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As Grad PLUS loan changes approach July 1, Nelnet Bank offers clear, flexible financing options designed to help students move forward with confidence

, /PRNewswire/ -- With major federal student loan changes scheduled to take effect July 1, including the phaseout of Grad PLUS loans for new borrowers, many students and families are reassessing how they plan to pay for graduate school. As borrowers explore new financing options and prepare for upcoming enrollment and tuition deadlines, Nelnet Bank is ready to help with graduate student loan solutions built around clarity, flexibility, and support.

Graduate education has always required careful financial planning. But as federal borrowing options change, many students may need to consider private graduate student loans or supplemental financing earlier than expected.

For Nelnet Bank, the priority now is helping borrowers understand their options clearly and move forward with confidence during a period of change.

"We get it, graduate students already have enough on their minds," said Scott Hollon, Director of Education Loans at Nelnet Bank. "They shouldn't have to navigate unnecessary confusion while planning for school. Our role is to help borrowers understand their options, make informed decisions, and stay focused on their education and long-term goals."

Since January 2026, Nelnet Bank has seen a significant increase in inquiries from graduate students looking for alternatives to Grad PLUS, and the bank is prepared to meet that demand.

Nelnet Bank Graduate Student Loans allow eligible borrowers to borrow from $1,000 up to their school-certified cost of attendance, with multiple repayment options and a streamlined application experience. Designed to support students during school and beyond, these loans give graduate borrowers the flexibility and straightforward terms they need to plan ahead with greater certainty.

"Clear information matters. Simple tools matter. And having a lender that helps you understand what's next can make a real difference," Hollon said. "We're committed to making sure no graduate student loses momentum simply because the financing picture has shifted."

Backed by Nelnet, Inc.—one of the nation's largest student loan servicers, with more than 45 years of experience helping students and families navigate the cost of higher education—Nelnet Bank continues to invest in customer-first experiences designed to simplify borrowing and reduce financial stress.

For more information about Nelnet Bank Graduate Student Loans and graduate school financing options, visit nelnetbank.com/graduate-student-loans.

About Nelnet Bank
Nelnet Bank, Member FDIC, is a digital bank based in Draper, Utah, focused on helping customers make smart financial decisions with confidence. From student and home improvement lending to high-yield savings accounts and CDs, Nelnet Bank offers straightforward products, transparent experiences, and human support designed to help build strong financial futures. Backed by Nelnet, Inc. (NYSE: NNI), Nelnet Bank combines decades of experience with a modern mindset built around clarity, simplicity, and progress. Learn more at nelnetbank.com.

SOURCE Nelnet Bank

📌 Top story -- scroll down for more updates

Smooth Investing When the Ride is Bumpy 5:42 pm

The Motley Fool Hidden Gems team takes a listener question on diversification—exploring market volatility and why diversification remains a winning long-term strategy.

Jon Quast, Matt Frankel, and Rachel Warren discuss:

Market volatility: What it is Downside risk: How bad things can get Diversification: How it can improve returns Stock ideas: Picks that support long-term growth 🎧 The Motley Fool Money podcast drops daily after the bell! Listen on Apple Podcasts, Spotify, or other podcast platforms—or check out the Fool's podcast feed.

AEHR’s 2,000% Run Isn’t Done 4:32 pm — AEHR +17.69% today

Shares of Aehr Test Systems (AEHR +5.67%) jumped about 17% Monday, extending a staggering run—now up 2,082% over the past five years—as momentum builds into Tuesday’s earnings report. The rally reflects a mix of recent contract wins, improving bookings outlook, and a broader tech bid tied to easing geopolitical tensions. With expectations rising alongside the stock, investors appear to be betting that demand for semiconductor test systems, particularly in AI-linked markets—continues to accelerate.

Called It Early: CMFFrankDip flagged the inflection in February: “I have owned AEHR for a couple of years. I got the feeling this business was about to really pick up. AI companies are all in a race  so time is at a premium.” High Bar Ahead: A multi-year breakout plus a sharp pre-earnings move leaves little room for disappointment if results or guidance underwhelm.

Today's Change

(

5.67

%) $

5.84

Current Price

$

108.87

Closing Bell 4:07 pm

Stocks pushed higher as investors weighed volatile oil markets and fragile ceasefire talks in the Middle East. Meanwhile, Twilio (TWLO 1.35%) drew bullish attention after Jefferies upgraded the stock, citing its growing role in the Voice AI tech stack and projecting about 22% upside. Elsewhere, crypto-linked stocks like Strategy (MSTR +3.78%) moved higher alongside Bitcoin (BTC +2.02%), while retail play Boot Barn (BOOT 1.50%) jumped on a “buy the dip” call.

