Cover Page - shares	9 Months Ended
Cover Page - shares	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

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

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

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

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

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)

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

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.

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

Basis of Financial Reporting	9 Months Ended
Basis of Financial Reporting	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").

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 consisted of the following:


	As of		As of
	September 30, 2021		December 31, 2020
Non-Nelnet Bank:
Federally insured student loans:
Stafford and other	$	4,142,059	4,383,000
Consolidation	13,939,429		14,746,173
Total	18,081,488		19,129,173
Private education loans	319,212		320,589
Consumer loans	36,994		109,346
Non-Nelnet Bank loans	18,437,694		19,559,108
Nelnet Bank:
Federally insured student loans	93,930		—



Private education loans	98,395		17,543

Nelnet Bank loans	192,325		17,543

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:
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 period		Impact of ASC 326 adoption	Provision (negative provision) for loan losses	Charge-offs	Recoveries	Initial allowance on loans purchased with credit deterioration (a)	Loan sales	Balance 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 loans	19,403		—	(1,208)	(954)	113	—	(301)	17,053
Consumer loans	4,702		—	2,696	(1,133)	187	—	(2,023)	4,429
Nelnet Bank
Federally insured loans	245		—	44	—	—	—	—	289
Private education loans	567		—	(157)	—	4	—	—	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 loans	25,535		—	(5,650)	(5)	133	—	—	20,013
Consumer loans	39,081		—	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 loans	19,529		—	(781)	(1,850)	454	—	(299)	17,053
Consumer loans	27,256		—	(7,016)	(4,547)	668	—	(11,932)	4,429
Nelnet Bank
Federally insured loans	—		—	289	—	—	—	—	289
Private education loans	323		—	89	—	4	—	(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 loans	9,597		4,797	6,471	(1,360)	508	—	—	20,013
Consumer loans	15,554		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, 2021						As of December 31, 2020						As 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 current	13,525,751				88.1	%	13,683,054				84.9	%	14,845,519				91.7	%
Loans delinquent 31-60 days	548,670				3.6		633,411				3.9		945,411				5.9
Loans delinquent 61-90 days	286,681				1.9		307,936				1.9		249,523				1.5
Loans delinquent 91-120 days	163,447				1.1		800,257				5.0		129,994				0.8
Loans delinquent 121-270 days	467,441				3.0		674,975				4.2		605				0.0
Loans delinquent 271 days or greater	354,188				2.3		20,337				0.1		19,867				0.1
Total loans in repayment	15,346,178		84.9		100.0	%	16,119,970		84.3		100.0	%	16,190,919		84.6		100.0	%
Total federally insured loans	18,081,488		100.0	%			19,129,173		100.0	%			19,145,579		100.0	%
Accrued interest receivable	831,142						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 current	300,231				98.3	%	310,036				99.0	%	261,514				98.8	%
Loans delinquent 31-60 days	1,870				0.6		1,099				0.4		1,820				0.7
Loans delinquent 61-90 days	912				0.3		675				0.2		454				0.2
Loans delinquent 91 days or greater	2,363				0.8		1,371				0.4		743				0.3
Total loans in repayment	305,376		95.7		100.0	%	313,181		97.7		100.0	%	264,531		96.6		100.0	%
Total private education loans	319,212		100.0	%			320,589		100.0	%			273,807		100.0	%
Accrued interest receivable	2,076						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, 2021						As of December 31, 2020						As 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 current	35,744				96.6	%	105,650				97.4	%	96,038				96.9	%
Loans delinquent 31-60 days	319				0.9		954				0.9		1,044				1.1
Loans delinquent 61-90 days	243				0.7		804				0.7		776				0.8
Loans delinquent 91 days or greater	670				1.8		1,109				1.0		1,238				1.2
Total loans in repayment	36,976		100.0		100.0	%	108,517		99.2		100.0	%	99,096		98.9	%	100.0	%
Total consumer loans	36,994		100.0	%			109,346		100.0	%			100,180		100.0	%
Accrued interest receivable	280						1,001						867
Loan premium	664						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 forbearance	1,722		1.8
Loans in repayment status:
Loans current	91,366				99.4	%
Loans delinquent 31-60 days	277				0.3
Loans delinquent 61-90 days	35				—
Loans delinquent 91-120 days	45				0.1
Loans delinquent 121-270 days	202				0.2
Loans delinquent 271 days or greater	—				—
Total loans in repayment	91,925		97.9		100.0	%
Total federally insured loans	93,930		100.0	%
Accrued interest receivable	1,177
Loan premium	28

