v3.25.2
Loans and Accrued Interest Receivable and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Schedule of Loans Receivable and Accrued Interest Receivable
Loans and accrued interest receivable consisted of the following:
As ofAs of
 June 30, 2025December 31, 2024
Non-Nelnet Bank:
Federally insured loans:
Stafford and other$2,039,136 2,108,960 
Consolidation6,327,949 6,279,604 
Total8,367,085 8,388,564 
Private education loans (a)156,614 221,744 
Consumer and other loans411,470 345,560 
Non-Nelnet Bank loans8,935,169 8,955,868 
Nelnet Bank:
Federally insured loans:
Stafford and other10,040 — 
Consolidation96,515 — 
Total106,555 — 
Private education loans (a)516,663 482,445 
Consumer and other loans204,423 162,152 
Nelnet Bank loans827,641 644,597 
Accrued interest receivable560,927 549,283 
Loan discount and deferred lender fees, net of unamortized loan premiums and deferred origination costs(42,905)(42,114)
Allowance for loan losses:
Non-Nelnet Bank:
Federally insured loans(47,627)(49,091)
Private education loans(7,406)(11,130)
Consumer and other loans(48,028)(38,468)
Non-Nelnet Bank allowance for loan losses(103,061)(98,689)
Nelnet Bank:
Federally insured loans(355)— 
Private education loans(12,360)(10,086)
Consumer and other loans(9,573)(6,115)
Nelnet Bank allowance for loan losses(22,288)(16,201)
 $10,155,483 9,992,744 
(a)    During the second quarter of 2025, the Asset Generation and Management operating segment (Non-Nelnet Bank) contributed $42.2 million of private education loans to Nelnet Bank.
Schedule of Net Charge-offs as a Percentage of Average Loans
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
June 30, 2025December 31, 2024
Non-Nelnet Bank:
Federally insured loans (a)0.57 %0.59 %
Private education loans4.73 %5.02 %
Consumer and other loans11.67 %11.13 %
Nelnet Bank:
Federally insured loans (a)0.33 %— 
Private education loans2.39 %2.09 %
Consumer and other loans4.68 %3.77 %
(a)    The allowance for loan losses as a percent of the risk sharing component of federally insured student loans not covered by the federal guaranty for non-Nelnet Bank was 20.4% and 20.6% as of June 30, 2025 and December 31, 2024, respectively, and for Nelnet Bank was 16.5% as of June 30, 2025.
The following table summarizes annualized net charge-offs as a percentage of average loans for each of the Company's loan portfolios:
Three months ended June 30,Six months ended June 30,
2025202420252024
Non-Nelnet Bank:
Federally insured loans0.16 %0.22 %0.14 %0.19 %
Private education loans0.55 %2.64 %1.02 %1.85 %
Consumer and other loans7.62 %4.62 %6.58 %4.98 %
Nelnet Bank:
Federally insured loans0.06 %— 0.06 %— 
Private education loans1.10 %0.40 %1.08 %0.44 %
Consumer and other loans (a)1.71 %7.44 %1.49 %7.66 %
(a)    Decrease in annualized net charge-offs as a percentage of average loans was due to a change in mix of consumer loan portfolios that resulted in a portfolio of loans with an overall higher credit quality in 2025 compared with 2024 and Nelnet Bank exiting a consumer loan program in December 2024 that had previously incurred significant charge-offs.
