NELNET INC, 10-Q filed on 11/8/2021
Quarterly Report
v3.21.2
Cover Page - shares
9 Months Ended
Sep. 30, 2021
Oct. 31, 2021
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2021  
Document Transition Report false  
Entity File Number 001-31924  
Entity Registrant Name NELNET, INC.  
Entity Incorporation, State or Country Code NE  
Entity Tax Identification Number 84-0748903  
Entity Address, Address Line One 121 South 13th Street, Suite 100  
Entity Address, City or Town Lincoln,  
Entity Address, State or Province NE  
Entity Address, Postal Zip Code 68508  
City Area Code 402  
Local Phone Number 458-2370  
Title of 12(b) Security Class A Common Stock, Par Value $0.01 per Share  
Trading Symbol NNI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Current Fiscal Year End Date --12-31  
Amendment Flag false  
Entity Central Index Key 0001258602  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q3  
Common Class A    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   27,560,397
Common Class B    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   10,681,454
v3.21.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Assets:    
Loans and accrued interest receivable (net of allowance for loan losses of $138,044 and $175,698, respectively) $ 19,304,203 $ 20,185,656
Cash and cash equivalents:    
Cash and cash equivalents - not held at a related party 31,966 33,292
Cash and cash equivalents - held at a related party 159,970 87,957
Total cash and cash equivalents 191,936 121,249
Investments 1,374,913 992,940
Restricted cash 764,089 553,175
Restricted cash - due to customers 295,053 283,971
Accounts receivable (net of allowance for doubtful accounts of $1,458 and $1,824, respectively) 78,508 76,460
Goodwill 142,092 142,092
Intangible assets, net 55,176 75,070
Property and equipment, net 117,296 123,527
Other assets 79,473 92,020
Total assets 22,402,739 22,646,160
Liabilities:    
Bonds and notes payable 18,610,748 19,320,726
Accrued interest payable 4,441 28,701
Bank deposits 200,651 54,633
Other liabilities 375,393 312,280
Due to customers 354,543 301,471
Total liabilities 19,545,776 20,017,811
Commitments and contingencies
Nelnet, Inc. shareholders' equity:    
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding 0 0
Common stock:    
Additional paid-in capital 1,593 3,794
Retained earnings 2,843,799 2,621,762
Accumulated other comprehensive earnings, net 13,479 6,102
Total Nelnet, Inc. shareholders' equity 2,859,254 2,632,042
Noncontrolling interests (2,291) (3,693)
Total equity 2,856,963 2,628,349
Total liabilities and equity 22,402,739 22,646,160
Variable Interest Entity, Primary Beneficiary    
Assets:    
Loans and accrued interest receivable (net of allowance for loan losses of $138,044 and $175,698, respectively) 19,032,669 20,132,996
Cash and cash equivalents:    
Restricted cash 699,143 499,223
Liabilities:    
Bonds and notes payable 18,465,230 19,355,375
Common stock:    
Accrued interest payable and other liabilities (66,913) (83,127)
Net assets of consolidated education and other lending variable interest entities 1,199,669 1,193,717
Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 27,556,370 shares and 27,193,154 shares, respectively    
Common stock:    
Common stock 276 272
Class B, convertible, $0.01 par value. Authorized 60,000,000 shares; issued and outstanding 10,681,454 shares and 11,155,571 shares, respectively    
Common stock:    
Common stock $ 107 $ 112
v3.21.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Allowance for loan losses $ 138,044 $ 175,698
Allowance for doubtful accounts $ 1,458 $ 1,824
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized shares (in shares) 50,000,000 50,000,000
Preferred stock, issued shares (in shares) 0 0
Preferred stock, outstanding shares (in shares) 0 0
Common Class A    
Par value (in dollars per share) $ 0.01 $ 0.01
Shares authorized (in shares) 600,000,000 600,000,000
Shares issued (in shares) 27,556,370 27,193,154
Shares outstanding (in shares) 27,556,370 27,193,154
Common Class B    
Par value (in dollars per share) $ 0.01 $ 0.01
Shares authorized (in shares) 60,000,000 60,000,000
Shares issued (in shares) 10,681,454 11,155,571
Shares outstanding (in shares) 10,681,454 11,155,571
v3.21.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Interest income:        
Loan interest $ 124,096 $ 134,507 $ 370,219 $ 462,439
Investment interest 12,558 5,238 29,122 18,379
Total interest income 136,654 139,745 399,341 480,818
Interest expense:        
Interest on bonds and notes payable and bank deposits 50,176 58,423 127,939 277,788
Net interest income 86,478 81,322 271,402 203,030
Less provision (negative provision) for loan losses 5,827 (5,821) (10,847) 73,476
Net interest income after provision for loan losses 80,651 87,143 282,249 129,554
Other income/expense:        
Other 11,867 1,502 30,183 69,910
Gain on sale of loans 3,444 14,817 18,715 33,023
Impairment expense and provision for beneficial interests, net (14,159) 0 (12,223) (34,419)
Derivative market value adjustments and derivative settlements, net 1,351 1,049 28,868 (13,406)
Total other income/expense 200,178 225,494 658,788 667,169
Cost of services:        
Cost of services 31,335 31,157 80,063 80,664
Operating expenses:        
Salaries and benefits 128,592 126,096 363,351 365,220
Depreciation and amortization 15,710 30,308 56,129 87,349
Other expenses 38,324 34,744 107,611 115,184
Total operating expenses 182,626 191,148 527,091 567,753
Income before income taxes 66,868 90,332 333,883 148,306
Income tax expense 15,649 19,156 76,747 30,286
Net income 51,219 71,176 257,136 118,020
Net loss (income) attributable to noncontrolling interests 1,919 327 3,467 (568)
Net income attributable to Nelnet, Inc. $ 53,138 $ 71,503 $ 260,603 $ 117,452
Earnings per common share:        
Net income attributable to Nelnet, Inc. shareholders - basic (in dollars per share) $ 1.38 $ 1.86 $ 6.74 $ 2.99
Net income attributable to Nelnet, Inc. shareholders - diluted (in dollars per share) $ 1.38 $ 1.86 $ 6.74 $ 2.99
Weighted-average common shares outstanding - basic (in shares) 38,595,721 38,538,476 38,646,892 39,229,932
Weighted-average common shares outstanding - diluted (in shares) 38,595,721 38,538,476 38,646,892 39,229,932
Loan servicing and systems        
Other income/expense:        
Revenue $ 112,351 $ 113,794 $ 335,961 $ 337,571
Education technology, services, and payment processing        
Other income/expense:        
Revenue 85,324 74,121 257,284 217,100
Cost of services:        
Cost of services 31,335 25,243 80,063 63,424
Communications services        
Other income/expense:        
Revenue 0 20,211 0 57,390
Cost of services:        
Cost of services $ 0 $ 5,914 $ 0 $ 17,240
v3.21.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Statement of Comprehensive Income [Abstract]        
Net income $ 51,219 $ 71,176 $ 257,136 $ 118,020
Other comprehensive income:        
Net changes related to foreign currency translation adjustments (9) 0 (9) 0
Net changes related to available-for-sale debt securities:        
Unrealized gains during period, net 4,524 1,893 11,770 2,114
Reclassification of gains to net income, net (1,173) (513) (2,052) (390)
Income tax effect (804) (329) (2,332) (412)
Unrealized gains (losses) during period after reclassifications and tax 2,547 1,051 7,386 1,312
Other comprehensive income 2,538 1,051 7,377 1,312
Comprehensive income 53,757 72,227 264,513 119,332
Comprehensive loss (income) attributable to noncontrolling interests 1,919 327 3,467 (568)
Comprehensive income attributable to Nelnet, Inc. $ 55,676 $ 72,554 $ 267,980 $ 118,764
v3.21.2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Cumulative Effect, Period Of Adoption, Adjustment
Preferred stock
Common stock
Common Class A
Common stock
Common Class B
Additional paid-in capital
 Retained earnings
 Retained earnings
Cumulative Effect, Period Of Adoption, Adjustment
Accumulated other comprehensive earnings, net
Noncontrolling interests
Beginning balance (in shares) at Dec. 31, 2019     0 28,458,495 11,271,609          
Beginning balance at Dec. 31, 2019 $ 2,391,094 $ (18,867) $ 0 $ 285 $ 113 $ 5,715 $ 2,377,627 $ (18,867) $ 2,972 $ 4,382
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Issuance of noncontrolling interests 66                 66
Net income (loss) 118,020           117,452     568
Other comprehensive income (loss) 1,312               1,312  
Distribution to noncontrolling interests (920)                 (920)
Cash dividend on Class A and Class B common stock (23,343)           (23,343)      
Issuance of common stock, net of forfeitures (in shares)       196,407            
Issuance of common stock, net of forfeitures 5,155     $ 2   5,153        
Compensation expense for stock based awards 5,459         5,459        
Repurchase of common stock (in shares)       (1,591,314)            
Repurchase of common stock (73,145)     $ (16)   (14,623) (58,506)      
Conversion of common stock (in shares)       100,000 (100,000)          
Conversion of common stock 0     $ 1 $ (1)          
Acquisition of noncontrolling interest (2,000)           (1,250)     (750)
Ending balance (in shares) at Sep. 30, 2020     0 27,163,588 11,171,609          
Ending balance at Sep. 30, 2020 2,402,831   $ 0 $ 272 $ 112 1,704 2,393,113   4,284 3,346
Beginning balance (in shares) at Jun. 30, 2020     0 27,232,836 11,171,609          
Beginning balance at Jun. 30, 2020 2,340,786   $ 0 $ 272 $ 112 1,867 2,331,312   3,233 3,990
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Issuance of noncontrolling interests 14                 14
Net income (loss) 71,176           71,503     (327)
Other comprehensive income (loss) 1,051               1,051  
Distribution to noncontrolling interests (331)                 (331)
Cash dividend on Class A and Class B common stock (7,664)           (7,664)      
Issuance of common stock, net of forfeitures (in shares)       24,132            
Issuance of common stock, net of forfeitures 553         553        
Compensation expense for stock based awards 1,864         1,864        
Repurchase of common stock (in shares)       (93,380)            
Repurchase of common stock (4,618)     $ 0   (2,580) (2,038)      
Ending balance (in shares) at Sep. 30, 2020     0 27,163,588 11,171,609          
Ending balance at Sep. 30, 2020 2,402,831   $ 0 $ 272 $ 112 1,704 2,393,113   4,284 3,346
Beginning balance (in shares) at Dec. 31, 2020     0 27,193,154 11,155,571          
Beginning balance at Dec. 31, 2020 2,628,349   $ 0 $ 272 $ 112 3,794 2,621,762   6,102 (3,693)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Issuance of noncontrolling interests 11,823                 11,823
Net income (loss) 257,136           260,603     (3,467)
Other comprehensive income (loss) 7,377               7,377  
Distribution to noncontrolling interests (6,954)                 (6,954)
Cash dividend on Class A and Class B common stock (25,319)           (25,319)      
Issuance of common stock, net of forfeitures (in shares)       261,760            
Issuance of common stock, net of forfeitures 4,409     $ 3   4,406        
Compensation expense for stock based awards 7,628         7,628        
Repurchase of common stock (in shares)       (372,661)            
Repurchase of common stock (27,486)     $ (4)   (14,235) (13,247)      
Conversion of common stock (in shares)       474,117 (474,117)          
Conversion of common stock 0     $ 5 $ (5)          
Ending balance (in shares) at Sep. 30, 2021     0 27,556,370 10,681,454          
Ending balance at Sep. 30, 2021 2,856,963   $ 0 $ 276 $ 107 1,593 2,843,799   13,479 (2,291)
Beginning balance (in shares) at Jun. 30, 2021     0 27,494,942 11,054,171          
Beginning balance at Jun. 30, 2021 2,828,618   $ 0 $ 275 $ 111 10,158 2,812,315   10,941 (5,182)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Issuance of noncontrolling interests 4,935                 4,935
Net income (loss) 51,219           53,138     (1,919)
Other comprehensive income (loss) 2,538               2,538  
Distribution to noncontrolling interests (125)                 (125)
Cash dividend on Class A and Class B common stock (8,407)           (8,407)      
Issuance of common stock, net of forfeitures (in shares)       29,805            
Issuance of common stock, net of forfeitures 493         493        
Compensation expense for stock based awards 2,770         2,770        
Repurchase of common stock (in shares)       (341,094)            
Repurchase of common stock (25,078)     $ (3)   (11,828) (13,247)      
Conversion of common stock (in shares)       372,717 (372,717)          
Conversion of common stock 0     $ 4 $ (4)          
Ending balance (in shares) at Sep. 30, 2021     0 27,556,370 10,681,454          
Ending balance at Sep. 30, 2021 $ 2,856,963   $ 0 $ 276 $ 107 $ 1,593 $ 2,843,799   $ 13,479 $ (2,291)
v3.21.2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Common Class A        
Cash dividend on common stock (in dollars per share) $ 0.22 $ 0.2 $ 0.66 $ 0.6
Common Class B        
Cash dividend on common stock (in dollars per share) $ 0.22 $ 0.2 $ 0.66 $ 0.6
v3.21.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Net cash provided by operating activities:    
Net income attributable to Nelnet, Inc. $ 260,603 $ 117,452
Net (loss) income attributable to noncontrolling interests (3,467) 568
Net income 257,136 118,020
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs 113,651 149,175
Loan discount accretion (25,048) (27,814)
(Negative provision) provision for loan losses (10,847) 73,476
Derivative market value adjustments (44,455) 21,072
Proceeds from (payments to) clearinghouse - initial and variation margin, net 41,033 (20,405)
Gain from sale of loans (18,715) (33,023)
Gain from investments, net (293) (37,766)
Loss (gain) from repurchases of debt, net 3,964 (508)
Purchases of equity securities - trading, net (41,591) 0
Deferred income tax expense (benefit) 33,078 (10,975)
Non-cash compensation expense 7,824 5,538
Provision for beneficial interests and impairment expense, net 12,223 34,419
Increase in loan and investment accrued interest receivable (41,931) (27,192)
(Increase) decrease in accounts receivable (2,137) 45,475
Decrease in other assets, net 35,381 19,491
Decrease in the carrying amount of ROU asset 5,652 9,150
Decrease in accrued interest payable (24,260) (17,673)
Increase in other liabilities, net 41,040 32,733
Decrease in the carrying amount of lease liability (5,158) (8,484)
Increase (decrease) in due to customers 53,146 (151,674)
Net cash provided by operating activities 389,693 173,035
Cash flows from investing activities:    
Purchases and originations of loans (1,145,775) (1,032,636)
Purchases of loans from a related party (21,476) (75,118)
Net proceeds from loan repayments, claims, and capitalized interest 2,010,645 2,209,797
Proceeds from sale of loans 85,906 136,126
Purchases of available-for-sale securities (521,565) (221,427)
Proceeds from sales of available-for-sale securities 104,520 97,278
Proceeds from and sale of beneficial interest in loan securitizations 30,811 34,371
Purchases of other investments (166,664) (122,584)
Proceeds from other investments 209,634 8,528
Purchases of property and equipment (42,594) (80,698)
Net cash provided by investing activities 543,442 953,637
Cash flows from financing activities:    
Payments on bonds and notes payable (2,479,582) (2,803,214)
Proceeds from issuance of bonds and notes payable 1,738,405 1,460,524
Payments of debt issuance costs (6,778) (7,144)
Increase in bank deposits, net 146,018 0
Dividends paid (25,319) (23,343)
Repurchases of common stock (27,486) (73,145)
Proceeds from issuance of common stock 1,108 1,250
Acquisition of noncontrolling interest 0 (2,000)
Issuance of noncontrolling interests 13,905 0
Distribution to noncontrolling interests (548) (660)
Net cash used in financing activities (640,277) (1,447,732)
Effect of exchange rate changes on cash (175) 0
Net increase (decrease) in cash, cash equivalents, and restricted cash 292,683 (321,060)
Cash, cash equivalents, and restricted cash, beginning of period 958,395 1,222,601
Cash, cash equivalents, and restricted cash, end of period 1,251,078 901,541
Supplemental disclosures of cash flow information:    
Cash disbursements made for interest 117,336 259,120
Cash disbursements made for income taxes, net of refunds and credits received [1] 10,921 13,413
Cash disbursements made for operating leases 6,003 9,457
Non-cash operating, investing, and financing activity:    
ROU assets obtained in exchange for lease obligations 4,026 4,158
Receipt of beneficial interest in consumer loan securitizations 23,506 52,501
Distribution to noncontrolling interests 6,406 260
Issuance of noncontrolling interests $ 2,082 $ 0
[1] The Company utilized $22.2 million and $17.0 million of federal and state tax credits related primarily to renewable energy during the nine months ended September 30, 2021 and 2020, respectively.
v3.21.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2021
Sep. 30, 2020
Statement of Cash Flows [Abstract]    
Federal and state tax credit utilized $ 22,200 $ 17,000
Cash and cash equivalents:    
Total cash and cash equivalents 191,936 96,316
Restricted cash 764,089 519,143
Restricted cash - due to customers 295,053 286,082
Cash, cash equivalents, and restricted cash $ 1,251,078 $ 901,541
v3.21.2
Basis of Financial Reporting
9 Months Ended
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Financial Reporting Basis of Financial ReportingThe accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2020 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 ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results for the year ending December 31, 2021. 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, 2020 (the "2020 Annual Report").
v3.21.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses
9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Loans and Accrued Interest Receivable and Allowance for Loan Losses Loans and Accrued Interest Receivable and Allowance for Loan Losses
Loans and accrued interest receivable consisted of the following:
As ofAs of
 September 30, 2021December 31, 2020
Non-Nelnet Bank:
Federally insured student loans:
Stafford and other$4,142,059 4,383,000 
Consolidation13,939,429 14,746,173 
Total18,081,488 19,129,173 
Private education loans319,212 320,589 
Consumer loans36,994 109,346 
Non-Nelnet Bank loans18,437,694 19,559,108 
Nelnet Bank:
Federally insured student loans93,930 — 
Private education loans98,395 17,543 
Nelnet Bank loans192,325 17,543 
 
Accrued interest receivable834,831 794,611 
Loan discount, net of unamortized loan premiums and deferred origination costs(22,603)(9,908)
Allowance for loan losses:
Non-Nelnet Bank:
Federally insured loans(115,859)(128,590)
Private education loans(17,053)(19,529)
Consumer loans(4,429)(27,256)
Non-Nelnet Bank allowance for loan losses(137,341)(175,375)
Nelnet Bank:
Federally insured loans(289)— 
Private education loans(414)(323)
Nelnet Bank allowance for loan losses(703)(323)
 $19,304,203 20,185,656 
On May 14, 2021 and September 29, 2021, the Company sold $77.4 million (par value) and $18.4 million (par value) of consumer loans, respectively, to an unrelated third party who securitized such loans. The Company recognized a gain of $15.3 million (pre-tax) and $3.2 million (pre-tax), respectively, as part of these transactions. As partial consideration received for the consumer loans sold, the Company received a 24.5 percent and 6.9 percent residual interest, respectively, in the consumer loan securitizations that are included in "investments" on the Company's consolidated balance sheet.
Activity in the Allowance for Loan Losses
The following table presents the activity in the allowance for loan losses by portfolio segment.
Balance at beginning of periodImpact of ASC 326 adoptionProvision (negative provision) for loan lossesCharge-offsRecoveriesInitial allowance on loans purchased with credit deterioration (a)Loan salesBalance at end of period
Three months ended September 30, 2021
Non-Nelnet Bank
Federally insured loans$120,802 — 4,452 (10,330)— 935 — 115,859 
Private education loans19,403 — (1,208)(954)113 — (301)17,053 
Consumer loans4,702 — 2,696 (1,133)187 — (2,023)4,429 
Nelnet Bank
Federally insured loans245 — 44 — — — — 289 
Private education loans567 — (157)— — — 414 
$145,719 — 5,827 (12,417)304 935 (2,324)138,044 
Three months ended September 30, 2020
Non-Nelnet Bank
Federally insured loans$144,829 — (5,299)(2,487)— 2,900 — 139,943 
Private education loans25,535 — (5,650)(5)133 — — 20,013 
Consumer loans39,081 — 5,128 (2,723)381 — (15,924)25,943 
$209,445 — (5,821)(5,215)514 2,900 (15,924)185,899 
Nine months ended September 30, 2021
Non-Nelnet Bank
Federally insured loans$128,590 — (3,428)(11,563)— 2,260 — 115,859 
Private education loans19,529 — (781)(1,850)454 — (299)17,053 
Consumer loans27,256 — (7,016)(4,547)668 — (11,932)4,429 
Nelnet Bank
Federally insured loans— — 289 — — — — 289 
Private education loans323 — 89 — — (2)414 
$175,698 — (10,847)(17,960)1,126 2,260 (12,233)138,044 
Nine months ended September 30, 2020
Non-Nelnet Bank
Federally insured loans$36,763 72,291 32,074 (14,885)— 13,700 — 139,943 
Private education loans9,597 4,797 6,471 (1,360)508 — — 20,013 
Consumer loans15,554 13,926 34,931 (9,893)849 — (29,424)25,943 
$61,914 91,014 73,476 (26,138)1,357 13,700 (29,424)185,899 
a) During the three months ended September 30, 2021 and 2020, and nine months ended September 30, 2021 and 2020, the Company acquired $64.6 million (par value), $137.5 million (par value), $153.3 million (par value), and $721.4 million (par value), respectively, of federally insured rehabilitation loans that met the definition of PCD loans when they were purchased by the Company.
Beginning in March 2020, the coronavirus disease 2019 ("COVID-19") pandemic has caused significant disruptions in the U.S. and world economies. Apart from the impact of the adoption of ASC 326 effective January 1, 2020, the Company’s allowance for loan losses increased during the first quarter of 2020 primarily as a result of the COVID-19 pandemic and its effects on economic conditions. During the third quarter of 2020, the Company recognized a negative provision for loan losses due to management's estimate of certain continued improved economic conditions (including the improvement in certain macroeconomic variables (unemployment rates, gross domestic product, and consumer price index) used in the Company's loan loss models) in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of June 30, 2020.
For the three months ended September 30, 2021, charge-offs for the Company’s federally insured loan portfolio were $10.3 million. The increased level of charge-offs in the third quarter of 2021 as compared to historical periods was due to the Company proactively applying a 90 day natural disaster forbearance due to COVID-19 to any loan that was 31-269 days past due effective March 13, 2020 through June 30, 2020. Beginning July 1, 2020, the Company discontinued proactively applying
90 day natural disaster forbearances on past due loans. Many loans that exited the natural disaster forbearance on July 1, 2020 have gone into default, been submitted to the guaranty agency, and been charged off by the Company during the third quarter of 2021.
During the nine months ended September 30, 2021, the Company recorded a negative provision for loan losses due to management's estimate of certain continued improved economic conditions as of September 30, 2021 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of December 31, 2020. These amounts were partially offset by the establishment of an initial allowance for loans originated and acquired during the period.
Loan Status and Delinquencies
The key credit quality indicators for the Company's federally insured, private education, and consumer loan portfolios are loan status, including delinquencies. The impact of changes in loan status is incorporated into the allowance for loan losses calculation. 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 status and delinquency amounts.
As of September 30, 2021As of December 31, 2020As of September 30, 2020
Federally insured loans - Non-Nelnet Bank:    
Loans in-school/grace/deferment $909,228 5.0 % $1,036,028 5.4 % $1,037,754 5.4 %
Loans in forbearance 1,826,082 10.1  1,973,175 10.3  1,916,906 10.0 
Loans in repayment status:  
Loans current13,525,751 88.1 %13,683,054 84.9 %14,845,519 91.7 %
Loans delinquent 31-60 days548,670 3.6 633,411 3.9 945,411 5.9 
Loans delinquent 61-90 days286,681 1.9 307,936 1.9 249,523 1.5 
Loans delinquent 91-120 days163,447 1.1 800,257 5.0 129,994 0.8 
Loans delinquent 121-270 days467,441 3.0 674,975 4.2 605 0.0 
Loans delinquent 271 days or greater354,188 2.3 20,337 0.1 19,867 0.1 
Total loans in repayment15,346,178 84.9 100.0 %16,119,970 84.3 100.0 %16,190,919 84.6 100.0 %
Total federally insured loans18,081,488 100.0 % 19,129,173 100.0 % 19,145,579 100.0 %
Accrued interest receivable831,142 791,453 757,960 
Loan discount, net of unamortized premiums and deferred origination costs(23,229)(14,505)(20,554)
Allowance for loan losses(115,859)(128,590)(139,943)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$18,773,542 $19,777,531 $19,743,042 
Private education loans - Non-Nelnet Bank:
Loans in-school/grace/deferment $10,282 3.2 %$5,049 1.6 %$3,839 1.4 %
Loans in forbearance 3,554 1.1 2,359 0.7 5,437 2.0 
Loans in repayment status:
Loans current300,231 98.3 %310,036 99.0 %261,514 98.8 %
Loans delinquent 31-60 days1,870 0.6 1,099 0.4 1,820 0.7 
Loans delinquent 61-90 days912 0.3 675 0.2 454 0.2 
Loans delinquent 91 days or greater2,363 0.8 1,371 0.4 743 0.3 
Total loans in repayment305,376 95.7 100.0 %313,181 97.7 100.0 %264,531 96.6 100.0 %
Total private education loans319,212 100.0 % 320,589 100.0 % 273,807 100.0 %
Accrued interest receivable2,076 2,131 1,960 
Loan discount, net of unamortized premiums(1,496)2,691 1,137 
Allowance for loan losses(17,053)(19,529)(20,013)
Total private education loans and accrued interest receivable, net of allowance for loan losses$302,739 $305,882 $256,891 
As of September 30, 2021As of December 31, 2020As of September 30, 2020
Consumer loans - Non-Nelnet Bank:
Loans in deferment$18 0.0 %$829 0.8 %$1,084 1.1 %
Loans in repayment status:
Loans current35,744 96.6 %105,650 97.4 %96,038 96.9 %
Loans delinquent 31-60 days319 0.9 954 0.9 1,044 1.1 
Loans delinquent 61-90 days243 0.7 804 0.7 776 0.8 
Loans delinquent 91 days or greater670 1.8 1,109 1.0 1,238 1.2 
Total loans in repayment36,976 100.0 100.0 %108,517 99.2 100.0 %99,096 98.9 %100.0 %
Total consumer loans36,994 100.0 %109,346 100.0 %100,180 100.0 %
Accrued interest receivable280 1,001 867 
Loan premium664 1,640 1,505 
Allowance for loan losses(4,429)(27,256)(25,943)
Total consumer loans and accrued interest receivable, net of allowance for loan losses$33,509 $84,731 $76,609 
Federally insured loans - Nelnet Bank:
Loans in-school/grace/deferment$283 0.3 %
Loans in forbearance1,722 1.8 
Loans in repayment status:
Loans current91,366 99.4 %
Loans delinquent 31-60 days277 0.3 
Loans delinquent 61-90 days35 — 
Loans delinquent 91-120 days45 0.1 
Loans delinquent 121-270 days202 0.2 
Loans delinquent 271 days or greater— — 
Total loans in repayment91,925 97.9 100.0 %
Total federally insured loans93,930 100.0 %
Accrued interest receivable1,177 
Loan premium28 
Allowance for loan losses(289)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$94,846 
Private education loans - Nelnet Bank:
Loans in-school/grace/deferment$82 0.1 %$— — %
Loans in forbearance193 0.2 29 0.2 
Loans in repayment status:
Loans current98,120 100.0 %17,514 100.0 %
Loans delinquent 31-60 days— — — — 
Loans delinquent 61-90 days— — — — 
Loans delinquent 91 days or greater— — — — 
Total loans in repayment98,120 99.7 100.0 %17,514 99.8 100.0 %
Total private education loans98,395 100.0 %17,543 100.0 %
Accrued interest receivable156 26 
Deferred origination costs1,430 266 
Allowance for loan losses(414)(323)
Total private education loans and accrued interest receivable, net of allowance for loan losses$99,567 $17,512 

