Nelnet, Inc., incorporated on December 21, 1977, focuses on delivering education-related products and services and student loan asset management. The Company is engaged in student loan servicing, tuition payment processing and school information systems, and communications. The Company's segments include Loan Systems and Servicing, Tuition Payment Processing and Campus Commerce, Communications, Asset Generation and Management, and Corporate and Other Activities. The Company earns fee-based revenue through its Loan Systems and Servicing, Tuition Payment Processing, and Communications operating segments. In addition, the Company earns interest income on its student loan portfolio in its Asset Generation and Management operating segment. Corporate and Other Activities include real estate and other investments.
Loan Systems and Servicing
The Company's Loan Systems and Servicing operating segment include servicing federally-owned student loans for the Department, servicing Federal Family Education Loan Program (FFELP) loans, originating and servicing private education and consumer loans, providing student loan servicing software and other information technology products and services, and providing outsourced services including call center, processing, and marketing services. As of December 31, 2016, the Company serviced $194.8 billion of student loans for 7.6 million borrowers. As of December 31, 2016, the Department also had contracts with 31 not-for-profit (NFP) entities to service student loans. The Department allocates new loan volume among the nine servicers based on the performance metrics, which include Two metrics measure the satisfaction among separate customer groups, and Three metrics measure the success of keeping borrowers in an on-time repayment status and helping borrowers avoid default as reflected by the percentage of borrowers in current repayment status (30%), percentage of borrowers more than 90 days but less than 271 days delinquent (15%), and percentage of borrowers over 270 days and less than 361 days delinquent (15%). The Loan Systems and Servicing operating segment 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. Its FFELP servicing customers include national and regional banks, credit unions, and various state and non-profit secondary markets.
The Loan Systems and Servicing operating segment conducts origination and servicing activities for consumer loans which include both private education and personal loan products. Private education loans are loans to students or their families that are non-federal loans; as such, the loans are not issued or guaranteed by the federal government. The segment provides data center services and student loan servicing software for servicing private education and federal loans. These software systems are used internally by the Company and licensed to third-party student loan holders and servicers. The Company provides business process outsourcing specializing in contact center management. The contact center solutions and services include taking inbound calls, helping with outreach campaigns and sales, and interacting with customers through multi-channels.
Tuition Payment Processing and Campus Commerce
The Company's Tuition Payment Processing and Campus Commerce operating segment provides products and services to help students and families manage the payment of education costs at all levels (K-12 and higher education). It also provides education-focused technologies, services, and support solutions to help schools automate administrative processes and collect and process commerce data. In the K-12 market, the Company offers tuition management services, school information systems, and assistance with financial needs assessment and donor management. As of December 31, 2016, the Company provided services for approximately 13,500 K-12 schools and served over two million families representing over three million students. The Company offers two principal products to the higher education market: actively managed tuition payment plans, and campus commerce technologies and payment processing. As of December 31, 2016, the Company provided service for 970 colleges and universities across the world, and served over seven million students and families.
Communications
The Company, through Allo Communications LLC (Allo), is engaged in the sale of advanced telecommunication services, including Internet, broadband, telephone, and television services, to business and residential customers in Nebraska, and specializes in high-speed Internet and broadband services available through its all-fiber network. Allo serves the Scottsbluff, Gering, Bridgeport, North Platte, Ogallala, and Alliance communities in Nebraska. Allo data services provide high-speed Internet access over Allo's all-fiber network at various symmetrical speeds up to one gigabit per second, depending on the nature of the network facilities that are available, the level of service selected, and the geographic market availability. Allo also offers a variety of data connectivity services, including Ethernet services capable of connecting multiple connections over Allo's fiber-based networks. Allo's Internet Protocol Television Video (IPTV) services range from limited basic service to advanced television, which includes several plans each with various local, national, and music channels, including premium and pay-per-view channels, as well as video on demand service. Subscribers may also subscribe to Allo's advanced video services, which consist of high-definition television, digital video recorders (DVR), and/or a whole home DVR. Allo's whole home DVR gives customers the ability to watch recorded shows on any television in the house, record multiple shows at one time, and utilize an intuitive on-screen guide and user interface.
The Company's Local calling services include a suite of telephone services, including basic services, primary rate interface (PRI), and session initiation protocol (SIP). Allo's service plans include options for voice-mail and other enhanced custom calling features including hunting, caller identification (ID), call forwarding, and call waiting. Its long-distance services include traditional domestic and international long distance, which enables customers to make calls that terminate outside their local calling area. Allo offers services through direct marketing, call centers, its Website, communication centers, and commissioned sales representatives.
Asset Generation and Management
The Asset Generation and Management operating segment includes the acquisition, management, and ownership of the Company's student loan assets. As of December 31, 2016, the Company's student loan portfolio was $24.9 billion. The Company generates a substantial portion of its earnings from the spread, referred to as the Company's student loan spread, between the yield it receives on its student loan portfolio and the associated costs to finance such portfolio. Student loans consist of federally insured student loans and private education loans. The Company's portfolio of federally insured student loans is subject to minimal credit risk, as these loans are guaranteed by the Department at levels ranging from 97% to 100%.
The Company competes with Navient Corporation, Great Lakes Educational Loan Services, Inc. and Pennsylvania Higher Education Assistance Agency.
121 S 13th St Ste 201
The company trades on NYSE exchange. The company headquarter is located in Nebraska, NE. The company was established in the 1978.| Ticker | NNI |
| Long Name | Nelnet, Inc. |
| Short Name | Nelnet |