NELNET INC, 10-Q filed on 8/6/2020
Quarterly Report
v3.20.2
Cover Page - shares
6 Months Ended
Jun. 30, 2020
Jul. 31, 2020
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2020  
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 $0.01 per Share  
Trading Symbol NNI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Current Fiscal Year End Date --12-31  
Amendment Flag false  
Entity Central Index Key 0001258602  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q2  
Common Class A    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   27,152,828
Common Class B    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   11,171,609
v3.20.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Assets:    
Loans and accrued interest receivable (net of allowance for loan losses of $209,445 and $61,914, respectively) $ 20,460,873 $ 21,402,868
Cash and cash equivalents:    
Cash and cash equivalents - not held at a related party 14,242 13,922
Cash and cash equivalents - held at a related party 53,298 119,984
Total cash and cash equivalents 67,540 133,906
Investments 449,700 247,099
Restricted cash 585,236 650,939
Restricted cash - due to customers 268,539 437,756
Accounts receivable (net of allowance for doubtful accounts of $3,901 and $4,455, respectively) 73,783 115,391
Goodwill 156,912 156,912
Intangible assets, net 66,733 81,532
Property and equipment, net 350,043 348,259
Other assets 131,849 134,308
Total assets 22,611,208 23,708,970
Liabilities:    
Bonds and notes payable 19,726,158 20,529,054
Accrued interest payable 32,760 47,285
Other liabilities 242,965 303,781
Due to customers 268,539 437,756
Total liabilities 20,270,422 21,317,876
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 1,867 5,715
Retained earnings 2,331,312 2,377,627
Accumulated other comprehensive earnings 3,233 2,972
Total Nelnet, Inc. shareholders' equity 2,336,796 2,386,712
Noncontrolling interests 3,990 4,382
Total equity 2,340,786 2,391,094
Total liabilities and equity 22,611,208 23,708,970
Variable Interest Entity, Primary Beneficiary    
Assets:    
Loans and accrued interest receivable (net of allowance for loan losses of $209,445 and $61,914, respectively) 20,488,321 21,399,382
Cash and cash equivalents:    
Restricted cash 567,064 639,816
Other assets 30 31
Liabilities:    
Bonds and notes payable 19,856,362 20,742,798
Other liabilities 97,523 162,494
Common stock:    
Net assets of consolidated education and other lending variable interest entities 1,101,530 1,133,937
Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 27,232,836 shares and 28,458,495 shares, respectively    
Common stock:    
Common stock 272 285
Class B, convertible, $0.01 par value. Authorized 60,000,000 shares; issued and outstanding 11,171,609 shares and 11,271,609 shares, respectively    
Common stock:    
Common stock $ 112 $ 113
v3.20.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Allowance for loan losses $ 209,445 $ 61,914
Allowance for doubtful accounts $ 3,901 $ 4,455
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) 27,232,836 28,458,495
Shares outstanding (in shares) 27,232,836 28,458,495
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) 11,171,609 11,271,609
Shares outstanding (in shares) 11,171,609 11,271,609
v3.20.2
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Interest income:        
Loan interest $ 146,140 $ 238,222 $ 327,933 $ 480,555
Investment interest 5,743 8,566 13,141 16,819
Total interest income 151,883 246,788 341,074 497,374
Interest expense:        
Interest on bonds and notes payable 85,248 186,963 219,366 378,733
Net interest income 66,635 59,825 121,708 118,641
Less provision for loan losses 2,999 9,000 79,297 16,000
Net interest income after provision for loan losses 63,636 50,825 42,411 102,641
Other income/expense:        
Gain on sale of loans 0 1,712 18,206 1,712
Other income 60,127 14,440 68,408 23,507
Impairment expense (332) 0 (34,419) 0
Derivative market value adjustments and derivative settlements, net 1,910 (24,088) (14,455) (35,628)
Total other income/expense 251,049 182,149 441,676 388,276
Cost of services:        
Cost of services 21,119 20,972 49,506 46,790
Operating expenses:        
Salaries and benefits 119,247 111,214 239,125 222,272
Depreciation and amortization 29,393 24,484 57,041 48,697
Other expenses 37,052 45,417 80,439 89,233
Total operating expenses 185,692 181,115 376,605 360,202
Income before income taxes 107,874 30,887 57,976 83,925
Income tax expense 21,264 6,209 11,131 17,600
Net income 86,610 24,678 46,845 66,325
Net income attributable to noncontrolling interests (128) (59) (895) (115)
Net income attributable to Nelnet, Inc. $ 86,482 $ 24,619 $ 45,950 $ 66,210
Earnings per common share:        
Net (loss) income attributable to Nelnet, Inc. shareholders - basic and diluted (in dollars per share) $ 2.21 $ 0.61 $ 1.16 $ 1.65
Weighted average common shares outstanding - basic and diluted (in shares) 39,203,404 40,050,065 39,579,459 40,210,787
Loan servicing and systems        
Other income/expense:        
Revenue $ 111,042 $ 113,985 $ 223,778 $ 228,883
Education technology, services, and payment processing        
Other income/expense:        
Revenue 59,304 60,342 142,979 139,502
Cost of services:        
Cost of services 15,376 15,871 38,181 36,930
Communications services        
Other income/expense:        
Revenue 18,998 15,758 37,179 30,300
Cost of services:        
Cost of services $ 5,743 $ 5,101 $ 11,325 $ 9,860
v3.20.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Statement of Comprehensive Income [Abstract]        
Net income $ 86,610 $ 24,678 $ 46,845 $ 66,325
Available-for-sale securities:        
Unrealized holding gains (losses) arising during period, net 3,236 (537) 221 (972)
Reclassification adjustment for (gains) losses recognized in net income, net (112) 0 123 0
Income tax effect (750) 129 (83) 233
Total other comprehensive income (loss) 2,374 (408) 261 (739)
Comprehensive income 88,984 24,270 47,106 65,586
Comprehensive income attributable to noncontrolling interests (128) (59) (895) (115)
Comprehensive income attributable to Nelnet, Inc. $ 88,856 $ 24,211 $ 46,211 $ 65,471
v3.20.2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Cumulative Effect, Period Of Adoption, Adjustment
Preferred stock
Common stock
Common Class A
Common stock
Common Class B
Additional paid-in capital
 Retained earnings
 Retained earnings
Cumulative Effect, Period Of Adoption, Adjustment
Accumulated other comprehensive (loss) earnings
Noncontrolling interests
Noncontrolling interests
Cumulative Effect, Period Of Adoption, Adjustment
Balance (in shares) at Dec. 31, 2018     0 28,798,464 11,459,641            
Balance at Dec. 31, 2018 $ 2,314,779 $ (6,077) $ 0 $ 288 $ 115 $ 622 $ 2,299,556   $ 3,883 $ 10,315 $ (6,077)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of noncontrolling interests 52                 52  
Net income 66,325           66,210     115  
Other comprehensive loss (739)               (739)    
Distribution to noncontrolling interests (113)                 (113)  
Cash dividend on Class A and Class B common stock (14,403)           (14,403)        
Issuance of common stock, net of forfeitures (in shares)       141,529              
Issuance of common stock, net of forfeitures 3,877     $ 1   3,876          
Compensation expense for stock based awards 2,958         2,958          
Repurchase of common stock (in shares)       (720,467)              
Repurchase of common stock (40,041)     $ (7)   (5,786) (34,248)        
Conversion of common stock (in shares)       180,000 180,000            
Conversion of common stock 0     $ 2 $ 2            
Balance (in shares) at Jun. 30, 2019     0 28,399,526 11,279,641            
Balance at Jun. 30, 2019 2,326,618   $ 0 $ 284 $ 113 1,670 2,317,115   3,144 4,292  
Balance (in shares) at Mar. 31, 2019     0 28,628,528 11,459,641            
Balance at Mar. 31, 2019 2,330,294   $ 0 $ 286 $ 115 636 2,321,407   3,552 4,298  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of noncontrolling interests 26                 26  
Net income 24,678           24,619     59  
Other comprehensive loss (408)               (408)    
Distribution to noncontrolling interests (91)                 (91)  
Cash dividend on Class A and Class B common stock (7,172)           (7,172)        
Issuance of common stock, net of forfeitures (in shares)       10,138              
Issuance of common stock, net of forfeitures 1,384         1,384          
Compensation expense for stock based awards 1,590         1,590          
Repurchase of common stock (in shares)       (419,140)              
Repurchase of common stock (23,683)     $ (4)   (1,940) (21,739)        
Conversion of common stock (in shares)       180,000 (180,000)            
Conversion of common stock 0     $ 2 $ (2)            
Balance (in shares) at Jun. 30, 2019     0 28,399,526 11,279,641            
Balance at Jun. 30, 2019 2,326,618   $ 0 $ 284 $ 113 1,670 2,317,115   3,144 4,292  
Balance (in shares) at Dec. 31, 2019     0 28,458,495 11,271,609            
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 52                 52  
Net income 46,845           45,950     895  
Other comprehensive loss 261               261    
Distribution to noncontrolling interests (589)                 (589)  
Cash dividend on Class A and Class B common stock (15,679)           (15,679)        
Issuance of common stock, net of forfeitures (in shares)       172,275              
Issuance of common stock, net of forfeitures 4,601     $ 1   4,600          
Compensation expense for stock based awards 3,595         3,595          
Repurchase of common stock (in shares)       (1,497,934)              
Repurchase of common stock (68,527)     $ (15)   (12,043) (56,469)        
Conversion of common stock (in shares)       100,000 100,000            
Conversion of common stock       $ 1 $ 1            
Acquisition of noncontrolling interest (2,000)           (1,250)     (750)  
Balance (in shares) at Jun. 30, 2020     0 27,232,836 11,171,609            
Balance at Jun. 30, 2020 2,340,786   $ 0 $ 272 $ 112 1,867 2,331,312   3,233 3,990  
Balance (in shares) at Mar. 31, 2020     0 28,582,032 11,271,609            
Balance at Mar. 31, 2020 2,325,800   $ 0 $ 286 $ 113 9,140 2,310,282   859 5,120  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of noncontrolling interests 26                 26  
Net income 86,610           86,482     128  
Other comprehensive loss 2,374               2,374    
Distribution to noncontrolling interests (534)                 (534)  
Cash dividend on Class A and Class B common stock (7,733)           (7,733)        
Issuance of common stock, net of forfeitures (in shares)       23,853              
Issuance of common stock, net of forfeitures 1,660         1,660          
Compensation expense for stock based awards 1,857         1,857          
Repurchase of common stock (in shares)       (1,473,049)              
Repurchase of common stock (67,274)     $ (15)   (10,790) (56,469)        
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)  
Balance (in shares) at Jun. 30, 2020     0 27,232,836 11,171,609            
Balance at Jun. 30, 2020 $ 2,340,786   $ 0 $ 272 $ 112 $ 1,867 $ 2,331,312   $ 3,233 $ 3,990  
v3.20.2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Common Class A        
Cash dividend on Class A and Class B common stock (in dollars per share) $ 0.20 $ 0.18 $ 0.40 $ 0.36
Common Class B        
Cash dividend on Class A and Class B common stock (in dollars per share) $ 0.20 $ 0.18 $ 0.40 $ 0.36
v3.20.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Statement of Cash Flows [Abstract]    
Net income attributable to Nelnet, Inc. $ 45,950 $ 66,210
Net income attributable to noncontrolling interests 895 115
Net income 46,845 66,325
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs 99,282 94,121
Loan discount accretion (19,196) (18,806)
Provision for loan losses 79,297 16,000
Derivative market value adjustments 24,513 67,635
Proceeds from termination of derivative instruments 0 2,119
Payments to clearinghouse - initial and variation margin, net (24,453) (77,229)
Gain on sale of loans (18,206) (1,712)
Gain from investments, net (48,402) (2,970)
(Gain) loss on repurchases and extinguishment of debt (403) 1,801
Deferred income tax benefit (14,762) (15,023)
Non-cash compensation expense 3,581 3,138
Impairment expense 34,419 0
Increase in accrued interest receivable (123,276) (44,967)
Decrease (increase) in accounts receivable 41,608 (5,972)
Decrease (increase) in other assets, net 22,992 (6,065)
Decrease in the carrying amount of ROU asset 5,948 4,307
Decrease in accrued interest payable (14,525) (5,208)
Decrease in other liabilities (26,817) (504)
Decrease in the carrying amount of lease liability (4,829) (4,164)
Decrease in due to customers (169,217) (90,661)
Net cash used in operating activities (105,601) (17,835)
Cash flows from investing activities:    
Purchases of loans (872,987) (997,123)
Purchases of loans from a related party (75,118) (32,580)
Net proceeds from loan repayments, claims, and capitalized interest 1,800,286 1,889,084
Proceeds from sale of loans 90,465 42,215
Purchases of available-for-sale securities (112,675) (1,010)
Proceeds from sales of available-for-sale securities 23,372 192
Proceeds from beneficial interest in loan securitizations 21,765 968
Purchases of other investments (117,598) (26,314)
Proceeds from other investments 6,770 23,763
Purchases of property and equipment (46,994) (43,715)
Net cash provided by investing activities 717,286 855,480
Cash flows from financing activities:    
Payments on bonds and notes payable (2,073,710) (2,007,483)
Proceeds from issuance of bonds and notes payable 1,252,360 1,092,186
Payments of debt issuance costs (5,863) (5,515)
Payments to extinguish debt 0 (1,394)
Dividends paid (15,679) (14,403)
Repurchases of common stock (68,527) (40,041)
Proceeds from issuance of common stock 781 724
Acquisition of noncontrolling interest (2,000) 0
Distribution to noncontrolling interests (333) (113)
Net cash used in financing activities (912,971) (976,039)
Net decrease in cash, cash equivalents, and restricted cash (301,286) (138,394)
Cash, cash equivalents, and restricted cash, beginning of period 1,222,601 1,192,391
Cash, cash equivalents, and restricted cash, end of period 921,315 1,053,997
Supplemental disclosures of cash flow information:    
Cash disbursements made for interest 209,170 354,902
Cash disbursements made for income taxes, net of refunds and credits received 7,949 11,529
Cash disbursements made for operating leases 5,442 4,792
Noncash operating, investing, and financing activity:    
ROU assets obtained in exchange for lease obligations 3,265 3,298
Receipt of beneficial interest in consumer loan securitizations 38,490 7,921
Distribution to noncontrolling interest 33 0
Cash and cash equivalents:    
Cash, cash equivalents, and restricted cash $ 1,222,601 $ 1,053,997
v3.20.2
Basis of Financial Reporting
6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Financial Reporting Basis of Financial Reporting
The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of June 30, 2020 and for the three and six months ended June 30, 2020 and 2019 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2019 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results for the year ending December 31, 2020. 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, 2019 (the "2019 Annual Report").
Reclassifications
Certain amounts previously reported have been reclassified to conform to the current period presentation. These reclassifications include:
Reclassifying the line item "accrued interest receivable" on the Company's consolidated balance sheet to "loans and accrued interest receivable" and "investments"; and
Reclassifying "gain on sale of loans" that was previously included in "other income" to a new line item on the Company's consolidated statements of income.
Accounting Standard Adopted in 2020
In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments – Credit Losses (“ASC 326”), which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss ("CECL") methodology. Since its original issuance in 2016, the FASB has issued several updates to the original ASU.
The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for financial assets measured at amortized cost at the time the financial asset is originated or acquired, including, for the Company, loans receivable, accounts receivable, and held-to-maturity beneficial interests in loan securitizations. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. For available-for-sale debt securities where fair value is less than amortized cost, credit-related impairment, if any, is recognized through an allowance for credit losses and adjusted each period for changes in credit risk.
On January 1, 2020, the Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 (recognizing estimated credit losses expected to occur over the asset's remaining life) while prior period amounts continue to be reported in accordance with previously applicable GAAP (recognizing estimated credit losses using an incurred loss model); therefore, the comparative information for 2019 is not comparable to the information presented for 2020. Adoption of the new guidance primarily impacted the allowance for loan losses related to the Company's loan portfolio. Upon adoption, the Company recorded an increase to the allowance for loan losses of $91.0 million, which included a reclassification of the non-accretable discount balance and premiums related to loans purchased with evidence of credit deterioration, and decreased retained earnings, net of tax, by $18.9 million. The following table illustrates the impact of the adoption of ASC 326.
Balances at
December 31, 2019
Impact of ASC 326 adoptionBalances at
January 1, 2020
Assets
Loans and accrued interest receivable, net of allowance
Loans receivable$20,798,719  —  20,798,719  
Accrued interest receivable733,497  —  733,497  
Loan discount, net(35,036) 33,790  (1,246) 
Non-accretable discount(32,398) 32,398  —  
Allowance for loan losses(61,914) (91,014) (152,928) 
Loans and accrued interest receivable, net of allowance21,402,868  (24,826) 21,378,042  
Liabilities
Other liabilities (deferred taxes)303,781  (5,958) 297,823  
Equity
Retained earnings2,377,627  (18,868) 2,358,759  

The Company adopted ASC 326 using the prospective transition approach for loans receivable purchased with credit deterioration ("PCD") that were previously classified as purchased credit impaired ("PCI"). In accordance with the standard, the Company did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the unamortized cost basis of the PCD assets were adjusted to reflect the addition of $32.4 million in the allowance for loan losses (as reflected in the table above). The remaining noncredit premium on these loans as of January 1, 2020 (based on the adjusted amortized cost basis) will be amortized into interest income over the life of the loans. Changes to the allowance for loan losses on these loans after adoption are recorded through provision expense.
Summary of Significant Accounting Policies Affected by Implementation of ASC 326
Allowance for Loan Losses
The allowance for loan losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans as of the balance sheet date. Such allowance is based on the credit losses expected to arise over the life of the asset which includes consideration of prepayments. Loans are charged off when management determines the loan is uncollectible. Charge-offs are recognized as a reduction to the allowance for loan losses. Expected recoveries of amounts previously charged off, not to exceed the aggregate of the amount previously charged off, are included in the estimate of the allowance for loan losses at the balance sheet date.
The Company aggregates loans with similar risk characteristics into homogeneous pools to estimate its expected credit losses. The Company continuously evaluates such pooling decisions and adjusts as needed from period to period as risk characteristics change.
The Company determines its estimated credit losses for the following financial assets as follows:
Loans receivable
Management has determined that the federally insured, private education, and consumer loan portfolios each meet the definition of a portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for loan losses. Accordingly, the portfolio segment disclosures are presented on this basis in note 2 for each of these portfolios. The Company does not disaggregate its portfolio segment loan portfolios into classes of financing receivables.
The Company utilizes an undiscounted cash flow methodology in determining its lifetime expected credit losses on its federally insured and private education loan portfolios and a remaining life methodology for its consumer loan portfolio. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The Company has determined that, for modeling current expected credit losses, in general, the Company can reasonably estimate expected losses that incorporate current and forecasted economic conditions up to a one-year period. After this "reasonable and supportable" period, the Company uses a reversion period to the Company's actual long-term historical loss experience over a full economic life cycle. Historical credit loss experience provides
the basis for the estimation of expected credit losses. Qualitative and quantitative adjustments to historical loss information are made separately on each of the Company’s federally insured, private education, and consumer loan portfolios.
Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider all of the following for the Company’s federally insured loan portfolio: loans in repayment versus those in nonpaying status; delinquency status; trends in defaults in the portfolio based on Company and industry data; past experience; trends in student loan claims rejected for payment by guarantors; changes in federal student loan programs; current economic conditions, including changes in unemployment rates; and other relevant qualitative factors. The federal government guarantees 97 percent of the principal of and the interest on federally insured student loans disbursed on and after July 1, 2006 (and 98 percent for those loans disbursed on and after October 1, 1993 and prior to July 1, 2006), which limits the Company’s loss exposure on the outstanding balance of the Company’s federally insured portfolio. Student loans disbursed prior to October 1, 1993 are fully insured.
Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider all of the following for the Company’s private education loans: loans in repayment versus those in a nonpaying status; delinquency status; type of program; trends in defaults in the portfolio based on Company and industry data; past experience; current economic conditions, including changes in unemployment rates and gross domestic product growth; and other relevant qualitative factors. The Company places private education loans on nonaccrual status when the collection of principal and interest is 90 days past due and charges off the loan when the collection of principal and interest is 120 days past due. Collections, if any, are reflected as a recovery through the allowance for loan losses.
Qualitative and quantitative adjustments related to current conditions and a reasonable and supportable forecast period consider all of the following for the Company's consumer loans: delinquency status; type of program; trends in defaults in the portfolio based on Company and industry data; past experience; current economic conditions; and other relevant qualitative factors. The Company places consumer loans on nonaccrual status when the collection of principal and interest is 90 days past due and charges off the loan when the collection of principal and interest is 120 days or 180 days past due, depending on type of loan program. Collections, if any, are reflected as a recovery through the allowance for loan losses.
Purchased Loans Receivable with Credit Deterioration (“PCD”)
The Company has purchased federally insured rehabilitation loans that have experienced more than insignificant credit deterioration since origination. Rehabilitation loans are loans that have previously defaulted, but for which the borrower has made a specified number of on-time payments. Although rehabilitation loans benefit from the same guarantees as other federally insured loans, rehabilitation loans have generally experienced redefault rates that are higher than default rates for federally insured loans that have not previously defaulted. These PCD loans are recorded at the amount paid. An allowance for loan losses is determined using the same methodology as for other loans held for investment. The sum of the loans’ purchase price and allowance for loan losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized or accreted into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision expense.
Loan Accrued Interest Receivable
The Company has elected to present its loan accrued interest receivable balance combined in its consolidated balance sheets with the loans receivable amortized cost balance.
For the Company’s federally insured loan portfolio, the Company has elected to measure an allowance for credit losses for accrued interest receivables. For federally insured loans, accrued interest receivable is typically charged-off when the contractual payment of principal or interest has become greater than 270 days past due. Charge-offs of accrued interest receivable are recognized as a reduction to the allowance for loan losses.