Schedule of 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 deteriorationBalance at end of period
Three months ended June 30, 2025
Non-Nelnet Bank:
Federally insured loans$48,906 2,112 (3,391)— — 47,627 
Private education loans10,394 (2,760)(523)295 — 7,406 
Consumer and other loans43,904 11,781 (7,967)310 — 48,028 
Nelnet Bank:
Federally insured loans362 9 (16)— — 355 
Private education loans9,893 2,839 (1,739)307 1,060 12,360 
Consumer and other loans6,617 3,731 (878)103 — 9,573 
$120,076 17,712 (14,514)1,015 1,060 125,349 
Three months ended June 30, 2024
Non-Nelnet Bank:
Federally insured loans$61,723 (1,970)(5,573)— — 54,180 
Private education loans14,736 — (1,827)156 — 13,065 
Consumer and other loans18,761 (2,255)(2,634)263 — 14,135 
Nelnet Bank:
Private education loans3,660 255 (460)104 — 3,559 
Consumer and other loans7,128 7,519 (2,837)15 — 11,825 
$106,008 3,549 (13,331)538 — 96,764 
Six months ended June 30, 2025
Non-Nelnet Bank:
Federally insured loans$49,091 4,746 (6,210)— — 47,627 
Private education loans11,130 (2,760)(1,457)493 — 7,406 
Consumer and other loans38,468 22,158 (13,143)545 — 48,028 
Nelnet Bank:
Federally insured loans— 374 (19)— — 355 
Private education loans10,086 3,925 (3,134)423 1,060 12,360 
Consumer and other loans6,115 4,734 (1,447)171 — 9,573 
$114,890 33,177 (25,410)1,632 1,060 125,349 
Six months ended June 30, 2024
Non-Nelnet Bank:
Federally insured loans$68,453 (3,840)(10,433)— — 54,180 
Private education loans15,750 (265)(2,840)420 — 13,065 
Consumer and other loans11,742 6,335 (4,586)644 — 14,135 
Nelnet Bank:
Private education loans3,347 1,012 (906)106 — 3,559 
Consumer and other loans5,351 11,236 (4,804)42 — 11,825 
$104,643 14,478 (23,569)1,212 — 96,764 
(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 contribution of Non-Nelnet Bank private education loans to Nelnet Bank during the second quarter of 2025 and the consumer and other loan sales during 2024:
    
Provision for current periodReduction to provisionProvision
(negative provision) for loan losses
Three months ended June 30, 2025
Non-Nelnet Bank
Private education loans$(994)(1,766)(2,760)
Three months ended June 30, 2024
Non-Nelnet Bank
Consumer and other loans$10,340 (12,595)(2,255)
Six months ended June 30, 2025
Non-Nelnet Bank
Private education loans$(994)(1,766)(2,760)
Six months ended June 30, 2024
Non-Nelnet Bank
Consumer and other loans$19,030 (12,695)6,335 
Below is a reconciliation of the provision for loan losses reported in the consolidated statements of income.
Three months endedSix months ended
June 30,June 30,
2025202420252024
Provision for loan losses from allowance activity table above$17,712 3,549 33,177 14,478 
Provision (negative provision) for unfunded loan commitments218 62 90 (38)
Provision for loan losses reported in consolidated statements of income$17,930 3,611 33,267 14,440 
Schedule of Loan Status and Delinquencies The following table presents the Company’s loan status and delinquency amounts:
As of June 30, 2025As of December 31, 2024As of June 30, 2024
Federally insured loans - Non-Nelnet Bank:    
Loans in-school/grace/deferment $393,460 4.7 % $376,765 4.5 % $440,891 4.6 %
Loans in forbearance 555,469 6.6  586,412 7.0  702,539 7.4 
Loans in repayment status:  
Loans current6,378,571 86.0 %6,374,897 85.9 %7,012,655 84.1 %
Loans delinquent 31-60 days261,809 3.5 243,348 3.3 339,262 4.1 
Loans delinquent 61-90 days175,562 2.4 166,474 2.2 234,746 2.8 
Loans delinquent 91-120 days111,678 1.5 113,838 1.5 151,447 1.8 
Loans delinquent 121-270 days360,754 4.9 380,823 5.1 377,660 4.5 
Loans delinquent 271 days or greater129,782 1.7 146,007 2.0 224,533 2.7 
Total loans in repayment7,418,156 88.7 100.0 %7,425,387 88.5 100.0 %8,340,303 88.0 100.0 %
Total federally insured loans8,367,085 100.0 % 8,388,564 100.0 % 9,483,733 100.0 %
Accrued interest receivable545,288 540,272 612,374 
Loan discount, net of unamortized premiums and deferred origination costs(26,523)(21,513)(24,222)
Allowance for loan losses(47,627)(49,091)(54,180)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$8,838,223 $8,858,232 $10,017,705 