Nonaccrual Status
The Company does not place federally insured loans on nonaccrual status due to the government guaranty. The amortized cost of private and consumer loans on nonaccrual status, as well as the allowance for loan losses related to such loans, as of December 31, 2020 and September 30, 2021, was not material.
Amortized Cost Basis by Origination Year
The following table presents the amortized cost of the Company's private education and consumer loans by loan status and delinquency amount as of September 30, 2021 based on year of origination. Effective July 1, 2010, no new loan originations can be made under the Federal Family Education Loan Program (the "FFEL Program" or "FFELP") and all new federal loan originations must be made under the Federal Direct Loan Program. As such, all the Company’s federally insured loans were originated prior to July 1, 2010.
Nine months ended September 30, 20212020201920182017Prior yearsTotal
Private education loans - Non-Nelnet Bank:
Loans in school/grace/deferment$1,310 2,202 4,572 — — 2,198 10,282 
Loans in forbearance— 649 657 180 — 2,068 3,554 
Loans in repayment status:
Loans current2,252 75,514 53,814 367 — 168,284 300,231 
Loans delinquent 31-60 days— 147 125 — — 1,598 1,870 
Loans delinquent 61-90 days— — — — — 912 912 
Loans delinquent 91 days or greater— — — — — 2,363 2,363 
Total loans in repayment2,252 75,661 53,939 367 — 173,157 305,376 
Total private education loans$3,562 78,512 59,168 547 — 177,423 319,212 
Accrued interest receivable2,076 
Loan discount, net of unamortized premiums(1,496)
Allowance for loan losses(17,053)
Total private education loans and accrued interest receivable, net of allowance for loan losses$302,739 
Consumer loans - Non-Nelnet Bank:
Loans in deferment$— — — 18 — — 18 
Loans in repayment status:
Loans current19,710 1,295 6,915 7,695 129 — 35,744 
Loans delinquent 31-60 days62 80 119 51 — 319 
Loans delinquent 61-90 days53 — 103 87 — — 243 
Loans delinquent 91 days or greater56 42 250 321 — 670 
Total loans in repayment19,881 1,417 7,387 8,154 137 — 36,976 
Total consumer loans$19,881 1,417 7,387 8,172 137 — 36,994 
Accrued interest receivable280 
Loan premium664 
Allowance for loan losses(4,429)
Total consumer loans and accrued interest receivable, net of allowance for loan losses$33,509 
Private education loans - Nelnet Bank:
Loans in school/grace/deferment$82 — — — — — 82 
Loans in forbearance193 — — — — — 193 
Loans in repayment status:
Loans current85,589 12,531 — — — — 98,120 
Loans delinquent 31-60 days— — — — — — — 
Loans delinquent 61-90 days— — — — — — — 
Loans delinquent 91 days or greater— — — — — — — 
Total loans in repayment85,589 12,531 — — — — 98,120 
Total private education loans$85,864 12,531 — — — — 98,395 
Accrued interest receivable156 
Deferred origination costs1,430 
Allowance for loan losses(414)
Total private education loans and accrued interest receivable, net of allowance for loan losses$99,567 
v3.21.2
Bonds and Notes Payable
9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Bonds and Notes Payable Bonds and Notes Payable
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 As of September 30, 2021
Carrying
amount
Interest rate
range
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:
   
Bonds and notes based on indices$16,784,982 
0.20% - 2.09%
5/27/25 - 9/25/69
Bonds and notes based on auction450,300 
0.00% - 2.15%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes17,235,282 
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations
860,434 
1.42% - 3.45%
10/25/67 - 8/27/68
FFELP warehouse facilities5,446 
0.17%
11/22/22 / 2/26/24
Private education loan warehouse facility118,299 0.19%2/13/23
Variable-rate bonds and notes issued in private education loan asset-backed securitizations
35,648 
1.65% / 1.84%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
30,409 
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit— 9/22/26
Participation agreement194,190 0.78%5/4/22
Repurchase agreements334,473 
0.57% - 1.13%
11/15/21 - 12/20/23
Secured line of credit5,000 1.84%5/30/22
 18,819,181   
Discount on bonds and notes payable and debt issuance costs(208,433)
Total$18,610,748 

 As of December 31, 2020
Carrying
amount
Interest rate
range
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:   
Bonds and notes based on indices$17,127,643 
0.28% - 2.05%
5/27/25 - 10/25/68
Bonds and notes based on auction749,925 
1.12% - 2.14%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes17,877,568 
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations923,076 
1.42% - 3.45%
10/25/67 - 8/27/68
FFELP warehouse facilities252,165 
0.27% / 0.31%
5/20/22 / 2/26/23
Private education loan warehouse facility150,397 0.28%2/13/22
Consumer loan warehouse facility25,809 0.28%4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations49,025 
1.65% / 1.90%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization37,251 
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit120,000 1.65%12/16/24
Participation agreement118,558 0.84%5/4/21
Secured line of credit5,000 1.90%5/30/22
 19,558,849   
Discount on bonds and notes payable and debt issuance costs(238,123)
Total$19,320,726 
FFELP Warehouse Facilities
The Company funds a portion of its FFELP loan acquisitions using its FFELP warehouse facilities. Student loan warehousing allows the Company to buy and manage student loans prior to transferring them into more permanent financing arrangements.
As of September 30, 2021, the Company had two FFELP warehouse facilities as summarized below.
NFSLW-I (a)NHELP-II (b)Total
Maximum financing amount$60,000 50,000 110,000 
Amount outstanding5,446 — 5,446 
Amount available$54,554 50,000 104,554 
Expiration of liquidity provisionsNovember 22, 2021February 26, 2022
Final maturity dateNovember 22, 2022February 26, 2024
Advanced as equity support$328 115 443 

(a)    On May 20, 2021, the Company extended the expiration of liquidity provisions and the maturity date for this warehouse facility an additional six months to November 22, 2021 and November 22, 2022, respectively. On June 28, 2021, the maximum financing amount for this warehouse facility increased to $770.0 million, and on June 30, 2021 and July 27, 2021, the maximum financing amount decreased to $310.0 million and to $60 million, respectively.
(b)    On February 26, 2021, the Company extended the expiration of liquidity provisions and the maturity date for this warehouse facility an additional year to February 26, 2022 and February 26, 2024, respectively. On October 14, 2021, this facility was terminated.
Asset-Backed Securitizations
The following table summarizes the asset-backed securitization transactions completed by the Company during the first nine months of 2021.
NSLT 2021-1NSLT 2021-2Total
Date securities issued6/30/218/31/21
Total original principal amount$797,000 531,300 1,328,300 
Class A senior notes:
Total principal amount$781,000 520,600 1,301,600 
Cost of funds
1-month LIBOR plus 0.50%
1-month LIBOR plus 0.50%
Final maturity date7/25/699/25/69
Class B subordinated notes:
Total principal amount$16,000 10,700 26,700 
Cost of funds
1-month LIBOR plus 1.25%
1-month LIBOR plus 1.20%
Final maturity date7/25/699/25/69

Private Education Loan Warehouse Facility
During 2020, the Company obtained a private education loan warehouse facility that had an aggregate maximum financing amount available of $200.0 million. On February 12, 2021, the Company decreased the maximum financing amount available for this facility to $175.0 million and extended the liquidity provisions and final maturity date to February 13, 2022 and February 13, 2023, respectively. As of September 30, 2021, $118.3 million was outstanding under this warehouse facility and $56.7 million was available for future funding. The facility has an advance rate of 80 to 90 percent and, as of September 30, 2021, the Company had $12.9 million advanced as equity support under this facility.
Consumer Loan Warehouse Facility
The Company had a $100.0 million consumer loan warehouse facility. On March 31, 2021, the Company terminated this facility.
Unsecured Line of Credit
On September 22, 2021, the Company amended its existing unsecured line of credit. Under the amended terms, the following provisions of the facility were modified:
The maturity date was extended from December 16, 2024 to September 22, 2026.
The facility size increased from $455.0 million to $495.0 million. The amended terms also increased the accordion feature of the facility to provide that the Company may increase the aggregate financing commitments, through the existing lenders and/or through new lenders, up to a total of $737.5 million.
The cost of funds decreased 25.0 basis points and 2.5 basis points for drawn and undrawn amounts, respectively, based on the Company's current credit ratings. The amended terms also include customary provisions to provide for replacement of LIBOR with an alternative benchmark rate when LIBOR ceases to be available.
The provisions for secured recourse indebtedness were expanded to increase the limit on the aggregate amount of secured recourse indebtedness from 5 percent of the Company's consolidated net worth to 10 percent.
The provisions for permitted investments were expanded to increase the aggregate amount of permitted investments from 40 percent of the Company's consolidated net worth to 50 percent.
The provisions for loans owned by the Company other than federally insured FFELP student loans were revised to replace the limit of $850.0 million on non-FFELP loans owned by the Company with a limit of 50 percent of the Company's consolidated net worth on non-FFELP loans owned by the Company with FICO scores of less than 700.
As of September 30, 2021, no amount was outstanding on the line of credit and $495.0 million was available for future use.
Participation Agreement
The Company has an agreement with Union Bank and Trust Company ("Union Bank"), a related party, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in FFELP loan asset-backed securities. As of September 30, 2021, $194.2 million of FFELP loan asset-backed securities were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement. The agreement automatically renews annually and is terminable by either party upon five business days' notice. The Company can participate FFELP loan asset-backed securities to Union Bank to the extent of availability under the grantor trusts, up to $100.0 million or an amount in excess of $100.0 million if mutually agreed to by both parties. The Company maintains legal ownership of the FFELP loan asset-backed securities and, in its discretion, approves and accomplishes any sale, assignment, transfer, encumbrance, or other disposition of the securities. As such, the FFELP loan asset-backed securities under this agreement have been accounted for by the Company as a secured borrowing.
Repurchase Agreements
On May 3, 2021 and June 23, 2021, the Company entered into repurchase agreements with non-affiliated third parties, the proceeds of which are collateralized by private education loan asset-backed securities. The first agreement has maturity dates of November 20, 2023 and December 20, 2023, or earlier if either party provides 180 days’ prior written notice, and the second agreement has a maturity date of November 15, 2021. The Company incurs interest on amounts outstanding under these agreements based on three-month LIBOR plus an applicable spread. Under the first agreement, the Company is subject to margin deficit payment requirements if the fair value of the securities subject to the agreement is less than the original purchase price of such securities on any scheduled reset date, and under the second agreement, the Company could be subject to margin deficit payment requirements if the fair value of the securities subject to the agreement is less than the original purchase price of such securities and the counter-party provides notice requiring such payment. Included in “bonds and notes payable” as of September 30, 2021 was $223.8 million subject to the first agreement and $110.6 million subject to the second agreement.
See note 5 for additional information about the private education loan asset-backed securities investments serving as collateral for these repurchase agreements.
Accrued Interest Liability
During the first quarter of 2021, the Company reversed a historical accrued interest liability of $23.8 million on certain bonds, which liability the Company determined is no longer probable of being required to be paid. The liability was initially recorded when certain asset-backed securitizations were acquired in 2011 and 2013. The reduction of this liability is reflected in (a reduction of) "interest on bonds and notes payable and bank deposits" in the consolidated statements of income.
Debt Repurchases
The following table summarizes the Company's repurchases of its own debt. Gains/losses recorded by the Company from the repurchase of debt are included in "other" in "other income/expense" on the Company's consolidated statements of income.
Three months ended September 30,Nine months ended September 30,
2021202020212020
Purchase price$(184,827)(6,054)(205,269)(7,572)
Par value184,781 6,163 204,597 8,090 
Remaining unamortized cost of issuance(3,222)(4)(3,292)(10)
(Loss) gain$(3,268)105 (3,964)508 
v3.21.2
Derivative Financial Instruments
9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company uses derivative financial instruments to manage interest rate risk. Derivative instruments used as part of the Company's risk management strategy are further described in note 6 of the notes to consolidated financial statements included in the 2020 Annual Report. A tabular presentation of such derivatives outstanding as of September 30, 2021 and December 31, 2020 is presented below.
Basis Swaps
The following table summarizes the Company’s outstanding basis swaps as of September 30, 2021 and December 31, 2020, in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps").
MaturityNotional amount
As ofAs of
September 30, 2021December 31, 2020
2021$— 250,000 
20222,000,000 2,000,000 
2023750,000 750,000 
20241,750,000 1,750,000 
20261,150,000 1,150,000 
2027250,000 250,000 
$5,900,000 6,150,000 

The weighted average rate paid by the Company on the 1:3 Basis Swaps as of September 30, 2021 and December 31, 2020 was one-month LIBOR plus 9.1 basis points.
Interest Rate Swaps – Floor Income Hedges
The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
As of September 30, 2021As of December 31, 2020
MaturityNotional amountWeighted average fixed rate paid by the Company (a)Notional amountWeighted average fixed rate paid by the Company (a)
2021$100,000 2.95 %$600,000 2.15 %
2022500,000 0.94 500,000 0.94 
2023900,000 0.62 900,000 0.62 
20242,500,000 0.35 2,000,000 0.32 
2025500,000 0.35 500,000 0.35 
2026300,000 0.81 — — 
2031100,000 1.53 — — 
 $4,900,000 0.56 %$4,500,000 0.70 %

(a)    For all interest rate derivatives, the Company receives discrete three-month LIBOR.
Consolidated Financial Statement Impact Related to Derivatives - Statements of Income
The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income.
Three months ended September 30,Nine months ended September 30,
 2021202020212020
Settlements:  
1:3 basis swaps$(700)1,197 (939)10,438 
Interest rate swaps - floor income hedges(5,209)(3,588)(14,648)(2,772)
Total settlements - (expense) income(5,909)(2,391)(15,587)7,666 
Change in fair value:  
1:3 basis swaps1,061 (161)2,755 (1,475)
Interest rate swaps - floor income hedges6,199 3,601 41,700 (19,597)
Total change in fair value - income (expense)7,260 3,440 44,455 (21,072)
Derivative market value adjustments and derivative settlements, net - income (expense)$1,351 1,049 28,868 (13,406)
v3.21.2
Investments
9 Months Ended
Sep. 30, 2021
Investments [Abstract]  
Investments Investments
Private Education Loan Investment
In December of 2020, Wells Fargo announced the sale of its approximately $10.0 billion portfolio of private education loans representing approximately 445,000 borrowers. The Company has entered into a joint venture with other investors to acquire the loans. Under the terms of the joint venture agreements, the Company is the servicer of the portfolio, owns an approximate 8 percent interest in the loans and in residual interests in subsequent securitizations of the loans, and serves as the sponsor and administrator for the loan securitizations completed by the joint venture. During March and throughout the second quarter of 2021, the vast majority of borrowers were converted to the Company's servicing platform.
The joint venture established a limited partnership that purchased the private education loans and funded such loans with a temporary warehouse facility. The Company’s initial contribution to the limited partnership was $71.1 million. In conjunction with the establishment of the limited partnership, the parties provided additional funding commitments to the partnership, in the event additional funding became necessary after the initial purchase of loans. In accordance with GAAP, the Company’s carrying value of its investment in the limited partnership is accounted for under the equity method of accounting, is reduced by cash distributions and the fair value of its portion of loans transferred into securitizations, and can be less than zero or negative because of the potential future contributions pursuant to the funding commitment. The Company’s carrying value of its investment in the limited partnership, which is included in "Venture capital and funds - equity method" in the table below, is
also impacted by the amount of the Company’s proportionate share of the net earnings or losses of the partnership. For the nine months ended September 30, 2021, the Company’ proportionate share of losses of this partnership was $5.0 million, which reduced the carrying value of this investment (and is included as an expense in "other" in "other income/expense" on the consolidated statements of income).
On May 20, 2021, June 30, 2021, and August 18, 2021, the joint venture completed asset-backed securitization transactions to permanently finance a total of $7.4 billion of the private education loans purchased by the joint venture. Cash distributions and the fair value of the Company’s portion of loans securitized as a result of these securitizations was $40.6 million and $43.3 million, respectively, which reduced the Company’s carrying value of its limited partnership investment. The Company records its ownership in the residual interest of securitization transactions used to permanently finance the loans at fair value as held-to-maturity beneficial interest investments, and such investments are reflected in the table below as “beneficial interest in private education loan securitizations, including accrued interest.”
See the caption "Subsequent Events" below for information regarding an event on October 27, 2021 impacting the Company's investment in the joint venture limited partnership.
On behalf of the joint venture, the Company is the sponsor and administrator for the loan securitizations completed by the joint venture. As sponsor, the Company is required to provide a certain level of risk retention, and has purchased bonds issued in such securitizations to satisfy this requirement. The bonds purchased to satisfy the risk retention requirement are included in “private education loan asset-backed securities – available for sale” in the table below and as of September 30, 2021, the fair value of these bonds was $371.7 million. The Company must retain these investment securities until the latest of (i) two years from the closing date of the securitization, (ii) the date the aggregate outstanding principal balance of the loans in the securitization is 33% or less of the initial loan balance, and (iii) the date the aggregate outstanding principal balance of the bonds is 33% or less of the aggregate initial outstanding principal balance of the bonds, at which time the Company can sell its investment securities (bonds) to a third party. The Company entered into repurchase agreements with third-parties, the proceeds of which were used to purchase a portion of the asset-backed investments, and such investments serve as collateral on the repurchase obligations. See note 3 for additional information about these repurchase agreements.
A summary of the Company's investments follows:
As of September 30, 2021As of December 31, 2020
Amortized costGross unrealized gainsGross unrealized lossesFair valueAmortized costGross unrealized gainsGross unrealized lossesFair value
Investments (at fair value):
FFELP loan asset-backed securities- available-for-sale (a)$387,777 15,932 (49)403,660 338,475 8,040 (13)346,502 
Private education loan asset-backed securities - available-for-sale (b)369,859 1,865 — 371,724 — — — — 
Other debt securities - available-for-sale2,337 — — 2,337 2,103 — 2,105 
Equity securities58,336 13,302 (1,594)70,044 36,227 8,768 (2,954)42,041 
Total investments (at fair value)$818,309 31,099 (1,643)847,765 376,805 16,810 (2,967)390,648 
Other Investments (not measured at fair value):
Venture capital and funds:
Measurement alternative (c)151,100 144,795 
Equity method37,020 14,018 
Other 804 894 
Total venture capital and funds188,924 159,707 
Real estate
Equity method35,605 50,291 
Notes receivable3,500 847 
Total real estate39,105 51,138 
Investment in ALLO:
Voting interest/equity method (d)97,776 129,396 
Preferred membership interest and accrued and unpaid preferred return (e)135,300 228,916 
Total investment in ALLO233,076 358,312 
Solar (f)(46,539)(30,373)
Beneficial interest in private education loan securitizations, including accrued interest (g)44,902 — 
Beneficial interest in consumer loan securitizations, net of allowance for credit losses of $4,449 as of December 31, 2020 (g)
37,021 27,954 
Beneficial interest in federally insured student loan securitizations (g)26,904 30,377 
Tax liens and affordable housing3,755 5,177 
Total investments (not measured at fair value)527,148 602,292 
Total investments$1,374,913 $992,940 