AI’s Quiet Backbone: Twilio’s communications layer could become essential plumbing for Voice AI. Small adoption gains may compound into years of growth. Energy Risk Lingers: Oil near $110+ keeps inflation pressure alive, even as markets bet disruption may not fully derail growth. Chip Stocks Bounce on Ceasefire Talk 3:23 pm — MU +3.59%

Shares of Micron Technology (MU 0.20%) rose Monday, outpacing the broader market as easing geopolitical tensions with Iran lifted sentiment across growth stocks. Comments from President Donald Trump pointing to active negotiations helped fuel hopes that disruption in the Strait of Hormuz could be avoided—an outcome that would support global stability and demand-sensitive sectors like semiconductors. Micron remains volatile but is still up roughly 33% year to date, with macro headlines continuing to drive near-term moves.

Geopolitics in the driver’s seat: Micron’s gains highlight how quickly AI-linked chip names can swing with shifts in global risk sentiment. Binary setup ahead: A deal could extend the rally in growth stocks, while escalation risks a sharp reversal across tech.

Today's Change

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-0.20

%) $

-1.95

Current Price

$

993.92

Eight S&P Stocks Hit Fresh Highs 2:58 pm

According to CNBC, eight stocks in the S&P 500 notched new 52-week highs Monday, spanning everything from utilities to data infrastructure. The list includes Bunge (BG +1.12%) (highest since 2008), Hologic (HOLX +0.00%) (Dec. 2024 levels), Ciena (CIEN +0.54%) (since 2001), plus all-time highs for Lumentum (LITE +3.11%), Seagate (STX +6.56%), Equinix (EQIX +0.48%), CMS Energy (CMS +0.36%), and Entergy (ETR +0.36%). Only Keurig Dr Pepper hit a new low.

Foolish overlap: Entergy, Equinix, and Lumentum are all Motley Fool–recommended, highlighting strength in power, data centers, and connectivity infrastructure. What it signals: This isn’t just momentum. Capital is clustering around the backbone of AI and electrification, from regulated utilities to global data hubs to optical networking.

War Demand Meets Wall Street Optimism 2:38 pm — KTOS +9%

Shares of Kratos Defense & Security Solutions (KTOS 1.28%) climbed about 9% Monday, fueled by a mix of geopolitical tension and a bullish analyst call. Ongoing conflict in Iran is reinforcing demand for missile and drone systems, while Jefferies upgraded the stock to “buy” with an $85 price target—implying roughly 26% upside. The firm sees a sizable $14 billion opportunity in hypersonics and rocket motors, key areas of U.S. defense spending.

Valuation tension: The stock now trades near 88× operating cash flow—more than double its five-year average. The bigger bet: Kratos offers direct exposure to next-gen defense tech, but with volatility that may not suit every portfolio.

Today's Change

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-1.28

%) $

-0.75

Current Price

$

58.03

NHTSA Ends Probe Into 2.6M Tesla Cars 1:10 pm -- TSLA -3.4%

The National Highway Traffic Safety Administration (NHTSA) closed its investigation into 2.6 million Tesla (TSLA 0.75%) vehicles equipped with the "Actually Smart Summon" remote-driving feature. Regulators determined that roughly 100 reported crashes were minor, low-speed incidents resulting only in property damage rather than injuries. Tesla mitigated safety concerns through over-the-air software updates that improved camera clarity and obstacle detection. While this specific probe is shuttered, the EV maker remains under the microscope as NHTSA continues a separate, more advanced "engineering analysis" into the Full Self-Driving system’s performance in low-visibility conditions.

Digital Defensive Maneuvers: Tesla’s ability to resolve federal safety concerns via remote software patches continues to be a massive operational advantage over traditional automotive recalls. The FSD Shadow: Despite this win, the regulator is still hunting for "traffic-safety violations" across 2.9 million vehicles, keeping the pressure on the company's autonomous driving narrative.