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 forbearance	193		0.2				29		0.2
Loans in repayment status:
Loans current	98,120				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 repayment	98,120		99.7		100.0	%	17,514		99.8		100.0	%
Total private education loans	98,395		100.0	%			17,543		100.0	%
Accrued interest receivable	156						26
Deferred origination costs	1,430						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, 2021		2020	2019	2018	2017	Prior years	Total
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 current	2,252		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 repayment	2,252		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 receivable								2,076
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 current	19,710		1,295	6,915	7,695	129	—	35,744
Loans delinquent 31-60 days	62		80	119	51	7	—	319
Loans delinquent 61-90 days	53		—	103	87	—	—	243
Loans delinquent 91 days or greater	56		42	250	321	1	—	670
Total loans in repayment	19,881		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 receivable								280
Loan premium								664
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 forbearance	193		—	—	—	—	—	193
Loans in repayment status:
Loans current	85,589		12,531	—	—	—	—	98,120
Loans delinquent 31-60 days	—		—	—	—	—	—	—
Loans delinquent 61-90 days	—		—	—	—	—	—	—
Loans delinquent 91 days or greater	—		—	—	—	—	—	—
Total loans in repayment	85,589		12,531	—	—	—	—	98,120
Total private education loans	$	85,864	12,531	—	—	—	—	98,395
Accrued interest receivable								156
Deferred origination costs								1,430
Allowance for loan losses								(414)
Total private education loans and accrued interest receivable, net of allowance for loan losses								$	99,567

Bonds and Notes Payable

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

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 auction	450,300		0.00% - 2.15%	3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes	17,235,282
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 facilities	5,446		0.17%	11/22/22 / 2/26/24
Private education loan warehouse facility	118,299		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 agreement	194,190		0.78%	5/4/22
Repurchase agreements	334,473		0.57% - 1.13%	11/15/21 - 12/20/23
Secured line of credit	5,000		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 auction	749,925		1.12% - 2.14%	3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes	17,877,568
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations	923,076		1.42% - 3.45%	10/25/67 - 8/27/68
FFELP warehouse facilities	252,165		0.27% / 0.31%	5/20/22 / 2/26/23
Private education loan warehouse facility	150,397		0.28%	2/13/22
Consumer loan warehouse facility	25,809		0.28%	4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations	49,025		1.65% / 1.90%	12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization	37,251		3.60% / 5.35%	12/26/40 / 12/28/43
Unsecured line of credit	120,000		1.65%	12/16/24
Participation agreement	118,558		0.84%	5/4/21
Secured line of credit	5,000		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 outstanding	5,446		—	5,446
Amount available	$	54,554	50,000	104,554
Expiration of liquidity provisions	November 22, 2021		February 26, 2022
Final maturity date	November 22, 2022		February 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 2021-1

NSLT 2021-2

Total

Date securities issued

6/30/21

8/31/21

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%

Final maturity date

7/25/69

9/25/69

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 date

7/25/69

9/25/69

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,
	2021		2020	2021	2020
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

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Derivative Financial Instruments

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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").