For the Company’s private education and consumer loan portfolios, the Company has elected not to measure an allowance for credit losses for accrued interest receivables. For private education and consumer loans, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due. Charge-offs of accrued interest receivable are recognized by reversing interest income.
v3.20.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses
6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Loans and Accrued Interest Receivable and Allowance for Loan Losses Loans and Accrued Interest Receivable and Allowance for Loan Losses
Loans and accrued interest receivable consisted of the following:
As ofAs of
 June 30, 2020December 31, 2019
Federally insured student loans:
Stafford and other$4,439,492  4,684,314  
Consolidation14,948,379  15,644,229  
Total19,387,871  20,328,543  
Private education loans293,218  244,258  
Consumer loans149,308  225,918  
 19,830,397  20,798,719  
Accrued interest receivable856,880  733,497  
Loan discount, net of unamortized loan premiums and deferred origination costs
(16,959) (35,036) 
Non-accretable discount—  (32,398) 
Allowance for loan losses:
Federally insured loans(144,829) (36,763) 
Private education loans(25,535) (9,597) 
Consumer loans(39,081) (15,554) 
 $20,460,873  21,402,868  
On January 30, 2020, the Company sold $124.2 million (par value) of consumer loans to an unrelated third party who securitized such loans. The Company recognized a $18.2 million (pre-tax) gain as part of this transaction. As partial consideration received for the consumer loans sold, the Company received a 31.4 percent residual interest in the consumer loan securitization that is included in "investments" on the Company's consolidated balance sheet.
Subsequent to June 30, 2020, the Company made the decision to sell an additional $60.8 million (par value) of consumer loans to an unrelated third party who securitized such loans. As of June 30, 2020, these loans were classified as held for investment and are included in the table above. As partial consideration received for the consumer loans sold, the Company received a 25.4 percent residual interest in the consumer loan securitization. The Company currently anticipates recognizing a gain in the third quarter of 2020 of $14.8 million (pre-tax) from the sale of those loans.
Activity in the Allowance for Loan Losses
The following table presents the activity in the allowance for loan losses by portfolio segment.
Balance at beginning of periodImpact of ASC 326 adoptionProvision for loan lossesCharge-offsRecoveriesInitial allowance on loans purchased with credit deterioration (a)Loan saleBalance at end of period
 Three months ended June 30, 2020
Federally insured loans$146,759  —  (1,950) (6,080) —  6,100  —  144,829  
Private education loans23,056  —  2,322  (26) 183  —  —  25,535  
Consumer loans39,053  —  2,627  (2,820) 221  —  —  39,081  
$208,868  —  2,999  (8,926) 404  6,100  —  209,445  
Three months ended June 30, 2019
Federally insured loans$40,934  —  2,000  (3,878) —  —  —  39,056  
Private education loans10,587  —  —  (588) 158  —  —  10,157  
Consumer loans10,257  —  7,000  (2,652) 273  —  (1,500) 13,378  
$61,778  —  9,000  (7,118) 431  —  (1,500) 62,591  
Six months ended June 30, 2020
Federally insured loans$36,763  72,291  37,373  (12,398) —  10,800  —  144,829  
Private education loans9,597  4,797  12,121  (1,355) 375  —  —  25,535  
Consumer loans15,554  13,926  29,803  (7,170) 468  —  (13,500) 39,081  
$61,914  91,014  79,297  (20,923) 843  10,800  (13,500) 209,445  
Six months ended June 30, 2019
Federally insured loans$42,310  —  4,000  (7,254) —  —  —  39,056  
Private education loans10,838  —  —  (1,070) 389  —  —  10,157  
Consumer loans7,240  —  12,000  (4,658) 296  —  (1,500) 13,378  
$60,388  —  16,000  (12,982) 685  —  (1,500) 62,591  
a) During the three and six months ended June 30, 2020, the Company acquired $292.7 million (par value) and $583.9 million (par value), respectively, of federally insured rehabilitation loans. These loans met the definition of PCD loans when they were purchased by the Company. The Company estimated that the expected credit losses relating to these loans was $6.1 million and $10.8 million, respectively, at the time of purchase. The noncredit discount recorded as part of these acquisitions will be recognized into interest income using an effective yield over the life of the loans.
In March 2020, the rapid outbreak of the respiratory disease caused by a novel strain of coronavirus, coronavirus 2019 or COVID-19 ("COVID-19"), was declared a global pandemic by the World Health Organization and a national emergency by the President, and 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 current and forecasted economic conditions.
The Company's provision expense for the three months ended June 30, 2020 was also impacted by the Company's estimate of certain improved economic conditions as of June 30, 2020 than what was used by the Company to determine the allowance for loan losses as of March 31, 2020. These improved economic conditions were partially offset by the Company extending its reversion period (to the Company's actual long-term historical loss experience) as of June 30, 2020, as the Company currently believes the economy will take longer to recover from the COVID-19 pandemic than what was originally estimated as of March 31, 2020.
The Company's total allowance for loan losses of $209.4 million at June 30, 2020 represents reserves equal to 0.7% of the Company's federally insured loans (or 29.1% of the risk sharing component of the loans that is not covered by the federal guaranty), 8.7% of the Company's private education loans, and 26.2% of the Company's consumer loans.
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 June 30, 2020As of December 31, 2019As of June 30, 2019
Federally insured loans:
    
Loans in-school/grace/deferment $936,746  4.8 % $1,074,678  5.3 % $1,222,021  5.8 %
Loans in forbearance 5,370,466  27.7   1,339,821  6.6   1,420,120  6.7  
Loans in repayment status:  
Loans current12,984,175  99.3 %15,410,993  86.0 %16,055,368  86.7 %
Loans delinquent 31-60 days2,057  —  650,796  3.6  677,113  3.7  
Loans delinquent 61-90 days165  —  428,879  2.4  443,988  2.4  
Loans delinquent 91-120 days23  —  310,851  1.7  269,688  1.5  
Loans delinquent 121-270 days
101  —  812,107  4.5  755,093  4.1  
Loans delinquent 271 days or greater
94,138  0.7  300,418  1.8  310,741  1.6  
Total loans in repayment13,080,659  67.5  100.0 %17,914,044  88.1  100.0 %18,511,991  87.5  100.0 %
Total federally insured loans19,387,871  100.0 % 20,328,543  100.0 % 21,154,132  100.0 %
Accrued interest receivable853,473  730,059  720,887  
Loan discount, net of unamortized premiums and deferred origination costs(19,116) (35,822) (38,808) 
Non-accretable discount (a)—  (28,036) (28,527) 
Allowance for loan losses(144,829) (36,763) (39,056) 
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$20,077,399  $20,957,981  $21,768,628  
Private education loans:
Loans in-school/grace/deferment $3,971  1.3 %$4,493  1.8 %$3,912  2.0 %
Loans in forbearance 21,890  7.5  3,108  1.3  1,143  0.6  
Loans in repayment status:
Loans current265,720  99.4 %227,013  95.9 %183,414  94.7 %
Loans delinquent 31-60 days680  0.2  2,814  1.2  3,491  1.8  
Loans delinquent 61-90 days244  0.1  1,694  0.7  1,658  0.9  
Loans delinquent 91 days or greater713  0.3  5,136  2.2  5,134  2.6  
Total loans in repayment267,357  91.2  100.0 %236,657  96.9  100.0 %193,697  97.4  100.0 %
Total private education loans293,218  100.0 % 244,258  100.0 % 198,752  100.0 %
Accrued interest receivable1,961  1,558  1,113  
Loan premium, net of unaccreted discount813  46  (880) 
Non-accretable discount (a)—  (4,362) (5,008) 
Allowance for loan losses(25,535) (9,597) (10,157) 
Total private education loans and accrued interest receivable, net of allowance for loan losses$270,457  $231,903  $183,820  
Consumer loans:
Loans in deferment$3,274  2.2 %$—  $—  
Loans in repayment status:
Loans current142,540  97.6 %220,404  97.5 %234,944  98.8 %
Loans delinquent 31-60 days938  0.7  2,046  0.9  1,254  0.5  
Loans delinquent 61-90 days1,078  0.7  1,545  0.7  824  0.3  
Loans delinquent 91 days or greater1,478  1.0  1,923  0.9  930  0.4  
Total loans in repayment146,034  97.8  100.0 %225,918  100.0 %237,952  100.0 %
Total consumer loans149,308  100.0 %225,918  237,952  
Accrued interest receivable1,446  1,880  1,846  
Loan premium1,344  740  736  
Allowance for loan losses(39,081) (15,554) (13,378) 
Total consumer loans and accrued interest receivable, net of allowance for loan losses$113,017  $212,984  $227,156  
(a) Upon adoption of ASC 326 on January 1, 2020, the Company reclassified the non-accretable discount balance related to loans purchased with evidence of credit deterioration to allowance for loan losses.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was signed into law. The CARES Act, among other things, provides broad relief, effective March 13, 2020 through September 30, 2020, for borrowers that have student loans owned by the Department of Education (the "Department"). This relief package excluded Federal Family Education Loan Program ("FFELP" or "FFEL Program"), private education, and consumer loans. Although the Company's loans are excluded from the provisions of the CARES Act, the Company is providing relief for its borrowers.
For the Company's federally insured and private education loans, effective March 13, 2020 through June 30, 2020, the Company proactively applied a 90 day natural disaster forbearance to any loan that was 31-269 days past due (for federally insured loans) and 80 days past due (for private education loans), and to any current loan upon request. Beginning July 1, 2020, the Company discontinued proactively applying 90 day natural disaster forbearances on past due loans. However, the Company will continue to apply a natural disaster forbearance with an end date of September 30, 2020, to any federally insured and private education loan upon request.
In addition, for private education loans, effective March 13, 2020 through September 30, 2020, the Company is delaying final demand letters and default activity, while replacing collection calls with borrower outreach on relief options. For both federally insured and private education loans, effective March 13, 2020 through September 30, 2020, borrower late fees are being waived and borrower payments made after March 13, 2020 are refunded upon a borrower's request.
For the majority of the Company's consumer loans, borrowers are generally being offered, upon request and/or documented evidence of financial distress, a two-month deferral of payments, with an option of additional deferrals if the COVID-19 pandemic continues. In addition, effective March 13, 2020 through September 30, 2020, the majority of fees (non-sufficient funds, late charges, check fees) and credit bureau reporting are currently suspended. The specific relief terms on the Company's consumer loan portfolio vary depending on the loan program and servicer of such loans.
The Company will continue to review whether additional and/or extended borrower relief policies and activities are needed.
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, 2019 and June 30, 2020, 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 June 30, 2020 based on year of origination. Effective July 1, 2010, no new loan originations can be made under the FFEL Program 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.
Six months ended June 30, 20202019201820172016Prior YearsTotal
Private education loans:
Loans in school/grace/deferment$—  386  —  —  405  3,180  3,971  
Loans in forbearance—  6,947  169  —  641  14,133  21,890  
Loans in repayment status:
Loans current32,868  90,929  1,021  —  5,638  135,264  265,720  
Loans delinquent 31-60 days—  59  —  —  —  621  680  
Loans delinquent 61-90 days—  —  —  —  —  244  244  
Loans delinquent 91 days or greater—  —  —  —  —  713  713  
Total loans in repayment32,868  90,988  1,021  —  5,638  136,842  267,357  
Total private education loans$32,868  98,321  1,190  —  6,684  154,155  293,218  
Accrued interest receivable1,961  
Loan premium, net of unaccreted discount813  
Allowance for loan losses(25,535) 
Total private education loans and accrued interest receivable, net of allowance for loan losses$270,457  
Consumer loans:
Loans in deferment$—  1,352  1,893  29  —  —  3,274  
Loans in repayment status:
Loans current76,002  29,953  31,955  4,630  —  —  142,540  
Loans delinquent 31-60 days349  348  178  63  —  —  938  
Loans delinquent 61-90 days289  447  297  45  —  —  1,078  
Loans delinquent 91 days or greater211  652  586  29  —  —  1,478  
Total loans in repayment76,851  31,400  33,016  4,767  —  —  146,034  
Total consumer loans$76,851  32,752  34,909  4,796  —  —  149,308  
Accrued interest receivable1,446  
Loan premium1,344  
Allowance for loan losses(39,081) 
Total consumer loans and accrued interest receivable, net of allowance for loan losses$113,017  
v3.20.2
Bonds and Notes Payable
6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Bonds and Notes Payable Bonds and Notes Payable
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 As of June 30, 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$17,838,950  
0.39% - 2.08%
5/27/25 - 3/26/68
Bonds and notes based on auction757,925  
0.36% - 2.69%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes18,596,875  
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations
760,063  
1.83% - 3.45%
10/25/67 / 4/25/68
FFELP warehouse facilities201,126  
0.79% / 0.93%
11/22/21 / 2/26/23
Private education loan warehouse facility107,355  0.95%2/13/22
Consumer loan warehouse facility73,571  0.83%4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations
59,811  
1.65% / 1.93%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
42,942  
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit30,000  1.69%12/16/24
Unsecured debt - Junior Subordinated Hybrid Securities20,381  3.55%9/15/61
Other borrowings91,702  
0.86% / 1.93%
5/4/21 / 5/30/22
 19,983,826    
Discount on bonds and notes payable and debt issuance costs(257,668) 
Total$19,726,158  

 As of December 31, 2019
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$18,428,998  
1.98% - 3.61%
5/27/25 - 1/25/68
Bonds and notes based on auction768,626  
2.75% - 3.60%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes19,197,624  
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations
512,836  
2.00% - 3.45%
10/25/67 / 11/25/67
FFELP warehouse facilities778,094  
1.98% / 2.07%
5/20/21 / 5/31/22
Consumer loan warehouse facility116,570  1.99%4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations
73,308  
3.15% / 3.54%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
49,367  
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit50,000  3.29%12/16/24
Unsecured debt - Junior Subordinated Hybrid Securities20,381  5.28%9/15/61
Other borrowings5,000  3.44%5/30/22
 20,803,180    
Discount on bonds and notes payable and debt issuance costs(274,126) 
Total$20,529,054  
FFELP Warehouse Facilities
The Company funds the majority of its FFELP loan acquisitions using its FFELP warehouse facilities. Student loan warehousing allows the Company to buy and manage student loans prior to transferring them into more permanent financing arrangements.
As of June 30, 2020, the Company had two FFELP warehouse facilities as summarized below.
NFSLW-I (a)NHELP-II (b)Total
Maximum financing amount
$300,000  250,000  550,000  
Amount outstanding102,387  98,739  201,126  
Amount available$197,613  151,261  348,874  
Expiration of liquidity provisions
November 20, 2020February 26, 2021
Final maturity dateNovember 22, 2021February 26, 2023
Advanced as equity support$7,346  8,683  16,029  
(a) On May 20, 2020, the Company decreased the maximum financing amount for this warehouse facility to $300 million, extended the expiration of liquidity provisions to November 20, 2020, and extended the maturity date to November 22, 2021.
(b) On May 29, 2020, the Company decreased the maximum financing amount for this warehouse facility to $250 million, extended the expiration of liquidity provisions to February 26, 2021, and extended the maturity date to February 26, 2023.
Asset-Backed Securitizations
The following table summarizes the asset-backed securitization transactions completed during the first six months of 2020.
2020-12020-22020-3Total
Date securities issued2/20/203/11/203/19/20
Total original principal amount$435,600  272,100  352,600  1,060,300  
Class A senior notes:
Total principal amount$424,600  264,300  343,600  1,032,500  
Bond discount—  (44) (1,503) (1,547) 
Issue price$424,600  264,256  342,097  1,030,953  
Cost of funds
1-month LIBOR plus 0.74%
1.83%
1-month LIBOR plus 0.92%
Final maturity date3/26/684/25/683/26/68
Class B subordinated notes:
Total principal amount$11,000  7,800  9,000  27,800  
Bond discount—  (574) (284) (858) 
Issue price$11,000  7,226  8,716  26,942  
Cost of funds
1-month LIBOR plus 1.75%
2.50%
1-month LIBOR plus 1.90%
Final maturity date3/26/684/25/683/26/68
Private Education Loan Warehouse Facility
On February 13, 2020, the Company closed on a private education loan warehouse facility with an aggregate maximum financing amount available of $100.0 million. On March 20, 2020, the facility was amended to increase the maximum financing amount to $200.0 million. The facility has an advance rate of 80 to 90 percent, liquidity provisions through February 13, 2021, and a final maturity date of February 13, 2022. As of June 30, 2020, $107.4 million was outstanding under this warehouse facility and $92.6 million was available for future funding. Additionally, as of June 30, 2020, the Company had $12.4 million advanced as equity support under this facility.
Consumer Loan Warehouse Facility
The Company has a consumer loan warehouse facility that has an aggregate maximum financing amount available of $200.0 million, an advance rate of 70 or 75 percent depending on the type of collateral and subject to certain concentration limits, liquidity provisions to April 23, 2021, and a final maturity date of April 23, 2022. As of June 30, 2020, $73.6 million was outstanding under this warehouse facility and $126.4 million was available for future funding. Additionally, as of June 30, 2020, the Company had $24.7 million advanced as equity support under this facility.
Unsecured Line of Credit
The Company has a $455.0 million unsecured line of credit that has a maturity date of December 16, 2024. As of June 30, 2020, $30.0 million was outstanding on the line of credit and $425.0 million was available for future use. The line of credit provides that the Company may increase the aggregate financing commitments, through the existing lenders and/or through new lenders, up to a total of $550.0 million, subject to certain conditions.
Other Borrowings
During the second quarter of 2020, the Company entered into 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 student loan asset-backed securities. As of June 30, 2020, $86.7 million of student 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 student 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 $100.0 million if mutually agreed to by both parties. Student loan asset-backed securities under this agreement have been accounted for by the Company as a secured borrowing.
v3.20.2
Derivative Financial Instruments
6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company uses derivative financial instruments to manage interest rate risk. Derivative instruments used as part of the Company's risk management strategy are further described in note 5 of the notes to consolidated financial statements included in the 2019 Annual Report. A tabular presentation of such derivatives outstanding as of June 30, 2020 and December 31, 2019 is presented below.
Basis Swaps
The following table summarizes the Company’s outstanding basis swaps as of December 31, 2019 and June 30, 2020, in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps").
MaturityNotional amount
As ofAs of
June 30, 2020December 31, 2019
2020$—  1,000,000  
2021250,000  250,000  
20222,000,000  2,000,000  (a)
2023750,000  750,000  
20241,750,000  1,750,000  
20261,150,000  1,150,000  
2027250,000  250,000  
$6,150,000  7,150,000  
(a) $750 million of the notional amount of these derivatives had forward effective start dates in May 2020.
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of June 30, 2020 and December 31, 2019 was one-month LIBOR plus 9.1 basis points and 9.7 basis points, respectively.
Interest Rate Swaps – Floor Income Hedges
The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
As of June 30, 2020As of December 31, 2019
MaturityNotional amountWeighted average fixed rate paid by the Company (a)(d)Notional amountWeighted average fixed rate paid by the Company (a)
2020$—  — %$1,500,000  1.01 %
2021600,000  2.15  600,000  2.15  
2022 (b)500,000  0.94  250,000  1.65  
2023 (c)400,000  1.00  150,000  2.25  
 $1,500,000  1.44 %$2,500,000  1.42 %
(a) For all interest rate derivatives, the Company receives discrete three-month LIBOR.
(b) $250.0 million of the derivatives outstanding at December 31, 2019 and June 30, 2020 have forward effective start dates in June 2021 and $250.0 million of derivatives entered into in May 2020 have forward effective start dates in August 2020.
(c) $250.0 million of derivatives entered into in May 2020 have forward effective start dates in July 2020.
(d) Excluding the derivatives with forward effective start dates, the weighted average fixed rate paid by the Company as of June 30, 2020, on its $750.0 million floor income derivative portfolio was 2.17%.
Interest Rate Caps
In June 2015 and June 2019, the Company paid $2.9 million and $0.3 million, respectively, for interest rate cap contracts to mitigate a rise in interest rates and its impact on earnings related to its student loan portfolio earning a fixed rate. In the event that the one-month LIBOR or three-month LIBOR rate rises above the applicable strike rate, the Company will receive monthly payments related to the spread difference. The following table summarizes these derivative instruments as of June 30, 2020.
Notional AmountStrike rateMaturity date
$125,000  
2.50% (1-month LIBOR)
July 15, 2020
150,000  
4.99% (1-month LIBOR)
July 15, 2020
500,000  
2.25% (3-month LIBOR)
September 25, 2020
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 June 30,Six months ended June 30,
 2020201920202019
Settlements:  
1:3 basis swaps$7,129  807  9,242  3,140  
Interest rate swaps - floor income hedges(1,308) 12,165  816  28,867  
Total settlements - income (expense)5,821  12,972  10,058  32,007  
Change in fair value:  
1:3 basis swaps(2,872)  (1,314) (2,209) 
Interest rate swaps - floor income hedges(1,039) (36,851) (23,199) (63,563) 
Interest rate swap options - floor income hedges—  (88) —  (1,464) 
Interest rate caps—  (125) —  (399) 
Total change in fair value - income (expense)(3,911) (37,060) (24,513) (67,635) 
Derivative market value adjustments and derivative settlements, net - income (expense)
$1,910  (24,088) (14,455) (35,628) 
v3.20.2
Investments
6 Months Ended
Jun. 30, 2020
Investments [Abstract]  
Investments Investments
A summary of the Company's investments follows:
As of June 30, 2020As of December 31, 2019
Amortized costGross unrealized gainsGross unrealized lossesFair valueAmortized costGross unrealized gainsGross unrealized lossesFair value
Investments (at fair value):
Student loan asset-backed and other debt securities - available-for-sale (a)
$137,970  4,571  (316) 142,225  48,790  3,911  —  52,701  
Equity securities27,291  5,345  (2,664) 29,972  9,622  4,561  (1,283) 12,900  
Total investments (at fair value)$165,261  9,916  (2,980) 172,197  58,412  8,472  (1,283) 65,601  
Other Investments (not measured at fair value):
Venture capital and funds:
Measurement alternative
143,224  72,760  
Equity method
14,906  15,379  
Other
539  1,301  
Total venture capital and funds158,669  89,440  
Real estate and solar:
Equity method
55,611  51,721  
Other
856  867  
  Total real estate and solar
56,467  52,588  
Beneficial interest in federally insured loan securitizations (b)32,396  —  
Beneficial interest in consumer loan securitizations, net of allowance for credit losses of $24,837 as of June 30, 2020 (b)
24,676  33,187  
Tax liens and affordable housing5,295  6,283  
Total investments (not measured at fair value)277,503  181,498  
Total investments$449,700  $247,099  
(a) As of June 30, 2020, $86.7 million (par value) of student loan asset-backed securities were subject to participation interests held by Union Bank, as discussed in note 3 under "Other Borrowings."
(b) During 2020, the Company has purchased partial ownership in certain federally insured and consumer loan securitizations. As of the latest remittance reports filed by the various trusts prior to June 30, 2020, the Company's ownership correlates to approximately $545 million and $270 million of federally insured and consumer loans, respectively, included in these securitizations.