Today's Change

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-0.75

%) $

-2.98

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$

396.17

Today's Lunchtime News 1:25 pm -- ORCL -1.3%

Oracle (ORCL 0.67%) appointed Hilary Maxson as chief financial officer Monday, bringing in an executive with deep infrastructure and energy experience as the company takes on heavy debt to fund its AI and cloud buildout. Maxson most recently served as group CFO at Schneider Electric (SBGSY 3.00%), which generates more than $45 billion in annual revenue. Oracle shares are down about 25% this year.

Why her background matters: Oracle's AI infrastructure ambitions require massive capital expenditure and disciplined debt management -- areas where Maxson's experience overseeing a large-scale industrial company's finances is directly relevant. She said she aims to ensure "disciplined investment for creating lasting value" for customers and shareholders. Leadership continuity: Doug Kehring, who served as Oracle's principal financial officer for the past six months, will step down from the role and return to the company's go-to-market operations. The appointment comes as Oracle navigates surging AI demand, a heavy debt load, and investor scrutiny over the pace and returns of its infrastructure spending.

Booking Does the Splits 12:10 pm -- BKNG +2.3%

By Buck Hartzell

After market close on April 2, Booking Holdings (BKNG +0.76%) split their stock 25:1. That means you'll now see 25 shares for every 1 share you owned previously. This is a good time to remind folks that a split doesn't add any value. If you had one slice of pizza prior to a split and then you sliced that one piece into 25 smaller slices, you are still have the same amount of cheese, sauce, and dough.

But, in the case of Booking, I think this makes sense. The stock is easier to average into for smaller retail investors now. That group includes my children. :)

Bitcoin Surges Toward $70,000 11:10 am -- BTC +0.9%

Bitcoin (BTC +2.02%) climbed 4% Monday, nearing the $70,000 threshold as geopolitical tensions eased. Reports of potential ceasefire negotiations involving U.S. and Iranian mediators boosted risk appetite across the digital asset space, lifting Ethereum (ETH +1.75%) and Solana (SOL +3.27%) in tandem. Institutional stability remains a cornerstone of the current rally, with spot ETFs and treasury holders now controlling 12% of total supply. Amid this optimism, MicroStrategy (MSTR +3.78%) doubled down on its aggressive treasury strategy, revealing it purchased another $330 million worth of tokens early this month.

Saylor’s Unshakable Conviction: MicroStrategy’s latest nine-figure acquisition cements its lead as the largest corporate holder while the token trades within its tight five-week range. The Geopolitical Catalyst: Analysts suggest a formal 45-day truce could provide the necessary momentum to finally propel Bitcoin past its stubborn $73,000 resistance level.

Today's Change

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1267.23

Current Price

$

63861.00

Top of the Morning 11:15 am

By Morning Show host Loren Horst
Team Rule Breakers

One of the hallmarks of March Madness is the relentless promotion of Invesco QQQ Trust (QQQ +0.50%), the innovation-themed ETF tracking the Nasdaq 100 and the official ETF of the NCAA. While the timing is presumably in part due to the closing window in which investors can make IRA contributions for last year, the marketing has always paralleled the up-and-comers cementing their legacies in the college basketball tournaments with tomorrow's big winners reshaping the landscape of their industries and the stock market.

And to now, Invesco (IVZ +2.16%) has enjoyed a virtual monopoly on tracking that major index for U.S. investors. We're not talking 80% or 90% -- according to ETF Database, QQQ and its more buy-and-hold "mini" version, Invesco NASDAQ 100 ETF (QQQM +0.53%), control nearly 99.5% of all U.S. dollar assets tracking the large-cap index. This places what everyone commonly knows as QQQ as the fifth-largest exchange traded fund by assets under management (or ETF by AUM), trailing three S&P 500 funds and one total stock market ETF.

But according to a filing from earlier today, BlackRock will be joining its own big dance shortly with an offering of its own: the iShares Nasdaq 100 ETF, to be traded under ticker IQQ. This would be the first ETF from an asset manager other than Invesco to purely track the index (a handful of others add derivatives).

10:05 am

By Morning Show host Jim Gillies

I like a good annual letter out of a company. The problem is, most companies don't really give you more than "Rah-Rah!" platitudes in their annual communiques, if they give one at all. I want talk of the business, the problems they've been facing, the mistakes made – real communication, in other words.

The gold standard for many years was, of course, the annual letter penned by Berkshire Hathaway's (BRKB +0.11%) Warren Buffett, but there are others worth mentioning – from Fairfax Financial (FFH 0.86%), to Nelnet (NNI +0.55%), to Brookfield (BN +0.76%)(BN +0.49%) to or even tiny (I doubt anyone outside of Fool Canada has heard of them) Decisive Dividend (DE +1.15%).