Maturity	Notional amount
	As of		As of
	September 30, 2021		December 31, 2020
2021	$	—	250,000
2022	2,000,000		2,000,000
2023	750,000		750,000
2024	1,750,000		1,750,000
2026	1,150,000		1,150,000
2027	250,000		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, 2021				As of December 31, 2020
Maturity	Notional amount		Weighted average fixed rate paid by the Company (a)		Notional amount		Weighted average fixed rate paid by the Company (a)

2021	$	100,000	2.95	%	$	600,000	2.15	%
2022	500,000		0.94		500,000		0.94
2023	900,000		0.62		900,000		0.62
2024	2,500,000		0.35		2,000,000		0.32
2025	500,000		0.35		500,000		0.35
2026	300,000		0.81		—		—
2031	100,000		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,
	2021		2020	2021	2020
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 swaps	1,061		(161)	2,755	(1,475)
Interest rate swaps - floor income hedges	6,199		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)

Investments

9 Months Ended

Sep. 30, 2021

Investments [Abstract]

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, 2021						As of December 31, 2020
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value		Amortized cost	Gross unrealized gains	Gross unrealized losses	Fair 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-sale	2,337		—	—	2,337		2,103	2	—	2,105
Equity securities	58,336		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 method					37,020					14,018
Other					804					894
Total venture capital and funds					188,924					159,707
Real estate
Equity method					35,605					50,291
Notes receivable					3,500					847
Total real estate					39,105					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 ALLO					233,076					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 housing					3,755					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)).

Intangible Assets

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 of		As of
		September 30, 2021		December 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)	27	4,651		6,430
Trade names (net of accumulated amortization of $3,455)	—	—		1,666
Total - amortizable intangible assets, net	98	$	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
2022	9,939
2023	9,830
2024	7,457
2025	4,644
2026 and thereafter	20,159
	$	55,176

Goodwill

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 Systems		Education Technology, Services, and Payment Processing	Asset Generation and Management	Nelnet Bank	Corporate and Other Activities	Total












Goodwill balance	$	23,639	76,570	41,883	—	—	142,092

Property and Equipment

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consisted of the following:


		As of		As of
	Useful life	September 30, 2021		December 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
Land	—	3,642		3,642
Construction in progress	—	3,783		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.

Earnings per Common Share

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,
	2021				2020
	Common shareholders		Unvested restricted stock shareholders	Total	Common shareholders	Unvested restricted stock shareholders	Total
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 diluted	37,947,257		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,
	2021				2020
	Common shareholders		Unvested restricted stock shareholders	Total	Common shareholders	Unvested restricted stock shareholders	Total
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 diluted	38,025,898		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