(a)    As of September 30, 2021, $194.2 million (par value) of FFELP loan asset-backed securities were subject to participation interests held by Union Bank. See note 3 for additional information.
(b)    As of September 30, 2021, a total of $370.4 million (par value) of private education loan asset-backed securities were subject to repurchase agreements with third-parties. See note 3 for additional information.
(c)    The Company has an investment in Agile Sports Technologies, Inc. (doing business as “Hudl”) that is included in “venture capital and funds” in the above table. On May 27, 2021, the Company made an additional equity investment of approximately $5 million in Hudl, as one of the participants in an equity raise completed by Hudl. Prior to the additional 2021 investment, the Company had direct and indirect equity ownership interests in Hudl of less than 20%, which did not materially change as a result of this transaction. The Company accounts for its investment in Hudl using the measurement alternative method, which requires it to adjust its carrying value of the investment for changes resulting from observable market transactions. For accounting purposes, the May 2021 equity raise transaction was not considered an observable market transaction (not orderly) because it was not subject to customary marketing activities and the price was contractually agreed to during Hudl's prior May 2020 equity raise. Accordingly, the Company did not adjust its carrying value of its Hudl investment to the May 2021 transaction value. As of September 30, 2021, the carrying amount of the Company's investment in Hudl is $133.9 million.
David S. Graff, who has served on the Company's Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl.
See the caption "Subsequent Events" below for information regarding an event on October 15, 2021 impacting another investment accounted for using the measurement alternative method.
(d)    The Company accounts for its voting membership interests in ALLO Holdings LLC, a holding company for ALLO Communications LLC (collectively referred to as "ALLO") under the Hypothetical Liquidation at Book Value ("HLBV") method of accounting. The HLBV method of accounting is used by the Company for equity method investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership or voting interests. The Company applies the HLBV method using a balance sheet approach. A calculation is prepared at each balance sheet date to determine the amount that the Company would receive if an equity investment entity were to liquidate its net assets and distribute that cash to the investors based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is the Company’s share of the earnings or losses from the equity investment for the period. Because the Company will be able to utilize certain tax losses related to ALLO’s operations, the equity investment agreements for the Company have liquidation rights and priorities that are sufficiently different from the voting membership interests percentages such that the HLBV method of accounting was deemed appropriate. Accordingly, the recognition of earnings or losses during any reporting period related to the Company’s equity investment in ALLO may or may not reflect its voting membership interests percentage and could vary substantially from those calculated based on the Company’s voting membership interests in ALLO.
During the three and nine months ended September 30, 2021, the Company recognized losses of $10.5 million and $31.6 million, respectively, under the HLBV method of accounting on its ALLO voting membership interests investment.
Assuming ALLO continues its planned growth in existing and new communities, it will continue to invest substantial amounts in property and equipment to build the network and connect customers. The resulting recognition of depreciation and development costs could result in continuing net operating losses by ALLO under GAAP. Applying the HLBV method of accounting, the Company will continue to recognize a significant portion of ALLO’s anticipated losses over the next several years. Income and losses from the Company's investment in ALLO are included in "other" in "other income/expense" on the consolidated statements of income.
(e)    As of September 30, 2021, the outstanding preferred membership interests and accrued and unpaid preferred return of ALLO held by the Company was $129.7 million and $5.6 million, respectively. The preferred membership interests of ALLO held by the Company earn a preferred annual return of 6.25 percent. During the three and nine months ended September 30, 2021, the Company recognized income on its ALLO preferred membership interests of $2.0 million and $6.4 million, respectively, that is included in "other" in "other income/expense" on the consolidated statements of income.
On January 19, 2021, ALLO obtained certain private debt financing facilities from unrelated third-party lenders providing for aggregate financing of up to $230.0 million. With proceeds from this transaction, ALLO redeemed a portion of its non-voting preferred membership interests held by the Company in exchange for an aggregate redemption price payment to the Company of $100.0 million. Under October 2020 recapitalization agreements for ALLO, the parties have agreed to use commercially reasonable efforts (which expressly excludes requiring ALLO to raise any additional equity financing or sell any assets) to cause ALLO to redeem, on or before April 2024, the remaining preferred membership interests of ALLO held by the Company, plus the amount of accrued and unpaid preferred return on such interests.
(f)    The Company makes investments in entities that promote renewable energy sources (solar). The Company's investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods which range from 5 to 6 years. As of September 30, 2021, the Company has funded a total of $181.4 million in solar investments, which includes $24.5 million funded by syndication partners. The carrying value of the Company's solar investments are reduced by tax credits earned when the solar project is placed in service. The solar investment balance at September 30, 2021 represents the result of total tax credits earned on solar projects placed in service through September 30, 2021 being larger than total payments made by the Company on such projects. The Company is committed to fund an additional $74.0 million on these projects, of which $55.9 million will be provided by syndication partners.
The Company accounts for its solar investments using the HLBV method of accounting. For the majority of the Company's solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment. During the three months ended September 30, 2021 and 2020, the Company recognized pre-tax losses of $3.4 million and $11.8 million, respectively, and for the nine months ended September 30, 2021 and 2020, the Company recognized pre-tax losses of $7.4 million and $12.6 million, respectively, on its solar investments. These losses are included in "other" in "other income/expense" on the consolidated statements of income.
(g)    The Company has partial ownership in certain private education, consumer, and federally insured student loan securitizations. As of the latest remittance reports filed by the various trusts prior to September 30, 2021, the Company's ownership correlates to approximately $545 million, $250 million, and $485 million of private education, consumer, and federally insured student loans, respectively, included in these securitizations.
During the first quarter of 2020, the Company recorded a $26.3 million provision charge related to the Company's beneficial interest in consumer loan securitizations due to distressed economic conditions resulting from the COVID-19 pandemic. Due to improved economic conditions, the Company has reduced the allowance for credit losses related to the consumer loan beneficial interests, including reducing such allowance by $2.4 million during the first quarter of 2021. As of March 31, 2021, the Company no longer has an allowance for credit losses associated with the consumer loan beneficial interests. The activity related to the allowance for credit losses related to the consumer loan beneficial interests is included in “impairment expense and provision for beneficial interests, net” on the consolidated statements of income.
Subsequent Events
On October 15, 2021, an entity in which the Company has an equity investment completed an additional equity raise. The Company accounts for its investment in this entity using the measurement alternative method, which requires it to adjust its carrying value of the investment for changes resulting from observable market transactions. As a result of this entity’s equity raise, the Company currently anticipates recognizing income in the fourth quarter of 2021 of $10 million to $15 million (pre-tax) to adjust its carrying value to reflect the October 15, 2021 transaction value, subject to final valuations of the equity classes.
On October 27, 2021, the Company's joint venture with other investors for the acquisition of private education loans from Wells Fargo completed a final asset-backed securitization of $1.2 billion of private education loans that permanently financed all remaining eligible loans temporarily funded in the joint venture limited partnership’s warehouse facility. The cash distribution and the fair value of the Company’s portion of loans securitized as a result of this securitization was $9.8 million and $8.5 million, respectively, which reduced the Company’s carrying value of its limited partnership investment to a credit (negative) balance of approximately $36 million. Due to the completion of this transaction, the Company expects the joint venture limited partnership established to purchase the loans will be dissolved without further financial requirements (and the Company's funding commitment will therefore be terminated) and/or the financial commitment will be reduced or terminated by the partners of the joint venture. Upon the reduction and/or termination of the Company's financial commitment to the limited partnership, currently expected by the Company to occur during the fourth quarter of 2021, the Company will record a derecognition of all or a portion of the negative investment balance (and record positive income up to $36 million (pre-tax)).
v3.21.2
Intangible Assets
9 Months Ended
Sep. 30, 2021
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets Intangible Assets
Intangible assets consisted of the following:
Weighted average remaining useful life as of
September 30, 2021 (months)
As ofAs of
September 30, 2021December 31, 2020
Amortizable intangible assets, net:  
Customer relationships (net of accumulated amortization of $94,767 and $83,419, respectively)
105$50,525 66,974 
Computer software (net of accumulated amortization of $3,143 and $4,127, respectively)
274,651 6,430 
Trade names (net of accumulated amortization of $3,455)
— 1,666 
Total - amortizable intangible assets, net98$55,176 75,070 

The Company recorded amortization expense on its intangible assets of $3.3 million and $8.0 million during the three months ended September 30, 2021 and 2020, respectively, and $19.9 million and $22.8 million during the nine months ended September 30, 2021 and 2020, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of September 30, 2021, the Company estimates it will record amortization expense as follows:
2021 (October 1 - December 31)$3,147 
20229,939 
20239,830 
20247,457 
20254,644 
2026 and thereafter20,159 
 $55,176 
v3.21.2
Goodwill
9 Months Ended
Sep. 30, 2021
Goodwill [Abstract]  
Goodwill Goodwill
The carrying amount of goodwill as of September 30, 2021 and December 31, 2020 by reportable operating segment was as follows:
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingAsset Generation and ManagementNelnet BankCorporate and Other ActivitiesTotal
Goodwill balance$23,639 76,570 41,883 — — 142,092 
v3.21.2
Property and Equipment
9 Months Ended
Sep. 30, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consisted of the following:
As ofAs of
Useful lifeSeptember 30, 2021December 31, 2020
Computer equipment and software
1-5 years
$220,509 172,664 
Building and building improvements
5-48 years
46,018 52,444 
Office furniture and equipment
1-10 years
23,819 21,899 
Leasehold improvements
1-15 years
9,330 9,168 
Transportation equipment
5-10 years
4,857 4,857 
Land3,642 3,642 
Construction in progress3,783 18,478 
311,958 283,152 
Accumulated depreciation(194,662)(159,625)
Total property and equipment, net$117,296 123,527 
The Company recorded depreciation expense on its property and equipment of $12.4 million and $22.3 million during the three months ended September 30, 2021 and 2020, respectively, and $36.2 million and $64.6 million during the nine months ended September 30, 2021 and 2020, respectively.
Impairment charges
During the third quarter of 2021, the Company evaluated the use of office space as a large number of employees continue to work from home due to COVID-19. As a result of this evaluation, the Company recorded a non-cash impairment charge of $14.2 million during the three months ended September 30, 2021. The impairment charge of $13.2 million within its Loan Servicing and Systems operating segment related primarily to building and building improvements. The impairment charge of $1.0 million within its Corporate and Other Activities operating segment related to operating lease assets associated with leased office space which the Company had fully ceased to use prior to the lease term end date. These impairment charges are included in "impairment expense and provision for beneficial interest, net" in the consolidated statements of income.
v3.21.2
Earnings per Common Share
9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Earnings per Common Share Earnings per Common Share
Presented below is a summary of the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock.
 Three months ended September 30,
20212020
Common shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotal
Numerator:
Net income attributable to Nelnet, Inc.$52,245 893 53,138 70,483 1,020 71,503 
Denominator:
Weighted-average common shares outstanding - basic and diluted37,947,257 648,464 38,595,721 37,988,584 549,892 38,538,476 
Earnings per share - basic and diluted$1.38 1.38 1.38 1.86 1.86 1.86 
Nine months ended September 30,
20212020
Common shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotal
Numerator:
Net income attributable to Nelnet, Inc.$256,416 4,187 260,603 115,794 1,658 117,452 
Denominator:
Weighted-average common shares outstanding - basic and diluted38,025,898 620,994 38,646,892 38,676,092 553,840 39,229,932 
Earnings per share - basic and diluted$6.74 6.74 6.74 2.99 2.99 2.99 
v3.21.2
Segment Reporting
9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
See note 15 of the notes to consolidated financial statements included in the 2020 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.
 Three months ended September 30, 2021
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunications (a)Asset
Generation and
Management
Nelnet BankCorporate and Other ActivitiesEliminationsTotal
Total interest income$31 344 — 131,781 2,061 2,609 (172)136,654 
Interest expense24 — — 48,662 421 1,242 (172)50,176 
Net interest income344 — 83,119 1,640 1,367 — 86,478 
Less provision (negative provision) for loan losses— — — 5,940 (113)— — 5,827 
Net interest income after provision for loan losses344 — 77,179 1,753 1,367 — 80,651 
Other income/expense:
Loan servicing and systems revenue112,351 — — — — — — 112,351 
Intersegment revenue8,621 — — — — (8,624)— 
Education technology, services, and payment processing revenue— 85,324 — — — — — 85,324 
Communications revenue— — — — — — — — 
Other727 13 — (7,275)450 17,952 — 11,867 
Gain on sale of loans— — — 3,444 — — — 3,444 
Impairment expense and provision for beneficial interests, net(13,243)— — — — (916)— (14,159)
Derivative settlements, net— — — (5,909)— — — (5,909)
Derivative market value adjustments, net— — — 7,260 — — — 7,260 
Total other income/expense108,456 85,340 — (2,480)450 17,036 (8,624)200,178 
Cost of services:
Cost to provide education technology, services, and payment processing services— 31,335 — — — — — 31,335 
Cost to provide communications services— — — — — — — — 
Total cost of services— 31,335 — — — — — 31,335 
Operating expenses:
Salaries and benefits75,305 29,119 — 542 890 22,735 — 128,592 
Depreciation and amortization4,245 2,762 — — — 8,702 — 15,710 
Other expenses12,738 4,804 — 5,420 445 14,918 — 38,324 
Intersegment expenses, net19,217 3,672 — 8,652 32 (22,949)(8,624)— 
Total operating expenses111,505 40,357 — 14,614 1,367 23,406 (8,624)182,626 
Income (loss) before income taxes(3,042)13,992 — 60,085 836 (5,003)— 66,868 
Income tax (expense) benefit (b)730 (3,358)— (14,421)(200)1,600 — (15,649)
Net income (loss)(2,312)10,634 — 45,664 636 (3,403)— 51,219 
Net loss (income) attributable to noncontrolling interests— — — — — 1,919 — 1,919 
Net income (loss) attributable to Nelnet, Inc.$(2,312)10,634 — 45,664 636 (1,484)— 53,138 
Total assets as of September 30, 2021$238,602 415,178 — 20,001,997 413,155 1,740,060 (406,253)22,402,739 

(a) On December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. See note 2 of the notes to consolidated financial statements included in the 2020 Annual Report for a description of the transaction and a summary of the deconsolidation impact. Accordingly, there are no operating results for the (former) Communications operating segment in 2021.
(b) Income taxes for the Nelnet Bank operating segment reflect Nelnet Bank's actual tax expense/benefit as allocated and reflected in its Call Report filed with the Federal Deposit Insurance Corporation. Income taxes for all other operating segments are allocated based on 24% of that segment's income before taxes. The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities.
 Three months ended September 30, 2020
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Nelnet Bank (a)Corporate and Other ActivitiesEliminationsTotal
Total interest income$34 367 — 137,959 — 1,646 (261)139,745 
Interest expense24 16 — 57,755 — 888 (261)58,423 
Net interest income10 351 — 80,204 — 758 — 81,322 
Less provision (negative provision) for loan losses— — — (5,821)— — — (5,821)
Net interest income after provision for loan losses10 351 — 86,025 — 758 — 87,143 
Other income/expense:
Loan servicing and systems revenue113,794 — — — — — — 113,794 
Intersegment revenue8,287 — — — — (8,290)— 
Education technology, services, and payment processing revenue— 74,121 — — — — — 74,121 
Communications revenue— — 20,211 — — — — 20,211 
Other2,353 373 511 1,004 — (2,737)— 1,502 
Gain on sale of loans— — — 14,817 — — — 14,817 
Impairment expense and provision for beneficial interests, net— — — — — — — — 
Derivative settlements, net— — — (2,391)— — — (2,391)
Derivative market value adjustments, net— — — 3,440 — — — 3,440 
Total other income/expense124,434 74,497 20,722 16,870 — (2,737)(8,290)225,494 
Cost of services:
Cost to provide education technology, services, and payment processing services— 25,243 — — — — — 25,243 
Cost to provide communications services— — 5,914 — — — — 5,914 
Total cost of services— 25,243 5,914 — — — — 31,157 
Operating expenses:
Salaries and benefits72,912 25,460 5,485 438 — 21,801 — 126,096 
Depreciation and amortization9,951 2,366 11,152 — — 6,839 — 30,308 
Other expenses12,407 3,126 2,219 3,672 — 13,320 — 34,744 
Intersegment expenses, net15,834 3,610 491 8,868 — (20,513)(8,290)— 
Total operating expenses111,104 34,562 19,347 12,978 — 21,447 (8,290)191,148 
Income (loss) before income taxes13,340 15,043 (4,539)89,917 — (23,426)— 90,332 
Income tax (expense) benefit(3,201)(3,610)1,089 (21,580)— 8,146 — (19,156)
Net income (loss)10,139 11,433 (3,450)68,337 — (15,280)— 71,176 
Net loss (income) attributable to noncontrolling interests— — — — — 327 — 327 
Net income (loss) attributable to Nelnet, Inc.$10,139 11,433 (3,450)68,337 — (14,953)— 71,503 
Total assets as of September 30, 2020$211,726 382,608 305,276 20,686,478 — 770,621 (134,183)22,222,526 

(a)    Nelnet Bank launched operations on November 2, 2020. Accordingly, there are no operating results for the Nelnet Bank operating segment in the three months ended September 30, 2020.
Nine months ended September 30, 2021
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunications (a)Asset
Generation and
Management
Nelnet BankCorporate and Other ActivitiesEliminationsTotal
Total interest income$95 818 — 388,149 5,479 5,379 (578)399,341 
Interest expense70 — — 124,282 1,007 3,158 (578)127,939 
Net interest income25 818 — 263,867 4,472 2,221 — 271,402 
Less provision (negative provision) for loan losses— — — (11,225)378 — — (10,847)
Net interest income after provision for loan losses25 818 — 275,092 4,094 2,221 — 282,249 
Other income/expense:
Loan servicing and systems revenue335,961 — — — — — — 335,961 
Intersegment revenue25,369 — — — — (25,378)— 
Education technology, services, and payment processing revenue— 257,284 — — — — — 257,284 
Communications revenue— — — — — — — — 
Other2,541 13 — (4,514)475 31,668 — 30,183 
Gain on sale of loans— — — 18,715 — — — 18,715 
Impairment expense and provision for beneficial interests, net(13,243)— — 2,436 — (1,416)— (12,223)
Derivative settlements, net— — — (15,587)— — — (15,587)
Derivative market value adjustments, net— — — 44,455 — — — 44,455 
Total other income/expense350,628 257,306 — 45,505 475 30,252 (25,378)658,788 
Cost of services:
Cost to provide education technology, services, and payment processing services— 80,063 — — — — — 80,063 
Cost to provide communications services— — — — — — — — 
Total cost of services— 80,063 — — — — — 80,063 
Operating expenses:
Salaries and benefits210,151 82,154 — 1,594 3,956 65,496 — 363,351 
Depreciation and amortization20,411 8,789 — — — 26,927 — 56,129 
Other expenses39,296 14,063 — 12,763 1,227 40,265 — 107,611 
Intersegment expenses, net52,241 10,856 — 25,627 72 (63,419)(25,378)— 
Total operating expenses322,099 115,862 — 39,984 5,255 69,269 (25,378)527,091 
Income (loss) before income taxes28,554 62,199 — 280,613 (686)(36,796)— 333,883 
Income tax (expense) benefit (b)(6,853)(14,928)— (67,347)151 12,230 — (76,747)
Net income (loss)21,701 47,271 — 213,266 (535)(24,566)— 257,136 
Net loss (income) attributable to noncontrolling interests— — — — — 3,467 — 3,467 
Net income (loss) attributable to Nelnet, Inc.$21,701 47,271 — 213,266 (535)(21,099)— 260,603 
Total assets as of September 30, 2021$238,602 415,178 — 20,001,997 413,155 1,740,060 (406,253)22,402,739 

(a) On December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. See note 2 of the notes to consolidated financial statements included in the 2020 Annual Report for a description of the transaction and a summary of the deconsolidation impact. Accordingly, there are no operating results for the (former) Communications operating segment in 2021.
(b) Income taxes for the Nelnet Bank operating segment reflect Nelnet Bank's actual tax expense/benefit as allocated and reflected in its Call Report filed with the Federal Deposit Insurance Corporation. Income taxes for all other operating segments are allocated based on 24% of that segment's income before taxes. The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities.
Nine months ended September 30, 2020
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Nelnet Bank (a)Corporate and Other ActivitiesEliminationsTotal
Total interest income$403 2,777 — 474,468 — 4,397 (1,228)480,818 
Interest expense97 54 — 275,492 — 3,373 (1,228)277,788 
Net interest income306 2,723 — 198,976 — 1,024 — 203,030 
Less provision (negative provision) for loan losses— — — 73,476 — — — 73,476 
Net interest income after provision for loan losses306 2,723 — 125,500 — 1,024 — 129,554 
Other income/expense:
Loan servicing and systems revenue337,571 — — — — — — 337,571 
Intersegment revenue27,878 17 — — — — (27,895)— 
Education technology, services, and payment processing revenue— 217,100 — — — — — 217,100 
Communications revenue— — 57,390 — — — — 57,390 
Other6,897 373 1,256 4,951 — 56,435 — 69,910 
Gain on sale of loans— — — 33,023 — — — 33,023 
Impairment expense and provision for beneficial interests, net— — — (26,303)— (8,116)— (34,419)
Derivative settlements, net— — — 7,666 — — — 7,666 
Derivative market value adjustments, net— — — (21,072)— — — (21,072)
Total other income/expense372,346 217,490 58,646 (1,735)— 48,319 (27,895)667,169 
Cost of services:
Cost to provide education technology, services, and payment processing services— 63,424 — — — — — 63,424 
Cost to provide communications services— — 17,240 — — — — 17,240 
Total cost of services— 63,424 17,240 — — — — 80,664 
Operating expenses:
Salaries and benefits211,806 73,678 16,471 1,301 — 61,964 — 365,220 
Depreciation and amortization27,941 7,115 32,482 — — 19,811 — 87,349 
Other expenses43,277 11,544 9,681 12,253 — 38,428 — 115,184 
Intersegment expenses, net48,069 10,366 1,650 29,839 — (62,030)(27,895)— 
Total operating expenses331,093 102,703 60,284 43,393 — 58,173 (27,895)567,753 
Income (loss) before income taxes41,559 54,086 (18,878)80,372 — (8,830)— 148,306 
Income tax (expense) benefit(9,974)(12,981)4,531 (19,289)— 7,426 — (30,286)
Net income (loss)31,585 41,105 (14,347)61,083 — (1,404)— 118,020 
Net loss (income) attributable to noncontrolling interests— — — — — (568)— (568)
Net income (loss) attributable to Nelnet, Inc.$31,585 41,105 (14,347)61,083 — (1,972)— 117,452 
Total assets as of September 30, 2020$211,726 382,608 305,276 20,686,478 — 770,621 (134,183)22,222,526 

(a)    Nelnet Bank launched operations on November 2, 2020. Accordingly, there are no operating results for the Nelnet Bank operating segment in the nine months ended September 30, 2020.
v3.21.2
Disaggregated Revenue
9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregated Revenue Disaggregated Revenue
The following tables provides disaggregated revenue by service offering and/or customer type for the Company's fee-based reportable operating segments (except ALLO).
Loan Servicing and Systems
 Three months ended September 30,Nine months ended September 30,
 2021202020212020
Government servicing - Nelnet$37,595 36,295 107,843 112,305 
Government servicing - Great Lakes46,489 45,350 133,654 137,010 
Private education and consumer loan servicing13,198 7,928 34,563 24,733 
FFELP servicing4,557 4,912 13,930 15,443 
Software services 6,952 10,426 22,779 32,395 
Outsourced services3,560 8,883 23,192 15,685 
Loan servicing and systems revenue$112,351 113,794 335,961 337,571 

Education Technology, Services, and Payment Processing
 Three months ended September 30,Nine months ended September 30,
 2021202020212020
Tuition payment plan services$23,618 22,477 79,706 77,011 
Payment processing39,852 35,420 97,898 88,329 
Education technology and services21,098 15,840 78,153 50,820 
Other756 384 1,527 940 
Education technology, services, and payment processing revenue$85,324 74,121 257,284 217,100 

Other Income/Expense
The following table provides the components of "other" in "other income/expense" on the consolidated statements of income:
Three months ended September 30,Nine months ended September 30,
2021202020212020
Income/gains from investments, net$16,050 1,687 40,141 51,772 
Investment advisory services2,400 4,463 6,242 8,187 
ALLO preferred return2,043 — 6,384 — 
Management fee revenue727 2,353 2,541 6,897 
Borrower late fee income514 871 1,698 4,377 
Loss from ALLO voting membership interest investment(10,495)— (31,620)— 
Loss from solar investments(3,393)(11,839)(7,375)(12,638)
(Loss) gain on debt repurchased(3,268)105 (3,964)508 
Other7,289 3,862 16,136 10,807 
$11,867 1,502 30,183 69,910 
v3.21.2
Major Customer
9 Months Ended
Sep. 30, 2021
Risks and Uncertainties [Abstract]  
Major Customer Major Customer
Nelnet Servicing, LLC ("Nelnet Servicing") and Great Lakes Educational Loan Services, Inc. ("Great Lakes"), subsidiaries of the Company, each earn loan servicing revenue from a servicing contract with the Department of Education (the "Department"). Revenues earned by Nelnet Servicing and Great Lakes related to these contracts are set forth in the "Government servicing - Nelnet" and "Government servicing - Great Lakes" line items of the "Loan Servicing and Systems" table in note 11. As of September 30, 2021, Nelnet Servicing and Great Lakes serviced 5.8 million and 7.8 million borrowers, respectively, under their contracts with the Department.
In June 2021, Nelnet Servicing and Great Lakes each received a contract modification from the Department pursuant to which the Department exercised its option to extend the student loan servicing contracts between the Department and each of Nelnet Servicing and Great Lakes from June 14, 2021 through December 14, 2021. In September 2021, Nelnet Servicing and Great Lakes each entered into contract amendments with the Department, pursuant to which the student loan servicing contracts were extended from December 14, 2021 through December 14, 2023.
In 2017, the Department initiated a contract procurement process referred to as the Next Generation Financial Services Environment ("NextGen") for a new framework for the servicing of all student loans owned by the Department. The Consolidated Appropriations Act, 2021 contains provisions directing certain aspects of the NextGen process, including that any new federal student loan servicing environment is required to provide for the participation of multiple student loan servicers and the allocation of borrower accounts to eligible student loan servicers based on performance. Nelnet cannot predict the timing, nature, or ultimate outcome of the NextGen or any other contract procurement process by the Department.
v3.21.2
Fair Value
9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
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.