To this, add JP Morgan (JPM +2.04%) CEO Jamie Dimon's annual letter, even though I don't read it because I'm particularly interested in the stock of bank he heads up. Rather, I like to get his insights into the state of the world and a more "macro" viewpoint.

9:35 am

By Morning Show host Nick Sciple
Team Rule Breakers

It's starting to feel like Groundhog Day. Five weeks after the first U.S. and Israeli strikes on Iran, the Strait of Hormuz remains effectively closed. Oil continues to surge well above $100 per barrel. And President Trump is still dishing out ultimatums, claiming the war will be over soon. He said "very shortly" on April 1. He said "very soon" on March 9. The talking points haven't changed. The strait hasn't opened. Physical barrels of Dated Brent touched $141 on April 2, the highest since 2008.

Opening Bell 9:30 am

The S&P 500 remained nearly flat Monday as investors weighed competing reports of a potential 45-day ceasefire against a Tuesday night deadline set by President Trump. While Pakistan-brokered terms for an immediate end to hostilities have reached both sides, Trump warned on Truth Social that "Tuesday will be Power Plant Day" in Iran if the Strait of Hormuz remains blocked. West Texas Intermediate crude eased to $110 per barrel as traders balanced these peace hopes with the threat of escalated strikes. This session also marks the first opportunity for the Nasdaq to react to Friday's blowout jobs report, which showed 178,000 positions added, nearly triple the consensus.

JPMorgan Chase is an advertising partner of Motley Fool Money. This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. Buck Hartzell has positions in Apple, Berkshire Hathaway, Bitcoin, Brookfield Corporation, Fairfax Financial, JPMorgan Chase, Nelnet, and Oracle. Jim Gillies has positions in Apple, Berkshire Hathaway, Boot Barn, Brookfield, Decisive Dividend, and Nelnet. Loren Horst has positions in Berkshire Hathaway. Nicholas Sciple has positions in Nelnet. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Bitcoin, Booking Holdings, Brookfield, Brookfield Corporation, Ciena, Decisive Dividend, Entergy, Equinix, Ethereum, Fairfax Financial, JPMorgan Chase, Kratos Defense & Security Solutions, Lumentum, Micron Technology, Nelnet, Oracle, Schneider Electric, Solana, Spotify Technology, Tesla, and Twilio. The Motley Fool recommends Boot Barn. The Motley Fool has a disclosure policy.

LINCOLN, Neb., April 14, 2026 /PRNewswire/ -- Nelnet, Inc. (NYSE: NNI) today announced it will release earnings for the first quarter ended March 31, 2026, after the close of the New York Stock Exchange on Thursday, May 7, 2026. Upon release, additional earnings information will be available at www.nelnetinvestors.com.

Learn more about Nelnet at www.nelnet.com.

SOURCE Nelnet, Inc.

, /PRNewswire/ -- Nelnet Business Services, a division of Nelnet, Inc. (NYSE: NNI), announced it has acquired Australia‑based Invision Digital Pty Ltd, the owner of the Passtab, Resitab, and Entrytab brands. Passtab, a leading school visitor, contractor, and compliance management platform, and the additional brands will operate within the Nelnet International business line, expanding Nelnet's global education technology offerings.

The acquisition further strengthens Nelnet International's ability to serve school communities with solutions that enhance safety, streamline front‑office operations, and support increasingly complex compliance requirements. Passtab is used by thousands of schools across Australia, New Zealand, and the United Kingdom and is widely recognized for its configurable, cloud‑based approach to visitor management and emergency readiness.

"Passtab is a highly respected brand in the education sector, with strong customer relationships and deep domain expertise," said David Heffernan, managing director of Nelnet International. "The team's experience and commitment to schools will be a real asset as Passtab becomes part of the broader offerings available within the Nelnet International portfolio of businesses."

Heffernan said the acquisition aligns with Nelnet's long‑term investment strategy.

"This acquisition reflects our ongoing commitment to investing in high‑quality education technology that adds value to the core platforms used by our customers across the world," he said.

Laura Hunt, general manager for Passtab, said, "Joining Nelnet International is a natural evolution for Passtab. Their commitment to a best-in-class Student Information System (SIS) ecosystem provides the ideal environment for us to mature and scale. We look forward to leveraging this broader infrastructure to strengthen our services and make an even bigger difference for schools and other organizations."

