NELNET INC, 10-Q filed on 8/5/2021
Quarterly Report
v3.21.2
Cover Page - shares
6 Months Ended
Jun. 30, 2021
Jul. 31, 2021
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2021  
Document Transition Report false  
Entity File Number 001-31924  
Entity Registrant Name NELNET, INC.  
Entity Incorporation, State or Country Code NE  
Entity Tax Identification Number 84-0748903  
Entity Address, Address Line One 121 South 13th Street, Suite 100  
Entity Address, City or Town Lincoln,  
Entity Address, State or Province NE  
Entity Address, Postal Zip Code 68508  
City Area Code 402  
Local Phone Number 458-2370  
Title of 12(b) Security Class A Common Stock, Par Value $0.01 per Share  
Trading Symbol NNI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Current Fiscal Year End Date --12-31  
Amendment Flag false  
Entity Central Index Key 0001258602  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q2  
Common Class A    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   27,600,443
Common Class B    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   10,954,171
v3.21.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Assets:    
Loans and accrued interest receivable (net of allowance for loan losses of $145,719 and $175,698, respectively) $ 20,187,670 $ 20,185,656
Cash and cash equivalents:    
Cash and cash equivalents - not held at a related party 37,243 33,292
Cash and cash equivalents - held at a related party 175,746 87,957
Total cash and cash equivalents 212,989 121,249
Investments 1,267,957 992,940
Restricted cash 616,711 553,175
Restricted cash - due to customers 247,673 283,971
Accounts receivable (net of allowance for doubtful accounts of $1,405 and $1,824, respectively) 85,884 76,460
Goodwill 142,092 142,092
Intangible assets, net 58,464 75,070
Property and equipment, net 128,527 123,527
Other assets 80,896 92,020
Total assets 23,028,863 22,646,160
Liabilities:    
Bonds and notes payable 19,381,835 19,320,726
Accrued interest payable 4,922 28,701
Bank deposits 202,841 54,633
Other liabilities 307,474 312,280
Due to customers 303,173 301,471
Total liabilities 20,200,245 20,017,811
Commitments and contingencies
Nelnet, Inc. shareholders' equity:    
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding 0 0
Common stock:    
Additional paid-in capital 10,158 3,794
Retained earnings 2,812,315 2,621,762
Accumulated other comprehensive earnings, net 10,941 6,102
Total Nelnet, Inc. shareholders' equity 2,833,800 2,632,042
Noncontrolling interests (5,182) (3,693)
Total equity 2,828,618 2,628,349
Total liabilities and equity 23,028,863 22,646,160
Variable Interest Entity, Primary Beneficiary    
Assets:    
Loans and accrued interest receivable (net of allowance for loan losses of $145,719 and $175,698, respectively) 19,935,821 20,132,996
Cash and cash equivalents:    
Restricted cash 554,638 499,223
Liabilities:    
Bonds and notes payable 19,166,839 19,355,375
Common stock:    
Accrued interest payable and other liabilities 82,485 83,127
Net assets of consolidated education and other lending variable interest entities 1,241,135 1,193,717
Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 27,494,942 shares and 27,193,154 shares, respectively    
Common stock:    
Common stock 275 272
Class B, convertible, $0.01 par value. Authorized 60,000,000 shares; issued and outstanding 11,054,171 shares and 11,155,571 shares, respectively    
Common stock:    
Common stock $ 111 $ 112
v3.21.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Allowance for loan losses $ 145,719 $ 175,698
Allowance for doubtful accounts $ 1,405 $ 1,824
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized shares (in shares) 50,000,000 50,000,000
Preferred stock, issued shares (in shares) 0 0
Preferred stock, outstanding shares (in shares) 0 0
Common Class A    
Par value (in dollars per share) $ 0.01 $ 0.01
Shares authorized (in shares) 600,000,000 600,000,000
Shares issued (in shares) 27,494,942 27,193,154
Shares outstanding (in shares) 27,494,942 27,193,154
Common Class B    
Par value (in dollars per share) $ 0.01 $ 0.01
Shares authorized (in shares) 60,000,000 60,000,000
Shares issued (in shares) 11,054,171 11,155,571
Shares outstanding (in shares) 11,054,171 11,155,571
v3.21.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Interest income:        
Loan interest $ 122,005 $ 146,140 $ 246,123 $ 327,933
Investment interest 11,578 5,743 16,563 13,141
Total interest income 133,583 151,883 262,686 341,074
Interest expense:        
Interest on bonds and notes payable and bank deposits 49,991 85,248 77,764 219,366
Net interest income 83,592 66,635 184,922 121,708
Less provision (negative provision) for loan losses 374 2,999 (16,674) 79,297
Net interest income after provision for loan losses 83,218 63,636 201,596 42,411
Other income/expense:        
Other 22,921 60,127 18,317 68,408
Gain on sale of loans 15,271 0 15,271 18,206
Impairment expense and provision for beneficial interests, net 500 332 (1,936) 34,419
