Nelnet, Inc.
$
13,242

 
2,377

 
55,117

 
4,258

 

 
74,994

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 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
$
20

 
3

 
348,702

 
3,967

 
(821
)
 
351,871

Interest expense

 

 
141,981

 
3,020

 
(821
)
 
144,180

Net interest income
20

 
3

 
206,721

 
947

 

 
207,691

Less provision for loan losses

 

 
4,150

 

 

 
4,150

Net interest income after provision for loan losses
20

 
3

 
202,571

 
947

 

 
203,541

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
121,644

 

 

 

 

 
121,644

Intersegment servicing revenue
25,094

 

 

 

 
(25,094
)
 

Tuition payment processing, school information, and campus commerce revenue

 
62,366

 

 

 

 
62,366

Enrollment services revenue

 

 

 
35,024

 

 
35,024

Other income

 

 
8,526

 
5,896

 

 
14,422

Gain on sale of loans and debt repurchases

 

 
1,392

 
2,998

 

 
4,390

Derivative market value and foreign currency adjustments, net

 

 
12,994

 
1,087

 

 
14,081

Derivative settlements, net

 

 
(10,152
)
 
(505
)
 

 
(10,657
)
Total other income
146,738

 
62,366

 
12,760

 
44,500

 
(25,094
)
 
241,270

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
65,288

 
26,904

 
1,065

 
26,580

 

 
119,837

Cost to provide enrollment services

 

 

 
22,864

 

 
22,864

Loan servicing fees

 

 
15,036

 

 

 
15,036

Depreciation and amortization
973

 
4,390

 

 
6,800

 

 
12,163

Other
29,976

 
7,914

 
2,407

 
20,859

 

 
61,156

Intersegment expenses, net
21,266

 
5,399

 
25,438

 
(27,009
)
 
(25,094
)
 

Total operating expenses
117,503

 
44,607

 
43,946

 
50,094

 
(25,094
)
 
231,056

Income (loss) before income taxes and corporate overhead allocation
29,255

 
17,762

 
171,385

 
(4,647
)
 

 
213,755

Corporate overhead allocation
(4,447
)
 
(1,780
)
 
(2,225
)
 
8,452

 

 

Income before income taxes
24,808

 
15,982

 
169,160

 
3,805

 

 
213,755

Income tax (expense) benefit
(9,428
)
 
(6,074
)
 
(64,280
)
 
1,796

 

 
(77,986
)
Net income
15,380

 
9,908

 
104,880

 
5,601

 

 
135,769

  Net income attributable to noncontrolling interest

 

 

 
95

 

 
95

Net income attributable to Nelnet, Inc.
$
15,380

 
9,908

 
104,880

 
5,506

 

 
135,674

 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 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
$
20

 
3

 
332,565

 
4,694

 
(1,459
)
 
335,823

Interest expense

 

 
127,412

 
3,286

 
(1,459
)
 
129,239

Net interest income
20

 
3

 
205,153

 
1,408

 

 
206,584

Less provision for loan losses

 

 
4,000

 

 

 
4,000

Net interest income after provision for loan losses
20

 
3

 
201,153

 
1,408

 

 
202,584

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
131,217

 

 

 

 

 
131,217

Intersegment servicing revenue
28,021

 

 

 

 
(28,021
)
 

Tuition payment processing, school information, and campus commerce revenue

 
47,069

 

 

 

 
47,069

Enrollment services revenue

 

 

 
42,156

 

 
42,156

Other income

 

 
8,660

 
24,786

 

 
33,446

Gain on sale of loans and debt repurchases

 

 
57

 

 

 
57

Derivative market value and foreign currency adjustments, net

 

 
12,325

 
(2,577
)
 

 
9,748

Derivative settlements, net

 

 
(11,935
)
 
(508
)
 

 
(12,443
)
Total other income
159,238

 
47,069

 
9,107

 
63,857

 
(28,021
)
 
251,250

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
59,481

 
21,139

 
1,179

 
24,573

 

 
106,372

Cost to provide enrollment services

 

 

 
27,786

 

 
27,786

Loan servicing fees

 

 
12,720

 

 

 
12,720

Depreciation and amortization
857

 
3,273

 

 
5,867

 

 
9,997

Other
32,625

 
5,603

 
3,271

 
21,785

 

 
63,284

Intersegment expenses, net
18,519

 
2,824

 
28,339

 
(21,661
)
 
(28,021
)
 

Total operating expenses
111,482

 
32,839

 
45,509

 
58,350

 
(28,021
)
 
220,159

Income before income taxes and corporate overhead allocation
47,776

 
14,233

 
164,751

 
6,915

 

 
233,675

Corporate overhead allocation
(3,920
)
 
(1,307
)
 
(2,578
)
 
7,805

 

 

Income before income taxes
43,856

 
12,926

 
162,173

 
14,720

 

 
233,675

Income tax (expense) benefit
(16,665
)
 
(4,911
)
 
(61,625
)
 
(488
)
 

 
(83,689
)
Net income
27,191

 
8,015

 
100,548

 
14,232

 

 
149,986

  Net income attributable to noncontrolling interest

 

 

 
1,206

 

 
1,206

Net income attributable to Nelnet, Inc.
$
27,191

 
8,015

 
100,548

 
13,026

 

 
148,780

 
 
 
 
 
 
 
 
 
 
 
 
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 $33.6 million and $31.0 million for the three months ended June 30, 2015 and 2014, respectively, and $66.0 million and $60.9 million for the six months ended June 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 six months of 2015.
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 and Trust Company ("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 six months ended June 30, 2015.
 
As of June 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
$

 
101,821

 
101,821

 

 
145,000

 
145,000

Equity securities
15,606

 

 
15,606

 
3,736

 

 
3,736

Debt securities
343

 

 
343

 
387

 

 
387

Total investments (available-for-sale and trading)
15,949

 
101,821

 
117,770

 
4,123

 
145,000

 
149,123

Fair value of derivative instruments

 
30,216

 
30,216

 

 
64,392

 
64,392

Total assets
$
15,949

 
132,037

 
147,986

 
4,123

 
209,392

 
213,515

Liabilities:
 

 
 

 
 

 
 
 
 
 
 
Fair value of derivative instruments
$

 
67,133

 
67,133

 

 
32,842

 
32,842

Total liabilities
$

 
67,133

 
67,133

 

 
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 June 30, 2015
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
28,824,415

 
28,095,775

 

 

 
28,824,415

Cash and cash equivalents
182,280

 
182,280

 
182,280

 

 

Investments (available-for-sale and trading)
117,770

 
117,770

 
15,949

 
101,821

 

Notes receivable
28,644

 
31,321

 

 
28,644

 

Restricted cash
848,479

 
848,479

 
848,479

 

 

Restricted cash – due to customers
117,820

 
117,820

 
117,820

 

 

Restricted investments
9,374

 
9,374

 
9,374

 

 

Accrued interest receivable
364,211

 
364,211

 

 
364,211

 

Derivative instruments
30,216

 
30,216

 

 
30,216

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
27,661,342

 
28,070,423

 

 
27,661,342

 

Accrued interest payable
28,859

 
28,859

 

 
28,859

 

Due to customers
117,820

 
117,820

 
117,820

 

 

Derivative instruments
67,133

 
67,133

 

 
67,133

 

 
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.
Legal Proceedings
Legal Proceedings
Legal Proceedings

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

On August 6, 2012, an Amended Complaint was served on Peterson's Nelnet, LLC, a subsidiary of Nelnet, Inc. ("Nelnet"), CUnet, LLC, a subsidiary of Nelnet, and on Nelnet (collectively, the "Keating Defendants"), in connection with a lawsuit by Grant Keating in the U.S. Federal District Court for the Northern District of Ohio (the “District Court”). The lawsuit was originally instituted on August 24, 2011, and alleged that the Keating Defendants sent an advertising text message to the named plaintiff in June 2011 using an automatic telephone dialing system, and without the plaintiff's express consent. The complaint also alleged that this text message violated the Telephone Consumer Protection Act, purportedly entitling the plaintiff to $500, trebled for a willful violation. The complaint further alleged that the Keating Defendants sent putative class members similar text messages using an automatic telephone dialing system, without such purported class members' consent, and sought to establish a class action. On May 12, 2014, the District Court granted the Keating Defendants' motion for summary judgment, and ordered that the case be dismissed. On September 8, 2014, the named plaintiff filed an appeal brief with the Circuit Court of Appeals. On July 21, 2015, the Circuit Court of Appeals affirmed the District Court’s judgment in favor of the Keating Defendants, resulting in the dismissal of the case.
Subsequent event (Notes)
Subsequent Events [Text Block]
Subsequent Events

On August 3, 2015, the Company acquired the residual interests in two securitized student loan trusts. The two trusts collectively own approximately $1.5 billion of FFELP student loans and related assets and have issued a corresponding amount of related student loan asset-backed debt secured by those FFELP student loans and related assets.  The purchase was funded from the Company’s operating cash and unsecured line of credit.  The acquired FFELP student loans, related assets, and related asset-backed debt will be included in the Company’s consolidated financial statements. 
Basis of Financial Reporting Significant Accounting Policies (Policies)
Basis of Financial Reporting
Basis of Financial Reporting

The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of June 30, 2015 and for the three and six months ended June 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 six months ended June 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)
Student loans receivable consisted of the following:
 
As of
 
As of
 
June 30, 2015
 
December 31, 2014
Federally insured loans
 
 
 
Stafford and other
$
6,574,079

 
6,030,825

Consolidation
21,564,569

 
22,165,605

Total
28,138,648

 
28,196,430

Private education loans
175,202

 
27,478

 
28,313,850

 
28,223,908

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(168,051
)
 
(169,813
)
Allowance for loan losses – federally insured loans
(36,762
)
 
(39,170
)
Allowance for loan losses – private education loans
(13,262
)
 
(9,730
)
 
$
28,095,775

 
28,005,195



(a)
As of June 30, 2015 and December 31, 2014, "loan discount, net of unamortized loan premiums and deferred origination costs" included $33.1 million and $28.8 million, respectively, of non-accretable discount associated with purchased loans of $9.5 billion and $8.5 billion, respectively.

