NELNET INC, 10-K filed on 2/28/2022
Annual Report
v3.22.0.1
Cover - USD ($)
12 Months Ended
Dec. 31, 2021
Jan. 31, 2022
Jun. 30, 2021
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Current Fiscal Year End Date --12-31    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 1,468,829,489
Documents Incorporated by Reference Portions of the registrant’s definitive Proxy Statement to be filed for its 2022 Annual Meeting of Shareholders, scheduled to be held May 19, 2022, are incorporated by reference into Part III of this Form 10-K.    
Entity Central Index Key 0001258602    
Amendment Flag false    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Class A      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   27,101,036  
Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   10,674,892  
v3.22.0.1
Audit Information
12 Months Ended
Dec. 31, 2021
Audit Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Lincoln, Nebraska
Auditor Firm ID 185
v3.22.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Assets:    
Loans and accrued interest receivable $ 18,335,197 $ 20,185,656
Cash and cash equivalents:    
Cash and cash equivalents - not held at a related party 30,128 33,292
Cash and cash equivalents - held at a related party 95,435 87,957
Total cash and cash equivalents 125,563 121,249
Investments 1,588,919 992,940
Restricted cash 741,981 553,175
Restricted cash - due to customers 326,645 283,971
Accounts receivable (net of allowance for doubtful accounts of $1,160 and $1,824, respectively) 163,315 76,460
Goodwill 142,092 142,092
Intangible assets, net 52,029 75,070
Property and equipment, net 119,413 123,527
Other assets 82,887 92,020
Total assets 21,678,041 22,646,160
Liabilities:    
Bonds and notes payable 17,631,089 19,320,726
Accrued interest payable 4,566 28,701
Bank deposits 344,315 54,633
Other liabilities 379,231 312,280
Due to customers 366,002 301,471
Total liabilities 18,725,203 20,017,811
Commitments and contingencies
Nelnet, Inc. shareholders' equity:    
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding 0 0
Common stock:    
Additional paid-in capital 1,000 3,794
Retained earnings 2,940,523 2,621,762
Accumulated other comprehensive earnings, net 9,304 6,102
Total Nelnet, Inc. shareholders' equity 2,951,206 2,632,042
Noncontrolling interests 1,632 (3,693)
Total equity 2,952,838 2,628,349
Total liabilities and equity 21,678,041 22,646,160
Class A    
Common stock:    
Common stock 272 272
Class B    
Common stock:    
Common stock 107 112
Variable Interest Entity, Primary Beneficiary    
Assets:    
Loans and accrued interest receivable 17,981,414 20,132,996
Cash and cash equivalents:    
Restricted cash 674,073 499,223
Liabilities:    
Bonds and notes payable 17,462,456 19,355,375
Common stock:    
Accrued interest payable and other liabilities (36,276) (83,127)
Net assets of consolidated education and other lending variable interest entities $ 1,156,755 $ 1,193,717
v3.22.0.1
Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Allowance for loan losses $ 127,113 $ 175,698
Allowance for doubtful accounts $ 1,160 $ 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
Class A    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 600,000,000 600,000,000
Common stock, shares issued (in shares) 27,239,654 27,193,154
Common stock, shares outstanding (in shares) 27,239,654 27,193,154
Class B    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 60,000,000 60,000,000
Common stock, shares issued (in shares) 10,676,642 11,155,571
Common stock, shares outstanding (in shares) 10,676,642 11,155,571
v3.22.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Interest income:      
Loan interest $ 482,337 $ 595,113 $ 914,256
Investment interest 41,498 24,543 34,421
Total interest income 523,835 619,656 948,677
Interest expense:      
Interest on bonds and notes payable and bank deposits 176,233 330,071 699,327
Net interest income 347,602 289,585 249,350
Less (negative provision) provision for loan losses (12,426) 63,360 39,000
Net interest income after provision for loan losses 360,028 226,225 210,350
Other income/expense:      
Other 78,681 57,561 47,918
Gain on sale of loans 18,715 33,023 17,261
Gain from deconsolidation of ALLO 0 258,588 0
Impairment expense and provision for beneficial interests, net (16,360) (24,723) 0
Derivative market value adjustments and derivative settlements, net 71,446 (24,465) (30,789)
Total other income/expense 977,079 1,110,384 831,245
Cost of services:      
Cost of services 108,660 105,018 102,026
Operating expenses:      
Salaries and benefits 507,132 501,832 463,503
Depreciation and amortization 73,741 118,699 105,049
Other expenses 145,469 160,574 194,272
Total operating expenses 726,342 781,105 762,824
Income before income taxes 502,105 450,486 176,745
Income tax expense 115,822 100,860 35,451
Net income 386,283 349,626 141,294
Net loss attributable to noncontrolling interests 7,003 2,817 509
Net income attributable to Nelnet, Inc. $ 393,286 $ 352,443 $ 141,803
Earnings per common share:      
Net income attributable to Nelnet, Inc. shareholders - basic (in dollars per share) $ 10.20 $ 9.02 $ 3.54
Net income attributable to Nelnet, Inc. shareholders - diluted (in dollars per share) $ 10.20 $ 9.02 $ 3.54
Weighted-average common shares outstanding - basic (in shares) 38,572,801 39,059,588 40,047,402
Weighted-average common shares outstanding - diluted (in shares) 38,572,801 39,059,588 40,047,402
Loan servicing and systems      
Other income/expense:      
Revenue $ 486,363 $ 451,561 $ 455,255
Education technology, services, and payment processing revenue      
Other income/expense:      
Revenue 338,234 282,196 277,331
Cost of services:      
Cost of services 108,660 82,206 81,603
Communications services      
Other income/expense:      
Revenue 0 76,643 64,269
Cost of services:      
Cost of services $ 0 $ 22,812 $ 20,423
v3.22.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net income $ 386,283 $ 349,626 $ 141,294
Other comprehensive income (loss):      
Net changes related to foreign currency translation adjustments (10) 0 0
Net changes related to available-for-sale debt securities:      
Unrealized holding gains (losses) arising during period, net 6,921 6,637 (1,199)
Reclassification of gains recognized in net income, net of losses (2,695) (2,521) 0
Income tax effect (1,014) (986) 288
Unrealized gains (losses) during period after reclassifications and tax 3,212 3,130 (911)
Other comprehensive income (loss) 3,202 3,130 (911)
Comprehensive income 389,485 352,756 140,383
Comprehensive loss attributable to noncontrolling interests 7,003 2,817 509
Comprehensive income attributable to Nelnet, Inc. $ 396,488 $ 355,573 $ 140,892
v3.22.0.1
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Preferred stock shares
Common stock shares
Class A
Common stock shares
Class B
Additional paid-in capital
Retained earnings
Retained earnings
Cumulative Effect, Period of Adoption, Adjustment
Accumulated other comprehensive earnings
Noncontrolling interests
Noncontrolling interests
Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2018     0 28,798,464 11,459,641            
Beginning 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 4,756                 4,756  
Net income (loss) 141,294           141,803     (509)  
Other comprehensive income (loss) (911)               (911)    
Distribution to noncontrolling interests (4,103)                 (4,103)  
Cash dividends on Class A and Class B common stock (29,485)           (29,485)        
Issuance of common stock, net of forfeitures (in shares)       198,272              
Issuance of common stock, net of forfeitures 4,851     $ 2   4,849          
Compensation expense for stock based awards 6,401         6,401          
Repurchase of common stock (in shares)       (726,273)              
Repurchase of common stock (40,411)     $ (7)   (6,157) (34,247)        
Conversion of common stock (in shares)       188,032 (188,032)            
Conversion of common stock 0     $ 2 $ (2)            
Ending balance at Dec. 31, 2019 $ 2,391,094 $ (18,868) $ 0 $ 285 $ 113 5,715 2,377,627 $ (18,868) 2,972 4,382  
Ending balance (in shares) at Dec. 31, 2019     0 28,458,495 11,271,609            
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Accounting Standards Update [Extensible Enumeration] Accounting Standards Update 2016-13 [Member]                    
Issuance of noncontrolling interests $ 219,265                 219,265  
Net income (loss) 349,626           352,443     (2,817)  
Other comprehensive income (loss) 3,130               3,130    
Distribution to noncontrolling interests (16,123)                 (16,123)  
Cash dividends on Class A and Class B common stock (31,778)           (31,778)        
Issuance of common stock, net of forfeitures (in shares)       213,015              
Issuance of common stock, net of forfeitures 5,628     $ 2   5,626          
Compensation expense for stock based awards 7,290         7,290          
Repurchase of common stock (in shares)       (1,594,394)              
Repurchase of common stock (73,358)     $ (16)   (14,837) (58,505)        
Conversion of common stock (in shares)       116,038 (116,038)            
Conversion of common stock 0     $ 1 $ (1)            
Acquisition of noncontrolling interest (600)           (375)     (225)  
Deconsolidation of noncontrolling interest - ALLO (208,175)                 (208,175)  
Other equity transactions, net of costs incurred to sell shares of subsidiary 1,218           1,218        
Ending balance at Dec. 31, 2020 2,628,349   $ 0 $ 272 $ 112 3,794 2,621,762   6,102 (3,693)  
Ending balance (in shares) at Dec. 31, 2020     0 27,193,154 11,155,571            
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of noncontrolling interests 61,087                 61,087  
Net income (loss) 386,283           393,286     (7,003)  
Other comprehensive income (loss) 3,202               3,202    
Distribution to noncontrolling interests (48,759)                 (48,759)  
Cash dividends on Class A and Class B common stock (34,457)           (34,457)        
Issuance of common stock, net of forfeitures (in shares)       280,845              
Issuance of common stock, net of forfeitures 4,829     $ 2   4,827          
Compensation expense for stock based awards 10,415         10,415          
Repurchase of common stock (in shares)       (713,274)              
Repurchase of common stock (58,111)     $ (7)   (18,036) (40,068)        
Conversion of common stock (in shares)       478,929 (478,929)            
Conversion of common stock 0     $ 5 $ (5)            
Ending balance at Dec. 31, 2021 $ 2,952,838   $ 0 $ 272 $ 107 $ 1,000 $ 2,940,523   $ 9,304 $ 1,632  
Ending balance (in shares) at Dec. 31, 2021     0 27,239,654 10,676,642            
v3.22.0.1
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Class A      
Cash dividend on Class A and Class B common stock (in dollars per share) $ 0.90 $ 0.82 $ 0.74
Class B      
Cash dividend on Class A and Class B common stock (in dollars per share) $ 0.90 $ 0.82 $ 0.74
v3.22.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Cash Flows [Abstract]      
Net income attributable to Nelnet, Inc. $ 393,286 $ 352,443 $ 141,803
Net loss attributable to noncontrolling interests (7,003) (2,817) (509)
Net income 386,283 349,626 141,294
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs 132,325 198,473 192,662
Loan discount accretion (7,990) (35,285) (35,824)
(Negative provision) provision for loan losses (12,426) 63,360 39,000
Derivative market value adjustments (92,813) 28,144 76,195
Payments to terminate derivative instruments, net 0 0 (12,530)
Proceeds from (payments to) clearinghouse - initial and variation margin, net 91,294 (26,747) (70,685)
Gain from deconsolidation of ALLO, including cash impact 0 (287,579) 0
Gain from sale of loans (18,715) (33,023) (17,261)
Gain from investments, net (3,811) (14,055) (3,095)
Loss on (gain from) repurchases and extinguishments of debt, net 6,775 (1,924) 16,553
Purchases of equity securities, net (42,916) 0 0
Deferred income tax expense (benefit) 55,622 7,974 (7,265)
Non-cash compensation expense 10,673 16,739 6,781
Provision for beneficial interests and impairment expense, net 16,360 24,723 0
Other 0 186 584
Decrease (increase) in loan and investment accrued interest receivable 1,378 (61,090) (54,586)
(Increase) decrease in accounts receivable (86,982) 40,880 (55,949)
Decrease (increase) in other assets, net 39,439 59,182 (19,858)
Decrease in the carrying amount of ROU asset, net 7,170 11,594 8,793
Decrease in accrued interest payable (24,135) (18,584) (14,394)
Increase in other liabilities, net 29,775 35,907 49,100
Decrease in the carrying amount of lease liability (6,978) (9,401) (8,678)
Increase (decrease) in due to customers 64,539 (136,285) 68,078
Net cash provided by operating activities 544,867 212,815 298,915
Cash flows from investing activities:      
Purchases and originations of loans (1,318,605) (1,459,696) (1,906,669)
Purchases of loans from a related party (22,678) (147,539) (101,538)
Net proceeds from loan repayments, claims, and capitalized interest 3,103,776 2,644,347 3,462,391
Proceeds from sale of loans 85,906 136,126 196,564
Purchases of available-for-sale securities (734,817) (471,510) (1,010)
Proceeds from sales of available-for-sale securities 160,976 173,784 105
Proceeds from and sale of beneficial interest in loan securitizations, net 40,602 44,213 6,593
Purchases of other investments (253,894) (168,216) (103,250)
Proceeds from other investments 191,821 13,011 63,879
Purchases of held-to-maturity debt securities (8,200) 0 0
Purchases of property and equipment (58,952) (113,312) (92,499)
Business acquisitions, net of cash and restricted cash acquired 0 (29,989) 0
Net cash provided by investing activities 1,185,935 621,219 1,524,566
Cash flows from financing activities:      
Payments on bonds and notes payable (3,683,770) (3,129,485) (4,698,878)
Proceeds from issuance of bonds and notes payable 1,947,559 1,884,689 2,997,972
Payments of debt issuance costs (7,093) (8,674) (14,406)
Payments to extinguish debt 0 0 (14,030)
Increase in bank deposits, net 289,682 54,633 0
Dividends paid (34,457) (31,778) (29,485)
Repurchases of common stock (58,111) (73,358) (40,411)
Proceeds from issuance of common stock 1,465 1,653 1,552
Acquisition of noncontrolling interest 0 (600) 0
Issuance of noncontrolling interests 50,716 205,768 4,650
Distribution to noncontrolling interests (878) (1,088) (235)
Net cash used in financing activities (1,494,887) (1,098,240) (1,793,271)
Effect of exchange rate changes on cash (121) 0 0
Net increase (decrease) in cash, cash equivalents, and restricted cash 235,794 (264,206) 30,210
Cash, cash equivalents, and restricted cash, beginning of period 958,395 1,222,601 1,192,391
Cash, cash equivalents, and restricted cash, end of period 1,194,189 958,395 1,222,601
Supplemental disclosures of cash flow information:      
Cash disbursements made for interest 152,173 301,570 657,436
Cash disbursements made for income taxes, net of refunds and credits received [1] 18,659 29,685 17,672
Cash disbursements made for operating leases 7,970 11,488 9,966
Noncash operating, investing, and financing activity:      
ROU assets obtained in exchange for lease obligations 4,228 4,282 8,731
Receipt of beneficial interest in consumer loan securitizations 23,506 52,501 39,780
Distribution to noncontrolling interests 47,881 15,035 3,868
Issuance of noncontrolling interests 10,371 4,132 0
Cash and cash equivalents:      
Total cash and cash equivalents 125,563 121,249 133,906
Restricted cash 741,981 553,175 650,939
Restricted cash - due to customers 326,645 283,971 437,756
Cash, cash equivalents, and restricted cash $ 1,194,189 $ 958,395 $ 1,222,601
[1] For 2021, 2020, and 2019 the Company utilized $34.1 million, $53.9 million, and $31.8 million of federal and state tax credits, respectively, related primarily to renewable energy.
v3.22.0.1
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Cash Flows [Abstract]      
Tax credit utilized in period $ 34.1 $ 53.9 $ 31.8
v3.22.0.1
Description of Business
12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business
Nelnet, Inc. and its subsidiaries (“Nelnet” or the “Company”) is a diverse, innovative company with a purpose to serve others and a vision to make dreams possible. The largest operating businesses engage in loan servicing and education technology, services, and payment processing, and the Company also has a significant investment in communications. A significant portion of the Company's revenue is net interest income earned on a portfolio of federally insured student loans. The Company also makes investments to further diversify the Company both within and outside of its historical core education-related businesses, including, but not limited to, investments in early-stage and emerging growth companies, real estate, and renewable energy (solar). Substantially all revenue from external customers is earned, and all long-lived assets are located, in the United States.
The Company was formed as a Nebraska corporation in 1978 to service federal student loans for two local banks. The Company built on this initial foundation as a servicer to become a leading originator, holder, and servicer of federal student loans, principally consisting of loans originated under the Federal Family Education Loan Program (“FFELP” or “FFEL Program”) of the U.S. Department of Education (the “Department”).
The Health Care and Education Reconciliation Act of 2010 (the “Reconciliation Act of 2010”) discontinued loan originations under the FFEL Program, effective July 1, 2010, and requires that all new federal student loan originations be made directly by the Department through the Federal Direct Loan Program. This law does not alter or affect the terms and conditions of existing FFELP loans. As a result of this law, the Company no longer originates FFELP loans. However, a significant portion of the Company’s income continues to be derived from its existing FFELP student loan portfolio. Interest income on the Company’s existing FFELP loan portfolio will decline over time as the portfolio is paid down. Since all FFELP loans will eventually run off, a key objective of the Company is to reposition itself for the post-FFELP environment. To reduce its reliance on interest income on student loans, the Company has expanded its services and products. This expansion has been accomplished through internal growth and innovation as well as business and certain investment acquisitions. The Company is also actively expanding its private education and consumer loan portfolios, and in November 2020 launched Nelnet Bank (as further discussed below). In addition, the Company has been servicing federally owned student loans for the Department since 2009.
The Company's reportable operating segments include:
Loan Servicing and Systems (“LSS”)
Education Technology, Services, and Payment Processing (“ETS&PP”)
Communications
Asset Generation and Management (“AGM”)
Nelnet Bank
A description of each reportable operating segment is included below. See note 15 for additional information on the Company's segment reporting.
Loan Servicing and Systems
The primary service offerings of the Loan Servicing and Systems operating segment (known as Nelnet Diversified Services (“NDS”)) include:
Servicing federally-owned student loans for the Department of Education
Servicing FFELP loans
Originating and servicing private education and consumer loans
Backup servicing for FFELP, private education, and consumer loans
Providing student loan servicing software and other information technology products and services
Customer acquisition, management services, and backup servicing for community solar developers
Providing outsourced services including call center, processing, and technology services
LSS provides for the servicing of the Company's student loan portfolio and the portfolios of third parties. The loan servicing activities include loan conversion activities, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliations, and claim processing. These activities are performed internally for the Company's portfolio, in addition to generating external fee revenue when performed for third-party clients. In addition, LSS provides backup servicing to third-parties, which allows a transfer of the customer’s servicing volume to the Company’s platform and becoming a full servicing customer if their existing servicer cannot perform their duties.
Nelnet Servicing, LLC (“Nelnet Servicing”) and Great Lakes Educational Loan Services, Inc. (“Great Lakes”), subsidiaries of the Company, are two of the current seven private sector entities that have student loan servicing contracts with the Department to provide servicing capacity for loans owned by the Department.
This segment also provides student loan servicing software, which is used internally and licensed to third-party student loan holders and servicers. These software systems have been adapted so that they can be offered as hosted servicing software solutions usable by third parties to service various types of student loans, including Federal Direct Loan Program and FFEL Program loans.
This segment also provides business process outsourcing primarily specializing in contact center management. The contact center solutions and services include taking inbound calls, helping with outreach campaigns and sales, interacting with customers through multi-channels, and processing and technology services.
Education Technology, Services, and Payment Processing
The Education Technology, Services, and Payment Processing segment (known as Nelnet Business Services (“NBS”)) provides education services, payment technology, and community management solutions for K-12 schools, higher education institutions, churches, and businesses in the United States and internationally. NBS provides service and technology under five divisions as follows:
FACTS provides solutions that elevate the education experience in the K-12 market for school administrators, teachers, and families. FACTS offers (i) financial management, including tuition payment plans and financial needs assessment (grant and aid); (ii) school administration solutions, including school information system software that automates the flow of information between school administrators, teachers, and parents and includes administrative processes such as scheduling, cafeteria management, attendance, and grade book management; (iii) enrollment and communications, including website design and cost effective admissions software; (iv) advancement (giving management), including a comprehensive donation platform that streamlines donor communications, organizes donor information, and provides access to data analysis and reporting; and (v) education development, including customized professional development and coaching services, educational instruction services, and innovative technology products that aid in teacher and student evaluations.
Nelnet Campus Commerce delivers payment technology to higher education institutions. Nelnet Campus Commerce solutions include (i) tuition management, including tuition payment plans and service and technology for student billings, payments, and refunds; and (ii) integrated commerce including solutions for in-person, online, and mobile payment experiences on campus.
PaymentSpring provides secure payment processing technology. PaymentSpring supports and provides payment processing services, including credit card and electronic transfer, to the other divisions of NBS in addition to other industries and software platforms across the United States.
Nelnet Community Engagement provides faith community engagement, giving management, and learning management services and technologies. Nelnet Community Engagement serves customers in the technology, nonprofit, religious, health care, and professional services industries.
Nelnet International provides its services and technology in more than 50 countries with the largest concentrations in Australia, New Zealand, and the Asia-Pacific region. Nelnet International serves customers in the education, local government, and healthcare industries. Nelnet International’s suite of services include an integrated commerce payment platform, financial management and tuition payment plan services, and a school management platform that provides administrative, information management, financial management, and communication functions for K-12 schools.
Communications
ALLO Communications LLC (“ALLO”) provides pure fiber optic service to homes and businesses for internet, television, and telephone services. ALLO derives its revenue primarily from the sale of communication services to residential, governmental, and business customers in Nebraska and Colorado. Internet and television services include revenue from residential and business customers for subscriptions to ALLO's data and video products. ALLO data services provide high-speed internet access over ALLO's all-fiber network at various symmetrical speeds of up to 1 gigabit per second for residential customers and is capable of providing symmetrical speeds of over 1 gigabit per second for business customers. Telephone services include local and long distance telephone service, hosted PBX services, and other services.
On December 21, 2020 the Company deconsolidated ALLO from the Company’s consolidated financial statements due to ALLO’s recapitalization. The recapitalization of ALLO was not considered a strategic shift in the Company’s involvement with ALLO and ALLO’s results of operations, prior to deconsolidation, are presented by the Company as a reportable operating segment. See note 2, “ALLO Recapitalization,” for a description of this transaction and the Company’s continued involvement.
Asset Generation and Management
The Company's Asset Generation and Management operating segment includes the acquisition, management, and ownership of the Company's loan assets (excluding loan assets held by Nelnet Bank). Substantially all loan assets included in this segment are student loans originated under the FFEL Program, including the Stafford Loan Program, the PLUS Loan program, and loans that reflect the consolidation into a single loan of certain previously separate borrower obligations (“Consolidation” loans). AGM also acquires private education and consumer loans. AGM generates a substantial portion of its earnings from the spread, referred to as loan spread, between the yield it receives on its loan portfolio and the associated costs to finance such portfolio. The loan assets are held in a series of lending subsidiaries and associated securitization trusts designed specifically for this purpose. In addition to the loan spread earned on its portfolio, all costs and activity associated with managing the portfolio, such as servicing of the assets and debt maintenance, are included in this segment.
Nelnet Bank
On November 2, 2020, the Company obtained final approval for federal deposit insurance from the Federal Deposit Insurance Corporation ("FDIC") and for a bank charter from the Utah Department of Financial Institutions ("UDFI") in connection with the establishment of Nelnet Bank, and Nelnet Bank launched operations. Nelnet Bank operates as an internet Utah-chartered industrial bank franchise focused on the private education loan marketplace, with a home office in Salt Lake City, Utah. Nelnet Bank serves and plans to serve a niche market, with a concentration in the private education and unsecured consumer loan markets.
Corporate and Other Activities
Other business activities and operating segments that are not reportable are combined and included in Corporate and Other Activities. Corporate and Other Activities include the following items:
The operating results of Whitetail Rock Capital Management, LLC (“WRCM”), the Company's SEC-registered investment advisor subsidiary
The majority of the Company’s investment activities
Interest expense incurred on unsecured and certain other corporate related debt transactions
Other product and service offerings that are not considered reportable operating segments
Corporate and Other Activities also includes certain corporate activities and overhead functions related to executive management, internal audit, human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services.
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ALLO Recapitalization
12 Months Ended
Dec. 31, 2021
Restructuring and Related Activities [Abstract]  
ALLO Recapitalization ALLO Recapitalization
On October 1, 2020, the Company entered into various agreements with SDC, a third party global digital infrastructure investor, and ALLO, then a majority owned communications subsidiary of the Company, for various transactions contemplated by the parties in connection with a recapitalization and additional funding for ALLO.
The agreements provided for a series of interrelated transactions, whereby on October 15, 2020, ALLO received proceeds of $197.0 million from SDC as the purchase price for the issuance of non-voting preferred membership units of ALLO, and redeemed $160.0 million of non-voting preferred membership units of ALLO held by the Company. On December 21, 2020, the non-voting preferred membership units of ALLO held by SDC automatically converted into voting membership units of ALLO pursuant to the terms of the agreements upon the receipt on December 21, 2020 of the required approvals from applicable regulatory authorities. As a result of such conversion, SDC, the Company, and members of ALLO’s management own approximately 48 percent, 45 percent, and 7 percent, respectively, of the outstanding voting membership interests of ALLO, and the Company deconsolidated ALLO from the Company’s consolidated financial statements.
Upon the deconsolidation of ALLO, the Company recorded its 45 percent voting membership interests in ALLO at fair value, and accounts for such investment under the Hypothetical Liquidation at Book Value (“HLBV”) method of accounting. In addition, the Company recorded its remaining non-voting preferred membership interests in ALLO at fair value, and accounts for such investment as a separate equity investment. The agreements between the Company, SDC, and ALLO provide that they will use commercially reasonable efforts (which expressly excludes requiring ALLO to raise any additional equity financing or sell any assets) to cause ALLO to redeem, on or before April 2024, the remaining preferred membership units of ALLO held by the Company, plus the amount of accrued and unpaid preferred return on such units. The preferred membership units earn a preferred annual return of 6.25 percent.
The voting membership interests and non-voting preferred membership interests of ALLO are included on the consolidated balance sheet in “investments.” See note 7 for additional information.
As a result of the deconsolidation of ALLO on December 21, 2020, the Company recognized a gain of $258.6 million as summarized below.
As of
December 21, 2020
Voting interest/equity method investment - recorded at fair value$132,960 
Preferred membership interest investment - recorded at fair value228,530 
Less: ALLO assets deconsolidated:
Cash and cash equivalents – not held at a related party(299)
Cash and cash equivalents – held at a related party(28,692)
Accounts receivable(4,138)
Goodwill(21,112)
Intangible assets(6,083)
Property and equipment, net(245,295)
Other assets(29,643)
Other liabilities24,185 
Noncontrolling interests208,175 
Gain recognized upon deconsolidation of ALLO$258,588 
The impact to the Company’s 2020 operating results as a result of the ALLO recapitalization is summarized below:
Gain from deconsolidation$258,588 
Compensation expense (note 1)(9,298)
Obligation to SDC (note 2)(2,339)
$246,951 

Note 1: On October 1, 2020 (prior to the deconsolidation of ALLO), ALLO recognized compensation expense related to the modification of certain equity awards previously granted to members of ALLO’s management.
Note 2:    As part of the ALLO recapitalization transaction, the Company and SDC entered into an agreement, in which the Company has a contingent payment obligation to pay SDC a contingent payment amount of $25.0 million to $35.0 million in the event the Company disposes of its voting membership interests of ALLO that it holds and realizes from such disposition certain targeted return levels. The Company recognized the estimated fair value of the contingent payment as of December 31, 2020 to be $2.3 million, which is included in “other liabilities” on the consolidated balance sheet.
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Summary of Significant Accounting Policies and Practices
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies and Practices Summary of Significant Accounting Policies and Practices
Consolidation
The consolidated financial statements include the accounts of Nelnet, Inc. and its consolidated subsidiaries. In addition, the accounts of all variable interest entities (“VIEs”) of which the Company has determined that it is the primary beneficiary are included in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation.
Variable Interest Entities
The Company assesses its partnerships and joint ventures to determine if the entity meets the qualifications of a VIE. The Company performs a qualitative assessment of each VIE to determine if it is the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The Company examines specific criteria and uses judgment when determining whether an entity is a VIE and whether it is the primary beneficiary. The Company performs this review initially at the time it enters into a partnership or joint venture agreement and reassess upon reconsideration events.
VIEs - Consolidated
The Company is required to consolidate VIEs in which it has determined it is the primary beneficiary.
The Company's education and other lending subsidiaries are engaged in the securitization of finance assets. These lending subsidiaries hold beneficial interests in eligible loans, subject to creditors with specific interests. The liabilities of the Company's lending subsidiaries are not the direct obligations of Nelnet, Inc. or any of its other subsidiaries. Each lending subsidiary is structured to be bankruptcy remote, meaning that it should not be consolidated in the event of bankruptcy of the parent company or any other subsidiary. The Company is generally the administrator and master servicer of the securitized assets held in its lending subsidiaries and owns the residual interest of the securitization trusts. For accounting purposes, the transfers of loans to the securitization trusts do not qualify as sales. Accordingly, all the financial activities and related assets and liabilities, including debt, of the securitizations are reflected in the Company's consolidated financial statements and are summarized as supplemental information on the balance sheet.
VIEs - Not consolidated
The Company is not required to consolidate VIEs in which it has determined it is not the primary beneficiary.
In December of 2020, Wells Fargo announced the sale of its approximately $10.0 billion portfolio of private education loans representing approximately 445,000 borrowers. The Company entered into a joint venture with other investors to acquire the loans. During 2021, the joint venture completed asset-backed securitization transactions to permanently finance a total of $8.7 billion of the private education loans purchased by the joint venture (which represented the total remaining loans originally purchased from Wells Fargo, factoring in borrower payments from the date of purchase). Under the terms of the joint venture agreements, the Company is the servicer of the portfolio, owns an approximate 8 percent interest in residual interests in securitizations of the loans, and serves as the sponsor and administrator for the loan securitizations completed by the joint venture. See note 7, “Investments” for a description of, and the Company’s accounting for, these transactions, and disclosure of the Company’s maximum exposure.
The Company makes investments in entities that promote renewable energy sources (solar). The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These investments are included in "investments" on the consolidated balance sheets and accounted for under the HLBV method of accounting. The carrying value of these investments are reduced by tax credits earned when the solar project is placed in service. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are included in “other liabilities” on the consolidated balance sheet. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment, unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. The tax credit recapture period ratably decreases over five years from when the project is placed in service. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the energy-producing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits.
The following table provides a summary of solar investment VIEs that the Company has not consolidated:
As of December 31,
20212020
Investment carrying amount$(41,030)(26,006)
Tax credits subject to recapture111,289 101,943 
Unfunded capital and other commitments4,350 13,330 
Company’s maximum exposure to loss74,609 89,267 
Exposure syndicated to third-party investors71,511 15,562 
Maximum exposure to loss$146,120 104,829 
As of December 31, 2021, the Company owned 45 percent of the economic rights of ALLO Communications LLC and has a disproportional 43 percent of the voting rights related to all operating decisions for ALLO's business. See note 1, “Description of Business,” for a description of ALLO, including the primary services offered. See note 2, “ALLO Recapitalization,” for disclosure of ALLO’s recapitalization and the Company’s initial recognition of its voting interest/equity method and non-voting preferred membership investments. See note 7, “Investments,” for the Company’s carrying value of its voting interest/equity method and non-voting preferred membership investments, which is the Company’s maximum exposure to loss.
Noncontrolling Interests
Amounts for noncontrolling interests reflect the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interests in the following entities:
Whitetail Rock Capital Management, LLC - WRCM is the Company’s SEC-registered investment advisor subsidiary. WRCM issued 10 percent minority membership interests on January 1, 2012.
In addition, the Company has established multiple entities for the purpose of investing in renewable energy (solar) and federal opportunity zone programs in which it has noncontrolling members.
Use of Estimates
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and other disclosures. Actual results may differ from those estimates.
Loans Receivable
Loans consist of federally insured student loans, private education loans, and consumer loans. If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost. Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest income. Loans which are held-for-investment also have an allowance for loan loss as needed. Any loans the Company has the ability and intent to sell are classified as held for sale and are carried at the lower of cost or fair value. Loans which are held for sale do not have the associated premium or discount and origination costs and fees amortized into interest income and there is also no related allowance for loan losses. There were no loans classified as held for sale as of December 31, 2021 and 2020.
Federally insured loans were originated under the FFEL Program by certain eligible lenders as defined by the Higher Education Act of 1965, as amended (the “Higher Education Act”). These loans, including related accrued interest, are guaranteed at their maximum level permitted under the Higher Education Act by an authorized guaranty agency, which has a contract of reinsurance with the Department. The terms of the loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest. Generally, Stafford and PLUS loans have repayment periods between five and ten years. Consolidation loans have repayment periods of twelve to thirty years. FFELP loans do not require repayment while the borrower is in-school, and during the grace period immediately upon leaving school. Under the Higher Education Act, a borrower may also be granted a deferment or forbearance for a period of time based on need, during which time the borrower is not considered to be in repayment. Interest continues to accrue on loans in the in-school, deferment, and forbearance program periods. In addition, eligible borrowers may qualify for income-driven repayment plans offered by the Department. These plans determine the borrower's payment amount based on their discretionary income and may extend their repayment period. Interest
rates on federally insured student loans may be fixed or variable, dependent upon the type of loan, terms of the loan agreements, and date of origination.
Substantially all FFELP loan principal and related accrued interest is guaranteed as provided by the Higher Education Act. These guarantees are subject to the performance of certain loan servicing due diligence procedures stipulated by applicable Department regulations. If these due diligence requirements are not met, affected student loans may not be covered by the guarantees in the event of borrower default. Such student loans are subject to “cure” procedures and reinstatement of the guarantee under certain circumstances.
Loans also include private education and consumer loans. Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFEL Program. These loans are used primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or borrowers' personal resources. The terms of the private education loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to thirty years. The private education loans are not covered by a guarantee or collateral in the event of borrower default. Consumer loans are unsecured loans to an individual for personal, family, or household purposes. The terms of the consumer loans, which vary on an individual basis, generally provide for repayment in weekly or monthly installments of principal and interest over a period of up to six years.
Allowance for Loan Losses
On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments – Credit Losses (“Topic 326”): Measurement of Credit Losses on Financial Instruments, which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss ("CECL") methodology. 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. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The Company adopted Topic 326 using the modified retrospective method. As such, the results for reporting periods beginning after January 1, 2020 are presented under Topic 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 and 2021. 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 and decreased retained earnings, net of tax, by $18.9 million.
Allowance for Loan Losses - Accounting Policies Under Topic 326
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 pools to estimate its expected credit losses. The Company evaluates such pooling decisions each quarter and makes adjustments 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 4 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. For the undiscounted cash flow models, the expected credit losses are the product of multiplying the Company’s estimates of
probability of default and loss given default and the exposure of default over the expected life of the loans. For the remaining life method, the expected credit losses are the product of multiplying the Company’s estimated net loss rate by the exposure at default over the expected life of the loans. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current economic conditions, and reasonable and supportable forecasts. The Company has determined that, for modeling current expected credit losses, the Company can reasonably estimate expected losses that incorporate current economic conditions and forecasted probability weighted economic scenarios up to a one-year period. Macroeconomic factors used in the models include such variables as unemployment rates, gross domestic product, and consumer price index. After the "reasonable and supportable" period, the Company reverts to its actual long-term historical loss experience in the historical observation period. The Company uses a straight line reversion method over two years. Historical credit loss experience provides the basis for the estimation of expected credit losses. A portion of the allowance is comprised of qualitative adjustments to historical loss experience.
Qualitative adjustments consider the following factors, as applicable, for each of the Company’s loan portfolios: student loans in repayment versus those in nonpaying status; delinquency status; type of private education or consumer loan program; trends in defaults in the portfolio based on Company and industry data; past experience; trends in federally insured student loan claims rejected for payment by guarantors; changes in federal student loan programs; 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. Federally insured student loans disbursed prior to October 1, 1993 are fully insured. Private education and consumer loans are unsecured, with neither a government nor a private insurance guarantee. Accordingly, the Company bears the full risk of loss on these loans if the borrower and co-borrower, if applicable, default. The Company places private education and 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
Accrued interest receivable on loans is combined and presented with the loans receivable amortized cost balance on the Company’s consolidated balance sheet.
For the Company’s federally insured loan portfolio, the Company records 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 does not 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.
Allowance for Loan Losses - Accounting Policies Prior to Adoption of Topic 326
Prior to the adoption of Topic 326 effective January 1, 2020, the allowance for loan losses represented management's estimate of probable losses on loans. The provision for loan losses for periods ended prior to January 1, 2020 reflected the activity for
the applicable period and provided an allowance at a level that the Company's management believed was appropriate to cover probable losses inherent in the loan portfolio. The Company evaluated the adequacy of the allowance for loan losses using a historical loss rate methodology adjusted for qualitative factors separately on each of its federally insured, private education, and consumer loan portfolios. These evaluation processes were subject to numerous judgments and uncertainties including the selection of loss rates over time and determination of the loss emergence period.
Cash and Cash Equivalents and Statements of Cash Flows
For purposes of the consolidated statements of cash flows, the Company considers all investments with original maturities of three months or less to be cash equivalents.
Accrued interest on loans purchased and sold is included in cash flows from operating activities in the respective period. Net purchased loan accrued interest was $48.3 million, $92.3 million, and $112.9 million in 2021, 2020, and 2019, respectively.
Investments
The Company classifies its debt securities, primarily student loan and other asset-backed securities, as available-for-sale. These securities are carried at fair value, with the changes in fair value, net of taxes, carried as a separate component of shareholders’ equity. The amortized cost of debt securities in this category is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. When an investment is sold, the cost basis is determined through specific identification of the security sold. 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.
The Company classifies its residual interest in federally insured, private education, and consumer loan securitizations as held-to-maturity beneficial interest investments. The Company measures accretable yield initially as the excess of all cash flows expected to be collected attributable to the beneficial interest estimated at the acquisition/transaction date over the initial investment and recognizes interest income over the life of the beneficial interest using the effective interest method. The Company continues to update, over the life of the beneficial interest, the expectation of cash flows to be collected. Beneficial interest investments are evaluated for impairment by comparing the present value of the remaining cash flows as estimated at the initial transaction date (or the last date previously revised) to the present value of the cash flows expected to be collected at the current financial reporting date, both discounted using the same effective rate equal to the current yield used to accrete the beneficial interest. If the present value of remaining cash flows is less than the present value of cash flows expected to be collected, the Company records an allowance for credit losses for the difference. Subsequent favorable changes, if any, decreases the allowance for credit losses. The Company reflects the changes in the allowance for credit losses in provision for beneficial interests on the consolidated statements of income.
Equity investments with readily determinable fair values are measured at fair value, with changes in the fair value recognized through net income (other than those equity investments accounted for under the equity method of accounting or those that result in consolidation of the investee).
For equity investments without readily determinable fair value, the Company uses the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company uses qualitative factors to identify impairment on these investments.
The Company accounts for equity investments over which it has significant influence but not a controlling financial interest using the equity method of accounting. Equity method investments are recorded at cost and subsequently increased or decreased by the amount of the Company’s proportionate share of the net earnings or losses and other comprehensive income of the investee. Equity method investments are evaluated for other-than-temporary impairment using certain impairment indicators such as a series of operating losses of an investee or other factors. These factors may indicate that a decrease in value of the investment has occurred that is other-than-temporary and shall be recognized.
The Company accounts for its solar investments, voting equity investment in ALLO, and certain real estate investments under the HLBV method of accounting. The HLBV method of accounting is used by the Company for equity method investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership or voting interests. The Company applies the HLBV method using a balance sheet approach. A calculation is prepared at each balance sheet date to determine the amount that the Company would receive if an equity investment entity were to liquidate its net assets and distribute that cash to the investors based on the contractually defined
liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is the amount the Company recognizes for its share of the earnings or losses from the equity investment for the period.
Restricted Cash
Restricted cash primarily includes amounts for student loan securitizations and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the student loans held as trust assets and when principal and interest is paid on the trust's asset-backed debt securities. Restricted cash also includes collateral deposits with derivative third-party clearinghouses.
Restricted Cash - Due to Customers
As a servicer of student loans, the Company collects student loan remittances and subsequently disburses these remittances to the appropriate lending entities. In addition, as part of the Company's Education Technology, Services, and Payment Processing operating segment, the Company collects tuition payments and subsequently remits these payments to the appropriate schools. Cash collected for customers and the related liability are included in the accompanying consolidated balance sheets.
Accounts Receivable
Accounts receivable are presented at their net realizable values, which include allowances for doubtful accounts. Allowance estimates are based upon individual customer experience, as well as the age of receivables and likelihood of collection.
Business Combinations
The Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings.
Goodwill
The Company reviews goodwill for impairment annually (as of November 30) and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable. Goodwill is tested for impairment using a fair value approach at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a single reporting unit if they have similar economic characteristics.
The Company tests goodwill for impairment in accordance with applicable accounting guidance. The guidance provides an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a quantitative impairment test, otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test.
For the 2021, 2020, and 2019 annual reviews of goodwill, the Company assessed qualitative factors and concluded it was not more likely than not that the fair value of its reporting units were less than their carrying amount. As such, the Company was not required to perform further impairment testing and concluded there was no impairment of goodwill.
Intangible Assets
The Company uses estimates to determine the fair value of acquired assets to allocate the purchase price to acquired intangible assets. Such estimates are generally based on estimated future cash flows or cost savings associated with particular assets and are discounted to present value using an appropriate discount rate. The estimates of future cash flows associated with intangible assets are generally prepared using a cost savings method, a lost income method, or an excess return method, as appropriate. In
utilizing such methods, management must make certain assumptions about the amount and timing of estimated future cash flows and other economic benefits from the assets, the remaining economic useful life of the assets, and general economic factors concerning the selection of an appropriate discount rate. The Company may also use replacement cost or market comparison approaches to estimate fair value if such methods are determined to be more appropriate.
Intangible assets with finite lives are amortized over their estimated lives. Such assets are amortized using a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. If that pattern cannot be reliably determined, the Company uses a straight-line amortization method.
The Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization.
Property and Equipment
Property and equipment are carried at cost, net of accumulated depreciation. Maintenance and repairs are charged to expense as incurred, and major improvements, including leasehold improvements, are capitalized. Gains and losses from the sale of property and equipment are included in determining net income. The Company uses the straight-line method for recording depreciation and amortization. Leasehold improvements are amortized straight-line over the shorter of the lease term or estimated useful life of the asset.
Leases
The Company determines if the arrangement is, or contains, a lease at the inception of an arrangement and records the lease in the consolidated financial statements upon lease commencement, which is the date when the underlying asset is made available by the lessor. The Company primarily leases office and data center space. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The lease expense for these leases is recognized on a straight-line basis over the lease term. All other lease assets (ROU assets) and lease liabilities are recognized based on the present value of lease payments over the lease term at the commencement date. The Company classifies each lease as operating or financing, with the income statement reflecting lease expense for operating leases and amortization/interest expense for financing leases. When the discount rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate.
The Company accounts for lease and non-lease components together as a single, combined lease component for its office and data center space. In addition, the Company identified itself as the lessor in its Communications operating segment for services provided to customers that include customer-premise equipment. The Company accounted for those services and associated leases as a single, combined component. The non-lease services are 'predominant' in those contracts. Therefore, the combined component is considered a single performance obligation under ASC Topic 606, Revenue from Contracts with Customers.
Most leases include one or more options to renew, with renewal terms that can be extended. The exercise of lease renewal options for the majority of leases is at the Company's discretion. Renewal options that the Company is reasonably certain to exercise are included in the lease term.
Certain leases include escalating rental payments or rental payments adjusted periodically for inflation. None of the lease agreements include any residual value guarantees, a transfer of title, or a purchase option that is reasonably certain to be exercised.
Impairment of Long-Lived Assets
The Company reviews its long-lived assets, such as property and equipment, purchased intangibles subject to amortization, and ROU assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.
Assumptions and estimates about future cash flows generated by, remaining useful lives of, and fair values of the Company's intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company's business strategy and internal forecasts. Although the Company believes the historical assumptions and estimates used are reasonable and appropriate, different assumptions and estimates could materially impact the reported financial results.
Fair Value Measurements
The Company uses estimates of fair value in applying various accounting standards for its financial statements.
Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company's policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value, such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates, and credit spreads, relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. In some cases fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model's output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates of current or future values.
The Company categorizes its fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring assets and liabilities at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels include:
Level 1: Quoted prices for identical instruments in active markets. The types of financial instruments included in Level 1 are highly liquid instruments with quoted prices.
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose primary value drivers are observable.
Level 3: Instruments whose primary value drivers are unobservable. Inputs are developed based on the best information available; however, significant judgment is required by management in developing the inputs.
Revenue Recognition
The Company applies the provisions of ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), to its fee-based operating segments. The majority of the Company’s revenue earned in its Asset Generation and Management and Nelnet Bank operating segments, including loan interest and derivative activity, is explicitly excluded from the scope of ASC Topic 606. The Company recognizes revenue under the core principle of ASC Topic 606 to depict the transfer of control of products and services to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five-step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment.
Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records deferred revenue when revenue is received or receivable in advance of the delivery of service. For multi-year contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component.
The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in “other assets” on the consolidated balance sheets.
Additional information related to revenue earned in its Asset Generation and Management operating segment is provided below. See note 16, "Disaggregated Revenue and Deferred Revenue" for additional information related to the Company's fee-based operating segments.
Loan interest income - Loan interest on federally insured student loans is paid by the Department or the borrower, depending on the status of the loan at the time of the accrual. The Department makes quarterly interest subsidy payments on certain qualified FFELP loans until the student is required under the provisions of the Higher Education Act to begin repayment. Borrower repayment of FFELP loans normally begins within six months after completion of the borrower's course of study, leaving school, or ceasing to carry at least one-half the normal full-time academic load, as determined by the educational institution. Borrower repayment of PLUS and Consolidation loans normally begins within 60 days from the date of loan disbursement. Borrower repayment of private education loans typically begins six months following the borrower's graduation from a qualified institution, and the interest is either paid by the borrower or capitalized annually or at repayment. Repayment of consumer loans typically starts upon origination of the loan.
The Department provides a special allowance to lenders participating in the FFEL Program. The special allowance is accrued based upon the fiscal quarter average rate of 13-week Treasury Bill auctions (for loans originated prior to January 1, 2000), the fiscal quarter average rate of the daily three-month financial commercial paper rates (for loans originated on and after January 1, 2000), or the fiscal quarter average rate of daily one-month LIBOR rates (for loans originated on and after January 1, 2000, and for lenders which elected to change the special allowance index to one-month LIBOR effective April 1, 2012) relative to the yield of the student loan.
The Company recognizes loan interest income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts. Loan interest income is recognized based upon the expected yield of the loan after giving effect to interest rate reductions resulting from borrower utilization of incentives such as timely payments ("borrower benefits") and other yield adjustments. Loan premiums or discounts, deferred origination costs, and borrower benefits are amortized/accreted over the estimated life of the loans, which includes an estimate of forecasted payments in excess of contractually required payments (the constant prepayment rate). The constant prepayment rate currently used by the Company to amortize/accrete federally insured loan premiums/discounts is 5 percent for Stafford loans and 4 percent for Consolidation loans. The Company periodically evaluates the assumptions used to estimate the life of the loans and prepayment rates. In instances where there are changes to the assumptions, amortization/accretion is adjusted on a cumulative basis to reflect the change since the acquisition of the loan. During the fourth quarter of 2021, the Company changed its estimate of the constant prepayment rate on its consolidation loans from 3 percent to 4 percent, which resulted in a $6.2 million increase to the Company’s net loan discount balance and a corresponding pre-tax decrease to interest income.
The Company also pays the Department an annual 105 basis point rebate fee on Consolidation loans. These rebate fees are netted against loan interest income.
Interest Expense
Interest expense is based upon contractual interest rates, adjusted for the amortization of debt issuance costs and the accretion of discounts. The amortization of debt issuance costs and accretion of discounts are recognized using the effective interest method.
Transfer of Financial Assets and Extinguishments of Liabilities
The Company accounts for loan sales and debt repurchases in accordance with applicable accounting guidance. If a transfer of loans qualifies as a sale, the Company derecognizes the loan and recognizes a gain or loss as the difference between the carrying basis of the loan sold and the consideration received. The Company from time to time repurchases its outstanding debt and records a gain or loss on the early extinguishment of debt based upon the difference between the carrying amount of the debt and the amount paid to the third party.
Derivative Accounting
All over-the-counter derivative contracts executed by the Company are cleared post-execution at the Chicago Mercantile Exchange (“CME”), a regulated clearinghouse. Substantially all of the Company’s outstanding derivatives are over-the-counter contracts. Clearing is a process by which a third-party, the clearinghouse, steps in between the original counterparties and guarantees the performance of both, by requiring that each post liquid collateral on an initial (initial margin) and mark-to-market (variation margin) basis to cover the clearinghouse’s potential future exposure in the event of default.
The CME legally characterizes variation margin payments for over-the-counter derivatives they clear as settlements of the derivatives’ exposure rather than collateral against the exposure. For accounting and presentation purposes, the Company considers variation margin and the corresponding derivative instrument as a single unit of account. As such, variation margin payments are considered in determining the fair value of the centrally cleared derivative portfolio. The Company records
derivative contracts on its balance sheet with a fair value of zero due to the payment or receipt of variation margin between the Company and the CME settling the outstanding mark-to-market exposure on such derivatives to a balance of zero on a daily basis. Management has structured all of the Company's derivative transactions with the intent that each is economically effective; however, the Company's derivative instruments do not qualify for hedge accounting. As a result, the change in market value of derivative instruments is reported in current period earnings. Changes or shifts in the forward yield curve can significantly impact the valuation of the Company’s derivatives, and therefore impact the results of operations of the Company. The changes in fair value of derivative instruments, as well as the settlement payments made on such derivatives, are included in “derivative market value adjustments and derivative settlements, net” on the consolidated statements of income.
Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company uses the deferred method of accounting for its credits related to state tax incentives and investments that generate investment tax credits. The investment tax credits are recognized as a reduction to the related asset.
Income tax expense includes deferred tax expense, which represents a portion of the net change in the deferred tax asset or liability balance during the year, plus any change made in the valuation allowance, and current tax expense, which represents the amount of tax currently payable to or receivable from a tax authority plus amounts for expected tax deficiencies.
Compensation Expense for Stock Based Awards
The Company has a restricted stock plan that is intended to provide incentives to attract, retain, and motivate employees in order to achieve long term growth and profitability objectives. The restricted stock plan provides for the grant to eligible employees of awards of restricted shares of Class A common stock. The fair value of restricted stock awards is determined on the grant date based on the Company's stock price and is amortized to compensation cost over the related vesting periods, which range up to ten years. For those awards with only service conditions that have graded vesting schedules, the Company recognizes compensation expense on a straight-line basis over the requisite service period for each separately vesting portion of the award, as if the award was, in substance, multiple awards. Holders of restricted stock are entitled to receive dividends from the date of grant whether or not vested. The Company accounts for forfeitures as they occur.
The Company also has a directors stock compensation plan pursuant to which non-employee directors can elect to receive their annual retainer fees in the form of fully vested shares of Class A common stock, and also elect to defer receipt of such shares until the termination of their service on the board of directors. The fair value of grants under this plan is determined on the grant date based on the Company's stock price, and is expensed over the board member's annual service period.
Translation of Foreign Currencies
The Company’s foreign subsidiaries use the local currency of the countries in which they are located as their functional currency. Accordingly, assets and liabilities are translated into U.S. dollars (the Company’s reporting currency) using the exchange rates in effect on the consolidated balance sheet dates. Equity accounts are translated at historical rates, except for the change in retained earnings during the year, which is the result of the income statement translation process. Revenue and expense accounts are translated using the weighted average exchange rate during the period. The cumulative translation adjustments associated with the net assets of foreign subsidiaries are recorded in accumulated other comprehensive earnings in the accompanying consolidated statements of shareholders’ equity.
v3.22.0.1
Loans and Accrued Interest Receivable and Allowance for Loan Losses
12 Months Ended
Dec. 31, 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
 December 31, 2021December 31, 2020
Non-Nelnet Bank:
Federally insured student loans:
Stafford and other$3,904,000 4,383,000 
Consolidation13,187,047 14,746,173 
Total17,091,047 19,129,173 
Private education loans299,442 320,589 
Consumer loans51,301 109,346 
Non-Nelnet Bank loans17,441,790 19,559,108 
Nelnet Bank:
Federally insured student loans88,011 — 
Private education loans169,890 17,543 
Nelnet Bank loans257,901 17,543 
 
