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Loans and Accrued Interest Receivable and Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2024
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, 2024December 31, 2023
Non-Nelnet Bank:
Federally insured loans:
Stafford and other$2,108,960 2,936,174 
Consolidation6,279,604 8,750,033 
Total8,388,564 11,686,207 
Private education loans221,744 277,320 
Consumer and other loans (a)345,560 85,935 
Non-Nelnet Bank loans8,955,868 12,049,462 
Nelnet Bank:
Private education loans482,445 360,520 
Consumer and other loans (a)162,152 72,352 
Nelnet Bank loans644,597 432,872 
Accrued interest receivable549,283 764,385 
Loan discount and deferred lender fees, net of unamortized loan premiums and deferred origination costs(42,114)(33,872)
Allowance for loan losses:
Non-Nelnet Bank:
Federally insured loans(49,091)(68,453)
Private education loans(11,130)(15,750)
Consumer and other loans(38,468)(11,742)
Non-Nelnet Bank allowance for loan losses(98,689)(95,945)
Nelnet Bank:
Private education loans(10,086)(3,347)
Consumer and other loans(6,115)(5,351)
Nelnet Bank allowance for loan losses(16,201)(8,698)
 $9,992,744 13,108,204 
(a) During 2024, Nelnet Bank sold a $65.1 million consumer loan portfolio to the Company’s AGM (non-Nelnet Bank) operating segment.
The following table summarizes the allowance for loan losses as a percentage of the ending loan balance for each of the Company's loan portfolios.
As ofAs of
December 31, 2024December 31, 2023
Non-Nelnet Bank:
Federally insured loans (a)0.59 %0.59 %
Private education loans5.02 %5.68 %
Consumer and other loans (b)11.13 %13.66 %
Nelnet Bank:
Private education loans2.09 %0.93 %
Consumer and other loans (b)3.77 %7.40 %
(a)    As of December 31, 2024 and 2023, the allowance for loan losses as a percent of the risk sharing component of federally insured student loans not covered by the federal guaranty was 20.6% and 21.8%, respectively.
(b)    Decrease as of December 31, 2024 compared with 2023 was due to the change in the mix of loans outstanding at the end of each period reported.
Loan Sales
During 2024, 2023, and 2022, the Company sold $726.6 million, $728.1 million, and $167.0 million of loans, respectively, and recognized net losses of $1.6 million, $17.7 million, and $8.6 million, respectively. Consumer loans sold by the Company during these periods were to non-affiliated third parties who securitized such loans. As partial consideration received for the majority of such loan portfolio sales, the Company received residual interest in the third parties’ loan securitizations that are included in "other investments and notes receivable, net" on the Company's consolidated balance sheets.
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 periodProvision (negative provision) for loan losses (a)Charge-offsRecoveriesInitial allowance on loans purchased with credit deteriorationLoan salesBalance at end of period
Year ended December 31, 2024
Non-Nelnet Bank:
Federally insured loans$68,453 (917)(18,445)— — — 49,091 
Private education loans15,750 (392)(5,045)817 — — 11,130 
Consumer and other loans11,742 29,000 (11,033)1,349 — 7,410 38,468 
Nelnet Bank:
Private education loans3,347 7,830 (3,084)762 1,231 — 10,086 
Consumer and other loans5,351 18,918 (11,091)347 — (7,410)6,115 
$104,643 54,439 (48,698)3,275 1,231 — 114,890 
Year ended December 31, 2023
Non-Nelnet Bank:
Federally insured loans$83,593 4,303 (19,593)— 6 144 68,453 
Private education loans15,411 2,865 (3,306)780 — — 15,750 
Consumer and other loans30,263 (7,528)(12,467)1,474 — — 11,742 
Nelnet Bank:
Federally insured loans170 (14)(12)— — (144)— 
Private education loans2,390 2,171 (1,214)— — — 3,347 
Consumer and other loans— 6,245 (1,775)881 — — 5,351 
$131,827 8,042 (38,367)3,135 6 — 104,643 
Year ended December 31, 2022
Non-Nelnet Bank:
Federally insured loans$103,381 3,731 (24,181)— 662 — 83,593 
Private education loans16,143 2,487 (3,879)656 — 4 15,411 
Consumer and other loans6,481 26,915 (3,725)592 — — 30,263 
Nelnet Bank:
Federally insured loans268 (93)(5)— — — 170 
Private education loans840 1,860 (306)— — (4)2,390 
$127,113 34,900 (32,096)1,248 662 — 131,827 
(a) Once a loan is classified as held for sale, any allowance for loan losses that existed immediately prior to the reclassification to held for sale is reversed through provision. The following table presents the reduction to provision for loan losses as a result of the loan sales described under "Loan Sales" above.