In addition to being a natural business complement, Nelnet International also noted the alignment with its mission.

"What stood out to us about Passtab wasn't just the strength of the products, but the people behind them," said Wendy Demarte, Nelnet International director. "They've built a capable and deeply committed team with a thorough understanding of K-12 schools."

She added that the acquisition creates new opportunities for schools globally.

"We're genuinely excited about what this means for schools," Demarte said. "Bringing Passtab into Nelnet International gives us the opportunity to better support safer, more efficient and more confident day‑to‑day operations for school communities."

About Invision Digital Pty Ltd

Invision Digital Pty Ltd is the owner of the Passtab, Resitab, and Entrytab brands. Passtab is a leading school visitor, contractor and compliance management platform that helps schools strengthen safety, streamline front‑office operations and meet increasingly complex regulatory requirements. Used by thousands of schools across Australia, New Zealand, and the UK, Passtab provides a modern, cloud‑based solution for visitor sign‑in, contractor and volunteer compliance, emergency management and first‑aid reporting. Its highly configurable platform integrates with major student information systems, enabling schools to manage safety, compliance and administration through a single, intuitive system.

About Nelnet Business Services

Nelnet Business Services (NBS) is a division of Nelnet, Inc. (NYSE: NNI), which provides payment technology and community management solutions for K-12 schools, higher education institutions, and businesses in the U.S. and internationally. NBS serves more than 1,200 higher education institutions and nearly 12,000 K-12 schools worldwide.

SOURCE Nelnet Business Services

, /PRNewswire/ -- Nelnet (NYSE: NNI) today reported GAAP net income of $71.1 million, or $1.97 per share, for the first quarter of 2026, compared with GAAP net income of $82.6 million, or $2.26 per share, for the same period a year ago.

Net income, excluding derivative market value adjustments[1], was $69.9 million, or $1.94 per share, for the first quarter of 2026, compared with $87.4 million, or $2.39 per share, for the same period in 2025.

"We're off to a strong start in 2026, with every business segment performing at a high level," said Jeff Noordhoek, chief executive officer of Nelnet. "We completed our Canadian acquisition in February, and integration is proceeding well, expanding our loan servicing reach and supporting our long-term diversification strategy focused on core strengths. This year, our focus is simple: Go. Technology is accelerating, innovation cycles are compressing, and the pace of change continues to increase. Our job is to move with speed—to be decisive and to keep pushing forward for our customers."

Nelnet operates through three divisions: Nelnet Financial Services (NFS), Loan Servicing and Systems [referred to as Nelnet Diversified Services (NDS)], and Education Technology Services and Payments [referred to as Nelnet Business Services (NBS)]. NFS includes the company's Asset Generation and Management (AGM) and Nelnet Bank reportable operating segments, which earn interest income on loans and investments. NDS and NBS generate primarily fee-based revenue through loan servicing, education technology, and payment services. Business activities not included in these divisions are combined and reported within Corporate Activities.

Nelnet Financial Services

AGM

The AGM operating segment reported loan and investment net interest income of $67.5 million during the first quarter of 2026, compared with $52.9 million for the same period a year ago. The increase in 2026 was due to an increase in loan spread[2] and growth in the company's consumer financing receivables. In the third quarter of 2025, the company began to purchase Pay Later receivables. As of March 31, 2026, the balance of Pay Later receivables was $766.2 million. The increase in net interest income was partially offset by the anticipated runoff of the legacy Federal Family Education Loan Program (the "FFEL Program" or FFELP) loan portfolio. The average balance of FFELP loans outstanding decreased from $8.6 billion for the first quarter of 2025 to $7.2 billion for the same period in 2026.

AGM recorded a provision for loan losses of $48.5 million ($36.9 million after tax) in the first quarter of 2026, compared with  $13.0 million ($9.9 million after tax) for the same period in 2025. The increase was primarily driven by the establishment of an initial allowance for loans acquired during the quarter. During the first quarter of 2026, AGM acquired $3.34 billion of loans, of which $2.85 billion were Pay Later receivables. The higher provision reflects portfolio growth rather than changes in underlying credit performance. Credit quality metrics, including delinquency rates and charge-offs, remained generally consistent with management's expectations.  