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 June 30,
 
Six months ended June 30,
 
2015
 
2014
 
2015
 
2014
Balance at beginning of period
$
51,161

 
54,628

 
48,900

 
55,122

Provision for loan losses:
 
 
 
 
 

 
 

Federally insured loans
2,000

 
2,000

 
4,000

 
5,000

Private education loans
150

 
(500
)
 
150

 
(1,000
)
Total provision for loan losses
2,150

 
1,500

 
4,150

 
4,000

Charge-offs:
 

 
 

 
 

 
 

Federally insured loans
(3,259
)
 
(4,138
)
 
(6,408
)
 
(7,769
)
Private education loans
(446
)
 
(598
)
 
(1,122
)
 
(1,019
)
Total charge-offs
(3,705
)
 
(4,736
)
 
(7,530
)
 
(8,788
)
Recoveries - private education loans
238

 
339

 
492

 
710

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

 
150

 
(230
)
 
250

Transfer from repurchase obligation related to private education loans repurchased
180

 
586

 
4,242

 
1,173

Balance at end of period
$
50,024

 
52,467

 
50,024

 
52,467

 
 
 
 
 
 
 
 
Allocation of the allowance for loan losses:
 
 
 

 
 

 
 

Federally insured loans
$
36,762

 
40,921

 
36,762

 
40,921

Private education loans
13,262

 
11,546

 
13,262

 
11,546

Total allowance for loan losses
$
50,024

 
52,467

 
50,024

 
52,467


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 June 30, 2015
 
As of December 31, 2014
 
As of June 30, 2014
Federally insured loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
2,634,088

 
 
 
$
2,805,228

 
 
 
$
3,095,741

 
 
Loans in forbearance
3,118,774

 
 
 
3,288,412

 
 
 
3,593,891

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
19,055,994

 
85.2
%
 
18,460,279

 
83.5
%
 
19,164,660

 
84.0
%
Loans delinquent 31-60 days
950,055

 
4.2

 
1,043,119

 
4.8

 
1,026,046

 
4.5

Loans delinquent 61-90 days
612,657

 
2.7

 
588,777

 
2.7

 
674,918

 
3.0

Loans delinquent 91-120 days
355,636

 
1.6

 
404,905

 
1.8

 
376,068

 
1.5

Loans delinquent 121-270 days
1,051,843

 
4.7

 
1,204,405

 
5.4

 
1,133,527

 
5.0

Loans delinquent 271 days or greater
359,601

 
1.6

 
401,305

 
1.8

 
447,264

 
2.0

Total loans in repayment
22,385,786

 
100.0
%
 
22,102,790

 
100.0
%
 
22,822,483

 
100.0
%
Total federally insured loans
$
28,138,648

 
 

 
$
28,196,430

 
 

 
$
29,512,115

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private education loans:
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
5,268

 
 
 
$
905

 
 
 
$
2,123

 
 
Loans in forbearance
142

 
 
 

 
 
 

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
161,355

 
95.0
%
 
18,390

 
69.2
%
 
57,048

 
87.1
%
Loans delinquent 31-60 days
1,407

 
0.8

 
1,078

 
4.1

 
1,008

 
1.5

Loans delinquent 61-90 days
1,647

 
1.0

 
1,035

 
3.9

 
1,867

 
2.8

Loans delinquent 91 days or greater
5,383

 
3.2

 
6,070

 
22.8

 
5,624

 
8.6

Total loans in repayment
169,792

 
100.0
%
 
26,573

 
100.0
%
 
65,547

 
100.0
%
Total non-federally insured loans
$
175,202

 
 

 
$
27,478

 
 

 
$
67,670

 
 
Bonds and Notes payable (Tables)
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
As of June 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
$
25,754,105

 
0.10% - 6.90%
 
8/26/19 - 8/26/52
Bonds and notes based on auction
1,171,515

 
1.06% - 2.09%
 
3/22/32 - 11/26/46
Total variable-rate bonds and notes
26,925,620

 
 
 
 
FFELP warehouse facilities
1,190,705

 
0.19% - 0.30%
 
6/11/17 - 4/29/18
Private education loan warehouse facility
89,265

 
0.31%
 
12/26/16
Unsecured line of credit
100,000

 
1.69%
 
6/30/19
Unsecured debt - Junior Subordinated Hybrid Securities
57,582

 
3.66%
 
9/15/61
Other borrowings
79,336

 
1.69% - 5.10%
 
11/11/15 - 10/31/16
 
28,442,508

 
 
 
 
Discount on bonds and notes payable
(372,085
)
 
 
 
 
Total
$
28,070,423

 
 
 
 
 
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 June 30, 2015, the Company had three FFELP warehouse facilities as summarized below.
 
 
NHELP-III (a)
 
NFSLW-I (b)
 
NHELP-II
 
Total
Maximum financing amount
 
$
750,000

 
750,000

 
500,000

 
2,000,000

Amount outstanding
 
282,005

 
571,084

 
337,616

 
1,190,705

Amount available
 
$
467,995

 
178,916

 
162,384

 
809,295

Expiration of liquidity provisions
 
April 29, 2016

 
July 30, 2015

 
December 17, 2015

 
 
Final maturity date
 
April 29, 2018

 
June 11, 2017

 
December 17, 2017

 
 
Maximum advance rates
 
92.2 - 95.0%

 
92.0 - 98.0%

 
91.0 - 97.0%

 
 
Minimum advance rates
 
92.2 - 95.0%

 
84.0 - 90.0%

 
91.0 - 97.0%

 
 
Advanced as equity support
 
$
7,751

 
27,211

 
18,808

 
53,770



(a)
On April 30, 2015, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to April 29, 2016, and to change the final maturity date to April 29, 2018.

(b)
On May 14, 2015, the Company amended the agreement for this warehouse facility to extend the expiration of the liquidity provisions to July 30, 2015. 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 six months ended June 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

 
 

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
 
June 30, 2015
 
June 30, 2014
Unsecured debt - Hybrid Securities
$
2,255

 
1,781

 
474

 

 

 

   Asset-backed securities
22,146

 
21,105

 
1,041

 
200

 
182

 
18

 
$
24,401

 
22,886

 
1,515

 
200

 
182

 
18

 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended
 
June 30, 2015
 
June 30, 2014
Unsecured debt - Hybrid Securities
$
14,106

 
11,108

 
2,998

 

 

 

   Asset-backed securities
22,146

 
21,105

 
1,041

 
1,550

 
1,493

 
57

 
$
36,252

 
32,213

 
4,039

 
1,550

 
1,493

 
57

Derivative Financial Instruments (Tables)
Basis Swaps

The following table summarizes the Company’s basis swaps outstanding as of June 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 June 30,
 
As of December 31,
 
 
 
2015
 
2014
Maturity
 
Notional amount
 
Notional amount
2016
 
 
$
4,000,000

 
$

2021
 
 

 
250,000

2022
 
 
800,000

 
1,900,000

2023
 
 
1,250,000

 
3,650,000

2024
 
 

 
250,000

2026
 
 
300,000

 
800,000

2028
 
 

 
100,000

2036
 
 

 
700,000

2039
 
 

 
150,000

 
 
 
$
6,350,000

 
$
7,800,000

The weighted average rate paid by the Company on the 1:3 Basis Swaps as of June 30, 2015 and December 31, 2014 was one-month LIBOR plus 8.5 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 June 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
 
$
500,000

 
0.71
%
 
$
1,100,000

 
0.89
%
2016
 
750,000

 
0.85

 
750,000

 
0.85

2017
 
1,850,000

 
0.83

 
1,250,000

 
0.86

2018
 
100,000

 
1.02

 

 

2025
 
100,000

 
2.32

 

 

 
 
$
3,300,000

 
0.87
%
 
$
3,100,000

 
0.87
%

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

The Company had the following derivatives outstanding as of June 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.
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 June 30,
 
Six months ended June 30,
 
2015
 
2014
 
2015
 
2014
Re-measurement of Euro Notes
$
(14,671
)
 
2,751

 
33,538

 
1,798

Change in fair value of cross-currency interest rate swap
13,933

 
(2,999
)
 
(35,873
)
 
(3,037
)
Total impact to consolidated statements of income - income (expense) (a)
$
(738
)
 
(248
)
 
(2,335
)
 