Derivative market value adjustments and derivative settlements, net (6,989) 1,910 27,516 (14,455)
Total other income/expense 219,499 251,049 458,611 441,676
Cost of services:        
Cost of services 21,676 21,119 48,728 49,506
Operating expenses:        
Salaries and benefits 118,968 119,247 234,759 239,125
Depreciation and amortization 20,236 29,393 40,419 57,041
Other expenses 32,587 37,052 69,286 80,439
Total operating expenses 171,791 185,692 344,464 376,605
Income before income taxes 109,250 107,874 267,015 57,976
Income tax expense (26,237) (21,264) (61,098) (11,131)
Net income 83,013 86,610 205,917 46,845
Net loss (income) attributable to noncontrolling interests 854 (128) 1,548 (895)
Net income attributable to Nelnet, Inc. $ 83,867 $ 86,482 $ 207,465 $ 45,950
Earnings per common share:        
Net income attributable to Nelnet, Inc. shareholders - basic (in dollars per share) $ 2.16 $ 2.21 $ 5.36 $ 1.16
Net income attributable to Nelnet, Inc. shareholders - diluted (in dollars per share) $ 2.16 $ 2.21 $ 5.36 $ 1.16
Weighted-average common shares outstanding - basic (in shares) 38,741,486 39,203,404 38,672,902 39,579,459
Weighted-average common shares outstanding - diluted (in shares) 38,741,486 39,203,404 38,672,902 39,579,459
Loan servicing and systems        
Other income/expense:        
Revenue $ 112,094 $ 111,042 $ 223,611 $ 223,778
Education technology, services, and payment processing        
Other income/expense:        
Revenue 76,702 59,304 171,960 142,979
Cost of services:        
Cost of services 21,676 15,376 48,728 38,181
Communications services        
Other income/expense:        
Revenue 0 18,998 0 37,179
Cost of services:        
Cost of services $ 0 $ 5,743 $ 0 $ 11,325
v3.21.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Statement of Comprehensive Income [Abstract]        
Net income $ 83,013 $ 86,610 $ 205,917 $ 46,845
Other comprehensive income:        
Net changes related to foreign currency translation adjustments (1) 0 0 0
Net changes related to available-for-sale debt securities:        
Unrealized gains during period, net 2,897 3,236 7,246 221
Reclassification of (gains) losses to net income, net (371) (112) (879) 123
Income tax effect (606) (750) (1,528) (83)
Unrealized gains (losses) during period after reclassifications and tax 1,920 2,374 4,839 261
Other comprehensive income 1,919 2,374 4,839 261
Comprehensive income 84,932 88,984 210,756 47,106
Comprehensive loss (income) attributable to noncontrolling interests 854 (128) 1,548 (895)
Comprehensive income attributable to Nelnet, Inc. $ 85,786 $ 88,856 $ 212,304 $ 46,211
v3.21.2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Cumulative Effect, Period Of Adoption, Adjustment
Preferred stock
Common stock
Common Class A
Common stock
Common Class B
Additional paid-in capital
 Retained earnings
 Retained earnings
Cumulative Effect, Period Of Adoption, Adjustment
Accumulated other comprehensive earnings, net
Noncontrolling interests
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 (loss) 46,845           45,950     895
Other comprehensive income (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 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
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 (loss) 86,610           86,482     128
Other comprehensive income (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
Balance (in shares) at Dec. 31, 2020     0 27,193,154 11,155,571          
Balance at Dec. 31, 2020 2,628,349   $ 0 $ 272 $ 112 3,794 2,621,762   6,102 (3,693)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Issuance of noncontrolling interests 6,888                 6,888
Net income (loss) 205,917           207,465     (1,548)
Other comprehensive income (loss) 4,839               4,839  
Distribution to noncontrolling interests (6,829)                 (6,829)
Cash dividend on Class A and Class B common stock (16,912)           (16,912)      
Issuance of common stock, net of forfeitures (in shares)       231,955            
Issuance of common stock, net of forfeitures 3,915     $ 2   3,913        
Compensation expense for stock based awards 4,859         4,859        
Repurchase of common stock (in shares)       (31,567)            
Repurchase of common stock (2,408)         (2,408) 0      
Conversion of common stock (in shares)       101,400 (101,400)          
Conversion of common stock 0     $ 1 $ (1)          
Balance (in shares) at Jun. 30, 2021     0 27,494,942 11,054,171          
Balance at Jun. 30, 2021 2,828,618   $ 0 $ 275 $ 111 10,158 2,812,315   10,941 (5,182)
Balance (in shares) at Mar. 31, 2021     0 27,367,797 11,154,171          
Balance at Mar. 31, 2021 2,749,101   $ 0 $ 274 $ 112 5,859 2,736,923   9,022 (3,089)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Issuance of noncontrolling interests 5,488                 5,488
Net income (loss) 83,013           83,867     (854)
Other comprehensive income (loss) 1,919               1,919  