Private education loans - Non-Nelnet Bank:
Loans in-school/grace/deferment $4,433 2.8 %$5,997 2.7 %$7,906 3.2 %
Loans in forbearance 1,530 1.0 2,089 0.9 2,248 0.9 
Loans in repayment status:
Loans current147,690 98.0 %206,825 96.8 %230,512 97.1 %
Loans delinquent 31-60 days1,246 0.8 3,424 1.6 2,814 1.2 
Loans delinquent 61-90 days564 0.4 1,275 0.6 1,395 0.6 
Loans delinquent 91 days or greater1,151 0.8 2,134 1.0 2,562 1.1 
Total loans in repayment150,651 96.2 100.0 %213,658 96.4 100.0 %237,283 95.9 100.0 %
Total private education loans156,614 100.0 % 221,744 100.0 % 247,437 100.0 %
Accrued interest receivable1,299 2,019 2,407 
Loan discount, net of unamortized premiums(5,162)(6,350)(7,194)
Allowance for loan losses(7,406)(11,130)(13,065)
Total private education loans and accrued interest receivable, net of allowance for loan losses$145,345 $206,283 $229,585 
Consumer and other loans - Non-Nelnet Bank:
Loans in deferment$1,355 0.3 %$150 0.0 %$122 0.1 %
Loans in repayment status:
Loans current399,263 97.3 %335,355 97.1 %174,295 97.2 %
Loans delinquent 31-60 days3,731 0.9 3,667 1.1 2,100 1.2 
Loans delinquent 61-90 days3,096 0.8 2,143 0.6 1,857 1.0 
Loans delinquent 91 days or greater4,025 1.0 4,245 1.2 1,073 0.6 
Total loans in repayment410,115 99.7 100.0 %345,410 100.0 100.0 %179,325 99.9 100.0 %
Total consumer and other loans411,470 100.0 %345,560 100.0 %179,447 100.0 %
Accrued interest receivable2,260 1,868 763 
Loan discount and deferred lender fees, net of unamortized premiums(6,296)(10,713)(9,205)
Allowance for loan losses(48,028)(38,468)(14,135)
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses$359,406 $298,247 $156,870 
As of June 30, 2025As of December 31, 2024As of June 30, 2024
Federally insured loans - Nelnet Bank (a):
Loans in-school/grace/deferment$2,665 2.5 %
Loans in forbearance5,550 5.2 
Loans in repayment status:
Loans current88,408 89.9 %
Loans delinquent 30-59 days2,806 2.9 
Loans delinquent 60-89 days2,001 2.0 
Loans delinquent 90-119 days1,683 1.7 
Loans delinquent 120-270 days2,495 2.5 
Loans delinquent 271 days or greater947 1.0 
Total loans in repayment98,340 92.3 100.0 %
Total federally insured loans106,555 100.0 %
Accrued interest receivable5,194 
Loan premium1,221 
Allowance for loan losses(355)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses$112,615 
Private education loans - Nelnet Bank (a):
Loans in-school/grace/deferment$45,107 8.7 %$31,674 6.6 %$41,394 11.7 %
Loans in forbearance1,926 0.4 3,061 0.6 1,985 0.6 
Loans in repayment status:
Loans current460,426 98.0 %439,569 98.2 %308,591 99.2 %
Loans delinquent 30-59 days3,102 0.7 4,327 1.0 934 0.3 
Loans delinquent 60-89 days2,710 0.6 1,497 0.3 444 0.2 
Loans delinquent 90 days or greater3,392 0.7 2,317 0.5 1,064 0.3 
Total loans in repayment469,630 90.9 100.0 %447,710 92.8 100.0 %311,033 87.7 100.0 %
Total private education loans516,663 100.0 %482,445 100.0 %354,412 100.0 %
Accrued interest receivable5,540 4,103 2,709 
Loan discount, net of unamortized premiums and deferred origination costs(8,589)(4,581)5,501 
Allowance for loan losses(12,360)(10,086)(3,559)
Total private education loans and accrued interest receivable, net of allowance for loan losses$501,254 $471,881 $359,063 
Consumer and other loans - Nelnet Bank (a):
Loans in deferment$8,538 4.2 %$5,186 3.2 %$1,414 0.8 %
Loans in repayment status:
Loans current194,507 99.3 %155,772 99.2 %181,558 97.3 %
Loans delinquent 30-59 days1,001 0.5 803 0.5 1,516 0.8 
Loans delinquent 60-89 days193 0.1 243 0.2 1,814 1.0 
Loans delinquent 90 days or greater184 0.1 148 0.1 1,637 0.9 
Total loans in repayment195,885 95.8 100.0 %156,966 96.8 100.0 %186,525 99.2 100.0 %
Total consumer and other loans204,423 100.0 %162,152 100.0 %187,939 100.0 %
Accrued interest receivable1,346 1,021 1,219 
Loan premium, net of unaccreted discount2,444 1,043 (1,037)
Allowance for loan losses(9,573)(6,115)(11,825)
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses$198,640 $158,101 $176,296 
(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.