(1,239
)
(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.
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
 
June 30,
2015
 
December 31,
2014
 
June 30,
2015
 
December 31,
2014
1:3 basis swaps
$
14,071

 
53,549

 
71

 

Interest rate swaps - floor income hedges
7,262

 
5,165

 
4,470

 
5,034

Interest rate swap option - floor income hedge
6,148

 
5,678

 

 

Interest rate swaps - hybrid debt hedges

 

 
6,264

 
7,353

Interest rate caps
2,735

 

 

 

Cross-currency interest rate swap



 
56,328

 
20,455

Total
$
30,216

 
64,392

 
67,133

 
32,842



During the six months ended June 30, 2015, the Company terminated a total notional amount of $5.5 billion of 1:3 Basis Swaps for gross proceeds of $51.9 million. There were no derivative terminations during the first six 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 June 30, 2015
 
$
30,216

 
(6,801
)
 
2,046

 
25,461

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 June 30, 2015
 
$
(67,133
)
 
6,801

 
(9,091
)
 
(69,423
)
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 June 30,
 
Six months ended June 30,
 
2015
 
2014
 
2015
 
2014
Settlements:
 

 
 

 
 

 
 

1:3 basis swaps
$
123

 
858

 
389

 
1,739

Interest rate swaps - floor income hedges
(5,019
)
 
(6,974
)
 
(10,034
)
 
(13,924
)
Interest rate swaps - hybrid debt hedges
(253
)
 
(256
)
 
(505
)
 
(508
)
Cross-currency interest rate swap
(293
)
 
158

 
(507
)
 
250

Total settlements - (expense) income
(5,442
)
 
(6,214
)
 
(10,657
)
 
(12,443
)
Change in fair value:
 

 
 

 
 

 
 

1:3 basis swaps
1,428

 
11,910

 
12,398

 
13,020

Interest rate swaps - floor income hedges
7,534

 
(2,813
)
 
2,662

 
545

Interest rate swap option - floor income hedge
1,381

 

 
470

 

Interest rate swaps - hybrid debt hedges
2,540

 
(1,065
)
 
1,087

 
(2,578
)
Interest rate caps
(201
)
 

 
(201
)
 

Cross-currency interest rate swap
13,933

 
(2,999
)
 
(35,873
)
 
(3,037
)
Total change in fair value - income (expense)
26,615

 
5,033

 
(19,457
)
 
7,950

Re-measurement of Euro Notes (foreign currency transaction adjustment) - (expense) income
(14,671
)
 
2,751

 
33,538

 
1,798

Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense)
$
6,502

 
1,570

 
3,424

 
(2,695
)
Investments and Notes Receivable (Tables)
Summary Investment Holdings
A summary of the Company's investments and notes receivable follows:
 
As of June 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)
$
92,192

 
4,137

 
(608
)
 
95,721

 
131,589

 
6,204

 
(236
)
 
137,557

Equity securities
846

 
1,734

 
(58
)
 
2,522

 
1,553

 
2,216

 
(33
)
 
3,736

Total available-for-sale investments
$
93,038

 
5,871

 
(666
)
 
98,243

 
133,142

 
8,420

 
(269
)
 
141,293

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed securities
 
 
 
 
 
 
6,443

 
 
 
 
 
 
 
7,830

Equity securities
 
 
 
 
 
 
13,084

 
 
 
 
 
 
 

Total trading investments
 
 
 
 
 
 
19,527

 
 
 
 
 
 
 
7,830

Total available-for-sale and trading investments

 

 

 
117,770

 
 
 
 
 


 
149,123

Other Investments and Notes Receivable (not measured at fair value):
 
 
 
 
 
 
 
 
 
 
 
 
Investments accounted for under the cost and equity methods
 
 
 
 
 
 
82,281

 
 
 
 
 
 
 
36,991

Notes receivable
 
 
 
 
 
 
31,321

 
 
 
 
 
 
 
30,643

Other
 
 
 
 
 
 
14,376

 
 
 
 
 
 
 
18,952

Total investments and notes receivable
 
 
 
 
 
 
$
245,748

 
 
 
 
 
 
 
235,709


    
(a)
As of June 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 June 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)
Intangible assets consist of the following:
 
Weighted average remaining useful life as of June 30, 2015 (months)
 
As of June 30, 2015
 
As of December 31, 2014
 
 
 
Amortizable intangible assets:
 
 
 
Customer relationships (net of accumulated amortization of $20,278 and $17,361, respectively)
213
 
$
24,413

 
27,330

Trade names (net of accumulated amortization of $534 and $272, respectively)
227
 
5,888

 
6,150

Computer software (net of accumulated amortization of $3,048 and $1,896, respectively)
37
 
5,817

 
6,969

Content (net of accumulated amortization of $450 and $0, respectively)
18
 
1,350

 
1,800

Covenants not to compete (net of accumulated amortization of $38 and $21, respectively)
107
 
316

 
333

Total - amortizable intangible assets
180
 
$
37,784

 
42,582

The Company recorded amortization expense on its intangible assets of $2.4 million and $1.4 million during the three months ended June 30, 2015 and 2014, respectively, and $4.8 million and $2.4 million during the six months ended June 30, 2015 and 2014, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of June 30, 2015, the Company estimates it will record amortization expense as follows:

2015 (July 1 - December 31)
$
4,797

2016
6,249

2017
3,752

2018
3,533

2019
2,861

2020 and thereafter
16,592

 
$
37,784

The carrying amount of goodwill by reportable operating segment as of June 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 June 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 June 30,
 
2015
 
2014
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
70,146

 
763

 
70,909

 
74,263

 
731

 
74,994

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
45,451,888

 
494,527

 
45,946,415

 
46,075,869

 
453,508

 
46,529,377

Earnings per share - basic and diluted
$
1.54

 
1.54

 
1.54

 
1.61

 
1.61

 
1.61

 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
2015
 
2014
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
134,227

 
1,447

 
135,674

 
147,388

 
1,392

 
148,780

 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
45,635,155

 
492,052

 
46,127,207

 
46,093,314

 
435,337

 
46,528,651

Earnings per share - basic and diluted
$
2.94

 
2.94

 
2.94

 
3.20

 
3.20

 
3.20

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 June 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
$
13

 
1

 
176,279

 
1,814

 
(385
)
 
177,722

Interest expense

 

 
71,441

 
1,570

 
(385
)
 
72,626

Net interest income
13

 
1

 
104,838

 
244

 

 
105,096

Less provision for loan losses

 

 
2,150

 

 

 
2,150

Net interest income after provision for loan losses
13

 
1

 
102,688

 
244

 

 
102,946

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
63,833

 

 

 

 

 
63,833

Intersegment servicing revenue
12,223

 

 

 

 
(12,223
)
 

Tuition payment processing, school information, and campus commerce revenue

 
27,686

 

 

 

 
27,686

Enrollment services revenue

 

 

 
17,161

 

 
17,161

Other income

 

 
3,950

 
3,554

 

 
7,504

Gain on sale of loans and debt repurchases

 

 
1,041

 
474

 

 
1,515

Derivative market value and foreign currency adjustments, net

 

 
9,404

 
2,540

 

 
11,944

Derivative settlements, net

 

 
(5,189
)
 
(253
)
 

 
(5,442
)
Total other income
76,056

 
27,686

 
9,206

 
23,476

 
(12,223
)
 
124,201

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
31,585

 
13,583

 
524

 
13,095

 

 
58,787

Cost to provide enrollment services

 

 

 
11,162

 

 
11,162

Loan servicing fees

 

 
7,420

 

 

 
7,420

Depreciation and amortization
527

 
2,195

 

 
3,779

 

 
6,501

Other
15,376

 
4,112

 
1,270

 
11,200

 

 
31,958

Intersegment expenses, net
11,566

 
2,785

 
12,398

 
(14,526
)
 
(12,223
)
 

Total operating expenses
59,054

 
22,675

 
21,612

 
24,710

 
(12,223
)
 
115,828

Income (loss) before income taxes and corporate overhead allocation
17,015

 
5,012

 
90,282

 
(990
)
 

 
111,319

Corporate overhead allocation
(2,294
)
 
(918
)
 
(1,147
)
 
4,359

 

 

Income before income taxes
14,721

 
4,094

 
89,135

 
3,369

 

 
111,319

Income tax (expense) benefit
(5,594
)
 
(1,556
)
 
(33,871
)
 
665

 

 
(40,356
)
Net income
9,127

 
2,538

 
55,264

 
4,034

 

 
70,963

  Net income attributable to noncontrolling interest

 

 

 
54

 

 
54

Net income attributable to Nelnet, Inc.
$
9,127

 
2,538

 
55,264

 
3,980

 

 
70,909

 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 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
$
9

 
3

 
175,562

 
2,036

 
(662
)
 
176,948

Interest expense

 

 
67,936

 
1,961

 
(662
)
 
69,235

Net interest income
9

 
3

 
107,626

 
75

 

 
107,713

Less provision for loan losses

 

 
1,500

 

 

 
1,500

Net interest income after provision for loan losses
9

 
3

 
106,126

 
75

 

 
106,213

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
66,460

 

 

 

 

 
66,460

Intersegment servicing revenue
13,800

 

 

 