 As of September 30, 2021As of December 31, 2020
 Level 1Level 2TotalLevel 1Level 2Total
Assets:   
Investments:
FFELP loan asset-backed debt securities - available-for-sale$— 403,660 403,660 — 346,502 346,502 
Private education loan asset-backed debt securities - available-for-sale— 371,724 371,724 — — — 
Other debt securities - available-for-sale100 2,237 2,337 103 2,002 2,105 
Equity securities (a)61,573 — 61,573 10,114 — 10,114 
Equity securities measured at net asset value (b)8,471 31,927 
Total investments 61,673 777,621 847,765 10,217 348,504 390,648 
Total assets$61,673 777,621 847,765 10,217 348,504 390,648 
(a) As of September 30, 2021, $41.6 million and $20.0 million of equity securities were classified as trading and available-for-sale, respectively. All equity securities as of December 31, 2020 were classified as available-for-sale.
(b) In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 As of September 30, 2021
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$19,690,209 18,469,372 — — 19,690,209 
Accrued loan interest receivable834,831 834,831 — 834,831 — 
Cash and cash equivalents191,936 191,936 191,936 — — 
Investments (at fair value)847,765 847,765 61,673 777,621 — 
Beneficial interest in loan securitizations127,364 108,827 — — 127,364 
Restricted cash764,089 764,089 764,089 — — 
Restricted cash – due to customers295,053 295,053 295,053 — — 
Financial liabilities:  
Bonds and notes payable18,854,255 18,610,748 — 18,854,255 — 
Accrued interest payable4,441 4,441 — 4,441 — 
Bank deposits199,372 200,651 42,585 156,787 — 
Due to customers354,543 354,543 354,543 — — 
 As of December 31, 2020
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$20,454,132 19,391,045 — — 20,454,132 
Accrued loan interest receivable794,611 794,611 — 794,611 — 
Cash and cash equivalents121,249 121,249 121,249 — — 
Investments (at fair value)390,648 390,648 10,217 348,504 — 
Beneficial interest in loan securitizations58,709 58,331 — — 58,709 
Restricted cash553,175 553,175 553,175 — — 
Restricted cash – due to customers283,971 283,971 283,971 — — 
Financial liabilities:  
Bonds and notes payable19,270,810 19,320,726 — 19,270,810 — 
Accrued interest payable28,701 28,701 — 28,701 — 
Bank deposits54,599 54,633 48,422 6,177 — 
Due to customers301,471 301,471 301,471 — — 
The methodologies for estimating the fair value of financial assets and liabilities are described in note 22 of the notes to consolidated financial statements included in the 2020 Annual Report.
v3.21.2
Basis of Financial Reporting (Policies)
9 Months Ended
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Financial Reporting The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2020 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 ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results for the year ending December 31, 2021. 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, 2020 (the "2020 Annual Report").
v3.21.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses (Tables)
9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Loans Receivable and Accrued Interest Receivable
Loans and accrued interest receivable consisted of the following:
As ofAs of
 September 30, 2021December 31, 2020
Non-Nelnet Bank:
Federally insured student loans:
Stafford and other$4,142,059 4,383,000 
Consolidation13,939,429 14,746,173 
Total18,081,488 19,129,173 
Private education loans319,212 320,589 
Consumer loans36,994 109,346 
Non-Nelnet Bank loans18,437,694 19,559,108 
Nelnet Bank:
Federally insured student loans93,930 — 
Private education loans98,395 17,543 
Nelnet Bank loans192,325 17,543 
 
Accrued interest receivable834,831 794,611 
Loan discount, net of unamortized loan premiums and deferred origination costs(22,603)(9,908)
Allowance for loan losses:
Non-Nelnet Bank:
Federally insured loans(115,859)(128,590)
Private education loans(17,053)(19,529)
Consumer loans(4,429)(27,256)
Non-Nelnet Bank allowance for loan losses(137,341)(175,375)
Nelnet Bank:
Federally insured loans(289)— 
Private education loans(414)(323)
Nelnet Bank allowance for loan losses(703)(323)
 $19,304,203 20,185,656 
Allowance for Loan Losses
The following table presents the activity in the allowance for loan losses by portfolio segment.
Balance at beginning of periodImpact of ASC 326 adoptionProvision (negative provision) for loan lossesCharge-offsRecoveriesInitial allowance on loans purchased with credit deterioration (a)Loan salesBalance at end of period
Three months ended September 30, 2021
Non-Nelnet Bank
Federally insured loans$120,802 — 4,452 (10,330)— 935 — 115,859 
Private education loans19,403 — (1,208)(954)113 — (301)17,053 
Consumer loans4,702 — 2,696 (1,133)187 — (2,023)4,429 
Nelnet Bank
Federally insured loans245 — 44 — — — — 289 
Private education loans567 — (157)— — — 414 
$145,719 — 5,827 (12,417)304 935 (2,324)138,044 
Three months ended September 30, 2020
Non-Nelnet Bank
Federally insured loans$144,829 — (5,299)(2,487)— 2,900 — 139,943 
Private education loans25,535 — (5,650)(5)133 — — 20,013 
Consumer loans39,081 — 5,128 (2,723)381 — (15,924)25,943 
$209,445 — (5,821)(5,215)514 2,900 (15,924)185,899 
Nine months ended September 30, 2021
Non-Nelnet Bank
Federally insured loans$128,590 — (3,428)(11,563)— 2,260 — 115,859 
Private education loans19,529 — (781)(1,850)454 — (299)17,053 
Consumer loans27,256 — (7,016)(4,547)668 — (11,932)4,429 
Nelnet Bank
Federally insured loans— — 289 — — — — 289 
Private education loans323 — 89 — — (2)414 
$175,698 — (10,847)(17,960)1,126 2,260 (12,233)138,044 
Nine months ended September 30, 2020
Non-Nelnet Bank
Federally insured loans$36,763 72,291 32,074 (14,885)— 13,700 — 139,943 
Private education loans9,597 4,797 6,471 (1,360)508 — — 20,013 
Consumer loans15,554 13,926 34,931 (9,893)849 — (29,424)25,943 
$61,914 91,014 73,476 (26,138)1,357 13,700 (29,424)185,899 
a) During the three months ended September 30, 2021 and 2020, and nine months ended September 30, 2021 and 2020, the Company acquired $64.6 million (par value), $137.5 million (par value), $153.3 million (par value), and $721.4 million (par value), respectively, of federally insured rehabilitation loans that met the definition of PCD loans when they were purchased by the Company.
Loan Status and Delinquencies The table below shows the Company’s loan status and delinquency amounts.
As of September 30, 2021As of December 31, 2020As of September 30, 2020
Federally insured loans - Non-Nelnet Bank:    
Loans in-school/grace/deferment $909,228 5.0 % $1,036,028 5.4 % $1,037,754 5.4 %
Loans in forbearance 1,826,082 10.1  1,973,175 10.3  1,916,906 10.0 
Loans in repayment status:  
Loans current13,525,751 88.1 %13,683,054 84.9 %14,845,519 91.7 %
Loans delinquent 31-60 days548,670 3.6 633,411 3.9 945,411 5.9 
Loans delinquent 61-90 days286,681 1.9 307,936 1.9 249,523 1.5 
Loans delinquent 91-120 days163,447 1.1 800,257 5.0 129,994 0.8 
Loans delinquent 121-270 days467,441 3.0 674,975 4.2 605 0.0 
Loans delinquent 271 days or greater354,188 2.3 20,337 0.1 19,867 0.1 
Total loans in repayment15,346,178 84.9 100.0 %16,119,970 84.3 100.0 %16,190,919 84.6 100.0 %
Total federally insured loans18,081,488 100.0 % 19,129,173 100.0 % 19,145,579 100.0 %
Accrued interest receivable831,142 791,453 757,960 
Loan discount, net of unamortized premiums and deferred origination costs(23,229)(14,505)(20,554)
Allowance for loan losses(115,859)(128,590)(139,943)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$18,773,542 $19,777,531 $19,743,042 
Private education loans - Non-Nelnet Bank:
Loans in-school/grace/deferment $10,282 3.2 %$5,049 1.6 %$3,839 1.4 %
Loans in forbearance 3,554 1.1 2,359 0.7 5,437 2.0 
Loans in repayment status:
Loans current300,231 98.3 %310,036 99.0 %261,514 98.8 %
Loans delinquent 31-60 days1,870 0.6 1,099 0.4 1,820 0.7 
Loans delinquent 61-90 days912 0.3 675 0.2 454 0.2 
Loans delinquent 91 days or greater2,363 0.8 1,371 0.4 743 0.3 
Total loans in repayment305,376 95.7 100.0 %313,181 97.7 100.0 %264,531 96.6 100.0 %
Total private education loans319,212 100.0 % 320,589 100.0 % 273,807 100.0 %
Accrued interest receivable2,076 2,131 1,960 
Loan discount, net of unamortized premiums(1,496)2,691 1,137 
Allowance for loan losses(17,053)(19,529)(20,013)
Total private education loans and accrued interest receivable, net of allowance for loan losses$302,739 $305,882 $256,891 
As of September 30, 2021As of December 31, 2020As of September 30, 2020
Consumer loans - Non-Nelnet Bank:
Loans in deferment$18 0.0 %$829 0.8 %$1,084 1.1 %
Loans in repayment status:
Loans current35,744 96.6 %105,650 97.4 %96,038 96.9 %
Loans delinquent 31-60 days319 0.9 954 0.9 1,044 1.1 
Loans delinquent 61-90 days243 0.7 804 0.7 776 0.8 
Loans delinquent 91 days or greater670 1.8 1,109 1.0 1,238 1.2 
Total loans in repayment36,976 100.0 100.0 %108,517 99.2 100.0 %99,096 98.9 %100.0 %
Total consumer loans36,994 100.0 %109,346 100.0 %100,180 100.0 %
Accrued interest receivable280 1,001 867 
Loan premium664 1,640 1,505 
Allowance for loan losses(4,429)(27,256)(25,943)
Total consumer loans and accrued interest receivable, net of allowance for loan losses$33,509 $84,731 $76,609 
Federally insured loans - Nelnet Bank:
Loans in-school/grace/deferment$283 0.3 %
Loans in forbearance1,722 1.8 
Loans in repayment status:
Loans current91,366 99.4 %
Loans delinquent 31-60 days277 0.3 
Loans delinquent 61-90 days35 — 
Loans delinquent 91-120 days45 0.1 
Loans delinquent 121-270 days202 0.2 
Loans delinquent 271 days or greater— — 
Total loans in repayment91,925 97.9 100.0 %
Total federally insured loans93,930 100.0 %
Accrued interest receivable1,177 
Loan premium28 
Allowance for loan losses(289)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$94,846 
Private education loans - Nelnet Bank:
Loans in-school/grace/deferment$82 0.1 %$— — %
Loans in forbearance193 0.2 29 0.2 
Loans in repayment status:
Loans current98,120 100.0 %17,514 100.0 %
Loans delinquent 31-60 days— — — — 
Loans delinquent 61-90 days— — — — 
Loans delinquent 91 days or greater— — — — 
Total loans in repayment98,120 99.7 100.0 %17,514 99.8 100.0 %
Total private education loans98,395 100.0 %17,543 100.0 %
Accrued interest receivable156 26 
Deferred origination costs1,430 266 
Allowance for loan losses(414)(323)
Total private education loans and accrued interest receivable, net of allowance for loan losses$99,567 $17,512 
Loans by Year of Origination
The following table presents the amortized cost of the Company's private education and consumer loans by loan status and delinquency amount as of September 30, 2021 based on year of origination. Effective July 1, 2010, no new loan originations can be made under the Federal Family Education Loan Program (the "FFEL Program" or "FFELP") and all new federal loan originations must be made under the Federal Direct Loan Program. As such, all the Company’s federally insured loans were originated prior to July 1, 2010.
Nine months ended September 30, 20212020201920182017Prior yearsTotal
Private education loans - Non-Nelnet Bank:
Loans in school/grace/deferment$1,310 2,202 4,572 — — 2,198 10,282 
Loans in forbearance— 649 657 180 — 2,068 3,554 
Loans in repayment status:
Loans current2,252 75,514 53,814 367 — 168,284 300,231 
Loans delinquent 31-60 days— 147 125 — — 1,598 1,870 
Loans delinquent 61-90 days— — — — — 912 912 
Loans delinquent 91 days or greater— — — — — 2,363 2,363 
Total loans in repayment2,252 75,661 53,939 367 — 173,157 305,376 
Total private education loans$3,562 78,512 59,168 547 — 177,423 319,212 
Accrued interest receivable2,076 
Loan discount, net of unamortized premiums(1,496)
Allowance for loan losses(17,053)
Total private education loans and accrued interest receivable, net of allowance for loan losses$302,739 
Consumer loans - Non-Nelnet Bank:
Loans in deferment$— — — 18 — — 18 
Loans in repayment status:
Loans current19,710 1,295 6,915 7,695 129 — 35,744 
Loans delinquent 31-60 days62 80 119 51 — 319 
Loans delinquent 61-90 days53 — 103 87 — — 243 
Loans delinquent 91 days or greater56 42 250 321 — 670 
Total loans in repayment19,881 1,417 7,387 8,154 137 — 36,976 
Total consumer loans$19,881 1,417 7,387 8,172 137 — 36,994 
Accrued interest receivable280 
Loan premium664 
Allowance for loan losses(4,429)
Total consumer loans and accrued interest receivable, net of allowance for loan losses$33,509 
Private education loans - Nelnet Bank:
Loans in school/grace/deferment$82 — — — — — 82 
Loans in forbearance193 — — — — — 193 
Loans in repayment status:
Loans current85,589 12,531 — — — — 98,120 
Loans delinquent 31-60 days— — — — — — — 
Loans delinquent 61-90 days— — — — — — — 
Loans delinquent 91 days or greater— — — — — — — 
Total loans in repayment85,589 12,531 — — — — 98,120 
Total private education loans$85,864 12,531 — — — — 98,395 
Accrued interest receivable156 
Deferred origination costs1,430 
Allowance for loan losses(414)
Total private education loans and accrued interest receivable, net of allowance for loan losses$99,567 
v3.21.2
Bonds and Notes Payable (Tables)
9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Outstanding Debt Obligations
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 As of September 30, 2021
Carrying
amount
Interest rate
range
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:
   
Bonds and notes based on indices$16,784,982 
0.20% - 2.09%
5/27/25 - 9/25/69
Bonds and notes based on auction450,300 
0.00% - 2.15%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes17,235,282 
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations
860,434 
1.42% - 3.45%
10/25/67 - 8/27/68
FFELP warehouse facilities5,446 
0.17%
11/22/22 / 2/26/24
Private education loan warehouse facility118,299 0.19%2/13/23
Variable-rate bonds and notes issued in private education loan asset-backed securitizations
35,648 
1.65% / 1.84%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
30,409 
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit— 9/22/26
Participation agreement194,190 0.78%5/4/22
Repurchase agreements334,473 
0.57% - 1.13%
11/15/21 - 12/20/23
Secured line of credit5,000 1.84%5/30/22
 18,819,181   
Discount on bonds and notes payable and debt issuance costs(208,433)
Total$18,610,748 

 As of December 31, 2020
Carrying
amount
Interest rate
range
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:   
Bonds and notes based on indices$17,127,643 
0.28% - 2.05%
5/27/25 - 10/25/68
Bonds and notes based on auction749,925 
1.12% - 2.14%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes17,877,568 
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations923,076 
1.42% - 3.45%
10/25/67 - 8/27/68
FFELP warehouse facilities252,165 
0.27% / 0.31%
5/20/22 / 2/26/23
Private education loan warehouse facility150,397 0.28%2/13/22
Consumer loan warehouse facility25,809 0.28%4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations49,025 
1.65% / 1.90%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization37,251 
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit120,000 1.65%12/16/24
Participation agreement118,558 0.84%5/4/21
Secured line of credit5,000 1.90%5/30/22
 19,558,849   
Discount on bonds and notes payable and debt issuance costs(238,123)
Total$19,320,726 
Outstanding Line of Credit Facilities
As of September 30, 2021, the Company had two FFELP warehouse facilities as summarized below.
NFSLW-I (a)NHELP-II (b)Total
Maximum financing amount$60,000 50,000 110,000 
Amount outstanding5,446 — 5,446 
Amount available$54,554 50,000 104,554 
Expiration of liquidity provisionsNovember 22, 2021February 26, 2022
Final maturity dateNovember 22, 2022February 26, 2024
Advanced as equity support$328 115 443 

(a)    On May 20, 2021, the Company extended the expiration of liquidity provisions and the maturity date for this warehouse facility an additional six months to November 22, 2021 and November 22, 2022, respectively. On June 28, 2021, the maximum financing amount for this warehouse facility increased to $770.0 million, and on June 30, 2021 and July 27, 2021, the maximum financing amount decreased to $310.0 million and to $60 million, respectively.
(b)    On February 26, 2021, the Company extended the expiration of liquidity provisions and the maturity date for this warehouse facility an additional year to February 26, 2022 and February 26, 2024, respectively. On October 14, 2021, this facility was terminated.
Asset Backed Securitization Transitions
The following table summarizes the asset-backed securitization transactions completed by the Company during the first nine months of 2021.
NSLT 2021-1NSLT 2021-2Total
Date securities issued6/30/218/31/21
Total original principal amount$797,000 531,300 1,328,300 
Class A senior notes:
Total principal amount$781,000 520,600 1,301,600 
Cost of funds
1-month LIBOR plus 0.50%
1-month LIBOR plus 0.50%
Final maturity date7/25/699/25/69
Class B subordinated notes:
Total principal amount$16,000 10,700 26,700 
Cost of funds
1-month LIBOR plus 1.25%
1-month LIBOR plus 1.20%
Final maturity date7/25/699/25/69
Debt Repurchased
The following table summarizes the Company's repurchases of its own debt. Gains/losses recorded by the Company from the repurchase of debt are included in "other" in "other income/expense" on the Company's consolidated statements of income.
Three months ended September 30,Nine months ended September 30,
2021202020212020
Purchase price$(184,827)(6,054)(205,269)(7,572)
Par value184,781 6,163 204,597 8,090 
Remaining unamortized cost of issuance(3,222)(4)(3,292)(10)
(Loss) gain$(3,268)105 (3,964)508 
v3.21.2
Derivative Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding Basis Swap
The following table summarizes the Company’s outstanding basis swaps as of September 30, 2021 and December 31, 2020, in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps").
MaturityNotional amount
As ofAs of
September 30, 2021December 31, 2020
2021$— 250,000 
20222,000,000 2,000,000 
2023750,000 750,000 
20241,750,000 1,750,000 
20261,150,000 1,150,000 
2027250,000 250,000 
$5,900,000 6,150,000 
Interest Rate Swaps, Floor Income Hedge
The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
As of September 30, 2021As of December 31, 2020
MaturityNotional amountWeighted average fixed rate paid by the Company (a)Notional amountWeighted average fixed rate paid by the Company (a)
2021$100,000 2.95 %$600,000 2.15 %
2022500,000 0.94 500,000 0.94 
2023900,000 0.62 900,000 0.62 
20242,500,000 0.35 2,000,000 0.32 
2025500,000 0.35 500,000 0.35 
2026300,000 0.81 — — 
2031100,000 1.53 — — 
 $4,900,000 0.56 %$4,500,000 0.70 %

(a)    For all interest rate derivatives, the Company receives discrete three-month LIBOR.
Derivative Impact on Statement of Income
The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income.
Three months ended September 30,Nine months ended September 30,
 2021202020212020
Settlements:  
1:3 basis swaps$(700)1,197 (939)10,438 
Interest rate swaps - floor income hedges(5,209)(3,588)(14,648)(2,772)
Total settlements - (expense) income(5,909)(2,391)(15,587)7,666 
Change in fair value:  
1:3 basis swaps1,061 (161)2,755 (1,475)
Interest rate swaps - floor income hedges6,199 3,601 41,700 (19,597)
Total change in fair value - income (expense)7,260 3,440 44,455 (21,072)
Derivative market value adjustments and derivative settlements, net - income (expense)$1,351 1,049 28,868 (13,406)
v3.21.2
Investments (Tables)
9 Months Ended
Sep. 30, 2021
Investments [Abstract]  
Investments
A summary of the Company's investments follows:
As of September 30, 2021As of December 31, 2020
Amortized costGross unrealized gainsGross unrealized lossesFair valueAmortized costGross unrealized gainsGross unrealized lossesFair value
Investments (at fair value):
FFELP loan asset-backed securities- available-for-sale (a)$387,777 15,932 (49)403,660 338,475 8,040 (13)346,502 
Private education loan asset-backed securities - available-for-sale (b)369,859 1,865 — 371,724 — — — — 
Other debt securities - available-for-sale2,337 — — 2,337 2,103 — 2,105 
Equity securities58,336 13,302 (1,594)70,044 36,227 8,768 (2,954)42,041 
Total investments (at fair value)$818,309 31,099 (1,643)847,765 376,805 16,810 (2,967)390,648 
Other Investments (not measured at fair value):
Venture capital and funds:
Measurement alternative (c)151,100 144,795 
Equity method37,020 14,018 
Other 804 894 
Total venture capital and funds188,924 159,707 
Real estate
Equity method35,605 50,291 
Notes receivable3,500 847 
Total real estate39,105 51,138 
Investment in ALLO:
Voting interest/equity method (d)97,776 129,396 
Preferred membership interest and accrued and unpaid preferred return (e)135,300 228,916 
Total investment in ALLO233,076 358,312 
Solar (f)(46,539)(30,373)
Beneficial interest in private education loan securitizations, including accrued interest (g)44,902 — 
Beneficial interest in consumer loan securitizations, net of allowance for credit losses of $4,449 as of December 31, 2020 (g)
37,021 27,954 
Beneficial interest in federally insured student loan securitizations (g)26,904 30,377 
Tax liens and affordable housing3,755 5,177 
Total investments (not measured at fair value)527,148 602,292 
Total investments$1,374,913 $992,940 