Distribution to noncontrolling interests (6,727)                 (6,727)
Cash dividend on Class A and Class B common stock (8,475)           (8,475)      
Issuance of common stock, net of forfeitures (in shares)       32,513            
Issuance of common stock, net of forfeitures 1,824         1,824        
Compensation expense for stock based awards 2,874         2,874        
Repurchase of common stock (in shares)       (5,368)            
Repurchase of common stock (399)         (399)        
Conversion of common stock (in shares)       100,000 (100,000)          
Conversion of common stock 0     $ 1 $ (1)          
Balance (in shares) at Jun. 30, 2021     0 27,494,942 11,054,171          
Balance at Jun. 30, 2021 $ 2,828,618   $ 0 $ 275 $ 111 $ 10,158 $ 2,812,315   $ 10,941 $ (5,182)
v3.21.2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares
3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Common Class A        
Cash dividend on common stock (in dollars per share) $ 0.22 $ 0.20 $ 0.44 $ 0.40
Common Class B        
Cash dividend on common stock (in dollars per share) $ 0.22 $ 0.20 $ 0.44 $ 0.40
v3.21.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Net cash provided by operating activities:    
Net income attributable to Nelnet, Inc. $ 207,465 $ 45,950
Net (loss) income attributable to noncontrolling interests (1,548) 895
Net income 205,917 46,845
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs 76,754 99,282
Loan discount accretion (14,606) (19,196)
Provision (negative provision) for loan losses (16,674) 79,297
Derivative market value adjustments (37,194) 24,513
Proceeds from (payments to) clearinghouse - initial and variation margin, net 38,440 (24,453)
Gain from sale of loans (15,271) (18,206)
Loss (gain) from investments, net 812 (48,402)
Loss (gain) from repurchases of debt, net 695 (403)
Purchases of equity securities - trading, net (19,764) 0
Deferred income tax expense (benefit) 18,173 (14,762)
Non-cash compensation expense 4,980 3,581
(Negative provision) provision for beneficial interests and impairment expense, net (1,936) 34,419
Increase in loan and investment accrued interest receivable (40,488) (123,276)
(Increase) decrease in accounts receivable (9,446) 41,608
Decrease in other assets, net 32,241 22,992
Decrease in the carrying amount of ROU asset 3,962 5,948
Decrease in accrued interest payable (23,779) (14,525)
Decrease in other liabilities, net (13,663) (26,817)
Decrease in the carrying amount of lease liability (3,288) (4,829)
Increase (decrease) in due to customers 1,746 (169,217)
Net cash provided by (used in) operating activities 187,611 (105,601)
Cash flows from investing activities:    
Purchases and originations of loans (1,040,573) (872,987)
Purchases of loans from a related party (20,847) (75,118)
Net proceeds from loan repayments, claims, and capitalized interest 1,047,645 1,800,286
Proceeds from sale of loans 65,224 90,465
Purchases of available-for-sale securities (363,485) (112,675)
Proceeds from sales of available-for-sale securities 38,511 23,372
Proceeds from and sale of beneficial interest in loan securitizations 19,077 21,765
Purchases of other investments (128,011) (117,598)
Proceeds from other investments 167,821 6,770
Purchases of property and equipment (28,784) (46,994)
Net cash (used in) provided by investing activities (243,422) 717,286
Cash flows from financing activities:    
Payments on bonds and notes payable (1,073,523) (2,073,710)
Proceeds from issuance of bonds and notes payable 1,114,821 1,252,360
Payments of debt issuance costs (3,035) (5,863)
Increase in bank deposits, net 148,208 0
Dividends paid (16,912) (15,679)
Repurchases of common stock (2,408) (68,527)
Proceeds from issuance of common stock 689 781
Acquisition of noncontrolling interest 0 (2,000)
Issuance of noncontrolling interests 7,480 0
Distribution to noncontrolling interests (423) (333)
Net cash provided by (used in) financing activities 174,897 (912,971)
Effect of exchange rate changes on cash (108) 0
Net increase (decrease) in cash, cash equivalents, and restricted cash 118,978 (301,286)
Cash, cash equivalents, and restricted cash, beginning of period 958,395 1,222,601
Cash, cash equivalents, and restricted cash, end of period 1,077,373 921,315
Supplemental disclosures of cash flow information:    
Cash disbursements made for interest 78,904 209,170
Cash disbursements made for income taxes, net of refunds and credits received [1] 14,229 7,949
Cash disbursements made for operating leases 4,096 5,442
Non-cash operating, investing, and financing activity:    
ROU assets obtained in exchange for lease obligations 823 3,265
Receipt of beneficial interest in consumer loan securitizations 19,280 38,490
Distribution to noncontrolling interests 6,406 33
Issuance of noncontrolling interests $ 592 $ 0
[1] The Company utilized $22.0 million and $18.3 million of federal and state tax credits related primarily to renewable energy during the six months ended June 30, 2021 and 2020, respectively.