 
(13,800
)
 

Tuition payment processing, school information, and campus commerce revenue

 
21,834

 

 

 

 
21,834

Enrollment services revenue

 

 

 
20,145

 

 
20,145

Other income

 

 
4,496

 
10,819

 

 
15,315

Gain on sale of loans and debt repurchases

 

 
18

 

 

 
18

Derivative market value and foreign currency adjustments, net

 

 
8,848

 
(1,064
)
 

 
7,784

Derivative settlements, net

 

 
(5,958
)
 
(256
)
 

 
(6,214
)
Total other income
80,260

 
21,834

 
7,404

 
29,644

 
(13,800
)
 
125,342

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
30,082

 
11,112

 
570

 
12,124

 

 
53,888

Cost to provide enrollment services

 

 

 
13,311

 

 
13,311

Loan servicing fees

 

 
7,317

 

 

 
7,317

Depreciation and amortization
438

 
1,845

 

 
2,931

 

 
5,214

Other
16,975

 
2,956

 
1,528

 
11,601

 

 
33,060

Intersegment expenses, net
9,356

 
1,404

 
13,968

 
(10,928
)
 
(13,800
)
 

Total operating expenses
56,851

 
17,317

 
23,383

 
29,039

 
(13,800
)
 
112,790

Income before income taxes and corporate overhead allocation
23,418

 
4,520

 
90,147

 
680

 

 
118,765

Corporate overhead allocation
(2,060
)
 
(687
)
 
(1,249
)
 
3,996

 

 

Income before income taxes
21,358

 
3,833

 
88,898

 
4,676

 

 
118,765

Income tax (expense) benefit
(8,116
)
 
(1,456
)
 
(33,781
)
 
275

 

 
(43,078
)
Net income
13,242

 
2,377

 
55,117

 
4,951

 

 
75,687

  Net income attributable to noncontrolling interest

 

 

 
693

 

 
693

Net income attributable to Nelnet, Inc.
$
13,242

 
2,377

 
55,117

 
4,258

 

 
74,994

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 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
$
20

 
3

 
348,702

 
3,967

 
(821
)
 
351,871

Interest expense

 

 
141,981

 
3,020

 
(821
)
 
144,180

Net interest income
20

 
3

 
206,721

 
947

 

 
207,691

Less provision for loan losses

 

 
4,150

 

 

 
4,150

Net interest income after provision for loan losses
20

 
3

 
202,571

 
947

 

 
203,541

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
121,644

 

 

 

 

 
121,644

Intersegment servicing revenue
25,094

 

 

 

 
(25,094
)
 

Tuition payment processing, school information, and campus commerce revenue

 
62,366

 

 

 

 
62,366

Enrollment services revenue

 

 

 
35,024

 

 
35,024

Other income

 

 
8,526

 
5,896

 

 
14,422

Gain on sale of loans and debt repurchases

 

 
1,392

 
2,998

 

 
4,390

Derivative market value and foreign currency adjustments, net

 

 
12,994

 
1,087

 

 
14,081

Derivative settlements, net

 

 
(10,152
)
 
(505
)
 

 
(10,657
)
Total other income
146,738

 
62,366

 
12,760

 
44,500

 
(25,094
)
 
241,270

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
65,288

 
26,904

 
1,065

 
26,580

 

 
119,837

Cost to provide enrollment services

 

 

 
22,864

 

 
22,864

Loan servicing fees

 

 
15,036

 

 

 
15,036

Depreciation and amortization
973

 
4,390

 

 
6,800

 

 
12,163

Other
29,976

 
7,914

 
2,407

 
20,859

 

 
61,156

Intersegment expenses, net
21,266

 
5,399

 
25,438

 
(27,009
)
 
(25,094
)
 

Total operating expenses
117,503

 
44,607

 
43,946

 
50,094

 
(25,094
)
 
231,056

Income (loss) before income taxes and corporate overhead allocation
29,255

 
17,762

 
171,385

 
(4,647
)
 

 
213,755

Corporate overhead allocation
(4,447
)
 
(1,780
)
 
(2,225
)
 
8,452

 

 

Income before income taxes
24,808

 
15,982

 
169,160

 
3,805

 

 
213,755

Income tax (expense) benefit
(9,428
)
 
(6,074
)
 
(64,280
)
 
1,796

 

 
(77,986
)
Net income
15,380

 
9,908

 
104,880

 
5,601

 

 
135,769

  Net income attributable to noncontrolling interest

 

 

 
95

 

 
95

Net income attributable to Nelnet, Inc.
$
15,380

 
9,908

 
104,880

 
5,506

 

 
135,674

 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 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
$
20

 
3

 
332,565

 
4,694

 
(1,459
)
 
335,823

Interest expense

 

 
127,412

 
3,286

 
(1,459
)
 
129,239

Net interest income
20

 
3

 
205,153

 
1,408

 

 
206,584

Less provision for loan losses

 

 
4,000

 

 

 
4,000

Net interest income after provision for loan losses
20

 
3

 
201,153

 
1,408

 

 
202,584

Other income:
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
131,217

 

 

 

 

 
131,217

Intersegment servicing revenue
28,021

 

 

 

 
(28,021
)
 

Tuition payment processing, school information, and campus commerce revenue

 
47,069

 

 

 

 
47,069

Enrollment services revenue

 

 

 
42,156

 

 
42,156

Other income

 

 
8,660

 
24,786

 

 
33,446

Gain on sale of loans and debt repurchases

 

 
57

 

 

 
57

Derivative market value and foreign currency adjustments, net

 

 
12,325

 
(2,577
)
 

 
9,748

Derivative settlements, net

 

 
(11,935
)
 
(508
)
 

 
(12,443
)
Total other income
159,238

 
47,069

 
9,107

 
63,857

 
(28,021
)
 
251,250

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
59,481

 
21,139

 
1,179

 
24,573

 

 
106,372

Cost to provide enrollment services

 

 

 
27,786

 

 
27,786

Loan servicing fees

 

 
12,720

 

 

 
12,720

Depreciation and amortization
857

 
3,273

 

 
5,867

 

 
9,997

Other
32,625

 
5,603

 
3,271

 
21,785

 

 
63,284

Intersegment expenses, net
18,519

 
2,824

 
28,339

 
(21,661
)
 
(28,021
)
 

Total operating expenses
111,482

 
32,839

 
45,509

 
58,350

 
(28,021
)
 
220,159

Income before income taxes and corporate overhead allocation
47,776

 
14,233

 
164,751

 
6,915

 

 
233,675

Corporate overhead allocation
(3,920
)
 
(1,307
)
 
(2,578
)
 
7,805

 

 

Income before income taxes
43,856

 
12,926

 
162,173

 
14,720

 

 
233,675

Income tax (expense) benefit
(16,665
)
 
(4,911
)
 
(61,625
)
 
(488
)
 

 
(83,689
)
Net income
27,191

 
8,015

 
100,548

 
14,232

 

 
149,986

  Net income attributable to noncontrolling interest

 

 

 
1,206

 

 
1,206

Net income attributable to Nelnet, Inc.
$
27,191

 
8,015

 
100,548

 
13,026

 

 
148,780

 
 
 
 
 
 
 
 
 
 
 
 
Fair Value (Tables)
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the six months ended June 30, 2015.
 
As of June 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
$

 
101,821

 
101,821

 

 
145,000

 
145,000

Equity securities
15,606

 

 
15,606

 
3,736

 

 
3,736

Debt securities
343

 

 
343

 
387

 

 
387

Total investments (available-for-sale and trading)
15,949

 
101,821

 
117,770

 
4,123

 
145,000

 
149,123

Fair value of derivative instruments

 
30,216

 
30,216

 

 
64,392

 
64,392

Total assets
$
15,949

 
132,037

 
147,986

 
4,123

 
209,392

 
213,515

Liabilities:
 

 
 

 
 

 
 
 
 
 
 
Fair value of derivative instruments
$

 
67,133

 
67,133

 

 
32,842

 
32,842

Total liabilities
$

 
67,133

 
67,133

 

 
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 June 30, 2015
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
28,824,415

 
28,095,775

 

 

 
28,824,415

Cash and cash equivalents
182,280

 
182,280

 
182,280

 

 

Investments (available-for-sale and trading)
117,770

 
117,770

 
15,949

 
101,821

 

Notes receivable
28,644

 
31,321

 

 
28,644

 

Restricted cash
848,479

 
848,479

 
848,479

 

 

Restricted cash – due to customers
117,820

 
117,820

 
117,820

 

 

Restricted investments
9,374

 
9,374

 
9,374

 

 

Accrued interest receivable
364,211

 
364,211

 

 
364,211

 

Derivative instruments
30,216

 
30,216

 

 
30,216

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
27,661,342

 
28,070,423

 

 
27,661,342

 

Accrued interest payable
28,859

 
28,859

 

 
28,859

 

Due to customers
117,820

 
117,820

 
117,820

 

 

Derivative instruments
67,133

 
67,133

 

 
67,133

 

 
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
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Allowance for loan losses
$ 50,024 
$ 51,161 
$ 48,900 
$ 52,467 
$ 54,628 
$ 55,122 
Student loans receivable
28,095,775 
 
28,005,195 
 
 
 