Accrued interest receivable788,552 794,611 
Loan discount, net of unamortized loan premiums and deferred origination costs(25,933)(9,908)
Allowance for loan losses:
Non-Nelnet Bank:
Federally insured loans(103,381)(128,590)
Private education loans(16,143)(19,529)
Consumer loans(6,481)(27,256)
Non-Nelnet Bank allowance for loan losses(126,005)(175,375)
Nelnet Bank:
Federally insured loans(268)— 
Private education loans(840)(323)
Nelnet Bank allowance for loan losses(1,108)(323)
 $18,335,197 20,185,656 
Loan Sales
The Company has sold portfolios of consumer loans to an unrelated third party who securitized such loans. As partial consideration received for the consumer loans sold, the Company received residual interest in the consumer loan securitizations that are included in "investments" on the Company's consolidated balance sheet. The following table provides a summary of the consumer loans sold and gains recognized by the Company during 2021, 2020, and 2019.
Loans sold
(par value)
GainResidual interest received in securitization
2021:
May 14, 2021$77,417 15,271 24.5 %
September 29, 202118,390 3,249 6.9 
$95,807 18,520 
2020:
January 30, 2020$124,249 18,206 31.4 %
July 29, 202060,779 14,817 25.4 
$185,028 33,023 
2019:
May 1, 2019$47,680 1,712 11.0 %
October 17, 2019179,301 15,549 28.7 
$226,981 17,261 
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 Topic 326 adoptionProvision (negative provision) for loan lossesCharge-offsRecoveriesInitial allowance on loans purchased with credit deterioration (a)Loan salesBalance at end of period
Year ended December 31, 2021
Non-Nelnet Bank
Federally insured loans$128,590 — (7,343)(21,139)— 3,273 — 103,381 
Private education loans19,529 — (1,333)(2,476)721 — (298)16,143 
Consumer loans27,256 — (4,544)(5,123)824 — (11,932)6,481 
Nelnet Bank
Federally insured loans— — 268 — — — — 268 
Private education loans323 — 526 (4)— — (5)840 
$175,698 — (12,426)(28,742)1,545 3,273 (12,235)127,113 
Year ended December 31, 2020
Non-Nelnet Bank
Federally insured loans$36,763 72,291 18,691 (14,955)— 15,800 — 128,590 
Private education loans9,597 4,797 6,156 (1,652)631 — — 19,529 
Consumer loans15,554 13,926 38,183 (12,115)1,132 — (29,424)27,256 
Nelnet Bank
Private education loans— — 330 (7)— — — 323 
$61,914 91,014 63,360 (28,729)1,763 15,800 (29,424)175,698 
Year ended December 31, 2019
Non-Nelnet Bank
Federally insured loans$42,310 — 8,000 (13,547)— — — 36,763 
Private education loans10,838 — — (1,965)724 — — 9,597 
Consumer loans7,240 — 31,000 (12,498)812 — (11,000)15,554 
$60,388 — 39,000 (28,010)1,536 — (11,000)61,914 

(a)    During the years ended December 31, 2021 and 2020, the Company acquired $224.1 million (par value) and $835.0 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 caused significant disruptions in the U.S. and world economies. Apart from the impact of the adoption of Topic 326 effective January 1, 2020, the Company’s allowance for loan losses increased in 2020 primarily as a result of the COVID-19 pandemic and its effects on economic conditions.
During the year ended December 31, 2021, the Company recorded a negative provision for loan losses due to (i) management's estimate of certain continued improved economic conditions as of December 31, 2021 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of December 31, 2020; (ii) an increase in the constant prepayment rate on FFELP consolidation loans; and (iii) the amortization of the federally insured loan portfolio. These amounts were partially offset by the establishment of an initial allowance for loans originated and acquired during the period.
Loan Status and Delinquencies
The key credit quality indicators for the Company’s federally insured, private education, and consumer loan portfolios are loan status, including delinquencies. The impact of changes in loan status is incorporated into the allowance for loan losses calculation. Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs. The table below shows the Company’s loan status and delinquency amounts.
As of December 31,
202120202019
Federally insured loans - Non-Nelnet Bank:    
Loans in-school/grace/deferment (a)$829,624 4.9 % $1,036,028 5.4 % $1,074,678 5.3 %
Loans in forbearance (b)1,118,667 6.5  1,973,175 10.3  1,339,821 6.6 
Loans in repayment status:  
Loans current12,847,685 84.9 %13,683,054 84.9 %15,410,993 86.0 %
Loans delinquent 31-60 days (c)895,656 5.9 633,411 3.9 650,796 3.6 
Loans delinquent 61-90 days (c)352,449 2.3 307,936 1.9 428,879 2.4 
Loans delinquent 91-120 days (c)251,075 1.7 800,257 5.0 310,851 1.7 
Loans delinquent 121-270 days (c)592,449 3.9 674,975 4.2 812,107 4.5 
Loans delinquent 271 days or greater (c)(d)203,442 1.3 20,337 0.1 300,418 1.8 
Total loans in repayment15,142,756 88.6 100.0 %16,119,970 84.3 100.0 %17,914,044 88.1 100.0 %
Total federally insured loans17,091,047 100.0 % 19,129,173 100.0 % 20,328,543 100.0 %
Accrued interest receivable784,716 791,453 730,059 
Loan discount, net of unamortized premiums and deferred origination costs(28,309)(14,505)(35,822)
Non-accretable discount (e)— — (28,036)
Allowance for loan losses(103,381)(128,590)(36,763)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$17,744,073 $19,777,531 $20,957,981 
Private education loans - Non-Nelnet Bank:
Loans in-school/grace/deferment (a)$9,661 3.2 %$5,049 1.6 %$4,493 1.8 %
Loans in forbearance (b)3,601 1.2 2,359 0.7 3,108 1.3 
Loans in repayment status:
Loans current280,457 98.0 %310,036 99.0 %227,013 95.9 %
Loans delinquent 31-60 days (c)2,403 0.8 1,099 0.4 2,814 1.2 
Loans delinquent 61-90 days (c)976 0.3 675 0.2 1,694 0.7 
Loans delinquent 91 days or greater (c)2,344 0.9 1,371 0.4 5,136 2.2 
Total loans in repayment286,180 95.6 100.0 %313,181 97.7 100.0 %236,657 96.9 100.0 %
Total private education loans299,442 100.0 % 320,589 100.0 % 244,258 100.0 %
Accrued interest receivable1,960 2,131 1,558 
Loan discount, net of unamortized premiums(1,123)2,691 46 
Non-accretable discount (e)— — (4,362)
Allowance for loan losses(16,143)(19,529)(9,597)
Total private education loans and accrued interest receivable, net of allowance for loan losses$284,136 $305,882 $231,903 
Consumer loans - Non-Nelnet Bank:
Loans in deferment (a)$43 0.1 %$829 0.8 %$— 
Loans in repayment status:
Loans current49,697 97.0 %105,650 97.4 %220,404 97.5 %
Loans delinquent 31-60 days (c)414 0.8 954 0.9 2,046 0.9 
Loans delinquent 61-90 days (c)322 0.6 804 0.7 1,545 0.7 
Loans delinquent 91 days or greater (c)825 1.6 1,109 1.0 1,923 0.9 
Total loans in repayment51,258 99.9 100.0 %108,517 99.2 100.0 %225,918 100.0 %
Total consumer loans51,301 100.0 %109,346 100.0 %225,918 
Accrued interest receivable396 1,001 1,880 
Loan premium913 1,640 740 
Allowance for loan losses(6,481)(27,256)(15,554)
Total consumer loans and accrued interest receivable, net of allowance for loan losses$46,129 $84,731 $212,984 
As of December 31,
202120202019
Federally insured loans - Nelnet Bank:
Loans in-school/grace/deferment (a)$330 0.4 %
Loans in forbearance (b)1,057 1.2 
Loans in repayment status:
Loans current85,599 98.8 %
Loans delinquent 31-60 days (c)816 1.0 
Loans delinquent 61-90 days (c)— — 
Loans delinquent 91-120 days (c)— — 
Loans delinquent 121-270 days (c)209 0.2 
Loans delinquent 271 days or greater (c)— — 
Total loans in repayment86,624 98.4 100.0 %
Total federally insured loans88,011 100.0 %
Accrued interest receivable1,216 
Loan premium26 
Allowance for loan losses(268)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$88,985 
Private education loans - Nelnet Bank:
Loans in-school/grace/deferment (a)$150 0.1 %$— — %
Loans in forbearance (b)460 0.3 29 0.2 
Loans in repayment status:
Loans current169,157 99.9 %17,514 100.0 %
Loans delinquent 31-60 days (c)51 — — — 
Loans delinquent 61-90 days (c)— — — — 
Loans delinquent 91 days or greater (c)72 0.1 — — 
Total loans in repayment169,280 99.6 100.0 %17,514 99.8 100.0 %
Total private education loans169,890 100.0 %17,543 100.0 %
Accrued interest receivable264 26 
Deferred origination costs2,560 266 
Allowance for loan losses(840)(323)
Total private education loans and accrued interest receivable, net of allowance for loan losses$171,874 $17,512 

(a)    Loans for borrowers who still may be attending school or engaging in other permitted educational activities and are not yet required to make payments on the loans, e.g., residency periods for medical students or a grace period for bar exam preparation for law students.
(b)    Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing procedures and policies.
(c)    The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance.
(d)    A portion of loans included in loans delinquent 271 days or greater includes loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency.
(e)    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.
As a result of COVID-19, 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 continued to apply a natural disaster forbearance in 90 day increments to any private education and federally insured loan upon request through July 31, 2021 and September 30, 2021, respectively.
As a result of the ongoing impacts of the COVID-19 pandemic, the Company continues to review whether additional and/or extended borrower relief policies and activities are needed. All relief provided to borrowers by the Company through December 31, 2021 have been delays in payment that the Company considers to be insignificant and have not been accounted for as troubled debt restructuring.
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, 2021, 2020, and 2019 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 December 31, 2021 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.
20212020201920182017Prior yearsTotal
Private education loans - Non-Nelnet Bank:
Loans in school/grace/deferment$2,266 1,981 3,557 — — 1,857 9,661 
Loans in forbearance— 267 960 47 — 2,327 3,601 
Loans in repayment status:
Loans current2,768 68,754 50,348 492 — 158,095 280,457 
Loans delinquent 31-60 days— 308 225 — — 1,870 2,403 
Loans delinquent 61-90 days— 81 — — — 895 976 
Loans delinquent 91 days or greater— — — — 2,340 2,344 
Total loans in repayment2,768 69,143 50,577 492 — 163,200 286,180 
Total private education loans$5,034 71,391 55,094 539 — 167,384 299,442 
Accrued interest receivable1,960 
Loan discount, net of unamortized premiums(1,123)
Allowance for loan losses(16,143)
Total private education loans and accrued interest receivable, net of allowance for loan losses$284,136 
Consumer loans - Non-Nelnet Bank:
Loans in deferment$25 — — 18 — — 43 
Loans in repayment status:
Loans current37,822 960 5,087 5,746 82 — 49,697 
Loans delinquent 31-60 days205 51 120 33 — 414 
Loans delinquent 61-90 days113 40 109 60 — — 322 
Loans delinquent 91 days or greater133 43 261 388 — — 825 
Total loans in repayment38,273 1,094 5,577 6,227 87 — 51,258 
Total consumer loans$38,298 1,094 5,577 6,245 87 — 51,301 
Accrued interest receivable396 
Loan premium913 
Allowance for loan losses(6,481)
Total consumer loans and accrued interest
receivable, net of allowance for loan losses
$46,129 
Private education loans - Nelnet Bank:
Loans in school/grace/deferment$150 — — — — — 150 
Loans in forbearance445 15 — — — — 460 
Loans in repayment status:
Loans current158,486 10,671 — — — — 169,157 
Loans delinquent 31-60 days51 — — — — — 51 
Loans delinquent 61-90 days— — — — — — — 
Loans delinquent 91 days or greater72 — — — — — 72 
Total loans in repayment158,609 10,671 — — — — 169,280 
Total private education loans$159,204 10,686 — — — — 169,890 
Accrued interest receivable264 
Deferred origination costs2,560 
Allowance for loan losses(840)
Total private education loans and accrued interest receivable, net of allowance for loan losses$171,874 
v3.22.0.1
Bonds and Notes Payable
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Bonds and Notes Payable Bonds and Notes Payable
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 As of December 31, 2021
Carrying
amount
Interest rate
range
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:
   
Bonds and notes based on indices$15,887,295 
0.23% - 2.10%
5/27/25 - 9/25/69
Bonds and notes based on auction248,550 
0.00% - 1.09%
3/22/32 - 8/27/46
Total FFELP variable-rate bonds and notes16,135,845 
Fixed-rate bonds and notes issued in FFELP loan asset-backed
      securitizations
772,935 
1.42% - 3.45%
10/25/67 - 8/27/68
FFELP loan warehouse facility5,048 
0.21%
5/22/23
Private education loan warehouse facility107,011 0.24%2/13/23
Variable-rate bonds and notes issued in private education loan asset-backed securitizations
31,818 
1.65% / 1.85%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
28,613 
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit— 9/22/26
Participation agreement253,969 0.78%5/4/22
Repurchase agreements483,848 
0.66% - 1.46%
5/27/22 - 12/20/23
Secured line of credit5,000 1.91%5/30/22
 17,824,087   
Discount on bonds and notes payable and debt issuance costs(192,998)
Total$17,631,089 
 
 As of December 31, 2020
Carrying
amount
Interest rate
range
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:   
Bonds and notes based on indices$17,127,643 
0.28% - 2.05%
5/27/25 - 10/25/68
Bonds and notes based on auction749,925 
1.12% - 2.14%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes17,877,568 
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations923,076 
1.42% - 3.45%
10/25/67 - 8/27/68
FFELP loan warehouse facilities252,165 
0.27% / 0.31%
5/20/22 / 2/26/23
Private education loan warehouse facility150,397 0.28%2/13/22
Consumer loan warehouse facility25,809 0.28%4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations49,025 
1.65% / 1.90%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization37,251 
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit120,000 1.65%12/16/24
Participation agreement118,558 0.84%5/4/21
Secured line of credit5,000 1.90%5/30/22
 19,558,849   
Discount on bonds and notes payable and debt issuance costs(238,123)
Total$19,320,726 
Warehouse Facilities
The Company funds a portion of its loan acquisitions using warehouse facilities. Loan warehousing allows the Company to buy and manage loans prior to transferring them into more permanent financing arrangements.
FFELP loan warehouse facility
As of December 31, 2021, the Company’s FFELP warehouse facility had an aggregate maximum financing amount available of $60.0 million, liquidity provisions through May 23, 2022, and a final maturity of May 22, 2023. As of December 31, 2021, $5.0 million was outstanding under this facility, $55.0 million was available for future funding, and the Company had $0.3 million advanced as equity support. In the event the Company is unable to renew the liquidity provisions by May 23, 2022, the facility would become a term facility at a stepped-up cost, with no additional student loans being eligible for financing, and the Company would be required to refinance the existing loans in the facility by the facility's final maturity date.
Private Education loan warehouse facility
During 2020, the Company obtained a private education loan warehouse facility. As of December 31, 2021, the facility has an aggregate maximum financing amount available of $175.0 million, an advance rate of 80 to 90 percent, liquidity provisions through February 13, 2022, and a final maturity date of February 13, 2023. As of December 31, 2021, $107.0 million was outstanding under this warehouse facility, $68.0 million was available for future funding, and the Company had $11.8 million advanced as equity support.
Consumer loan warehouse facility
The Company had a $100.0 million consumer loan warehouse facility. On March 31, 2021, the Company terminated this facility.
Asset-backed securitizations
The Company has historically relied upon asset-backed securitizations as its most significant source of funding for loans. The net cash flow the Company receives from the securitized loans generally represents the excess amounts, if any, generated by the underlying loans over the amounts required to be paid to the bondholders, after deducting servicing fees and any other expenses relating to the securitizations. The Company’s rights to cash flow from securitized loans are subordinate to bondholder interests, and the securitized loans may fail to generate any cash flow beyond what is due to bondholders. The bonds and notes payable are primarily secured by the loans receivable, related accrued interest, and by the amounts on deposit in the accounts established under the respective financing agreements.
The following tables summarize the asset-backed securitization transactions completed in 2021 and 2020.
Securitizations completed during the year ended December 31, 2021
2021-12021-2Total
Date securities issued6/30/218/31/21
Total original principal amount$797,000 531,300 1,328,300 
Class A senior notes:
Total principal amount$781,000 520,600 1,301,600 
Cost of funds
1-month LIBOR plus 0.50%
1-month LIBOR plus 0.50%
Final maturity date7/25/699/25/69
Class B subordinated notes:
Total principal amount$16,000 10,700 26,700 
Cost of funds
1-month LIBOR plus 1.25%
1-month LIBOR plus 1.20%
Final maturity date7/25/699/25/69
Securitizations completed during the year ended December 31, 2020
2020-12020-22020-32020-4 (a)2020-5 (a)Total
Date securities issued2/20/203/11/203/19/208/27/2010/1/20
Total original principal amount$435,600 272,100 352,600 191,300 295,000 1,546,600 
Class A senior notes:
Total principal amount$424,600 264,300 343,600 191,300 295,000 1,518,800 
Bond discount— (44)(1,503)(19)— (1,566)
Issue price$424,600 264,256 342,097 191,281 295,000 1,517,234 
Cost of funds
1-month LIBOR plus 0.74%
1.83%
1-month LIBOR plus 0.92%
1.42%
1-month LIBOR plus 0.88%
Final maturity date3/26/684/25/683/26/688/27/6810/25/68
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

(a)    Total original principal amount excludes the Class B subordinated tranche for the 2020-4 and 2020-5 transactions, totaling $5.0 million and $7.5 million, respectively, that was retained by the Company at issuance. As of December 31, 2021, the Company had a total of $381.2 million (par value) of its own asset-backed securities that were retained upon initial issuance or repurchased in the secondary market. For accounting purposes, these notes are eliminated in consolidation and are not included in the Company's consolidated financial statements. However, these securities remain legally outstanding at the trust level and the Company could sell these notes to third parties or redeem the notes at par as cash is generated in the trust estate. Upon a sale of these notes to third parties, the Company would obtain cash proceeds equal to the market value of the notes on the date of such sale. Upon sale, these notes would be shown as "bonds and notes payable" in the Company's consolidated balance sheet.
Unsecured Line of Credit
The Company has a $495.0 million unsecured line of credit that has a maturity date of September 22, 2026. 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 $737.5 million, subject to certain conditions. As of December 31, 2021, no amount was outstanding on the line of credit and $495.0 million was available for future use. Interest on amounts borrowed under the line of credit is payable, at the Company's election, at an alternate base rate or a Eurodollar rate, plus a variable rate (LIBOR), in each case as defined in the credit agreement. The initial margin applicable to Eurodollar borrowings is 150 basis points and may vary from 100 to 200 basis points depending on the Company's credit rating.
The line of credit agreement contains certain financial covenants that, if not met, lead to an event of default under the agreement. The covenants include, among others, maintaining:
A minimum consolidated net worth
A minimum recourse indebtedness to adjusted EBITDA (over the last four rolling quarters)
A limitation on recourse indebtedness
A limitation on the amount of unsecuritized private education and consumer loans in the Company’s portfolio
A limitation on permitted investments, including business acquisitions that are not in one of the Company's existing lines of business
As of December 31, 2021, the Company was in compliance with all of these requirements. Many of these covenants are duplicated in the Company's other lending facilities, including its warehouse facilities.
The Company's operating line of credit does not have any covenants related to unsecured debt ratings. However, changes in the Company's ratings have modest implications on the pricing level at which the Company obtains funds.
A default on the Company's other debt facilities would result in an event of default on the Company's unsecured line of credit that would result in the outstanding balance on the line of credit becoming immediately due and payable.
Participation Agreement
The Company has an agreement with Union Bank and Trust Company ("Union Bank"), a related party, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in FFELP loan asset-backed securities. As of December 31, 2021, $254.0 million of FFELP loan asset-backed securities were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement. The agreement automatically renews annually and is terminable by either party upon five business days' notice. The Company can participate FFELP loan asset-backed securities to Union Bank to the extent of availability under the grantor trusts, up to $400.0 million or an amount in excess of $400.0 million if mutually agreed to by both parties. The Company maintains legal ownership of the FFELP loan asset-backed securities and, in its discretion, approves and accomplishes any sale, assignment, transfer, encumbrance, or other disposition of the securities. As such, the FFELP loan asset-backed securities under this agreement have been accounted for by the Company as a secured borrowing.
See note 7 for additional information about the FFELP loan asset-backed securities investments serving as collateral under this participation agreement.
Repurchase Agreements
On May 3, 2021 and June 23, 2021, the Company entered into repurchase agreements with non-affiliated third parties, the proceeds of which are collateralized by certain private education and FFELP loan asset-backed securities. The first agreement has maturity dates of November 20, 2023 and December 20, 2023, or earlier if either party provides 180 days’ prior written notice, and the second agreement has a maturity date of May 27, 2022. The Company incurs interest on amounts outstanding under these agreements based on three-month LIBOR plus an applicable spread. Under the first agreement, the Company is subject to margin deficit payment requirements if the fair value of the securities subject to the agreement is less than the original purchase price of such securities on any scheduled reset date, and under the second agreement, the Company could be subject to margin deficit payment requirements if the fair value of the securities subject to the agreement is less than the original purchase price of such securities and the counter-party provides notice requiring such payment. Included in “bonds and notes payable” as of December 31, 2021 was $208.1 million subject to the first agreement and $275.8 million subject to the second agreement.
See note 7 for additional information about the private education loan asset-backed securities investments serving as collateral for these repurchase agreements.
Debt Covenants
Certain bond resolutions and related credit agreements contain, among other requirements, covenants relating to restrictions on additional indebtedness, limits as to direct and indirect administrative expenses, and maintaining certain financial ratios. Management believes the Company is in compliance with all covenants of the bond indentures and related credit agreements as of December 31, 2021.
Maturity Schedule
Bonds and notes outstanding as of December 31, 2021 are due in varying amounts as shown below.
2022$439,328 
2023415,547 
2024— 
202528,116 
2026— 
2027 and thereafter16,941,096 
$17,824,087 
Generally, the Company's secured financing instruments can be redeemed on any interest payment date at par plus accrued interest. Subject to certain provisions, all bonds and notes are subject to redemption prior to maturity at the option of certain lending subsidiaries.
Accrued Interest Liability
During the first quarter of 2021, the Company reversed a historical accrued interest liability of $23.8 million on certain bonds, which liability the Company determined was no longer probable of being required to be paid. The liability was initially recorded when certain asset-backed securitizations were acquired in 2011 and 2013. The reduction of this liability is reflected in (a reduction of) "interest on bonds and notes payable and bank deposits" in the consolidated statements of income.
Debt Repurchases
The following table summarizes the Company's repurchases of its own debt. Gains/losses recorded by the Company from the repurchase of debt are included in “other” in "other income/expense" on the Company’s consolidated statements of income.
Year ended December 31,
202120202019
Purchase price$(407,487)(25,643)(39,864)
Par value406,875 27,605 40,000 
Remaining debt discount and unamortized cost of issuance(6,163)(38)— 
(Loss) gain$(6,775)1,924 136 

During 2019, the Company extinguished $1.05 billion of notes payable included in certain FFELP asset-backed securitizations prior to the notes’ contractual maturities. To extinguish the notes, the Company paid premiums of $14.0 million and wrote off $2.7 million of debt issuance costs. In total, the Company recognized $16.7 million (pre-tax) in expenses to extinguish these notes, which is included in “other expenses” on the consolidated statements of income.
v3.22.0.1
Derivative Financial Instruments
12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company uses derivative financial instruments primarily to manage interest rate risk. The Company is exposed to interest rate risk in the form of basis risk and repricing risk because the interest rate characteristics of the Company's assets do not match the interest rate characteristics of the funding for those assets. The Company periodically reviews the mismatch related to the interest rate characteristics of its assets and liabilities together with the Company's outlook as to current and future market conditions. Based on those factors, the Company uses derivative instruments as part of its overall risk management strategy. Derivative instruments used as part of the Company's interest rate risk management strategy are discussed below.
Basis Swaps
Interest earned on the majority of the Company's FFELP student loan assets is indexed to the one-month LIBOR rate. Meanwhile, the Company funds a portion of its FFELP loan assets with three-month LIBOR indexed floating rate securities. The differing interest rate characteristics of the Company's loan assets versus the liabilities funding these assets results in basis risk, which impacts the Company's excess spread earned on its loans.
The Company also faces repricing risk due to the timing of the interest rate resets on its liabilities, which may occur as infrequently as once a quarter, in contrast to the timing of the interest rate resets on its assets, which generally occur daily.
As of December 31, 2021, the Company’s AGM operating segment had $15.9 billion, $0.6 billion, and $0.5 billion of FFELP loans indexed to the one-month LIBOR rate, three-month commercial paper rate, and the three-month treasury bill rate, respectively, the indices for which reset daily, and $5.4 billion of debt indexed to three-month LIBOR, the indices for which reset quarterly, and $10.5 billion of debt indexed to one-month LIBOR, the indices for which reset monthly.
The Company has used derivative instruments to hedge its basis risk and repricing risk. The Company has entered into basis swaps in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the “1:3 Basis Swaps”).
The following table summarizes the Company’s 1:3 Basis Swaps outstanding:
As of December 31,
20212020
MaturityNotional amountNotional amount
2021$— 250,000 
20222,000,000 2,000,000 
2023750,000 750,000 
20241,750,000 1,750,000 
20261,150,000 1,150,000 
2027250,000 250,000 
$5,900,000 6,150,000 
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2021 and 2020, was one-month LIBOR plus 9.1 basis points.
Interest rate swaps – floor income hedges
FFELP loans originated prior to April 1, 2006 generally earn interest at the higher of the borrower rate, which is fixed over a period of time, or a floating rate based on the Special Allowance Payments ("SAP") formula set by the Department. The SAP rate is based on an applicable index plus a fixed spread that depends on loan type, origination date, and repayment status. The Company generally finances its student loan portfolio with variable rate debt. In low and/or certain declining interest rate environments, when the fixed borrower rate is higher than the SAP rate, these student loans earn at a fixed rate while the interest on the variable rate debt typically continues to reflect the low and/or declining interest rates. In these interest rate environments, the Company may earn additional spread income that it refers to as floor income.
Depending on the type of loan and when it was originated, the borrower rate is either fixed to term or is reset to an annual rate each July 1. As a result, for loans where the borrower rate is fixed to term, the Company may earn floor income for an extended period of time, which the Company refers to as fixed rate floor income, and for those loans where the borrower rate is reset annually on July 1, the Company may earn floor income to the next reset date, which the Company refers to as variable rate floor income. All FFELP loans first originated on or after April 1, 2006 effectively earn at the SAP rate, since lenders are required to rebate fixed rate floor income and variable rate floor income for these loans to the Department.
Absent the use of derivative instruments, a rise in interest rates may reduce the amount of floor income received and this may have an impact on earnings due to interest margin compression caused by increasing financing costs, until such time as the federally insured loans earn interest at a variable rate in accordance with their SAP formulas. In higher interest rate environments, where the interest rate rises above the borrower rate and fixed rate loans effectively become variable rate loans, the impact of the rate fluctuations is reduced.
As of December 31, 2021 and 2020, the Company had $7.2 billion and $8.4 billion, respectively, of FFELP student loan assets that were earning fixed rate floor income.
The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
As of December 31, 2021As of December 31, 2020
MaturityNotional amountWeighted average fixed rate paid by the Company (a)Notional amountWeighted average fixed rate paid by the Company (a)
2021$— — %$600,000 2.15 %
2022500,000 0.94 500,000 0.94 
2023900,000 0.62 900,000 0.62 
20242,500,000 0.35 2,000,000 0.32 
2025500,000 0.35 500,000 0.35 
2026500,000 1.02 — — 
2031100,000 1.53 — — 
 $5,000,000 0.55 %$4,500,000 0.70 %
 
(a)    For all interest rate derivatives, the Company receives discrete three-month LIBOR.
Consolidated Financial Statement Impact Related to Derivatives - Statements of Income
The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income.
Year ended December 31,
202120202019
Settlements:  
1:3 basis swaps$(1,638)10,378 5,214 
Interest rate swaps - floor income hedges(19,729)(6,699)40,192 
Total settlements - (expense) income(21,367)3,679 45,406 
Change in fair value:   
1:3 basis swaps5,027 (7,462)1,515 
Interest rate swaps - floor income hedges87,786 (20,682)(77,027)
Other— — (683)
Total change in fair value - income (expense)92,813 (28,144)(76,195)
Derivative market value adjustments and derivative
   settlements, net - income (expense)
$71,446 (24,465)(30,789)
Derivative Instruments - Credit and Market Risk
Interest rate movements have an impact on the amount of variation margin the Company may be required to pay to its third-party clearinghouse. The Company attempts to manage market risk associated with interest rates by establishing and monitoring limits as to the types and degree of risk that may be undertaken. The Company's derivative portfolio and hedging strategy is reviewed periodically by its internal risk committee and board of directors' Risk and Finance Committee. With the Company's current derivative portfolio, the Company does not currently anticipate any movement in interest rates having a material impact on its liquidity or capital resources, nor expects future movements in interest rates to have a material impact on its ability to meet variation margin payments to its third-party clearinghouse. Due to the existing low interest rate environment, the Company's exposure to downward movements in interest rates on its interest rate swaps is limited. In addition, the historical high correlation between one-month and three-month LIBOR limits the Company's exposure to interest rate movements on the 1:3 Basis Swaps.
v3.22.0.1
Investments
12 Months Ended
Dec. 31, 2021
Investments [Abstract]  
Investments Investments
Private Education Loan Investment
In December 2020, Wells Fargo announced the sale of its approximately $10.0 billion portfolio of private education loans representing approximately 445,000 borrowers. The Company entered into a joint venture with other investors to acquire the loans. Under the terms of the joint venture agreements, the Company is the servicer of the portfolio, owns an approximate 8 percent interest in residual interests in securitizations of the loans, and serves as the sponsor and administrator for the loan securitizations completed by the joint venture.
The joint venture established a limited partnership that purchased the private education loans and funded such loans with a temporary warehouse facility. The Company’s initial contribution to the limited partnership was $71.1 million. In conjunction with the establishment of the limited partnership, the parties provided additional funding commitments to the partnership, in the event additional funding became necessary after the initial purchase of loans. In accordance with GAAP, the Company’s carrying value of its investment in the limited partnership is accounted for under the equity method of accounting, is reduced by cash distributions and the fair value of its portion of loans transferred into securitizations, and can be less than zero or negative because of the potential future contributions pursuant to the funding commitment. The carrying value of the investment in the limited partnership is also impacted by the amount of the Company’s proportionate share of the net earnings or losses of the partnership.
During 2021, the joint venture completed asset-backed securitization transactions to permanently finance a total of $8.7 billion of the private education loans purchased by the joint venture. Cash distributions, the fair value of the Company’s portion of loans securitized as a result of these securitizations, and the Company’s proportionate share of losses of this partnership were $52.1 million, $51.9 million, and $5.0 million, respectively, and reduced the Company’s carrying value of its limited partnership investment to a credit (negative) balance of $37.9 million. During the fourth quarter of 2021, the Company’s financial commitment to the limited partnership was terminated by the partners of the joint venture, and the Company recognized income of $37.9 million (pre-tax) associated with the termination, which is included in “other” in “other income/expense” on the consolidated statements of income. The Company’s ownership in the residual interest of securitization transactions used to permanently finance the loans are reflected in the table below as “beneficial interest in private education loan securitizations.”
As sponsor of the loan securitizations, the Company is required to provide a certain level of risk retention, and has purchased bonds issued in such securitizations to satisfy this requirement. The bonds purchased to satisfy the risk retention requirement are included in “private education loan asset-backed securities – available for sale” in the table below and as of December 31, 2021, the fair value of these bonds was $412.6 million. The Company must retain these investment securities until the latest of (i) two years from the closing date of the securitization, (ii) the date the aggregate outstanding principal balance of the loans in the securitization is 33% or less of the initial loan balance, and (iii) the date the aggregate outstanding principal balance of the bonds is 33% or less of the aggregate initial outstanding principal balance of the bonds, at which time the Company can sell its investment securities (bonds) to a third party. The Company entered into repurchase agreements with third-parties, the proceeds of which were used to purchase a portion of the asset-backed investments, and such investments serve as collateral on the repurchase obligations.
A summary of the Company's investments follows:
As of December 31, 2021As of December 31, 2020
Amortized costGross unrealized gainsGross unrealized lossesFair valueAmortized costGross unrealized gainsGross unrealized lossesFair value
Investments (at fair value):
FFELP loan asset-backed securities- available-for-sale (a)$480,691 14,710 (719)494,682 338,475 8,040 (13)346,502 
Private education loan asset-backed securities - available-for-sale (b)414,286 507 (2,241)412,552 — — — — 
Other debt securities - available-for-sale22,435 — — 22,435 2,103 — 2,105 
Equity securities60,153 13,930 (2,097)71,986 36,227 8,768 (2,954)42,041 
Total investments (at fair value)$977,565 29,147 (5,057)1,001,655 376,805 16,810 (2,967)390,648 
Other Investments (not measured at fair value):
Other debt securities - held-to-maturity (c)8,200 — 
Venture capital and funds:
Measurement alternative (d)(e)157,609 144,795 
Equity method67,840 14,912 
Total venture capital and funds225,449 159,707 
Real estate
Equity method47,226 50,291 
Notes receivable— 847 
Total real estate47,226 51,138 
Investment in ALLO:
Voting interest/equity method (f)87,247 129,396 
Preferred membership interest and accrued and unpaid preferred return (g)137,342 228,916 
Total investment in ALLO224,589 358,312 
Solar (h)(42,457)(30,373)
Beneficial interest in private education loan securitizations (i)
66,008 — 
Beneficial interest in consumer loan securitizations, net of allowance for credit losses of $4,449 as of December 31, 2020 (i)
28,366 27,954 
Beneficial interest in federally insured student loan securitizations (i)25,768 30,377 
Tax liens, affordable housing, and other4,115 5,177 
Total investments (not measured at fair value)587,264 602,292 
Total investments$1,588,919 $992,940 
(a)    As of December 31, 2021, $254.0 million (par value) of FFELP loan asset-backed securities were subject to participation interests held by Union Bank, as discussed in note 5 under "Participation Agreement."
As of December 31, 2021, the stated maturities of a majority of the Company’s FFELP student loan asset-backed securities classified as available-for-sale were greater than 10 years; however, such securities with a fair value of $77.9 million as of December 31, 2021 are scheduled to mature within the next 10 years, including $25.2 million, $32.1 million, and $20.6 million due within the next one year, 1-5 years, and 6-10 years, respectively.
(b)    As of December 31, 2021, a total of $400.0 million (par value) of private education loan asset-backed securities were subject to repurchase agreements with third-parties, as discussed in note 5 under “Repurchase Agreements.”
As of December 31, 2021, the stated maturities for all the Company’s private education loan asset-backed securities classified as available for sale were greater than 10 years.
(c)    As of December 31, 2021, securities classified as held-to-maturity of $3.5 million and $4.7 million were scheduled to mature within one year and 1-5 years, respectively. As of December 31, 2021, the fair value of these securities approximated their carrying value.
(d)    The Company has an investment in Agile Sports Technologies, Inc. (doing business as “Hudl”) that is included in “venture capital and funds” in the above table. In May 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 second quarter of 2020 to adjust its carrying value to reflect the May 2020 transaction value. This gain is included in “other” in “other income/expense” on the consolidated statements of income. In May 2021, the Company made an additional $5 million investment in Hudl. For accounting purposes, the May 2021 equity raise transaction was not considered an observable market transaction (not orderly) because it was not subject to customary marketing activities and the price was contractually agreed to during Hudl's prior May 2020 equity raise. Accordingly, the Company did not adjust its carrying value of its Hudl investment to the May 2021 transaction value. As of December 31, 2021, the carrying amount of the Company's investment in Hudl is $133.9 million.
David S. Graff, who has served on the Company's Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl.
(e)    In October 2021, CompanyCam Inc., an entity in which the Company has an equity investment, completed an additional equity raise. The Company accounts for its investment in this entity using the measurement alternative method, which requires it to adjust its carrying value of the investment for changes resulting from observable market transactions. As a result of this entity’s equity raise, the Company recognized a $10.3 million (pre-tax) gain during the fourth quarter of 2021 to adjust its carrying value to reflect the October 2021 transaction value. As of December 31, 2021, the carrying amount of this investment is $11.5 million.
(f)    The Company accounts for its voting membership interests in ALLO Holdings LLC, a holding company for ALLO Communications LLC (collectively referred to as "ALLO") under the HLBV method of accounting. During the years ended December 31, 2021 and 2020, the Company recognized pre-tax losses of $42.1 million and $3.6 million, respectively, under the HLBV method of accounting on its ALLO voting membership interests investment.
Assuming ALLO continues its planned growth in existing and new communities, it will continue to invest substantial amounts in property and equipment to build the network and connect customers. The resulting recognition of depreciation and development costs could result in continuing net operating losses by ALLO under GAAP. Applying the HLBV method of accounting, the Company will continue to recognize a significant portion of ALLO’s anticipated losses over the next several years. Income and losses from the Company's investment in ALLO are included in "other" in "other income/expense" on the consolidated statements of income.
(g)    On January 19, 2021, ALLO obtained certain private debt financing facilities from unrelated third-party lenders. With proceeds from this transaction, ALLO redeemed a portion of its non-voting preferred membership interests held by the Company in exchange for an aggregate redemption price payment to the Company of $100.0 million. Under October 2020 recapitalization agreements for ALLO, the parties have agreed to use commercially reasonable efforts (which expressly excludes requiring ALLO to raise any additional equity financing or sell any assets) to cause ALLO to redeem, on or before April 2024, the remaining preferred membership interests of ALLO held by the Company, plus the amount of accrued and unpaid preferred return on such interests.
As of December 31, 2021, the outstanding preferred membership interests of ALLO held by the Company was $137.3 million, which includes accrued and unpaid preferred return of $7.7 million that was capitalized at December 31, 2021. The preferred membership interests of ALLO held by the Company earn a preferred annual return of 6.25 percent. During the years ended December 31, 2021 and 2020, the Company recognized pre-tax income on its ALLO preferred membership interests of $8.4 million and $0.4 million, respectively, that is included in "other" in "other income/expense" on the consolidated statements of income.
(h)    The Company makes investments in entities that promote renewable energy sources (solar). The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods which range from 5 to 6 years. As of December 31, 2021, the Company has funded a total of $227.9 million in solar investments, which includes $59.2 million funded by syndication partners. The carrying value of the Company’s solar investments are reduced by tax credits earned when the solar project is placed in service. The solar investment balance at December 31, 2021 represents the sum of total tax credits earned on solar projects placed in service through December 31, 2021 and the calculated HLBV net losses being larger than total payments made by the Company on such projects. The Company is committed to fund an additional $22.3 million on these projects, of which $17.9 million will be provided by syndication partners.
The Company accounts for its solar investments using the HLBV method of accounting. For the majority of the Company’s solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment. During the years ended December 31, 2021 and 2020, the Company recognized pre-tax losses of $10.1
million and $37.4 million, respectively, on its solar investments. These losses are included in “other” in "other income/expense" on the consolidated statements of income. Losses from solar investments in 2021 and 2020 include losses of $7.1 million and $3.8 million, respectively, attributable to third-party minority interest investors that are included in “net loss attributable to noncontrolling interests” in the consolidated statements of income.
(i)    The Company has partial ownership in certain private education, consumer, and federally insured student loan securitizations. As of the latest remittance reports filed by the various trusts prior to or as of December 31, 2021, the Company's ownership correlates to approximately $688 million, $195 million, and $445 million of private education, consumer, and federally insured student loans, respectively, included in these securitizations.
Impairment Expense and Provision for Beneficial Interests
During the first quarter of 2020, the Company recorded a $26.3 million provision charge related to the Company's beneficial interest in consumer loan securitizations. 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 and recorded an allowance for credit losses of $26.3 million. Additionally, during the first quarter of 2020, the Company recorded a $7.8 million impairment charge related to several of its venture capital investments. 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, and estimated that the fair value of such investments was significantly reduced from their previous carrying value. During the fourth quarter of 2020 and first quarter of 2021, due to improved economic conditions, the Company reduced the allowance for credit losses related to the consumer loan beneficial interests by $9.7 million and $2.4 million, respectively.
During 2021, the Company recorded a total impairment charge of $4.6 million related to several of its venture capital investments accounted for under the measurement alternative method.
The impairment expense and recovery activity described above is included in “impairment expense and provision for beneficial interests, net” on the consolidated statements of income.
v3.22.0.1
Business Combination
12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Business Combination Business Combination
HigherSchool Publishing Company ("HigherSchool")
On December 31, 2020, the Company acquired 100 percent of the outstanding stock of HigherSchool for total cash consideration of $24.7 million. HigherSchool provides supplemental instructional services and educational professional development for K-12 schools. The acquisition of HigherSchool has expanded the Company's professional development and educational instruction services. The operating results of HigherSchool are included in the Education Technology, Services, and Payment Processing operating segment from the date of acquisition.
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