Segment Reporting

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

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 Systems		Education Technology, Services, and Payment Processing	Communications (a)	Asset Generation and Management	Nelnet Bank	Corporate and Other Activities	Eliminations	Total
Total interest income	$	31	344	—	131,781	2,061	2,609	(172)	136,654
Interest expense	24		—	—	48,662	421	1,242	(172)	50,176
Net interest income	7		344	—	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 losses	7		344	—	77,179	1,753	1,367	—	80,651
Other income/expense:
Loan servicing and systems revenue	112,351		—	—	—	—	—	—	112,351
Intersegment revenue	8,621		3	—	—	—	—	(8,624)	—
Education technology, services, and payment processing revenue	—		85,324	—	—	—	—	—	85,324
Communications revenue	—		—	—	—	—	—	—	—
Other	727		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/expense	108,456		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 benefits	75,305		29,119	—	542	890	22,735	—	128,592
Depreciation and amortization	4,245		2,762	—	—	—	8,702	—	15,710
Other expenses	12,738		4,804	—	5,420	445	14,918	—	38,324
Intersegment expenses, net	19,217		3,672	—	8,652	32	(22,949)	(8,624)	—
Total operating expenses	111,505		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 Systems		Education Technology, Services, and Payment Processing	Communications	Asset Generation and Management	Nelnet Bank (a)	Corporate and Other Activities	Eliminations	Total
Total interest income	$	34	367	—	137,959	—	1,646	(261)	139,745
Interest expense	24		16	—	57,755	—	888	(261)	58,423
Net interest income	10		351	—	80,204	—	758	—	81,322
Less provision (negative provision) for loan losses	—		—	—	(5,821)	—	—	—	(5,821)
Net interest income after provision for loan losses	10		351	—	86,025	—	758	—	87,143
Other income/expense:
Loan servicing and systems revenue	113,794		—	—	—	—	—	—	113,794
Intersegment revenue	8,287		3	—	—	—	—	(8,290)	—
Education technology, services, and payment processing revenue	—		74,121	—	—	—	—	—	74,121
Communications revenue	—		—	20,211	—	—	—	—	20,211
Other	2,353		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/expense	124,434		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 benefits	72,912		25,460	5,485	438	—	21,801	—	126,096
Depreciation and amortization	9,951		2,366	11,152	—	—	6,839	—	30,308
Other expenses	12,407		3,126	2,219	3,672	—	13,320	—	34,744
Intersegment expenses, net	15,834		3,610	491	8,868	—	(20,513)	(8,290)	—
Total operating expenses	111,104		34,562	19,347	12,978	—	21,447	(8,290)	191,148
Income (loss) before income taxes	13,340		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 Systems		Education Technology, Services, and Payment Processing	Communications (a)	Asset Generation and Management	Nelnet Bank	Corporate and Other Activities	Eliminations	Total
Total interest income	$	95	818	—	388,149	5,479	5,379	(578)	399,341
Interest expense	70		—	—	124,282	1,007	3,158	(578)	127,939
Net interest income	25		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 losses	25		818	—	275,092	4,094	2,221	—	282,249
Other income/expense:
Loan servicing and systems revenue	335,961		—	—	—	—	—	—	335,961
Intersegment revenue	25,369		9	—	—	—	—	(25,378)	—
Education technology, services, and payment processing revenue	—		257,284	—	—	—	—	—	257,284
Communications revenue	—		—	—	—	—	—	—	—
Other	2,541		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/expense	350,628		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 benefits	210,151		82,154	—	1,594	3,956	65,496	—	363,351
Depreciation and amortization	20,411		8,789	—	—	—	26,927	—	56,129
Other expenses	39,296		14,063	—	12,763	1,227	40,265	—	107,611
Intersegment expenses, net	52,241		10,856	—	25,627	72	(63,419)	(25,378)	—
Total operating expenses	322,099		115,862	—	39,984	5,255	69,269	(25,378)	527,091
Income (loss) before income taxes	28,554		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 Systems		Education Technology, Services, and Payment Processing	Communications	Asset Generation and Management	Nelnet Bank (a)	Corporate and Other Activities	Eliminations	Total
Total interest income	$	403	2,777	—	474,468	—	4,397	(1,228)	480,818
Interest expense	97		54	—	275,492	—	3,373	(1,228)	277,788
Net interest income	306		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 losses	306		2,723	—	125,500	—	1,024	—	129,554
Other income/expense:
Loan servicing and systems revenue	337,571		—	—	—	—	—	—	337,571
Intersegment revenue	27,878		17	—	—	—	—	(27,895)	—
Education technology, services, and payment processing revenue	—		217,100	—	—	—	—	—	217,100
Communications revenue	—		—	57,390	—	—	—	—	57,390
Other	6,897		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/expense	372,346		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 benefits	211,806		73,678	16,471	1,301	—	61,964	—	365,220
Depreciation and amortization	27,941		7,115	32,482	—	—	19,811	—	87,349
Other expenses	43,277		11,544	9,681	12,253	—	38,428	—	115,184
Intersegment expenses, net	48,069		10,366	1,650	29,839	—	(62,030)	(27,895)	—
Total operating expenses	331,093		102,703	60,284	43,393	—	58,173	(27,895)	567,753
Income (loss) before income taxes	41,559		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.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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+ Details