    
Provision for current periodLoan sale reduction to provisionProvision
(negative provision) for loan losses
Year ended December 31, 2024
Non-Nelnet Bank
Consumer and other loans$42,529 (13,529)29,000 
Year ended December 31, 2023
Non-Nelnet Bank
Consumer and other loans$49,807 (57,335)(7,528)
Year ended December 31, 2022
Non-Nelnet Bank
Consumer and other loans$38,383 (11,468)26,915 
The following table summarizes annualized net charge-offs as a percentage of average loans for each of the Company's loan portfolios.
Year ended December 31,
202420232022
Non-Nelnet Bank:
Federally insured loans0.18 %0.15 %0.15 %
Private education loans1.70 %0.99 %1.18 %
Consumer and other loans7.58 %5.67 %2.05 %
Nelnet Bank:
Federally insured loans— 0.02 %0.01 %
Private education loans0.60 %0.34 %0.10 %
Consumer and other loans6.69 %2.64 %— 
During the year ended December 31, 2022, the Company recorded a provision for loan losses due to (i) management's estimate of declining economic conditions as of December 31, 2022 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of December 31, 2021; and (ii) the establishment of an initial allowance for loans originated and acquired during the period.
During the years ended December 31, 2023 and 2024, the Company recorded a provision for loan losses primarily due to the establishment of an initial allowance for consumer and other loans originated and acquired during the period. During 2024, additional provision was also recorded on a pool of consumer loans at both Nelnet Bank and AGM (Non-Nelnet Bank) in which loss expectations increased during the period.
During 2022, 2023 and 2024, provision for loan losses was offset by the amortization of the federally insured loan portfolio; and during 2022 and 2023 by an increase in expected prepayments as a result of continued initiatives offered and proposed by the Department for FFELP borrowers to consolidate their loans into Federal Direct Loan Program loans with the Department.
Unfunded Loan Commitments
As of December 31, 2024 and 2023, Nelnet Bank had a liability of approximately $326,000 and $158,000, respectively, related to $40.7 million and $12.3 million, respectively, of unfunded private education, consumer, and other loan commitments. When a new loan commitment is made, the Company records an allowance that is included in "other liabilities" on the consolidated balance sheet by recording a provision for loan losses. When the loan is funded, the Company transfers the liability to the allowance for loan losses. Below is a reconciliation of the provision for loan losses reported in the consolidated statements of income.
Year ended December 31,
202420232022
Provision for loan losses from allowance activity table above$54,439 8,042 34,900 
Provision for unfunded loan commitments168 73 73 
Provision for loan losses reported in consolidated statements of income$54,607 8,115 34,973 
Key Credit Quality Indicators
Loan Status and Delinquencies
Key credit quality indicators for the Company’s federally insured, private education, consumer, and other 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. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the following tables, do not include those loans while they are in forbearance). The following table presents the Company’s loan status and delinquency amounts.