(a)    As of September 30, 2021, $194.2 million (par value) of FFELP loan asset-backed securities were subject to participation interests held by Union Bank. See note 3 for additional information.
(b)    As of September 30, 2021, a total of $370.4 million (par value) of private education loan asset-backed securities were subject to repurchase agreements with third-parties. See note 3 for additional information.
(c)    The Company has an investment in Agile Sports Technologies, Inc. (doing business as “Hudl”) that is included in “venture capital and funds” in the above table. On May 27, 2021, the Company made an additional equity investment of approximately $5 million in Hudl, as one of the participants in an equity raise completed by Hudl. Prior to the additional 2021 investment, the Company had direct and indirect equity ownership interests in Hudl of less than 20%, which did not materially change as a result of this transaction. The Company accounts for its investment in Hudl using the measurement alternative method, which requires it to adjust its carrying value of the investment for changes resulting from observable market transactions. For accounting purposes, the May 2021 equity raise transaction was not considered an observable market transaction (not orderly) because it was not subject to customary marketing activities and the price was contractually agreed to during Hudl's prior May 2020 equity raise. Accordingly, the Company did not adjust its carrying value of its Hudl investment to the May 2021 transaction value. As of September 30, 2021, the carrying amount of the Company's investment in Hudl is $133.9 million.
David S. Graff, who has served on the Company's Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl.
See the caption "Subsequent Events" below for information regarding an event on October 15, 2021 impacting another investment accounted for using the measurement alternative method.
(d)    The Company accounts for its voting membership interests in ALLO Holdings LLC, a holding company for ALLO Communications LLC (collectively referred to as "ALLO") under the Hypothetical Liquidation at Book Value ("HLBV") method of accounting. The HLBV method of accounting is used by the Company for equity method investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership or voting interests. The Company applies the HLBV method using a balance sheet approach. A calculation is prepared at each balance sheet date to determine the amount that the Company would receive if an equity investment entity were to liquidate its net assets and distribute that cash to the investors based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is the Company’s share of the earnings or losses from the equity investment for the period. Because the Company will be able to utilize certain tax losses related to ALLO’s operations, the equity investment agreements for the Company have liquidation rights and priorities that are sufficiently different from the voting membership interests percentages such that the HLBV method of accounting was deemed appropriate. Accordingly, the recognition of earnings or losses during any reporting period related to the Company’s equity investment in ALLO may or may not reflect its voting membership interests percentage and could vary substantially from those calculated based on the Company’s voting membership interests in ALLO.
During the three and nine months ended September 30, 2021, the Company recognized losses of $10.5 million and $31.6 million, respectively, under the HLBV method of accounting on its ALLO voting membership interests investment.
Assuming ALLO continues its planned growth in existing and new communities, it will continue to invest substantial amounts in property and equipment to build the network and connect customers. The resulting recognition of depreciation and development costs could result in continuing net operating losses by ALLO under GAAP. Applying the HLBV method of accounting, the Company will continue to recognize a significant portion of ALLO’s anticipated losses over the next several years. Income and losses from the Company's investment in ALLO are included in "other" in "other income/expense" on the consolidated statements of income.
(e)    As of September 30, 2021, the outstanding preferred membership interests and accrued and unpaid preferred return of ALLO held by the Company was $129.7 million and $5.6 million, respectively. The preferred membership interests of ALLO held by the Company earn a preferred annual return of 6.25 percent. During the three and nine months ended September 30, 2021, the Company recognized income on its ALLO preferred membership interests of $2.0 million and $6.4 million, respectively, that is included in "other" in "other income/expense" on the consolidated statements of income.
On January 19, 2021, ALLO obtained certain private debt financing facilities from unrelated third-party lenders providing for aggregate financing of up to $230.0 million. With proceeds from this transaction, ALLO redeemed a portion of its non-voting preferred membership interests held by the Company in exchange for an aggregate redemption price payment to the Company of $100.0 million. Under October 2020 recapitalization agreements for ALLO, the parties have agreed to use commercially reasonable efforts (which expressly excludes requiring ALLO to raise any additional equity financing or sell any assets) to cause ALLO to redeem, on or before April 2024, the remaining preferred membership interests of ALLO held by the Company, plus the amount of accrued and unpaid preferred return on such interests.
(f)    The Company makes investments in entities that promote renewable energy sources (solar). The Company's investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods which range from 5 to 6 years. As of September 30, 2021, the Company has funded a total of $181.4 million in solar investments, which includes $24.5 million funded by syndication partners. The carrying value of the Company's solar investments are reduced by tax credits earned when the solar project is placed in service. The solar investment balance at September 30, 2021 represents the result of total tax credits earned on solar projects placed in service through September 30, 2021 being larger than total payments made by the Company on such projects. The Company is committed to fund an additional $74.0 million on these projects, of which $55.9 million will be provided by syndication partners.
The Company accounts for its solar investments using the HLBV method of accounting. For the majority of the Company's solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment. During the three months ended September 30, 2021 and 2020, the Company recognized pre-tax losses of $3.4 million and $11.8 million, respectively, and for the nine months ended September 30, 2021 and 2020, the Company recognized pre-tax losses of $7.4 million and $12.6 million, respectively, on its solar investments. These losses are included in "other" in "other income/expense" on the consolidated statements of income.
(g)    The Company has partial ownership in certain private education, consumer, and federally insured student loan securitizations. As of the latest remittance reports filed by the various trusts prior to September 30, 2021, the Company's ownership correlates to approximately $545 million, $250 million, and $485 million of private education, consumer, and federally insured student loans, respectively, included in these securitizations.
During the first quarter of 2020, the Company recorded a $26.3 million provision charge related to the Company's beneficial interest in consumer loan securitizations due to distressed economic conditions resulting from the COVID-19 pandemic. Due to improved economic conditions, the Company has reduced the allowance for credit losses related to the consumer loan beneficial interests, including reducing such allowance by $2.4 million during the first quarter of 2021. As of March 31, 2021, the Company no longer has an allowance for credit losses associated with the consumer loan beneficial interests. The activity related to the allowance for credit losses related to the consumer loan beneficial interests is included in “impairment expense and provision for beneficial interests, net” on the consolidated statements of income.
v3.21.2
Intangible Assets (Tables)
9 Months Ended
Sep. 30, 2021
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets
Intangible assets consisted of the following:
Weighted average remaining useful life as of
September 30, 2021 (months)
As ofAs of
September 30, 2021December 31, 2020
Amortizable intangible assets, net:  
Customer relationships (net of accumulated amortization of $94,767 and $83,419, respectively)
105$50,525 66,974 
Computer software (net of accumulated amortization of $3,143 and $4,127, respectively)
274,651 6,430 
Trade names (net of accumulated amortization of $3,455)
— 1,666 
Total - amortizable intangible assets, net98$55,176 75,070 
Future Amortization Expense The Company will continue to amortize intangible assets over their remaining useful lives. As of September 30, 2021, the Company estimates it will record amortization expense as follows:
2021 (October 1 - December 31)$3,147 
20229,939 
20239,830 
20247,457 
20254,644 
2026 and thereafter20,159 
 $55,176 
v3.21.2
Goodwill (Tables)
9 Months Ended
Sep. 30, 2021
Goodwill [Abstract]  
Goodwill
The carrying amount of goodwill as of September 30, 2021 and December 31, 2020 by reportable operating segment was as follows:
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingAsset Generation and ManagementNelnet BankCorporate and Other ActivitiesTotal
Goodwill balance$23,639 76,570 41,883 — — 142,092 
v3.21.2
Property and Equipment (Tables)
9 Months Ended
Sep. 30, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and equipment consisted of the following:
As ofAs of
Useful lifeSeptember 30, 2021December 31, 2020
Computer equipment and software
1-5 years
$220,509 172,664 
Building and building improvements
5-48 years
46,018 52,444 
Office furniture and equipment
1-10 years
23,819 21,899 
Leasehold improvements
1-15 years
9,330 9,168 
Transportation equipment
5-10 years
4,857 4,857 
Land3,642 3,642 
Construction in progress3,783 18,478 
311,958 283,152 
Accumulated depreciation(194,662)(159,625)
Total property and equipment, net$117,296 123,527 
v3.21.2
Earnings per Common Share (Tables)
9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Earnings per Common Share
Presented below is a summary of the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock.
 Three months ended September 30,
20212020
Common shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotal
Numerator:
Net income attributable to Nelnet, Inc.$52,245 893 53,138 70,483 1,020 71,503 
Denominator:
Weighted-average common shares outstanding - basic and diluted37,947,257 648,464 38,595,721 37,988,584 549,892 38,538,476 
Earnings per share - basic and diluted$1.38 1.38 1.38 1.86 1.86 1.86 
Nine months ended September 30,
20212020
Common shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotal
Numerator:
Net income attributable to Nelnet, Inc.$256,416 4,187 260,603 115,794 1,658 117,452 
Denominator:
Weighted-average common shares outstanding - basic and diluted38,025,898 620,994 38,646,892 38,676,092 553,840 39,229,932 
Earnings per share - basic and diluted$6.74 6.74 6.74 2.99 2.99 2.99 
v3.21.2
Segment Reporting (Tables)
9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Operating Segments Reconciliation to Consolidated Financial Statements The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.
 Three months ended September 30, 2021
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunications (a)Asset
Generation and
Management
Nelnet BankCorporate and Other ActivitiesEliminationsTotal
Total interest income$31 344 — 131,781 2,061 2,609 (172)136,654 
Interest expense24 — — 48,662 421 1,242 (172)50,176 
Net interest income344 — 83,119 1,640 1,367 — 86,478 
Less provision (negative provision) for loan losses— — — 5,940 (113)— — 5,827 
Net interest income after provision for loan losses344 — 77,179 1,753 1,367 — 80,651 
Other income/expense:
Loan servicing and systems revenue112,351 — — — — — — 112,351 
Intersegment revenue8,621 — — — — (8,624)— 
Education technology, services, and payment processing revenue— 85,324 — — — — — 85,324 
Communications revenue— — — — — — — — 
Other727 13 — (7,275)450 17,952 — 11,867 
Gain on sale of loans— — — 3,444 — — — 3,444 
Impairment expense and provision for beneficial interests, net(13,243)— — — — (916)— (14,159)
Derivative settlements, net— — — (5,909)— — — (5,909)
Derivative market value adjustments, net— — — 7,260 — — — 7,260 
Total other income/expense108,456 85,340 — (2,480)450 17,036 (8,624)200,178 
Cost of services:
Cost to provide education technology, services, and payment processing services— 31,335 — — — — — 31,335 
Cost to provide communications services— — — — — — — — 
Total cost of services— 31,335 — — — — — 31,335 
Operating expenses:
Salaries and benefits75,305 29,119 — 542 890 22,735 — 128,592 
Depreciation and amortization4,245 2,762 — — — 8,702 — 15,710 
Other expenses12,738 4,804 — 5,420 445 14,918 — 38,324 
Intersegment expenses, net19,217 3,672 — 8,652 32 (22,949)(8,624)— 
Total operating expenses111,505 40,357 — 14,614 1,367 23,406 (8,624)182,626 
Income (loss) before income taxes(3,042)13,992 — 60,085 836 (5,003)— 66,868 
Income tax (expense) benefit (b)730 (3,358)— (14,421)(200)1,600 — (15,649)
Net income (loss)(2,312)10,634 — 45,664 636 (3,403)— 51,219 
Net loss (income) attributable to noncontrolling interests— — — — — 1,919 — 1,919 
Net income (loss) attributable to Nelnet, Inc.$(2,312)10,634 — 45,664 636 (1,484)— 53,138 
Total assets as of September 30, 2021$238,602 415,178 — 20,001,997 413,155 1,740,060 (406,253)22,402,739 

(a) On December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. See note 2 of the notes to consolidated financial statements included in the 2020 Annual Report for a description of the transaction and a summary of the deconsolidation impact. Accordingly, there are no operating results for the (former) Communications operating segment in 2021.
(b) Income taxes for the Nelnet Bank operating segment reflect Nelnet Bank's actual tax expense/benefit as allocated and reflected in its Call Report filed with the Federal Deposit Insurance Corporation. Income taxes for all other operating segments are allocated based on 24% of that segment's income before taxes. The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities.
 Three months ended September 30, 2020
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Nelnet Bank (a)Corporate and Other ActivitiesEliminationsTotal
Total interest income$34 367 — 137,959 — 1,646 (261)139,745 
Interest expense24 16 — 57,755 — 888 (261)58,423 
Net interest income10 351 — 80,204 — 758 — 81,322 
Less provision (negative provision) for loan losses— — — (5,821)— — — (5,821)
Net interest income after provision for loan losses10 351 — 86,025 — 758 — 87,143 
Other income/expense:
Loan servicing and systems revenue113,794 — — — — — — 113,794 
Intersegment revenue8,287 — — — — (8,290)— 
Education technology, services, and payment processing revenue— 74,121 — — — — — 74,121 
Communications revenue— — 20,211 — — — — 20,211 
Other2,353 373 511 1,004 — (2,737)— 1,502 
Gain on sale of loans— — — 14,817 — — — 14,817 
Impairment expense and provision for beneficial interests, net— — — — — — — — 
Derivative settlements, net— — — (2,391)— — — (2,391)
Derivative market value adjustments, net— — — 3,440 — — — 3,440 
Total other income/expense124,434 74,497 20,722 16,870 — (2,737)(8,290)225,494 
Cost of services:
Cost to provide education technology, services, and payment processing services— 25,243 — — — — — 25,243 
Cost to provide communications services— — 5,914 — — — — 5,914 
Total cost of services— 25,243 5,914 — — — — 31,157 
Operating expenses:
Salaries and benefits72,912 25,460 5,485 438 — 21,801 — 126,096 
Depreciation and amortization9,951 2,366 11,152 — — 6,839 — 30,308 
Other expenses12,407 3,126 2,219 3,672 — 13,320 — 34,744 
Intersegment expenses, net15,834 3,610 491 8,868 — (20,513)(8,290)— 
Total operating expenses111,104 34,562 19,347 12,978 — 21,447 (8,290)191,148 
Income (loss) before income taxes13,340 15,043 (4,539)89,917 — (23,426)— 90,332 
Income tax (expense) benefit(3,201)(3,610)1,089 (21,580)— 8,146 — (19,156)
Net income (loss)10,139 11,433 (3,450)68,337 — (15,280)— 71,176 
Net loss (income) attributable to noncontrolling interests— — — — — 327 — 327 
Net income (loss) attributable to Nelnet, Inc.$10,139 11,433 (3,450)68,337 — (14,953)— 71,503 
Total assets as of September 30, 2020$211,726 382,608 305,276 20,686,478 — 770,621 (134,183)22,222,526 

(a)    Nelnet Bank launched operations on November 2, 2020. Accordingly, there are no operating results for the Nelnet Bank operating segment in the three months ended September 30, 2020.
Nine months ended September 30, 2021
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunications (a)Asset
Generation and
Management
Nelnet BankCorporate and Other ActivitiesEliminationsTotal
Total interest income$95 818 — 388,149 5,479 5,379 (578)399,341 
Interest expense70 — — 124,282 1,007 3,158 (578)127,939 
Net interest income25 818 — 263,867 4,472 2,221 — 271,402 
Less provision (negative provision) for loan losses— — — (11,225)378 — — (10,847)
Net interest income after provision for loan losses25 818 — 275,092 4,094 2,221 — 282,249 
Other income/expense:
Loan servicing and systems revenue335,961 — — — — — — 335,961 
Intersegment revenue25,369 — — — — (25,378)— 
Education technology, services, and payment processing revenue— 257,284 — — — — — 257,284 
Communications revenue— — — — — — — — 
Other2,541 13 — (4,514)475 31,668 — 30,183 
Gain on sale of loans— — — 18,715 — — — 18,715 
Impairment expense and provision for beneficial interests, net(13,243)— — 2,436 — (1,416)— (12,223)
Derivative settlements, net— — — (15,587)— — — (15,587)
Derivative market value adjustments, net— — — 44,455 — — — 44,455 
Total other income/expense350,628 257,306 — 45,505 475 30,252 (25,378)658,788 
Cost of services:
Cost to provide education technology, services, and payment processing services— 80,063 — — — — — 80,063 
Cost to provide communications services— — — — — — — — 
Total cost of services— 80,063 — — — — — 80,063 
Operating expenses:
Salaries and benefits210,151 82,154 — 1,594 3,956 65,496 — 363,351 
Depreciation and amortization20,411 8,789 — — — 26,927 — 56,129 
Other expenses39,296 14,063 — 12,763 1,227 40,265 — 107,611 
Intersegment expenses, net52,241 10,856 — 25,627 72 (63,419)(25,378)— 
Total operating expenses322,099 115,862 — 39,984 5,255 69,269 (25,378)527,091 
Income (loss) before income taxes28,554 62,199 — 280,613 (686)(36,796)— 333,883 
Income tax (expense) benefit (b)(6,853)(14,928)— (67,347)151 12,230 — (76,747)
Net income (loss)21,701 47,271 — 213,266 (535)(24,566)— 257,136 
Net loss (income) attributable to noncontrolling interests— — — — — 3,467 — 3,467 
Net income (loss) attributable to Nelnet, Inc.$21,701 47,271 — 213,266 (535)(21,099)— 260,603 
Total assets as of September 30, 2021$238,602 415,178 — 20,001,997 413,155 1,740,060 (406,253)22,402,739 

(a) On December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. See note 2 of the notes to consolidated financial statements included in the 2020 Annual Report for a description of the transaction and a summary of the deconsolidation impact. Accordingly, there are no operating results for the (former) Communications operating segment in 2021.
(b) Income taxes for the Nelnet Bank operating segment reflect Nelnet Bank's actual tax expense/benefit as allocated and reflected in its Call Report filed with the Federal Deposit Insurance Corporation. Income taxes for all other operating segments are allocated based on 24% of that segment's income before taxes. The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities.
Nine months ended September 30, 2020
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Nelnet Bank (a)Corporate and Other ActivitiesEliminationsTotal
Total interest income$403 2,777 — 474,468 — 4,397 (1,228)480,818 
Interest expense97 54 — 275,492 — 3,373 (1,228)277,788 
Net interest income306 2,723 — 198,976 — 1,024 — 203,030 
Less provision (negative provision) for loan losses— — — 73,476 — — — 73,476 
Net interest income after provision for loan losses306 2,723 — 125,500 — 1,024 — 129,554 
Other income/expense:
Loan servicing and systems revenue337,571 — — — — — — 337,571 
Intersegment revenue27,878 17 — — — — (27,895)— 
Education technology, services, and payment processing revenue— 217,100 — — — — — 217,100 
Communications revenue— — 57,390 — — — — 57,390 
Other6,897 373 1,256 4,951 — 56,435 — 69,910 
Gain on sale of loans— — — 33,023 — — — 33,023 
Impairment expense and provision for beneficial interests, net— — — (26,303)— (8,116)— (34,419)
Derivative settlements, net— — — 7,666 — — — 7,666 
Derivative market value adjustments, net— — — (21,072)— — — (21,072)
Total other income/expense372,346 217,490 58,646 (1,735)— 48,319 (27,895)667,169 
Cost of services:
Cost to provide education technology, services, and payment processing services— 63,424 — — — — — 63,424 
Cost to provide communications services— — 17,240 — — — — 17,240 
Total cost of services— 63,424 17,240 — — — — 80,664 
Operating expenses:
Salaries and benefits211,806 73,678 16,471 1,301 — 61,964 — 365,220 
Depreciation and amortization27,941 7,115 32,482 — — 19,811 — 87,349 
Other expenses43,277 11,544 9,681 12,253 — 38,428 — 115,184 
Intersegment expenses, net48,069 10,366 1,650 29,839 — (62,030)(27,895)— 
Total operating expenses331,093 102,703 60,284 43,393 — 58,173 (27,895)567,753 
Income (loss) before income taxes41,559 54,086 (18,878)80,372 — (8,830)— 148,306 
Income tax (expense) benefit(9,974)(12,981)4,531 (19,289)— 7,426 — (30,286)
Net income (loss)31,585 41,105 (14,347)61,083 — (1,404)— 118,020 
Net loss (income) attributable to noncontrolling interests— — — — — (568)— (568)
Net income (loss) attributable to Nelnet, Inc.$31,585 41,105 (14,347)61,083 — (1,972)— 117,452 
Total assets as of September 30, 2020$211,726 382,608 305,276 20,686,478 — 770,621 (134,183)22,222,526 

(a)    Nelnet Bank launched operations on November 2, 2020. Accordingly, there are no operating results for the Nelnet Bank operating segment in the nine months ended September 30, 2020.
v3.21.2
Disaggregated Revenue (Tables)
9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Loan Servicing and Systems
 Three months ended September 30,Nine months ended September 30,
 2021202020212020
Government servicing - Nelnet$37,595 36,295 107,843 112,305 
Government servicing - Great Lakes46,489 45,350 133,654 137,010 
Private education and consumer loan servicing13,198 7,928 34,563 24,733 
FFELP servicing4,557 4,912 13,930 15,443 
Software services 6,952 10,426 22,779 32,395 
Outsourced services3,560 8,883 23,192 15,685 
Loan servicing and systems revenue$112,351 113,794 335,961 337,571 

Education Technology, Services, and Payment Processing
 Three months ended September 30,Nine months ended September 30,
 2021202020212020
Tuition payment plan services$23,618 22,477 79,706 77,011 
Payment processing39,852 35,420 97,898 88,329 
Education technology and services21,098 15,840 78,153 50,820 
Other756 384 1,527 940 
Education technology, services, and payment processing revenue$85,324 74,121 257,284 217,100 
Schedule of Other Income, by Component
The following table provides the components of "other" in "other income/expense" on the consolidated statements of income:
Three months ended September 30,Nine months ended September 30,
2021202020212020
Income/gains from investments, net$16,050 1,687 40,141 51,772 
Investment advisory services2,400 4,463 6,242 8,187 
ALLO preferred return2,043 — 6,384 — 
Management fee revenue727 2,353 2,541 6,897 
Borrower late fee income514 871 1,698 4,377 
Loss from ALLO voting membership interest investment(10,495)— (31,620)— 
Loss from solar investments(3,393)(11,839)(7,375)(12,638)
(Loss) gain on debt repurchased(3,268)105 (3,964)508 
Other7,289 3,862 16,136 10,807 
$11,867 1,502 30,183 69,910 
v3.21.2
Fair Value (Tables)
9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis.