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Allowance for loan losses
36,762 
 
 
40,921 
 
 
Private education loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Allowance for loan losses
13,262 
 
 
11,546 
 
 
held for investment [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
28,313,850 
 
28,223,908 
 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
168,051 1
 
169,813 1
 
 
 
Student loans receivable
28,095,775 
 
28,005,195 
 
 
 
held for investment [Member] |
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
28,138,648 
 
28,196,430 
 
 
 
Allowance for loan losses
36,762 
 
39,170 
 
 
 
held for investment [Member] |
Private education loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
175,202 
 
27,478 
 
 
 
Allowance for loan losses
13,262 
 
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
6,574,079 
 
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
21,564,569 
 
22,165,605 
 
 
 
Non-accretable discount [Member] |
held for investment [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
9,500,000 
 
8,500,000 
 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
$ 33,100 
 
$ 28,800 
 
 
 
Student Loans Receivable and Allowance for Loan Losses Significant Purchases and Obligations (Details) (USD $)
6 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Jun. 30, 2015
CommonBond Purchase Commitment [Member]
Private education loans [Member]
Jun. 30, 2015
Federally insured student loan securitization trust [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 
 
Financing Receivable, Significant Purchases
 
 
64,200,000 
 
Student loans receivable, gross
 
 
 
504,200,000 
Debt and Capital Lease Obligations
28,070,423,000 
28,027,350,000 
 
448,900,000 
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums
 
 
 
20,700,000 
Debt Instrument, Unamortized Premium
 
 
 
$ 2,200,000 
Student Loans Receivable and Allowance for Loan Losses Allowance for Loan Losses (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
Allowance for loan losses - balance
$ 51,161 
$ 54,628 
$ 48,900 
$ 55,122 
Provision for loan losses
2,150 
1,500 
4,150 
4,000 
Charge-offs
(3,705)
(4,736)
(7,530)
(8,788)
Purchase (sale) of federally insured and private education loans, net
150 
(230)
250 
Allowance for loan losses - balance
50,024 
52,467 
50,024 
52,467 
Federally insured loans [Member]
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
Provision for loan losses
2,000 
2,000 
4,000 
5,000 
Charge-offs
(3,259)
(4,138)
(6,408)
(7,769)
Allowance for loan losses - balance
36,762 
40,921 
36,762 
40,921 
Private education loans [Member]
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
Provision for loan losses
150 
(500)
150 
(1,000)
Charge-offs
(446)
(598)
(1,122)
(1,019)
Recoveries - private education loans
238 
339 
492 
710 
Transfer from repurchase obligation related to private education loans purchased, net
180 
586 
4,242 
1,173 
Allowance for loan losses - balance
$ 13,262 
$ 11,546 
$ 13,262 
$ 11,546 
Student Loans Receivable and Allowance for Loan Losses Repurchase Obligations (Details) (USD $)
3 Months Ended 6 Months Ended
Mar. 31, 2015
Jun. 30, 2015
Dec. 31, 2014
Repurchase Obligation [Line Items]
 
 
 
Student loans receivable
 
$ 28,095,775,000 
$ 28,005,195,000 
Other liabilities
 
157,096,000 
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
 
57,000,000 
155,300,000 
Other liabilities
 
3,700,000 
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
6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Federally insured loans [Member]
 
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
 
Loans in-school/grace/deferment
$ 2,634,088 
$ 3,095,741 
$ 2,805,228 
Loans in forbearance
3,118,774 
3,593,891 
3,288,412 
Student loans receivable, gross
28,138,648 
29,512,115 
28,196,430 
Loans in repayment status:
 
 
 
Loans current
19,055,994 
19,164,660 
18,460,279 
Loans current, percentage
85.20% 
84.00% 
83.50% 
Total loans in repayment
22,385,786 
22,822,483 
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
5,268 
2,123 
905 
Loans in forbearance
142 
Student loans receivable, gross
175,202 
67,670 
27,478 
Loans in repayment status:
 
 
 
Loans current
161,355 
57,048 
18,390 
Loans current, percentage
95.00% 
87.10% 
69.20% 
Total loans in repayment
169,792 
65,547 
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
950,055 
1,026,046 
1,043,119 
Financing Receivable, Percent Past Due
4.20% 
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
1,407 
1,008 
1,078 
Financing Receivable, Percent Past Due
0.80% 
1.50% 
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
612,657 
674,918 
588,777 
Financing Receivable, Percent Past Due
2.70% 
3.00% 
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
1,647 
1,867 
1,035 
Financing Receivable, Percent Past Due
1.00% 
2.80% 
3.90% 
Financing receivables, 91-120 days past due [Member] |
Federally insured loans [Member]
 
 
 
Loans in repayment status:
 
 
 
Financing Receivable, Recorded Investment, Past Due
355,636 
376,068 
404,905 
Financing Receivable, Percent Past Due
1.60% 
1.50% 
1.80% 
Financing receivables, 121-270 days past due [Member] |
Federally insured loans [Member]
 
 
 
Loans in repayment status:
 
 
 
Financing Receivable, Recorded Investment, Past Due
1,051,843 
1,133,527 
1,204,405 
Financing Receivable, Percent Past Due
4.70% 
5.00% 
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
359,601 
447,264 
401,305 
Financing Receivable, Percent Past Due
1.60% 
2.00% 
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
$ 5,383 
$ 5,624 
$ 6,070 
Financing Receivable, Percent Past Due
3.20% 
8.60% 
22.80% 
Outstanding Debt Obligations (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Debt Instrument [Line Items]
 
 
Bonds and notes payable
$ 28,070,423 
$ 28,027,350 
Debt Instrument, Unamortized Discount (Premium), Net
372,085 
393,072 
Bonds and notes payable, gross [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
28,442,508 
28,420,422 
Variable-rate bonds and notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
26,925,620 
27,025,100 
Bonds and notes based on indices [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
25,754,105 
25,713,431 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.10% 
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
1,171,515 
1,311,669 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
1.06% 
0.47% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
2.09% 
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
1,190,705 
1,241,665 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.19% 
0.16% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
0.30% 
0.26% 
Debt Instrument, Maturity Date Range, Start
Jun. 11, 2017 
Jan. 17, 2016 
Debt Instrument, Maturity Date Range, End
Apr. 29, 2018 
Jun. 11, 2017 
warehouse facilities [Member] |
Private Loan Warehouse Total [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
89,265 
 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.31% 
   
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
0.31% 
   
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
100,000 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
1.69% 
0.00% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
1.69% 
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
3.66% 
3.63% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
3.66% 
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
$ 79,336 
$ 81,969 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
1.69% 
1.67% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
5.10% 
5.10% 
Debt Instrument, Maturity Date Range, Start
Nov. 11, 2015 
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 $)
6 Months Ended 0 Months Ended
Jun. 30, 2015
Unsecured Line of Credit [Member]
Jun. 30, 2015
warehouse facilities [Member]
FFELP Warehouse Total [Member]
Jun. 30, 2015
warehouse facilities [Member]
Private Loan Warehouse Total [Member]
Jun. 30, 2015
warehouse facilities [Member]
NHELP-III Warehouse [Member]
FFELP Warehouse Total [Member]
Jun. 30, 2015
warehouse facilities [Member]
NFSLW-I Warehouse [Member]
Warehouse terms at quarter end [Member]
FFELP Warehouse Total [Member]
Jun. 30, 2015
warehouse facilities [Member]
NHELP-II Warehouse [Member]
FFELP Warehouse Total [Member]
Jul. 10, 2015
Subsequent Event [Member]
warehouse facilities [Member]
NFSLW-I Warehouse [Member]
Warehouse terms as amended [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
Maximum financing amount
$ 350,000,000 
$ 2,000,000,000 
$ 275,000,000 
$ 750,000,000 1
$ 750,000,000 2
$ 500,000,000 
$ 875,000,000 
Amount outstanding
100,000,000 
1,190,705,000 
89,300,000 
282,005,000 1
571,084,000 2
337,616,000 
 
Amount available
250,000,000 
809,295,000 
185,700,000 
467,995,000 1
178,916,000 2
162,384,000 
 
Expiration of liquidity provisions
 
 
Jun. 24, 2016 
Apr. 29, 2016 1
Jul. 30, 2015 2
Dec. 17, 2015 
Jul. 08, 2016 
Debt Instrument, Maturity Date
 
 
Dec. 26, 2016 
Apr. 29, 2018 1
Jun. 11, 2017 2
Dec. 17, 2017 
Jul. 09, 2018 
Maximum advance rates - range maximum
 
 
88.00% 
95.00% 1
98.00% 2
97.00% 
 
Minimum Advance Rates - range minimum
 
 
64.00% 
92.15% 1
84.00% 2
91.00% 
 
Minimum advance rates - range maximum
 
 
99.00% 
95.00% 1
90.00% 2
97.00% 
 
Maximum Advance Rates - range minimum
 
 
 
92.15% 1
92.00% 2
91.00% 
 
Advanced as equity support
 
53,770,000 
12,800,000 
7,751,000 1
27,211,000 2
18,808,000 
 
expected decrease in financing amount
 
 
 
 
 
 
$ 125,000,000 
Date of expected decrease in financing amount
 
 
 
 
 