Investment in Agile Sports Technologies, Inc. (doing business as "Hudl")
On May 20, 2020, the Company made an additional equity investment of approximately $26 million in Hudl, as one of the participants in an equity raise completed by Hudl. Prior to the additional 2020 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. As a result of Hudl’s equity raise, the Company recognized a $51.0 million (pre-tax) gain during the three months ended June 30, 2020 to adjust its carrying value to reflect the May 20, 2020 transaction value. This gain is included in "other income" on the consolidated statements of income.
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.
Impairment Expense
During the three months ended March 31, 2020, the Company recorded a total of $34.1 million (pre-tax) in impairment charges related to its investments, which included $26.3 million and $7.8 million in impairments related to the Company's beneficial interest in consumer loan securitizations and several of its venture capital investments, respectively. As of March 31, 2020, the Company's estimate of future cash flows from the beneficial interest in consumer loan securitizations was lower than previously anticipated due to the expectation of increased consumer loan defaults within such securitizations due to the distressed economic conditions resulting from the COVID-19 pandemic. The Company measured the allowance for credit losses on the consumer loan beneficial interests by comparing the present value of expected cash flows to the amortized cost basis and recorded an allowance for credit losses of $26.3 million, which represented the amount by which the fair value was less than the amortized cost basis. Additionally, as of March 31, 2020, the Company identified several venture capital investments, a majority of which were accounted for under the measurement alternative, that were also negatively impacted by the distressed economic conditions resulting from the COVID-19 pandemic during the first quarter of 2020, and estimated that the fair value of such investments was significantly reduced from their previous carrying value.
During the three months ended June 30, 2020, the Company recorded a $0.3 million (pre-tax) impairment charge related to a real estate investment. No additional impairment charges were considered necessary by the Company as of June 30, 2020.
v3.20.2
Intangible Assets
6 Months Ended
Jun. 30, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets Intangible Assets
A summary of the Company's intangible assets follows:
Weighted average remaining useful life as of June 30, 2020 (months)
As ofAs of
June 30, 2020December 31, 2019
Amortizable intangible assets, net:  
Customer relationships (net of accumulated amortization of $73,827 and $60,553, respectively)
81$58,626  71,900  
Trade names (net of accumulated amortization of $3,334 and $2,792, respectively)
716,936  7,478  
Computer software (net of accumulated amortization of $4,216 and $3,233, respectively)
81,171  2,154  
Total - amortizable intangible assets, net78$66,733  81,532  
The Company recorded amortization expense on its intangible assets of $7.4 million and $8.3 million during the three months ended June 30, 2020 and 2019, respectively, and $14.8 million and $16.8 million during the six months ended June 30, 2020 and 2019, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of June 30, 2020, the Company estimates it will record amortization expense as follows:
2020 (July 1 - December 31)$16,011  
202119,687  
20226,431  
20236,184  
20245,771  
2025 and thereafter12,649  
 $66,733  
v3.20.2
Goodwill
6 Months Ended
Jun. 30, 2020
Goodwill [Abstract]  
Goodwill Goodwill
The carrying amount of goodwill as of December 31, 2019 and June 30, 2020 by reportable operating segment was as follows:
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset Generation and ManagementCorporate and Other ActivitiesTotal
Goodwill balance$23,639  70,278  21,112  41,883  —  156,912  
v3.20.2
Property and Equipment
6 Months Ended
Jun. 30, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
A summary of the Company's property and equipment follows:
As ofAs of
Useful lifeJune 30, 2020December 31, 2019
Non-communications:
Computer equipment and software
1-5 years
$177,513  160,319  
Building and building improvements
5-48 years
38,883  37,904  
Office furniture and equipment
1-10 years
22,049  21,245  
Leasehold improvements
1-15 years
9,080  9,517  
Transportation equipment
5-10 years
5,032  5,049  
Land1,400  1,400  
Construction in progress21,070  13,738  
275,027  249,172  
Accumulated depreciation - non-communications (162,981) (142,270) 
Non-communications, net property and equipment112,046  106,902  
Communications:
Network plant and fiber
4-15 years
265,189  254,560  
Customer located property
2-4 years
29,976  27,011  
Central office
5-15 years
19,011  17,672  
Transportation equipment
4-10 years
6,895  6,611  
Computer equipment and software
1-5 years
6,064  5,574  
Other
1-39 years
3,737  3,702  
Land
70  70  
Construction in progress
1,620  54  
332,562  315,254  
Accumulated depreciation - communications
(94,565) (73,897) 
Communications, net property and equipment
237,997  241,357  
Total property and equipment, net$350,043  348,259  
The Company recorded depreciation expense on its property and equipment of $22.0 million and $16.2 million during the three months ended June 30, 2020 and 2019, respectively, and $42.3 million and $31.9 million during the six months ended June 30, 2020 and 2019, respectively.
v3.20.2
Earnings per Common Share
6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Earnings per Common Share Earnings per Common Share
Presented below is a summary of the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock.
 Three months ended June 30,
20202019
Common shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotal
Numerator:
Net income attributable to Nelnet, Inc.
$85,243  1,239  86,482  24,292  327  24,619  
Denominator:
Weighted-average common shares outstanding - basic and diluted
38,641,794  561,610  39,203,404  39,518,652  531,413  40,050,065  
Earnings per share - basic and diluted
$2.21  2.21  2.21  0.61  0.61  0.61  
Six months ended June 30,
20202019
Common shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotal
Numerator:
Net income attributable to Nelnet, Inc.
$45,305  645  45,950  65,346  864  66,210  
Denominator:
Weighted-average common shares outstanding - basic and diluted
39,023,624  555,835  39,579,459  39,685,958  524,829  40,210,787  
Earnings per share - basic and diluted
$1.16  1.16  1.16  1.65  1.65  1.65  
v3.20.2
Segment Reporting
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
See note 14 of the notes to consolidated financial statements included in the 2019 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 June 30, 2020
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Corporate and Other ActivitiesEliminationsTotal
Total interest income
$52  420  —  150,583  1,196  (368) 151,883  
Interest expense
28  21  —  84,489  1,078  (368) 85,248  
Net interest income (expense)
24  399  —  66,094  118  —  66,635  
Less provision for loan losses
—  —  —  2,999  —  —  2,999  
Net interest income after provision for loan losses
24  399  —  63,095  118  —  63,636  
Other income/expense:
Loan servicing and systems revenue
111,042  —  —  —  —  —  111,042  
Intersegment revenue
8,537   —  —  —  (8,540) —  
Education technology, services, and payment processing revenue
—  59,304  —  —  —  —  59,304  
Communications revenue
—  —  18,998  —  —  —  18,998  
Gain on sale of loans—  —  —  —  —  —  —  
Other income
1,914  —  392  732  57,089  —  60,127  
Impairment expense—  —  —  —  (332) —  (332) 
Derivative settlements, net
—  —  —  5,821  —  —  5,821  
Derivative market value adjustments, net
—  —  —  (3,911) —  —  (3,911) 
Total other income/expense
121,493  59,307  19,390  2,642  56,757  (8,540) 251,049  
Cost of services:
Cost to provide education technology, services, and payment processing services
—  15,376  —  —  —  —  15,376  
Cost to provide communications services
—  —  5,743  —  —  —  5,743  
Total cost of services
—  15,376  5,743  —  —  —  21,119  
Operating expenses:
Salaries and benefits
68,401  24,522  5,570  421  20,334  —  119,247  
Depreciation and amortization
9,142  2,362  10,824  —  7,065  —  29,393  
Other expenses
13,380  2,326  3,774  4,863  12,710  —  37,052  
Intersegment expenses, net
15,996  3,429  536  9,055  (20,476) (8,540) —  
Total operating expenses
106,919  32,639  20,704  14,339  19,633  (8,540) 185,692  
Income (loss) before income taxes
14,598  11,691  (7,057) 51,398  37,242  —  107,874  
Income tax (expense) benefit
(3,504) (2,806) 1,694  (12,336) (4,312) —  (21,264) 
Net income (loss)
11,094  8,885  (5,363) 39,062  32,930  —  86,610  
  Net income attributable to noncontrolling interests
—  —  —  —  (128) —  (128) 
Net income (loss) attributable to Nelnet, Inc.
$11,094  8,885  (5,363) 39,062  32,802  —  86,482  
Total assets as of June 30, 2020$221,313  351,392  301,741  21,136,268  732,994  (132,500) 22,611,208  
 Three months ended June 30, 2019
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunications
Asset
Generation and
Management
Corporate and Other
Activities
EliminationsTotal
Total interest income
$550  1,659   243,295  2,258  (974) 246,788  
Interest expense
19  11  —  184,035  3,872  (974) 186,963  
Net interest income (expense)
531  1,648   59,260  (1,614) —  59,825  
Less provision for loan losses
—  —  —  9,000  —  —  9,000  
Net interest income after provision for loan losses
531  1,648   50,260  (1,614) —  50,825  
Other income/expense:
Loan servicing and systems revenue
113,985  —  —  —  —  —  113,985  
Intersegment revenue
11,598  —  —  —  —  (11,598) —  
Education technology, services, and payment processing revenue
—  60,342  —  —  —  —  60,342  
Communications revenue
—  —  15,758  —  —  —  15,758  
Gain on sale of loans—  —  —  1,712  —  —  1,712  
Other income
2,277  —  362  3,176  8,624  —  14,440  
Impairment expense—  —  —  —  —  —  —  
Derivative settlements, net
—  —  —  12,972  —  —  12,972  
Derivative market value adjustments, net
—  —  —  (37,060) —  —  (37,060) 
Total other income/expense
127,860  60,342  16,120  (19,200) 8,624  (11,598) 182,149  
Cost of services:
Cost to provide education technology, services, and payment processing services
—  15,871  —  —  —  —  15,871  
Cost to provide communications services
—  —  5,101  —  —  —  5,101  
Total cost of services
—  15,871  5,101  —  —  —  20,972  
Operating expenses:
Salaries and benefits
66,496  22,823  5,192  382  16,321  —  111,214  
Depreciation and amortization
8,799  3,324  7,737  —  4,623  —  24,484  
Other expenses
17,118  5,805  3,865  6,207  12,423  —  45,417  
Intersegment expenses, net
13,604  3,148  716  11,665  (17,535) (11,598) —  
Total operating expenses
106,017  35,100  17,510  18,254  15,832  (11,598) 181,115  
Income (loss) before income taxes
22,374  11,019  (6,490) 12,806  (8,822) —  30,887  
Income tax (expense) benefit
(5,370) (2,645) 1,558  (3,074) 3,321  —  (6,209) 
Net income (loss)
17,004  8,374  (4,932) 9,732  (5,501) —  24,678  
  Net income attributable to noncontrolling interests
—  —  —  —  (59) —  (59) 
Net income (loss) attributable to Nelnet, Inc.
$17,004  8,374  (4,932) 9,732  (5,560) —  24,619  
Total assets as of June 30, 2019$267,611  336,896  302,873  22,907,234  595,623  (190,437) 24,219,800  
Six months ended June 30, 2020
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Corporate and Other ActivitiesEliminationsTotal
Total interest income
$369  2,411  —  336,509  2,751  (967) 341,074  
Interest expense
73  38  —  217,737  2,485  (967) 219,366  
Net interest income (expense)
296  2,373  —  118,772  266  —  121,708  
Less provision for loan losses
—  —  —  79,297  —  —  79,297  
Net interest income after provision for loan losses
296  2,373  —  39,475  266  —  42,411  
Other income/expense:
Loan servicing and systems revenue
223,778  —  —  —  —  —  223,778  
Intersegment revenue
19,591  14  —  —  —  (19,605) —  
Education technology, services, and payment processing revenue
—  142,979  —  —  —  —  142,979  
Communications revenue
—  —  37,179  —  —  —  37,179  
Gain on sale of loans—  —  —  18,206  —  —  18,206  
Other income
4,544  —  745  3,947  59,172  —  68,408  
Impairment expense—  —  —  (26,303) (8,116) —  (34,419) 
Derivative settlements, net
—  —  —  10,058  —  —  10,058  
Derivative market value adjustments, net
—  —  —  (24,513) —  —  (24,513) 
Total other income/expense
247,913  142,993  37,924  (18,605) 51,056  (19,605) 441,676  
Cost of services:
Cost to provide education technology, services, and payment processing services
—  38,181  —  —  —  —  38,181  
Cost to provide communications services
—  —  11,325  —  —  —  11,325  
Total cost of services
—  38,181  11,325  —  —  —  49,506  
Operating expenses:
Salaries and benefits
138,894  48,218  10,986  863  40,163  —  239,125  
Depreciation and amortization
17,990  4,749  21,330  —  12,972  —  57,041  
Other expenses
30,870  8,418  7,463  8,581  25,108  —  80,439  
Intersegment expenses, net
32,235  6,756  1,160  20,971  (41,517) (19,605) —  
Total operating expenses
219,989  68,141  40,939  30,415  36,726  (19,605) 376,605  
Income (loss) before income taxes
28,220  39,044  (14,340) (9,545) 14,596  —  57,976  
Income tax (expense) benefit
(6,773) (9,371) 3,442  2,291  (720) —  (11,131) 
Net income (loss)
21,447  29,673  (10,898) (7,254) 13,876  —  46,845  
  Net income attributable to noncontrolling interests
—  —  —  —  (895) —  (895) 
Net income (loss) attributable to Nelnet, Inc.
$21,447  29,673  (10,898) (7,254) 12,981  —  45,950  
Total assets as of June 30, 2020$221,313  351,392  301,741  21,136,268  732,994  (132,500) 22,611,208  
Six months ended June 30, 2019
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Corporate and Other ActivitiesEliminationsTotal
Total interest income
$1,047  3,676   490,162  4,310  (1,824) 497,374  
Interest expense
19  19  —  372,834  7,685  (1,824) 378,733  
Net interest income (expense)
1,028  3,657   117,328  (3,375) —  118,641  
Less provision for loan losses
—  —  —  16,000  —  —  16,000  
Net interest income after provision for loan losses
1,028  3,657   101,328  (3,375) —  102,641  
Other income/expense:
Loan servicing and systems revenue
228,883  —  —  —  —  —  228,883  
Intersegment revenue
23,815  —  —  —  —  (23,815) —  
Education technology, services, and payment processing revenue
—  139,502  —  —  —  —  139,502  
Communications revenue
—  —  30,300  —  —  —  30,300  
Gain on sale of loans—  —  —  1,712  —  —  1,712  
Other income
4,350  —  487  6,701  11,969  —  23,507  
Impairment expense—  —  —  —  —  —  —  
Derivative settlements, net
—  —  —  32,007  —  —  32,007  
Derivative market value adjustments, net
—  —  —  (67,635) —  —  (67,635) 
Total other income/expense
257,048  139,502  30,787  (27,215) 11,969  (23,815) 388,276  
Cost of services:
Cost to provide education technology, services, and payment processing services
—  36,930  —  —  —  —  36,930  
Cost to provide communications services
—  —  9,860  —  —  —  9,860  
Total cost of services
—  36,930  9,860  —  —  —  46,790  
Operating expenses:
Salaries and benefits
132,715  45,830  9,929  760  33,038  —  222,272  
Depreciation and amortization
17,671  6,835  15,099  —  9,093  —  48,697  
Other expenses
36,047  11,116  7,342  10,044  24,685  —  89,233  
Intersegment expenses, net
27,362  6,447  1,380  23,952  (35,326) (23,815) —  
Total operating expenses
213,795  70,228  33,750  34,756  31,490  (23,815) 360,202  
Income (loss) before income taxes
44,281  36,001  (12,820) 39,357  (22,896) —  83,925  
Income tax (expense) benefit
(10,628) (8,640) 3,077  (9,446) 8,037  —  (17,600) 
Net income (loss)
33,653  27,361  (9,743) 29,911  (14,859) —  66,325  
  Net income attributable to noncontrolling interests
—  —  —  —  (115) —  (115) 
Net income (loss) attributable to Nelnet, Inc.
$33,653  27,361  (9,743) 29,911  (14,974) —  66,210  
Total assets as of June 30, 2019$267,611  336,896  302,873  22,907,234  595,623  (190,437) 24,219,800  
v3.20.2
Disaggregated Revenue and Deferred Revenue
6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Disaggregated Revenue and Deferred Revenue Disaggregated Revenue and Deferred Revenue
The following tables provide disaggregated revenue by service offering and/or customer type for the Company's fee-based reportable operating segments.
Loan Servicing and Systems
 Three months ended June 30,Six months ended June 30,
 2020201920202019
Government servicing - Nelnet$37,360  40,459  76,010  80,099  
Government servicing - Great Lakes45,213  45,973  91,660  93,050  
Private education and consumer loan servicing8,196  8,985  16,805  18,465  
FFELP servicing4,917  6,424  10,531  13,119  
Software services 10,651  10,021  21,969  19,762  
Outsourced services and other4,705  2,123  6,803  4,388  
Loan servicing and systems revenue$111,042  113,985  223,778  228,883  
Education Technology, Services, and Payment Processing
 Three months ended June 30,Six months ended June 30,
 2020201920202019
Tuition payment plan services$22,947  24,655  54,534  54,829  
Payment processing
21,168  21,311  52,910  50,290  
Education technology and services
14,927  14,096  34,980  33,805  
Other
262  280  555  578  
Education technology, services, and payment processing revenue
$59,304  60,342  142,979  139,502  
Communications
Three months ended June 30,Six months ended June 30,
2020201920202019
Internet$11,930  9,297  23,125  17,726  
Television4,218  4,050  8,440  7,939  
Telephone2,812  2,395  5,502  4,575  
Other38  16  112  60  
Communications revenue$18,998  15,758  37,179  30,300  
Residential revenue$14,209  11,890  27,766  22,955  
Business revenue4,619  3,816  9,091  7,230  
Other170  52  322  115  
Communications revenue$18,998  15,758  37,179  30,300  
Other Income
The following table provides the components of "other income" on the consolidated statements of income:
Three months ended June 30,Six months ended June 30,
2020201920202019
Gain on investments, net of losses$53,151  4,258  49,286  3,831  
Management fee revenue1,914  2,277  4,544  4,350  
Investment advisory services922  731  3,724  1,441  
Borrower late fee income319  3,161  3,506  6,674  
Other3,821  4,013  7,348  7,211  
  Other income$60,127  14,440  68,408  23,507  
Deferred Revenue
Activity in the deferred revenue balance, which is included in "other liabilities" on the consolidated balance sheets, is shown below:
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsCorporate and Other ActivitiesTotal
Three months ended June 30, 2020
Balance, beginning of period$2,195  19,640  3,414  1,640  26,889  
Deferral of revenue800  22,340  10,640  879  34,659  
Recognition of revenue(880) (22,056) (10,326) (843) (34,105) 
Balance, end of period$2,115  19,924  3,728  1,676  27,443  
Three months ended June 30, 2019
Balance, beginning of period$3,947  18,498  2,756  1,552  26,753  
Deferral of revenue764  24,770  8,798  841  35,173  
Recognition of revenue(1,396) (21,779) (8,474) (782) (32,431) 
Balance, end of period$3,315  21,489  3,080  1,611  29,495  
Six months ended June 30, 2020
Balance, beginning of period$2,712  32,074  3,232  1,628  39,646  
Deferral of revenue1,182  37,420  20,567  1,734  60,903  
Recognition of revenue(1,779) (49,570) (20,071) (1,686) (73,106) 
Balance, end of period$2,115  19,924  3,728  1,676  27,443  
Six months ended June 30, 2019
Balance, beginning of period$4,413  30,556  2,551  1,602  39,122  
Deferral of revenue1,880  38,732  17,064  1,577  59,253  
Recognition of revenue(2,978) (47,799) (16,535) (1,568) (68,880) 
Balance, end of period$3,315  21,489  3,080  1,611  29,495  
v3.20.2
Major Customer
6 Months Ended
Jun. 30, 2020
Risks and Uncertainties [Abstract]  
Major Customer Major Customer
Nelnet Servicing, LLC ("Nelnet Servicing"), a subsidiary of the Company, earns loan servicing revenue from a servicing contract with the Department. Revenue earned by Nelnet Servicing related to this contract was $37.4 million and $40.5 million for the three months ended June 30, 2020 and 2019, and $76.0 million and $80.1 million for the six months ended June 30, 2020 and 2019, respectively. In addition, Great Lakes Educational Loan Services, Inc. ("Great Lakes"), which was acquired by the Company on February 7, 2018, also earns loan servicing revenue from a similar servicing contract with the Department. Revenue earned by Great Lakes related to this contract was $45.2 million and $46.0 million for the three months ended June 30, 2020 and 2019, and $91.7 million and $93.1 million for the six months ended June 30, 2020 and 2019, respectively.
Nelnet Servicing and Great Lakes' servicing contracts with the Department previously provided for expiration on June 16, 2019. On November 26, 2019, Nelnet Servicing and Great Lakes each received extensions from the Department on their contracts through December 14, 2020. The most current contract extensions also provide the potential for two additional six-month extensions at the Department's discretion through December 14, 2021.
The Department is conducting a contract procurement process entitled Next Generation Financial Services Environment (“NextGen”) for a new framework for the servicing of all student loans owned by the Department. On January 15, 2019, the Department issued solicitations for three NextGen components:
NextGen Enhanced Processing Solution ("EPS")
NextGen Business Process Operations ("BPO")
NextGen Optimal Processing Solution ("OPS")
On April 1, 2019 and October 4, 2019, the Company responded to the EPS solicitation component. On January 16, 2020, the Department released an amendment to the EPS solicitation component and the Company responded on February 3, 2020. In addition, on August 1, 2019, the Company responded to the BPO solicitation component. On January 10, 2020, the Department released an amendment to the BPO solicitation component and the Company responded on January 30, 2020. The EPS solicitation component was for a transitional technology system and certain processing functions the Department planned to use under NextGen to service the Department's student loan customers for a period of time before eventually moving to OPS in the future. However, on April 3, 2020, the Department cancelled the OPS solicitation component. The BPO solicitation component is for the back office and call center operational functions for servicing the Department's student loan customers.