 As of September 30, 2021As of December 31, 2020
 Level 1Level 2TotalLevel 1Level 2Total
Assets:   
Investments:
FFELP loan asset-backed debt securities - available-for-sale$— 403,660 403,660 — 346,502 346,502 
Private education loan asset-backed debt securities - available-for-sale— 371,724 371,724 — — — 
Other debt securities - available-for-sale100 2,237 2,337 103 2,002 2,105 
Equity securities (a)61,573 — 61,573 10,114 — 10,114 
Equity securities measured at net asset value (b)8,471 31,927 
Total investments 61,673 777,621 847,765 10,217 348,504 390,648 
Total assets$61,673 777,621 847,765 10,217 348,504 390,648 
(a) As of September 30, 2021, $41.6 million and $20.0 million of equity securities were classified as trading and available-for-sale, respectively. All equity securities as of December 31, 2020 were classified as available-for-sale.
(b) In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
Fair Value of Financial Instruments
The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 As of September 30, 2021
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$19,690,209 18,469,372 — — 19,690,209 
Accrued loan interest receivable834,831 834,831 — 834,831 — 
Cash and cash equivalents191,936 191,936 191,936 — — 
Investments (at fair value)847,765 847,765 61,673 777,621 — 
Beneficial interest in loan securitizations127,364 108,827 — — 127,364 
Restricted cash764,089 764,089 764,089 — — 
Restricted cash – due to customers295,053 295,053 295,053 — — 
Financial liabilities:  
Bonds and notes payable18,854,255 18,610,748 — 18,854,255 — 
Accrued interest payable4,441 4,441 — 4,441 — 
Bank deposits199,372 200,651 42,585 156,787 — 
Due to customers354,543 354,543 354,543 — — 
 As of December 31, 2020
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$20,454,132 19,391,045 — — 20,454,132 
Accrued loan interest receivable794,611 794,611 — 794,611 — 
Cash and cash equivalents121,249 121,249 121,249 — — 
Investments (at fair value)390,648 390,648 10,217 348,504 — 
Beneficial interest in loan securitizations58,709 58,331 — — 58,709 
Restricted cash553,175 553,175 553,175 — — 
Restricted cash – due to customers283,971 283,971 283,971 — — 
Financial liabilities:  
Bonds and notes payable19,270,810 19,320,726 — 19,270,810 — 
Accrued interest payable28,701 28,701 — 28,701 — 
Bank deposits54,599 54,633 48,422 6,177 — 
Due to customers301,471 301,471 301,471 — — 
v3.21.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loans Receivable and Accrued Interest Receivable (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Accrued interest receivable $ 834,831   $ 794,611      
Loan discount, net of unamortized loan premiums and deferred origination costs (22,603)   (9,908)      
Allowance for loan losses (138,044) $ (145,719) (175,698) $ (185,899) $ (209,445) $ (61,914)
Financing receivable, after allowance for credit loss 19,304,203   20,185,656      
Non-Nelnet Bank loans            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans receivable, gross 18,437,694   19,559,108      
Allowance for loan losses (137,341)   (175,375)      
Federally insured loans - Non-Nelnet Bank:            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans receivable, gross 18,081,488   19,129,173 19,145,579    
Accrued interest receivable 831,142   791,453 757,960    
Loan discount, net of unamortized loan premiums and deferred origination costs (23,229)   (14,505) (20,554)    
Allowance for loan losses (115,859) (120,802) (128,590) (139,943) (144,829) (36,763)
Financing receivable, after allowance for credit loss 18,773,542   19,777,531 19,743,042    
Federally insured loans - Non-Nelnet Bank: | Stafford and other            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans receivable, gross 4,142,059   4,383,000      
Federally insured loans - Non-Nelnet Bank: | Consolidation            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans receivable, gross 13,939,429   14,746,173      
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans receivable, gross 319,212   320,589 273,807    
Accrued interest receivable 2,076   2,131 1,960    
Loan discount, net of unamortized loan premiums and deferred origination costs (1,496)   2,691 1,137    
Allowance for loan losses (17,053) (19,403) (19,529) (20,013) (25,535) (9,597)
Financing receivable, after allowance for credit loss 302,739   305,882 256,891    
Consumer loans - Non-Nelnet Bank:            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans receivable, gross 36,994   109,346 100,180    
Accrued interest receivable 280   1,001 867    
Loan discount, net of unamortized loan premiums and deferred origination costs 664   1,640 1,505    
Allowance for loan losses (4,429) (4,702) (27,256) (25,943) $ (39,081) $ (15,554)
Financing receivable, after allowance for credit loss 33,509   84,731 $ 76,609    
Nelnet Bank loans            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans receivable, gross 192,325   17,543      
Allowance for loan losses (703)   (323)      
Federally insured loans - Nelnet Bank:            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans receivable, gross 93,930   0      
Accrued interest receivable 1,177          
Loan discount, net of unamortized loan premiums and deferred origination costs 28          
Allowance for loan losses (289) (245) 0      
Financing receivable, after allowance for credit loss 94,846          
Private education loans - Nelnet Bank:            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans receivable, gross 98,395   17,543      
Accrued interest receivable 156   26      
Loan discount, net of unamortized loan premiums and deferred origination costs 1,430   266      
Allowance for loan losses (414) $ (567) (323)      
Financing receivable, after allowance for credit loss $ 99,567   $ 17,512      
v3.21.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 29, 2021
May 14, 2021
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Charge-offs of ferally insured loan portfolio     $ (12,417) $ (5,215) $ (17,960) $ (26,138)
Consumer loans - Non-Nelnet Bank:            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Sale of financing receivable $ 18,400 $ 77,400        
Loans sold, gain $ 3,200 $ 15,300        
Residual interest received on sale of financing receivable 6.90% 24.50%        
Charge-offs of ferally insured loan portfolio     (1,133) (2,723) (4,547) (9,893)
Federally insured loans - Non-Nelnet Bank:            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Charge-offs of ferally insured loan portfolio     $ (10,330) $ (2,487) $ (11,563) $ (14,885)
v3.21.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period $ 145,719 $ 209,445 $ 175,698 $ 61,914
(Negative provision) provision for loan losses 5,827 (5,821) (10,847) 73,476
Charge-offs (12,417) (5,215) (17,960) (26,138)
Recoveries 304 514 1,126 1,357
Initial allowance on loans purchased with credit deterioration 935 2,900 2,260 13,700
Loan sales (2,324) (15,924) (12,233) (29,424)
Balance at end of period 138,044 185,899 138,044 185,899
Par value of loans purchased with deteriorated credit quality 64,600 137,500 153,300 721,400
Cumulative Effect, Period Of Adoption, Adjustment        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period       91,014
Federally insured loans - Non-Nelnet Bank:        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period 120,802 144,829 128,590 36,763
(Negative provision) provision for loan losses 4,452 (5,299) (3,428) 32,074
Charge-offs (10,330) (2,487) (11,563) (14,885)
Recoveries 0 0 0 0
Initial allowance on loans purchased with credit deterioration 935 2,900 2,260 13,700
Loan sales 0 0 0 0
Balance at end of period 115,859 139,943 115,859 139,943
Federally insured loans - Non-Nelnet Bank: | Cumulative Effect, Period Of Adoption, Adjustment        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period       72,291
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period 19,403 25,535 19,529 9,597
(Negative provision) provision for loan losses (1,208) (5,650) (781) 6,471
Charge-offs (954) (5) (1,850) (1,360)
Recoveries 113 133 454 508
Initial allowance on loans purchased with credit deterioration 0 0 0 0
Loan sales (301) 0 (299) 0
Balance at end of period 17,053 20,013 17,053 20,013
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Cumulative Effect, Period Of Adoption, Adjustment        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period       4,797
Consumer loans - Non-Nelnet Bank:        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period 4,702 39,081 27,256 15,554
(Negative provision) provision for loan losses 2,696 5,128 (7,016) 34,931
Charge-offs (1,133) (2,723) (4,547) (9,893)
Recoveries 187 381 668 849
Initial allowance on loans purchased with credit deterioration 0 0 0 0
Loan sales (2,023) (15,924) (11,932) (29,424)
Balance at end of period 4,429 $ 25,943 4,429 25,943
Consumer loans - Non-Nelnet Bank: | Cumulative Effect, Period Of Adoption, Adjustment        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period       $ 13,926
Federally insured loans - Nelnet Bank:        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period 245   0  
(Negative provision) provision for loan losses 44   289  
Charge-offs 0   0  
Recoveries 0   0  
Initial allowance on loans purchased with credit deterioration 0   0  
Loan sales 0   0  
Balance at end of period 289   289  
Private education loans - Nelnet Bank:        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period 567   323  
(Negative provision) provision for loan losses (157)   89  
Charge-offs 0   0  
Recoveries 4   4  
Initial allowance on loans purchased with credit deterioration 0   0  
Loan sales 0   (2)  
Balance at end of period $ 414   $ 414  
v3.21.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loan Status and Delinquencies (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Dec. 31, 2019
Loans in repayment status:            
Accrued interest receivable $ 834,831   $ 794,611      
(Loan discount, net of unamortized premiums) Loan premium (22,603)   (9,908)      
Allowance for loan losses (138,044) $ (145,719) (175,698) $ (185,899) $ (209,445) $ (61,914)
Financing receivable, after allowance for credit loss 19,304,203   20,185,656      
Federally insured loans - Non-Nelnet Bank:            
Financing Receivable, Recorded Investment [Line Items]            
Loans in-school/grace/deferment $ 909,228   $ 1,036,028 $ 1,037,754    
Loans in-school/grace/deferment, percent 5.00%   5.40% 5.40%    
Loans in forbearance $ 1,826,082   $ 1,973,175 $ 1,916,906    
Loans in forbearance, percent 10.10%   10.30% 10.00%    
Loans in repayment status:            
Loans receivable, gross $ 18,081,488   $ 19,129,173 $ 19,145,579    
Total loans in repayment $ 15,346,178   $ 16,119,970 $ 16,190,919    
Loans in repayment, percent 84.90%   84.30% 84.60%    
Total loans in repayment, percentage 100.00%   100.00% 100.00%    
Total loans, percent 100.00%   100.00% 100.00%    
Accrued interest receivable $ 831,142   $ 791,453 $ 757,960    
(Loan discount, net of unamortized premiums) Loan premium (23,229)   (14,505) (20,554)    
Allowance for loan losses (115,859) (120,802) (128,590) (139,943) (144,829) (36,763)
Financing receivable, after allowance for credit loss 18,773,542   19,777,531 19,743,042    
Federally insured loans - Non-Nelnet Bank: | Loans current            
Loans in repayment status:            
Loans receivable, gross $ 13,525,751   $ 13,683,054 $ 14,845,519    
Loans current, percentage 88.10%   84.90% 91.70%    
Federally insured loans - Non-Nelnet Bank: | Loans delinquent 31-60 days            
Loans in repayment status:            
Loans receivable, gross $ 548,670   $ 633,411 $ 945,411    
Loans past due, percentage 3.60%   3.90% 5.90%    
Federally insured loans - Non-Nelnet Bank: | Loans delinquent 61-90 days            
Loans in repayment status:            
Loans receivable, gross $ 286,681   $ 307,936 $ 249,523    
Loans past due, percentage 1.90%   1.90% 1.50%    
Federally insured loans - Non-Nelnet Bank: | Loans delinquent 91-120 days            
Loans in repayment status:            
Loans receivable, gross $ 163,447   $ 800,257 $ 129,994    
Loans past due, percentage 1.10%   5.00% 0.80%    
Federally insured loans - Non-Nelnet Bank: | Loans delinquent 121-270 days            
Loans in repayment status:            
Loans receivable, gross $ 467,441   $ 674,975 $ 605    
Loans past due, percentage 3.00%   4.20% 0.00%    
Federally insured loans - Non-Nelnet Bank: | Loans delinquent 271 days or greater            
Loans in repayment status:            
Loans receivable, gross $ 354,188   $ 20,337 $ 19,867    
Loans past due, percentage 2.30%   0.10% 0.10%    
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank            
Financing Receivable, Recorded Investment [Line Items]            
Loans in-school/grace/deferment $ 10,282   $ 5,049 $ 3,839    
Loans in-school/grace/deferment, percent 3.20%   1.60% 1.40%    
Loans in forbearance $ 3,554   $ 2,359 $ 5,437    
Loans in forbearance, percent 1.10%   0.70% 2.00%    
Loans in repayment status:            
Loans receivable, gross $ 319,212   $ 320,589 $ 273,807    
Total loans in repayment $ 305,376   $ 313,181 $ 264,531    
Loans in repayment, percent 95.70%   97.70% 96.60%    
Total loans in repayment, percentage 100.00%   100.00% 100.00%    
Total loans, percent 100.00%   100.00% 100.00%    
Accrued interest receivable $ 2,076   $ 2,131 $ 1,960    
(Loan discount, net of unamortized premiums) Loan premium (1,496)   2,691 1,137    
Allowance for loan losses (17,053) (19,403) (19,529) (20,013) (25,535) (9,597)
Financing receivable, after allowance for credit loss 302,739   305,882 256,891    
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans current            
Loans in repayment status:            
Loans receivable, gross $ 300,231   $ 310,036 $ 261,514    
Loans current, percentage 98.30%   99.00% 98.80%    
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans delinquent 31-60 days            
Loans in repayment status:            
Loans receivable, gross $ 1,870   $ 1,099 $ 1,820    
Loans past due, percentage 0.60%   0.40% 0.70%    
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans delinquent 61-90 days            
Loans in repayment status:            
Loans receivable, gross $ 912   $ 675 $ 454    
Loans past due, percentage 0.30%   0.20% 0.20%    
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans delinquent 91 days or greater            
Loans in repayment status:            
Loans receivable, gross $ 2,363   $ 1,371 $ 743    
Loans past due, percentage 0.80%   0.40% 0.30%    
Consumer loans - Non-Nelnet Bank:            
Financing Receivable, Recorded Investment [Line Items]            
Loans in-school/grace/deferment $ 18   $ 829 $ 1,084    
Loans in-school/grace/deferment, percent 0.00%   0.80% 1.10%    
Loans in repayment status:            
Loans receivable, gross $ 36,994   $ 109,346 $ 100,180    
Total loans in repayment $ 36,976   $ 108,517 $ 99,096    
Loans in repayment, percent 100.00%   99.20% 98.90%    
Total loans in repayment, percentage 100.00%   100.00% 100.00%    
Total loans, percent 100.00%   100.00% 100.00%    
Accrued interest receivable $ 280   $ 1,001 $ 867    
(Loan discount, net of unamortized premiums) Loan premium 664   1,640 1,505    
Allowance for loan losses (4,429) (4,702) (27,256) (25,943) $ (39,081) $ (15,554)
Financing receivable, after allowance for credit loss 33,509   84,731 76,609    
Consumer loans - Non-Nelnet Bank: | Loans current            
Loans in repayment status:            
Loans receivable, gross $ 35,744   $ 105,650 $ 96,038    
Loans current, percentage 96.60%   97.40% 96.90%    
Consumer loans - Non-Nelnet Bank: | Loans delinquent 31-60 days            
Loans in repayment status:            
Loans receivable, gross $ 319   $ 954 $ 1,044    
Loans past due, percentage 0.90%   0.90% 1.10%    
Consumer loans - Non-Nelnet Bank: | Loans delinquent 61-90 days            
Loans in repayment status:            
Loans receivable, gross $ 243   $ 804 $ 776    
Loans past due, percentage 0.70%   0.70% 0.80%    
Consumer loans - Non-Nelnet Bank: | Loans delinquent 91 days or greater            
Loans in repayment status:            
Loans receivable, gross $ 670   $ 1,109 $ 1,238    
Loans past due, percentage 1.80%   1.00% 1.20%    
Federally insured loans - Nelnet Bank:            
Financing Receivable, Recorded Investment [Line Items]            
Loans in-school/grace/deferment $ 283          
Loans in-school/grace/deferment, percent 0.30%          
Loans in forbearance $ 1,722          
Loans in forbearance, percent 1.80%          
Loans in repayment status:            
Loans receivable, gross $ 93,930   $ 0      
Total loans in repayment $ 91,925          
Loans in repayment, percent 97.90%          
Total loans in repayment, percentage 100.00%          
Total loans, percent 100.00%          
Accrued interest receivable $ 1,177          
(Loan discount, net of unamortized premiums) Loan premium 28          
Allowance for loan losses (289) (245) 0      
Financing receivable, after allowance for credit loss 94,846          
Federally insured loans - Nelnet Bank: | Loans current            
Loans in repayment status:            
Loans receivable, gross $ 91,366          
Loans current, percentage 99.40%          
Federally insured loans - Nelnet Bank: | Loans delinquent 31-60 days            
Loans in repayment status:            
Loans receivable, gross $ 277          
Loans past due, percentage 0.30%          
Federally insured loans - Nelnet Bank: | Loans delinquent 61-90 days            
Loans in repayment status:            
Loans receivable, gross $ 35          
Loans past due, percentage 0.00%          
Federally insured loans - Nelnet Bank: | Loans delinquent 91-120 days            
Loans in repayment status:            
Loans receivable, gross $ 45          
Loans past due, percentage 0.10%          
Federally insured loans - Nelnet Bank: | Loans delinquent 121-270 days            
Loans in repayment status:            
Loans receivable, gross $ 202          
Loans past due, percentage 0.20%          
Federally insured loans - Nelnet Bank: | Loans delinquent 271 days or greater            
Loans in repayment status:            
Loans receivable, gross $ 0          
Loans past due, percentage 0.00%          
Private education loans - Nelnet Bank:            
Financing Receivable, Recorded Investment [Line Items]            
Loans in-school/grace/deferment $ 82   $ 0      
Loans in-school/grace/deferment, percent 0.10%   0.00%      
Loans in forbearance $ 193   $ 29      
Loans in forbearance, percent 0.20%   0.20%      
Loans in repayment status:            
Loans receivable, gross $ 98,395   $ 17,543      
Total loans in repayment $ 98,120   $ 17,514      
Loans in repayment, percent 99.70%   99.80%      
Total loans in repayment, percentage 100.00%   100.00%      
Total loans, percent 100.00%   100.00%      
Accrued interest receivable $ 156   $ 26      
(Loan discount, net of unamortized premiums) Loan premium 1,430   266      
Allowance for loan losses (414) $ (567) (323)      
Financing receivable, after allowance for credit loss 99,567   17,512      
Private education loans - Nelnet Bank: | Loans current            
Loans in repayment status:            
Loans receivable, gross $ 98,120   $ 17,514      
Loans current, percentage 100.00%   100.00%      
Private education loans - Nelnet Bank: | Loans delinquent 31-60 days            
Loans in repayment status:            
Loans receivable, gross $ 0   $ 0      
Loans past due, percentage 0.00%   0.00%      
Private education loans - Nelnet Bank: | Loans delinquent 61-90 days            
Loans in repayment status:            
Loans receivable, gross $ 0   $ 0      
Loans past due, percentage 0.00%   0.00%      
Private education loans - Nelnet Bank: | Loans delinquent 91 days or greater            
Loans in repayment status:            
Loans receivable, gross $ 0   $ 0      
Loans past due, percentage 0.00%   0.00%      
v3.21.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loans by Year of Origination (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]            
Accrued interest receivable $ 834,831   $ 794,611      
(Loan discount, net of unamortized premiums) Loan premium (22,603)   (9,908)      
Allowance for loan losses (138,044) $ (145,719) (175,698) $ (185,899) $ (209,445) $ (61,914)
Financing receivable, after allowance for credit loss 19,304,203   20,185,656      
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 3,562          
2020 78,512          
2019 59,168          
2018 547          
2017 0          
Prior years 177,423          
Total loans 319,212   320,589 273,807    
Accrued interest receivable 2,076   2,131 1,960    
(Loan discount, net of unamortized premiums) Loan premium (1,496)   2,691 1,137    
Allowance for loan losses (17,053) (19,403) (19,529) (20,013) (25,535) (9,597)
Financing receivable, after allowance for credit loss 302,739   305,882 256,891    
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans current            
Financing Receivable, Credit Quality Indicator [Line Items]            
Total loans 300,231   310,036 261,514    
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans delinquent 31-60 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Total loans 1,870   1,099 1,820    
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans delinquent 61-90 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Total loans 912   675 454    
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans delinquent 91 days or greater            
Financing Receivable, Credit Quality Indicator [Line Items]            
Total loans 2,363   1,371 743    
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans in school/grace/deferment            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 1,310          
2020 2,202          
2019 4,572          
2018 0          
2017 0          
Prior years 2,198          
Total loans 10,282          
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans in forbearance            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 0          
2020 649          
2019 657          
2018 180          
2017 0          
Prior years 2,068          
Total loans 3,554          
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans in repayment status:            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 2,252          
2020 75,661          
2019 53,939          
2018 367          
2017 0          
Prior years 173,157          
Total loans 305,376          
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans in repayment status: | Loans current            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 2,252          
2020 75,514          
2019 53,814          
2018 367          
2017 0          
Prior years 168,284          
Total loans 300,231          
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 31-60 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 0          
2020 147          
2019 125          
2018 0          
2017 0          
Prior years 1,598          
Total loans 1,870          
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 61-90 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 0          
2020 0          
2019 0          
2018 0          
2017 0          
Prior years 912          
Total loans 912          
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 91 days or greater            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 0          
2020 0          
2019 0          
2018 0          
2017 0          
Prior years 2,363          
Total loans 2,363          
Consumer loans - Non-Nelnet Bank:            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 19,881          
2020 1,417          
2019 7,387          
2018 8,172          
2017 137          
Prior years 0          
Total loans 36,994   109,346 100,180    
Accrued interest receivable 280   1,001 867    
(Loan discount, net of unamortized premiums) Loan premium 664   1,640 1,505    
Allowance for loan losses (4,429) (4,702) (27,256) (25,943) $ (39,081) $ (15,554)
Financing receivable, after allowance for credit loss 33,509   84,731 76,609    
Consumer loans - Non-Nelnet Bank: | Loans current            
Financing Receivable, Credit Quality Indicator [Line Items]            
Total loans 35,744   105,650 96,038    
Consumer loans - Non-Nelnet Bank: | Loans delinquent 31-60 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Total loans 319   954 1,044    
Consumer loans - Non-Nelnet Bank: | Loans delinquent 61-90 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Total loans 243   804 776    
Consumer loans - Non-Nelnet Bank: | Loans delinquent 91 days or greater            
Financing Receivable, Credit Quality Indicator [Line Items]            
Total loans 670   1,109 $ 1,238    
Consumer loans - Non-Nelnet Bank: | Loans in school/grace/deferment            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 0          
2020 0          
2019 0          
2018 18          
2017 0          
Prior years 0          
Total loans 18          
Consumer loans - Non-Nelnet Bank: | Loans in repayment status:            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 19,881          
2020 1,417          
2019 7,387          
2018 8,154          
2017 137          
Prior years 0          
Total loans 36,976          
Consumer loans - Non-Nelnet Bank: | Loans in repayment status: | Loans current            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 19,710          
2020 1,295          
2019 6,915          
2018 7,695          
2017 129          
Prior years 0          
Total loans 35,744          
Consumer loans - Non-Nelnet Bank: | Loans in repayment status: | Loans delinquent 31-60 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 62          
2020 80          
2019 119          
2018 51          
2017 7          
Prior years 0          
Total loans 319          
Consumer loans - Non-Nelnet Bank: | Loans in repayment status: | Loans delinquent 61-90 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 53          
2020 0          
2019 103          
2018 87          
2017 0          
Prior years 0          
Total loans 243          
Consumer loans - Non-Nelnet Bank: | Loans in repayment status: | Loans delinquent 91 days or greater            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 56          
2020 42          
2019 250          
2018 321          
2017 1          
Prior years 0          
Total loans 670          
Private education loans - Nelnet Bank:            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 85,864          
2020 12,531          
2019 0          
2018 0          
2017 0          
Prior years 0          
Total loans 98,395   17,543      
Accrued interest receivable 156   26      
(Loan discount, net of unamortized premiums) Loan premium 1,430   266      
Deferred origination costs 1,430          
Allowance for loan losses (414) $ (567) (323)      