AGM holds interests in certain joint ventures engaged in the acquisition and management of loan portfolios. During the three months ended March 31, 2026, AGM recognized $15.4 million ($11.7 million after tax) of income from these joint ventures.

AGM recognized net income after tax of $23.2 million for the three months ended March 31, 2026, compared with $22.7 million for the same period in 2025.

_________________________________________

1 

Net income, excluding derivative market value adjustments, is a non-GAAP measure. See "Non-GAAP Performance Measures" at the end of this press release and the "Non-GAAP Disclosures" section below for explanatory information and reconciliations of GAAP to non-GAAP financial information.

2 

Loan spread represents the spread between the yield earned on loan assets and the costs of the liabilities used to fund the assets.

Nelnet Bank

As of March 31, 2026, Nelnet Bank had a $1.26 billion and $1.18 billion loan and investment portfolio, respectively, and total deposits, including intercompany deposits, of $1.96 billion. Nelnet Bank reported loan and investment net interest income of $17.8 million during the first quarter of 2026, compared with $12.4 million for the same period a year ago. The increase in 2026 was due to an increase in the loan and investment portfolio, partially offset by a decrease in net interest margin.

Nelnet Bank recognized net income after tax for the quarter ended March 31, 2026 of $7.1 million, compared with $1.5 million for the same period in 2025.

Loan Servicing and Systems

Revenue from the Loan Servicing and Systems segment was $127.8 million for the first quarter of 2026, compared with $120.7 million for the same period in 2025. The increase was primarily due to the company's acquisition of NDS Canada during the first quarter of 2026. As of March 31, 2026, the company was servicing $525.7 billion in Department of Education, Canada Student Loan Program, FFELP, private education, and consumer loans for 15.5 million borrowers.

As previously disclosed, on February 2, 2026, the company acquired a Canadian student loan servicing business ("NDS Canada") that delivers technology-enabled student loan servicing for governments and financial institutions, managing 2.7 million borrowers on proprietary platforms. Beginning on the acquisition date, the operating results of NDS Canada are included in the Loan Servicing and Systems operating segment.

The Loan Servicing and Systems segment reported net income after tax of $15.0 million for the three months ended March 31, 2026, compared with $14.1 million for the same period in 2025.

Education Technology Services and Payments

For the first quarter of 2026, revenue from the Education Technology Services and Payments operating segment was $154.4 million, an increase from $147.3 million for the same period in 2025. Revenue less direct costs to provide services for the first quarter of 2026 was $104.5 million, compared with $99.3 million for the same period in 2025.

Net income after tax for the Education Technology Services and Payments segment was $36.3 million for the three months ended March 31, 2026, compared with $36.1 million for the same period in 2025.

This segment is subject to seasonal fluctuations. Based on the timing of when revenue is recognized and when expenses are incurred, revenue and operating margin are higher in the first quarter compared with the remainder of the year.

Corporate and Other Activities

During the three months ended March 31, 2026, the company recognized $10.8 million ($8.2 million after tax or $0.23 per share) of losses related to marketable equity securities with readily determinable fair values. These losses resulted from changes in market values during the period.

Included in Corporate Activities are the company's equity interests held in partnerships that invest in solar tax equity projects. The company recognized $22.5 million ($6.9 million after tax and noncontrolling interests or $0.19 per share) of losses related to its solar tax equity partnerships during the three months ended March 31, 2026. Despite short-term losses, our tax equity investments are structured to deliver long-term value and cash flow.