On March 30, 2020, the Company received a letter from the Department notifying the Company that the Company's proposal in response to the EPS component had been determined to be outside of the competitive range and would receive no further consideration for an award. On April 13, 2020, the Company filed a protest with the Government Accountability Office ("GAO") challenging the Department's decision to cancel the OPS solicitation component without amending the EPS solicitation component. On April 27, 2020, the Company filed a supplemental protest challenging a number of bases for the Department's competitive range exclusion of the Company's proposal from the EPS solicitation component. On July 10, 2020, the Department cancelled the solicitation for the EPS component. In its cancellation description, the Department indicated that it continues to be committed to the goals and vision of NextGen, and that it will be introducing a new solicitation to continue the NextGen strategy in the future. Based on the Department's cancellation of the EPS procurement, on July 14, 2020, the GAO dismissed the Company's protests as moot. The Company fully intends to compete for the servicing system solution as the Department proceeds with their NextGen strategy.
On June 18, 2020, the Company received a letter from the Department notifying the Company that the Company's proposal in response to the BPO solicitation component was determined to be ineligible for award, claiming the Company's response did not meet certain requirements related to small business participation. The Company immediately requested a debriefing regarding the Department's basis for this decision. Prior to providing the Company a debriefing, on June 24, 2020, the Department awarded and signed contracts with five other companies in connection with the BPO solicitation. On July 13, 2020, the Company filed a protest with the GAO challenging on a number of bases the Department's determination that the Company's BPO response did not meet small business participation requirements. In addition, on July 20, 2020, the Company filed a supplemental protest challenging the Department's decision to proceed with awards of contracts for the BPO component, when it cancelled the EPS component and a new EPS solicitation is expected to be released. On July 24, 2020, the Department provided the Company a debriefing regarding the Department's June 18, 2020 decision to eliminate the Company from the BPO competition. On July 28, 2020, the Company filed a second supplemental protest challenging the Department's BPO decision. Under applicable law, contract awards to other parties for the BPO component are subject to a stay of performance until the protests are resolved. A decision by the GAO is due on or before October 22, 2020.
The Company cannot predict the outcome of the current protests regarding the BPO component, or the timing, nature, or ultimate outcome of the Department's NextGen contract procurement process.
v3.20.2
Fair Value
6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis.
 As of June 30, 2020As of December 31, 2019
 Level 1Level 2TotalLevel 1Level 2Total
Assets:   
Investments:
Student loan asset-backed securities -
available-for-sale
$—  142,122  142,122  —  52,597  52,597  
Equity securities —    —   
Equity securities measured at net asset value (a)29,966  12,894  
Debt securities - available-for-sale103  —  103  104  —  104  
Total investments
109  142,122  172,197  110  52,597  65,601  
Total assets$109  142,122  172,197  110  52,597  65,601  
(a) 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 June 30, 2020
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$20,017,543  19,603,993  —  —  20,017,543  
Accrued loan interest receivable856,880  856,880  —  856,880  —  
Cash and cash equivalents67,540  67,540  67,540  —  —  
Investments (at fair value)172,197  172,197  109  142,122  —  
Beneficial interest in loan securitizations57,072  57,072  —  —  57,072  
Restricted cash585,236  585,236  585,236  —  —  
Restricted cash – due to customers268,539  268,539  268,539  —  —  
Financial liabilities:  
Bonds and notes payable19,064,071  19,726,158  —  19,064,071  —  
Accrued interest payable32,760  32,760  —  32,760  —  
Due to customers268,539  268,539  268,539  —  —  

 As of December 31, 2019
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$21,477,630  20,669,371  —  —  21,477,630  
Accrued loan interest receivable733,497  733,497  —  733,497  —  
Cash and cash equivalents133,906  133,906  133,906  —  —  
Investments (at fair value)65,601  65,601  110  52,597  —  
Beneficial interest in loan securitizations33,258  33,187  —  —  33,258  
Restricted cash650,939  650,939  650,939  —  —  
Restricted cash – due to customers437,756  437,756  437,756  —  —  
Financial liabilities:  
Bonds and notes payable20,479,095  20,529,054  —  20,479,095  —  
Accrued interest payable47,285  47,285  —  47,285  —  
Due to customers437,756  437,756  437,756  —  —  
The methodologies for estimating the fair value of financial assets and liabilities are described in note 21 of the notes to consolidated financial statements included in the 2019 Annual Report.
v3.20.2
Basis of Financial Reporting (Policies)
6 Months Ended
Jun. 30, 2020
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 June 30, 2020 and for the three and six months ended June 30, 2020 and 2019 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2019 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results for the year ending December 31, 2020. 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, 2019 (the "2019 Annual Report").
Reclassifications
Certain amounts previously reported have been reclassified to conform to the current period presentation. These reclassifications include:
Reclassifying the line item "accrued interest receivable" on the Company's consolidated balance sheet to "loans and accrued interest receivable" and "investments"; and
Reclassifying "gain on sale of loans" that was previously included in "other income" to a new line item on the Company's consolidated statements of income.
New Accounting Standards
In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments – Credit Losses (“ASC 326”), which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss ("CECL") methodology. Since its original issuance in 2016, the FASB has issued several updates to the original ASU.
The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for financial assets measured at amortized cost at the time the financial asset is originated or acquired, including, for the Company, loans receivable, accounts receivable, and held-to-maturity beneficial interests in loan securitizations. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. For available-for-sale debt securities where fair value is less than amortized cost, credit-related impairment, if any, is recognized through an allowance for credit losses and adjusted each period for changes in credit risk.
On January 1, 2020, the Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 (recognizing estimated credit losses expected to occur over the asset's remaining life) while prior period amounts continue to be reported in accordance with previously applicable GAAP (recognizing estimated credit losses using an incurred loss model); therefore, the comparative information for 2019 is not comparable to the information presented for 2020. Adoption of the new guidance primarily impacted the allowance for loan losses related to the Company's loan portfolio. Upon adoption, the Company recorded an increase to the allowance for loan losses of $91.0 million, which included a reclassification of the non-accretable discount balance and premiums related to loans purchased with evidence of credit deterioration, and decreased retained earnings, net of tax, by $18.9 million. The following table illustrates the impact of the adoption of ASC 326.
Balances at
December 31, 2019
Impact of ASC 326 adoptionBalances at
January 1, 2020
Assets
Loans and accrued interest receivable, net of allowance
Loans receivable$20,798,719  —  20,798,719  
Accrued interest receivable733,497  —  733,497  
Loan discount, net(35,036) 33,790  (1,246) 
Non-accretable discount(32,398) 32,398  —  
Allowance for loan losses(61,914) (91,014) (152,928) 
Loans and accrued interest receivable, net of allowance21,402,868  (24,826) 21,378,042  
Liabilities
Other liabilities (deferred taxes)303,781  (5,958) 297,823  
Equity
Retained earnings2,377,627  (18,868) 2,358,759  

The Company adopted ASC 326 using the prospective transition approach for loans receivable purchased with credit deterioration ("PCD") that were previously classified as purchased credit impaired ("PCI"). In accordance with the standard, the Company did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the unamortized cost basis of the PCD assets were adjusted to reflect the addition of $32.4 million in the allowance for loan losses (as reflected in the table above). The remaining noncredit premium on these loans as of January 1, 2020 (based on the adjusted amortized cost basis) will be amortized into interest income over the life of the loans. Changes to the allowance for loan losses on these loans after adoption are recorded through provision expense.
Summary of Significant Accounting Policies Affected by Implementation of ASC 326
Allowance for Loan Losses
The allowance for loan losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans as of the balance sheet date. Such allowance is based on the credit losses expected to arise over the life of the asset which includes consideration of prepayments. Loans are charged off when management determines the loan is uncollectible. Charge-offs are recognized as a reduction to the allowance for loan losses. Expected recoveries of amounts previously charged off, not to exceed the aggregate of the amount previously charged off, are included in the estimate of the allowance for loan losses at the balance sheet date.
The Company aggregates loans with similar risk characteristics into homogeneous pools to estimate its expected credit losses. The Company continuously evaluates such pooling decisions and adjusts as needed from period to period as risk characteristics change.
The Company determines its estimated credit losses for the following financial assets as follows:
Loans receivable
Management has determined that the federally insured, private education, and consumer loan portfolios each meet the definition of a portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for loan losses. Accordingly, the portfolio segment disclosures are presented on this basis in note 2 for each of these portfolios. The Company does not disaggregate its portfolio segment loan portfolios into classes of financing receivables.
The Company utilizes an undiscounted cash flow methodology in determining its lifetime expected credit losses on its federally insured and private education loan portfolios and a remaining life methodology for its consumer loan portfolio. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The Company has determined that, for modeling current expected credit losses, in general, the Company can reasonably estimate expected losses that incorporate current and forecasted economic conditions up to a one-year period. After this "reasonable and supportable" period, the Company uses a reversion period to the Company's actual long-term historical loss experience over a full economic life cycle. Historical credit loss experience provides
the basis for the estimation of expected credit losses. Qualitative and quantitative adjustments to historical loss information are made separately on each of the Company’s federally insured, private education, and consumer loan portfolios.
Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider all of the following for the Company’s federally insured loan portfolio: loans in repayment versus those in nonpaying status; delinquency status; trends in defaults in the portfolio based on Company and industry data; past experience; trends in student loan claims rejected for payment by guarantors; changes in federal student loan programs; current economic conditions, including changes in unemployment rates; and other relevant qualitative factors. The federal government guarantees 97 percent of the principal of and the interest on federally insured student loans disbursed on and after July 1, 2006 (and 98 percent for those loans disbursed on and after October 1, 1993 and prior to July 1, 2006), which limits the Company’s loss exposure on the outstanding balance of the Company’s federally insured portfolio. Student loans disbursed prior to October 1, 1993 are fully insured.
Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider all of the following for the Company’s private education loans: loans in repayment versus those in a nonpaying status; delinquency status; type of program; trends in defaults in the portfolio based on Company and industry data; past experience; current economic conditions, including changes in unemployment rates and gross domestic product growth; and other relevant qualitative factors. The Company places private education loans on nonaccrual status when the collection of principal and interest is 90 days past due and charges off the loan when the collection of principal and interest is 120 days past due. Collections, if any, are reflected as a recovery through the allowance for loan losses.
Qualitative and quantitative adjustments related to current conditions and a reasonable and supportable forecast period consider all of the following for the Company's consumer loans: delinquency status; type of program; trends in defaults in the portfolio based on Company and industry data; past experience; current economic conditions; and other relevant qualitative factors. The Company places consumer loans on nonaccrual status when the collection of principal and interest is 90 days past due and charges off the loan when the collection of principal and interest is 120 days or 180 days past due, depending on type of loan program. Collections, if any, are reflected as a recovery through the allowance for loan losses.
Purchased Loans Receivable with Credit Deterioration (“PCD”)
The Company has purchased federally insured rehabilitation loans that have experienced more than insignificant credit deterioration since origination. Rehabilitation loans are loans that have previously defaulted, but for which the borrower has made a specified number of on-time payments. Although rehabilitation loans benefit from the same guarantees as other federally insured loans, rehabilitation loans have generally experienced redefault rates that are higher than default rates for federally insured loans that have not previously defaulted. These PCD loans are recorded at the amount paid. An allowance for loan losses is determined using the same methodology as for other loans held for investment. The sum of the loans’ purchase price and allowance for loan losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized or accreted into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision expense.
Loan Accrued Interest Receivable
The Company has elected to present its loan accrued interest receivable balance combined in its consolidated balance sheets with the loans receivable amortized cost balance.
For the Company’s federally insured loan portfolio, the Company has elected to measure an allowance for credit losses for accrued interest receivables. For federally insured loans, accrued interest receivable is typically charged-off when the contractual payment of principal or interest has become greater than 270 days past due. Charge-offs of accrued interest receivable are recognized as a reduction to the allowance for loan losses.
For the Company’s private education and consumer loan portfolios, the Company has elected not to measure an allowance for credit losses for accrued interest receivables. For private education and consumer loans, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due. Charge-offs of accrued interest receivable are recognized by reversing interest income.
v3.20.2
Basis of Financial Reporting (Tables)
6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Impact on Previous Reporting The following table illustrates the impact of the adoption of ASC 326.
Balances at
December 31, 2019
Impact of ASC 326 adoptionBalances at
January 1, 2020
Assets
Loans and accrued interest receivable, net of allowance
Loans receivable$20,798,719  —  20,798,719  
Accrued interest receivable733,497  —  733,497  
Loan discount, net(35,036) 33,790  (1,246) 
Non-accretable discount(32,398) 32,398  —  
Allowance for loan losses(61,914) (91,014) (152,928) 
Loans and accrued interest receivable, net of allowance21,402,868  (24,826) 21,378,042  
Liabilities
Other liabilities (deferred taxes)303,781  (5,958) 297,823  
Equity
Retained earnings2,377,627  (18,868) 2,358,759  
v3.20.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses (Tables)
6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Loans Receivable
Loans and accrued interest receivable consisted of the following:
As ofAs of
 June 30, 2020December 31, 2019
Federally insured student loans:
Stafford and other$4,439,492  4,684,314  
Consolidation14,948,379  15,644,229  
Total19,387,871  20,328,543  
Private education loans293,218  244,258  
Consumer loans149,308  225,918  
 19,830,397  20,798,719  
Accrued interest receivable856,880  733,497  
Loan discount, net of unamortized loan premiums and deferred origination costs
(16,959) (35,036) 
Non-accretable discount—  (32,398) 
Allowance for loan losses:
Federally insured loans(144,829) (36,763) 
Private education loans(25,535) (9,597) 
Consumer loans(39,081) (15,554) 
 $20,460,873  21,402,868  
Allowance for Loan Losses
The following table presents the activity in the allowance for loan losses by portfolio segment.
Balance at beginning of periodImpact of ASC 326 adoptionProvision for loan lossesCharge-offsRecoveriesInitial allowance on loans purchased with credit deterioration (a)Loan saleBalance at end of period
 Three months ended June 30, 2020
Federally insured loans$146,759  —  (1,950) (6,080) —  6,100  —  144,829  
Private education loans23,056  —  2,322  (26) 183  —  —  25,535  
Consumer loans39,053  —  2,627  (2,820) 221  —  —  39,081  
$208,868  —  2,999  (8,926) 404  6,100  —  209,445  
Three months ended June 30, 2019
Federally insured loans$40,934  —  2,000  (3,878) —  —  —  39,056  
Private education loans10,587  —  —  (588) 158  —  —  10,157  
Consumer loans10,257  —  7,000  (2,652) 273  —  (1,500) 13,378  
$61,778  —  9,000  (7,118) 431  —  (1,500) 62,591  
Six months ended June 30, 2020
Federally insured loans$36,763  72,291  37,373  (12,398) —  10,800  —  144,829  
Private education loans9,597  4,797  12,121  (1,355) 375  —  —  25,535  
Consumer loans15,554  13,926  29,803  (7,170) 468  —  (13,500) 39,081  
$61,914  91,014  79,297  (20,923) 843  10,800  (13,500) 209,445  
Six months ended June 30, 2019
Federally insured loans$42,310  —  4,000  (7,254) —  —  —  39,056  
Private education loans10,838  —  —  (1,070) 389  —  —  10,157  
Consumer loans7,240  —  12,000  (4,658) 296  —  (1,500) 13,378  
$60,388  —  16,000  (12,982) 685  —  (1,500) 62,591  
a) During the three and six months ended June 30, 2020, the Company acquired $292.7 million (par value) and $583.9 million (par value), respectively, of federally insured rehabilitation loans. These loans met the definition of PCD loans when they were purchased by the Company. The Company estimated that the expected credit losses relating to these loans was $6.1 million and $10.8 million, respectively, at the time of purchase. The noncredit discount recorded as part of these acquisitions will be recognized into interest income using an effective yield over the life of the loans.
Loan Status and Delinquencies The table below shows the Company’s loan status and delinquency amounts.
As of June 30, 2020As of December 31, 2019As of June 30, 2019
Federally insured loans:
    
Loans in-school/grace/deferment $936,746  4.8 % $1,074,678  5.3 % $1,222,021  5.8 %
Loans in forbearance 5,370,466  27.7   1,339,821  6.6   1,420,120  6.7  
Loans in repayment status:  
Loans current12,984,175  99.3 %15,410,993  86.0 %16,055,368  86.7 %
Loans delinquent 31-60 days2,057  —  650,796  3.6  677,113  3.7  
Loans delinquent 61-90 days165  —  428,879  2.4  443,988  2.4  
Loans delinquent 91-120 days23  —  310,851  1.7  269,688  1.5  
Loans delinquent 121-270 days
101  —  812,107  4.5  755,093  4.1  
Loans delinquent 271 days or greater
94,138  0.7  300,418  1.8  310,741  1.6  
Total loans in repayment13,080,659  67.5  100.0 %17,914,044  88.1  100.0 %18,511,991  87.5  100.0 %
Total federally insured loans19,387,871  100.0 % 20,328,543  100.0 % 21,154,132  100.0 %
Accrued interest receivable853,473  730,059  720,887  
Loan discount, net of unamortized premiums and deferred origination costs(19,116) (35,822) (38,808) 
Non-accretable discount (a)—  (28,036) (28,527) 
Allowance for loan losses(144,829) (36,763) (39,056) 
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$20,077,399  $20,957,981  $21,768,628  
Private education loans:
Loans in-school/grace/deferment $3,971  1.3 %$4,493  1.8 %$3,912  2.0 %
Loans in forbearance 21,890  7.5  3,108  1.3  1,143  0.6  
Loans in repayment status:
Loans current265,720  99.4 %227,013  95.9 %183,414  94.7 %
Loans delinquent 31-60 days680  0.2  2,814  1.2  3,491  1.8  
Loans delinquent 61-90 days244  0.1  1,694  0.7  1,658  0.9  
Loans delinquent 91 days or greater713  0.3  5,136  2.2  5,134  2.6  
Total loans in repayment267,357  91.2  100.0 %236,657  96.9  100.0 %193,697  97.4  100.0 %
Total private education loans293,218  100.0 % 244,258  100.0 % 198,752  100.0 %
Accrued interest receivable1,961  1,558  1,113  
Loan premium, net of unaccreted discount813  46  (880) 
Non-accretable discount (a)—  (4,362) (5,008) 
Allowance for loan losses(25,535) (9,597) (10,157) 
Total private education loans and accrued interest receivable, net of allowance for loan losses$270,457  $231,903  $183,820  
Consumer loans:
Loans in deferment$3,274  2.2 %$—  $—  
Loans in repayment status:
Loans current142,540  97.6 %220,404  97.5 %234,944  98.8 %
Loans delinquent 31-60 days938  0.7  2,046  0.9  1,254  0.5  
Loans delinquent 61-90 days1,078  0.7  1,545  0.7  824  0.3  
Loans delinquent 91 days or greater1,478  1.0  1,923  0.9  930  0.4  
Total loans in repayment146,034  97.8  100.0 %225,918  100.0 %237,952  100.0 %
Total consumer loans149,308  100.0 %225,918  237,952  
Accrued interest receivable1,446  1,880  1,846  
Loan premium1,344  740  736  
Allowance for loan losses(39,081) (15,554) (13,378) 
Total consumer loans and accrued interest receivable, net of allowance for loan losses$113,017  $212,984  $227,156  
(a) Upon adoption of ASC 326 on January 1, 2020, the Company reclassified the non-accretable discount balance related to loans purchased with evidence of credit deterioration to allowance for loan losses.
Loans by Year of Origination
Six months ended June 30, 20202019201820172016Prior YearsTotal
Private education loans:
Loans in school/grace/deferment$—  386  —  —  405  3,180  3,971  
Loans in forbearance—  6,947  169  —  641  14,133  21,890  
Loans in repayment status:
Loans current32,868  90,929  1,021  —  5,638  135,264  265,720  
Loans delinquent 31-60 days—  59  —  —  —  621  680  
Loans delinquent 61-90 days—  —  —  —  —  244  244  
Loans delinquent 91 days or greater—  —  —  —  —  713  713  
Total loans in repayment32,868  90,988  1,021  —  5,638  136,842  267,357  
Total private education loans$32,868  98,321  1,190  —  6,684  154,155  293,218  
Accrued interest receivable1,961  
Loan premium, net of unaccreted discount813  
Allowance for loan losses(25,535) 
Total private education loans and accrued interest receivable, net of allowance for loan losses$270,457  
Consumer loans:
Loans in deferment$—  1,352  1,893  29  —  —  3,274  
Loans in repayment status:
Loans current76,002  29,953  31,955  4,630  —  —  142,540  
Loans delinquent 31-60 days349  348  178  63  —  —  938  
Loans delinquent 61-90 days289  447  297  45  —  —  1,078  
Loans delinquent 91 days or greater211  652  586  29  —  —  1,478  
Total loans in repayment76,851  31,400  33,016  4,767  —  —  146,034  
Total consumer loans$76,851  32,752  34,909  4,796  —  —  149,308  
Accrued interest receivable1,446  
Loan premium1,344  
Allowance for loan losses(39,081) 
Total consumer loans and accrued interest receivable, net of allowance for loan losses$113,017  
v3.20.2
Bonds and Notes Payable (Tables)
6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Schedule of Debt
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 As of June 30, 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$17,838,950  
0.39% - 2.08%
5/27/25 - 3/26/68
Bonds and notes based on auction757,925  
0.36% - 2.69%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes18,596,875  
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations
760,063  
1.83% - 3.45%
10/25/67 / 4/25/68
FFELP warehouse facilities201,126  
0.79% / 0.93%
11/22/21 / 2/26/23
Private education loan warehouse facility107,355  0.95%2/13/22
Consumer loan warehouse facility73,571  0.83%4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations
59,811  
1.65% / 1.93%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
42,942  
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit30,000  1.69%12/16/24
Unsecured debt - Junior Subordinated Hybrid Securities20,381  3.55%9/15/61
Other borrowings91,702  
0.86% / 1.93%
5/4/21 / 5/30/22
 19,983,826    
Discount on bonds and notes payable and debt issuance costs(257,668) 
Total$19,726,158  

 As of December 31, 2019
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$18,428,998  
1.98% - 3.61%
5/27/25 - 1/25/68
Bonds and notes based on auction768,626  
2.75% - 3.60%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes19,197,624  
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations
512,836  
2.00% - 3.45%
10/25/67 / 11/25/67
FFELP warehouse facilities778,094  
1.98% / 2.07%
5/20/21 / 5/31/22
Consumer loan warehouse facility116,570  1.99%4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations
73,308  
3.15% / 3.54%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
49,367  
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit50,000  3.29%12/16/24
Unsecured debt - Junior Subordinated Hybrid Securities20,381  5.28%9/15/61
Other borrowings5,000  3.44%5/30/22
 20,803,180    
Discount on bonds and notes payable and debt issuance costs(274,126) 
Total$20,529,054  
Schedule of Line of Credit Facilities As of June 30, 2020, the Company had two FFELP warehouse facilities as summarized below.