As of December 31,
202420232022
Federally insured loans - Non-Nelnet Bank:    
Loans in-school/grace/deferment (a)$376,765 4.5 % $522,304 4.5 % $637,919 4.7 %
Loans in forbearance (b)586,412 7.0  979,588 8.4  1,103,181 8.1 
Loans in repayment status:  
Loans current6,374,897 85.9 %8,416,624 82.6 %10,173,859 86.0 %
Loans delinquent 31-60 days (c)243,348 3.3 377,108 3.7 415,305 3.5 
Loans delinquent 61-90 days (c)166,474 2.2 254,553 2.5 253,565 2.2 
Loans delinquent 91-120 days (c)113,838 1.5 187,145 1.9 180,029 1.5 
Loans delinquent 121-270 days (c)380,823 5.1 685,829 6.7 534,410 4.5 
Loans delinquent 271 days or greater (c)(d)146,007 2.0 263,056 2.6 268,205 2.3 
Total loans in repayment7,425,387 88.5 100.0 %10,184,315 87.1 100.0 %11,825,373 87.2 100.0 %
Total federally insured loans8,388,564 100.0 % 11,686,207 100.0 % 13,566,473 100.0 %
Accrued interest receivable540,272 757,713 808,150 
Loan discount, net of unamortized premiums and deferred origination costs(21,513)(28,963)(35,468)
Allowance for loan losses(49,091)(68,453)(83,593)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$8,858,232 $12,346,504 $14,255,562 
Private education loans - Non-Nelnet Bank:
Loans in-school/grace/deferment (a)$5,997 2.7 %$9,475 3.4 %$12,756 5.1 %
Loans in forbearance (b)2,089 0.9 2,529 0.9 2,017 0.8 
Loans in repayment status:
Loans current206,825 96.8 %257,639 97.1 %232,539 97.9 %
Loans delinquent 31-60 days (c)3,424 1.6 3,395 1.3 2,410 1.0 
Loans delinquent 61-90 days (c)1,275 0.6 1,855 0.7 767 0.3 
Loans delinquent 91 days or greater (c)2,134 1.0 2,427 0.9 1,894 0.8 
Total loans in repayment213,658 96.4 100.0 %265,316 95.7 100.0 %237,610 94.1 100.0 %
Total private education loans221,744 100.0 % 277,320 100.0 % 252,383 100.0 %
Accrued interest receivable2,019 2,653 2,146 
Loan discount, net of unamortized premiums(6,350)(8,037)(38)
Allowance for loan losses(11,130)(15,750)(15,411)
Total private education loans and accrued interest receivable, net of allowance for loan losses$206,283 $256,186 $239,080 
As of December 31,
202420232022
Consumer and other loans - Non-Nelnet Bank:
Loans in deferment$150 0.0 %$146 0.2 %$109 0.0 %
Loans in repayment status:
Loans current335,355 97.1 %81,195 94.6 %346,812 98.9 %
Loans delinquent 31-60 days (c)3,667 1.1 2,035 2.4 1,906 0.5 
Loans delinquent 61-90 days (c)2,143 0.6 1,189 1.4 764 0.2 
Loans delinquent 91 days or greater (c)4,245 1.2 1,370 1.6 1,324 0.4 
Total loans in repayment345,410 100.0 100.0 %85,789 99.8 100.0 %350,806 100.0 100.0 %
Total consumer and other loans345,560 100.0 %85,935 100.0 %350,915 100.0 %
Accrued interest receivable1,868 861 3,658 
Loan discount and deferred lender fees, net of unamortized premiums(10,713)(2,474)(588)
Allowance for loan losses(38,468)(11,742)(30,263)
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses$298,247 $72,580 $323,722 
Private education loans - Nelnet Bank (e):
Loans in-school/grace/deferment (a)$31,674 6.6 %$19,089 5.3 %$11,580 3.3 %
Loans in forbearance (b)3,061 0.6 1,285 0.4 864 0.2 
Loans in repayment status:
Loans current439,569 98.2 %338,448 99.5 %340,830 99.8 %
Loans delinquent 30-59 days (c)4,327 1.0 839 0.2 167 0.1 
Loans delinquent 60-89 days (c)1,497 0.3 253 0.1 32 0.0 
Loans delinquent 90 days or greater (c)2,317 0.5 606 0.2 409 0.1 
Total loans in repayment447,710 92.8 100.0 %340,146 94.3 100.0 %341,438 96.5 100.0 %
Total private education loans482,445 100.0 %360,520 100.0 %353,882 100.0 %
Accrued interest receivable4,103 2,023 1,152 
Loan discount, net of unamortized premiums and deferred origination costs(4,581)5,608 5,360 
Allowance for loan losses(10,086)(3,347)(2,390)
Total private education loans and accrued interest receivable, net of allowance for loan losses$471,881 $364,804 $358,004 
Consumer and other loans - Nelnet Bank (e):
Loans in deferment$5,186 3.2 %$103 0.1 %
Loans in repayment status:
Loans current155,772 99.2 %69,584 96.3 %
Loans delinquent 30-59 days (c)803 0.5 1,075 1.5 
Loans delinquent 60-89 days (c)243 0.2 941 1.3 
Loans delinquent 90 days or greater (c)148 0.1 649 0.9 
Total loans in repayment156,966 96.8 100.0 %72,249 99.9 100.0 %
Total consumer and other loans162,152 100.0 %72,352 100.0 %
Accrued interest receivable1,021 575 
Loan premium, net of unaccreted discount1,043 (6)
Allowance for loan losses(6,115)(5,351)
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses$158,101 $67,570 
(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 for reinsurance.