Board of Directors Declares Second Quarter Dividend

The Nelnet Board of Directors declared a second-quarter cash dividend on the company's outstanding shares of Class A common stock and Class B common stock of $0.33 per share. The dividend will be paid on June 15, 2026, to shareholders of record at the close of business on June 1, 2026.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements within the meaning of federal securities laws. The words "anticipate," "assume," "believe," "continue," "could," "ensure," "estimate," "expect," "focus," "forecast," "future," "intend," "may," "objective," "plan," "potential," "predict," "pursue," "scheduled," "should," "strategy," "will," "would," and similar expressions, as well as statements in future tense, are intended to identify forward-looking statements. These statements are based on management's current expectations as of the date of this release and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: risks related to the ability to successfully maintain and increase allocated volumes of student loans serviced by the company under existing and future servicing contracts with the Department of Education, risks related to unfavorable contract modifications or interpretations, risks related to consistently meeting service requirements to avoid the assessment of performance penalties, and risks related to the company's ability to comply with agreements with third-party customers for the servicing of Federal Direct Loan Program, Canada Student Loan Program, FFEL Program, private education, and consumer loans; loan portfolio risks such as credit risk, prepayment risk, interest rate basis and repricing risk, risks related to the use of derivatives to manage exposure to interest rate fluctuations, uncertainties regarding the expected benefits from purchased securitized and unsecuritized FFELP, private education, consumer, and other loans, or residual interests therein, and initiatives to purchase additional FFELP, private education, consumer, and other loans; financing and liquidity risks, including risks of changes in the interest rate environment; risks from changes in the terms of education loans and in the educational credit and services markets resulting from changes in applicable laws, regulations, and government programs and budgets; risks related to a breach of or failure in the company's operational or information systems or infrastructure, or those of third-party vendors, including disclosure of confidential or personal information and/or damage to reputation resulting from cyber breaches; risks related to use of artificial intelligence; uncertainties inherent in forecasting future cash flows from student loan assets, including residual interests therein, and related asset-backed securitizations; risks related to the ability of Nelnet Bank to achieve its business objectives and effectively deploy loan and deposit strategies and achieve expected market penetration; risks related to the company's solar tax equity partnerships, including risks of not being able to realize tax credits which remain subject to recapture by taxing authorities and risks from the impact of the enactment of the One Big Beautiful Bill that accelerates the expiration and phase out of solar energy credits; risks and uncertainties related to other initiatives (and anticipated income therefrom) including venture capital, real estate, reinsurance, acquisitions, and other activities, including activities that are intended to diversify the company both within and outside of its historical core education-related businesses; risks and uncertainties associated with climate change; risks from changes in economic conditions and consumer behavior; risks related to the company's ability to adapt to technological change; risks related to the exclusive forum provisions in the company's articles of incorporation; risks related to the company's executive chairman's ability to control matters related to the company through voting rights; risks related to related party transactions; risks related to natural disasters, terrorist activities, or international hostilities; and risks and uncertainties associated with litigation matters, maintaining compliance with the extensive regulatory requirements applicable to the company's businesses, and uncertainties inherent in the estimates and assumptions about future events that management is required to make in the preparation of the company's consolidated financial statements.

For more information, see the "Risk Factors" sections and other cautionary discussions of risks and uncertainties included in documents filed or furnished by the company with the Securities and Exchange Commission. All forward-looking statements in this release are as of the date of this release. Although the company may voluntarily update or revise its forward-looking statements from time to time to reflect actual results or changes in the company's expectations, the company disclaims any commitment to do so except as required by law.

Non-GAAP Performance Measures

The company prepares its financial statements and presents its financial results in accordance with U.S. GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. Reconciliations of GAAP to non-GAAP financial information, and a discussion of why the company believes providing this additional information is useful to investors, is provided in the "Non-GAAP Disclosures" section below.

Consolidated Statements of Income

(Dollars in thousands, except share data)

(unaudited)

Three months ended

March 31,
2026

December 31,
2025

March 31,
2025

Interest income:

Loan interest

$       171,024

184,825

166,439

Investment interest

40,202

40,559

41,389

Total interest income

211,226

225,384

207,828

Interest expense on bonds and notes payable and bank deposits

109,583

118,273

125,114

Net interest income

101,643

107,111

82,714

Less provision for loan losses

53,244

38,147

15,337

Less provision for beneficial interests

4,130

2,679

1,510

Net interest income after provision

44,269

66,285

65,867

Other income (expense):

Loan servicing and systems revenue

127,842

116,573

120,741

Education technology services and payments revenue

154,436

112,314

147,330

Reinsurance premiums earned

22,536

33,539

24,687

Solar construction revenue

—

3,379

3,995

Other, net

10,437

16,749

24,603

Derivative market value adjustments and derivative settlements, net

2,167

2,330

(5,578)

Total other income (expense), net

317,418

284,884

315,778

Cost of services and expenses:

Loan servicing contract fulfillment and acquisition costs

2,087

2,056

1,633

Cost to provide education technology services and payments

49,953

38,654

48,047

Cost to provide solar construction services

—

12,326

7,828

Total cost of services

52,040

53,036

57,508

Salaries and benefits

139,371

141,086

138,223

Depreciation and amortization

9,170

9,365

9,255

Reinsurance losses and underwriting expenses

23,605

25,715

22,212

Other expenses

61,840

75,589

48,307

Total operating expenses

233,986

251,755

217,997

Income before income taxes

75,661

46,378

106,140

Income tax expense

(20,061)

(7,691)

(25,010)

Net income

55,600

38,687

81,130

Net loss attributable to noncontrolling interests

15,526

19,084

1,430

Net income attributable to Nelnet, Inc.