NFSLW-I (a)NHELP-II (b)Total
Maximum financing amount
$300,000  250,000  550,000  
Amount outstanding102,387  98,739  201,126  
Amount available$197,613  151,261  348,874  
Expiration of liquidity provisions
November 20, 2020February 26, 2021
Final maturity dateNovember 22, 2021February 26, 2023
Advanced as equity support$7,346  8,683  16,029  
(a) On May 20, 2020, the Company decreased the maximum financing amount for this warehouse facility to $300 million, extended the expiration of liquidity provisions to November 20, 2020, and extended the maturity date to November 22, 2021.
(b) On May 29, 2020, the Company decreased the maximum financing amount for this warehouse facility to $250 million, extended the expiration of liquidity provisions to February 26, 2021, and extended the maturity date to February 26, 2023.
Schedule of Asset-Backed Securitization
The following table summarizes the asset-backed securitization transactions completed during the first six months of 2020.
2020-12020-22020-3Total
Date securities issued2/20/203/11/203/19/20
Total original principal amount$435,600  272,100  352,600  1,060,300  
Class A senior notes:
Total principal amount$424,600  264,300  343,600  1,032,500  
Bond discount—  (44) (1,503) (1,547) 
Issue price$424,600  264,256  342,097  1,030,953  
Cost of funds
1-month LIBOR plus 0.74%
1.83%
1-month LIBOR plus 0.92%
Final maturity date3/26/684/25/683/26/68
Class B subordinated notes:
Total principal amount$11,000  7,800  9,000  27,800  
Bond discount—  (574) (284) (858) 
Issue price$11,000  7,226  8,716  26,942  
Cost of funds
1-month LIBOR plus 1.75%
2.50%
1-month LIBOR plus 1.90%
Final maturity date3/26/684/25/683/26/68
v3.20.2
Derivative Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Basis Swap
The following table summarizes the Company’s outstanding basis swaps as of December 31, 2019 and June 30, 2020, in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps").
MaturityNotional amount
As ofAs of
June 30, 2020December 31, 2019
2020$—  1,000,000  
2021250,000  250,000  
20222,000,000  2,000,000  (a)
2023750,000  750,000  
20241,750,000  1,750,000  
20261,150,000  1,150,000  
2027250,000  250,000  
$6,150,000  7,150,000  
(a) $750 million of the notional amount of these derivatives had forward effective start dates in May 2020.
Schedule of Interest Rate Swaps, Floor Income Hedge
The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
As of June 30, 2020As of December 31, 2019
MaturityNotional amountWeighted average fixed rate paid by the Company (a)(d)Notional amountWeighted average fixed rate paid by the Company (a)
2020$—  — %$1,500,000  1.01 %
2021600,000  2.15  600,000  2.15  
2022 (b)500,000  0.94  250,000  1.65  
2023 (c)400,000  1.00  150,000  2.25  
 $1,500,000  1.44 %$2,500,000  1.42 %
(a) For all interest rate derivatives, the Company receives discrete three-month LIBOR.
(b) $250.0 million of the derivatives outstanding at December 31, 2019 and June 30, 2020 have forward effective start dates in June 2021 and $250.0 million of derivatives entered into in May 2020 have forward effective start dates in August 2020.
(c) $250.0 million of derivatives entered into in May 2020 have forward effective start dates in July 2020.
(d) Excluding the derivatives with forward effective start dates, the weighted average fixed rate paid by the Company as of June 30, 2020, on its $750.0 million floor income derivative portfolio was 2.17%.
Schedule of Interest Rate Caps The following table summarizes these derivative instruments as of June 30, 2020.
Notional AmountStrike rateMaturity date
$125,000  
2.50% (1-month LIBOR)
July 15, 2020
150,000  
4.99% (1-month LIBOR)
July 15, 2020
500,000  
2.25% (3-month LIBOR)
September 25, 2020
Schedule of Income Statement Impact
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 June 30,Six months ended June 30,
 2020201920202019
Settlements:  
1:3 basis swaps$7,129  807  9,242  3,140  
Interest rate swaps - floor income hedges(1,308) 12,165  816  28,867  
Total settlements - income (expense)5,821  12,972  10,058  32,007  
Change in fair value:  
1:3 basis swaps(2,872)  (1,314) (2,209) 
Interest rate swaps - floor income hedges(1,039) (36,851) (23,199) (63,563) 
Interest rate swap options - floor income hedges—  (88) —  (1,464) 
Interest rate caps—  (125) —  (399) 
Total change in fair value - income (expense)(3,911) (37,060) (24,513) (67,635) 
Derivative market value adjustments and derivative settlements, net - income (expense)
$1,910  (24,088) (14,455) (35,628) 
v3.20.2
Investments (Tables)
6 Months Ended
Jun. 30, 2020
Investments [Abstract]  
Summary Investment Holdings
A summary of the Company's investments follows:
As of June 30, 2020As of December 31, 2019
Amortized costGross unrealized gainsGross unrealized lossesFair valueAmortized costGross unrealized gainsGross unrealized lossesFair value
Investments (at fair value):
Student loan asset-backed and other debt securities - available-for-sale (a)
$137,970  4,571  (316) 142,225  48,790  3,911  —  52,701  
Equity securities27,291  5,345  (2,664) 29,972  9,622  4,561  (1,283) 12,900  
Total investments (at fair value)$165,261  9,916  (2,980) 172,197  58,412  8,472  (1,283) 65,601  
Other Investments (not measured at fair value):
Venture capital and funds:
Measurement alternative
143,224  72,760  
Equity method
14,906  15,379  
Other
539  1,301  
Total venture capital and funds158,669  89,440  
Real estate and solar:
Equity method
55,611  51,721  
Other
856  867  
  Total real estate and solar
56,467  52,588  
Beneficial interest in federally insured loan securitizations (b)32,396  —  
Beneficial interest in consumer loan securitizations, net of allowance for credit losses of $24,837 as of June 30, 2020 (b)
24,676  33,187  
Tax liens and affordable housing5,295  6,283  
Total investments (not measured at fair value)277,503  181,498  
Total investments$449,700  $247,099  
(a) As of June 30, 2020, $86.7 million (par value) of student loan asset-backed securities were subject to participation interests held by Union Bank, as discussed in note 3 under "Other Borrowings."
(b) During 2020, the Company has purchased partial ownership in certain federally insured and consumer loan securitizations. As of the latest remittance reports filed by the various trusts prior to June 30, 2020, the Company's ownership correlates to approximately $545 million and $270 million of federally insured and consumer loans, respectively, included in these securitizations.
v3.20.2
Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Schedule of Intangible Assets
A summary of the Company's intangible assets follows:
Weighted average remaining useful life as of June 30, 2020 (months)
As ofAs of
June 30, 2020December 31, 2019
Amortizable intangible assets, net:  
Customer relationships (net of accumulated amortization of $73,827 and $60,553, respectively)
81$58,626  71,900  
Trade names (net of accumulated amortization of $3,334 and $2,792, respectively)
716,936  7,478  
Computer software (net of accumulated amortization of $4,216 and $3,233, respectively)
81,171  2,154  
Total - amortizable intangible assets, net78$66,733  81,532  
Schedule of Future Amortization Expense The Company will continue to amortize intangible assets over their remaining useful lives. As of June 30, 2020, the Company estimates it will record amortization expense as follows:
2020 (July 1 - December 31)$16,011  
202119,687  
20226,431  
20236,184  
20245,771  
2025 and thereafter12,649  
 $66,733  
v3.20.2
Goodwill (Tables)
6 Months Ended
Jun. 30, 2020
Goodwill [Abstract]  
Schedule of Goodwill
The carrying amount of goodwill as of December 31, 2019 and June 30, 2020 by reportable operating segment was as follows:
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset Generation and ManagementCorporate and Other ActivitiesTotal
Goodwill balance$23,639  70,278  21,112  41,883  —  156,912  
v3.20.2
Property and Equipment (Tables)
6 Months Ended
Jun. 30, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment
A summary of the Company's property and equipment follows:
As ofAs of
Useful lifeJune 30, 2020December 31, 2019
Non-communications:
Computer equipment and software
1-5 years
$177,513  160,319  
Building and building improvements
5-48 years
38,883  37,904  
Office furniture and equipment
1-10 years
22,049  21,245  
Leasehold improvements
1-15 years
9,080  9,517  
Transportation equipment
5-10 years
5,032  5,049  
Land1,400  1,400  
Construction in progress21,070  13,738  
275,027  249,172  
Accumulated depreciation - non-communications (162,981) (142,270) 
Non-communications, net property and equipment112,046  106,902  
Communications:
Network plant and fiber
4-15 years
265,189  254,560  
Customer located property
2-4 years
29,976  27,011  
Central office
5-15 years
19,011  17,672  
Transportation equipment
4-10 years
6,895  6,611  
Computer equipment and software
1-5 years
6,064  5,574  
Other
1-39 years
3,737  3,702  
Land
70  70  
Construction in progress
1,620  54  
332,562  315,254  
Accumulated depreciation - communications
(94,565) (73,897) 
Communications, net property and equipment
237,997  241,357  
Total property and equipment, net$350,043  348,259  
v3.20.2
Earnings per Common Share (Tables)
6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
Presented below is a summary of the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock.
 Three months ended June 30,
20202019
Common shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotal
Numerator:
Net income attributable to Nelnet, Inc.
$85,243  1,239  86,482  24,292  327  24,619  
Denominator:
Weighted-average common shares outstanding - basic and diluted
38,641,794  561,610  39,203,404  39,518,652  531,413  40,050,065  
Earnings per share - basic and diluted
$2.21  2.21  2.21  0.61  0.61  0.61  
Six months ended June 30,
20202019
Common shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotal
Numerator:
Net income attributable to Nelnet, Inc.
$45,305  645  45,950  65,346  864  66,210  
Denominator:
Weighted-average common shares outstanding - basic and diluted
39,023,624  555,835  39,579,459  39,685,958  524,829  40,210,787  
Earnings per share - basic and diluted
$1.16  1.16  1.16  1.65  1.65  1.65  
v3.20.2
Segment Reporting (Tables)
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.
 Three months ended June 30, 2020
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Corporate and Other ActivitiesEliminationsTotal
Total interest income
$52  420  —  150,583  1,196  (368) 151,883  
Interest expense
28  21  —  84,489  1,078  (368) 85,248  
Net interest income (expense)
24  399  —  66,094  118  —  66,635  
Less provision for loan losses
—  —  —  2,999  —  —  2,999  
Net interest income after provision for loan losses
24  399  —  63,095  118  —  63,636  
Other income/expense:
Loan servicing and systems revenue
111,042  —  —  —  —  —  111,042  
Intersegment revenue
8,537   —  —  —  (8,540) —  
Education technology, services, and payment processing revenue
—  59,304  —  —  —  —  59,304  
Communications revenue
—  —  18,998  —  —  —  18,998  
Gain on sale of loans—  —  —  —  —  —  —  
Other income
1,914  —  392  732  57,089  —  60,127  
Impairment expense—  —  —  —  (332) —  (332) 
Derivative settlements, net
—  —  —  5,821  —  —  5,821  
Derivative market value adjustments, net
—  —  —  (3,911) —  —  (3,911) 
Total other income/expense
121,493  59,307  19,390  2,642  56,757  (8,540) 251,049  
Cost of services:
Cost to provide education technology, services, and payment processing services
—  15,376  —  —  —  —  15,376  
Cost to provide communications services
—  —  5,743  —  —  —  5,743  
Total cost of services
—  15,376  5,743  —  —  —  21,119  
Operating expenses:
Salaries and benefits
68,401  24,522  5,570  421  20,334  —  119,247  
Depreciation and amortization
9,142  2,362  10,824  —  7,065  —  29,393  
Other expenses
13,380  2,326  3,774  4,863  12,710  —  37,052  
Intersegment expenses, net
15,996  3,429  536  9,055  (20,476) (8,540) —  
Total operating expenses
106,919  32,639  20,704  14,339  19,633  (8,540) 185,692  
Income (loss) before income taxes
14,598  11,691  (7,057) 51,398  37,242  —  107,874  
Income tax (expense) benefit
(3,504) (2,806) 1,694  (12,336) (4,312) —  (21,264) 
Net income (loss)
11,094  8,885  (5,363) 39,062  32,930  —  86,610  
  Net income attributable to noncontrolling interests
—  —  —  —  (128) —  (128) 
Net income (loss) attributable to Nelnet, Inc.
$11,094  8,885  (5,363) 39,062  32,802  —  86,482  
Total assets as of June 30, 2020$221,313  351,392  301,741  21,136,268  732,994  (132,500) 22,611,208  
 Three months ended June 30, 2019
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunications
Asset
Generation and
Management
Corporate and Other
Activities
EliminationsTotal
Total interest income
$550  1,659   243,295  2,258  (974) 246,788  
Interest expense
19  11  —  184,035  3,872  (974) 186,963  
Net interest income (expense)
531  1,648   59,260  (1,614) —  59,825  
Less provision for loan losses
—  —  —  9,000  —  —  9,000  
Net interest income after provision for loan losses
531  1,648   50,260  (1,614) —  50,825  
Other income/expense:
Loan servicing and systems revenue
113,985  —  —  —  —  —  113,985  
Intersegment revenue
11,598  —  —  —  —  (11,598) —  
Education technology, services, and payment processing revenue
—  60,342  —  —  —  —  60,342  
Communications revenue
—  —  15,758  —  —  —  15,758  
Gain on sale of loans—  —  —  1,712  —  —  1,712  
Other income
2,277  —  362  3,176  8,624  —  14,440  
Impairment expense—  —  —  —  —  —  —  
Derivative settlements, net
—  —  —  12,972  —  —  12,972  
Derivative market value adjustments, net
—  —  —  (37,060) —  —  (37,060) 
Total other income/expense
127,860  60,342  16,120  (19,200) 8,624  (11,598) 182,149  
Cost of services:
Cost to provide education technology, services, and payment processing services
—  15,871  —  —  —  —  15,871  
Cost to provide communications services
—  —  5,101  —  —  —  5,101  
Total cost of services
—  15,871  5,101  —  —  —  20,972  
Operating expenses:
Salaries and benefits
66,496  22,823  5,192  382  16,321  —  111,214  
Depreciation and amortization
8,799  3,324  7,737  —  4,623  —  24,484  
Other expenses
17,118  5,805  3,865  6,207  12,423  —  45,417  
Intersegment expenses, net
13,604  3,148  716  11,665  (17,535) (11,598) —  
Total operating expenses
106,017  35,100  17,510  18,254  15,832  (11,598) 181,115  
Income (loss) before income taxes
22,374  11,019  (6,490) 12,806  (8,822) —  30,887  
Income tax (expense) benefit
(5,370) (2,645) 1,558  (3,074) 3,321  —  (6,209) 
Net income (loss)
17,004  8,374  (4,932) 9,732  (5,501) —  24,678  
  Net income attributable to noncontrolling interests
—  —  —  —  (59) —  (59) 
Net income (loss) attributable to Nelnet, Inc.
$17,004  8,374  (4,932) 9,732  (5,560) —  24,619  
Total assets as of June 30, 2019$267,611  336,896  302,873  22,907,234  595,623  (190,437) 24,219,800  
Six months ended June 30, 2020
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Corporate and Other ActivitiesEliminationsTotal
Total interest income
$369  2,411  —  336,509  2,751  (967) 341,074  
Interest expense
73  38  —  217,737  2,485  (967) 219,366  
Net interest income (expense)
296  2,373  —  118,772  266  —  121,708  
Less provision for loan losses
—  —  —  79,297  —  —  79,297  
Net interest income after provision for loan losses
296  2,373  —  39,475  266  —  42,411  
Other income/expense:
Loan servicing and systems revenue
223,778  —  —  —  —  —  223,778  
Intersegment revenue
19,591  14  —  —  —  (19,605) —  
Education technology, services, and payment processing revenue
—  142,979  —  —  —  —  142,979  
Communications revenue
—  —  37,179  —  —  —  37,179  
Gain on sale of loans—  —  —  18,206  —  —  18,206  
Other income
4,544  —  745  3,947  59,172  —  68,408  
Impairment expense—  —  —  (26,303) (8,116) —  (34,419) 
Derivative settlements, net
—  —  —  10,058  —  —  10,058  
Derivative market value adjustments, net
—  —  —  (24,513) —  —  (24,513) 
Total other income/expense
247,913  142,993  37,924  (18,605) 51,056  (19,605) 441,676  
Cost of services:
Cost to provide education technology, services, and payment processing services
—  38,181  —  —  —  —  38,181  
Cost to provide communications services
—  —  11,325  —  —  —  11,325  
Total cost of services
—  38,181  11,325  —  —  —  49,506  
Operating expenses:
Salaries and benefits
138,894  48,218  10,986  863  40,163  —  239,125  
Depreciation and amortization
17,990  4,749  21,330  —  12,972  —  57,041  
Other expenses
30,870  8,418  7,463  8,581  25,108  —  80,439  
Intersegment expenses, net
32,235  6,756  1,160  20,971  (41,517) (19,605) —  
Total operating expenses
219,989  68,141  40,939  30,415  36,726  (19,605) 376,605  
Income (loss) before income taxes
28,220  39,044  (14,340) (9,545) 14,596  —  57,976  
Income tax (expense) benefit
(6,773) (9,371) 3,442  2,291  (720) —  (11,131) 
Net income (loss)
21,447  29,673  (10,898) (7,254) 13,876  —  46,845  
  Net income attributable to noncontrolling interests
—  —  —  —  (895) —  (895) 
Net income (loss) attributable to Nelnet, Inc.
$21,447  29,673  (10,898) (7,254) 12,981  —  45,950  
Total assets as of June 30, 2020$221,313  351,392  301,741  21,136,268  732,994  (132,500) 22,611,208  
Six months ended June 30, 2019
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Corporate and Other ActivitiesEliminationsTotal
Total interest income
$1,047  3,676   490,162  4,310  (1,824) 497,374  
Interest expense
19  19  —  372,834  7,685  (1,824) 378,733  
Net interest income (expense)
1,028  3,657   117,328  (3,375) —  118,641  
Less provision for loan losses
—  —  —  16,000  —  —  16,000  
Net interest income after provision for loan losses
1,028  3,657   101,328  (3,375) —  102,641  
Other income/expense:
Loan servicing and systems revenue
228,883  —  —  —  —  —  228,883  
Intersegment revenue
23,815  —  —  —  —  (23,815) —  
Education technology, services, and payment processing revenue
—  139,502  —  —  —  —  139,502  
Communications revenue
—  —  30,300  —  —  —  30,300  
Gain on sale of loans—  —  —  1,712  —  —  1,712  
Other income
4,350  —  487  6,701  11,969  —  23,507  
Impairment expense—  —  —  —  —  —  —  
Derivative settlements, net
—  —  —  32,007  —  —  32,007  
Derivative market value adjustments, net
—  —  —  (67,635) —  —  (67,635) 
Total other income/expense
257,048  139,502  30,787  (27,215) 11,969  (23,815) 388,276  
Cost of services:
Cost to provide education technology, services, and payment processing services
—  36,930  —  —  —  —  36,930  
Cost to provide communications services
—  —  9,860  —  —  —  9,860  
Total cost of services
—  36,930  9,860  —  —  —  46,790  
Operating expenses:
Salaries and benefits
132,715  45,830  9,929  760  33,038  —  222,272  
Depreciation and amortization
17,671  6,835  15,099  —  9,093  —  48,697  
Other expenses
36,047  11,116  7,342  10,044  24,685  —  89,233  
Intersegment expenses, net
27,362  6,447  1,380  23,952  (35,326) (23,815) —  
Total operating expenses
213,795  70,228  33,750  34,756  31,490  (23,815) 360,202  
Income (loss) before income taxes
44,281  36,001  (12,820) 39,357  (22,896) —  83,925  
Income tax (expense) benefit
(10,628) (8,640) 3,077  (9,446) 8,037  —  (17,600) 
Net income (loss)
33,653  27,361  (9,743) 29,911  (14,859) —  66,325  
  Net income attributable to noncontrolling interests
—  —  —  —  (115) —  (115) 
Net income (loss) attributable to Nelnet, Inc.
$33,653  27,361  (9,743) 29,911  (14,974) —  66,210  
Total assets as of June 30, 2019$267,611  336,896  302,873  22,907,234  595,623  (190,437) 24,219,800  
v3.20.2
Disaggregated Revenue and Deferred Revenue (Tables)
6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Loan Servicing and Systems
 Three months ended June 30,Six months ended June 30,
 2020201920202019
Government servicing - Nelnet$37,360  40,459  76,010  80,099  
Government servicing - Great Lakes45,213  45,973  91,660  93,050  
Private education and consumer loan servicing8,196  8,985  16,805  18,465  
FFELP servicing4,917  6,424  10,531  13,119  
Software services 10,651  10,021  21,969  19,762  
Outsourced services and other4,705  2,123  6,803  4,388  
Loan servicing and systems revenue$111,042  113,985  223,778  228,883  
Education Technology, Services, and Payment Processing
 Three months ended June 30,Six months ended June 30,
 2020201920202019
Tuition payment plan services$22,947  24,655  54,534  54,829  
Payment processing
21,168  21,311  52,910  50,290  
Education technology and services
14,927  14,096  34,980  33,805  
Other
262  280  555  578  
Education technology, services, and payment processing revenue
$59,304  60,342  142,979  139,502  
Communications
Three months ended June 30,Six months ended June 30,
2020201920202019
Internet$11,930  9,297  23,125  17,726  
Television4,218  4,050  8,440  7,939  
Telephone2,812  2,395  5,502  4,575  
Other38  16  112  60  
Communications revenue$18,998  15,758  37,179  30,300  
Residential revenue$14,209  11,890  27,766  22,955  
Business revenue4,619  3,816  9,091  7,230  
Other170  52  322  115  
Communications revenue$18,998  15,758  37,179  30,300  
Schedule of Other Income, by Component
The following table provides the components of "other income" on the consolidated statements of income:
Three months ended June 30,Six months ended June 30,
2020201920202019
Gain on investments, net of losses$53,151  4,258  49,286  3,831  
Management fee revenue1,914  2,277  4,544  4,350  
Investment advisory services922  731  3,724  1,441  
Borrower late fee income319  3,161  3,506  6,674  
Other3,821  4,013  7,348  7,211  
  Other income$60,127  14,440  68,408  23,507  
Schedule of Liabilities from Contracts with Customers
Activity in the deferred revenue balance, which is included in "other liabilities" on the consolidated balance sheets, is shown below:
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsCorporate and Other ActivitiesTotal
Three months ended June 30, 2020
Balance, beginning of period$2,195  19,640  3,414  1,640  26,889  
Deferral of revenue800  22,340  10,640  879  34,659  
Recognition of revenue(880) (22,056) (10,326) (843) (34,105) 
Balance, end of period$2,115  19,924  3,728  1,676  27,443  
Three months ended June 30, 2019
Balance, beginning of period$3,947  18,498  2,756  1,552  26,753  
Deferral of revenue764  24,770  8,798  841  35,173  
Recognition of revenue(1,396) (21,779) (8,474) (782) (32,431) 
Balance, end of period$3,315  21,489  3,080  1,611  29,495  
Six months ended June 30, 2020
Balance, beginning of period$2,712  32,074  3,232  1,628  39,646  
Deferral of revenue1,182  37,420  20,567  1,734  60,903  
Recognition of revenue(1,779) (49,570) (20,071) (1,686) (73,106) 
Balance, end of period$2,115  19,924  3,728  1,676  27,443  
Six months ended June 30, 2019
Balance, beginning of period$4,413  30,556  2,551  1,602  39,122  
Deferral of revenue1,880  38,732  17,064  1,577  59,253  
Recognition of revenue(2,978) (47,799) (16,535) (1,568) (68,880) 
Balance, end of period$3,315  21,489  3,080  1,611  29,495  
v3.20.2
Fair Value (Tables)
6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis.
