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Fair Value (Tables)

12 Months Ended

Dec. 31, 2024

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 years ended December 31, 2024 and 2023.

			As of December 31, 2024																		As of December 31, 2023
			Level 1						Level 2												Total						Level 1						Level 2												Total
Assets:
Investments (a):
Asset-backed debt securities - available-for-sale			$	100					1,085,726												1,085,826						99						955,804												955,903
Equity securities			455						—												455						73						—												73
Equity securities measured at net asset value (b)																					74,039																								50,834
Total investments			555						1,085,726												1,160,320						172						955,804												1,006,810
Derivative instruments (c)			—						3,232												3,232						—						452												452
Total assets			$	555					1,088,958												1,163,552						172						956,256												1,007,262
Liabilities:
Derivative instruments (c)			$	—					53												53						—						1,976												1,976
Total liabilities			$	—					53												53						—						1,976												1,976

(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, 2024 and 2023, include investments traded on an active exchange and a single U.S. Treasury security. Level 2 investments include student loan asset-backed, mortgage-backed, collateralized loan obligation, and other consumer loan-backed 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.

(c)    Nelnet Bank derivatives are accounted for at fair value on a recurring basis. The fair value of derivative financial instruments is determined using a market approach in which derivative pricing models use the stated terms of the contracts and observable yield curves and volatilities from active markets. When determining the fair value of derivatives, Nelnet Bank takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held. The net exposures for each counterparty are adjusted based on market information available for the specific counterparty.

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, 2024
			Fair value						Carrying value						Level 1						Level 2						Level 3
Financial assets:
Loans receivable			$	10,008,165					9,443,461						—						—						10,008,165
Accrued loan interest receivable			549,283						549,283						—						549,283						—
Cash and cash equivalents			194,518						194,518						194,518						—						—
Investments at fair value			1,160,320						1,160,320						555						1,085,726						—
Investments - held-to-maturity asset-backed securities			216,164						210,774						—						216,164						—
Notes receivable			32,258						32,258						—						32,258						—
Beneficial interest in loan securitizations			229,510						213,809						—						—						229,510
Restricted cash			332,100						332,100						332,100						—						—
Restricted cash – due to customers			404,402						404,402						404,402						—						—
Derivative instruments			3,232						3,232						—						3,232						—
Financial liabilities:
Bonds and notes payable			8,343,565						8,309,797						—						8,343,565						—
Accrued interest payable			21,046						21,046						—						21,046						—
Bank deposits			1,172,707						1,186,131						744,721						427,986						—
Due to customers			478,469						478,469						478,469						—						—
Derivative instruments			53						53						—						53						—

			As of December 31, 2023
			Fair value						Carrying value						Level 1						Level 2						Level 3
Financial assets:
Loans receivable			$	12,800,638					12,343,819						—						—						12,800,638
Accrued loan interest receivable			764,385						764,385						—						764,385						—
Cash and cash equivalents			168,112						168,112						168,112						—						—
Investments at fair value			1,006,810						1,006,810						172						955,804						—
Investments - held-to-maturity asset-backed securities			163,622						162,738						—						163,622						—
Notes receivable			53,747						53,747						—						53,747						—
Beneficial interest in loan securitizations			262,093						225,079						—						—						262,093
Restricted cash			488,723						488,723						488,723						—						—
Restricted cash – due to customers			368,656						368,656						368,656						—						—
Derivative instruments			452						452						—						452						—
Financial liabilities:
Bonds and notes payable			11,629,359						11,828,393						—						11,629,359						—
Accrued interest payable			35,391						35,391						—						35,391						—
Bank deposits			722,973						743,599						467,420						255,553						—
Due to customers			425,507						425,507						425,507						—						—
Derivative instruments			1,976						1,976						—						1,976						—

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-11

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- References

No definition available.

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X

- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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