Cash and cash equivalents$
Accounts receivable5,711 
Intangible assets24,200 
Excess cost over fair value of net assets acquired (goodwill)6,292 
Other liabilities(11,510)
Net assets acquired$24,700 

The acquired intangible assets were customer relationships of $24.2 million (10-year useful life).
The $6.3 million of goodwill was assigned to the Education Technology, Services, and Payment Processing operating segment and is not expected to be deductible for tax purposes. The amount allocated to goodwill was primarily attributed to the deferred tax liability related to the difference between the carrying amount and tax basis of acquired identifiable intangible assets.
The pro forma impacts of the HigherSchool acquisition on the Company's historical results prior to the acquisition were not material.
v3.22.0.1
Intangible Assets
12 Months Ended
Dec. 31, 2021
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets Intangible Assets
Intangible assets consist of the following:
Weighted average remaining useful life as of
December 31, 2021 (months)
As of December 31,
20212020
Amortizable intangible assets, net:  
Customer relationships (net of accumulated amortization of $97,398 and $83,419, respectively)
103$47,894 66,974 
Computer software (net of accumulated amortization of $3,669 and $4,127, respectively)
244,135 6,430 
Trade names (net of accumulated amortization of $3,455)
— 1,666 
Total - amortizable intangible assets, net96$52,029 75,070 

The Company recorded amortization expense on its intangible assets of $23.0 million, $30.8 million, and $32.8 million during the years ended December 31, 2021, 2020, and 2019, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of December 31, 2021, the Company estimates it will record amortization expense as follows:
2022$9,939 
20239,830 
20247,457 
20254,644 
20264,517 
2027 and thereafter15,642 
 $52,029 
v3.22.0.1
Goodwill
12 Months Ended
Dec. 31, 2021
Goodwill [Abstract]  
Goodwill Goodwill
The change in the carrying amount of goodwill by reportable operating segment was as follows:
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset Generation and Management (a)Nelnet BankCorporate and Other ActivitiesTotal
Balance as of December 31, 2019$23,639 70,278 21,112 41,883 — — 156,912 
Goodwill acquired— 6,292 — — — — 6,292 
Deconsolidation of ALLO— — (21,112)— — — (21,112)
Balance as of December 31, 2020 and 2021$23,639 76,570 — 41,883 — — 142,092 

(a)    As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of new FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units.
v3.22.0.1
Property and Equipment
12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consisted of the following:
As of December 31,
Useful life20212020
Computer equipment and software
1-5 years
$234,222 172,664 
Building and building improvements
5-48 years
48,782 52,444 
Office furniture and equipment
1-10 years
22,463 21,899 
Leasehold improvements
1-15 years
10,537 9,168 
Transportation equipment
5-10 years
4,857 4,857 
Land3,266 3,642 
Construction in progress2,392 18,478 
326,519 283,152 
Accumulated depreciation(207,106)(159,625)
Total property and equipment, net$119,413 123,527 

The Company recorded depreciation expense on its property and equipment of $50.7 million, $87.9 million, and $72.3 million during the years ended December 31, 2021, 2020, and 2019, respectively.
Impairment charges
During the third quarter of 2021, the Company evaluated the use of office space as a large number of employees continue to work from home due to COVID-19. As a result of this evaluation, the Company recorded a non-cash impairment charge of $14.2 million during the three months ended September 30, 2021. The impairment charge of $13.2 million within its Loan Servicing and Systems operating segment related primarily to building and building improvements. The impairment charge of $1.0 million within its Corporate and Other Activities operating segment related to operating lease assets associated with leased office space which the Company had fully ceased to use prior to the lease term end date. These impairment charges are included in "impairment expense and provision for beneficial interest, net" in the consolidated statements of income.
v3.22.0.1
Shareholders' Equity
12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Stockholders' Equity Shareholders’ Equity
Classes of Common Stock
The Company's common stock is divided into two classes. The Class B common stock has ten votes per share and the Class A common stock has one vote per share on all matters to be voted on by the Company's shareholders. Each Class B share is convertible at any time at the holder's option into one Class A share. With the exception of the voting rights and the conversion feature, the Class A and Class B shares are identical in terms of other rights, including dividend and liquidation rights.
Stock Repurchases
The Company has a stock repurchase program that expires on May 7, 2022 in which it can repurchase up to five million shares of its Class A common stock on the open market, through private transactions, or otherwise. As of December 31, 2021, 2.6 million shares may still be purchased under the Company's stock repurchase program. Shares repurchased by the Company during 2021, 2020, and 2019 are shown in the table below. In accordance with the corporate laws of the state in which the Company is incorporated, all shares repurchased by the Company are legally retired upon acquisition by the Company.
Total shares repurchasedPurchase price
(in thousands)
Average price of shares repurchased (per share)
Year ended December 31, 2021713,274 $58,111 $81.47 
Year ended December 31, 20201,594,394 73,358 46.01 
Year ended December 31, 2019726,273 40,411 55.64 
v3.22.0.1
Earnings per Common Share
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Earnings Per Common Share Earnings per Common Share
Presented below is a summary of the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock.
 Year ended December 31,
202120202019
Common shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotal
Numerator:
Net income attributable to Nelnet, Inc.$386,865 6,421 393,286 347,451 4,992 352,443 139,946 1,857 141,803 
Denominator:
Weighted-average common shares outstanding - basic and diluted37,943,032 629,769 38,572,801 38,506,351 553,237 39,059,588 39,523,082 524,320 40,047,402 
Earnings per share - basic and diluted$10.20 10.20 10.20 9.02 9.02 9.02 3.54 3.54 3.54 
Unvested restricted stock awards are the Company's only potential common shares and, accordingly, there were no awards that were antidilutive and not included in average shares outstanding for the diluted earnings per share calculation.
As of December 31, 2021, a cumulative amount of 221,996 shares have been deferred by non-employee directors under the Directors Stock Compensation Plan and will become issuable upon the termination of service by the respective non-employee director on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation.
v3.22.0.1
Income Taxes
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company is subject to income taxes in the United States, Canada, and Australia. Significant judgment is required in evaluating the Company's tax positions and determining the provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain.
As required by the Income Taxes Topic of the FASB Accounting Standards Codification ("ASC Topic 740"), the Company recognizes in the consolidated financial statements only those tax positions determined to be more likely than not of being sustained upon examination, based on the technical merits of the positions. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change.
As of December 31, 2021, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $19.7 million, which is included in “other liabilities” on the consolidated balance sheet. Of this total, $15.6 million (net of the federal benefit on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods. The Company currently anticipates uncertain tax positions will decrease by $7.2 million prior to December 31, 2022 as a result of a lapse of applicable statutes of limitations, settlements, correspondence with examining authorities, and recognition or measurement considerations with federal and state jurisdictions; however, actual developments in this area could differ from those currently expected. Of the anticipated $7.2 million decrease, $5.7 million, if recognized, would favorably affect the Company's effective tax rate. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows:
Year ended December 31,
20212020
Gross balance - beginning of year$20,318 20,148 
Additions based on tax positions of prior years271 634 
Additions based on tax positions related to the current year2,388 2,523 
Reductions for tax positions of prior years(1,002)(69)
Reductions due to lapse of applicable statutes of limitations(2,297)(2,918)
Gross balance - end of year$19,678 20,318 
All the reductions shown in the table above that are due to prior year tax positions and the lapse of statutes of limitations impacted the effective tax rate.
The Company's policy is to recognize interest and penalties accrued on uncertain tax positions as part of interest expense and other expense, respectively. As of December 31, 2021 and 2020, $5.1 million and $5.4 million in accrued interest and penalties, respectively, were included in “other liabilities” on the consolidated balance sheets. The impact to the consolidated statements of income related to interest expense and penalties for uncertain tax positions was not significant for the years 2021, 2020, and 2019. The impact of timing differences and tax attributes are considered when calculating interest and penalty accruals associated with the unrecognized tax benefits.
The Company and its subsidiaries file a consolidated federal income tax return in the U.S. and the Company or one of its subsidiaries files income tax returns in various state, local, and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2018. The Company is no longer subject to U.S. state and local income tax examinations by tax authorities prior to 2010. As of December 31, 2021, the Company has tax uncertainties that remain unsettled in the jurisdiction of California (2010 through 2017).
The provision for income taxes consists of the following components:
Year ended December 31,
202120202019
Current:
Federal$55,239 82,832 38,931 
State4,792 9,815 3,546 
Foreign169 239 239 
Total current provision60,200 92,886 42,716 
Deferred:
Federal46,145 7,269 (4,280)
State9,647 718 (2,922)
Foreign(170)(13)(63)
Total deferred provision55,622 7,974 (7,265)
Provision for income tax expense$115,822 100,860 35,451 

The differences between the income tax provision computed at the statutory federal corporate tax rate and the financial statement provision for income taxes are shown below:
Year ended December 31,
202120202019
Tax expense at federal rate21.0 %21.0 %21.0 %
Increase (decrease) resulting from:
State tax, net of federal income tax benefit3.0 2.8 2.5 
Tax credits(0.8)(1.1)(3.0)
Provision for uncertain federal and state tax matters(0.1)(0.2)(0.7)
Other(0.3)(0.2)0.2 
Effective tax rate22.8 %22.3 %20.0 %
The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following:
As of December 31,
20212020
Deferred tax assets:
Deferred revenue$21,593 18,081 
Student loans19,776 26,894 
Accrued expenses10,712 10,661 
State tax credit carryforwards8,546 5,987 
Stock compensation4,027 2,546 
Lease liability3,685 4,123 
Net operating losses2,410 647 
Basis in certain derivative contracts— 5,061 
Securitizations— 694 
Total gross deferred tax assets70,749 74,694 
Less state tax valuation allowance(2,084)(569)
Net deferred tax assets68,665 74,125 
Deferred tax liabilities:
Partnership basis100,428 64,023 
Basis in certain derivative contracts15,927 — 
Depreciation15,264 14,092 
Debt and equity investments12,859 20,538 
Loan origination services4,930 5,040 
Intangible assets4,772 7,703 
Lease right of use asset3,317 4,037 
Securitization128 — 
Other1,665 661 
Total gross deferred tax liabilities159,290 116,094 
Net deferred tax asset (liability)$(90,625)(41,969)

The Company has performed an evaluation of the recoverability of deferred tax assets. In assessing the realizability of the Company's deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible or eligible for utilization of a tax credit carryforward. Management considers the scheduled reversals of deferred tax liabilities, projected taxable income, carry back opportunities, and tax planning strategies in making the assessment of the amount of the valuation allowance. With the exception of a portion of the Company's state net operating losses, it is management's opinion that it is more likely than not that the deferred tax assets will be realized and should not be reduced by a valuation allowance. The amount of deferred tax assets considered realizable could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.
As of December 31, 2021 and 2020, the Company had a current income tax receivable of $8.1 million and $21.5 million, respectively, that is included in "other assets" on the consolidated balance sheets. Net deferred tax assets of $27.3 million and net deferred tax liabilities of $117.9 million are included in “other assets” and “other liabilities,” respectively, on the consolidated balance sheets.
v3.22.0.1
Segment Reporting
12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company's reportable operating segments include:
Loan Servicing and Systems
Education Technology, Services, and Payment Processing
Communications
Asset Generation and Management
Nelnet Bank
The Company earns fee-based revenue through its Loan Servicing and Systems and Education Technology, Services, and Payment Processing operating segments and earned revenue from its Communications operating segment prior to its deconsolidation on December 21, 2020. In addition, the Company earns interest income on its loan portfolio in its Asset Generation and Management operating segment. On November 2, 2020, the Company launched operations of Nelnet Bank. Nelnet bank operates as an internet bank franchise focused primarily on the private education loan marketplace.
The Company’s operating segments are defined by the products and services they offer and the types of customers they serve, and they reflect the manner in which financial information is currently evaluated by management. See note 1, "Description of Business," for a description of each operating segment, including the primary products and services offered.
The management reporting process measures the performance of the Company’s operating segments based on the management structure of the Company, as well as the methodology used by management to evaluate performance and allocate resources. Executive management (the "chief operating decision maker") evaluates the performance of the Company’s operating segments based on their financial results prepared in conformity with U.S. GAAP.
The accounting policies of the Company’s operating segments are the same as those described in the summary of significant accounting policies. Intersegment revenues are charged by a segment that provides a product or service to another segment. Intersegment revenues and expenses are included within each segment consistent with the income statement presentation provided to management. Income taxes are allocated based on 24% of income before taxes for each individual operating segment, except for Nelnet Bank, which reflects Nelnet Bank’s actual tax expense/benefit as allocated and reflected in its Call Report filed with the Federal Deposit Insurance Corporation. The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities.
Corporate and Other Activities
Other business activities and operating segments that are not reportable are combined and included in Corporate and Other Activities. Corporate and Other Activities includes the following items:
The majority of the Company’s investment activities, including investments accounted for under the equity method. See note 7 for the amounts of investments in equity method investees.
Interest expense incurred on unsecured and certain other corporate related debt transactions
Other product and service offerings that are not considered reportable operating segments including, but not limited to, WRCM, the SEC-registered investment advisor subsidiary
Corporate and Other Activities also includes certain corporate activities and overhead functions related to executive management, internal audit, human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services. Certain shared service costs incurred to support Nelnet Bank will not be allocated to Nelnet Bank until the end of the Bank’s de novo period (November 2023).
Segment Results
The following tables include the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements.
 Year ended December 31, 2021
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunications (a)Asset
Generation and
Management
Nelnet BankCorporate and Other ActivitiesEliminationsTotal
Total interest income$137 1,075 — 506,901 7,721 9,801 (1,800)523,835 
Interest expense94 — — 172,918 1,507 3,515 (1,800)176,233 
Net interest income (expense)43 1,075 — 333,983 6,214 6,286 — 347,602 
Less (negative provision) provision for loan losses— — — (13,220)794 — — (12,426)
Net interest income after provision for loan losses43 1,075 — 347,203 5,420 6,286 — 360,028 
Other income/expense:      
Loan servicing and systems revenue486,363 — — — — — — 486,363 
Intersegment revenue33,956 12 — — — — (33,968)— 
Education technology, services, and payment processing revenue— 338,234 — — — — — 338,234 
Communications revenue— — — — — — — — 
Other3,307 — — 34,306 713 40,356 — 78,681 
Gain on sale of loans— — — 18,715 — — — 18,715 
Gain from deconsolidation of ALLO— — — — — — — — 
Impairment expense and provision for beneficial interests, net(13,243)— — 2,436 — (5,553)— (16,360)
Derivative settlements, net— — — (21,367)— — — (21,367)
Derivative market value adjustments, net— — — 92,813 — — — 92,813 
Total other income/expense510,383 338,246 — 126,903 713 34,803 (33,968)977,079 
Cost of services:
Cost to provide education technology, services, and payment processing services— 108,660 — — — — — 108,660 
Cost to provide communications services— — — — — — — — 
Total cost of services— 108,660 — — — — — 108,660 
Operating expenses:      
Salaries and benefits297,406 112,046 — 2,135 5,042 90,502 — 507,132 
Depreciation and amortization25,649 11,404 — — — 36,682 — 73,741 
Other expenses52,720 19,318 — 13,487 1,776 58,173 — 145,469 
Intersegment expenses, net72,206 15,180 — 34,868 107 (88,393)(33,968)— 
Total operating expenses447,981 157,948 — 50,490 6,925 96,964 (33,968)726,342 
Income (loss) before income taxes62,445 72,713 — 423,616 (792)(55,875)— 502,105 
Income tax (expense) benefit(14,987)(17,451)— (101,668)175 18,109 — (115,822)
Net income (loss)47,458 55,262 — 321,948 (617)(37,766)— 386,283 
Net loss attributable to noncontrolling interests— — — — — 7,003 — 7,003 
Net income (loss) attributable to Nelnet, Inc.$47,458 55,262 — 321,948 (617)(30,763)— 393,286 
Total assets as of December 31, 2021$296,618 443,788 — 18,965,371 535,948 1,963,032 (526,716)21,678,041 

(a)    On December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. See note 2, “ALLO Recapitalization,” for a description of the transaction and a summary of the deconsolidation impact. Accordingly, there are no operating results for the (former) Communications operating segment in 2021.
 Year ended December 31, 2020
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunications (a)Asset
Generation and
Management
Nelnet Bank (b)Corporate and Other ActivitiesEliminationsTotal
Total interest income$436 3,036 611,474 414 5,775 (1,480)619,656 
Interest expense121 54 — 328,157 41 3,178 (1,480)330,071 
Net interest income (expense)315 2,982 283,317 373 2,597 — 289,585 
Less (negative provision) provision for loan losses— — — 63,029 330 — — 63,360 
Net interest income after provision for loan losses315 2,982 220,288 43 2,597 — 226,225 
Other income/expense:
Loan servicing and systems revenue451,561 — — — — — — 451,561 
Intersegment revenue36,520 20 — — — — (36,540)— 
Education technology, services, and payment processing revenue— 282,196 — — — — — 282,196 
Communications revenue— — 76,643 — — — — 76,643 
Other9,421 373 1,561 7,189 48 38,969 — 57,561 
Gain on sale of loans— — — 33,023 — — — 33,023 
Gain from deconsolidation of ALLO— — — — — 258,588 — 258,588 
Impairment expense and provision for beneficial interests, net— — — (16,607)— (8,116)— (24,723)
Derivative settlements, net— — — 3,679 — — — 3,679 
Derivative market value adjustments, net— — — (28,144)— — — (28,144)
Total other income/expense497,502 282,589 78,204 (860)48 289,441 (36,540)1,110,384 
Cost of services:
Cost to provide education technology, services, and payment processing services— 82,206 — — — — — 82,206 
Cost to provide communications services— — 22,812 — — — — 22,812 
Total cost of services— 82,206 22,812 — — — — 105,018 
Operating expenses:
Salaries and benefits285,526 98,847 30,935 1,747 36 84,741 — 501,832 
Depreciation and amortization37,610 9,459 42,588 — — 29,043 — 118,699 
Other expenses57,420 14,566 13,327 15,806 135 59,320 — 160,574 
Intersegment expenses, net63,886 14,293 1,732 39,172 — (82,543)(36,540)— 
Total operating expenses444,442 137,165 88,582 56,725 171 90,561 (36,540)781,105 
Income (loss) before income taxes53,375 66,200 (33,188)162,703 (80)201,477 — 450,486 
Income tax (expense) benefit(12,810)(15,888)7,965 (39,049)20 (41,098)— (100,860)
Net income (loss)40,565 50,312 (25,223)123,654 (60)160,379 — 349,626 
Net loss attributable to noncontrolling interests— — — — — 2,817 — 2,817 
Net income (loss) attributable to Nelnet, Inc.$40,565 50,312 (25,223)123,654 (60)163,196 — 352,443 
Total assets as of December 31, 2020$190,297 436,702 — 20,773,968 216,937 1,225,790 (197,534)22,646,160 

(a)    On December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. See note 2, “ALLO Recapitalization,” for a description of the transaction and a summary of the deconsolidation impact. Accordingly, the operating results for the Communications operating segment in the table above are for the period from January 1, 2020 through December 21, 2020.
(b)    Nelnet Bank launched operations on November 2, 2020. Accordingly, the operating results for the Nelnet Bank operating segment in the table above are for the period from November 2, 2020 through December 31, 2020.
 Year ended December 31, 2019
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Nelnet Bank (a)Corporate and Other ActivitiesEliminationsTotal
Total interest income$2,031 9,244 931,963 — 9,232 (3,796)948,677 
Interest expense115 46 — 693,375 — 9,587 (3,796)699,327 
Net interest income (expense)1,916 9,198 238,588 — (355)— 249,350 
Less (negative provision) provision for loan losses— — — 39,000 — — — 39,000 
Net interest income after provision for loan losses1,916 9,198 199,588 — (355)— 210,350 
Other income/expense:
Loan servicing and systems revenue455,255 — — — — — — 455,255 
Intersegment revenue46,751 — — — — — (46,751)— 
Education technology, services, and payment processing revenue— 277,331 — — — — — 277,331 
Communications revenue— — 64,269 — — — — 64,269 
Other9,736 259 1,509 13,088 — 23,327 — 47,918 
Gain on sale of loans— — — 17,261 — — — 17,261 
Gain from deconsolidation of ALLO— — — — — — — — 
Impairment expense and provision for beneficial interests, net— — — — — — — — 
Derivative settlements, net— — — 45,406 — — — 45,406 
Derivative market value adjustments, net— — — (76,195)— — — (76,195)
Total other income/expense511,742 277,590 65,778 (440)— 23,327 (46,751)831,245 
Cost of services:
Cost to provide education technology, services, and payment processing services— 81,603 — — — — — 81,603 
Cost to provide communications services— — 20,423 — — — — 20,423 
Total cost of services— 81,603 20,423 — — — — 102,026 
Operating expenses:
Salaries and benefits276,136 94,666 21,004 1,545 — 70,152 — 463,503 
Depreciation and amortization34,755 12,820 37,173 — — 20,300 — 105,049 
Other expenses71,064 22,027 15,165 34,445 — 51,571 — 194,272 
Intersegment expenses, net54,325 13,405 2,962 47,362 — (71,303)(46,751)— 
Total operating expenses436,280 142,918 76,304 83,352 — 70,720 (46,751)762,824 
Income (loss) before income taxes77,378 62,267 (30,946)115,796 — (47,748)— 176,745 
Income tax (expense) benefit(18,571)(14,944)7,427 (27,792)— 18,428 — (35,451)
Net income (loss)58,807 47,323 (23,519)88,004 — (29,320)— 141,294 
Net loss attributable to noncontrolling interests— — — — — 509 — 509 
Net income (loss) attributable to Nelnet, Inc.$58,807 47,323 (23,519)88,004 — (28,811)— 141,803 
Total assets as of December 31, 2019$290,311 506,382 303,347 22,128,917 — 627,897 (147,884)23,708,970 
(a)    Nelnet Bank launched operations on November 2, 2020. Accordingly, there are no operating results for the Nelnet Bank operating segment in the year ended December 31, 2019
v3.22.0.1
Disaggregated Revenue and Deferred Revenue
12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregated Revenue and Deferred Revenue Disaggregated Revenue and Deferred Revenue
The following provides additional revenue recognition information for the Company’s fee-based reportable operating segments.
Loan Servicing and Systems Revenue
Loan servicing and systems revenue consists of the following items:
Loan servicing revenue - Loan servicing revenue consideration is determined from individual contracts with customers and is calculated monthly based on the dollar value of loans, number of loans, number of borrowers serviced for each customer, or number of transactions. Loan servicing requires a significant level of integration and the individual components are not considered distinct. The Company performs various services, including, but not limited to, (i) application processing, (ii) monthly servicing, (iii) conversion processing, and (iv) fulfillment services, during each distinct service period. Even though the mix and quantity of activities that the Company performs each period may differ, the nature of the activities are substantially the same. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits.
Software services revenue - Software services revenue consideration is determined from individual contracts with customers and includes license and maintenance fees associated with loan software products, generally in a remote hosted environment, and computer and software consulting. Usage-based revenue, based on each loan or unique borrower, from remote hosted licenses is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits. Revenue from any non-refundable up-front fee is recognized ratably over the contract period, as the fee relates to set-up activities that provide no incremental benefit to the customers. Computer and software consulting is also capable of being distinct and accounted for as a separate performance obligation. Revenue allocated to computer and software consulting is recognized as services are provided.
Outsourced services revenue - Outsourced services revenue consideration is determined from individual contracts with customers and is calculated monthly based on the volume of services. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits.
The following table provides disaggregated revenue by service offering:
Year ended December 31,
202120202019
Government servicing - Nelnet$167,579 146,798 157,991 
Government servicing - Great Lakes193,214 179,872 185,656 
Private education and consumer loan servicing47,302 32,492 36,788 
FFELP servicing18,281 20,183 25,043 
Software services34,600 41,999 41,077 
Outsourced services and other25,387 30,217 8,700 
Loan servicing and systems revenue$486,363 451,561 455,255 
Education Technology, Services, and Payment Processing Revenue
Education technology, services, and payment processing revenue consists of the following items:
Tuition payment plan services - Tuition payment plan services consideration is determined from individual plan agreements, which are governed by plan service agreements, and includes access to a remote hosted environment and management of payment processing. The management of payment processing is considered a distinct performance obligation when sold with the remote hosted environment. Revenue for each performance obligation is allocated to the distinct service period, the academic school term, and recognized ratably over the service period as customers simultaneously receive and consume benefits.
Payment processing - Payment processing consideration is determined from individual contracts with customers and includes electronic transfer and credit card processing, reporting, virtual terminal solutions, and specialized integrations to business software for education and non-education markets. Volume-based revenue from payment processing is allocated and recognized to the distinct service period, based on when each transaction is completed, and recognized as control transfers as customers simultaneously receive and consume benefits. The electronic transfer and credit card processing consideration is recognized as revenue on a gross basis as the Company is the principal in the delivery of the payment processing. The Company has concluded it is the principal as it controls the services before delivery to the educational institution or business, it is primarily responsible for the delivery of the services, and it has discretion in setting prices charged to its customers. In addition, the Company has the unilateral ability to accept or reject a transaction based on criteria established by the Company. The Company is liable for the costs of processing the transactions and records such costs within "cost to provide education technology, services, and payment processing services."
Education technology and services - Education technology and services consideration is determined from individual contracts with customers and is based on the services selected by the customer. Services in K-12 private and faith-based markets primarily includes (i) assistance with financial needs assessment, (ii) school information system software that automates administrative processes such as admissions, enrollment, scheduling, cafeteria management, attendance, and grade book management, and (iii) professional development and educational instruction services. Revenue for these services is recognized for the consideration the Company has a right to invoice, the amount of which corresponds directly with the value provided to the customer based on the performance completed. Services provided to the higher education market include payment technology and processing that allow for electronic billing and payment of campus charges. These services are considered distinct performance obligations. Revenue for each performance obligation is allocated to the distinct service period, typically a month or based on when each transaction is completed, and recognized as control transfers as customers simultaneously receive and consume benefits.
The following table provides disaggregated revenue by service offering:
Year ended December 31,
202120202019
Tuition payment plan services$103,970 100,674 106,682 
Payment processing127,080 114,304 110,848 
Education technology and services105,186 65,885 58,578 
Other1,998 1,333 1,223 
Education technology, services, and payment processing revenue$338,234 282,196 277,331 
Cost to provide education technology, services, and payment processing services is primarily associated with providing payment processing services. Interchange and payment network fees are charged by the card associations or payment networks. Depending upon the transaction type, the fees are a percentage of the transaction’s dollar value, a fixed amount, or a combination of the two methods. Other items included in cost to provide education technology, services, and payment processing services include salaries and benefits and third-party professional service costs directly related to providing professional development and educational instruction services to teachers, school leaders, and students.
Communications Revenue
Communications revenue is derived principally from internet, television, and telephone services and is billed as a flat fee in advance of providing the service. Revenues for usage-based services, such as access charges billed to other telephone carriers for originating and terminating long-distance calls on the Company's network, are billed in arrears. These are each considered distinct performance obligations. Revenue is recognized monthly for the consideration the Company has a right to invoice, the amount of which corresponds directly with the value provided to the customer based on the performance completed. The Company recognizes revenue from these services in the period the services are rendered rather than billed. Revenue received or receivable in advance of the delivery of services is included in deferred revenue. Earned but unbilled usage-based services are recorded in accounts receivable.
The following table provides disaggregated revenue by service offering and customer type. The amounts listed for 2020 reflect activity prior to ALLO’s deconsolidation on December 21, 2020:
Period from January 1 2020 - December 21, 2020Year ended December 31, 2019
Internet$48,362 38,239 
Television17,091 16,196 
Telephone11,037 9,705 
Other153 129 
Communications revenue$76,643 64,269 
Residential revenue$58,029 48,344 
Business revenue18,038 15,689 
Other576 236 
Communications revenue$76,643 64,269 
Cost to provide communications services is primarily associated with television programming costs. ALLO has various contracts to obtain television programming from programming vendors whose compensation is typically based on a flat fee per customer. The cost of the right to exhibit network programming under such arrangements is recorded in the month the programming is available for exhibition. Programming costs are paid each month based on calculations performed by ALLO and are subject to periodic audits performed by the programmers. Other items in cost to provide communications services include connectivity, franchise, and other regulatory costs directly related to providing internet and telephone services.
Other Income
The following table provides the components of "other" in “other income/expense” on the consolidated statements of income:
Year ended December 31,
202120202019
Income/gains from investments, net$91,593 56,402 8,356 
ALLO preferred return8,427 386 — 
Investment advisory services7,773 10,875 2,941 
Borrower late fee income3,444 5,194 12,884 
Management fee revenue3,307 9,421 9,736 
Loss from ALLO voting membership interest investment(42,148)(3,565)— 
Loss from solar investments(10,132)(37,423)(2,220)
(Loss) gain on debt repurchased(6,775)1,924 136 
Other23,192 14,347 16,085 
  Other income$78,681 57,561 47,918 

Investment advisory fees - Investment advisory services are provided by WRCM, the Company's SEC-registered investment advisor subsidiary, under various arrangements. The Company earns monthly fees based on the monthly outstanding balance of investments and certain performance measures, which are recognized monthly as the uncertainty of the transaction price is resolved.
Borrower late fee income - Late fee income is earned by the education lending subsidiaries. Revenue is allocated to the distinct service period, based on when each transaction is completed.
Management fee revenue - Management fee revenue is earned for providing administrative support and marketing services, which primarily was to Great Lakes' former parent company under a contract that expired in January 2021. Revenue is allocated to the distinct service period, based on when each transaction is completed.
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
Balance as of December 31, 2018$4,413 30,556 2,551 1,602 39,122 
Deferral of revenue3,585 93,373 36,024 3,505 136,487 
Recognition of revenue(5,286)(91,855)(35,343)(3,479)(135,963)
Balance as of December 31, 20192,712 32,074 3,232 1,628 39,646 
Deferral of revenue2,490 90,183 43,596 3,209 139,478 
Recognition of revenue(3,824)(90,409)(42,903)(3,286)(140,422)
Deconsolidation of ALLO— — (3,925)— (3,925)
Business acquisition— 1,419 — — 1,419 
Balance as of December 31, 20201,378 33,267 — 1,551 36,196 
Deferral of revenue5,882 109,278 — 5,775 120,935 
Recognition of revenue(4,844)(105,801)— (5,316)(115,961)
Balance as of December 31, 2021$2,416 36,744 — 2,010 41,170 
v3.22.0.1
Major Customer
12 Months Ended
Dec. 31, 2021
Risks and Uncertainties [Abstract]  
Major Customer Major Customer
Nelnet Servicing and Great Lakes, subsidiaries of the Company, each earn loan servicing revenue from a servicing contract with the Department. Revenue earned by Nelnet Servicing related to this contract was $167.6 million, $146.8 million, and $158.0 million for the years ended December 31, 2021, 2020, and 2019, respectively. Revenue earned by Great Lakes related to this contract was $193.2 million, $179.9 million, and $185.7 million for the years ended December 31, 2021, 2020, and 2019, respectively.
Nelnet Servicing's and Great Lakes' student loan servicing contracts with the Department are scheduled to expire on December 14, 2023. In 2017, the Department initiated a contract procurement process referred to as the Next Generation Financial Services Environment ("NextGen") for a new framework for the servicing of all student loans owned by the Department. The Consolidated Appropriations Act, 2021 contains provisions directing certain aspects of the NextGen process, including that any new federal student loan servicing environment is required to provide for the participation of multiple student loan servicers and the allocation of borrower accounts to eligible student loan servicers based on performance. The Company cannot predict the timing, nature, or ultimate outcome of NextGen or any other contract procurement process by the Department.
v3.22.0.1
Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
The following table provides supplemental balance sheet information related to leases:
As of December 31,
20212020
Operating lease ROU assets, which is included in "other assets" on the
     consolidated balance sheet
$14,314 18,301 
Operating lease liabilities, which is included in "other liabilities" on the
     consolidated balance sheet
$15,899 18,733 
The following table provides components of lease expense:
Year ended December 31,
202120202019
Rental expense, which is included in "other expenses" on the
      consolidated statements of income (a)
$9,386 11,885 11,171 
Rental expense, which is included in "cost to provide communications
      services" on the consolidated statements of income (a)
— 1,997 1,609 
Total operating rental expense$9,386 13,882 12,780 
(a) Includes short-term and variable lease costs, which are immaterial.
Weighted average remaining lease term and discount rate are shown below:
As of December 31,
20212020
Weighted average remaining lease term (years)5.155.65
Weighted average discount rate3.23 %2.43 %
Maturity of lease liabilities are shown below:
2022$5,816 
20234,122 
20241,757 
20251,421 
2026731 
2027 and thereafter3,702 
Total lease payments17,549 
Imputed interest(1,650)
Total$15,899 
v3.22.0.1
Defined Contribution Benefit Plan
12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Defined Contribution Benefit Plan Defined Contribution Benefit PlanThe Company has a 401(k) savings plan that covers substantially all of its employees. Employees may contribute up to 100 percent of their pre-tax salary, subject to IRS limitations. The Company matches up to 100 percent on the first 3 percent of contributions and 50 percent on the next 2 percent. The Company made contributions to the plan of $11.2 million, $11.7 million, and $10.8 million during the years ended December 31, 2021, 2020, and 2019, respectively.
v3.22.0.1
Stock Based Compensation Plans
12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock Based Compensation Plan Stock Based Compensation Plans
Restricted Stock Plan
The following table summarizes restricted stock activity:
Year ended December 31,
202120202019
Non-vested shares at beginning of year552,456 549,845 532,336 
Granted249,096 151,639 186,281 
Vested(116,842)(114,282)(109,651)
Canceled(24,544)(34,746)(59,121)
Non-vested shares at end of year660,166 552,456 549,845 
As of December 31, 2021, there was $23.5 million of unrecognized compensation cost included in equity on the consolidated balance sheet related to restricted stock, which is expected to be recognized as compensation expense in future periods as shown in the table below.
2022$8,795 
20235,563 
20243,615 
20252,267 
20261,355 
2027 and thereafter1,907 
$23,502 
For the years ended December 31, 2021, 2020, and 2019, the Company recognized compensation expense of $10.4 million, $7.3 million, and $6.4 million, respectively, related to shares issued under the restricted stock plan, which is included in "salaries and benefits" on the consolidated statements of income.
Employee Share Purchase Plan
The Company has an employee share purchase plan pursuant to which employees are entitled to purchase Class A common stock from payroll deductions at a 15 percent discount from market value. During the years ended December 31, 2021, 2020, and 2019, the Company recognized compensation expense of $0.2 million, $0.4 million, and $0.3 million, respectively, in connection with issuing 24,205 shares, 36,687 shares, and 33,250 shares, respectively, under this plan, which is included in "salaries and benefits" on the consolidated statements of income.
Non-employee Directors Compensation Plan
The Company has a compensation plan for non-employee directors pursuant to which non-employee directors can elect to receive their annual retainer fees in the form of cash or Class A common stock. If a non-employee director elects to receive Class A common stock, the number of shares of Class A common stock that are awarded is equal to the amount of the annual retainer fee otherwise payable in cash divided by 85 percent of the fair market value of a share of Class A common stock on the date the fee is payable. Non-employee directors who choose to receive Class A common stock may also elect to defer receipt of the Class A common stock until termination of their service on the board of directors.
For the years ended December 31, 2021, 2020, and 2019, the Company recognized $1.4 million, $1.2 million, and $1.2 million, respectively, of expense related to this plan, which is included in "other expenses" on the consolidated statements of income. The following table provides the number of shares awarded under this plan for the years ended December 31, 2021, 2020, and 2019.
Shares issued -
not deferred
Shares issued-
deferred
Total
Year ended December 31, 20219,958 12,072 22,030 
Year ended December 31, 202012,740 16,513 29,253 
Year ended December 31, 20199,588 11,212 20,800 