$        71,126

57,771

82,560

Earnings per common share:

Net income attributable to Nelnet, Inc. shareholders - basic and diluted

$            1.97

1.60

2.26

Weighted-average common shares outstanding - basic and diluted

36,076,912

36,088,994

36,478,426

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(unaudited)

As of

As of

As of

March 31, 2026

December 31, 2025

March 31, 2025

Assets:

Loans and accrued interest receivable, net                                             

$          10,009,471

10,006,695

10,422,704

Cash, cash equivalents, and investments

2,717,368

2,643,954

2,523,067

Restricted cash

590,518

677,563

611,610

Goodwill and intangible assets, net

301,506

187,312

192,832

Other assets

559,054

548,259

441,745

Total assets

$          14,177,917

14,063,783

14,191,958

Liabilities:

Bonds and notes payable

$            7,699,400

7,780,927

8,656,157

Bank deposits

1,744,527

1,669,173

1,313,407

Other liabilities

1,127,978

1,036,454

859,385

Total liabilities

10,571,905

10,486,554

10,828,949

Equity:

Total Nelnet, Inc. shareholders' equity

3,731,291

3,685,792

3,419,523

Noncontrolling interests

(125,279)

(108,563)

(56,514)

Total equity

3,606,012

3,577,229

3,363,009

Total liabilities and equity

$          14,177,917

14,063,783

14,191,958

Non-GAAP Disclosures
(Dollars in thousands, except share data)
(unaudited)

Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to business trends to investors and, in certain cases, to present financial information as measured by rating agencies and other users of financial information. These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies. The company reports this non-GAAP information because the company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

Net income, excluding derivative market value adjustments

Three months ended March 31,

2026

2025

GAAP net income attributable to Nelnet, Inc.

$          71,126

82,560

Realized and unrealized derivative market value adjustments (a)

(1,587)

6,324

Tax effect (b)

381

(1,519)

Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market                           

value adjustments

$          69,920

87,365

Earnings per share:

GAAP net income attributable to Nelnet, Inc.

$              1.97

2.26

Realized and unrealized derivative market value adjustments (a)

(0.04)

0.17

Tax effect (b)

0.01

(0.04)

Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market

value adjustments

$              1.94

2.39

(a)   

"Derivative market value adjustments" includes both the realized portion of gains and losses (corresponding to variation margin received or paid on derivative instruments that are settled daily at a central clearinghouse) and the unrealized portion of gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. "Derivative market value adjustments" does not include "derivative settlements" that represent the cash paid or received during the respective period to settle with derivative instrument counterparties the economic effect of the company's derivative instruments based on their contractual terms.

The accounting for derivatives requires that changes in the fair value of derivative instruments be recognized currently in earnings, with no fair value adjustment of the hedged item, unless specific hedge accounting criteria are met. Management has structured all of the company's derivative transactions with the intent that each is economically effective; however, the majority of the company's derivative instruments do not qualify for hedge accounting in the consolidated financial statements. As a result, the change in fair value for the derivative instruments that do not qualify for hedge accounting is reported in current period earnings with no consideration for the corresponding change in fair value of the hedged item. Under GAAP, the cumulative net realized and unrealized gain or loss caused by changes in fair values of derivatives in which the company plans to hold to maturity will generally equal zero over the life of the contract. However, the net realized and unrealized gain or loss during any given reporting period fluctuates significantly from period to period.

The company believes these point-in-time estimates of asset and liability values related to its derivative instruments that are subject to interest rate fluctuations are subject to volatility mostly due to timing and market factors beyond the control of management, and affect the period-to-period comparability of the results of operations. Accordingly, the company's management utilizes operating results excluding these items for comparability purposes when making decisions regarding the company's performance and in presentations with credit rating agencies, lenders, and investors. Consequently, the company reports this non-GAAP information because the company believes that it provides additional information regarding operational and performance indicators that are closely assessed by management and represents what earnings would have been had these derivatives qualified for hedge accounting. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

(b)   

The tax effects are calculated by multiplying the realized and unrealized derivative market value adjustments by the applicable statutory income tax rate.

SOURCE Nelnet, Inc.