Major Customer |
6 Months Ended |
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Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Major Customer | Major Customer Nelnet Servicing, LLC ("Nelnet Servicing"), a subsidiary of the Company, earns loan servicing revenue from a servicing contract with the Department of Education (the "Department"). Revenue earned by Nelnet Servicing related to this contract was $40.5 million and $39.8 million for the three months ended June 30, 2019 and 2018, and $80.1 million and $79.1 million for the six months ended June 30, 2019 and 2018, respectively. In addition, Great Lakes Educational Loan Services, Inc. ("Great Lakes"), which was acquired by the Company on February 7, 2018, also earns loan servicing revenue from a similar servicing contract with the Department. Revenue earned by Great Lakes related to this contract was $46.0 million and $45.7 million for the three months ended June 30, 2019 and 2018, respectively, and $93.1 million for the six months ended June 30, 2019. Revenue of $76.4 million was earned for the period from February 7, 2018 to June 30, 2018. Nelnet Servicing and Great Lakes' servicing contracts with the Department previously provided for expiration on June 16, 2019. On May 15, 2019, Nelnet Servicing and Great Lakes each received a Modification of Contract from the Department's Office of Federal Student Aid ("FSA") pursuant to which FSA extended the expiration date of the current contracts to December 15, 2019. In addition, Nelnet Servicing's current Authority to Operate as a loan servicer for the Department expires on August 30, 2019, and is currently under review for renewal. The Company cannot predict the timing or outcome of this review. FSA is conducting a contract procurement process entitled Next Generation Financial Services Environment (“NextGen”) for a new framework for the servicing of all student loans owned by the Department. On January 15, 2019, FSA issued solicitations for three NextGen components: •NextGen Enhanced Processing Solution ("EPS") •NextGen Business Process Operations ("BPO") •NextGen Optimal Processing Solution ("OPS") On April 1, 2019, and August 1, 2019, the Company responded to the EPS and BPO components, respectively. In addition, the Company is part of a team that currently intends to respond to the OPS component, although there is no current published deadline. The Company cannot predict the timing, nature, or outcome of these solicitations.
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