As of December 31, 2021, a cumulative amount of 221,996 shares have been deferred by directors and will be issued upon the termination of their service on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation.
v3.22.0.1
Related Parties
12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Related Parties Related Parties (dollar amounts in this note are not in thousands)
Transactions with Union Bank and Trust Company
Union Bank and Trust Company ("Union Bank") is controlled by Farmers & Merchants Investment Inc. (“F&M”), which owns a majority of Union Bank's common stock and a minority share of Union Bank's non-voting non-convertible preferred stock. Michael S. Dunlap, Executive Chairman and a member of the board of directors and a significant shareholder of the Company, along with his spouse and children, owns or controls a significant portion of the stock of F&M, and Mr. Dunlap's sister, Angela L. Muhleisen, along with her spouse and children, also owns or controls a significant portion of F&M stock. Mr. Dunlap serves as a Director and Chairman of F&M, and as a Director of Union Bank. Ms. Muhleisen serves as a Director and Chief Executive Officer of F&M and as a Director, Chairperson, President, and Chief Executive Officer of Union Bank. Union Bank is deemed to have beneficial ownership of a significant number of shares of the Company because it serves in a capacity of trustee or account manager for various trusts and accounts holding shares of the Company, and may share voting and/or investment power with respect to such shares. Mr. Dunlap and Ms. Muhleisen beneficially own a significant percent of the voting rights of the Company's outstanding common stock.
The Company has entered into certain contractual arrangements with Union Bank. These transactions are summarized below.
Loan Purchases
The Company purchased $22.3 million (par value), $144.9 million (par value), and $67.7 million (par value) of private education loans from Union Bank in 2021, 2020, and 2019, respectively. In addition, the Company purchased $32.6 million (par value) of consumer loans from Union Bank in 2019. There were no consumer loan purchases in 2021 or 2020. The net premiums paid by the Company on these loan acquisitions was $0.4 million, $2.6 million, and $1.2 million in 2021, 2020, and 2019, respectively.
The Company has an agreement with Union Bank in which the Company provides marketing, origination, and loan servicing services to Union Bank related to private education loans. Union Bank paid $0.1 million, $2.0 million, and $1.8 million in marketing fees to the Company in 2021, 2020, and 2019, respectively, under this agreement.
Loan Servicing
The Company serviced $262.6 million, $331.3 million, and $395.5 million of FFELP and private education loans for Union Bank as of December 31, 2021, 2020, and 2019, respectively. Servicing and origination fee revenue earned by the Company from servicing loans for Union Bank was $0.5 million, $0.7 million, and $0.6 million in 2021, 2020, and 2019, respectively.
Funding - Participation Agreements
The Company maintains an agreement with Union Bank, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in student loans (the “FFELP Participation Agreement”). The Company uses this facility as a source to fund FFELP student loans. As of December 31, 2021 and 2020, $967.5 million and $874.2 million, respectively, of loans 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. This agreement provides beneficiaries of Union Bank's grantor trusts with access to investments in interests in student loans,
while providing liquidity to the Company on a short-term basis. The Company can participate loans to Union Bank to the extent of availability under the grantor trusts, up to $900 million or an amount in excess of $900 million if mutually agreed to by both parties. Loans participated under this agreement have been accounted for by the Company as loan sales. Accordingly, the participation interests sold are not included on the Company's consolidated balance sheets.
The Company maintains an agreement with Union Bank, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in FFELP loan asset-backed securities. As of December 31, 2021 and 2020, $254.0 million and $118.6 million, respectively, of FFELP loan asset-backed securities were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement. The FFELP loan asset-backed securities under this agreement have been accounted for by the Company as a secured borrowing. See note 5 for additional information.
Funding - Real Estate
401 Building, LLC (“401 Building”) is an entity that was established in 2015 for the sole purpose of acquiring, developing, and owning a commercial real estate property in Lincoln, Nebraska. The Company owns 50% of 401 Building. On May 1, 2018, Union Bank, as lender, received a $1.5 million promissory note from 401 Building. The promissory note carries an interest rate of 6.00% and has a maturity date of December 1, 2032.
330-333, LLC (“330-333”) is an entity that was established in 2016 for the sole purpose of acquiring, developing, and owning a commercial real estate property in Lincoln, Nebraska. The Company owns 50% of 330-333. On October 22, 2019, Union Bank, as lender, received a $162,000 promissory note from 330-333. The promissory note carries an interest rate of 6.00% and has a maturity date of December 1, 2032.
12100.5 West Center, LLC ("West Center") is an entity that was established in 2016 for the sole purpose of acquiring, developing, and owning a commercial real estate property in Omaha, Nebraska. The Company owns 33.33% of West Center. On October 29, 2019, Union Bank, as lender, received a $2.9 million promissory note from West Center. The promissory note carries an interest rate of 3.85% and has a maturity date of October 30, 2024.
Operating Cash Accounts
The majority of the Company's cash operating accounts are maintained at Union Bank. The Company also invests amounts in the Short term Federal Investment Trust (“STFIT”) of the Student Loan Trust Division of Union Bank, which are included in “cash and cash equivalents - held at a related party” and “restricted cash - due to customers” on the accompanying consolidated balance sheets. As of December 31, 2021 and 2020, the Company had $380.2 million and $285.6 million, respectively, invested in the STFIT or deposited at Union Bank in operating accounts, of which $284.8 million and $197.6 million as of December 31, 2021 and 2020, respectively, represented cash collected for customers. Interest income earned by the Company on the amounts invested in the STFIT and in cash operating accounts in 2021, 2020, and 2019, was $0.2 million, $0.5 million, and $1.6 million, respectively.
529 Plan
The Company provides certain 529 Plan administration services to certain college savings plans (the “College Savings Plans”) through a contract with Union Bank, as the program manager. Union Bank is entitled to a fee as program manager pursuant to its program management agreement with the College Savings Plans. For the years ended December 31, 2021, 2020, and 2019, the Company has received fees of $3.5 million, $1.3 million, and $3.7 million, respectively, from Union Bank related to the administration services provided to the College Savings Plans.
During 2021 and 2020, certain call center services were provided by the Company to Union Bank for College Savings Plan clients. For services provided in 2021, the Company received $0.4 million from Union Bank; fees received for services provided in 2020 were not significant.
Additionally, Union Bank, as the program manager for the College Savings Plans, has agreed to allocate plan bank deposits to Nelnet Bank. As of December 31, 2021 and 2020, Nelnet Bank had $184.9 million and $48.4 million, respectively, in deposits from the funds offered under the College Savings Plans.
Lease Arrangements
Union Bank leases approximately 4,100 square feet in the Company's corporate headquarters building. Union Bank paid the Company approximately $81,000, $80,000, and $79,000 for commercial rent and storage income during 2021, 2020, and 2019, respectively. The lease agreement expires on June 30, 2023.
Other Fees Paid to Union Bank
During the years ended December 31, 2021, 2020, and 2019, the Company paid Union Bank approximately $280,000, $279,000, and $213,000, respectively, in cash and flexible spending accounts management, trustee and health savings account maintenance fees, including investment custodial and correspondent services for Nelnet Bank.
Other Fees Received from Union Bank
During the years ended December 31, 2021, 2020, and 2019, Union Bank paid the Company approximately $342,000, $317,000, and $317,000, respectively, under certain employee sharing arrangements. During the years ended December 31, 2020 and 2019, Union Bank paid the Company approximately $273,000, and $92,000, respectively, for communications services.
401(k) Plan Administration
Union Bank administers the Company's 401(k) defined contribution plan. Fees paid to Union Bank to administer the plan are paid by the plan participants and were approximately $766,000, $447,000, and $366,000 during the years ended December 31, 2021, 2020, and 2019, respectively.
Investment Services
Union Bank has established various trusts whereby Union Bank serves as trustee for the purpose of purchasing, holding, managing, and selling investments in student loan asset-backed securities. WRCM, an SEC-registered investment advisor and a subsidiary of the Company, has a management agreement with Union Bank under which WRCM performs various advisory and management services on behalf of Union Bank with respect to investments in securities by the trusts, including identifying securities for purchase or sale by the trusts. The agreement provides that Union Bank will pay to WRCM annual fees of 10 basis points to 25 basis points on the outstanding balance of the investments in the trusts. As of December 31, 2021, the outstanding balance of investments in the trusts was $1.8 billion. In addition, Union Bank will pay additional fees to WRCM which equal a share of the gains from the sale of securities from the trusts or securities being called prior to the full contractual maturity. For the years ended December 31, 2021, 2020, and 2019, the Company earned $6.3 million, $9.8 million, and $1.8 million, respectively, of fees under this agreement.
WRCM also has management agreements with Union Bank under which it is designated to serve as investment advisor with respect to the assets (principally Nelnet stock) within several trusts established by Mr. Dunlap and his spouse, and Ms. Muhleisen and her spouse. Union Bank serves as trustee for the trusts. Per the terms of the agreements, Union Bank pays WRCM five basis points of the aggregate value of the assets of the trusts as of the last day of each calendar quarter. As of December 31, 2021, WRCM was the investment advisor with respect to a total 428,414 shares and 4.7 million shares of the Company's Class A and Class B common stock, respectively, held directly by these trusts. For the years ended December 31, 2021, 2020, and 2019, the Company earned approximately $213,000, $141,000, and $144,000, respectively, of fees under these agreements.
WRCM has established private investment funds for the primary purpose of purchasing, selling, investing, and trading, directly or indirectly, in student loan asset-backed securities, and to engage in financial transactions related thereto. Mr. Dunlap, Jeffrey R. Noordhoek (an executive officer of the Company), Ms. Muhleisen and her spouse, and WRCM have invested in certain of these funds. Based upon the current level of holdings by non-affiliated limited partners, the management agreements provide non-affiliated limited partners the ability to remove WRCM as manager without cause. WRCM earns 50 basis points (annually) on the outstanding balance of the investments in these funds, of which WRCM pays approximately 50 percent of such amount to Union Bank as custodian. As of December 31, 2021, the outstanding balance of investments in these funds was $138.0 million. The Company paid Union Bank $0.3 million in each of 2021, 2020, and 2019 as custodian of the funds.
Transactions with Agile Sports Technologies, Inc. (doing business as "Hudl")
David Graff, who has served on the Company's Board of Directors since 2014, is CEO, co-founder, and a director of Hudl. On each of May 20, 2020 and May 27, 2021, the Company made additional equity investments in Hudl, as one of the participants in equity raises completed by Hudl. See Note 7, “Investments” for additional information on these transactions. The Company and Mr. Dunlap, along with his children, currently hold combined direct and indirect equity ownership interests in Hudl of 19.3% and 3.8%, respectively, which did not materially change as a result of the May 2020 and May 2021 transactions. The Company's and Mr. Dunlap's direct and indirect equity ownership interests in Hudl consist of preferred stock with certain liquidation preferences that are considered substantive. Accordingly, for accounting purposes, the Company's and Mr. Dunlap's equity ownership interests are not considered in-substance common stock and the Company is accounting for its equity investment in Hudl using the measurement alternative method.
On July 26, 2019, the Company, as lender, received a $16.0 million promissory note from Hudl. The promissory note carried a 14 percent interest rate and was due 180 days from the date of issuance. In connection with this promissory note, the Company entered into a Subordination Agreement with Union Bank, effective as of July 26, 2019, which required the Company to subordinate its promissory note from Hudl to existing notes Union Bank holds from Hudl. The $16.0 million promissory note from Hudl was paid in full to the Company in August 2019.
The Company makes investments to further diversify the Company both within and outside of its historical core education-related businesses, including investments in real estate. Recent real estate investments have been focused on the development of commercial properties in the Midwest, and particularly in Lincoln, Nebraska, where the Company's headquarters are located. One investment includes the development of a building in Lincoln's Haymarket District that is the headquarters of Hudl, in which Hudl is the primary tenant in this building.
Transaction with Assurity Life Insurance Company ("Assurity")
Thomas Henning, who has served on the Company's Board of Directors since 2003, was President and Chief Executive Officer of Assurity during the years ended December 31, 2021, 2020, and 2019, when Nelnet Business Services, a subsidiary of the Company, paid $2.1 million, $1.8 million, and $1.7 million, respectively, to Assurity for insurance premiums for insurance on certain tuition payment plans. As part of providing the tuition payment plan insurance to Nelnet Business Services, Assurity entered into a reinsurance agreement with the Company's insurance subsidiary, under which Assurity paid the Company's insurance subsidiary reinsurance premiums of $1.8 million, $1.4 million, and $1.3 million in 2021, 2020, and 2019, respectively, and the Company's insurance subsidiary paid claims on such reinsurance to Assurity of $1.5 million, $1.0 million, and $0.9 million in 2021, 2020, and 2019, respectively. In addition, Assurity pays Nelnet Business Services a partial refund annually based on claim experience, which was approximately $41,000, $64,000, and $56,000 for the years ended December 31, 2021, 2020, and 2019, respectively. Mr. Henning retired as President and Chief Executive Officer of Assurity effective January 1, 2022, and now serves as the Non-Executive Chairman of Assurity’s board of directors.
Solar Transactions
The Company has co-invested in Company-managed limited liability companies with related parties that invest in renewable energy (solar) (as summarized below). As part of these transactions, the Company receives management and performance fees under a management agreement.
Entity/RelationshipInvestment amountFees earned by the Company
 202120202019202120202019
F&M$7,913,000 4,600,000 2,068,868 29,491 46,154 68,869 
Assurity (Board member Thomas Henning)5,421,6591,150,000— 16,02711,538— 
Ameritas Life Insurance Corp. (Board member James Abel)5,000,000 — — 9,615 — — 
North Central Bancorp, Inc. (directly and indirectly owned by F&M, Mr. Dunlap, and Ms. Muhleisen)2,466,667 1,533,333 2,068,868 14,958 15,385 68,869 
Infovisa, Inc. (directly and indirectly owned by F&M,
Mr. Dunlap, and Ms. Muhleisen)
562,600 — — 1,923 — — 
Farm and Home Insurance Agency, Inc. (indirectly owned by Mr. Dunlap and Ms. Muhleisen)116,667 383,333 — 962 3,846 — 
v3.22.0.1
Fair Value
12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the year ended December 31, 2021.
 As of December 31, 2021As of December 31, 2020
 Level 1Level 2TotalLevel 1Level 2Total
Assets:   
Investments (a):
FFELP loan asset-backed securities - available-for-sale$— 494,682 494,682 — 346,502 346,502 
Private education loan asset-backed debt securities - available for sale— 412,552 412,552 — — — 
Other debt securities - available for sale100 22,335 22,435 103 2,002 2,105 
Equity securities 63,154 — 63,154 10,114 — 10,114 
Equity securities measured at net asset value (b)8,832 31,927 
Total investments63,254 929,569 1,001,655 10,217 348,504 390,648 
      Total assets$63,254 929,569 1,001,655 10,217 348,504 390,648 

(a)    Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and as of December 31, 2021 and 2020, include investments traded on an active exchange and a single U.S. Treasury security. Level 2 investments include student loan asset-backed, mortgage-backed, and collateralized loan obligation securities. The fair value for the Level 2 securities is determined using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk.
(b)    In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 As of December 31, 2021
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$18,576,272 17,546,645 — — 18,576,272 
Accrued loan interest receivable788,552 788,552 — 788,552 — 
Cash and cash equivalents125,563 125,563 125,563 — — 
Investments (at fair value)1,001,655 1,001,655 63,254 929,569 — 
Beneficial interest in loan securitizations 142,391 120,142 — — 142,391 
Restricted cash741,981 741,981 741,981 — — 
Restricted cash – due to customers326,645 326,645 326,645 — — 
Financial liabilities:  
Bonds and notes payable17,819,902 17,631,089 — 17,819,902 — 
Accrued interest payable4,566 4,566 — 4,566 — 
Bank deposits342,463 344,315 184,897 157,566 — 
Due to customers366,002 366,002 366,002 — — 
 As of December 31, 2020
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$20,454,132 19,391,045 — — 20,454,132 
Accrued loan interest receivable794,611 794,611 — 794,611 — 
Cash and cash equivalents121,249 121,249 121,249 — — 
Investments (at fair value)390,648 390,648 10,217 348,504 — 
Beneficial interest in loan securitizations58,709 58,331 — — 58,709 
Restricted cash553,175 553,175 553,175 — — 
Restricted cash – due to customers283,971 283,971 283,971 — — 
Financial liabilities:  
Bonds and notes payable19,270,810 19,320,726 — 19,270,810 — 
Accrued interest payable28,701 28,701 — 28,701 — 
Bank deposits54,599 54,633 48,422 6,177 — 
Due to customers301,471 301,471 301,471 — — 
The methodologies for estimating the fair value of financial assets and liabilities that are measured at fair value on a recurring basis are previously discussed. The remaining financial assets and liabilities were estimated using the following methods and assumptions:
Loans Receivable
Fair values for loans receivable were determined by modeling loan cash flows using stated terms of the assets and internally-developed assumptions. The significant assumptions used to project cash flows are prepayment speeds, default rates, cost of funds, required return on equity, and future interest rate and index relationships. A number of significant inputs into the models are internally derived and not observable to market participants.
Beneficial Interest in Loan Securitizations
Fair values for beneficial interest in loan securitizations were determined by modeling securitization cash flows and internally-developed assumptions. The significant assumptions used to project cash flows are prepayment speeds, default rates, cost of funds, required return on equity, and future interest rate and index relationships. A number of significant inputs into the models are internally derived and not observable to market participants.
Cash and Cash Equivalents, Restricted Cash, Restricted Cash – Due to Customers, Accrued Loan Interest Receivable, Accrued Interest Payable, and Due to Customers
The carrying amount approximates fair value due to the variable rate of interest and/or the short maturities of these instruments.
Bonds and Notes Payable
The fair value of student loan asset-backed securitizations and warehouse facilities was determined from quotes from broker-dealers or through standard bond pricing models using the stated terms of the borrowings, observable yield curves, market credit spreads, and weighted average life of underlying collateral. For all other bonds and notes payable, the carrying amount approximates fair value due to the variable rate of interest and/or the short maturities of these instruments.
Bank Deposits
Some of the Company’s deposits are fixed-rate and the fair value for these deposits are estimated using discounted cash flows based on rates currently offered for deposits of similar maturities. These are level 2 valuations. The fair value of the remaining deposits equal the amounts payable on demand at the balance sheet date and are reported at their carrying value. These are level 1 valuations.
Limitations
The fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Therefore, the calculated fair value estimates in many instances cannot be substantiated by comparison to independent markets and, in many cases, may not be realizable in a current sale of the instrument. Changes in assumptions could significantly affect the estimates.
v3.22.0.1
Legal Proceedings
12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings Legal ProceedingsThe Company is subject to various claims, lawsuits, and proceedings that arise in the normal course of business. These matters frequently involve claims by student loan borrowers disputing the manner in which their student loans have been serviced or the accuracy of reports to credit bureaus, claims by student loan borrowers or other consumers alleging that state or Federal consumer protection laws have been violated in the process of collecting loans or conducting other business activities, and disputes with other business entities. In addition, from time to time, the Company receives information and document requests or demands from state or federal regulators concerning its business practices. The Company cooperates with these inquiries and responds to the requests or demands. While the Company cannot predict the ultimate outcome of any regulatory examination, inquiry, or investigation, the Company believes its activities have materially complied with applicable law, including the Higher Education Act, the rules and regulations adopted by the Department thereunder, and the Department's guidance regarding those rules and regulations. On the basis of present information, anticipated insurance coverage, and advice received from counsel, it is the opinion of the Company's management that the disposition or ultimate determination of these claims, lawsuits, and proceedings will not have a material adverse effect on the Company's business, financial position, or results of operations.
v3.22.0.1
Condensed Parent Company Financial Statements
12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Parent Company Financial Statements Condensed Parent Company Financial Statements
The following represents the condensed balance sheets as of December 31, 2021 and 2020 and condensed statements of income, comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2021 for Nelnet, Inc.
The Company is limited in the amount of funds that can be transferred to it by its subsidiaries through intercompany loans, advances, or cash dividends. These limitations relate to the restrictions by trust indentures under the lending subsidiaries debt financing arrangements.
Balance Sheets
(Parent Company Only)
As of December 31, 2021 and 2020
20212020
Assets:
Cash and cash equivalents$47,434 69,687 
Investments1,236,933 707,332 
Investment in subsidiary debt374,087 38,903 
Restricted cash107,103 93,271 
Investment in subsidiaries1,986,136 1,963,413 
Notes receivable from subsidiaries314 21,209 
Other assets123,716 115,631 
Total assets$3,875,723 3,009,446 
Liabilities:
Notes payable, net of debt issuance costs$734,881 236,317 
Other liabilities189,317 140,710 
Total liabilities924,198 377,027 
Equity:
Nelnet, Inc. shareholders' equity:
Common stock379 384 
Additional paid-in capital1,000 3,794 
Retained earnings2,940,523 2,621,762 
Accumulated other comprehensive earnings9,304 6,102 
Total Nelnet, Inc. shareholders' equity2,951,206 2,632,042 
Noncontrolling interest319 377 
Total equity2,951,525 2,632,419 
Total liabilities and shareholders' equity$3,875,723 3,009,446 
Statements of Income
(Parent Company Only)
Years ended December 31, 2021, 2020, and 2019
 202120202019
Investment interest income$12,455 4,110 4,925 
Interest expense on bonds and notes payable3,515 3,179 9,588 
Net interest income (expense)8,940 931 (4,663)
Other income/expense:   
Other income45,291 48,688 8,384 
(Loss) gain from debt repurchases, net(6,530)1,962 136 
Equity in subsidiaries income
313,451 132,101 182,346 
Gain from deconsolidation of ALLO— 258,588 — 
Impairment expense(4,637)(7,784)— 
Derivative market value adjustments and derivative settlements, net
71,446 (24,465)(30,789)
Total other income/expense419,021 409,090 160,077 
Operating expenses7,632 14,006 19,561 
Income before income taxes420,329 396,015 135,853 
Income tax (expense) benefit(27,101)(43,577)5,950 
Net income393,228 352,438 141,803 
Net loss attributable to noncontrolling interest
58 — 
Net income attributable to Nelnet, Inc.
$393,286 352,443 141,803 


Statements of Comprehensive Income
(Parent Company Only)
Years ended December 31, 2021, 2020, and 2019
202120202019
Net income$393,228 352,438 141,803 
Other comprehensive income (loss):
Net changes related to equity in subsidiaries other comprehensive income$6,692 — — 
Net changes related to available-for-sale securities:
Unrealized holding (losses) gains arising during period, net(4,220)6,637 (1,199)
Reclassification of gains recognized in net income, net of losses(372)(2,521)— 
Income tax effect1,102 (3,490)(986)3,130 288 (911)
Other comprehensive income (loss)3,202 3,130 (911)
Comprehensive income396,430 355,568 140,892 
Comprehensive loss attributable to noncontrolling interests58 — 
Comprehensive income attributable to Nelnet, Inc.$396,488 355,573 140,892 
Statements of Cash Flows
(Parent Company Only)
Years ended December 31, 2021, 2020, and 2019
202120202019
Net income attributable to Nelnet, Inc.$393,286 352,443 141,803 
Net loss attributable to noncontrolling interest(58)(5)— 
Net income393,228 352,438 141,803 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization591 534 467 
Derivative market value adjustments(92,813)28,144 76,195 
Payments to terminate derivative instruments, net— — (12,530)
Proceeds from (payments to) clearinghouse - initial and variation margin, net91,294 (26,747)(70,685)
Equity in earnings of subsidiaries(313,451)(132,101)(182,346)
Gain from deconsolidation of ALLO, including cash impact— (287,579)— 
Loss on (gain from) debt repurchases6,530 (1,962)(136)
Loss on (gain from) investments, net721 (46,019)(3,969)
Purchases of equity securities, net(42,916)— — 
Deferred income tax expense (benefit)47,423 23,747 (19,183)
Non-cash compensation expense10,673 16,739 6,781 
Impairment expense4,637 7,784 — 
Other— (329)(481)
Increase in other assets(9,108)(17,410)(10,672)
Increase in other liabilities1,784 26,009 29,384 
Net cash provided by (used in) operating activities98,593 (56,752)(45,372)
Cash flows from investing activities:
Purchases of available-for-sale securities(640,644)(342,563)— 
Proceeds from sales of available-for-sale securities133,286 168,555 — 
Capital distributions/contributions from/to subsidiaries, net294,578 99,830 449,602 
Decrease in notes receivable from subsidiaries20,895 21,343 14,421 
Purchases of subsidiary debt, net(335,184)(25,085)— 
Purchases of other investments(110,184)(54,637)(47,106)
Proceeds from other investments129,899 8,564 27,926 
Net cash (used in) provided by investing activities(507,354)(123,993)444,843 
Cash flows from financing activities:
Payments on notes payable(126,530)(20,381)(361,272)
Proceeds from issuance of notes payable619,259 190,520 60,000 
Payments of debt issuance costs(1,286)(49)(1,129)
Dividends paid(34,457)(31,778)(29,485)
Repurchases of common stock(58,111)(73,358)(40,411)
Proceeds from issuance of common stock1,465 1,653 1,552 
Acquisition of noncontrolling interest— (600)— 
Issuance of noncontrolling interest— 194,985 878 
Net cash provided by (used in) financing activities400,340 260,992 (369,867)
Net (decrease) increase in cash, cash equivalents, and restricted cash(8,421)80,247 29,604 
Cash, cash equivalents, and restricted cash, beginning of period162,958 82,711 53,107 
Cash, cash equivalents, and restricted cash, end of period$154,537 162,958 82,711 
Cash disbursements made for:
Interest$2,301 2,577 9,501 
Income taxes, net of refunds and credits$18,659 29,685 17,672 
Noncash investing activities:
(Distribution from) contribution to subsidiary, net$(835)49,066 — 
v3.22.0.1
Summary of Significant Accounting Policies and Practices (Policies)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Consolidation
Consolidation
The consolidated financial statements include the accounts of Nelnet, Inc. and its consolidated subsidiaries. In addition, the accounts of all variable interest entities (“VIEs”) of which the Company has determined that it is the primary beneficiary are included in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation.
Variable Interest Entities
Variable Interest Entities
The Company assesses its partnerships and joint ventures to determine if the entity meets the qualifications of a VIE. The Company performs a qualitative assessment of each VIE to determine if it is the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The Company examines specific criteria and uses judgment when determining whether an entity is a VIE and whether it is the primary beneficiary. The Company performs this review initially at the time it enters into a partnership or joint venture agreement and reassess upon reconsideration events.
VIEs - Consolidated
The Company is required to consolidate VIEs in which it has determined it is the primary beneficiary.
The Company's education and other lending subsidiaries are engaged in the securitization of finance assets. These lending subsidiaries hold beneficial interests in eligible loans, subject to creditors with specific interests. The liabilities of the Company's lending subsidiaries are not the direct obligations of Nelnet, Inc. or any of its other subsidiaries. Each lending subsidiary is structured to be bankruptcy remote, meaning that it should not be consolidated in the event of bankruptcy of the parent company or any other subsidiary. The Company is generally the administrator and master servicer of the securitized assets held in its lending subsidiaries and owns the residual interest of the securitization trusts. For accounting purposes, the transfers of loans to the securitization trusts do not qualify as sales. Accordingly, all the financial activities and related assets and liabilities, including debt, of the securitizations are reflected in the Company's consolidated financial statements and are summarized as supplemental information on the balance sheet.
VIEs - Not consolidated
The Company is not required to consolidate VIEs in which it has determined it is not the primary beneficiary.
In December of 2020, Wells Fargo announced the sale of its approximately $10.0 billion portfolio of private education loans representing approximately 445,000 borrowers. The Company entered into a joint venture with other investors to acquire the loans. During 2021, the joint venture completed asset-backed securitization transactions to permanently finance a total of $8.7 billion of the private education loans purchased by the joint venture (which represented the total remaining loans originally purchased from Wells Fargo, factoring in borrower payments from the date of purchase). Under the terms of the joint venture agreements, the Company is the servicer of the portfolio, owns an approximate 8 percent interest in residual interests in securitizations of the loans, and serves as the sponsor and administrator for the loan securitizations completed by the joint venture. See note 7, “Investments” for a description of, and the Company’s accounting for, these transactions, and disclosure of the Company’s maximum exposure.
The Company makes investments in entities that promote renewable energy sources (solar). The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These investments are included in "investments" on the consolidated balance sheets and accounted for under the HLBV method of accounting. The carrying value of these investments are reduced by tax credits earned when the solar project is placed in service. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are included in “other liabilities” on the consolidated balance sheet. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment, unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. The tax credit recapture period ratably decreases over five years from when the project is placed in service. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the energy-producing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits.
Noncontrolling Interests
Noncontrolling Interests
Amounts for noncontrolling interests reflect the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interests in the following entities:
Whitetail Rock Capital Management, LLC - WRCM is the Company’s SEC-registered investment advisor subsidiary. WRCM issued 10 percent minority membership interests on January 1, 2012.
In addition, the Company has established multiple entities for the purpose of investing in renewable energy (solar) and federal opportunity zone programs in which it has noncontrolling members.
Use of Estimates
Use of Estimates
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and other disclosures. Actual results may differ from those estimates.
Loans Receivable / Allowance for Loan Losses
Loans Receivable
Loans consist of federally insured student loans, private education loans, and consumer loans. If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost. Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest income. Loans which are held-for-investment also have an allowance for loan loss as needed. Any loans the Company has the ability and intent to sell are classified as held for sale and are carried at the lower of cost or fair value. Loans which are held for sale do not have the associated premium or discount and origination costs and fees amortized into interest income and there is also no related allowance for loan losses. There were no loans classified as held for sale as of December 31, 2021 and 2020.
Federally insured loans were originated under the FFEL Program by certain eligible lenders as defined by the Higher Education Act of 1965, as amended (the “Higher Education Act”). These loans, including related accrued interest, are guaranteed at their maximum level permitted under the Higher Education Act by an authorized guaranty agency, which has a contract of reinsurance with the Department. The terms of the loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest. Generally, Stafford and PLUS loans have repayment periods between five and ten years. Consolidation loans have repayment periods of twelve to thirty years. FFELP loans do not require repayment while the borrower is in-school, and during the grace period immediately upon leaving school. Under the Higher Education Act, a borrower may also be granted a deferment or forbearance for a period of time based on need, during which time the borrower is not considered to be in repayment. Interest continues to accrue on loans in the in-school, deferment, and forbearance program periods. In addition, eligible borrowers may qualify for income-driven repayment plans offered by the Department. These plans determine the borrower's payment amount based on their discretionary income and may extend their repayment period. Interest
rates on federally insured student loans may be fixed or variable, dependent upon the type of loan, terms of the loan agreements, and date of origination.
Substantially all FFELP loan principal and related accrued interest is guaranteed as provided by the Higher Education Act. These guarantees are subject to the performance of certain loan servicing due diligence procedures stipulated by applicable Department regulations. If these due diligence requirements are not met, affected student loans may not be covered by the guarantees in the event of borrower default. Such student loans are subject to “cure” procedures and reinstatement of the guarantee under certain circumstances.
Loans also include private education and consumer loans. Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFEL Program. These loans are used primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or borrowers' personal resources. The terms of the private education loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to thirty years. The private education loans are not covered by a guarantee or collateral in the event of borrower default. Consumer loans are unsecured loans to an individual for personal, family, or household purposes. The terms of the consumer loans, which vary on an individual basis, generally provide for repayment in weekly or monthly installments of principal and interest over a period of up to six years.
Allowance for Loan Losses
On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments – Credit Losses (“Topic 326”): Measurement of Credit Losses on Financial Instruments, which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss ("CECL") methodology. 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. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The Company adopted Topic 326 using the modified retrospective method. As such, the results for reporting periods beginning after January 1, 2020 are presented under Topic 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 and 2021. 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 and decreased retained earnings, net of tax, by $18.9 million.
Allowance for Loan Losses - Accounting Policies Under Topic 326
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 pools to estimate its expected credit losses. The Company evaluates such pooling decisions each quarter and makes adjustments 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 4 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. For the undiscounted cash flow models, the expected credit losses are the product of multiplying the Company’s estimates of
probability of default and loss given default and the exposure of default over the expected life of the loans. For the remaining life method, the expected credit losses are the product of multiplying the Company’s estimated net loss rate by the exposure at default over the expected life of the loans. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current economic conditions, and reasonable and supportable forecasts. The Company has determined that, for modeling current expected credit losses, the Company can reasonably estimate expected losses that incorporate current economic conditions and forecasted probability weighted economic scenarios up to a one-year period. Macroeconomic factors used in the models include such variables as unemployment rates, gross domestic product, and consumer price index. After the "reasonable and supportable" period, the Company reverts to its actual long-term historical loss experience in the historical observation period. The Company uses a straight line reversion method over two years. Historical credit loss experience provides the basis for the estimation of expected credit losses. A portion of the allowance is comprised of qualitative adjustments to historical loss experience.
Qualitative adjustments consider the following factors, as applicable, for each of the Company’s loan portfolios: student loans in repayment versus those in nonpaying status; delinquency status; type of private education or consumer loan program; trends in defaults in the portfolio based on Company and industry data; past experience; trends in federally insured student loan claims rejected for payment by guarantors; changes in federal student loan programs; 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. Federally insured student loans disbursed prior to October 1, 1993 are fully insured. Private education and consumer loans are unsecured, with neither a government nor a private insurance guarantee. Accordingly, the Company bears the full risk of loss on these loans if the borrower and co-borrower, if applicable, default. The Company places private education and 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
Accrued interest receivable on loans is combined and presented with the loans receivable amortized cost balance on the Company’s consolidated balance sheet.
For the Company’s federally insured loan portfolio, the Company records 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 does not 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.
Allowance for Loan Losses - Accounting Policies Prior to Adoption of Topic 326
Prior to the adoption of Topic 326 effective January 1, 2020, the allowance for loan losses represented management's estimate of probable losses on loans. The provision for loan losses for periods ended prior to January 1, 2020 reflected the activity for
the applicable period and provided an allowance at a level that the Company's management believed was appropriate to cover probable losses inherent in the loan portfolio. The Company evaluated the adequacy of the allowance for loan losses using a historical loss rate methodology adjusted for qualitative factors separately on each of its federally insured, private education, and consumer loan portfolios. These evaluation processes were subject to numerous judgments and uncertainties including the selection of loss rates over time and determination of the loss emergence period.
Cash and Cash Equivalents and Statements of Cash Flow
Cash and Cash Equivalents and Statements of Cash Flows
For purposes of the consolidated statements of cash flows, the Company considers all investments with original maturities of three months or less to be cash equivalents.
Accrued interest on loans purchased and sold is included in cash flows from operating activities in the respective period.
Investments
Investments
The Company classifies its debt securities, primarily student loan and other asset-backed securities, as available-for-sale. These securities are carried at fair value, with the changes in fair value, net of taxes, carried as a separate component of shareholders’ equity. The amortized cost of debt securities in this category is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. When an investment is sold, the cost basis is determined through specific identification of the security sold. 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.
The Company classifies its residual interest in federally insured, private education, and consumer loan securitizations as held-to-maturity beneficial interest investments. The Company measures accretable yield initially as the excess of all cash flows expected to be collected attributable to the beneficial interest estimated at the acquisition/transaction date over the initial investment and recognizes interest income over the life of the beneficial interest using the effective interest method. The Company continues to update, over the life of the beneficial interest, the expectation of cash flows to be collected. Beneficial interest investments are evaluated for impairment by comparing the present value of the remaining cash flows as estimated at the initial transaction date (or the last date previously revised) to the present value of the cash flows expected to be collected at the current financial reporting date, both discounted using the same effective rate equal to the current yield used to accrete the beneficial interest. If the present value of remaining cash flows is less than the present value of cash flows expected to be collected, the Company records an allowance for credit losses for the difference. Subsequent favorable changes, if any, decreases the allowance for credit losses. The Company reflects the changes in the allowance for credit losses in provision for beneficial interests on the consolidated statements of income.
Equity investments with readily determinable fair values are measured at fair value, with changes in the fair value recognized through net income (other than those equity investments accounted for under the equity method of accounting or those that result in consolidation of the investee).
For equity investments without readily determinable fair value, the Company uses the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company uses qualitative factors to identify impairment on these investments.
The Company accounts for equity investments over which it has significant influence but not a controlling financial interest using the equity method of accounting. Equity method investments are recorded at cost and subsequently increased or decreased by the amount of the Company’s proportionate share of the net earnings or losses and other comprehensive income of the investee. Equity method investments are evaluated for other-than-temporary impairment using certain impairment indicators such as a series of operating losses of an investee or other factors. These factors may indicate that a decrease in value of the investment has occurred that is other-than-temporary and shall be recognized.
The Company accounts for its solar investments, voting equity investment in ALLO, and certain real estate investments under the HLBV method of accounting. The HLBV method of accounting is used by the Company for equity method investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership or voting interests. The Company applies the HLBV method using a balance sheet approach. A calculation is prepared at each balance sheet date to determine the amount that the Company would receive if an equity investment entity were to liquidate its net assets and distribute that cash to the investors based on the contractually defined
liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is the amount the Company recognizes for its share of the earnings or losses from the equity investment for the period.
Restricted Cash
Restricted Cash
Restricted cash primarily includes amounts for student loan securitizations and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the student loans held as trust assets and when principal and interest is paid on the trust's asset-backed debt securities. Restricted cash also includes collateral deposits with derivative third-party clearinghouses.
Restricted Cash - Due to Customers
Restricted Cash - Due to Customers
As a servicer of student loans, the Company collects student loan remittances and subsequently disburses these remittances to the appropriate lending entities. In addition, as part of the Company's Education Technology, Services, and Payment Processing operating segment, the Company collects tuition payments and subsequently remits these payments to the appropriate schools. Cash collected for customers and the related liability are included in the accompanying consolidated balance sheets.
Accounts Receivable
Accounts Receivable
Accounts receivable are presented at their net realizable values, which include allowances for doubtful accounts. Allowance estimates are based upon individual customer experience, as well as the age of receivables and likelihood of collection.
Business Combinations Business CombinationsThe Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings
Goodwill and Intangible Assets
Goodwill
The Company reviews goodwill for impairment annually (as of November 30) and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable. Goodwill is tested for impairment using a fair value approach at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a single reporting unit if they have similar economic characteristics.
The Company tests goodwill for impairment in accordance with applicable accounting guidance. The guidance provides an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a quantitative impairment test, otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test.
For the 2021, 2020, and 2019 annual reviews of goodwill, the Company assessed qualitative factors and concluded it was not more likely than not that the fair value of its reporting units were less than their carrying amount. As such, the Company was not required to perform further impairment testing and concluded there was no impairment of goodwill.
Intangible Assets
The Company uses estimates to determine the fair value of acquired assets to allocate the purchase price to acquired intangible assets. Such estimates are generally based on estimated future cash flows or cost savings associated with particular assets and are discounted to present value using an appropriate discount rate. The estimates of future cash flows associated with intangible assets are generally prepared using a cost savings method, a lost income method, or an excess return method, as appropriate. In
utilizing such methods, management must make certain assumptions about the amount and timing of estimated future cash flows and other economic benefits from the assets, the remaining economic useful life of the assets, and general economic factors concerning the selection of an appropriate discount rate. The Company may also use replacement cost or market comparison approaches to estimate fair value if such methods are determined to be more appropriate.
Intangible assets with finite lives are amortized over their estimated lives. Such assets are amortized using a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. If that pattern cannot be reliably determined, the Company uses a straight-line amortization method.
The Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization.
Property and Equipment Property and EquipmentProperty and equipment are carried at cost, net of accumulated depreciation. Maintenance and repairs are charged to expense as incurred, and major improvements, including leasehold improvements, are capitalized. Gains and losses from the sale of property and equipment are included in determining net income. The Company uses the straight-line method for recording depreciation and amortization. Leasehold improvements are amortized straight-line over the shorter of the lease term or estimated useful life of the asset
Leases
Leases
The Company determines if the arrangement is, or contains, a lease at the inception of an arrangement and records the lease in the consolidated financial statements upon lease commencement, which is the date when the underlying asset is made available by the lessor. The Company primarily leases office and data center space. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The lease expense for these leases is recognized on a straight-line basis over the lease term. All other lease assets (ROU assets) and lease liabilities are recognized based on the present value of lease payments over the lease term at the commencement date. The Company classifies each lease as operating or financing, with the income statement reflecting lease expense for operating leases and amortization/interest expense for financing leases. When the discount rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate.
The Company accounts for lease and non-lease components together as a single, combined lease component for its office and data center space. In addition, the Company identified itself as the lessor in its Communications operating segment for services provided to customers that include customer-premise equipment. The Company accounted for those services and associated leases as a single, combined component. The non-lease services are 'predominant' in those contracts. Therefore, the combined component is considered a single performance obligation under ASC Topic 606, Revenue from Contracts with Customers.
Most leases include one or more options to renew, with renewal terms that can be extended. The exercise of lease renewal options for the majority of leases is at the Company's discretion. Renewal options that the Company is reasonably certain to exercise are included in the lease term.
Certain leases include escalating rental payments or rental payments adjusted periodically for inflation. None of the lease agreements include any residual value guarantees, a transfer of title, or a purchase option that is reasonably certain to be exercised.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
The Company reviews its long-lived assets, such as property and equipment, purchased intangibles subject to amortization, and ROU assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.
Assumptions and estimates about future cash flows generated by, remaining useful lives of, and fair values of the Company's intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company's business strategy and internal forecasts. Although the Company believes the historical assumptions and estimates used are reasonable and appropriate, different assumptions and estimates could materially impact the reported financial results.
Fair Value Measurements
Fair Value Measurements
The Company uses estimates of fair value in applying various accounting standards for its financial statements.
Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company's policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value, such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates, and credit spreads, relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. In some cases fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model's output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates of current or future values.
The Company categorizes its fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring assets and liabilities at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels include:
Level 1: Quoted prices for identical instruments in active markets. The types of financial instruments included in Level 1 are highly liquid instruments with quoted prices.
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose primary value drivers are observable.
Level 3: Instruments whose primary value drivers are unobservable. Inputs are developed based on the best information available; however, significant judgment is required by management in developing the inputs.
Revenue Recognition
Revenue Recognition
The Company applies the provisions of ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), to its fee-based operating segments. The majority of the Company’s revenue earned in its Asset Generation and Management and Nelnet Bank operating segments, including loan interest and derivative activity, is explicitly excluded from the scope of ASC Topic 606. The Company recognizes revenue under the core principle of ASC Topic 606 to depict the transfer of control of products and services to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five-step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment.
Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records deferred revenue when revenue is received or receivable in advance of the delivery of service. For multi-year contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component.
The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in “other assets” on the consolidated balance sheets.
Additional information related to revenue earned in its Asset Generation and Management operating segment is provided below. See note 16, "Disaggregated Revenue and Deferred Revenue" for additional information related to the Company's fee-based operating segments.
Loan interest income - Loan interest on federally insured student loans is paid by the Department or the borrower, depending on the status of the loan at the time of the accrual. The Department makes quarterly interest subsidy payments on certain qualified FFELP loans until the student is required under the provisions of the Higher Education Act to begin repayment. Borrower repayment of FFELP loans normally begins within six months after completion of the borrower's course of study, leaving school, or ceasing to carry at least one-half the normal full-time academic load, as determined by the educational institution. Borrower repayment of PLUS and Consolidation loans normally begins within 60 days from the date of loan disbursement. Borrower repayment of private education loans typically begins six months following the borrower's graduation from a qualified institution, and the interest is either paid by the borrower or capitalized annually or at repayment. Repayment of consumer loans typically starts upon origination of the loan.
The Department provides a special allowance to lenders participating in the FFEL Program. The special allowance is accrued based upon the fiscal quarter average rate of 13-week Treasury Bill auctions (for loans originated prior to January 1, 2000), the fiscal quarter average rate of the daily three-month financial commercial paper rates (for loans originated on and after January 1, 2000), or the fiscal quarter average rate of daily one-month LIBOR rates (for loans originated on and after January 1, 2000, and for lenders which elected to change the special allowance index to one-month LIBOR effective April 1, 2012) relative to the yield of the student loan.
The Company recognizes loan interest income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts. Loan interest income is recognized based upon the expected yield of the loan after giving effect to interest rate reductions resulting from borrower utilization of incentives such as timely payments ("borrower benefits") and other yield adjustments. Loan premiums or discounts, deferred origination costs, and borrower benefits are amortized/accreted over the estimated life of the loans, which includes an estimate of forecasted payments in excess of contractually required payments (the constant prepayment rate). The constant prepayment rate currently used by the Company to amortize/accrete federally insured loan premiums/discounts is 5 percent for Stafford loans and 4 percent for Consolidation loans. The Company periodically evaluates the assumptions used to estimate the life of the loans and prepayment rates. In instances where there are changes to the assumptions, amortization/accretion is adjusted on a cumulative basis to reflect the change since the acquisition of the loan. During the fourth quarter of 2021, the Company changed its estimate of the constant prepayment rate on its consolidation loans from 3 percent to 4 percent, which resulted in a $6.2 million increase to the Company’s net loan discount balance and a corresponding pre-tax decrease to interest income.
The Company also pays the Department an annual 105 basis point rebate fee on Consolidation loans. These rebate fees are netted against loan interest income.
Interest Expense Interest ExpenseInterest expense is based upon contractual interest rates, adjusted for the amortization of debt issuance costs and the accretion of discounts. The amortization of debt issuance costs and accretion of discounts are recognized using the effective interest method
Transfer of Financial Assets and Extinguishment of Liabilities
Transfer of Financial Assets and Extinguishments of Liabilities
The Company accounts for loan sales and debt repurchases in accordance with applicable accounting guidance. If a transfer of loans qualifies as a sale, the Company derecognizes the loan and recognizes a gain or loss as the difference between the carrying basis of the loan sold and the consideration received. The Company from time to time repurchases its outstanding debt and records a gain or loss on the early extinguishment of debt based upon the difference between the carrying amount of the debt and the amount paid to the third party.
Derivative Accounting
Derivative Accounting
All over-the-counter derivative contracts executed by the Company are cleared post-execution at the Chicago Mercantile Exchange (“CME”), a regulated clearinghouse. Substantially all of the Company’s outstanding derivatives are over-the-counter contracts. Clearing is a process by which a third-party, the clearinghouse, steps in between the original counterparties and guarantees the performance of both, by requiring that each post liquid collateral on an initial (initial margin) and mark-to-market (variation margin) basis to cover the clearinghouse’s potential future exposure in the event of default.
The CME legally characterizes variation margin payments for over-the-counter derivatives they clear as settlements of the derivatives’ exposure rather than collateral against the exposure. For accounting and presentation purposes, the Company considers variation margin and the corresponding derivative instrument as a single unit of account. As such, variation margin payments are considered in determining the fair value of the centrally cleared derivative portfolio. The Company records
derivative contracts on its balance sheet with a fair value of zero due to the payment or receipt of variation margin between the Company and the CME settling the outstanding mark-to-market exposure on such derivatives to a balance of zero on a daily basis. Management has structured all of the Company's derivative transactions with the intent that each is economically effective; however, the Company's derivative instruments do not qualify for hedge accounting. As a result, the change in market value of derivative instruments is reported in current period earnings. Changes or shifts in the forward yield curve can significantly impact the valuation of the Company’s derivatives, and therefore impact the results of operations of the Company. The changes in fair value of derivative instruments, as well as the settlement payments made on such derivatives, are included in “derivative market value adjustments and derivative settlements, net” on the consolidated statements of income
Income Taxes
Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company uses the deferred method of accounting for its credits related to state tax incentives and investments that generate investment tax credits. The investment tax credits are recognized as a reduction to the related asset.
Income tax expense includes deferred tax expense, which represents a portion of the net change in the deferred tax asset or liability balance during the year, plus any change made in the valuation allowance, and current tax expense, which represents the amount of tax currently payable to or receivable from a tax authority plus amounts for expected tax deficiencies
Compensation Expense for Stock Based Awards
Compensation Expense for Stock Based Awards
The Company has a restricted stock plan that is intended to provide incentives to attract, retain, and motivate employees in order to achieve long term growth and profitability objectives. The restricted stock plan provides for the grant to eligible employees of awards of restricted shares of Class A common stock. The fair value of restricted stock awards is determined on the grant date based on the Company's stock price and is amortized to compensation cost over the related vesting periods, which range up to ten years. For those awards with only service conditions that have graded vesting schedules, the Company recognizes compensation expense on a straight-line basis over the requisite service period for each separately vesting portion of the award, as if the award was, in substance, multiple awards. Holders of restricted stock are entitled to receive dividends from the date of grant whether or not vested. The Company accounts for forfeitures as they occur.
The Company also has a directors stock compensation plan pursuant to which non-employee directors can elect to receive their annual retainer fees in the form of fully vested shares of Class A common stock, and also elect to defer receipt of such shares until the termination of their service on the board of directors. The fair value of grants under this plan is determined on the grant date based on the Company's stock price, and is expensed over the board member's annual service period.
Translation of Foreign Currencies
Translation of Foreign Currencies
The Company’s foreign subsidiaries use the local currency of the countries in which they are located as their functional currency. Accordingly, assets and liabilities are translated into U.S. dollars (the Company’s reporting currency) using the exchange rates in effect on the consolidated balance sheet dates. Equity accounts are translated at historical rates, except for the change in retained earnings during the year, which is the result of the income statement translation process. Revenue and expense accounts are translated using the weighted average exchange rate during the period. The cumulative translation adjustments associated with the net assets of foreign subsidiaries are recorded in accumulated other comprehensive earnings in the accompanying consolidated statements of shareholders’ equity.
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ALLO Recapitalization (Tables)
12 Months Ended
Dec. 31, 2021
Restructuring and Related Activities [Abstract]  
Summary of Gain as a Result of Deconsolidation
As a result of the deconsolidation of ALLO on December 21, 2020, the Company recognized a gain of $258.6 million as summarized below.
As of
December 21, 2020
Voting interest/equity method investment - recorded at fair value$132,960 
Preferred membership interest investment - recorded at fair value228,530 
Less: ALLO assets deconsolidated:
Cash and cash equivalents – not held at a related party(299)
Cash and cash equivalents – held at a related party(28,692)
Accounts receivable(4,138)
Goodwill(21,112)
Intangible assets(6,083)
Property and equipment, net(245,295)
Other assets(29,643)
Other liabilities24,185 
Noncontrolling interests208,175 
Gain recognized upon deconsolidation of ALLO$258,588 
Impact to Operating Results as a Result of Deconsolidation
The impact to the Company’s 2020 operating results as a result of the ALLO recapitalization is summarized below:
Gain from deconsolidation$258,588 
Compensation expense (note 1)(9,298)
Obligation to SDC (note 2)(2,339)
$246,951 