Disaggregated Revenue

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

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,
	2021		2020	2021	2020
Government servicing - Nelnet	$	37,595	36,295	107,843	112,305
Government servicing - Great Lakes	46,489		45,350	133,654	137,010
Private education and consumer loan servicing	13,198		7,928	34,563	24,733
FFELP servicing	4,557		4,912	13,930	15,443
Software services	6,952		10,426	22,779	32,395
Outsourced services	3,560		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,
	2021		2020	2021	2020
Tuition payment plan services	$	23,618	22,477	79,706	77,011
Payment processing	39,852		35,420	97,898	88,329
Education technology and services	21,098		15,840	78,153	50,820
Other	756		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,
	2021		2020	2021	2020
Income/gains from investments, net	$	16,050	1,687	40,141	51,772
Investment advisory services	2,400		4,463	6,242	8,187
ALLO preferred return	2,043		—	6,384	—
Management fee revenue	727		2,353	2,541	6,897
Borrower late fee income	514		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

Other	7,289		3,862	16,136	10,807
	$	11,867	1,502	30,183	69,910

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=49130388

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+ Details

Major Customer	9 Months Ended
Major Customer	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.

Fair Value

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

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, 2021			As of December 31, 2020
	Level 1		Level 2	Total	Level 1	Level 2	Total
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-sale	100		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 value		Carrying value	Level 1	Level 2	Level 3
Financial assets:
Loans receivable	$	19,690,209	18,469,372	—	—	19,690,209
Accrued loan interest receivable	834,831		834,831	—	834,831	—
Cash and cash equivalents	191,936		191,936	191,936	—	—
Investments (at fair value)	847,765		847,765	61,673	777,621	—

Beneficial interest in loan securitizations	127,364		108,827	—	—	127,364
Restricted cash	764,089		764,089	764,089	—	—
Restricted cash – due to customers	295,053		295,053	295,053	—	—


Financial liabilities:
Bonds and notes payable	18,854,255		18,610,748	—	18,854,255	—
Accrued interest payable	4,441		4,441	—	4,441	—
Bank deposits	199,372		200,651	42,585	156,787	—
Due to customers	354,543		354,543	354,543	—	—


	As of December 31, 2020
	Fair value		Carrying value	Level 1	Level 2	Level 3
Financial assets:
Loans receivable	$	20,454,132	19,391,045	—	—	20,454,132
Accrued loan interest receivable	794,611		794,611	—	794,611	—
Cash and cash equivalents	121,249		121,249	121,249	—	—
Investments (at fair value)	390,648		390,648	10,217	348,504	—

Beneficial interest in loan securitizations	58,709		58,331	—	—	58,709
Restricted cash	553,175		553,175	553,175	—	—
Restricted cash – due to customers	283,971		283,971	283,971	—	—


Financial liabilities:
Bonds and notes payable	19,270,810		19,320,726	—	19,270,810	—
Accrued interest payable	28,701		28,701	—	28,701	—
Bank deposits	54,599		54,633	48,422	6,177	—
Due to customers	301,471		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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Basis of Financial Reporting (Policies)	9 Months Ended
Basis of Financial Reporting (Policies)	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").

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 of		As of
	September 30, 2021		December 31, 2020
Non-Nelnet Bank:
Federally insured student loans:
Stafford and other	$	4,142,059	4,383,000
Consolidation	13,939,429		14,746,173
Total	18,081,488		19,129,173
Private education loans	319,212		320,589
Consumer loans	36,994		109,346
Non-Nelnet Bank loans	18,437,694		19,559,108
Nelnet Bank:
Federally insured student loans	93,930		—