Financing receivable, after allowance for credit loss 99,567   17,512      
Private education loans - Nelnet Bank: | Loans current            
Financing Receivable, Credit Quality Indicator [Line Items]            
Total loans 98,120   17,514      
Private education loans - Nelnet Bank: | Loans delinquent 31-60 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Total loans 0   0      
Private education loans - Nelnet Bank: | Loans delinquent 61-90 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Total loans 0   0      
Private education loans - Nelnet Bank: | Loans delinquent 91 days or greater            
Financing Receivable, Credit Quality Indicator [Line Items]            
Total loans 0   $ 0      
Private education loans - Nelnet Bank: | Loans in school/grace/deferment            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 82          
2020 0          
2019 0          
2018 0          
2017 0          
Prior years 0          
Total loans 82          
Private education loans - Nelnet Bank: | Loans in forbearance            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 193          
2020 0          
2019 0          
2018 0          
2017 0          
Prior years 0          
Total loans 193          
Private education loans - Nelnet Bank: | Loans in repayment status:            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 85,589          
2020 12,531          
2019 0          
2018 0          
2017 0          
Prior years 0          
Total loans 98,120          
Private education loans - Nelnet Bank: | Loans in repayment status: | Loans current            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 85,589          
2020 12,531          
2019 0          
2018 0          
2017 0          
Prior years 0          
Total loans 98,120          
Private education loans - Nelnet Bank: | Loans in repayment status: | Loans delinquent 31-60 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 0          
2020 0          
2019 0          
2018 0          
2017 0          
Prior years 0          
Total loans 0          
Private education loans - Nelnet Bank: | Loans in repayment status: | Loans delinquent 61-90 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 0          
2020 0          
2019 0          
2018 0          
2017 0          
Prior years 0          
Total loans 0          
Private education loans - Nelnet Bank: | Loans in repayment status: | Loans delinquent 91 days or greater            
Financing Receivable, Credit Quality Indicator [Line Items]            
Nine months ended September 30, 2021 0          
2020 0          
2019 0          
2018 0          
2017 0          
Prior years 0          
Total loans $ 0          
v3.21.2
Bonds and Notes Payable - Outstanding Debt Obligations (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 18,819,181 $ 19,558,849
Discount on bonds and notes payable and debt issuance costs (208,433) (238,123)
Bonds and notes payable, net 18,610,748 19,320,726
Unsecured line of credit    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 0 $ 120,000
Interest rate 0.00% 1.65%
Participation agreement    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 194,190 $ 118,558
Interest rate 0.78% 0.84%
Repurchase agreements    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 334,473  
Secured line of credit    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 5,000 $ 5,000
Interest rate 1.84% 1.90%
Federally insured | Bonds and notes based on indices    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 16,784,982 $ 17,127,643
Federally insured | Bonds and notes based on auction    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 450,300 749,925
Federally insured | Variable-rate bonds and notes    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 17,235,282 17,877,568
Federally insured | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 860,434 923,076
Federally insured | Warehouse facilities    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 5,446 252,165
Private education | Variable-rate bonds and notes    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 35,648 49,025
Private education | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 30,409 37,251
Private education | Warehouse facilities    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 118,299 $ 150,397
Interest rate 0.19% 0.28%
Consumer loan | Warehouse facilities    
Debt Instrument [Line Items]    
Bonds and notes payable, gross   $ 25,809
Interest rate   0.28%
Minimum | Repurchase agreements    
Debt Instrument [Line Items]    
Interest rate 0.57%  
Minimum | Federally insured | Bonds and notes based on indices    
Debt Instrument [Line Items]    
Interest rate 0.20% 0.28%
Minimum | Federally insured | Bonds and notes based on auction    
Debt Instrument [Line Items]    
Interest rate 0.00% 1.12%
Minimum | Federally insured | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 1.42% 1.42%
Minimum | Federally insured | Warehouse facilities    
Debt Instrument [Line Items]    
Interest rate 0.17% 0.27%
Minimum | Private education | Variable-rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 1.65% 1.65%
Minimum | Private education | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 3.60% 3.60%
Maximum | Repurchase agreements    
Debt Instrument [Line Items]    
Interest rate 1.13%  
Maximum | Federally insured | Bonds and notes based on indices    
Debt Instrument [Line Items]    
Interest rate 2.09% 2.05%
Maximum | Federally insured | Bonds and notes based on auction    
Debt Instrument [Line Items]    
Interest rate 2.15% 2.14%
Maximum | Federally insured | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 3.45% 3.45%
Maximum | Federally insured | Warehouse facilities    
Debt Instrument [Line Items]    
Interest rate   0.31%
Maximum | Private education | Variable-rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 1.84% 1.90%
Maximum | Private education | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 5.35% 5.35%
v3.21.2
Bonds and Notes Payable - Outstanding Lines of Credit (Details) - Warehouse facilities
Sep. 30, 2021
USD ($)
line_of_credit_facility
Jul. 27, 2021
USD ($)
Jun. 30, 2021
USD ($)
Jun. 28, 2021
USD ($)
Line of Credit Facility [Line Items]        
Number of line of credit facilities | line_of_credit_facility 2      
Federally insured student loans        
Line of Credit Facility [Line Items]        
Maximum financing amount $ 110,000,000      
Amount outstanding 5,446,000      
Amount available 104,554,000      
Advanced as equity support 443,000      
NFSLW-I | Federally insured student loans        
Line of Credit Facility [Line Items]        
Maximum financing amount 60,000,000 $ 60,000,000 $ 310,000,000 $ 770,000,000
Amount outstanding 5,446,000      
Amount available 54,554,000      
Advanced as equity support 328,000      
NHELP-II | Federally insured student loans        
Line of Credit Facility [Line Items]        
Maximum financing amount 50,000,000      
Amount outstanding 0      
Amount available 50,000,000      
Advanced as equity support $ 115,000      
v3.21.2
Bonds and Notes Payable - Asset-Backed Securitizations Transactions (Details)
9 Months Ended
Sep. 30, 2021
USD ($)
Secured line of credit | NSLT 2021-1  
Debt Instrument [Line Items]  
Total principal amount $ 797,000,000
Secured line of credit | NSLT 2021-2  
Debt Instrument [Line Items]  
Total principal amount 531,300,000
Secured line of credit | 2021 Notes  
Debt Instrument [Line Items]  
Total principal amount 1,328,300,000
Senior Notes | Class A 2021-1 Notes  
Debt Instrument [Line Items]  
Total principal amount $ 781,000,000
Senior Notes | Class A 2021-1 Notes | London Interbank Offered Rate (LIBOR)  
Debt Instrument [Line Items]  
Cost of funds 0.50%
Senior Notes | Class A Senior Notes NSLT 2021-2 Notes  
Debt Instrument [Line Items]  
Total principal amount $ 520,600,000
Senior Notes | Class A Senior Notes NSLT 2021-2 Notes | London Interbank Offered Rate (LIBOR)  
Debt Instrument [Line Items]  
Cost of funds 0.50%
Senior Notes | Class A Notes 2021  
Debt Instrument [Line Items]  
Total principal amount $ 1,301,600,000
Subordinated Debt | Class B 2021-1 Notes  
Debt Instrument [Line Items]  
Total principal amount $ 16,000,000
Subordinated Debt | Class B 2021-1 Notes | London Interbank Offered Rate (LIBOR)  
Debt Instrument [Line Items]  
Cost of funds 1.25%
Subordinated Debt | Class B Subordinated NSLT 2021-2 Notes  
Debt Instrument [Line Items]  
Total principal amount $ 10,700,000
Subordinated Debt | Class B Subordinated NSLT 2021-2 Notes | London Interbank Offered Rate (LIBOR)  
Debt Instrument [Line Items]  
Cost of funds 1.20%
Subordinated Debt | Class B Notes 2021  
Debt Instrument [Line Items]  
Total principal amount $ 26,700,000
v3.21.2
Bonds and Notes Payable - Narrative (Details)
3 Months Ended 9 Months Ended
Sep. 22, 2021
USD ($)
fICO_score
Sep. 21, 2021
USD ($)
May 03, 2021
Mar. 31, 2021
USD ($)
Sep. 30, 2021
USD ($)
Feb. 12, 2021
USD ($)
Dec. 31, 2020
USD ($)
Debt Instrument [Line Items]              
Other borrowings, termination notice period         5 days    
Other borrowings, maximum         $ 100,000,000    
Repurchase agreements, contractual maturity adjustment, written notice period     180 days        
Repurchase agreements, amount collateralized by private education loan asset-backed securities         223,800,000    
Additional repurchase agreement, amount collateralized by private education loan asset-backed securities         110,600,000    
Decrease in interest on bonds, notes payable, and bank deposits       $ 23,800,000      
Union Bank and Trust Company              
Debt Instrument [Line Items]              
Amount of participation, student loan asset-backed securities         194,200,000    
Unsecured Line of Credit | Line of Credit              
Debt Instrument [Line Items]              
Amount outstanding         0    
Amount available         495,000,000    
Warehouse facilities | Private Loan Warehouse Facility              
Debt Instrument [Line Items]              
Maximum financing amount           $ 175,000,000 $ 200,000,000
Amount outstanding         118,300,000    
Amount available         56,700,000    
Advanced as equity support         12,900,000    
Warehouse facilities | Consumer Loan Warehouse Facility              
Debt Instrument [Line Items]              
Maximum financing amount         $ 100,000,000    
Unsecured Debt | Unsecured Line of Credit | Line of Credit              
Debt Instrument [Line Items]              
Maximum financing amount $ 495,000,000 $ 455,000,000          
Higher borrowing capacity option $ 737,500,000            
Decrease in cost of funds for drawn amounts 0.25%            
Decrease in cost of funds for undrawn amounts 0.025%            
Percentage of net worth used to limit indebtedness 10.00% 5.00%          
Percentage of net worth used to limit permitted investments 50.00% 40.00%          
Non-federal family education loans, maximum   $ 850,000,000          
Percentage of net worth used to limit non-federal family education loans 50.00%            
FICO score threshold for non-federal family education loans (less than) (in FICO score) | fICO_score 700            
Minimum | Warehouse facilities | Private Loan Warehouse Facility              
Debt Instrument [Line Items]              
Advance rate         80.00%    
Maximum | Warehouse facilities | Private Loan Warehouse Facility              
Debt Instrument [Line Items]              
Advance rate         90.00%    
v3.21.2
Bonds and Notes Payable - Debt Repurchased (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Debt Disclosure [Abstract]        
Purchase price $ (184,827) $ (6,054) $ (205,269) $ (7,572)
Par value 184,781 6,163 204,597 8,090
Remaining unamortized cost of issuance (3,222) (4) (3,292) (10)
(Loss) gain $ (3,268) $ 105 $ (3,964) $ 508
v3.21.2
Derivative Financial Instruments - Outstanding Basis Swap (Details) - 1:3 basis swaps - USD ($)
Sep. 30, 2021
Dec. 31, 2020
Derivative [Line Items]    
Notional amount $ 5,900,000,000 $ 6,150,000,000
2021    
Derivative [Line Items]    
Notional amount 0 250,000,000
2022    
Derivative [Line Items]    
Notional amount 2,000,000,000 2,000,000,000
2023    
Derivative [Line Items]    
Notional amount 750,000,000 750,000,000
2024    
Derivative [Line Items]    
Notional amount 1,750,000,000 1,750,000,000
2026    
Derivative [Line Items]    
Notional amount 1,150,000,000 1,150,000,000
2027    
Derivative [Line Items]    
Notional amount $ 250,000,000 $ 250,000,000
v3.21.2
Derivative Financial Instruments - Narrative (Details)
Sep. 30, 2021
Dec. 31, 2020
1:3 basis swaps | London Interbank Offered Rate (LIBOR)    
Derivative [Line Items]    
Weighted average rate 0.091% 0.091%
v3.21.2
Derivative Financial Instruments - Interest Rate Swaps, Floor Income Hedge (Details) - Interest rate swaps - floor income hedges - Interest Rate Swap - USD ($)
Sep. 30, 2021
Dec. 31, 2020
Derivative [Line Items]    
Notional amount $ 4,900,000,000 $ 4,500,000,000
Weighted average fixed rate paid by the Company 0.56% 0.70%
2021    
Derivative [Line Items]    
Notional amount $ 100,000,000 $ 600,000,000
Weighted average fixed rate paid by the Company 2.95% 2.15%
2022    
Derivative [Line Items]    
Notional amount $ 500,000,000 $ 500,000,000
Weighted average fixed rate paid by the Company 0.94% 0.94%
2023    
Derivative [Line Items]    
Notional amount $ 900,000,000 $ 900,000,000
Weighted average fixed rate paid by the Company 0.62% 0.62%
2024    
Derivative [Line Items]    
Notional amount $ 2,500,000,000 $ 2,000,000,000
Weighted average fixed rate paid by the Company 0.35% 0.32%
2025    
Derivative [Line Items]    
Notional amount $ 500,000,000 $ 500,000,000
Weighted average fixed rate paid by the Company 0.35% 0.35%
2026    
Derivative [Line Items]    
Notional amount $ 300,000,000 $ 0
Weighted average fixed rate paid by the Company 0.81% 0.00%
2031    
Derivative [Line Items]    
Notional amount $ 100,000,000 $ 0
Weighted average fixed rate paid by the Company 1.53% 0.00%
v3.21.2
Derivative Financial Instruments - Derivative Impact on Statement of Income (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative settlements, net $ (5,909) $ (2,391) $ (15,587) $ 7,666
Derivative market value adjustments and derivative settlements, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative settlements, net (5,909) (2,391) (15,587) 7,666
Change in fair value 7,260 3,440 44,455 (21,072)
Derivative market value adjustments and derivative settlements, net - income (expense) 1,351 1,049 28,868 (13,406)
1:3 basis swaps | Derivative market value adjustments and derivative settlements, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative settlements, net (700) 1,197 (939) 10,438
Change in fair value 1,061 (161) 2,755 (1,475)
Interest rate swaps - floor income hedges | Derivative market value adjustments and derivative settlements, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative settlements, net (5,209) (3,588) (14,648) (2,772)
Change in fair value $ 6,199 $ 3,601 $ 41,700 $ (19,597)
v3.21.2
Investments - Narrative (Details)
$ in Thousands
3 Months Ended 9 Months Ended
Oct. 27, 2021
USD ($)
Dec. 31, 2021
USD ($)
Aug. 18, 2021
USD ($)
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Dec. 31, 2020
USD ($)
borrower
Summary of Investment Holdings [Line Items]            
Loans receivable       $ 19,304,203   $ 20,185,656
Cash distributions from portion of loans securitized       209,634 $ 8,528  
Bonds issued to cover risk retention policy on loans with beneficial securitization       $ 371,700    
Retention period after investment securitization       2 years    
Debt covenant, multiple of original debt issue required to be paid down       33.00%    
Debt covenant, percent of principle balance debt issue required before liquidation       0.33    
Minimum | Subsequent Event | Forecast            
Summary of Investment Holdings [Line Items]            
Gain on equity investment   $ 10,000        
Maximum | Subsequent Event | Forecast            
Summary of Investment Holdings [Line Items]            
Gain on equity investment   15,000        
Private Education Loan Investment            
Summary of Investment Holdings [Line Items]            
Equity method investment, ownership percentage       8.00%    
Equity method investments       $ 71,100    
Pre-tax income (loss) from equity investments       (5,000)    
Cash distributions from portion of loans securitized     $ 40,600      
Equity method investments, securitized     43,300      
Private Education Loan Investment | Subsequent Event            
Summary of Investment Holdings [Line Items]            
Cash distributions from portion of loans securitized $ 9,800          
Equity method investments, securitized 8,500          
Equity method investments 36,000          
Private Education Loan Investment | Subsequent Event | Forecast            
Summary of Investment Holdings [Line Items]            
Pre-tax income (loss) from equity investments   $ 36,000        
Miscellaneous Investments | Beneficial interest in private education loan securitizations            
Summary of Investment Holdings [Line Items]            
Beneficial interest in securitization, interest, percent           8.00%
Amount of loans securitized     $ 7,400,000      
Miscellaneous Investments | Beneficial interest in private education loan securitizations | Subsequent Event            
Summary of Investment Holdings [Line Items]            
Amount of loans securitized $ 1,200,000          
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank            
Summary of Investment Holdings [Line Items]            
Loans receivable       $ 302,739 $ 256,891 $ 305,882
Consumer Portfolio Segment, Private Education Loans, Non-Nelnet Bank | Non-federally insured student loans | Wells Fargo            
Summary of Investment Holdings [Line Items]            
Loans receivable           $ 10,000,000
Number of borrowers | borrower           445,000,000
v3.21.2
Investments - Schedule of Investments (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
May 27, 2021
Sep. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
May 26, 2021
Jan. 19, 2021
Dec. 31, 2020
Equity securities                    
Amortized cost   $ 58,336       $ 58,336       $ 36,227
Gross unrealized gains   13,302       13,302       8,768
Gross unrealized losses   (1,594)       (1,594)       (2,954)
Fair value   70,044       70,044       42,041
Total investments (at fair value)                    
Amortized cost   818,309       818,309       376,805
Gross unrealized gains   31,099       31,099       16,810
Gross unrealized losses   (1,643)       (1,643)       (2,967)
Fair value   847,765       847,765       390,648
Other Investments (not measured at fair value):                    
Beneficial interest in consumer loan securitizations, allowance for credit losses                   4,449
Total investments (not measured at fair value)   527,148       527,148       602,292
Total investments   1,374,913       1,374,913       992,940
Private education loan asset-backed securities subject to repurchase agreements with third-parties   370,400       370,400        
FFELP loan asset-backed debt securities - available-for-sale                    
Investments (at fair value):                    
Amortized cost   387,777       387,777       338,475
Gross unrealized gains   15,932       15,932       8,040
Gross unrealized losses   (49)       (49)       (13)
Fair value   403,660       403,660       346,502
Private education loan asset-backed debt securities - available-for-sale                    
Investments (at fair value):                    
Amortized cost   369,859       369,859       0
Gross unrealized gains   1,865       1,865       0
Gross unrealized losses   0       0       0
Fair value   371,724       371,724       0
Other debt securities - available-for-sale                    
Investments (at fair value):                    
Amortized cost   2,337       2,337       2,103
Gross unrealized gains   0       0       2
Gross unrealized losses   0       0       0
Fair value   2,337       2,337       2,105
Hudl                    
Other Investments (not measured at fair value):                    
Additional equity investment $ 5,000                  
Hudl                    
Other Investments (not measured at fair value):                    
Ownership percentage (less than)               20.00%    
ALLO                    
Other Investments (not measured at fair value):                    
Redemption price payment if debt financing obtained                 $ 100,000  
Union Bank and Trust Company                    
Other Investments (not measured at fair value):                    
Amount of participation, student loan asset-backed securities   194,200       194,200        
Venture capital and funds: | Miscellaneous Investments                    
Other Investments (not measured at fair value):                    
Measurement alternative   151,100       151,100       144,795
Equity method   37,020       37,020       14,018
Other   804       804       894
Total investments (not measured at fair value)   188,924       188,924       159,707
Venture capital and funds: | Miscellaneous Investments | Hudl                    
Other Investments (not measured at fair value):                    
Measurement alternative   133,900       133,900        
Real estate | Miscellaneous Investments                    
Other Investments (not measured at fair value):                    
Equity method   35,605       35,605       50,291
Notes receivable   3,500       3,500       847
Total investments (not measured at fair value)   39,105       39,105       51,138
Investment in ALLO | Miscellaneous Investments                    
Other Investments (not measured at fair value):                    
Equity method   97,776       97,776       129,396
Preferred membership interest and accrued and unpaid preferred return   135,300       135,300       228,916
Total investments (not measured at fair value)   233,076       233,076       358,312
Equity securities, , realized loss   (10,500)       (31,600)        
Investment in ALLO | Miscellaneous Investments | ALLO                    
Other Investments (not measured at fair value):                    
Preferred membership interest and accrued and unpaid preferred return   129,700       129,700        
Preferred return accrued and not yet paid   5,600       5,600        
Solar                    
Other Investments (not measured at fair value):                    
Pre-tax income (loss) from equity investment   3,400   $ 11,800   7,400 $ 12,600      
Amount funded or committed to fund   181,400       181,400        
Amount funded or committed to fund by partners   24,500       24,500        
Equity method investment, amount committed to fund   74,000       74,000        
Equity method investment, amount committed to fund by partners   55,900       $ 55,900        
Solar | Minimum                    
Other Investments (not measured at fair value):                    
Unrecognized tax benefits, resulting from prior period tax positions, period           5 years        
Solar | Maximum                    
Other Investments (not measured at fair value):                    
Unrecognized tax benefits, resulting from prior period tax positions, period           6 years        
Solar | Miscellaneous Investments                    
Other Investments (not measured at fair value):                    
Total investments (not measured at fair value)   (46,539)       $ (46,539)       (30,373)
Beneficial interest in private education loan securitizations | Miscellaneous Investments                    
Other Investments (not measured at fair value):                    
Beneficial interest in securitizations   44,902       44,902       0
Loans corresponding to beneficial interest   545,000       545,000        
Beneficial interest in consumer loan securitizations                    
Other Investments (not measured at fair value):                    
Impairment charges on investments     $ 2,400   $ 26,300          
Beneficial interest in consumer loan securitizations | Miscellaneous Investments                    
Other Investments (not measured at fair value):                    
Beneficial interest in securitizations   37,021       37,021       27,954
Loans corresponding to beneficial interest   250,000       250,000        
Beneficial interest in federally insured loan securitizations | Miscellaneous Investments                    
Other Investments (not measured at fair value):                    
Beneficial interest in securitizations   26,904       26,904       30,377
Loans corresponding to beneficial interest   485,000       485,000        
Tax liens and affordable housing | Miscellaneous Investments                    
Other Investments (not measured at fair value):                    
Total investments (not measured at fair value)   3,755       3,755       $ 5,177
Preferred Partnership Interest | Miscellaneous Investments                    
Other Investments (not measured at fair value):                    
Equity securities, realized gain   $ 2,000       $ 6,400        
Equity method investment, preferred annual return   6.25%       6.25%        
Maximum financing amount                 $ 230,000  
v3.21.2
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Weighted average remaining useful life 98 months  
Amortizable intangible assets, net $ 55,176 $ 75,070
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Accumulated amortization of intangible assets $ 94,767 83,419
Weighted average remaining useful life 105 months  
Amortizable intangible assets, net $ 50,525 66,974
Computer software    
Finite-Lived Intangible Assets [Line Items]    
Accumulated amortization of intangible assets $ 3,143 4,127
Weighted average remaining useful life 27 months  
Amortizable intangible assets, net $ 4,651 6,430
Trade names    
Finite-Lived Intangible Assets [Line Items]    
Accumulated amortization of intangible assets   3,455
Amortizable intangible assets, net $ 0 $ 1,666
v3.21.2
Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract]        
Amortization of intangible assets $ 3.3 $ 8.0 $ 19.9 $ 22.8
v3.21.2
Intangible Assets - Future Amortization Expense (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
2021 (October 1 - December 31) $ 3,147  
2022 9,939  
2023 9,830  
2024 7,457  
2025 4,644  
2026 and thereafter 20,159  
Amortizable intangible assets, net $ 55,176 $ 75,070
v3.21.2
Goodwill (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Goodwill [Line Items]    
Goodwill $ 142,092 $ 142,092
Corporate and Other Activities    
Goodwill [Line Items]    
Goodwill 0 0
Loan Servicing and Systems | Operating Segments    
Goodwill [Line Items]    
Goodwill 23,639 23,639
Education Technology, Services, and Payment Processing | Operating Segments    
Goodwill [Line Items]    
Goodwill 76,570 76,570
Asset Generation and Management | Operating Segments    
Goodwill [Line Items]    
Goodwill 41,883 41,883
Nelnet Bank | Operating Segments    
Goodwill [Line Items]    