(e)    For the periods presented for Nelnet Bank, the delinquency bucket periods conform with the delinquency bucket periods reflected in Nelnet Bank's Call Reports filed with the Federal Deposit Insurance Corporation.
FICO Scores
An additional key credit quality indicator for Nelnet Bank private education and consumer loans is FICO scores at the time of origination or purchase. The following tables highlight the principal balance of Nelnet Bank's portfolios, by year of origination, stratified by FICO score at the time of origination.
Nelnet Bank Private Education Loans
Loan balance as of December 31, 2024
20242023202220212020Prior yearsTotal
FICO at origination or purchase:
Less than 705$2,566 3,578 4,759 4,182 331 15,485 30,901 
705 - 7343,736 8,874 19,666 7,531 426 12,349 52,582 
735 - 7644,398 8,629 29,918 12,775 1,286 17,920 74,926 
765 - 7944,600 6,115 46,340 24,073 1,105 23,867 106,100 
Greater than 7949,971 15,471 67,454 49,408 4,406 63,258 209,968 
No FICO score available or required (a)2,476 5,492 — — — — 7,968 
$27,747 48,159 168,137 97,969 7,554 132,879 482,445 
Loan balance as of December 31, 2023
2023202220212020Total
FICO at origination or purchase:
Less than 705$3,840 5,495 4,647 386 14,368 
705 - 7349,534 21,961 8,805 525 40,825 
735 - 7648,648 32,969 14,910 1,358 57,885 
765 - 7945,776 52,045 27,221 1,374 86,416 
Greater than 79415,057 77,996 58,695 5,226 156,974 
No FICO score available or required (a)4,052 — — — 4,052 
$46,907 190,466 114,278 8,869 360,520 
Nelnet Bank Consumer and Other Loans
Loan balance as of December 31, 2024
20242023202220212020Prior yearsTotal
FICO at origination:
Less than 720$19,264 1,762 — 376 675 1,170 23,247 
720 - 76941,217 4,502 19 6,152 5,448 3,105 60,443 
Greater than 76957,323 6,577 103 5,834 2,755 1,165 73,757 
No FICO score available or required (a)3,936 437 277 55 — — 4,705 
$121,740 13,278 399 12,417 8,878 5,440 162,152 
Loan balance as of December 31, 2023
202320222021Total
FICO at origination:
Less than 720$21,412 — — 21,412 
720 - 76933,571 51 — 33,622 
Greater than 76916,484 109 — 16,593 
No FICO score available or required (a)386 284 55 725 
$71,853 444 55 72,352 
(a)    Loans with no FICO score available or required refers to loans issued to borrowers for which the Company cannot obtain a FICO score or are not required to under a special purpose credit program. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.
Nonaccrual Status
The Company does not place federally insured loans on nonaccrual status due to the government guaranty. The amortized cost of private education, consumer, and other loans on nonaccrual status, as well as the allowance for loan losses related to such loans, as of December 31, 2024, 2023, and 2022 was not material.
Amortized Cost Basis by Origination Year
The following table presents the amortized cost of the Company's private education, consumer, and other loans by loan status and delinquency amount as of December 31, 2024, based on year of origination. Effective July 1, 2010, no new loan originations can be made under the FFEL Program and all new federal loan originations must be made under the Federal Direct Loan Program. As such, all the Company’s federally insured loans were originated prior to July 1, 2010.