Private education loans	98,395		17,543

Nelnet Bank loans	192,325		17,543

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:
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 period		Impact of ASC 326 adoption	Provision (negative provision) for loan losses	Charge-offs	Recoveries	Initial allowance on loans purchased with credit deterioration (a)	Loan sales	Balance 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 loans	19,403		—	(1,208)	(954)	113	—	(301)	17,053
Consumer loans	4,702		—	2,696	(1,133)	187	—	(2,023)	4,429
Nelnet Bank
Federally insured loans	245		—	44	—	—	—	—	289
Private education loans	567		—	(157)	—	4	—	—	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 loans	25,535		—	(5,650)	(5)	133	—	—	20,013
Consumer loans	39,081		—	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 loans	19,529		—	(781)	(1,850)	454	—	(299)	17,053
Consumer loans	27,256		—	(7,016)	(4,547)	668	—	(11,932)	4,429
Nelnet Bank
Federally insured loans	—		—	289	—	—	—	—	289
Private education loans	323		—	89	—	4	—	(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 loans	9,597		4,797	6,471	(1,360)	508	—	—	20,013
Consumer loans	15,554		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, 2021						As of December 31, 2020						As 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 current	13,525,751				88.1	%	13,683,054				84.9	%	14,845,519				91.7	%
Loans delinquent 31-60 days	548,670				3.6		633,411				3.9		945,411				5.9
Loans delinquent 61-90 days	286,681				1.9		307,936				1.9		249,523				1.5
Loans delinquent 91-120 days	163,447				1.1		800,257				5.0		129,994				0.8
Loans delinquent 121-270 days	467,441				3.0		674,975				4.2		605				0.0
Loans delinquent 271 days or greater	354,188				2.3		20,337				0.1		19,867				0.1
Total loans in repayment	15,346,178		84.9		100.0	%	16,119,970		84.3		100.0	%	16,190,919		84.6		100.0	%
Total federally insured loans	18,081,488		100.0	%			19,129,173		100.0	%			19,145,579		100.0	%
Accrued interest receivable	831,142						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 current	300,231				98.3	%	310,036				99.0	%	261,514				98.8	%
Loans delinquent 31-60 days	1,870				0.6		1,099				0.4		1,820				0.7
Loans delinquent 61-90 days	912				0.3		675				0.2		454				0.2
Loans delinquent 91 days or greater	2,363				0.8		1,371				0.4		743				0.3
Total loans in repayment	305,376		95.7		100.0	%	313,181		97.7		100.0	%	264,531		96.6		100.0	%
Total private education loans	319,212		100.0	%			320,589		100.0	%			273,807		100.0	%
Accrued interest receivable	2,076						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, 2021						As of December 31, 2020						As 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 current	35,744				96.6	%	105,650				97.4	%	96,038				96.9	%
Loans delinquent 31-60 days	319				0.9		954				0.9		1,044				1.1
Loans delinquent 61-90 days	243				0.7		804				0.7		776				0.8
Loans delinquent 91 days or greater	670				1.8		1,109				1.0		1,238				1.2
Total loans in repayment	36,976		100.0		100.0	%	108,517		99.2		100.0	%	99,096		98.9	%	100.0	%
Total consumer loans	36,994		100.0	%			109,346		100.0	%			100,180		100.0	%
Accrued interest receivable	280						1,001						867
Loan premium	664						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 forbearance	1,722		1.8
Loans in repayment status:
Loans current	91,366				99.4	%
Loans delinquent 31-60 days	277				0.3
Loans delinquent 61-90 days	35				—
Loans delinquent 91-120 days	45				0.1
Loans delinquent 121-270 days	202				0.2
Loans delinquent 271 days or greater	—				—
Total loans in repayment	91,925		97.9		100.0	%
Total federally insured loans	93,930		100.0	%
Accrued interest receivable	1,177
Loan premium	28