 
Mar. 31, 2016 
Bonds and Notes Payable Asset-backed Securitizations (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 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
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
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
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
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
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 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Debt Instrument [Line Items]
 
 
 
 
Extinguishment of Debt, Amount
$ 24,401 
$ 200 
$ 36,252 
$ 1,550 
Repayments of Debt
22,886 
182 
32,213 
1,493 
Gain from debt repurchases
1,515 
18 
4,039 
57 
Unsecured Debt [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Extinguishment of Debt, Amount
2,255 
14,106 
Repayments of Debt
1,781 
11,108 
Gain from debt repurchases
474 
2,998 
Asset-backed Securities [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Extinguishment of Debt, Amount
22,146 
200 
22,146 
1,550 
Repayments of Debt
21,105 
182 
21,105 
1,493 
Gain from debt repurchases
$ 1,041 
$ 18 
$ 1,041 
$ 57 
Derivative Financial Instruments Outstanding (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Jun. 30, 2015
1:3 basis swaps [Member]
Dec. 31, 2014
1:3 basis swaps [Member]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 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]
Jun. 30, 2015
Interest rate swap option - floor income hedge [Member]
Dec. 31, 2014
Interest rate swap option - floor income hedge [Member]
Jun. 30, 2015
Interest Rate Cap [Member]
Jun. 30, 2015
Interest Rate Cap [Member]
Interest Rate Cap 1 [Member]
Jun. 30, 2015
Interest Rate Cap [Member]
Interest Rate Cap 2 [Member]
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Fixed Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.66% 
7.66% 
 
 
 
 
 
Increase (Decrease) in Financial Instruments Used in Operating Activities
$ 585 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 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
 
 
 
8.50% 
3.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
6,350,000 
7,800,000 
4,000,000 
250,000 
800,000 
1,900,000 
1,250,000 
3,650,000 
250,000 
300,000 
800,000 
100,000 
700,000 
150,000 
3,300,000 
3,100,000 
500,000 
1,100,000 
750,000 
750,000 
1,850,000 
1,250,000 
100,000 
100,000 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.87% 1
0.87% 1
0.71% 1
0.89% 1
0.85% 1
0.85% 1
0.83% 1
0.86% 1
1.02% 1
0.00% 1
2.32% 1
0.00% 1
4.28% 1
4.28% 1
 
 
 
 
 
Bonds and notes payable
$ 28,070,423 
 
$ 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
6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Dec. 31, 2014
USD ($)
Jun. 30, 2015
Currency Swap [Member]
USD ($)
Jun. 30, 2014
Currency Swap [Member]
USD ($)
Jun. 30, 2015
Currency Swap [Member]
USD ($)
Jun. 30, 2014
Currency Swap [Member]
USD ($)
Jun. 30, 2015
Currency Swap [Member]
EUR (€)
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
 
Bonds and notes payable
$ 28,070,423 
 
$ 28,027,350 
 
 
 
 
€ 352,700 
Derivative, Notional Amount
 
 
 
450,000 
 
450,000 
 
352,700 
Re-measurement of Euro Notes
 
 
 
(14,671)
2,751 
33,538 
1,798 
 
Change in fair value of cross currency interest rate swaps
(19,457)
7,950 
 
13,933 
(2,999)
(35,873)
(3,037)
 
Total impact to statements of income - income (expense)
 
 
 
$ (738)1
$ (248)1
$ (2,335)1
$ (1,239)1
 
Derivative Financial Instruments Fair Value of Derivative Instruments (Details) (USD $)
6 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
$ 30,216,000 
$ 64,392,000 
Fair value of derivative instruments, liability
67,133,000 
32,842,000 
1:3 basis swaps [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
14,071,000 
53,549,000 
Fair value of derivative instruments, liability
71,000 
notional amount of terminated derivatives
5,500,000,000 
 
Proceeds to terminate and or amend derivative instruments
51,900,000 
 
Interest rate swaps - floor income hedges [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
7,262,000 
5,165,000 
Fair value of derivative instruments, liability
4,470,000 
5,034,000 
Interest rate swap option - floor income hedge [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
6,148,000 
5,678,000 
Fair value of derivative instruments, liability
Interest rate swaps - hybrid debt hedges [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
Fair value of derivative instruments, liability
6,264,000 
7,353,000 
Interest Rate Cap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
2,735,000 
Fair value of derivative instruments, liability
Cross-currency interest rate swaps [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
Fair value of derivative instruments, liability
$ 56,328,000 
$ 20,455,000 
Derivative Financial Instruments Gross/Net (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
$ 30,216 
$ 64,392 
Fair value of derivative instruments, liability
67,133 
32,842 
Derivative Financial Instruments, Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
30,216 
64,392 
Derivatives subject to enforceable master netting arrangement, asset
(6,801)
(12,387)
Cash collateral pledged
2,046 
Fair value of derivative instruments, asset, net
25,461 
52,005 
Derivative Financial Instruments, Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, liability
67,133 
32,842 
Derivatives subject to enforceable master netting arrangement, liability
6,801 
12,387 
Cash collateral received
(9,091)
(1,454)
Fair value of derivative instruments, liability, net
$ 69,423 
$ 21,909 
Derivative Financial Instruments Income Statement Effect of Derivative Instruments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
$ (5,442)
$ (6,214)
$ (10,657)
$ (12,443)
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(5,442)
(6,214)
(10,657)
(12,443)
Change in fair value
26,615 
5,033 
(19,457)
7,950 
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
(14,671)
2,751 
33,538 
1,798 
Derivative market value and foreign currency adjustments and derivative settlements - income (expense)
6,502 
1,570 
3,424 
(2,695)
1:3 basis swaps [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
123 
858 
389 
1,739 
Change in fair value
1,428 
11,910 
12,398 
13,020 
Interest rate swaps - floor income hedges [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(5,019)
(6,974)
(10,034)
(13,924)
Change in fair value
7,534 
(2,813)
2,662 
545 
Interest rate swap option - floor income hedges [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Change in fair value
1,381 
470 
Interest rate swaps - hybrid debt hedges [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(253)
(256)
(505)
(508)
Change in fair value
2,540 
(1,065)
1,087 
(2,578)
Interest Rate Cap [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Change in fair value
(201)
(201)
Cross-currency interest rate swaps [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(293)
158 
(507)
250 
Change in fair value
$ 13,933 
$ (2,999)
$ (35,873)
$ (3,037)
Investments and Notes Receivable Summary (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Investment Holdings [Line Items]
 
 
Investments and notes receivable
$ 245,748 
$ 235,709 
Investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
117,770 
149,123 
Investments [Member] |
Available-for-sale investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
93,038 
133,142 
Gross unrealized gains
5,871 
8,420 
Gross unrealized losses
(666)1
(269)
Investments, Fair Value Disclosure
98,243 
141,293 
Investments [Member] |
Available-for-sale investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
92,192 2
131,589 2
Gross unrealized gains
4,137 2
6,204 2
Gross unrealized losses
(608)1 2
(236)2
Investments, Fair Value Disclosure
95,721 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
1,734 
2,216 
Gross unrealized losses
(58)1
(33)
Investments, Fair Value Disclosure
2,522 
3,736 
Investments [Member] |
Trading investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
19,527 
7,830 
Investments [Member] |
Trading investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
6,443 
7,830 
Investments [Member] |
Trading investments [Member] |
Equity securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
13,084 
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
82,281 
36,991 
Other Investments and Notes Receivable (not measured at fair value) [Member] |
Notes Receivable [Member]
 
 
Investment Holdings [Line Items]
 
 
Other Investments
31,321 
30,643 
Other Investments and Notes Receivable (not measured at fair value) [Member] |
Other Investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Other Investments
$ 14,376 
$ 18,952 
Intangible Assets Intangible Assets (Details) (USD $)
6 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
Weighted average remaining useful life (months)
180 months 
 
Finite-Lived Intangible Assets, Net
$ 37,784,000 
$ 42,582,000 
Customer Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Accumulated Amortization
20,278,000 
17,361,000 
Weighted average remaining useful life (months)
213 months 
 
Finite-Lived Intangible Assets, Net
24,413,000 
27,330,000 
Trade Names [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Accumulated Amortization
534,000 
272,000 
Weighted average remaining useful life (months)
227 months 
 
Finite-Lived Intangible Assets, Net
5,888,000 
6,150,000 
Computer Software, Intangible Asset [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Accumulated Amortization
3,048,000 
1,896,000 
Weighted average remaining useful life (months)
37 months 
 
Finite-Lived Intangible Assets, Net
5,817,000 
6,969,000 
Media Content [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Accumulated Amortization
450,000 
Weighted average remaining useful life (months)
18 months 
 
Finite-Lived Intangible Assets, Net
1,350,000 
1,800,000 
Covenants not to compete [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Accumulated Amortization
38,000 
21,000 
Weighted average remaining useful life (months)
107 months 
 
Finite-Lived Intangible Assets, Net
$ 316,000 
$ 333,000 
Intangible Assets Amortization Expense (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
 
 
 
 
 
Amortization of Intangible Assets
$ 2,400,000 
$ 1,400,000 
$ 4,800,000 
$ 2,400,000 
 