Schedule of Loans Receivable Credit Quality Indicators The following tables highlight the gross principal balance of Nelnet Bank's portfolios, by year of origination, stratified by FICO score at the time of origination or purchase:
Nelnet Bank Private Education Loans
Loan balance as of June 30, 2025
Six months ended June 30, 20252024202320222021Prior yearsTotalPercent of total
FICO at origination or purchase:
Less than 705$2,057 2,986 3,197 4,408 3,857 22,149 38,654 7.5 %
705 - 7342,753 5,017 8,301 18,528 7,076 15,980 57,655 11.2 
735 - 7644,251 5,693 7,795 27,968 11,821 23,990 81,518 15.8 
765 - 7944,260 6,576 5,416 43,694 22,369 29,537 111,852 21.6 
Greater than 7946,154 14,728 13,632 62,114 44,955 77,929 219,512 42.5 
No FICO score available or required (a)— 2,367 5,105 — — — 7,472 1.4 
$19,475 37,367 43,446 156,712 90,078 169,585 516,663 100.0 %
Loan balance as of December 31, 2024
20242023202220212020Prior yearsTotalPercent of total
FICO at origination or purchase:
Less than 705$2,566 3,578 4,759 4,182 331 15,485 30,901 6.4 %
705 - 7343,736 8,874 19,666 7,531 426 12,349 52,582 10.9 
735 - 7644,398 8,629 29,918 12,775 1,286 17,920 74,926 15.5 
765 - 7944,600 6,115 46,340 24,073 1,105 23,867 106,100 22.0 
Greater than 7949,971 15,471 67,454 49,408 4,406 63,258 209,968 43.5 
No FICO score available or required (a)2,476 5,492 — — — — 7,968 1.7 
$27,747 48,159 168,137 97,969 7,554 132,879 482,445 100.0 %
Nelnet Bank Consumer and Other Loans
Loan balance as of June 30, 2025
Six months ended June 30, 20252024202320222021Prior yearsTotalPercent of total
FICO at origination:
Less than 720$6,132 17,946 1,627 — 295 1,463 27,463 13.4 %
720 - 76912,060 39,184 3,981 17 5,770 7,662 68,674 33.6 
Greater than 76928,891 52,873 6,252 98 5,597 3,566 97,277 47.6 
No FICO score available or required (a)2,124 8,123 434 274 54 — 11,009 5.4 
$49,207 118,126 12,294 389 11,716 12,691 204,423 100.0 %
Loan balance as of December 31, 2024
20242023202220212020Prior yearsTotalPercent of total
FICO at origination:
Less than 720$19,264 1,762 — 376 675 1,170 23,247 14.3 %
720 - 76941,217 4,502 19 6,152 5,448 3,105 60,443 37.3 
Greater than 76957,323 6,577 103 5,834 2,755 1,165 73,757 45.5 
No FICO score available or required (a)3,936 437 277 55 — — 4,705 2.9 
$121,740 13,278 399 12,417 8,878 5,440 162,152 100.0 %
(a)    Loans with no FICO score available or required refers to loans issued to borrowers for which the Company cannot obtain a FICO score or are not required to under a special purpose credit program. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.