Note 1: On October 1, 2020 (prior to the deconsolidation of ALLO), ALLO recognized compensation expense related to the modification of certain equity awards previously granted to members of ALLO’s management.
Note 2:    As part of the ALLO recapitalization transaction, the Company and SDC entered into an agreement, in which the Company has a contingent payment obligation to pay SDC a contingent payment amount of $25.0 million to $35.0 million in the event the Company disposes of its voting membership interests of ALLO that it holds and realizes from such disposition certain targeted return levels. The Company recognized the estimated fair value of the contingent payment as of December 31, 2020 to be $2.3 million, which is included in “other liabilities” on the consolidated balance sheet.
v3.22.0.1
Summary of Significant Accounting Policies and Practices (Tables)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Solar Investment VIEs Not Consolidated
The following table provides a summary of solar investment VIEs that the Company has not consolidated:
As of December 31,
20212020
Investment carrying amount$(41,030)(26,006)
Tax credits subject to recapture111,289 101,943 
Unfunded capital and other commitments4,350 13,330 
Company’s maximum exposure to loss74,609 89,267 
Exposure syndicated to third-party investors71,511 15,562 
Maximum exposure to loss$146,120 104,829 
v3.22.0.1
Loans and Accrued Interest Receivable and Allowance for Loan Losses (Tables)
12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Loans Receivable and Accrued Interest Receivable
Loans and accrued interest receivable consisted of the following:
As ofAs of
 December 31, 2021December 31, 2020
Non-Nelnet Bank:
Federally insured student loans:
Stafford and other$3,904,000 4,383,000 
Consolidation13,187,047 14,746,173 
Total17,091,047 19,129,173 
Private education loans299,442 320,589 
Consumer loans51,301 109,346 
Non-Nelnet Bank loans17,441,790 19,559,108 
Nelnet Bank:
Federally insured student loans88,011 — 
Private education loans169,890 17,543 
Nelnet Bank loans257,901 17,543 
 
Accrued interest receivable788,552 794,611 
Loan discount, net of unamortized loan premiums and deferred origination costs(25,933)(9,908)
Allowance for loan losses:
Non-Nelnet Bank:
Federally insured loans(103,381)(128,590)
Private education loans(16,143)(19,529)
Consumer loans(6,481)(27,256)
Non-Nelnet Bank allowance for loan losses(126,005)(175,375)
Nelnet Bank:
Federally insured loans(268)— 
Private education loans(840)(323)
Nelnet Bank allowance for loan losses(1,108)(323)
 $18,335,197 20,185,656 
Loans Sold and Gains Recognized The following table provides a summary of the consumer loans sold and gains recognized by the Company during 2021, 2020, and 2019.
Loans sold
(par value)
GainResidual interest received in securitization
2021:
May 14, 2021$77,417 15,271 24.5 %
September 29, 202118,390 3,249 6.9 
$95,807 18,520 
2020:
January 30, 2020$124,249 18,206 31.4 %
July 29, 202060,779 14,817 25.4 
$185,028 33,023 
2019:
May 1, 2019$47,680 1,712 11.0 %
October 17, 2019179,301 15,549 28.7 
$226,981 17,261 
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 Topic 326 adoptionProvision (negative provision) for loan lossesCharge-offsRecoveriesInitial allowance on loans purchased with credit deterioration (a)Loan salesBalance at end of period
Year ended December 31, 2021
Non-Nelnet Bank
Federally insured loans$128,590 — (7,343)(21,139)— 3,273 — 103,381 
Private education loans19,529 — (1,333)(2,476)721 — (298)16,143 
Consumer loans27,256 — (4,544)(5,123)824 — (11,932)6,481 
Nelnet Bank
Federally insured loans— — 268 — — — — 268 
Private education loans323 — 526 (4)— — (5)840 
$175,698 — (12,426)(28,742)1,545 3,273 (12,235)127,113 
Year ended December 31, 2020
Non-Nelnet Bank
Federally insured loans$36,763 72,291 18,691 (14,955)— 15,800 — 128,590 
Private education loans9,597 4,797 6,156 (1,652)631 — — 19,529 
Consumer loans15,554 13,926 38,183 (12,115)1,132 — (29,424)27,256 
Nelnet Bank
Private education loans— — 330 (7)— — — 323 
$61,914 91,014 63,360 (28,729)1,763 15,800 (29,424)175,698 
Year ended December 31, 2019
Non-Nelnet Bank
Federally insured loans$42,310 — 8,000 (13,547)— — — 36,763 
Private education loans10,838 — — (1,965)724 — — 9,597 
Consumer loans7,240 — 31,000 (12,498)812 — (11,000)15,554 
$60,388 — 39,000 (28,010)1,536 — (11,000)61,914 

(a)    During the years ended December 31, 2021 and 2020, the Company acquired $224.1 million (par value) and $835.0 million (par value), respectively, of federally insured rehabilitation loans that met the definition of PCD loans when they were purchased by the Company.
Loan Status and Delinquencies 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 December 31,
202120202019
Federally insured loans - Non-Nelnet Bank:    
Loans in-school/grace/deferment (a)$829,624 4.9 % $1,036,028 5.4 % $1,074,678 5.3 %
Loans in forbearance (b)1,118,667 6.5  1,973,175 10.3  1,339,821 6.6 
Loans in repayment status:  
Loans current12,847,685 84.9 %13,683,054 84.9 %15,410,993 86.0 %
Loans delinquent 31-60 days (c)895,656 5.9 633,411 3.9 650,796 3.6 
Loans delinquent 61-90 days (c)352,449 2.3 307,936 1.9 428,879 2.4 
Loans delinquent 91-120 days (c)251,075 1.7 800,257 5.0 310,851 1.7 
Loans delinquent 121-270 days (c)592,449 3.9 674,975 4.2 812,107 4.5 
Loans delinquent 271 days or greater (c)(d)203,442 1.3 20,337 0.1 300,418 1.8 
Total loans in repayment15,142,756 88.6 100.0 %16,119,970 84.3 100.0 %17,914,044 88.1 100.0 %
Total federally insured loans17,091,047 100.0 % 19,129,173 100.0 % 20,328,543 100.0 %
Accrued interest receivable784,716 791,453 730,059 
Loan discount, net of unamortized premiums and deferred origination costs(28,309)(14,505)(35,822)
Non-accretable discount (e)— — (28,036)
Allowance for loan losses(103,381)(128,590)(36,763)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$17,744,073 $19,777,531 $20,957,981 
Private education loans - Non-Nelnet Bank:
Loans in-school/grace/deferment (a)$9,661 3.2 %$5,049 1.6 %$4,493 1.8 %
Loans in forbearance (b)3,601 1.2 2,359 0.7 3,108 1.3 
Loans in repayment status:
Loans current280,457 98.0 %310,036 99.0 %227,013 95.9 %
Loans delinquent 31-60 days (c)2,403 0.8 1,099 0.4 2,814 1.2 
Loans delinquent 61-90 days (c)976 0.3 675 0.2 1,694 0.7 
Loans delinquent 91 days or greater (c)2,344 0.9 1,371 0.4 5,136 2.2 
Total loans in repayment286,180 95.6 100.0 %313,181 97.7 100.0 %236,657 96.9 100.0 %
Total private education loans299,442 100.0 % 320,589 100.0 % 244,258 100.0 %
Accrued interest receivable1,960 2,131 1,558 
Loan discount, net of unamortized premiums(1,123)2,691 46 
Non-accretable discount (e)— — (4,362)
Allowance for loan losses(16,143)(19,529)(9,597)
Total private education loans and accrued interest receivable, net of allowance for loan losses$284,136 $305,882 $231,903 
Consumer loans - Non-Nelnet Bank:
Loans in deferment (a)$43 0.1 %$829 0.8 %$— 
Loans in repayment status:
Loans current49,697 97.0 %105,650 97.4 %220,404 97.5 %
Loans delinquent 31-60 days (c)414 0.8 954 0.9 2,046 0.9 
Loans delinquent 61-90 days (c)322 0.6 804 0.7 1,545 0.7 
Loans delinquent 91 days or greater (c)825 1.6 1,109 1.0 1,923 0.9 
Total loans in repayment51,258 99.9 100.0 %108,517 99.2 100.0 %225,918 100.0 %
Total consumer loans51,301 100.0 %109,346 100.0 %225,918 
Accrued interest receivable396 1,001 1,880 
Loan premium913 1,640 740 
Allowance for loan losses(6,481)(27,256)(15,554)
Total consumer loans and accrued interest receivable, net of allowance for loan losses$46,129 $84,731 $212,984 
As of December 31,
202120202019
Federally insured loans - Nelnet Bank:
Loans in-school/grace/deferment (a)$330 0.4 %
Loans in forbearance (b)1,057 1.2 
Loans in repayment status:
Loans current85,599 98.8 %
Loans delinquent 31-60 days (c)816 1.0 
Loans delinquent 61-90 days (c)— — 
Loans delinquent 91-120 days (c)— — 
Loans delinquent 121-270 days (c)209 0.2 
Loans delinquent 271 days or greater (c)— — 
Total loans in repayment86,624 98.4 100.0 %
Total federally insured loans88,011 100.0 %
Accrued interest receivable1,216 
Loan premium26 
Allowance for loan losses(268)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$88,985 
Private education loans - Nelnet Bank:
Loans in-school/grace/deferment (a)$150 0.1 %$— — %
Loans in forbearance (b)460 0.3 29 0.2 
Loans in repayment status:
Loans current169,157 99.9 %17,514 100.0 %
Loans delinquent 31-60 days (c)51 — — — 
Loans delinquent 61-90 days (c)— — — — 
Loans delinquent 91 days or greater (c)72 0.1 — — 
Total loans in repayment169,280 99.6 100.0 %17,514 99.8 100.0 %
Total private education loans169,890 100.0 %17,543 100.0 %
Accrued interest receivable264 26 
Deferred origination costs2,560 266 
Allowance for loan losses(840)(323)
Total private education loans and accrued interest receivable, net of allowance for loan losses$171,874 $17,512 

(a)    Loans for borrowers who still may be attending school or engaging in other permitted educational activities and are not yet required to make payments on the loans, e.g., residency periods for medical students or a grace period for bar exam preparation for law students.
(b)    Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing procedures and policies.
(c)    The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance.
(d)    A portion of loans included in loans delinquent 271 days or greater includes loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency.
(e)    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
The following table presents the amortized cost of the Company's private education and consumer loans by loan status and delinquency amount as of December 31, 2021 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.
20212020201920182017Prior yearsTotal
Private education loans - Non-Nelnet Bank:
Loans in school/grace/deferment$2,266 1,981 3,557 — — 1,857 9,661 
Loans in forbearance— 267 960 47 — 2,327 3,601 
Loans in repayment status:
Loans current2,768 68,754 50,348 492 — 158,095 280,457 
Loans delinquent 31-60 days— 308 225 — — 1,870 2,403 
Loans delinquent 61-90 days— 81 — — — 895 976 
Loans delinquent 91 days or greater— — — — 2,340 2,344 
Total loans in repayment2,768 69,143 50,577 492 — 163,200 286,180 
Total private education loans$5,034 71,391 55,094 539 — 167,384 299,442 
Accrued interest receivable1,960 
Loan discount, net of unamortized premiums(1,123)
Allowance for loan losses(16,143)
Total private education loans and accrued interest receivable, net of allowance for loan losses$284,136 
Consumer loans - Non-Nelnet Bank:
Loans in deferment$25 — — 18 — — 43 
Loans in repayment status:
Loans current37,822 960 5,087 5,746 82 — 49,697 
Loans delinquent 31-60 days205 51 120 33 — 414 
Loans delinquent 61-90 days113 40 109 60 — — 322 
Loans delinquent 91 days or greater133 43 261 388 — — 825 
Total loans in repayment38,273 1,094 5,577 6,227 87 — 51,258 
Total consumer loans$38,298 1,094 5,577 6,245 87 — 51,301 
Accrued interest receivable396 
Loan premium913 
Allowance for loan losses(6,481)
Total consumer loans and accrued interest
receivable, net of allowance for loan losses
$46,129 
Private education loans - Nelnet Bank:
Loans in school/grace/deferment$150 — — — — — 150 
Loans in forbearance445 15 — — — — 460 
Loans in repayment status:
Loans current158,486 10,671 — — — — 169,157 
Loans delinquent 31-60 days51 — — — — — 51 
Loans delinquent 61-90 days— — — — — — — 
Loans delinquent 91 days or greater72 — — — — — 72 
Total loans in repayment158,609 10,671 — — — — 169,280 
Total private education loans$159,204 10,686 — — — — 169,890 
Accrued interest receivable264 
Deferred origination costs2,560 
Allowance for loan losses(840)
Total private education loans and accrued interest receivable, net of allowance for loan losses$171,874 
v3.22.0.1
Bonds and Notes payable (Tables)
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Outstanding Debt Obligations
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 As of December 31, 2021
Carrying
amount
Interest rate
range
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:
   
Bonds and notes based on indices$15,887,295 
0.23% - 2.10%
5/27/25 - 9/25/69
Bonds and notes based on auction248,550 
0.00% - 1.09%
3/22/32 - 8/27/46
Total FFELP variable-rate bonds and notes16,135,845 
Fixed-rate bonds and notes issued in FFELP loan asset-backed
      securitizations
772,935 
1.42% - 3.45%
10/25/67 - 8/27/68
FFELP loan warehouse facility5,048 
0.21%
5/22/23
Private education loan warehouse facility107,011 0.24%2/13/23
Variable-rate bonds and notes issued in private education loan asset-backed securitizations
31,818 
1.65% / 1.85%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
28,613 
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit— 9/22/26
Participation agreement253,969 0.78%5/4/22
Repurchase agreements483,848 
0.66% - 1.46%
5/27/22 - 12/20/23
Secured line of credit5,000 1.91%5/30/22
 17,824,087   
Discount on bonds and notes payable and debt issuance costs(192,998)
Total$17,631,089 
 
 As of December 31, 2020
Carrying
amount
Interest rate
range
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:   
Bonds and notes based on indices$17,127,643 
0.28% - 2.05%
5/27/25 - 10/25/68
Bonds and notes based on auction749,925 
1.12% - 2.14%
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes17,877,568 
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations923,076 
1.42% - 3.45%
10/25/67 - 8/27/68
FFELP loan warehouse facilities252,165 
0.27% / 0.31%
5/20/22 / 2/26/23
Private education loan warehouse facility150,397 0.28%2/13/22
Consumer loan warehouse facility25,809 0.28%4/23/22
Variable-rate bonds and notes issued in private education loan asset-backed securitizations49,025 
1.65% / 1.90%
12/26/40 / 6/25/49
Fixed-rate bonds and notes issued in private education loan asset-backed securitization37,251 
3.60% / 5.35%
12/26/40 / 12/28/43
Unsecured line of credit120,000 1.65%12/16/24
Participation agreement118,558 0.84%5/4/21
Secured line of credit5,000 1.90%5/30/22
 19,558,849   
Discount on bonds and notes payable and debt issuance costs(238,123)
Total$19,320,726 
Asset Backed Securitization Transitions
The following tables summarize the asset-backed securitization transactions completed in 2021 and 2020.
Securitizations completed during the year ended December 31, 2021
2021-12021-2Total
Date securities issued6/30/218/31/21
Total original principal amount$797,000 531,300 1,328,300 
Class A senior notes:
Total principal amount$781,000 520,600 1,301,600 
Cost of funds
1-month LIBOR plus 0.50%
1-month LIBOR plus 0.50%
Final maturity date7/25/699/25/69
Class B subordinated notes:
Total principal amount$16,000 10,700 26,700 
Cost of funds
1-month LIBOR plus 1.25%
1-month LIBOR plus 1.20%
Final maturity date7/25/699/25/69
Securitizations completed during the year ended December 31, 2020
2020-12020-22020-32020-4 (a)2020-5 (a)Total
Date securities issued2/20/203/11/203/19/208/27/2010/1/20
Total original principal amount$435,600 272,100 352,600 191,300 295,000 1,546,600 
Class A senior notes:
Total principal amount$424,600 264,300 343,600 191,300 295,000 1,518,800 
Bond discount— (44)(1,503)(19)— (1,566)
Issue price$424,600 264,256 342,097 191,281 295,000 1,517,234 
Cost of funds
1-month LIBOR plus 0.74%
1.83%
1-month LIBOR plus 0.92%
1.42%
1-month LIBOR plus 0.88%
Final maturity date3/26/684/25/683/26/688/27/6810/25/68
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

(a)    Total original principal amount excludes the Class B subordinated tranche for the 2020-4 and 2020-5 transactions, totaling $5.0 million and $7.5 million, respectively, that was retained by the Company at issuance. As of December 31, 2021, the Company had a total of $381.2 million (par value) of its own asset-backed securities that were retained upon initial issuance or repurchased in the secondary market. For accounting purposes, these notes are eliminated in consolidation and are not included in the Company's consolidated financial statements. However, these securities remain legally outstanding at the trust level and the Company could sell these notes to third parties or redeem the notes at par as cash is generated in the trust estate. Upon a sale of these notes to third parties, the Company would obtain cash proceeds equal to the market value of the notes on the date of such sale. Upon sale, these notes would be shown as "bonds and notes payable" in the Company's consolidated balance sheet.
Long-term Debt Maturities
Bonds and notes outstanding as of December 31, 2021 are due in varying amounts as shown below.
2022$439,328 
2023415,547 
2024— 
202528,116 
2026— 
2027 and thereafter16,941,096 
$17,824,087 
Debt Repurchased
The following table summarizes the Company's repurchases of its own debt. Gains/losses recorded by the Company from the repurchase of debt are included in “other” in "other income/expense" on the Company’s consolidated statements of income.
Year ended December 31,
202120202019
Purchase price$(407,487)(25,643)(39,864)
Par value406,875 27,605 40,000 
Remaining debt discount and unamortized cost of issuance(6,163)(38)— 
(Loss) gain$(6,775)1,924 136 
v3.22.0.1
Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding Basis Swap
The following table summarizes the Company’s 1:3 Basis Swaps outstanding:
As of December 31,
20212020
MaturityNotional amountNotional amount
2021$— 250,000 
20222,000,000 2,000,000 
2023750,000 750,000 
20241,750,000 1,750,000 
20261,150,000 1,150,000 
2027250,000 250,000 
$5,900,000 6,150,000 
Interest Rate Swaps - Floor Income Hedges
The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
As of December 31, 2021As of December 31, 2020
MaturityNotional amountWeighted average fixed rate paid by the Company (a)Notional amountWeighted average fixed rate paid by the Company (a)
2021$— — %$600,000 2.15 %
2022500,000 0.94 500,000 0.94 
2023900,000 0.62 900,000 0.62 
20242,500,000 0.35 2,000,000 0.32 
2025500,000 0.35 500,000 0.35 
2026500,000 1.02 — — 
2031100,000 1.53 — — 
 $5,000,000 0.55 %$4,500,000 0.70 %
 
(a)    For all interest rate derivatives, the Company receives discrete three-month LIBOR.
Derivative Impact on Statement of Income
The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income.
Year ended December 31,
202120202019
Settlements:  
1:3 basis swaps$(1,638)10,378 5,214 
Interest rate swaps - floor income hedges(19,729)(6,699)40,192 
Total settlements - (expense) income(21,367)3,679 45,406 
Change in fair value:   
1:3 basis swaps5,027 (7,462)1,515 
Interest rate swaps - floor income hedges87,786 (20,682)(77,027)
Other— — (683)
Total change in fair value - income (expense)92,813 (28,144)(76,195)
Derivative market value adjustments and derivative
   settlements, net - income (expense)
$71,446 (24,465)(30,789)
v3.22.0.1
Investments (Tables)
12 Months Ended
Dec. 31, 2021
Investments [Abstract]  
Investments
A summary of the Company's investments follows:
As of December 31, 2021As of December 31, 2020
Amortized costGross unrealized gainsGross unrealized lossesFair valueAmortized costGross unrealized gainsGross unrealized lossesFair value
Investments (at fair value):
FFELP loan asset-backed securities- available-for-sale (a)$480,691 14,710 (719)494,682 338,475 8,040 (13)346,502 
Private education loan asset-backed securities - available-for-sale (b)414,286 507 (2,241)412,552 — — — — 
Other debt securities - available-for-sale22,435 — — 22,435 2,103 — 2,105 
Equity securities60,153 13,930 (2,097)71,986 36,227 8,768 (2,954)42,041 
Total investments (at fair value)$977,565 29,147 (5,057)1,001,655 376,805 16,810 (2,967)390,648 
Other Investments (not measured at fair value):
Other debt securities - held-to-maturity (c)8,200 — 
Venture capital and funds:
Measurement alternative (d)(e)157,609 144,795 
Equity method67,840 14,912 
Total venture capital and funds225,449 159,707 
Real estate
Equity method47,226 50,291 
Notes receivable— 847 
Total real estate47,226 51,138 
Investment in ALLO:
Voting interest/equity method (f)87,247 129,396 
Preferred membership interest and accrued and unpaid preferred return (g)137,342 228,916 
Total investment in ALLO224,589 358,312 
Solar (h)(42,457)(30,373)
Beneficial interest in private education loan securitizations (i)
66,008 — 
Beneficial interest in consumer loan securitizations, net of allowance for credit losses of $4,449 as of December 31, 2020 (i)
28,366 27,954 
Beneficial interest in federally insured student loan securitizations (i)25,768 30,377 
Tax liens, affordable housing, and other4,115 5,177 
Total investments (not measured at fair value)587,264 602,292 
Total investments$1,588,919 $992,940 
(a)    As of December 31, 2021, $254.0 million (par value) of FFELP loan asset-backed securities were subject to participation interests held by Union Bank, as discussed in note 5 under "Participation Agreement."
As of December 31, 2021, the stated maturities of a majority of the Company’s FFELP student loan asset-backed securities classified as available-for-sale were greater than 10 years; however, such securities with a fair value of $77.9 million as of December 31, 2021 are scheduled to mature within the next 10 years, including $25.2 million, $32.1 million, and $20.6 million due within the next one year, 1-5 years, and 6-10 years, respectively.
(b)    As of December 31, 2021, a total of $400.0 million (par value) of private education loan asset-backed securities were subject to repurchase agreements with third-parties, as discussed in note 5 under “Repurchase Agreements.”
As of December 31, 2021, the stated maturities for all the Company’s private education loan asset-backed securities classified as available for sale were greater than 10 years.
(c)    As of December 31, 2021, securities classified as held-to-maturity of $3.5 million and $4.7 million were scheduled to mature within one year and 1-5 years, respectively. As of December 31, 2021, the fair value of these securities approximated their carrying value.
(d)    The Company has an investment in Agile Sports Technologies, Inc. (doing business as “Hudl”) that is included in “venture capital and funds” in the above table. In May 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 second quarter of 2020 to adjust its carrying value to reflect the May 2020 transaction value. This gain is included in “other” in “other income/expense” on the consolidated statements of income. In May 2021, the Company made an additional $5 million investment in Hudl. For accounting purposes, the May 2021 equity raise transaction was not considered an observable market transaction (not orderly) because it was not subject to customary marketing activities and the price was contractually agreed to during Hudl's prior May 2020 equity raise. Accordingly, the Company did not adjust its carrying value of its Hudl investment to the May 2021 transaction value. As of December 31, 2021, the carrying amount of the Company's investment in Hudl is $133.9 million.
David S. Graff, who has served on the Company's Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl.
(e)    In October 2021, CompanyCam Inc., an entity in which the Company has an equity investment, completed an additional equity raise. The Company accounts for its investment in this entity using the measurement alternative method, which requires it to adjust its carrying value of the investment for changes resulting from observable market transactions. As a result of this entity’s equity raise, the Company recognized a $10.3 million (pre-tax) gain during the fourth quarter of 2021 to adjust its carrying value to reflect the October 2021 transaction value. As of December 31, 2021, the carrying amount of this investment is $11.5 million.
(f)    The Company accounts for its voting membership interests in ALLO Holdings LLC, a holding company for ALLO Communications LLC (collectively referred to as "ALLO") under the HLBV method of accounting. During the years ended December 31, 2021 and 2020, the Company recognized pre-tax losses of $42.1 million and $3.6 million, respectively, under the HLBV method of accounting on its ALLO voting membership interests investment.
Assuming ALLO continues its planned growth in existing and new communities, it will continue to invest substantial amounts in property and equipment to build the network and connect customers. The resulting recognition of depreciation and development costs could result in continuing net operating losses by ALLO under GAAP. Applying the HLBV method of accounting, the Company will continue to recognize a significant portion of ALLO’s anticipated losses over the next several years. Income and losses from the Company's investment in ALLO are included in "other" in "other income/expense" on the consolidated statements of income.
(g)    On January 19, 2021, ALLO obtained certain private debt financing facilities from unrelated third-party lenders. With proceeds from this transaction, ALLO redeemed a portion of its non-voting preferred membership interests held by the Company in exchange for an aggregate redemption price payment to the Company of $100.0 million. Under October 2020 recapitalization agreements for ALLO, the parties have agreed to use commercially reasonable efforts (which expressly excludes requiring ALLO to raise any additional equity financing or sell any assets) to cause ALLO to redeem, on or before April 2024, the remaining preferred membership interests of ALLO held by the Company, plus the amount of accrued and unpaid preferred return on such interests.
As of December 31, 2021, the outstanding preferred membership interests of ALLO held by the Company was $137.3 million, which includes accrued and unpaid preferred return of $7.7 million that was capitalized at December 31, 2021. The preferred membership interests of ALLO held by the Company earn a preferred annual return of 6.25 percent. During the years ended December 31, 2021 and 2020, the Company recognized pre-tax income on its ALLO preferred membership interests of $8.4 million and $0.4 million, respectively, that is included in "other" in "other income/expense" on the consolidated statements of income.
(h)    The Company makes investments in entities that promote renewable energy sources (solar). The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods which range from 5 to 6 years. As of December 31, 2021, the Company has funded a total of $227.9 million in solar investments, which includes $59.2 million funded by syndication partners. The carrying value of the Company’s solar investments are reduced by tax credits earned when the solar project is placed in service. The solar investment balance at December 31, 2021 represents the sum of total tax credits earned on solar projects placed in service through December 31, 2021 and the calculated HLBV net losses being larger than total payments made by the Company on such projects. The Company is committed to fund an additional $22.3 million on these projects, of which $17.9 million will be provided by syndication partners.
The Company accounts for its solar investments using the HLBV method of accounting. For the majority of the Company’s solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment. During the years ended December 31, 2021 and 2020, the Company recognized pre-tax losses of $10.1
million and $37.4 million, respectively, on its solar investments. These losses are included in “other” in "other income/expense" on the consolidated statements of income. Losses from solar investments in 2021 and 2020 include losses of $7.1 million and $3.8 million, respectively, attributable to third-party minority interest investors that are included in “net loss attributable to noncontrolling interests” in the consolidated statements of income.
(i)    The Company has partial ownership in certain private education, consumer, and federally insured student loan securitizations. As of the latest remittance reports filed by the various trusts prior to or as of December 31, 2021, the Company's ownership correlates to approximately $688 million, $195 million, and $445 million of private education, consumer, and federally insured student loans, respectively, included in these securitizations.
v3.22.0.1
Business Combination (Tables)
12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Estimated Fair Values of Assets Acquired and Liabilities Assumed
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

Cash and cash equivalents$
Accounts receivable5,711 
Intangible assets24,200 
Excess cost over fair value of net assets acquired (goodwill)6,292 
Other liabilities(11,510)
Net assets acquired$24,700 
v3.22.0.1
Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2021
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets
Intangible assets consist of the following:
Weighted average remaining useful life as of
December 31, 2021 (months)
As of December 31,
20212020
Amortizable intangible assets, net:  
Customer relationships (net of accumulated amortization of $97,398 and $83,419, respectively)
103$47,894 66,974 
Computer software (net of accumulated amortization of $3,669 and $4,127, respectively)
244,135 6,430 
Trade names (net of accumulated amortization of $3,455)
— 1,666 
Total - amortizable intangible assets, net96$52,029 75,070 
Intangible Assets Future Amortization Expense As of December 31, 2021, the Company estimates it will record amortization expense as follows:
2022$9,939 
20239,830 
20247,457 
20254,644 
20264,517 
2027 and thereafter15,642 
 $52,029 
v3.22.0.1
Goodwill (Tables)
12 Months Ended
Dec. 31, 2021
Goodwill [Abstract]  
Schedule of Goodwill
The change in the carrying amount of goodwill by reportable operating segment was as follows:
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset Generation and Management (a)Nelnet BankCorporate and Other ActivitiesTotal
Balance as of December 31, 2019$23,639 70,278 21,112 41,883 — — 156,912 
Goodwill acquired— 6,292 — — — — 6,292 
Deconsolidation of ALLO— — (21,112)— — — (21,112)
Balance as of December 31, 2020 and 2021$23,639 76,570 — 41,883 — — 142,092 

(a)    As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of new FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units.
v3.22.0.1
Property and Equipment (Tables)
12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
Property and equipment consisted of the following:
As of December 31,
Useful life20212020
Computer equipment and software
1-5 years
$234,222 172,664 
Building and building improvements
5-48 years
48,782 52,444 
Office furniture and equipment
1-10 years
22,463 21,899 
Leasehold improvements
1-15 years
10,537 9,168 
Transportation equipment
5-10 years
4,857 4,857 
Land3,266 3,642 
Construction in progress2,392 18,478 
326,519 283,152 
Accumulated depreciation(207,106)(159,625)
Total property and equipment, net$119,413 123,527 
v3.22.0.1
Shareholders' Equity (Tables)
12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Schedule of Stock Repurchases Shares repurchased by the Company during 2021, 2020, and 2019 are shown in the table below. In accordance with the corporate laws of the state in which the Company is incorporated, all shares repurchased by the Company are legally retired upon acquisition by the Company.
Total shares repurchasedPurchase price
(in thousands)
Average price of shares repurchased (per share)
Year ended December 31, 2021713,274 $58,111 $81.47 
Year ended December 31, 20201,594,394 73,358 46.01 
Year ended December 31, 2019726,273 40,411 55.64 
v3.22.0.1
Earnings per Common Share (Tables)
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Basic and Diluted Earnings per Share
 Year ended December 31,
202120202019
Common shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotalCommon shareholdersUnvested restricted stock shareholdersTotal
Numerator:
Net income attributable to Nelnet, Inc.$386,865 6,421 393,286 347,451 4,992 352,443 139,946 1,857 141,803 
Denominator:
Weighted-average common shares outstanding - basic and diluted37,943,032 629,769 38,572,801 38,506,351 553,237 39,059,588 39,523,082 524,320 40,047,402 
Earnings per share - basic and diluted$10.20 10.20 10.20 9.02 9.02 9.02 3.54 3.54 3.54 
v3.22.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows:
Year ended December 31,
20212020
Gross balance - beginning of year$20,318 20,148 
Additions based on tax positions of prior years271 634 
Additions based on tax positions related to the current year2,388 2,523 
Reductions for tax positions of prior years(1,002)(69)
Reductions due to lapse of applicable statutes of limitations(2,297)(2,918)
Gross balance - end of year$19,678 20,318 
Provision for Income Tax Expense (Benefit)
The provision for income taxes consists of the following components:
Year ended December 31,
202120202019
Current:
Federal$55,239 82,832 38,931 
State4,792 9,815 3,546 
Foreign169 239 239 
Total current provision60,200 92,886 42,716 
Deferred:
Federal46,145 7,269 (4,280)
State9,647 718 (2,922)
Foreign(170)(13)(63)
Total deferred provision55,622 7,974 (7,265)
Provision for income tax expense$115,822 100,860 35,451 
Effective Income Tax Rate Reconciliation
The differences between the income tax provision computed at the statutory federal corporate tax rate and the financial statement provision for income taxes are shown below:
Year ended December 31,
202120202019
Tax expense at federal rate21.0 %21.0 %21.0 %
Increase (decrease) resulting from:
State tax, net of federal income tax benefit3.0 2.8 2.5 
Tax credits(0.8)(1.1)(3.0)
Provision for uncertain federal and state tax matters(0.1)(0.2)(0.7)
Other(0.3)(0.2)0.2 
Effective tax rate22.8 %22.3 %20.0 %
Deferred Tax Assets and Liabilities
The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following:
As of December 31,
20212020
Deferred tax assets:
Deferred revenue$21,593 18,081 
Student loans19,776 26,894 
Accrued expenses10,712 10,661 
State tax credit carryforwards8,546 5,987 
Stock compensation4,027 2,546 
Lease liability3,685 4,123 
Net operating losses2,410 647 
Basis in certain derivative contracts— 5,061 
Securitizations— 694 
Total gross deferred tax assets70,749 74,694 
Less state tax valuation allowance(2,084)(569)
Net deferred tax assets68,665 74,125 
Deferred tax liabilities:
Partnership basis100,428 64,023 
Basis in certain derivative contracts15,927 — 
Depreciation15,264 14,092 
Debt and equity investments12,859 20,538 
Loan origination services4,930 5,040 
Intangible assets4,772 7,703 
Lease right of use asset3,317 4,037 
Securitization128 — 
Other1,665 661 
Total gross deferred tax liabilities159,290 116,094 
Net deferred tax asset (liability)$(90,625)(41,969)
v3.22.0.1
Segment Reporting (Tables)
12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Reportable Operating Segments Reconciled to Consolidated Financial Statements The following tables include the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements.
 Year ended December 31, 2021
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunications (a)Asset
Generation and
Management
Nelnet BankCorporate and Other ActivitiesEliminationsTotal
Total interest income$137 1,075 — 506,901 7,721 9,801 (1,800)523,835 
Interest expense94 — — 172,918 1,507 3,515 (1,800)176,233 
Net interest income (expense)43 1,075 — 333,983 6,214 6,286 — 347,602 
Less (negative provision) provision for loan losses— — — (13,220)794 — — (12,426)
Net interest income after provision for loan losses43 1,075 — 347,203 5,420 6,286 — 360,028 
Other income/expense:      
Loan servicing and systems revenue486,363 — — — — — — 486,363 
Intersegment revenue33,956 12 — — — — (33,968)— 
Education technology, services, and payment processing revenue— 338,234 — — — — — 338,234 
Communications revenue— — — — — — — — 
Other3,307 — — 34,306 713 40,356 — 78,681 
Gain on sale of loans— — — 18,715 — — — 18,715 
Gain from deconsolidation of ALLO— — — — — — — — 
Impairment expense and provision for beneficial interests, net(13,243)— — 2,436 — (5,553)— (16,360)
Derivative settlements, net— — — (21,367)— — — (21,367)
Derivative market value adjustments, net— — — 92,813 — — — 92,813 
Total other income/expense510,383 338,246 — 126,903 713 34,803 (33,968)977,079 
Cost of services:
Cost to provide education technology, services, and payment processing services— 108,660 — — — — — 108,660 
Cost to provide communications services— — — — — — — — 
Total cost of services— 108,660 — — — — — 108,660 
Operating expenses:      
Salaries and benefits297,406 112,046 — 2,135 5,042 90,502 — 507,132 
Depreciation and amortization25,649 11,404 — — — 36,682 — 73,741 
Other expenses52,720 19,318 — 13,487 1,776 58,173 — 145,469 
Intersegment expenses, net72,206 15,180 — 34,868 107 (88,393)(33,968)— 
Total operating expenses447,981 157,948 — 50,490 6,925 96,964 (33,968)726,342 
Income (loss) before income taxes62,445 72,713 — 423,616 (792)(55,875)— 502,105 
Income tax (expense) benefit(14,987)(17,451)— (101,668)175 18,109 — (115,822)
Net income (loss)47,458 55,262 — 321,948 (617)(37,766)— 386,283 
Net loss attributable to noncontrolling interests— — — — — 7,003 — 7,003 
Net income (loss) attributable to Nelnet, Inc.$47,458 55,262 — 321,948 (617)(30,763)— 393,286 
Total assets as of December 31, 2021$296,618 443,788 — 18,965,371 535,948 1,963,032 (526,716)21,678,041 

(a)    On December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. See note 2, “ALLO Recapitalization,” for a description of the transaction and a summary of the deconsolidation impact. Accordingly, there are no operating results for the (former) Communications operating segment in 2021.
 Year ended December 31, 2020
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunications (a)Asset
Generation and
Management
Nelnet Bank (b)Corporate and Other ActivitiesEliminationsTotal
Total interest income$436 3,036 611,474 414 5,775 (1,480)619,656 
Interest expense121 54 — 328,157 41 3,178 (1,480)330,071 
Net interest income (expense)315 2,982 283,317 373 2,597 — 289,585 
Less (negative provision) provision for loan losses— — — 63,029 330 — — 63,360 
Net interest income after provision for loan losses315 2,982 220,288 43 2,597 — 226,225 
Other income/expense:
Loan servicing and systems revenue451,561 — — — — — — 451,561 
Intersegment revenue36,520 20 — — — — (36,540)— 
Education technology, services, and payment processing revenue— 282,196 — — — — — 282,196 
Communications revenue— — 76,643 — — — — 76,643 
Other9,421 373 1,561 7,189 48 38,969 — 57,561 
Gain on sale of loans— — — 33,023 — — — 33,023 
Gain from deconsolidation of ALLO— — — — — 258,588 — 258,588 
Impairment expense and provision for beneficial interests, net— — — (16,607)— (8,116)— (24,723)
Derivative settlements, net— — — 3,679 — — — 3,679 
Derivative market value adjustments, net— — — (28,144)— — — (28,144)
Total other income/expense497,502 282,589 78,204 (860)48 289,441 (36,540)1,110,384 
Cost of services:
Cost to provide education technology, services, and payment processing services— 82,206 — — — — — 82,206 
Cost to provide communications services— — 22,812 — — — — 22,812 
Total cost of services— 82,206 22,812 — — — — 105,018 
Operating expenses:
Salaries and benefits285,526 98,847 30,935 1,747 36 84,741 — 501,832 
Depreciation and amortization37,610 9,459 42,588 — — 29,043 — 118,699 
Other expenses57,420 14,566 13,327 15,806 135 59,320 — 160,574 
Intersegment expenses, net63,886 14,293 1,732 39,172 — (82,543)(36,540)— 
Total operating expenses444,442 137,165 88,582 56,725 171 90,561 (36,540)781,105 
Income (loss) before income taxes53,375 66,200 (33,188)162,703 (80)201,477 — 450,486 
Income tax (expense) benefit(12,810)(15,888)7,965 (39,049)20 (41,098)— (100,860)
Net income (loss)40,565 50,312 (25,223)123,654 (60)160,379 — 349,626 
Net loss attributable to noncontrolling interests— — — — — 2,817 — 2,817 
Net income (loss) attributable to Nelnet, Inc.$40,565 50,312 (25,223)123,654 (60)163,196 — 352,443 
Total assets as of December 31, 2020$190,297 436,702 — 20,773,968 216,937 1,225,790 (197,534)22,646,160 

(a)    On December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. See note 2, “ALLO Recapitalization,” for a description of the transaction and a summary of the deconsolidation impact. Accordingly, the operating results for the Communications operating segment in the table above are for the period from January 1, 2020 through December 21, 2020.
(b)    Nelnet Bank launched operations on November 2, 2020. Accordingly, the operating results for the Nelnet Bank operating segment in the table above are for the period from November 2, 2020 through December 31, 2020.
 Year ended December 31, 2019
Loan Servicing and SystemsEducation Technology, Services, and Payment ProcessingCommunicationsAsset
Generation and
Management
Nelnet Bank (a)Corporate and Other ActivitiesEliminationsTotal
Total interest income$2,031 9,244 931,963 — 9,232 (3,796)948,677 
Interest expense115 46 — 693,375 — 9,587 (3,796)699,327 
Net interest income (expense)1,916 9,198 238,588 — (355)— 249,350 
Less (negative provision) provision for loan losses— — — 39,000 — — — 39,000 
Net interest income after provision for loan losses1,916 9,198 199,588 — (355)— 210,350 
Other income/expense:
Loan servicing and systems revenue455,255 — — — — — — 455,255 
Intersegment revenue46,751 — — — — — (46,751)— 
Education technology, services, and payment processing revenue— 277,331 — — — — — 277,331 
Communications revenue— — 64,269 — — — — 64,269 
Other9,736 259 1,509 13,088 — 23,327 — 47,918 
Gain on sale of loans— — — 17,261 — — — 17,261 
Gain from deconsolidation of ALLO— — — — — — — — 
Impairment expense and provision for beneficial interests, net— — — — — — — — 
Derivative settlements, net— — — 45,406 — — — 45,406 
Derivative market value adjustments, net— — — (76,195)— — — (76,195)
Total other income/expense511,742 277,590 65,778 (440)— 23,327 (46,751)831,245 
Cost of services:
Cost to provide education technology, services, and payment processing services— 81,603 — — — — — 81,603 
Cost to provide communications services— — 20,423 — — — — 20,423 
Total cost of services— 81,603 20,423 — — — — 102,026 
Operating expenses:
Salaries and benefits276,136 94,666 21,004 1,545 — 70,152 — 463,503 
Depreciation and amortization34,755 12,820 37,173 — — 20,300 — 105,049 
Other expenses71,064 22,027 15,165 34,445 — 51,571 — 194,272 
Intersegment expenses, net54,325 13,405 2,962 47,362 — (71,303)(46,751)— 
Total operating expenses436,280 142,918 76,304 83,352 — 70,720 (46,751)762,824 
Income (loss) before income taxes77,378 62,267 (30,946)115,796 — (47,748)— 176,745 
Income tax (expense) benefit(18,571)(14,944)7,427 (27,792)— 18,428 — (35,451)
Net income (loss)58,807 47,323 (23,519)88,004 — (29,320)— 141,294 
Net loss attributable to noncontrolling interests— — — — — 509 — 509 
Net income (loss) attributable to Nelnet, Inc.$58,807 47,323 (23,519)88,004 — (28,811)— 141,803 
Total assets as of December 31, 2019$290,311 506,382 303,347 22,128,917 — 627,897 (147,884)23,708,970 