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year
4,797,000 
 
4,797,000 
 
 
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
$ 37,784,000 
 
$ 37,784,000 
 
$ 42,582,000 
Intangible Assets Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Goodwill [Line Items]
 
Goodwill
$ 126,200 
Goodwill, Acquired During Period
Goodwill
126,200 
Student Loan and Guaranty Servicing [Member]
 
Goodwill [Line Items]
 
Goodwill
8,596 
Goodwill, Acquired During Period
Goodwill
8,596 
Tuition Payment Processing and Campus Commerce [Member]
 
Goodwill [Line Items]
 
Goodwill
67,168 
Goodwill, Acquired During Period
Goodwill
67,168 
Asset Generation and Management [Member]
 
Goodwill [Line Items]
 
Goodwill
41,883 
Goodwill, Acquired During Period
Goodwill
41,883 
Corporate and Other Activities [Member]
 
Goodwill [Line Items]
 
Goodwill
8,553 
Goodwill, Acquired During Period
Goodwill
$ 8,553 
Earnings per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 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
Net income attributable to Nelnet, Inc.
$ 70,909 
$ 74,994 
$ 135,674 
$ 148,780 
Weighted average common shares outstanding - basic and diluted
45,946,415 
46,529,377 
46,127,207 
46,528,651 
Earnings per share - basic and diluted
$ 1.54 
$ 1.61 
$ 2.94 
$ 3.20 
Common shareholders [Member]
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income attributable to Nelnet, Inc.
70,146 
74,263 
134,227 
147,388 
Weighted average common shares outstanding - basic and diluted
45,451,888 
46,075,869 
45,635,155 
46,093,314 
Earnings per share - basic and diluted
$ 1.54 
$ 1.61 
$ 2.94 
$ 3.20 
Unvested restricted stock shareholders [Member]
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income attributable to Nelnet, Inc.
$ 763 
$ 731 
$ 1,447 
$ 1,392 
Weighted average common shares outstanding - basic and diluted
494,527 
453,508 
492,052 
435,337 
Earnings per share - basic and diluted
$ 1.54 
$ 1.61 
$ 2.94 
$ 3.20 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
$ 177,722 
$ 176,948 
$ 351,871 
$ 335,823 
Interest expense
72,626 
69,235 
144,180 
129,239 
Net interest income
105,096 
107,713 
207,691 
206,584 
Less provision for loan losses
2,150 
1,500 
4,150 
4,000 
Net interest income after provision for loan losses
102,946 
106,213 
203,541 
202,584 
Loan and guaranty servicing revenue
63,833 
66,460 
121,644 
131,217 
Intersegment servicing revenue
Tuition payment processing, school information, and campus commerce revenue
27,686 
21,834 
62,366 
47,069 
Enrollment services revenue
17,161 
20,145 
35,024 
42,156 
Other income
7,504 
15,315 
14,422 
33,446 
Gain on sale of loans and debt repurchases
1,515 
18 
4,390 
57 
Derivative market value and foreign currency adjustments, net
11,944 
7,784 
14,081 
9,748 
Derivative settlements, net
(5,442)
(6,214)
(10,657)
(12,443)
Total other income
124,201 
125,342 
241,270 
251,250 
Operating expenses:
 
 
 
 
Salaries and benefits
58,787 
53,888 
119,837 
106,372 
Cost to provide enrollment services
11,162 
13,311 
22,864 
27,786 
Loan servicing fees
7,420 
7,317 
15,036 
12,720 
Depreciation and amortization
6,501 
5,214 
12,163 
9,997 
Other
31,958 
33,060 
61,156 
63,284 
Intersegment expenses, net
Total operating expenses
115,828 
112,790 
231,056 
220,159 
Income (loss) before income taxes and corporate overhead allocation
111,319 
118,765 
213,755 
233,675 
Corporate overhead allocation
Income before income taxes
111,319 
118,765 
213,755 
233,675 
Income tax (expense) benefit
(40,356)
(43,078)
(77,986)
(83,689)
Net income
70,963 
75,687 
135,769 
149,986 
Net income attributable to noncontrolling interest
54 
693 
95 
1,206 
Net income attributable to Nelnet, Inc.
70,909 
74,994 
135,674 
148,780 
Student Loan and Guaranty Servicing [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
13 
20 
20 
Interest expense
Net interest income
13 
20 
20 
Less provision for loan losses
Net interest income after provision for loan losses
13 
20 
20 
Loan and guaranty servicing revenue
63,833 
66,460 
121,644 
131,217 
Intersegment servicing revenue
12,223 
13,800 
25,094 
28,021 
Tuition payment processing, school information, and campus commerce revenue
Enrollment services revenue
Other income
Gain on sale of loans and debt repurchases
Derivative market value and foreign currency adjustments, net
Derivative settlements, net
Total other income
76,056 
80,260 
146,738 
159,238 
Operating expenses:
 
 
 
 
Salaries and benefits
31,585 
30,082 
65,288 
59,481 
Cost to provide enrollment services
Loan servicing fees
Depreciation and amortization
527 
438 
973 
857 
Other
15,376 
16,975 
29,976 
32,625 
Intersegment expenses, net
11,566 
9,356 
21,266 
18,519 
Total operating expenses
59,054 
56,851 
117,503 
111,482 
Income (loss) before income taxes and corporate overhead allocation
17,015 
23,418 
29,255 
47,776 
Corporate overhead allocation
(2,294)
(2,060)
(4,447)
(3,920)
Income before income taxes
14,721 
21,358 
24,808 
43,856 
Income tax (expense) benefit
(5,594)
(8,116)
(9,428)
(16,665)
Net income
9,127 
13,242 
15,380 
27,191 
Net income attributable to noncontrolling interest
Net income attributable to Nelnet, Inc.
9,127 
13,242 
15,380 
27,191 
Tuition Payment Processing and Campus Commerce [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
Interest expense
Net interest income
Less provision for loan losses
Net interest income after provision for loan losses
Loan and guaranty servicing revenue
Intersegment servicing revenue
Tuition payment processing, school information, and campus commerce revenue
27,686 
21,834 
62,366 
47,069 
Enrollment services revenue
Other income
Gain on sale of loans and debt repurchases
Derivative market value and foreign currency adjustments, net
Derivative settlements, net
Total other income
27,686 
21,834 
62,366 
47,069 
Operating expenses:
 
 
 
 
Salaries and benefits
13,583 
11,112 
26,904 
21,139 
Cost to provide enrollment services
Loan servicing fees
Depreciation and amortization
2,195 
1,845 
4,390 
3,273 
Other
4,112 
2,956 
7,914 
5,603 
Intersegment expenses, net
2,785 
1,404 
5,399 
2,824 
Total operating expenses
22,675 
17,317 
44,607 
32,839 
Income (loss) before income taxes and corporate overhead allocation
5,012 
4,520 
17,762 
14,233 
Corporate overhead allocation
(918)
(687)
(1,780)
(1,307)
Income before income taxes
4,094 
3,833 
15,982 
12,926 
Income tax (expense) benefit
(1,556)
(1,456)
(6,074)
(4,911)
Net income
2,538 
2,377 
9,908 
8,015 
Net income attributable to noncontrolling interest
Net income attributable to Nelnet, Inc.
2,538 
2,377 
9,908 
8,015 
Asset Generation and Management [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
176,279 
175,562 
348,702 
332,565 
Interest expense
71,441 
67,936 
141,981 
127,412 
Net interest income
104,838 
107,626 
206,721 
205,153 
Less provision for loan losses
2,150 
1,500 
4,150 
4,000 
Net interest income after provision for loan losses
102,688 
106,126 
202,571 
201,153 
Loan and guaranty servicing revenue
Intersegment servicing revenue
Tuition payment processing, school information, and campus commerce revenue
Enrollment services revenue
Other income
3,950 
4,496 
8,526 
8,660 
Gain on sale of loans and debt repurchases
1,041 
18 
1,392 
57 
Derivative market value and foreign currency adjustments, net
9,404 
8,848 
12,994 
12,325 
Derivative settlements, net
(5,189)
(5,958)
(10,152)
(11,935)
Total other income
9,206 
7,404 
12,760 
9,107 
Operating expenses:
 
 
 
 
Salaries and benefits
524 
570 
1,065 
1,179 
Cost to provide enrollment services
Loan servicing fees
7,420 
7,317 
15,036 
12,720 
Depreciation and amortization
Other
1,270 
1,528 
2,407 
3,271 
Intersegment expenses, net
12,398 
13,968 
25,438 
28,339 
Total operating expenses
21,612 
23,383 
43,946 
45,509 
Income (loss) before income taxes and corporate overhead allocation
90,282 
90,147 
171,385 
164,751 
Corporate overhead allocation
(1,147)
(1,249)
(2,225)
(2,578)
Income before income taxes
89,135 
88,898 
169,160 
162,173 
Income tax (expense) benefit
(33,871)
(33,781)
(64,280)
(61,625)
Net income
55,264 
55,117 
104,880 
100,548 
Net income attributable to noncontrolling interest
Net income attributable to Nelnet, Inc.
55,264 
55,117 
104,880 
100,548 
Corporate and Other Activities [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
1,814 
2,036 
3,967 
4,694 
Interest expense
1,570 
1,961 
3,020 
3,286 
Net interest income
244 
75 
947 
1,408 
Less provision for loan losses
Net interest income after provision for loan losses
244 
75 
947 
1,408 
Loan and guaranty servicing revenue
Intersegment servicing revenue
Tuition payment processing, school information, and campus commerce revenue
Enrollment services revenue
17,161 
20,145 
35,024 
42,156 
Other income
3,554 
10,819 
5,896 
24,786 
Gain on sale of loans and debt repurchases
474 
2,998 
Derivative market value and foreign currency adjustments, net
2,540 
(1,064)
1,087 
(2,577)
Derivative settlements, net
(253)
(256)
(505)
(508)
Total other income
23,476 
29,644 
44,500 
63,857 
Operating expenses:
 