 As of June 30, 2020As of December 31, 2019
 Level 1Level 2TotalLevel 1Level 2Total
Assets:   
Investments:
Student loan asset-backed securities -
available-for-sale
$—  142,122  142,122  —  52,597  52,597  
Equity securities —    —   
Equity securities measured at net asset value (a)29,966  12,894  
Debt securities - available-for-sale103  —  103  104  —  104  
Total investments
109  142,122  172,197  110  52,597  65,601  
Total assets$109  142,122  172,197  110  52,597  65,601  
(a) In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
Fair Value, by Balance Sheet Grouping
The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 As of June 30, 2020
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$20,017,543  19,603,993  —  —  20,017,543  
Accrued loan interest receivable856,880  856,880  —  856,880  —  
Cash and cash equivalents67,540  67,540  67,540  —  —  
Investments (at fair value)172,197  172,197  109  142,122  —  
Beneficial interest in loan securitizations57,072  57,072  —  —  57,072  
Restricted cash585,236  585,236  585,236  —  —  
Restricted cash – due to customers268,539  268,539  268,539  —  —  
Financial liabilities:  
Bonds and notes payable19,064,071  19,726,158  —  19,064,071  —  
Accrued interest payable32,760  32,760  —  32,760  —  
Due to customers268,539  268,539  268,539  —  —  

 As of December 31, 2019
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$21,477,630  20,669,371  —  —  21,477,630  
Accrued loan interest receivable733,497  733,497  —  733,497  —  
Cash and cash equivalents133,906  133,906  133,906  —  —  
Investments (at fair value)65,601  65,601  110  52,597  —  
Beneficial interest in loan securitizations33,258  33,187  —  —  33,258  
Restricted cash650,939  650,939  650,939  —  —  
Restricted cash – due to customers437,756  437,756  437,756  —  —  
Financial liabilities:  
Bonds and notes payable20,479,095  20,529,054  —  20,479,095  —  
Accrued interest payable47,285  47,285  —  47,285  —  
Due to customers437,756  437,756  437,756  —  —  
v3.20.2
Basis of Financial Reporting - Schedule of Adoption Impact (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Loans and accrued interest receivable, net of allowance              
Loans receivable $ 19,830,397     $ 20,798,719      
Accrued interest receivable 856,880     733,497      
Loan discount, net (16,959)     (35,036)      
Non-accretable discount 0     (32,398)      
Allowance for loan losses (209,445) $ (208,868)   (61,914) $ (62,591) $ (61,778) $ (60,388)
Loans and accrued interest receivable, net of allowance 20,460,873     21,402,868      
Liabilities:              
Other liabilities (deferred taxes) 242,965     303,781      
Equity:              
Retained earnings $ 2,331,312     2,377,627      
Accounting Standards Update [Extensible List] us-gaap:AccountingStandardsUpdate201613Member            
Cumulative Effect, Period Of Adoption, Adjustment              
Loans and accrued interest receivable, net of allowance              
Loans receivable     $ 0        
Accrued interest receivable     0        
Loan discount, net     33,790        
Non-accretable discount     32,398        
Allowance for loan losses   $ 0 (91,014) $ (91,014)   $ 0 $ 0
Loans and accrued interest receivable, net of allowance     (24,826)        
Liabilities:              
Other liabilities (deferred taxes)     (5,958)        
Equity:              
Retained earnings     (18,868)        
Cumulative Effect Period Of Adoption Adjusted Balance              
Loans and accrued interest receivable, net of allowance              
Loans receivable     20,798,719        
Accrued interest receivable     733,497        
Loan discount, net     (1,246)        
Non-accretable discount     0        
Allowance for loan losses     (152,928)        
Loans and accrued interest receivable, net of allowance     21,378,042        
Liabilities:              
Other liabilities (deferred taxes)     297,823        
Equity:              
Retained earnings     $ 2,358,759        
v3.20.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loans Receivable (Details) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended
Jan. 30, 2020
Aug. 06, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]                  
Loans receivable, gross       $ 19,830,397   $ 20,798,719      
Accrued interest receivable       856,880   733,497      
Loan discount, net of unamortized loan premiums and deferred origination costs       (16,959)   (35,036)      
Non-accretable discount       0   (32,398)      
Allowance for loan losses       (209,445) $ (208,868) (61,914) $ (62,591) $ (61,778) $ (60,388)
Loans and accrued interest receivable, net of allowance       20,460,873   21,402,868      
Subsequent Event                  
Accounts, Notes, Loans and Financing Receivable [Line Items]                  
Residual interest in consumer loan securitization   25.40%              
Federally insured loans                  
Accounts, Notes, Loans and Financing Receivable [Line Items]                  
Loans receivable, gross       19,387,871   20,328,543 21,154,132    
Accrued interest receivable       853,473   730,059 720,887    
Loan discount, net of unamortized loan premiums and deferred origination costs       (19,116)   (35,822) (38,808)    
Non-accretable discount       0   (28,036) (28,527)    
Allowance for loan losses       (144,829) (146,759) (36,763) (39,056) (40,934) (42,310)
Loans and accrued interest receivable, net of allowance       20,077,399   20,957,981 21,768,628    
Federally insured loans | Stafford and other                  
Accounts, Notes, Loans and Financing Receivable [Line Items]                  
Loans receivable, gross       4,439,492   4,684,314      
Federally insured loans | Consolidation                  
Accounts, Notes, Loans and Financing Receivable [Line Items]                  
Loans receivable, gross       14,948,379   15,644,229      
Private education loans                  
Accounts, Notes, Loans and Financing Receivable [Line Items]                  
Loans receivable, gross       293,218   244,258 198,752    
Accrued interest receivable       1,961   1,558 1,113    
Loan discount, net of unamortized loan premiums and deferred origination costs       813   46 (880)    
Non-accretable discount       0   (4,362) (5,008)    
Allowance for loan losses       (25,535) (23,056) (9,597) (10,157) (10,587) (10,838)
Loans and accrued interest receivable, net of allowance       270,457   231,903 183,820    
Consumer loans                  
Accounts, Notes, Loans and Financing Receivable [Line Items]                  
Loans receivable, gross       149,308   225,918 237,952    
Accrued interest receivable       1,446   1,880 1,846    
Loan discount, net of unamortized loan premiums and deferred origination costs       1,344   740 736    
Allowance for loan losses       (39,081) $ (39,053) (15,554) (13,378) $ (10,257) $ (7,240)
Loans and accrued interest receivable, net of allowance       $ 113,017   $ 212,984 $ 227,156    
Loans sold, par value $ 124,200                
Loans sold, gain $ 18,200                
Loans sold, residual interest received 31.40%                
Consumer loans | Subsequent Event                  
Accounts, Notes, Loans and Financing Receivable [Line Items]                  
Loans sold, par value   $ 60,800              
Consumer loans | Subsequent Event | Forecast                  
Accounts, Notes, Loans and Financing Receivable [Line Items]                  
Loans sold, gain     $ 14,800            
v3.20.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Activity in the Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period $ 208,868 $ 61,778 $ 61,914 $ 60,388
Provision for loan losses 2,999 9,000 79,297 16,000
Charge-offs (8,926) (7,118) (20,923) (12,982)
Recoveries 404 431 843 685
Initial allowance on loans purchased with credit deterioration 6,100 0 10,800 0
Loan sale 0 (1,500) (13,500) (1,500)
Balance at end of period 209,445 62,591 209,445 62,591
Par value of loans purchased with deteriorated credit quality 292,700   583,900  
Loans purchased with deteriorated credit quality, expected credit losses 6,100   $ 10,800  
Accounting Standards Update [Extensible List]     us-gaap:AccountingStandardsUpdate201613Member  
Cumulative Effect, Period Of Adoption, Adjustment        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period 0 0 $ 91,014 0
Federally insured loans        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period 146,759 40,934 36,763 42,310
Provision for loan losses (1,950) 2,000 37,373 4,000
Charge-offs (6,080) (3,878) (12,398) (7,254)
Recoveries 0 0 0 0
Initial allowance on loans purchased with credit deterioration 6,100 0 10,800 0
Loan sale 0 0 0 0
Balance at end of period $ 144,829 39,056 $ 144,829 39,056
Allowance for credit loss, percentage 0.70%   0.70%  
Federally insured loans | Cumulative Effect, Period Of Adoption, Adjustment        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period $ 0 0 $ 72,291 0
Federally insured loans, not covered by federal guaranty        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Allowance for credit loss, percentage 29.10%   29.10%  
Private education loans        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period $ 23,056 10,587 $ 9,597 10,838
Provision for loan losses 2,322 0 12,121 0
Charge-offs (26) (588) (1,355) (1,070)
Recoveries 183 158 375 389
Initial allowance on loans purchased with credit deterioration 0 0 0 0
Loan sale 0 0 0 0
Balance at end of period $ 25,535 10,157 $ 25,535 10,157
Allowance for credit loss, percentage 8.70%   8.70%  
Private education loans | Cumulative Effect, Period Of Adoption, Adjustment        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period $ 0 0 $ 4,797 0
Consumer loans        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period 39,053 10,257 15,554 7,240
Provision for loan losses 2,627 7,000 29,803 12,000
Charge-offs (2,820) (2,652) (7,170) (4,658)
Recoveries 221 273 468 296
Initial allowance on loans purchased with credit deterioration 0 0 0 0
Loan sale 0 (1,500) (13,500) (1,500)
Balance at end of period $ 39,081 13,378 $ 39,081 13,378
Allowance for credit loss, percentage 26.20%   26.20%  
Consumer loans | Cumulative Effect, Period Of Adoption, Adjustment        
Financing Receivable, Allowance for Credit Losses [Roll Forward]        
Balance at beginning of period $ 0 $ 0 $ 13,926 $ 0
v3.20.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loan Status and Delinquency (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Loans in repayment status:            
Loans in repayment, percent 67.50%   88.10% 87.50%    
Total loans $ 19,830,397   $ 20,798,719      
Total loans, percent 100.00%   100.00% 100.00%    
Accrued interest receivable $ 856,880   $ 733,497      
Loan discount, net of unamortized premiums and deferred origination costs (16,959)   (35,036)      
Non-accretable discount 0   (32,398)      
Allowance for loan losses (209,445) $ (208,868) (61,914) $ (62,591) $ (61,778) $ (60,388)
Loans and accrued interest receivable, net of allowance 20,460,873   21,402,868      
Federally insured loans            
Financing Receivable, Recorded Investment [Line Items]            
Loans in-school/grace/deferment $ 936,746   $ 1,074,678 $ 1,222,021    
Loans in-school/grace/deferment, percent 4.80%   5.30% 5.80%    
Loans in forbearance $ 5,370,466   $ 1,339,821 $ 1,420,120    
Loans in forbearance, percent 27.70%   6.60% 6.70%    
Loans in repayment status:            
Loans current $ 12,984,175   $ 15,410,993 $ 16,055,368    
Loans current, percentage 99.30%   86.00% 86.70%    
Total loans in repayment $ 13,080,659   $ 17,914,044 $ 18,511,991    
Total loans in repayment, percentage 100.00%   100.00% 100.00%    
Total loans $ 19,387,871   $ 20,328,543 $ 21,154,132    
Accrued interest receivable 853,473   730,059 720,887    
Loan discount, net of unamortized premiums and deferred origination costs (19,116)   (35,822) (38,808)    
Non-accretable discount 0   (28,036) (28,527)    
Allowance for loan losses (144,829) (146,759) (36,763) (39,056) (40,934) (42,310)
Loans and accrued interest receivable, net of allowance 20,077,399   20,957,981 21,768,628    
Federally insured loans | Loans delinquent 31-60 days            
Loans in repayment status:            
Loans past due $ 2,057   $ 650,796 $ 677,113    
Loans past due, percentage 0.00%   3.60% 3.70%    
Federally insured loans | Loans delinquent 61-90 days            
Loans in repayment status:            
Loans past due $ 165   $ 428,879 $ 443,988    
Loans past due, percentage 0.00%   2.40% 2.40%    
Federally insured loans | Loans delinquent 91-120 days            
Loans in repayment status:            
Loans past due $ 23   $ 310,851 $ 269,688    
Loans past due, percentage 0.00%   1.70% 1.50%    
Federally insured loans | Loans delinquent 121-270 days            
Loans in repayment status:            
Loans past due $ 101   $ 812,107 $ 755,093    
Loans past due, percentage 0.00%   4.50% 4.10%    
Federally insured loans | Loans delinquent 271 days or greater            
Loans in repayment status:            
Loans past due $ 94,138   $ 300,418 $ 310,741    
Loans past due, percentage 0.70%   1.80% 1.60%    
Private education loans            
Financing Receivable, Recorded Investment [Line Items]            
Loans in-school/grace/deferment $ 3,971   $ 4,493 $ 3,912    
Loans in-school/grace/deferment, percent 1.30%   1.80% 2.00%    
Loans in forbearance $ 21,890   $ 3,108 $ 1,143    
Loans in forbearance, percent 7.50%   1.30% 0.60%    
Loans in repayment status:            
Loans current $ 265,720   $ 227,013 $ 183,414    
Loans current, percentage 99.40%   95.90% 94.70%    
Total loans in repayment $ 267,357   $ 236,657 $ 193,697    
Loans in repayment, percent 91.20%   96.90% 97.40%    
Total loans in repayment, percentage 100.00%   100.00% 100.00%    
Total loans $ 293,218   $ 244,258 $ 198,752    
Total loans, percent 100.00%   100.00% 100.00%    
Accrued interest receivable $ 1,961   $ 1,558 $ 1,113    
Loan discount, net of unamortized premiums and deferred origination costs 813   46 (880)    
Non-accretable discount 0   (4,362) (5,008)    
Allowance for loan losses (25,535) (23,056) (9,597) (10,157) (10,587) (10,838)
Loans and accrued interest receivable, net of allowance 270,457   231,903 183,820    
Private education loans | Loans delinquent 31-60 days            
Loans in repayment status:            
Loans past due $ 680   $ 2,814 $ 3,491    
Loans past due, percentage 0.20%   1.20% 1.80%    
Private education loans | Loans delinquent 61-90 days            
Loans in repayment status:            
Loans past due $ 244   $ 1,694 $ 1,658    
Loans past due, percentage 0.10%   0.70% 0.90%    
Private education loans | Loans delinquent 91 days or greater            
Loans in repayment status:            
Loans past due $ 713   $ 5,136 $ 5,134    
Loans past due, percentage 0.30%   2.20% 2.60%    
Consumer loans            
Financing Receivable, Recorded Investment [Line Items]            
Loans in-school/grace/deferment $ 3,274          
Loans in-school/grace/deferment, percent 2.20%          
Loans in repayment status:            
Loans current $ 142,540   $ 220,404 $ 234,944    
Loans current, percentage 97.60%   97.50% 98.80%    
Total loans in repayment $ 146,034   $ 225,918 $ 237,952    
Loans in repayment, percent 97.80%          
Total loans in repayment, percentage 100.00%   100.00% 100.00%    
Total loans $ 149,308   $ 225,918 $ 237,952    
Total loans, percent 100.00%          
Accrued interest receivable $ 1,446   1,880 1,846    
Loan discount, net of unamortized premiums and deferred origination costs 1,344   740 736    
Allowance for loan losses (39,081) $ (39,053) (15,554) (13,378) $ (10,257) $ (7,240)
Loans and accrued interest receivable, net of allowance 113,017   212,984 227,156    
Consumer loans | Loans delinquent 31-60 days            
Loans in repayment status:            
Loans past due $ 938   $ 2,046 $ 1,254    
Loans past due, percentage 0.70%   0.90% 0.50%    
Consumer loans | Loans delinquent 61-90 days            
Loans in repayment status:            
Loans past due $ 1,078   $ 1,545 $ 824    
Loans past due, percentage 0.70%   0.70% 0.30%    
Consumer loans | Loans delinquent 91 days or greater            
Loans in repayment status:            
Loans past due $ 1,478   $ 1,923 $ 930    
Loans past due, percentage 1.00%   0.90% 0.40%    
v3.20.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loans by Year of Origination (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Financing Receivable, Credit Quality Indicator [Line Items]            
Accrued interest receivable $ 856,880   $ 733,497      
Loan discount, net of unamortized loan premiums and deferred origination costs (16,959)   (35,036)      
Allowance for loan losses (209,445) $ (208,868) (61,914) $ (62,591) $ (61,778) $ (60,388)
Loans and accrued interest receivable, net of allowance 20,460,873   21,402,868      
Private education loans            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 32,868          
2019 98,321          
2018 1,190          
2017 0          
2016 6,684          
Prior Years 154,155          
Total loans 293,218          
Accrued interest receivable 1,961   1,558 1,113    
Loan discount, net of unamortized loan premiums and deferred origination costs 813   46 (880)    
Allowance for loan losses (25,535) (23,056) (9,597) (10,157) (10,587) (10,838)
Loans and accrued interest receivable, net of allowance 270,457   231,903 183,820    
Private education loans | Loans in school/grace/deferment            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 0          
2019 386          
2018 0          
2017 0          
2016 405          
Prior Years 3,180          
Total loans 3,971          
Private education loans | Loans in forbearance            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 0          
2019 6,947          
2018 169          
2017 0          
2016 641          
Prior Years 14,133          
Total loans 21,890          
Private education loans | Loans in repayment            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 32,868          
2019 90,988          
2018 1,021          
2017 0          
2016 5,638          
Prior Years 136,842          
Total loans 267,357          
Private education loans | Loans in repayment | Loans current            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 32,868          
2019 90,929          
2018 1,021          
2017 0          
2016 5,638          
Prior Years 135,264          
Total loans 265,720          
Private education loans | Loans in repayment | Loans delinquent 31-60 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 0          
2019 59          
2018 0          
2017 0          
2016 0          
Prior Years 621          
Total loans 680          
Private education loans | Loans in repayment | Loans delinquent 61-90 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 0          
2019 0          
2018 0          
2017 0          
2016 0          
Prior Years 244          
Total loans 244          
Private education loans | Loans in repayment | Loans delinquent 91 days or greater            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 0          
2019 0          
2018 0          
2017 0          
2016 0          
Prior Years 713          
Total loans 713          
Consumer loans            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 76,851          
2019 32,752          
2018 34,909          
2017 4,796          
2016 0          
Prior Years 0          
Total loans 149,308          
Accrued interest receivable 1,446   1,880 1,846    
Loan discount, net of unamortized loan premiums and deferred origination costs 1,344   740 736    
Allowance for loan losses (39,081) $ (39,053) (15,554) (13,378) $ (10,257) $ (7,240)
Loans and accrued interest receivable, net of allowance 113,017   $ 212,984 $ 227,156    
Consumer loans | Loans in school/grace/deferment | Loans current            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 0          
2019 1,352          
2018 1,893          
2017 29          
2016 0          
Prior Years 0          
Total loans 3,274          
Consumer loans | Loans in repayment            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 76,851          
2019 31,400          
2018 33,016          
2017 4,767          
2016 0          
Prior Years 0          
Total loans 146,034          
Consumer loans | Loans in repayment | Loans current            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 76,002          
2019 29,953          
2018 31,955          
2017 4,630          
2016 0          
Prior Years 0          
Total loans 142,540          
Consumer loans | Loans in repayment | Loans delinquent 31-60 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 349          
2019 348          
2018 178          
2017 63          
2016 0          
Prior Years 0          
Total loans 938          
Consumer loans | Loans in repayment | Loans delinquent 61-90 days            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 289          
2019 447          
2018 297          
2017 45          
2016 0          
Prior Years 0          
Total loans 1,078          
Consumer loans | Loans in repayment | Loans delinquent 91 days or greater            
Financing Receivable, Credit Quality Indicator [Line Items]            
Six months ended June 30, 2020 211          
2019 652          
2018 586          
2017 29          
2016 0          
Prior Years 0          
Total loans $ 1,478          
v3.20.2
Bonds and Notes Payable - Outstanding Debt Obligations (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 19,983,826 $ 20,803,180
Discount on bonds and notes payable and debt issuance costs (257,668) (274,126)
Bonds and notes payable, net 19,726,158 20,529,054
Unsecured line of credit    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 30,000 $ 50,000
Interest rate 1.69% 3.29%
Unsecured debt - Junior Subordinated Hybrid Securities    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 20,381 $ 20,381
Interest rate 3.55% 5.28%
Other borrowings    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 91,702 $ 5,000
Interest rate   3.44%
Federally insured | Bonds and notes based on indices    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 17,838,950 $ 18,428,998
Federally insured | Bonds and notes based on auction    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 757,925 768,626
Federally insured | Variable-rate bonds and notes    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 18,596,875 19,197,624
Federally insured | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 760,063 512,836
Federally insured | Warehouse facilities    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 201,126 778,094
Private education | Variable-rate bonds and notes    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 59,811 73,308
Private education | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 42,942 49,367
Private education | Warehouse facilities    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 107,355  
Interest rate 0.95%  
Consumer loan | Warehouse facilities    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 73,571 $ 116,570