20242023202220212020Prior yearsTotal
Private education loans - Non-Nelnet Bank:
Loans in-school/grace/deferment$— — 460 2,401 568 2,568 5,997 
Loans in forbearance— — 41 203 354 1,491 2,089 
Loans in repayment status:
Loans current— 198 4,226 5,567 39,446 157,388 206,825 
Loans delinquent 31-60 days— — — 23 446 2,955 3,424 
Loans delinquent 61-90 days— — 12 36 5 1,222 1,275 
Loans delinquent 91 days or greater— — — 16 150 1,968 2,134 
Total loans in repayment— 198 4,238 5,642 40,047 163,533 213,658 
Total private education loans$— 198 4,739 8,246 40,969 167,592 221,744 
Accrued interest receivable2,019 
Loan discount, net of unamortized premiums(6,350)
Allowance for loan losses(11,130)
Total private education loans and accrued interest receivable, net of allowance for loan losses$206,283 
Gross charge-offs - year ended December 31, 2024$— — — 90 271 4,684 5,045 
Consumer and other loans - Non-Nelnet Bank:
Loans in deferment$51 99 — — — — 150 
Loans in repayment status:
Loans current284,333 47,626 2,746 342 243 65 335,355 
Loans delinquent 31-60 days1,969 1,611 60 20 6 1 3,667 
Loans delinquent 61-90 days886 1,164 83 10 — — 2,143 
Loans delinquent 91 days or greater2,058 1,790 335 57 — 5 4,245 
Total loans in repayment289,246 52,191 3,224 429 249 71 345,410 
Total consumer and other loans$289,297 52,290 3,224 429 249 71 345,560 
Accrued interest receivable1,868 
Loan discount and deferred lender fees, net of unamortized premiums(10,713)
Allowance for loan losses(38,468)
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses$298,247 
Gross charge-offs - year ended December 31, 2024$479 8,197 1,961 236 40 120 11,033 
20242023202220212020Prior yearsTotal
Private education loans - Nelnet Bank (a):
Loans in-school/grace/deferment$14,402 9,733 5,942 439 219 939 31,674 
Loans in forbearance— 63 926 743 105 1,224 3,061 
Loans in repayment status:
Loans current12,802 36,592 160,467 95,821 7,105 126,782 439,569 
Loans delinquent 30-59 days209 1,087 457 715 — 1,859 4,327 
Loans delinquent 60-89 days169 176 55 42 — 1,055 1,497 
Loans delinquent 90 days or greater165 508 290 209 125 1,020 2,317 
Total loans in repayment13,345 38,363 161,269 96,787 7,230 130,716 447,710 
Total private education loans$27,747 48,159 168,137 97,969 7,554 132,879 482,445 
Accrued interest receivable4,103 
Loan discount, net of unamortized premiums and deferred origination costs(4,581)
Allowance for loan losses(10,086)
Total private education loans and accrued interest receivable, net of allowance for loan losses$471,881 
Gross charge-offs - year ended December 31, 2024$113 1,010 986 342 47 586 3,084 
Consumer and other loans - Nelnet Bank (a):
Loans in deferment$5,186 — — — — — 5,186 
Loans in repayment status:
Loans current116,055 12,944 399 12,211 8,782 5,381 155,772 
Loans delinquent 30-59 days333 199 — 158 94 19 803 
Loans delinquent 60-89 days115 51 — 48 2 27 243 
Loans delinquent 90 days or greater51 84 — — — 13 148 
Total loans in repayment116,554 13,278 399 12,417 8,878 5,440 156,966 
Total consumer and other loans$121,740 13,278 399 12,417 8,878 5,440 162,152 
Accrued interest receivable1,021 
Loan premium, net of unaccreted discount1,043 
Allowance for loan losses(6,115)
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses$158,101 
Gross charge-offs - year ended December 31, 2024$958 9,776 — 221 45 91 11,091 
(a) For the periods presented for Nelnet Bank, the delinquency bucket periods conform with the delinquency bucket periods reflected in Nelnet Bank's Call Reports filed with the Federal Deposit Insurance Corporation.