v3.21.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2021
Jun. 30, 2020
Statement of Cash Flows [Abstract]    
Federal and state tax credit utilized $ 22,000 $ 18,300
Cash and cash equivalents:    
Total cash and cash equivalents 212,989 67,540
Restricted cash 616,711 585,236
Restricted cash - due to customers 247,673 268,539
Cash, cash equivalents, and restricted cash $ 1,077,373 $ 921,315
v3.21.2
Basis of Financial Reporting
6 Months Ended
Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Financial Reporting Basis of Financial ReportingThe accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2020 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results for the year ending December 31, 2021. The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the "2020 Annual Report").
v3.21.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses
6 Months Ended
Jun. 30, 2021
Receivables [Abstract]  
Loans and Accrued Interest Receivable and Allowance for Loan Losses Loans and Accrued Interest Receivable and Allowance for Loan Losses
Loans and accrued interest receivable consisted of the following:
As ofAs of
 June 30, 2021December 31, 2020
Non-Nelnet Bank:
Federally insured student loans:
Stafford and other$4,420,716 4,383,000 
Consolidation14,518,148 14,746,173 
Total18,938,864 19,129,173 
Private education loans350,094 320,589 
Consumer loans42,767 109,346 
Non-Nelnet Bank loans19,331,725 19,559,108 
Nelnet Bank:
Federally insured student loans97,167 — 
Private education loans93,404 17,543 
Nelnet Bank loans190,571 17,543 
 
Accrued interest receivable834,989 794,611 
Loan discount, net of unamortized loan premiums and deferred origination costs(23,896)(9,908)
Allowance for loan losses:
Non-Nelnet Bank:
Federally insured loans(120,802)(128,590)
Private education loans(19,403)(19,529)
Consumer loans(4,702)(27,256)
Non-Nelnet Bank allowance for loan losses(144,907)(175,375)
Nelnet Bank:
Federally insured loans(245)— 
Private education loans(567)(323)
Nelnet Bank allowance for loan losses(812)(323)
 $20,187,670 20,185,656 
On May 14, 2021, the Company sold $77.4 million (par value) of consumer loans to an unrelated third party who securitized such loans. The Company recognized a gain of $15.3 million (pre-tax) as part of this transaction. As partial consideration received for the consumer loans sold, the Company received a 24.5 percent residual interest in the consumer loan securitization that is included in "investments" on the Company's consolidated balance sheet.
Activity in the Allowance for Loan Losses
The following table presents the activity in the allowance for loan losses by portfolio segment.