Interest rate 0.83% 1.99%
Minimum | Other borrowings    
Debt Instrument [Line Items]    
Interest rate 0.86%  
Minimum | Federally insured | Bonds and notes based on indices    
Debt Instrument [Line Items]    
Interest rate 0.39% 1.98%
Minimum | Federally insured | Bonds and notes based on auction    
Debt Instrument [Line Items]    
Interest rate 0.36% 2.75%
Minimum | Federally insured | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 1.83% 2.00%
Minimum | Federally insured | Warehouse facilities    
Debt Instrument [Line Items]    
Interest rate 0.79% 1.98%
Minimum | Private education | Variable-rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 1.65% 3.15%
Minimum | Private education | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 3.60% 3.60%
Maximum | Other borrowings    
Debt Instrument [Line Items]    
Interest rate 1.93%  
Maximum | Federally insured | Bonds and notes based on indices    
Debt Instrument [Line Items]    
Interest rate 2.08% 3.61%
Maximum | Federally insured | Bonds and notes based on auction    
Debt Instrument [Line Items]    
Interest rate 2.69% 3.60%
Maximum | Federally insured | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 3.45% 3.45%
Maximum | Federally insured | Warehouse facilities    
Debt Instrument [Line Items]    
Interest rate 0.93% 2.07%
Maximum | Private education | Variable-rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 1.93% 3.54%
Maximum | Private education | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 5.35% 5.35%
v3.20.2
Bonds and Notes Payable - Outstanding Lines of Credit (Details) - Warehouse facilities - Federally insured student loans
Jun. 30, 2020
USD ($)
Line of Credit Facility [Line Items]  
Maximum financing amount $ 550,000,000
Amount outstanding 201,126,000
Amount available 348,874,000
Advanced as equity support 16,029,000
NFSLW-I (a)  
Line of Credit Facility [Line Items]  
Maximum financing amount 300,000,000
Amount outstanding 102,387,000
Amount available 197,613,000
Advanced as equity support 7,346,000
NHELP-II (b)  
Line of Credit Facility [Line Items]  
Maximum financing amount 250,000,000
Amount outstanding 98,739,000
Amount available 151,261,000
Advanced as equity support $ 8,683,000
v3.20.2
Bonds and Notes Payable - Schedule of Asset-Backed Securitizations (Details) - USD ($)
6 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Debt Instrument [Line Items]    
Bonds and notes payable, net $ 19,726,158,000 $ 20,529,054,000
Asset-Backed Securitizations | 2020-1 Notes    
Debt Instrument [Line Items]    
Total principal amount 435,600,000  
Asset-Backed Securitizations | 2020-2 Notes    
Debt Instrument [Line Items]    
Total principal amount 272,100,000  
Asset-Backed Securitizations | 2020-3 Notes    
Debt Instrument [Line Items]    
Total principal amount 352,600,000  
Asset-Backed Securitizations | 2020 Notes    
Debt Instrument [Line Items]    
Total principal amount 1,060,300,000  
Senior Notes | Class A 2020-1 Notes    
Debt Instrument [Line Items]    
Total principal amount 424,600,000  
Bond discount 0  
Bonds and notes payable, net $ 424,600,000  
Senior Notes | Class A 2020-1 Notes | London Interbank Offered Rate (LIBOR)    
Debt Instrument [Line Items]    
Cost of funds 0.74%  
Senior Notes | Class A 2020-2 Notes    
Debt Instrument [Line Items]    
Total principal amount $ 264,300,000  
Bond discount (44,000)  
Bonds and notes payable, net $ 264,256,000  
Cost of funds 1.83%  
Senior Notes | Class A 2020-3 Notes    
Debt Instrument [Line Items]    
Total principal amount $ 343,600,000  
Bond discount (1,503,000)  
Bonds and notes payable, net $ 342,097,000  
Senior Notes | Class A 2020-3 Notes | London Interbank Offered Rate (LIBOR)    
Debt Instrument [Line Items]    
Cost of funds 0.92%  
Senior Notes | 2020 Class A Notes    
Debt Instrument [Line Items]    
Total principal amount $ 1,032,500,000  
Bond discount (1,547,000)  
Bonds and notes payable, net 1,030,953,000  
Subordinated Debt | Class B 2020-1 Notes    
Debt Instrument [Line Items]    
Total principal amount 11,000,000  
Bond discount 0  
Bonds and notes payable, net $ 11,000,000  
Subordinated Debt | Class B 2020-1 Notes | London Interbank Offered Rate (LIBOR)    
Debt Instrument [Line Items]    
Cost of funds 1.75%  
Subordinated Debt | Class B 2020-2 Notes    
Debt Instrument [Line Items]    
Total principal amount $ 7,800,000  
Bond discount (574,000)  
Bonds and notes payable, net $ 7,226,000  
Cost of funds 2.50%  
Subordinated Debt | Class B 2020-3 Notes    
Debt Instrument [Line Items]    
Total principal amount $ 9,000,000  
Bond discount (284,000)  
Bonds and notes payable, net $ 8,716,000  
Subordinated Debt | Class B 2020-3 Notes | London Interbank Offered Rate (LIBOR)    
Debt Instrument [Line Items]    
Cost of funds 1.90%  
Subordinated Debt | 2020 Class B Notes    
Debt Instrument [Line Items]    
Total principal amount $ 27,800,000  
Bond discount (858,000)  
Bonds and notes payable, net $ 26,942,000  
v3.20.2
Bonds and Notes Payable - Narrative (Details) - USD ($)
6 Months Ended
Jun. 30, 2020
Mar. 20, 2020
Feb. 13, 2020
Debt Instrument [Line Items]      
Other borrowings $ 86,700,000    
Other borrowings, termination notice period 5 days    
Other borrowings, maximum $ 100,000,000.0    
Unsecured Line of Credit      
Debt Instrument [Line Items]      
Maximum financing amount 455,000,000.0    
Amount outstanding 30,000,000.0    
Amount available 425,000,000.0    
Higher borrowing capacity option 550,000,000.0    
Warehouse facilities | Private Loan Warehouse Facility      
Debt Instrument [Line Items]      
Maximum financing amount   $ 200,000,000.0 $ 100,000,000.0
Amount outstanding 107,400,000    
Amount available 92,600,000    
Advanced as equity support 12,400,000    
Warehouse facilities | Consumer Loan Warehouse Facility      
Debt Instrument [Line Items]      
Maximum financing amount 200,000,000.0    
Amount outstanding 73,600,000    
Amount available 126,400,000    
Advanced as equity support $ 24,700,000    
Minimum | Warehouse facilities | Private Loan Warehouse Facility      
Debt Instrument [Line Items]      
Advance rate 80.00%    
Minimum | Warehouse facilities | Consumer Loan Warehouse Facility      
Debt Instrument [Line Items]      
Advance rate 70.00%    
Maximum | Warehouse facilities | Private Loan Warehouse Facility      
Debt Instrument [Line Items]      
Advance rate 90.00%    
Maximum | Warehouse facilities | Consumer Loan Warehouse Facility      
Debt Instrument [Line Items]      
Advance rate 75.00%    
v3.20.2
Derivative Financial Instruments - Basis Swap (Details) - 1:3 basis swaps - USD ($)
Jun. 30, 2020
Dec. 31, 2019
Derivative [Line Items]    
Notional amount $ 6,150,000,000 $ 7,150,000,000
London Interbank Offered Rate (LIBOR)    
Derivative [Line Items]    
Weighted average rate 0.091% 0.097%
Maturity 2020    
Derivative [Line Items]    
Notional amount $ 0  
Maturity 2021    
Derivative [Line Items]    
Notional amount 250,000,000 $ 1,000,000,000
Maturity 2022    
Derivative [Line Items]    
Notional amount 2,000,000,000 250,000,000
Maturity 2022, effective start dates in May 2020    
Derivative [Line Items]    
Notional amount 750,000,000  
Maturity 2023    
Derivative [Line Items]    
Notional amount 750,000,000 2,000,000,000
Maturity 2024    
Derivative [Line Items]    
Notional amount 1,750,000,000 750,000,000
Maturity 2026    
Derivative [Line Items]    
Notional amount 1,150,000,000 1,750,000,000
Maturity 2027    
Derivative [Line Items]    
Notional amount $ 250,000,000 1,150,000,000
Maturity 2028    
Derivative [Line Items]    
Notional amount   $ 250,000,000
v3.20.2
Derivative Financial Instruments - Interest Rate Swaps, Floor Income Hedge (Details) - Interest rate swaps - floor income hedges - USD ($)
Jun. 30, 2020
Dec. 31, 2019
Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 1,500,000,000 $ 2,500,000,000
Weighted average fixed rate paid by the Company 1.44% 1.42%
2020 | Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 0 $ 1,500,000,000
Weighted average fixed rate paid by the Company 0.00% 1.01%
2021 | Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 600,000,000 $ 600,000,000
Weighted average fixed rate paid by the Company 2.15% 2.15%
2022 | Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 500,000,000 $ 250,000,000
Weighted average fixed rate paid by the Company 0.94% 1.65%
2022 | Interest Rate Swap, forward effective date June 2021    
Derivative [Line Items]    
Notional amount $ 250,000,000.0  
2022 | Interest Rate Swap, forward effective date August 2020    
Derivative [Line Items]    
Notional amount 250,000,000.0  
2022 | Interest Rate Swap, excluding those with forward effective start dates    
Derivative [Line Items]    
Notional amount $ 750,000,000.0  
Weighted average fixed rate paid by the Company 2.17%  
2023 | Interest Rate Swap    
Derivative [Line Items]    
Notional amount $ 400,000,000 $ 150,000,000
Weighted average fixed rate paid by the Company 1.00% 2.25%
2023 | Interest Rate Swap, forward effective date July 2020    
Derivative [Line Items]    
Notional amount $ 250,000,000.0  
v3.20.2
Derivative Financial Instruments - Interest Rate Caps (Details) - Interest rate caps - USD ($)
1 Months Ended
Jun. 30, 2019
Jun. 30, 2015
Jun. 30, 2020
Derivative [Line Items]      
Payments to enter into derivative instruments $ 300,000 $ 2,900,000  
Interest Rate Cap 1 Maturing July 2020      
Derivative [Line Items]      
Notional amount     $ 125,000,000
Interest Rate Cap 1 Maturing July 2020 | London Interbank Offered Rate (LIBOR)      
Derivative [Line Items]      
Strike rate     2.50%
Interest Rate Cap 2 Maturing July 2020      
Derivative [Line Items]      
Notional amount     $ 150,000,000
Interest Rate Cap 2 Maturing July 2020 | London Interbank Offered Rate (LIBOR)      
Derivative [Line Items]      
Strike rate     4.99%
Interest Rate Cap Maturing September 2020      
Derivative [Line Items]      
Notional amount     $ 500,000,000
Interest Rate Cap Maturing September 2020 | London Interbank Offered Rate (LIBOR)      
Derivative [Line Items]      
Strike rate     2.25%
v3.20.2
Derivative Financial Instruments - Schedule of Income Statement Impact (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative settlements, net $ 5,821 $ 12,972 $ 10,058 $ 32,007
Derivative market value adjustments and derivative settlements, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative settlements, net 5,821 12,972 10,058 32,007
Change in fair value (3,911) (37,060) (24,513) (67,635)
Derivative market value adjustments and derivative settlements, net - income (expense) 1,910 (24,088) (14,455) (35,628)
1:3 basis swaps | Derivative market value adjustments and derivative settlements, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative settlements, net 7,129 807 9,242 3,140
Change in fair value (2,872) 4 (1,314) (2,209)
Interest rate swaps - floor income hedges | Derivative market value adjustments and derivative settlements, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative settlements, net (1,308) 12,165 816 28,867
Change in fair value (1,039) (36,851) (23,199) (63,563)
Interest rate swap options - floor income hedges | Derivative market value adjustments and derivative settlements, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Change in fair value 0 (88) 0 (1,464)
Interest rate caps | Derivative market value adjustments and derivative settlements, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Change in fair value $ 0 $ (125) $ 0 $ (399)
v3.20.2
Investments (Details) - USD ($)
$ in Thousands
3 Months Ended
May 20, 2020
Jun. 30, 2020
Mar. 31, 2020
May 19, 2020
Dec. 31, 2019
Investments (at fair value):          
Amortized cost   $ 137,970     $ 48,790
Gross unrealized gains   4,571     3,911
Gross unrealized losses   (316)     0
Fair value   142,225     52,701
Equity securities          
Amortized cost   27,291     9,622
Gross unrealized gains   5,345     4,561
Gross unrealized losses   (2,664)     (1,283)
Fair value   29,972     12,900
Total investments (at fair value)          
Amortized cost   165,261     58,412
Gross unrealized gains   9,916     8,472
Gross unrealized losses   (2,980)     (1,283)
Fair value   172,197     65,601
Other Investments and Notes Receivable (not measured at fair value):          
Total investments (not measured at fair value)   277,503     181,498
Total investments   449,700     247,099
Beneficial interest in consumer loan securitizations, allowance for credit losses   24,837      
Impairment charges on investments     $ 34,100    
Impairment of real estate   300      
Hudl          
Other Investments and Notes Receivable (not measured at fair value):          
Additional equity investment $ 26,000        
Ownership percentage (less than)       20.00%  
Gain to adjust carrying value of investment   51,000      
Venture capital and funds:          
Other Investments and Notes Receivable (not measured at fair value):          
Impairment charges on investments     7,800    
Venture capital and funds: | Other Investments (not measured at fair value):          
Other Investments and Notes Receivable (not measured at fair value):          
Measurement alternative   143,224     72,760
Equity method   14,906     15,379
Other   539     1,301
Total investments (not measured at fair value)   158,669     89,440
Real estate and solar: | Other Investments (not measured at fair value):          
Other Investments and Notes Receivable (not measured at fair value):          
Equity method   55,611     51,721
Other   856     867
Total investments (not measured at fair value)   56,467     52,588
Beneficial interest in federally insured loan securitization | Other Investments (not measured at fair value):          
Other Investments and Notes Receivable (not measured at fair value):          
Beneficial interest In securitizations   32,396     0
Loan amount corresponding to beneficial interest   545,000      
Beneficial interest in consumer loan securitizations          
Other Investments and Notes Receivable (not measured at fair value):          
Impairment charges on investments     $ 26,300    
Beneficial interest in consumer loan securitizations | Other Investments (not measured at fair value):          
Other Investments and Notes Receivable (not measured at fair value):          
Beneficial interest In securitizations   24,676     33,187
Loan amount corresponding to beneficial interest   270,000      
Tax liens and affordable housing | Other Investments (not measured at fair value):          
Other Investments and Notes Receivable (not measured at fair value):          
Total investments (not measured at fair value)   $ 5,295     $ 6,283
v3.20.2
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]          
Weighted average remaining useful life     78 months    
Amortizable intangible assets, net $ 66,733   $ 66,733   $ 81,532
Amortization of intangible assets 7,400 $ 8,300 $ 14,800 $ 16,800  
Customer relationships          
Finite-Lived Intangible Assets [Line Items]          
Weighted average remaining useful life     81 months    
Amortizable intangible assets, net 58,626   $ 58,626   71,900
Accumulated amortization of intangible assets 73,827   $ 73,827   60,553
Trade names          
Finite-Lived Intangible Assets [Line Items]          
Weighted average remaining useful life     71 months    
Amortizable intangible assets, net 6,936   $ 6,936   7,478
Accumulated amortization of intangible assets 3,334   $ 3,334   2,792
Computer software          
Finite-Lived Intangible Assets [Line Items]          
Weighted average remaining useful life     8 months    
Amortizable intangible assets, net 1,171   $ 1,171   2,154
Accumulated amortization of intangible assets $ 4,216   $ 4,216   $ 3,233
v3.20.2
Intangible Assets - Amortization Expense (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
2020 (July 1 - December 31) $ 16,011  
2021 19,687  
2022 6,431  
2023 6,184  
2024 5,771  
2025 and thereafter 12,649  
Amortizable intangible assets, net $ 66,733 $ 81,532
v3.20.2
Goodwill (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Goodwill [Line Items]    
Goodwill $ 156,912 $ 156,912
Corporate and Other Activities    
Goodwill [Line Items]    
Goodwill 0 0
Loan Servicing and Systems | Operating Segments    
Goodwill [Line Items]    
Goodwill 23,639 23,639
Education Technology, Services, and Payment Processing | Operating Segments    
Goodwill [Line Items]    
Goodwill 70,278 70,278
Communications | Operating Segments    
Goodwill [Line Items]    
Goodwill 21,112 21,112
Asset Generation and Management | Operating Segments    
Goodwill [Line Items]    
Goodwill $ 41,883 $ 41,883
v3.20.2
Property and Equipment (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Property, Plant and Equipment [Line Items]          
Property and equipment, net $ 350,043   $ 350,043   $ 348,259
Depreciation 22,000 $ 16,200 42,300 $ 31,900  
Non-communications          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 275,027   275,027   249,172
Accumulated depreciation (162,981)   (162,981)   (142,270)
Property and equipment, net 112,046   112,046   106,902
Non-communications | Computer equipment and software          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 177,513   $ 177,513   160,319
Non-communications | Computer equipment and software | Minimum          
Property, Plant and Equipment [Line Items]          
Useful life     1 year    
Non-communications | Computer equipment and software | Maximum          
Property, Plant and Equipment [Line Items]          
Useful life     5 years    
Non-communications | Building and building improvements          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 38,883   $ 38,883   37,904
Non-communications | Building and building improvements | Minimum          
Property, Plant and Equipment [Line Items]          
Useful life     5 years    
Non-communications | Building and building improvements | Maximum          
Property, Plant and Equipment [Line Items]          
Useful life     48 years    
Non-communications | Office furniture and equipment          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 22,049   $ 22,049   21,245
Non-communications | Office furniture and equipment | Minimum          
Property, Plant and Equipment [Line Items]          
Useful life     1 year    
Non-communications | Office furniture and equipment | Maximum          
Property, Plant and Equipment [Line Items]          
Useful life     10 years    
Non-communications | Leasehold improvements          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 9,080   $ 9,080   9,517
Non-communications | Leasehold improvements | Minimum          
Property, Plant and Equipment [Line Items]          
Useful life     1 year    
Non-communications | Leasehold improvements | Maximum          
Property, Plant and Equipment [Line Items]          
Useful life     15 years    
Non-communications | Transportation equipment          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 5,032   $ 5,032   5,049
Non-communications | Transportation equipment | Minimum          
Property, Plant and Equipment [Line Items]          
Useful life     5 years    
Non-communications | Transportation equipment | Maximum          
Property, Plant and Equipment [Line Items]          
Useful life     10 years    
Non-communications | Land          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 1,400   $ 1,400   1,400
Non-communications | Construction in progress          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 21,070   21,070   13,738
Communications          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 332,562   332,562   315,254
Accumulated depreciation (94,565)   (94,565)   (73,897)
Property and equipment, net 237,997   237,997   241,357
Communications | Computer equipment and software          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 6,064   $ 6,064   5,574
Communications | Computer equipment and software | Minimum          
Property, Plant and Equipment [Line Items]          
Useful life     1 year    
Communications | Computer equipment and software | Maximum          
Property, Plant and Equipment [Line Items]          
Useful life     5 years    
Communications | Transportation equipment          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 6,895   $ 6,895   6,611
Communications | Transportation equipment | Minimum          
Property, Plant and Equipment [Line Items]          
Useful life     4 years    
Communications | Transportation equipment | Maximum          
Property, Plant and Equipment [Line Items]          
Useful life     10 years    
Communications | Land          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 70   $ 70   70
Communications | Construction in progress          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 1,620   1,620   54
Communications | Network plant and fiber          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 265,189   $ 265,189   254,560
Communications | Network plant and fiber | Minimum          
Property, Plant and Equipment [Line Items]          
Useful life     4 years    
Communications | Network plant and fiber | Maximum          
Property, Plant and Equipment [Line Items]          
Useful life     15 years    
Communications | Customer located property          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 29,976   $ 29,976   27,011
Communications | Customer located property | Minimum          
Property, Plant and Equipment [Line Items]          
Useful life     2 years    
Communications | Customer located property | Maximum          
Property, Plant and Equipment [Line Items]          
Useful life     4 years    
Communications | Central office          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross 19,011   $ 19,011   17,672
Communications | Central office | Minimum          
Property, Plant and Equipment [Line Items]          
Useful life     5 years    
Communications | Central office | Maximum          
Property, Plant and Equipment [Line Items]          
Useful life     15 years    
Communications | Other          
Property, Plant and Equipment [Line Items]          
Property and equipment, gross $ 3,737   $ 3,737   $ 3,702
Communications | Other | Minimum          
Property, Plant and Equipment [Line Items]          
Useful life     1 year    
Communications | Other | Maximum          
Property, Plant and Equipment [Line Items]          
Useful life     39 years    
v3.20.2
Earnings per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]        
Net income attributable to Nelnet, Inc. $ 86,482 $ 24,619 $ 45,950 $ 66,210
Weighted average common shares outstanding - basic and diluted (in shares) 39,203,404 40,050,065 39,579,459 40,210,787
Earnings per share - basic and diluted (in dollars per share) $ 2.21 $ 0.61 $ 1.16 $ 1.65
Common shareholders        
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]        
Net income attributable to Nelnet, Inc. $ 85,243 $ 24,292 $ 45,305 $ 65,346
Weighted average common shares outstanding - basic and diluted (in shares) 38,641,794 39,518,652 39,023,624 39,685,958
Earnings per share - basic and diluted (in dollars per share) $ 2.21 $ 0.61 $ 1.16 $ 1.65