(a)    Nelnet Bank launched operations on November 2, 2020. Accordingly, there are no operating results for the Nelnet Bank operating segment in the year ended December 31, 2019.
v3.22.0.1
Disaggregated Revenue and Deferred Revenue (Tables)
12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregated Revenue
The following table provides disaggregated revenue by service offering:
Year ended December 31,
202120202019
Government servicing - Nelnet$167,579 146,798 157,991 
Government servicing - Great Lakes193,214 179,872 185,656 
Private education and consumer loan servicing47,302 32,492 36,788 
FFELP servicing18,281 20,183 25,043 
Software services34,600 41,999 41,077 
Outsourced services and other25,387 30,217 8,700 
Loan servicing and systems revenue$486,363 451,561 455,255 
The following table provides disaggregated revenue by service offering:
Year ended December 31,
202120202019
Tuition payment plan services$103,970 100,674 106,682 
Payment processing127,080 114,304 110,848 
Education technology and services105,186 65,885 58,578 
Other1,998 1,333 1,223 
Education technology, services, and payment processing revenue$338,234 282,196 277,331 
The following table provides disaggregated revenue by service offering and customer type. The amounts listed for 2020 reflect activity prior to ALLO’s deconsolidation on December 21, 2020:
Period from January 1 2020 - December 21, 2020Year ended December 31, 2019
Internet$48,362 38,239 
Television17,091 16,196 
Telephone11,037 9,705 
Other153 129 
Communications revenue$76,643 64,269 
Residential revenue$58,029 48,344 
Business revenue18,038 15,689 
Other576 236 
Communications revenue$76,643 64,269 
Components of Other Income
The following table provides the components of "other" in “other income/expense” on the consolidated statements of income:
Year ended December 31,
202120202019
Income/gains from investments, net$91,593 56,402 8,356 
ALLO preferred return8,427 386 — 
Investment advisory services7,773 10,875 2,941 
Borrower late fee income3,444 5,194 12,884 
Management fee revenue3,307 9,421 9,736 
Loss from ALLO voting membership interest investment(42,148)(3,565)— 
Loss from solar investments(10,132)(37,423)(2,220)
(Loss) gain on debt repurchased(6,775)1,924 136 
Other23,192 14,347 16,085 
  Other income$78,681 57,561 47,918 
Deferred Revenue Reconciliation
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
Balance as of December 31, 2018$4,413 30,556 2,551 1,602 39,122 
Deferral of revenue3,585 93,373 36,024 3,505 136,487 
Recognition of revenue(5,286)(91,855)(35,343)(3,479)(135,963)
Balance as of December 31, 20192,712 32,074 3,232 1,628 39,646 
Deferral of revenue2,490 90,183 43,596 3,209 139,478 
Recognition of revenue(3,824)(90,409)(42,903)(3,286)(140,422)
Deconsolidation of ALLO— — (3,925)— (3,925)
Business acquisition— 1,419 — — 1,419 
Balance as of December 31, 20201,378 33,267 — 1,551 36,196 
Deferral of revenue5,882 109,278 — 5,775 120,935 
Recognition of revenue(4,844)(105,801)— (5,316)(115,961)
Balance as of December 31, 2021$2,416 36,744 — 2,010 41,170 
v3.22.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Supplemental Balance Sheet Information
The following table provides supplemental balance sheet information related to leases:
As of December 31,
20212020
Operating lease ROU assets, which is included in "other assets" on the
     consolidated balance sheet
$14,314 18,301 
Operating lease liabilities, which is included in "other liabilities" on the
     consolidated balance sheet
$15,899 18,733 
Lease Expense, Cash Flow Information, Weighted Average Remaining Lease Term, and Discount Rate
The following table provides components of lease expense:
Year ended December 31,
202120202019
Rental expense, which is included in "other expenses" on the
      consolidated statements of income (a)
$9,386 11,885 11,171 
Rental expense, which is included in "cost to provide communications
      services" on the consolidated statements of income (a)
— 1,997 1,609 
Total operating rental expense$9,386 13,882 12,780 
(a) Includes short-term and variable lease costs, which are immaterial.
Weighted average remaining lease term and discount rate are shown below:
As of December 31,
20212020
Weighted average remaining lease term (years)5.155.65
Weighted average discount rate3.23 %2.43 %
Maturity of Lease Liabilities
Maturity of lease liabilities are shown below:
2022$5,816 
20234,122 
20241,757 
20251,421 
2026731 
2027 and thereafter3,702 
Total lease payments17,549 
Imputed interest(1,650)
Total$15,899 
v3.22.0.1
Stock Based Compensation Plans (Tables)
12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Restricted Stock Activity
The following table summarizes restricted stock activity:
Year ended December 31,
202120202019
Non-vested shares at beginning of year552,456 549,845 532,336 
Granted249,096 151,639 186,281 
Vested(116,842)(114,282)(109,651)
Canceled(24,544)(34,746)(59,121)
Non-vested shares at end of year660,166 552,456 549,845 
Unrecognized Compensation Costs
As of December 31, 2021, there was $23.5 million of unrecognized compensation cost included in equity on the consolidated balance sheet related to restricted stock, which is expected to be recognized as compensation expense in future periods as shown in the table below.
2022$8,795 
20235,563 
20243,615 
20252,267 
20261,355 
2027 and thereafter1,907 
$23,502 
Non-employee Directors Compensation Plan The following table provides the number of shares awarded under this plan for the years ended December 31, 2021, 2020, and 2019.
Shares issued -
not deferred
Shares issued-
deferred
Total
Year ended December 31, 20219,958 12,072 22,030 
Year ended December 31, 202012,740 16,513 29,253 
Year ended December 31, 20199,588 11,212 20,800 
v3.22.0.1
Related Parties (Tables)
12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
The Company has co-invested in Company-managed limited liability companies with related parties that invest in renewable energy (solar) (as summarized below). As part of these transactions, the Company receives management and performance fees under a management agreement.
Entity/RelationshipInvestment amountFees earned by the Company
 202120202019202120202019
F&M$7,913,000 4,600,000 2,068,868 29,491 46,154 68,869 
Assurity (Board member Thomas Henning)5,421,6591,150,000— 16,02711,538— 
Ameritas Life Insurance Corp. (Board member James Abel)5,000,000 — — 9,615 — — 
North Central Bancorp, Inc. (directly and indirectly owned by F&M, Mr. Dunlap, and Ms. Muhleisen)2,466,667 1,533,333 2,068,868 14,958 15,385 68,869 
Infovisa, Inc. (directly and indirectly owned by F&M,
Mr. Dunlap, and Ms. Muhleisen)
562,600 — — 1,923 — — 
Farm and Home Insurance Agency, Inc. (indirectly owned by Mr. Dunlap and Ms. Muhleisen)116,667 383,333 — 962 3,846 — 
v3.22.0.1
Fair Value (Tables)
12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the year ended December 31, 2021.
 As of December 31, 2021As of December 31, 2020
 Level 1Level 2TotalLevel 1Level 2Total
Assets:   
Investments (a):
FFELP loan asset-backed securities - available-for-sale$— 494,682 494,682 — 346,502 346,502 
Private education loan asset-backed debt securities - available for sale— 412,552 412,552 — — — 
Other debt securities - available for sale100 22,335 22,435 103 2,002 2,105 
Equity securities 63,154 — 63,154 10,114 — 10,114 
Equity securities measured at net asset value (b)8,832 31,927 
Total investments63,254 929,569 1,001,655 10,217 348,504 390,648 
      Total assets$63,254 929,569 1,001,655 10,217 348,504 390,648 