Balance at beginning of periodImpact of ASC 326 adoptionProvision (negative provision) for loan lossesCharge-offsRecoveriesInitial allowance on loans purchased with credit deterioration (a)Loan salesBalance at end of period
 Three months ended June 30, 2021
Non-Nelnet Bank
Federally insured loans$121,846 — (397)(1,172)— 525 — 120,802 
Private education loans20,670 — (1,004)(403)139 — 19,403 
Consumer loans14,134 — 1,706 (1,464)235 — (9,909)4,702 
Nelnet Bank
Federally insured loans— — 245 — — — — 245 
Private education loans744 — (176)— — — (1)567 
$157,394 — 374 (3,039)374 525 (9,909)145,719 
Three months ended June 30, 2020
Non-Nelnet Bank
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 
Six months ended June 30, 2021
Non-Nelnet Bank
Federally insured loans$128,590 — (7,880)(1,233)— 1,325 — 120,802 
Private education loans19,529 — 427 (896)341 — 19,403 
Consumer loans27,256 — (9,712)(3,414)481 — (9,909)4,702 
Nelnet Bank
Federally insured loans— — 245 — — — — 245 
Private education loans323 — 246 — — — (2)567 
$175,698 — (16,674)(5,543)822 1,325 (9,909)145,719 
Six months ended June 30, 2020
Non-Nelnet Bank
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 
a) During the three months ended June 30, 2021 and 2020, and six months ended June 30, 2021 and 2020, the Company acquired $34.7 million (par value), $292.7 million (par value), $88.7 million (par value), and $583.9 million (par value), respectively, of federally insured rehabilitation loans that met the definition of PCD loans when they were purchased by the Company.
Beginning in March 2020, the coronavirus disease 2019 ("COVID-19") pandemic has caused significant disruptions in the U.S. and world economies. Apart from the impact of the adoption of ASC 326 effective January 1, 2020, the Company’s allowance for loan losses increased during the first quarter of 2020 primarily as a result of the COVID-19 pandemic and its effects on economic conditions.
The Company recorded a negative provision for loan losses for its federally insured and consumer loan portfolios for the three months ended March 31, 2021 due to management's estimate of certain continued improved economic conditions (including the improvement in certain macroeconomic variables (unemployment rates, gross domestic product, and consumer price index) used in the Company's loan loss models) as of March 31, 2021 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of December 31, 2020. The Company recorded a provision expense on its private education loan portfolio during the three months ended March 31, 2021 as a result of an increase of loans in forbearance, which was partially offset by management's estimate of certain continued improved economic conditions as of
March 31, 2021 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of December 31, 2020.
During the second quarter of 2021, the Company recorded a negative provision for loan losses for its federally insured and private education loan portfolios due to management's estimate of certain continued improved economic conditions as of June 30, 2021 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of March 31, 2021. These amounts were partially offset due to the Company establishing an initial allowance for federally insured and private education loans acquired during the period. The Company recorded a provision for loan losses on its consumer loan portfolio during the second quarter of 2021 as a result of establishing an initial allowance for consumer loans acquired during the period, which was partially offset by management's estimate of certain continued improved economic conditions as of June 30, 2021 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of March 31, 2021.
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, 2021As of December 31, 2020As of June 30, 2020
Federally insured loans - Non-Nelnet Bank:    
Loans in-school/grace/deferment $955,227 5.0 % $1,036,028 5.4 % $936,746 4.8 %
Loans in forbearance 2,079,368 11.0  1,973,175 10.3  5,370,466 27.7 
Loans in repayment status:  
Loans current13,995,297 88.0 %13,683,054 84.9 %12,984,175 99.3 %
Loans delinquent 31-60 days580,602 3.7 633,411 3.9 2,057 — 
Loans delinquent 61-90 days262,353 1.6 307,936 1.9 165 — 
Loans delinquent 91-120 days104,124 0.7 800,257 5.0 23 — 
Loans delinquent 121-270 days398,965 2.5 674,975 4.2 101 — 
Loans delinquent 271 days or greater562,928 3.5 20,337 0.1 94,138 0.7 
Total loans in repayment15,904,269 84.0 100.0 %16,119,970 84.3 100.0 %13,080,659 67.5 100.0 %
Total federally insured loans18,938,864 100.0 % 19,129,173 100.0 % 19,387,871 100.0 %
Accrued interest receivable830,973 791,453 853,473 