Unvested restricted stock shareholders        
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]        
Net income attributable to Nelnet, Inc. $ 1,239 $ 327 $ 645 $ 864
Weighted average common shares outstanding - basic and diluted (in shares) 561,610 531,413 555,835 524,829
Earnings per share - basic and diluted (in dollars per share) $ 2.21 $ 0.61 $ 1.16 $ 1.65
v3.20.2
Segment Reporting (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Segment Reporting Information [Line Items]          
Total interest income $ 151,883 $ 246,788 $ 341,074 $ 497,374  
Interest expense 85,248 186,963 219,366 378,733  
Net interest income 66,635 59,825 121,708 118,641  
Less provision for loan losses 2,999 9,000 79,297 16,000  
Net interest income after provision for loan losses 63,636 50,825 42,411 102,641  
Other income:          
Intersegment revenue 0 0 0 0  
Gain on sale of loans 0 1,712 18,206 1,712  
Other income 60,127 14,440 68,408 23,507  
Impairment expense (332) 0 (34,419) 0  
Derivative settlements, net 5,821 12,972 10,058 32,007  
Derivative market value and foreign currency transaction adjustments, net (3,911) (37,060) (24,513) (67,635)  
Total other income/expense 251,049 182,149 441,676 388,276  
Cost of services:          
Cost of services 21,119 20,972 49,506 46,790  
Operating expenses:          
Salaries and benefits 119,247 111,214 239,125 222,272  
Depreciation and amortization 29,393 24,484 57,041 48,697  
Other expenses 37,052 45,417 80,439 89,233  
Intersegment expenses, net 0 0 0 0  
Total operating expenses 185,692 181,115 376,605 360,202  
Income before income taxes 107,874 30,887 57,976 83,925  
Income tax (expense) benefit (21,264) (6,209) (11,131) (17,600)  
Net income 86,610 24,678 46,845 66,325  
Net income attributable to noncontrolling interests (128) (59) (895) (115)  
Net income attributable to Nelnet, Inc. 86,482 24,619 45,950 66,210  
Total assets 22,611,208 24,219,800 22,611,208 24,219,800 $ 23,708,970
Operating Segments | Loan Servicing and Systems          
Segment Reporting Information [Line Items]          
Total interest income 52 550 369 1,047  
Interest expense 28 19 73 19  
Net interest income 24 531 296 1,028  
Less provision for loan losses 0 0 0 0  
Net interest income after provision for loan losses 24 531 296 1,028  
Other income:          
Intersegment revenue 8,537 11,598 19,591 23,815  
Gain on sale of loans 0 0 0 0  
Other income 1,914 2,277 4,544 4,350  
Impairment expense 0 0 0 0  
Derivative settlements, net 0 0 0 0  
Derivative market value and foreign currency transaction adjustments, net 0 0 0 0  
Total other income/expense 121,493 127,860 247,913 257,048  
Cost of services:          
Cost of services 0 0 0 0  
Operating expenses:          
Salaries and benefits 68,401 66,496 138,894 132,715  
Depreciation and amortization 9,142 8,799 17,990 17,671  
Other expenses 13,380 17,118 30,870 36,047  
Intersegment expenses, net 15,996 13,604 32,235 27,362  
Total operating expenses 106,919 106,017 219,989 213,795  
Income before income taxes 14,598 22,374 28,220 44,281  
Income tax (expense) benefit (3,504) (5,370) (6,773) (10,628)  
Net income 11,094 17,004 21,447 33,653  
Net income attributable to noncontrolling interests 0 0 0 0  
Net income attributable to Nelnet, Inc. 11,094 17,004 21,447 33,653  
Total assets 221,313 267,611 221,313 267,611  
Operating Segments | Education Technology, Services, and Payment Processing          
Segment Reporting Information [Line Items]          
Total interest income 420 1,659 2,411 3,676  
Interest expense 21 11 38 19  
Net interest income 399 1,648 2,373 3,657  
Less provision for loan losses 0 0 0 0  
Net interest income after provision for loan losses 399 1,648 2,373 3,657  
Other income:          
Intersegment revenue 3 0 14 0  
Gain on sale of loans 0 0 0 0  
Other income 0 0 0 0  
Impairment expense 0 0 0 0  
Derivative settlements, net 0 0 0 0  
Derivative market value and foreign currency transaction adjustments, net 0 0 0 0  
Total other income/expense 59,307 60,342 142,993 139,502  
Cost of services:          
Cost of services 15,376 15,871 38,181 36,930  
Operating expenses:          
Salaries and benefits 24,522 22,823 48,218 45,830  
Depreciation and amortization 2,362 3,324 4,749 6,835  
Other expenses 2,326 5,805 8,418 11,116  
Intersegment expenses, net 3,429 3,148 6,756 6,447  
Total operating expenses 32,639 35,100 68,141 70,228  
Income before income taxes 11,691 11,019 39,044 36,001  
Income tax (expense) benefit (2,806) (2,645) (9,371) (8,640)  
Net income 8,885 8,374 29,673 27,361  
Net income attributable to noncontrolling interests 0 0 0 0  
Net income attributable to Nelnet, Inc. 8,885 8,374 29,673 27,361  
Total assets 351,392 336,896 351,392 336,896  
Operating Segments | Communications          
Segment Reporting Information [Line Items]          
Total interest income 0 1 0 3  
Interest expense 0 0 0 0  
Net interest income 0 1 0 3  
Less provision for loan losses 0 0 0 0  
Net interest income after provision for loan losses 0 1 0 3  
Other income:          
Intersegment revenue 0 0 0 0  
Gain on sale of loans 0 0 0 0  
Other income 392 362 745 487  
Impairment expense 0 0 0 0  
Derivative settlements, net 0 0 0 0  
Derivative market value and foreign currency transaction adjustments, net 0 0 0 0  
Total other income/expense 19,390 16,120 37,924 30,787  
Cost of services:          
Cost of services 5,743 5,101 11,325 9,860  
Operating expenses:          
Salaries and benefits 5,570 5,192 10,986 9,929  
Depreciation and amortization 10,824 7,737 21,330 15,099  
Other expenses 3,774 3,865 7,463 7,342  
Intersegment expenses, net 536 716 1,160 1,380  
Total operating expenses 20,704 17,510 40,939 33,750  
Income before income taxes (7,057) (6,490) (14,340) (12,820)  
Income tax (expense) benefit 1,694 1,558 3,442 3,077  
Net income (5,363) (4,932) (10,898) (9,743)  
Net income attributable to noncontrolling interests 0 0 0 0  
Net income attributable to Nelnet, Inc. (5,363) (4,932) (10,898) (9,743)  
Total assets 301,741 302,873 301,741 302,873  
Operating Segments | Asset Generation and Management          
Segment Reporting Information [Line Items]          
Total interest income 150,583 243,295 336,509 490,162  
Interest expense 84,489 184,035 217,737 372,834  
Net interest income 66,094 59,260 118,772 117,328  
Less provision for loan losses 2,999 9,000 79,297 16,000  
Net interest income after provision for loan losses 63,095 50,260 39,475 101,328  
Other income:          
Intersegment revenue 0 0 0 0  
Gain on sale of loans 0 1,712 18,206 1,712  
Other income 732 3,176 3,947 6,701  
Impairment expense 0 0 (26,303) 0  
Derivative settlements, net 5,821 12,972 10,058 32,007  
Derivative market value and foreign currency transaction adjustments, net (3,911) (37,060) (24,513) (67,635)  
Total other income/expense 2,642 (19,200) (18,605) (27,215)  
Cost of services:          
Cost of services 0 0 0 0  
Operating expenses:          
Salaries and benefits 421 382 863 760  
Depreciation and amortization 0 0 0 0  
Other expenses 4,863 6,207 8,581 10,044  
Intersegment expenses, net 9,055 11,665 20,971 23,952  
Total operating expenses 14,339 18,254 30,415 34,756  
Income before income taxes 51,398 12,806 (9,545) 39,357  
Income tax (expense) benefit (12,336) (3,074) 2,291 (9,446)  
Net income 39,062 9,732 (7,254) 29,911  
Net income attributable to noncontrolling interests 0 0 0 0  
Net income attributable to Nelnet, Inc. 39,062 9,732 (7,254) 29,911  
Total assets 21,136,268 22,907,234 21,136,268 22,907,234  
Corporate and Other Activities          
Segment Reporting Information [Line Items]          
Total interest income 1,196 2,258 2,751 4,310  
Interest expense 1,078 3,872 2,485 7,685  
Net interest income 118 (1,614) 266 (3,375)  
Less provision for loan losses 0 0 0 0  
Net interest income after provision for loan losses 118 (1,614) 266 (3,375)  
Other income:          
Intersegment revenue 0 0 0 0  
Gain on sale of loans 0 0 0 0  
Other income 57,089 8,624 59,172 11,969  
Impairment expense (332) 0 (8,116) 0  
Derivative settlements, net 0 0 0 0  
Derivative market value and foreign currency transaction adjustments, net 0 0 0 0  
Total other income/expense 56,757 8,624 51,056 11,969  
Cost of services:          
Cost of services 0 0 0 0  
Operating expenses:          
Salaries and benefits 20,334 16,321 40,163 33,038  
Depreciation and amortization 7,065 4,623 12,972 9,093  
Other expenses 12,710 12,423 25,108 24,685  
Intersegment expenses, net (20,476) (17,535) (41,517) (35,326)  
Total operating expenses 19,633 15,832 36,726 31,490  
Income before income taxes 37,242 (8,822) 14,596 (22,896)  
Income tax (expense) benefit (4,312) 3,321 (720) 8,037  
Net income 32,930 (5,501) 13,876 (14,859)  
Net income attributable to noncontrolling interests (128) (59) (895) (115)  
Net income attributable to Nelnet, Inc. 32,802 (5,560) 12,981 (14,974)  
Total assets 732,994 595,623 732,994 595,623  
Eliminations          
Segment Reporting Information [Line Items]          
Total interest income (368) (974) (967) (1,824)  
Interest expense (368) (974) (967) (1,824)  
Net interest income 0 0 0 0  
Less provision for loan losses 0 0 0 0  
Net interest income after provision for loan losses 0 0 0 0  
Other income:          
Intersegment revenue (8,540) (11,598) (19,605) (23,815)  
Gain on sale of loans 0 0 0 0  
Other income 0 0 0 0  
Impairment expense 0 0 0 0  
Derivative settlements, net 0 0 0 0  
Derivative market value and foreign currency transaction adjustments, net 0 0 0 0  
Total other income/expense (8,540) (11,598) (19,605) (23,815)  
Cost of services:          
Cost of services 0 0 0 0  
Operating expenses:          
Salaries and benefits 0 0 0 0  
Depreciation and amortization 0 0 0 0  
Other expenses 0 0 0 0  
Intersegment expenses, net (8,540) (11,598) (19,605) (23,815)  
Total operating expenses (8,540) (11,598) (19,605) (23,815)  
Income before income taxes 0 0 0 0  
Income tax (expense) benefit 0 0 0 0  
Net income 0 0 0 0  
Net income attributable to noncontrolling interests 0 0 0 0  
Net income attributable to Nelnet, Inc. 0 0 0 0  
Total assets (132,500) (190,437) (132,500) (190,437)  
Loan servicing and systems          
Other income:          
Revenue 111,042 113,985 223,778 228,883  
Loan servicing and systems | Operating Segments | Loan Servicing and Systems          
Other income:          
Revenue 111,042 113,985 223,778 228,883  
Loan servicing and systems | Operating Segments | Education Technology, Services, and Payment Processing          
Other income:          
Revenue 0 0 0 0  
Loan servicing and systems | Operating Segments | Communications          
Other income:          
Revenue 0 0 0 0  
Loan servicing and systems | Operating Segments | Asset Generation and Management          
Other income:          
Revenue 0 0 0 0  
Loan servicing and systems | Corporate and Other Activities          
Other income:          
Revenue 0 0 0 0  
Loan servicing and systems | Eliminations          
Other income:          
Revenue 0 0 0 0  
Education technology, services, and payment processing          
Other income:          
Revenue 59,304 60,342 142,979 139,502  
Cost of services:          
Cost of services 15,376 15,871 38,181 36,930  
Education technology, services, and payment processing | Operating Segments | Loan Servicing and Systems          
Other income:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Education technology, services, and payment processing | Operating Segments | Education Technology, Services, and Payment Processing          
Other income:          
Revenue 59,304 60,342 142,979 139,502  
Cost of services:          
Cost of services 15,376 15,871 38,181 36,930  
Education technology, services, and payment processing | Operating Segments | Communications          
Other income:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Education technology, services, and payment processing | Operating Segments | Asset Generation and Management          
Other income:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Education technology, services, and payment processing | Corporate and Other Activities          
Other income:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Education technology, services, and payment processing | Eliminations          
Other income:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Communications services          
Other income:          
Revenue 18,998 15,758 37,179 30,300  
Cost of services:          
Cost of services 5,743 5,101 11,325 9,860  
Communications services | Operating Segments | Loan Servicing and Systems          
Other income:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Communications services | Operating Segments | Education Technology, Services, and Payment Processing          
Other income:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Communications services | Operating Segments | Communications          
Other income:          
Revenue 18,998 15,758 37,179 30,300  
Cost of services:          
Cost of services 5,743 5,101 11,325 9,860  
Communications services | Operating Segments | Asset Generation and Management          
Other income:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Communications services | Corporate and Other Activities          
Other income:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services 0 0 0 0  
Communications services | Eliminations          
Other income:          
Revenue 0 0 0 0  
Cost of services:          
Cost of services $ 0 $ 0 $ 0 $ 0  
v3.20.2
Disaggregated Revenue and Deferred Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Communications revenue        
Disaggregation of Revenue [Line Items]        
Revenue $ 18,998 $ 15,758 $ 37,179 $ 30,300
Residential revenue        
Disaggregation of Revenue [Line Items]        
Revenue 14,209 11,890 27,766 22,955
Business revenue        
Disaggregation of Revenue [Line Items]        
Revenue 4,619 3,816 9,091 7,230
Other        
Disaggregation of Revenue [Line Items]        
Revenue 170 52 322 115
Loan servicing and systems revenue        
Disaggregation of Revenue [Line Items]        
Revenue 111,042 113,985 223,778 228,883
Government servicing - Nelnet        
Disaggregation of Revenue [Line Items]        
Revenue 37,360 40,459 76,010 80,099
Government servicing - Great Lakes        
Disaggregation of Revenue [Line Items]        
Revenue 45,213 45,973 91,660 93,050
Private education and consumer loan servicing        
Disaggregation of Revenue [Line Items]        
Revenue 8,196 8,985 16,805 18,465
FFELP servicing        
Disaggregation of Revenue [Line Items]        
Revenue 4,917 6,424 10,531 13,119
Software services        
Disaggregation of Revenue [Line Items]        
Revenue 10,651 10,021 21,969 19,762
Outsourced services and other        
Disaggregation of Revenue [Line Items]        
Revenue 4,705 2,123 6,803 4,388
Education technology, services, and payment processing        
Disaggregation of Revenue [Line Items]        
Revenue 59,304 60,342 142,979 139,502
Tuition payment plan services        
Disaggregation of Revenue [Line Items]        
Revenue 22,947 24,655 54,534 54,829
Payment processing        
Disaggregation of Revenue [Line Items]        
Revenue 21,168 21,311 52,910 50,290
Education technology and services        
Disaggregation of Revenue [Line Items]        
Revenue 14,927 14,096 34,980 33,805
Other        
Disaggregation of Revenue [Line Items]        
Revenue 262 280 555 578
Communications revenue        
Disaggregation of Revenue [Line Items]        
Revenue 18,998 15,758 37,179 30,300
Internet        
Disaggregation of Revenue [Line Items]        
Revenue 11,930 9,297 23,125 17,726
Television        
Disaggregation of Revenue [Line Items]        
Revenue 4,218 4,050 8,440 7,939
Telephone        
Disaggregation of Revenue [Line Items]        
Revenue 2,812 2,395 5,502 4,575
Other        
Disaggregation of Revenue [Line Items]        
Revenue $ 38 $ 16 $ 112 $ 60
v3.20.2
Disaggregated Revenue and Deferred Revenue - Schedule of Other Income by Component (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Disaggregation of Revenue [Line Items]        
Gain on investments, net of losses $ 53,151 $ 4,258 $ 49,286 $ 3,831
Borrower late fee income 319 3,161 3,506 6,674
Other 3,821 4,013 7,348 7,211
Other income 60,127 14,440 68,408 23,507
Management fee revenue        
Disaggregation of Revenue [Line Items]        
Revenue 1,914 2,277 4,544 4,350
Investment advisory services        
Disaggregation of Revenue [Line Items]        
Revenue $ 922 $ 731 $ 3,724 $ 1,441
v3.20.2
Disaggregated Revenue and Deferred Revenue - Schedule of Changes in Liabilities from Contract with Customers (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Contract With Customer Liability [Roll Forward]        
Balance, beginning of period $ 26,889 $ 26,753 $ 39,646 $ 39,122
Deferral of revenue 34,659 35,173 60,903 59,253
Recognition of revenue (34,105) (32,431) (73,106) (68,880)
Balance, end of period 27,443 29,495 27,443 29,495
Corporate and Other Activities        
Contract With Customer Liability [Roll Forward]        
Balance, beginning of period 1,640 1,552 1,628 1,602
Deferral of revenue 879 841 1,734 1,577
Recognition of revenue (843) (782) (1,686) (1,568)
Balance, end of period 1,676 1,611 1,676 1,611
Loan Servicing and Systems | Operating Segments        
Contract With Customer Liability [Roll Forward]        
Balance, beginning of period 2,195 3,947 2,712 4,413
Deferral of revenue 800 764 1,182 1,880
Recognition of revenue (880) (1,396) (1,779) (2,978)
Balance, end of period 2,115 3,315 2,115 3,315
Education Technology, Services, and Payment Processing | Operating Segments        
Contract With Customer Liability [Roll Forward]        
Balance, beginning of period 19,640 18,498 32,074 30,556
Deferral of revenue 22,340 24,770 37,420 38,732
Recognition of revenue (22,056) (21,779) (49,570) (47,799)
Balance, end of period 19,924 21,489 19,924 21,489
Communications | Operating Segments        
Contract With Customer Liability [Roll Forward]        
Balance, beginning of period 3,414 2,756 3,232 2,551
Deferral of revenue 10,640 8,798 20,567 17,064
Recognition of revenue (10,326) (8,474) (20,071) (16,535)
Balance, end of period $ 3,728 $ 3,080 $ 3,728 $ 3,080
v3.20.2
Major Customer (Details)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2020
USD ($)
extensionOption
Jun. 30, 2019
USD ($)
Concentration Risk [Line Items]        
Servicing contract, number of extension options | extensionOption     2  
Servicing contract, term of extension options     6 months  
Great Lakes Educational Loan Service        
Concentration Risk [Line Items]        
Acquiree revenue since acquisition $ 45,200 $ 46,000 $ 91,700 $ 93,100
Government servicing - Nelnet        
Concentration Risk [Line Items]        
Revenue 37,360 40,459 76,010 80,099
Government servicing - Nelnet | Customer concentration risk        
Concentration Risk [Line Items]        
Revenue $ 37,400 $ 40,500 $ 76,000 $ 80,100
v3.20.2
Fair Value - Assets and Liabilities that are Measured at Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Financial assets:    
Fair value $ 172,197 $ 65,601
Total assets 172,197 65,601
Student loan asset-backed securities - available-for-sale    
Financial assets:    
Fair value 142,122 52,597
Equity securities    
Financial assets:    
Fair value 6 6
Equity securities measured at net asset value    
Financial assets:    
Fair value 29,966 12,894
Debt securities - available-for-sale    
Financial assets:    
Fair value 103 104
Level 1    
Financial assets:    
Fair value 109 110
Total assets 109 110
Level 1 | Student loan asset-backed securities - available-for-sale    
Financial assets:    
Fair value 0 0
Level 1 | Equity securities    
Financial assets:    
Fair value 6 6
Level 1 | Debt securities - available-for-sale    
Financial assets:    
Fair value 103 104
Level 2    
Financial assets:    
Fair value 142,122 52,597
Total assets 142,122 52,597
Level 2 | Student loan asset-backed securities - available-for-sale    
Financial assets:    
Fair value 142,122 52,597
Level 2 | Equity securities    
Financial assets:    
Fair value 0 0
Level 2 | Debt securities - available-for-sale    
Financial assets:    
Fair value $ 0 $ 0
v3.20.2
Fair Value - Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Financial assets:        
Loans receivable $ 20,460,873 $ 21,402,868    
Accrued loan interest receivable 856,880 733,497    
Cash and cash equivalents 67,540 133,906 $ 84,400 $ 121,347
Investments (at fair value) 449,700 247,099    
Restricted cash - due to customers 268,539 437,756 $ 279,017 $ 369,678
Financial liabilities:        
Accrued interest payable 32,760 47,285    
Due to customers 268,539 437,756    
Fair value        
Financial assets:        
Loans receivable 20,017,543 21,477,630    
Accrued loan interest receivable 856,880 733,497    
Cash and cash equivalents 67,540 133,906    
Investments (at fair value) 172,197 65,601    
Beneficial interest in loan securitizations 57,072 33,258    
Restricted cash 585,236 650,939    
Restricted cash - due to customers 268,539 437,756    
Financial liabilities:        
Bonds and notes payable 19,064,071 20,479,095    
Accrued interest payable 32,760 47,285    
Due to customers 268,539 437,756    
Fair value | Level 1        
Financial assets:        
Loans receivable 0 0    
Accrued loan interest receivable 0 0    
Cash and cash equivalents 67,540 133,906    
Investments (at fair value) 109 110    
Beneficial interest in loan securitizations 0 0    
Restricted cash 585,236 650,939    
Restricted cash - due to customers 268,539 437,756    
Financial liabilities:        
Bonds and notes payable 0 0    
Accrued interest payable 0 0    
Due to customers 268,539 437,756    
Fair value | Level 2        
Financial assets:        
Loans receivable 0 0    
Accrued loan interest receivable 856,880 733,497    
Cash and cash equivalents 0 0    
Investments (at fair value) 142,122 52,597    
Beneficial interest in loan securitizations 0 0    
Restricted cash 0 0    
Restricted cash - due to customers 0 0    
Financial liabilities:        
Bonds and notes payable 19,064,071 20,479,095    
Accrued interest payable 32,760 47,285    
Due to customers 0 0    
Fair value | Level 3        
Financial assets:        
Loans receivable 20,017,543 21,477,630    
Accrued loan interest receivable 0 0    
Cash and cash equivalents 0 0    
Investments (at fair value) 0 0    
Beneficial interest in loan securitizations 57,072 33,258    
Restricted cash 0 0    
Restricted cash - due to customers 0 0    
Financial liabilities:        
Bonds and notes payable 0 0    
Accrued interest payable 0 0    
Due to customers 0 0    
Carrying value        
Financial assets:        
Loans receivable 19,603,993 20,669,371    
Accrued loan interest receivable 856,880 733,497    
Cash and cash equivalents 67,540 133,906    
Investments (at fair value) 172,197 65,601    
Beneficial interest in loan securitizations 57,072 33,187    
Restricted cash 585,236 650,939    
Restricted cash - due to customers 268,539 437,756    
Financial liabilities:        
Bonds and notes payable 19,726,158 20,529,054    
Accrued interest payable 32,760 47,285    
Due to customers $ 268,539 $ 437,756