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 forbearance	193		0.2				29		0.2
Loans in repayment status:
Loans current	98,120				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 repayment	98,120		99.7		100.0	%	17,514		99.8		100.0	%
Total private education loans	98,395		100.0	%			17,543		100.0	%
Accrued interest receivable	156						26
Deferred origination costs	1,430						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, 2021		2020	2019	2018	2017	Prior years	Total
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 current	2,252		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 repayment	2,252		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 receivable								2,076
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 current	19,710		1,295	6,915	7,695	129	—	35,744
Loans delinquent 31-60 days	62		80	119	51	7	—	319
Loans delinquent 61-90 days	53		—	103	87	—	—	243
Loans delinquent 91 days or greater	56		42	250	321	1	—	670
Total loans in repayment	19,881		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 receivable								280
Loan premium								664
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 forbearance	193		—	—	—	—	—	193
Loans in repayment status:
Loans current	85,589		12,531	—	—	—	—	98,120
Loans delinquent 31-60 days	—		—	—	—	—	—	—
Loans delinquent 61-90 days	—		—	—	—	—	—	—
Loans delinquent 91 days or greater	—		—	—	—	—	—	—
Total loans in repayment	85,589		12,531	—	—	—	—	98,120
Total private education loans	$	85,864	12,531	—	—	—	—	98,395
Accrued interest receivable								156
Deferred origination costs								1,430
Allowance for loan losses								(414)
Total private education loans and accrued interest receivable, net of allowance for loan losses								$	99,567

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 auction	450,300		0.00% - 2.15%	3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes	17,235,282
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 facilities	5,446		0.17%	11/22/22 / 2/26/24
Private education loan warehouse facility	118,299		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 agreement	194,190		0.78%	5/4/22
Repurchase agreements	334,473		0.57% - 1.13%	11/15/21 - 12/20/23
Secured line of credit	5,000		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 auction	749,925		1.12% - 2.14%	3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes	17,877,568
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations	923,076		1.42% - 3.45%	10/25/67 - 8/27/68
FFELP warehouse facilities	252,165		0.27% / 0.31%	5/20/22 / 2/26/23
Private education loan warehouse facility	150,397		0.28%	2/13/22
Consumer loan warehouse facility	25,809		0.28%	4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations	49,025		1.65% / 1.90%	12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization	37,251		3.60% / 5.35%	12/26/40 / 12/28/43
Unsecured line of credit	120,000		1.65%	12/16/24
Participation agreement	118,558		0.84%	5/4/21
Secured line of credit	5,000		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 outstanding	5,446		—	5,446
Amount available	$	54,554	50,000	104,554
Expiration of liquidity provisions	November 22, 2021		February 26, 2022
Final maturity date	November 22, 2022		February 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 2021-1

NSLT 2021-2

Total

Date securities issued

6/30/21

8/31/21

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%

Final maturity date

7/25/69

9/25/69

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 date

7/25/69

9/25/69

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,
	2021		2020	2021	2020
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

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").


Maturity	Notional amount
	As of		As of
	September 30, 2021		December 31, 2020
2021	$	—	250,000
2022	2,000,000		2,000,000
2023	750,000		750,000
2024	1,750,000		1,750,000
2026	1,150,000		1,150,000
2027	250,000		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, 2021				As of December 31, 2020
Maturity	Notional amount		Weighted average fixed rate paid by the Company (a)		Notional amount		Weighted average fixed rate paid by the Company (a)

2021	$	100,000	2.95	%	$	600,000	2.15	%
2022	500,000		0.94		500,000		0.94
2023	900,000		0.62		900,000		0.62
2024	2,500,000		0.35		2,000,000		0.32
2025	500,000		0.35		500,000		0.35
2026	300,000		0.81		—		—
2031	100,000		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,
	2021		2020	2021	2020
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 swaps	1,061		(161)	2,755	(1,475)
Interest rate swaps - floor income hedges	6,199		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)

Investments (Tables)

9 Months Ended

Sep. 30, 2021

Investments [Abstract]

Investments

A summary of the Company's investments follows:


	As of September 30, 2021						As of December 31, 2020
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value		Amortized cost	Gross unrealized gains	Gross unrealized losses	Fair 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-sale	2,337		—	—	2,337		2,103	2	—	2,105
Equity securities	58,336		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 method					37,020					14,018
Other					804					894
Total venture capital and funds					188,924					159,707
Real estate
Equity method					35,605					50,291
Notes receivable					3,500					847
Total real estate					39,105					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 ALLO					233,076					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 housing					3,755					5,177
Total investments (not measured at fair value)					527,148					602,292
Total investments					$	1,374,913				$	992,940