(a)    Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and as of December 31, 2021 and 2020, include investments traded on an active exchange and a single U.S. Treasury security. Level 2 investments include student loan asset-backed, mortgage-backed, and collateralized loan obligation securities. The fair value for the Level 2 securities is determined using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk.
(b)    In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
Fair Value, 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 December 31, 2021
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$18,576,272 17,546,645 — — 18,576,272 
Accrued loan interest receivable788,552 788,552 — 788,552 — 
Cash and cash equivalents125,563 125,563 125,563 — — 
Investments (at fair value)1,001,655 1,001,655 63,254 929,569 — 
Beneficial interest in loan securitizations 142,391 120,142 — — 142,391 
Restricted cash741,981 741,981 741,981 — — 
Restricted cash – due to customers326,645 326,645 326,645 — — 
Financial liabilities:  
Bonds and notes payable17,819,902 17,631,089 — 17,819,902 — 
Accrued interest payable4,566 4,566 — 4,566 — 
Bank deposits342,463 344,315 184,897 157,566 — 
Due to customers366,002 366,002 366,002 — — 
 As of December 31, 2020
 Fair valueCarrying valueLevel 1Level 2Level 3
Financial assets:    
Loans receivable$20,454,132 19,391,045 — — 20,454,132 
Accrued loan interest receivable794,611 794,611 — 794,611 — 
Cash and cash equivalents121,249 121,249 121,249 — — 
Investments (at fair value)390,648 390,648 10,217 348,504 — 
Beneficial interest in loan securitizations58,709 58,331 — — 58,709 
Restricted cash553,175 553,175 553,175 — — 
Restricted cash – due to customers283,971 283,971 283,971 — — 
Financial liabilities:  
Bonds and notes payable19,270,810 19,320,726 — 19,270,810 — 
Accrued interest payable28,701 28,701 — 28,701 — 
Bank deposits54,599 54,633 48,422 6,177 — 
Due to customers301,471 301,471 301,471 — — 
v3.22.0.1
Condensed Parent Company Financial Statements (Tables)
12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Parent Balance Sheets
Balance Sheets
(Parent Company Only)
As of December 31, 2021 and 2020
20212020
Assets:
Cash and cash equivalents$47,434 69,687 
Investments1,236,933 707,332 
Investment in subsidiary debt374,087 38,903 
Restricted cash107,103 93,271 
Investment in subsidiaries1,986,136 1,963,413 
Notes receivable from subsidiaries314 21,209 
Other assets123,716 115,631 
Total assets$3,875,723 3,009,446 
Liabilities:
Notes payable, net of debt issuance costs$734,881 236,317 
Other liabilities189,317 140,710 
Total liabilities924,198 377,027 
Equity:
Nelnet, Inc. shareholders' equity:
Common stock379 384 
Additional paid-in capital1,000 3,794 
Retained earnings2,940,523 2,621,762 
Accumulated other comprehensive earnings9,304 6,102 
Total Nelnet, Inc. shareholders' equity2,951,206 2,632,042 
Noncontrolling interest319 377 
Total equity2,951,525 2,632,419 
Total liabilities and shareholders' equity$3,875,723 3,009,446 
Condensed Parent Statements of Income
Statements of Income
(Parent Company Only)
Years ended December 31, 2021, 2020, and 2019
 202120202019
Investment interest income$12,455 4,110 4,925 
Interest expense on bonds and notes payable3,515 3,179 9,588 
Net interest income (expense)8,940 931 (4,663)
Other income/expense:   
Other income45,291 48,688 8,384 
(Loss) gain from debt repurchases, net(6,530)1,962 136 
Equity in subsidiaries income
313,451 132,101 182,346 
Gain from deconsolidation of ALLO— 258,588 — 
Impairment expense(4,637)(7,784)— 
Derivative market value adjustments and derivative settlements, net
71,446 (24,465)(30,789)
Total other income/expense419,021 409,090 160,077 
Operating expenses7,632 14,006 19,561 
Income before income taxes420,329 396,015 135,853 
Income tax (expense) benefit(27,101)(43,577)5,950 
Net income393,228 352,438 141,803 
Net loss attributable to noncontrolling interest
58 — 
Net income attributable to Nelnet, Inc.
$393,286 352,443 141,803 
Condensed Parent Statement of Comprehensive Income
Statements of Comprehensive Income
(Parent Company Only)
Years ended December 31, 2021, 2020, and 2019
202120202019
Net income$393,228 352,438 141,803 
Other comprehensive income (loss):
Net changes related to equity in subsidiaries other comprehensive income$6,692 — — 
Net changes related to available-for-sale securities:
Unrealized holding (losses) gains arising during period, net(4,220)6,637 (1,199)
Reclassification of gains recognized in net income, net of losses(372)(2,521)— 
Income tax effect1,102 (3,490)(986)3,130 288 (911)
Other comprehensive income (loss)3,202 3,130 (911)
Comprehensive income396,430 355,568 140,892 
Comprehensive loss attributable to noncontrolling interests58 — 
Comprehensive income attributable to Nelnet, Inc.$396,488 355,573 140,892 
Condensed Parent Statements of Cash Flows
Statements of Cash Flows
(Parent Company Only)
Years ended December 31, 2021, 2020, and 2019
202120202019
Net income attributable to Nelnet, Inc.$393,286 352,443 141,803 
Net loss attributable to noncontrolling interest(58)(5)— 
Net income393,228 352,438 141,803 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization591 534 467 
Derivative market value adjustments(92,813)28,144 76,195 
Payments to terminate derivative instruments, net— — (12,530)
Proceeds from (payments to) clearinghouse - initial and variation margin, net91,294 (26,747)(70,685)
Equity in earnings of subsidiaries(313,451)(132,101)(182,346)
Gain from deconsolidation of ALLO, including cash impact— (287,579)— 
Loss on (gain from) debt repurchases6,530 (1,962)(136)
Loss on (gain from) investments, net721 (46,019)(3,969)
Purchases of equity securities, net(42,916)— — 
Deferred income tax expense (benefit)47,423 23,747 (19,183)
Non-cash compensation expense10,673 16,739 6,781 
Impairment expense4,637 7,784 — 
Other— (329)(481)
Increase in other assets(9,108)(17,410)(10,672)
Increase in other liabilities1,784 26,009 29,384 
Net cash provided by (used in) operating activities98,593 (56,752)(45,372)
Cash flows from investing activities:
Purchases of available-for-sale securities(640,644)(342,563)— 
Proceeds from sales of available-for-sale securities133,286 168,555 — 
Capital distributions/contributions from/to subsidiaries, net294,578 99,830 449,602 
Decrease in notes receivable from subsidiaries20,895 21,343 14,421 
Purchases of subsidiary debt, net(335,184)(25,085)— 
Purchases of other investments(110,184)(54,637)(47,106)
Proceeds from other investments129,899 8,564 27,926 
Net cash (used in) provided by investing activities(507,354)(123,993)444,843 
Cash flows from financing activities:
Payments on notes payable(126,530)(20,381)(361,272)
Proceeds from issuance of notes payable619,259 190,520 60,000 
Payments of debt issuance costs(1,286)(49)(1,129)
Dividends paid(34,457)(31,778)(29,485)
Repurchases of common stock(58,111)(73,358)(40,411)
Proceeds from issuance of common stock1,465 1,653 1,552 
Acquisition of noncontrolling interest— (600)— 
Issuance of noncontrolling interest— 194,985 878 
Net cash provided by (used in) financing activities400,340 260,992 (369,867)
Net (decrease) increase in cash, cash equivalents, and restricted cash(8,421)80,247 29,604 
Cash, cash equivalents, and restricted cash, beginning of period162,958 82,711 53,107 
Cash, cash equivalents, and restricted cash, end of period$154,537 162,958 82,711 
Cash disbursements made for:
Interest$2,301 2,577 9,501 
Income taxes, net of refunds and credits$18,659 29,685 17,672 
Noncash investing activities:
(Distribution from) contribution to subsidiary, net$(835)49,066 — 
v3.22.0.1
ALLO Recapitalization - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 21, 2020
Oct. 15, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restructuring Cost and Reserve [Line Items]          
Issuance of noncontrolling interests     $ 50,716 $ 205,768 $ 4,650
Other Investments | Preferred Partnership Interest          
Restructuring Cost and Reserve [Line Items]          
Equity method investment, preferred annual return     6.25%    
ALLO          
Restructuring Cost and Reserve [Line Items]          
Issuance of noncontrolling interests   $ 160,000      
Sale of stock, percentage ownership after transaction 45.00%        
ALLO          
Restructuring Cost and Reserve [Line Items]          
Sale of stock, consideration received on transaction   $ 197,000      
SDC ALLO Holdings, LLC | ALLO          
Restructuring Cost and Reserve [Line Items]          
Sale of stock, percentage ownership after transaction 48.00%        
Members Of ALLO Management | ALLO          
Restructuring Cost and Reserve [Line Items]          
Sale of stock, percentage ownership after transaction 7.00%        
v3.22.0.1
ALLO Recapitalization - Summary of Gain as a Result of Deconsolidation (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 21, 2020
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restructuring Cost and Reserve [Line Items]          
Gain from deconsolidation of ALLO   $ 258,600 $ 0 $ 258,588 $ 0
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations | ALLO          
Restructuring Cost and Reserve [Line Items]          
Voting interest/equity method investment - recorded at fair value $ 132,960        
Preferred membership interest investment - recorded at fair value 228,530        
Cash and cash equivalents – not held at a related party (299)        
Cash and cash equivalents – held at a related party (28,692)        
Accounts receivable (4,138)        
Goodwill (21,112)        
Intangible assets (6,083)        
Property and equipment, net (245,295)        
Other assets (29,643)        
Other liabilities 24,185        
Noncontrolling interests 208,175        
Gain from deconsolidation of ALLO $ 258,588        
v3.22.0.1
ALLO Recapitalization - Impact to Operating Results as a Result of Recapitalization (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restructuring and Related Activities [Abstract]        
Gain from deconsolidation $ 258,600 $ 0 $ 258,588 $ 0
Compensation expense     (9,298)  
Obligation to SDC     (2,339)  
Total impact to operating results, deconsolidation     246,951  
Contingent consideration, liability, lower estimate     25,000  
Contingent consideration, liability, higher estimate     35,000  
Contingent consideration, liability $ 2,300   $ 2,300  
v3.22.0.1
Summary of Significant Accounting Policies and Practices - Narrative (Details)
borrower in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
borrower
Dec. 31, 2019
USD ($)
Sep. 30, 2021
Jan. 01, 2020
USD ($)
Dec. 31, 2018
USD ($)
Jan. 01, 2012
Variable Interest Entity [Line Items]                
Loans and accrued interest receivable $ 18,335,197,000 $ 18,335,197,000 $ 20,185,656,000          
Allowance for loan losses (127,113,000) (127,113,000) (175,698,000) $ (61,914,000)     $ (60,388,000)  
Retained earnings 2,940,523,000 $ 2,940,523,000 2,621,762,000          
Straight line reversion method period   2 years            
Purchased accrued interest 48,300,000 $ 48,300,000 92,300,000 112,900,000        
Goodwill impairment   $ 0 0 0        
Rebate fee on consolidation loans   1.05%            
Pre tax decrease to interest income   $ (523,835,000) $ (619,656,000) (948,677,000)        
Cumulative Effect, Period of Adoption, Adjustment                
Variable Interest Entity [Line Items]                
Allowance for loan losses       (91,014,000)     0  
Retained earnings           $ (18,900,000)    
Cumulative Effect, Period of Adoption, Adjustment | Retained earnings                
Variable Interest Entity [Line Items]                
Allowance for loan losses           $ (91,000,000)    
Private Education Loan Investment                
Variable Interest Entity [Line Items]                
Ownership percentage     8.00%          
Restricted Stock                
Variable Interest Entity [Line Items]                
Vesting period (up to)   10 years            
Private education loans - Non-Nelnet Bank                
Variable Interest Entity [Line Items]                
Loans and accrued interest receivable 284,136,000 $ 284,136,000 $ 305,882,000 231,903,000        
Allowance for loan losses $ (16,143,000) $ (16,143,000) (19,529,000) (9,597,000)     (10,838,000)  
Private education loans - Non-Nelnet Bank | Cumulative Effect, Period of Adoption, Adjustment                
Variable Interest Entity [Line Items]                
Allowance for loan losses       $ (4,797,000)     $ 0  
Private education loans - Non-Nelnet Bank | Non-federally insured student loans | Wells Fargo                
Variable Interest Entity [Line Items]                
Loans and accrued interest receivable     $ 10,000,000,000          
Number of borrowers | borrower     445,000          
Stafford Loan                
Variable Interest Entity [Line Items]                
Federally insured loans repayment period   5 years            
Stafford Loan | Federally insured loans                
Variable Interest Entity [Line Items]                
Constant prepayment rate 5.00% 5.00%            
Student Loans, PLUS                
Variable Interest Entity [Line Items]                
Federally insured loans repayment period   10 years            
Federal Family Education Loan Program (FFELP) Guaranteed Loans | Minimum                
Variable Interest Entity [Line Items]                
Federally insured loans repayment period   12 years            
Federal Family Education Loan Program (FFELP) Guaranteed Loans | Maximum                
Variable Interest Entity [Line Items]                
Federally insured loans repayment period   30 years            
Private Education Loans                
Variable Interest Entity [Line Items]                
Uninsured loans, repayment period   30 years            
Consumer Loans                
Variable Interest Entity [Line Items]                
Uninsured loans, repayment period   6 years            
Consolidation loans | Federally insured loans                
Variable Interest Entity [Line Items]                
Constant prepayment rate 4.00% 4.00%     3.00%      
Increase to net loan discount $ 6,200,000              
Pre tax decrease to interest income 6,200,000              
Held for sale                
Variable Interest Entity [Line Items]                
Loans classified as held for sale 0 $ 0 $ 0          
Beneficial interest in private education loan securitizations | Other Investments                
Variable Interest Entity [Line Items]                
Beneficial interest in securitization, interest, percent     8.00%          
Amount of loans securitized   8,700,000,000            
Whitetail Rock                
Variable Interest Entity [Line Items]                
Noncontrolling interest, ownership percentage               10.00%
Variable Interest Entity, Primary Beneficiary                
Variable Interest Entity [Line Items]                
Loans and accrued interest receivable $ 17,981,414,000 $ 17,981,414,000 $ 20,132,996,000          
Variable Interest Entity, Primary Beneficiary | ALLO Communications                
Variable Interest Entity [Line Items]                
Ownership percentage by parent 45.00% 45.00%            
Percent of operating decision voting power   43.00%            
v3.22.0.1
Summary of Significant Accounting Policies and Practices - Variable Interest Entities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract]    
Exposure syndicated to third-party investors $ 71,511 $ 15,562
Maximum exposure to loss 146,120 104,829
Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract]    
Investment carrying amount (41,030) (26,006)
Tax credits subject to recapture 111,289 101,943
Unfunded capital and other commitments 4,350 13,330
Company’s maximum exposure to loss $ 74,609 $ 89,267
ALLO Communications | Variable Interest Entity, Primary Beneficiary    
Variable Interest Entity [Line Items]    
Ownership percentage by parent 45.00%  
Percent of operating decision voting power 43.00%  
v3.22.0.1
Summary of Significant Accounting Policies and Practices - Loans Receivable (Details)
12 Months Ended
Dec. 31, 2021
Stafford Loan  
Loans and Leases Receivable Disclosure [Line Items]  
Federally insured loans repayment period 5 years
Student Loans, PLUS  
Loans and Leases Receivable Disclosure [Line Items]  
Federally insured loans repayment period 10 years
Federal Family Education Loan Program (FFELP) Guaranteed Loans | Minimum  
Loans and Leases Receivable Disclosure [Line Items]  
Federally insured loans repayment period 12 years
Federal Family Education Loan Program (FFELP) Guaranteed Loans | Maximum  
Loans and Leases Receivable Disclosure [Line Items]  
Federally insured loans repayment period 30 years
Private Education Loans  
Loans and Leases Receivable Disclosure [Line Items]  
Uninsured loans, repayment period 30 years
Consumer Loans  
Loans and Leases Receivable Disclosure [Line Items]  
Uninsured loans, repayment period 6 years
v3.22.0.1
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loans Receivable and Accrued Interest Receivable (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Accrued interest receivable $ 788,552 $ 794,611    
Loan discount, net of unamortized premiums and deferred origination costs (25,933) (9,908)    
Allowance for loan losses (127,113) (175,698) $ (61,914) $ (60,388)
Financing receivable, after allowance for credit loss 18,335,197 20,185,656    
Non-Nelnet Bank loans        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans receivable, gross 17,441,790 19,559,108    
Allowance for loan losses (126,005) (175,375)    
Federally insured loans - Non-Nelnet Bank        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans receivable, gross 17,091,047 19,129,173 20,328,543  
Accrued interest receivable 784,716 791,453 730,059  
Loan discount, net of unamortized premiums and deferred origination costs (28,309) (14,505) (35,822)  
Allowance for loan losses (103,381) (128,590) (36,763) (42,310)
Financing receivable, after allowance for credit loss 17,744,073 19,777,531 20,957,981  
Federally insured loans - Non-Nelnet Bank | Stafford and other loans        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans receivable, gross 3,904,000 4,383,000    
Federally insured loans - Non-Nelnet Bank | Consolidation loans        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans receivable, gross 13,187,047 14,746,173    
Private education loans - Non-Nelnet Bank        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans receivable, gross 299,442 320,589 244,258  
Accrued interest receivable 1,960 2,131 1,558  
Loan discount, net of unamortized premiums and deferred origination costs (1,123) 2,691 46  
Allowance for loan losses (16,143) (19,529) (9,597) (10,838)
Financing receivable, after allowance for credit loss 284,136 305,882 231,903  
Consumer loans - Non-Nelnet Bank        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans receivable, gross 51,301 109,346 225,918  
Accrued interest receivable 396 1,001 1,880  
Loan discount, net of unamortized premiums and deferred origination costs 913 1,640 740  
Allowance for loan losses (6,481) (27,256) (15,554) $ (7,240)
Financing receivable, after allowance for credit loss 46,129 84,731 212,984  
Nelnet Bank loans        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans receivable, gross 257,901 17,543    
Allowance for loan losses (1,108) (323)    
Federally insured loans - Nelnet Bank        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans receivable, gross 88,011 0    
Accrued interest receivable 1,216      
Loan discount, net of unamortized premiums and deferred origination costs 26      
Allowance for loan losses (268) 0    
Financing receivable, after allowance for credit loss 88,985      
Private education loans - Nelnet Bank        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans receivable, gross 169,890 17,543    
Accrued interest receivable 264 26    
Loan discount, net of unamortized premiums and deferred origination costs 2,560 266    
Allowance for loan losses (840) (323) $ 0  
Financing receivable, after allowance for credit loss $ 171,874 $ 17,512    
v3.22.0.1
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loans Sold and Gains Recognized (Details) - USD ($)
$ in Thousands
5 Months Ended 6 Months Ended 12 Months Ended
Sep. 29, 2021
May 14, 2021
Jul. 29, 2020
Jan. 30, 2020
Oct. 17, 2019
May 01, 2019
Sep. 29, 2021
Jul. 29, 2020
Oct. 17, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Receivables [Abstract]                        
Loans sold (par value) $ 18,390 $ 77,417 $ 60,779 $ 124,249 $ 179,301 $ 47,680 $ 95,807 $ 185,028 $ 226,981      
Gain $ 3,249 $ 15,271 $ 14,817 $ 18,206 $ 15,549 $ 1,712 $ 18,520 $ 33,023 $ 17,261 $ 18,715 $ 33,023 $ 17,261
Residual interest received in securitization 6.90% 24.50% 25.40% 31.40% 28.70% 11.00%            
v3.22.0.1
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Balance at beginning of period $ 175,698 $ 61,914 $ 60,388
(Negative provision) provision for loan losses (12,426) 63,360 39,000
Charge-offs (28,742) (28,729) (28,010)
Recoveries 1,545 1,763 1,536
Initial allowance on loans purchased with credit deterioration 3,273 15,800 0
Loan sales (12,235) (29,424) (11,000)
Balance at end of period 127,113 175,698 61,914
Par value of loans purchased with deteriorated credit quality 224,100 835,000  
Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Balance at beginning of period   91,014 0
Balance at end of period     91,014
Federally insured loans - Non-Nelnet Bank      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Balance at beginning of period 128,590 36,763 42,310
(Negative provision) provision for loan losses (7,343) 18,691 8,000
Charge-offs (21,139) (14,955) (13,547)
Recoveries 0 0 0
Initial allowance on loans purchased with credit deterioration 3,273 15,800 0
Loan sales 0 0 0
Balance at end of period 103,381 128,590 36,763
Federally insured loans - Non-Nelnet Bank | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Balance at beginning of period   72,291 0
Balance at end of period     72,291
Private education loans - Non-Nelnet Bank      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Balance at beginning of period 19,529 9,597 10,838
(Negative provision) provision for loan losses (1,333) 6,156 0
Charge-offs (2,476) (1,652) (1,965)
Recoveries 721 631 724
Initial allowance on loans purchased with credit deterioration 0 0 0
Loan sales (298) 0 0
Balance at end of period 16,143 19,529 9,597
Private education loans - Non-Nelnet Bank | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Balance at beginning of period   4,797 0
Balance at end of period     4,797
Consumer loans - Non-Nelnet Bank      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Balance at beginning of period 27,256 15,554 7,240
(Negative provision) provision for loan losses (4,544) 38,183 31,000
Charge-offs (5,123) (12,115) (12,498)
Recoveries 824 1,132 812
Initial allowance on loans purchased with credit deterioration 0 0 0
Loan sales (11,932) (29,424) (11,000)
Balance at end of period 6,481 27,256 15,554
Consumer loans - Non-Nelnet Bank | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Balance at beginning of period   13,926 0
Balance at end of period     13,926
Federally insured loans - Nelnet Bank      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Balance at beginning of period 0    
(Negative provision) provision for loan losses 268    
Charge-offs 0    
Recoveries 0    
Initial allowance on loans purchased with credit deterioration 0    
Loan sales 0    
Balance at end of period 268 0  
Private education loans - Nelnet Bank      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Balance at beginning of period 323 0  
(Negative provision) provision for loan losses 526 330  
Charge-offs (4) (7)  
Recoveries 0 0  
Initial allowance on loans purchased with credit deterioration 0 0  
Loan sales (5) 0  
Balance at end of period $ 840 $ 323 $ 0
v3.22.0.1
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loan Status and Delinquencies (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Loans in repayment status:        
Accrued interest receivable $ 788,552 $ 794,611    
Loan premium (discount) (25,933) (9,908)    
Allowance for loan losses (127,113) (175,698) $ (61,914) $ (60,388)
Financing receivable, after allowance for credit loss 18,335,197 20,185,656    
Federally insured loans - Non-Nelnet Bank        
Financing Receivable, Recorded Investment [Line Items]        
Loans in-school/grace/deferment $ 829,624 $ 1,036,028 $ 1,074,678  
Loans in grace and deferment, percent 4.90% 5.40% 5.30%  
Loans in forbearance $ 1,118,667 $ 1,973,175 $ 1,339,821  
Loans in forbearance, percent 6.50% 10.30% 6.60%  
Loans in repayment status:        
Loans receivable, gross $ 17,091,047 $ 19,129,173 $ 20,328,543  
Total loans in repayment $ 15,142,756 $ 16,119,970 $ 17,914,044  
Loans in repayment, percent 88.60% 84.30% 88.10%  
Total loans in repayment, percentage 100.00% 100.00% 100.00%  
Total loans, percent 100.00% 100.00% 100.00%  
Accrued interest receivable $ 784,716 $ 791,453 $ 730,059  
Loan premium (discount) (28,309) (14,505) (35,822)  
Non-accretable discount 0 0 (28,036)  
Allowance for loan losses (103,381) (128,590) (36,763) (42,310)
Financing receivable, after allowance for credit loss 17,744,073 19,777,531 20,957,981  
Federally insured loans - Non-Nelnet Bank | Loans current        
Loans in repayment status:        
Loans receivable, gross $ 12,847,685 $ 13,683,054 $ 15,410,993  
Loans current, percentage 84.90% 84.90% 86.00%  
Federally insured loans - Non-Nelnet Bank | Loans delinquent 31-60 days        
Loans in repayment status:        
Loans receivable, gross $ 895,656 $ 633,411 $ 650,796  
Loans past due, percentage 5.90% 3.90% 3.60%  
Federally insured loans - Non-Nelnet Bank | Loans delinquent 61-90 days        
Loans in repayment status:        
Loans receivable, gross $ 352,449 $ 307,936 $ 428,879  
Loans past due, percentage 2.30% 1.90% 2.40%  
Federally insured loans - Non-Nelnet Bank | Loans delinquent 91-120 days        
Loans in repayment status:        
Loans receivable, gross $ 251,075 $ 800,257 $ 310,851  
Loans past due, percentage 1.70% 5.00% 1.70%  
Federally insured loans - Non-Nelnet Bank | Loans delinquent 121-270 days        
Loans in repayment status:        
Loans receivable, gross $ 592,449 $ 674,975 $ 812,107  
Loans past due, percentage 3.90% 4.20% 4.50%  
Federally insured loans - Non-Nelnet Bank | Loans delinquent 271 days or greater        
Loans in repayment status:        
Loans receivable, gross $ 203,442 $ 20,337 $ 300,418  
Loans past due, percentage 1.30% 0.10% 1.80%  
Private education loans - Non-Nelnet Bank        
Financing Receivable, Recorded Investment [Line Items]        
Loans in-school/grace/deferment $ 9,661 $ 5,049 $ 4,493  
Loans in grace and deferment, percent 3.20% 1.60% 1.80%  
Loans in forbearance $ 3,601 $ 2,359 $ 3,108  
Loans in forbearance, percent 1.20% 0.70% 1.30%  
Loans in repayment status:        
Loans receivable, gross $ 299,442 $ 320,589 $ 244,258  
Total loans in repayment $ 286,180 $ 313,181 $ 236,657  
Loans in repayment, percent 95.60% 97.70% 96.90%  
Total loans in repayment, percentage 100.00% 100.00% 100.00%  
Total loans, percent 100.00% 100.00% 100.00%  
Accrued interest receivable $ 1,960 $ 2,131 $ 1,558  
Loan premium (discount) (1,123) 2,691 46  
Non-accretable discount 0 0 (4,362)  
Allowance for loan losses (16,143) (19,529) (9,597) (10,838)
Financing receivable, after allowance for credit loss 284,136 305,882 231,903  
Private education loans - Non-Nelnet Bank | Loans current        
Loans in repayment status:        
Loans receivable, gross $ 280,457 $ 310,036 $ 227,013  
Loans current, percentage 98.00% 99.00% 95.90%  
Private education loans - Non-Nelnet Bank | Loans delinquent 31-60 days        
Loans in repayment status:        
Loans receivable, gross $ 2,403 $ 1,099 $ 2,814  
Loans past due, percentage 0.80% 0.40% 1.20%  
Private education loans - Non-Nelnet Bank | Loans delinquent 61-90 days        
Loans in repayment status:        
Loans receivable, gross $ 976 $ 675 $ 1,694  
Loans past due, percentage 0.30% 0.20% 0.70%  
Private education loans - Non-Nelnet Bank | Loans delinquent 91 days or greater        
Loans in repayment status:        
Loans receivable, gross $ 2,344 $ 1,371 $ 5,136  
Loans past due, percentage 0.90% 0.40% 2.20%  
Consumer loans - Non-Nelnet Bank        
Financing Receivable, Recorded Investment [Line Items]        
Loans in-school/grace/deferment $ 43 $ 829 $ 0  
Loans in grace and deferment, percent 0.10% 0.80%    
Loans in repayment status:        
Loans receivable, gross $ 51,301 $ 109,346 225,918  
Total loans in repayment $ 51,258 $ 108,517 $ 225,918  
Loans in repayment, percent 99.90% 99.20%    
Total loans in repayment, percentage 100.00% 100.00% 100.00%  
Total loans, percent 100.00% 100.00%    
Accrued interest receivable $ 396 $ 1,001 $ 1,880  
Loan premium (discount) 913 1,640 740  
Allowance for loan losses (6,481) (27,256) (15,554) $ (7,240)
Financing receivable, after allowance for credit loss 46,129 84,731 212,984  
Consumer loans - Non-Nelnet Bank | Loans current        
Loans in repayment status:        
Loans receivable, gross $ 49,697 $ 105,650 $ 220,404  
Loans current, percentage 97.00% 97.40% 97.50%  
Consumer loans - Non-Nelnet Bank | Loans delinquent 31-60 days        
Loans in repayment status:        
Loans receivable, gross $ 414 $ 954 $ 2,046  
Loans past due, percentage 0.80% 0.90% 0.90%  
Consumer loans - Non-Nelnet Bank | Loans delinquent 61-90 days        
Loans in repayment status:        
Loans receivable, gross $ 322 $ 804 $ 1,545  
Loans past due, percentage 0.60% 0.70% 0.70%  
Consumer loans - Non-Nelnet Bank | Loans delinquent 91 days or greater        
Loans in repayment status:        
Loans receivable, gross $ 825 $ 1,109 $ 1,923  
Loans past due, percentage 1.60% 1.00% 0.90%  
Federally insured loans - Nelnet Bank        
Financing Receivable, Recorded Investment [Line Items]        
Loans in-school/grace/deferment $ 330      
Loans in grace and deferment, percent 0.40%      
Loans in forbearance $ 1,057      
Loans in forbearance, percent 1.20%      
Loans in repayment status:        
Loans receivable, gross $ 88,011 $ 0    
Total loans in repayment $ 86,624      
Loans in repayment, percent 98.40%      
Total loans in repayment, percentage 100.00%      
Total loans, percent 100.00%      
Accrued interest receivable $ 1,216      
Loan premium (discount) 26      
Allowance for loan losses (268) 0    
Financing receivable, after allowance for credit loss 88,985      
Federally insured loans - Nelnet Bank | Loans current        
Loans in repayment status:        
Loans receivable, gross $ 85,599      
Loans current, percentage 98.80%      
Federally insured loans - Nelnet Bank | Loans delinquent 31-60 days        
Loans in repayment status:        
Loans receivable, gross $ 816      
Loans past due, percentage 1.00%      
Federally insured loans - Nelnet Bank | Loans delinquent 61-90 days        
Loans in repayment status:        
Loans receivable, gross $ 0      
Loans past due, percentage 0.00%      
Federally insured loans - Nelnet Bank | Loans delinquent 91-120 days        
Loans in repayment status:        
Loans receivable, gross $ 0      
Loans past due, percentage 0.00%      
Federally insured loans - Nelnet Bank | Loans delinquent 121-270 days        
Loans in repayment status:        
Loans receivable, gross $ 209      
Loans past due, percentage 0.20%      
Federally insured loans - Nelnet Bank | Loans delinquent 271 days or greater        
Loans in repayment status:        
Loans receivable, gross $ 0      
Loans past due, percentage 0.00%      
Private education loans - Nelnet Bank        
Financing Receivable, Recorded Investment [Line Items]        
Loans in-school/grace/deferment $ 150 $ 0    
Loans in grace and deferment, percent 0.10% 0.00%    
Loans in forbearance $ 460 $ 29    
Loans in forbearance, percent 0.30% 0.20%    
Loans in repayment status:        
Loans receivable, gross $ 169,890 $ 17,543    
Total loans in repayment $ 169,280 $ 17,514    
Loans in repayment, percent 99.60% 99.80%    
Total loans in repayment, percentage 100.00% 100.00%    
Total loans, percent 100.00% 100.00%    
Accrued interest receivable $ 264 $ 26    
Loan premium (discount) 2,560 266    
Allowance for loan losses (840) (323) $ 0  
Financing receivable, after allowance for credit loss 171,874 17,512    
Private education loans - Nelnet Bank | Loans current        
Loans in repayment status:        
Loans receivable, gross $ 169,157 $ 17,514    
Loans current, percentage 99.90% 100.00%    
Private education loans - Nelnet Bank | Loans delinquent 31-60 days        
Loans in repayment status:        
Loans receivable, gross $ 51 $ 0    
Loans past due, percentage 0.00% 0.00%    
Private education loans - Nelnet Bank | Loans delinquent 61-90 days        
Loans in repayment status:        
Loans receivable, gross $ 0 $ 0    
Loans past due, percentage 0.00% 0.00%    
Private education loans - Nelnet Bank | Loans delinquent 91 days or greater        
Loans in repayment status:        
Loans receivable, gross $ 72 $ 0    
Loans past due, percentage 0.10% 0.00%    
v3.22.0.1
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loans by Year of Origination (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Financing Receivable, Credit Quality Indicator [Line Items]        
Accrued interest receivable $ 788,552 $ 794,611    
Loan premium (discount) (25,933) (9,908)    
Allowance for loan losses (127,113) (175,698) $ (61,914) $ (60,388)
Financing receivable, after allowance for credit loss 18,335,197 20,185,656    
Private education loans - Non-Nelnet Bank        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 5,034      
2020 71,391      
2019 55,094      
2018 539      
2017 0      
Prior years 167,384      
Total loans 299,442 320,589 244,258  
Accrued interest receivable 1,960 2,131 1,558  
Loan premium (discount) (1,123) 2,691 46  
Allowance for loan losses (16,143) (19,529) (9,597) (10,838)
Financing receivable, after allowance for credit loss 284,136 305,882 231,903  
Private education loans - Non-Nelnet Bank | Loans current        
Financing Receivable, Credit Quality Indicator [Line Items]        
Total loans 280,457 310,036 227,013  
Private education loans - Non-Nelnet Bank | Loans delinquent 31-60 days        
Financing Receivable, Credit Quality Indicator [Line Items]        
Total loans 2,403 1,099 2,814  
Private education loans - Non-Nelnet Bank | Loans delinquent 61-90 days        
Financing Receivable, Credit Quality Indicator [Line Items]        
Total loans 976 675 1,694  
Private education loans - Non-Nelnet Bank | Loans delinquent 91 days or greater        
Financing Receivable, Credit Quality Indicator [Line Items]        
Total loans 2,344 1,371 5,136  
Private education loans - Non-Nelnet Bank | Loans in school/grace/deferment        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 2,266      
2020 1,981      
2019 3,557      
2018 0      
2017 0      
Prior years 1,857      
Total loans 9,661      
Private education loans - Non-Nelnet Bank | Loans in forbearance        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 0      
2020 267      
2019 960      
2018 47      
2017 0      
Prior years 2,327      
Total loans 3,601      
Private education loans - Non-Nelnet Bank | Loans in repayment status:        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 2,768      
2020 69,143      
2019 50,577      
2018 492      
2017 0      
Prior years 163,200      
Total loans 286,180      
Private education loans - Non-Nelnet Bank | Loans in repayment status: | Loans current        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 2,768      
2020 68,754      
2019 50,348      
2018 492      
2017 0      
Prior years 158,095      
Total loans 280,457      
Private education loans - Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 31-60 days        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 0      
2020 308      
2019 225      
2018 0      
2017 0      
Prior years 1,870      
Total loans 2,403      
Private education loans - Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 61-90 days        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 0      
2020 81      
2019 0      
2018 0      
2017 0      
Prior years 895      
Total loans 976      
Private education loans - Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 91 days or greater        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 0      
2020 0      
2019 4      
2018 0      
2017 0      
Prior years 2,340      
Total loans 2,344      
Consumer loans - Non-Nelnet Bank        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 38,298      
2020 1,094      
2019 5,577      
2018 6,245      
2017 87      
Prior years 0      
Total loans 51,301 109,346 225,918  
Accrued interest receivable 396 1,001 1,880  
Loan premium (discount) 913 1,640 740  
Allowance for loan losses (6,481) (27,256) (15,554) $ (7,240)
Financing receivable, after allowance for credit loss 46,129 84,731 212,984  
Consumer loans - Non-Nelnet Bank | Loans current        
Financing Receivable, Credit Quality Indicator [Line Items]        
Total loans 49,697 105,650 220,404  
Consumer loans - Non-Nelnet Bank | Loans delinquent 31-60 days        
Financing Receivable, Credit Quality Indicator [Line Items]        
Total loans 414 954 2,046  
Consumer loans - Non-Nelnet Bank | Loans delinquent 61-90 days        
Financing Receivable, Credit Quality Indicator [Line Items]        
Total loans 322 804 1,545  
Consumer loans - Non-Nelnet Bank | Loans delinquent 91 days or greater        
Financing Receivable, Credit Quality Indicator [Line Items]        
Total loans 825 1,109 1,923  
Consumer loans - Non-Nelnet Bank | Loans in school/grace/deferment        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 25      
2020 0      
2019 0      
2018 18      
2017 0      
Prior years 0      
Total loans 43      
Consumer loans - Non-Nelnet Bank | Loans in repayment status:        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 38,273      
2020 1,094      
2019 5,577      
2018 6,227      
2017 87      
Prior years 0      
Total loans 51,258      
Consumer loans - Non-Nelnet Bank | Loans in repayment status: | Loans current        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 37,822      
2020 960      
2019 5,087      
2018 5,746      
2017 82      
Prior years 0      
Total loans 49,697      
Consumer loans - Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 31-60 days        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 205      
2020 51      
2019 120      
2018 33      
2017 5      
Prior years 0      
Total loans 414      
Consumer loans - Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 61-90 days        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 113      
2020 40      
2019 109      
2018 60      
2017 0      
Prior years 0      
Total loans 322      
Consumer loans - Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 91 days or greater        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 133      
2020 43      
2019 261      
2018 388      
2017 0      
Prior years 0      
Total loans 825      
Private education loans - Nelnet Bank        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 159,204      
2020 10,686      
2019 0      
2018 0      
2017 0      
Prior years 0      
Total loans 169,890 17,543    
Accrued interest receivable 264 26    
Loan premium (discount) 2,560 266    
Deferred origination costs 2,560      
Allowance for loan losses (840) (323) $ 0  
Financing receivable, after allowance for credit loss 171,874 17,512    
Private education loans - Nelnet Bank | Loans current        
Financing Receivable, Credit Quality Indicator [Line Items]        
Total loans 169,157 17,514    
Private education loans - Nelnet Bank | Loans delinquent 31-60 days        
Financing Receivable, Credit Quality Indicator [Line Items]        
Total loans 51 0    
Private education loans - Nelnet Bank | Loans delinquent 61-90 days        
Financing Receivable, Credit Quality Indicator [Line Items]        
Total loans 0 0    
Private education loans - Nelnet Bank | Loans delinquent 91 days or greater        
Financing Receivable, Credit Quality Indicator [Line Items]        
Total loans 72 $ 0    
Private education loans - Nelnet Bank | Loans in school/grace/deferment        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 150      
2020 0      
2019 0      
2018 0      
2017 0      
Prior years 0      
Total loans 150      
Private education loans - Nelnet Bank | Loans in forbearance        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 445      
2020 15      
2019 0      
2018 0      
2017 0      
Prior years 0      
Total loans 460      
Private education loans - Nelnet Bank | Loans in repayment status:        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 158,609      
2020 10,671      
2019 0      
2018 0      
2017 0      
Prior years 0      
Total loans 169,280      
Private education loans - Nelnet Bank | Loans in repayment status: | Loans current        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 158,486      
2020 10,671      
2019 0      
2018 0      
2017 0      
Prior years 0      
Total loans 169,157      
Private education loans - Nelnet Bank | Loans in repayment status: | Loans delinquent 31-60 days        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 51      
2020 0      
2019 0      
2018 0      
2017 0      
Prior years 0      
Total loans 51      
Private education loans - Nelnet Bank | Loans in repayment status: | Loans delinquent 61-90 days        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 0      
2020 0      
2019 0      
2018 0      
2017 0      
Prior years 0      
Total loans 0      
Private education loans - Nelnet Bank | Loans in repayment status: | Loans delinquent 91 days or greater        
Financing Receivable, Credit Quality Indicator [Line Items]        
2021 72      
2020 0      
2019 0      
2018 0      
2017 0      
Prior years 0      
Total loans $ 72      
v3.22.0.1
Bonds and Notes Payable - Outstanding Debt Obligations (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 17,824,087 $ 19,558,849
Discount on bonds and notes payable and debt issuance costs (192,998) (238,123)
Issue price 17,631,089 19,320,726
Unsecured line of credit    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 0 $ 120,000
Interest rate 0.00% 1.65%
Participation agreement    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 253,969 $ 118,558
Interest rate 0.78% 0.84%
Repurchase agreements    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 483,848  
Secured line of credit    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 5,000 $ 5,000
Interest rate 1.91% 1.90%
Federally insured | Bonds and notes based on indices    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 15,887,295 $ 17,127,643
Federally insured | Bonds and notes based on auction    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 248,550 749,925
Federally insured | Variable-rate bonds and notes    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 16,135,845 17,877,568
Federally insured | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 772,935 923,076
Federally insured | Warehouse facilities    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 5,048 252,165
Private education | Variable-rate bonds and notes    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 31,818 49,025
Private education | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Bonds and notes payable, gross 28,613 37,251
Private education | Warehouse facilities    
Debt Instrument [Line Items]    
Bonds and notes payable, gross $ 107,011 $ 150,397
Interest rate 0.24% 0.28%
Consumer Loan | Warehouse facilities    
Debt Instrument [Line Items]    
Bonds and notes payable, gross   $ 25,809
Interest rate   0.28%
Minimum | Repurchase agreements    
Debt Instrument [Line Items]    
Interest rate 0.66%  
Minimum | Federally insured | Bonds and notes based on indices    
Debt Instrument [Line Items]    
Interest rate 0.23% 0.28%
Minimum | Federally insured | Bonds and notes based on auction    
Debt Instrument [Line Items]    
Interest rate 0.00% 1.12%
Minimum | Federally insured | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 1.42% 1.42%
Minimum | Federally insured | Warehouse facilities    
Debt Instrument [Line Items]    
Interest rate 0.21% 0.27%
Minimum | Private education | Variable-rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 1.65% 1.65%
Minimum | Private education | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 3.60% 3.60%
Maximum | Repurchase agreements    
Debt Instrument [Line Items]    
Interest rate 1.46%  
Maximum | Federally insured | Bonds and notes based on indices    
Debt Instrument [Line Items]    
Interest rate 2.10% 2.05%
Maximum | Federally insured | Bonds and notes based on auction    
Debt Instrument [Line Items]    
Interest rate 1.09% 2.14%
Maximum | Federally insured | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 3.45% 3.45%
Maximum | Federally insured | Warehouse facilities    
Debt Instrument [Line Items]    
Interest rate   0.31%
Maximum | Private education | Variable-rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 1.85% 1.90%
Maximum | Private education | Fixed rate bonds and notes    
Debt Instrument [Line Items]    
Interest rate 5.35% 5.35%
v3.22.0.1
Bonds and Notes Payable - Narrative (Details) - USD ($)
3 Months Ended 12 Months Ended
May 03, 2021
Mar. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]          
Other borrowing agreement, termination notice period     5 days    
Other borrowings, maximum     $ 400,000,000    
Repurchase agreements, contractual maturity adjustment, written notice period 180 days        
Repurchase agreements, amount collateralized by private education loan asset-backed securities     208,100,000    
Additional repurchase agreement, amount collateralized by private education loan asset-backed securities     275,800,000    
Decrease in interest on bonds, notes payable, and bank deposits   $ 23,800,000      
Payments to extinguish debt     0 $ 0 $ 14,030,000
Union Bank and Trust Company          
Debt Instrument [Line Items]          
Amount of participation, student loan asset-backed securities     254,000,000 $ 118,600,000  
Asset backed securitizations          
Debt Instrument [Line Items]          
Amount of debt extinguished         1,050,000,000.00
Payments to extinguish debt         14,000,000
Write off of debt issuance costs         2,700,000
Loss on extinguishment of debt         $ 16,700,000
Warehouse facilities | Federally insured student loans | NFSLW-I Warehouse          
Debt Instrument [Line Items]          
Maximum financing amount     60,000,000    
Amount outstanding     5,000,000    
Amount available     55,000,000    
Advanced as equity support     $ 300,000    
Warehouse facilities | Minimum | Federally insured student loans          
Debt Instrument [Line Items]          
Interest rate     0.21% 0.27%  
Warehouse facilities | Maximum | Federally insured student loans          
Debt Instrument [Line Items]          
Interest rate       0.31%  
Private Loan Warehouse Facility | Warehouse facilities          
Debt Instrument [Line Items]          
Maximum financing amount     $ 175,000,000    
Amount outstanding     107,000,000    
Amount available     68,000,000    
Advanced as equity support     $ 11,800,000    
Private Loan Warehouse Facility | Warehouse facilities | Minimum          
Debt Instrument [Line Items]          
Advance rate     80.00%    
Private Loan Warehouse Facility | Warehouse facilities | Maximum          
Debt Instrument [Line Items]          
Advance rate     90.00%    
Consumer loan warehouse facility | Warehouse facilities          
Debt Instrument [Line Items]          
Maximum financing amount       $ 100,000,000  
Unsecured Line of Credit          
Debt Instrument [Line Items]          
Interest rate     1.50%    
Unsecured Line of Credit | Line of Credit          
Debt Instrument [Line Items]          
Amount outstanding     $ 0    
Amount available     $ 495,000,000    
Unsecured Line of Credit | Minimum          
Debt Instrument [Line Items]          
Cost of funds     1.00%    
Unsecured Line of Credit | Maximum          
Debt Instrument [Line Items]          
Cost of funds     2.00%    
Unsecured Line of Credit | Unsecured line of credit | Line of Credit          
Debt Instrument [Line Items]          
Maximum financing amount     $ 495,000,000    
Higher borrowing capacity option     $ 737,500,000    
v3.22.0.1
Bonds and Notes Payable - Asset-Backed Securitizations Transactions (Details) - USD ($)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Issue price $ 17,631,089,000 $ 19,320,726,000
Asset-Backed Securities Underlying Class B 2020-4 Subordinated Debt    
Debt Instrument [Line Items]    
Loans classified as held for sale 5,000,000  
Asset-Backed Securities Underlying Class B 2020-5 Subordinated Debt    
Debt Instrument [Line Items]    
Loans classified as held for sale 7,500,000  
Asset-backed Securities, Securitized Loans and Receivables    
Debt Instrument [Line Items]    
Loans classified as held for sale 381,200,000  
Secured line of credit | 2020 Notes    
Debt Instrument [Line Items]    
Total principal amount   1,546,600,000
Secured line of credit | Notes 2020-1    
Debt Instrument [Line Items]    
Total principal amount 797,000,000 435,600,000
Secured line of credit | 2020-2 Notes    
Debt Instrument [Line Items]    
Total principal amount   272,100,000
Secured line of credit | 2020-3 Notes    
Debt Instrument [Line Items]    
Total principal amount   352,600,000
Secured line of credit | 2020-4 Notes    
Debt Instrument [Line Items]    
Total principal amount   191,300,000
Secured line of credit | 2020-5 Notes    
Debt Instrument [Line Items]    
Total principal amount   295,000,000
Secured line of credit | NSLT 2021-2    
Debt Instrument [Line Items]    
Total principal amount 531,300,000  
Secured line of credit | 2021 Notes    
Debt Instrument [Line Items]    
Total principal amount 1,328,300,000  
Senior notes | Class A 2021-1 Notes    
Debt Instrument [Line Items]    
Total principal amount $ 781,000,000  
Senior notes | Class A 2021-1 Notes | London Interbank Offered Rate (LIBOR)    
Debt Instrument [Line Items]    
Cost of funds 0.50%  
Senior notes | Class A Senior Notes NSLT 2021-2 Notes    
Debt Instrument [Line Items]    
Total principal amount $ 520,600,000  
Senior notes | Class A Senior Notes NSLT 2021-2 Notes | London Interbank Offered Rate (LIBOR)    
Debt Instrument [Line Items]    
Cost of funds 0.50%  
Senior notes | Class A Notes 2021    
Debt Instrument [Line Items]    
Total principal amount $ 1,301,600,000  
Senior notes | 2020 Notes    
Debt Instrument [Line Items]    
Total principal amount   1,518,800,000
Bond discount   (1,566,000)
Issue price   1,517,234,000
Senior notes | Class A 2020-1 Notes    
Debt Instrument [Line Items]    
Total principal amount   424,600,000
Bond discount   0
Issue price   $ 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)
Issue price   $ 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)
Issue price   $ 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 | Class A 2020-4 Notes    
Debt Instrument [Line Items]    
Total principal amount   $ 191,300,000
Bond discount   (19,000)
Issue price   $ 191,281,000
Cost of funds   1.42%
Senior notes | Class A Notes 2020-5    
Debt Instrument [Line Items]    
Total principal amount   $ 295,000,000
Bond discount   0
Issue price   $ 295,000,000
Senior notes | Class A Notes 2020-5 | London Interbank Offered Rate (LIBOR)    
Debt Instrument [Line Items]    
Cost of funds   0.88%
Subordinated notes | Class B 2021-1 Notes    
Debt Instrument [Line Items]    
Total principal amount $ 16,000,000  
Subordinated notes | Class B 2021-1 Notes | London Interbank Offered Rate (LIBOR)    
Debt Instrument [Line Items]    
Cost of funds 1.25%  
Subordinated notes | Class B Subordinated NSLT 2021-2 Notes    
Debt Instrument [Line Items]    
Total principal amount $ 10,700,000  
Subordinated notes | Class B Subordinated NSLT 2021-2 Notes | London Interbank Offered Rate (LIBOR)    
Debt Instrument [Line Items]    
Cost of funds   1.20%
Subordinated notes | Class B Notes 2021    
Debt Instrument [Line Items]    
Total principal amount $ 26,700,000  
Subordinated notes | Class B 2020 Notes    
Debt Instrument [Line Items]    
Total principal amount   $ 27,800,000
Bond discount   (858,000)
Issue price   26,942,000
Subordinated notes | Class B 2020-1 Notes    
Debt Instrument [Line Items]    
Total principal amount   11,000,000
Bond discount   0
Issue price   $ 11,000,000
Subordinated notes | Class B 2020-1 Notes | London Interbank Offered Rate (LIBOR)    
Debt Instrument [Line Items]    
Cost of funds   1.75%
Subordinated notes | Class B 2020-2 Notes    
Debt Instrument [Line Items]    
Total principal amount   $ 7,800,000
Bond discount   (574,000)
Issue price   $ 7,226,000
Cost of funds   2.50%
Subordinated notes | Class B 2020-3 Notes    
Debt Instrument [Line Items]    
Total principal amount   $ 9,000,000
Bond discount   (284,000)
Issue price   $ 8,716,000
Subordinated notes | Class B 2020-3 Notes | London Interbank Offered Rate (LIBOR)    
Debt Instrument [Line Items]    
Cost of funds   1.90%
v3.22.0.1
Bonds and Notes Payable - Long-term Debt Maturities (Details) - Debt and Capital Lease Obligations, Gross
$ in Thousands
Dec. 31, 2021
USD ($)
Debt Instrument [Line Items]  
2022 $ 439,328
2023 415,547
2024 0
2025 28,116
2026 0
2027 and thereafter 16,941,096
Bonds and notes payable $ 17,824,087
v3.22.0.1
Bonds and Notes Payable - Debt Repurchased (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Disclosure [Abstract]      
Purchase price $ (407,487) $ (25,643) $ (39,864)
Par value 406,875 27,605 40,000
Remaining debt discount and unamortized cost of issuance (6,163) (38) 0
Impairment expense and provision for beneficial interests, net $ (6,775) $ 1,924 $ 136
v3.22.0.1
Derivative Financial Instruments - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Loans and accrued interest receivable $ 18,335,197 $ 20,185,656
1:3 basis swaps | London Interbank Offered Rate (LIBOR)    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Variable interest rate spread 0.091% 0.091%
Interest Rate Swap | Interest rate swaps - floor income hedges    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Student loan assets, fixed floor income $ 7,200,000 $ 8,400,000
One-month LIBOR, Daily reset | 1:3 basis swaps | Asset Generation and Management    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Loans and accrued interest receivable 15,900,000  
Three-month commercial paper rate | 1:3 basis swaps | Asset Generation and Management    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Loans and accrued interest receivable 600,000  
Three-month treasury bill, Daily reset | 1:3 basis swaps | Asset Generation and Management    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Loans and accrued interest receivable 500,000  
Three-month LIBOR, Quarterly reset | 1:3 basis swaps | Asset Generation and Management    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Bonds and notes payable 5,400,000  
One-month LIBOR, Monthly reset | 1:3 basis swaps | Asset Generation and Management    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Bonds and notes payable $ 10,500,000  
v3.22.0.1
Derivative Financial Instruments - Outstanding Basis Swap (Details) - 1:3 basis swaps - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Derivative [Line Items]    
Notional amount $ 5,900,000,000 $ 6,150,000,000
2021    
Derivative [Line Items]    
Notional amount 0 250,000,000
2022    
Derivative [Line Items]    
Notional amount 2,000,000,000 2,000,000,000
2023    
Derivative [Line Items]    
Notional amount 750,000,000 750,000,000
2024    
Derivative [Line Items]    
Notional amount 1,750,000,000 1,750,000,000
2026    
Derivative [Line Items]    
Notional amount 1,150,000,000 1,150,000,000
2027    
Derivative [Line Items]    
Notional amount $ 250,000,000 $ 250,000,000
v3.22.0.1
Derivative Financial Instruments - Interest Rate Swaps, Floor Income Hedge (Details) - Interest rate swaps - floor income hedges - Interest Rate Swap - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Derivative [Line Items]    
Notional amount $ 5,000,000,000 $ 4,500,000,000
Weighted average fixed rate paid by the Company 0.55% 0.70%
Maturity 2021    
Derivative [Line Items]    
Notional amount $ 0 $ 600,000,000
Weighted average fixed rate paid by the Company 0.00% 2.15%
Maturity 2022    
Derivative [Line Items]    
Notional amount $ 500,000,000 $ 500,000,000
Weighted average fixed rate paid by the Company 0.94% 0.94%
Maturity 2023    
Derivative [Line Items]    
Notional amount $ 900,000,000 $ 900,000,000
Weighted average fixed rate paid by the Company 0.62% 0.62%
Maturity 2024    
Derivative [Line Items]    
Notional amount $ 2,500,000,000 $ 2,000,000,000
Weighted average fixed rate paid by the Company 0.35% 0.32%
Maturity 2025    
Derivative [Line Items]    
Notional amount $ 500,000,000 $ 500,000,000
Weighted average fixed rate paid by the Company 0.35% 0.35%
Maturity 2026    
Derivative [Line Items]    
Notional amount $ 500,000,000 $ 0
Weighted average fixed rate paid by the Company 1.02% 0.00%
Maturity 2031    
Derivative [Line Items]    
Notional amount $ 100,000,000 $ 0
Weighted average fixed rate paid by the Company 1.53% 0.00%
v3.22.0.1
Derivative Financial Instruments - Derivative Impact on Statement of Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative settlements, net $ (21,367) $ 3,679 $ 45,406
Derivative market value adjustments and derivative settlements, net      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative settlements, net (21,367) 3,679 45,406
Change in fair value 92,813 (28,144) (76,195)
Derivative market value adjustments and derivative settlements, net - income (expense) 71,446 (24,465) (30,789)
1:3 basis swaps | Derivative market value adjustments and derivative settlements, net      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative settlements, net (1,638) 10,378 5,214
Change in fair value 5,027 (7,462) 1,515
Interest rate swaps - floor income hedges | Derivative market value adjustments and derivative settlements, net      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative settlements, net (19,729) (6,699) 40,192
Change in fair value 87,786 (20,682) (77,027)
Other | Derivative market value adjustments and derivative settlements, net      
Derivative Instruments, Gain (Loss) [Line Items]      
Change in fair value $ 0 $ 0 $ (683)
v3.22.0.1
Investments - Narrative (Details)
borrower in Thousands, $ in Thousands
1 Months Ended 3 Months Ended 12 Months Ended
May 20, 2020
USD ($)
May 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
borrower
Mar. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
borrower
Dec. 31, 2019
USD ($)
Summary of Investment Holdings [Line Items]                  
Loans receivable     $ 18,335,197   $ 20,185,656   $ 18,335,197 $ 20,185,656  
Cash distributions from portion of loans securitized             191,821 $ 13,011 $ 63,879
Bonds issued to cover risk retention policy on loans with beneficial securitization     412,600       $ 412,600    
Retention period after investment securitization             2 years    
Debt covenant, percent of principle balance debt issue required before liquidation             0.33    
Impairment loss equity security             $ 4,600    
Private Education Loan Investment                  
Summary of Investment Holdings [Line Items]                  
Equity method investment, ownership percentage         8.00%     8.00%  
Equity method investments             71,100    
Pre-tax income (loss) from equity investments     37,900       (5,000)    
Cash distributions from portion of loans securitized             52,100    
Equity method investments, securitized             51,900    
Equity method investments     37,900       37,900    
Hudl                  
Summary of Investment Holdings [Line Items]                  
Equity method investments $ 26,000 $ 5,000              
Consumer loans                  
Summary of Investment Holdings [Line Items]                  
Impairment charges on investments           $ 26,300      
Allowance for credit losses, decrease during period       $ 2,400 $ 9,700        
Venture capital and funds:                  
Summary of Investment Holdings [Line Items]                  
Impairment charges on investments           $ 7,800      
Other Investments | Beneficial interest in private education loan securitizations                  
Summary of Investment Holdings [Line Items]                  
Beneficial interest in securitization, interest, percent         8.00%     8.00%  
Amount of loans securitized             8,700,000    
Other Investments | Venture capital and funds:                  
Summary of Investment Holdings [Line Items]                  
Equity method investments     (67,840)   $ (14,912)   (67,840) $ (14,912)  
Private education loans - Non-Nelnet Bank                  
Summary of Investment Holdings [Line Items]                  
Loans receivable     $ 284,136   305,882   $ 284,136 305,882 $ 231,903
Private education loans - Non-Nelnet Bank | Non-federally insured student loans | Wells Fargo                  
Summary of Investment Holdings [Line Items]                  
Loans receivable         $ 10,000,000     $ 10,000,000  
Number of borrowers | borrower         445,000     445,000  
v3.22.0.1
Investments - Schedule of Investments (Details) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended 12 Months Ended
May 20, 2020
May 31, 2021
Dec. 31, 2021
Jun. 30, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
May 26, 2021
Jan. 19, 2021
Equity securities                  
Amortized cost     $ 60,153   $ 60,153 $ 36,227      
Gross unrealized gains     13,930   13,930 8,768      
Gross unrealized losses     (2,097)   (2,097) (2,954)      
Equity securities     71,986   71,986 42,041      
Total investments (at fair value)                  
Amortized cost     977,565   977,565 376,805      
Gross unrealized gains     29,147   29,147 16,810      
Gross unrealized losses     (5,057)   (5,057) (2,967)      
Fair value     1,001,655   1,001,655 390,648      
Other Investments (not measured at fair value):                  
Other debt securities - held-to-maturity     8,200   8,200 0      
Beneficial interest in consumer loan securitizations, allowance for credit losses     4,449   4,449        
Total investments (not measured at fair value)     587,264   587,264 602,292      
Total investments     1,588,919   1,588,919 992,940      
Debt securities, held-to-maturity, maturing in the next year     3,500   3,500        
Debt securities, held-to-maturity, maturing in one to five years     4,700   4,700        
Private education loan asset-backed securities subject to repurchase agreements with third-parties     400,000   400,000        
Loss from ALLO voting membership interest investment         (42,148) (3,565) $ 0    
Equity securities, realized gain         8,427 386 0    
Net loss attributable to noncontrolling interests         7,003 2,817 $ 509    
FFELP loan asset-backed securities - available-for-sale                  
Investments (at fair value):                  
Amortized cost     480,691   480,691 338,475      
Gross unrealized gains     14,710   14,710 8,040      
Gross unrealized losses     (719)   (719) (13)      
Fair value     494,682   $ 494,682 346,502      
Other Investments (not measured at fair value):                  
Debt securities, available-for-sale, stated maturity period (greater than)         10 years        
Debt securities, available-for-sale, maturing in the next 10 years     77,900   $ 77,900        
Debt securities, available-for-sale, maturing in the next year     25,200   25,200        
Debt securities, available-for-sale, maturing in one to five years     32,100   32,100        
Debt securities, available-for-sale, maturing in six to ten years     20,600   20,600        
Private education loan asset-backed debt securities - available for sale                  
Investments (at fair value):                  
Amortized cost     414,286   414,286 0      
Gross unrealized gains     507   507 0      
Gross unrealized losses     (2,241)   (2,241) 0      
Fair value     412,552   $ 412,552 0      
Other Investments (not measured at fair value):                  
Debt securities, available-for-sale, stated maturity period (greater than)         10 years        
Other debt securities - available for sale                  
Investments (at fair value):                  
Amortized cost     22,435   $ 22,435 2,103      
Gross unrealized gains     0   0 2      
Gross unrealized losses     0   0 0      
Fair value     22,435   22,435 2,105      
Hudl                  
Other Investments (not measured at fair value):                  
Additional equity investment $ 26,000 $ 5,000              
Hudl                  
Other Investments (not measured at fair value):                  
Ownership percentage               20.00%  
ALLO                  
Other Investments (not measured at fair value):                  
Redemption price payment if debt financing obtained                 $ 100,000
Union Bank and Trust Company                  
Other Investments (not measured at fair value):                  
Amount of participation, student loan asset-backed securities     254,000   254,000 118,600      
Minimum                  
Other Investments (not measured at fair value):                  
Gain on equity investment     10,300            
Venture capital and funds: | Other Investments                  
Other Investments (not measured at fair value):                  
Measurement alternative     157,609   157,609 144,795      
Equity method     67,840   67,840 14,912      
Total investments (not measured at fair value)     225,449   225,449 159,707      
Venture capital and funds: | Other Investments | Hudl                  
Other Investments (not measured at fair value):                  
Measurement alternative     133,900   133,900        
Gain (loss) on equity security       $ 51,000          
Venture capital and funds: | Other Investments | CompanyCam Inc.                  
Other Investments (not measured at fair value):                  
Measurement alternative     11,500   11,500        
Real estate | Other Investments                  
Other Investments (not measured at fair value):                  
Equity method     47,226   47,226 50,291      
Notes receivable     0   0 847      
Total investments (not measured at fair value)     47,226   47,226 51,138      
Partnership Interest | Other Investments                  
Other Investments (not measured at fair value):                  
Equity method     87,247   87,247 129,396      
Preferred membership interest and accrued and unpaid preferred return     137,342   137,342 228,916      