Goodwill $ 0 $ 0
v3.21.2
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 311,958 $ 283,152
Accumulated depreciation (194,662) (159,625)
Property and equipment, net 117,296 123,527
Computer equipment and software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 220,509 172,664
Computer equipment and software | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 1 year  
Computer equipment and software | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 5 years  
Building and building improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 46,018 52,444
Building and building improvements | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 5 years  
Building and building improvements | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 48 years  
Office furniture and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 23,819 21,899
Office furniture and equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 1 year  
Office furniture and equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 10 years  
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 9,330 9,168
Leasehold improvements | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 1 year  
Leasehold improvements | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 15 years  
Transportation equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 4,857 4,857
Transportation equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 5 years  
Transportation equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 10 years  
Land    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 3,642 3,642
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 3,783 $ 18,478
v3.21.2
Property and Equipment - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Impaired Long-Lived Assets Held and Used [Line Items]        
Depreciation $ 12.4 $ 22.3 $ 36.2 $ 64.6
Impairment charge 14.2      
Corporate and Other Activities        
Impaired Long-Lived Assets Held and Used [Line Items]        
Impairment charge 1.0      
Loan Servicing and Systems        
Impaired Long-Lived Assets Held and Used [Line Items]        
Impairment charge $ 13.2      
v3.21.2
Earnings per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]        
Net income attributable to Nelnet, Inc., basic $ 53,138 $ 71,503 $ 260,603 $ 117,452
Net income attributable to Nelnet, Inc., diluted $ 53,138 $ 71,503 $ 260,603 $ 117,452
Weighted-average common shares outstanding - basic (in shares) 38,595,721 38,538,476 38,646,892 39,229,932
Weighted-average common shares outstanding - diluted (in shares) 38,595,721 38,538,476 38,646,892 39,229,932
Earnings per share - basic (in dollars per share) $ 1.38 $ 1.86 $ 6.74 $ 2.99
Earnings per share - diluted (in dollars per share) $ 1.38 $ 1.86 $ 6.74 $ 2.99
Common shareholders        
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]        
Net income attributable to Nelnet, Inc., basic $ 52,245 $ 70,483 $ 256,416 $ 115,794
Net income attributable to Nelnet, Inc., diluted $ 52,245 $ 70,483 $ 256,416 $ 115,794
Weighted-average common shares outstanding - basic (in shares) 37,947,257 37,988,584 38,025,898 38,676,092
Weighted-average common shares outstanding - diluted (in shares) 37,947,257 37,988,584 38,025,898 38,676,092
Earnings per share - basic (in dollars per share) $ 1.38 $ 1.86 $ 6.74 $ 2.99
Earnings per share - diluted (in dollars per share) $ 1.38 $ 1.86 $ 6.74 $ 2.99
Unvested restricted stock shareholders        
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]        
Net income attributable to Nelnet, Inc., basic $ 893 $ 1,020 $ 4,187 $ 1,658
Net income attributable to Nelnet, Inc., diluted $ 893 $ 1,020 $ 4,187 $ 1,658
Weighted-average common shares outstanding - basic (in shares) 648,464 549,892 620,994 553,840
Weighted-average common shares outstanding - diluted (in shares) 648,464 549,892 620,994 553,840
Earnings per share - basic (in dollars per share) $ 1.38 $ 1.86 $ 6.74 $ 2.99
Earnings per share - diluted (in dollars per share) $ 1.38 $ 1.86 $ 6.74 $ 2.99
v3.21.2
Segment Reporting (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Segment Reporting Information [Line Items]          
Total interest income $ 136,654 $ 139,745 $ 399,341 $ 480,818  
Interest expense 50,176 58,423 127,939 277,788  
Net interest income 86,478 81,322 271,402 203,030  
Less provision (negative provision) for loan losses 5,827 (5,821) (10,847) 73,476  
Net interest income after provision for loan losses 80,651 87,143 282,249 129,554  
Other income/expense:          
Intersegment revenue 0 0 0 0  
Other 11,867 1,502 30,183 69,910  
Gain on sale of loans 3,444 14,817 18,715 33,023  
Impairment expense and provision for beneficial interests, net (14,159) 0 (12,223) (34,419)  
Derivative settlements, net (5,909) (2,391) (15,587) 7,666  
Derivative market value adjustments, net 7,260 3,440 44,455 (21,072)  
Total other income/expense 200,178 225,494 658,788 667,169  
Cost of services:          
Cost of services 31,335 31,157 80,063 80,664  
Operating expenses:          
Salaries and benefits 128,592 126,096 363,351 365,220  
Depreciation and amortization 15,710 30,308 56,129 87,349  
Other expenses 38,324 34,744 107,611 115,184  
Intersegment expenses, net 0 0 0 0  
Total operating expenses 182,626 191,148 527,091 567,753  
Income before income taxes 66,868 90,332 333,883 148,306  
Income tax (expense) benefit (15,649) (19,156) (76,747) (30,286)  
Net income 51,219 71,176 257,136 118,020  
Net loss (income) attributable to noncontrolling interests 1,919 327 3,467 (568)  
Net income attributable to Nelnet, Inc. 53,138 71,503 260,603 117,452  
Total assets $ 22,402,739 22,222,526 $ 22,402,739 22,222,526 $ 22,646,160
Operating Segments          
Operating expenses:          
Percent of income before taxes allocated to income taxes 24.00%   24.00%    
Operating Segments | Loan Servicing and Systems          
Segment Reporting Information [Line Items]          
Total interest income $ 31 34 $ 95 403  
Interest expense 24 24 70 97  
Net interest income 7 10 25 306  
Less provision (negative provision) for loan losses 0 0 0 0  
Net interest income after provision for loan losses 7 10 25 306  
Other income/expense:          
Intersegment revenue 8,621 8,287 25,369 27,878  
Other 727 2,353 2,541 6,897  
Gain on sale of loans 0 0 0 0  
Impairment expense and provision for beneficial interests, net (13,243) 0 (13,243) 0  
Derivative settlements, net 0 0 0 0  
Derivative market value adjustments, net 0 0 0 0  
Total other income/expense 108,456 124,434 350,628 372,346  
Cost of services:          
Cost of services 0 0 0 0  
Operating expenses:          
Salaries and benefits 75,305 72,912 210,151 211,806  
Depreciation and amortization 4,245 9,951 20,411 27,941  
Other expenses 12,738 12,407 39,296 43,277  
Intersegment expenses, net 19,217 15,834 52,241 48,069  
Total operating expenses 111,505 111,104 322,099 331,093  
Income before income taxes (3,042) 13,340 28,554 41,559  
Income tax (expense) benefit 730 (3,201) (6,853) (9,974)  
Net income (2,312) 10,139 21,701 31,585  
Net loss (income) attributable to noncontrolling interests 0 0 0 0  
Net income attributable to Nelnet, Inc. (2,312) 10,139 21,701 31,585  
Total assets 238,602 211,726 238,602 211,726  
Operating Segments | Education Technology, Services, and Payment Processing          
Segment Reporting Information [Line Items]          
Total interest income 344 367 818 2,777  
Interest expense 0 16 0 54  
Net interest income 344 351 818 2,723  
Less provision (negative provision) for loan losses 0 0 0 0  
Net interest income after provision for loan losses 344 351 818 2,723  
Other income/expense:          
Intersegment revenue 3 3 9 17  
Other 13 373 13 373  
Gain on sale of loans 0 0 0 0  
Impairment expense and provision for beneficial interests, net 0 0 0 0  
Derivative settlements, net 0 0 0 0  
Derivative market value adjustments, net 0 0 0 0  
Total other income/expense 85,340 74,497 257,306 217,490  
Cost of services:          
Cost of services 31,335 25,243 80,063 63,424  
Operating expenses:          
Salaries and benefits 29,119 25,460 82,154 73,678  
Depreciation and amortization 2,762 2,366 8,789 7,115  
Other expenses 4,804 3,126 14,063 11,544  
Intersegment expenses, net 3,672 3,610 10,856 10,366  
Total operating expenses 40,357 34,562 115,862 102,703  
Income before income taxes 13,992 15,043 62,199 54,086  
Income tax (expense) benefit (3,358) (3,610) (14,928) (12,981)  
Net income 10,634 11,433 47,271 41,105  
Net loss (income) attributable to noncontrolling interests 0 0 0 0  
Net income attributable to Nelnet, Inc. 10,634 11,433 47,271 41,105  
Total assets 415,178 382,608 415,178 382,608  
Operating Segments | Communications          
Segment Reporting Information [Line Items]          
Total interest income 0 0 0 0  
Interest expense 0 0 0 0  
Net interest income 0 0 0 0  
Less provision (negative provision) for loan losses 0 0 0 0  
Net interest income after provision for loan losses 0 0 0 0  
Other income/expense:          
Intersegment revenue 0 0 0 0  
Other 0 511 0 1,256  
Gain on sale of loans 0 0 0 0  
Impairment expense and provision for beneficial interests, net 0 0 0 0  
Derivative settlements, net 0 0 0 0  
Derivative market value adjustments, net 0 0 0 0  
Total other income/expense 0 20,722 0 58,646  
Cost of services:          
Cost of services 0 5,914 0 17,240  
Operating expenses:          
Salaries and benefits 0 5,485 0 16,471  
Depreciation and amortization 0 11,152 0 32,482  
Other expenses 0 2,219 0 9,681  
Intersegment expenses, net 0 491 0 1,650  
Total operating expenses 0 19,347 0 60,284  
Income before income taxes 0 (4,539) 0 (18,878)  
Income tax (expense) benefit 0 1,089 0 4,531  
Net income 0 (3,450) 0 (14,347)  
Net loss (income) attributable to noncontrolling interests 0 0 0 0  
Net income attributable to Nelnet, Inc. 0 (3,450) 0 (14,347)  
Total assets 0 305,276 0 305,276  
Operating Segments | Asset Generation and Management          
Segment Reporting Information [Line Items]          
Total interest income 131,781 137,959 388,149 474,468  
Interest expense 48,662 57,755 124,282 275,492  
Net interest income 83,119 80,204 263,867 198,976  
Less provision (negative provision) for loan losses 5,940 (5,821) (11,225) 73,476  
Net interest income after provision for loan losses 77,179 86,025 275,092 125,500  
Other income/expense:          
Intersegment revenue 0 0 0 0  
Other (7,275) 1,004 (4,514) 4,951  
Gain on sale of loans 3,444 14,817 18,715 33,023  
Impairment expense and provision for beneficial interests, net 0 0 2,436 (26,303)  
Derivative settlements, net (5,909) (2,391) (15,587) 7,666  
Derivative market value adjustments, net 7,260 3,440 44,455 (21,072)  
Total other income/expense (2,480) 16,870 45,505 (1,735)  
Cost of services:          
Cost of services 0 0 0 0  
Operating expenses:          
Salaries and benefits 542 438 1,594 1,301  
Depreciation and amortization 0 0 0 0  
Other expenses 5,420 3,672 12,763 12,253  
Intersegment expenses, net 8,652 8,868 25,627 29,839  
Total operating expenses 14,614 12,978 39,984 43,393  
Income before income taxes 60,085 89,917 280,613 80,372  
Income tax (expense) benefit (14,421) (21,580) (67,347) (19,289)  
Net income 45,664 68,337 213,266 61,083  
Net loss (income) attributable to noncontrolling interests 0 0 0 0  
Net income attributable to Nelnet, Inc. 45,664 68,337 213,266 61,083  
Total assets 20,001,997 20,686,478 20,001,997 20,686,478  
Operating Segments | Nelnet Bank          
Segment Reporting Information [Line Items]          
Total interest income 2,061 0 5,479 0  
Interest expense 421 0 1,007 0  
Net interest income 1,640 0 4,472 0  
Less provision (negative provision) for loan losses (113) 0 378 0  
Net interest income after provision for loan losses 1,753 0 4,094 0  
Other income/expense:          
Intersegment revenue 0 0 0 0  
Other 450 0 475 0  
Gain on sale of loans 0 0 0 0  
Impairment expense and provision for beneficial interests, net 0 0 0 0  
Derivative settlements, net 0 0 0 0  
Derivative market value adjustments, net 0 0 0 0  
Total other income/expense 450 0 475 0  
Cost of services:          
Cost of services 0 0 0 0  
Operating expenses:          
Salaries and benefits 890 0 3,956 0  
Depreciation and amortization 0 0 0 0  
Other expenses 445 0 1,227 0  
Intersegment expenses, net 32 0 72 0  
Total operating expenses 1,367 0 5,255 0  
Income before income taxes 836 0 (686) 0  
Income tax (expense) benefit (200) 0 151 0  
Net income 636 0 (535) 0  
Net loss (income) attributable to noncontrolling interests 0 0 0 0  
Net income attributable to Nelnet, Inc. 636 0 (535) 0  
Total assets 413,155 0 413,155 0  
Corporate and Other Activities          
Segment Reporting Information [Line Items]          
Total interest income 2,609 1,646 5,379 4,397  
Interest expense 1,242 888 3,158 3,373  
Net interest income 1,367 758 2,221 1,024  
Less provision (negative provision) for loan losses 0 0 0 0  
Net interest income after provision for loan losses 1,367 758 2,221 1,024  
Other income/expense:          
Intersegment revenue 0 0 0 0  
Other 17,952 (2,737) 31,668 56,435  
Gain on sale of loans 0 0 0 0  
Impairment expense and provision for beneficial interests, net (916) 0 (1,416) (8,116)  
Derivative settlements, net 0 0 0 0  
Derivative market value adjustments, net 0 0 0 0  
Total other income/expense 17,036 (2,737) 30,252 48,319  
Cost of services:          
Cost of services 0 0 0 0  
Operating expenses:          
Salaries and benefits 22,735 21,801 65,496 61,964  
Depreciation and amortization 8,702 6,839 26,927 19,811  
Other expenses 14,918 13,320 40,265 38,428  
Intersegment expenses, net (22,949) (20,513) (63,419) (62,030)  
Total operating expenses 23,406 21,447 69,269 58,173  
Income before income taxes (5,003) (23,426) (36,796) (8,830)  
Income tax (expense) benefit 1,600 8,146 12,230 7,426  
Net income (3,403) (15,280) (24,566) (1,404)  
Net loss (income) attributable to noncontrolling interests 1,919 327 3,467 (568)  
Net income attributable to Nelnet, Inc. (1,484) (14,953) (21,099) (1,972)  
Total assets 1,740,060 770,621 1,740,060 770,621  
Eliminations          
Segment Reporting Information [Line Items]          
Total interest income (172) (261) (578) (1,228)  
Interest expense (172) (261) (578) (1,228)  
Net interest income 0 0 0 0  
Less provision (negative provision) for loan losses 0 0 0 0  
Net interest income after provision for loan losses 0 0 0 0  
Other income/expense:          
Intersegment revenue (8,624) (8,290) (25,378) (27,895)  
Other 0 0 0 0  
Gain on sale of loans 0 0 0 0  
Impairment expense and provision for beneficial interests, net 0 0 0 0  
Derivative settlements, net 0 0 0 0  
Derivative market value adjustments, net 0 0 0 0  
Total other income/expense (8,624) (8,290) (25,378) (27,895)  
Cost of services:          
Cost of services 0 0 0 0  
Operating expenses:          
Salaries and benefits 0 0 0 0  
Depreciation and amortization 0 0 0 0  
Other expenses 0 0 0 0  
Intersegment expenses, net (8,624) (8,290) (25,378) (27,895)  
Total operating expenses (8,624) (8,290) (25,378) (27,895)  
Income before income taxes 0 0 0 0  
Income tax (expense) benefit 0 0 0 0  
Net income 0 0 0 0  
Net loss (income) attributable to noncontrolling interests 0 0 0 0  
Net income attributable to Nelnet, Inc. 0 0 0 0  
Total assets (406,253) (134,183) (406,253) (134,183)  
Loan servicing and systems          
Other income/expense:          
Revenue 112,351 113,794 335,961 337,571  
Loan servicing and systems | Operating Segments | Loan Servicing and Systems          
Other income/expense:          
Revenue 112,351 113,794 335,961 337,571  
Loan servicing and systems | Operating Segments | Education Technology, Services, and Payment Processing          
Other income/expense:          
Revenue 0 0 0 0  
Loan servicing and systems | Operating Segments | Communications          
Other income/expense:          
Revenue 0 0 0 0  
Loan servicing and systems | Operating Segments | Asset Generation and Management          
Other income/expense:          
Revenue 0 0 0 0  
Loan servicing and systems | Operating Segments | Nelnet Bank          
Other income/expense:          
Revenue 0 0 0 0  
Loan servicing and systems | Corporate and Other Activities          
Other income/expense:          
Revenue 0 0 0 0  
Loan servicing and systems | Eliminations          
Other income/expense:          
Revenue 0 0 0 0  
Education technology, services, and payment processing          
Other income/expense:          
Revenue 85,324 74,121 257,284 217,100  
Cost of services:          
Cost of services 31,335 25,243 80,063 63,424  
Education technology, services, and payment processing | Operating Segments | Loan Servicing and Systems          
Other income/expense:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Education technology, services, and payment processing | Operating Segments | Education Technology, Services, and Payment Processing          
Other income/expense:          
Revenue 85,324 74,121 257,284 217,100  
Cost of services:          
Cost of services 31,335 25,243 80,063 63,424  
Education technology, services, and payment processing | Operating Segments | Communications          
Other income/expense:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Education technology, services, and payment processing | Operating Segments | Asset Generation and Management          
Other income/expense:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Education technology, services, and payment processing | Operating Segments | Nelnet Bank          
Other income/expense:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Education technology, services, and payment processing | Corporate and Other Activities          
Other income/expense:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Education technology, services, and payment processing | Eliminations          
Other income/expense:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Communications services          
Other income/expense:          
Revenue 0 20,211 0 57,390  
Cost of services:          
Cost of services 0 5,914 0 17,240  
Communications services | Operating Segments | Loan Servicing and Systems          
Other income/expense:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Communications services | Operating Segments | Education Technology, Services, and Payment Processing          
Other income/expense:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Communications services | Operating Segments | Communications          
Other income/expense:          
Revenue 0 20,211 0 57,390  
Cost of services:          
Cost of services 0 5,914 0 17,240  
Communications services | Operating Segments | Asset Generation and Management          
Other income/expense:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Communications services | Operating Segments | Nelnet Bank          
Other income/expense:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Communications services | Corporate and Other Activities          
Other income/expense:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Communications services | Eliminations          
Other income/expense:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services $ 0 $ 0 $ 0 $ 0  
v3.21.2
Disaggregated Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Loan servicing and systems revenue        
Disaggregation of Revenue [Line Items]        
Revenue $ 112,351 $ 113,794 $ 335,961 $ 337,571
Government servicing - Nelnet        
Disaggregation of Revenue [Line Items]        
Revenue 37,595 36,295 107,843 112,305
Government servicing - Great Lakes        
Disaggregation of Revenue [Line Items]        
Revenue 46,489 45,350 133,654 137,010
Private education and consumer loan servicing        
Disaggregation of Revenue [Line Items]        
Revenue 13,198 7,928 34,563 24,733
FFELP servicing        
Disaggregation of Revenue [Line Items]        
Revenue 4,557 4,912 13,930 15,443
Software services        
Disaggregation of Revenue [Line Items]        
Revenue 6,952 10,426 22,779 32,395
Outsourced services        
Disaggregation of Revenue [Line Items]        
Revenue 3,560 8,883 23,192 15,685
Education technology, services, and payment processing        
Disaggregation of Revenue [Line Items]        
Revenue 85,324 74,121 257,284 217,100
Tuition payment plan services        
Disaggregation of Revenue [Line Items]        
Revenue 23,618 22,477 79,706 77,011
Payment processing        
Disaggregation of Revenue [Line Items]        
Revenue 39,852 35,420 97,898 88,329
Education technology and services        
Disaggregation of Revenue [Line Items]        
Revenue 21,098 15,840 78,153 50,820
Other        
Disaggregation of Revenue [Line Items]        
Revenue $ 756 $ 384 $ 1,527 $ 940
v3.21.2
Disaggregated Revenue - Other Income (Expense) by Component (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Disaggregation of Revenue [Line Items]        
Gain (loss) on investments $ 16,050 $ 1,687 $ 40,141 $ 51,772
Investment advisory services 2,400 4,463 6,242 8,187
Borrower late fee income 514 871 1,698 4,377
(Loss) gain on debt repurchased (3,268) 105 (3,964) 508
Other 7,289 3,862 16,136 10,807
Total other 11,867 1,502 30,183 69,910
ALLO Voting Membership Interests Investment        
Disaggregation of Revenue [Line Items]        
Gain (loss) on investments 727 2,353 2,541 6,897
Solar        
Disaggregation of Revenue [Line Items]        
Gain (loss) on investments (3,393) (11,839) (7,375) (12,638)
ALLO preferred return        
Disaggregation of Revenue [Line Items]        
Revenue 2,043 0 6,384 0
Loss from ALLO voting membership interest investment        
Disaggregation of Revenue [Line Items]        
Revenue $ (10,495) $ 0 $ (31,620) $ 0
v3.21.2
Major Customer (Details) - Customer concentration risk - Department of Education
borrower in Millions
Sep. 30, 2021
borrower
Nelnet Servicing  
Concentration Risk [Line Items]  
Number of borrowers 5.8
Great Lakes Educational Loan Services  
Concentration Risk [Line Items]  
Number of borrowers 7.8
v3.21.2
Fair Value - Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Financial assets:    
Fair value $ 847,765 $ 390,648
Total assets 847,765 390,648
FFELP loan asset-backed debt securities - available-for-sale    
Financial assets:    
Fair value 403,660 346,502
Private education loan asset-backed debt securities - available-for-sale    
Financial assets:    
Fair value 371,724 0
Other debt securities - available-for-sale    
Financial assets:    
Fair value 2,337 2,105
Equity securities    
Financial assets:    
Fair value 61,573 10,114
Equity securities measured at net asset value    
Financial assets:    
Fair value 8,471 31,927
Equity Available-For-Sale Securities    
Financial assets:    
Equity securities 20,000  
Equity Trading Securities    
Financial assets:    
Equity securities 41,600  
Level 1    
Financial assets:    
Fair value 61,673 10,217
Total assets 61,673 10,217
Level 1 | FFELP loan asset-backed debt securities - available-for-sale    
Financial assets:    
Fair value 0 0
Level 1 | Private education loan asset-backed debt securities - available-for-sale    
Financial assets:    
Fair value 0 0
Level 1 | Other debt securities - available-for-sale    
Financial assets:    
Fair value 100 103
Level 1 | Equity securities    
Financial assets:    
Fair value 61,573 10,114
Level 2    
Financial assets:    
Fair value 777,621 348,504
Total assets 777,621 348,504
Level 2 | FFELP loan asset-backed debt securities - available-for-sale    
Financial assets:    
Fair value 403,660 346,502
Level 2 | Private education loan asset-backed debt securities - available-for-sale    
Financial assets:    
Fair value 371,724 0
Level 2 | Other debt securities - available-for-sale    
Financial assets:    
Fair value 2,237 2,002
Level 2 | Equity securities    
Financial assets:    
Fair value $ 0 $ 0
v3.21.2
Fair Value - Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
Dec. 31, 2019
Financial assets:        
Loans receivable $ 19,304,203 $ 20,185,656    
Accrued loan interest receivable 834,831 794,611    
Cash and cash equivalents 191,936 121,249 $ 96,316 $ 133,906
Investments (at fair value) 1,374,913 992,940    
Restricted cash - due to customers 295,053 283,971 $ 286,082 $ 437,756
Financial liabilities:        
Accrued interest payable 4,441 28,701    
Bank deposits 200,651 54,633    
Due to customers 354,543 301,471    
Fair value        
Financial assets:        
Loans receivable 19,690,209 20,454,132    
Accrued loan interest receivable 834,831 794,611    
Cash and cash equivalents 191,936 121,249    
Investments (at fair value) 847,765 390,648    
Beneficial interest in loan securitizations 127,364 58,709    
Restricted cash 764,089 553,175    
Restricted cash - due to customers 295,053 283,971    
Financial liabilities:        
Bonds and notes payable 18,854,255 19,270,810    
Accrued interest payable 4,441 28,701    
Bank deposits 199,372 54,599    
Due to customers 354,543 301,471    
Fair value | Level 1        
Financial assets:        
Loans receivable 0 0    
Accrued loan interest receivable 0 0    
Cash and cash equivalents 191,936 121,249    
Investments (at fair value) 61,673 10,217    
Beneficial interest in loan securitizations 0 0    
Restricted cash 764,089 553,175    
Restricted cash - due to customers 295,053 283,971    
Financial liabilities:        
Bonds and notes payable 0 0    
Accrued interest payable 0 0    
Bank deposits 42,585 48,422    
Due to customers 354,543 301,471    
Fair value | Level 2        
Financial assets:        
Loans receivable 0 0    
Accrued loan interest receivable 834,831 794,611    
Cash and cash equivalents 0 0    
Investments (at fair value) 777,621 348,504    
Beneficial interest in loan securitizations 0 0    
Restricted cash 0 0    
Restricted cash - due to customers 0 0    
Financial liabilities:        
Bonds and notes payable 18,854,255 19,270,810    
Accrued interest payable 4,441 28,701    
Bank deposits 156,787 6,177    
Due to customers 0 0    
Fair value | Level 3        
Financial assets:        
Loans receivable 19,690,209 20,454,132    
Accrued loan interest receivable 0 0    
Cash and cash equivalents 0 0    
Investments (at fair value) 0 0    
Beneficial interest in loan securitizations 127,364 58,709    
Restricted cash 0 0    
Restricted cash - due to customers 0 0    
Financial liabilities:        
Bonds and notes payable 0 0    
Accrued interest payable 0 0    
Bank deposits 0 0    
Due to customers 0 0    
Carrying value        
Financial assets:        
Loans receivable 18,469,372 19,391,045    
Accrued loan interest receivable 834,831 794,611    
Cash and cash equivalents 191,936 121,249    
Investments (at fair value) 847,765 390,648    
Beneficial interest in loan securitizations 108,827 58,331    
Restricted cash 764,089 553,175    
Restricted cash - due to customers 295,053 283,971    
Financial liabilities:        
Bonds and notes payable 18,610,748 19,320,726    
Accrued interest payable 4,441 28,701    
Bank deposits 200,651 54,633    
Due to customers $ 354,543 $ 301,471