 
 
 
Salaries and benefits
13,095 
12,124 
26,580 
24,573 
Cost to provide enrollment services
11,162 
13,311 
22,864 
27,786 
Loan servicing fees
 
Depreciation and amortization
3,779 
2,931 
6,800 
5,867 
Other
11,200 
11,601 
20,859 
21,785 
Intersegment expenses, net
(14,526)
(10,928)
(27,009)
(21,661)
Total operating expenses
24,710 
29,039 
50,094 
58,350 
Income (loss) before income taxes and corporate overhead allocation
(990)
680 
(4,647)
6,915 
Corporate overhead allocation
4,359 
3,996 
8,452 
7,805 
Income before income taxes
3,369 
4,676 
3,805 
14,720 
Income tax (expense) benefit
665 
275 
1,796 
(488)
Net income
4,034 
4,951 
5,601 
14,232 
Net income attributable to noncontrolling interest
54 
693 
95 
1,206 
Net income attributable to Nelnet, Inc.
3,980 
4,258 
5,506 
13,026 
Eliminations [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
(385)
(662)
(821)
(1,459)
Interest expense
(385)
(662)
(821)
(1,459)
Net interest income
Less provision for loan losses
Net interest income after provision for loan losses
Loan and guaranty servicing revenue
Intersegment servicing revenue
(12,223)
(13,800)
(25,094)
(28,021)
Tuition payment processing, school information, and campus commerce revenue
Enrollment services revenue
Other income
Gain on sale of loans and debt repurchases
Derivative market value and foreign currency adjustments, net
Derivative settlements, net
Total other income
(12,223)
(13,800)
(25,094)
(28,021)
Operating expenses:
 
 
 
 
Salaries and benefits
Cost to provide enrollment services
Loan servicing fees
Depreciation and amortization
Other
Intersegment expenses, net
(12,223)
(13,800)
(25,094)
(28,021)
Total operating expenses
(12,223)
(13,800)
(25,094)
(28,021)
Income (loss) before income taxes and corporate overhead allocation
Corporate overhead allocation
Income before income taxes
Income tax (expense) benefit
Net income
Net income attributable to noncontrolling interest
Net income attributable to Nelnet, Inc.
$ 0 
$ 0 
$ 0 
$ 0 
Major Customer (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 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
$ 33.6 
$ 31.0 
$ 66.0 
$ 60.9 
Assets and Liabilities that are Measured at Fair Value (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
$ 117,770 
$ 149,123 
Fair value of derivative instruments
30,216 
64,392 
Total assets
147,986 
213,515 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
67,133 
32,842 
Total liabilities
67,133 
32,842 
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
101,821 
145,000 
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
15,606 
3,736 
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
343 
387 
Level 1 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
15,949 
4,123 
Fair value of derivative instruments
Total assets
15,949 
4,123 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
Total liabilities
Level 1 [Member] |
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
Level 1 [Member] |
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
15,606 
3,736 
Level 1 [Member] |
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
343 
387 
Level 2 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
101,821 
145,000 
Fair value of derivative instruments
30,216 
64,392 
Total assets
132,037 
209,392 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
67,133 
32,842 
Total liabilities
67,133 
32,842 
Level 2 [Member] |
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
101,821 
145,000 
Level 2 [Member] |
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
Level 2 [Member] |
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments, Fair Value Disclosure
$ 0 
$ 0 
Fair Value of Financial Instruments (Details) (USD $)
Jun. 30, 2015
Dec. 31, 2014
Jun. 30, 2014
Dec. 31, 2013
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
$ 28,095,775,000 
$ 28,005,195,000 
 
 
Cash and cash equivalents
182,280,000 
130,481,000 
92,099,000 
63,267,000 
Investments (available-for-sale and trading)
245,748,000 
235,709,000 
 
 
Restricted cash - due to customers
117,820,000 
118,488,000 
 
 
Accrued interest receivable
364,211,000 
351,588,000 
 
 
Derivative instruments
30,216,000 
64,392,000 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
28,070,423,000 
28,027,350,000 
 
 
Accrued interest payable
28,859,000 
25,904,000 
 
 
Due to customers
117,820,000 
118,488,000 
 
 
Derivative instruments
67,133,000 
32,842,000 
 
 
Fair value [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
28,824,415,000 
28,954,226,000 
 
 
Cash and cash equivalents
182,280,000 
130,481,000 
 
 
Investments (available-for-sale and trading)
117,770,000 
149,123,000 
 
 
Notes Receivable
28,644,000 
28,832,000 
 
 
Restricted cash
848,479,000 
800,164,000 
 
 
Restricted cash - due to customers
117,820,000 
118,488,000 
 
 
Restricted investments
9,374,000 
50,276,000 
 
 
Accrued interest receivable
364,211,000 
351,588,000 
 
 
Derivative instruments
30,216,000 
64,392,000 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
27,661,342,000 
27,809,997,000 
 
 
Accrued interest payable
28,859,000 
25,904,000 
 
 
Due to customers
117,820,000 
118,488,000 
 
 
Derivative instruments
67,133,000 
32,842,000 
 
 
Fair value [Member] |
Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
 
 
Cash and cash equivalents
182,280,000 
130,481,000 
 
 
Investments (available-for-sale and trading)
15,949,000 
4,123,000 
 
 
Notes Receivable
 
 
Restricted cash
848,479,000 
800,164,000 
 
 
Restricted cash - due to customers
117,820,000 
118,488,000 
 
 
Restricted investments
9,374,000 
50,276,000 
 
 
Accrued interest receivable
 
 
Derivative instruments
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
 
 
Accrued interest payable
 
 
Due to customers
117,820,000 
118,488,000 
 
 
Derivative instruments
 
 
Fair value [Member] |
Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
 
 
Cash and cash equivalents
 
 
Investments (available-for-sale and trading)
101,821,000 
145,000,000 
 
 
Notes Receivable
28,644,000 
28,832,000 
 
 
Restricted cash
 
 
Restricted cash - due to customers
 
 
Restricted investments
 
 
Accrued interest receivable
364,211,000 
351,588,000 
 
 
Derivative instruments
30,216,000 
64,392,000 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
27,661,342,000 
27,809,997,000 
 
 
Accrued interest payable
28,859,000 
25,904,000 
 
 
Due to customers
 
 
Derivative instruments
67,133,000 
32,842,000 
 
 
Fair value [Member] |
Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
28,824,415,000 
28,954,226,000 
 
 
Cash and cash equivalents
 
 
Investments (available-for-sale and trading)
 
 
Notes Receivable
 
 
Restricted cash
 
 
Restricted cash - due to customers
 
 
Restricted investments
 
 
Accrued interest receivable
 
 
Derivative instruments
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
 
 
Accrued interest payable
 
 
Due to customers
 
 
Derivative instruments
 
 
Carrying value [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
28,095,775,000 
28,005,195,000 
 
 
Cash and cash equivalents
182,280,000 
130,481,000 
 
 
Investments (available-for-sale and trading)
117,770,000 
149,123,000 
 
 
Notes Receivable
31,321,000 
30,643,000 
 
 
Restricted cash
848,479,000 
800,164,000 
 
 
Restricted cash - due to customers
117,820,000 
118,488,000 
 
 
Restricted investments
9,374,000 
50,276,000 
 
 
Accrued interest receivable
364,211,000 
351,588,000 
 
 
Derivative instruments
30,216,000 
64,392,000 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
28,070,423,000 
28,027,350,000 
 
 
Accrued interest payable
28,859,000 
25,904,000 
 
 
Due to customers
117,820,000 
118,488,000 
 
 
Derivative instruments
$ 67,133,000 
$ 32,842,000 
 
 
Legal Proceedings (Details) (Pending Litigation [Member], Grant Keating v. Peterson's Nelnet, LLC et al [Member], USD $)
6 Months Ended
Jun. 30, 2015
Pending Litigation [Member] |
Grant Keating v. Peterson's Nelnet, LLC et al [Member]
 
Loss Contingencies [Line Items]
 
Loss contingency, damages sought, value
$ 500 
Loss Contingency, Actions Taken by Court, Arbitrator or Mediator
On July 21, 2015, the Circuit Court of Appeals affirmed the District Court’s judgment in favor of the Keating Defendants, resulting in the dismissal of the case.  
Subsequent event Subsequent events (Details) (Subsequent Event [Member], USD $)
In Thousands, unless otherwise specified
Aug. 3, 2015
Subsequent Event [Member]
 
Subsequent Event [Line Items]
 
Purchase of Student loans receivable, gross
$ 1,500,000