Total investments (not measured at fair value)     224,589   224,589 358,312      
Loss from ALLO voting membership interest investment         (42,100) (3,600)      
Partnership Interest | Other Investments | ALLO                  
Other Investments (not measured at fair value):                  
Preferred membership interest and accrued and unpaid preferred return     137,300   137,300        
Equity method investment, accrued and unpaid preferred return     7,700   7,700        
Solar                  
Other Investments (not measured at fair value):                  
Amount funded or committed to fund     227,900   227,900        
Amount funded or committed to fund by partners     59,200   59,200        
Equity method investment, amount committed to fund     22,300   22,300        
Equity method investment, amount committed to fund by partners     17,900   17,900        
Pre-tax loss from equity investment         10,100 37,400      
Net loss attributable to noncontrolling interests         $ 7,100 3,800      
Solar | Minimum                  
Other Investments (not measured at fair value):                  
Unrecognized tax benefits, resulting from prior period tax positions, period         5 years        
Solar | Maximum                  
Other Investments (not measured at fair value):                  
Unrecognized tax benefits, resulting from prior period tax positions, period         6 years        
Solar | Other Investments                  
Other Investments (not measured at fair value):                  
Total investments (not measured at fair value)     (42,457)   $ (42,457) (30,373)      
Beneficial interest in private education loan securitizations | Other Investments                  
Other Investments (not measured at fair value):                  
Beneficial interest in securitizations     66,008   66,008 0      
Loans corresponding to beneficial interest     688,000   688,000        
Consumer loans | Other Investments                  
Other Investments (not measured at fair value):                  
Beneficial interest in securitizations     28,366   28,366 27,954      
Loans corresponding to beneficial interest     195,000   195,000        
Beneficial interest in federally insured loan securitizations | Other Investments                  
Other Investments (not measured at fair value):                  
Beneficial interest in securitizations     25,768   25,768 30,377      
Loans corresponding to beneficial interest     445,000   445,000        
Tax liens and affordable housing | Other Investments                  
Other Investments (not measured at fair value):                  
Total investments (not measured at fair value)     $ 4,115   $ 4,115 5,177      
Preferred Partnership Interest | Other Investments                  
Other Investments (not measured at fair value):                  
Equity method investment, preferred annual return     6.25%   6.25%        
Equity securities, realized gain         $ 8,400 $ 400      
v3.22.0.1
Business Combination - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2019
Business Acquisition [Line Items]      
Goodwill $ 142,092 $ 142,092 $ 156,912
HigherSchool Publishing Company      
Business Acquisition [Line Items]      
Percentage of voting interests acquired 100.00%    
Payment to acquire business $ 24,700    
Acquired intangible assets 24,200    
Goodwill 6,292    
Customer Relationships | HigherSchool Publishing Company      
Business Acquisition [Line Items]      
Acquired intangible assets $ 24,200    
Acquired intangible asset useful life 10 years    
v3.22.0.1
Business Combination - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]      
Excess cost over fair value of net assets acquired (goodwill) $ 142,092 $ 142,092 $ 156,912
HigherSchool Publishing Company      
Business Acquisition [Line Items]      
Cash and cash equivalents   7  
Accounts receivable   5,711  
Intangible assets   24,200  
Excess cost over fair value of net assets acquired (goodwill)   6,292  
Other liabilities   (11,510)  
Net assets acquired   $ 24,700  
v3.22.0.1
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Intangible asset useful life 96 months  
Finite lived intangible assets $ 52,029 $ 75,070
Customer Relationships    
Finite-Lived Intangible Assets [Line Items]    
Intangible asset useful life 103 months  
Finite lived intangible assets $ 47,894 66,974
Accumulated amortization $ 97,398 83,419
Computer Software    
Finite-Lived Intangible Assets [Line Items]    
Intangible asset useful life 24 months  
Finite lived intangible assets $ 4,135 6,430
Accumulated amortization $ 3,669 4,127
Trade Names    
Finite-Lived Intangible Assets [Line Items]    
Intangible asset useful life 0 months  
Finite lived intangible assets $ 0 1,666
Accumulated amortization   $ 3,455
v3.22.0.1
Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization of intangible assets $ 23.0 $ 30.8 $ 32.8
v3.22.0.1
Intangible Assets - Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
2022 $ 9,939  
2023 9,830  
2024 7,457  
2025 4,644  
2026 4,517  
2027 and thereafter 15,642  
Finite lived intangible assets, net $ 52,029 $ 75,070
v3.22.0.1
Goodwill - Schedule of Goodwill (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2020
USD ($)
Goodwill [Roll Forward]  
Goodwill, beginning balance $ 156,912
Goodwill acquired 6,292
Deconsolidation of ALLO (21,112)
Goodwill, ending balance 142,092
Corporate and Other Activities  
Goodwill [Roll Forward]  
Goodwill, beginning balance 0
Goodwill acquired 0
Deconsolidation of ALLO 0
Goodwill, ending balance 0
Loan Servicing and Systems | Operating Segments  
Goodwill [Roll Forward]  
Goodwill, beginning balance 23,639
Goodwill acquired 0
Deconsolidation of ALLO 0
Goodwill, ending balance 23,639
Education Technology, Services, and Payment Processing | Operating Segments  
Goodwill [Roll Forward]  
Goodwill, beginning balance 70,278
Goodwill acquired 6,292
Deconsolidation of ALLO 0
Goodwill, ending balance 76,570
Communications | Operating Segments  
Goodwill [Roll Forward]  
Goodwill, beginning balance 21,112
Goodwill acquired 0
Deconsolidation of ALLO (21,112)
Goodwill, ending balance 0
Asset Generation and Management | Operating Segments  
Goodwill [Roll Forward]  
Goodwill, beginning balance 41,883
Goodwill acquired 0
Deconsolidation of ALLO 0
Goodwill, ending balance 41,883
Nelnet Bank | Operating Segments  
Goodwill [Roll Forward]  
Goodwill, beginning balance 0
Goodwill acquired 0
Deconsolidation of ALLO 0
Goodwill, ending balance $ 0
v3.22.0.1
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Property and plant gross $ 326,519 $ 283,152
Accumulated depreciation (207,106) (159,625)
Property and equipment, net 119,413 123,527
Computer equipment and software    
Property, Plant and Equipment [Line Items]    
Property and plant gross $ 234,222 172,664
Computer equipment and software | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 1 year  
Computer equipment and software | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 5 years  
Building and building improvements    
Property, Plant and Equipment [Line Items]    
Property and plant gross $ 48,782 52,444
Building and building improvements | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 5 years  
Building and building improvements | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 48 years  
Office furniture and equipment    
Property, Plant and Equipment [Line Items]    
Property and plant gross $ 22,463 21,899
Office furniture and equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 1 year  
Office furniture and equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 10 years  
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and plant gross $ 10,537 9,168
Leasehold improvements | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 1 year  
Leasehold improvements | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 15 years  
Transportation equipment    
Property, Plant and Equipment [Line Items]    
Property and plant gross $ 4,857 4,857
Transportation equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Useful life 5 years  
Transportation equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Useful life 10 years  
Land    
Property, Plant and Equipment [Line Items]    
Property and plant gross $ 3,266 3,642
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property and plant gross $ 2,392 $ 18,478
v3.22.0.1
Property and Equipment - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Impaired Long-Lived Assets Held and Used [Line Items]        
Depreciation expense   $ 50.7 $ 87.9 $ 72.3
Impairment charge $ 14.2      
Corporate and Other Activities        
Impaired Long-Lived Assets Held and Used [Line Items]        
Impairment charge 1.0      
Loan Servicing and Systems        
Impaired Long-Lived Assets Held and Used [Line Items]        
Impairment charge $ 13.2      
v3.22.0.1
Shareholders' Equity - Narrative (Details)
12 Months Ended
Dec. 31, 2021
vote
shares
Class of Stock [Line Items]  
Repurchase shares authorized (in shares) | shares 5,000,000
Remaining number of shares authorized to be repurchased (in shares) | shares 2,600,000
Class B  
Class of Stock [Line Items]  
Votes per common share (in votes) | vote 10
Class A  
Class of Stock [Line Items]  
Votes per common share (in votes) | vote 1
v3.22.0.1
Shareholders' Equity - Stock Repurchases (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Equity [Abstract]      
Total shares repurchased (in shares) 713,274 1,594,394 726,273
Purchase price $ 58,111 $ 73,358 $ 40,411
Average price of shares repurchased (in dollars per share) $ 81.47 $ 46.01 $ 55.64
v3.22.0.1
Earnings per Common Share - Basic and Diluted Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Net income attributable to Nelnet, Inc., basic $ 393,286 $ 352,443 $ 141,803
Net income attributable to Nelnet, Inc., diluted $ 393,286 $ 352,443 $ 141,803
Weighted-average common shares outstanding - basic (in shares) 38,572,801 39,059,588 40,047,402
Weighted-average common shares outstanding - diluted (in shares) 38,572,801 39,059,588 40,047,402
Net income attributable to Nelnet, Inc. shareholders - basic (in dollars per share) $ 10.20 $ 9.02 $ 3.54
Net income attributable to Nelnet, Inc. shareholders - diluted (in dollars per share) $ 10.20 $ 9.02 $ 3.54
Common shareholders      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Net income attributable to Nelnet, Inc., basic $ 386,865 $ 347,451 $ 139,946
Net income attributable to Nelnet, Inc., diluted $ 386,865 $ 347,451 $ 139,946
Weighted-average common shares outstanding - basic (in shares) 37,943,032 38,506,351 39,523,082
Weighted-average common shares outstanding - diluted (in shares) 37,943,032 38,506,351 39,523,082
Net income attributable to Nelnet, Inc. shareholders - basic (in dollars per share) $ 10.20 $ 9.02 $ 3.54
Net income attributable to Nelnet, Inc. shareholders - diluted (in dollars per share) $ 10.20 $ 9.02  
Unvested restricted stock shareholders      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Net income attributable to Nelnet, Inc., basic $ 6,421 $ 4,992 $ 1,857
Net income attributable to Nelnet, Inc., diluted $ 6,421 $ 4,992 $ 1,857
Weighted-average common shares outstanding - basic (in shares) 629,769 553,237 524,320
Weighted-average common shares outstanding - diluted (in shares) 629,769 553,237 524,320
Net income attributable to Nelnet, Inc. shareholders - basic (in dollars per share) $ 10.20 $ 9.02 $ 3.54
Net income attributable to Nelnet, Inc. shareholders - diluted (in dollars per share) $ 10.20 $ 9.02  
v3.22.0.1
Earnings per Common Share - Narrative (Details)
Dec. 31, 2021
shares
Shares Issued - Deferred  
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]  
Non employee director stock, cumulative deferred shares (in shares) 221,996
v3.22.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Contingency [Line Items]      
Unrecognized tax benefits $ 19,678 $ 20,318 $ 20,148
Tax benefits which would favorable affect effective tax rate 15,600    
Anticipated uncertain tax position adjustment 7,200    
Income tax penalties and interest accrued 5,100 5,400  
Income taxes receivable 8,100 $ 21,500  
Other Assets      
Income Tax Contingency [Line Items]      
Net deferred tax assets 27,300    
Other Liabilities      
Income Tax Contingency [Line Items]      
Net deferred tax liabilities 117,900    
Favorably affect the effective tax rate      
Income Tax Contingency [Line Items]      
Anticipated uncertain tax position adjustment $ 5,700    
v3.22.0.1
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Gross balance - beginning of year $ 20,318 $ 20,148
Additions based on tax positions of prior years 271 634
Additions based on tax positions related to the current year 2,388 2,523
Reductions for tax positions of prior years (1,002) (69)
Reductions due to lapse of applicable statutes of limitations (2,297) (2,918)
Gross balance - end of year $ 19,678 $ 20,318
v3.22.0.1
Income Taxes - Provision for Income Tax Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current:      
Federal $ 55,239 $ 82,832 $ 38,931
State 4,792 9,815 3,546
Foreign 169 239 239
Total current provision 60,200 92,886 42,716
Deferred:      
Federal 46,145 7,269 (4,280)
State 9,647 718 (2,922)
Foreign (170) (13) (63)
Total deferred provision 55,622 7,974 (7,265)
Provision for income tax expense $ 115,822 $ 100,860 $ 35,451
v3.22.0.1
Income Taxes - Effective Income Tax Rate Reconciliation (Details)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Tax expense at federal rate 21.00% 21.00% 21.00%
Increase (decrease) resulting from:      
State tax, net of federal income tax benefit 3.00% 2.80% 2.50%
Tax credits (0.80%) (1.10%) (3.00%)
Provision for uncertain federal and state tax matters (0.10%) (0.20%) (0.70%)
Other (0.30%) (0.20%) 0.20%
Effective tax rate 22.80% 22.30% 20.00%
v3.22.0.1
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets:    
Deferred revenue $ 21,593 $ 18,081
Student loans 19,776 26,894
Accrued expenses 10,712 10,661
State tax credit carryforwards 8,546 5,987
Stock compensation 4,027 2,546
Lease liability 3,685 4,123
Net operating losses 2,410 647
Basis in certain derivative contracts 0 5,061
Securitizations 0 694
Total gross deferred tax assets 70,749 74,694
Less state tax valuation allowance (2,084) (569)
Net deferred tax assets 68,665 74,125
Deferred tax liabilities:    
Partnership basis 100,428 64,023
Basis in certain derivative contracts 15,927 0
Depreciation 15,264 14,092
Debt and equity investments 12,859 20,538
Loan origination services 4,930 5,040
Intangible assets 4,772 7,703
Lease right of use asset 3,317 4,037
Securitization 128 0
Other 1,665 661
Total gross deferred tax liabilities 159,290 116,094
Net deferred tax asset (liability) $ (90,625) $ (41,969)
v3.22.0.1
Segment Reporting - Narrative (Details)
12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Income tax allocation to segments, percent 24.00%
v3.22.0.1
Segment Reporting - Reportable Operating Segments Reconciled to Consolidated Financial Statements (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]        
Total interest income   $ 523,835 $ 619,656 $ 948,677
Interest expense   176,233 330,071 699,327
Net interest income   347,602 289,585 249,350
Less (negative provision) provision for loan losses   (12,426) 63,360 39,000
Net interest income after provision for loan losses   360,028 226,225 210,350
Other income/expense:        
Intersegment revenue   0 0 0
Other   78,681 57,561 47,918
Gain on sale of loans   18,715 33,023 17,261
Gain from deconsolidation of ALLO $ 258,600 0 258,588 0
Impairment expense and provision for beneficial interests, net   (16,360) (24,723) 0
Derivative settlements, net   (21,367) 3,679 45,406
Derivative market value adjustments, net   92,813 (28,144) (76,195)
Total other income/expense   977,079 1,110,384 831,245
Cost of services:        
Cost of services   108,660 105,018 102,026
Operating expenses:        
Salaries and benefits   507,132 501,832 463,503
Depreciation and amortization   73,741 118,699 105,049
Other expenses   145,469 160,574 194,272
Intersegment expenses, net   0 0 0
Total operating expenses   726,342 781,105 762,824
Income before income taxes   502,105 450,486 176,745
Income tax benefit (expense)   (115,822) (100,860) (35,451)
Net income   386,283 349,626 141,294
Net loss attributable to noncontrolling interests   7,003 2,817 509
Net income attributable to Nelnet, Inc.   393,286 352,443 141,803
Total assets 22,646,160 21,678,041 22,646,160 23,708,970
Operating Segments | Loan Servicing and Systems        
Segment Reporting Information [Line Items]        
Total interest income   137 436 2,031
Interest expense   94 121 115
Net interest income   43 315 1,916
Less (negative provision) provision for loan losses   0 0 0
Net interest income after provision for loan losses   43 315 1,916
Other income/expense:        
Intersegment revenue   33,956 36,520 46,751
Other   3,307 9,421 9,736
Gain on sale of loans   0 0 0
Gain from deconsolidation of ALLO   0 0 0
Impairment expense and provision for beneficial interests, net   (13,243) 0 0
Derivative settlements, net   0 0 0
Derivative market value adjustments, net   0 0 0
Total other income/expense   510,383 497,502 511,742
Cost of services:        
Cost of services   0 0 0
Operating expenses:        
Salaries and benefits   297,406 285,526 276,136
Depreciation and amortization   25,649 37,610 34,755
Other expenses   52,720 57,420 71,064
Intersegment expenses, net   72,206 63,886 54,325
Total operating expenses   447,981 444,442 436,280
Income before income taxes   62,445 53,375 77,378
Income tax benefit (expense)   (14,987) (12,810) (18,571)
Net income   47,458 40,565 58,807
Net loss attributable to noncontrolling interests   0 0 0
Net income attributable to Nelnet, Inc.   47,458 40,565 58,807
Total assets 190,297 296,618 190,297 290,311
Operating Segments | Education Technology, Services, and Payment Processing        
Segment Reporting Information [Line Items]        
Total interest income   1,075 3,036 9,244
Interest expense   0 54 46
Net interest income   1,075 2,982 9,198
Less (negative provision) provision for loan losses   0 0 0
Net interest income after provision for loan losses   1,075 2,982 9,198
Other income/expense:        
Intersegment revenue   12 20 0
Other   0 373 259
Gain on sale of loans   0 0 0
Gain from deconsolidation of ALLO   0 0 0
Impairment expense and provision for beneficial interests, net   0 0 0
Derivative settlements, net   0 0 0
Derivative market value adjustments, net   0 0 0
Total other income/expense   338,246 282,589 277,590
Cost of services:        
Cost of services   108,660 82,206 81,603
Operating expenses:        
Salaries and benefits   112,046 98,847 94,666
Depreciation and amortization   11,404 9,459 12,820
Other expenses   19,318 14,566 22,027
Intersegment expenses, net   15,180 14,293 13,405
Total operating expenses   157,948 137,165 142,918
Income before income taxes   72,713 66,200 62,267
Income tax benefit (expense)   (17,451) (15,888) (14,944)
Net income   55,262 50,312 47,323
Net loss attributable to noncontrolling interests   0 0 0
Net income attributable to Nelnet, Inc.   55,262 50,312 47,323
Total assets 436,702 443,788 436,702 506,382
Operating Segments | Communications        
Segment Reporting Information [Line Items]        
Total interest income   0 2 3
Interest expense   0 0 0
Net interest income   0 2 3
Less (negative provision) provision for loan losses   0 0 0
Net interest income after provision for loan losses   0 2 3
Other income/expense:        
Intersegment revenue   0 0 0
Other   0 1,561  
Gain on sale of loans   0 0 0
Gain from deconsolidation of ALLO   0 0 0
Impairment expense and provision for beneficial interests, net   0 0 0
Derivative settlements, net   0 0 0
Derivative market value adjustments, net   0 0 0
Total other income/expense   0 78,204 65,778
Cost of services:        
Cost of services   0 22,812 20,423
Operating expenses:        
Salaries and benefits   0 30,935 21,004
Depreciation and amortization   0 42,588 37,173
Other expenses   0 13,327 15,165
Intersegment expenses, net   0 1,732 2,962
Total operating expenses   0 88,582 76,304
Income before income taxes   0 (33,188) (30,946)
Income tax benefit (expense)   0 7,965 7,427
Net income   0 (25,223) (23,519)
Net loss attributable to noncontrolling interests   0 0 0
Net income attributable to Nelnet, Inc.   0 (25,223) (23,519)
Total assets 0 0 0 303,347
Operating Segments | Asset Generation and Management        
Segment Reporting Information [Line Items]        
Total interest income   506,901 611,474 931,963
Interest expense   172,918 328,157 693,375
Net interest income   333,983 283,317 238,588
Less (negative provision) provision for loan losses   (13,220) 63,029 39,000
Net interest income after provision for loan losses   347,203 220,288 199,588
Other income/expense:        
Intersegment revenue   0 0 0
Other   34,306 7,189 13,088
Gain on sale of loans   18,715 33,023 17,261
Gain from deconsolidation of ALLO   0 0 0
Impairment expense and provision for beneficial interests, net   2,436 (16,607) 0
Derivative settlements, net   (21,367) 3,679 45,406
Derivative market value adjustments, net   92,813 (28,144) (76,195)
Total other income/expense   126,903 (860) (440)
Cost of services:        
Cost of services   0 0 0
Operating expenses:        
Salaries and benefits   2,135 1,747 1,545
Depreciation and amortization   0 0 0
Other expenses   13,487 15,806 34,445
Intersegment expenses, net   34,868 39,172 47,362
Total operating expenses   50,490 56,725 83,352
Income before income taxes   423,616 162,703 115,796
Income tax benefit (expense)   (101,668) (39,049) (27,792)
Net income   321,948 123,654 88,004
Net loss attributable to noncontrolling interests   0 0 0
Net income attributable to Nelnet, Inc.   321,948 123,654 88,004
Total assets 20,773,968 18,965,371 20,773,968 22,128,917
Operating Segments | Nelnet Bank        
Segment Reporting Information [Line Items]        
Total interest income   7,721 414 0
Interest expense   1,507 41 0
Net interest income   6,214 373 0
Less (negative provision) provision for loan losses   794 330 0
Net interest income after provision for loan losses   5,420 43 0
Other income/expense:        
Intersegment revenue   0 0 0
Other   713 48 0
Gain on sale of loans   0 0 0
Gain from deconsolidation of ALLO   0 0 0
Impairment expense and provision for beneficial interests, net   0 0 0
Derivative settlements, net   0 0 0
Derivative market value adjustments, net   0 0 0
Total other income/expense   713 48 0
Cost of services:        
Cost of services   0 0 0
Operating expenses:        
Salaries and benefits   5,042 36 0
Depreciation and amortization   0 0 0
Other expenses   1,776 135 0
Intersegment expenses, net   107 0 0
Total operating expenses   6,925 171 0
Income before income taxes   (792) (80) 0
Income tax benefit (expense)   175 20 0
Net income   (617) (60) 0
Net loss attributable to noncontrolling interests   0 0 0
Net income attributable to Nelnet, Inc.   (617) (60) 0
Total assets 216,937 535,948 216,937 0
Corporate and Other Activities        
Segment Reporting Information [Line Items]        
Total interest income   9,801 5,775 9,232
Interest expense   3,515 3,178 9,587
Net interest income   6,286 2,597 (355)
Less (negative provision) provision for loan losses   0 0 0
Net interest income after provision for loan losses   6,286 2,597 (355)
Other income/expense:        
Intersegment revenue   0 0 0
Other   40,356 38,969 23,327
Gain on sale of loans   0 0 0
Gain from deconsolidation of ALLO   0 258,588 0
Impairment expense and provision for beneficial interests, net   (5,553) (8,116) 0
Derivative settlements, net   0 0 0
Derivative market value adjustments, net   0 0 0
Total other income/expense   34,803 289,441 23,327
Cost of services:        
Cost of services   0 0 0
Operating expenses:        
Salaries and benefits   90,502 84,741 70,152
Depreciation and amortization   36,682 29,043 20,300
Other expenses   58,173 59,320 51,571
Intersegment expenses, net   (88,393) (82,543) (71,303)
Total operating expenses   96,964 90,561 70,720
Income before income taxes   (55,875) 201,477 (47,748)
Income tax benefit (expense)   18,109 (41,098) 18,428
Net income   (37,766) 160,379 (29,320)
Net loss attributable to noncontrolling interests   7,003 2,817 509
Net income attributable to Nelnet, Inc.   (30,763) 163,196 (28,811)
Total assets 1,225,790 1,963,032 1,225,790 627,897
Eliminations        
Segment Reporting Information [Line Items]        
Total interest income   (1,800) (1,480) (3,796)
Interest expense   (1,800) (1,480) (3,796)
Net interest income   0 0 0
Less (negative provision) provision for loan losses   0 0 0
Net interest income after provision for loan losses   0 0 0
Other income/expense:        
Intersegment revenue   (33,968) (36,540) (46,751)
Other   0 0 0
Gain on sale of loans   0 0 0
Gain from deconsolidation of ALLO   0 0 0
Impairment expense and provision for beneficial interests, net   0 0 0
Derivative settlements, net   0 0 0
Derivative market value adjustments, net   0 0 0
Total other income/expense   (33,968) (36,540) (46,751)
Cost of services:        
Cost of services   0 0 0
Operating expenses:        
Salaries and benefits   0 0 0
Depreciation and amortization   0 0 0
Other expenses   0 0 0
Intersegment expenses, net   (33,968) (36,540) (46,751)
Total operating expenses   (33,968) (36,540) (46,751)
Income before income taxes   0 0 0
Income tax benefit (expense)   0 0 0
Net income   0 0 0
Net loss attributable to noncontrolling interests   0 0 0
Net income attributable to Nelnet, Inc.   0 0 0
Total assets $ (197,534) (526,716) (197,534) (147,884)
Loan servicing and systems        
Other income/expense:        
Revenue   486,363 451,561 455,255
Loan servicing and systems | Operating Segments | Loan Servicing and Systems        
Other income/expense:        
Revenue   486,363 451,561 455,255
Loan servicing and systems | Operating Segments | Education Technology, Services, and Payment Processing        
Other income/expense:        
Revenue   0 0 0
Loan servicing and systems | Operating Segments | Communications        
Other income/expense:        
Revenue   0 0 0
Loan servicing and systems | Operating Segments | Asset Generation and Management        
Other income/expense:        
Revenue   0 0 0
Loan servicing and systems | Operating Segments | Nelnet Bank        
Other income/expense:        
Revenue   0 0 0
Loan servicing and systems | Corporate and Other Activities        
Other income/expense:        
Revenue   0 0 0
Loan servicing and systems | Eliminations        
Other income/expense:        
Revenue   0 0 0
Education technology, services, and payment processing revenue        
Other income/expense:        
Revenue   338,234 282,196 277,331
Cost of services:        
Cost of services   108,660 82,206 81,603
Education technology, services, and payment processing revenue | Operating Segments | Loan Servicing and Systems        
Other income/expense:        
Revenue   0 0 0
Cost of services:        
Cost of services   0 0 0
Education technology, services, and payment processing revenue | Operating Segments | Education Technology, Services, and Payment Processing        
Other income/expense:        
Revenue   338,234 282,196 277,331
Cost of services:        
Cost of services   108,660 82,206 81,603
Education technology, services, and payment processing revenue | Operating Segments | Communications        
Other income/expense:        
Revenue   0 0 0
Cost of services:        
Cost of services   0 0 0
Education technology, services, and payment processing revenue | Operating Segments | Asset Generation and Management        
Other income/expense:        
Revenue   0 0 0
Cost of services:        
Cost of services   0 0 0
Education technology, services, and payment processing revenue | Operating Segments | Nelnet Bank        
Other income/expense:        
Revenue   0 0 0
Cost of services:        
Cost of services   0 0 0
Education technology, services, and payment processing revenue | Corporate and Other Activities        
Other income/expense:        
Revenue   0 0 0
Cost of services:        
Cost of services   0 0 0
Education technology, services, and payment processing revenue | Eliminations        
Other income/expense:        
Revenue   0 0 0
Cost of services:        
Cost of services   0 0 0
Communications services        
Other income/expense:        
Revenue   0 76,643 64,269
Cost of services:        
Cost of services   0 22,812 20,423
Communications services | Operating Segments | Loan Servicing and Systems        
Other income/expense:        
Revenue   0 0 0
Cost of services:        
Cost of services   0 0 0
Communications services | Operating Segments | Education Technology, Services, and Payment Processing        
Other income/expense:        
Revenue   0 0 0
Cost of services:        
Cost of services   0 0 0
Communications services | Operating Segments | Communications        
Other income/expense:        
Revenue   0 76,643 64,269
Other       1,509
Cost of services:        
Cost of services   0 22,812 20,423
Communications services | Operating Segments | Asset Generation and Management        
Other income/expense:        
Revenue   0 0 0
Cost of services:        
Cost of services   0 0 0
Communications services | Operating Segments | Nelnet Bank        
Other income/expense:        
Revenue   0 0 0
Cost of services:        
Cost of services   0 0 0
Communications services | Corporate and Other Activities        
Other income/expense:        
Revenue   0 0 0
Cost of services:        
Cost of services   0 0 0
Communications services | Eliminations        
Other income/expense:        
Revenue   0 0 0
Cost of services:        
Cost of services   $ 0 $ 0 $ 0
v3.22.0.1
Disaggregated Revenue and Deferred Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Communications revenue      
Disaggregation of Revenue [Line Items]      
Revenue   $ 76,643 $ 64,269
Residential revenue      
Disaggregation of Revenue [Line Items]      
Revenue   58,029 48,344
Business revenue      
Disaggregation of Revenue [Line Items]      
Revenue   18,038 15,689
Other      
Disaggregation of Revenue [Line Items]      
Revenue   576 236
Loan servicing and systems revenue      
Disaggregation of Revenue [Line Items]      
Revenue $ 486,363 451,561 455,255
Government servicing - Nelnet      
Disaggregation of Revenue [Line Items]      
Revenue 167,579 146,798 157,991
Government servicing - Great Lakes      
Disaggregation of Revenue [Line Items]      
Revenue 193,214 179,872 185,656
Private education and consumer loan servicing      
Disaggregation of Revenue [Line Items]      
Revenue 47,302 32,492 36,788
FFELP servicing      
Disaggregation of Revenue [Line Items]      
Revenue 18,281 20,183 25,043
Software services      
Disaggregation of Revenue [Line Items]      
Revenue 34,600 41,999 41,077
Outsourced services and other      
Disaggregation of Revenue [Line Items]      
Revenue 25,387 30,217 8,700
Education technology, services, and payment processing revenue      
Disaggregation of Revenue [Line Items]      
Revenue 338,234 282,196 277,331
Tuition payment plan services      
Disaggregation of Revenue [Line Items]      
Revenue 103,970 100,674 106,682
Payment processing      
Disaggregation of Revenue [Line Items]      
Revenue 127,080 114,304 110,848
Education technology and services      
Disaggregation of Revenue [Line Items]      
Revenue 105,186 65,885 58,578
Other      
Disaggregation of Revenue [Line Items]      
Revenue $ 1,998 1,333 1,223
Communications revenue      
Disaggregation of Revenue [Line Items]      
Revenue   76,643 64,269
Internet      
Disaggregation of Revenue [Line Items]      
Revenue   48,362 38,239
Television      
Disaggregation of Revenue [Line Items]      
Revenue   17,091 16,196
Telephone      
Disaggregation of Revenue [Line Items]      
Revenue   11,037 9,705
Other      
Disaggregation of Revenue [Line Items]      
Revenue   $ 153 $ 129
v3.22.0.1
Disaggregated Revenue and Deferred Revenue - Components of Other Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Gain (loss) on investments $ 91,593 $ 56,402 $ 8,356
ALLO preferred return 8,427 386 0
Borrower late fee income 3,444 5,194 12,884
Loss from ALLO voting membership interest investment (42,148) (3,565) 0
(Loss) gain on debt repurchased (6,775) 1,924 136
Other 23,192 14,347 16,085
Other income 78,681 57,561 47,918
Solar      
Disaggregation of Revenue [Line Items]      
Gain (loss) on investments (10,132) (37,423) (2,220)
Investment Advice      
Disaggregation of Revenue [Line Items]      
Revenue 7,773 10,875 2,941
Administrative Service      
Disaggregation of Revenue [Line Items]      
Revenue $ 3,307 $ 9,421 $ 9,736
v3.22.0.1
Disaggregated Revenue and Deferred Revenue - Deferred Revenue Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]      
Beginning balance $ 36,196 $ 39,646 $ 39,122
Deferral of revenue 120,935 139,478 136,487
Recognition of revenue (115,961) (140,422) (135,963)
Deconsolidation of ALLO   (3,925)  
Business acquisition   1,419  
Ending balance 41,170 36,196 39,646
Corporate and Other Activities      
Segment Reporting Information [Line Items]      
Beginning balance 1,551 1,628 1,602
Deferral of revenue 5,775 3,209 3,505
Recognition of revenue (5,316) (3,286) (3,479)
Deconsolidation of ALLO   0  
Business acquisition   0  
Ending balance 2,010 1,551 1,628
Loan Servicing and Systems | Operating Segments      
Segment Reporting Information [Line Items]      
Beginning balance 1,378 2,712 4,413
Deferral of revenue 5,882 2,490 3,585
Recognition of revenue (4,844) (3,824) (5,286)
Deconsolidation of ALLO   0  
Business acquisition   0  
Ending balance 2,416 1,378 2,712
Education Technology, Services, and Payment Processing | Operating Segments      
Segment Reporting Information [Line Items]      
Beginning balance 33,267 32,074 30,556
Deferral of revenue 109,278 90,183 93,373
Recognition of revenue (105,801) (90,409) (91,855)
Deconsolidation of ALLO   0  
Business acquisition   1,419  
Ending balance 36,744 33,267 32,074
Communications | Operating Segments      
Segment Reporting Information [Line Items]      
Beginning balance 0 3,232 2,551
Deferral of revenue 0 43,596 36,024
Recognition of revenue 0 (42,903) (35,343)
Deconsolidation of ALLO   (3,925)  
Business acquisition   0  
Ending balance $ 0 $ 0 $ 3,232
v3.22.0.1
Major Customer (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Customer Concentration Risk | Department Of Education | Great Lakes Educational Loan Services      
Concentration Risk [Line Items]      
Acquiree revenue since acquisition $ 193,200 $ 179,900 $ 185,700
Government servicing - Nelnet      
Concentration Risk [Line Items]      
Revenue 167,579 146,798 157,991
Government servicing - Nelnet | Customer Concentration Risk      
Concentration Risk [Line Items]      
Revenue $ 167,600 $ 146,800 $ 158,000
v3.22.0.1
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Operating lease ROU assets, which is included in "other assets" on the consolidated balance sheet $ 14,314 $ 18,301
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Assets Other Assets
Operating lease liabilities, which is included in "other liabilities" on the consolidated balance sheet $ 15,899 $ 18,733
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
v3.22.0.1
Leases - Lease Expense, Cash Flow Information, Weighted Average Remaining Lease Term, and Discount Rate (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Lessee, Lease, Description [Line Items]      
Total operating rental expense $ 9,386 $ 13,882 $ 12,780
Weighted average remaining lease term 5 years 1 month 24 days 5 years 7 months 24 days  
Weighted average discount rate 3.23% 2.43%  
Other expenses      
Lessee, Lease, Description [Line Items]      
Total operating rental expense $ 9,386 $ 11,885 11,171
Communications services      
Lessee, Lease, Description [Line Items]      
Total operating rental expense $ 0 $ 1,997 $ 1,609
v3.22.0.1
Leases - Lease Liability Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Lessee, Operating Lease, Liability, Payment, Due [Abstract]    
2022 $ 5,816  
2023 4,122  
2024 1,757  
2025 1,421  
2026 731  
2027 and thereafter 3,702  
Total lease payments 17,549  
Imputed interest (1,650)  
Total $ 15,899 $ 18,733
v3.22.0.1
Defined Contribution Benefit Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Contribution Benefit Plan [Line Items]      
Maximum annual employee contribution percentage 100.00%    
Defined contribution plan cost $ 11.2 $ 11.7 $ 10.8
Employer Match on Employee Contributions up to Three Percent of Employee Salary      
Defined Contribution Benefit Plan [Line Items]      
Employer match percentage 100.00%    
Employer Match on Employee Contributions Between Three and Five Percent of Employee Salary      
Defined Contribution Benefit Plan [Line Items]      
Employer match percentage 50.00%    
Maximum Employee Contribution Percentage Eligible for 100 Percent Employer Match      
Defined Contribution Benefit Plan [Line Items]      
Maximum annual employee contribution percentage 3.00%    
Maximum Employee Contribution Percentage Eligible for 50 Percent Employer Match After 100 Percent Employer Match      
Defined Contribution Benefit Plan [Line Items]      
Maximum annual employee contribution percentage 2.00%    
v3.22.0.1
Stock Based Compensation Plans - Restricted Stock Activity (Details) - Restricted Stock - shares
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restricted Stock Activity      
Non-vested shares at beginning of year (in shares) 552,456 549,845 532,336
Granted (in shares) 249,096 151,639 186,281
Vested (in shares) (116,842) (114,282) (109,651)
Canceled (in shares) (24,544) (34,746) (59,121)
Non-vested shares at end of year (in shares) 660,166 552,456 549,845
v3.22.0.1
Stock Based Compensation Plans - Unrecognized Compensation Costs (Details) - Restricted Stock
$ in Thousands
Dec. 31, 2021
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost $ 23,502
2022  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost 8,795
2023  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost 5,563
2024  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost 3,615
2025  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost 2,267
2026  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost 1,355
2027 and thereafter  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost $ 1,907
v3.22.0.1
Stock Based Compensation Plans - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Discount from market price as of purchase date 15.00%    
Non-employee director stock at lower cost 85.00%    
Non-employee share based compensation expense $ 1.4 $ 1.2 $ 1.2
Shares Issued - Deferred      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Non employee director stock, cumulative deferred shares (in shares) 221,996    
Restricted Stock | Salaries and Benefits      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense $ 10.4 7.3 6.4
Employee Share Purchase Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense $ 0.2 $ 0.4 $ 0.3
Shares issued (in shares) 24,205 36,687 33,250
v3.22.0.1
Stock Based Compensation Plans - Non-employee Directors Compensation Plan (Details) - Nonemployee - shares
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Goods and Nonemployee Services Transaction [Line Items]      
Shares issued under non-employee director plan (in shares) 22,030 29,253 20,800
Shares issued - not deferred      
Share-based Goods and Nonemployee Services Transaction [Line Items]      
Shares issued under non-employee director plan (in shares) 9,958 12,740 9,588
Shares issued- deferred      
Share-based Goods and Nonemployee Services Transaction [Line Items]      
Shares issued under non-employee director plan (in shares) 12,072 16,513 11,212
v3.22.0.1
Related Parties - Narrative (Details)
1 Months Ended 12 Months Ended
Jul. 26, 2019
USD ($)
Aug. 31, 2019
USD ($)
Dec. 31, 2021
USD ($)
ft²
shares
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Oct. 29, 2019
USD ($)
Dec. 31, 2018
USD ($)
May 01, 2018
USD ($)
Related Party Transaction [Line Items]                
Loans purchased, net premium paid     $ 2,600,000 $ 2,600,000 $ 1,200,000      
Loans and accrued interest receivable     18,335,197,000 20,185,656,000        
Restricted cash - due to customers     326,645,000 283,971,000 437,756,000   $ 369,678,000  
Total interest income     523,835,000 619,656,000 948,677,000      
Bank deposits     344,315,000 54,633,000        
Subsidiaries                
Related Party Transaction [Line Items]                
Payment for insurance claims     1,500,000 1,000,000 900,000      
Union Bank and Whitetail Rock Capital Management (WRCM) - management agreement, Union Bank established trusts                
Related Party Transaction [Line Items]                
Amount invested in funds     1,800,000,000          
Revenue from related party     $ 6,300,000 9,800,000 1,800,000      
Union Bank and Whitetail Rock Capital Management (WRCM) - management agreement, Union Bank established trusts | Minimum                
Related Party Transaction [Line Items]                
Basis points earned     0.10%          
Union Bank and Whitetail Rock Capital Management (WRCM) - management agreement, Union Bank established trusts | Maximum                
Related Party Transaction [Line Items]                
Basis points earned     0.25%          
Union Bank and Whitetail Rock Capital Management (WRCM) - management agreement, other related party established trusts                
Related Party Transaction [Line Items]                
Basis points earned     0.05%          
Revenue from related party     $ 213,000 141,000 144,000      
Union Bank and Whitetail Rock Capital Management (WRCM) - management agreement, other related party established trusts | Class A                
Related Party Transaction [Line Items]                
Number of shares for which related party is investment advisor | shares     428,414          
Union Bank and Whitetail Rock Capital Management (WRCM) - management agreement, other related party established trusts | Class B                
Related Party Transaction [Line Items]                
Number of shares for which related party is investment advisor | shares     4,700,000          
SLABS Fund-I, SLABS Fund-II, SLABS Fund-III, SLABS Fund-IV, and SLABS Fund-V                
Related Party Transaction [Line Items]                
Basis points earned     0.50%          
Amount invested in funds     $ 138,000,000          
Union Bank and Trust Company | SLABS Fund-I, SLABS Fund-II, SLABS Fund-III, SLABS Fund-IV, and SLABS Fund-V                
Related Party Transaction [Line Items]                
Percentage of basis points paid     50.00%          
Fees paid     $ 300,000 300,000 300,000      
401 Building | Union Bank and Trust Company                
Related Party Transaction [Line Items]                
Notes receivable               $ 1,500,000
Related party note receivable, interest rate               6.00%
330-333 | Union Bank and Trust Company                
Related Party Transaction [Line Items]                
Notes receivable           $ 162,000    
Related party note receivable, interest rate           6.00%    
West Center | Union Bank and Trust Company                
Related Party Transaction [Line Items]                
Notes receivable           $ 2,900,000    
Related party note receivable, interest rate           3.85%    
401 Building                
Related Party Transaction [Line Items]                
Ownership percentage     50.00%          
330-333                
Related Party Transaction [Line Items]                
Ownership percentage     50.00%          
West Center                
Related Party Transaction [Line Items]                
Ownership percentage     33.33%          
Loan servicing and systems                
Related Party Transaction [Line Items]                
Revenue     $ 486,363,000 451,561,000 455,255,000      
Communications services                
Related Party Transaction [Line Items]                
Revenue     0 76,643,000 64,269,000      
Union Bank and Trust Company                
Related Party Transaction [Line Items]                
Loans purchased, net premium paid     400,000          
Loans and accrued interest receivable     262,600,000 331,300,000 395,500,000      
Amount of participation, FFELP student loans     967,500,000 874,200,000        
Maximum participation to Union Bank FFELP loans     900,000,000          
Amount of participation, student loan asset-backed securities     254,000,000 118,600,000        
Cash and cash equivalents - held at a related party     380,200,000 285,600,000        
Restricted cash - due to customers     284,800,000 197,600,000        
Total interest income     $ 200,000 500,000 1,600,000      
Square footage leased to related party (in square feet) | ft²     4,100          
Bank deposits     $ 184,900,000 48,400,000        
Lease income     81,000 80,000 79,000      
Union Bank and Trust Company | Cash Management | Paid to Union Bank                
Related Party Transaction [Line Items]                
Related party selling, general and administrative expense     280,000 279,000 213,000      
Union Bank and Trust Company | 401K Plan Administrative Fees | Paid to Union Bank                
Related Party Transaction [Line Items]                
Related party selling, general and administrative expense     766,000 447,000 366,000      
Union Bank and Trust Company | Loan servicing and systems                
Related Party Transaction [Line Items]                
Revenue     500,000 700,000 600,000      
Union Bank and Trust Company | Administration service fees                
Related Party Transaction [Line Items]                
Revenue     3,500,000 1,300,000 3,700,000      
Union Bank and Trust Company | Communications services | Received from Union Bank                
Related Party Transaction [Line Items]                
Revenue       273,000 92,000      
Union Bank and Trust Company | Employee Sharing Arrangement | Received from Union Bank                
Related Party Transaction [Line Items]                
Other revenue from related party     342,000 317,000 317,000      
Affiliated Entity | Loan Origination Purchase Agreement                
Related Party Transaction [Line Items]                
Marketing, origination and servicing fees     $ 100,000 2,000,000 1,800,000      
Affiliated Entity | FFELP Participation Agreement, Termination Notice Period | Union Bank and Trust Company                
Related Party Transaction [Line Items]                
Related party transaction period     5 years          
Affiliated Entity | Call Center Services Provided                
Related Party Transaction [Line Items]                
Related party transaction     $ 400,000 0        
Director                
Related Party Transaction [Line Items]                
Notes receivable $ 16,000,000              
Related party note receivable, interest rate 14.00%              
Related party note receivable, term 180 days              
Proceeds from note receivable   $ 16,000,000            
Agile Sports Technologies, Inc.                
Related Party Transaction [Line Items]                
Ownership percentage, cost method investment     19.30%          
Agile Sports Technologies, Inc. | Mr. Dunlap                
Related Party Transaction [Line Items]                
Ownership percentage, related party     3.80%          
Assurity Life Insurance Company | Payment For Insurance Premiums                
Related Party Transaction [Line Items]                
Related party transaction     $ 2,100,000 1,800,000 1,700,000      
Assurity Life Insurance Company | Reinsurance Premiums Paid For By Related Party                
Related Party Transaction [Line Items]                
Related party transaction     1,800,000 1,400,000 1,300,000      
Assurity Life Insurance Company | Annual Insurance Claim Refund                
Related Party Transaction [Line Items]                
Related party transaction     41,000 64,000 56,000      
Private Education Loans | Union Bank and Trust Company                
Related Party Transaction [Line Items]                
Loans purchased     $ 22,300,000 144,900,000 67,700,000      
Consumer loans | Union Bank and Trust Company                
Related Party Transaction [Line Items]                
Loans purchased       $ 0 $ 32,600,000      
v3.22.0.1
Related Parties - Related Party Transactions (Details) - USD ($)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Affiliated Entity | Investment in Limited Liability Companies Investing in Renewable Energy | Farmers & Merchants Investment Inc.      
Related Party Transaction [Line Items]      
Investment amount $ 7,913,000 $ 4,600,000 $ 2,068,868
Affiliated Entity | Investment in Limited Liability Companies Investing in Renewable Energy | North Central Bancorp, Inc.      
Related Party Transaction [Line Items]      
Investment amount 2,466,667 1,533,333 2,068,868
Affiliated Entity | Investment in Limited Liability Companies Investing in Renewable Energy | Infovisa, Inc.      
Related Party Transaction [Line Items]      
Investment amount 562,600 0 0
Affiliated Entity | Investment in Limited Liability Companies Investing in Renewable Energy | Farm and Home Insurance Agency Inc.      
Related Party Transaction [Line Items]      
Investment amount 116,667 383,333 0
Affiliated Entity | Earned Management and Performance Fees | Farmers & Merchants Investment Inc.      
Related Party Transaction [Line Items]      
Related party transaction 29,491 46,154 68,869
Affiliated Entity | Earned Management and Performance Fees | North Central Bancorp, Inc.      
Related Party Transaction [Line Items]      
Related party transaction 14,958 15,385 68,869
Affiliated Entity | Earned Management and Performance Fees | Infovisa, Inc.      
Related Party Transaction [Line Items]      
Related party transaction 1,923 0 0
Affiliated Entity | Earned Management and Performance Fees | Farm and Home Insurance Agency Inc.      
Related Party Transaction [Line Items]      
Related party transaction 962 3,846 0
Director | Investment in Limited Liability Companies Investing in Renewable Energy | Assurity Life Insurance Company      
Related Party Transaction [Line Items]      
Investment amount 5,421,659 1,150,000 0
Director | Investment in Limited Liability Companies Investing in Renewable Energy | Ameritas Life Insurance Corp.      
Related Party Transaction [Line Items]      
Investment amount 5,000,000 0 0
Director | Earned Management and Performance Fees | Assurity Life Insurance Company      
Related Party Transaction [Line Items]      
Related party transaction 16,027 11,538 0
Director | Earned Management and Performance Fees | Ameritas Life Insurance Corp.      
Related Party Transaction [Line Items]      
Related party transaction $ 9,615 $ 0 $ 0
v3.22.0.1
Fair Value - Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Financial assets:    
Fair value $ 1,001,655 $ 390,648
Total assets 1,001,655 390,648
FFELP loan asset-backed securities - available-for-sale    
Financial assets:    
Fair value 494,682 346,502
Private education loan asset-backed debt securities - available for sale    
Financial assets:    
Fair value 412,552 0
Other debt securities - available for sale    
Financial assets:    
Fair value 22,435 2,105
Equity securities    
Financial assets:    
Fair value 63,154 10,114
Equity securities measured at net asset value    
Financial assets:    
Fair value 8,832 31,927
Level 1    
Financial assets:    
Fair value 63,254 10,217
Total assets 63,254 10,217
Level 1 | FFELP loan asset-backed securities - available-for-sale    
Financial assets:    
Fair value 0 0
Level 1 | Private education loan asset-backed debt securities - available for sale    
Financial assets:    
Fair value 0 0
Level 1 | Other debt securities - available for sale    
Financial assets:    
Fair value 100 103
Level 1 | Equity securities    
Financial assets:    
Fair value 63,154 10,114
Level 2    
Financial assets:    
Fair value 929,569 348,504
Total assets 929,569 348,504
Level 2 | FFELP loan asset-backed securities - available-for-sale    
Financial assets:    
Fair value 494,682 346,502
Level 2 | Private education loan asset-backed debt securities - available for sale    
Financial assets:    
Fair value 412,552 0
Level 2 | Other debt securities - available for sale    
Financial assets:    
Fair value 22,335 2,002
Level 2 | Equity securities    
Financial assets:    
Fair value $ 0 $ 0
v3.22.0.1
Fair Value - Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Financial assets:        
Loans receivable $ 18,335,197 $ 20,185,656    
Accrued loan interest receivable 788,552 794,611    
Cash and cash equivalents 125,563 121,249 $ 133,906 $ 121,347
Investments (at fair value) 1,588,919 992,940    
Restricted cash - due to customers 326,645 283,971 $ 437,756 $ 369,678
Financial liabilities:        
Accrued interest payable 4,566 28,701    
Bank deposits 344,315 54,633    
Due to customers 366,002 301,471    
Fair value        
Financial assets:        
Loans receivable 18,576,272 20,454,132    
Accrued loan interest receivable 788,552 794,611    
Cash and cash equivalents 125,563 121,249    
Investments (at fair value) 1,001,655 390,648    
Beneficial interest in loan securitizations 142,391 58,709    
Restricted cash 741,981 553,175    
Restricted cash - due to customers 326,645 283,971    
Financial liabilities:        
Bonds and notes payable 17,819,902 19,270,810    
Accrued interest payable 4,566 28,701    
Bank deposits 342,463 54,599    
Due to customers 366,002 301,471    
Fair value | Level 1        
Financial assets:        
Loans receivable 0 0    
Accrued loan interest receivable 0 0    
Cash and cash equivalents 125,563 121,249    
Investments (at fair value) 63,254 10,217    
Beneficial interest in loan securitizations 0 0    
Restricted cash 741,981 553,175    
Restricted cash - due to customers 326,645 283,971    
Financial liabilities:        
Bonds and notes payable 0 0    
Accrued interest payable 0 0    
Bank deposits 184,897 48,422    
Due to customers 366,002 301,471    
Fair value | Level 2        
Financial assets:        
Loans receivable 0 0    
Accrued loan interest receivable 788,552 794,611    
Cash and cash equivalents 0 0    
Investments (at fair value) 929,569 348,504    
Beneficial interest in loan securitizations 0 0    
Restricted cash 0 0    
Restricted cash - due to customers 0 0    
Financial liabilities:        
Bonds and notes payable 17,819,902 19,270,810    
Accrued interest payable 4,566 28,701    
Bank deposits 157,566 6,177    
Due to customers 0 0    
Fair value | Level 3        
Financial assets:        
Loans receivable 18,576,272 20,454,132    
Accrued loan interest receivable 0 0    
Cash and cash equivalents 0 0    
Investments (at fair value) 0 0    
Beneficial interest in loan securitizations 142,391 58,709    
Restricted cash 0 0    
Restricted cash - due to customers 0 0    
Financial liabilities:        
Bonds and notes payable 0 0    
Accrued interest payable 0 0    
Bank deposits 0 0    
Due to customers 0 0    
Carrying value        
Financial assets:        
Loans receivable 17,546,645 19,391,045    
Accrued loan interest receivable 788,552 794,611    
Cash and cash equivalents 125,563 121,249    
Investments (at fair value) 1,001,655 390,648    
Beneficial interest in loan securitizations 120,142 58,331    
Restricted cash 741,981 553,175    
Restricted cash - due to customers 326,645 283,971    
Financial liabilities:        
Bonds and notes payable 17,631,089 19,320,726    
Accrued interest payable 4,566 28,701    
Bank deposits 344,315 54,633    
Due to customers $ 366,002 $ 301,471    
v3.22.0.1
Condensed Parent Company Financial Statements - Condensed Parent Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Assets:        
Total cash and cash equivalents $ 125,563 $ 121,249 $ 133,906 $ 121,347
Investments 1,588,919 992,940    
Restricted cash 741,981 553,175 650,939 701,366
Other assets 82,887 92,020    
Total assets 21,678,041 22,646,160 23,708,970  
Liabilities:        
Other liabilities 379,231 312,280    
Total liabilities 18,725,203 20,017,811    
Nelnet, Inc. shareholders' equity:        
Additional paid-in capital 1,000 3,794    
Retained earnings 2,940,523 2,621,762    
Accumulated other comprehensive earnings, net 9,304 6,102    
Total Nelnet, Inc. shareholders' equity 2,951,206 2,632,042    
Noncontrolling interests 1,632 (3,693)    
Total equity 2,952,838 2,628,349 $ 2,391,094 $ 2,314,779
Total liabilities and equity 21,678,041 22,646,160    
Parent Company        
Assets:        
Total cash and cash equivalents 47,434 69,687    
Investments 1,236,933 707,332    
Investment in subsidiary debt 374,087 38,903    
Restricted cash 107,103 93,271    
Investment in subsidiaries 1,986,136 1,963,413    
Notes receivable from subsidiaries 314 21,209    
Other assets 123,716 115,631    
Total assets 3,875,723 3,009,446    
Liabilities:        
Notes payable, net of debt issuance costs 734,881 236,317    
Other liabilities 189,317 140,710    
Total liabilities 924,198 377,027    
Nelnet, Inc. shareholders' equity:        
Common stock 379 384    
Additional paid-in capital 1,000 3,794    
Retained earnings 2,940,523 2,621,762    
Accumulated other comprehensive earnings, net 9,304 6,102    
Total Nelnet, Inc. shareholders' equity 2,951,206 2,632,042    
Noncontrolling interests 319 377    
Total equity 2,951,525 2,632,419    
Total liabilities and equity $ 3,875,723 $ 3,009,446    
v3.22.0.1
Condensed Parent Company Financial Statements - Condensed Parent Statements of Income (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Investment interest   $ 41,498 $ 24,543 $ 34,421
Interest on bonds and notes payable and bank deposits   176,233 330,071 699,327
Net interest income   347,602 289,585 249,350
Other income/expense:        
Other   78,681 57,561 47,918
(Loss) gain from debt repurchases, net   18,715 33,023 17,261
Gain from deconsolidation of ALLO $ 258,600 0 258,588 0
Derivative market value adjustments and derivative settlements, net   71,446 (24,465) (30,789)
Total other income/expense   977,079 1,110,384 831,245
Operating expenses   726,342 781,105 762,824
Income before income taxes   502,105 450,486 176,745
Income tax (expense) benefit   (115,822) (100,860) (35,451)
Net income   386,283 349,626 141,294
Net (loss) income attributable to noncontrolling interests   7,003 2,817 509
Net income attributable to Nelnet, Inc.   393,286 352,443 141,803
Parent Company        
Investment interest   12,455 4,110 4,925
Interest on bonds and notes payable and bank deposits   3,515 3,179 9,588
Net interest income   8,940 931 (4,663)
Other income/expense:        
Other   45,291 48,688 8,384
(Loss) gain from debt repurchases, net   (6,530) 1,962 136
Equity in subsidiaries income   313,451 132,101 182,346
Gain from deconsolidation of ALLO   0 258,588 0
Impairment expense   (4,637) (7,784) 0
Derivative market value adjustments and derivative settlements, net   71,446 (24,465) (30,789)
Total other income/expense   419,021 409,090 160,077
Operating expenses   7,632 14,006 19,561
Income before income taxes   420,329 396,015 135,853
Income tax (expense) benefit   (27,101) (43,577) 5,950
Net income   393,228 352,438 141,803
Net (loss) income attributable to noncontrolling interests   58 5 0
Net income attributable to Nelnet, Inc.   $ 393,286 $ 352,443 $ 141,803
v3.22.0.1
Condensed Parent Company Financial Statements - Condensed Parent Statements of Comprehensive Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Net income $ 386,283 $ 349,626 $ 141,294
Net changes related to available-for-sale debt securities:      
Unrealized holding gains (losses) arising during period, net 6,921 6,637 (1,199)
Reclassification of gains recognized in net income, net of losses (2,695) (2,521) 0
Income tax effect (1,014) (986) 288
Unrealized gains (losses) during period after reclassifications and tax 3,212 3,130 (911)
Other comprehensive income (loss) 3,202 3,130 (911)
Comprehensive income 389,485 352,756 140,383
Comprehensive loss attributable to noncontrolling interests 7,003 2,817 509
Comprehensive income attributable to Nelnet, Inc. 396,488 355,573 140,892
Parent Company      
Net income 393,228 352,438 141,803
Net changes related to equity in subsidiaries other comprehensive income 6,692 0 0
Net changes related to available-for-sale debt securities:      
Unrealized holding gains (losses) arising during period, net (4,220) 6,637 (1,199)
Reclassification of gains recognized in net income, net of losses (372) (2,521) 0
Income tax effect 1,102 (986) 288
Unrealized gains (losses) during period after reclassifications and tax (3,490) 3,130 (911)
Other comprehensive income (loss) 3,202 3,130 (911)
Comprehensive income 396,430 355,568 140,892
Comprehensive loss attributable to noncontrolling interests 58 5 0
Comprehensive income attributable to Nelnet, Inc. $ 396,488 $ 355,573 $ 140,892
v3.22.0.1
Condensed Parent Company Financial Statements - Condensed Parent Statements of Cash Flows (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Net income attributable to Nelnet, Inc. $ 393,286 $ 352,443 $ 141,803
Net loss attributable to noncontrolling interest (7,003) (2,817) (509)
Net income 386,283 349,626 141,294
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Depreciation and amortization 132,325 198,473 192,662
Derivative market value adjustments 92,813 (28,144) (76,195)
Payments to terminate derivative instruments, net 0 0 (12,530)
Proceeds from (payments to) clearinghouse - initial and variation margin, net 91,294 (26,747) (70,685)
Gain from deconsolidation of ALLO, including cash impact 0 (287,579) 0
Gain from investments, net (3,811) (14,055) (3,095)
Purchases of equity securities, net (42,916) 0 0
Deferred income tax expense (benefit) 55,622 7,974 (7,265)
Non-cash compensation expense 10,673 16,739 6,781
Other 0 186 584
Increase in other assets 39,439 59,182 (19,858)
Increase in other liabilities, net 29,775 35,907 49,100
Net cash provided by operating activities 544,867 212,815 298,915
Cash flows from investing activities:      
Purchases of available-for-sale securities (734,817) (471,510) (1,010)
Proceeds from sales of available-for-sale securities 160,976 173,784 105
Purchases of other investments (253,894) (168,216) (103,250)
Proceeds from other investments 191,821 13,011 63,879
Net cash provided by investing activities 1,185,935 621,219 1,524,566
Cash flows from financing activities:      
Payments on notes payable (3,683,770) (3,129,485) (4,698,878)
Proceeds from issuance of notes payable 1,947,559 1,884,689 2,997,972
Payments of debt issuance costs (7,093) (8,674) (14,406)
Dividends paid (34,457) (31,778) (29,485)
Repurchases of common stock (58,111) (73,358) (40,411)
Proceeds from issuance of common stock 1,465 1,653 1,552
Acquisition of noncontrolling interest 0 (600) 0
Issuance of noncontrolling interests 50,716 205,768 4,650
Net cash used in financing activities (1,494,887) (1,098,240) (1,793,271)
Net increase (decrease) in cash, cash equivalents, and restricted cash 235,794 (264,206) 30,210
Cash, cash equivalents, and restricted cash, beginning of period 958,395 1,222,601 1,192,391
Cash, cash equivalents, and restricted cash, end of period 1,194,189 958,395 1,222,601
Supplemental disclosures of cash flow information:      
Cash disbursements made for interest 152,173 301,570 657,436
Cash disbursements made for income taxes, net of refunds and credits received [1] 18,659 29,685 17,672
Parent Company      
Net income attributable to Nelnet, Inc. 393,286 352,443 141,803
Net loss attributable to noncontrolling interest (58) (5) 0
Net income 393,228 352,438 141,803
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Depreciation and amortization 591 534 467
Derivative market value adjustments (92,813) 28,144 76,195
Payments to terminate derivative instruments, net 0 0 (12,530)
Proceeds from (payments to) clearinghouse - initial and variation margin, net 91,294 (26,747) (70,685)
Equity in earnings of subsidiaries (313,451) (132,101) (182,346)
Gain from deconsolidation of ALLO, including cash impact 0 (287,579) 0
Loss on (gain from) debt repurchases 6,530 (1,962) (136)
Gain from investments, net 721 (46,019) (3,969)
Deferred income tax expense (benefit) 47,423 23,747 (19,183)
Non-cash compensation expense 10,673 16,739 6,781
Impairment expense 4,637 7,784 0
Other 0 (329) (481)
Increase in other assets (9,108) (17,410) (10,672)
Increase in other liabilities, net 1,784 26,009 29,384
Net cash provided by operating activities 98,593 (56,752) (45,372)
Cash flows from investing activities:      
Purchases of available-for-sale securities (640,644) (342,563) 0
Proceeds from sales of available-for-sale securities 133,286 168,555 0
Capital distributions/contributions from/to subsidiaries, net 294,578 99,830 449,602
Decrease in notes receivable from subsidiaries 20,895 21,343 14,421
Purchases of subsidiary debt, net (335,184) (25,085) 0
Purchases of other investments (110,184) (54,637) (47,106)
Proceeds from other investments 129,899 8,564 27,926
Net cash provided by investing activities (507,354) (123,993) 444,843
Cash flows from financing activities:      
Payments on notes payable (126,530) (20,381) (361,272)
Proceeds from issuance of notes payable 619,259 190,520 60,000
Payments of debt issuance costs (1,286) (49) (1,129)
Dividends paid (34,457) (31,778) (29,485)
Repurchases of common stock (58,111) (73,358) (40,411)
Proceeds from issuance of common stock 1,465 1,653 1,552
Acquisition of noncontrolling interest 0 (600) 0
Issuance of noncontrolling interests 0 194,985 878
Net cash used in financing activities 400,340 260,992 (369,867)
Net increase (decrease) in cash, cash equivalents, and restricted cash (8,421) 80,247 29,604
Cash, cash equivalents, and restricted cash, beginning of period 162,958 82,711 53,107
Cash, cash equivalents, and restricted cash, end of period 154,537 162,958 82,711
Supplemental disclosures of cash flow information:      
Cash disbursements made for interest 2,301 2,577 9,501
Cash disbursements made for income taxes, net of refunds and credits received 18,659 29,685 17,672
Noncash operating, investing, and financing activity:      
Contributions of investments to subsidiaries, net $ (835) $ 49,066 $ 0
[1] For 2021, 2020, and 2019 the Company utilized $34.1 million, $53.9 million, and $31.8 million of federal and state tax credits, respectively, related primarily to renewable energy.
v3.22.0.1
Label Element Value
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2016-02 [Member]
Operating Segments [Member] | Nelnet Bank [Member]  
Goodwill us-gaap_Goodwill $ 0
Operating Segments [Member] | Communications Segment [Member]  
Goodwill us-gaap_Goodwill 0
Operating Segments [Member] | Asset Generation And Management Segment [Member]  
Goodwill us-gaap_Goodwill 41,883,000
Operating Segments [Member] | Education Technology Services And Payment Processing Services Segment [Member]  
Goodwill us-gaap_Goodwill 76,570,000
Operating Segments [Member] | Loan Servicing And Systems Segment [Member]  
Goodwill us-gaap_Goodwill 23,639,000
Corporate, Non-Segment [Member]  
Goodwill us-gaap_Goodwill $ 0