The following table presents the amortized cost of the Company's private education, consumer, and other loans by loan status and delinquency amount as of June 30, 2025 based on year of origination. Effective July 1, 2010, no new loan originations can be made under the Federal Family Education Loan Program (the "FFEL Program" or FFELP) and all new federal loan originations must be made under the Federal Direct Loan Program. As such, all of the Company’s federally insured loans were originated prior to July 1, 2010.
Six months ended June 30, 20252024202320222021Prior yearsTotal
Private education loans - Non-Nelnet Bank:
Loans in-school/grace/deferment$— — — 332 2,124 1,977 4,433 
Loans in forbearance— — — 29 375 1,126 1,530 
Loans in repayment status:
Loans current— — 185 3,868 5,031 138,606 147,690 
Loans delinquent 31-60 days— — — 23 31 1,192 1,246 
Loans delinquent 61-90 days— — — — 5 559 564 
Loans delinquent 91 days or greater— — — — 84 1,067 1,151 
Total loans in repayment— — 185 3,891 5,151 141,424 150,651 
Total private education loans$— — 185 4,252 7,650 144,527 156,614 
Accrued interest receivable1,299 
Loan discount, net of unamortized premiums(5,162)
Allowance for loan losses(7,406)
Total private education loans and accrued interest receivable, net of allowance for loan losses$145,345 
Gross charge-offs - six months ended June 30, 2025$— — — — 52 1,405 1,457 
Consumer and other loans - Non-Nelnet Bank:
Loans in deferment$— 453 902 — — — 1,355 
Loans in repayment status:
Loans current191,184 174,221 31,379 1,891 307 281 399,263 
Loans delinquent 31-60 days423 2,348 751 190 19 — 3,731 
Loans delinquent 61-90 days254 1,750 865 224 — 3 3,096 
Loans delinquent 91 days or greater9 3,019 706 291 — — 4,025 
Total loans in repayment191,870 181,338 33,701 2,596 326 284 410,115 
Total consumer and other loans$191,870 181,791 34,603 2,596 326 284 411,470 
Accrued interest receivable2,260 
Loan discount and deferred lender fees, net of unamortized premiums(6,296)
Allowance for loan losses(48,028)
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses$359,406 
Gross charge-offs - six months ended June 30, 2025$3,774 4,426 4,745 184 9 5 13,143 
Six months ended June 30, 20252024202320222021Prior yearsTotal
Private education loans - Nelnet Bank (a):
Loans in-school/grace/deferment$8,171 20,707 8,999 5,413 354 1,463 45,107 
Loans in forbearance— 25 262 414 165 1,060 1,926 
Loans in repayment status:
Loans current11,189 16,157 33,073 150,025 88,331 161,651 460,426 
Loans delinquent 30-59 days66 246 364 268 184 1,974 3,102 
Loans delinquent 60-89 days— 31 305 290 289 1,795 2,710 
Loans delinquent 90 days or greater49 201 443 302 755 1,642 3,392 
Total loans in repayment11,304 16,635 34,185 150,885 89,559 167,062 469,630 
Total private education loans$19,475 37,367 43,446 156,712 90,078 169,585 516,663 
Accrued interest receivable5,540 
Loan discount, net of unamortized premiums and deferred origination costs(8,589)
Allowance for loan losses(12,360)
Total private education loans and accrued interest receivable, net of allowance for loan losses$501,254 
Gross charge-offs - six months ended June 30, 2025$— 191 498 335 259 1,851 3,134 
Consumer and other loans - Nelnet Bank (a):
Loans in deferment$5,092 3,446 — — — — 8,538 
Loans in repayment status:
Loans current44,054 113,832 12,180 389 11,468 12,584 194,507 
Loans delinquent 30-59 days61 573 114 — 156 97 1,001 
Loans delinquent 60-89 days— 183 — — — 10 193 
Loans delinquent 90 days or greater— 92 — — 92 — 184 
Total loans in repayment44,115 114,680 12,294 389 11,716 12,691 195,885 
Total consumer and other loans$49,207 118,126 12,294 389 11,716 12,691 204,423 
Accrued interest receivable1,346 
Loan premium, net of unaccreted discount2,444 
Allowance for loan losses(9,573)
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses$198,640 
Gross charge-offs - six months ended June 30, 2025$— 784 283 — 214 166 1,447 
(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.