Loan discount, net of unamortized premiums and deferred origination costs(24,129)(14,505)(19,116)
Allowance for loan losses(120,802)(128,590)(144,829)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$19,624,906 $19,777,531 $20,077,399 
Private education loans - Non-Nelnet Bank:
Loans in-school/grace/deferment $10,195 2.9 %$5,049 1.6 %$3,971 1.3 %
Loans in forbearance 3,884 1.1 2,359 0.7 21,890 7.5 
Loans in repayment status:
Loans current330,097 98.3 %310,036 99.0 %265,720 99.4 %
Loans delinquent 31-60 days3,962 1.2 1,099 0.4 680 0.2 
Loans delinquent 61-90 days818 0.2 675 0.2 244 0.1 
Loans delinquent 91 days or greater1,138 0.3 1,371 0.4 713 0.3 
Total loans in repayment336,015 96.0 100.0 %313,181 97.7 100.0 %267,357 91.2 100.0 %
Total private education loans350,094 100.0 % 320,589 100.0 % 293,218 100.0 %
Accrued interest receivable2,360 2,131 1,961 
Loan discount, net of unamortized premiums(1,547)2,691 813 
Allowance for loan losses(19,403)(19,529)(25,535)
Total private education loans and accrued interest receivable, net of allowance for loan losses$331,504 $305,882 $270,457 
As of June 30, 2021As of December 31, 2020As of June 30, 2020
Consumer loans - Non-Nelnet Bank:
Loans in deferment$38 0.1 %$829 0.8 %$3,274 2.2 %
Loans in repayment status:
Loans current41,039 96.1 %105,650 97.4 %142,540 97.6 %
Loans delinquent 31-60 days387 0.9 954 0.9 938 0.7 
Loans delinquent 61-90 days484 1.1 804 0.7 1,078 0.7 
Loans delinquent 91 days or greater819 1.9 1,109 1.0 1,478 1.0 
Total loans in repayment42,729 99.9 100.0 %108,517 99.2 100.0 %146,034 97.8 %100.0 %
Total consumer loans42,767 100.0 %109,346 100.0 %149,308 100.0 %
Accrued interest receivable328 1,001 1,446 
Loan premium377 1,640 1,344 
Allowance for loan losses(4,702)(27,256)(39,081)
Total consumer loans and accrued interest receivable, net of allowance for loan losses$38,770 $84,731 $113,017 
Federally insured loans - Nelnet Bank:
Loans in-school/grace/deferment$103 0.1 %
Loans in forbearance1,026 1.1 
Loans in repayment status:
Loans current95,402 99.3 %
Loans delinquent 31-60 days593 0.6 
Loans delinquent 61-90 days43 0.1 
Loans delinquent 91-120 days— — 
Loans delinquent 121-270 days— — 
Loans delinquent 271 days or greater— — 
Total loans in repayment96,038 98.8 100.0 %
Total federally insured loans97,167 100.0 %
Accrued interest receivable1,179 
Loan premium29 
Allowance for loan losses(245)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$98,130 
Private education loans - Nelnet Bank:
Loans in-school/grace/deferment$82 0.1 %$— — %
Loans in forbearance133 0.1 29 0.2 
Loans in repayment status:
Loans current93,189 100.0 %17,514 100.0 %
Loans delinquent 31-60 days— — — — 
Loans delinquent 61-90 days— — — — 
Loans delinquent 91 days or greater— — — — 
Total loans in repayment93,189 99.8 100.0 %17,514 99.8 100.0 %
Total private education loans93,404 100.0 %17,543 100.0 %
Accrued interest receivable149 26 
Deferred origination costs1,374 266 
Allowance for loan losses(567)(323)
Total private education loans and accrued interest receivable, net of allowance for loan losses$94,360 $17,512 

Nonaccrual Status
The Company does not place federally insured loans on nonaccrual status due to the government guaranty. The amortized cost of private and consumer loans on nonaccrual status, as well as the allowance for loan losses related to such loans, as of December 31, 2020 and June 30, 2021, was not material.
Amortized Cost Basis by Origination Year
The following table presents the amortized cost of the Company's private education and consumer loans by loan status and delinquency amount as of June 30, 2021 based on year of origination. Effective July 1, 2010, no new loan originations can be made under the Federal Family Education Loan Program (the "FFEL Program" or "FFELP") and all new federal loan originations must be made under the Federal Direct Loan Program. As such, all the Company’s federally insured loans were originated prior to July 1, 2010.
Six months ended June 30, 20212020201920182017Prior yearsTotal
Private education loans - Non-Nelnet Bank:
Loans in school/grace/deferment$810 2,306 4,744 — — 2,335 10,195 
Loans in forbearance— 299 755 173 — 2,657 3,884 
Loans in repayment status:
Loans current1,885 90,009 60,694 481 — 177,028 330,097 
Loans delinquent 31-60 days— 161 373 — — 3,428 3,962 
Loans delinquent 61-90 days— — — — — 818 818 
Loans delinquent 91 days or greater— — — — — 1,138 1,138 
Total loans in repayment1,885 90,170 61,067 481 — 182,412 336,015 
Total private education loans$2,695 92,775 66,566 654 — 187,404 350,094 
Accrued interest receivable2,360 
Loan discount, net of unamortized premiums